/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/171027.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, October 27, 2017, Vol. 18, No. 214 Headlines A R G E N T I N A NAVIOS SOUTH: Moody's Rates Proposed Sr. Secured Term Loan (P)B1 B E R M U D A SEADRILL LTD: Receives Two Add'l Debt Restructuring Proposals SEADRILL LTD: Ad Hoc Bondholders Group File Verified Statement B R A Z I L JBS SA: Completes Vigor Sale JBS SA: Withdraws Plan for US Processed Food Unit IPO JBS SA: S&P Lowers CCR to 'B' on Upcoming Refinancing Risks SAO MARTINHO: S&P Alters Outlook to Pos. on Rising Free Cash Flow D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Northwest Banana Growers Want Solutions * DOMINICAN REPUBLIC: To Require License for High-Volume Imports J A M A I C A DIGICEL GROUP: Renews Partnership With Irish Mobile Firm V E N E Z U E L A PETROLEOS DE VENEZUELA: Former Head Says Bonds Will Be Paid - - - - - ================= A R G E N T I N A ================= NAVIOS SOUTH: Moody's Rates Proposed Sr. Secured Term Loan (P)B1 ---------------------------------------------------------------- Moody's Investors service affirmed the corporate family rating (CFR) of Navios South American Logistics Inc. (NSAL) at B3, assigned a probability of default rating (PDR) of B3-PD and a new instrument rating of (P)B1 to the proposed senior secured term loan. Moody's also downgraded the rating of NSAL's senior unsecured notes due 2022 to Caa1 from B3. The rating outlook on all ratings is stable. "The proposed term loan will be a secured piece of capital structure; therefore, Moody's rated it two notches above the corporate family rating," says Maria Maslovsky, Moody's Vice President -- Senior Analyst and the lead analyst for Navios South American Logistics Inc. "The introduction of a new secured class of debt subordinates the existing senior unsecured notes," adds Maslovsky. This rating action follows the announcement by Navios South American Logistics Inc. that it has launched an offering of a $100 million senior secured term loan due 2021. The loan will be guaranteed by the operating subsidiaries, similar to the senior unsecured notes, but will benefit from the security package including the pledge of the Vale S.A. (Ba1 stable) contract receivable and the liens on five tanker vessels. The use of proceeds will be for general corporate purposes including a substantial dividend payment. Moody's issues provisional ratings in advance of the final sale of securities, and these ratings represent only Moody's preliminary opinion on the transaction. Upon a conclusive review of the transaction and associated documentation, Moody's will endeavor to assign a definitive rating to the securities. A definitive rating may differ from a provisional rating. RATINGS RATIONALE The (P)B1 rating for the proposed secured term loan reflects its security with respect to certain assets (Vale contract receivable and tanker vessels) while the downgrade of the senior unsecured notes reflects the reduced asset protection following the introduction of a new secured debt class ahead of the notes. The corporate family rating of B3 continues to reflect (1) diversity of the company's services with port terminal, barge and cabotage operations (2) the recent change in outlook of NSAL's parent company, Navios Maritime Holdings, Inc., to positive from negative; (3) the affirmation of the 20-year contract with Vale by the London arbitration tribunal in December 2016; (4) a strong management team with a successful track record of operations in the region; (5) the company's limited size with geographical and customer concentration; (6) risks related to operating in relatively politically unstable countries; (7) its exposure to cyclical markets and to adverse weather conditions such as drought or floods that impact agricultural production and affect river navigability. Moody's views the issuance of the new term loan to finance a dividend payment as aggressive and perceives NSAL as weaker positioned within the rating category following this transaction. The addition of $100 million of debt weakens the rating positioning of the corporate family rating with leverage increasing to 10.9x pro forma for the offering from 8.9x for the twelve months ending June 30, 2017. However, pro forma for the Vale contract, which commences in the second half of 2017, NSAL's leverage for the twelve months ending June 30, 2017 would have been 5.3x and with the addition of the proposed term loan it would have increased to 6.4x. Moody's views this metric as more representative of NSAL's leverage going forward. Although increased as a result of the rise in debt, NSAL's leverage remains within Moody's previously established rating guidance of below 7.0x. Navios Logistics' liquidity is