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/raid1/www/Hosts/bankrupt/TCRLA_Public/180808.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 Wednesday, August 8, 2018, Vol. 19, No. 156 Headlines B R A Z I L BRAZIL: 1,400% Stock Jump Shows Merger Winds are Blowing in ODEBRECHT SA: Open to Foreign Partner for Construction Unit C O L O M B I A COLOMBIA: IDB OKs $600MM Loan for Bogota's Transportation System D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: BCIE Earmarks US$500MM for Local Public Works DOMINICAN REPUBLIC: Citizens Call for Fuel Price Reductions J A M A I C A DIGICEL GROUP: To Increase Prices for Products and Services JAMAICA: Utility Companies Continue to Lose Millions to Theft M E X I C O MEXICO: IDB OKs US$108.6MM Loan for Geothermal Energy Generation P U E R T O R I C O PR GOLD BOND: Unsecured Priority Claims to be Paid in Full at 4% V I R G I N I S L A N D S ICW GLOBAL: Goes Into Voluntary Liquidation - - - - - =========== B R A Z I L =========== BRAZIL: 1,400% Stock Jump Shows Merger Winds are Blowing in ------------------------------------------------------------- Fabiola Moura and Vinicius Andrade at Bloomberg News report that speculation about consolidation is a staple in Brazil's highly competitive, fast-growing telecom sector. Now, conditions may be ripe for action, according to Bloomberg News. NII Holdings Inc. has skyrocketed this year in New York trading, signaling that investors are stepping up their M&A bets as two favorite targets finish actions that could pave the way for deals. Nextel Telecomunicacoes Ltda., NII's Brazilian unit, concluded a debt restructuring and is in better shape to be acquired as the country slowly exits a long recession, Bloomberg News notes. The same can be said for Oi SA, the country's largest fixed-phone operator, which is wrapping up the largest debt restructuring in Brazil's history, Bloomberg News says. NII's stock surged 1,387 percent year-to-date through Aug. 3, the second-best performance in the Russell 2000 index, Bloomberg News relays. The company hired Rothschild & Co. to organize the sale of its 70 percent stake in Nextel Telecomunicacoes, Reuters reported on June 28, citing people with knowledge of the matter, Bloomberg News says. Investors will likely look to Aug. 7's second-quarter report and conference call for an update on the sale process, the report adds. The company in its first quarter saw total subscribers grow for the first time in more than two years. Recent changes in leadership at Tim Participacoes SA, the Brazilian arm of Telecom Italia SPA, also seem to suggest consolidation could be on the horizon, Bloomberg News discloses. Sami Foguel, the new chief executive officer, has little experience in the telecom sector, but plenty in dealmaking, Bloomberg News notes. "Nextel Brazil would be an attractive acquisition target not only for Tim Brazil, but also for Telefonica Brazil or America Movil," said Kevin Roe, an analyst with Roe Equity Research LLC, Bloomberg News relays. "Nextel Brazil's unique and valuable spectrum is the primary interest for any buyer, but there are also mobile network consolidation synergies to be captured. AT&T may also have an interest given they already have a material Brazil presence in satellite TV service." As reported in the Troubled Company Reporter-Latin America on Aug. 3, 2018, Fitch Ratings affirmed Brazil's Long-Term Foreign- Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. "Brazil's ratings are constrained by the structural weaknesses in its public finances and high government indebtedness, weak growth prospects, a challenging political environment and corruption- related issues that have weighed on effective economic policy making and hampered the progress on reforms. The ratings are supported by Brazil's economic diversity and entrenched civil institutions, with its per capita income higher than the 'BB' median. The country's capacity to absorb external shocks is underpinned by its flexible exchange rate, low external imbalances, robust international reserves position, a strong net sovereign external creditor position, deep and developed domestic government debt markets, and a low share of foreign currency debt in total government debt," Fitch said. ODEBRECHT SA: Open to Foreign Partner for Construction Unit ----------------------------------------------------------- Aluisio Alves at Reuters reports that the construction unit of Brazilian conglomerate Odebrecht SA is seeking to win $18 billion in engineering contracts in the next two years and could partner with a strategic foreign investor, said the unit's chief executive, Fabio Januario. Mr. Januario said a foreign partner could help to reduce dependence on Brazil's oil and gas sector, whose fortunes have swung sharply over the past decade with the price of crude oil, according to