/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190329.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, March 29, 2019, Vol. 20, No. 64 Headlines B R A Z I L USJ ACUCAR: Fitch Cuts Long Term IDRs to 'C' USJ ACUCAR: S&P Lowers Global Scale ICR to 'CC', Put on Watch Neg. C A Y M A N I S L A N D S ZHENRO PROPERTIES: Moody's Rates Proposed Sr. Unsec. USD Notes 'B3' D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Dominguez Discuss Issues w/ Business Group DOMINICAN REPUBLIC: Refinery Spat Widens Rift With Venezuela J A M A I C A JAMAICA: GCT Returns for February Due Today M E X I C O MEXICO: Slim Promises to Help Gov't., President Says TV AZTECA: Fitch Affirms B+ Long-Term IDRs, Outlook Stable P A R A G U A Y TELEFONICA CELULAR: Fitch Rates Proposed $300MM Sr. Notes 'BB+' TELEFONICA CELULAR: Moody's Hikes CFR 'Ba1', Outlook Stable P E R U TELEFONICA DEL PERU: Moody's Assigns Ba1 CFR, Outlook Stable P U E R T O R I C O FNJCC CORP: Plan, Disclosures Hearing Scheduled for April 25 WESTERN HOST: Wants to Use Insurance Proceeds for Hotel Repairs T R I N I D A D A N D T O B A G O CL FINANCIAL: Court Greenlights Sale of MHIL, Trincity Hotel - - - - - =========== B R A Z I L =========== USJ ACUCAR: Fitch Cuts Long Term IDRs to 'C' -------------------------------------------- Fitch Ratings has downgraded U.S.J. Acucar e Alcool S.A.'s (USJ) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) to 'C' from 'CC' and its National Scale Rating to 'C(bra)' from 'CC(bra)'. At the same time, Fitch has downgraded USJ's outstanding USD197 million senior secured notes due 2021 and USD29 million senior unsecured notes due 2019 to 'C'/'RR4' from 'CC'/'RR4'. The downgrade reflects USJ's March 25, 2019 announcement of a private exchange offer for any and all of its outstanding 9.875% senior unsecured notes due 2019 and 9.875%/12.0% senior secured PIK toggle notes due 2021 for newly issued 8.5%/9.875% senior secured PIK notes due 2023 and, in the case of the 2019 notes only, new notes and cash. The proposal includes deferral of coupon payments due in 2019. USJ also requests consent to eliminate all restrictive covenants, certain events of default, related provisions as well as terminate the security agreements and release the security interests in the collateral securing the 2021 notes. The haircut is limited to 5% if the bond holders miss the deadline to accept the offer. According to Fitch's methodology, this exchange proposal is viewed as a distressed debt exchange (DDE) as it weakens the original conditions for bondholders while the company tries to avoid a default. The conclusion of the debt exchange offer and consent solicitation is conditioned upon the valid tender of at least 67% of the aggregate principal amount of the outstanding 2019 notes and at least 95% of the aggregate principal amount of the outstanding 2021 notes. Key Rating Drivers Very Weak Credit Profile: USJ's credit profile is pressured by its operations in the very volatile sugar and ethanol (S&E) sector, with above-average industry risks. The company also presents poor cash flow performance with cash flow from operations (CFFO) at break-even level and negative free cash flow (FCF) of BRL156 million in the last 12 months (LTM) ended on Dec. 31, 2018. USJ also presents high leverage, with total adjusted debt/EBITAR and net adjusted debt/EBITDAR of 7.6x and 7.1x, respectively at the end of the same period. DERIVATION SUMMARY USJ's ratings reflects the company's much weaker liquidity and capital structure than Jalles Machado S.A (Jalles, BB-/Stable) and Usina Santo Angelo S.A (USA, A-(bra)/Stable) whose cash to short-term debt coverage ratios are above 1.0x and whose net adjusted leverage is below 2.0x. USJ's ratings also compare unfavorably with those of Biosev S.A (Biosev, B+/Stable), which improved liquidity and brought leverage down to 2.9x in FY18 following a BRL3.5 billion (equivalent to USD1.1 billion) capital injection from its parent, Louis Dreyfus Commodity Holding group (LD). With USD-denominated debt accounting for over 80% of its total adjusted debt and focus on the domestic market, USJ is also more exposed to foreign exchange risks compared to all peers rated by Fitch. Operationally, USJ has a weaker business profile than Jalles, as the latter has higher product mix flexibility, above-average agricultural yields and presence of high value added products in the mix, whereas USJ's high focus on sugar is a disadvantage in times of depressed commodity prices. USJ also lacks the scale and presence of a large shareholder like Biosev and the high yields and low cost structure of USA. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer -- Crushed volumes at 3.4 million tons in FY19 and 3.5 million tons from FY20 onwards; -- Sugar prices of USD13 cents/pound for FY19 including polarization premiums. Fitch assumes that prices will be USD13.4/pound and USD14.2/pound in fiscal 2020 and 2021, respectively. -- The combination of oil prices and the FX rate will lead Petrobras to keep increasing domestic gasoline prices, paving the way for a gradual increase in hydrous ethanol prices; -- Average FX rate of BRL3.8/USD -- Costs (harvesting and industrial) are forecasted to increase by 5% annually; -- CAPEX of BRL110 million in FY19 and BRL120 million in the following years; -- No dividends from SJC, the Joint Venture with Cargill. KEY RECOVERY RATING ASSUMPTIONS -- The recovery analysis assumes that USJ would be liquidated in bankruptcy. -- Fitch has assumed a 10% administrative claim. Liquidation Approach: -- The liquidation estimate reflects Fitch's view of the value of land properties and other assets that can be realized in a reorganization and distributed to creditors. -- The 80% advance rate for its land and sugar cane plantations is typical for the sector and reflects the good location of such assets, near urban areas and other S&E players. -- The 20% advance rate for fixed assets like machinery, equipment and the mill itself reflect the low liquidity of such assets. -- Inventories have been discounted at 20% to reflect the above average liquidation prospects of sugar and ethanol assets. -- The 50% stake into SJC's book value has been included in the calculations. -- The waterfall results in a 100% recovery corresponding to 'RR1' for the secured notes and 95% recovery corresponding to 'RR1' for the unsecured notes, but both are limited to 'RR4' given the soft cap on Brazilian issuers. