/raid1/www/Hosts/bankrupt/TCRLA_Public/180406.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, April 6, 2018, Vol. 19, No. 68
Headlines
A R G E N T I N A
ALGODON WINES: Reports $8.25 Million Net Loss for 2017
ARGENTINA: IPO Outlook Turns From Frenzy to Fiasco
B R A Z I L
BANCO VOTORANTIM: S&P Affirms 'BB-' GS Rating, Outlook Stable
BRF SA: Places Workers From Two Plants on Furlough
ENERGISA SA: Fitch Raises LC IDR to BB+; Outlook Stable
JBS SA: Still Keen on U.S. IPO Despite Scandals
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Industries Lose Clout, Over 77,000+ Jobs
E L S A L V A D O R
EL SALVADOR: Medium-term Outlook Remains Tepid, IMF Says
P A N A M A
FIRST QUANTUM: Moody's Affirms B3 CFR; Revised Outlook to Negative
P U E R T O R I C O
BREAST CANCER INSTITUTE: Taps Dage Consulting as Accountant
T R I N I D A D & T O B A G O
PETROLEUM CO: Strikes a Deal With Union
X X X X X X X X X
LATAM: 7 Countries Will Receive Support From IDB Invest & LAAD
- - - - -
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A R G E N T I N A
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ALGODON WINES: Reports $8.25 Million Net Loss for 2017
------------------------------------------------------
Algodon Wines & Luxury Development Group, Inc., filed with the
Securities and Exchange Commission its Annual Report on Form 10-K
reporting a net loss attributable to common stockholders of $8.25
million on $1.81 million of sales for the year ended Dec. 31,
2017, compared to a net loss attributable to common stockholders
of $10.04 million on $1.52 million of sales for the year ended
Dec. 31, 2016.
As of Dec. 31, 2017, Algodon Wines had $8.34 million in total
assets, $4.33 million in total liabilities, $9.02 million in
series B convertible redeemable preferred stock, and a total
stockholders' deficiency of $5.02 million.
Marcum LLP, in New York, NY, the Company's auditor since 2013,
issued a "going concern" opinion in its report on the consolidated
financial statements for the year ended Dec. 31, 2017, citing that
the Company has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern
A full-text copy of the Form 10-K is available for free at:
https://is.gd/4mgEH7
About Algodon Wines
Through its wholly-owned subsidiaries, Algodon Wines & Luxury
Development Group, Inc. -- http://www.algodongroup.com/-- invests
in, develops and operates real estate projects in Argentina.
Based in New York, AWLD operates a hotel, golf and tennis resort,
vineyard and producing winery in addition to developing
residential lots located near the resort. The activities in
Argentina are conducted through its operating entities:
InvestProperty Group, LLC, Algodon Global Properties, LLC, The
Algodon - Recoleta S.R.L, Algodon Properties II S.R.L., and
Algodon Wine Estates S.R.L. AWLD distributes its wines in Europe
through its United Kingdom entity, Algodon Europe, LTD.
ARGENTINA: IPO Outlook Turns From Frenzy to Fiasco
--------------------------------------------------
Carolina Milan at Bloomberg News reports that the flurry of
Argentine initial public offerings that had been anticipated this
year is looking more like a flop as volatile markets and stretched
valuations have investors looking elsewhere in Latin America.
Gas distributor Distribuidora de Gas del Centro SA's decision this
week to postpone its Buenos Aires IPO was the fourth stumble in
2018, and the sixth since November, according to Bloomberg News.
The trend reflects fading demand for Argentine stocks as traders
brace against global market volatility and concern mounts about
domestic growth, the report notes. The Merval benchmark index has
slumped more than 11 percent from this year's high on Jan. 25, and
the largest exchange-traded fund invested in the country's
equities posted a net outflow in February for the first time in
five months, the report relays.
The weakness comes as Argentina continues to battle stubborn
double-digit inflation and the worst drought in 30 years has
analysts trimming their growth forecasts, the report notes. And
while down off their highs, stocks in the Merval are still trading
at an enterprise value around 9 times estimated earnings before
interest, taxes, depreciation and amortization, compared with a
five-year average of 8.4 times, the report says. All this
increases the appeal of other markets in the region, including
Brazil, where equities are rebounding as the country emerges from
its worst recession in a century, and Mexico, where corporate
earnings have been coming in ahead of analyst estimates, the
report discloses.
"We haven't participated in any of the recent Argentine IPOs,"
said Gerardo Zamorano, San Diego-based investment director at
Brandes Investment Partners LP, who co-manages $6.5 billion in
emerging market assets, the report discloses. "We find better
opportunities elsewhere when you take into account the upside
potential, the pricing at which they try to come to market and
other alternatives. In terms of our incremental exposure, we are
prioritizing opportunities in Brazil and Mexico compared to
Argentina," the report quoted Mr. Zamorano as saying.
The year began with a solid pipeline of companies looking to
follow a blockbuster year in equity markets, with $3.8 billion
raised in 2017, including the largest IPO by an Argentine company
in 20 years, cement-maker Loma Negra Cia Industrial Argentina SA,
the report notes.
The equities jolt came after President Mauricio Macri's ruling
coalition performed better than expected in midterm elections,
boosting investor appetite and companies' willingness to raise
capital for projects, the report relays. Power generation company
Genneia SA is among those looking to go public this year, the
report says.
A slew of troublesome IPOs which "were promising but ended up
losing steam" have led Argentina to drop off foreign investors'
radars and turn to Brazil's growth story, said Federico Perez, a
portfolio manager at Buenos Aires-based Axis Inversiones, the
report discloses.
Investors will now be looking toward the next catalysts for local
stocks, including the approval of legislation that promotes the
growth of local capital markets or an upgrade by MSCI Inc. to
emerging market status, the report relays. A successful IPO by a
quality name could also reverse the sentiment, he said, the report
notes.
