/raid1/www/Hosts/bankrupt/TCRLA_Public/190903.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
Tuesday, September 3, 2019, Vol. 20, No. 176
Headlines
A R G E N T I N A
ARGENTINA: Moody's Downgrades Sr. Unsec. Rating to Caa2
INTEGRA PYMES: Moody's Withdraws B2 IFS Rating for Business Reasons
QBE SEGUROS: Moody's Withdraws Ba2 IFS Rating for Business Reasons
B A H A M A S
[*] BAHAMAS: Dorian Strengthens Further as it Nears Country
B R A Z I L
BRAZIL: 2020 Budget Cuts Funding & Investment Expenditures
BRAZIL: Business Confidence Index Drops 0.1 Points in August
BRAZIL: States and Capital Cities Cut Investments by 52.8% in 4Yrs
C A Y M A N I S L A N D S
FALCON GROUP: Moody's Reviews for Upgrade Ba3 CFR
J A M A I C A
JAMAICA: BOJ Says July Rate on Track With Inflation Target
M E X I C O
CONSUBANCO SA: Fitch Affirms BB- LT IDRs, Outlook Stable
INTERJET AIRLINES: Denies Report it is in Technical Bankruptcy
MAXCOM USA: Drinker, Jewell Represent Ad Hoc Group of Noteholders
P U E R T O R I C O
SEARS HOLDINGS: Another 100 Stores Reportedly Slated for Closing
SPANISH BROADCASTING: Posts $1.76 Million Net Loss in 2nd Quarter
V E N E Z U E L A
VENEZUELA: Minimum Wage Hits Rock Bottom at $2.00 a Month
- - - - -
=================
A R G E N T I N A
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ARGENTINA: Moody's Downgrades Sr. Unsec. Rating to Caa2
-------------------------------------------------------
Moody's Investors Service downgraded the Government of Argentina's
foreign-currency and local-currency long-term issuer and senior
unsecured ratings to Caa2 from B2. The senior unsecured ratings for
shelf registrations were also downgraded to (P)Caa2 from (P)B2. The
outlook on these ratings has been changed to ratings under review
from negative.
Moody's decision to downgrade Argentina's ratings reflects the
rising expectation of losses for investors as a consequence of
mounting pressures on the government's finances, most recently
reflected in the government's August 28 decision to delay repayment
on over $8 billion of short-term debt and to signal its intent also
to restructure portions of Argentina's medium and long term debt.
The decision to downgrade to Caa2 ratings reflects Moody's current
assessment of losses expected should any restructuring involve a
relatively limited reprofiling of debt maturities. The decision to
place the Caa2 ratings under review for further downgrade reflects
the strong downward risk bias, given the uncertainties associated
with such restructurings.
At the same time Argentina's short-term rating was affirmed at Not
Prime (NP). The senior unsecured ratings for unrestructured debt
were affirmed at Ca and the unrestructured senior unsecured shelf
affirmed at (P)Ca. Those ratings are not affected by the review for
downgrade, the NP short-term rating already being at the lowest
point in the rating agency's short-term rating scale and Ca on the
government's bonds that were never restructured appropriately
capturing expected losses for the holders of those bonds.
Argentina's long-term foreign-currency bond ceiling was changed to
Caa1 from B1 and the foreign-currency deposit ceiling changed to
Caa2 from B3. The local-currency country ceilings for bonds and
bank deposits were changed to B2 from Ba2. The short-term
foreign-currency bank deposit ceiling and the short-term
foreign-currency bond ceiling remain unchanged at Not Prime (NP).
RATINGS RATIONALE
On July 12, Moody's changed the outlook to negative on Argentina's
long-term issuer and senior unsecured ratings to reflect rising
uncertainty regarding policy intentions and the consequences for
investor confidence. Since then, two key events have occurred.
First, the outcome of the national primary elections (the 'PASO')
in August implied a high probability of a victory in the October
presidential election for the opposition candidate, Alberto
Fernandez, and his running mate, Cristina Fernandez de Kirchner.
That outcome led to a severe market reaction which in turn raised
the government's debt load, lowered debt affordability, and reduced
funding sources.
Second and as a consequence, the government has now announced
delays in the repayment of more than $8 billion of short-term debt,
and the intention to seek a 'voluntary reprofiling' of longer-term
debt, including debt owed to the IMF. The exact consequences of the
government's pronouncements are unclear, and some will in any event
be for the subsequent administration to determine.
The action reflects the rising expectation of losses to investors
as a consequence of these events. It is already clear that holders
of short-term debt will incur some losses as a result of delays in
repayments, and Moody's places little weight at present on the
suggestion that any restructuring of medium and long term debt
might be 'voluntary' in nature.
The decision to downgrade to Caa2 ratings reflects Moody's current
assessment of the losses that might be expected from any future
restructuring, of between 10% and 20% of amounts due.
However, at this early stage it is very unclear what the government
will wish, or be able, to achieve from the proposed 'reprofiling'.
In any event, it is likely that negotiations will spill over into
the next administration, the objectives of which are not yet known.
The decision to leave the ratings on review for further downgrade
reflects Moody's view that there is a strong upward bias to losses
expected from future negotiations. Losses are unlikely to be lower
than levels consistent with a Caa2 rating, and may be higher. The
review period, which may extend beyond the usual three month
horizon for reviews, will allow Moody's to assess the consequences
for investors of further steps by the current administration or by
its successor to restore the government's finances.
WHAT COULD CHANGE THE RATING - DOWN
Moody's could downgrade the rating if the review were to conclude
that losses to investors from the proposed restructurings of
government debt will not be consistent with a Caa2 rating. Such a
conclusion would most likely reflect the result of negotiations
between investors and the Argentine government, but it could also
reflect a further worsening of Argentina's fundamentals including
growth and debt.
WHAT COULD LEAD TO CONFIRMATION OF THE RATING AT THE CURRENT LEVEL
Moody's would confirm the current rating if the terms for
restructuring of medium and long term debt limit investor net
present value losses to no more than 20%, which is the limit of
Moody's expected losses for a Caa2 rated issuer.
