/raid1/www/Hosts/bankrupt/TCRLA_Public/190123.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, January 23, 2019, Vol. 20, No. 16
Headlines
B R A Z I L
AVIANCA BRASIL: Aircastle Seeks Earlier Return of 10 Jets
AVIANCA BRASIL: Regulator Will No Longer Ground 10 Planes
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Automated Dollar Sales Start in March
G U A T E M A L A
CENTRAL AMERICA BOTTLING: S&P Withdraws 'BB' Issuer Credit Rating
M E X I C O
METROFINANCIERA S.A.P.I: S&P Takes Various Action on Three Deals
P E R U
PESQUERA EXALMAR: S&P Places 'B-' Long-Term ICR on Watch Positive
P U E R T O R I C O
RENT-A-CENTER INC: Moody's Confirms B2 CFR, Outlook Developing
VARADERO @ PALMAS: Seeks to Hire Fuentes Law Offices as Counsel
T R I N I D A D & T O B A G O
TRINIDAD PETROLEUM: S&P Assigns 'BB' ICR, On CreditWatch Negative
* CARIBBEAN AIRLINES: Offers Super Low Fares Until February 11
V E N E Z U E L A
VENEZUELA: Court Declares Opposition Parliament Unconstitutional
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B R A Z I L
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AVIANCA BRASIL: Aircastle Seeks Earlier Return of 10 Jets
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Marcelo Rochabrun at Reuters report that Aircastle Ltd will try to
repossess 10 planes from Avianca Brasil before the Feb. 1
expiration of a 15-day stay on repossessions from the struggling
airline, a spokesperson for the aircraft lessor said.
Aircastle is the second lessor to seek an earlier return of the
planes after Avianca Brasil, which filed for bankruptcy in
December, obtained the 15-day stay on any repossessions of its
planes in a court hearing, notes the report.
The report recalls that Brazil's aviation regulator said it would
seek to ground a separate group of 10 planes at the request of a
different leasing company, General Electric Co unit GECAS.
Aircastle and GECAS own a combined 40 percent of the carrier's 46-
plane fleet, and the loss of those aircraft could affect tens of
thousands of passengers, notes the report.
According to Reuters, Aircastle's move creates further uncertainty
about Avianca Brasil's ability to maintain its current flight
schedule. The carrier has said it is operating normally, although
it has also said it will give back some planes and scale back
operations.
The report relates that Avianca Brasil filed for bankruptcy after
falling behind on lease payments, setting off a scramble to
repossess its planes.
The 15-day stay on repossessions was requested by the bankruptcy
judge after the airline and its lessors failed to reach an
agreement at the hearing, according to the legal order, which the
lessors signed, the report adds.
It specifically states that the leasing firms did not agree with
the judges decision, Aircastle said in a statement, reports
Reuters.
"His decision is completely contrary to the Cape Town Convention,"
Aircastle said, referring to a little-known international treaty
that allows for swift repossession of aircraft, says the report.
Brazil and the United States are among the countries that have
signed the treaty.
As reported in the Troubled Company Reporter-Latin America on
Dec. 13, 2018, Ana Mano and Marcelo Rochabrun at Reuters said that
Brazil's fourth-largest airline, Avianca Brasil, filed for
bankruptcy protection, saying its operations had been threatened
by potential repossession of aircraft, which could prevent the
carrier from continuing to operate. The unlisted airline said in
its bankruptcy filing that leasing companies seeking to take back
some 30 percent of its all-Airbus fleet threatened its ability to
fly some 77,000 passengers in December, according to Reuters.
Avianca said in a statement that the bankruptcy filing resulted
from a failure to reach a "friendly agreement." It also said its
flights would not be affected, the report relayed. The aircraft
are still under Avianca Brasil's control for now and it remains
unclear what their fate will be as the carrier is asking a
Brazilian court to allow it to keep the planes for now, the report
noted. The report disclosed that the airline said in the filing
it largely blamed high fuel prices and a strong dollar for its
troubles.
AVIANCA BRASIL: Regulator Will No Longer Ground 10 Planes
---------------------------------------------------------
Reuters reports that Brazil's aviation regulator ANAC said it
would no longer ground 10 planes operated by Avianca Brasil, which
represented 20 percent of the struggling carrier's fleet.
ANAC had said that it was grounding the planes at the request of
its owner, lessor GE Capital Services, according to Reuters.