adequate with cash of approximately $63 mm at June 30, 2017 and Moody's expected FFO of $36 mm in 2017. NSAL's largest debt maturity is in 2022 when its senior unsecured bonds are due; its other financings are amortizing. The proposed senior secured term loan will carry a 1% amortization per annum and mature in 2021. The stable rating outlook reflects Moody's expectations that the company's financial profile will improve following the commencement of the Vale contract in the next 12-18 months; in particular, Moody's anticipates Navios Logistics to maintain adequate liquidity and moderately reduce leverage. Positive rating movement would be likely if the rating of Navios Holdings is upgraded and, at the same time, NSAL maintains debt/EBITDA below 5.5x and (funds from operations + interest)/interest above 2.5x, together with an adequate liquidity profile. Negative rating pressure could arise if (1) NSAL's liquidity profile weakens materially; (2) its leverage deteriorates further from year-end 2016 level of 7.0x debt/EBITDA; or (3) if the rating of Navios Holdings is downgraded. The principal methodology used in these ratings was Global Shipping Industry published in February 2014. Navios South American Logistics Inc. is one of the principal logistics companies operating in the Hidrovia Region river system, which flows through Argentina, Brazil, Bolivia, Paraguay and Uruguay. The company's operations comprise waterborne transportation services for liquid and dry cargoes, as well as port, storage and related services. In 2016, NSAL generated revenues of $220 million and EBITDA of $68 million (as reported by the company). ============= B E R M U D A ============= SEADRILL LTD: Receives Two Add'l Debt Restructuring Proposals ------------------------------------------------------------- Nerijus Adomaitis at Reuters reports that court documents show Seadrill has received two additional non-binding proposals from bondholders for a debt restructuring after the Norwegian firm filed for U.S. Chapter 11 bankruptcy protection in September. According to Reuters, Seadrill said in documents submitted late on Oct. 20 the two indications of interest came from bondholders seeking alternatives to the firm's own plan. The company's own plan is backed by holders of 99% of Seadrill's bank loans and 40% of its bonds, and was submitted by its main shareholder, Norwegian-born billionaire John Fredriksen, and a group of hedge funds, Reuters discloses. It offered holders of US$2.3 billion of Seadrill's unsecured bonds a 14.3% stake in the restructured firm after dilution, and only a 1.9% stake for current shareholders, Reuters notes. As a way to show the U.S. bankruptcy court that there was no better plan, Seadrill's advisors have contacted 94 investors, including 15 oil rig companies, 45 financial investors and seven bondholders, Reuters relates. Seadrill, as cited by Reuters, said the two indications of interest received so far came from bondholders, and still required substantial impairment of unsecured creditors. About Seadrill Limited Seadrill Limited is a deepwater drilling contractor, providing drilling services to the oil and gas industry. It is incorporated in Bermuda and managed from London. Seadrill and its affiliates own or lease 51 drilling rigs, which represents more than 6% of the world fleet. As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled individuals across 22 countries and five continents to operate their drilling rigs and perform various other corporate functions. As of June 30, 2017, Seadrill had $20.71 billion in total assets, $10.77 billion in total liabilities and $9.94 billion in total equity. Seadrill reported a net loss of US$155 million on US$3.17 billion of total operating revenues for the year ended Dec. 31, 2016, following a net loss of US$635 million on US$4.33 billion of total operating revenues for the year ended in 2015. After reaching terms of a reorganization plan that would restructure $8 billion of funded debt, Seadrill Limited and 85 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 17-60079) on Sept. 12, 2017. Together with the chapter 11 proceedings, Seadrill, North Atlantic Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan") commenced liquidation proceedings in Bermuda to appoint jointprovisional liquidators and facilitate recognition and implementation of the transactions contemplated by the RSA and Investment Agreement. Simon Edel, Alan Bloom and Roy Bailey of Ernst & Young serve as the joint and several provisional liquidators. In the Chapter 11 cases, the Company has engaged Kirkland & Ellis LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor. Willkie Farr & Gallagher LLP, serves as special counsel to the Debtors. Slaughter and May has been engaged as corporate