/raid1/www/Hosts/bankrupt/TCRLA_Public/190912.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
Thursday, September 12, 2019, Vol. 20, No. 183
Headlines
A R G E N T I N A
ARGENTINA: Public Employees Demand Pay Raises Amid High Inflation
B R A Z I L
PETROLEO BRASILEIRO: Fitch Rates Exchange Notes 'BB-'
PETROLEO BRASILEIRO: Moody's Rates Unit's Proposed Global Notes Ba2
PETROLEO BRASILEIRO: S&P Rates Unit's New Sr. Unsec. Notes 'BB-'
H O N D U R A S
HONDURAS: Severe Drought Takes Heavy Toll on Farmers, Ranchers
J A M A I C A
JAMAICA: Gets First Report on Use of Funds in Dormant Bank Accounts
M E X I C O
UNIQUE TOOL: U.S. Trustee Forms 5-Member Committee
P U E R T O R I C O
NOSCE TE IPSUM: Case Summary & 9 Unsecured Creditors
NUTRITION CARE: Discloses More Info on Intercompany Transactions
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Faces Multimillion Claim From Chinese Firm
V E N E Z U E L A
VENEZUELA: Launches Military Exercises on Colombian Border
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A R G E N T I N A
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ARGENTINA: Public Employees Demand Pay Raises Amid High Inflation
-----------------------------------------------------------------
EFE News reports that Argentine public employees went on strike to
demand pay raises amid high inflation and call for the
reinstatement of people laid off in recent months.
Demonstrations were held across the South American country, with
the main rally taking place in Buenos Aires, according to EFE
News.
The Association of State Workers (ATE) and the CTA Autonomous union
called for the nationwide job action at a time of a further
escalation of the country's long-standing economic crisis, which
dates back to April 2018, the report notes.
Argentine stocks and the peso plunged after market-friendly
President Mauricio Macri performed more poorly than expected in
primary elections on Aug. 11, and the government has acknowledged
that the renewed currency weakness will be reflected in the August
inflation figure, the report relays.
Argentina's annual inflation rate stood at 54.5 percent in July,
although consumer prices had been decelerating before the crisis
re-erupted last month, the report notes.
"The measure is aimed at demanding the reinstatement of all
laid-off workers, a reopening of salary (negotiations), the
reestablishment of all programs that were withdrawn, the rejection
of the stability agreement between the government and the UPCN
(National Union of Civilian Personnel)," the ATE said in a
statement obtained by the news agency.
Unions in each economic sector in Argentina negotiate
inflation-adjusted salary increases with public entities, the
report notes.
But many of those agreements have become outdated because
consumer-price hikes have far outpaced the contractually
agreed-upon wage increases, the report discloses.
The main rally in Buenos Aires followed a route frequently used by
demonstrators--from 9 de Julio Avenue to the Plaza de Mayo, where
the presidential palace is located, the report relays.
EFE News notes that Macri's administration has suffered through a
particularly rocky stretch in recent weeks, with different sectors
holding anti-government demonstrations and the incumbent losing out
to center-left rival Alberto Fernandez by a whopping
16-percentage-point margin in the August primary elections.
That result signaled that Macri has a big uphill battle to win
re-election on Oct. 27 (a second round will be held if needed on
Nov. 24), the report says.
The secretary-general of the ATE, Hugo Godoy, told EFE that the
steps taken by Macri's administration since the election debacle to
address the economic crisis have been "too little, too late."
"The disaster they've created with the measures they've adopted is
so big that (the new ones) are like using a Band-Aid to fight
cancer," Godoy said at the demonstration in Buenos Aires, the
report notes.
"Macri's government, following the orders of the International
Monetary Fund, accelerated capital flight and the country's
economic meltdown and multiplied poverty and hunger," Godoy said,
referring to austerity measures adopted as part of a record $57
billion bailout deal last year with the IMF, the report discloses.
The ATE's secretary-general said that some public employees in
Argentina--where around 32 percent of the population is under the
poverty line--now receive a salary that is below the cost of the
basic food basket, the report says.
