/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/180222.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, February 22, 2018, Vol. 19, No. 38 Headlines B R A Z I L RIO DE JANEIRO: S&P Affirms 'BB-/B' ICRs, Outlook Stable RIO DE JANEIRO: Troops, Police Launch Operation in Rio Favelas J A M A I C A NATIONAL COMMERCIAL: Fitch Affirms B IDR; Alters Outlook to Pos. M E X I C O CREDITO REAL: Fitch Affirms BB+ Long-Term IDR; Outlook Stable P U E R T O R I C O ALEXIS SANTOS: Court Directs U.S. Trustee to Appoint Ombudsman ARO LIQUIDATION: Tags Optium Fund 2 as Best Bid For Visa/MC Claim BORINQUEN ANESTHESIA: Taps Juan C. Bigas as Legal Counsel LATIN AMERICAN MUSIC: To Pay Unsecured Creditors in Full NUTRITION CARE: U.S. Trustee Directed to Appoint Ombudsman T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Questions Surround Hiring of Executives V E N E Z U E L A VENEZUELA: Denies its Soldiers Work With Colombian Rebel Group VENEZUELA: Chavismo Seeks New Legislative Elections VENEZUELA: OAS Head Almagro Calls for More Sanctions on Country - - - - - =========== B R A Z I L =========== RIO DE JANEIRO: S&P Affirms 'BB-/B' ICRs, Outlook Stable -------------------------------------------------------- On Feb. 19, 2018, S&P Global Ratings affirmed its 'BB-/B' foreign and local currency issuer credit ratings on the city of Rio de Janeiro. The outlook remains stable. S&P also affirmed its 'brAA-' Brazil national scale rating on the city. OUTLOOK S&P said, "The stable outlook primarily reflects the stable outlook on Brazil, and our view that the city's financial management will remain prudent and liquidity more than sufficient to cover debt service over the next 12 months, despite ongoing pressure on budgetary performance. We consider that the city cannot have a higher rating than the sovereign while operating under a volatile and unbalanced institutional framework. Therefore, any rating or outlook change on Brazil in the next 12 months may affect our ratings and outlook on Rio de Janeiro." Downside scenario S&P could lower the ratings on Rio de Janeiro in the next 12 months if: -- S&P lowered the local and foreign currency sovereign ratings on Brazil; -- The city's financial management practices weakened, resulting in higher deficits than in our base case and insufficient liquidity to meet debt obligations; or -- Rio's economy weakened substantially, given potentially worsening public security conditions, and the city's per capita GDP did not appear to support greater economic flexibility and revenue-raising capacity. Upside scenario S&P said, "Because Rio de Janeiro does not meet our conditions to be rated above the sovereign, we could raise our ratings on the city within the next 12 months only if we were to raise our local and foreign currency sovereign ratings on Brazil." RATIONALE S&P said, "Our 'BB-' long-term rating on Rio de Janeiro is now one notch below the city's 'bb' stand-alone credit profile (SACP). This is because we believe the city's debt profile and budgetary performance will weigh more on its creditworthiness over the next two years, owing to higher operating deficits and debt. The SACP is not a rating but a means of assessing the intrinsic creditworthiness of a local or regional government (LRG) under the assumption that there is no sovereign rating cap. The SACP results from a combination of our assessment of an LRG's individual credit profile and the institutional framework in which it operates." Challenging economic conditions and institutional framework are somewhat mitigated by the city's financial management The prolonged crisis in the state of Rio de Janeiro again took its toll on the city's fiscal performance and economy in 2017. Formal job creation contracted throughout the year, and the unemployment rate, traditionally lower than Brazil's, rose to around 13% in the third quarter of 2017, which is close to the national average. "S&P said,We estimate that the city's GDP per capita declined to $15,413 in 2015-2017, but we expect it will recover to $16,760 in 2018. We believe this will stem from a pickup in the oil sector, ongoing tourist inflows, the state's adherence to the federal fiscal recovery regime (which will provide temporary cash relief to the state, including access to borrowing to make salary payments), and expected 2.2% GDP growth in Brazil." The structural rigidities of Brazil's intergovernmental system have prevented LRGs from achieving a revenue-and-expenditure balance. Along with poor management practices, these rigidities weighed on the state of Rio de Janeiro's fiscal and economic performance, which in turn has a strong influence on the city. S&P said, "In our view, Brazilian LRGs' institutional framework is volatile and unbalanced. Overall, this reflects our evaluation of an intrinsically rigid intergovernmental system that has failed to address LRGs' significant budgetary imbalances, which we believe isn't likely to change over the short to medium term. These factors, in our view, have left LRGs unprepared to address key long-term spending trends and financing options. We believe, however, that the framework continues