Reuters. "We are open to partners but it has to be someone who gives us that," Mr. Januario said during an interview. The engineering group reached an accord with lenders for loans worth BRL2.6 billion ($699 million) about three months ago, giving the Brazilian conglomerate at the center of a corruption scandal two years to maneuver after flirting with the risk of default, the report notes. Januario expects Brazil's construction sector to rebound after a presidential election in October. The backlog for Odebrecht Engenharia & Construcao SA has shrunk to $14 billion, down 50 percent since the end of 2014, says the report. Reuters says after signing a new leniency deal with Brazilian authorities in July, Odebrecht is seeking agreements in other countries in which it operates as a way to resume operations outside Brazil. Odebrecht already has signed deals with Ecuador, Panama, Guatemala, the Dominican Republic and the United States. In Peru, Januario said the company expects to reach a deal in up to 45 days, Reuters adds. About Odebrecht SA Construtora Norberto Odebrecht SA is a Latin American engineering and construction company fully owned by the Odebrecht Group, one of the 10 largest Brazilian private groups. Construtora Norberto is the world's largest builder of hydroelectric plants, of sanitary and storm sewers, water treatment and desalination plants, transmission lines and aqueducts. The Group's main businesses are heavy engineering and construction based in Rio de Janeiro, Brazil, and Braskem S.A., its chemicals/petrochemicals company, based in Sao Paulo, Brazil. As of May 5, 2009, the company continues to carry Standard and Poor's BB Issuer Credit ratings, and Fitch Rating's BB+ Issuer Default ratings and BB+ Senior Unsecured Debt ratings. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 2, 2016, The Wall Street Journal related that Marcelo Odebrecht, the jailed former head of Brazilian construction giant Odebrecht SA, agreed to sign a plea-bargain agreement in connection with Brazil's largest corruption probe ever, according to a person close to the negotiations. The move could roil the nation's political class yet again. The testimony of the former industrialist, which is part of the deal, has the potential to implicate numerous politicians who allegedly took kickbacks from contractors as part of a years-long graft ring centered on Brazil's state-run oil company, Petroleo Brasileiro SA, known as Petrobras, according to The Wall Street Journal. =============== C O L O M B I A =============== COLOMBIA: IDB OKs $600MM Loan for Bogota's Transportation System ---------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a $600 million conditional credit line for investment projects that includes a $70 million loan to build Bogota's First Metro Liner (PLMB, after its Spanish initials). Bogota's demographic and urban growth over the past 20 years has turned it into Latin America's No. 4 city in terms of economic dynamism. This growth produced an 81% rise in the use of private cars and 308% in that of motorcycles between 2007-2016. This situation affected mobility conditions in general and public transportation in particular, causing road saturation and increasing travel time for users. Rapid urbanization has also affected mobility, in particular for public transport users, whose travel speed plunged from 19.2 km/h to 16.6 km/h between 2010- 2015. This mass transportation time increase translates into a productivity loss of 172,000 hours/day for the city. This situation has led city authorities to develop a "Better Mobility for All" program that includes the public transportation system and PLMB. PLMB will be 23.96 km long and run totally on an elevated platform. The project was chosen after comparing eight different proposals, all of which included 31 indicators -- environmental, urban, building, social, financial, risk, etc.). The conclusion was that the elevated Metro can help save up to $61 million in investments per km and its operation will cost 28% less than an underground system. Additionally, it can be finished in a shorter period of time and construction risks are smaller than with the underground option. Another key consideration was that PLMB be not just a transportation project but also a major urban renovation initiative, one that would be integrated with and at the same time invigorate the city public transport systems, in particular Transmilenio. PLMB will implement technological innovations such as Building Information Modeling (BIM) to keep track of construction, as well as automatic driving trains. It will also take steps to discourage sexual violence, including security cameras with state-of-the-art technology and improve illumination and signaling both at stations and surrounding areas. The project will also include ramps for easy access to persons