The government responded to the plunging stock prices and sharp
depreciation of the peso (which fell to as low as 63 per greenback,
although it now stands at around 57) by imposing capital controls
on Sept. 2, the report notes.
Among other measures adopted then in a bid to stabilize financial
markets, Macri restricted dollar purchases by individuals to
$10,000 per month and required exporters to bring back to the
country all hard currency from their sales abroad, the report
says.
Those measures were surprising because one of Macri's first moves
when he took office in late 2015 was to remove capital controls,
the report relates.
Macri's administration also recently has taken other steps aimed at
alleviating economic hardship, including suspending the value-added
tax on basic goods and temporarily freezing gasoline and diesel
prices, the report adds.
About Argentina
As reported in the Troubled Company Reporter-Latin America on Sept.
5, 2019, Fitch Ratings has upgraded Argentina's Long-Term
Foreign-and Local-Currency Issuer Default Ratings to 'CC' from
'RD', and its Short-Term Foreign- and Local-Currency IDRs to 'C'
from 'RD'. The issue ratings on Argentina's senior unsecured
foreign-currency bonds remain at 'CC'. Fitch has downgraded the
Country Ceiling to 'CCC' from 'B-'. The rating action follows
several weeks of extreme financial instability triggered by the
adverse market reaction to the results of primary elections on
August 11.
On Sept. 4, 2019, the TCRLA reported that S&P Global Ratings raised
on Aug. 30, 2019, its foreign and local currency sovereign credit
ratings on Argentina to 'CCC-/C' from 'SD'. The outlook on the
long-term ratings is negative. In addition, S&P raised its
short-term issue ratings to 'C' from 'D'. S&P also raised the
national scale rating to 'raCCC-'from 'SD'. S&P said, "The negative
outlook reflects the prominent downside risks to payment of debt on
time and in full per our criteria over the coming months amid very
complex political, economic, and financial market dynamics. S&P
previously lowered its sovereign credit ratings on Argentina to
'SD' from a long-term rating of 'B-' and a short-term rating of 'B'
on Aug. 29, 2019.
On Sept. 3, 2019, the TCRLA reported that Moody's Investors Service
downgraded 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.
Back in July 2014, Argentina defaulted on some of its debt, after
expiration of a 30-day grace period on a US$539 million interest
payment. Earlier that day, talks with a court-appointed mediator
ended without resolving a standoff between the country and a group
of hedge funds seeking full payment on bonds that the country had
defaulted on in 2001. A U.S. judge had ruled that the interest
payment couldn't be made unless the hedge funds led by Elliott
Management Corp., got the US$1.5 billion they claimed. The country
hasn't been able to access international credit markets since its
US$95 billion default 13 years ago. On March 30, 2016, Argentina's
Congress passed a bill that will allow the government to repay
holders of debt that the South American country defaulted on in
2001, including a group of litigating hedge funds that won
judgments in a New York court. The bill passed by a vote of 54-16.
===========
B R A Z I L
===========
PETROLEO BRASILEIRO: Fitch Rates Exchange Notes 'BB-'
-----------------------------------------------------
Fitch Ratings has assigned a 'BB-' long-term rating to Petroleo
Brasileiro S.A.'s exchange notes offering due 2030. The new notes
will be issued out of Petrobras Global Finance B.V., a wholly own
subsidiary of Petrobras. Petrobras has launched an offer to
exchange any and all of seven different outstanding notes for new
notes. Petrobras intends to tender with cash up to USD3 billion of
the same outstanding notes as part of the offer.
Petrobras' Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) are 'BB-' and its National Scale rating is 'AA
(bra)'. The Rating Outlook is Stable. Petrobras' Standalone Credit
Profile (SCP) is commensurate with a 'BB+' and its ratings are
capped by Brazil's sovereign ratings (IDR BB-/Stable) due to
government's strong ownership and potential control, and the
company's strategic importance to the country. The Stable Outlook
for Petrobras's Long-Term Foreign and Local Currency IDRs reflects
the Stable Outlook for Brazil's sovereign rating.
Petrobras' dominant market share in the supply of liquids fuels in
Brazil coupled with its large hydrocarbon production footprint in
the country exposes the company to government intervention through
pricing policies and investment strategies. Petrobras' ratings
reflect the very strong support incentives Brazil has towards the
company as a result of its strategic importance for the country.
