/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/180625.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 Monday, June 25, 2018, Vol. 19, No. 125 Headlines B R A Z I L BRAZIL: Supreme Court Quashes Lula's Latest Appeal MRS LOGISTICA: S&P Affirms BB- Corp. Credit Rating, Outlook Stable G U A T E M A L A GUATEMALA: OKs Monthly Payment for Those Affected by Volcano M E X I C O CONSOLIDATED ENERGY: S&P Retains 'BB' Debt Ratings Amid Add-ons N I C A R A G U A NICARAGUA: Police Vow to End Violence by Government Supporters P A R A G U A Y PARAGUAY GOVERNMENT: Moody's Affirms Ba1 Issuer & Sr. Bond Ratings P U E R T O R I C O ADLER GROUP: Disclosure Statement Hearing Moved to Aug. 29 BKH ACQUISITION: S&P Raises CCR to to 'CCC+', Outlook Stable CHASE MONARCH: Ct. Won't Review Ruling on Medawar Lease Agreement TOYS R US: Court OKs Assignment of Brea I Lease to BCFWC T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Reaffirms Trade Ties With Cuba TRINIDAD & TOBAGO: Requests Audit Reports of Carnival X X X X X X X X X * BOND PRICING: For the Week From June 18 to June 22, 2018 - - - - - =========== B R A Z I L =========== BRAZIL: Supreme Court Quashes Lula's Latest Appeal -------------------------------------------------- Business Standard reports that Brazil's Supreme Court has dismissed a motion by former President Luiz Inacio Lula da Silva to be freed on bail or granted house arrest while he pursues further appeals of a corruption conviction. The dismissal was announced by Justice Edson Fachin, Efe news reported, according to Business Standard. The report notes that Lula's Workers Party had hoped to see him out of jail so he could formally launch his campaign for the October presidential election. The 72-year-old former head of state has been in custody since April 7, serving a 12-year sentence, the report relays. President Lula, who governed Brazil from 2003 to 2011 and left office with sky-high approval ratings, would be the clear front- runner if he were allowed to run. But election authorities are not expected to allow his candidacy, the report notes. A three-judge appellate panel ruled in January that there was sufficient proof that Lula accepted a triplex in Guaruja, a resort town near Sao Paulo, from construction company OAS in exchange for helping that firm secure contracts with Brazilian state oil company Petrobras, the report says. The case against President Lula, who denies any wrongdoing, was based largely on plea-bargained testimony from people already convicted as part of the sprawling Petrobras investigation, the report adds. As reported in the Troubled Company Reporter-Latin America in February 2018, Fitch Ratings downgraded Brazil's Long-Term Foreign Currency Issuer Default Rating (IDR) to 'BB-' from 'BB' and revised the Rating Outlook to Stable from Negative. MRS LOGISTICA: S&P Affirms BB- Corp. Credit Rating, Outlook Stable ------------------------------------------------------------------ S&P Global Ratings affirmed its 'BB-' global scale and 'brAA-' Brazilian national scale corporate credit ratings on MRS Log°stica S.A. (MRS). S&P also affirmed its 'brAA-' issue-level rating on MRS's senior unsecured debentures. The outlook remains stable. S&P said, "Our recovery rating on MRS's senior unsecured debt remains unchanged at '3', reflecting a meaningful recovery of 50%- 70% (rounded estimate: 65%) following a restructuring post-default scenario. "Despite MRS's status as the most efficient railroad operator in the country, we currently cap the rating on the company at the sovereign level. This is due to our view that under MRS's current capital structure with some short-term debt concentration, sizable capex, and all cash position invested in the country, MRS's liquidity position could be impaired amid a sovereign default scenario, hindering its ability to maintain debt payments." Nevertheless, the company's 'bb+' SACP remains unchanged thanks to MRS's resilient cash flow generation even amid volatile and weak economic conditions in Brazil over the past years, sound operating efficiency in the form of above-industry-average EBITDA margins and strong free operating cash flow (FOCF). Also, the company's cost-reduction actions and investments in safety standards allow it to keep improving its operating metrics. However, the ratings constraint stems from MRS's limited scale and railroad length compared to those of its peers such as Rumo. S&P said, "We expect the company to continue maintain its EBITDA margin in the 50% area, credit metrics such as debt to EBITDA below 3.0x and FFO to debt above than 20%, and generate FOCF. The company's resilience to Brazil's economic downturn over the past few years, in our view, is due to its strategic position in Brazil's main iron export corridor in the southeastern region, increasing volumes of general cargo mainly of agricultural commodities. "Our base-case scenario assumes that MRS will post slight increases