/raid1/www/Hosts/bankrupt/TCRLA_Public/170811.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
Friday, August 11, 2017, Vol. 18, No. 159
Headlines
A R G E N T I N A
CHUBUT PROVINCE: Moody's Affirms B3 Issuer and Debt Ratings
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Still Mulling Restrictions on Some Drugs
J A M A I C A
CABLE & WIRELESS: S&P Gives 'B' Rating on New $700MM Senior Notes
M E X I C O
BANCO MERCANTIL: Fitch Affirms BB Rating on $120MM Securities
MEXICO: Revised NAFTA Must Retain Original Agreement's Symmetry
MEXICO: Farmers Call for Scrapping of Agri Chapter in New NAFTA
P U E R T O R I C O
JEM REST CORP: Plan Outline Okayed, Sept. 6 Plan Hearing Set
INVERSIONES ARAXI: Case Summary & 16 Largest Unsecured Creditors
PET EXPRESS: Plan, Disclosures Hearing Set for Sept. 7
MARKETS & FUN: Sept. 5 Hearing on Plan Outline and Disclosures
TAKATA CORPORATION: Chapter 15 Case Summary
TAKATA CORPORATION: Files for Chapter 15 to Stay U.S. Suits
TAKATA CORPORATION: Special Master Named in Wire Fraud Case
T R I N I D A D & T O B A G O
TRINIDAD & TOBAGO: Government Failing Us, Says Shrimpers
V E N E Z U E L A
VENEZUELA: U.S. Sanctions Locals It Said Helped Form Assembly
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A R G E N T I N A
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CHUBUT PROVINCE: Moody's Affirms B3 Issuer and Debt Ratings
-----------------------------------------------------------
Moody's Investors Service has affirmed the B3 (Global Scale,
foreign currency) issuer and debt ratings to the Province of
Chubut. This rating is in line with the province's long term
foreign currency issuer rating (Global Scale). The outlook remains
stable.
RATINGS RATIONALE
The ratings affirmation reflects the general maintenance of
Chubut's key credit strengths and challenges despite the worsening
of its financial profile in 2016. Among the key credit strengths
Moody's noted the historic trend in operating surpluses -- though
with a strong impairment in recent periods -- its role as the
largest oil-producer province in the country which, brings about a
relatively high but declining own-source revenue base, accounting
for 58% of its total revenues compared with 63% five years ago,
and its relatively solid economic profile as indicated by a
provincial per capita GDP estimated at 105% of the country's per
capita GDP. Finally, Moody's noted that Chubut's oil output
accounts for 28% of the total oil production of Argentina.
During the five-year period 2010-2014, Chubut's gross operating
balances averaged a very high 19% of its operating revenues but
manageable cash financing deficits of 3% of its total revenues on
average. However, during the last two fiscal years, the province
recorded a deterioration of its operating performance - posting
gross operating surplus of only 3.2% for 2015 fiscal year and a
2.1% deficit in 2016. A very sharp rise in its personnel expense
accounting to 82% of its operating revenues in 2016 from 66% two
years ago was the main contributor to this strong impairment.
Another reason behind the weaker operating performance is the
decline in its royalty revenues, from 32% of its total revenues in
2011 to 21% in the last fiscal year.
Among Chubut's credit challenges, Moody's highlighted its high
debt levels and exposure to non-Peso debt, the potential for
additional pressures arising from its personnel expenses. Chubut's
stock of debt remained relatively stable during the 2010-2014
ranging between 15 to 25% of its total revenues. Since 2015,
Chubut's debt has grown to reach a very high 90% at the end of
2016 -- which Moody's expects to decline to 80% by the end of this
current fiscal year. Another challenging trend is the high portion
of foreign currency debts in its total debt composition. Foreign
currency obligations represented 78% of Chubut's total debt as of
December 31, 2016, while it was only 18% in 2010. This exposes the
province to devaluation risk as well as global market access risk.
WHAT COULD CHANGE THE RATING UP/DOWN
The Province of Chubut is currently rated at the same level as the
Government of Argentina. As Moody's believes Chubut cannot be
rated higher than the sovereign, upward ratings pressure would
only occur with a rating upgrade of Argentina. Similarly, a
downgrade on the Sovereign rating could lead to a rating downgrade
as would as additional deterioration of Chubut's financial
metrics, including sudden increases in short-term borrowing
arising from a deterioration of its liquidity position.
The principal methodology used in these ratings was Regional and
Local Governments published in June 2017.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Still Mulling Restrictions on Some Drugs
------------------------------------------------------------
Dominican Today reports that Dominican Republic Public Health
Minister Altagracia Guzman said the plan to regulate the sale of
medicines isn't finished yet and various sectors will participate
in the discussion.
She said industry and pharmacies have been consulted in the plan's
first phase, according to Dominican Today. "We are seeing the
plan that is a process in which various sectors will participate,
the media being a key ally in it," the report quoted Ms. Guzman as
saying.
Ms. Guzman's statement comes in the heels of questions from the
Dominican Pharmaceutical Industries (Infadomi), that the list of
over-the-counter medicines released in June included some that
have since been withdrawn, such as antibiotics, anti-flu,
analgesics and "boner pills," the report notes.
As reported in Troubled Company Reporter-Latin America on July 24,
2017, Moody's Investors Service has upgraded the Dominican
Republic's long term issuer and debt ratings to Ba3 from B1 and
changed the outlook to stable from positive, based on the
following key drivers:
(1) The Dominican Republic's continued robust growth outlook
compared to rating peers, coupled with a reduction in
external risks as current account deficits have declined and
international reserves have increased.
(2) The reduction in fiscal deficits over the last four years and
Moody's expectation that fiscal deficits will remain shy of
3% of GDP, supported by fiscal restraint and reduced
transfers to the electricity sector.