As reported in the Troubled Company Reporter-Latin America on
Dec. 13, 2018, Ana Mano and Marcelo Rochabrun at Reuters said that
Brazil's fourth-largest airline, Avianca Brasil, filed for
bankruptcy protection, saying its operations had been threatened
by potential repossession of aircraft, which could prevent the
carrier from continuing to operate. The unlisted airline said in
its bankruptcy filing that leasing companies seeking to take back
some 30 percent of its all-Airbus fleet threatened its ability to
fly some 77,000 passengers in December, according to Reuters.
Avianca said in a statement that the bankruptcy filing resulted
from a failure to reach a "friendly agreement." It also said its
flights would not be affected, the report relayed. The aircraft
are still under Avianca Brasil's control for now and it remains
unclear what their fate will be as the carrier is asking a
Brazilian court to allow it to keep the planes for now, the report
noted. The report disclosed that the airline said in the filing
it largely blamed high fuel prices and a strong dollar for its
troubles.
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D O M I N I C A N R E P U B L I C
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DOMINICAN REPUBLIC: Automated Dollar Sales Start in March
---------------------------------------------------------
Dominican Today reports that central bank treasurer Yamileth
Garcia de Kunhart said the tests on the automated platform to sell
foreign currency will begin in March, with which they expect to
avoid duplicate requests for dollars and other situations that
distort the foreign exchange market.
She said the distortions had forced the banks to restrict the
amounts of foreign exchange transactions through the window,
according to Dominican Today. "After this trial period, it is
expected that the platform will be in operation by midyear," the
report quoted Mr. de Kunhart as saying.
In that regard, Central Bank deputy manager Frank Montano said the
banks have looked for mechanisms to thwart atypical exchange
operations by limiting some dollar sales, the report notes.
Some bank customers have sated concern over financial institutions
that are selling a maximum of 2,000 dollars per day per window,
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.
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G U A T E M A L A
=================
CENTRAL AMERICA BOTTLING: S&P Withdraws 'BB' Issuer Credit Rating
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S&P Global Ratings withdrew its 'BB' long-term issuer credit and
issue-level ratings on Guatemala-based beverage bottler, The
Central America Bottling Corporation (CBC), at its request. At the
time of the withdrawal, the outlook was stable.
CBC posted an EBITDA margin of 13.2%, a debt to EBITDA ratio of
3.2x, and EBITDA interest coverage of 2.3x as of September 2018,
reflecting the pressures from high production costs and
advertising expenses, coupled with a rise in operating leases. S&P
continue to expect the company's credit metrics to remain in line
with its expectations in the next 12 months.
S&P said, "The stable outlook at the time of the withdrawal
reflected our view that CBC will maintain a steady operating and
financial performance thanks to its solid position in the markets
where its operates, coupled with an effective commercial strategy
leading to EBITDA margins close to 13.5%. We believe the company's
debt to EBITDA will remain below 3x and its EBITDA interest
coverage close to 4x for the next 12 months."
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M E X I C O
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METROFINANCIERA S.A.P.I: S&P Takes Various Action on Three Deals
----------------------------------------------------------------
S&P Global Ratings took several rating actions on three Mexican
residential mortgage-backed securities (RMBS) transactions
originated and serviced by Metrofinanciera S.A.P.I. de C.V. SOFOM
E.R.
S&P said, "We lowered our Mexico national scale (CaVal) rating on
class METROCB 05U. We raised our global and CaVal scale ratings on
class MTROCB 07U. We also affirmed our global rating and
downgraded the CaVal scale rating on class MTROCB 08U. Immediately
afterwards, we withdrew our ratings on classes MTROCB 07U and
MTROCB 08U per the issuer's request."
S&P said, "The downgrade on class METROCB 05U reflects our view
that the transaction's credit enhancement levels--in the form of
overcollateralization, excess spread, cash reserves, and partial
credit guarantee (PCG)--combined with our updated foreclosure
frequency and loss severity assumptions, are no longer sufficient
to withstand our stress scenarios consistent with the previous
rating level.
"The upgrade on MTROCB 07U from 'D (sf)' reflects that the
transaction has resumed its interest payments since June 2016,
when it defaulted. The current ratings on these notes also reflect
our view that the transaction is currently vulnerable to
nonpayment and is dependent upon favorable business, financial,
and economic conditions to meet its financial obligations.
