/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/181109.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, November 9, 2018, Vol. 19, No. 223 Headlines A R G E N T I N A ARGENTINA: Fitch Affirms B LT FC IDR; Alters Outlook to Neg. B E R M U D A KOSMOS ENERGY: S&P Hikes Issuer Credit Rating to B+, Off Watch Pos B R A Z I L AGENCIA BRASILEIRA: Moody's Assigns B1 IFS Rating, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: ANEIH Pres. Express Concern About US$1BB Debt DOMINICAN REPUBLIC: Jarabacoa Thrives but Aqueduct Shows its Age DOMINICAN REPUBLIC: Medina Returns After 'Fruitful' Visit to China J A M A I C A JAMAICA: BOJ Remains Committed to Keeping Inflation Within 4-6% P U E R T O R I C O BARRANQUITAS ULTRASOUND: Confirmation Hearing Set for Dec. 5 INSTITUCION AMOR: Plan Outline Okayed, Plan Hearing on Nov. 28 MONITRONICS INTERNATIONAL: Has Exchange Offer for 9.125% Sr. Notes MONITRONICS INTERNATIONAL: Suits Filed Over Planned Exchange Offer NUTRITION CARE: Plan Outline Okayed, Plan Hearing on Nov. 29 SEARS HOLDINGS: Chapter 11 Filing Stays Essie Johnson Suit V E N E Z U E L A VENEZUELA: Inflation Rate Just Hit 830,000% - - - - - ================= A R G E N T I N A ================= ARGENTINA: Fitch Affirms B LT FC IDR; Alters Outlook to Neg. ------------------------------------------------------------ Fitch Ratings has affirmed Argentina's Long-Term Foreign-Currency Issuer Default Rating at 'B' and revised the Rating Outlook to Negative from Stable. KEY RATING DRIVERS The revision of Argentina's Outlook to Negative from Stable reflects sharply weaker economic activity and uncertain prospects for multi-year fiscal consolidation and market financing availability as IMF funds are used up, posing risks to sovereign debt sustainability. Fitch assumes that in 2019 the government will achieve the fiscal adjustment targeted in the budget and that the recently renegotiated IMF program will help it fully cover its financing needs, but sees downside risks amid a nascent economic recession and election cycle. After 2019, prospects for further fiscal consolidation, economic recovery and restoration of external market access are uncertain and are likely to be sensitive to the election outcome. Intense macroeconomic instability in 2018, marked by a major depreciation in the peso, have dramatically weakened Argentina's near-term growth prospects. Fitch projects real GDP will contract 2.7% in 2018 and 1.7% in 2019, driven by a collapse in confidence and erosion of real incomes as inflation has shot upward. The authorities are pursuing a more aggressive tightening of fiscal and monetary policy as part of a re-negotiated program with the IMF, which will weigh further on growth, although it could also provide some support to the extent that it helps stabilize expectations. Prospects for economic recovery in the medium term are unclear. Private investment is likely to remain in a cautious mode amid macroeconomic and political uncertainty. Difficult macroeconomic adjustments have involved setbacks to the microeconomic agenda, such as budgeted tax hikes that reverse a prior push toward reducing high tax pressures, and may divert political capital from other reform priorities (e.g. labor reform). Fitch projects inflation will rise to 47% in 2018 from 25% in 2017 on pass-through from peso depreciation and moderate to 27.5% in 2019 on weak domestic demand and greater peso stability. A faster decline is likely to be hindered by inertial pressures from wage negotiations in 2019 and re-opening of 2018 agreements before then, which are likely to confer large nominal hikes to compensate for real wage losses this year. Against this difficult backdrop, the government appears to be on track to meet its more ambitious fiscal consolidation targets - the key criterion in the new IMF program. Fitch expects the authorities will meet (and likely outperform) their target to reduce the primary deficit to 2.7% of GDP in 2018, from 3.8% in 2017, and secure approval of a proposed 2019 budget that targets an ambitious reduction to 0% via tax hikes (namely new export duties) and spending cuts. Its ability to advance an austere budget for an election year without a congressional majority appears to be an encouraging sign that the opposition has incentives to support rather than obstruct fiscal adjustment at this juncture. Fitch expects these targets to be met, lowering the overall deficit to 5.5% of GDP in 2018 and 3.7% in 2019. However, fiscal risks are tilted to the downside. Social security already represents most of primary spending and could continue growing in real terms given indexation to higher past inflation. The authorities expect revenues (net of export duties) to be resilient to the recession, but this could pose a greater downside risk following real declines in tax collections and social security contributions in recent months. The fiscal outlook after 2019 is more uncertain given elections. The implementation of a major reduction in discretionary spending will leave narrower room for further cuts, and political will to take up a reform of social security - the major source of budget pressure - is not yet clear. Fitch estimates that sovereign financing needs of USD39 billion in 2019 will be covered by USD23 billion in scheduled IMF disbursements, loans from other IFIs, and rollover of intra-public sector borrowings. This availability of funds and some over- financing in 2018 should allow the sovereign to avoid seeking new external market financing and only partially roll over short-term Letes. External market access will become important again starting in 2020 as scheduled IMF disbursements wind down and a year later as repayments come due, but market sentiment is likely to be sensitive to an uncertain economic and political outlook. Fitch projects central government debt will jump to 93% of GDP in 2018 from 57% in 2017 due to peso depreciation, and decline to 89% in 2019. This projected decline primarily reflects the transitory effect of a high GDP deflator relative to peso depreciation, underscoring risks to debt sustainability given uncertainty in these variables, contracting real GDP, high real interest rates on new debt, and persistent albeit lower fiscal deficits. Argentina's net borrowing has also widely exceeded reported deficits in recent years, reflecting additional below-the-line borrowing needs that may challenge debt reduction. General government debt (consolidating central and provincial debt with social security holdings) estimated to reach 92% of GDP in 2018 is well above the current 'B' median of 58%, even net of around 24pp held by