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Negative Rating Action According to Fitch's criteria for DDEs, the company's IDRs and National Scale rating will be downgraded to Restrict Default ('RD') and 'RD(bra)', respectively, once the exchange offer is approved or if the company defaults on its scheduled amortization/interest payments. Developments That May, Individually or Collectively, Lead to Positive Rating Action Following a downgrade to 'RD', an upgrade to the 'CC' or 'CCC' category could be possible, as a consequence of improvements in the company's liquidity position. LIQUIDITY Poor Liquidity: Fitch expects USJ to continue to report a weak cash position and very limited financial flexibility to face short-term debt obligations. In December 2018, USJ reported cash and marketable securities of BRL105 million and short-term debt of BRL398 million. This compares unfavorably with 0.7x reported for fiscal 2018. USJ's refinancing risks are high, as the company faces semi-annual coupon payments of USD13 million in May and November 2019, and USD29 million of principal amortization in November 2019 under the 2019 bonds. Fitch considers that the company will not be able to meet these payments if the debt restructuring proposal is not accepted. FULL LIST OF RATING ACTIONS Fitch has downgraded the following ratings: U.S.J. - Acucar e Alcool S.A -- Foreign and Local Currency Long-Term IDRs, to 'C' from 'CC'; -- Long-Term National Scale rating to 'C(bra)' from 'CC(bra)'; -- USD197 million senior secured notes due 2021 to 'C'/'RR4' from 'CC'/'RR4'; -- USD29 million senior unsecured notes due 2019 to 'C'/'RR4' from 'CC'/'RR4'. USJ ACUCAR: S&P Lowers Global Scale ICR to 'CC', Put on Watch Neg. ------------------------------------------------------------------ On March 27, 2019, S&P Global Ratings lowered its global scale issuer credit rating on Brazilian sugarcane processor USJ Acucar e Alcool S/A (USJ) to 'CC' from 'CCC-' and placed it on CreditWatch with negative implications. S&P also placed the 'C' unsecured issue-level rating on USJ on CreditWatch negative. The CreditWatch listing reflects S&P's view that the exchange proposal is a distressed offer, because it believes the company wouldn't be able to meet its interest, principal, and other obligations under the normal schedule of maturities. USJ's unsustainable capital structure and weak cash generation lead S&P to consider this exchange as tantamount to a default. For the 2019 notes, USJ has offered to pay $0.333 in cash and exchange $0.667 on each $1, and exchange the 2021 notes on par for new notes due 2023, before April 5, 2019. From that date until April 19, 2019, the conditions offered change to $0.316 in cash and exchange $0.634 on each $1 for the 2019 notes, and exchange $0.95 on each $1 for the 2021 notes. The new notes will have a payment-in-kind (PIK) feature for the next two coupon payments, with a coupon rate of 9.875%, with a third payment warranting the option to pay a coupon of 4% in cash and the remaining 5.875% also accrued. After the first three payments, the company will begin paying cash interest with a coupon rate of 8.5%, if the outstanding amount is lower than $200 million, and 9.875%, if the outstanding amount is above $200 million. S&P's also maintaining its recovery rating at '6' on USJ's outstanding unsecured notes due 2019, which indicates a negligible recovery of 0%-10%. =========================== C A Y M A N I S L A N D S =========================== ZHENRO PROPERTIES: Moody's Rates Proposed Sr. Unsec. USD Notes 'B3' ------------------------------------------------------------------- Moody's Investors Service has assigned a B3 rating to Zhenro Properties Group Limited's proposed senior unsecured USD notes. The rating outlook is stable. Zhenro plans to use the proceeds from the proposed notes to refinance existing debt. RATINGS RATIONALE "The proposed bond issuance will not materially change Zhenro's credit metrics in the next 12 to 18 months, and will help address its short-term refinancing needs," says Cedric Lai, a Moody's Assistant Vice President and Analyst. Moody's forecasts that Zhenro's debt leverage--as measured by revenue/adjusted debt--will show an improving trend over the next 12-18 months from 53% in 2018 and 44% in 2017, as revenue increases on the back of strong contracted sales in the past 1-2 years. At December 31, 2018, Zhenro had short-term debt of RMB23.8 billion, compared to cash holdings (including restricted cash) of RMB28.4 billion. The proposed bond issuance will improve Zhenro's liquidity profile and alleviate its short-term refinancing needs. Zhenro's B2 corporate family rating reflects the company's quality and geographically diversified land reserve, large scale, and strong sales execution. On the other hand, the rating is constrained by its weak financial metrics, as a result of its debt-funded rapid growth and moderate liquidity position. The B3 senior unsecured debt rating is one notch lower than the corporate family rating due to structural subordination risk. This subordination risk refers to the fact that the majority of Zhenro's claims are at its operating subsidiaries and have priority over claims at the holding company in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. Consequently, the expected recovery rate for claims at the holding company will be lower. The stable ratings outlook reflects Moody's expectation that over the next 12-18 months, Zhenro can execute its sales plan and maintain healthy profit margins and sufficient liquidity. Upward ratings pressure could emerge if Zhenro improves its contracted sales cash collection rate, liquidity position, debt leverage and interest coverage, while maintaining strong contracted sales growth. Credit metrics indicative of upward ratings pressure include: (1) adjusted revenue/debt exceeding 60%-65%; (2) EBIT/interest above 2.5x; and (3) cash/short-term debt above 1.25x on a sustained basis. The ratings could be downgraded if: (1) Zhenro fails to deleverage, or if its EBIT/interest coverage falls below 1.25x-1.50x due to aggressive land acquisitions; (2) its contracted sales or revenues fall short of Moody's expectations; or (3) its liquidity position weakens, or cash/short-term debt falls below 0.8x on a sustained basis. The principal methodology used in this rating was Homebuilding And Property Development Industry published in January 2018. Zhenro Properties Group Limited was incorporated in the Cayman Islands in 2014 and listed on the Hong Kong Stock Exchange in January 2018. At 31 December 2018, Zhenro had 145 projects in 28 cities across China. Its key operating cities include Shanghai, Nanjing, Fuzhou, Suzhou, Tianjin and Nanchang. The company was founded by Mr. Ou Zongrong, who indirectly owned 57.70% of Zhenro Properties at 27 August 2018. His sons, Mr. Ou Guowei and Mr. Ou Guoqiang, together owned 10.55% of the company as of the same date. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Dominguez Discuss Issues w/ Business Group -------------------------------------------------------------- Dominican Today reports that the Dominican Republic president and executives of the Roundtable of Commonwealth Countries in the Dominican Republic met with ruling party (PLD), presidential hopeful Francisco Dominguez to discuss a variety of issues. Fernando Gonzalez Nicolas suggested to the aspirants in the 2020 elections to prioritize in their government programs to strengthen legal security, foreign investment and exports, factors that he considers determinant to ensure economic development, according to Dominican Today. The business leader spoke at a meeting hosted by the Commonwealth Board Directors with at the Sheraton Hotel, which marked the beginning to a cycle of meetings with the presidential candidates, the report notes. 