"On the other hand, the downgrade in the CaVal scale rating of
MTROCB 08U reflects the continued deterioration in the
transaction's overcollateralization since our last review in April
2017. This supports our view of a higher vulnerability to default.
The rating actions also reflect our view that the transactions'
counterparty, operational, and legal risks are consistent with the
current ratings."
According to servicer reports, as of November 2018, the pools
backing each of the series showed nonperforming loan levels
(delinquencies greater than 90 days past due, measured as a
percentage over the initial balance) lower than those observed at
the time of our last rating actions. This was driven by
Metrofinanciera's collection and foreclosure efforts, combined
with higher sales of foreclosed properties for the transactions.
However, as of November 2018, credit enhancement levels for the
METROCB 05U, MTROCB 07U, and MTROCB 08U series continued
deteriorating, dropping to (28.35)%, (137.01)%, and (185.74%) from
(17.61)%, (115.22)% and (127.42)%, respectively, as of our last
review.
Class METROCB 05U has a partial credit guarantee (PCG) provided by
Sociedad Hipotecaria Federal S.N.C., which can only be disbursed
to cover interest shortfalls under possible liquidity events or
principal at maturity. However, it cannot be disbursed to restore
the parity between current assets and liabilities; therefore, its
capacity to absorb losses is limited.
DEFAULT RATIOS AND CREDIT ENHANCEMENT LEVELS(i)
Series Def. (%) Def. (%) O/C (%) PCG (%) C/E
(ii)(iii) (ii)(iv) (v) (vi) (v)(vi)
METROCB 05U 36.86 4.52 (54.35) 26.00 (28.35)
MTROCB 07U 52.41 14.06 (137.01) 0.00 (137.01)
MTROCB 08U 51.52 14.26 (185.74) 0.00 (185.74)
(i)Calculations used data as of November 2018.
(ii)S&P Global Ratings estimates default rates considering the
reported delinquency buckets of 61-90 days and more than 90 days.
(iii)Defaults measured over the loans' outstanding amount.
(iv)Defaults measured over the loans' initial balance.
(v)Calculated as one minus (liabilities divided by current assets
including cash in the trusts).
(vi)Available PCG amount.
O/C--Overcollateralization.
PCG--Partial credit guarantee.
C/E--Credit enhancement.
S&P said, "We estimated the transactions' delinquency and default
rates and current credit enhancement levels using our RMBS
methodology and assumptions. To determine the ratings, we used our
updated foreclosure frequency and loss severity assumptions
obtained from our LEVELS Mexico models and our Cash Flow Evaluator
to assess the transactions' payment capacity of monthly interest
and principal repayments at their final maturity dates under our
projected stress scenarios consistent with the current rating
levels. We also considered their financial positions, projected
performance, and payment structures. We modeled each deal's
expected recovery using asset liquidations that are consistent
with the outputs from the LEVELS Mexico model."
FORECLOSURE FREQUENCY AND LOSS SEVERITY LEVELS
Current
rating
Series level FF (%) LS (%) LSDP (%)
METROCB 05U mxBB (sf) 7.63 40.66 41.88
MTROCB 07U(i) mxB- (sf) 4.63 33.59 32.86
MTROCB 08U(i) mxB- (sf) 3.24 24.26 29.25
(i)Classes MTROCB 07U and MTROCB 08U could not withstand the
stress scenario consistent with the 'mxB- (sf)' rating level. FF--
Foreclosure frequency.
LS--Loss severity.
LSDP-Loss severity of the defaulted portfolio.
S&P said, "In our view, the ratings could be affected if the
transactions' overcollateralization ratios continue deteriorating,
or due to changes in the used assumptions on variables, such as
the additional levels of losses, excess spread, and the timing and
magnitude on which recoveries from foreclosed properties flow to
the trusts.
"Metrofinanciera, in its role as a servicer, is the only
performance key transaction participant and, in our view, the
ratings are not limited by operational risk. This is based on our
view of a moderate severity risk, a moderate portability risk, and
a very high disruption risk as a result of a "vulnerable"
operating condition assessment and "fair" key performance
attributes."