counsel, and Morgan Stanley serves as co-financial advisor during the negotiation of the restructuring agreement. Advokatfirmaet Thommessen AS serves as Norwegian counsel. Conyers Dill & Pearman serves as Bermuda counsel. PricewaterhouseCoopers LLP UK, serves as the Debtors' independent auditor; and Prime Clerk is their claims and noticing agent. On September 22, 2017, the U.S. Trustee for the Southern District of Texas appointed the official committee of unsecured creditors. The Committee hired Kramer Levin Naftalis & Frankel LLP, as counsel, Cole Schotz P.C., as local and conflict counsel. SEADRILL LTD: Ad Hoc Bondholders Group File Verified Statement -------------------------------------------------------------- Certain beneficial holders, or investment advisors or managers of beneficial holders of (i) the 5É?ù% Senior Notes due 2017 (the "Seadrill 2017 Notes") issued by Seadrill Limited, (ii) the 6.125% Senior Notes due 2020 (the "Seadrill 2020 Notes") issued by Seadrill, (iii) the FRN Seadrill Limited Senior Unsecured Bond Issue 2013/2018 (the "Seadrill NOK Notes") issued by Seadrill, (iv) the FRN Seadrill Limited Senior Unsecured Bond Issue 2014/2019 (the "Seadrill SEK Notes") issued by Seadrill, (v) the 6.25% Senior Notes due 2019 (the "NADL 2019 Notes") issued by North Atlantic Drilling Ltd. ("NADL"), and/or (vi) the FRN North Atlantic Drilling Limited Bond Issue 2013/2018 (the "NADL NOK Notes") issued by NADL and guaranteed by Seadrill, submitted on Oct. 23, 2017, a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. In September 2017, the Ad Hoc Group of Unsecured Noteholders retained Stroock & Stroock & Lavan LLP as counsel in connection with the restructuring of the Debtors and the Debtors' chapter 11 cases pending before the Court. In October 2017, the Ad Hoc Group of Unsecured Noteholders retained Baker Botts LLP as co-counsel, in connection with the restructuring of the Debtors and the Chapter 11 Cases. Stroock and Baker Botts have been advised by the members of the Ad Hoc Group of Unsecured Noteholders that, as of October 20, 2017, the individual members of the Ad Hoc Group of Unsecured Noteholders (and/or their affiliates and/or managed funds or accounts) hold, or are the investment advisors or managers for funds or accounts that hold, in the aggregate, claims against or interests in the Debtors arising from one or more of the following: (i) the Seadrill 2017 Notes, (ii) the Seadrill 2020 Notes, (iii) the Seadrill NOK Notes, (iv) the Seadrill SEK Notes, (v) the NADL 2019 Notes, (vi) the NADL NOK Notes, (vii) the common stock of Seadrill (the "Seadrill Equity"), and/or (viii) the common stock of NADL (the "NADL Equity"). The firms can be reached at: Ian E. Roberts, Esq. C. Luckey McDowell, Esq. Ian E. Roberts, Esq. BAKER BOTTS LLP 2001 Ross Avenue Dallas, TX 75201 Telephone: (214) 953-6500 Facsimile: (214) 953-6503 - and - Kristopher M. Hansen, Esq. Erez E. Gilad, Esq. Jonathan D. Canfield, Esq. STROOCK & STROOCK & LAVAN LLP 180 Maiden Lane New York, New York 10038 Telephone: (212) 806-5400 Facsimile: (212) 806-6006 The name, address and the nature and amount of the disclosable economic interests held or managed by each member of the Ad Hoc Group of Unsecured Noteholders in the aggregate, in relation to the Debtors as of October 20, 2017 are: 1. 683 Capital Partners, LP 3 Columbus Circle New York, NY 10019 * $26,750,000 principal amount of Seadrill 2017 Notes * $4,500,000 principal amount of Seadrill 2020 Notes * $3,000,000 principal amount of NADL 2019 Notes * 552,800 shares of Seadrill Equity * Put options w/ resp. to 6,924,100 shares Seadrill Equity 2. Atlant Fonder AB Sveav??gen 47 1 tr 113 59 Stockholm, Sweden * SEK 50,000,000 principal amount of Seadrill SEK Notes 3. Berling Capital Oy c/o Core Capital Management S.A. 46, Place Guillaume II L-1648 Luxembourg * $500,000 principal amount of Seadrill 2017 Notes 4. BFAM Partners (Hong Kong) Ltd. 148 Electric Road, Suite 3501, 35th Floor North Point, Hong Kong SAR * $4,000,000 principal amount of Seadrill 2017 Notes * $8,825,000 principal amount of Seadrill 2020 Notes 5. Black Diamond Arbitrage Offshore Ltd. c/o Carlson Capital, L.P. 2100 McKinney Avenue, Suite 1800 Dallas, Texas 75201 * $802,000 principal amount of Seadrill 2017 Notes * $692,000 principal amount of Seadrill 2020 Notes 6. Double Black Diamond Offshore Ltd. c/o Carlson Capital, L.P. 2100 McKinney Avenue, Suite 1800 Dallas, Texas 75201 * $9,131,000 principal amount of Seadrill 2017 Notes * $7,855,000 principal amount of Seadrill 2020 Notes 7. Black Diamond Offshore Ltd. c/o Carlson Capital, L.P. 2100 McKinney Avenue, Suite 1800 Dallas, Texas 75201 * $1,167,000 principal amount of Seadrill 2017 Notes * $1,003,000 principal amount of Seadrill 2020 Notes 8. Carmignac