This is supported by Petrobras leadership position in the Brazilian
domestic energy market. Petrobras' ratings also reflect the strong
linkage between Petrobras and Brazil resulting from the Brazilian
government's majority ownership and strong support track record.
KEY RATING DRIVERS
Linkage to the Sovereign: Petrobras' ratings are capped by Brazil's
sovereign ratings and reflect the government's very strong
incentive to support the company due to its strategic importance as
the largest supplier of liquid fuels in the country. Petrobras'
ratings also reflect its strong linkage with the sovereign of
Brazil, due to the government's control of the company. By law, the
federal government must hold at least a majority of Petrobras'
voting stock. The government owns 60.4% of Petrobras' voting
rights, directly and indirectly, and has a 42.7% overall economic
stake.
Improving SCP: Petrobras' SCP materially improved during 2018, as
the company used proceeds from higher oil prices and asset sales to
significantly reduce its debt by approximately USD25 billion, or
23%. Petrobras' SCP of 'BB+' reflects its capital structure
improvement over the past three years and Fitch's expectation that
the company will maintain or further improve its capital structure.
As of the LTM ended June 2019, Petrobras' leverage, as measured by
net debt to EBITDA, had decreased to approximately 2.7x from its
peak of more than 5.0x at YE2015; total financial debt decreased to
USD75.5 billion from USD126.0 billion in the same period.
Strong Cash Flow Generation: Petrobras' improving SCP reflects its
decreasing debt and robust cash flow generation. During the LTM
ended June 2019, the company reported EBITDA of USD30 billion, up
from an average of approximately USD24 billion over the previous
three years, while total financial debt decreased by one-third to
USD75.5 billion as of June 2019 from USD126.0 billion as of YE2015.
Petrobras reported positive Fitch-defined FCF of USD7 billion in
the LTM ended June 2019. Fitch expects Petrobras to continue
reporting positive FCF over the rating horizon while investing
enough to replenish reserves. The company reported flat production
of 2.6 million barrels of oil equivalent per day (boed), marginally
lower than 2017, partially due to asset sales as well as production
depletions. Proved reserves were relatively unchanged at 9.6
billion boe, which gives the company a reserve life of
approximately 11 years.
Supportive Government: Petrobras' credit quality has materially
benefited from the Brazilian government's indirect support during
times of distress. The government has provided liquidity through
government-controlled financial institutions, changed regulations
that negatively affected Petrobras' cash flow and at times allowed
the company to implement beneficial pricing policies. The
government also allows the company to significantly reduce
dividends and curb downstream investments, which, together with
asset sales, allowed Petrobras to strengthen its capital structure
and improve its SCP. Fitch estimates the company will modestly
increase dividend payments as its capital structure approaches the
company's target of 1.5x net debt to adjusted EBITDA.
Potential Political Meddling: The potential return of stronger
political meddling into Petrobras' strategy, noticeably through
interference in domestic gasoline and diesel pricing mechanisms,
would negatively affect its cash flow generation and SCP. This is
particularly significant during times of Brazilian real
depreciation against the dollar, which would increase domestic
gasoline and diesel prices and heighten interference risk. During
2018, the government established provisional measures to fix and
subsidize diesel prices to ease mounting social pressure over fuel
price volatility. This marginally increased the company's cash flow
exposure to receipt of government subsidies while the program was
in place until year-end.
Marginal Production Growth: Fitch's rating case assumes Petrobras'
gross production will increase to approximately 3.5 million boed by
2022, in line with the company's guidelines. Production growth is
expected to remain driven by the company's development of its
pre-salt assets and planned capex for the next five years of
USD84.1 billion. Approximately 57% of Petrobras' production of 2.6
million boed came from pre-salt formation in the second quarter of
2019. Petrobras' marginal production decline of 5% between 2017 and
2018 is primarily the result of asset sales and production
depletion. The company's production is poised to increase in the
short term as operation of recently incorporated production
platforms ramp-up.
