/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/191010.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, October 10, 2019, Vol. 20, No. 203 Headlines A R G E N T I N A ARGENTINA: Economists Forecast Deeper Recession, Inflation Steady B R A Z I L BABILONIA HOLDING: Moody's Confirms Ba2 Rating on BRL87MM Debenture BRAZIL: Financial Sector Expect 3.42% Inflation at 2019 End BRAZIL: Monthly Vehicle Production Down 8.3 Percent in September OI SA: Executives Say They Won't Bow to Pressure to Raise Capital D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Electoral Processes Harm Economic Development G U A T E M A L A CENTRAL AMERICA BOTTLING: Fitch Affirms BB+ LT IDRs, Outlook Neg. J A M A I C A DIGICEL GROUP: May Seek to Refinance $1.3BB of Debt at a Discount JAMAICA: Industry Minister Urges Businesses to Become Formal TRINIDAD & TOBAGO: Shoppers Anticipate Reduced Food Prices P U E R T O R I C O CHARLOTTE RUSSE: Exclusivity Period Extended Until Dec. 2 IMR SECURITY: Hires Nilda Gonzalez-Cordero as Counsel IMR SECURITY: Taps Luis Cruz Lopez as Accountant T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: $202.3 Billion Spent in 2016 to 2019 Fiscal Yrs. V E N E Z U E L A VENEZUELA: Guaido Says CAF Preparing to Offer $400 Million Loan - - - - - ================= A R G E N T I N A ================= ARGENTINA: Economists Forecast Deeper Recession, Inflation Steady ----------------------------------------------------------------- Aislinn Laing and Lucila Sigal at Reuters report that Argentine economists forecast a deeper recession and maintained a pessimistic inflation forecast at a shade under 55% in the latest central bank monthly poll of analysts released. The prediction follows weeks of political uncertainty and a plunge in the value of the peso after Alberto Fernandez, a Peronist candidate, soundly beat market-friendly incumbent President Mauricio Macri in an August primary election, according to Reuters. Macri's government last month sought to halt the slide by announcing currency controls and sought an extension of the maturities of about $100 billion in debt, the report relays. Inflation was seen at 54.9% for the year, according to the survey of 45 analysts, down from 55% in the same central bank poll which was released last month, shortly after the shock primary election result, the report discloses. It will ease to 40.5% by 2020, the analysts said, the report relays. The new weakness in the peso, which lost around half its value against the U.S. dollar last year, is expected to lead to rising consumer prices over the months ahead, the report says. Reuters discloses that gross domestic product was forecast to shrink 2.9% this year, the poll said, versus 2.5% in the previous month's survey. Fernandez moved to reassure investors, saying that if elected he would aim to avoid reductions on bond payments and seek a moderate "Uruguay-style" debt restructuring, the report adds. About Argentina Argentina is a country located mostly in the southern half of South America. It's capital is Buenos Aires. Mauricio Macri is the incumbent president of Argentina. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019 according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and -- in the recent decades --increasing poverty. Standard & Poor's foreign and local currency sovereign credit ratings for Argentina stands at CCC- with negative outlook. 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." Moody's credit rating for Argentina was last set at Caa2 from B2 with under review outlook. Fitch's credit rating for Argentina was last reported at CC with n/a outlook. DBRS's credit rating for Argentina is CC with under review outlook. S&P, Moody's and DBRS ratings were issued on Aug. 30, 2019; Fitch rating on Sept. 3, 2019. The next general elections in Argentina will be held on October 27, 2019, to elect the president of Argentina, members of the national congress and governors of most provinces. Incumbent President Mauricio Macri is running for re-election and his top opponent is Alberto Fernandez. If no candidate reaches certain thresholds, a runoff vote between the top two candidates will be held on Nov. 24. =========== B R A Z I L =========== BABILONIA HOLDING: Moody's Confirms Ba2 Rating on BRL87MM Debenture ------------------------------------------------------------------- Moody's America Latina Ltda. confirmed the Ba2 global scale and Aa1.br national scale ratings assigned to Babilonia Holding S.A.'s BRL87 million senior secured debentures due in 2033. The outlook for the ratings is now stable. This concludes the review for downgrade initiated on August 06, 2019. Confirmations: Issuer: Babilonia Holding S.A. Senior Secured Regular Bond/Debenture, Confirmed at Ba2/Aa1.br Outlok Actions: Issuer: Babilonia Holding S.A. Outlook, Changed to Stable From Rating Under Review RATINGS RATIONALE The ratings' confirmation reflects Moody's