to display an adequate level of predictability and transparency, with enhanced central government oversight of LRGs' finances and adherence to fiscal discipline." In this context, Mayor Marcelo Crivella of the conservative Brazilian Republican Party has embraced fiscal austerity measures since taking office in 2017. These include increasing property and services taxes, cutting spending by decree, and establishing special commissions to monitor expenses. So far, Mr. Crivella has been successful in passing reforms at the local legislature. S&P said, "We expect additional legislative progress on important corrective measures, such as a proposal to tax pensions that exceed the national social security ceiling. At the same time, however, longer-term capital and financial planning has weakened. The city now has a short- to medium-term focus, with what we regard as less realistic budgetary assumptions than in the past." Stressed budgetary results and higher debt will continue to strain the city's cash position S&P said, "In our view, Rio de Janeiro's budgetary performance will remain under stress over the next three years. This is owing to higher budgetary outlays related to pensions and personnel, capital expenses that the city cannot reduce further, and higher debt service. Tax increases approved in 2017, a potential tax on pensioners earning more than the national social security ceiling, and ongoing efforts to rationalize spending will offset these factors somewhat. However, given that the city has recently introduced measures to increase revenues, we do not expect it will pass further laws over the next several years. We expect its own- source revenues will remain close to 65% of adjusted operating revenue in 2018-2020. "In our base-case scenario for 2018, we assume the city's operating balances will remain negative, although better than in 2017, at around 3.9% of operating revenues, with the deficit after capital expenditure (capex) at nearly 8% of total revenue. We expect a gradual improvement by 2020, translating into an operating surplus at 1% of operating revenues and an after-capex deficit of 2.8% of total revenues. Works related to recent sports events have concluded, and we expect capex levels will drop, as already seen in 2017. At the same time, given the city's infrastructure needs, its ability to make further cuts is limited; therefore, capex will likely remain at about 4.4% of total spending over 2018-2020. "The city's administration doesn't plan on funding any large new investment projects amid its fiscal belt-tightening, and we don't anticipate it will incur significant amounts of new debt beyond that already agreed. We expect the city's debt will decline to 67% of operating revenue by 2020 from 74% at year-end 2017. Although its nominal debt increased by only 5%, debt in relative terms increased because of the contraction in operating revenues. We expect revenues will increase only modestly in 2018-2020, thus keeping direct debt above 60% of operating revenues. "We expect Rio de Janeiro's liquidity will cover its debt service by almost 1.1x in 2018. We believe, however, that its very weak budgetary performance in 2018 will lead to some volatility in the liquidity ratio. We assess the city's access to external liquidity as limited. This assessment considers our Banking Industry Country Risk Assessment (BICRA) of '6' in Brazil. Our BICRAs rank banking systems on a scale from '1' to '10', with group '1' denoting the lowest-risk banking systems." The city incorporates all but one government-related entity (GRE) into its finances, debt, and liquidity reserves. This GRE is Companhia de Desenvolvimento Urbano da Regiao do Porto do Rio de Janeiro S/A (CDURP), a mixed-purpose company whose main function is to implement projects and public services in the city's port. As of Dec. 31, 2017, CDURP had assets of Brazilian real (R$) 5.6 billion and liabilities of R$4.8 billion. The company doesn't have loans from banks. Additionally, the city has the following public- private partnerships: Porto Maravilha, for which CDURP is the public counterparty; the light rail vehicle that connects the city's port area with its downtown; and Barra Olympic Park. The city also has concessions for a sewage treatment service, Saneamento Zona Oeste, a zoo, and a toll road. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee agreed that the debt burden and budgetary performance had deteriorated. All other key rating factors were unchanged. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Ratings Affirmed Rio de Janeiro (City of) Issuer Credit Rating BB-/Stable/B Brazil National Scale Rating brAA-/Stable/-- RIO DE JANEIRO: Troops, Police Launch Operation in Rio Favelas -------------------------------------------------------------- The Guardian reports that more than 3,000 soldiers and police officers launched an operation in Rio de Janeiro's City of God favela in response to spiraling violence just days before the world famous carnival. The operation followed mounting insecurity in City of God, a sprawling working class neighborhood, and other favelas where drug traffickers armed with automatic rifles rule the streets, according to The Guardian. Troops were deployed at dawn mostly to encircle City of God, blocking access roads, while heavily armed police entered in search of suspects, the report notes. However, an AFP correspondent also saw soldiers inside the favela where they and police guarded the maze-like network of streets, the report relays. By mid-morning 10 people have been taken to police stations to be identified, a spokesman for the Rio security secretary said, the report says. The report discloses that the G1 news site reported that as many as 22 people and seven minors had been detained in operations focused on seeking a slew of gang leaders. In the Mare favela, there were fierce exchanges of gunfire between traffickers and police, the report relays. A 13-year-old boy was killed and protesting locals set fires and used stones to block Rio's three principal highways which all pass by Mare, the report notes. Hours earlier, criminals opened fire on a car, killing a three- year-old girl, local media reported, the report says. Brazil's armed forces deployed to Rio de Janeiro in July 2017 to help the badly overstretched police, the report notes. Rio state has been badly hit by Brazil's recession and the slump in the oil market in the last few years, as well as massive corruption, the report discloses. Last month, Defense Minister Raul Jungmann said that nationwide the security system "is broken," the report relays. The Rio carnival gets into full swing, with the colorful samba parades attracting an estimated 1.5 million tourists, the report adds. ============= J A M A I C A ============= NATIONAL COMMERCIAL: Fitch Affirms B IDR; Alters Outlook to Pos. ---------------------------------------------------------------- Fitch Ratings has affirmed National Commercial Bank Jamaica Limited's (NCBJ) Long-term and short-term, foreign and local currency Issuer Default Ratings (IDR) at 'B', Viability Rating (VR) at 'b' and Support Rating at 'B'. Following Fitch's revision of the Jamaican sovereign's Outlook to Positive on Jan. 31, 2018, Fitch has similarly revised NCBJ's Outlook to Positive from Stable, as the Jamaican operating environment remains the principal constraint on NCBJ's ratings. A full list of rating actions is at the end of this release. KEY RATING DRIVERS IDRS AND VR The bank's IDRs and VR reflect the high influence of the operating environment given its exposure to the sovereign as well as the bank's reach into all major sectors of the Jamaican economy through its diverse corporate and retail banking, insurance and securities services. As a result, NCBJ's IDRs are in line with those of the sovereign. The Positive Outlook reflects the government's reduced refinancing risks due to improved market access, continued fiscal discipline, positive public debt dynamics, stronger business confidence and improved employment trends, notwithstanding a rate of real GDP growth rate well below the regional average. Advancements in monetary policy and financial regulation have also contributed to a more favourable operating environment. The Bank of Jamaica has adopted formal inflation targeting and harmonized regulation across all deposit-taking institutions. It has taken actions to reduce deposit dollarization, raised governance standards and is in the process of establishing consolidated capital requirements for financial holding companies. In addition, the country's first credit bureaus have improved credit information, supporting an improving loan quality trend throughout the banking system. In terms of its consolidated financial performance, NCBJ's capital metrics represent a key strength. At December 2017, NCBJ reported a ratio of tangible common equity to tangible assets of 15.9% compared to a regional sector median of approximately 8.0%. NCBJ's liquidity position is also solid, benefitting from a stable deposit base and access to local and international capital markets. Overall, liquid assets, including un-pledged trading securities, available for sale securities, cash and bank deposits, covered 62.7% of deposits and short-term funding. However, it should be noted that NCBJ's securities portfolio consist predominantly of speculative grade government bonds that could become less liquid in a stress scenario. The bank's loan quality indicators have demonstrated steady improvement. Non-performing loans declined to 2.1% at fiscal year- end 2017 from 3.1% the year prior. The bank's relatively low loan loss reserves should be viewed in light of non-distributable reserves in the capital account. Taking into account these voluntary reserves, reserve coverage was 147.1% of nonperforming loans. Ratings also consider the bank's stable operating profitability (6.8% of adjusted risk weighted assets at fiscal year-end 2017). The bank has successfully compensated for a steadily pressured net interest margin with fee, commission and premium income. Non-interest income grew to 43.9% of gross revenues (less interest and fee expense) during fiscal year 2017. SUPPORT RATING AND SUPPORT RATING FLOOR The Support Rating Floor of 'B' is equalized