/raid1/www/Hosts/bankrupt/TCRLA_Public/200224.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
Monday, February 24, 2020, Vol. 21, No. 39
Headlines
A R G E N T I N A
ARGENTINA: Investors Brace for Losses in Debt Talks
STONEWAY CAPITAL: Fitch Lowers $665MM Sec. Notes Due 2027 to C
B R A Z I L
BRAZIL: Companies Lose R$48 Billion in Value to Coronavirus
ITAU UNIBANCO: Fitch to Rate Sub. Perpetual T1 Notes 'B(EXP)'
ITAU UNIBANCO: Moody's Rates New Add'l. Tier 1 Securities B2(hyb)
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: New Law Will Expand Credit to MSMEs
DOMINICAN REPUBLIC: Scrubbed Election Roils Economy, Expert Warns
M E X I C O
TELEFONICA: Incurs 4Q Loss Amid Latin American Overhaul
P U E R T O R I C O
TALLER DE FOTOPERIODISMO: PR Recovery Says Plan Unfeasible
X X X X X X X X
[*] BOND PRICING: For the Week February 17 to February 21, 2020
- - - - -
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A R G E N T I N A
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ARGENTINA: Investors Brace for Losses in Debt Talks
---------------------------------------------------
Benedict Mander and Colby Smith at The Financial Times report that
investors are braced for acrimonious negotiations with Argentina
and a possible default after the IMF backed a big haircut for
creditors without urging the country to implement austerity
measures.
Bondholders were alarmed when the IMF failed to demand that
Argentina rein in its budget deficit, according to The Financial
Times. They feared that the fund was siding with President Alberto
Fernandez, whose government has insisted that it will only reach a
balanced budget by 2023, with no reduction this year, the report
note.
"The IMF is being too lenient," said one international investor,
who fears that the fund will not support private creditors'
attempts to convince Argentina to reach a "more stable fiscal
position" that would enable debts to be repaid. "The only way we
have left is by not participating in a debt deal," the investor
added.
The IMF -- which has lent Argentina $44 billion as part of a
record-setting $57bn bailout since a currency crisis in 2018
--backed Buenos Aires on Wednesday in a statement that deemed the
country's $100bn of foreign debt to be unpayable.
Although IMF officials had earlier insisted that the agency was
legally prohibited from allowing a haircut on the money it is owed
by Argentina, in response to demands by local authorities, it
called for a "definitive" debt restructuring that would entail a
"meaningful" haircut on private creditors' bonds, the report
relay.
"How many times do [investors] need to be told? They were told by
[Joseph] Stiglitz that they were going to be disappointed, and the
market said we don't believe you," said another international
portfolio manager, referring to the Nobel laureate close to
Argentina's economy minister Martin Guzman who warned recently that
"significant haircuts" would be required, the report relay.
"Then they were told by Fernandez and Guzman that they were going
to be disappointed, and the bonds traded down just for one day and
then went back up. And now this," the report note.
Even so, the fund said at the end of what it called "very
productive" week-long talks with government officials in Buenos
Aires that it wanted a more detailed economic plan that explained
how Argentina intended to repay its creditors, who have also been
clamouring for clearer plans from the government. The statement
also urged authorities to make a greater effort to reduce one of
the world's highest inflation rates, the report relays.
"We are not surprised by the statement from the IMF but would have
welcomed more analytical data . . . to see what gaps
exist and how creditors can help bridge such gaps," said Hans
Humes, chief executive officer of Greylock Capital, which is
leading one of the bondholder groups. "I think private creditors
are willing to make concessions in the same fashion as the IMF,"
the report relays.
Mr. Humes urged the government to hire a financial adviser to move
forward with formal negotiations, the report notes. Lazard and
Rothschild & Co are among the firms under consideration by the
government, according to people familiar with the matter, the
report discloses.
"Argentina is not anywhere close to the situation as Greece was or
frankly where Argentina was in 2001," added Mr. Humes. He noted
that in the 2012 Greek restructuring -- which was one of the
largest in the history of sovereign debt crises — creditors
accepted a 53.5 per cent haircut or loss on the face value of their
debt. "It will only be if any of the stakeholders . . .
mismanage the process," Mr. Humes added.