the central bank. The central bank's (BCRA) new monetary strategy, in place as of October, targets money supply growth instead of inflation and centers exchange rate policy around a crawling "non-intervention" band. Stability in the exchange rate will rely fundamentally on the BCRA's influence over market forces, via the interest rates it validates to control peso supply, rather than on FX intervention, for which its ammunition is very limited. Reserves stood at USD54 billion as of end-October but have been propped up by multilateral loans, while "own" reserves net of such FX liabilities have fallen to just USD15 billion from USD30 billion at end-2017 owing to FX intervention throughout the year. The new monetary strategy has involved a hike in interest rates to around 6% in monthly terms. These rates amount to around 70% in annual terms (over 100% compounded), posing risks to the real economy and BCRA balance sheet if sustained for long. The new regime has succeeded in supporting a recovery in the peso so far, but the key test will come as the BCRA seeks to lower rates without stoking FX pressures. Its adoption of the Leliq as its main sterilisation instrument could help smooth this process, as these can only be held by banks regulated by the BCRA, unlike the prior Lebac which was used by diverse actors in carry trade activity. Fitch projects that the current account deficit will fall to 4.5% of GDP in 2018 from 6.5% in the four quarters through 2018Q2, and to 2.1% in 2019, on the weaker peso, contraction in domestic demand and a much better agricultural harvest. However, external adjustment could remain sensitive to the value of the peso. As of end-October, the peso was 10% below its 20-year average in real, trade weighted terms, having already recovered from a low of 25% a month earlier. Argentina's 'B' rating reflects high inflation and economic volatility that have persisted despite efforts to tighten policies in recent years, a weak external liquidity position, and a heavy and highly dollarized sovereign debt burden. These weaknesses are balanced by high per-capita income, a large and diversified economy, and improved governance scores, although these structural strengths have provided a limited support to the sovereign's credit profile as demonstrated by its weak debt repayment record. SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO) Fitch's proprietary SRM assigns Argentina a score equivalent to a rating of 'B' on the Long-Term Foreign-Currency (LT FC) IDR scale. Fitch's sovereign rating committee did not adjust the output from the SRM to arrive at the final LT FC IDR. Large revisions to macroeconomic input variables - including real GDP growth, inflation, per-capita income and debt-to-GDP (largely capturing peso depreciation) - have resulted in a lower SRM score, and thus making it better reflective of the high macroeconomic volatility that Fitch had previously incorporated via a downward notch in the QO. As such, this downward notching has been removed. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within its criteria that are not fully quantifiable and/or not fully reflected in the SRM. RATING SENSITIVITIES The main risk factors that, individually or collectively, could trigger a downgrade are: -- Policy and political developments and/or economic weakness that heighten risks to debt sustainability or jeopardise access to IMF funding; -- Further bouts of macroeconomic instability and/or erosion of international reserves. -- Failure to recover access to external market financing; The Rating Outlook is Negative. Consequently, Fitch does not currently anticipate developments with a high likelihood of leading to a positive rating change. However, the main factors that, individually or collectively, could lead to a stabilization of the Outlook are: -- Compliance with near-term fiscal targets, greater confidence that fiscal consolidation can be sustained and external market financing access re-established beyond 2019; -- Evidence of recovery in economic activity, avoidance of renewed macroeconomic instability; -- A sustained strengthening of the external liquidity position. KEY ASSUMPTIONS -- Fitch expects growth in key trading partner Brazil to accelerate to 2.2% in 2019 from 1.3% in 2018. Fitch has affirmed Argentina's ratings as follows: -- Long-Term Foreign-Currency IDR at 'B; Outlook Negative; -- Long-Term Local-Currency IDR at 'B; Outlook Negative; -- Short-Term Foreign-Currency IDR at 'B'; -- Short-Term Local-Currency IDR at 'B'; -- Country Ceiling at 'B'; -- Issue ratings on long-term senior unsecured foreign-currency bonds at 'B'. ============= B E R M U D A ============= KOSMOS ENERGY: S&P Hikes Issuer Credit Rating to B+, Off Watch Pos ------------------------------------------------------------------ S&P Global Ratings raised its issuer credit rating on Kosmos Energy Ltd. to 'B+' from 'B' and removed all its ratings on the company from CreditWatch with positive implications, where S&P placed them on Aug. 7, 2018, following Kosmos' announcement that it entered into a definitive agreement to acquire Deep Gulf Energy. The outlook is stable. S&P said, "At the same time, we raised our issue-level rating on Kosmos' senior secured notes to 'BB-' from 'B-'. We assigned our '2' recovery rating to this debt, reflecting our expectation of substantial (70%-90%; rounded estimate: 85%) recovery to creditors in the event of a payment default. "The upgrade reflects our view that the Deep Gulf Energy acquisition strengthens Kosmos' business risk profile by enhancing its scale of reserves and production. It also lowers political risk due to geographical diversification in the U.S. The company's other main producing assets are in offshore Ghana and Equatorial Guinea; Kosmos also has a large project in partnership with BP PLC nearing final investment decision (FID) in offshore Mauritania and Senegal. Despite the large cash component of the acquisition funding, we expect the combined company's debt metrics to remain adequate. Pro forma for the acquisition, we forecast positive free cash flow over the next couple of years, with moderate debt to EBITDA of less than 2x. "Our stable outlook on Kosmos reflects our view that the company will successfully integrate the assets acquired from DGE, increasing its scale, scope, and diversification, while maintaining debt to EBITDA of 1.5x-2x over the next two years. "We could lower the rating if we expected debt to EBITDA to remain above 3x for a sustained period. This would most likely occur if production fell below our estimates, or if capital spending was significantly above our assumptions