with the sovereign rating, reflecting NCBJ's systemic importance. However, notwithstanding the government's record of extraordinary support to the banking system during prior crises, NCBJ's Support Rating of '4' reflects uncertainties over the sovereign's capacity to provide future support in light of its high levels of indebtedness. RATING SENSITIVITIES IDRS AND VR The bank's IDRs and VR would likely move in line with a change in the sovereign rating, which currently has a Positive Outlook. Alternatively, a revision of the sovereign Rating Outlook to Stable would likely result in an affirmation of NCBJ's ratings and a similar reversion of its Outlook to Stable. SUPPORT RATING AND SUPPORT RATING FLOOR While Fitch views the sovereign's propensity to provide timely support to NCBJ as high due to the bank's systemic importance, NCBJ's SR has limited upside potential given the weakness of the government's creditworthiness. Fitch has affirmed NCBJ's ratings as follows: NCBJ -- Long-term foreign and local currency IDRs at 'B'; Outlook to Positive from Stable; -- Short-term foreign and local currency IDRs at 'B'; -- Viability Rating at 'b'; -- Support Rating at '4'; -- Support Rating Floor at 'B'. =========== M E X I C O =========== CREDITO REAL: Fitch Affirms BB+ Long-Term IDR; Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Credito Real, S.A.B. de C.V., SOFOM, E.R. (Credito Real) ratings including the Long-Term Foreign and Local Currency Issuer Default ratings (IDRs) at 'BB+', Outlook Stable. KEY RATING DRIVERS IDRs, NATIONAL RATINGS and SENIOR UNSECURED DEBT The rating affirmation reflects Credito Real's leading market position in the payroll deductible loans business in Mexico, as well as its business model differentiators, such as its income/risk sharing agreements with distributors, which have historically resulted in peer-superior asset quality. The affirmation considers the company's strong profitability metrics, albeit lower than in years prior to 2015, supported by resilient margins and a growing loan portfolio; adequate loss absorption capacity and gradual business model diversification. Rating constrains include its relatively high risk appetite as a result of its inorganic growth strategies, its niche business nature which targets low income clients and its growing presence in lower rated countries in Central America as well as the operational, political and reputational risks related to its payroll business. Its reliance on wholesale funding sources and its exposure to FX rate fluctuations mainly arising from the unhedged principal of its subordinated notes and its operations outside of Mexico also limit its ratings. Credito Real's strong profitability continues to be a rating strength. This despite it being lower currently compared to years prior to 2015 as it was adversely affected in 2015 and 2016 by the increased operational costs from the businesses acquired and more recently by higher impairment charges as a result of increased non-performing loans (NPLs) in the Central American operation of Instacredit. The pre-tax income to average assets ratio stood at a sound 6.5% at the third quarter of 2017 (3Q17), down from an average of 8.4% over the past four years. Fitch believes profitability should stabilize around current levels as Instacredit's underwriting standards were recently strengthened. Adjusted asset quality metrics (which consider charge-offs) moderately deteriorated as of 3Q17 mainly affected by greater delinquency in Instacredit and the one-time charge-off of some legacy receivables from distributors. The impaired loan ratio adjusted by gross charge-offs of the last 12 months increased to 7.8% as of 3Q17 from 5.6% as of the close of 2016. Fitch calculates an impaired loan ratio adjusted for the amounts owed by distributors. This adjusted ratio stood at 4.2% as of 3Q17 (YE16: 3.9%) and at 9.4% if charge-offs are considered (YE16: 7.2%). Its loan loss reserve coverage is adequate as it more than fully covers impaired loans. The company's debt to tangible equity ratio stood at 4.8x and 4.5x as of 3Q17 and the close of 2016, respectively, a relevant increase from 2.7x in 2013 as a result of goodwill generated from acquisitions. The issue of USD230 million subordinated perpetual notes during the fourth quarter of 2017, which were assigned 50% equity credit by Fitch, enhanced its tangible equity position. However, its tangible leverage could increase as a result of goodwill from potential future acquisitions due to the entity's appetite for inorganic growth. Nevertheless, Fitch expects it will remain at levels consistent with its current rating level. On a pro forma basis, its debt to tangible equity ratio stands at 3.7x as of 3Q17 when the notes are considered. Credito Real's funding is wholesale in nature but relatively well diversified. During 2017 it expanded its funding sources through the issuance of a securitization transaction and subordinated perpetual notes. Funding is flexible as it is concentrated in unsecured sources and because unpledged loans cover 1.1x the balance of unsecured debt. Its positive maturity gaps that benefit