Gestion S.A. 24 place Vend??me 75001 Paris, France * $62,428,000 principal amount of NADL 2019 Notes 9. Cedarview Capital Management, L.P. One Penn Plaza, 45th Floor New York, NY 10119 * $1,800,000 principal amount of Seadrill 2017 Notes 10. City Financial Investment Company Limited 62 Queen Street London EC4R 1EB, United Kingdom * $7,000,000 principal amount of Seadrill 2017 Notes * NOK 25,000,000 principal amount of Seadrill NOK Notes 11. DnB High Yield c/o DnB Asset Management Dronning Eufemias gate 30 N-0021 Oslo, Norway * $10,450,000 principal amount of Seadrill 2017 Notes * $4,202,000 principal amount of Seadrill 2020 Notes * SEK 10,000,000 principal amount of Seadrill SEK Notes 12. DnB High Yield SICAV c/o DnB Asset Management Dronning Eufemias gate 30 N-0021 Oslo, Norway * $2,810,000 principal amount of Seadrill 2017 Notes 13. Nordic High Income Bond Fund c/o DnB Asset Management Dronning Eufemias gate 30 N-0021 Oslo, Norway * $945,000 principal amount of Seadrill 2017 Notes * SEK 4,000,000 principal amount of Seadrill SEK Notes 13. Fidelidade Companhia de Seguros, S.A. Largo do Calhariz 30 - 3?ß (Edif??cio Palmela) 1249-001 Lisboa, Portugal * $70,000,000 principal amount of Seadrill 2017 Notes 14. Roc Oil Company Limited Level 12, 20 Hunter Street Sydney NSW 2000, Australia * $5,000,000 principal amount of Seadrill 2017 Notes 15. Frost Investment Advisors, LLC 100 W. Houston Street, 15th Floor San Antonio, TX 78205 * $10,050,000 principal amount of Seadrill 2017 Notes 16. Graham Capital Management, L.P. 40 Highland Avenue Norwalk, CT 06853 * $7,925,000 principal amount of Seadrill 2017 Notes * $14,180,000 principal amount of Seadrill 2020 Notes * $8,241,000 principal amount of NADL 2019 Notes * 626,403 shares of Seadrill Equity (short) * Call options w/ resp. to 9,375,000 shares Seadrill Equity 17. Mr. Juho Halinen c/o Core Capital Management S.A. 46, Place Guillaume II L-1648 Luxembourg * $200,000 principal amount of Seadrill 2017 Notes 18. Hawkeye Capital Management, LLC 1251 Avenue of the Americas, 8th Floor New York, NY 10020 * $3,000,000 principal amount of Seadrill 2017 Notes 19. If P&C Insurance (ltd) Barks v??g 15 SE-106 80 Stockholm, Sweden * $14,500,000 principal amount of Seadrill 2020 Notes * NOK 17,000,000 principal amount of Seadrill NOK Notes * SEK 179,000,000 principal amount of Seadrill SEK Notes * $20,500,000 principal amount of NADL 2019 Notes * NOK 127,000,000 principal amount of NADL NOK Notes 20. Income Partners Asset Management (HK) Ltd. Suite 3311-3313, Two IFC 8 Finance Street Central, Hong Kong SAR * $6,000,000 principal amount of Seadrill 2017 Notes * $2,950,000 principal amount of Seadrill 2020 Notes 21. Insparo Asset Management Ltd. Woolworth House 242-246 Marylebone Road London NW1 6JQ, United Kingdom * $14,681,000 principal amount of Seadrill 2017 Notes 22. Kite Lake Capital Management (UK) LLP 1 Knightsbridge Green, 6th Floor London SW1X 7QA, United Kingdom * $1,000,000 principal amount of Seadrill 2020 Notes * NOK 7,000,000 principal amount of Seadrill NOK Notes * 3,030,000 NOK shares of Seadrill Equity (short) 23. Mamore Holding B.V. Oude Woudenbergse Zandweg 40 3707 AN Zeist, Netherlands * $500,000 principal amount of Seadrill 2020 Notes 24. Mandatum Life Insurance Company Ltd. Bulevardi 56 FI-00101 Helsinki, Finland * $200,000 principal amount of Seadrill 2020 Notes * NOK 41,000,000 principal amount of Seadrill NOK Notes * $10,000,000 principal amount of NADL 2019 Notes * NOK 25,000,000 principal amount of NADL NOK Notes * 13,465 shares of Seadrill Equity * 1,082 shares of NADL Equity 25. Mandatum Life SICAV-SIF - Mandatum Life Nordic High Yield Total Return Fund c/o Mandatum Life Fund Management S.A. 26-28, rue Edward Steichen L-2540 Luxembourg * $2,900,000 principal amount of NADL 2019 Notes 26. Mr. Alexey Mauergauz 7 Grosvenor Crescent SW1X 7EE, London, UK * $20,000,000 principal amount of Seadrill 2020 Notes 27. MP Pensjon PK Postboks 665 Sentrum 0106 Oslo, Norway * $7,100,000 principal amount of Seadrill 2017 Notes * $12,280,000 principal amount of Seadrill 2020 Notes * NOK 38,000,000 principal amount of Seadrill NOK Notes * SEK 38,000,000 principal amount of Seadrill SEK Notes * $6,000,000 principal amount of NADL 2019 Notes * NOK 55,000,000 principal amount of NADL NOK Notes * 1,540 shares of Seadrill Equity * 33,520 shares of NADL Equity 28. New Generation Advisors, LLC 13 Elm Street, Suite 2 Manchester, MA 01944 * $5,300,000 principal amount of Seadrill 2017 Notes * $16,750,000 principal amount of Seadrill 2020 Notes 29. Nine Masts Capital Limited 23/F Shanghai Commercial Bank Tower 12 Queen's Road Central, Hong Kong * $68,150,000 principal amount of Seadrill 2017 Notes * $16,838,000 principal amount of NADL 2019 Notes 30. Partners Value Investments