RATINGS DOWNGRADED
Metrofinanciera-Bursatilizaciones de Hipotecas Residenciales
Class Previous Current Outstanding
Class type rating rating amount (mil.)(i)
METROCB 05U Senior mxBBB- (sf) mxBB (sf) UDI16.99
Metrofinanciera-Bursatilizaciones de Hipotecas Residenciales II
Class Previous Current Outstanding
Class type rating rating amount (mil.)(i)
MTROCB 08U Senior mxCCC(sf) mxCCC-(sf) UDI105.38
RATINGS UPGRADED
Metrofinanciera-Bursatilizaciones de Hipotecas Residenciales II
Class Previous Current Outstanding
Class type rating rating amount (mil.)(i)
MTROCB 07U Senior D (sf) CCC- (sf) UDI84.05
D (sf) mxCCC (sf)
RATINGS AFFIRMED
Metrofinanciera-Bursatilizaciones de Hipotecas Residenciales II
Class Current Outstanding
Class type rating amount (mil.)(i)
METROCB 08U Senior CCC- (sf) UDI105.38
RATINGS WITHDRAWN
Metrofinanciera-Bursatilizaciones de Hipotecas Residenciales II
Class Previous Current Outstanding
Class type rating rating amount (mil.)(i)
MTROCB 08U Senior CCC-(sf)/ NR UDI105.38
mxCCC-(sf)
MTROCB 07U Senior CCC- (sf)/ NR UDI84.05
mxCCC (sf)
(i)Balances as of Jan 17, 2018.
UDI--Unidad de inversion (inflation-linked units).
NR--Not rated.
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P E R U
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PESQUERA EXALMAR: S&P Places 'B-' Long-Term ICR on Watch Positive
-----------------------------------------------------------------
On Jan. 16, 2019, S&P Global Ratings placed its 'B-' long-term
issuer credit and issue-level ratings on Exalmar on CreditWatch
with positive implications.
The CreditWatch placement follows Exalmar's announcement that it
plans to refinance its senior unsecured notes for around $109
million due 2020 during the first quarter of this year. The
CreditWatch placement also reflects the company's better-than-
expected operating and financial performance during the past 12
months due to a significant recovery in the fishing quotas in Peru
since 2017. Exalmar plans to use a new $110 million five-year
syndicated loan and cash on hand to refinance the senior unsecured
notes due 2020 and repay a $20 million loan. The proposed dollar-
denominated syndicated loan from several Peruvian banks, with an
interest rate indexed to Libor, will be subject to a one-year
grace period, a 36% balloon at fifth year, and a straight rate
amortization during years 2 and 5, which S&P views as manageable.
The loan will help the company reduce its debt at a faster pace
than we had previously expected.
S&P expects the transaction to improve Exalmar's financial risk
profile, capital structure, and liquidity position. The debt
refinancing will increase Exalmar's financial flexibility through
the considerable extension of its debt maturity profile.
Moreover, Exalmar's operating and financial performance has
significantly improved during the past 12 months. The company
posted EBITDA margins of around 31% and a debt-to-EBITDA ratio of
2.9x as of Sept. 30, 2018. On a pro forma basis for the
transaction and a robust EBITDA given higher fishing quota and
fishing volumes, S&P forecasts Exalmar to maintain its adjusted
debt to EBITDA below 4.0x and to generate discretionary cash flow
in the next 12 months. In the past two years, fishing quotas in
Peru have recovered markedly to around 4.8 million tons annually,
bolstering Exalmar's revenues and operating performance.
Although the $110 million syndicated loan will be secured with
around 50% of Exalmar's fishing quota and two production plants,
S&P believes that the existing senior unsecured notes for $60.922
million due 2025 are not subordinated to the new debt, given that
the other half of Exalmar's fishing quota and five other
production plants are still available in case of any event of
default, mitigating any potential subordination risk.
Moreover, S&P previously indicated that a positive rating action
is possible if the company successfully addresses the refinancing
risk of its 2020 debt maturities, while it maintains debt to
EBITDA below 4.0x and generates discretionary cash flow.
======================
P U E R T O R I C O
======================
RENT-A-CENTER INC: Moody's Confirms B2 CFR, Outlook Developing
--------------------------------------------------------------
Moody's Investors Service confirmed Rent-A-Center, Inc.'s B2
Corporate Family Rating, B2-PD Probability of Default rating, and
B3 Senior Unsecured debt ratings. Rent-A-Center's SGL-3
Speculative Grade Liquidity rating remains unchanged, and its
ratings Outlook was changed to Developing from Ratings Under
Review. At the same time, Moody's assigned a Ba2 rating to Rent-A-
Center's $200 million Secured Revolving Credit Facility due
December 31, 2019, and withdrew the ratings on the $350 million
Secured Revolving Credit Facility due March 19, 2019. This
concludes the review for downgrade that began on June 19, 2018.