from a loan portfolio with an average duration of 1.7 years compared to average debt duration of 3.3 years result in an adequate liquidity position. Fitch expects that future organic and inorganic growth, including its plans to gradually expand its presence in Central America, will be accompanied by adequate risk controls and underwriting standards aligned to those currently in place. This, while maintaining core business model attributes such as its income/risk sharing scheme with distributors, which have proven to work effectively in the past and through the economic cycle and which partially mitigate Credito Real's relatively high risk appetite. Fitch rates the local and international unsecured debt issued by Credito Real at the same level as its corporate ratings, reflecting its senior unsecured nature. SUBORDINATED DEBT Credito Real's subordinated notes are rated two notches below its Long-Term IDR according to Fitch's methodology 'Non-Financial Corporates Hybrids Treatment and Notching Criteria'. The two notch differential represent incremental risk relative to the entity's IDRs, reflecting the increased loss severity due to its subordination and heightened risk of non-performance relative to other obligations, namely existing unsecured debt. Fitch analyzed the terms of the instrument in order to identity structural features that could constrain the company's ability to activate the equity-like features of the hybrid. Therefore, Fitch has granted 50% equity credit given the existence of a coupon step-up of 500 bps in the event of a change of control, the ability to defer coupon payments and its perpetual nature. The initial terms of the issuance incorporate a feature which according to Fitch's criteria may be considered an effective maturity date 15 years after the first call date, due to the existence of a cumulative step-up greater that 100 bps. This could lead Fitch to stop assigning equity credit five years prior to such effective maturity date. Criteria Variation: Fitch applied a criteria variation from the 'Non-Financial Corporates Hybrids Treatment and Notching Criteria'. The notes contain provisions that mandate the payment of deferred interest in arrears in the event that distributions are made to capital stock and parity securities. Fitch views these provisions as a means of preserving seniority over capital stock and not as look-back provisions, as these provisions are not intended to constrain the issuer's ability to defer coupons following the payment of distributions. Without applying this variation equity credit would be 0% and the notes' ratings would be 'BB'. RATING SENSITIVITIES IDRs, NATIONAL RATINGS AND SENIOR UNSECURED DEBT Ratings could be downgraded if Credito Real's leverage ratio (debt to tangible equity) increases consistently above 7x as a result of pressure from goodwill of potential acquisitions, organic growth or deterioration of financial performance. A weakening of asset quality metrics that result in relevant pressure of its operating ROA, increased unhedged exposure to foreign currency debt and a deterioration of its liquidity position could also adversely affect ratings. A potential upgrade of Credito Real's ratings is unlikely in the short term. An upgrade could occur in the medium term if the company is able to continue diversifying its loan portfolio while it maintains strong profitability metrics and sustains a debt to tangible equity ratio below 5x. Additionally, the upgrade would be contingent on the company's ability to materially improve its funding flexibility in the form of larger back-up liquidity facilities that act as a cushion in times of market stress, considering its reliance on wholesale funding. Senior debt ratings would mirror any changes in Credito Real's corporate ratings. SUBORDINATED DEBT Credito Real's subordinated notes rating is primarily sensitive to a change in Credito Real's IDR. Fitch expects that under most circumstances the notes will remain rated two notches below the IDR. Fitch has affirmed the following ratings: Credito Real S.A.B. de C.V. Sofom, E.R. -- Long-Term Foreign Currency IDR at 'BB+'; -- Short-Term Foreign Currency IDR at 'B'; -- Long-Term Local Currency IDR at 'BB+'; -- Short-Term Local Currency IDR at 'B'; -- Long-term senior unsecured notes due 2023 at 'BB+'; -- Long-term senior unsecured notes due 2022 at 'BB+'; -- Long-term subordinated perpetual notes at 'BB-'; -- National long-term rating at 'A+(mex)'; -- National short-term rating 'F1(mex)'; -- National short-term rating for short term debt program at 'F1(mex)'. The Rating Outlook is Stable. ====================== P U E R T O R I C O ====================== ALEXIS SANTOS: Court Directs U.S. Trustee to Appoint Ombudsman -------------------------------------------------------------- Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico ordered the U.S. Trustee to appoint an ombudsman in the chapter 11 case of Alexis Santos Serafin Torres Torres, unless the US Trustee and/or the debtor in possession inform the court in writing, within 21 days, why the appointment of an ombudsman is not necessary for the protection of