Several groups have formed in recent months in anticipation of a
debt restructuring that Mr. Guzman has indicated he wants to
complete by March 31, the report notes. Greylock, T Rowe Price and
GMO are among members of one group, while BlackRock, Fidelity and
Pimco have co-ordinated their efforts with two other firms,
according to people familiar with the matter, the report adds.
A group advised by Dennis Hranitzky at law firm Quinn Emanuel
Urquhart & Sullivan has also taken shape, according to people who
spoke under the condition of anonymity, with hedge funds Monarch
Alternative Capital and HBK Capital Management among roughly 20
other funds involved, the report relays.
"Ultimately, whether or not Argentina defaults is going to be a
political decision. The debt can be restructured easily," said a
senior official from the previous Argentine government. "The
question is whether they do that, or whether they decide that even
if they do, they won't recover market access anyway, as some argue
— so it would be better to default and not have to pay anything,"
the official added.
About Argentina
Argentina is a country located mostly in the southern half of South
America. It's capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.
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.
Moody's credit rating for Argentina was last set at Caa2 from B2
with under review outlook. Moody's rating was issued on Aug. 30,
2019. S&P Global Ratings, in December 2019, raised its foreign
currency sovereign credit ratings on Argentina to 'CC/C' from
'SD/D'. S&P's outlook on the long-term sovereign credit ratings is
negative. Fitch Ratings, in December 2019, upgraded Argentina's
Long-Term Foreign-Currency Issuer Default Rating to 'CC' from 'RD',
and its Short-Term Foreign-Currency IDR to 'C' from 'RD'. DBRS,
Inc. meanwhile downgraded Argentina's Long-Term and Short-Term
Foreign Currency - Issuer Ratings to Selective Default (SD), from
CC and R-5, respectively, also in December 2019.
STONEWAY CAPITAL: Fitch Lowers $665MM Sec. Notes Due 2027 to C
--------------------------------------------------------------
Fitch Ratings has downgraded Stoneway Capital Corporation's $665
million senior secured notes due in 2027 to 'C' from 'CCC'. The
rating has been removed from Rating Watch Negative.
RATING RATIONALE
The downgrade reflects Stoneway's Consent Solicitation to
bondholders to defer the scheduled principal payment on the notes
due on March 1 (USD27,808,970) to Sept. 2, 2020, considering
Stoneway's weakened financial profile due to the rising payment
delinquencies in the past months from CAMMESA, project's sole
offtaker. A non-approval of the Bondholders Consent could lead to a
default on the notes. Currently, Fitch does not have updated
information with the respect to the available liquidity within the
project´s accounts.
KEY RATING DRIVERS
Stoneway's issuance rating is underpinned by its operational stage,
the power purchase agreements (PPAs) with sole off-taker CAMMESA,
moderate operating risks established through fixed-priced operation
and maintenance (O&M), and overhaul costs with an experienced
counterparty.
The project benefits from an adequate debt structure, with fixed
interest rate, adequate covenants and a six month debt service
reserve account, which will be funded after project total
completion.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action include:
-- Positive rating actions are not likely in the short term;
Developments that May, Individually or Collectively, lead to a
Negative Rating Action include:
-- Default on the debt;
-- Launch and successful completion of a debt restructuring..
SECURITY
The notes were issued at a 10% fixed rate and fully amortizing with
a final maturity in 2027. The notes are senior secured obligations
by a first-priority lien on substantially all the assets of the
issuer and the guarantors of the notes, the issuer and sponsor's
subsidiaries participating in the project.
Stoneway is a private company originally constituted with the
purpose of constructing, owning, and operating four simple-cycle
power-generating plants with a total installed capacity of 686.5
MW, through two indirect subsidiaries, Araucaria Energy S.A. and
SPI Energy S.A.
Stoneway installed capacity is 806.5 MW, considering the recent 120
MW the expansion of San Pedro plant into a combined-cycle power
generation project.