in transported volumes over the next few quarters. Growth would mainly stem from bulk cargo volumes, driven by steel and agricultural products, while the share of iron ore should remain fairly flat. We also don't expect recent truck drivers' strike in Brazil to impact the company's metrics, because changes in its fuel costs are mostly transferred to prices, and large portion of its volume is protected by take-or-pay clauses. A potential positive impact would be higher demand for railroad transportation in the country, but for which volume increase would require significant investments." ================= G U A T E M A L A ================= GUATEMALA: OKs Monthly Payment for Those Affected by Volcano ------------------------------------------------------------- EFE News reports that the Guatemalan Congress approved a loan of $250 million from the International Bank for Reconstruction and Development, which will be distributed in part to those affected by the eruption of the Fuego volcano. With 84 votes in favor, Congress gave the green light to the decree, which authorizes negotiation on the loan agreement, according to EFE News. The loan, which will be endorsed through the Ministry of Finance, will be used in part to improve the governance of public resources and nutrition and to attend the victims of the eruption, the report notes. According to what was discussed during the session, about 582.5 million quetzals (about $77.7 million) will be used for those affected by the Jun. 3 eruption. One of the points included is a monthly payment of about $470 for a period of 10 months for families that have lost everything in the tragedy, but there has been no explanation in terms of which agency will be responsible, how the process will be verified or the number of families identified. The Jun. 3 eruption of the Fuego volcano has caused the deaths of 112 people with 55 injured, almost 200 missing and more than 1.7 million affected. =========== M E X I C O =========== CONSOLIDATED ENERGY: S&P Retains 'BB' Debt Ratings Amid Add-ons --------------------------------------------------------------- S&P Global Ratings said that its 'BB' issue-level ratings on Consolidated Energy Finance S.A.'s (CEF) up to $550 million seven- year secured B-term loan and its $300 million senior floating rate unsecured notes due 2022 are unaffected following its $50 million and $125 million add-ons. At the same time, S&P assigned its 'BB' issue-level rating to CEF's $400 million eight-year senior fixed rate unsecured notes. CEF is a financing subsidiary of Consolidated Energy Limited (CEL) (BB/Negative/--). CEF used the $600 million proceeds of B-term loan to refinance existing debt, which consists Methanol Holding (Trinidad) Limited's (MHTL) secured B-term loan due 2022 and its revolving credit facilities due 2020 for $282 million and $260 million, respectively. The new $400 million senior unsecured notes and $125 million senior unsecured note add-ons were used to refinance existing notes due 2019 of about $500 million. S&P said, "Although we consider this transaction to be neutral to its leverage, given that CEF will mainly use the proceeds from the new term loan to pay existing debt, we believe that the transactions improve CEL's debt maturity profile by extending the average term of its debt to approximately seven and a half years from four, as well as reducing its average interest rate by more than 50 basis points. This further supports our strong liquidity assessment of CEL." The issue-level rating is at the same level as S&P's corporate credit rating on CEL, reflecting its view that the priority debt ratio is below the 50% threshold of CEL's consolidated debt. CEL's ratio of priority debt is slightly above 30%, thus, there is no potential material disadvantage to noteholders under a bankruptcy or liquidation scenario. RATING LIST Consolidated Energy Limited Corporate Credit Rating BB/Negative/-- Ratings Assigned Consolidated Energy Finance S.A. Senior Unsecured US$400mil 6.5% nts due 05/15/2026 BB ================= N I C A R A G U A ================= NICARAGUA: Police Vow to End Violence by Government Supporters -------------------------------------------------------------- The Latin American Herald reports that Nicaragua's National Police pledged to halt violence by supporters of President Daniel Ortega against the opposition-led city of Masaya, Cardinal Leopoldo Brenes said. The police commander in Masaya, Ramon Avellan, "has committed himself to stopping the attacks," the cardinal said after talks with the chief, according to The Latin American Herald. Cardinal Brenes, accompanied by papal nuncio Stanislaw Waldemar Sommertag, met with Avellan after the second attack in Masaya in less than 48 hours, the report notes. The cardinal said that the commander also agreed to a request to release a number of political detainees, the report relays. Two Masaya priests and a human rights activist