DERIVATION SUMMARY
Petrobras' linkage to the sovereign is similar in nature to its
peers, namely Petroleos Mexicanos (PEMEX; BB+/Negative) and
Ecopetrol S.A. (BBB/Stable). Petrobras also compares with Empresa
Nacional del Petroleo (ENAP) (A/Stable), and Petroleos del Peru -
Petroperu (BBB+/Stable). All have strong linkages to their
respective sovereigns, given their strategic importance and the
potentially significant negative social-political and financial
implication a default by any of these entities could have for their
countries.
On a stand-alone basis, Petrobras' credit profile is commensurate
with a 'BB+' rating, which is materially higher than PEMEX's 'CCC'
SCP, as a result of Petrobras' positive deleverage trajectory
versus PEMEX's increasing leverage trajectory. Furthermore,
Petrobras has and is expected to continue to report positive FCF
and production growth, which Fitch expects to stabilize at
approximately 3.5 million boe/d in the next four to five years. In
contrast, PEMEX's production has declined in recent years,
reporting a decline of 12% between January 2018 and January 2019.
These production trajectories further support the notching
differential between the two companies' SCPs. Petrobras' SPC is two
notches lower than that of Ecopetrol at 'BBB' given Petrobras'
higher leverage level; Petrobras' gross leverage as of 2.5x versus
Ecopetrol's leverage of 1.2x.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Our Rating Case for the Issuer
- Gross production to increase to approximately 3.5 million boe/d
over the next four years;
- Ten production units come online during the next four years;
- The company relies partially on external financing to meet
principal payments;
- Brent Crude averages USD65/bbl in 2019; trends to USD57.5/bbl
by 2022;
- Average FX rate trends toward BRL3.9/USD;
- Dividends pay-out ratio of 33%, which is higher than Brazil
mandatory minimum rate of 25% of net income starting in 2019;
- Proceed from asset sales are not incorporated on Fitch's rating
case.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- A positive rating action on Brazil could lead to a positive
rating action on Petrobras.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- A negative rating action on Petrobras could result from a
downgrade of the sovereign and/or the perception of a lower linkage
between Petrobras and the government.
LIQUIDITY
Adequate Liquidity: Petrobras' liquidity is strong and provides an
added comfort in an environment of strengthening credit metrics,
supported by approximately USD17.3 billion of cash and marketable
securities as of June 30, 2019, compared with current debt
maturities of approximately USD5.7 billion. The majority of
Petrobras' available liquidity is composed of readily available
liquidity held abroad.
Petrobras demonstrates a solid ability to access the debt capital
markets to refinance debt. During 2018, estimated long-term debt
proceeds amounted to roughly USD11 billion, which the company used
to amortize debt, which decreased by almost USD25 billion from
2017. During the last few years, Petrobras also entered into
financing agreements and other liabilities with China Development
Bank for approximately USD10 billion. As of Dec. 31, 2018, the
average maturity of outstanding debt was approximately 9.1 years
and 19% of the company's debt was in Brazilian reals.
ESG Considerations
Unless otherwise disclosed in the section, the highest level of ESG
credit relevance is a score of 3 - ESG issues are credit-neutral or
have only a minimal credit impact on the entity, either due to
their nature or to the way in which they are being managed by the
entity.
Petrobras has an ESG Relevance Score of 4 for Community Relations &
Social Access (SCR) as oil and gas production companies are
typically exposed to social and community relationship issues in
their area of influence.
Petrobras has an ESG Relevance Score of 4 for Governance Structure
(GGV) resulting from its nature as a majority government owned
entity and the inherent governance risk that arise with a dominant
state shareholder.
FULL LIST OF RATING ACTIONS
Fitch currently rates Petroleo Brasileiro S.A. (Petrobras) as
follows:
-- Long-Term Foreign Currency IDR 'BB-'; Outlook Stable;
-- Long-Term Local Currency IDR 'BB-'; Outlook Stable;
-- National Scale rating 'AA(bra)'; Outlook Stable;
-- National Scale senior unsecured obligations 'AA(bra)'.
Petrobras Global Finance B.V. (PGF)
-- International debt issuances 'BB-'.