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: Refinery Spat Widens Rift With Venezuela ------------------------------------------------------------ Dominican Today reports that Felix Jimenez, CEO of the Dominican Petroleum Refinery (PDV), affirmed that the State-owned company does not owe one dollar to Venezuela for the supply of crude or derivatives. The affirmations comes just weeks after the Dominican Republic in the OAS voted to recognize Venezuela opposition leader Juan Guaido as interim president, according to Dominican Today. Mr. Jimenez refuted statements by Nicolas Maduro's communication minister Jorge Rodriguez, noting that the last dispatch of crude from Venezuela was received on December 15, 2015, and paid on January 10, 2016. He said the purchases have always been made through the Finance Ministry, since Refidomsa PDV has never bought oil directly from Venezuela, the report relays. Regarding the finished products, the official said that the last shipment of diesel and jet fuel (avtur) from that country was received on March 8, 2017, and paid on March 22 of that same year, the report notes. In a press conference, Mr. Jimenez responded to recent statements by Rodriguez in which he referred to an alleged debt of US$240 million, the report says. He also refuted Rodriguez's claim on the value of the 49% stake held by PDV Caribe, a PDVSA subsidiary, on Refidomsa PDV, "which is far from reaching 600 or 700 million dollars," the report relays. He said the sanctions of the United States and the European Union against Maduro's government affect Refidomsa's operations, the report discloses. "For that reason, president Danilo Medina asked president Maduro about the Dominican government's need to buy the shares from Venezuela," he added. Mr. Jimenez revealed that the two leaders agreed to the sale, during a bilateral meeting during the inaugural of Mexico president, Andres Manuel Lopez Obrador, on December 1, 2018, "in which they specifically spoke of 200 million of dollars," the report notes. "President Maduro assured that on March 17 he would send a representative of PDVSA to negotiate with us and, nevertheless, the 17th has passed, we are still waiting for him," he said, 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: GCT Returns for February Due Today ------------------------------------------- RJR News reports that Tax Administration Jamaica (TAJ) is reminding business persons that General Consumption Tax (GCT) returns for the month of February are due [to]day, March 29. This is in keeping with the requirement for registered GCT taxpayers to make their monthly GCT returns and payments on the last working day of the month, after the end of the taxable period, according to RJR News. Therefore, GCT returns filed and paid after the last working day of the month, will be considered late and penalties and interest charges applied, the report notes. Business persons have the option of making payments online using a valid credit card, via automated direct banking or in a tax office, the report relays. 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. =========== M E X I C O =========== MEXICO: Slim Promises to Help Gov't., President Says ---------------------------------------------------- EFE News reports that President Andres Manuel Lopez Obrador said that billionaire Carlos Slim would like to retire from business during the current presidential term, which ends in 2024, and promised to help the government in the economic and social areas. "He wants to finish his business life helping economic growth and (social) well-being during this six-year presidential term, according to EFE News. That's what he offered me, that he wants to retire and wants to do it during this six-year term," the president, popularly known as AMLO, said, the report notes. TV AZTECA: Fitch Affirms B+ Long-Term IDRs, Outlook Stable ---------------------------------------------------------- Fitch Ratings has affirmed TV Azteca, S.A.B. de C.V.'s (TV Azteca) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B+'. The Rating Outlook is Stable. TV Azteca's ratings reflect the company's second largest market position in the Mexican broadcasting industry and its solid content production. The ratings also reflect the company's initiatives to focus its strategy in its core broadcasting operations through the strengthening of its production, with emphasis in live entertainment shows, which has shown increasing audiences. The ratings are tempered by the company's volatile operating results and inability to maintain a steady financial profile; additional limitations to ratings include low financial flexibility stemmed from the breach of its debt incurrence covenant, its limited revenue diversification, the mature stage of the broadcast industry and Fitch's view of TV Azteca's aggressive treatment toward different stakeholders throughout the company's history, which weakens Governance. Going forward, Fitch expects the company to maintain relatively stable EBITDA and capex to be fully covered by its operational cash flow generation over the medium term, which will allow it to improve its financial profile, in the absence of any worse-than-expected competitive pressures or sizable shareholder distributions and acquisitions. KEY RATING DRIVERS 2018 Results below Expectations: TV Azteca's EBITDA contracted by 40% during 2018 compared to the previous year mainly due to the World Cup exhibition rights amortization, weaker than expected government advertising demand and rising production costs. The company's EBITDA margin fell to 16.5% YE2018 compared to 27.7% YE2017. The increase in costs is related to production efforts of higher quality programs. Also during the 4Q18, the company renewed the concession of all of its television channels for 20 years, effective as of Jan. 1, 2022 and made the corresponding payment of MXN3,940 million, which decreased its available cash at YE2018. Excluding the amortization rights, the company's total net debt/EBITDA ratio would have been 4.0x, which is in the weak level of the negative rating sensitivities; Fitch expects that TV Azteca will be able to gradually decrease its net leverage level to 3.6x in line with the current rating level. Competitive Environment: Fitch believes TV Azteca is well positioned to address the increasing industry competitive pressures, due to the company disciplined investment strategy into content production. In the near term, Fitch expects that the advertising demand outlook in Mexico for free-to-air broadcasters will remain stable as television continues to be the most important mass media in Mexico for advertisers. Negatively, the entrance of Grupo Imagen into the market, the evolving media consumption patterns to on demand viewing and the internet as alternate advertising platform could limit the industry long-term headroom. FCF Generation: During the past years, internally generated cash has been the company's main source to finance capex and cash distributions to shareholders. The company's strategy continues to be focused in content production, which requires investment in talent and facilities. During 2018, cash flow generation was used mainly to cover MXN3,940 million related to the renewal of concessions for 20 years. Fitch forecasts TV Azteca's FCF generation to be broadly positive in the short to medium term. The company's annual capex is expected to remain light at about MXN560 million during 2019 and MXN590 million in 2020 without any cash contribution to its overseas telecom operations or any sizable investment needs for its broadcasting segment. Fitch forecasts about a 3.6% FCF margin by YE 2019 and 2020 amid stable CFO generation of about MXN1.1billion during the period. Temporarily High Net Leverage Expected: Fitch's previous expectations for TV Azteca's net leverage were in the 2.5x-3.0x range, mainly supported by stable cash from operations generation and debt reduction completed with the proceeds from the Azteca America divestiture in 2017. The EBITDA erosion reported at YE2018 and the payment for the concession extension deteriorated the company's net debt/EBITDA to 4.9x from 2.8x at YE2017. While the current net leverage is weak within the current rating level, Fitch forecasts TV Azteca's FCF generation to be