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J A M A I C A
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CABLE & WIRELESS: S&P Gives 'B' Rating on New $700MM Senior Notes
------------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating to C&W
Senior Financing Designated Activity Company's proposed $700
million senior notes due 2027. This company is an orphan special
purpose vehicle (SPV) in the Cable & Wireless structure (Cable &
Wireless Communications Limited [CWC]; BB-/Negative/B). The SPV
will give the notes proceeds to Sable International Finance
Limited (SIFL), a CWC's subsidiary, and from there the group will
refinance in full Columbus International's $605 million 7.375%
senior notes due December 2021; pay $45 million in transaction
related premiums, fees and expenses; and keep $40 million for
general corporate purposes.
The issuance will have a neutral impact on CWC's leverage, because
most of the proceeds will be used for debt repayment. S&P expects
a proportionate debt to EBITDA of 4.88x and funds from operations
to debt of 14.34% at the end of 2017 in line with its current
rating. Pro forma average life of debt will increase to 6.8 years.
In S&P's view, the SPV meets the following conditions:
-- All of its debt obligations are backed by equivalent-ranking
obligations with equivalent payment terms issued by SIFL. As a
strategic financing entity for CWC, it's set up solely to
raise debt on behalf of the group; and
-- S&P believes CWC is willing and able to support the SPV to
ensure full and timely payment of interest and principal on
its debt, including payment of the SPV's any expenses.
Therefore, S&P rates the SPV's debt relative to other debt
obligations of CWC and treat the contractual obligations of the
SPV as financial obligations of the parent. The issue-level rating
on the proposed new notes is in line with the issue-level ratings
on senior unsecured debt issued by SIFL, reflecting the pari passu
ranking. The rating is constrained by the significant amount of
prior ranking or secured debt in CWC's capital structure.
RATINGS LIST
Cable & Wireless Communications Limited
Corporate credit rating BB-/Negative/B
Rating Assigned
C&W Senior Financing Designated Activity Company
Senior notes due 2027 B
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M E X I C O
===========
BANCO MERCANTIL: Fitch Affirms BB Rating on $120MM Securities
-------------------------------------------------------------
Fitch Ratings has affirmed Grupo Financiero Banorte, S.A.B. de
C.V. (GFNorte) and Banco Mercantil del Norte, S.A.'s (Banorte)
Viability Ratings (VRs) at 'bbb+', as well as their Long-Term
Foreign and Local Currency Issuer Default Ratings (IDR) at 'BBB+'.
The Rating Outlook was revised to Stable from Negative. In
addition, Fitch has affirmed GFNorte and Banorte's Short-Term
Foreign- and Local-Currency IDRs at 'F2'.
Fitch has also affirmed Banorte and GFNorte's non-banking
subsidiaries national scale ratings at 'AAA(mex)' and 'F1+(mex)'.
The Rating Outlook is Stable.
Banorte's IDRs are sensitive to changes in Mexico's sovereign
rating on the down side. Therefore, the bank's Outlook revision
follows the Aug. 3, 2017 affirmation of Mexico's sovereign rating
at 'BBB+' and revision of the sovereign Outlook to Stable from
Negative. The bank's Outlook has been revised to Stable from
Negative as part of a peer review of major Mexican banks.
KEY RATING DRIVERS
GFNorte and Banorte's IDRs are driven by their stand-alone credit
profiles as reflected by their VRs. Fitch believes that the
operating environment and Banorte and GFNorte's strong company
profiles highly influence their VRs. These ratings are also driven
by their resilient financial performance sustained mainly by
continued loan growth and fee income, progressive optimization of
operational expenses, and well-controlled credit costs. Operating
return-to-risk weighted assets (RWAs) stood at almost 3.9% at
1H17, above previous-year results (2013-2016: 3.0% on average).
Although the ratings consider the bank's still adequate
capitalization, they also incorporate the recent decline in the
Fitch core capital (FCC) ratio to 12.6% as of June 2017 (YE15:
15.8%). Banorte's FCC fell during 2016, mainly due to the Afore
XXI split-off, INB's sale accounting effect, dividend payment and
the effect of the creation of reserves registered versus equity
during the year. Hybrid securities have historically supported
Banorte's regulatory capital position; regulatory metrics are well
above the minimum. As of June 2017, total regulatory capital ratio
stood at 15.1%. During 2016, Banorte was designated as a
systemically important financial institution, which implies the
bank must constitute a capital buffer of 0.90pp over the next four
years. Further reliance on hybrids cannot be ruled out in the
foreseeable future in order to sustain growth.
The bank has been active in government lending with some
individual concentrations on its balance sheet. As of June, the
top 20 largest exposures by economic group represented 1.5x
equity, the major ones were mainly related to government. Four
main debtors jointly represented nearly 66% of total equity, which
Fitch considers high. Banorte has been reducing the pace of its
government lending growth, and continues working on reducing
concentrations.
Banorte's impaired loans ratios continued improving during the
first six months of the year, sustained by well-performing loans
and some improvement in commercial and corporate loans which
absorbed moderate increases in consumer non-performing loans
(NPLs). Fitch analyzes as well a more stringent and real measure
of asset quality, including charge-offs, which improved to 3.9% as
of May 2017 from 4.1% in 2016, mainly benefiting from a partial
resolution of the homebuilder exposure during 2016. Fitch expects
Mexican financial system asset quality to deteriorate moderately,
mainly for consumer and SMEs lending, which could be driven by
slow economic growth, increasing inflation and rising interest
rates.
Banorte has a strong deposit franchise. As of June 2017, about 97%
of its loan portfolio is deposit-funded. Funding has proved to be
stable and has shown an increasing trend over the past few years
(around 8% annual average). The bank has access to traditional
banking funding like interbank short- and long-term borrowing,
loans from development banks, and has also issued subordinated
notes in the capital markets.