The onus will also rest on companies to deliver on the early
promises of growth amid high valuations, according to local
consulting firm Delphos Investment, the report relays. That may
prove a challenge as analysts cut 2018 growth projections, the
report discloses.
"We don't think this signals an end to appetite for Argentine
assets, but it does show that the growth expectations for several
sectors have been captured by the papers," Delphos analysts wrote
in a note. "We believe that now the ball is on the companies'
court, as investors wait for their expectations to materialize,"
he added.
Here's a rundown of the recent Argentine equity deals:
-- Agribusiness company Molino Canuelas delayed its IPO amid
market volatility
-- Laboratorios Richmond has fallen 24 percent from its initial
public offering price in December.
-- Airport operator Corporacion America Airports SA priced its
IPO below the intended range and has fallen 28 percent since the
IPO.
-- Power generator Central Puerto SA priced is IPO below the
intended range and halved the amount of shares sold.
Biotech firm Bioceres postponed its offering for at least a month
as U.S. markets swooned.
-- Distribuidora de Gas del Centro postponed its initial public
offering after downsizing the original size by about a third
earlier in the day.
As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30-day grace
period on a US$539 million interest payment. Earlier that day,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago. On March 30, 2016, Argentina's Congress
passed a bill that will allow the government to repay holders of
debt that the South American country defaulted on in 2001,
including a group of litigating hedge funds that won judgments
in a New York court. The bill passed by a vote of 54-16.
===========
B R A Z I L
===========
BANCO VOTORANTIM: S&P Affirms 'BB-' GS Rating, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' global scale and 'brAA-/brA-
1+' national scale ratings on Banco Votorantim S.A. (BV). The
outlook remains stable on both ratings. S&P also affirmed the
'brAA-/brA-1+' ratings with a stable outlook on BV Leasing
Arrendamento Mercantil S.A., a core subsidiary of BV. At the same
time, S&P affirmed its 'brA' subordinated debt rating on the
latter company.
The ratings on Banco Votorantim reflect its 'bb-' stand-alone
credit profile (SACP), which is based on its diversified portfolio
of products for the retail and wholesale markets and its broad
national footprint. The ratings also reflect BV's stronger bottom-
line results, thanks to the successful implementation of its
revenue diversification and operational efficiency strategy and
the adjustment of risk controls in its consumer finance business,
which improved its asset quality despite the still difficult
lending conditions in Brazil. On the other hand, S&P believes that
BV's results are subject to the cyclical nature of the vehicle
financing business, which makes its earning metrics more volatile
than peers.
The stable outlook on BV for the next 12 months reflects the
outlook on the foreign currency sovereign rating on Brazil (BB-
/Stable/B), which limits the ratings on the bank. S&P said, "In
our view, the ratings on Brazil constrain those on BV because we
don't expect the bank's shareholders to provide timely and
sufficient support to the subsidiary during the stress period
associated with a sovereign default. Therefore, we expect the
ratings on BV to move in tandem with the sovereign ratings."
BRF SA: Places Workers From Two Plants on Furlough
--------------------------------------------------
Reuters reports that embattled Brazilian food processor BRF SA,
reeling from a food safety scandal, will place 3,500 workers on
paid leave at two plants, the latest move to adjust capacity
following a government-imposed trade ban affecting exports to the
European Union, the company said.
BRF said it would send 1,300 workers on leave at its Carambei
plant in southern Brazil, in addition to 2,300 people from its Rio
Verde poultry production line in central Brazil, according to
Reuters. The leaves, effective from May 21 and May 14
respectively, will last 30 days at both plants, it said, the
report notes.
"As is in the public domain, Brazil's agriculture ministry decided
to temporarily and preemptively suspend production and
certification of BRF poultry exports to the European Union from
March 16," BRF said in a statement obtained by the news agency.
The move raises the tally of employees affected by measures to
adjust capacity to demand to around 7,000, the report relays.
Last month, BRF said it would send around 3,000 people on furlough
at its Capinzal plant state effective May 7, the report notes.
BRF also sent more than 1,000 workers on leave at its Mineiros
plant, one of the units involved in the food safety investigation
that preceded the trade suspension related to Europe. Some 623
people at Mineiros' chicken production line have since returned to
work, BRF said, the report notes.
As reported in the Troubled Company Reporter-Latin America on
March 29, 2018, S&P Global Ratings affirmed its issue-level
ratings on BRF S.A., BRF GmbH, and BFF International at 'BB+'. S&P
also assigned a recovery rating of '3' (rounded 65%) to BRF GmbH's
unsecured notes and a recovery rating of '3' (rounded 60%) to BRF
S.A.'s and BFF International's senior unsecured notes.
ENERGISA SA: Fitch Raises LC IDR to BB+; Outlook Stable
-------------------------------------------------------
Fitch Ratings has upgraded to 'BB+' from 'BB' Energisa S.A.'s
Local Currency Issuer Default Ratings (IDR) and to 'AA+(bra)' from
'AA(bra)' its Long-term National Scale Rating. At the same time,
Fitch has affirmed Energisa's Foreign Currency IDR at 'BB'. Fitch
has also affirmed Energisa's subsidiaries Local and Foreign
Currency IDRs at 'BB+' and their Long-term National Scale Ratings
at 'AA+(bra)'. The Rating Outlook is Stable.
The upgrade of Energisa's Local Currency IDR and Long-term
National Scale Rating reflect Fitch's expectation that its
leverage on a standalone basis will improve due to a more robust
flow of dividends coming from its operating subsidiaries. In
addition, Fitch considers that the guarantees provided by the
holding company to part of its subsidiaries' debt and the cross-
default clauses equalize the ratings.