NATIONAL SCALE RATINGS
Moody's will shortly publish an update to its National Scale Rating
(NSR) map for Argentina to reflect the downgrade of the
government's long-term issuer rating. Moody's NSRs are ordinal
rankings of creditworthiness relative to other credits within a
given country, which offer enhanced credit differentiation among
local credits. NSRs are generated from Global Scale Ratings (GSRs)
through correspondences, or maps, specific to each country.
However, unlike GSRs, Moody's NSRs are not intended to rank credits
across multiple countries. Instead, they provide a measure of
relative creditworthiness within a single country. The full maps
can be accessed through the "Index of Current and Superseded
Compendia of National Scale Rating Maps by Country". As a result of
the rating action on Argentina and the expected impact on other
ratings, the NSR mapping will be revised, from the current modified
map based on a Ba3 anchor point, to the standard map based on a B1
anchor point.
GDP per capita (PPP basis, US$): 20,537 (2018 Actual) (also known
as Per Capita Income)
Real GDP growth (% change): -2.5% (2018 Actual) (also known as GDP
Growth)
Inflation Rate (CPI, % change Dec/Dec): 47.6% (2018 Actual)
Gen. Gov. Financial Balance/GDP: -5.2% (2018 Actual) (also known as
Fiscal Balance)
Current Account Balance/GDP: -5.3% (2018 Actual) (also known as
External Balance)
External debt/GDP: 53.5% (2018 Actual)
Level of economic development: Low level of economic resilience
Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.
On August 29, 2019, a rating committee was called to discuss the
rating of the Argentina, Government of. The main points raised
during the discussion were: the issuer's fiscal or financial
strength, including its debt profile, has materially decreased; the
systemic risk in which the issuer operates has materially
increased; the issuer has become increasingly susceptible to event
risks.
The principal methodology used in these ratings was Sovereign Bond
Ratings published in November 2018.
INTEGRA PYMES: Moody's Withdraws B2 IFS Rating for Business Reasons
-------------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo, S.A.
withdrawn the B2 global local currency and A3.ar Argentine national
scale insurance financial strength ratings of Integra Pymes S.G.R.
At the time of the withdrawal the outlook of the organization was
negative (multiple).
RATINGS RATIONALE
Moody's has decided to withdraw the ratings for its own business
reasons.
The principal methodology used in these ratings was Procedures
Manual for the Rating of Guarantor Entities published in January
2017.
QBE SEGUROS: Moody's Withdraws Ba2 IFS Rating for Business Reasons
------------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo, S.A.
withdrawn the Ba2 global local currency and Aaa.ar Argentine
national scale insurance financial strength ratings of QBE Seguros
La Buenos Aires S.A. At the time of the withdrawal the outlook of
the organization was negative (multiple).
RATINGS RATIONALE
Moody's has decided to withdraw the ratings for its own business
reasons.
The principal methodology used in these ratings was Procedures
Manual for Insurance Companies published in January 2017.
=============
B A H A M A S
=============
[*] BAHAMAS: Dorian Strengthens Further as it Nears Country
-----------------------------------------------------------
EFE News reports that Dorian, an extremely powerful Category 4
hurricane, has further strengthened and currently is packing
maximum sustained winds of 230 kilometers (145 miles) per hour as
it continues on a westerly path toward the Bahamas and Florida, the
Miami-based National Hurricane Center said.
The NHC, a division of the United States' National Weather Service,
said the speed of the slow-moving hurricane's maximum sustained
winds had increased by 32 km/h over the past 12 hours, according to
EFE News.
===========
B R A Z I L
===========
BRAZIL: 2020 Budget Cuts Funding & Investment Expenditures
----------------------------------------------------------
Rio Time Online reports that the discretionary resources of the
ministries and federal agencies in 2020 will suffer a reduction of
BRL13 (US$3.25) billion compared to this year according to the
budget bill (PLOA) sent by the government to the National Congress
on Friday, August 30.
The discretionary expenditures include spending on investments and
cost of the public administration, such as payment for water,
electricity, transportation, and even scholarships, according to
Rio Time Online.
The draft 2020 Budget makes a total of BRL89.1 billion available
for these items, the report notes.
As reported in the Troubled Company Reporter-Latin America on May
27, 2019, Fitch Ratings has affirmed Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a
Stable Outlook.
BRAZIL: Business Confidence Index Drops 0.1 Points in August
------------------------------------------------------------
Rio Time Online reports that the Business Confidence Index (ICE),
measured by the Getulio Vargas Foundation (FGV), fell 0.1 points
from July to August 2019 to 93.9 points, on a scale of zero to
200.
As reported in the Troubled Company Reporter-Latin America on May
27, 2019, Fitch Ratings has affirmed Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a
Stable Outlook.
BRAZIL: States and Capital Cities Cut Investments by 52.8% in 4Yrs
------------------------------------------------------------------
Rio Time Online reports that according to a survey and report by
Brazilian newspaper Valor Economico, state and city investments in
Brazil plunged in the first half from the same period in 2015.
Considering states and capital cities, the volume fell from BRL19.5
(US$4.87) billion in the first half of 2015 to BRL9.2 billion this
year, a 52.8 percent decline, according to Rio Time Online.
The comparison is made with 2015 to consider the same period in the
electoral cycle for the two levels of public administration, the
report notes.
As reported in the Troubled Company Reporter-Latin America on May
27, 2019, Fitch Ratings has affirmed Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a
Stable Outlook.
===========================
C A Y M A N I S L A N D S
===========================
FALCON GROUP: Moody's Reviews for Upgrade Ba3 CFR
--------------------------------------------------
Moody's Investors Service placed on review for upgrade the Ba3
Corporate Family Rating and the Ba3 issuer ratings of Falcon Group
Holdings (Cayman) Limited, a company providing supply chain
management solutions to corporate clients across different
jurisdictions.
The rating action was prompted by Moody's re-assessment of Falcon's
evolving credit profile including the company's targeted evolution
of its business with the shift to higher volume and less risky
counterparties and lower balance sheet leverage. The rating agency
expects to conclude the review in the course of the fourth quarter
2019.
Moody's has also withdrawn the outlooks on Falcon's existing
corporate family and issuer ratings for its own business reasons.
The withdrawal of these outlooks has no impact on the issuer-level
rating outlook for Falcon.