GFNorte's VR and IDRs
GFNorte's ratings reflect its growing franchise and improved
business diversification after several acquisitions made over the
past few years. Ratings also consider its current position as one
of the largest local financial groups, and one of the market
leaders in most of its subsidiaries. Double leverage is non-
existent at present at the holding company level. Although product
mix has been improving, GFNorte's performance continues to be
underpinned by its major subsidiary, Banorte.
Subordinated Debt
The bank's Tier 2 subordinated preferred capital notes are rated
three notches (-3) below the bank's VR; one notch for loss
severity (-1) and two notches for non-performance risk (-2).
Banorte's global junior subordinated debt is rated four notches (-
4) below the bank's VR. The ratings are driven by Fitch's approach
to factoring non-performance risk (-2) and degrees of
subordination (-2).
SUPPORT RATING AND SUPPORT RATING FLOOR
Banorte's SR and SRF were affirmed at '2' and 'BBB-',
respectively, given Banorte's systemic importance and its role as
the largest domestically-owned bank in Mexico. Fitch's SRFs
indicate a level below which Fitch will not lower the bank's Long-
Term IDRs as long as assessment of the support factors does not
change.
GFNorte's SR and SRF were affirmed at '5' and 'NF', respectively,
in view of its position as a holding company, indicating that,
although possible, external support cannot be relied upon.
NATIONAL RATINGS
Banorte's National scale ratings were affirmed, since its IDRs are
at the same level as those of the sovereign, and National scale
ratings are relative rankings of creditworthiness within a certain
jurisdiction.
The ratings of GFNorte's non-banking subsidiaries (AyF Banorte,
Banorte Ixe CB, and Almacenadora Banorte) are aligned with
Banorte's National scale ratings, and consider GFNorte's legal
obligation to support its subsidiaries, as well as Fitch's
perception that these remain core to the group's overall strategy
and business profile.
RATING SENSITIVITIES
VR and IDRs
There is limited upside potential for the VRs in the foreseeable
future, and could only be upgraded in the medium term if GFNorte
and Banorte materially strengthen their competitive position and
franchise, while further improving their liquidity profile and
financial performance, including an operating return on RWAs above
4%, while maintaining asset quality and capitalization metrics.
Banorte's VR and IDRs could be downgraded if the bank is exposed
to higher credit losses as net charge-offs rise above 3% of
average gross loans. In addition, ratings could be affected by a
consistent operating profit-to-RWAs below 2% and/or a FCC
consistently below 11% of risk weighted assets.
SUPPORT RATING AND SUPPORT RATING FLOOR
Upside potential for the SRs and SRFs is limited, and, for
Banorte, can only occur over time with a material gain of the
bank's systemic importance. SR and SRFs could be downgraded from a
multi-notch downgrade of the sovereign rating.
NATIONAL RATINGS
Any downgrade to GFNorte's non-banking subsidiaries' (AyF Banorte,
Casa de Bolsa Banorte-Ixe and Almacenadora Banorte) National
ratings would be driven by a decrease of GFNorte's ratings, if the
group's IDR is not aligned with the sovereign rating.
Fitch has affirmed the following ratings and revised Outlooks as
indicated:
Grupo Financiero Banorte, S.A.B. de C.V. (GFNorte)
-- Long-Term Foreign and Local Currency IDRs at 'BBB+'; Outlook
Revised to Stable from Negative;
-- Viability rating at 'bbb+';
-- Short-Term Foreign and Local Currency IDR at 'F2';
-- Support Rating at '5';
-- Support Rating Floor at 'NF'.
Banco Mercantil del Norte, S.A. (Banorte)
-- Long-Term Foreign and Local Currency IDRs at 'BBB+'; Outlook
Revised to Stable from Negative ;
-- Viability rating at 'bbb+';
-- Short-Term Foreign and Local Currency IDR at 'F2';
-- Support rating at '2';
-- Support rating Floor at 'BBB-';
-- USD500 million TIER 2 subordinated preferred capital notes at
'BB+';
-- USD120 million junior subordinated securities at 'BB';
-- National scale long-term rating at 'AAA(mex)'; Outlook Stable;
-- National scale short-term rating at 'F1+(mex)'.
Arrendadora y Factor Banorte, S.A. de C.V. SOFOM, E.R. (AyF
Banorte):
-- National scale long-term rating at 'AAA(mex)'; Outlook Stable;
-- National scale short-term rating at 'F1+(mex)';
-- National scale long-term rating for local issues of senior
unsecured debt at 'AAA(mex)';
-- National scale short-term rating for local issues of senior
unsecured debt at 'F1+(mex)'.
Almacenadora Banorte S.A. de C.V., Organizacion Auxiliar de
Credito, Gpo Financiero Banorte (Almacenadora Banorte):
-- National scale long-term rating at 'AAA(mex)'; Outlook Stable;
-- National scale short-term rating at 'F1+(mex)'.
Casa de Bolsa Banorte - Ixe, S.A de C.V., Grupo Financiero Banorte
(Banorte Ixe CB):
-- National scale long-term rating at 'AAA(mex)'; Outlook Stable;
-- National scale short-term rating at 'F1+(mex)'.
MEXICO: Revised NAFTA Must Retain Original Agreement's Symmetry
---------------------------------------------------------------
EFE News reports that Mexico's government will have the difficult
task of demanding and retaining the symmetry that exists in the
current North American Free Trade Agreement despite pressure from
the United States's renegotiation team, an economist who was one
of the original NAFTA negotiators said in an interview with EFE.
"Mexico must strive to ensure that what comes out of this
negotiation is once again perfectly symmetrical," Luis de la Calle
said, according to EFE News.
MEXICO: Farmers Call for Scrapping of Agri Chapter in New NAFTA
---------------------------------------------------------------
EFE News reports that thousands of Mexican small farmers are
demanding that a renegotiated North American Free Trade Agreement
do away with that accord's agricultural chapter, saying it is
unfair and has caused them great economic hardship.