ESG CONSIDERATIONS
Unless otherwise disclosed in this 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 the way in which they are being managed by the
entity.
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B R A Z I L
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BRAZIL: Companies Lose R$48 Billion in Value to Coronavirus
-----------------------------------------------------------
Richard Mann at Rio Times Online reports that since the first day
that the coronavirus outbreak in China hit global financial markets
- a month ago on Friday, February 21 - Brazilian companies
exporting commodities have lost R$47.709 billion (US$12 billion) in
market value.
The drop reflects risk aversion amidst uncertainty as to the impact
the disease will have on the Asian and world economies, according
to Rio Times Online.
The time for the epidemic to be under control is also included,
with a significant reduction in contamination, the report notes.
Despite the billion-dollar devastation, experts estimate that the
shares have not yet felt the full negative impact, the report
adds.
As reported in the Troubled Company Reporter-Latin America, Fitch
Ratings in November 2019 affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating at 'BB-'. The Rating Outlook is
Stable.
ITAU UNIBANCO: Fitch to Rate Sub. Perpetual T1 Notes 'B(EXP)'
-------------------------------------------------------------
Fitch Ratings assigned an expected rating of 'B(EXP)' to Itau
Unibanco Holding S.A. subordinated perpetual T1 notes. The amount
of the U.S. dollar-denominated notes is yet to be determined. The
notes will be issued under IUH's Global Medium-Term Note Programme
through IUH's Grand Cayman Branch. These Tier 1 Subordinated Notes
constitute unsecured and subordinated obligations of the Issuer.
The notes will be issued for a principal amount and interest rate
that will be determined at the time of the issuance. The notes will
have no fixed maturity date as they are perpetual securities;
however, the notes may be redeemed subject to the prior approval of
the Brazilian Central Bank at IUH's option on the fifth year
anniversary of this issuance or any coupon thereafter. The net
proceeds of these notes will be used for general corporate
purposes.
The interest rate will be fixed, and the interest rate payment
frequency will be semi-annual. The payment of interest amounts due
with respect to the Tier 1 Subordinated Notes shall be made solely
with funds from profits and profit reserves available for
distribution as of the latest date of determination, in accordance
with Brazilian Corporate Law. Any interest amounts not paid as a
result of the foregoing shall not accrue and shall not be deemed
due and payable and shall not be deemed an event of default.
The final rating is subject to the receipt of final documentation
conforming to information already received by Fitch.
KEY RATING DRIVERS
IUH's Long-Term Issuer Default Rating (IDR)) is 'BB'/Stable and its
Viability Rating (VR) is 'bb'. Fitch uses IUH's VR as the anchor
rating for the expected rating. Due to the high loss-absorbing
features of this subordinated, perpetual and unsecured issuance,
Fitch's baseline scenario is that these securities will be notched
-4 from the VR anchor (-2 for loss severity, plus -2 for
non-performance risk). However, Fitch's criteria factors in the
compression issue where the VR is 'bb+' or lower, providing some
room for a narrower notching. Therefore, the overall notching for
these securities is -3, given that the current IUH's VR rating is
non-investment grade.
The notes have the option to defer coupon payments on a
non-cumulative basis subject to certain conditions being met, and
are subject to write-down if common equity Tier 1 (CET1) ratio
falls below 5.125%. In Fitch's view, both the loss severity and the
non-performance risk of these securities are relatively higher than
the outstanding and legacy IUH's T2 hybrid securities.
IUH is the largest private-sector financial conglomerate in Brazil
and Latin America, and its Viability Rating (VR) of 'bb' is one
notch above Brazil's sovereign rating, reflecting the exceptionally
strong business and financial profile of the bank relative to the
operating environments in which it operates.