LP 181 Bay Street Toronto, ON M5J 2T3 * $15,155,000 principal amount of Seadrill 2017 Notes 31. Phoenix Investment Adviser LLC 420 Lexington Avenue, Suite 2040 New York, NY 10170 * $6,500,000 principal amount of Seadrill 2017 Notes * $7,000,000 principal amount of Seadrill 2020 Notes 32. Quaker Funds Inc. 1180 West Swedesford Road #150 Berwyn, PA 19312 * $550,000 principal amount of Seadrill 2017 Notes 33. Stillwater LLC 654 Madison Avenue, Floor 9 New York, NY 10065 * $2,000,000 principal amount of Seadrill 2017 Notes 34. Umo Capital Oy c/o Core Capital Management S.A. 46, Place Guillaume II L-1648 Luxembourg * $300,000 principal amount of Seadrill 2017 Notes 35. Vertex One Asset Management Inc. on behalf of Vertex Enhanced Income Fund (YVRF 4001002) 1021 W Hastings St #3200 Vancouver, BC V6E 0C3, Canada * $2,500,000 principal amount of Seadrill 2017 Notes 36. Wilfrid Aubrey LLC 405 Lexington Ave # 3500 New York, NY 10174 * $1,000,000 principal amount of Seadrill 2017 Notes * $1,000,000 principal amount of Seadrill 2020 Notes About Seadrill Limited Seadrill Limited is a deepwater drilling contractor, providing drilling services to the oil and gas industry. It is incorporated in Bermuda and managed from London. Seadrill and its affiliates own or lease 51 drilling rigs, which represents more than 6% of the world fleet. As of Sept. 12, 2017, Seadrill employs 3,760 highly-skilled individuals across 22 countries and five continents to operate their drilling rigs and perform various other corporate functions. As of June 30, 2017, Seadrill had $20.71 billion in total assets, $10.77 billion in total liabilities and $9.94 billion in total equity. Seadrill reported a net loss of US$155 million on US$3.17 billion of total operating revenues for the year ended Dec. 31, 2016, following a net loss of US$635 million on US$4.33 billion of total operating revenues for the year ended in 2015. After reaching terms of a reorganization plan that would restructure $8 billion of funded debt, Seadrill Limited and 85 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 17-60079) on Sept. 12, 2017. Together with the chapter 11 proceedings, Seadrill, North Atlantic Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan") commenced liquidation proceedings in Bermuda to appoint joint provisional liquidators and facilitate recognition and implementation of the transactions contemplated by the RSA and Investment Agreement. Simon Edel, Alan Bloom and Roy Bailey of Ernst & Young serve as the joint and several provisional liquidators. In the Chapter 11 cases, the Company has engaged Kirkland & Ellis LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor. Willkie Farr & Gallagher LLP, serves as special counsel to the Debtors. Slaughter and May has been engaged as corporate counsel, and Morgan Stanley serves as co-financial advisor during the negotiation of the restructuring agreement. Advokatfirmaet Thommessen AS serves as Norwegian counsel. Conyers Dill & Pearman serves as Bermuda counsel. PricewaterhouseCoopers LLP UK, serves as the Debtors' independent auditor; and Prime Clerk is their claims and noticing agent. The official committee of unsecured creditors formed in the case has retained Kramer Levin Naftalis & Frankel LLP as counsel and Cole Schotz P.C. as co-counsel. =========== B R A Z I L =========== JBS SA: Completes Vigor Sale ---------------------------- Meat + Poultry News reports that JBS SA has concluded its sale of the company's stake in Vigor Alimentos, a large dairy business based in Mexico, to Grupo Lala S.A.B. de C.V. for R$1,112 million (US$341 million) of which JBS is receiving approximately R$786 million (US$241.07 million). JBS SA said the company plans to use the proceeds from this transaction to reduce the company's debt, according to Meat + Poultry News. The sale is part of a larger divestment program announced in June, the report notes. The sale includes non-core and other assets expected to generate $1.8 billion in cash for JBS SA. Other assets in the program included Moy Park, a poultry processor based in Northern Ireland and the assets and farms belonging to Five Rivers Cattle Feeding, the report relays. Greeley, Colorado-based Pilgrim's Pride Corp., a unit of JBS SA, acquired Moy Park in September, the report notes. Five Rivers Cattle Feeding has a combined feeding capacity of more than 980,000 head of cattle with locations in Colorado, Kansas, Oklahoma, Texas, Arizona and Idaho, according to the company's website, the report relays. Five Rivers also manages a 75,000- head capacity feedlot in Brooks, Alberta, Canada on behalf of JBS Food Canada, the report adds. JBS SA: Withdraws Plan for US Processed Food Unit IPO ----------------------------------------------------- CNBC News reports that JBS SA has