RATINGS RATIONALE
The placing of Falcon's Ba3 CFR and issuer ratings on review for
upgrade reflects Moody's view that the company's targeted business
evolution, which began in 2017 and continues to this date, is
providing upward pressure on Falcon's overall credit profile.
Falcon is increasingly shifting its business mix towards mid and
large-cap customers, characterized by lower risk, lower margin and
higher volume, as compared to it past focus on higher risk, higher
margin and lower volume business generated with small and
medium-sized enterprises (SME) clients. To complement the evolution
of its business model, Falcon is also simplifying its product
range, focusing on inventory finance solutions and exiting noncore
businesses. Furthermore, Falcon is projected to paydown its
existing debt by end of calendar year 2019 and plans lower volumes
of on balance sheet financing going forward. The rating agency
expects these measures to materially improve the stability of
Falcon's earnings and cash flow and overall credit profile.
The placing on review for upgrade of Falcon's CFR and issuer
ratings also reflects the company's (1) track record of strong
profitability which provides loss absorption to creditors; (2) low
level of historical credit losses on its portfolio of global
transactions along with effective hedges in place; (3) strong
capital ratios against largely hedged credit risk; (4) established
market position within a niche market segment. The ratings are
constrained by Falcon's (1) monoline business model; (2) very high
level of concentration risk in terms of counterparty banks, hedge
providers and to a lesser extent customers; (3) key man risk; and
(4) higher propensity for operational risk as the volume of
advances increase.
During the review period, which is expected to be concluded during
the fourth quarter of 2019, Moody's will focus on the progress of
Falcon in implementing its targeted business strategy including;
(1) the planned debt repayment and any further plans for
diversifying its sources of funding for temporary on balance sheet
exposures; (2) progress in repositioning of its client base; (3)
plans to deepen and diversify its Tier 1 banking group and (4)
expected evolution of operational risk and the implications on the
company's overall credit profile. The review could result in a
multi notch upgrade of the current Ba3 CFR and of Falcon's issuer
ratings. The review will also take into account the application of
Moody's Loss Given Default for Speculative-Grade Companies and the
position of the liabilities in the company's funding structure.
WHAT COULD CHANGE THE RATING UP / DOWN
Falcon's ratings could be upgraded if Moody's concludes that (1)
Falcon will be able to maintain and grow its earnings on a
sustainable basis, (2) the risk to its capital from the expected
evolution of its strategy will be contained, and (3) the diversity
and granularity of Falcon's client base and bank relationships will
continue to improve reducing risk to its earnings.
The CFR could come under downward pressure due to a significant
increase in leverage beyond its expectations or a considerable
decline in profitability and cash flow from operations, stemming
from higher than expected credit losses or decreasing margins. The
issuer ratings may be downgraded if the group were to issue a
material amount of secured recourse debt, or other more senior
funding lines that would increase expected loss for unsecured
creditors.
LIST OF AFFECTED RATINGS
Issuer: Falcon Group Holdings (Cayman) Limited
Placed on Review for Upgrade:
Long-term Corporate Family Rating, currently Ba3, previously Stable
debt level outlook withdrawn
Long-term Issuer Ratings, currently Ba3, previously Stable debt
level outlook withdrawn
Outlook Action:
Outlook changed to Ratings under Review from Stable
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Finance
Companies published in December 2018.
=============
J A M A I C A
=============
JAMAICA: BOJ Says July Rate on Track With Inflation Target
----------------------------------------------------------
RJR News reports that the Bank of Jamaica (BOJ) said the 4.3 per
cent rate of inflation recorded for July 2019 represents the third
consecutive month that the out-turn remained within the
institution's four to six per cent target range.
In a statement, the Central Bank said the marginal 0.1 per cent
uptick, which was 1.1 per cent higher than the corresponding period
last year, mainly reflected the impact of increases in the prices
of food and electricity rates, according to RJR News.
However, the BOJ anticipates that inflation will decline to 3.7 per
cent in September, consequent on a fall in energy prices, before
rising to 4.7 per cent in December as food prices spike, consequent
on hot and dry weather conditions, the report notes.
Meanwhile, the BOJ projects that inflation will remain low, within
the three to five per cent range, over the March 2020 to June 2021
quarters, the report adds.
As reported in the Troubled Company Reporter-Latin America on June
27, 2019, RJR News said that Steven Gooden, Chief Executive Officer
of NCB Capital Markets, is warning that the increasing liquidity in
the Jamaican economy might result in heightened risk to the
financial market if left unchecked. This, he said, is against the
background of the local administration seeking to reduce the debt
to GDP to 60% by the end of the 2025/26 fiscal year, which will see
Government repaying more than J$600 billion which will get back
into the system, according to RJR News.
===========
M E X I C O
===========
CONSUBANCO SA: Fitch Affirms BB- LT IDRs, Outlook Stable
--------------------------------------------------------
Fitch Ratings affirmed the ratings for Consubanco, S.A.,
Institucion de Banca Multiple, including the bank's Long-Term
Foreign and Local Currency Issuer Default Ratings at 'BB-' and
Short-Term Foreign and Local Currency Ratings at 'B'. The Rating
Outlook for the long-term ratings is Stable.
KEY RATING DRIVERS
IDRS, VR, NATIONAL RATINGS AND SENIOR DEBT
Consubanco's IDRs, national scale and senior debt ratings are
driven by its 'bb-' VR. The bank's ratings are highly influenced by
its company profile with a concentrated business model by product
as well as its modest size in respect to the financial system
albeit with a long track record and well-positioned franchise in
payroll-deductible loans to public sector employees. The ratings
are also heavily influenced by Consubanco's less diversified
funding structure compared with its closest peers and with reliance
on wholesale funding, which is more sensitive to the market
confidence although with a reinforced liquidity risk management
with a reduction of asset-liability gaps since 2018. The ratings
reflect the bank's reasonable capital adequacy position, good
profitability and well-contained asset quality metrics.
Consubanco's ratings are constrained by the challenging operating
and competitive environment of its business segment, and the
operational and political risks inherent to its business model.