with disabilities. The Metro liner will cover the area with the biggest demand for transportation in town -- Caracas Avenue between 1 and 72 streets. The project will serve some 990,000 passengers a day. PLMB and the Transmilenio expansion will result in a more efficient system due to their physical and billing integration. Once the totality of the city's mass transportation network is integrated, nearly 80% of Bogota residents will have a Metro stop within under 1 km from their location, which is expected to help reduce the use of private means of transportation. This project aims to contribute to Bogota's economic growth and improve citizens mobility and quality of life. In addition, the electric Metro will help reduce CO2 emissions in the capital district by 36,000 tons -- a major contribution to the fight against greenhouse gases. The first loan of the IDB's conditional credit line, of $70 million, is for a 20-year term, with a 5.5-year disbursement period, a 5.5-year grace period and a LIBOR-based interest rate. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: BCIE Earmarks US$500MM for Local Public Works ----------------------------------------------------------------- Dominican Today reports that the Central American Economic Integration Bank (BCIE) has a loan portfolio of more than US$500.0 million to support the Government's planned public works. BCIE Executive Vice-President Alejandro Rodriguez Zamora made the announcement after the opening of the III Regional Seminar "Risk Management for the Public Sector: Challenges and Opportunities for Debt Management in a Global Volatile Environment," according to Dominican Today. The executive said the current portfolio in the country is US$210.0 million and that they work closely with the Dominican authorities to identify relevant projects, programs and operations and consistent with the BCIE strategy, the report notes. "Our strategy has three axes: social development, competitiveness and regional integration with a transversal axis that is environmental sustainability," the report quoted Mr. Rodriguez as saying. Mr. Rodriguez added that they support the Government in some public investment projects; citing the US$250.0 million loan for stage three of the construction of the Monte Grande dam (southwest) as the most recent, noting that the funds have yet to be disbursed, the report adds. As reported in the Troubled Company Reporter-Latin America on July 19, 2018, Fitch Ratings assigned a 'BB-' rating to Dominican Republic's USD1.3 billion bonds, maturing July 2028. The notes have a coupon of 6%. Proceeds from the issuance will be used for general purposes of the government, including the partial financing of the 2018 budget. DOMINICAN REPUBLIC: Citizens Call for Fuel Price Reductions ----------------------------------------------------------- Dominican Today reports that a citizen group has filed a request addressed to the Minister of Industry and Commerce, Nelson Toca, asking him to fulfill Law 112-00 by adjusting taxes and lowering the price of fuels. The signatories state that this ministry has not adjusted taxes as established by this law, leading to excessive charges, which illegally raises fuel prices, according to Dominican Today. The group, headed by Victor Garrido and Claudio Caamano, point out that article 2 of Law 112-00 stipulates that taxes on fuel should be adjusted according to the Consumer Price Index published by the Central Bank, in which, according to documentation attached to their petition, has varied by 301% between November 2000 and June 2018, the report relays. In their statement, they accuse the Ministry of Industry and Commerce of charging an excess of 3.59 pesos on regular gasoline, DOP9.23 on optimum gasoil and 7.98 on regular, along with other fuels, the report discloses. They also showed that last year, using fuel consumption data published by the ministry, the Dominican public was overcharged by almost DOP3 million, the report relays. They state that they are giving Minister Nelson Toca an opportunity to rectify this error by lowering the prices that Dominicans pay for fuels, otherwise they will take the matter to the courts to halt this blatant violation of the law, the report adds. As reported in the Troubled Company Reporter-Latin America on July 19, 2018, Fitch Ratings assigned a 'BB-' rating to Dominican Republic's USD1.3 billion bonds, maturing July 2028. The notes have a coupon of 6%. Proceeds from the issuance will be used for general purposes of the government, including the partial financing of the 2018 budget. ============= J A M A I C A ============= DIGICEL GROUP: To Increase Prices for Products and Services ----------------------------------------------------------- RJR News reports that Digicel Group will be increasing the prices for some of its prepaid and postpaid mobile