the patients. Failure to comply with the order may result in the imposition of sanctions. Alexis Santos Serafin Torres Torres filed a chapter 11 petition (Bankr. D.P.R. Case No. 17-07266) on December 13, 2017. The Debtor is represented by Carlos A Ruiz Rodriguez, Esq. ARO LIQUIDATION: Tags Optium Fund 2 as Best Bid For Visa/MC Claim ----------------------------------------------------------------- BankruptcyData.com reported that Aeropostale Inc., now known as ARO Liquidation Inc., filed with the U.S. Bankruptcy Court a notice of successful bidder stating that the Company has determined the credit bid submitted by Optium Fund 2 with its $1,330,000 bid is the highest and best bid for the purchase of Visa/MC litigation claim. The Court scheduled a February 20, 2018, hearing on the sale motion, with objections due by February 16, 2018. About ARO Liquidation Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of casual apparel and accessories, principally serving young women and men through its Aeropostale(R) and Aeropostale Factory(TM) stores and website and 4 to 12 year-olds through its P.S. From Aeropostale stores and website. The Company provides customers with a focused selection of high quality fashion and fashion basic merchandise at compelling values in an exciting and customer friendly store environment. Aeropostale maintains control over its proprietary brands by designing, sourcing, marketing and selling all of its own merchandise. As of May 1, 2016, the Company operated 739 Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R) stores in 12 states. In addition, pursuant to various licensing agreements, the Company's licensees currently operate 322 Aeropostale(R) and P.S. from Aeropostale(R) locations in the Middle East, Asia, Europe, and Latin America. Since November 2012, Aeropostale, Inc., has operated GoJane.com, an online women's fashion footwear and apparel retailer. Aeropostale, Inc., and 10 of its affiliates each filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 16-11275) on May 4, 2016. The petitions were signed by Marc G. Schubac, senior vice president, general counsel and secretary. The Debtors disclosed assets of $354.38 million and total debt of $390.02 million as of Jan. 30, 2016. The Debtors hired Weil, Gotshal & Manges LLP as counsel; FTI Consulting, Inc., as restructuring advisor; Stifel, Nicolaus & Company, Inc., and Miller Buckfire & Company LLC as investment bankers; RCS Real Estate Advisors as real estate advisors; Prime Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as Canadian counsel; and Togut, Segal & Segal LLP as conflicts counsel. Judge Sean H. Lane is assigned to the cases. The U.S. trustee for Region 2 on May 11, 2016, appointed seven creditors of Aeropostale Inc. to serve on the official committee of unsecured creditors. The Committee retained Pachulski Stang Ziehl & Jones LLP as counsel. * * * On June 29, 2017, Judge Lane authorized changes to the Debtors' corporate names in relation to their bankruptcy cases. The new name for Aeropostale Inc. is now ARO Liquidation, Inc., Case No. 16-11275. BORINQUEN ANESTHESIA: Taps Juan C. Bigas as Legal Counsel --------------------------------------------------------- Borinquen Anesthesia Services PSC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Juan C. Bigas Law Office as its legal counsel. The firm will advise the Debtor regarding its duties under the Bankruptcy Code and will provide other legal services related to its Chapter 11 case. Bigas Law Office will charge an hourly fee of $250. The firm received from the Debtor a retainer in the sum of $10,000. Juan Carlos Bigas Valedon, Esq., at Bigas Law Office, disclosed in a court filing that he and his firm are "disinterested persons" as defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Juan Carlos Bigas Valedon, Esq. Juan C. Bigas Law Office P.O. Box 7011 Ponce, PR 00732-7011 Tel: 787-259-1000/787-633-1253 Fax: 787-842-4090 E-mail: cortequiebra@yahoo.com jcbigas@gmail.com About Borinquen Anesthesia Based in Aibonito, Puerto Rico, Borinquen Anesthesia Services PSC is a privately held company that operates in healthcare industry. Its principal assets are located at Calle Jose C Vazquez Hospital General ME Aibonito, PR 00705. Borinquen Anesthesia is a small business debtor as defined in 11 U.S.C. Sec. 101(51D). Borinquen Anesthesia sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-00130) on Jan. 12, 2018. In the petition signed by Jorge A. Acevedo Orengo, president, the Debtor disclosed $89,700 in assets and $1.20 million in liabilities. Juan C. Bigas Law Office is the Debtor's bankruptcy counsel. LATIN AMERICAN MUSIC: To Pay Unsecured Creditors in Full -------------------------------------------------------- Latin American Music Co., Inc. filed with the U.S. Bankruptcy Court for the District of Puerto Rico a small business disclosure statement describing its chapter 11 plan of reorganization, which may provide for the Debtor to reorganize by continuing to operate, to liquidate by selling assets of the estate, or a combination of both. General unsecured claims in Class III are estimated between the creditors