Consubanco has continued to reinforce its liquidity risk
management. In 2018 the bank performed structural changes of its
funding maturity profile to reduce asset-liability tenor
mismatches. At 2Q19, the weighted average maturity (WAM) of its
funding stood in 30 months, which compares positively respect to
first semester of 2017 (WAM: seven months). The WAM of the loan
portfolio remained around 37 months at 2Q19. Benefited by its
banking license, during 2019 the bank has focused on increasing its
deposit base, which represented around 21.5% of its total funding,
given that the bank continues concentrated on senior unsecured debt
issuances, securitizations and certificates of deposits. Fitch
expects funding to remain the bank's main challenge when trying to
achieve a diversified and less market-reliant funding structure.
The asset quality metrics of Consubanco continue to be commensurate
with the rating and to show moderate improvement; the bank's NPLs,
which include accounts receivables from employers more than 90 days
past due, have been decreasing in the last few years and stood at
5.3% as of 2Q19 (2018: 6%) and TDA stood at 9.8%. The decrease of
the ratios derivate of the strategy implemented in recent years to
focus on public entities (with a relevant percentage of retirees
and pensioners) whose payroll disbursement are made by the federal
government and on appropriate underwriting standards. Individual
borrower concentrations are not relevant due to the company's
retail nature. However the bank presents high concentrations by
employer. The largest 20 agreements represented around 40.2% of the
company's total assets and 2.7x its Fitch Core Capital (FCC).
Consubanco's profitability ratios continue in line with its current
rating category supported by lower impairment charges and contained
operational expenses, despite some pressures on earnings due to
higher interest expenses and lower growth than in previous years.
Historically, the profitability of the bank has benefited from its
relatively high interest margin. Operating Profit to Risk Weighted
Assets (RWAs) reached 4.5% in June 2019, which was higher than 2018
and 2017 with 3% and 3.7%, respectively. Albeit, Fitch expects
Consubanco will continue to focus on reducing its funding costs,
stabilizing profitability metrics at current levels will be an
important challenge for the bank, considering the aggressive
competition in the sector.
Consubanco's capitalization and leverage metrics remain at
appropriate levels, benefiting in recent years from slower loan
growth coupled with recurrent income generation. As of June 2019
its FCC to RWA ratio stood at 14.6%, higher than previous years
(average 2018-2016: 12.6%). At 2Q19 its total Regulatory Capital
ratio stood at 22.5%, above minimum requirements. While
capitalization levels could be pressured in the near future by the
dividend distribution plans, Fitch expects this metric will remain
appropriate for the current rating level given its capacity to
generate profits and the objective of the bank of maintaining
regulatory capital above 15%.
Due to the bank's business model concentration on payroll deducted
loans, it is exposed to operational, political and event risk. The
willingness and ability of public sector entities to fully disburse
retained collections usually impact asset quality and liquidity,
but Fitch believes Consubanco has partially mitigated this risk
given that around 79% of its loan portfolio corresponds to federal
entities, which tend to be operationally efficient and exhibit
virtually null delays in transferring payments. Also, the recent
change to income/risk sharing agreements with distributors could
decrease its exposure to this risk in the medium term.
SUPPORT RATING AND SUPPORT RATING FLOOR
Consubanco's support rating (SR) and support rating floor (SRF) of
'5' and 'NF', respectively, are driven by its low systemic
importance. They also reflect Fitch's opinion that government
support to the bank, although possible, cannot be relied upon.
RATING SENSITIVITIES
IDRS, VR, NATIONAL RATINGS AND SENIOR DEBT
An upgrade is possible if the bank is able to maintain its recent
improvements in funding and liquidity management. Continued
diversifying its funding base, with a greater relative contribution
of retail deposits and/or credit facilities will be positive for
the ratings. Further material strengthening of its franchise,
profitability and capitalization could also be credit positive over
time.
The bank's ratings could be downgraded upon an increase in its risk
appetite related to its liquidity risk management or due to a
reduction in its loan quality metrics that significantly impacts
its operating profitability, internal capital generation, or if its
FCC to RWA ratio (adjusted for capitalized fee expenses) falls
consistently below 11%. A material impact derived from negative
developments in political and business risks could also affect the
ratings.
SUPPORT RATING AND SUPPORT RATING FLOOR
Given the bank's limited systemic importance and the almost
incipient penetration of deposits, Fitch believes that the SR and
SRF are unlikely to change in the foreseeable future.
Fitch has affirmed Consubanco's ratings as follows:
-- Long-Term Foreign and Local Currency IDRs at 'BB-';
-- Viability Rating at 'bb-';
-- Short-Term Foreign and Local Currency IDRs at 'B':
-- Support rating at '5':
-- Support rating floor at 'NF';
-- Long-Term National-scale Rating at 'A-(mex)':
-- Short-Term National-Scale Rating at 'F2(mex)';
-- Long-Term National-Scale Rating for local unsecured debt at
'A-(mex)'.
The Outlook of the Long-Term Ratings is Stable.
INTERJET AIRLINES: Denies Report it is in Technical Bankruptcy
--------------------------------------------------------------
Interjet Airlines re-iterated the airline is not in "technical
bankruptcy" as erroneously reported by a financial news agency.
"Today an article appeared in Bloomberg Online, stating Interjet
Airlines' finance chief said Interjet Airlines is in 'technical
bankruptcy'," said Julio Gamero, Interjet's Chief Commercial
Officer. "Nothing is farther from the truth. In fact, Interjet is
on a more solid financial foundation than any other Mexican
airline. Again, Bloomberg's reporting is rife with misinformation,
alternative facts and wrong assumptions about the airline," Gamero
added.
Interjet Airlines is in a dispute with Mexico's Tax Administration
Service (SAT), related to alleged taxes owed by the airline. An
attempt by SAT to seize control of the airline's bank accounts in
an effort to collect the alleged taxes was denied by the courts and
the airline is in negotiation with the tax authorities to determine
what back taxes are actually due.
"If it's determined taxes are owed, we will pay them," said Raul
Lopez Martinez, Interjet's Chief Financial Officer. "Regardless,
any payments to be made to the tax authorities will have minimal
impact on the operations of the airline," he added.
Interjet Airlines continues to experience robust results with
international traffic growing double-digit year-over-year and
domestic passenger counts increasing as well. The airline's unique
brand of service, offering business and leisure travelers
everywhere they fly competitive prices with free checked bags on
select fares, more legroom between seats and excellent onboard
service including free food and beverage and drinks, continues to
resonate with its customers.