PETROLEO BRASILEIRO: Moody's Rates Unit's Proposed Global Notes Ba2
-------------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to Petrobras Global
Finance B.V.'s proposed new global notes, which will be
unconditionally guaranteed by Petroleo Brasileiro S.A. - PETROBRAS
(Ba2 stable). The Ba2 rating on the proposed notes is based on the
rating of Petrobras. The proposed notes are senior unsecured and
pari passu with Petrobras Global Finance B.V.'s and Petrobras'
other senior foreign currency debt. The outlook on the rating is
stable.
RATINGS RATIONALE
Petrobras' Ba2 ratings and ba2 Baseline Credit Assessment (BCA), a
measure of the company's standalone credit risk without government
support considerations, are supported by Petrobras' dominance in
the Brazilian oil industry and its importance to the country's
economy; its sizeable reserves equivalent to over 11 years of life;
the ongoing improvement in its credit metrics and liquidity
position, which Moody's expect to continue to strengthen in the
foreseeable future; and its renowned high technological offshore
expertise and potential for continued growth in production over the
long-term. However, Petrobras' ratings are constrained by still
high debt and financial expenses levels vis-a-vis cash generation;
business plan execution risk; and potential government interference
contrary to the business and financial interest of the company.
Petrobras' Ba2 ratings also consider Moody's joint-default analysis
for the company as a government-related issuer; Petrobras' ratings
reflect the assumption for moderate support and dependence from the
Government of Brazil (Ba2 stable) based on the government's weak
fiscal accounts but limited dependence on foreign currency funding,
the high level of diversification of the Brazilian economy, and the
country's limited reliance on local production of fuel. Petrobras'
corporate governance has improved since the beginning of the Lava
Jato investigations in early 2014; the company has secured its best
new corporate practices with some new managing rules, standards and
procedures in its bylaws, most recently updated in April 2019.
Petrobras' liquidity position is good. Moody's expects that the
company's cash generation in the next two years will be more than
enough to cover mandatory cash obligations plus annual capital
expenditures of about $11 billion, allowing it to reduce debt
further, even without asset sales.
The stable outlook on Petrobras' ratings incorporates its view that
the company's credit profile will continue to gradually improve in
the foreseeable future. Moody's believes that Petrobras is in line
to achieve its goal of reported net debt/EBITDA of below 1.5x in
2020 by selling assets and generating robust cash flow.
An upgrade of Petrobras' Ba2 rating would require further
improvement in its overall credit metrics; continued financial
discipline; evidence of lower exposure to adverse government
influence; and a stable energy regulatory environment in the
country. In addition, an upgrade of Petrobras' ratings would
consider Moody's ratings on the government of Brazil.
Negative actions on Petrobras' rating could result from a
deterioration in operating performance or external factors that
increase liquidity risk or debt leverage from current levels.
Downgrades could also be prompted if negative developments from the
litigations against Petrobras appear to have the potential of
significantly affecting the company's liquidity or financial
profile or if the rating on the government of Brazil is
downgraded.
The methodologies used in this rating were Global Integrated Oil &
Gas Industry published in October 2016, and Government-Related
Issuers published in June 2018.
Petrobras is an integrated energy company, with total assets of
$252 billion as of June 30, 2019. The company dominates Brazil's
oil and natural gas production, as well as downstream refining and
marketing. Petrobras also holds a significant stake in
petrochemicals and a position in sugar-based ethanol production and
distribution. The Brazilian government directly and indirectly owns
about 42.9% of Petrobras' outstanding capital stock and 60.4% of
its voting shares.
PETROLEO BRASILEIRO: S&P Rates Unit's New Sr. Unsec. Notes 'BB-'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating on
Petrobras Global Finance B.V.'s (PGF's) proposed senior unsecured
notes due 2030. PGF is a wholly-owned finance subsidiary of
Brazilian oil and gas company, Petroleo Brasileiro S.A. - Petrobras
(Petrobras; BB-/Stable/--). Petrobras will unconditionally and
irrevocably guarantee the notes.