RATING SENSITIVITIES
IUH's expected rating for the proposed T1 Perpetual Notes is
sensitive to a change by Fitch to IUH's VR. As the VR is the anchor
of the notes' ratings, their rating is primarily sensitive to any
change in the bank's VR. IUH's VR is highly influenced by the
Brazilian operating environment and the bank's strong franchise and
diversified business model. The bank's risk appetite is
commensurate with the operating environment. IUH's IDRs and VRs are
currently constrained by the sovereign ratings. However, if the
latter eventually changes to become an investment grade VR (i.e.
'bbb-' or higher), then the notching of these notes will change to
a rating level equivalent to -4 from the bank's VR, considering
that the notching compression benefit would no longer apply in that
scenario.
ESG CONSIDERATIONS
Unless otherwise disclosed in this 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 the way in which they are being managed by
the entity.
ITAU UNIBANCO: Moody's Rates New Add'l. Tier 1 Securities B2(hyb)
-----------------------------------------------------------------
Moody's Investors Service assigned a B2(hyb) rating to the
Additional Tier 1 non-viability contingent capital instruments to
be issued by Itau Unibanco Holding S.A. (Cayman Islands) under the
company's $100 billion multi-seniority Global Medium Term Note
Program, rated (P)B2 for AT1 subordinated notes.
The notes, which will have an optional redemption on the first call
date in the fifth year or on any Interest Payment Date thereafter,
subject to the approval of the Central Bank or any other applicable
Brazilian Governmental Authority, are Basel III-compliant and the
terms and conditions have been defined with the purpose of
qualifying the instrument as Additional Tier 1 capital pursuant to
Brazilian regulations. The rating is subject to receipt of final
documentation, the terms and conditions of which are not expected
to change in any material way from the draft documents that Moody's
has reviewed.
RATINGS RATIONALE
The B2(hyb) rating assigned to the notes is positioned three
notches below the ba2 adjusted baseline credit assessment (adjusted
BCA) of Itau Unibanco S.A (IU), in line with Moody's standard
notching guidance for Additional Tier 1 securities. Under Moody's
framework, one notch reflects the high loss these securities are
likely to face in the event of a failure of the bank, due to their
deep subordination and limited protection from any residual equity.
The two additional notches reflect the higher risk associated with
the non-cumulative coupon skip mechanism, which could precede the
bank reaching the point of non-viability.
IUH is the holding company of IU, which contributes 99% to the
holding's earnings. As such, AT1 obligations at the holding company
incorporate their structural subordination to IU's senior debt
obligations, which are rated (P)Ba2.
Under the terms of the notes, principal will be fully written down
in the event that (i) IUH's regulatory Common Equity Tier 1 capital
ratio is below 5.125%; (ii) if a public sector capital injection --
or equivalent support -- would otherwise be necessary to maintain
the bank as a going concern, (iii) if the Brazilian Central Bank
determines at its sole discretion that a write-down is necessary to
maintain the bank as a going concern, or (iv) if the Central bank
temporarily assumes control of the bank or, otherwise, intervenes
in it.
Moody's considers a CET1 ratio of 5.125% to be at or close to a
bank's point-of-non-viability. Moody's notes that Brazil's minimum
required CET1 ratio is 4.5%. In December 2019, IUH reported a CET1
ratio of 14.4%, which was 9.3% above the write-down trigger.
The notes will be (i) subordinated in rights of payment to all
IUH's existing and future senior to Tier 1 liabilities, (ii) junior
to all other present or future "preferred" subordinated
indebtedness, (iii) rank pari passu and without preference among
all other existing and future Tier 1 liabilities and (iv) senior to
Common Equity Tier 1 Capital.
The securities also include a mandatory coupon skip mechanism,
which is non-cumulative, if (i) the bank does not have sufficient
distributable profits and accumulated profit reserves to make the
coupon payment; (ii) the bank defaults and/or the regulator imposes
any restriction on the payment of dividends; or (iii) the coupon
payment would result in the bank's capital ratio falling below the
minimum regulatory requirements for Common Equity Tier 1 Capital,
Tier 1 Capital and Regulatory Capital.