without a corresponding increase in production." An upgrade would be possible if the company further decreased its exposure to high political risk countries, and increased scale, scope, and diversification more consistent with 'BB-' rated peers, while maintaining debt to EBITDA below 2x and adequate liquidity. =========== B R A Z I L =========== AGENCIA BRASILEIRA: Moody's Assigns B1 IFS Rating, Outlook Stable ----------------------------------------------------------------- Moody's Investors Service has assigned a B1 insurance financial strength (IFS) rating to Agencia Brasileira Gestora de Fundos Garantidores e Garantias S.A. and a Baa1.br IFS rating on Brazil's national scale. The outlook for the ratings is stable. In the same rating action, Moody's assigned a Ba3 IFS rating to Fundo Garantidor de Infraestrutura and an A1.br IFS rating on Brazil's NS. The outlook for the ratings is stable. RATINGS RATIONALE Moody's said that ABGF's B1 IFS rating considers Moody's joint default analysis for the company as a government-related issuer and therefore, it incorporates its assumptions for moderate support and very high dependence levels from the government of Brazil (Ba2 stable). The integration and support are illustrated by ABGF's status as a major holding company with subsidiaries that provide guarantees for risks in lending operations that support a variety of sectors and activities that are of the interest to the national government, including Brazilian exports, financing of infrastructure projects and housing. ABGF's baseline credit assessment (BCA) of b2 reflects the company's credit profile on a stand-alone basis, which considers the company's lack of operational history in providing financial guarantees at the entity level, as well as uncertainty regarding its business plan for future operations. The rating agency went on to say that ABGF's investment portfolio is mostly comprised of illiquid assets, which creates much uncertainty in the event that the company begins issuing guarantees. ABGF's Baa1.br NS IFS rating is based on the application of Moody's mapping criteria for a B1 rating to the Brazilian national scale. ABGF's Baa1.br rating is positioned at the top of the range of possible outcomes on the Brazilian national scale for B1 rating, indicating its stronger creditworthiness relative to other B1-rated issuers in Brazil. According to Moody's, FGIE's Ba3 IFS rating primarily reflects the fund's low expected operating leverage, adequate capitalization and strong profitability levels. The rating is also based on the fund's investment portfolio, mostly composed of Brazilian government bonds, which provides an important source of liquidity. Additional rating considerations include the fund's limited financial and operational history, as well as its evolving business strategy and Brazil's moderate operating risk level. Expanding on the rating rational, Moody's considers that, because FGIE will provide guarantees to infrastructure projects, the fund's product profile will be exposed to low granular risks and high-severity losses, which constrains FGIE's overall credit profile. FGIE's A1.br NS IFS rating is based on the application of Moody's mapping criteria for a Ba3 rating to the Brazilian national scale. FGIE's A1.br rating is positioned at the top of the range of possible outcomes on the Brazilian national scale for Ba3 rating, indicating its stronger creditworthiness relative to other Ba3-rated issuers in Brazil. Commenting on factors that could result in an upgrade for ABGF's ratings, Moody's cited the following: 1) an upgrade of Brazil's sovereign rating; 2) improved asset quality with a substantial increase of fixed income assets in the company's investment portfolio; 3) a consistent business plan to develop financial guarantee products at ABGF level with clear objectives, including (but not limited to) future business strategy, product risk profile, and expected operating leverage; and/or 4) increased implicit or explicit parental support. Conversely, among the factors that could lead to a downgrade of the company's ratings are the following: 1) downgrade of Brazil's government bond rating; 2) deterioration in the country's insurance operating environment; and/or 3) decline in support from the Brazilian government to ABGF. Moody's mentioned that FGIE's rating could be upgraded in case of an upgrade of Brazil's sovereign rating, a multi-notch upgrade of ABGF, or a significant business expansion while maintaining strong profitability and capitalization metrics. Conversely, among the factors that could lead to a downgrade of the fund's ratings are the following: 1) downgrade of Brazil's government bond rating; 2) deterioration in the country's insurance operating environment; 3) deterioration in fund's profitability; and/or 4) deterioration in fund's capital adequacy, with a leverage higher than 5x shareholders' equity. Headquartered in Brasilia, Brazil, ABGF is a state-owned financial institution that was established in 2012, and through the funds it manages and holds, provides guarantees for risks in lending operations in areas that are perceived to have economic and social importance. The entity supports a variety of sectors and activities, including Brazilian exports, financing of infrastructure projects and housing. As of December 31 2017, its total assets amounted to BRL2,821 million ($852 million) and shareholders' equity totaled BRL 2,569 million ($776 million). The entity recorded a net income of BRL46 million ($14 million) in 2017. Based in Brasilia, Brazil, FGIE is a wholly-owned subsidiary of ABGF and was established in November 2014 with the objective to guarantee, directly or indirectly, credit risk, performance risk, obligation risk, and engineering risk coverages in operations that involve infrastructure projects. As of December 31, 2017, its total assets amounted to BRL569 million ($171.9 million) and shareholders' equity was BRL568.6 million ($171.8 million). The company recorded a net income of BRL60 million ($18.2 million) in 2017. The principal methodologies used in rating Agencia Brasileira Gestora de Fundos Garantidores e Garantias S.A. were Government- Related Issuers published in June 2018, and Financial Guarantors published in May 2018. The principal methodology used in rating Fundo Garantidor de Infraestrutura was Financial Guarantors published in May 2018. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: ANEIH Pres. Express Concern About US$1BB Debt ----------------------------------------------------------------- Dominican Today reports that Herrera Industries Association (ANEIH) president Antonio Taveras Guzman said the announcement of new loans to finance Dominican Republic's electricity sector should not be seen as a success but as the continuity of a debt policy that compromises the present and future of all Dominicans without solving any of the nation's fundamental problems. He said he's concerned with the around US$1.0 billion debt increase "to finance the black hole, the bottomless pit that constitutes the national electricity sector, where there are no credible plans to reduce losses and where efforts to increase generation, in addition to being marked by serious allegations of corruption, aren't related to any long-term vision of the country," according to Dominican Today. "The authorities must explain to the country in detail the intended use of this new debt. Explain, for example, if it's new loans to finish the works of Punta Catalina power plant or if they will serve to restructure the distribution companies, which are affected by poor management, cronyism and losses that exceed 33% of the energy purchased and paid to generators," said the business leader, the report notes. The report relays that Mr. Taveras said there have been other billions in debt hurled into the bottomless pit of the electricity sector in the recent past without solving any problem. "To face and resolve the eternal national electricity crisis, before more debt, a serious and broad political and social commitment is needed, which puts national interests above the particular interests of officials, politicos and business leaders," he added, notes the report . As reported in the Troubled Company Reporter-Latin America on Sept. 24, 2018, Fitch Ratings affirmed Dominican Republic's Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. DOMINICAN REPUBLIC: Jarabacoa Thrives but Aqueduct Shows its Age ---------------------------------------------------------------- Dominican Today reports that despite being surrounded by three rivers, and having in its territory the main tributaries that contribute 70% of the country's water, the thriving highland town lacks an adequate aqueduct that meets its ever-growing needs. Crossed by the Yaque del Norte, Jimenoa and Bayguate rivers, as well as dozens of streams and creeks, Jarabacoa (Land of Many Waters n Taino) has an aqueduct built over 50 years ago, according to Dominican Today. The facility was built for a then population of 10,000, but today exceeds 50,000, according to the last census, the report relays. It's believed that it could reach as much as 75,000, the report notes. The population has demanded the aqueduct for years and has been the government's unfulfilled promise despite figuring in the 2013 Budget, according to mayor Carlos Jose Sanchez Pineda, the report adds. As reported in the Troubled Company Reporter-Latin America on Sept. 24, 2018, Fitch Ratings affirmed Dominican Republic's Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. DOMINICAN REPUBLIC: Medina Returns After 'Fruitful' Visit to China ------------------------------------------------------------------ Dominican Today reports that President Danilo Medina arrived in San Isidro Air Base after his official visit to China where he formalized diplomatic relations between the two nations. President Medina had departed from San Isidro Air Base on a flight to New York, and then board the flight that took him to Beijing, according to Dominican Today. Government officials who accompanied the president labeled Medina's first state visit to China as fruitful and historic for both nations, the report adds. As reported in the Troubled Company Reporter-Latin America on Sept. 24, 2018, Fitch Ratings affirmed Dominican Republic's Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. ============= J A M A I C A ============= JAMAICA: BOJ Remains Committed to Keeping Inflation Within 4-6% --------------------------------------------------------------- On November 5, 2018, the Executive Board of the International Monetary Fund (IMF) completed the fourth review of Jamaica's performance under the program supported by the Stand-By Arrangement (SBA). The 36-month SBA, with a total access of SDR 1,195.3 million (about US$ 1.66 billion), equivalent to 312 percent of Jamaica's quota in the IMF, was approved by the IMF's Executive Board on November 11, 2016. The Jamaican authorities continue to view the SBA as precautionary, an insurance policy against unforeseen economic shocks that could lead to a balance of payments need. Following the Executive Board's discussion, Mr. Tao Zhang Deputy Managing Director and Acting Chair issued the following statement: "The authorities continue their impressive track record under the Stand-By Arrangement. While macroeconomic stability is entrenched, with reduced public debt and improving social and unemployment indicators, growth remains subdued. Against this backdrop, supply- side reforms to facilitate private sector investment are needed to achieve higher, sustained growth and job creation. "The Bank of Jamaica (BOJ) remains committed to maintaining inflation within the 4-6 percent target range over the medium term. The recent tabling in Parliament of legislation to upgrade the BOJ Act is an important step toward the eventual shift toward full-fledged inflation targeting. Maintaining exchange rate flexibility and limiting FX sales during periods of disorderly market conditions is necessary to support an inflation targeting framework. The authorities are also planning to accelerate FX market development and the building of technical capacity in monetary operations. "The public-sector wage bill needs to be placed on a sustained downward path. Reduced wage outlays will allow the government to reprioritize public spending toward security, social assistance, and growth-enhancing capital expenditure. Achieving such a wage bill reduction will require a broad overhaul of the public compensation and allowance system and a reduction in the size of the government workforce. "The financial sector should be further strengthened in line with the recommendations from the accompanying Financial Sector Stability Assessment. Priority should be placed on enhancing coordination, data collection, monitoring, and strengthening technical capacity of the financial regulators. Improving consolidated and risk-based supervision are important reform areas. Addressing impediments that constrain access to finance would help support private-sector investment. As reported in the Troubled Company Reporter-Latin America on Sept. 27, 2018, S&P Global Ratings revised its outlook on Jamaica to positive from stable. At the same time, S&P Global