The new notes will be issued in connection with an exchange offer
and with cash tender offers for several of PGF's bonds that mature
between 2023 and 2029. PGF will spend a maximum of $3 billion to be
paid in cash for participants of the exchange offer, plus an
additional $500 million on the concurrent tender offer for retail
investors. These transactions are in line with S&P's expectations
and Petrobras' continued focus on reducing debt, and would also
extend the company's already comfortable debt maturity profile,
reducing future refinancing risks.
S&P said, "We rate PGF's senior unsecured debt at the same level as
our issuer credit rating on Petrobras, based on the guarantee of
this debt and because the latter has limited secured debt
collateralized by real assets. Even if the senior unsecured debt
ranked behind the subsidiaries' debt in the capital structure, we
believe the risk of subordination is mitigated by a priority debt
ratio that's far less than 50% and the significant earnings
generated at the parent level. Our rating on Petrobras will
continue to depend on our sovereign rating on Brazil (BB-/Stable/B)
because the latter caps the company's credit profile."
===============
H O N D U R A S
===============
HONDURAS: Severe Drought Takes Heavy Toll on Farmers, Ranchers
--------------------------------------------------------------
EFE News reports that a severe drought is battering the farming and
ranching sectors in Honduras, where growers have seen their corn
and bean production fall by more than half and cattle raisers in
the eastern province of Olancho have lost more than 1,000 head of
livestock.
"There are ranchers here who have lost 80 cattle. An assessment was
made and they say that 1,000 head of cattle have been lost
throughout the Agalta Valley," Alvaro Ramos--a small rancher in San
Esteban, a municipality in Olancho about 281 kilometers (175 miles)
east of Honduras' capital, Tegucigalpa--told EFE.
As reported in the Troubled Company Reporter-Latin America on Sept.
11, 2019, Fitch Ratings has assigned a 'B+' Long-Term Foreign and
Local Currency Issuer Default Rating to Honduras' Alcaldia
Municipal del Distrito Central, Tegucigalpa. The Rating Outlook is
Stable. At the same time, Fitch has assigned a 'B' Short-Term IDR
to AMDC. AMDC is Honduras' capital city.
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J A M A I C A
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JAMAICA: Gets First Report on Use of Funds in Dormant Bank Accounts
-------------------------------------------------------------------
RJR News reports that Jamaica Industry Minister Audley Shaw is now
in receipt of the first report on the use of funds in dormant bank
accounts.
He said the findings will be shared with the Finance Minister and
the Cabinet, according to RJR News.
The Government is trying to get faster access to funds held in
dormant accounts, the report notes.
It wants to use the almost $50 billion in the accounts to provide
low-interest financing to micro, small and medium-sized
enterprises, the report says.
The global standard for dormant funds returning to central
government is seven years, notes RJR News.
In the United States, it is five years, and in Jamaica 15 years,
the report relays.
A consultancy group was contracted and tasked with the
responsibility of reviewing and advising the Holness administration
on this engagement, 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
===========
UNIQUE TOOL: U.S. Trustee Forms 5-Member Committee
--------------------------------------------------
The U.S. Trustee for Region 9 on Sept. 5 appointed five creditors
to serve on the official committee of unsecured creditors in the
Chapter 11 case of Unique Tool & Manufacturing Co., Inc.
The committee members are:
(1) Lawrence Gardner Associates, Inc.
c/o Lawrence Gardner
250 Stephenson Highway, Suite 100
Troy, MI 48083
Phone: (248) 269-9510
Fax: (248) 588-0122
LGA123456@aol.com
(2) B & B Box Company
c/o Gregory B. Hammer
26490 Southpoint Road
Perrysburg, OH 43551
Phone: (419) 872-5600
Fax: (419) 872-5700
greg@b-n-bbox.com
(3) Precise Engineering
c/o Chad Nyboen
4675 40th Street
Grand Rapids, MI 49512
Phone: (616) 957-0398
Fax: (616) 957-0484
cnyboen@huizengagroup.com
(4) Cardinal Staffing of Michigan
c/o Joseph Young
1688 Woodlands Drive
Maumee, OH 43537
Phone: (419) 893-5400
Fax: (419) 893-8596
jyoung@cardinalstaffing.com
(5) Midwest Die Supply Co.
c/o Michael R. Sullivan
6240 American Road
Toledo, OH 43612
Phone: (419) 729-7141
Fax: (419) 729-7144
mksllvns2@aol.com
Official creditors' committees serve as fiduciaries to the general
population of creditors they represent. They may investigate the
debtor's business and financial affairs. Committees have the right
to employ legal counsel, accountants and financial advisors at a
debtor's expense.