Energisa group's IDRs reflect a low to moderate business risk for
the Brazilian power distribution segment, which is partially
mitigated by the group's diversification through nine different
concessions in the country. The analysis also considers that the
group will consistently improve its operating cash generation and
bring its net leverage to the 2.0x-3.0x range, consistent with its
ratings, despite of a negative FCF forecasted for the next three
years. Fitch considers that Energisa is succeeding in improving
the below-average operational performance of the subsidiaries
acquired in 2014. Positively, Energisa group should remain with a
robust liquidity profile based on high cash balances and
lengthened debt maturity profile. The analysis incorporates a
moderate regulatory for the Brazilian power sector and a
hydrological risk currently above average. The Foreign Currency
IDRs are capped by Brazil's country ceiling at 'BB'.
KEY RATING DRIVERS
Improving Leverage: Fitch forecasts that Energisa's consolidated
net leverage will remain in the range of 2.0x-3.0x in the coming
years. Increasing cash flow generation due to efficiency gains and
the fourth tariff review cycle of important distribution
subsidiaries will positively impact the credit metrics. In 2017,
total debt/EBITDA and net debt/EBITDA were 4.7x and 3.5x,
respectively.
FCF Under Pressure: Energisa's consolidated FCF should remain
negative in the next three years as a result of high capex and
dividend distribution. The group expects to improve the operations
of its distribution companies and is building two transmission
lines, which require significant amount of investments. The agency
expects average annual capex needs of BRL1.5 billion until 2020.
In 2017, cash flow from operations (CFFO) amounted BRL642 million,
not sufficient to cover investments of BRL1.3 billion and BRL203
million in dividend payment, resulting in a negative FCF of BRL865
million.
EBITDA Above Regulatory Targets: On a consolidated basis, Energisa
has been efficient in achieving an EBITDA higher than the sum of
all of the individual regulatory EBITDAs defined for each one of
its nine power distribution companies during the last tariff
review. In 2017, Energisa's distribution companies EBITDA was
BRL1.8 billion versus a regulatory EBITDA of BRL1.4 billion. Fitch
expects the energy consumption in its main concession areas to
benefit from an economic growth above the national average, mainly
supported by the positive impact of the agribusiness. In addition,
the forecasted investments may improve operational efficiencies
and benefit some distribution companies' performance in terms of
energy losses and delinquency ratios.
Manageable Debt at the Holding Level: Fitch considers that the
guarantees provided by the holding company to a great portion of
its subsidiaries' loans and debentures, as well the existing
cross-default clauses, equalize the ratings of all companies. In
addition, the holding company's standalone credit profile benefits
from a strong liquidity position and manageable amortization
schedule. The dividend upstream from subsidiaries is also expected
to increase due to its higher participation in Energisa Mato
Grosso - Distribuidora de Energisa S.A. (EMT) (from 57% to 98%)
and improvements in the subsidiaries cash flow generation. The
capital needs in the two new transmission projects do not involve
significant amounts of equity from the holding and the agency
believes the group has financial flexibility to obtain funding
structures adequate to project finance at the projects level. The
ratio net debt/dividends received should gradually reduce to less
than 3.0x in the next three years from the 10x presented at the
end of 2017.
Strategic Sector: Fitch incorporates in the analysis that the
credit profile of the Brazilian power companies benefits from the
strategic importance of the sector to support the potential
economic growth. The Government has been historically acting to
solve any systemic problem that can impact the operational cash
flow of the companies and open discussions to regulatory framework
improvement in order to mitigate the sectors risks. Nevertheless,
the agency considers that the distribution segment presents a
higher risk when compared with the transmission and generation
segments.
DERIVATION SUMMARY
Energisa and its subsidiaries' Foreign Currency IDRs at 'BB' are
capped by the country ceiling. The Local Currency IDRs at 'BB+'
are based on the group's low to moderate business risk and the
expectation that liquidity will remain robust and the net leverage
will migrate to the range of 2.0x-3.0x. Energisa financial profile
is more aggressive when comparing to Enel Americas S.A. (Enel
Americas, BBB+/Stable) and, despite the fact that other peers in
Latin America, such as Empresas Publicas de Medellin S.A E.S:P.
(EPM, BBB+/Stable) and Grupo Energia Bogota S.A. E.S.P. (GEB,
BBB/Stable), present similar financial profiles of Energisa, a
historical high level of local interest rates justifies the
different IDRs. In terms of business profile, all of them operate
as a regulated company.
KEY ASSUMPTIONS
Fitch's key assumptions within Fitch rating case for the issuer
include:
-- Increase in energy consumption in line with the Brazilian GDP
growth;
-- Annual average capex of BRL1.5 billion until 2021;
-- Dividends pay-out of 50% of net profit;
-- No new debt financed acquisition.
RATING SENSITIVITIES
Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
-- Consolidated net leverage below 2.0x in a sustained basis;
-- Cash and marketable securities/short term debt above 1.5x.
Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
-- New projects or acquisitions involving significant amounts
financed by debt;
-- Consolidated net leverage above 3x consistently;
-- Cash and marketable securities/short-term debt below 1.0x;
-- At the holding level: dividends received + cash and marketable
securities/short-term debt service below 1.0x.
LIQUIDITY
Strong Liquidity Profile: Energisa group presents strong liquidity
and high financial flexibility to finance its investment plans and
refinance outstanding short term debt, if needed. At the end of
2017, the total adjusted cash and marketable securities of BRL2.5
billion represented 1.2x its short-term debt of BRL2.0 billion -
the total debt was BRL9.5 billion. At the holding company level,
the liquidity was also strong, with BRL525 million adjusted cash
position compared to short-term debt of BRL325 million,
representing a short-term debt coverage of 1.6x. Despite the
BRL533 million disbursed to acquire the shares of EMT at the
beginning of 2018, increasing the participation of Energisa in
that subsidiary, the conclusion of the 9th debentures issue in the
amount of BRL800 million improved the liquidity.
FULL LIST OF RATING ACTIONS
Fitch has taken the following rating actions:
Energisa S.A.
-- Foreign Currency IDR at affirmed at 'BB';
-- Local Currency IDR upgraded to 'BB+' from 'BB';
-- National Scale Rating upgraded to 'AA+(bra)' from 'AA(bra)';
-- 8th Debenture Issue affirmed at 'AA+(bra)';
-- 9th Debenture Issue affirmed at 'AA+(bra)'.