Ratings affirmed its 'B' long- and short-term foreign and local currency sovereign credit ratings, and its 'B+' transfer and convertibility assessment on the country. ====================== P U E R T O R I C O ====================== BARRANQUITAS ULTRASOUND: Confirmation Hearing Set for Dec. 5 ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Puerto Rico will consider approval of the Chapter 11 plan of reorganization for Barranquitas Ultra Sound And Mammography Center Inc. at a hearing on Dec. 5, at 9:00 a.m. The hearing will be held at the Jose V. Toledo U.S. Post Office and Courthouse Building, Courtroom 3. The court will also consider at the hearing the final approval of the company's disclosure statement, which it conditionally approved on Oct. 25. The order required creditors to file their objections and submit ballots of acceptance or rejection of the plan on or before 14 days prior to the hearing. The Debtor's bankruptcy case was filed on April 25, 2018, along with the related case of the Debtor's shareholders and directors, Miriam Alicea and Edwin Cintron, Case No. 18-00222 (MCG). Both cases are currently jointly administered. General unsecured claims total $324,860, consisting of claims filed by various creditors lending institutions. The Debtor has reconciled the proof of claim filed and has estimated general unsecured claims to total $87,412. The Debtor may be a co-debtor for secured claims of the individual debtors, which will receive payment under the individuals' reorganization plans, or as otherwise agreed. Therefore, there will be no payment to unsecured creditors receiving full payment under the individuals' payment plan. Under the Plan, unsecured creditors will receive a 10% dividend payment. A copy of the Disclosure Statement is available at https://tinyurl.com/y7yp3chq from PacerMonitor.com at no charge. About Barranquitas Ultrasound and Mammography Center Inc. Barranquitas Ultrasound and Mammography Center, Inc., filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 18-02225) on April 25, 2018. In the petition signed by its president Miriam Alicea Aponte, the Debtor estimated assets and liabilities of less than $500,000 each. Judge Mildred Caban Flores presides over the case. The Debtor hired Carmen D. Conde Torres, Esq., at C. Conde & Assoc. The Debtor filed a disclosure statement in support of its Chapter 11 plan of reorganization on October 22, 2018. INSTITUCION AMOR: Plan Outline Okayed, Plan Hearing on Nov. 28 -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rico will consider approval of the proposed Chapter 11 plan of reorganization for Institucion Amor Real Corporation at a hearing on Nov. 28, at 9:30 a.m. The hearing will be held at the U.S. Bankruptcy Court, Southwestern Divisional Office, MCS Building. The court will also consider at the hearing the final approval of the company's disclosure statement, which it conditionally approved on Oct. 18. Creditors are required to file their objections and submit ballots of acceptance or rejection of the plan on or before 14 days prior to the hearing. About Institucion Amor Real Corp. Institucion Amor Real Corporation filed a Chapter 11 petition (Bankr. D. P.R. Case No. 18-01737) on March 29, 2018. In the petition signed by Jose A. Santiago, its president, the Debtor estimated at least $50,000 in assets and $100,000 to $500,000 in liabilities. Judge Edward A. Godoy is the case judge. Nydia Gonzalez Ortiz, Esq., at Santiago & Gonzalez, is the Debtor's counsel. MONITRONICS INTERNATIONAL: Has Exchange Offer for 9.125% Sr. Notes ------------------------------------------------------------------ Monitronics International, Inc., has launched an offer to exchange up to $585,000,000 aggregate principal amount of Monitronics' 5.500%/6.500% Senior Secured Second Lien Cashpay/PIK Notes due 2023 to be issued for validly tendered (and not validly withdrawn) Monitronics' 9.125% Senior Notes due 2020 and, in conjunction with the Exchange Offer, a solicitation of consents by Monitronics to certain proposed amendments to the indenture governing the Old Notes. The New Notes will be secured on a second priority basis by liens on all of the outstanding stock of Monitronics and on substantially all of the assets of Monitronics and the guarantors of the New Notes, which have also been pledged on a first priority basis as collateral to secure Monitronics' and such guarantors obligations under Monitronics' existing senior secured credit agreement. Interest payable in cash will accrue at a rate of 5.500% per annum and interest payable by increasing the aggregate principal amount of the outstanding New Notes or by issuing additional New Notes will accrue at a rate of 6.500% per annum. Tenders of Old Notes may be withdrawn and Consents may be revoked prior to 5:00 p.m., New York City time, on Nov. 19, 2018, but not thereafter, subject to limited exceptions, unless such time is extended. The Exchange Offer will expire at 11:59 p.m., New York City time, on Dec. 10, 2018. The Exchange Offer Upon the terms and conditions set forth in the offering memorandum and consent solicitation statement, Monitronics is offering Eligible Holders of Old Notes the opportunity to receive New Notes in exchange for their Old Notes. Participating holders that validly tender (and do not validly withdraw) Old Notes prior to the Early Tender Time will receive $1,000 principal amount of New Notes per $1,000 principal amount of such Old Notes. Participating holders that validly tender (and do not validly withdraw) Old Notes after the Early Tender Time but prior to the Expiration Time will receive $950 principal amount of New Notes per $1,000 principal amount of such Old Notes. The following summarizes the exchange consideration for each $1,000 aggregate principal amount of Old Notes that is validly tendered (and not validly withdrawn) by participating holders. Title of Old Notes to be Tendered: 9.125% Senior Notes due 2020 CUSIP/ISIN Numbers: 609453AG0 / US609453AG02 Early Tender Time: 5:00 p.m., New York City time, Nov. 19, 2018 Outstanding Principal Amount: $585,000,000 Exchange Consideration: $1,000 aggregate principal amount of New Notes Late Exchange Consideration: $950 aggregate principal amount of New Notes The Consent Solicitation In connection with the Exchange Offer, and on the terms and subject to the conditions set forth in the Offering Memorandum, Monitronics is soliciting consents from registered holders of Old Notes to the Proposed Amendments to the Old Notes Indenture, which will become effective upon execution; however, the Proposed Amendments will become operative immediately prior to the