will monitor police compliance with the accords reached, Cardinal Brenes said, the report says. The cardinal and other senior clerics rushed to Masaya after armed Ortega supporters initiated an offensive in the city's mostly indigenous Monimbo neighborhood, the report notes. The report recounts that three days ago, leaders of Masaya proclaimed the city "dictator-free territory," referring to Ortega, who was re-elected in 2016 with more than 70 percent of the vote. At least 200 people have died in political unrest in Nicaragua since April 18, when protests began against a controversial plan to overhaul the pension system, the report says. Though the government abandoned the plan, protests continued and opponents began demanding the resignation of Ortega, now in the 11th year of his current tenure as president, the report notes. He previously governed the Central American nation from 1979-1990 after leading the Sandinista revolution that overthrew US-backed autocrat Anastasio Somoza, the report adds. As reported Troubled Company Reporter-Latin America on June 15, 2018, Moody's Investors Service has changed Nicaragua's rating outlook to stable from positive and affirmed its B2 long-term issuer ratings. =============== P A R A G U A Y =============== PARAGUAY GOVERNMENT: Moody's Affirms Ba1 Issuer & Sr. Bond Ratings ------------------------------------------------------------------ Moody's Investors Service has affirmed the Ba1 issuer and the Ba1/ (P)Ba1 senior unsecured bond ratings of the Government of Paraguay. The outlook remains stable. The key drivers for the rating affirmation are: 1. Paraguay's credit metrics remain consistent with Ba1-rated peers and the economy has proven resilient to the regional slowdown with fiscal indicators outperforming peer group medians 2. Prudent fiscal policy has kept government debt burden low, allowing for increased infrastructure investment Moody's decision to affirm Paraguay's Ba1 ratings reflects sustained growth rates, the sovereign's strong fiscal position, and on-going economic diversification. Fiscal metrics remain favorable compared to the medians for Ba-rated peers. Authorities' efforts to improve the fiscal framework have been successful in containing current spending creating financial space for increased capital spending in infrastructure. These strengths are balanced against relatively low level of wealth and weak governance indicators relative to peers, despite sound macroeconomic management. Paraguay's long-term foreign currency bond ceiling remains unchanged at Baa3, while the short-term foreign currency bond ceiling remains unchanged at P-3. The long-term foreign currency deposit ceiling is unchanged at Ba2, and the short-term foreign currency deposit ceiling at NP. Paraguay's long-term local- currency bond and deposit ceilings remain at Baa3. RATINGS RATIONALE RATIONALE FOR THE RATING AFFIRMATION FIRST DRIVER - Paraguay's credit metrics remain consistent with Ba1-rated peers, and outperform on economic growth and fiscal indicators Paraguay's economic growth was among the highest in Latin America over the past five years proving resilient to the regional slowdown, particularly the severe recession in Brazil. GDP growth averaged 5.0% over the last five years compared with 3.7% for Ba- rated peers despite recurrent agriculture-driven growth volatility. High growth was driven by public investment in infrastructure, strong agriculture sector performance, and rapid growth in the maquila sector linked to Brazil's supply chain. Inflation has been anchored around the central bank target of 4%, supported by inflation targeting policy. The central bank recently updated its national accounting framework using 2014 prices which has resulted in a GDP series about 30% larger than previously estimated. Moody's expects Paraguay's GDP growth rate to remain strong, around 4.2% in 2018-19; still among the highest growth rates in the region, driven by higher value-added in the agricultural sector, and increased private consumption and public investment. Paraguay's sovereign credit profile benefits from low external vulnerability. Paraguay's current account posted a 0.9% of GDP deficit in 2017 (using revised GDP) and Moody's expects a similar result in 2018. Gross foreign direct investment remained strong last year at around 7% of GDP. The stock of international reserves continued to increase reaching $8.7 billion in May 2018, a level equivalent to 24% of GDP. SECOND DRIVER - Prudent fiscal policy has kept government debt burden low, allowing for increased infrastructure investment Paraguay's Ba1 rating is supported by the strength of the government's balance sheet and a track-record of prudent fiscal policies. The fiscal accounts posted a deficit of 1.1% of GDP in 2017 (using revised GDP), in compliance with the fiscal deficit ceiling mandated by the fiscal responsibility law. The government has consistently observed the fiscal