Energisa Paraiba - Distribuidora de Energia S.A.
-- Foreign Currency IDR affirmed at 'BB';
-- Local Currency IDR affirmed at 'BB+';
-- National Scale Rating affirmed at 'AA+(bra)';
-- 4th Debenture Issue affirmed at 'AA+(bra)'.
Energisa Sergipe - Distribuidora de Energia S.A.
-- Foreign Currency IDR affirmed at 'BB';
-- Local Currency IDR affirmed at 'BB+;'
-- National Scale Rating affirmed at 'AA+(bra)'.
Energisa Minas Gerais - Distribuidora de Energia S.A.
-- Foreign Currency IDR affirmed at 'BB';
-- Local Currency IDR affirmed at 'BB+';
-- National Scale Rating affirmed at 'AA+(bra)'.
Energisa Mato Grosso - Distribuidora de Energia S.A.
-- National Scale Rating affirmed at 'AA+(bra)';
-- 8th Debenture Issue affirmed at 'AA+(bra)'.
Energisa Mato Grosso do Sul - Distribuidora de Energia S.A.
-- National Scale Rating affirmed at 'AA+(bra)';
-- 8th Debenture Issue affirmed at 'AA+(bra)';
-- 10th Debenture Issue affirmed at 'AA+(bra)'.
The Rating Outlook is Stable for all corporate ratings.
JBS SA: Still Keen on U.S. IPO Despite Scandals
-----------------------------------------------
Ana Mano and Paula Laier at Reuters report that JBS SA remains
intent on a stock market listing of subsidiary JBS Foods
International BV in the United States despite corruption and food
safety scandals, executives said.
In April, all of JBS operations will meet U.S. auditing and
compliance requirements under the Sarbanes-Oxley Act, JBS
management told analysts on a call to discuss fourth-quarter
results, moving one step closer to an initial public offering
(IPO) of the unit, according to Reuters.
"It is the best option to unlock value," JBS Chairman and Investor
Relations Officer Jeremiah O'Callaghan said, the report relays.
In October, the company pulled a planned $500 million U.S. IPO of
JBS Foods International BV after the scandals in Brazil hurt
investor interest in the deal, the report notes. Mr. O'Callaghan
said JBS is still dealing with fallout from plea deals struck by
the company's former chairman and chief executive, who admitted to
bribing scores of Brazilian politicians, the report relays.
He said JBS was running an internal investigation as part of
collaboration efforts with Brazilian and U.S. authorities, the
report relays. JBS reported an unexpected fourth-quarter net loss
in March 28 due to currency and hedging effects, as well as
weakness at its Brazil beef unit, but overall operational
performance remained strong, boosting optimism about the potential
U.S. listing, the report discloses.
Analysts at JPMorgan highlighted strong cash flow and the
increasingly profitable U.S. beef division in a note to clients
suggesting shares could recover from recent underperformance, the
report relays.
Strong cash flow helped the company lower its ratio of net debt to
EBITDA to 3.38, the lowest in the industry, according to
management, the report notes.
"We did it faster and better than planned," said Chief Operating
Officer Gilberto Tomazoni, regarding the deleveraging efforts, the
report relays. He said the company will continue reducing net debt
through cash generation until reaching a target ratio of 2 times
EBITDA by 2019.
JBS said global demand for animal protein will grow steadily
through 2030, and its beef and leather operations in South America
are the only units that are not performing well, the report notes.
"We outperformed our competitors in each of the segments in each
of the markets where we operate," said Andre Nogueira, chief
executive of the U.S. business, the report notes. "From the
viewpoint of our JBS USA unit, 2018 will be even better than
2017."
As reported in the Troubled Company Reporter-Latin America on Nov.
22, 2017, Fitch Ratings has downgraded JBS S.A.'s Long-term
Foreign and Local Currency Issuer Default Ratings (IDRs). The
senior unsecured notes guaranteed by JBS S.A. were downgraded to
'BB-' from 'BB.'
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D O M I N I C A N R E P U B L I C
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DOMINICAN REPUBLIC: Industries Lose Clout, Over 77,000+ Jobs
------------------------------------------------------------
Dominican Today reports that the local industry constantly loses
participation in the economy and in the last decade has lost over
77,000 formal jobs, a 15% fall, the Association Industries Herrera
and Province Santo Domingo (AEIH) affirmed.
In a press conference, AEIH president Antonio Taveras Guzman made
a call to deal with the deindustrialization that he affirms
affects the country, according to Dominican Today.
He warned that without a robust industrial base, Dominican
Republic cannot become an exporting economy to generate foreign
currency, compete, create quality jobs and guarantee economic
sustainability and future growth, the report notes.
"The industry is the productive sector that adds value, which
demands new technologies and skilled labor, and that also has a
wide potential to generate productive linkage with the other
sectors of the economy," the business leader said to mark National
Industry Day, the report relays.
"A broad public-private partnership is urgent to support small and
medium industrial enterprises that can generate wealth, compete in
local and international markets and create quality jobs, as the
Dominican citizenship deserves and longs for," added Mr. Taveras,
the report says.
As reported in the Troubled Company Reporter-Latin America on
Nov. 20, 2017, Fitch Ratings has affirmed Dominican Republic's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.
====================
E L S A L V A D O R
====================
EL SALVADOR: Medium-term Outlook Remains Tepid, IMF Says
--------------------------------------------------------
The IMF staff team visited San Salvador during February 5-16 for
the 2018 Article IV consultation and held productive discussions
with the Salvadoran authorities, parliamentarians, business
community, and social partners. The consultation was based on
revised National Accounts statistics.
El Salvador has suffered from low growth, low investment, high
public debt, and sovereign financing strains. The subpar growth
reflects the interplay of structural bottlenecks, high inequality
and crime, and large outward migration. The country has pursued a
strategy based on (i) pro-growth measures and (ii) gradual fiscal
adjustment combined with a recent pension reform, which was
facilitated by a welcome improvement in collaboration across the
political spectrum. The IMF staff compliments the authorities for
the substantial efforts made in addressing these issues to date.