About Unique Tool
Unique Tool & Manufacturing Co. -- http://www.uniquetool.com/-- is
a custom metal stamping company formed in 1963, which supplies
stampings to the satellite, communications, electrical, appliance,
refrigeration and automotive industries throughout the United
States, Canada and Mexico. It specializes in tool and die
manufacturing, brazing, welding, plating and more.
Unique Tool & Manufacturing sought Chapter 11 protection (Bankr.
N.D. Ohio Case No. 19-32356) on July 26, 2019, . At the time of
the filing, the Debtor estimated up to $50,000 in assets and $1
million to $10 million in liabilities.
The Hon. Mary Ann Whipple is the case judge. Diller and Rice, LLC
is the Debtor's legal counsel.
=====================
P U E R T O R I C O
=====================
NOSCE TE IPSUM: Case Summary & 9 Unsecured Creditors
----------------------------------------------------
Debtor: Nosce Te Ipsum, Inc.
PO Box 363347
San Juan, PR 00936
Case No.: 19-05155
Business Description: Nosce Te Ipsum, Inc. classifies its business
as Single Asset Real Estate (as defined in
11 U.S.C. Section 101(51B)). The Company
owns in fee simple a 5-story building with
office and commercial spaces for lease, and
adjacent parking lot structure in Guaynabo,
Puerto Rico valued by the Company at $7
million.
Chapter 11 Petition Date: September 9, 2019
Court: United States Bankruptcy Court
District of Puerto Rico (Old San Juan)
Judge: Hon. Brian K. Tester
Debtor's Counsel: Andrew Jimenez Cancel, Esq.
ANDREW JIMENEZ LAW OFFICES
PO Box 9023654
San Juan, PR 00902-3654
Tel: (787) 638-4778
E-mail: ajimenez@ajlawoffices.com
Total Assets: $7,046,991
Total Liabilities: $5,210,939
The petition was signed by Maria De Los A. Ubarri, general
manager.
A full-text copy of the petition containing, among other items, a
list of the Debtor's nine unsecured creditors is available for free
at:
http://bankrupt.com/misc/prb19-05155.pdf
NUTRITION CARE: Discloses More Info on Intercompany Transactions
----------------------------------------------------------------
Nutrition Care, Inc., filed an amended small business Chapter 11
plan and accompanying amended disclosure statement to disclose more
description of its business and its history.
Frances Management Services Corp. (FM), a related entity, owns a
real property located at Bayamon, Puerto Rico and Francisca Resto
Montanez (FRM), its stockholder, owns a real property located at
Toa Baja, Puerto Rico. Prior to filing the petition, the Debtor
operated in the premises belonging to FM under a lease contract.
The property of FRM was leased to an unrelated party and the rent
proceeds were assigned to FM for collection and administration,
including payments to secured creditor. Banco Popular de Puerto
Rico (BPPR) had rent assignment contracts from FM and FRM. The
Debtor had an unsecured line of credit with BPPR. Due to recession
and changes in the industries where Debtor operates, the income
declined substantially. At a certain point, BPPR began to withdraw
its monthly installments from whichever one of Debtor's accounts
had balance available.
The funds withdrawn by BPPR to satisfy obligations of related
parties FM and FRM, resulted in the commingling of loans and cash
flow deficiencies that ended in the instant bankruptcy filing.
BPPR's transfers resulted in related party transactions between
Debtor, FM and FRM, also a guarantor to the loans with BPPR.
Additional intercompany transfers were reflected in Debtor's and
Debtor's principal's books and records at the time of the
bankruptcy filing. Nevertheless, the purported related parties
transactions occurred years before Debtor's bankruptcy filing and
were, inexplicably, never updated by Debtor's previous accountant.