acceptance of such Old Notes pursuant to the Exchange Offer on the Settlement Date. Holders who tender their Old Notes into the Exchange Offer will be deemed to have submitted their Consent. The Proposed Amendments would (i) eliminate or waive substantially all of the restrictive covenants and events of default contained in the Old Notes Indenture and the Old Notes, and (ii) modify or eliminate certain other provisions contained in the Old Notes Indenture and the Old Notes, including certain provisions relating to defeasance and to the minimum notice requirements for optional redemption. In addition, any Old Notes that remain outstanding following the consummation of the Exchange Offer will become effectively subordinated to the New Notes to the extent the value of the collateral securing the New Notes, which is comprised of all of outstanding stock and substantially all of the assets of Monitronics and its subsidiaries. General As previously announced, Monitronics and Ascent are party to an Amended and Restated Transaction Support Agreement with, among others, certain holders collectively owning or controlling approximately 65% of the aggregate outstanding principal amount of the Old Notes. Pursuant to the Amended and Restated Support Agreement, the Consenting Noteholders have agreed to tender or cause to be tendered all Old Notes held by such Consenting Noteholders (other than Old Notes in denominations of less than $1,000, if applicable) and take all commercially reasonable actions, and support and cooperate with Monitronics and Ascent to take all commercially reasonable actions, necessary to consummate the Exchange Offer and the Consent Solicitation in accordance with the terms and conditions of the Amended and Restated Support Agreement, including without limitation to vote in favor of, or otherwise support, the transactions contemplated thereunder, including the Exchange Offer and the Consent Solicitation. Consummation of the Exchange Offer is conditioned upon the satisfaction or waiver of the conditions specified in the Offering Memorandum, including, among others, the following: (i) an amendment to Monitronics' Credit Facility, which amendment, among other things, permits issuance of the New Notes, will have become effective on or prior to the Expiration Time, (ii) at least 65% in aggregate principal amount of Old Notes, including by participating holders who are party to the Amended and Restated Support Agreement, shall have been validly tendered (and not validly withdrawn) in the Exchange Offer prior to the Expiration Time and (iii) the Amended and Restated Support Agreement shall not have been terminated (with respect to Monitronics or the Requisite Consenting Noteholders (as defined therein)) pursuant to its terms. These conditions and the other conditions to the Exchange Offer are described more fully in the Offering Memorandum. The Exchange Offer and the Consent Solicitation may be amended, extended, terminated or withdrawn by Monitronics for any reason in its sole discretion. Monitronics will not receive any cash proceeds from the Exchange Offer, the Consent Solicitation or the issuance of the New Notes in connection with the Exchange Offer. The New Notes will be issued pursuant to an indenture, dated as of the Settlement Date, among Monitronics, the guarantors party thereto and Ankura Trust Company, as trustee and collateral agent. The New Notes will be fully and unconditionally guaranteed, jointly and severally, on a senior secured second priority basis by each of Monitronics' restricted subsidiaries, including all of Monitronics' subsidiaries that own any of its material assets. The New Notes have not been and will not be registered under the Securities Act of 1933, as amended or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act or in any other jurisdiction absent registration or an applicable exemption from the registration requirements of the securities laws of such other jurisdiction. D.F. King & Co., Inc. is acting as the Exchange Agent and Information Agent for the Exchange Offer and the Consent Solicitation. Requests for the offering documents from "Eligible Holders" may be directed to D.F. King & Co., Inc. and holders of the Old Notes may complete and submit a letter of eligibility online at www.dfking.com/monitronics or by e-mail to monitronics@dfking.com or by phone at (212) 269-5550 (for brokers and banks) or (877) 674-6273 (for all others). None of Ascent, Monitronics, their subsidiaries or any other person makes a recommendation as to whether holders of the Old Notes should tender their Old Notes pursuant to the Exchange Offer or deliver Consents pursuant to the Consent Solicitation. Each holder must make its own decision as to whether to tender its Old Notes and to deliver Consents, and, if so, the principal amount of the Old Notes as to which action is to be taken. A full-text copy of the press release is available for free at: https://is.gd/tGcvzG About Monitronics Farmers Branch, Texas-based Monitronics International, Inc. -- http://www.mymoni.com/-- provides residential customers and commercial client accounts with monitored home and business security systems, as well as interactive and home automation services. The Company is supported by a network of independent authorized dealers providing products and support to customers in the United States, Canada and Puerto Rico. Its wholly owned subsidiary, LiveWatch is a Do-It-Yourself home security firm, offering professionally monitored security services through a direct-to-consumer sales channel. Monitronics is a wholly-owned subsidiary of Ascent Capital Group, Inc. Monitroics was incorporated in the state of Texas on Aug. 31, 1994. At Dec. 31, 2017, the Company had more than 1,330 full-time employees and over 100 part-time employees, all of which are located in the United States. Monitronics reported net losses of $111.29 million in 2017, $76.30 million in 2016 and $72.44 million in 2015. As of June 30, 2018, the Company had $1.67 billion in total assets, $1.84 billion in total liabilities, and a total stockholders' deficit of $167.69 million. * * * In September 2018, S&P Global Ratings lowered its issuer credit rating on Monitronics to 'CC' from 'CCC'. The downgrade follows Monitronics' announcement on Aug. 30, 2018, of a proposed transaction to exchange its 9.125% senior unsecured notes due 2020 for a combination of new $585 million cash and paid-in-kind (PIK) (7.75% cash and 3.75% PIK) unsecured notes due 2023, up to $100 million of cash from parent company Ascent and warrants. Monitronics is also proposing amendments to eliminate the restrictive