deficit ceiling since 2015, and Moody's expects it will continue to do so. The government increased capital expenditures in 2017, reaching 2.4% of GDP; while current expenditures were contained. The rating agency expects the authorities to maintain a similar spending pattern in 2018, placing increased emphasis on infrastructure spending. In Moody's view, robust public investment spending, coupled with low fiscal deficits and government debt ratios are important support elements of Paraguay's Ba1 rating. The balance maintained between growth-enhancing public investment while maintaining low government debt burden is key to preserving high fiscal strength, which anchors Paraguay's rating. A peer comparison reveals that Paraguay's sovereign debt metrics remain below its Ba1-rated peers. Government debt stood at 15.5% of GDP at end 2017, below the Ba1 median of 46% and one of the lowest in the region. The interest payments-to-government revenue ratio of 4.1%, compares favorably to a Ba-median of 8.3%. Moody's expects Paraguay's government debt to remain below 25% of GDP over the next five years. RATIONALE FOR THE STABLE OUTLOOK The stable outlook reflects Moody's expectations that the authorities will maintain prudent macroeconomic and fiscal policies. The stable outlook also reflects a balance between risks resulting from tighter global liquidity conditions and the relatively modest regional recovery, against prospects of continued economic growth and increased diversification, stable debt dynamics, and limited external vulnerability of Paraguay's credit profile. WHAT COULD MOVE THE RATINGS UP Upward rating pressure could result from (1) track-record of continued compliance with the fiscal responsibility law; (2) successful completion of growth-enhancing infrastructure investments; and (3) steady improvement in institutional and governance indicators. WHAT COULD MOVE THE RATINGS DOWN Downward rating pressure could result from (1) marked deterioration in fiscal indicators and significant rise in government debt; and/or (2) significant and prolonged deterioration in external accounts and increase in external vulnerability. GDP per capita (PPP basis, US$): 9,826 (2017 Actual) (also known as Per Capita Income) Real GDP growth (% change): 4.3% (2017 Actual) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 4.5% (2017 Actual) Gen. Gov. Financial Balance/GDP: -1.1% (2017 Actual) (also known as Fiscal Balance) Current Account Balance/GDP: -0.9% (2017 Actual) (also known as External Balance) External debt/GDP: 40.2% Level of economic development: Moderate level of economic resilience Default history: At least one default event (on bonds and/or loans) has been recorded since 1983. On June 19, 2018, a rating committee was called to discuss the rating of the Paraguay, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have not materially changed. The issuer's institutional strength/ framework, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. ====================== P U E R T O R I C O ====================== ADLER GROUP: Disclosure Statement Hearing Moved to Aug. 29 ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico moved the hearing on Adler Group Inc.'s disclosure statement to August 29 from August 8. The hearing will take place at 9:00 a.m., at Courtroom 3. About Adler Group Inc. Adler Group Inc. owns the Caguas Military property located at Carr 189 km 3.1 (interior) Rincon Ward, Gurabo Puerto Rico, which is valued at $3 million. It holds inventory and equipment worth $513,870. For 2015, the Company posted gross revenue of $1.61 million 2015 and gross revenue of $1.91 million for 2014. Adler Group sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 17-02727) on April 20, 2017. In the petition signed by Jose Torres Gonzalez, authorized representative, the Debtor disclosed $3.52 million in assets and $4.43 million in liabilities. The case is assigned to Judge Mildred Caban Flores. The Debtor hired MRO Attorneys at Law, LLC, as bankruptcy counsel. BKH ACQUISITION: S&P Raises CCR to to 'CCC+', Outlook Stable ------------------------------------------------------------ S&P Global Ratings raised its corporate credit rating on Puerto Rico-based BKH Acquisition Corp. (BKH) to 'CCC+' from 'CCC-'. The outlook is stable. S&P said, "Subsequently, we withdrew our corporate credit rating on BKH Acquisition Corp. at the issuer's request because it has refinanced its capital structure and no longer requires credit ratings under its new credit agreements. "At the same time, we withdrew our 'CCC-' issue-level rating on the company's $10 million first-lien revolver due 2018 and $110.5 million first-lien term loan due 2019 and our 'C' issue-level rating on its $64.3 million pay-in-kind (PIK) second-lien term loan because they have been repaid. The upgrade reflects the company's improved liquidity after addressing the near-term maturities of its entire capital structure. The refinancing