broadly positive in the medium term, which should enable it to gradually improve its financial profile and net leverage below 4.0x by the end of 2019 and forward. Additional factors that support operating cash flows are derived from lower U.S. dollar denominated debt and interest expense, after the company's liability management completed in 2017 and the renegotiation of the ATC agreement in 2018; however, FX balance sheet exposure remains. DERIVATION SUMMARY TV Azteca's direct peers in the region are in different rating categories. TV Azteca's competitor, Grupo Televisa, which is rated 'BBB+'/Outlook Stable, boasts stronger market share, formats and financial profile, as well as more diversified cash flow generation with strong cable and Direct-to-Home operations. Compared to the company's regional peer, Globo Comunicacao e Participacoes (Globo), which is rated 'BB+'/Outlook Stable, TV Azteca's relative market position and financial profile are considered significantly weaker. Also, Globo's ratings are constrained by the Country Ceiling of Brazil. No Parent/Subsidiary Linkage is applicable and no Country Ceiling constraint or operating environment influence was in effect for these ratings. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer -- Low single digits domestic advertising revenue growth in 2019 and 2020. -- EBITDA margin between 20% and 21% in 2019 and 2020. -- Capex to sales ratio of about 3.8%-3.9% over the next two years. -- Average FCF margin of 3.6% over the next two years. -- Net leverage to remain in the range of 3.6x-3.4x in 2019 and 2020. For issuers with IDRs of 'B+' and below, Fitch performs a recovery analysis for each class of obligations of the issuer. The issue rating is derived from the IDR and the relevant Recovery Rating (RR) and notching, based on the going concern enterprise value of a distressed scenario or the company's liquidation value. The recovery analysis assumes that TV Azteca would be considered a going-concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. Fitch's recovery analysis for TV Azteca places a going concern value under a distressed scenario of approximately MXN5.9 billion; based on a going-concern EBITDA of MXN1.65 billion and a 4.0x multiple. The going-concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which it bases the valuation of the company. Fitch assumes that any potential distress that provoked TV Azteca's default could occur due to weak economic factors, dampened advertising demand for free-to-air TV, and potential unpopular content amid high production costs. The MXN1.65 billion going-concern EBITDA assumption reflects a 45% discount from the forecasted annual EBITDA generation for 2019, which should be sufficient to cover its interest expenses, and maintenance capex. An EV multiple of 4x is used to calculate a post-reorganization valuation and reflects Mexican operating environment and a mid-cycle multiple. Fitch calculates the recovery prospects for the senior unsecured debtholders in the 31%-50% range based on a waterfall approach after covering the company's available credit facility. This level of recovery results in the senior unsecured notes being rated in line with its IDR at 'B+'/'RR4'. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action -- An upgrade is unlikely in the medium term given the aggressive management strategy that negatively impacts Fitch's view on the company's Governance, which translates into limited financial flexibility. -- A material EBITDA turnaround is necessary for any positive rating action. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Weak advertising industry growth coupled with the company's gradual market share loss. -- Weaker than expected EBITDA recovery due to the company's inability to curb rising production costs. -- Net leverage increasing above 4.0x on a sustained basis. -- Persistent negative FCF. -- A further deterioration in Governance perception. LIQUIDITY Adequate Liquidity Position: TV Azteca's liquidity position and financial flexibility are adequate based on its cash holdings of about MXN1.7 billion at YE 2018 and Fitch's expectations that the company will generate FCF. Total debt outstanding as Dec. 31, 2018 was MXN13.3 billion. During the 3Q18, TV Azteca disposed a credit loan with Banco Azteca in MXN pesos to pay USD59.5 million in cash and extinguished its loan agreement with ATC. The company does not face any debt maturity until 2020, when this MXN1.7 billion bank loan becomes due. The renegotiation with ATC modestly reduced TV Azteca's total debt, interest expenses and its exposure to exchange rate movements; nevertheless it limits the company's position with creditors that may result in a reduced access to capital markets and other financial alternatives. The company's balance sheet debt is mainly composed of MXN4 billion local notes due in 2022 and USD400 million senior notes due in 2024. Azteca's current leverage level is higher than the senior notes financial covenant, which prevents the company from incurring in additional indebtedness, if not for refinancing. This limits TV Azteca's financial flexibility. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings: TV Azteca S.A.B. de C.V. -- Long-Term Foreign and Local Currency IDRs at 'B+'; Outlook Stable; -- Senior unsecured notes due 2024 at 'B+'/'RR4'. =============== P A R A G U A Y =============== TELEFONICA CELULAR: Fitch Rates Proposed $300MM Sr. Notes 'BB+' --------------------------------------------------------------- Fitch Ratings has assigned a long-term rating of 'BB+' to Telefonica Celular del Paraguay S.A.'s (Telecel) proposed USD300 million senior unsecured notes issuance due 2027. The proceeds will be used to refinance Telecel's existing senior unsecured notes due 2022. Telecel's ratings reflect its leading market positions in Paraguay, supported by its extensive network and distribution coverage, and the strong brand recognition of Tigo. The company's competitive strengths have enabled stable operational cash flow generation and high margins, resulting in the company's solid financial profile, with leverage that is considered low for the rating category. The company's ratings are constrained by its persistent negative FCF generation, amid intense competition. Telecel's ratings also reflect a strong linkage between the company and its parent, Millicom International Cellular S.A. (MIC; BB+/Stable), given Telecel's strategic and financial importance to the parent. The company also benefits from synergies related to MIC's larger scale and management expertise. Telecel is a 100%-owned subsidiary of MIC. KEY RATING DRIVERS Solid Market Position: Fitch believes Telecel's market leadership will remain intact over the medium term, supported by continued expansion in its fixed-line services. Telecel is a wholly owned subsidiary of MIC and the largest mobile operator in Paraguay, with an estimated mobile market share of 53%. Telecel has an entrenched position with the most extensive network in Paraguay under the Tigo brand. Positive Revenue Diversification: Fitch expects Telecel's home and business-to-business segment to represent close to 30% of total revenues by 2021, supported by the continued expansion of its network coverage. Telecel's mobile segment, which generates about 64% of its revenues, is expected to weaken over the medium to long term as a result of declining voice/SMS revenues and high competition. Demand in fixed-line services remains strong, given the low penetration of services in