covenants governing the 2020 notes, including certain events of default. In July 2018, Moody's Investors Service, Inc., downgraded Monitronics International's Corporate Family Rating to 'Caa2', from 'B3'. The downgrade of Monitronics' CFR reflects strains on the company's liquidity and capital structure caused by impending maturities, as well as its continued lackluster operating performance. MONITRONICS INTERNATIONAL: Suits Filed Over Planned Exchange Offer ------------------------------------------------------------------ Holders purporting to own approximately 68% of Ascent Capital Group Inc.'s 4.00% Convertible Senior Notes due 2020 filed a complaint on Aug. 27, 2018, in the Court of Chancery of the State of Delaware against Ascent and each of its directors and executive officers. As previously reported, on Sept. 5, 2018, holders purporting to own approximately 69% of the Notes filed an amended complaint in the Court of Chancery of the State of Delaware against Ascent and each of its directors and executive officers, and a motion for a preliminary injunction seeking to prevent Ascent from consummating the exchange offer related to the 9.125% Senior Notes due 2020 of Monitronics International, Inc. announced by Ascent and MONI on Aug. 30, 2018 (which exchange offer was terminated by Ascent and MONI on Sept. 25, 2018). On Oct. 1, 2018, holders purporting to own approximately 78% of the Notes filed a second amended complaint in the Court of Chancery of the State of Delaware against Ascent and each of its directors and executive officers, and an amended motion for a preliminary injunction seeking to prevent Ascent from consummating the transactions announced by Ascent and MONI on Sept. 25, 2018. On Oct. 22, 2018, the Court of Chancery of the State of Delaware entered a Third Scheduling Order Governing Plaintiffs' Motion for a Preliminary Injunction. The Scheduling Order provides, among other things, that the preliminary injunction hearing will be held on Dec. 5, 2018. On Nov. 2, 2018, holders purporting to own approximately 53% of the Notes filed a third amended complaint in the Court of Chancery of the State of Delaware against Ascent and each of its directors and executive officers. The Third Amended Complaint alleges that Ascent's participation in the transactions announced by Ascent and MONI on Oct. 30, 2018 would be detrimental to Ascent and, if consummated, would result in Ascent becoming insolvent. The Third Amended Complaint further alleges that the October 30th Transactions would (i) result in a breach of Ascent's directors' fiduciary duties to Ascent and (ii) constitute a constructive or intentional fraudulent transfer by using assets of Ascent necessary for the repayment of the Notes for other purposes. The Third Amended Complaint seeks (i) injunctive relief to prevent Ascent from engaging in the October 30th Transactions, which would allegedly dissipate Ascent's assets, and (ii) a declaratory judgment that approval of the October 30th Transactions constitutes a breach of fiduciary duty by Ascent's directors and that consummation of the October 30th Transactions would constitute a fraudulent transfer by Ascent. Also on Nov. 2, 2018, the Plaintiffs filed an amended motion for a preliminary injunction seeking to prevent Ascent from consummating the October 30th Transactions. The Company said the Third Amended Complaint could be amended, or similar claims could be brought, challenging the October 30th Transactions, and the Company cannot give assurance that those claims will be unsuccessful or will not have a material effect on any such October 30th Transactions. Ascent believes that the claims in the Third Amended Complaint are meritless, and Ascent intends to vigorously defend against this action. About Monitronics Farmers Branch, Texas-based Monitronics International, Inc. -- http://www.mymoni.com/-- provides residential customers and commercial client accounts with monitored home and business security systems, as well as interactive and home automation services. The Company is supported by a network of independent authorized dealers providing products and support to customers in the United States, Canada and Puerto Rico. Its wholly owned subsidiary, LiveWatch is a Do-It-Yourself home security firm, offering professionally monitored security services through a direct-to-consumer sales channel. Monitronics is a wholly-owned subsidiary of Ascent Capital Group, Inc. Monitroics was incorporated in the state of Texas on Aug. 31, 1994. At Dec. 31, 2017, the Company had more than 1,330 full-time employees and over 100 part-time employees, all of which are located in the United States. Monitronics reported net losses of $111.29 million in 2017, $76.30 million in 2016 and $72.44 million in 2015. As of June 30, 2018, the Company had $1.67 billion in total assets, $1.84 billion in total liabilities, and a total stockholders' deficit of $167.69 million. * * * In September 2018, S&P Global Ratings lowered its issuer credit rating on Monitronics to 'CC' from 'CCC'. The downgrade follows Monitronics' announcement on Aug. 30, 2018, of a proposed transaction to exchange its 9.125% senior unsecured notes due 2020 for a combination of new $585 million cash and paid-in-kind (PIK) (7.75% cash and 3.75% PIK) unsecured notes due 2023, up to $100 million of cash from parent company Ascent and warrants. Monitronics is also proposing amendments to eliminate the restrictive covenants governing the 2020 notes, including certain events of default. In July 2018, Moody's Investors Service, Inc., downgraded Monitronics International's Corporate Family Rating to 'Caa2', from 'B3'. The downgrade of Monitronics' CFR reflects strains on the company's liquidity and capital structure caused by impending maturities, as well as its continued lackluster operating performance. NUTRITION CARE: Plan Outline Okayed, Plan Hearing on Nov. 29 ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Puerto Rico will consider approval of the proposed Chapter 11 plan of reorganization for Nutrition Care Inc. at a hearing on Nov. 29, at 9:30 a.m. The hearing will be held at the U.S. Post Office and Courthouse Building, Courtroom No. 2. The court will also consider at the hearing the final approval of the company's disclosure statement, which it conditionally approved on Oct. 18. Creditors are required to file their objections and submit ballots of acceptance or rejection of the plan on or before 10 days prior to the hearing. About Nutrition Care Nutrition Care, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-00394) on Jan. 29, 2018. At the time of the filing, the Debtor