In particular, progress has been made in reducing the fiscal
deficit and stabilizing debt, though significant further efforts
are needed to put debt on a declining trajectory. Priorities
include: (i) stepping up structural reforms to durably raise
growth, and make it more inclusive; and (ii) implementing further
fiscal adjustment of 2 percent of GDP on the revenue and
expenditure side.
Recent Developments, Outlook And Risks
1. Growth is projected at 2.4 percent in 2017, slightly above its
potential of 2.2 percent, helped by continued U.S. recovery, and a
surge in remittances. The fiscal deficit has declined
significantly due to higher revenues and expenditure restraint,
and also due to a fall in capital expenditure. The sovereign
financing situation was difficult at the turn of 2016/17, but has
been improving since September 2017. Remittances' growth
accelerated in late-2016, most likely as a precautionary response
to increased uncertainty about U.S. immigration policies.
2. The medium-term outlook remains tepid. In 2018-19, growth is
expected to remain at 2.3 percent, supported by stronger U.S.
growth and higher grant-financed investment. The fiscal deficit is
projected to further fall to 2.2 percent of GDP in 2018, as
savings from the pension reform kick in, but will increase to 2.7
percent of GDP in 2019, with public debt broadly stabilizing at
close to 70 percent of GDP by 2021-23. The current account deficit
is projected to increase both in 2018 and 2019 as remittances'
growth moderates while imports expand, and the income balance
worsens due to a tightening of financial conditions. The effects
of the recent decision by the U.S. authorities not to renew the
TPS are not expected to be significant. Over the medium term,
growth will remain close to its potential and inflation will be
anchored by dollarization at 2 percent.
3. Risks to the outlook are tilted to the downside and dominated
by spillovers from further potential policy shifts by the U.S.
administration and domestic policy slippages. A more aggressive
enforcement of the TPS termination, involving deportation of
50,000 individuals over 2019-20, would reduce GDP growth by 0.1
and 0.4 percentage points in 2019 and 2020, respectively. Higher
deportations of illegal migrants would further dent remittances
and growth, with more protracted effects than in the case of TPS
migrants. Downward surprises in U.S. growth would also depress
Salvadoran growth. Further, tighter global financial conditions
could limit access or raise the cost of external fiscal financing,
adding to fiscal strains. Finally, domestic policy slippages, such
as a reversal of the recent fiscal deficit reduction or standoff
over financing, or policy paralysis could also depress confidence
and growth.
Fiscal Policies
4. The authorities' adjustment efforts, combined with the pension
reform, will result in a cumulative improvement in the primary
balance of 1 3/4 percent of GDP over 2017-18. However, the
following considerations argue for further adjustment efforts. (i)
Debt level, dynamics, and risks: Despite improvements in the
fiscal balance, public debt reached close to 70 percent of GDP at
end-2017, but this mostly reflects the downward revision in GDP
data. While it is projected to broadly stabilize over the medium
term, risks still remain both due to possible external shocks and
the risk of reversals of the recent gains in fiscal consolidation.
Therefore, there is a need to bring debt on a firmly declining
path. (ii) Financing gaps loom for 2019 and beyond: While the 2018
budget made a welcome breakthrough in authorizing the needed
sovereign borrowing for the entire year, substantial gaps loom for
2019 and beyond. (iii) Growth interest differential: The
differential has remained negative, and is projected to worsen.
5. Staff welcomes progress on fiscal consolidation so far, but
recommends an additional fiscal adjustment of 2 percent of GDP
phased in over 2019-20. This adjustment would put debt on a
declining path, reducing it, as an intermediate target, below 60
percent of GDP by 2024. Under this scenario, debt would be reduced
to a more comfortable level of below 50 percent of GDP before
2030. Staff believes that the output costs of fiscal adjustment
are likely to be contained over the medium-term. Investor
confidence could also be boosted by a better fiscal position.
6. Given the assumed fiscal multipliers, the adjustment would
require measures of 2.3 percent of GDP both on the revenue and
expenditure side that are efficient and support social objectives.
On revenues, there is scope for raising taxes (e.g. VAT) and
streamlining distortionary taxes. On spending, across-the-board
cuts should be avoided in favor of targeted measures, and current
spending should be rationalized to create room for public
investment. Effort should be made to resolve technical challenges
to the timely implementation of the property tax, as this is a key
progressive measure to be actively pursued for a socially-balanced
adjustment package. Similarly, regressive effects of a VAT
increase should be carefully assessed, with targeted support to
protect the most vulnerable.
7. The new FRL represents a step in the right direction, but the
law and its supporting elements need to be upgraded. Staff
recommends a more ambitious debt target of below 50 percent of GDP
instead of 65 percent of GDP currently. The operational target
should be re-calibrated in line with debt sustainability. Also,
rule-based corrective mechanisms (e.g. after escape clauses are
triggered) should be introduced. The FRL should be supported by:
(i) further improvements in Medium- and Long-Term Fiscal Framework
(MTLFF); (ii) a more comprehensive budget presentation; (iii)
better spending controls, and monitoring of arrears (iv) improved
government statistics; (v) enhanced efficiency and governance of
tax and customs administration; (vi) implementation of results-
based budgeting; and (vii) better evaluation, execution, and
budgeting of public investment projects.
8. Further improvements in institutions and political will are
needed to resolve sovereign financing bottlenecks going forward.
(i) In line with the 2018 budget experience, the financing needs
should be reported transparently in all budgets; (ii) the medium-
term financing needs, including the maturing $800 million Eurobond
payment in 2019, should be addressed early, and negotiations on
the medium-term financing agreement should be carried forward;
(iii) the authorities' efforts to secure low-cost program loans
from multilateral institutions should continue; and (iv) the
approval process for low-cost high-quality investment projects by
donors should be simplified.