"In these years of the North American Free Trade Agreement, the
lack of public policy in favor of the countryside has forced 6
million hectares to be taken out of cultivation," Jose Jacobo
Femat, the national president of the Confederation of Peasant and
Popular Organizations, according to EFE News.
======================
P U E R T O R I C O
======================
JEM REST CORP: Plan Outline Okayed, Sept. 6 Plan Hearing Set
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico will
consider approval of the Chapter 11 plan of reorganization for Jem
Rest. Corp. at a hearing on September 6.
The hearing will be held at 2:00 p.m., at the U.S. Post Office and
Courthouse Building, Courtroom No. 1, Second Floor, 300 Recinto
Sur, San Juan, Puerto Rico.
The court will also consider at the hearing the final approval of
the company's disclosure statement, which it conditionally
approved on July 27.
The order required creditors to cast their votes accepting or
rejecting the plan, and file their objections at least 10 days
prior to the hearing.
About Jem Rest. Corp.
Headquartered in San Juan, Puerto Rico, Jem Rest., Corp. filed for
Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 16-00152)
on Jan. 14, 2016. The Debtor estimated assets of less than
$50,000 and liabilities of less than $1 million.
Judge Brian K. Tester presides over the case. Alexis Fuentes
Hernandez, Esq., at Fuentes Law Offices, LLC, serves as the
Debtor's bankruptcy counsel.
On July 26, 2017, the Debtor filed a disclosure statement, which
explains its proposed Chapter 11 plan of reorganization.
INVERSIONES ARAXI: Case Summary & 16 Largest Unsecured Creditors
----------------------------------------------------------------
Affiliated debtors that filed Chapter 11 bankruptcy petitions:
Debtor Case No.
------ --------
Inversiones Araxi Group Corp 17-05575
DBA Motel The Rose
Box 565
Salinas, PR 00751
Buena Vista Plantation Corp 17-05576
Box 565
Salinas, PR 00751
PR 1 Investment Rooms Corp 17-05575
dba Motel Lisboa
Box 565
Salinas, PR 00751
Business Description: Inversiones Araxi Group is a small
organization in the hotels and motels
industry located in Caguas, Puerto Rico.
Inversiones Araxi and Buena Vista Plantation
previously sought bankruptcy protection on
March 31, 2016 (Bankr. D.P.R. Case No. 16-
02428 and 16-02426, respectively).
Chapter 11 Petition Date: August 8, 2017
Court: United States Bankruptcy Court
District of Puerto Rico (Ponce)
Judge: Hon. Edward A Godoy
Debtors' Counsel: Gerardo L Santiago Puig, Esq.
GSP LAW, P.S.C.
Doral Bank Plaza Suite 801
33 Resolucion St
San Juan, PR 00920
Tel: 787-777-8000
Fax: 787-767-7107
E=mail: gsantiagopuig@gmail.com
Estimated Estimated
Assets Liabilities
--------- -----------
Inversiones Araxi $1M-$10M $1M-$10M
Buena Vista $100K-$500K $1M-$10M
PR 1 Investment $0-$50K $1M-$10M
The petitions were signed by Luis J. Perez Delgado, president.
Inversiones Araxi's list of 16 largest unsecured creditors is
available for free at http://bankrupt.com/misc/prb17-05575.pdf
Buena Vista's list of four unsecured creditors is available for
free at http://bankrupt.com/misc/prb17-05576.pdf
PR 1 Investment's list of 10 unsecured creditors is available for
free at http://bankrupt.com/misc/prb17-05577.pdf
PET EXPRESS: Plan, Disclosures Hearing Set for Sept. 7
-------------------------------------------------------
Judge Edward A. Godoy of the U.S. Bankruptcy Court for the
District of Puerto Rico conditionally approved Pet Express USA
Corp.'s disclosure statement referring to its plan of
reorganization filed on August 3, 2017.
Acceptances or rejections of the Plan may be filed in writing by
the holders of all claims on/or before 14 days prior to the date
of the hearing on confirmation of the Plan.
Any objection to the final approval of the Disclosure Statement
and/or the confirmation of the Plan shall be filed on/or before 14
days prior to the date of the hearing on confirmation of the Plan.
A hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan and of such
objections as may be made to either will be held on Sept. 7, 2017,
at 09:30 A.M. at the U.S. Bankruptcy Court, Southwestern
Divisional Office, MCS Building, Second Floor, 880 Tito Castro
Avenue, Ponce, Puerto Rico.
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.
MARKETS & FUN: Sept. 5 Hearing on Plan Outline and Disclosures
--------------------------------------------------------------
Judge Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for
the District of Puerto Rico conditionally approved Markets & Fun,
LLC's disclosure statement with respect to its plan of
reorganization filed on August 1, 2017.
Sept. 5, 2017, at 10:00 a.m. is fixed for the hearing on final
approval of the disclosure statement and for the hearing on
confirmation of the plan.
Three days prior to the hearing is fixed as the last day for
filing written acceptances or rejections to the plan.
Three days prior to the hearing is fixed as the last day for
filing and serving written objections to the disclosure statement
and confirmation of the plan.
Markets & Fun, LLC, filed a Chapter 11 petition (Bankr. D.P.R.
Case No. 16-08010) on October 5, 2016, and is represented by Myrna
L Ruiz Olmo, Esq., at MRO Attorneys at Law, LLC.
TAKATA CORPORATION: Chapter 15 Case Summary
-------------------------------------------
Lead Debtor: Takata Corporation
2-12-31 Akasaka
Minato-ku, Toyko 107-0052
Japan
Type of Business: Takata Corporation is a global innovator and
supplier of automotive safety systems, including
airbag systems, seat belts, steering wheels,
electronics, sensors, and child restraint
systems, and supplies all major automotive
manufacturers in the world. Headquartered in
Tokyo, Japan, it operates 56 plants in 20
countries with approximately 46,000 global
employees worldwide. Takata Corporation owns
100% of the equity of Takata Kyushu Corporation
and Takata Service Corporation, the other two
Japanese Debtors.