Paraguay. Solid Profitability: Telecel's EBITDA margin remained flat at 50% during 2018, backed by operating cost reductions and higher proportion of service during the period. Fitch believes that further margin expansion will be limited due to competitive pressures and an increasing revenue contribution from lower-margin pay-TV and broadband services. Nevertheless, Telecel's average projected margin over the medium to long term is expected to remain solid compared with its regional telecom peers. Negative FCF: Telecel's negative FCF generation is unlikely to reverse in the medium term due to its high dividends to its parent, MIC. Fitch expects cash upstream to remain high, given its relatively stable financial position, pressuring FCF margin into negative territory. Fitch projects cash flow from operations (CFFO) to remain solid and increase to PYG1.2 trillion annually over the medium term, covering annual capex of roughly PYG600 billion, resulting in solid pre-dividend FCF. Low Leverage: Fitch believes Telecel's solid financial profile will remain intact over the medium term, backed by its operational cash flow generation. The company's net leverage ratio increased to 2.0x as of Dec. 31, 2018, but is still considered low for the rating category. Telecel's net leverage should remain around 2.0x over the medium term, despite the expected continued negative FCF, as a result of its growing revenues mainly driven from growth in the home business. DERIVATION SUMMARY Telecel is well-positioned relative to its regional telecom peers in the 'BB' category based on its high profitability and low leverage, and its leading mobile market position, backed by its solid network competitiveness and strong brand recognition. Telecel boasts a strong financial profile with high profitability and low leverage for the rating level, compared to its regional telecom peers in the same rating category. The company's credit profile is in line with its peer Comcel Trust (BB+/Stable), an integrated telecom operator and MIC's other subsidiary in Guatemala, as well as Colombia Telecomunicaciones S.A. E.S.P. (BB+/Stable), an integrated telecom operator in Colombia. Telecel's credit profile is stronger than Axtel (BB-/Stable) and VTR Finance (BB-/Stable) given their lack of service diversification and weaker financial profiles. The company's lack of geographic diversification and weak revenue diversification, as well as its high shareholder return temper the credit. Parent/subsidiary linkage is applicable given MIC's strong influence over Telecel's operations and MIC's reliance on Telecel's dividend upstream. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Low-single-digits revenue growth mainly driven by growth in the fixed-line operation; -- EBITDA margins to slightly deteriorate due to increased competition and higher contribution from fixed-line services; -- Negative FCF generation to remain uncurbed in the medium term, as a result of dividend distributions to parent; -- Net leverage remaining around 2.0x over the medium term. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action -- A positive rating action on Telecel would likely be linked to a positive rating action on MIC. MIC's business position and overall financial profile continue to be solid for the rating category. -- Continued improvement in MIC's overall financial results could lead to positive rating actions for both entities. -- Positive rating action on sovereign ratings of Paraguay. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Continued deterioration in the company's EBITDA generation along with weak revenue growth due to competitive pressures, including material loss in mobile market share, ARPU erosion, and substantial increase in marketing expenses. -- Persistent negative FCF generation due to higher than expected shareholder distributions and/or capex. -- A negative rating action on MIC. LIQUIDITY Telecel's liquidity position is adequate, supported by its readily available cash balance, low leverage and solid cash flow generation. As of Dec. 31, 2018, the company held a cash balance of PYG148 billion. The company has short-term debt of PYG213 billion, which Fitch expects to be serviced with cash flow generation, and no other material debt repayments until 2022; which further bolsters its financial flexibility. The company's total debt as of Dec. 31, 2018 was PYG3,004 billion, which consisted mainly of a USD300 million senior unsecured bond due 2022, Inter-American Development Bank loan of PYG364 billion, and local currency unsecured bank debt. FULL LIST OF RATING ACTIONS Fitch currently rates the following: Telefonica Celular del Paraguay S.A. -- Long-Term Foreign Currency Issuer Default Rating 'BB+'; Outlook Stable; -- Senior unsecured debt at 'BB+'. TELEFONICA CELULAR: Moody's Hikes CFR 'Ba1', Outlook Stable ----------------------------------------------------------- Moody's Investors Service has upgraded the Corporate Family Rating (CFR) of Telefonica Celular Del Paraguay S.A. (Telecel) to Ba1 from Ba2. At the same time, Moody's upgraded to Ba1 from Ba2 the rating on the company's $300 million senior unsecured global notes due 2022 and assigned a Ba1 rating to the proposed $300 million senior unsecured global notes due 2027. The outlook is stable. The rating of the proposed notes assumes that the issuance will be successfully completed and that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date. It also assumes that these agreements are legally valid, binding and enforceable. List of affected ratings: Upgrades: Issuer: Telefonica Celular Del Paraguay S.A. Corporate Family Rating: upgraded to Ba1 from Ba2 $300 million senior unsecured notes due 2022: upgraded to Ba1 from Ba2 The outlook for all ratings was changed to Stable from Positive Rating assigned: Issuer: Telefonica Celular Del Paraguay S.A. $300 million senior unsecured notes due 2027: Ba1 RATINGS RATIONALE The ratings upgrade is a result of Telecel's sustained strong operating performance and credit metrics along with lower exposure to foreign exchange and higher profitability observed during the last three years amidst a highly competitive operating environment. Accordingly, the company reduced its US dollar denominated debt to 57% of total debt in 2018 from 81% in 2016. The upgrade also considers that the operating gains are a result of tight cost control and efficiency initiatives that increased Moody's adjusted EBITDA margin to 48.3% in 2018 from 43.4% in 2015, while keeping leverage measured by total debt to EBITDA at around 2 times. Fitch believes the improvements are sustainable and that Telecel will continue to be successful in defending its leading market position. Telecel's Ba1 ratings reflect the company's leading market position in Paraguay, effective business model and track record of resilient operating performance. Telecel's low-debt profile coupled with comfortable amortization schedule and adequate liquidity furthermore promote long-term financial stability. The company's close relationship with its controlling shareholder -- Millicom International Cellular S.A. (Millicom, Ba1 stable) -- also supports the Ba1 ratings. Telecel's ratings are constrained by its modest revenue size compared to global peers, although the company generates high profits for the rating category. Revenues that have contracted from 2013 to 2016 gained momentum in 2017 and staled in 2018 with lower handset sales, strong competition of the Paraguayan telecom market and the shift to lower margin services