9. The new pension reform is a positive step, and will reduce the
fiscal deficit by around 0.8 percent of GDP over the next few
years, but would fall short of a comprehensive fix to the system.
The bulk of the fiscal savings (0.7 percent of GDP annually)
results from the temporary diversion of social contributions to
the Solidarity Guarantee Account (SGA), which would reduce public
pensions spending. These flows, however, generate a long-term
fiscal liability, initially very small, but projected to increase
over time. The liability remains to be accurately quantified, and
its size will be affected by public policies, such as future
increases in the retirement age. Moreover, the reform only
marginally tackles the key problems of high inequality of benefits
and low coverage and replacement rates, which are estimated to
increase only slightly.
10. Deeper reforms are needed to further strengthen the fiscal and
social sustainability of the pension system. (i) Increasing the
retirement age, which is among the lowest in the region. A modest
increase by 1 year at most in 2022 is being considered. More
ambitious increases in the retirement age would improve future
replacement rates in the pension system and limit fiscal
contingent liabilities arising from the SGA, particularly
longevity benefits. (ii) Improving benefits coverage for the poor.
The changes to the law improve coverage only among contributors to
the system, and would not help the most vulnerable segments. Old
age security could be enhanced via expanding the modest non-
contributory basic pension. (iii) Enhancing cost-efficiency.
Pension fund fees are still high and should be reduced given the
low risk profile of their investments (mainly government bonds).
(iv) Backstopping from the budget. The liquidity and solvency of
the pension system ultimately hinge on the budget. The envisioned
budget allocation would be insufficient to cover pension
obligations in most years, while the broader fiscal guarantee
mechanism is yet to be fully clarified. To ensure credibility, the
pension system accounts should be integrated into fiscal
decisions, with full costing of their implications.
Financial Sector Stability And Support To Growth
11. Despite good prudential fundamentals and ongoing progress,
several long-standing reforms need to be accelerated. The
authorities are making progress in risk-based supervision, cross-
border supervision, AML/CFT compliance, and financial inclusion.
However, efforts should be intensified in the areas of systemic
liquidity, banking resolution and crisis management procedures,
supervision and regulation. (i) Systemic liquidity. Adequate
funding of lender of last resort (LOLR) facilities set up at the
Central Bank and the creation of a liquidity fund are needed. (ii)
Crisis management and resolution. Progress has been made on the
draft law, but a prompt agreement between the Financial System
Superintendency and the Central Bank is needed to accelerate the
adoption of the new law. (iii) Supervision and regulation. Staff
welcomes the steps taken in risk-based supervision. While the
communication for the assessment of cross-border risks is
adequate, memorandums of understanding specifying contingency
plans between home and host supervisors should be established to
avoid or mitigate the effects of a potential financial crisis.
Staff recommends introducing the liquidity coverage ratio and
legislation to adopt new capital requirements to cover for credit
risks in line with Basel II/III standards.
Supply Side Reforms To Improve Potential Growth
12. To make the most of its demographic dividend, El Salvador
needs more private investment, improved business climate, and
higher formal job creation. El Salvador's rise in the World Bank's
2018 Doing Business ranking by 22 notches is encouraging, but
there is scope for further progress. Areas of improvements
include, for example, avoiding further increases in minimum wages.
On the ease of doing business, staff recommend accelerating the
implementation of the Law on Administrative Procedures (adopted in
2017), implementing the Electronic Signature Law (adopted in
2016), expanding the e-Regulations initiative, and enhancing the
clout of the Regulatory Improvement Agency. The adherence to the
customs union with Honduras and Guatemala will help in the
facilitation of trade. Enhancing capacity and clout of the
Competition Authority would support efforts to combat anti-
competitive behavior. To spur public and private investment, it
would be critical to adopt a coherent and integrated medium-term
framework for public investment, the publication of comprehensive
financial statements by public enterprises, the expansion of the
PPP law to additional economic sectors, and the simplification of
the congressional approval process, while controlling fiscal risks
from the PPPs. To combat crime and corruption, implementing "El
Salvador Seguro" plan and supplementing it with adequate resources
and grant funding, and further strengthening the personnel and
effectiveness of the Anti-Corruption Unit within the Prosecutor
General office and the Ethics Tribunal, and enhancing the AML/CFT
framework, would be important.
Statistics
13. Staff welcomes the publication of the revisions to the
National Accounts. The improved GDP series will better inform
policymaking and broader public debate.
===========
P A N A M A
===========
FIRST QUANTUM: Moody's Affirms B3 CFR; Revised Outlook to Negative
------------------------------------------------------------------
Moody's Investors Service has affirmed the B3 corporate family
rating (CFR), the B3-PD probability of default rating (PDR) and
the B3 senior unsecured rating of First Quantum Minerals Ltd
(FQM). Concurrently, Moody's has changed the outlook to negative
from stable.
"While Moody's have recently recognized improved fundamentals of
the global copper market and Moody's expectation of materially
rising EBITDA generation in 2018, the change of the outlook to
negative reflects the risk associated with the assessment of the
Zambia Revenue Authority (ZRA) for import duties, penalties and
interest on consumables and spare parts of 76.5 billion Zambian
kwacha equivalent to around USD7.9 billion", says Sven Reinke,
Senior Vice President and Moody's lead analyst for FQM".
RATINGS RATIONALE
FQM has confirmed that it has received a letter from ZRA noting an
assessment for a liability of 76.5 billion Zambian kwacha
equivalent to USD7.9 billion. Moody's understands that the vast
majority of the liability is related to penalties (equivalent to
USD2.1 billion) and interest (equivalent to USD5.7 billion) rather
than an actual potential import duty of around USD150 million on
USD540 million of goods imported by FQM between January 2012 and
December 2017. FQM has stated that on some of the around 23,000
separate items in question there might have been an incorrect
level of import duties applied, higher and lower than required.
The company unequivocally refutes the assessment by the ZRA and
questions the basis of the calculation.