perception that the potential change of control will not materially affect the project's underlying credit fundamentals, despite the anticipated changes in the debt guarantee structure and the different economic interests and financial profile of the new sponsor. Babilonia's wind complex is already operating since November 2018 in line with Moody's expectations, thus a change on the corporate guarantee until completion will not expose the project to additional credit risks. The release of the corporate guarantee occurs when the 12-month accumulated net energy generation reaches the long-term energy forecast with a 90% probability. The other provisions embedded in the debt documentation for creditors' protection, including restrictions to cash distributions based on minimum operating performance level and financial standards, will remain unchanged. On August 30, the debenture holders provided a waiver to the proposed change of control and agreed to a replacement of the corporate guarantee provided by EDP Renovaveis Brasil S.A. (EDPR-Brasil) without incremental costs to the project level. After the planned acquisition, Babilonia's project will be sole owned by Actis LLP (Actis) under its Actis Long Term Life Infrastructure Fund (ALLIF) and a new dedicated holding company that was incorporated in Brazil as an affiliate of Actis. This new holding company will replace EDPR-Brasil in all its rights and obligations to the project, including the corporate guarantee to debenture holders until the project reaches financial completion. Similar approvals to the change of control and guarantee structure are pending from the Banco Nacional de Desenvolvimento Economico e Social - BNDES (BNDES, Ba2 stable), the lender for about 87% of the project's total debt. Moody's assumes BNDES will approve these changes without material impact to the project's cost structure. Closing of the acquisition has target completion over the next 30 to 60 days, after all the approvals are in place. The assigned Ba2/Aa1.br ratings to Babilonia project consider its robust and predictable cash flow profile supported by 20-year regulated power purchase agreements awarded in a Reserve Energy Auction (LER) as of 2015 that yields minimum and average debt service coverage ratios (DSCR) of 1.42x and 1.76x, respectively in its base case scenario, that provide adequate cushion to different downside scenarios. The project's credit quality is tempered by a relatively short tenured (5 years) operations and maintenance agreement (O&M) with Siemens Gamesa Renewable Energy, S.A. (Baa3 stable) that is not full service. Moody's views Actis' ample experience in managing renewable energy projects in Brazil and abroad with a long-term investment horizon towards the Babilonia acquisition, dedicated financial resources and a meaningful economic interest to support the project, as the ultimate new shareholder. WHAT COULD CHANGE THE RATING UP/DOWN The global scale rating is constrained by the credit quality of the Brazil government, as such the rating can be upgraded upon a similar action to that of the sovereign. An upgrade would also depend on the operating performance of turbines and wind sources to be in line with or above Moody's expectations for a prolonged period. The ratings could be downgraded if the project's operating performance is consistently below its expectations increasing the likelihood of covenant breach or leading to a sustained deterioration in credit metrics. Quantitatively, the national scale rating could be downgraded if Moody's DSCR falls below 1.40x over a 12-month period without the expectation of reversal. Moody's perception of a notable decline in the level of consistency and predictability of the Brazilian business environment for the electricity sector or to the contractual framework that support the project's cash flows, could also exert negative pressure on the ratings. Babilonia Holding S.A. is a non-operational holding company owner of five wind clusters authorized by ANEEL/Ministry of Energy and Mining to operate as energy producers, forming the Babilonia complex. Located in the municipalities of Ourolandia, Varzea Nova and Morro do Chapeu, in the State of Bahia, the project has a total installed capacity of 136.5MW, composed of 65 wind turbines generators supplied by Siemens Gamesa Renewable Energy, S.A. of 2.1MW each (Model G114 CII Maxpower). The project, which reached 100% official commercial operations date in November 2018, is sponsored by EDP Renovaveis Brasil S.A. (EDPR-Brasil, unrated). The principal methodology used in these ratings was Power Generation Projects published in June 2018. BRAZIL: Financial Sector Expect 3.42% Inflation at 2019 End ----------------------------------------------------------- Richard Mann at Rio Times Online reports that financial institutions in Brazil have, for the ninth consecutive week, reduced their estimate for inflation this