/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/191108.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, November 8, 2019, Vol. 20, No. 224 Headlines B R A Z I L GLOBO COMUNICACAO: Fitch Lowers IDR to BB, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Loses US$37.7M+ in Trade on Haiti Turmoil DOMINICAN REPUBLIC: Major Port to Link With Dutch Possessions DOMINICAN REPUBLIC: Trader Issues US$19M, 4Yr Bond at 9.25% J A M A I C A JAMAICA: Tobacco Industry Regulations Act to be Repealed SCOTIABANK JAMAICA: Unionized Employees are Reportedly Restive P U E R T O R I C O BOBALU INC: Seeks to Hire Tamarez CPA as Accountant DESTINATION MATERNITY: U.S. Trustee Forms 5-Member Committee PUERTO RICO: Eyes New Debt Policy, Will Pay Holiday Bonus - - - - - =========== B R A Z I L =========== GLOBO COMUNICACAO: Fitch Lowers IDR to BB, Outlook Stable --------------------------------------------------------- Fitch Ratings downgraded Globo Comunicacao e Participacoes S.A.'s Long-Term Foreign Currency Issuer Default Rating and its USD unsecured notes to 'BB' from 'BB+'. The Rating Outlook on the FC IDR is Stable. Fitch has affirmed the LT Local Currency IDR at 'BBB', and has revised the Outlook to Negative from Stable. Fitch has affirmed the National Scale ratings at 'AAA(bra)'/Stable. The downgrade of the FC IDR and USD notes reflects the reduced commitment to maintain cash abroad. Additionally, the hard-currency balances held abroad are insufficient to warrant notching above Brazils Country Ceiling of 'BB'. The Stable Outlook on the FC IDR reflects the Stable Outlook on the Brazilian sovereign. The Negative Outlook on the LC IDR reflects the continued deterioration in Globo's operating performance, amid a challenging broadcast environment in Brazil, as well as the migration of advertising revenues to other platforms. Globo's financial structure continues to be very strong, owing to the company's negative net debt position, which offsets concerns about operating performance to a degree, and supports the company's investment grade LC IDR. KEY RATING DRIVERS Country Ceiling Constrains FC Rating: The company's FC IDR and the USD notes' ratings are constrained by Brazil's Country Ceiling of 'BB', as the company no longer holds sufficient dollar-denominated balances abroad to warrant an uplift. Fitch estimates that the vast majority the company's revenue are BRL-denominated, with insufficient dollar-denominated revenue to pierce Brazil's Country Ceiling, absent consistently holding larger cash balances abroad. Net Cash Position Supports LC Rating: Globo boasts one of the strongest financial structures in the region, backed by its net cash position. Globo's cash and equivalents balance of BRL10.2 billion is substantially higher than its total debt of BRL3.4 billion. Despite the fall in operating income, Fitch expects Globo to generate positive pre-dividend FCF, as the company's capex and payments for exhibition rights should be covered by cash flow generation. The company has flexibility to delay or reduce its dividend payments. Dependent on Advertising Revenues: Compared to 'BBB' category media peers, Globo has a heavier reliance (60%) on advertising revenues, which exposes it to seasonality in the short term, as well as events such as the World Cup. Longer term, corporate spending on advertising is correlated to the economic growth, and Globo's advertising revenues have failed to keep pace with inflation. While Fitch expects performance in the second half of 2019 to pick up from the first, the cyclicality of Globo's revenues is a constraining factor. Declining Operating Performance: Globo's operating performance continues to fall from pre-recession highs. As of June 30, 2019, LTM revenues have fallen by 7.7%, led by the company's advertising segment, which accounts for over 60% of consolidated revenues. The company's gross margin has simultaneously declined from 29.9% of revenues to 23.4%, as rising prices for exhibition rights and labor costs increased operating expenses. The decline in gross margin has translated into declining operating income and EBITDA, as SG&A costs have been more stable. Weak Advertising Outlook: The deep recession and subsequent stagnation have depressed advertising spending in Brazil. While Fitch expects the Brazilian economy to grow by around 2% in the medium term, competitive challenges create uncertainty whether Globo can leverage its position in Brazilian mass media to benefit from the gradual recovery. Globo is the largest broadcaster and pay-TV provider in Brazil, with 40% of the national audience share; Globo's viewership share has been declining. Declining viewership and the shift of advertising to