The negative outlook signals that the company could be downgraded
should a potential settlement have a material impact on FQM's
financial profile and liquidity position. The uncertainty of a
potential settlement and the timing of such comes at a difficult
time for FQM as the company has currently elevated leverage and
high capital expenditure cash outflow both mainly related to the
Cobre copper greenfield project in Panama. Accordingly, FQM has in
Moody's view currently only limited financial capacity for a large
settlement payment.
FQM's B3 corporate family rating also reflects the company's solid
fundamental position as a medium-sized, high-growth copper
producer operating two large scale, high-quality, low-cost mines
in Zambia, and several smaller mines in other jurisdictions. The
company increased its copper production to 574 kt in 2017 compared
to 539 kt in 2016 However, adjusted EBITDA improved only by 18% in
2017 to $1.1 billion despite copper prices having rallied by
around 30% over the course of 2017 as EBITDA generation was
affected by $568 million of hedging losses. For 2018 Moody's
expects FQM to increase EBITDA by around 40% to $1.6 billion,
taking into account the company's existing hedging arrangements at
significantly higher prices than in 2017 and Moody's copper price
assumption of $2.75/lb for 2017, compared to current copper spot
price of $3.10/lb.
In 2018, FQM continues to invest heavily into its Cobre greenfield
copper project in Panama that it expects to bring on stream in
2019.
The company has recently raised the project cost guidance to $6.3
billion from $5.7 billion previously and also increased its
exposure to the project as it raised its ownership of the asset to
90% from 80%. FQM acquired LS-Nikko Copper Inc's 10% stake in
Cobre for $664 million of which $485 million will be paid in five
installments over a four-year period starting in 2018. FQM stated
that a further $1.56 billion need to be invested to complete the
Cobre project. The large investment plan will keep FQM's capex
high in 2018 and Moody's expect the company to generate negative
free cash flow of around $0.8 billion in 2018. However, once the
Cobre project comes online and capex declines materially, free
cash flow should turn strongly positive enabling FQM to deleverage
rapidly in the absence of any new substantial projects.
FQM recently issued $1.85 billion of senior unsecured notes to
repay some of its existing debt and to fund the large investment
program.
While the funding transaction has improved the company's liquidity
position and debt maturity profile, Moody's expect that FQM's
adjusted leverage remains high this year. However, Moody's
forecast for EBITDA growth of around 40% this year (based on
Moody's copper price assumption of $2.75/lb) offsets the rising
adjusted debt level and should result in adjusted debt/EBITDA
falling from 7.7x at the end of 2017 to 6.1x in 2018 and further
to around 5.1x in 2019.
During the expansion phase in Panama, FQM's credit profile,
remains constrained by the high metal, operational and country
concentration, with about three quarters of 2018 EBITDA expected
to be generated by two large copper mines in Zambia.
RATIONALE FOR THE NEGATIVE OUTLOOK
The negative outlook reflects the uncertainty of the magnitude of
a potential settlement outcome with the ZRA and the timing of such
in the light of limited financial resources to manage any material
settlement. However, the outlook would likely be stabilized should
FQM be able to settle the tax dispute without any material payment
to the ZRA. Under such a scenario, the stabilization of the
outlook would be justified by FQM's improved liquidity position
and the better profitability trajectory taking into account the
stronger copper market fundamentals. A stable outlook would also
require Moody's continued expectation that FQM's financial profile
will strengthen, with adjusted leverage falling below 6x in 2019
and that the company will sustain a solid liquidity position.
LIQUIDITY POSITION
FQM has significantly improved its liquidity position with recent
issuance of notes at a total amount of $1.85 billion. The new
notes repaid a $700 million term loan and the balance was used to
fully pay down the utilization under the $1.5 billion RCF, which
matures in December 2020. In the absence of any material tax
settlement with the ZRA, the RCF together with the balance of
unrestricted cash and cash equivalents of $702 million at the end
of 2017 will enable FQM to fully fund the Cobre project taking
into account the latest capex guidance. In addition, FQM has now
only very limited debt maturities of less than $100 million in
2018 and 2019 which removes any debt refinancing needs until the
end of 2020.
WHAT COULD CHANGE THE RATING -- UP/DOWN
A stronger financial and operational profile, reflected in
sustained positive FCF generation and reduced leverage, with
adjusted debt/EBITDA below 4.5x, as well as strong execution and
substantial de-risking of Cobre Panama project would support the
upgrade of the CFR. A greater share of cash flow from projects
outside of Zambia would be a requisite for an upgrade as well. The
upgrade of the ratings will require FQM to sustain strong
liquidity position.
Failure to timely reduce deleverage as a result of significant
delays or cost overruns on the Cobre Panama project or a material
financial settlement with the ZRA, with adjusted debt/EBITDA
remaining above 6.0x, as well as weaker liquidity position would
put negative pressure on B3 CFR.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Global Mining
Industry published in August 2014.
First Quantum Minerals Ltd (FQM), headquartered in Canada and
listed on the Toronto Stock Exchange, is a medium size mining
company with a large operation in Zambia (B3 stable), which
represents the large part of the company's earnings. In Zambia,
FQM manages Kansanshi, a large and low-cost copper and gold
deposit, as well as Sentinel a new low cost mine. FQM also
operates a number of smaller mines in different countries. FQM has
a 90% interest in Cobre Panama, one of the world's largest copper
deposits, in Panama (Baa2 positive). In 2017, FQM generated
revenues of around $3.3 billion ($2.7 billion in 2016) and
Moody's adjusted EBITDA of around $1.1 billion ($0.9 billion in
2016).
======================
P U E R T O R I C O
======================
BREAST CANCER INSTITUTE: Taps Dage Consulting as Accountant
-----------------------------------------------------------
Breast Cancer Institute P.S.C. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire Dage
Consulting CPA's, PSC.
The firm will provide accounting services to the Debtor in
connection with its Chapter 11 case.