year. According to a Central Bank survey of the financial market, published on the Internet, the forecast for inflation in Brazil, calculated by the National Broad Consumer Price Index, went from 3.43 percent to 3.42 percent in 2019, the report notes. For 2020, the estimate fell from 3.79 percent to 3.78 percent, the report relays. About Brazil The Federal Republic of Brazil is the largest country in Latin America. Sao Paulo is the most populated city and Brasilia is the capital. The federation is composed of the union of 26 states, the Federal District and more than 5,000 municipalities. Its government is headed by President Jair Bolsonaro. Among other things, Brazil's government is hounded by corruption allegations. Brazil has an advanced emerging economy. Amid growth in recent decades, the country entered an ongoing recession in 2014 amid a political corruption scandal and nationwide protests. Standard & Poor's credit rating for Brazil stands at BB- with stable outlook (January 2018). Moody's credit rating for Brazil was last set at Ba2 with stable outlook (April 2018). Fitch's credit rating for Brazil was last reported at BB- with stable outlook (February 2018). DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). BRAZIL: Monthly Vehicle Production Down 8.3 Percent in September ---------------------------------------------------------------- Lachlan Williams at Rio Times Online reports that the National Association of Automotive Vehicle Manufacturers (ANFAVEA), in Sao Paulo, disclosed that a balance of 247,300 vehicle units were produced in September, compared to 269,800 in August. In relation to September last year, the figure represents an increase of 10.9 percent, according to Rio Times Online. In the accumulated period of 2019, automotive production recorded a growth of 2.9 percent, the report relays. About Brazil The Federal Republic of Brazil is the largest country in Latin America. Sao Paulo is the most populated city and Brasilia is the capital. The federation is composed of the union of 26 states, the Federal District and more than 5,000 municipalities. Its government is headed by President Jair Bolsonaro. Among other things, Brazil's government is hounded by corruption allegations. Brazil has an advanced emerging economy. Amid growth in recent decades, the country entered an ongoing recession in 2014 amid a political corruption scandal and nationwide protests. Standard & Poor's credit rating for Brazil stands at BB- with stable outlook (January 2018). Moody's credit rating for Brazil was last set at Ba2 with stable outlook (April 2018). Fitch's credit rating for Brazil was last reported at BB- with stable outlook (February 2018). DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). OI SA: Executives Say They Won't Bow to Pressure to Raise Capital ----------------------------------------------------------------- Fabiola Moura at Bloomberg News reports that Oi SA's top executives have a message for investors and analysts pushing the company to sell more assets or take on more debt: Back off. The Brazilian phone company -- now in the final stages of a $19 billion debt restructuring -- has various options to raise capital but won't make any decisions under pressure, Chief Operational Officer Rodrigo Abreu and Chief Executive Officer Eurico Teles said in an interview with Bloomberg News. Oi is in the process of selling assets, is benefiting from a BRL3 billion (US$720 million) tax credit, and is considering issuing as much as BRL4.5 billion in debt, as outlined in its judicial recovery plan, Abreu said, Bloomberg News notes. "There is no fixed path in front of us," Abreu said, Bloomberg News says. "The execution of this range of options will depend on the order with which we're able to sell assets," he added. Abreu declined to say what kind of debt the company might issue or exactly how much it might sell, Bloomberg News notes. Oi sold a building in the Rio de Janeiro neighborhood of Botafogo for BRL120 million, Abreu said, Bloomberg News notes. He also reaffirmed its goal of selling a 25% stake in Angolan telecom operator Unitel SA by the end of the year -- a deal estimated at about $1 billion -- without elaborating, Bloomberg News discloses. Under Scrutiny Bloomberg News relates that the company has been under scrutiny since posting a loss of BRL1.56 billion and burning about BRL2 billion of cash in the second quarter. Reuters and the Valor Economico newspaper reported last month that Oi had put its mobile network up for sale, going beyond the divesting of noncore assets such as towers, call centers and real estate that it had announced in its July strategic plan, Bloomberg News relays. "We need to leave aside speculation," Abreu said, Bloomberg News notes. "We have tools to manage our cash and inject resources into the company," he added. While denying a formal process to sell Oi's mobile business, the fourth largest in