pulled a planned $500 million initial public offering of processed food subsidiary JBS Foods International BV, almost six months after a spree of corruption and food safety scandals in Brazil hurt investor demand for the deal. In a filing with the U.S. Securities and Exchange Commission, JBS Foods International requested a withdrawal of the IPO. Neither company elaborated further nor gave a new timetable for the IPO, according to CNBC News. Both companies first announced plans for a U.S. offering on Dec. 5. Sao Paulo-based JBS, the world's No. 1 meatpacker, reaffirmed plans to list the subsidiary in August, saying a transaction could take place by the end of next year, the report notes. CNBC News relays that the proposal for the JBS Foods International IPO was first tested in March, after a scandal over an alleged bribery of health officials triggered bans on Brazilian meat exports. Two months later, two members of the family that controls JBS agreed to a plea bargain deal in Brazil relating to a corruption probe, the report notes. A collapse of the plan is a setback for Brazil's billionaire Batista family, which owns 42 percent of JBS and saw the IPO as a way to improve JBS's global standing, the report says. The transaction was seen as a way to help decouple JBS's businesses from Brazil ? where reputational issues impaired share performance in recent months, the report notes. Reuters reported in March and in May, shortly after the food safety and corruption scandals, respectively, that JBS would press ahead with the $1 billion IPO plan despite dwindling investor confidence, the report discloses. Brothers Wesley and Joesley Batista were arrested last month in connection with insider trading and other offenses related to their plea deal. Wesley, the elder of the two and also JBS's former chief executive, had to quit as a result, the report relays. Both Batistas worked personally on the refinancing of BRL21 billion ($6.7 billion) in short-term debt of JBS and spearheaded the sale of several assets, the report adds. JBS SA: S&P Lowers CCR to 'B' on Upcoming Refinancing Risks ----------------------------------------------------------- S&P Global Ratings lowered its global scale corporate credit ratings on JBS S.A. (JBS) and JBS USA Lux S.A. to 'B' from 'B+'. S&P said, "In addition, we lowered our national scale rating on JBS to 'brBB+' from 'brBBB+'. We also lowered the senior unsecured debt ratings on JBS and JBS USA to 'B' from 'B+' and the senior secured debt ratings on JBS USA to 'BB-' from 'BB'. The outlook on the corporate credit ratings remains negative." All recovery ratings remain unchanged. The recovery rating of '1' on JBS USA's senior secured debt reflects very high (95%) recovery expectations. The recovery rating of '3' on JBS USA's senior unsecured debt reflects meaningful (65%) recovery expectations. And the recovery rating of '4' on JBS's senior unsecured debt reflects average (35%) recovery expectations. S&P said, ""The downgrade reflects our view of higher reputational risks for JBS after the detention of its two ultimate controlling shareholders in September?one of whom was JBS' CEO--for suspected insider trading. This could result, in our view, in additional pressures on the company's refinancing negotiations with banks until the middle of next year, when the debt from the recent agreement with banks is due. Although JBS has been reducing its short-term debt with proceeds from asset sales, it would still face a large maturity amount in July 2018, R$10 billion ? R$13 billion, while it does not generate sufficient cash to pay down this entire amount at once. Additionally, any potential contingent liability or developments from the ongoing investigations could pose additional risks for company's access to capital and credit markets. We incorporate all these risks in our comparable ratings analysis score that we now revised to negative from neutral." Mitigating these risks is JBS's improving profitability mainly outside of Brazil due to lower input costs than those last year and solid demand fundamentals. If these conditions persist, they should allow for stronger cash flow generation, which could ease refinancing discussions. S&P's management and governance assessment on JBS remains weak mostly because the recent corruption scandal indicates severe governance deficiencies that weigh on the company's ability to efficiently execute its business plan and manage risks and liabilities. SAO MARTINHO: S&P Alters Outlook to Pos. on Rising Free Cash Flow ---------------------------------------------------------------- S&P Global Ratings revised its global scale corporate credit outlook on S?o Martinho S.A. (SMO) to positive from stable. S&P also affirmed its 'BB+' global scale rating on the