that will continue to pressure revenue growth and margins. Despite the reduction in US denominated debt and a more stable currency performance in Paraguay, Telecel's exposure to foreign currency fluctuation remains a credit negative. The proceeds raised with the proposed notes will be used in the repurchase of Telecel's $300 million notes due 2022 in a tender offer that will be launched in conjunction with the new notes resulting in no increase in leverage metrics. Telecel has strong credit metrics and good financial stability compared to other globally rated peers in the same category. Although the company has no formal target ratios, Fitch expects leverage to remain around 2 times and coverage to remain strong for the rating category given limited opportunities for large debt-funded acquisitions. Telecel generates more than enough cash flow from operations to cover capital expenditures, but free cash flow depends on the level of dividend payout. As such, dividend payments have been driving negative free cash flow generation in past years as it was the case in 2017 and 2018, when it amounted to -8.1% and -9.6% of total adjusted debt respectively. With the group's cash management centralized at Millicom's headquarters Fitch expects that the company will continue with aggressive dividend payments to its holding company pressuring its free cash flow generation. Telecel's liquidity is adequate. Pro-forma for a new loan of PGY 117 billion ($20 million), the company had a cash balance of $45 million, which is more than sufficient to cover short-term debt maturities. Telecel has a comfortable maturity profile with minor amortizations of around $37 million per year until 2023. Its main maturity will relate to the proposed $300 million senior unsecured notes due 2027. Telecel does not have committed revolving credit facilities, but has intercompany short term receivables with Millicom that amounted to around $230 million in the end of 2018 and could be used as an alternative source of liquidity if needed. The stable rating outlook reflects Moody's expectation that Telecel will be able to sustain strong market shares as well as its solid credit metrics, including low leverage, high margins and good liquidity. Although unlikely in the near term an upgrade would require an increase in Telecel's revenues along with the maintaining of strong operating performance, credit metrics and liquidity coupled with dividend and Capex discipline in the competitive Paraguayan telecom market. An upgrade would be also dependent on an upgrade of Paraguay's Ba1 sovereign bond rating. A downgrade would be considered if Paraguay's sovereign bond rating suffers a downgrade, or if operating margins decline further than anticipated as a consequence a more intense competitive environment. A negative rating action could also be triggered by a debt leverage that increases above 3 times for a prolonged period of time without a clear path to subsequent de-leveraging. The principal methodology used in these ratings was Telecommunications Service Providers published in January 2017. Telecel is the largest telecommunications service provider in Paraguay, with 3.3 million subscribers and a mobile market share of about 50% as of December 31, 2018. Operating under the Tigo trademark through four business segments, Telecel offers diversified mobile, cable and broadband products with the majority of revenues derived from the mobile business. Telecel is a fully-owned subsidiary of Millicom, representing 12% of consolidated revenues in 2018 as Millicom's third largest contributor. During 2018, Telecel's revenues totaled around $540 million with an adjusted EBITDA margin of 48.3%. ======= P E R U ======= TELEFONICA DEL PERU: Moody's Assigns Ba1 CFR, Outlook Stable ------------------------------------------------------------ Moody's Investors Service assigned a Ba1 corporate family rating (CFR) to Telefonica del Peru S.A.A. At the same time, Moody's assigned a Ba1 rating to the company's proposed up to PEN1,700 million senior unsecured notes with a medium term or intermediate maturity payable in US dollars. The rating outlook is stable. This is the first time Moody's assigns a rating to Telefonica del Peru. The rating of the proposed notes assumes that the issuance will be successfully completed and that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date. It also assumes that these agreements are legally valid, binding and enforceable. Ratings Assigned: Issuer: Telefonica del Peru S.A.A. - Corporate Family Rating: Ba1 - Up to PEN1,700 million Senior Unsecured Regular Bond/Debenture with a medium term or intermediate maturity payable in US dollars: Ba1 Outlook Actions: Issuer: Telefonica del Peru S.A.A. - Outlook Assigned: Stable RATINGS RATIONALE Telefonica del Peru's Ba1 CFR reflects the company's strong competitive position in Peru as the largest telecommunications service provider in terms of revenues and its diversification into a full suite of services, which allows it to offer bundled services in the Peruvian market. The rating also takes into consideration the company's strong debt protection metrics and adequate liquidity for a comfortable debt maturity profile. Telefonica del Peru's strong shareholder structure being owned and controlled by Telefonica S.A. (Baa3 stable) and Moody's expectations of stronger profitability over the next three years are also factors imbedded into the Ba1 rating. On the other hand, the Ba1 rating considers Peru's highly competitive and price-sensitive Telecom market, which has been pressuring top line and margin sustainability, despite some positive underlying subscriber trends in the past six months. The entrance of two aggressive competitors in 2014 has disrupted the competitive landscape of a previously comfortable two-player market driving down market shares, and profitability of the previously existing players -- Telefonica del Peru and America Movil S.A.B de C.V.'s (A3 stable) subsidiary Claro. According to Moody's projections the positive momentum for stronger profitability should result in positive free cash flow generation only in 2021. Telefonica del Peru's small scale relative to global peers is also taken into consideration. Proceeds from the proposed issuance will be used for liability management, CAPEX investments and other general corporate purposes increasing the company's Moody's adjusted leverage measured by total debt to EBITDA to around 2.3 times in the end of 2019 from 1.6 times in the end of 2018. Telefonica del Peru has a small scale relative to global peers, but is a solid competitor in Peru's telecommunications market, positioned as the largest player in the mobile and fixed markets. Its good revenue diversification and access to Telefonica S.A.'s emerging markets expertise and regional purchasing and supply chains support a solid business model. The mobile segment generates 42% of Telefonica del Peru's total revenues, while fixed broadband and fixed voice account for 28%, pay-TV for 17% and B2B for 12%. Despite the intense competition, Moody's expects that Telefonica del Peru's performance over the next several quarters will be characterized by positive momentum as a consequence of a more rational market environment coupled with the implementation of a well-defined strategy to recover profitability to levels comparable with other industry peers in the region. Accordingly, the company plans to recover profitability by cutting costs and selling convergent services to its clients, consequently