Brazil, Abreu welcomed the reported interest in the asset, Bloomberg News discloses. "Our mobile operation is sustainable and generates value," he added. Abreu, a former CEO of Brazil's Tim Participacoes SA who was a member of Oi's board for a year, left the board to become operating chief last month, Bloomberg News notes. The company's largest shareholder, GoldenTree Asset Management, had asked for the replacement of Oi's top managers, Bloomberg News relays. Oi is on the way to successfully concluding its judicial recovery and isn't worried about any deadline, CEO Teles said, Bloomberg News says. "We're focused on the company and not on the judicial process," Teles said. "We need to fill the technological gap we have in the company and execute our strategic plan," he added. As reported in the Troubled Company Reporter-Latin America, S&P Global Ratings, on Sept. 12, 2019, affirmed its global scale 'B' issuer credit and issue-level ratings and revised the outlook to negative from stable. At the same time, S&P lowered its national scale rating to 'brA-' from 'brA' and assigned a negative outlook. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Electoral Processes Harm Economic Development ----------------------------------------------------------------- Dominican Today reports that economist Ernesto Selman has affirmed that electoral processes affect the economic development of a given country and more when they have institutional weaknesses. The executive vice president of the Regional Center for Sustainable Economic Strategies (Crees) said electoral processes affect economic development as this greater public spending generates greater debt, according to Dominican Today. "But in addition, this environment of confrontations generates an uncertainty affecting the investments and decisions of economic agents," he added. Selman participated in Think Economics, an event held every year by the Swiss Chamber of Commerce and Tourism (CCTDS), where economists analyze the Dominican economy, the report notes. Jacqueline Mora Baez, executive director of Analytica, who spoke about macroeconomics, and Alejandro Fernandez W., director of Argentarium also participated in this event, the report says. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. The Troubled Company Reporter-Latin America reported on April 4, 2019 that the Dominican Today related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic stands at BB- with stable outlook (2015). Moody's credit rating for Dominican Republic was last set at Ba3 with stable outlook (2017). Fitch's credit rating for Dominican Republic was last reported at BB- with stable outlook (2016). ================= G U A T E M A L A ================= CENTRAL AMERICA BOTTLING: Fitch Affirms BB+ LT IDRs, Outlook Neg. ----------------------------------------------------------------- Fitch Ratings affirmed The Central America Bottling Corporation's Long-Term Foreign and Local Currency Issuer Default Ratings at 'BB+'. The Rating Outlook is Negative. CBC's rating affirmations reflects its business position as an anchor bottler of the PepsiCo system with operations in Central America, the Caribbean, Ecuador, Peru and Argentina. The company has a diversified product portfolio of PepsiCo and proprietary brands across its franchised territories, combined with a good distribution network in key markets. CBC's ratings are constrained by the sovereign ratings where it operates, the competitive environment of the beverage industry and the volatility of prices in its main raw materials. The Negative Outlook continues to reflect a lower deleverage trend than previously projected by Fitch and a weak operating performance on some of its main markets during the first half of 2019. Fitch forecasts that CBC's total debt adjusted by operating leases to EBITDA plus lease expense (EBITDAR) and total adjusted net debt/EBITDAR will be around 3.7x and 2.9x, respectively, by year end 2019. A revision of the Outlook to Stable would result if the company leverage metrics maintain at or below 3.5x and 2.5x, respectively, in the next 12 to 18 months. KEY RATING DRIVERS Solid Position in Core Markets: CBC's ratings reflect its stable market share positions across its operations. In the carbonated soft drink (CSD) category, which represents around 55% of its total sales volume, the company has maintained a leading market share position in Jamaica, and maintained significant positions in other core markets as Guatemala, Ecuador and Puerto Rico. In addition, CBC has a strong presence in non-CSD categories such as water, juices and nectars, isotonics, energy drinks and teas, where it holds important positions in most of its markets. Non-CSD products represent close to 41% of its total sales volume. Fitch believes CBC's brand portfolio, distribution capabilities, and management's strategies to design and execute commercial initiatives will support its business