"The confirmation reflects the significant improvement in
Rent-A-Center's operating performance and credit metrics that has
occurred as a result of the implementation of its strategic
turnaround plan," stated Moody's retail Analyst, Mike Zuccaro. The
confirmation also reflects the termination of the acquisition
agreement with Vintage Rodeo Parent, LLC ("Vintage"), an affiliate
of private equity firm Vintage Capital Management, LLC ("Vintage
Capital"). The termination of the acquisition benefits
Rent-A-Center's credit profile because the acquisition would have
resulted in higher debt and leverage.
The developing outlook reflects Rent-A-Center's need to address
its looming debt maturities over the very near term and the
related potential for a downgrade should the Company be unable to
address these maturities. At the same time, the developing outlook
acknowledges Moody's expectation for further significant
improvement in Rent-A-Center's operating performance and credit
metrics over the coming year, which, should the Company extend its
near dated debt maturities, are supportive of a potential upgrade.
Last, the developing outlook acknowledges the high level of
uncertainty regarding the final outcome of litigation with
Vintage.
Ratings confirmed
- Corporate Family Rating, B2
- Probability of Default Rating, B2-PD
- Senior Unsecured Notes, B3 (LGD4)
Rating unchanged:
- Speculative Grade Liquidity Rating, SGL-3
Ratings assigned:
- Senior Secured Credit Facility due December 31, 2019, Ba2
(LGD1)
Ratings withdrawn:
- Senior Secured Credit Facility due March 19, 2019, Ba2 (LGD2)
Outlook action:
- Changed to Developing from Rating Under Review
RATINGS RATIONALE
Rent-A-Center, Inc.'s B2 Corporate Family Rating is constrained by
increasing refinancing risk, and the need to further execute on
its strategic turnaround in order to better position itself to
address its looming debt maturities. The rating also reflects the
Company's moderate business risk associated with the rent-to-own
industry including a focus on cash and credit constrained
consumers as well as the potential impact from government
legislation that may occur from time to time.
Rent-A-Center benefits from its solid position in the consumer
rent-to-own industry, its historical track record of maintaining
relatively strong and stable debt protection measures, and
balanced financial policy that has included debt reduction. The
Company's operating performance and credit metrics have
significantly improved over the past year as a result of the
implementation of its strategic turnaround plans, which Moody's
believes will lead to further improvement in 2019. For the latest
twelve-month period ended September 30, 2018, Moody's debt/EBITDA
was around 4.7 times and EBIT/Interest was 1.1 times, both
significantly improved from 6.1 times and 0.5 times at the end of
2017. Despite the near term expiration of its revolver, Rent-A-
Center's liquidity is adequate, due to Moody's expectation that
balance sheet cash and strong, positive free cash flow will be
more than sufficient to support all cash flow needs over the next
twelve months.
Ratings could be downgraded if the Company is unable to address
its looming debt maturities over the very near term prior to its
November 15, 2020 bond maturity becoming current. An upgrade would
require the Company to improve its liquidity position by extending
its debt maturity profile while sustaining improvement in
operating performance and credit metrics, such that EBIT/Interest
exceeded 1.5 times and lease-adjusted debt/EBITDAR approached
4.5x.
Rent-A-Center, Inc., with headquarters in Plano, Texas operates
the largest chain of consumer rent-to-own stores in the U.S. with
approximately 3,550 Company operated stores and kiosks located in
the U.S., Canada, Mexico and Puerto Rico. Rent-A-Center also
franchises approximately 250 rent-to-own stores that operate under
the "Rent-A-Center," "ColorTyme" and "RimTyme" banners. Revenue
exceeded $2.6 billion for the twelve-month period ended September
30, 2018.
The principal methodology used in these ratings was Retail
Industry published in May 2018.
VARADERO @ PALMAS: Seeks to Hire Fuentes Law Offices as Counsel
---------------------------------------------------------------
Varadero @ Palmas, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire Fuentes Law Offices,
LLC as its legal counsel.