Jose Diaz Crespo, the accountant employed with Dage Consulting who
will be providing the services, charges an hourly fee of $135.
His firm has required a retainer in the sum of $2,000.
Mr. Crespo and his firm are "disinterested persons" as defined in
section 101(14) of the Bankruptcy Code, according to court
filings.
Dage Consulting can be reached through:
Jose A. Diaz Crespo
Dage Consulting CPA's, PSC
340 Urb. Industrial Victor Fernandez, Suite 201B
San Juan, PR 00926
Phone: 787-594-1882
About Breast Cancer Institute
Breast Cancer Institute, PSC, which conducts business under the
name Advance Breast Center, is a healthcare company that provides
breast imaging, mammography, diagnostic imaging, stereotactic
biopsy, radiology services. It is based in Cavey, Puerto Rico.
Breast Cancer Institute sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-01524) on March 22,
2018. In the petition signed by Vidal Rosario Leon, president,
the Debtor disclosed $4.06 million in assets and $14.67 million in
liabilities. Judge Brian K. Tester presides over the case. C.
Conde & Assoc. is the Debtor's bankruptcy counsel.
================================
T R I N I D A D & T O B A G O
================================
PETROLEUM CO: Strikes a Deal With Union
---------------------------------------
Trinidad Express report that representatives of Petroleum Co.
of Trinidad & Tobago and the Oilfield Workers Trade Union (OWTU)
signed a Memorandum of Agreement in an attempt to ensure the
Company's survival.
The union's leader Ancel Roget said an agreement was made for the
establishment of a Working Committee comprising of representatives
from both Petrotrin and the Union, to work over the next 18
months, starting from this month, according to Trinidad Express.
The Committee's mandate is to address and resolve on four
organizational structures, work processes, skills and competencies
and manpower requirement to allow for the Company's survival and
profitability, the report notes.
The report relays that Mr. Roget said that this was necessary with
respect to the restructuring of Petrotrin and assured that this
move will ensure improvements in productivity at the Company's
operations.
With the decline in petroleum prices, the debt owed to the State
and the suggestion of dividing Petrotrin into separate units,
Roget said this measure was agreed to by the Company and Union as
a means to improve its efficiency and avoid privatization, the
report says.
"With respect to the restructuring of Petrotrin, we signed that
MOA detailing that for the next 18 months starting this month, a
joint committee comprising of company representatives and union
representative will work to ensure that before they (the Company)
separate, and to divide the company that it (the issues) will be
resolved and given the requisite number of manpower to ensure that
they deliver and ensure Petrotrin not just survive but to become
successful and profitability in the shortest possible time," he
said, the report notes.
The report relays that Mr. Roget said the Union is against any
type of privatization which he believes that State is moving
towards, and that this MOA will allow for improved operations of
the Company, "keeping it in the hands of the public," he said.
The report discloses that Mr. Roget said: "the people of Trinidad
and Tobago own all of the assets in the energy sector and
therefore need to be more watchful and vigilant as to how the
revenue from that sector is used. It is own position that the
people own that sector and therefore the result, the revenue
derived must be filler back down to the interest of all of the
people of Trinidad and Tobago and improve the standard of living,"
the report adds.
As reported in the Troubled Company Reporter-Latin America on
April 28, 2017, Moody's Investors Service downgraded Petroleum Co.
of Trinidad & Tobago corporate family rating and senior unsecured
debt ratings to B1 from Ba3. Simultaneously, Moody's lowered
Petrotrin's Baseline Credit Assessment ("BCA") to caa1 from b3.
The outlook on the ratings is stable. The rating actions are
linked to Moody's April 25, 2017 downgrade of the government of
Trinidad & Tobago bond ratings to Ba1 from Baa3, with a stable
outlook.
=================
X X X X X X X X X
=================
LATAM: 7 Countries Will Receive Support From IDB Invest & LAAD
--------------------------------------------------------------
IDB Invest, the private sector institution of the IDB Group,
signed a $45 million A-loan with the Latin American Agribusiness
Development Corporation (LAAD), a financial intermediary that
finances small and medium-sized agribusiness projects in Latin
America and the Caribbean. The IDB Invest loan, which expands
LAAD's funding sources and has a tenor of up to seven years, will
go to seven countries in the region: Peru, Chile, Colombia, Costa
Rica, Guatemala, the Dominican Republic and Nicaragua.
The operation allows IDB Invest to positively impact a large
number of micro, small and medium enterprises (MSMEs), given
LAAD's knowledge of the agribusiness sector in the region. The
financing allows LAAD to expand its loan portfolio in the medium
and long term. The objective for LAAD is to continue financing
projects that, with a focus on sustainability, involve all stages
of production, storage, technology and commercialization.
The majority of LAAD's loans are aimed at developing permanent
crops, agricultural machinery and equipment for associated
agricultural infrastructure. The IDB Invest operation also
incorporates an evaluation and improvement of LAAD's environmental
and social management system. In addition, access to credit from
these agricultural companies allows regional developments such as
the increase of food production in a sustainable manner, the
creation of employment in rural areas and the growth and
diversification of export earnings.
About IDB Invest
IDB Invest, the private sector institution of the Inter-American
Development Bank (IDB) Group, is a multilateral development bank
committed to supporting the private sector in Latin America and
the Caribbean. It finances sustainable enterprises and projects to
achieve financial results that maximize economic, social and
environmental development for the region. With a current portfolio
of $11.6 billion under management and 330 clients in 21 countries,
IDB Invest works across sectors to provide innovative financial
solutions and advisory services that meet the evolving demands of
its clients. As of November 2017, IDB Invest is the trade name of
the Inter-American Investment Corporation.
About LAAD
Latin American Agribusiness Development Corporation (LAAD) is a
private investment and development company. LAAD finances and
develops private agribusiness projects in Latin America and the
Caribbean involving all phases of production, processing, storage,
services, technology and marketing in the fields of agriculture,
livestock, forestry and fishing.
***********
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 * * *