position in the long term. Performance Face Challenges: Fitch expects CBC's revenues to grow in the low-single digits in 2019 due to difficult economic and political conditions in Honduras, Nicaragua and Argentina, which represent around 14% of its revenues. Volume growth is expected to come mainly from non-CSD categories such as water, isotonics and beer distribution, which should compensate weaker CSD and juices and nectar volumes. For the first half of 2019, CBC's revenues grew around 3%, as a result of higher sales of water, beer and other products that compensate the decline of CSD and juices and nectars. Fitch projects some pressures in profitability due to higher raw material prices, and estimates an EBITDA margin of close to 13% in 2019 and 14% in 2020. Leverage above Projections: For 2019, Fitch projects CBC's total adjusted debt/EBITDAR and total adjusted net debt/EBITDAR will be around 3.7x and 2.9x, respectively, and then should gradually decrease to around 3.5x and 2.8x in the next 12-18 months. As CBC's gross and net leverage ratios have been above Fitch's projections, it is expected a strengthening in the short term to midterm to ease the pressure on its current 'BB+' rating. For the LTM ended June 30, 2019, these metrics calculated by Fitch were 4.1x and 3.1x, respectively, compared to 3.8x and 2.7x at year end 2018. As of June 30, 2019, CBC's total debt was USD786 million excluding USD72 million of a loan structure that the company implemented for its operations in Central America. FCF Positive: CBC's average FCF in the last four years has been slightly positive. This trend is projected to continue over the midterm. Fitch's base case projection estimates the company will generate slightly positive FCF in 2019 as a result of cash flow from operations (CFO) of around USD130 million, capex of USD68 million, and dividends of USD45 million. Positive FCF should increase in 2020. For the LTM ended June 30, 2019, CBC's FCF calculated by Fitch was negative USD26 million after covering capex of USD118 million and USD70 million of dividends combined with the seasonality of its cash flows. Exposure to Guatemala's Sovereign Ratings: Guatemala's 'BB'/Negative sovereign rating is given greater emphasis in CBC's ratings because it is the company's main market in terms of consolidated revenues (around 38%) and EBITDA (around 40%). Fitch also believes the company's operating performance is more likely to depend on the stability and economic development of this country. While downgrades in Guatemala's ratings could result in negative pressures on CBC, Fitch also believes that deterioration in Ecuador's (B-/Stable) economic and political environment would be negative for the company's ratings. DERIVATION SUMMARY CBC's 'BB+' ratings are below other beverages peers in the region such as Arca Continental, S.A.B. de C.V. (A/Stable), Coca-Cola FEMSA, S.A.B. de C.V. (A-/Positive) or Embotelladora Andina S.A. (BBB+/Stable) given its lower size and scale and weaker competitive position of PepsiCo and proprietary beverage brands when compared to the stronger brand equity of Coca-Cola products. Also, the company's ratings reflect its lower profitability margins and higher exposure to lower-rated countries. CBC's ratings are above other beverage companies such as Grupo Embotellador Atic S.A. (B/Stable) given its better operating performance, adequate leverage metrics and ample liquidity. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Revenue growth of 3% in 2019 and 2020; - EBITDA margins around 13% in 2019 and 14% in 2020; - Slightly Positive FCF in 2019 and improving in 2020; - Total adjusted debt/EBITDAR and total adjusted net debt/EBITDAR at around 3.7x and 2.9x, respectively, by 2019. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action Fitch does not foresee positive ratings actions for CBC in the midterm; however, the combination of lower leverage ratios, better operating performance, solid FCF across the cycle, and cash flow generation from investment-grade countries will be considered positive to credit quality. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- A downgrade in Guatemala's or Ecuador's Country Ceiling or sovereign ratings; -- Deterioration of its operating results, negative FCF generation, or significant debt-financed acquisitions that result in total adjusted debt/EBITDAR and total adjusted net debt/EBITDAR higher than 3.5x and 2.5x, respectively, on a sustained basis. LIQUIDITY AND DEBT STRUCTURE Ample Liquidity: As of June 30, 2019, CBC's liquidity is ample, given its current cash position of USD229 million and USD88 million of short-term debt. Approximately USD99 million of its cash balance is invested in short-term instruments with different banks and around 84% of its total cash is maintained in U.S. dollars. The company's debt amortizations are manageable for 2019 and 2020, and Fitch believes CBC has financial