Web site: http://www.takata.com
Foreign
Proceeding: Civil Rehabilitation Proceeding under the Civil
Rehabilitation Act of Japan, Act No. 225 of
December 22, 1999, before the 20th Department of
the Civil Division of the Tokyo District Court.
Chapter 15 Petition Date: August 9, 2017
Affiliated debtors that simultaneously filed Chapter 15 petitions:
Name Case No.
---- --------
Takata Corporation 17-11713
Takata Kyushu Corporation 17-11714
Takata Services Corporation 17-11715
Court: United States Bankruptcy Court
District of Delaware (Delaware)
Judge: Hon. Brendan Linehan Shannon
Foreign Representative: Hiroshi Shimizu
Executive Vice President
and Executive Director
Chapter 15 Debtors'
U.S. Counsel: Robert S. Brady, Esq.
Pauline K. Morgan, Esq.
Ryan M. Bartley, Esq.
YOUNG, CONAWAY, STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, Delaware 19801
Tel: (302) 571-6600
Fax: (302) 571-1253
E-mail: rbrady@ycst.com
pmorgan@ycst.com
rbartley@ycst.com
- and -
Nobuaki Kobayashi, Esq.
NAGASHIMA OHNO & TSUNEMATSU
JP Tower
2-7-2 Marunouchi, Chiyoda-ku
Tokyo 100-7036, Japan
Tel: +81-3-6889-7000
Fax: +81-3-6889-8000
Estimated Assets: Not Indicated
Estimated Debt: Not Indicated
A full-text copy of Takata Corp.'s Chapter 15 petition is
available for free at:
http://bankrupt.com/misc/deb17-11713.pdf
U.S. and Mexican affiliates that sought Chapter 11 protection in
Delaware (Bankr. D. Del.) on June 25, 2017, which cases remain
pending:
Debtor Case No.
------ --------
Takata Americas 17-11372
TK Finance, LLC 17-11373
TK China, LLC 17-11374
TK Holdings Inc. 17-11375
Takata Protection Systems Inc. 17-11376
Interiors in Flight Inc. 17-11377
TK Mexico Inc. 17-11378
TK Mexico LLC 17-11379
TK Holdings de Mexico, S. de R.L. de C.V. 17-11380
Industrias Irvin de Mexico, S.A. de C.V. 17-11381
Takata de Mexico, S.A. de C.V. 17-11382
Strosshe-Mex, S. de R.L. de C.V. 17-11383
TAKATA CORPORATION: Files for Chapter 15 to Stay U.S. Suits
-----------------------------------------------------------
Takata Corporation ("TKJP") and two affiliates filed Chapter 15
cases in Delaware to seek U.S. recognition of their restructuring
proceedings in Japan.
Specifically, Takata wants the U.S. Bankruptcy Court to enter an
order recognizing the Civil Rehabilitation Proceedings (the
"Japanese Proceedings") under the Civil Rehabilitation Act
of Japan, Act No. 225 of December 22, 1999 (the "Civil
Rehabilitation Act") before the 20th Department of the Civil
Division of the Tokyo District Court Japan, as "foreign main
proceedings."
As widely reported, automotive safety company Takata has
experienced financial distress due to issues relating to certain
of its products. Specifically, certain airbag inflators
containing phase-stabilized ammonium nitrate (the "PSAN
Inflators") manufactured by Takata have ruptured during deployment
of the airbag. The rupture of these PSAN Inflators prompted Takata
and certain original equipment manufacturers (each an "OEM") to
take actions to initiate wide-ranging recalls of vehicles
globally, including in Japan and the United States, in
coordination with regulatory authorities including the National
Highway Transportation Safety Administration in the United States
and the Ministry of Land, Infrastructure, Transport and Tourism in
Japan. The OEMs have asserted substantial liabilities against the
Takata entities, including the Japanese Debtors, arising out of
claims, rights of reimbursement, indemnification, setoff and other
similar rights against Takata for the costs and expenses incurred
by the OEMs arising out of the airbag system recall.
On top of the massive cost of these recalls, Takata is subject to
a plea agreement (the "Plea Agreement") resulting from a two-year
investigation by the DOJ. The Plea Agreement culminated with the
entry of the Restitution Order by the United States District Court
for the Eastern District of Michigan, which imposes significant
fines and penalties that must be satisfied in full for Takata to
have any hope of continuing its operations going forward. While
some of the penalties and Restitution Payments have already been
satisfied, presently under the Restitution Order, Takata must
satisfy in full $850 million of Restitution Payments by March 4,
2018. Should Takata fail to do so, the DOJ retains the right to
withdraw the Plea Agreement and pursue criminal charges and
penalties above and beyond those that were settled under the Plea
Agreement against all Takata entities, including the Japanese
Debtors.
TKJP appointed an independent advisory committee consisting of
five legal and financial professionals (the "Steering Committee")
in February 2016 for the purpose of formulating a comprehensive
restructuring plan for Takata. TKJP, including through the
Steering Committee, engaged in extensive efforts to address the
liabilities associated with the recalls of PSAN Inflators, in an
effort to ensure the continued viability of Takata's business and
to preserve and maximize the value of its business for
stakeholders. Takata first explored an out of court transaction
because, among other things, Takata believed that would provide
the most stability for Takata to ensure an uninterrupted, stable
supply of its products to its customers. During this process,
Takata selected Key Safety Systems, Inc. ("KSS") as the potential
sponsor for a restructuring of the Takata business. Takata,
however, was not able to garner enough support for an out-of-court
restructuring.