About Interjet
Interjet is an international airline based in Mexico City carrying
almost 14 million passengers annually within Mexico and between
Mexico, the United States, Canada, Central, and South America. In
all, it provides air service to 54 destinations in 10 countries
offering its passengers greater connections and travel options
through agreements with major airlines such as Alitalia, All Nippon
Airways (ANA), American Airlines, British Airways, Emirates, Air
Canada, LATAM Group, EVA Air, Iberia, Lufthansa, Hainan Airlines,
Hahn Air, Qatar Airlines and Japan Airlines.
MAXCOM USA: Drinker, Jewell Represent Ad Hoc Group of Noteholders
-----------------------------------------------------------------
In the Chapter 11 cases of Maxcom USA Telecom, Inc., et al., the
law firms of Drinker Biddle & Reath LLP and Ronald R. Jewell, Esq.
submitted a verified statement pursuant to Rule 2019 of the Federal
Rules of Bankruptcy Procedure to disclose that they are
representing Moneda, Moneda Deuda, LarranVial, UBS Clients and
Fratelli.
On or around August 19, 2019, Noteholders retained Drinker Biddle
and Mr. Jewell to represent them in litigation against the debtors,
Maxcom USA Telecom, Inc. and Maxcom Telecomunicaciones, S.A.B. DE
C.V.
Drinker Biddle represents only the interests of Noteholders and
does not represent or purport to represent any other entities in
connection with the Chapter 11 Case. Upon information and belief
formed after due inquiry, Drinker Biddle does not hold any
disclosable economic interests in relation to the Debtors.
Mr. Jewell represents only the interests of Noteholders and does
not represent or purport to represent any other entities in
connection with the Chapter 11 Case. Upon information and belief
formed after due inquiry, Mr. Jewell does not hold any disclosable
economic interests in relation to the Debtors.
As of August 28, 2019, members of the Ad Hoc Group and their
disclosable economic interests are:
(1) Moneda Latin American Corporate Debt
c/o Moneda Asset Management
444 Madison Av, 8th floor
New York, NY 10022
USA
* Step-Senior Notes due 2020: $2,588,241
(2) Moneda Deuda Latinoamericana Fondo de Inversion
c/o Moneda Asset Management
444 Madison Av, 8th floor
New York, NY 10022
USA
* Step-Senior Notes due 2020: $12,579,245
(3) Fondo Larrain Vial Renta Fija Latinoamericana
c/o LarrainVial Asset Management
Isidora Goyenechea 2800
15th Floor, Las Condes
Santiago, Chile
* Step-Senior Notes due 2020: $1,565,482
(4) Fratelli Investments Ltd.
c/o Megeve Investments
Calle Espoz 3150 oficina 401
Vitacura, Santiago, Chile
* Step-Senior Notes due 2020: $3,628,906
(5) SKB Trust
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $2,477,605.00
(6) Jai-18 Investments Ltd.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $1,222,000.00
(7) Macapix International Inc.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $1,105,500.00
(8) MKB Trust
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $982,690.00
(9) MAV Trust
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $814,666.00
(10) Tortona Capital Ltd.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $650,000.00
(11) Inversiones San Felipe Inc.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $562,832.00
(12) Arkon CV
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $509,167.00
(13) Guipuzcoa Ltd.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $407,333.00
(14) Barham Corporation
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $407,333.00
(15) Kingland Holding Investments Ltd.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $400,000.00
(16) Barahona Flores
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $305,500.00
(16) Kifenor SA
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $254,583.00
(17) Niscaly SA
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $254,583.00
(18) Fradon Trading Inc.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $250,000.00
(19) Maistral Corp.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $203,666.00
(20) Cove Creek SAI Ltd.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $203,666.00
(21) Edificio Nebur SA
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $203,666.00
(22) Munuga LLC
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $203,666.00
(23) Gilmore Group Holdings Inc.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $198,575.00
(24) Inversiones Cholito Limitada
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $164,666.00
(25) Jacques Claudio Stivelman
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $160,999.00
(26) Viola, Marco
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $152,750.00
(27) PDC Investments Ltd.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $152,750.00
(28) Schibli, Paloma
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $150,000.00
(29) Marakena Corp.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $137,475.00
(30) Maria Eleonora Wroblewsky
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $120,000.00
(31) Amunategui, Miguel
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $101,833.00
(32) Stivelman, Marcia
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $101,833.00
(33) Barahona, Hernan
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $101,833.00
(34) Andina Holding Corp.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $101,833.00
(35) Emy CV Ltd.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $203,666.00
(36) Barham Corporation
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $101,833.00
(37) Tamarila Corp.
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $101,833.00
(38) Elfenbein Kaufmann, Julian
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $101,833.00
(39) Errazuriz Arnolds, Cecilia
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $101,833.00
(40) Guendelman, Andrea
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $101,833.00
(41) Mayo, Fernando
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $101,833.00
(42) Von Krammer Kuhn, Ladislao
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $51,833.00
(43) Talmaciu, Isaac
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $30,000.00
(44) Mulina
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $711,126.00
(45) Jorge Sanchez y Otros
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $509,166.00
(46) Notro
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $712,833.00
(47) Dressar
c/o UBS Financial Services Inc.
1251 Avenue of the Americas Second Floor
New York, NY 10020
* Step-Senior Notes due 2020: $509,166.00
(48) Alkaner Assets LTD (Beta Capital)
PO Box 957
Offshore Incorporations
Centre Tortola, Road Town
British Virgin Islands
* Step-Senior Notes due 2020: $7,740,351
Counsel to the Ad Hoc Group of Noteholders can be reached at:
DRINKER BIDDLE & REATH LLP
James H. Millar, Esq.
Frank F. Velocci, Esq.
Brian P. Morgan, Esq.
1177 Avenue of the Americas, 41st Floor
New York, NY 10036-2714
Telephone: (212) 248-3140 (Main)
Facsimile: (212) 248-3141
E-mail: james.millar@dbr.com
frank.velocci@dbr.com
brian.morgan@dbr.com
- and -
Ronald R. Jewell, Esq.