that filed their proofs of claim and the ones that were scheduled by Debtor and did not file a proof of claim in the amount of $2,980.62. This class of allowed unsecured claims will be paid in full at the effective date of the Plan, which represents a 100% payment. This class is unimpaired. The Plan will be funded with cash available proceeds from the revenue that the Debtor generates from licensing, after paying operating expenses and taxes. Debtor's operating expenses consist of bank charges, contract labor, office supplies, payroll, repairs and maintenance, taxes, telephone, utilities, vehicle expenses, etc. A full-text copy of the Disclosure Statement is available for free at: http://bankrupt.com/misc/prb17-02023-11-255.pdf A full-text copy of a prior-filed Disclosure Statement is available for free at http://bankrupt.com/misc/prb17-02023-192.pdf Latin American Music Co Inc., filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 17-02023) on March 24, 2017, disclosing under $1 million in both assets and liabilities. The Debtor is represented by JVictor Gratacos Diaz, Esq. at Gratacos Law Firm, PSC. Based in San Juan, Puerto Rico, Latin American Music Company, Inc. is a corporation dedicated to licensing performance, synchronization and other rights under copyright in music compositions. NUTRITION CARE: U.S. Trustee Directed to Appoint Ombudsman ---------------------------------------------------------- Judge Enrique S. Lamoutte of the U.S. Bankruptcy Court for the District of Puerto Rico issued an order directing the U.S. Trustee to appoint an ombudsman in the chapter 11 case of Nutrition Care, Inc. The U.S. Trustee and/or the debtor in possession have 21 days to inform the Court in writing if the appointment of an ombudsman is not necessary for the protection of the patients. Nutrition Care, Inc. filed for Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 18-00394) on Jan. 29, 2018, and is represented by Tomas F. Blanco Perez, Esq. of MRO Attorneys at Law, LLC. ================================ T R I N I D A D & T O B A G O ================================ CARIBBEAN AIRLINES: Questions Surround Hiring of Executives ----------------------------------------------------------- RJR News reports that concern is being raised about the hiring of executives at Caribbean Airlines Limited (CAL). A report in the issue of Trinidad's Express newspaper says the vacancies are being filled by former employees of the Irish-owned telecommunications company, Digicel, according to RJR News. According to the Express report, the recruitments have triggered concerns about nepotism in CAL's hiring practices, the report notes. Sources say former Digicel executive, Garvin Madera, who was recruited as Caribbean Airlines' CEO last year, is on a hiring spree, given that the company had initiated a recruitment freeze and the jobs were advertised and filled after he assumed office, the report relays. The newspaper report says there is also concern about the lack of aviation experience in the company's recent recruitments, the report notes. It's reported that Mr. Madera who was CEO at Digicel Play with a Masters in electrical and computer engineering, had no aviation experience prior to his taking the post as Caribbean Airlines' chief executive, the report adds. Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on November 2, 2015, RJR News said that Michael DiLollo, Chief Executive Officer of Caribbean Airlines Limited has quit after just 17 months on the job. The 48-year-old Canadian national, citing personal reasons, resigned with immediate effect. His resignation was accepted by the airline's board of directors. Mr. DiLollo was appointed Caribbean Airlines CEO in May 2014, following the sudden resignation of Robert Corbie in September 2013. In early February 2015, Larry Howai, then Finance Minister, told Parliament that unaudited accounts for 2014 showed the airline made a loss of US$60 million, inclusive of its Air Jamaica operations, and the airline planned to break even by 2017. Mr. Howai told the Parliament that a five-year strategic plan had been completed and was in the process of being approved for implementation. In an interview with the Trinidad & Tobago Guardian in early November 2015, Mr. DiLollo said CAL did not need a bailout just yet. Mr. DiLollo said the airline had benefited from extremely patient shareholders for years and he believed the airline was strategically positioned to break even in three years. ================= V E N E Z U E L A ================= VENEZUELA: Denies its Soldiers Work With Colombian Rebel Group -------------------------------------------------------------- EFE News reports that Venezuela's defense minister denied that soldiers from his nation are involved with the Colombian rebel group ELN after the neighboring country's president said that a Venezuelan citizen was apparently a member of the insurgency. "We have examined our files . . . there is absolutely no record that either of those two citizens, whose names we now have, has ever worked for or offered their services to the National Guard, according to EFE News. It's completely