digital and social media platforms act as long-term headwinds to Globo's prospects. Mixed Prospects for Content: Fitch expects Globo to invest heavily in its own content production; in August 2019, Globo opened a new BRL209 million production facility. Fitch expects the company to invest increasing amounts on programming & content, excluding sports, as well as on technology to improve its streaming platform, Globoplay. Fitch expects that the programming & content segment will grow faster than advertising, reaching 40% of revenues by 2022, up from 36%. While growing exposure to content provides positive diversification and could help offset the trend in advertising somewhat, falling pay-TV penetration rates is an obstacle to Globo's pivot. DERIVATION SUMMARY Globo is well-positioned relative to Latin American peers, such as TV Azteca (B+/Stable) in terms of market position, content production, and financial profile. Globo's profitability and lack of operational diversification compare unfavorably with Grupo Televisa S.A.B. (BBB+/Stable), which has a large telecommunications presence and less reliance on advertising. Similarly, compared with U.S.-based investment-grade media companies, such as Viacom Inc. (BBB/Stable) and CBS Corporation (BBB/Stable), Globo's higher reliance on cyclical advertising revenue generation is a weakness, as is the declining money spent on Brazilian television broadcast advertising space and pay-TV penetration. This lack of cash flow diversification is offset by its materially stronger capital structure that supports Globo's Local Currency (LC) IDR of 'BBB'/Outlook Negative. The FC rating of Globo is constrained by the country ceiling of Brazil, which reflects the the lower sovereign rating on Brazil relative to Mexico and the U.S., as well as Fitch's assessment of higher transfer & convertibility risk. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Revenue to decline by around 1% in 2019, as advertising rebounds seasonally in 2H2019; - Longer term, advertising revenues to grow at around below 1% as GDP grows by approximately 2%, falling to 60% of revenues by 2022; - Longer term, content & programming to grow at approx. 3%; - Cost of Sales, Advertising, and Services to account for approximately 70%-75% of revenues; - SG&A costs approximately 20% of revenues in the long term; - Capex of approximately 3.0%-3.5% of revenues, up from recent history as the company invests in technology; - Net cash position of approximately BRL6.0 billion over the medium term. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action - An upgrade of the LC IDRs is unlikely, given the deterioration of the company's operating performance, and the Brazilian operating environment; - An upgrade of the LT FC IDR and the USD notes is unlikely, absent a commitment from the company and demonstrated track record of maintaining sufficient cash abroad to service hard-currency obligation; - An upgrade to Brazil's LT FC IDR and/or Country Ceiling would likely result in a positive rating action for Globo's LT FC IDR and USD notes. Developments That May, Individually or Collectively, Lead to Negative Rating Action - The LC IDR will be downgraded if the deterioration in advertising revenues and rising costs further contribute to margin compression and a decline in operating performance; - A downgrade to Brazil's LT FC IDR (BB-) and Country Ceiling (BB) would likely result in a negative rating action for Globo's LT FC IDR and USD notes. LIQUIDITY Globo has a net cash position, with total debt of BRL3.4 billion, and Fitch-adjusted cash and cash equivalents of BRL10.2 billion, as of June 30, 2019. The vast majority (i.e. 94.3%) of Globo's debt comprises three USD-denominated senior unsecured notes due in 2022, 2025, and 2027, with interest rates ranging from 4.8% to 5.1%. The remaining debt liabilities comprise BRL-denominated bank notes and CP, with maturities from 2019 - 2024. FULL LIST OF RATING ACTIONS Fitch has taken the following rating action: Globo Comunicacao e Participacoes S.A - Long-Term FC IDR downgraded to 'BB' from 'BB+'; Outlook Stable; - USD senior unsecured notes downgraded to 'BB' from 'BB+'; - Long-Term LC IDR affirmed at 'BBB'; Outlook revised to Negative from Stable; - National LT Rating affirmed at 'AAA(bra)'; Outlook Stable. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Loses US$37.7M+ in Trade on Haiti Turmoil ------------------------------------------------------------- Dominican Today reports that the country has lost out on over RD$2.0 billion (US$37.7 million) trade with Haiti after the several weeks of protests that have stunned that nation. According to the Comendador (west) Merchants and Exporters Association, trade in that area has been practically nil, hurting productive sectors of the country, the report notes. "We have stopped selling around two billion pesos, not counting the income generated by trade," the union told El Dia, the report relays. Trade with Haiti has slumped from 2017 to August this year, according to Customs figures. In that period, domestic exports to Haiti slid from US$591.12 million to US$568.3 million, according to Dominican Today. Haiti, Business Partner Local exports to Haiti are 9% of the total, surpassed only by the United States, which is the country's main trade partner, the report notes. Last February, after several demonstrations, the Dominican Republic Export and Investment Center (CEI- RD) said that trade fell by 45.2 million dollars after lower exports of rebar, T-shirts and shirts, adding the declines in portland cement, among others, and with this 281 companies dedicated to export of those products, the report adds. 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). DOMINICAN REPUBLIC: Major Port to Link With Dutch Possessions ------------------------------------------------------------- Dominican Today reports that that Foreign Minister, Miguel Vargas, said that the new maritime trade route, which begins this month, will help consolidate Dominican Republic's economy. Vargas made the announcement after concluding the eighth session of the National Competitiveness Council (CNC), headed by President Danilo Medina, according to Dominican Today. The foreign minister said the new route will link the port of Haina (south) with Curacao, and from there transported directly to Aruba and Bonaire, the report adds. 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). DOMINICAN REPUBLIC: Trader Issues US$19M, 4Yr Bond at 9.25% ----------------------------------------------------------- Dominican Today reports that the United Capital trader at the Dominican Republic Securities Exchange (BVRD) disclosed a bond issue of RD$1.0 billion (US$19 million), with a term of 4 years, at a fixed interest rate of 9.25%. It said that "once again as in the placement of 2017, the demand from the clients was higher than the offer, resulting in a pro rata of the issuance in its placement," according to Dominican Today. United Capital stands out as a securities market trader, occupying first place for the sixth consecutive year in the Dominican Republic Securities Exchange in the section with the highest trade volume, as well as the sixth consecutive year in the Finance Ministry's market creators program, the report notes. 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). ============= J A M A I C A ============= JAMAICA: Tobacco Industry Regulations Act to be Repealed -------------------------------------------------------- RJR News reports that cabinet has given approval for the Tobacco Industry Regulations Act to be repealed. Information Minister Karl Samuda, said the decision follows the closure of the Tobacco Industry Control Authority, which was established by the Act, according to RJR News. This is in keeping with the recommendations of the Public Sector Transformation Unit, the report notes. Samuda, who was speaking at post-Cabinet media briefing, noted that Jamaica, which ratified the World Health Organization Framework of Cooperation on Tobacco Control in 1983, has been party to the WHO's Framework Convention on Tobacco since July 2005, the report relays. With the repeal of the Act, Jamaica will be one step closer to full compliance with the obligations under the Convention, 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+'. RJR News reported in June 2019 that Steven Gooden, Chief Executive Officer of NCB Capital Markets, warned 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. SCOTIABANK JAMAICA: Unionized Employees are Reportedly Restive -------------------------------------------------------------- RJR News reports that unionized employees of Scotiabank Jamaica are reportedly restive. The Bustamante Industrial Trade Union (BITU), which represents the bank's employees, told RJR News that it had rejected a wage offer presented by the management. According to the union, Scotiabank is offering a 4.5 per cent increase in year one of the new contract period, and four per cent in the second year, the report notes. BITU President General Kavan Gayle said the union has informed the bank that the workers will take industrial action if the salary offer is not improved, the report says. The union represents one thousand workers at Scotiabank, the report adds. ===================== P U E R T O R I C O ===================== BOBALU INC: Seeks to Hire Tamarez CPA as Accountant --------------------------------------------------- Bobalu, Inc., seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire an accountant. In an application filed in court, the Debtor proposes to employ Tamarez CPA, LLC to provide these services: (a) reconciliation of financial information to assist Debtor in the preparation of monthly operating reports; (b) assist in the reconciliation and clarification of proof of claims filed and amount due to creditors, including tax investigation initiated by the PR Department of Treasury; (c) provide general accounting and tax services to prepare quarterly tax returns, withholding statements, year-end reports and income tax preparation; and (d) assist the Debtor in the preparation of supporting documents for its Chapter 11 reorganization plan. Tamarez will be paid a fixed monthly fee of $700. Albert Tamarez-Vasquez, the firm's accountant who will be providing the services, disclosed in court filings that he is "disinterested" within the meaning of Section 101(14) of the Bankruptcy Code. The firm can be reached through: Albert Tamarez-Vasquez Tamarez CPA, LLC P.O. Box 194136 San Juan, PR 00919-4136 Phone: (787) 795-2855 Fax: (787) 200-7912 Email: atamarez@tamarezcpa.com About Bobalu Inc. Bobalu Inc., a privately held company headquartered in Carolina, P.R., sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 19-05691) on Oct. 1, 2019. At the time of the filing, the Debtor had estimated assets of less than $50,000 and liabilities of between $1 million and $10 million. The case is assigned to Judge Mildred Caban Flores. The Debtor is represented by Enrique M. Almeida Bernal, Esq., and Zelma Davila, Esq., at Almeida & Davila, PSC. DESTINATION MATERNITY: U.S. Trustee Forms 5-Member Committee ------------------------------------------------------------ Andrew Vara, acting U.S. trustee for Region 3, on Nov. 1, 2019, appointed five creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases of Destination Maternity Corporation and its affiliates. The committee members are: (1) Pan Pacific, Ltd. Attn: Suk Won Lim, 12, Digital-ro 31-gil Seoul, Korea Phone: 82 2 3494 9322 Fax: 82 2 830 1011 (2) United Parcel Service, Inc. Attn: Jill Termini 55 Glenlake Parkway, NE Atlanta, GA 30328 Phone: 404-828-6455 Fax: 404-828-6912 (3) Doolim Corporation Attn: Demian Jeon 5F, Sungjin-bldg 47, Seongnae-ro 6-gil Gangdong-gu Seoul, Korea Phone: 82 2 2224 2028 Fax: 82 2 478 8635 (4) Brookfield Property REIT, Inc. Attn: Julie Minnick Bowden 350 N. Orleans Street, Suite 300 Chicago, IL 60654 Phone: 312-960-2707 Fax: 312-442-6374 (5) Furi Design Inc. Attn: Steven Lee 4225 St. Dominique, Suite 310 Montreal, Quebec, H2W2T5 Phone: 514-908-7224 Fax: 514-908-7224 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 Destination Maternity Destination Maternity is a designer and omni-channel retailer of maternity apparel in the United States, with the only nationwide chain of maternity apparel specialty stores, as well as a deep and expansive assortment available through multiple online distribution points, including our three brand-specific websites. As of August 3, 2019, Destination Maternity operated 937 retail locations, including 446 stores in the United States, Canada and Puerto Rico, and 491 leased departments located within department stores and baby specialty stores throughout the United States and Canada. It also sells merchandise on the Internet, primarily through Motherhood.com, APeaInThePod.com and DestinationMaternity.com websites. Destination Maternity sells merchandise through its Canadian website, MotherhoodCanada.ca, through Amazon.com in the United States, and through websites of certain of our retail partners, including Macys.com. Destination Maternity's 446 stores operate under three retail nameplates: Motherhood Maternity(R), A Pea in the Pod(R) and Destination Maternity(R). It also operates 491 leased departments within leading retailers such as Macy's(R), buybuy BABY(R) and Boscov's(R). Generally, the company is the exclusive maternity apparel provider in its leased department locations. Destination Maternity and its two subsidiaries sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 19-12256) on Oct. 21, 2019. As of Oct. 5, 2019, Destination Maternity disclosed assets of $260,198,448 and liabilities of $244,035,457. The Hon. Brendan Linehan Shannon is the case judge. The Debtors tapped Kirkland & Ellis LLP as legal counsel; Greenhill & Co., LLC as investment banker; Landis Rath & Cobb LLP as local bankruptcy counsel; Hilco Streambank LLC as intellectual property advisor; Prime Clerk LLC as claims agent; and Berkeley Research Group, LLC as restructuring advisor. BRG's Robert J. Duffy has been appointed as