105 Fillmore Street, Unit 206
Denver, CO 80206-4903
Telephone: (646) 919-0762
Facsimile: (845) 414-3426
E-mail: rrjewell1949@outlook.com
About Maxcom USA Telecom
Maxcom Telecomunicaciones, S.A.B. DE C.V is a limited liability
public stock corporation (sociedad anonima burstatil de capital
variable) with indefinite life, organized under the laws of Mexico
in 1996. Maxcom USA is a wholly owned subsidiary of Maxcom Parent
organized under the laws of New York in 2019. The Debtors are an
integrated telecommunication services operator providing voice and
data services to residential and small- and medium-sized business
customers in markets that the Debtors believed were underserved by
Telefonos de Mexico, S.A.B. de C.V., the local telecommunication
incumbent, and other competing telecommunications providers.
Maxcom USA Telecom, Inc., and Maxcom Telecomunicaciones, S.A.B. de
C.V., filed voluntary Chapter 11 petitions (Bankr. S.D.N.Y. Lead
Case No. 19-23489) on Aug. 19, 2019.
At the time of filing, Maxcom USA's estimated assets was $100,000
to $500,000 and liabilities was $0 to $50,000. Maxcom
Telecomunicaciones' estimated assets and liabilities was $100
million to $500 million.
The cases are assigned to Hon. Robert D. Drain.
The Debtors' counsel is Pedro A. Jimenez, Esq., and Irena
Goldstein, Esq., at Paul Hastings LLP, in New York. The Debtors'
financial advisor is Alvarez & Marsal Mexico. Prime Clerk LLC
serves as the Debtors' noticing, balloting and claims
administration agent, and maintains the website
https://cases.primeclerk.com/maxcom/
=====================
P U E R T O R I C O
=====================
SEARS HOLDINGS: Another 100 Stores Reportedly Slated for Closing
----------------------------------------------------------------
USA Today's TCPalm.com reported that nearly 100 additional Kmart
and Sears stores are slated for closing by the end of 2019.
According to the report, while company officials did not release an
official list of the locations closing, news outlets across the
nation reported that their local stores were closing.
A list was posted on the website thelayoff.com with more than 80
Kmart stores:
* CA/Camarillo - 7165 / 940 knell Rd Camarillo 93010
* CA/North Hollywood - 4421 /13007 Sherman Way N. Hollywood
* CA/Oakdale - 3842 / 175 Maag Ave. Oakdale 95361
* CA/Salinas - 3412 / 1050 N. Davis Rd. Salinas 93907
* CA/Tehachapi - 4751 / 710 W.Tehachapi Blvd Tehachapi 93561
* CO/Pueblo - 4453 / 3415 N Elizabeth St Pueblo 81008
* CT/Watertown - 7109 / 595 Straits Tpke Watertown 06795
* DE/Bear - 4807 / 301 Governor Place Bear 19701
* DE/Wilmington - 3873 / 4700 Limestone Rd. Wilmington 19808
* FL/Miami - 4728 / 3825 7th St NW Miami 33126
* FL/Vero Beach - 7294 / 1501 US-1 Vero Beach 32960
* ID/Lewiston - 7033 / 1815 21st St Lewiston 83501
* ID/Twin Falls - 7006 / 2258 Addison Ave E Twin Falls 83301
* IL/Bridgeview - 4381 / 7325 W 79th St Bridgeview 60455
* IN/Kokomo - 7243 / 705 N Dixon Rd Kokomo 46901
* IN/Richmond - 7246 / 3150 National Rd W Richmond 47374
* IN/Valparaiso - 7042 / 2801 Calumet Ave Valparaiso 46383
* KY/Erlanger - 3029 / 3071 Dixie Hwy Erlanger 41018
* KY/Somerset - 7255 / 411 Russet Dyche Hwy Somerset 42501
* MA/Brockton - 4407 / 2001 Main Si Brockton 02301
* MA/Webster - 9692 / 70 Worcester Rd Webster 01570
* MD/Stevensville - 7673 / 200 Kent Landing Stevensville 21666
* ME/Auburn - 3021 / 603 Center St Auburn 04210
* ME/Augusta - 7133 / 58 Western Ave Augusta 04330
* MI/Belleville - 3155 / 2095 Rawsonville Rd Belleville 48111
* MI/Clio - 9385 / 4290 Vienna Rd Clio 48420 OWNED
* MI/Grayling - 9557 / 2425 S.1-75 Business Grayling 49738
* MI/Hastings - 3819 / 802 W. State St Hastings 49058
* MI/Menominee - 7031 / 1101 7th Ave Menominee 49858
* MI/Midland - 7068 / 1820 S. Saginaw Rd Midland 48640
* MI/Oscoda - 9593 / 5719 N US-23 Oscoda 48750
* MN/International Falls - 9689 / 1606 MN-11 Int'l Falls 56649
* MN/St Paul - 3059 / 245 E Maryland Ave. St Paul 55117
* MT/Kalispel - 7030 / 2024 US-2 E Kalispel 59901
* NC/Clemmons - 7208 / 2455 Lewisville Clemmons 27012
* NC/Waynesville - 7626 / 1209 Russ Ave Waynesville 28786
* ND/Fargo - 4057 / 2301 S University Dr Fargo 58103
* NJ/Somers Point - 9463 / 250 New Road (Rt 9) S. Point 08244
* NJ/Trenton - 4478 / 1061 Whitehorse Ave Trenton 08610
* NJ/Wall - 7602 / 1825 State Hwy 35 Wall 07719
* NJ/Wayne - 3056 / 1020 Hamburg Tpke. Wayne 07470
* NM/Santa Fe - 3301 / 1712 St Michaels Dr Santa Fe 87501
* NY/Bath - 9589 / 420 W Morris St Bath 14810
* NY/Buffalo - 3415 / 1001 Hertel Ave Buffalo 14216
* NY/Mattydale - 4034 / 2803 Brewerton Rd. Mattydale 13211
* NY/Yorktown Heights - 9414 / 355 Downing Dr. Y. Heights 10598
* OH/Barberton - 7383 / 241 Wooster Rd. N Barberton 44203
* OH/Brunswick - 3286 / 3301 Center Rd Brunswick 44212
* OH/Grove City - 7397 / 2400 Stringtown Rd Grove City 43123
* OH/Harrison - 7644 / 10560 Harrison Ave Harrison 45030
* OK/Clinton - 4782 / 2501 Redwheat Dr Clinton 73601
* PA/Chambersburg - 3225 / 1005 Wayne Ave Chambersburg 17201
* PA/Clifton Heights - 7293 / 713 E Baltimore Pike C. Heights
* PA/Doylestown - 3737 / 4377 PA-313 Doylestown 18902
* PA/Easton - 7192 / 320 S 25th St. Easton 18042
* PA/Holmes - 3597 / 600 MacDade Blvd Holmes 19043