transaction has altered our prior view that the company would be unable to refinance its entire capital structure ahead of its maturities because it continues to face very challenging economic conditions in Puerto Rico, which were worsened by the arrival of Hurricane Maria late in 2017. The stable outlook on BKH at the time of the withdrawal reflected our expectation that the company would maintain sufficient liquidity to meet its obligations during the next 12 months under its new capital structure. It also reflected our belief that it would maintain an adequate and sufficient cushion under its financial covenants over the next 12 months. We are no longer maintaining surveillance on the company following the repayment of its rated debt. CHASE MONARCH: Ct. Won't Review Ruling on Medawar Lease Agreement ----------------------------------------------------------------- Judge Brian K. Tester of the U.S. Bankruptcy Court for the District of Puerto Rico denied Debtor Chase Monarch International, Inc.'s Motion for Reconsideration of the Opinion and Order entered by the Court on Jan. 24, 2018. This matter stems from the court's Opinion and Order which determined that the lease agreement between the Debtor and Creditor Cherif Medawar was legally binding under state law, legally terminated on Oct. 31, 2017, and was therefore not property of the Debtor's estate. Debtor requests a reconsideration of the Opinion and Order and/or to alter and/or Amend Judgment and/or for relief from a Judgment or order, pursuant to Federal Rules of Civil Procedure 59(a)(2) and 60(b)(6). Debtor contends that the court erred in its interpretation and/or determination that the notice to cure and the termination notice were valid and complied with the Lease Contract Agreement dated Sept. 5, 2017. Upon review of the Debtor's arguments, the court determines that the evaluation of the evidence demonstrates that no error was committed. Moreover, Debtor has failed to bring new evidence before the court. Debtor has rehashed the same arguments previously brought before the court in its opposition and its sur- reply to the request for order to surrender the premises. Debtor fails to establish any of the required legal factors for reconsideration under Rules 59 and 60. After considering the factual and legal arguments brought forth, the court finds that Debtor's motion neither provides the court with genuine reasons why it should revisit the prior Opinion & Order, nor compelling facts or law in support of reversing the prior decision. Granting a motion for reconsideration under Rules 9023 and 9024 is generally viewed with disfavor by the courts, and a regurgitation of the previous arguments now being set forth by Debtor do not provide any reason to justify relief from this court's Opinion & Order. The Court, thus, determines that Debtor is not entitled to reconsideration. A full-text copy of the Court's Order and Opinion dated June 10, 2018 is available at: http://bankrupt.com/misc/prb17-06841-11-165.pdf About Chase Monarch International, Inc. Chase Monarch International, Inc., filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-06841) on November 14, 2017, disclosing under $1 million in both assets and liabilities. The Debtor is represented by Hector Juan Figueroa Vincenty, Esq. TOYS R US: Court OKs Assignment of Brea I Lease to BCFWC -------------------------------------------------------- Toys "R" Us -- Delaware, Inc., one of the Debtors in the jointly administered chapter 11 cases captioned In re: Toys "R" Us, Inc., et al., Chapter 11, Debtors, Case No. 17-34665-KLP, (Jointly Administered) (Bankr. E.D. Va.) currently rents space in a retail shopping center from Brea Union Plaza I. TRU, in connection with a court-approved auction of certain real property and unexpired leases, is seeking final approval of the assumption and assignment of its lease with Brea I to Burlington Coat Factory Warehouse Corporation. Brea I objects to the proposed assignment, asserting that TRU has not satisfied the adequate assurance of future performance requirements of 11 U.S.C. section 365(b)(3) because the assignment to Burlington would violate the exclusivity provision of another lease in the shopping center and would disrupt the shopping center's tenant mix and balance. An evidentiary hearing was conducted on May 10, 2018. After carefully considering the evidence and submissions of the parties, Bankruptcy Judge Keith L. Phillips overruled Brea I's objections. The parties agree that Brea Union Plaza constitutes a "shopping center" as that term is used in 11 U.S.C. section 365(b)(3) and that the Lease is "an unexpired lease of nonresidential real property under which the debtor is the lessee" as that phrase is used in 11 U.S.C.section 365(d)(4)(A). The Debtors' proposed assignment of the Lease to Burlington must, therefore, satisfy the "adequate assurance of future performance of a lease of real property in a