false, I reject it," Vladimiro Padrino said in Caracas, the report notes. As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2018 S&P Global Ratings affirmed its long- and short- term foreign currency sovereign issuer credit ratings on Venezuela at 'SD/D'. S&P said, "At the same time, we lowered seven issue ratings on Venezuela's global bonds to 'D' from 'CC'. Our long- and short-term local currency sovereign credit ratings remain at 'CCC-/C' and are still on CreditWatch with negative implications. In addition, we affirmed our 'CC' transfer and convertibility assessment." VENEZUELA: Chavismo Seeks New Legislative Elections --------------------------------------------------- The Venezuelan ruling party proposed the election of a new National Assembly legislature next April 22, on the same day as the presidential election already announced for that date. "I announce this as a proposal that I will take to the relevant authorities, that the day of the presidential election should also be the day for electing the new National Assembly to fill the current vacancy," said Chavismo leader Diosdado Cabello on state channel VTV. As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2018 S&P Global Ratings affirmed its long- and short- term foreign currency sovereign issuer credit ratings on Venezuela at 'SD/D'. S&P said, "At the same time, we lowered seven issue ratings on Venezuela's global bonds to 'D' from 'CC'. Our long- and short-term local currency sovereign credit ratings remain at 'CCC-/C' and are still on CreditWatch with negative implications. In addition, we affirmed our 'CC' transfer and convertibility assessment." VENEZUELA: OAS Head Almagro Calls for More Sanctions on Country --------------------------------------------------------------- Carlos Camacho at The Latin American Herald reports that already convulsed Venezuela woke up to a new electoral outrage perpetrated by the ruling party, at about the same time the Organization of American States called for more and more stern sanctions against the Nicolas Maduro administration. The oil-rich country is already preparing for polemical Presidential elections April 22nd, which the United States and other world and regional powers have said will not recognize, according to The Latin American Herald. PSUV, the ruling party of the Maduro regime, is asking the Constituent Assembly to hold that legislative elections be held April 22nd, with the aim of reducing the tenure of the opposition held National Assembly, a coup d' grace after the government spent 2016 gutting the National Assembly of all real power through Supreme Court decisions and in 2017 appointed a supra constitutional Constituent Assembly in what the opposition called rigged elections, the report notes. Diosdado Cabello, the PSUV's perpetual number two man, made the request for early legislative elections April 22nd, the same day as the divisive Presidential vote, the report relays. "I announce as a proposal that I will take to the pertinent instances, to call, on the day of the Presidential elections, elections for the National Assembly also to fill that void", Mr. Cabello said during a live interview on state television network, the report notes. The report notes that Mr. Cabello repeated the PSUV's argument that the opposition-held legislative "is not doing anything for the country". After the Constituent elections in late July, the US initiated a fresh round of sanctions against Maduro himself as well as other of his top officials, but the aggressive power grab continued undeterred with governor and mayor elections that the opposition also denounced, the report relays. PSUV won all of these matches with margins unheard of in democracy, like 91% of all city mayors in one result, the report says. Also, speaking from a UN forum on human rights in Geneva focusing on the Venezuelan crisis, Organization of American States Secretary General Luis Almagro demanded "broader and stronger" sanctions against the Maduro regime, which he again accused of being "a threat for international peace and security," the report notes. "Sanctions are the strongest diplomatic tool we have, so I am asking the (sovereign) states that they introduce more sanctions, broader sanctions and stronger sanctions against this regime (Maduro's). Sanctions that will not harm the people of Venezuela, but the pockets of those that are appropriating whatever money is left", Mr. Almagro said, the report adds. As reported in the Troubled Company Reporter-Latin America on Feb. 19, 2018 S&P Global Ratings affirmed its long- and short- term foreign currency sovereign issuer credit ratings on Venezuela at 'SD/D'. S&P said, "At the same time, we lowered seven issue ratings on Venezuela's global bonds to 'D' from 'CC'. Our long- and short-term local currency sovereign credit ratings remain at 'CCC-/C' and are still on CreditWatch with negative implications. In addition, we affirmed our 'CC' transfer and convertibility assessment." *********** 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 2018. 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. . * * * End of Transmission * * *