The firm will advise the Debtor regarding its duties under the
Bankruptcy Code and will provide other legal services related to
its Chapter 11 case.
Alexis Fuentes Hernandez, Esq., the firm's attorney who will be
handling the case, charges an hourly fee of $250. The retainer
fee is $10,000.
Mr. Hernandez has no prior connections with the Debtor, creditors
or other "party in interest," according to court filings.
Fuentes Law Offices can be reached through:
Alexis Fuentes Hernandez, Esq.
Fuentes Law Offices, LLC
P.O. Box 9022726
San Juan, PR 00902
Tel: (787) 722-5216
Fax: (787) 722-5206
E-mail: alex@fuentes-law.com
About Varadero @ Palmas Inc.
Varadero @ Palmas, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. P.R. Case No. 18-07576) on Dec. 26,
2018. At the time of the filing, the Debtor disclosed $1,038,507
in assets and $105,441 in liabilities. The case is assigned to
Judge Mildred Caban Flores.
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T R I N I D A D & T O B A G O
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TRINIDAD PETROLEUM: S&P Assigns 'BB' ICR, On CreditWatch Negative
-----------------------------------------------------------------
On Jan. 16, 2019, S&P Global Ratings assigned its long-term 'BB'
issuer credit rating to Trinidad Petroleum Holding Ltd. At the
same time, S&P withdrew its BB ratings on Petrotrin. S&P's also
placing both ratings on TPH on CreditWatch with negative
implications.
The rating actions follow the corporate reorganization that the
company started in the last quarter of 2018 in order to improve
the overall efficiency of the group and to focus on more
profitable segments. As a result, the refining business was shut
down and four new entities were created: three operating
subsidiaries (Heritage Petroleum Company Limited, Paria Fuel
Trading Company and Guaracara Refining Company Limited), and the
new holding company, TPH, to which the international bonds were
transferred from Petrotrin. S&P expects the company to focus its
investments on Heritage Petroleum, responsible for the exploration
and production (E&P) business, which will be the main cash flow
generator of the group. Given that the refinery was closed, TPH
will remain responsible for the fuel supply of the island via
Paria, which holds the sole license to import and distribute
refined products in Trinidad and Tobago (T&T).
S&P said, "Our ratings on TPH reflect our opinion that there's a
very high likelihood that its owner, T&T (BBB+/Negative/A-2) would
provide timely and sufficient extraordinary support to the company
in the event of financial distress.
"Our assessment of a very high likelihood of extraordinary
government support is based on our view of TPH's very important
role as the country's sole distributor of refined products and as
a key supplier to Trinidad and Tobago National Petroleum Marketing
Co. Ltd., the country's major retail gas station network. In
addition, given cash flow shortfall, the company hasn't been
paying taxes, but we expect this situation to change. TPH also has
a very strong link with the government, particularly regarding
debt authorization, budget approval, and tax payments. The
government owns 100% of TPH and is actively involved in the day-
to-day operations and key decisions. In addition, the government
has a long track record of providing support to the company
through the guarantees for several loans and the recent approval
of a $195 million short-term loan.
TPH's 'b-' stand-alone credit profile (SACP) incorporates the
inherent volatility and cyclicality in international oil crude
prices, as well as the asset concentration in one country, a
relatively small daily average production of 50-55 kilo barrels of
oil equivalent (kboed), and a reserve mix around 80% of which
consists of liquids. S&P said, "We expect the company to make
necessary investments to maintain stable production on a boe
basis. In this sense, even though the company has reorganized its
business divisions, we don't detect changes in its business risk
profile. In addition, we expect the company's leverage to remain
high, with adjusted debt to EBITDA of around 6x for upcoming
years." TPH's license to distribute all of refined products in
T&T, financial flexibility, and market access due to its
government ownership mitigate these weaknesses.
* CARIBBEAN AIRLINES: Offers Super Low Fares Until February 11
--------------------------------------------------------------
Trinidad Express reports that effective immediately until Feb. 11,
Caribbean Airlines customers can take advantage of some of the
lowest available fares for travel to select destinations
throughout the region, with the launch of the airline's "Limbo"
fare campaign.
Customers in Trinidad and Tobago may book and travel roundtrip
immediately to St Lucia for US$234; to Barbados for US$231; to
Grenada: US$218; and to St Vincent from US$215, according to
Trinidad Express.