After the natural disaster created by Hurricane Maria during
September 2017, the lease contract for the property owned by FRM
was cancelled by the lessee under a clause of the lease contract.
After that major natural disaster, Debtor began operations as soon
as practical and, during February 2018, moved its operations to
FRM's property, where it currently operates. As part of the
agreement, Debtor pays the insurance for the property, maintenance,
real property taxes and is awaiting an agreement by and between FRM
and BPPR to complete a written lease agreement. FRM paid, from her
owns funds, for major necessary repairs and reconditioning of the
property, in order to comply with the Joint Commissions operating
requirements for Debtor. FRM as president and principal of debtor
manage the daily business affairs and since March 2018 receives a
monthly gross salary of $3,000.00.
Class 1 Contingent, Disputed and Unliquidated Claim of PR Treasury
are impaired. This class will receive a $240.00 lump sum payment to
be made on the effective date of the Amended Plan. The lump sum
represents 0.56% of the claimed amount.
Class 2 Unsecured convenience class of creditors pursuant to 11
U.S.C. Section 1122 for claims that are equal to or under $3,000.00
are impaired. This class will receive a lump sum of $25.00
distributed on pro rata basis of the allowed claims and to be made
on the effective date of the Amended Plan. The lump sum represents
0.56% of the allowed amount in this class.
Class 3 Unsecured convenience class of creditors pursuant to 11
U.S.C. Section 1122 for claims that are equal to or over $3,001.00
are impaired. This class will receive a payment of $4,735.00,
distributed in two lump sums of $2,367.50 each. Each lump sum will
be distributed in a pro rata basis of the allowed claims. The first
lump sum of $2,367.50 will be made on the effective date of the
Amended Plan and the second lump sum of $2,367.50 will be made on
the 9th month of the effective date of the Amended Plan. The sum of
these lump sum represents 0.63% of the allowed amount in this
class.
Class 4 Equity interest holders are impaired. Equity interest
Holders will receive no distribution.
Payments and distributions under the Amended Plan will be funded by
the on-going operations of Debtor's business.
A full-text copy of the Second Amended Disclosure Statement dated
September 4, 2019, is available at https://tinyurl.com/y4l6juab
from PacerMonitor.com at no charge.
Attorneys for Debtor:
Myrna L. Ruiz-Olmo, Esq.
MRO Attorneys at Law, LLC
PO Box 367819
San Juan, PR 00936-7819
Tel. 787-237-7440
Email: mro@prbankruptcy.com
About Nutrition Care
Nutrition Care, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-00394) on Jan. 29,
2018.
At the time of the filing, the Debtor estimated assets of less
than $50,000 and liabilities of less than $1 million. Judge
Enrique S. Lamoutte Inclan presides over the case. Tomas F. Blanco
Perez, Esq., at MRO Attorneys at Law, LLC, is the Debtor's
bankruptcy counsel.PUERTO RICO: Final Bond Insurers Join PREPA Deal
=====================================
T R I N I D A D A N D T O B A G O
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TRINIDAD & TOBAGO: Faces Multimillion Claim From Chinese Firm
-------------------------------------------------------------
Trinidad Express reports that Trinidad and Tobago could be forced
to make a termination payment of up to an estimated US$43 million
to the China Gezhouba Group International Engineering Co Ltd (CGGC)
for the cancellation of its contract with the Housing Development
Corporation (HDC), according to Express Business calculations based
on local high-rise apartment construction costs and profit
projections.
That is if an investigation of the award of the controversial
contract determines that no bribes, inducement or commissions were
paid by the Chinese contractor to any local official, according to
Trinidad Express.
=================
V E N E Z U E L A
=================
VENEZUELA: Launches Military Exercises on Colombian Border
----------------------------------------------------------
EFE News report that Venezuela began conducting military exercises
by deploying troops and weapons on the border with Colombia amid
escalating tensions with its western neighbor, although no combat
actions were executed nor was a single bullet fired.
EFE News found that the National Bolivarian Armed Forces (FANB)
deployed anti-aircraft batteries, armored vehicles, mobile rocket
launchers and a helicopter at the start of the war games, which
were ordered by President Nicolas Maduro.
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
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