* PA/Leechburg - 7372 / 451 Hyde Park Rd Leechburg 15656
* PA/New Castle - 7083 / 2650 Elwood Rd. New Castle 16101
* PA/Shillington - 3136 / 1 Parkside Ave. Shillington 19607
* PA/Towanda - 4713 / 328 Ennis Lane Towanda 18848
* PA/Walnutport - 3954 / 400 N Best Ave Walnutport 18088
* PR/Aguadilla - 4732 / Road 2 Km 126.5 Aguadilla 00605
* PR/Cagey - 7446 / Ave Jesus T Pinero 4 Cagey 00736
* PR/Carolina - 7665 / 65th Infantry Avenue Carolina 00985
* PR/Yauco - 7752 / 601 Yauco Plaza Yauco 00698
* SC/Greenville - 4016 / 1 Kmart Plaza Greenville 29605
* SC/Lexington - 7616 / 748 W Main St Lexington 29072
* SC/West Columbia - 4141 / 1500 Charleston Hwy West Columbia
* TN/Lebanon - 9621 / 1443 W Main St Lebanon 37087
* UT/St George - 9794 / 745 S Bluff St George 84770
* VA/Chesapeake - 3471 / 2001 S Military Hwy Chesapeake 23320
* VA/Tabb - 3785 / 5007 Victory Blvd Tabb 23693
* WI/Mauston - 7648 / 800 N. Union St Mauston 53948
* WI/Racine - 3851 / 5141 Douglas Ave Racine 53402
* WI/Ripon - 7649 / 1200 W Fond duLac St Ripon 54971
* WV/Etkview - 3484 / 201 Crossings Mall Etkview 25071
In early August, the Company had announced that they are closing 26
Sears and Kmart locations by October 2019.
Former Sears CEO Eddie Lampert, in February 2019 reached a deal to
purchase the assets of Sears and Kmart out of bankruptcy and keep
about 400 stores open.
As of Aug. 7, company spokesman Larry Costello, according to
TCPalm, said about 380 locations remained open.
About Sears Holdings
Sears Holdings Corporation (NASDAQ: SHLD) --
http://www.searsholdings.com/-- began as a mail ordering catalog
company in 1887 and became the world's largest retailer in the
1960s. At its peak, Sears was present in almost every big mall
across the U.S., and sold everything from toys and auto parts to
mail-order homes. Sears claims to be is a market leader in the
appliance, tool, lawn and garden, fitness equipment, and automotive
repair and maintenance retail sectors.
Sears and Kmart merged to form Sears Holdings in 2005 when they had
3,500 US stores between them. Kmart emerged in 2005 from its own
bankruptcy.
Unable to keep up with online stores and other brick-and-mortar
retailers, a long series of store closings has left it with 687
retail stores in 49 states, Guam, Puerto Rico, and the U.S. Virgin
Islands as of mid-October 2018. The Company employs 68,000
individuals, of whom 32,000 are full-time employees.
As of Aug. 4, 2018, Sears Holdings had $6.93 billion in total
assets, $11.33 billion in total liabilities and a total deficit of
$4.40 billion.
Unable to cover a $134 million debt payment due Oct. 15, 2018,
Sears Holdings Corporation and 49 subsidiaries sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 18-23538) on Oct. 15,
2018.
The Hon. Robert D. Drain is the case judge.
The Debtors tapped Weil, Gotshal & Manges LLP as legal counsel;
M-III Partners as restructuring advisor; Lazard Freres & Co. LLC as
investment banker; DLA Piper LLP as real estate advisor; and Prime
Clerk as claims and noticing agent.
The U.S. Trustee for Region 2 appointed nine creditors, including
the Pension Benefit Guaranty Corp., and landlord Simon Property
Group, L.P., to serve on the official committee of unsecured
creditors. The committee tapped Akin Gump Strauss Hauer & Feld LLP
as legal counsel; FTI Consulting as financial advisor; and Houlihan
Lokey Capital, Inc. as investment banker.
The U.S. Trustee for Region 2 on July 9, 2019, appointed five
retirees to serve on the committee representing retirees with life
insurance benefits in the Chapter 11 cases.
SPANISH BROADCASTING: Posts $1.76 Million Net Loss in 2nd Quarter
-----------------------------------------------------------------
Spanish Broadcasting System, Inc., filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q reporting a
net loss of $1.76 million on $36.93 million of net revenue for the
three months ended June 30, 2019, compared to a net loss of $1.99
million on $34.78 million of net revenue for the three months ended
June 30, 2018.
For the six months ended June 30, 2019, the Company reported a net
loss of $5.70 million on $74.28 million of net revenue compared to
a net loss of $5.36 million on $68.68 million of net revenue for
the same period during the prior year.
As of June 30, 2019, the Company had $454.09 million in total
assets, $539.17 million in total liabilities, and a total
stockholders' deficit of $85.07 million.
Discussion and Results
"Our second quarter results once again validate the Company's
strategic and operational strengths and give further evidence as to
our standing as the undisputed leader in Hispanic radio, as well as
one of the premier radio owner/operators in the nation's largest
markets," commented Raul Alarcon, chairman and CEO.
"During the quarter, Management's focus on operations yielded
superior metric results in all of the major facets of our Company's
operations: ratings (top rankings in all core markets, including
the #1 AND #2 Spanish-language stations in the two largest radio
markets of New York and Los Angeles, as well as 3 out of the 4
most-listened-to Hispanic stations in America), revenues and
adjusted OIBDA growth, while maintaining industry-leading radio
margins of 44%."