As a result, and in the face of a rising tide of liabilities,
certain Takata entities commenced coordinated restructuring
proceedings -- the Chapter 11 Cases in the United States
and the Japanese Proceedings -- to pursue a global sale of
substantially all of Takata's assets to KSS, but excluding the
assets related to the PSAN Inflators business. Takata and KSS
have reached a tentative agreement in principle for a sale
transaction with a base purchase price targeted at $1.588 billion,
subject to certain adjustments. Importantly, the transaction
proposes that the obligation to pay the $850 million of
Restitution Payments under the Plea Agreement will be satisfied
through the sale proceeds from KSS. In addition to the base
purchase price, KSS has agreed to an "earn out" payment to Takata
of up to $400 million depending upon achievement of certain
financial metrics post-closing. Takata expects to obtain support
for the transaction with KSS from OEMs that, in the aggregate,
purchased approximately ninety percent (90%) of PSAN Inflators
sold by Takata as of March 2017 and hold a substantial majority of
the total unsecured claims against the Takata entities.
Through the Verified Petition, Takata asks the U.S. Bankruptcy
Court to:
(a) grant recognition to the Japanese Proceedings as foreign
main proceedings under section 1517 of the Bankruptcy Code;
and
(b) recognize TKJP as the "foreign representative" as defined
in section 101(24) of the Bankruptcy Code in respect of the
Japanese Proceedings.
Doing so will assist the Japanese Court in administering the
Japanese Proceedings and assist the Japanese Debtors in undergoing
civil rehabilitation.
U.S. Assets
TKJP's primary asset in the United States is its equity ownership
of TK Holdings Inc. ("TKH"), a major United States-based affiliate
of the Japanese Debtors and one of the Chapter 11 Debtors with
cases pending before the Court. TKJP also holds an interest in a
retainer held by the Japanese Debtors' Delaware counsel in these
Chapter 15 Cases, Young Conaway Stargatt & Taylor, LLP, maintained
in a Delaware bank account.
U.S. Suits
Takata said that the Chapter 15 Cases have been commenced for the
purpose of obtaining the assistance of this Court to ensure the
effective and economical administration of the Japanese
Proceedings by, among other things, restricting certain creditors
from taking certain actions in the United States that would
undermine the unified, collective and equitable resolution of the
Japanese Debtors' liabilities in the Japanese Proceedings before
the Japanese Court.
"Absent the relief requested, actions may continue against the
Japanese Debtors (and new actions may be commenced), which would
interfere with the orderly determination of claims in the foreign
proceeding and substantially frustrate the efforts to restructure
the Takata business. If creditors unilaterally pursue collection
or enforcement efforts, such efforts could diminish the value of
the Japanese Debtors' assets and cause significant delay and
disruption to the Japanese Debtors' restructuring process,"
Takata's counsel, Pauline K. Morgan, Esq., at Young Conaway
Stargatt & Taylor, LLP, explains.
A hearing on the Debtors' motion is scheduled for Aug. 11, 2017,
at 9:00 a.m., before Bankruptcy Judge Brendan Linehan Shannon in
Delaware.
About Takata Corp
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea,
China and other countries.
Takata Corp. filed for bankruptcy protection in Tokyo and the
U.S., amid recall costs and lawsuits over its defective airbags.
Takata and its Japanese subsidiaries commenced proceedings under
the Civil Rehabilitation Act in Japan in the Tokyo District Court
on June 25, 2017.
Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S.
and Mexican affiliates each filed voluntary petitions under
Chapter11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 17-11375) on June 25, 2017. Together with the bankruptcy
filings, Takata announced it has reached a deal to sell all its
global assets and operations to Key Safety Systems (KSS) for
US$1.588 billion.
Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese
proceedings. Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and Lazard
is serving as investment banker to Takata. Ernst & Young LLP is
tax advisor. Prime Clerk is the claims and noticing agent.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor. UBS Investment Bank also
provides financial advice to KSS.
On June 28, 2017, TK Holdings, as the foreign representative of
the Chapter 11 Debtors, obtained an order of the Ontario Superior
Court of Justice (Commercial List) granting, among other things,
a stay of proceedings against the Chapter 11 Debtors pursuant to
Part IV of the Companies' Creditors Arrangement Act. The Canadian
Court appointed FTI Consulting Canada Inc. as information officer.
TK Holdings, as the foreign representative, is represented by
McCarthy Tetrault LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Trade Creditors and a separate Official Committee of Tort
Claimants. Pachulski Stang Ziehl & Jones LLP represents the
Official Committee of Tort Claimants as bankruptcy counsel.
The Official Committee of Unsecured Creditors has selected
Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F.
Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington,
Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and
Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New
York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley &
McCloy LLP, in Washington, D.C., as its bankruptcy counsel.
Chapter 15 Cases
Takata Corporation ("TKJP") and affiliates Takata Kyushu
Corporation and Takata Services Corporation commenced Chapter 15
cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9,
2017, to seek U.S. recognition of the civil rehabilitation
proceedings in Japan. The Hon. Brendan Linehan Shannon oversees
the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP,
serves as Takata's counsel in the Chapter 15 cases.
TAKATA CORPORATION: Special Master Named in Wire Fraud Case
-----------------------------------------------------------
Judge George Caram Steeh of the U.S. District Court for the
Eastern District of Michigan has issued an order appointing Eric
D. Green as Special Master with respect to the custody,
administration and distribution of the Restitution Funds that
Takata Corporation will pay in the case styled UNITED STATES OF
AMERICA, v. TAKATA CORPORATION, Defendant, Case No. 16-CR-20810-
04, (E.D. Mich.).