"Limbo" fares also include roundtrip St Lucia to Trinidad for
US$228; Barbados to Trinidad for US$236; Grenada to Trinidad for
US$204; and St. Vincent to Trinidad for US$206. Fares are subject
to availability, and are for economy travel inclusive of fees and
all taxes, the report notes.
Garvin Medera, Caribbean Airlines Chief Executive Officer, noting
that travel always features as a top New Year resolution stated
"Our Limbo fare campaign, gives customers the opportunity to
experience new destinations or revisit some of their favorite
islands and rediscover many of the exciting destinations that the
Caribbean offers, the report relays. Customers who seek further
adventure and wish to travel to three or even five Caribbean
destinations in one visit, can also take advantage of Caribbean
Explorer, our island hopper offer that allows passengers to
explore more than one destination in the Caribbean Airlines
network with the purchase of ONE fare," the report adds.
Caribbean Airlines Limited -- http://www.caribbean-airlines.com/
-- provides passenger airline services in the Caribbean, South
America, and North America. The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods. In addition, it operates a duty
free store in Trinidad. Caribbean Airlines Limited was founded in
2006 and is based in Piarco, Trinidad and Tobago.
As reported in the Troubled Company Reporter-Latin America on
November 2, 2015, RJR News said that Michael DiLollo, Chief
Executive Officer of Caribbean Airlines Limited has quit after
just 17 months on the job. The 48-year-old Canadian national,
citing personal reasons, resigned with immediate effect. His
resignation was accepted by the airline's board of directors. Mr.
DiLollo was appointed Caribbean Airlines CEO in May 2014,
following the sudden resignation of Robert Corbie in September
2013.
In early February 2015, Larry Howai, then Finance Minister, told
Parliament that unaudited accounts for 2014 showed the airline
made a loss of US$60 million, inclusive of its Air Jamaica
operations, and the airline planned to break even by 2017.
Mr. Howai told the Parliament that a five-year strategic plan had
been completed and was in the process of being approved for
implementation.
In an interview with the Trinidad & Tobago Guardian in early
November 2015, Mr. DiLollo said CAL did not need a bailout just
yet. Mr. DiLollo said the airline had benefited from extremely
patient shareholders for years and he believed the airline was
strategically positioned to break even in three years.
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V E N E Z U E L A
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VENEZUELA: Court Declares Opposition Parliament Unconstitutional
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EFE News reports that the Venezuelan Supreme Court of Justice
(TSJ) declared the National Assembly (AN), which has an opposition
majority, to be "unconstitutional" and to "have no directive
board," thus refusing to recognize opposition figure Juan Guaido
as president of that legislative chamber.
The TSJ's Constitutional Chamber said that it was making the
declaration in light of the "repeated constitutional omission" of
the AN, an entity that was declared in "rebellion" by the Supreme
Court just a few weeks after the Chavista government lost its
majority there, according to EFE News.
The report notes that the TSJ warned that the "annoying activity
of the public branch," an allusion to Guaido's presidency of the
body, "carries with it individual responsibility with an eye to
violating the constitutional text."
Thus, the TSJ urged the Public Ministry to "determine the
corresponding penal, civil and administrative responsibility" of
those who have acted to usurp the duties of the de facto governing
institutions, the report relays.
The TSJ said that the chamber's actions were "inadmissible" and
"unheard of," especially regarding four resolutions approved this
month by the body in which it declares the presidency of Nicolas
Maduro to be a usurpation of power and promises to provide amnesty
for all officials -- both civil and military -- who refuse to obey
him, the report says.
The TSJ declared these actions to violate the Constitution and to
flout the authority of the judicial, electoral and executive
authorities, as well as denying the validity of the votes of the
citizens who voted for President Maduro in the May 2018 elections,
a ballot that was called fraudulent and remains unrecognized by
many governments around the world, the report relays.
The justices on the high court also rejected as "unconstitutional"
the legislative agreements seeking to allow humanitarian aid to
come into the country and the failure of Venezuelan authorities to
recover from abroad assets linked to corruption in the country's
public firms, the report notes.
A day after Maduro was inaugurated for his second six-year term,
Guaido asked for civil, military and foreign support in taking
over the government in light of the "illegitimacy" of the Chavista
leader, the report adds.
As reported in the Troubled Company Reporter-Latin America,
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'
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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.
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