shopping center" requirement set forth in 11 U.S.C. section 365(b)(3). Section 365(b)(3) of the Bankruptcy Code has four subsections applicable to shopping centers, including subsections (C) and (D), which are at issue in this case. Subsection (C) requires adequate assurance "that assumption or assignment of such lease is subject to all the provisions thereof, including (but not limited to) provisions such as a radius, location, use, or exclusivity provision, and will not breach any such provision contained in any other lease, financing agreement, or master agreement relating to such shopping center." Subsection (D) requires adequate assurance "that assumption or assignment of such lease will not disrupt any tenant mix or balance in such shopping center." The Court finds that assumption and assignment of the Lease to Burlington will not breach the exclusivity provision contained in the Ross Lease -- lease executed by Brea I with Ross Dress for Less on Oct. 1, 2009. The provision prohibiting Brea I from allowing a tenant to use the Premises to sell off-price apparel applies only if Brea I "has the capacity to do so." As the court observed in Martin Paint Stores, a court order approving the assumption and assignment of a lease is a judicial action that may render the landlord unable to comply with a restriction contained in another lease. "The law excuses performance that has been rendered legally impossible." Here, approval of the assumption and assignment of the Lease to Burlington pursuant to section 365 renders Brea I without the capacity to prevent Burlington's intended use, an occurrence that may have been contemplated when the terms of the Ross Lease were negotiated. Accordingly, there has been no showing that the adequate protection requirement of section 365(b)(3)(C) is unmet. Brea I's contention that the Debtors are unable to provide adequate assurance under 11 U.S.C. section 365(b)(3)(D) fails in light of the record and legal precedent. The court in In re Ames Department Stores, Inc. stated that section 365(b)(3)(D) "must be interpreted to refer to contractual protections and not undefined notions of tenant mix." Finding no contractual provisions requiring the assignee to comply with the requirements of any master agreement or to preserve tenant mix and location, the court found that the assignment sought in Ames did not violate section 365(b)(3)(D).5 Similarly, Brea I has pointed to no provisions in the Lease or any applicable master agreement relating to tenant mix and balance that would prohibit the assignment of the Lease to Burlington. Aside from the lack of adequate protection, there is insufficient evidence to support a finding that assignment of the Lease to Burlington will disrupt the existing tenant mix and balance in Brea Union Plaza. The Stipulations include a brief description of the nature of the other tenants' businesses, but these brief descriptions fall short of establishing that there was an intended tenant mix. In a shopping center with 43 tenants, only two primarily sell "off-price" apparel. Brea I has not demonstrated that a third "off-price" retailer will disrupt the tenant mix and balance. In light of Brea I's failure to show that its contractual rights will be violated by the assignment of the Lease to Burlington, the Court will not prohibit the proposed assumption and assignment. The Debtors have met their burden under section 365(b)(1) and (3) of providing adequate assurance of future performance. The Court finds that the assumption and assignment of the Lease to Burlington is in the best interests of the Debtors' Estates. A full-text copy of the Court's Memorandum Opinion and Order dated May 24, 2018 is available at https://bit.ly/2JZpgFJ from Leagle.com. Toys "R" Us, Inc., Debtor, represented by Peter J. Barrett -- peter.barrett@kutakrock.com -- Kutak Rock L.L.P., Michael A. Condyles -- Michael.condyles@kutakrock.com -- Kutak Rock LLP, Loc Pfeiffer -- loc.pfeiffer@kutakrock.com -- Kutak Rock LLP & Jeremy S. Williams -- Jeremy.williams@kutakrock.com -- Kutak Rock LLP. Judy A. Robbins & William K. Harrington, U.S. Trustees, represented by Shannon Pecoraro, Office of the U.S. Trustee & Robert B. Van Arsdale, Office of the U. S. Trustee. Official Committee of Unsecured Creditors, Creditor Committee, represented by Olga Antle -- oantle@wolriv.com -- Wolcott Rivers Gates, Cullen Drescher Speckhart -- cspeckhart@wolriv.com -- Wolcott Rivers Gates & Joshua David Stiff -- jsiff@wolriv.com -- Wolcott Rivers Gates. DLC Management Corp., Creditor Committee, represented by Joseph D. Wilson, Kelley Drye & Warren LLP. About Toys R Us, Inc. Toys "R" Us, Inc., was an American toy and juvenile-products retailer founded in 1948 and headquartered in Wayne, New Jersey, in the New York City metropolitan area. Merchandise was sold in 880 Toys "R" Us and Babies "R" Us stores in the United States, Puerto Rico and Guam, and in more than 780 international