flexibility given its CFO generation capacity and liquidity position. SUMMARY OF FINANCIAL ADJUSTMENTS Debt is adjusted by the loan structure (back to back loan) the company implemented for its operations in Central America. ============= J A M A I C A ============= DIGICEL GROUP: May Seek to Refinance $1.3BB of Debt at a Discount ----------------------------------------------------------------- Joe Brennan at Irish Times reports that businessman Denis O'Brien's Digicel may seek to refinance at a discounted price some $1.3 billion (EUR1.2 billion) of bond debt due to be repaid in early 2021, to take advantage of the fact that they are trading at a discount in the market, according to US debt research firm Xtract Research. However, such a move would be considered by debt ratings agencies as a more aggressive distressed debt manoeuvre than the one completed by Digicel earlier this year, according to Irish Times. That involved persuading creditors holding $3 billion of bonds due in 2020 and 2022 to postpone getting their money back by a further two years by exchanging their notes for longer-dated paper, the report notes. The telecommunications group, which operates across 33 markets in the Caribbean, Central America and Asia Pacific regions, typically seeks to work on solutions between 18 months and a year before a major debt maturity, the report discloses. That means it is likely to engage with bondholders in the coming months on its $1.3 billion of March 2021 notes, the report relays. Leading credit rating agency Moody's said on Sept. 13 that Digicel's weak finances means the risk is rising that the company will make "another distressed exchange or debt restructuring within the next 12-18 months," the report notes. Xtract Research analyst Nicole Green estimates that Digicel could raise up to $1.16 billion of fresh "structurally senior debt" to help refinance the 2021 bonds, the report relays. The group has a number of entities through which it has sold debt in the past as it built up an almost $7 billion debt pile, the report relays. This means it faces restrictions under various covenants as to how much fresh debt -- and at what part of the group -- it can issue, the report notes. Investor Concerns Ms. Green noted that with the 2021 bonds trading in the market at 71c on the dollar, this "may offer Digicel the opportunity to address the notes in a below-par exchange and preserve additional debt capacity," the report says. A price of 71c, reflecting investor concerns over Digicel's financial standing, means the $1.3 billion of bonds are only being valued at about $920 million by the market, the report notes. Digicel, set up by Mr O'Brien in 2001, saw the value of its bonds fall in late August as it reported that its revenue fell by 1 per cent on the year to $539 million in the three months to June, with currency weakness across some of its main markets driving the decline, the report discloses. Earnings before interest, tax, depreciation and amortization (Ebitda) dropped 2 per cent to $244 million, continuing a trend seen in recent years, the report relays. Mr O'Brien scrapped plans to raise as much as $2 billion in an initial public offering (IPO) at the last minute in October 2015, the report notes. The company had intended to use much of the IPO funds to pay down borrowings, the report adds. About Digicel Group Digicel Group is a mobile phone network provider operating in 33 markets across the Caribbean, Central America, and Oceania regions. The company is owned by the Irish billionaire Denis O'Brien, is incorporated in Bermuda, and based in Jamaica. As reported in the Troubled Company Reporter-Latin America on July 16, 2019, Moody's Investors Service downgraded Digicel Group Limited's corporate family rating to Caa2 from Caa1 and its probability of default rating to Caa2-PD from Caa1-PD. At the same time, Moody's downgraded the senior unsecured rating of Digicel Limited to Caa2 from B3, the senior secured rating of Digicel International Finance Limited to B3 from B1, the senior secured rating of Digicel Group One Limited to Caa2 from Caa1 and the senior unsecured ratings of both Digicel Group Two Limited and Digicel to Ca from Caa3. The outlook is negative. JAMAICA: Industry Minister Urges Businesses to Become Formal ------------------------------------------------------------ RJR News reports that Industry and Commerce Minister Audley Shaw has again emphasized the need for informal businesses in Jamaica to become formal. He said he wants to see entrepreneurs being able to do better and for Jamaica to grow, according to RJR News. Mr. Shaw was speaking at Paramount Trading official launch of their Lubricant Plant, the report relays. The report relays that he said the government is doing a number of things to make it easier to do business. This includes the single registration form, called the Super Form, which is being administered by the Companies Office of Jamaica (COJ), the report notes. Mr. Shaw said the launch of the Electronic Business Registration Form by the COJ in August, will allow entrepreneurs to register their businesses at their own convenience from anywhere in the world, the report adds. As reported in the Troubled Company Reporter-Latin America on Oct. 1, 2019, S&P Global Ratings, on Sept. 27, 2019, raised its long-term foreign and local currency sovereign credit ratings on Jamaica to 'B+' from 'B'. The outlook is stable. At the same time, S&P Global Ratings affirmed its 'B' short-term foreign and local currency sovereign credit ratings on the country. S&P Global Ratings also raised its transfer and convertibility assessment to 'BB-' from 'B+'. 