chief restructuring officer. PUERTO RICO: Eyes New Debt Policy, Will Pay Holiday Bonus --------------------------------------------------------- Luis Valentin Ortiz at Reuters reports that Puerto Rico would place restrictions on its future debt sales under proposed legislation that won praise from the bankrupt U.S. commonwealth's federally created financial oversight board. Puerto Rico's bankruptcy takes up the bulk of the island's $120 billion of debt and pension obligations and analysts have raised questions about the island's future market access due to the board's attempt to void some outstanding bonds, according to Reuters. Under legislation backed by Governor Wanda Vazquez Garced, the Puerto Rico Fiscal Agency and Financial Advisory Authority would be charged with developing a policy for the government and its public corporations that sets a limit on tax-backed debt, the report relays. The agency would also have to approve any debt issuance, which would be limited to maturities of no more than 30 years with proceeds allocated for only capital improvements, the report discloses. Principal payments would be required to begin within two years of issuance, the report relays. Debt refinancings would have to produce debt service savings without extending maturity dates beyond those on existing bonds, the report says. Exceptions would be made for bond refundings to address natural disasters or emergencies, the report notes. "Upon the possibility and need that the government returns to capital markets and in accordance with our public policy, this law establishes uniform and responsible processes for any future debt issuance," the governor said in a statement obtained by the news agency. The board said it welcomed a policy to prevent a repetition of "irresponsible fiscal management and debt issuances" that led to the island's financial crisis and subsequent 2017 bankruptcy filing, the report relays. The bill now heads to the legislature, where support for the measure was unclear, the report notes. Concerns have been raised about Puerto Rico's future ability to access the U.S. municipal market without paying a bruising penalty given the board's contention that more than $6 billion of general obligation bonds sold in 2012 and 2014 should be invalidated because they breached a debt limit in the island's constitution, the report says. Meanwhile, the governor and the board announced on Tuesday that public sector workers will receive about $60 million in Christmas bonuses this year, the report notes. In July, the board said its $20.2 billion, fiscal 2020 budget for Puerto Rico's central government would prohibit officials from moving money around to pay for things not in the board's fiscal plan like the bonus, which has been the subject of past spending disputes, the report says. The board said that the bonus is "part of the routine compensation package provided to public employees," and that it worked with the governor to identify funding to pay for it, the report adds. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ('PROMESA'). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21, 2017. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets, as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are on-board as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by Puerto Rico and other instrumentalities. White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative Capital LP. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed an official committee of retirees and an official committee of unsecured creditors of the Commonwealth. The Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The Creditors Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. Puerto Rico PBA The Puerto Rico Public Buildings Authority -- http://www.aep.gobierno.pr/-- is a public corporation created by Act No. 56 of June 19, 1958, as amended. The Authority is charged with satisfying the needs of design, construction, remodeling, improvements, operation and maintenance of the structures that the agencies, corporations and instrumentalities of the Commonwealth of Puerto Rico need to offer their services. Among the facilities that the Authority designs, builds and preserves are: schools, hospitals, police facilities, prisons, fire stations and government centers, among others. In addition, the Authority provides property leasing services and new spaces for server storage (Data Center). The Puerto Rico Public Buildings Authority, a/k/a Autoridad de Edificios Publicos de Puerto Rico (AEP), commenced a Title III case under PROMESA on Sept. 27, 2019 (Bankr. D.P.R Case No. 19-05523). ********* 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 * * *