reducing churn, growing revenues and improving margins. Telefonica del Peru's liquidity is good. As of December 2018, the company had only PEN89 million in cash, but also had a substantial available capacity of PEN3.2 billion under its local bond program to support liquidity needs plus the issuance of the proposed PEN1,700 million senior unsecured notes. The company has low indebtedness and a comfortable debt maturity profile, with PEN260 million on average coming due annually through 2024. Its next major sum of debt maturities comes due in 2020 for PEN344 million. The proposed notes will mature in the medium term or intermediate maturity. Telefonica del Peru does not have any committed credit facilities, but has good access to the local bank market. The stable outlook reflects Moody's expectation that Telefonica del Peru's performance will be characterized by positive momentum as a consequence of a more rational market environment over the next few years, and the company's well defined strategy to recover profitability while defending its leadership position. As such, Moody's expects recoveries in the company's profitability, free cash flow generation and leverage along with the maintenance of its market participation, capital expenditures and liquidity at adequate levels. Positive pressure on Telefonica del Peru's rating could arise if the company posts better than expected and sustained improvements in profitability and revenue growth while maintaining its leading market position and strong credit metrics. Quantitatively, an upgrade would be considered if the company posts sustained revenue growth and strong profitability while maintaining leverage close to 2.0 times and stronger interest coverage measured by (EBITDA-CAPEX)/Interest Expense 3.5x or higher on a sustained basis. The rating could be downgraded if the company is not able to maintain its market position and turnaround profitability to healthier levels in the aggressive competitive scenario in Peru that would lead to further cash burn and increase in leverage to finance capital expenditures and activities. Quantitatively ratings could be downgraded if leverage increases to a level higher than 3.5 times for a prolonged period of time. Weaker liquidity and persistent negative free cash flow generation could also built negative rating pressure. Telefonica del Peru is the largest telecommunication company in Peru with a total market share of 46% as of December 2018. The company is an integrated telecommunications provider offering mobile, fixed, pay TV and B2B services through its Movistar brand. They are Peru's largest player in terms of revenues, and leader in all segments with over 13 million RGUs in mobile and almost 2 million RGUs in fixed broadband and pay-TV. For the fiscal year of 2018, Telefonica del Peru generated revenues of approximately PEN 8.1 billion (USD 2.5 billion). Telefonica del Peru is controlled by Telefonica S.A., which indirectly holds 98.57% of the shares. The remaining 1.43% are traded in the Peruvian Stock market -- Bolsa de Valores de Lima. The company is an important subsidiary of Telefonica S.A. being one of the four fully convergent subsidiaries in the region, representing around 3% of the group's consolidated assets and 4% of revenues. Telefonica entered the Peruvian market in 1994 with the acquisition of two government-owned telecom companies through a privatization process and invested more than USD9.2 billion in the country since then. Telefonica S.A., domiciled in Madrid, Spain, is a leading global integrated telecommunications provider. The company delivers a full range of fixed and mobile telecommunications, servicing some 356.3 million customers worldwide as of the end of September 2018. In Spain, Telefonica is the incumbent operator and provides services to 41.4 million customers. In Latin America, the company has around 226.5 million customers and is the leading operator in Brazil, Argentina, Chile and Peru, with substantial operations in Colombia, Ecuador, El Salvador, Guatemala, Mexico, Nicaragua, Panama, Uruguay, Costa Rica and Venezuela. In addition to its presence in Latin America since 1991, the company has a strong footprint in the UK and Germany, providing services to around 79.9 million customers. Telefonica is a Spain-listed company, with a market capitalization of around EUR39.6 billion as of 19 December 2018. The principal methodology used in these ratings was Telecommunications Service Providers published in January 2017. ===================== P U E R T O R I C O ===================== FNJCC CORP: Plan, Disclosures Hearing Scheduled for April 25 ------------------------------------------------------------ Bankruptcy Judge Edward A. Godoy conditionally approved FNJCC Corporation's disclosure statement referring to a chapter 11 plan of reorganization dated March 15, 2019. Written acceptances or rejections of the Plan and any objection to the final approval of the Disclosure Statement and/or the confirmation of the Plan may be filed 14 days prior to the date of the hearing on confirmation of the Plan. A hearing for the consideration of the final approval of the Disclosure Statement and the confirmation of the Plan will be held on April 25, 2019 at 9:30 AM at the United States Bankruptcy Court, Southwestern Divisional Office, MCS Building, Second Floor, 880 Tito Castro Avenue, Ponce, Puerto Rico. About FNJCC Corp. FNJCC Corporation sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-05552) on Sept. 26, 2018. At the time of the filing, the Debtor estimated assets of less than $50,000 and liabilities of less than $500,000. The Debtor tapped Modesto Bigas Law Office as its legal counsel. WESTERN HOST: Wants to Use Insurance Proceeds for Hotel Repairs --------------------------------------------------------------- Western Host Associates, Inc., requests the U.S. Bankruptcy Court for the District of Puerto Rico to authorize the use of the insurance proceeds. The Debtor proposes to use $633,806 in order to repair the damages caused by the hurricanes and start operating so it can generate the income necessary to make payments to its creditors and obligations, and avoid the continuance of immediate and irreparable harm to the estate. The Debtor estimates the costs of repairs amounts to approximately $901,119. Pre-petition, the Debtor entered into various loan agreements with Westernbank Puerto Rico, from whom Banco Popular de Puerto Rico obtained the loans, then later on, Triangle Cayman Asset Company 2 obtained the loans. Triangle holds a secured interest over Debtor's property for a commercial loan debt. The loan is secured by a real estate collateral. The Debtor asserts, however, that Triangle has a right of cash collateral only over the structure located at Old San Juan, San Jose Street 202, San Juan, Puerto Rico 00901. Triangle has no cash collateral right over the rents generated from the rooms of the Hotel, no cash collateral right over the business interruption, and no cash collateral right over the inventory. In its Schedule D, the Debtor included Capital Crossing, which is Triangle's servicing company, with a secured debt over that property in the amount of $3.9 million. On November 2017, the Debtor filed its claim with Integrand Assurance to claim its structural damages, inventory damages, and business interruption. The Debtor also requested a loan through Small Business Administration which was denied. Once the claim over the property was partially approved, as expressed before, Integrand