company. At the same time, S&P affirmed its 'brAAA' national scale corporate credit rating with a stable outlook. The positive outlook indicates that an upgrade is likely in the next 18-24 months amid SMO's consistently increasing cash flow, which should translate into a debt-to-EBITDA ratio consistently below 2.5x, funds from operations (FFO) to debt above 40%, and FOCF to debt approaching 15%-25% in the next few quarters. This is thanks to the company's resilient operations despite sugar price volatility and Brazil's weak economy. SMO's deleveraging should accelerate due to the acquisition and now full consolidation of the remaining stake in Usina Boa Vista (UBV; a former joint- venture with Petroleo Brasileiro S.A. - Petrobras). SMO financed the acquisition with equity in February 2017. S&P said, "The recent deleveraging and expectation of stronger free cash flows prompted us to revise the financial risk profile assessment on the company to intermediate from significant, which raised the anchor to 'bbb-' from 'bb+'. However, for an upgrade, we expect to a see longer track record of improved metrics even amid weaker prices for sugar in 2018, which underpins our current negative comparable rating analysis assessment on the company." SMO has maintained its sound agricultural yields and operating margins, resulting in above-average profitability with low volatility. The latter allows the company to continue deleveraging despite the crop losses stemming from severe weather conditions in the 2016-2017 harvest that ended in March 31, 2017. S&P understands that SMO's operations benefit from favorable mill locations, investments in the fields, advanced agricultural technology, and hedging strategy. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Northwest Banana Growers Want Solutions ----------------------------------------------------------- Dominican Today reports that banana grower Rafael Sosa warned the that country could lose its international banana market in the coming months if the urgent measures aren't taken to recover thousands of hectares flooded by the recent hurricanes. Speaking for the Northwest banana producers, Sosa said that from some 340,000 boxes of bananas exported per week, the figue fell to around 228,000, according to Dominican Today. "And the pity of the case is that we don't have an immediate solution to our problems, everything has stayed in promises and more promises," he said, the report notes. The agro leader, speaking at a meeting hosted by the National Agricultural Producers Federation, said the Northwest's banana production sustained major damage, since it was barely recovering from last year's floods, "when first Irma and then Maria arrived, finished ruining everything," the report relays. "The producers donot want things given to us, we want definitive solutions, and those solutions to the floods are the construction of the dams at Amina, on the Guayub°n river and even at Cana Chapeton," Sosa said, quoted by diariolibre.com, the report adds. 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. * DOMINICAN REPUBLIC: To Require License for High-Volume Imports ---------------------------------------------------------------- Dominican Today reports that customs will require the import license issued by Internal Taxes (DGII) for imports in quantities higher than allowed, on alcoholic beverages, tobacco and cigarettes through the couriers and will charge the corresponding tax. Customs said the measure will take effect in two weeks from the publication, according to Dominican Today. "The measure includes, without limitation, beverages such as beers, wines and cigarettes, in addition to those valued at less than US$200.00," customs said, the report notes. In a statement, Customs said importers will be required to present their respective import licenses issued by the DGII to those, prior to dispatching merchandise, the report relays. Customs notes however that that imports for self-consumption and non-commercial purposes may be dispatched without producing such a license," the report discloses. That dispatch can only be executed provided that such imports don't exceed the amount of 5 liters in alcoholic beverages or 20 packs of 10 units of cigarettes," the report relays. It adds that the import license requirement is due to the fact that upon arrival the merchandise must be manifested in the category "D," or high-value shipments or subject to restriction, the report adds. 