"Our radio, television, interactive and live events businesses are
growing and our 250+ affiliate radio network will have one of its
best sales years since commencing operations."
"Looking forward, we will continue to focus on growing our core
revenue while adhering to strict cost controls to further solidify
and expand our operating margins. We fully expect 2019 to be, in
all respects, another banner year for SBS."
A full-text copy of the Form 10-Q is available for free at:
https://is.gd/ux8CLb
About Spanish Broadcasting
Based in Miami, Florida, Spanish Broadcasting System, Inc.
(OTCMKTS:SBSAA) -- http://www.spanishbroadcasting.com/-- owns and
operates radio stations located in the top U.S. Hispanic markets of
New York, Los Angeles, Miami, Chicago, San Francisco and Puerto
Rico, airing the Tropical, Regional Mexican, Spanish Adult
Contemporary, Top 40 and Urbano format genres SBS also operates
AIRE Radio Networks, a national radio platform of over 250
affiliated stations reaching 94% of the U.S. Hispanic audience.
SBS also owns MegaTV, a network television operation with
over-the-air, cable and satellite distribution and affiliates
throughout the U.S. and Puerto Rico, produces a nationwide roster
of live concerts and events, and owns a stable of digital
properties, including La Musica, a mobile app providing
Latino-focused audio and video streaming content and HitzMaker, a
new-talent destination for aspiring artists.
Spanish Broadcasting reported net income of $16.49 million for the
year ended Dec. 31, 2018, compared to net income of $19.62 million
for the year ended Dec. 31, 2017. As of March 31, 2019, the
Company had $455.09 million in total assets, $538.40 million in
total liabilities, and a total stockholders' deficit of $83.31
million.
Crowe LLP, in Fort Lauderdale, Florida, the Company's auditor since
2013, issued a "going concern" opinion in its report dated April 1,
2019, on the Company's consolidated financial statements for the
year ended Dec. 31, 2018, citing that the 12.5% Senior Secured
Notes had a maturity date of April 15, 2017. Cash from operations
or the sale of assets was not sufficient to repay the notes when
they became due. In addition, at Dec. 31, 2018 the Company had a
working capital deficiency. These factors raise substantial doubt
about its ability to continue as a going concern.
=================
V E N E Z U E L A
=================
VENEZUELA: Minimum Wage Hits Rock Bottom at $2.00 a Month
---------------------------------------------------------
Hector Pereira Caracas at EFE News reports that for the first time,
millions of Venezuelans were paid $1.00 for their half-monthly
wages or pensions, as the unprecedented crisis lowered the monthly
minimum wage to $2.00 and has most citizens living in misery with
no sign the situation will improve anytime soon.
With the US dollar worth around 20,000 bolivars, the minimum wage
of 40,000 bolivars set by the government is worth $2.00 a month,
not enough to buy a kilo (2 pounds) of meat or a carton of eggs,
according to EFE News.
Between retirees and working employees there are almost 10 million
people who were paid the equivalent of 1 dollar Aug. 30, according
to the official quote of the Banco Central (BCV), because on the
parallel market, which governs all economic activity, the local
currency is even more devalued.
Being optimistic and with a little luck, any Venezuelans who earn
that amount monthly can buy a pack of corn flour and a kilo (2
lbs.) of sugar, the report notes. Once those products are used up
in two or three days, they'll have to wait until the next payday to
replenish their larders, the report relays.
Over the last 30 days, the local currency--the bolivar--was
devalued 50 percent against the dollar, which now costs double the
amount it did at the end of July, all within a hyperinflation that
boosts the prices of goods and services several times a day, the
report discloses.
However, the government does deposit bonuses almost monthly to some
10 million Venezuelans for different reasons, but never more than
100,000 bolivars, or $5.00, which will buy 2 kilos (4 lbs.) of
detergent, the report notes.
Meanwhile, some companies pay their employees bonuses in dollars so
they won't quit, while more than a million families receive
remittances from the approximately five million Venezuelans who
fled the country over the last six years to escape the crisis, the
report relays.
But none of this appears to do much to resolve the collapse of
purchasing power in the country with the world's largest petroleum
reserves, where some 80 percent of the population now eats less
than they did five years ago, and the less fortunate in their
hundreds of thousands eat scarcely once a day, the report notes.
"We're like goats, eating grass," EFE was told by Alberto
Rodriguez, 70, as he bought what he could at a market in the
Caracas municipality of Chacao. Everything is "super expensive,"
he said, but added that he wasn't surprised because Venezuela has
suffered hyperinflation for two years now, he said.
"Every day prices get higher . . . it's an atrocity," he added,
notes the report.
The report relays that Rodriguez said the minimum wage doesn't buy
anything, an observation shared by young Valentina Fernandez, who
couldn't think of a single product that cost less than 40,000
bolivars--the minimum wage.
"Nothing costs 40,000 bolivars. I sell deli food, and I can tell
you it doesn't buy anything, not the most economical item, not
cheese that costs 50,000 bolivars a kilo," said the storekeeper,
the report notes.
The few customers at the once busy market reflect a national
reality--the cataclysmic drop in shopping and the 50 percent
contraction of the economy since Nicolas Maduro took power in 2013,
the report adds.
About Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and
islets in the Caribbean sea. The capital is the city of Caracas.
Hugo Chavez was president to Venezuela from 1999 to 2013. The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum. Nicolas Maduro was elected president in 2013 after
the death of Chavez. Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.
The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis. It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.
Standard and Poor's long- and short-term foreign currency
sovereign credit ratings for Venezuela stands at 'SD/D'
(November 2017).
S&P's local currency sovereign credit ratings on the other hand
are 'CCC-/C'. The May 2018 outlook on the long-term local currency
sovereign credit rating is negative, reflecting S&P's view that
the
sovereign could miss a payment on its outstanding local currency
debt obligations or advance a distressed debt exchange operation,
equivalent to default.
Moody's credit rating (long term foreign and domestic issuer
ratings) for Venezuela was last set at C with stable outlook
(March 2018).
Fitch's long term issuer default rating for Venezuela was last set
at RD (2017) and country ceiling was CC. Fitch, on June 27, 2019,
affirmed then withdrew the ratings due to the imposition of U.S.
sanctions on Venezuela.
*********
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 * * *