sent a check in the amount of $250,000 on January 2018 to the order of Western Host Associates and Capital Crossing -- Triangle's servicing company. On the meeting between Debtor and Capital Crossing, they stated that the only way they would endorse the check was if they had full control over proceeds of such check. Since no agreement was reached, the check was sent back to Integrand Assurance, but Debtor afterwards sent various offers to Capital Crossing. On Dec. 27, 2018, Integrand Assurance consigned the amount of $721,112, which is composed of $633,806 for structural damages and inventory loss for $87,306. As evidenced in the case, and expressed by Integrand Assurance in the hearing held on Dec. 13, 2018, Triangle has a right of cash collateral over the amount of $633,806 but not over the amount of $87,306 which is for inventory loss. Triangle has no cash collateral right over the inventory. Triangle argued that they should receive all the amount of the insurance proceeds because of a mortgage deed signed stating that they have the right where those insurance proceeds should be applied. Nevertheless, the Debtor asserts (1) Triangle has no right to all the amount of the $721,112 because, as expressed, the amount of $87,306 are from inventory loss to which Triangle has no cash collateral right; and (2) the amount of $633,806 should be used for its purpose which is to repair the damages suffered because of hurricane Maria. Accordingly, the Debtor requests the Court to allow the use of cash collateral. In exchange to its use of cash collateral, the Debtor proposes to provide monthly payments of $4,000 to Triangle as adequate protection. A copy of the Debtor's Motion is available at http://bankrupt.com/misc/prb18-02696-117.pdf About Western Host Associates Western Host Associates, Inc., owns a four-story commercial hotel building located at 202 San Jose Street, Old San Juan, Puerto Rico. The hotel is currently non-operational and is valued by the company at $1.35 million. The company previously sought bankruptcy protection on Nov. 14, 2012 (Bankr. D.P.R. Case No. 12-09093) and on May 19, 2011 (Bankr. D.P.R. Case No. 11-04152). Western Host Associates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-02696) on May 15, 2018. In the petition signed by Luis Alvarez, president, the Debtor disclosed $1.36 million in assets and $4.82 million in liabilities. Judge Brian K. Tester oversees the case. The Debtor tapped Gratacos Law Firm, PSC, as its legal counsel and the Law Offices of Jose R. Olmo-Rodriguez, as special counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== CL FINANCIAL: Court Greenlights Sale of MHIL, Trincity Hotel ------------------------------------------------------------ Trinidad Express reports that the High Court in Port of Spain has given the liquidators of CL Financial Limited the greenlight to sell the group's direct 56.53 per cent shareholding in Oman-based Methanol Holdings (International) Ltd (MHIL) as well as the group's indirect interest in the Holiday Inn Express Hotel in Trincity. The joint liquidators are also in the process of finalizing valuations, agreeing a divestiture strategy with all key shareholders and seeking the court's approval to progress the divestment of Colfire, CL Marine, Caribbean Petrochemical Manufacturing Ltd, 3,300 acres of land, two shopping malls (Trincity and Long Circular) and other shareholdings, according to Trinidad Express. As reported in the Troubled Company Reporter-Latin America on July 26, 2017, CL Financial Limited shareholders vowed to pay back a TT$15 billion (US$2.2 billion) debt to the Trinidad Government after scoring what it called a "major legal victory" against the Keith Rowley administration. Caribbean360.com said the Trinidad Government went to the High Court with a petition to have the company liquidated. Finance Minister Colm Imbert had explained then that the move was in response to attempts by the company's shareholders to take control of the board. High Court Judge Kevin Ramcharan however sided with the company shareholders, ruling that the action by the Government was premature. The TCR-LA, citing Trinidad Express, reported on Aug. 6, 2015, that the Constitution Reform Forum (CRF) has called on Finance Minister Larry Howai to refrain from embarking on an "unnecessary drain on the Treasury" by appealing the decision of a High Court judge, who ordered that the Minister fulfil a request by president of the Joint Consultative Council (JCC) Afra Raymond for financial details relating to the bailout of CL Financial Limited. The CRF issued a release stating that if the decision is appealed, not only will it be a waste of finance but such a course of action will also demonstrate a "lack of commitment by the Government to the spirit and intent of the Freedom of Information Act FOIA", under which the request was made, according to Trinidad Express. On July 7, 2014, Trinidad Express said that the Central Bank has placed the responsibility of voluntary separation package (VSEP) negotiations for workers at insurance giant Colonial Life Insurance Company Ltd. (CLICO) with the company's board, after which it will review accordingly, the bank said in a statement. The bank's statement follows protest action by CLICO workers, supported by their union, the Banking, Insurance and General Workers' Union (BIGWU), outside the Central Bank in Port of Spain, according to Trinidad Express. In a separate TCRLA report on June 26, 2014, Caribbean360.com said that the Trinidad and Tobago government welcomed an Appeal Court ruling that the Attorney General Anand Ramlogan said saves the country from paying out more than TT$1 billion (TT$1 = US$0.16 cents) to policyholders of the cash-strapped CLICO. The Appeal Court overturned the ruling of a High Court that ruled members of the United Policyholders Group (UPG) were entitled to be paid the full sums of their polices. CLICO financially caved in on itself at the end of 2008 after the investment instruments of major policyholders matured and they wanted hundreds of millions of dollars they were owed. On Aug. 6, 2013, the TCR-LA, citing Caribbean360.com, said that over TT$8 billion worth of CLICO's profitable business will be transferred to Atruis, a new company that will be owned by the state. The Trinidad Express said that the Cabinet approved the transfer as the Finance and General Purposes Committee continues to discuss a letter of intent hammered out by the Ministry of Finance and CL Financial's 400 shareholders, which envisions taxpayers will recover the more than TT$20 billion Government has injected since 2009 to keep CL subsidiary CLICO and other companies afloat. At its annual general meeting in Sept. 2013, CL Financial shareholders voted to extend the agreement with Government until August 25, 2014, while Cabinet decides on a new framework accord to recover the debt owed to Government through divestment of CL subsidiaries, including Methanol Holdings, Republic Bank, Angostura Holdings, CL World Brands and Home Construction Ltd., Caribbean360.com related. Proceeds from the divestment of these assets will go toward Government's recovery of the billions it pumped into CLICO. TCRLA reported on Sep 22, 2011, Caribbean News Now, citing Reuters, said that the cost of the Trinidad and Tobago government bailout of CL Financial Limited is likely to rise to more than TT$3 billion. ********* 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 2019. 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 * * *