products as well as services. Price increases for prepaid mobile products and services including SMS messages will take effect today, Aug. 8, according to RJR News. However, price increases for select post paid plans and Postpaid SMS messages will take effect on September 1, the report notes. Digicel Group said the increase will not affect its Freedom Postpaid Plans, the report relays. In a public advisory, Digicel Group said the price increase is in response to the ongoing devaluation of the Jamaican dollar against the U.S. currency, the report relays. Digicel Group said the adjustments will also enable it to continue to invest in superfast LTE and other ground-breaking technologies to deliver better coverage across the island within the shortest time possible, the report notes. Meanwhile, Digicel Group will be increasing the data allowances to some prepaid mobile products and services, the report discloses. This also takes effect Aug. 8, the report notes. Digicel Group said it will be increasing the data allowances by 10-per cent on all affected data plans, the report adds. As reported in the Troubled Company Reporter-Latin America on July 5, 2018, Moody's Investors Service has changed to negative from stable the outlook on the ratings of Digicel Group Limited ("Digicel", "DGL" or the "company") and Digicel Limited ("DL") and assigned a negative outlook to Digicel International Finance Limited ("DIFL"). At the same time, Moody's has affirmed DGL's B2 corporate family rating (CFR) and B2-PD probability of default rating (PDR), as well as the B1 rating on the unsecured notes of DL and the Ba2 rating on the secured bank credit facilities of DIFL. JAMAICA: Utility Companies Continue to Lose Millions to Theft ------------------------------------------------------------- RJR News reports that the Jamaica's utility companies said they continue to lose millions of dollars due to theft of service as well as equipment and describe it as a significant problem that is affecting not only their bottom line but their customers. The problem was disclosed at a webinar hosted by the Office of Utilities Regulation (OUR), according to RJR News. Director of Losses Operations & Analytics at the Jamaica Public Service Company (JPS), Rasheed Anderson, said the company estimates that 200,000 households and commercial entities are stealing electricity, the report notes. There are 600,000 legitimate customers, the report relays. The report says that Mr. Anderson disclosed that in 2017, the JPS paid US$70.8 million for fuel that was not recovered. The figure so far this year is US$ 32.2 million, the report notes. Meanwhile, the National Water Commission (NWC) estimates that between 12 per cent and 30 per cent of its supplies are stolen, the report says. Corporate Communications Manager at the NWC, Charles Buchanan, says between 250,000 to 300,000 connections are involved in the theft of water, the report discloses. And telecommunications companies Digicel and FLOW reported that they are also being significantly affected by theft and vandalism. This includes theft of cables, generators, batteries and fuel, the report says. Director of Corporate Communications and Stakeholder Management at FLOW, Kayon Mitchell, says so far this year, fifty-one communities have been affected by theft and vandalism, costing the company US$1.9 million to restore services, the report notes. Digicel Group, which is experiencing similar issues of theft and vandalism, says expensive equipment including batteries placed at cell sites, are being stolen and sold for scrap metal, the report says. Group Head of Field Operations Management at Digicel, Anthony Barrows, pointed out that batteries which cost the companies $80,000 each, are being sold for scrap metal for less than $2,000, adds the report. As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2018, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B' and has revised the Rating Outlook to Positive from Stable. =========== M E X I C O =========== MEXICO: IDB OKs US$108.6MM Loan for Geothermal Energy Generation ---------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a modification of a loan totaling US$108.6 million that aims to increase private investment in electricity generation projects from geothermal sources, putting at the developers' disposal a number of financial mechanisms tailored to meet the specific needs of each project at every step of their development. This includes the following phases: exploration, drilling, field preparation, construction and operation of private geothermal projects, as well as reducing the value at risk for developers, which is the main barrier to investment. The program's goal is to finance up to 300 MW of geothermal capacity over a 10-year period. It also hopes to leverage other public and private funds to contribute to