On February 27, 2017, Takata Corporation pled guilty to one count
of wire fraud in violation of 18 U.S.C. Section 1343. On the same
date, the Court entered a Restitution Order requiring Takata to
pay restitution in the amount of $125,000,000 to the individuals
who suffered or will suffer personal injury caused by the
malfunction of a Takata airbag inflator and who have not already
resolved their claims against Takata and $850,000,000 in
restitution to auto manufacturers that purchased airbags with
phase-stabilized ammonium nitrate inflators from Takata or any of
its subsidiaries (the "OEM Restitution Fund").
As part of the Rule 11 Plea Agreement, the United States and
Takata recommended that the Court appoint a Special Master to
determine the proper administration and disbursement of the
$975,000,000 in restitution monies Takata will pay in this case.
Accordingly, on July 10, 2017, the Court issued a notice of intent
to appoint Eric D. Green as Special Master, which addressed the
qualifications of Mr. Green, and required Mr. Green to file an
affidavit disclosing whether there were any grounds for
disqualification, and requested that all parties consent in
writing to the appointment of Mr. Green. Takata and the United
States consented to the appointment of Mr. Green as Special
Master.
On March 29, 2017, Takata paid, directly and through certain of
its affiliates, the $125,000,000 for the Individual Restitution
Fund. Pursuant to the Restitution Order, Takata is directed to
pay, directly or through its affiliates or subsidiaries, the
$850,000,000 for the OEM Restitution Fund within five days after
the closing of the currently anticipated sale, merger,
acquisition, or combination involving a transfer of control of
Takata, which must occur within one year after entry of the plea.
A full-text copy of the Order dated July 31, 2017, is available at
https://is.gd/4uUTG8 from Leagle.com.
About Takata Corp
Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles. The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea,
China and other countries.
Takata Corp. filed for bankruptcy protection in Tokyo and the
U.S., amid recall costs and lawsuits over its defective airbags.
Takata and its Japanese subsidiaries commenced proceedings under
the Civil Rehabilitation Act in Japan in the Tokyo District Court
on June 25, 2017.
Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S.
and Mexican affiliates each filed voluntary petitions under
Chapter11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No. 17-11375) on June 25, 2017. Together with the bankruptcy
filings, Takata announced it has reached a deal to sell all its
global assets and operations to Key Safety Systems (KSS) for
US$1.588 billion.
Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese
proceedings. Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and Lazard
is serving as investment banker to Takata. Ernst & Young LLP is
tax advisor. Prime Clerk is the claims and noticing agent.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor. UBS Investment Bank also
provides financial advice to KSS.
On June 28, 2017, TK Holdings, as the foreign representative of
the Chapter 11 Debtors, obtained an order of the Ontario Superior
Court of Justice (Commercial List) granting, among other things,
a stay of proceedings against the Chapter 11 Debtors pursuant to
Part IV of the Companies' Creditors Arrangement Act. The Canadian
Court appointed FTI Consulting Canada Inc. as information officer.
TK Holdings, as the foreign representative, is represented by
McCarthy Tetrault LLP.
The U.S. Trustee has appointed an Official Committee of Unsecured
Trade Creditors and a separate Official Committee of Tort
Claimants. Pachulski Stang Ziehl & Jones LLP represents the
Official Committee of Tort Claimants as bankruptcy counsel.
The Official Committee of Unsecured Creditors has selected
Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F.
Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington,
Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and
Tyson
Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York;
and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy
LLP, in Washington, D.C., as its bankruptcy counsel.
Chapter 15 Cases
Takata Corporation ("TKJP") and affiliates Takata Kyushu
Corporation and Takata Services Corporation commenced Chapter 15
cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9,
2017, to seek U.S. recognition of the civil rehabilitation
proceedings in Japan. The Hon. Brendan Linehan Shannon oversees
the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP,
serves as Takata's counsel in the Chapter 15 cases.
================================
T R I N I D A D & T O B A G O
================================
TRINIDAD & TOBAGO: Government Failing Us, Says Shrimpers
--------------------------------------------------------
Carolyn Kissoon at Trinidad Express reports that foreign
competition, the roller-coaster global economy and Government's
lack of interest have contributed to the failing shrimping
industry in Trinidad and Tobago, say local fishermen.
And shrimpers are now concerned that the authorities would soon
move to shut them down, according to Trinidad Express.
This follows a meeting hosted by the National Fisheries Division
of the Ministry of Agriculture, the report notes.
Fishermen raised concerns that systems were being put in place to
crack down on shrimping in local waters, the report relays.
The fishermen also noted that they were fearful of speaking out as
they would be victimized, the report discloses.
"They brought police officers at the meeting to intimidate the
fishermen. That was not called for, as the fishermen went there
with concerns. Many persons were afraid to speak out because they
would be victimized by the Fisheries Division," one boat owner
said, the report notes.
He said the meeting was held to discuss the Ministry's latest
bycatch reduction project, which prevents small fish and shrimp
from being trapped in nets, the report relays.
"And we support this. We agreed to install the device and
participate in the trial. But persons from the division have
publicly stated that the shrimping industry will be closed. Now it
looks that this is happening and we cannot support this," he said,
the report discloses.
He added that several boat owners have been using a Turtle
Excluder Device (TED) in nets for the past 12 years, the report
relays. "This is to ensure we do not have incidental capture of
turtles and we agreed to this," he added.
The boat owner said he was also concerned that there had been an
increase in farmed shrimp in the local market, the report notes.
He said unscrupulous fish vendors were mixing the imported shrimp
with the ones locally caught and selling to customers, the report
says.
"We have a lot of farmed shrimp on the market and this is an added
burden to the economy. You need foreign exchange to import this
and research shows that this kind of shrimp is not healthy to
consume. There is no quota so people bring in how much they
want," he said, the report notes.
Fishermen have called on the Government to respond to their
concerns as their livelihoods were being threatened, the report
relays.