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. TRINIDAD & TOBAGO: Shoppers Anticipate Reduced Food Prices ---------------------------------------------------------- Michelle Loubon at Trinidad Express reports that as the countdown to the budget day presentation by Finance Minister Colm Imbert intensifies, Port of Spain vendors and Charlotte Street shoppers said they are hoping for a drastic reduction in food prices and an increase in minimum wage to about $18 or $20 an hour. Several pensioners said they would like an increase in their pensions, according to Trinidad Express. While some people are also clamouring for houses, others are hoping there would not be an increase in gas prices, the report notes. The consensus among people was they were disgusted with escalating crime, the report relays. The population is also expecting local government and general election dates to be announced soon, the report adds. ===================== P U E R T O R I C O ===================== CHARLOTTE RUSSE: Exclusivity Period Extended Until Dec. 2 --------------------------------------------------------- Judge Laurie Selber Silverstein extended the period during which only CR Holding Liquidating Inc. and its affiliates can file a Chapter 11 plan to Dec. 2. The companies can solicit acceptances for the plan until Jan. 29, 2020. About Charlotte Russe Holding Charlotte Russe Holding, Inc., now known as CR Holding Liquidating Inc., is a specialty fashion retailer of young women's apparel and accessories comprised of seven entities. The company and its affiliates are headquartered in San Diego, California and have one distribution center located in Ontario, California. In addition, the companies lease office space in Los Angeles, California and San Francisco, California, where they primarily conduct merchandising, marketing, e-commerce and technology functions. The companies sell their merchandise to customers in the contiguous 48 states, Hawaii, and Puerto Rico through their online store and 512 Charlotte Russe brick-and-mortar stores located invarious regional malls, outlet centers, and lifestyle centers. The bulk of the companies' apparel and accessory products are sold under the Charlotte Russe brand with ancillary brands for denim and perfume (Refuge), young women's plus-size apparel (Charlotte Russe Plus), and cosmetics (Charlotte by Charlotte Russe). Charlotte Russe Holding and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 19-10210) on Feb. 3, 2019. At the time of the filing, Charlotte Russe Holding estimated assets of $100 million to $500 million and liabilities of $100 million to $500 million. The cases are assigned to Judge Laurie Selber Silverstein. The Debtors tapped Bayard, P.A. and Cooley LLP as their bankruptcy counsel; Guggenheim Securities, LLC as their investment banker; A&G Realty Partners, LLC as lease disposition consultant and business broker; Gordon Brothers Retail Partners LLC, Hilco Merchant Resources LLC and Malfitano Advisors, LLC as liquidation consultant; and Donlin, Recano & Company, Inc., as claims and noticing agent. IMR SECURITY: Hires Nilda Gonzalez-Cordero as Counsel ----------------------------------------------------- IMR Security & Investigation Services, LLC, received approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Nilda Gonzalez-Cordero, Esq., as its legal counsel. Ms. Gonzalez-Cordero will advise the Debtor of its powers and duties under the Bankruptcy Code and will provide other legal services in connection with its Chapter 11 case. The Debtor will pay the attorney an hourly fee of $200. Paralegals assisting her will be paid $75 per hour. The Debtor paid the attorney a retainer in the amount of $8,000. Ms. Gonzalez-Cordero and her staff are "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. Ms. Gonzalez-Cordero maintains an office at: Nilda M. Gonzalez-Cordero, Esq. P.O. Box 3389 Guaynabo, PR 00970 Tel: 787-721-3437/(787) 724-2480 Email: ngonzalezc@ngclawpr.com About IMR Security & Investigation Services IMR Security & Investigation Services, LLC, a privately held company in Puerto Rico that offers security and investigation services, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 