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. ============= J A M A I C A ============= DIGICEL GROUP: Renews Partnership With Irish Mobile Firm -------------------------------------------------------- RJR News reports that Digicel Group has renewed a partnership with Irish mobile software company Anam to secure its international traffic channels against short message service (SMS) fraud and spam. Anam's technology helps Digicel to filter, monitor and report on international application-to-person SMS traffic on its 31 networks across the Caribbean, Central America and south-east Asia, accoding to RJR News. CEO of Digicel in the Caribbean and Central America, Vanessa Slowey, says the partnership with Anam gives the company a state- of-the-art solution to protect customers, guard against revenue fraud and to open new revenue streams, the report notes. Anam's Assure platform enables operators to detect and monetize revenue leakage associated with mobile messaging, the report relays. The company's patented core firewall functionality also provides protection against unwanted SMS traffic or spam, the report discloses. Digicel signed a three-year deal with Anam in 2015, the report says. The new deal signed in Jamaica extends the current arrangement which was due to run out in March 2018 by a further five years to April 2023, the report adds. As reported in the Troubled Company Reporter-Latin America on May 26, 2017, Fitch Ratings has affirmed at 'B' the Long-term Foreign-currency Issuer Default Ratings (IDR) of Digicel Group Limited (DGL) and its subsidiaries, Digicel Limited (DL) and Digicel International Finance Limited (DIFL), collectively referred to as Digicel. The Rating Outlook is Stable. Fitch has also affirmed all existing issue ratings of Digicel's debt instruments. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Former Head Says Bonds Will Be Paid ----------------------------------------------------------- Jose Enrique Arrioja and Daniela Guzman at Bloomberg News report that the former chief executive officer of Venezuela's state run- oil company said it will make debt payments this year and next, even as he acknowledged the crude producer is struggling with cash-flow and operational issues. The company has "all the resources to honor its liabilities," Rafael Ramirez, who is now Venezuela's ambassador to the United Nations, said in an interview in New York. "We are not in a position to fail," according to Bloomberg News. Bloomberg News notes that he urged skeptical analysts to focus on Petroleos de Venezuela SA's fundamentals and said investors can take comfort in the fact that the South American country sits on the world's largest oil reserves. Bloomberg News relays that Mr. Ramirez sought to calm bond traders who have doubts that Venezuela and PDVSA, as the oil company is known, will be able to make more than $3 billion of debt payments before the end of the year in the face of an economic crisis at home and financial sanctions that have limited the country's ability to raise financing. PDVSA securities that mature in less than two weeks are trading at just 94 cents on the dollar, reflecting that pessimism, Bloomberg News notes. Bloomberg News discloses that Mr. Ramirez, who ran PDVSA from 2002 to 2014 and as oil minister was the longest-serving cabinet member under former President Hugo Chavez, said the company "has a well- developed structure and knows how to produce oil" even if it suffers from "severe" operational and cash-flow issues. He said the sanctions imposed by the U.S. in August, after what the Trump administration said were President Nicolas Maduro's moves to subvert democracy, are aimed at creating the perception the country won't be able to honor its debt, Bloomberg News says. "Venezuela is used to working under distress, under pressure," Mr. Ramirez said, Bloomberg News notes. "We have managed to not only diversify our oil markets, with China, India and Russia, but to diversify our financing alternatives," he added. Bloomberg News discloses that Mr. Ramirez said that even with these problems, Venezuela has "no need to default" and that the company and country seek to "maintain our creditors' and partners' trust." PDVSA owes $985 million in interest and principal. Six days later, it's on the hook for another $1.2 billion, Bloomberg News relays. While the country's $10 billion in reserves suggests it has the cash to make the payments, it has struggled in recent months to transfer funds on time as the sanctions prompt banks to apply extra scrutiny to its financial transactions, Bloomberg News adds. As reported in the Troubled Company Reporter-Latin America on Oct. 24, 2017, S&P Global Ratings placed its ratings on Petroleos de Venezuela S.A. (PDVSA) on CreditWatch with negative implications, including its 'CCC-' corporate credit ratings. *********** 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, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2017. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Joseph Cardillo at 856-381-8268. * * * End of Transmission * * *