Minister Responds
Agriculture Minister Clarence Rambharat said the Government was
currently reviewing the existing legislation, addressing issues
raised by the European Union regarding fisheries and the
management of it, the report notes.
He said the Government was also reviewing matters related to
fisheries and aquaculture, including previous decisions on
trawling dating back to 1984 right up to 2013/2014, the report
adds.
=================
V E N E Z U E L A
=================
VENEZUELA: U.S. Sanctions Locals It Said Helped Form Assembly
-------------------------------------------------------------
Samuel Rubenfeld at The Wall Street Journal reports that the U.S.
Treasury Department placed sanctions on eight officials associated
with Venezuela's new constituent assembly, alleging they are
aiding in what Washington said are dictatorial moves by President
Nicolas Maduro.
The 545-member national assembly, which declared itself the
supreme institution in the country, is aligned with Mr. Maduro as
it seeks to rewrite the country's constitution, according to The
Wall Street Journal. The body was seated following an election
called a fraud by opposition leaders, the report notes. It
abruptly fired the attorney general, who once was a Maduro
supporter but had rebelled against the decision to elect the
assembly, the report relays.
Governments across Latin America refused to recognize the body,
the report says.
The eight officials targeted, including the older brother of the
country's deceased former leader, are mostly second-tier officials
in Mr. Maduro's ruling United Socialist Party, the report relays.
None of the officials play a leading role in the constituent
assembly, which has moved against Mr. Maduro's opponents since
taking office, the report notes.
"This regime's disregard for the will of the Venezuelan people is
unacceptable," Treasury Secretary Steven Mnuchin said in a
statement obtained by the news agency.
The U.S. put sanctions on Mr. Maduro the day after the election,
freezing any assets he has within U.S. jurisdiction and barring
Americans from dealing with him, the report relays. Mr. Maduro
laughed them off, reportedly shouting "sanction anyone you want!"
during an address on Venezuelan state TV, the report notes.
One of the eight new figures targeted for sanctions, former
presidential chief of staff Carmen Melendez, is part of Mr.
Maduro's inner circle, the report relays. Adan Chavez, elder
brother of late leader Hugo, was a longtime governor of a rural
Barinas state. Hermann Escarra is a top government legal adviser,
the report notes.
Foreign Relations Minister Jorge Arreaza said the government
wouldn't recognize the sanctions, the report relays. "We reject
the aggression," he said, the report notes.
The government has said that the assembly is necessary to resolve
Venezuela's political and economic crisis, the report discloses.
Francisco Ameliach, the vice president of the Socialist Party who
also was among the eight officials targeted with sanctions, said
the designation wouldn't affect his "Bolivarian, anti-imperialist
and deeply Chavista principles," referring to the loyalists of the
late strongman Hugo Chavez, the report says.
Imposing sanctions on individual officials is a continuation of a
policy used during the Obama administration that analysts say has
so far had little effect on the Venezuelan government, the report
notes.
"The theory is that these sanctions will intimidate senior
officials in the government, will help create divisions and will
help nudge towards some kind of transitional arrangement to
resolve the crisis," the report quoted Michael Shifter, the
president of the Inter-American Dialogue, a Washington-based think
tank, as saying. "But there is no sign they are succeeding in the
way that the U.S. had hoped," he added.
U.S. officials have previously said they were considering other
types of sanctions, but have so far steered away from targeting
Venezuela's important oil sector, the report relays. Analysts say
sanctions on the oil industry, which accounts for almost all of
Venezuela's export revenue, would deepen the country's
humanitarian crisis amid current shortages of food and medicine,
the report notes. That move could also provide Mr. Maduro with an
excuse to blame the U.S. for its crisis, analysts say, the report
says.
David Smilde, a Venezuelan expert at Tulane University, said the
current sanctions would likely be more effective if other Latin
American countries implemented similar measures, the report
relays. For Venezuelan officials, the costs of not being able to
travel or hold money anywhere in Latin America could outweigh the
benefits of sticking with Mr. Maduro, he said, the report says.
"If there's progress to be made, it has to be diplomatic progress
that gets other Latin American countries to follow suit with these
sanctions," he said. "Unilateral U.S. sanctions just don't work,"
the report notes.
Mr. Maduro, for his part, accuses the U.S. of interfering in
Venezuela's affairs and wanting to overthrow his government, which
the White House and other Latin American nations say is now a
dictatorship, the report discloses.
After previous sanctions, Mr. Maduro and his allies have taunted
the U.S., saying that being blacklisted by the White House is a
badge of honor. Days before the July 30 election of the
constituent assembly, the U.S. blacklisted 13 Venezuelan
officials, including the head of the country's electoral agency
and chiefs of the Venezuelan Army, National Guard and National
Police, the report relays. Mr. Maduro gave those officials a
replica of a sword used by Venezuelan independence hero Sim¢n
Bol°var, the report notes.
The U.N.'s high commissioner for human rights, Zeid Ra'ad Al
Hussein, said there had been a breakdown of the rule of law in
Venezuela, adding that his office had documented widespread rights
abuses, including violent house raids and torture of detainees,
the report says. He said responsibility for the violations "lies
at the highest levels of government," the report notes.
The government has in the past denied committing abuses, the
report adds.
As reported on Troubled Company Reporter-Latin America on July 13,
2017, S&P Global Ratings lowered its long-term foreign and local
currency sovereign credit ratings on the Bolivarian Republic of
Venezuela to 'CCC-' from 'CCC'. The outlook on the long-term
ratings is negative. S&P said, "We affirmed our 'C' short-term
foreign and local currency sovereign ratings. In addition, we
lowered our transfer and convertibility assessment on the
sovereign to 'CCC-' from 'CCC'."
***********
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
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or sell any security of any kind. It is likely that some entity
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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
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than a balance sheet solvency test.
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***********
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, 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
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contact Peter A. Chapman at 215-945-7000 or Joseph Cardillo at
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