19-04668) on Aug. 16, 2019. At the time of the filing, the Debtor had estimated assets of between $100,000 and $500,000 and liabilities of between $1 million and $10 million. The case is assigned to Judge Enrique S. Lamoutte Inclan. Nilda M. Gonzalez-Cordero, Esq., is the Debtor's counsel. IMR SECURITY: Taps Luis Cruz Lopez as Accountant ------------------------------------------------ IMR Security & Investigation Services, LLC, received approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Luis Cruz Lopez as its accountant. Mr. Lopez will provide these services: a. supervise the accounting affairs of the Debtor and its operations; b. prepare or review the Debtor's monthly operating reports and other accounting reports necessary for the proper administration of its bankruptcy estate; c. prepare the projections and all other analysis required for the proposal and confirmation of a Chapter 11 plan; d. meet with the Debtor and its counsel to manage bankruptcy affairs; and e. attend hearings if needed. The Debtor will pay the accountant a monthly fee of $150. The retainer fee is $6,000. Mr. Lopez is "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. Mr. Lopez maintains an office at: Luis Cruz Lopez, C.P.A. 172 La Coruna St. Ciudad Jardin Caguas, PR 00727-1354 About IMR Security & Investigation Services IMR Security & Investigation Services, LLC, a privately held company in Puerto Rico that offers security and investigation services, sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 19-04668) on Aug. 16, 2019. At the time of the filing, the Debtor had estimated assets of between $100,000 and $500,000 and liabilities of between $1 million and $10 million. The case is assigned to Judge Enrique S. Lamoutte Inclan. Nilda M. Gonzalez-Cordero, Esq., is the Debtor's counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: $202.3 Billion Spent in 2016 to 2019 Fiscal Yrs. ------------------------------------------------------------------- Asha Javeed at Trinidad Express reports that for the past four years, the Trinidad & Tobago Government has spent, or budgeted to spend, about $202.33 billion. It has taken on $24 billion in additional debt. Of the $202.33 billion spent in the 2016 to 2019 fiscal years, over $186.8 billion, or 92.4 per cent, was in recurrent expenditure, according to Trinidad Express. That's money spent on wages and salaries, transfers and subsidies, goods and services and interest payments, the report notes. Only 7.6 per cent of the $202.3 billion, some $15.5 billion, was used for capital expenditure and net lending, according to the July Economic Bulletin published by the Central Bank, the report adds. ================= V E N E Z U E L A ================= VENEZUELA: Guaido Says CAF Preparing to Offer $400 Million Loan --------------------------------------------------------------- Alex Vasquez and Fabiola Zerpa at Bloomberg News reports that Venezuela's opposition leader Juan Guaido said the Corporacion Andina de Fomento regional development bank is preparing to offer a $400 million line of credit to help "alleviate" Venezuela's crisis. Guaido, who is recognized by more than 50 countries as the country's rightful leader, said the money wouldn't be handed to Nicolas Maduro's regime, without providing details, according to Bloomberg News. CAF, as the lender is known, handed Venezuela a $500 million loan last year to help Maduro repay existing debt with the lender amid criticism by the opposition that it was illegal and fraudulent, Bloomberg News notes. A press official for CAF didn't immediately respond to requests for comment. The plan is for the loan to be managed by a third party, such as an inter-governmental development program, and the funds will be dedicated to mitigate the country's electric crisis, according to two opposition lawmakers with direct knowledge of the matter who asked not to be named as the terms of the deal are still being negotiated, Bloomberg News says. "Power failures keep 80% of homes without water supply," Guaido said from the National Assembly, Bloomberg News relates. "We want Venezuelans to have electricity in their homes," he added. With most sources of new financing closed off by U.S. sanctions and a default on its international bonds, Venezuela is in the throes of hyperinflation and a severe economic crises, which has led to a series of major power outages this year, Bloomberg News notes. The financial isolation has forced officials to use a patchwork of methods to move money around, including clandestine gold sales and cryptocurrency payments, Bloomberg News discloses. Maduro recently visited Moscow, where President Vladimir Putin, one of the embattled regime's few international allies, made no offer of any major financial support, Bloomberg News adds. About Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South Ameri ca, 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 * * *