estimated assets of less than $50,000 and liabilities of less than $1 million. Judge Enrique S. Lamoutte Inclan presides over the case. Tomas F. Blanco Perez, Esq., at MRO Attorneys at Law, LLC, is the Debtor's bankruptcy counsel. SEARS HOLDINGS: Chapter 11 Filing Stays Essie Johnson Suit ---------------------------------------------------------- District Judge R. Bryan Harwell stayed the case captioned Essie Johnson, Plaintiff, v. Sears Holding Corp., Sears Roebuck and Co., Sears Home Improvement Products, Inc., Sears Protection Company, Defendants, Civil Action No.: 4:18-cv-01053-RBH (D.S.C.) due to Defendants' commencing a voluntary Chapter 11 case. The parties are directed to notify the court of the status of Defendants' bankruptcy petitions, if not sooner, by April 1, 2019. A copy of the Court's Order dated Oct. 19, 2018 is available at https://bit.ly/2ALFnBi from Leagle.com. Essie Johnson, Plaintiff, is represented by Penny Hays Cauley, Hays Cauley PC & William Kyle Geddings, Hays Cauley PC. Sears Holding Corp, Sears Roebuck and Co, Sears Home Improvement Products Inc & Sears Protection Company, Defendants, is represented by Evan Thomas Leadem, Nelson Mullins Riley and Scarborough LLP, Timothy Michael McKissock -- tim.mckissock@nelsonmullins.com -- Nelson Mullins Riley and Scarborough & Erin Richardson Stuckey -- erin.stuckey@nelsonmullins.com -- Nelson Mullins Riley and Scarborough LLP. About Sears Holdings Sears Holdings Corporation (NASDAQ: SHLD) -- http://www.searsholdings.com/-- began as a mail ordering catalog company in 1887 and became the world's largest retailer in the 1960s. At its peak, Sears was present in almost every big mall across the U.S., and sold everything from toys and auto parts to mail-order homes. Sears claims to be is a market leader in the appliance, tool, lawn and garden, fitness equipment, and automotive repair and maintenance retail sectors. Sears and Kmart merged to form Sears Holdings in 2005 when they had 3,500 US stores between them. Kmart emerged in 2005 from its own bankruptcy. Unable to keep up with online stores and other brick-and-mortar retailers, a long series of store closings has left it with 687 retail stores in 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands as of mid-October 2018. The Company employs 68,000 individuals, of whom 32,000 are full-time employees. As of Aug. 4, 2018, Sears Holdings had $6.93 billion in total assets, $11.33 billion in total liabilities and a total deficit of $4.40 billion. Unable to cover a $134 million debt payment due Oct. 15, 2018, Sears Holdings Corporation and 49 subsidiaries sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 18-23538) on Oct. 15, 2018. The Hon. Robert D. Drain is the case judge. Weil, Gotshal & Manges LLP is serving as legal counsel, M-III Partners is serving as restructuring advisor and Lazard Freres & Co. LLC is serving as investment banker to Holdings. DLA Piper LLP is the real estate advisor. Prime Clerk is the claims and noticing agent. ================= V E N E Z U E L A ================= VENEZUELA: Inflation Rate Just Hit 830,000% ------------------------------------------- Business Insider reports that inflation in the stricken South American nation of Venezuela hit an annual rate of 830,000% this year to October, according to new data released to the country's parliament. A report published by a coalition of opposition parties said the annual rate had almost doubled since in the month since the latest report was published, according to Business Insider. In the year to September, inflation stood at 488,000%, Business Insider notes. Monthly inflation actually fell somewhat, with that figure falling to 147% in October from 233% in September, the report says. This figures may seem troubling, but things are set to get even worse for Venezuelans, with the International Monetary Fund arguing that the country's annual inflation rate is likely to pass 1 million percent this year, the report discloses. "The collapse in economic activity, hyperinflation, and increasing deterioration . . . will lead to intensifying spillover effects on neighboring countries," the director of the IMF's Western Hemisphere Department said in a blog post in July, the report relays. Venezuela's situation has drawn comparisons to the hyperinflation incidents seen in Zimbabwe in the early 2000s and in Weimar Germany after World War I, the report discloses. Local economists, Reuters reports, also say hyperinflation could become even more aggressive in the final months of the year, the report relays. That's because public-sector workers are given bonuses ahead of the holiday season that could boost purchasing power and push the cost of goods up even more, the report notes. The data is the latest to suggest that measures introduced by the country's embattled president, Nicolas Maduro, are failing to achieve their aims, the report notes. President Maduro disclosed a series of radical economic interventions over the summer that were designed to bring down inflation and stabilize the Venezuelan economy, the report relays. President Maduro's policies included devaluing Venezuela's currency, the bolivar, by 95% and pegging it to the state-backed cryptocurrency, the petro, the report says. With the policies failing to have any real impact, the continued hyperinflation of goods means everyday items are unaffordable for many Venezuelans, and poverty and violence are widespread in the country, the report says. News of Venezuela's still-surging inflation rate comes just days after reports that the country has approached the Bank of England about getting back approximately 15 tonnes of gold bullion held in the UK. Citing two sources with direct knowledge of the operation, Reuters said the plans related to recently announced sanctions by the US aimed at disrupting the South American country's gold exports. US President Donald Trump signed an executive order barring Americans from dealing with entities and people involved with "corrupt or deceptive" gold sales from Venezuela, the report adds. As reported in the Troubled Company Reporter-Latin America on June 1, 2018, S&P Global Ratings, in May 2018, removed its long- and short-term local currency sovereign credit ratings on Venezuela from CreditWatch with negative implications and affirmed them at 'CCC- /C'. The outlook on the long-term local currency rating is negative. At the same time, S&P affirmed its 'SD/D' long- and short-term foreign currency sovereign credit ratings on Venezuela. S&P's transfer and convertibility assessment remains at 'CC'. *********** 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 * * *