stores and more than 245 licensed stores in 37 countries and jurisdictions. Merchandise was also sold at e-commerce sites including Toysrus.com and Babiesrus.com. On July 21, 2005, a consortium of Bain Capital Partners LLC, Kohlberg Kravis Roberts, and Vornado Realty Trust invested $1.3 billion to complete a $6.6 billion leveraged buyout of the company. Toys "R" Us is a privately owned entity but still files with the U.S. Securities and Exchange Commission as required by its debt agreements. The Company's consolidated balance sheet showed $6.572 billion in assets, $7.891 billion in liabilities, and a stockholders' deficit of $1.319 billion as of April 29, 2017. Toys "R" Us, Inc., and certain of its U.S. subsidiaries and its Canadian subsidiary voluntarily filed for relief under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. Case No. 17-34665) on Sept. 19, 2017. In addition, the Company's Canadian subsidiary voluntarily commenced parallel proceedings under the Companies' Creditors Arrangement Act ("CCAA") in Canada in the Ontario Superior Court of Justice. The Company's operations outside of the U.S. and Canada, including its 255 licensed stores and joint venture partnership in Asia, which are separate entities, were not part of the Chapter 11 filing and CCAA proceedings. Grant Thornton is the monitor appointed in the CCAA case. Judge Keith L. Phillips presides over the Chapter 11 cases. In the Chapter 11 cases, Kirkland & Ellis LLP and Kirkland & Ellis International LLP serve as the Debtors' legal counsel. Kutak Rock LLP serves as co-counsel. Toys "R" Us employed Alvarez & Marsal North America, LLC as its restructuring advisor; and Lazard Freres & Co. LLC as its investment banker. It hired Prime Clerk LLC as claims and noticing agent. Consensus Advisory Services LLC and Consensus Securities LLC, serve as sale process investment banker. A&G Realty Partners, LLC, serves as its real estate advisor. On Sept. 26, 2017, the U.S. Trustee for Region 4 appointed an official committee of unsecured creditors. The Committee retained Kramer Levin Naftalis & Frankel LLP as its legal counsel; Wolcott Rivers, P.C., as local counsel; FTI Consulting, Inc. as financial advisor; and Moelis & Company LLC as investment banker. Toys "R" Us UK Toys "R" Us Limited, Toys "R" Us, Inc.'s UK arm with 105 stores and 3,000 employees, was sent into administration in the United Kingdom in February 2018. Arron Kendall and Simon Thomas of Moorfields Advisory Limited, 88 Wood Street, London, EC2V 7QF were appointed Joint Administrators on Feb. 28, 2018. The Administrators now manage the affairs, business and property of the Company. The Administrators act as agents only and without personal liability. The Administrators said they will make every effort to secure a buyer for all or part of the business. Liquidation of U.S. Stores Toys "R" Us, Inc., on March 15, 2018, filed with the U.S. Bankruptcy Court a motion seeking Bankruptcy Court approval to start the process of conducting an orderly wind-down of its U.S. business and liquidation of inventory in all 735 of the Company's U.S. stores, including stores in Puerto Rico. Propco I Debtors Toys "R" Us Property Company I, LLC and its subsidiaries own fee and leasehold interests in more than 300 properties in the United States. The Debtors lease the properties on a triple-net basis under a master lease to Toys-Delaware, the operating entity for all of TRU's North American businesses, which operates the majority of the properties as Toys "R" Us stores, Babies "R" Us stores or side-by-side stores, or subleases them to alternative retailers. Toys "R" Us Property was founded in 2005 and is headquartered in Wayne, New Jersey. Toys 'R' Us Property operates as a subsidiary of Toys "R" Us Inc. Company LLC, MAP Real Estate LLC, TRU 2005 RE I LLC, TRU 2005 RE II Trust, and Wayne Real Estate Company LLC (collectively, "Propco I Debtors") sought protection under Chapter 11 of the Bankruptcy Code (Bankr. E.D. Va. Lead Case No. 18-31429) on March 20, 2018. The Propco I Debtors sought and obtained procedural consolidation and joint administration of their Chapter 11 cases, separate from the Toys "R" Us Debtors' Chapter 11 cases. The Propco I Debtors estimated assets of $500 million to $1 billion and liabilities of $500 million to $1 billion. Judge Keith L. Phillips presides over the Propco I Debtors' cases. The Propco I Debtors hired Klehr Harrison Harvey Branzburg, LLP; and Crowley, Liberatore, Ryan & Brogan, P.C., as co-counsel. The Debtors also tapped Kutak Rock LLP. They hired Goldin Associates, LLC, as financial advisors. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Reaffirms Trade Ties With Cuba ------------------------------------------------- Trinidad Express reports that Minister of Trade and Industry Paula Gopee-Scoon recently met with Cuba's Vice Minister of Foreign Affairs Rogelio Sierra Diaz to discuss, among other things, opportunities for increased trade with Cuba. Trinidad and Tobago is currently Cuba's largest Caricom trading partner, recording 80 per cent of trade in the region, according to Trinidad Express. The report notes that Sierra Diaz said his visit was part of the active re-engagement of partners under the leadership of Cuba's new president, Miguel Diaz-Canel, who was elected earlier this year. TRINIDAD & TOBAGO: Requests Audit Reports of Carnival ----------------------------------------------------- Ria Taitt at Trinidad Express reports that Cabinet has directed that the audit reports of three special interest groups (SIGs) associated with Carnival be sent to the Auditor General, for specific recommendations to the Ministry of Community Development, Culture and the Arts. "Cabinet has requested an urgent response -- within one month, from the Auditor General," Minister Nyan Gadsby-Dolly said in a statement to Parliament, according to Trinidad Express. This will facilitate the necessary adjustments in financial arrangements for Carnival 2019 between the National Carnival Commission (NCC) and the SIGs which sit on its board," she added, the report notes. ================= X X X X X X X X X ================= * BOND PRICING: For the Week From June 18 to June 22, 2018 ---------------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- BA-CA Finance Cayman Lt 0.518 62.07 KY EUR AES Tiete Energia SA 6.7842 1.109 4/15/2024 BR BRL Argentina Bogar Bonds 2 39.36 2/4/2018 AR ARS Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD Automotores Gildemeister 6.75 67 1/15/2023 CL USD Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD Automotores Gildemeister 6.75 65.5 1/15/2023 CL USD CA La Electricidad 8.5 63.664 4/10/2018 VE USD Caixa Geral De Depositos 1.439 63.167 KY EUR Caixa Geral De Depositos 1.469 KY EUR CSN Islands XII Corp 7 68 BR USD CSN Islands XII Corp 7 66.266 BR USD Decimo Primer Fideicomiso 6 53.225 10/25/2041 PA USD Decimo Primer 4.54 43.127 10/25/2041 PA USD Dolomite Capital 13.217 73.108 12/20/2019 CN ZAR Enel Americas SA 5.75 56.172 6/15/2022 CL CLP Gol Linhas Aereas SA 10.75 35.861 2/12/2023 BR USD Gol Linhas Aereas SA 10.75 35.601 2/12/2023 BR USD Inversora Electrica 6.5 67.625 9/26/2017 AR USD Inversora Electrica 6.5 67.625 9/26/2017 AR USD MIE Holdings Corp 7.5 64.78 4/25/2019 HK USD MIE Holdings Corp 7.5 64.982 4/25/2019 HK USD NB Finance Ltd 3.88 61.816 2/7/2035 KY EUR Noble Holding 7.7 74.433 4/1/2025 KY USD Noble Holding 5.25 56.279 3/15/2042 KY USD Noble Holding 8.7 71.881 4/1/2045 KY USD Noble Holding 6.2 60.129 8/1/2040 KY USD Noble Holding 6.05 58.38 3/1/2041 KY USD Odebrecht Finance Ltd 7.5 42.5 KY USD Odebrecht Finance Ltd 5.125 56.938 6/26/2022 KY USD Odebrecht Finance Ltd 7 68.053 4/21/2020 KY USD Odebrecht Finance Ltd 7.125 41.366 6/26/2042 KY USD Odebrecht Finance Ltd 4.375 40.002 4/25/2025 KY USD Odebrecht Finance Ltd 5.25 39.211 6/27/2029 KY USD Odebrecht Finance Ltd 6 44.75 4/5/2023 KY USD Odebrecht Finance Ltd 5.25 39.018 6/27/2029 KY USD Odebrecht Finance Ltd 7.5 42.95 KY USD Odebrecht Finance Ltd 4.375 40.363 4/25/2025 KY USD Odebrecht Finance Ltd 7.125 41.635 6/26/2042 KY USD Odebrecht Finance Ltd 6 52.625 4/5/2023 KY USD Odebrecht Finance Ltd 5.125 55.873 6/26/2022 KY USD Odebrecht Finance Ltd 7 67.368 4/21/2020 KY USD Petroleos de Venezuela 8.5 74.5 10/27/2020 VE USD Petroleos de Venezuela 6 30.458 5/16/2024 VE USD Petroleos de Venezuela 6 30.517 11/15/2026 VE USD Petroleos de Venezuela 9.75 35.677 5/17/2035 VE USD Petroleos de Venezuela 9 39.279 11/17/2021 VE USD Petroleos de Venezuela 5.375 30.267 4/12/2027 VE USD Petroleos de Venezuela 8.5 72.5 10/27/2020 VE USD Petroleos de Venezuela 12.75 45.278 2/17/2022 VE USD Petroleos de Venezuela 6 30.367 5/16/2024 VE USD Petroleos de Venezuela 6 30.387 11/15/2026 VE USD Petroleos de Venezuela 9 39.316 11/17/2021 VE USD Petroleos de Venezuela 9.75 35.893 5/17/2035 VE USD Petroleos de Venezuela 6 28.346 10/28/2022 VE USD Petroleos de Venezuela 5.5 30.123 4/12/2037 VE USD Petroleos de Venezuela 12.75 45.23 2/17/2022 VE USD Polarcus Ltd 5.6 75 3/30/2022 AE USD Provincia del Chubut 4 10/21/2019 AR USD Siem Offshore Inc 4.04527 69.5 10/30/2020 NO NOK Siem Offshore 3.75176 65.75 12/28/2021 NO NOK STB Finance 2.05771 56.243 KY JPY Sylph Ltd 2.367 64.438 9/25/2036 KY USD US Capital 1.63611 54.774 12/1/2039 KY USD US Capital 1.63611 54.774 12/1/2039 KY USD USJ Acucar 9.875 67 11/9/2019 BR USD USJ Acucar 9.875 67 11/9/2019 BR USD Venezuela 13.625 68.25 8/15/2018 VE USD Venezuela 7.75 44.065 10/13/2019 VE USD Venezuela 11.95 40.785 8/5/2031 VE USD Venezuela 12.75 45.19 8/23/2022 VE USD Venezuela 9.25 39.645 9/15/2027 VE USD Venezuela 11.75 40.005 10/21/2026 VE USD Venezuela 9 36.285 5/7/2023 VE USD Venezuela 9.375 37.69 1/13/2034 VE USD Venezuela 13.625 72.25 8/15/2018 VE USD Venezuela 7 34.23 3/31/2038 VE USD Venezuela 7 59.19 12/1/2018 VE USD *********** 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 * * *