Mexico's geothermal sector with estimated investment levels to the tune of US$4.2 billion for proven geothermal reserves. The Program for Financing and Risk Transfer for Geothermal Energy in Mexico, structured under the global loan modality, will consist of two main components: risk mitigation for geothermal projects and financing adapted to the different phases of project exploration and execution. In addition, it will have a third component of technical assistance to support execution and other implementation costs. Mexico is the main emitter of greenhouse gases from fuel burning in Latin America and No. 12 in the world. Its ambitious goals include reducing these emissions by 25% by 2030, with the energy sector having the biggest reduction potential. Moreover, 80% of Mexico's energy continues to be derived from fossil fuels, making it even more imperative to transform the country's energy generation system to make it more sustainable and profitable. "Geothermal power is baseload energy, with a capacity factor of 95%-plus, allowing to have electricity available 24-7 at a competitive price, much like natural gas. Like solar and wind energy, it is renewable, but without their characteristic intermittency. It is fully climate-change resilient and has an enormous energy density, which paves the way for getting large amounts of energy in a relatively small area," says Christiaan Gischler, project leader and IDB's geothermal theme team leader. Its direct use has high-impact applications and social advantages. "Low enthalpy (low temperature) applications are crucial for the fruit drying industry, and the use of steam is critical for small- and mid-sized enterprises," he adds. Geothermal energy helps create new jobs and take advantage of economies of scale, combining the knowledge of Mexico's existent extractive industries to perform the perforation work needed during the exploration phase. The program's total amount is US$108.6 million: US$54.3 million financed with resources from the IDB's Ordinary Capital, US$51.5 million from a contingent recovery grant financed with resources from the Clean Technology Fund (CTF); and US$2.8 million in technical cooperation. There are currently two processes under way: first an International Public Tender to pick the companies that will be in charge of performing the drilling work during the exploration phase; and second, a Call for the Selection of the Eligible Developers who will participate in this program. ====================== P U E R T O R I C O ====================== PR GOLD BOND: Unsecured Priority Claims to be Paid in Full at 4% ---------------------------------------------------------------- PR Gold Bond Administration Services Inc. filed an amended disclosure statement in connection with its plan of reorganization. Class 3 unsecured priority claims will be paid in full with an interest of 4% rate, to the extent that such claims are allowed and ordered paid by the Court, by debtor over a period ending no later than five years after the date of the order of relief. Debtor's estate, consisting of the real estate property, personal properties, a checking account, office equipment and inventory, and, being able to continue operations and generating income, will allow for the payment of the secured and priority creditors allowed, with a dividend available to unsecured creditors (Class 4). The Troubled Company Reporter previously reported that general unsecured creditors have been claimed in the amount of $1,033,314.70. The Debtor's Schedule F listed the amount of $123,000 as unsecured debts. The Debtor proposes to pay general unsecured creditors 5% of the unsecured portion, on monthly installments, within a period not to exceed 60 months. A full-text copy of the Amended Disclosure Statement is available at: http://bankrupt.com/misc/prb17-06052-11-67.pdf About PR Gold Bond Administration Services Based in Bayamon, Puerto Rico, PR Gold Bond Administration Services Inc. filed a Chapter 11 petition (Bankr. D.P.R. Case No. 17-06052) on August 28, 2017. Luis D. Flores Gonzalez, Esq. at Luis D. Flores Gonzalez Law Office represents the Debtor as legal counsel. At the time of filing, the Debtor estimated less than $50,000 in assets and $100,001 to $500,000 in liabilities. =========================== V I R G I N I S L A N D S =========================== ICW GLOBAL: Goes Into Voluntary Liquidation ------------------------------------------- In accordance with Section 204 (1) (b) of the BVI Business Companies Act 2004, ICW Global Ltd incorporated on the territory of the British Virgin Islands is undergoing the process of voluntary liquidation. The voluntary liquidation started on July 10, 2018. The liquidator can be reached at: Emil Tsunizhov Nicosia, 23 Mesaloggio Cyprus, 2007 *********** 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 * * *