IU's ba2 baseline credit assessment (BCA) reflects the bank's
strong earnings recurrence resulting from Itau's well-established
position in diversified businesses, which ensures pricing power and
scale. In 2019, IUH reported net income to tangible assets of
1.54%, reflecting the expansion of its retail banking activities,
supported by more favorable credit risk conditions. The low
interest rates and inflation, and the gradual economic recovery
also led to IUH growing the share of loans to small and very small
companies and consumer products. Combined with lower funding costs,
the higher-yielding loans supported margins, helping offset
pressures from increasing competition on fee-based businesses,
particularly in card acquiring and asset management.
Asset quality has remained stable in the quarter, with problem
loans at 3.5% of total loans, backed by conservative reserve levels
of 6.7% of total loans. Accelerating loan growth, at the pace of
11% year-over-year, and higher dividend payout pressured
capitalization, with Moody's tangible common equity ratio declining
to 9.4% of risk weighted assets, from 10.7% on the year prior,
however, remaining adequate to support further loan growth.
Moody's believes IUH's exposure to environmental risks is low,
consistent with its general assessment for the global banking
sector. IUH's exposure to social risks is moderate, consistent with
Moody's general assessment for the global banking sector. As well,
governance risks are largely internal rather than externally
driven. Moody's does not have any particular concerns with IUH's
governance.
WHAT COULD CHANGE THE RATINGS UP OR DOWN
The ratings of the Additional Tier 1 notes are notched from IU's
adjusted BCA. As such, the ratings of the securities will move in
tandem with IU's adjusted BCA, which does not incorporate any
affiliate support. IU's ratings have a stable outlook and is
currently constrained by Brazil's sovereign debt rating of Ba2,
with stable outlook.
IU's BCA could be upgraded if Brazil's sovereign rating is
upgraded, and if the bank maintains strong asset quality, capital
and profitability metrics supporting a continued strengthening in
its loss-absorbing capital buffers.
Conversely, the rating assigned to these notes would face downward
pressure if Brazil's sovereign rating is downgraded or if IU's
asset quality, capital and profitability weaken materially.
LIST OF AFFECTED RATINGS
The following rating was assigned to Itau Unibanco Holding S.A.
(Cayman Islands):
Foreign currency preferred stock non-cumulative securities debt
rating of B2(hyb)
PRINCIPAL METHODOLOGY
The principal methodology used in this rating was Banks Methodology
published in November 2019.
Itau Unibanco Holding S.A. is headquartered in Sao Paulo, and is
the bank-holding company of Itau Unibanco financial conglomerate.
IUH had consolidated assets in the amount of BRL1,738.7 billion and
shareholders' equity of BRL132 billion as of December 30, 2019.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: New Law Will Expand Credit to MSMEs
-------------------------------------------------------
The Dominican Today reports that the Industry and Commerce Ministry
(MICM) said that the recently enacted Law 45-20 on Transferable
Guarantees will expand credit for small and medium and
micro-businesses (MSMEs).
In a press release, the institution affirmed that the law is "very
positive," since it establishes the legal framework of the security
guarantees regime, the electronic security guarantees system and
the execution processes related to those guarantees, according to
The Dominican Today.
It said the legislation establishes a unitary legal regime for the
incorporation, effectiveness, publicity, registration, priority,
execution and everything related to guarantees, the report notes.
"The rule reinforces the legal security to do business in the
country and will be highly beneficial for small and medium
enterprises, as it will boost the credit directed to this sector
that makes up most of the productive chain of the nation's
economy," 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 in April 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: Scrubbed Election Roils Economy, Expert Warns
-----------------------------------------------------------------
The Dominican Today reports that after the suspension of municipal
elections in the Dominican Republic, economists have warned that
the unprecedented event will have a negative impact on the economic
dynamics of 2020.
Regional Sustainable Economic Strategies Center (CREES) executive
vice president Ernesto Selman tweeted that he believes that the
suspension of elections creates an institutional crisis that
affects the image of the Dominican Republic abroad, according to
The Dominican Today.
"Democracy in question calls into question the future. The
uncertainties that are generated affect the perception of country
risk, the business climate and investments," said the economist,
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 in April 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).
===========
M E X I C O
===========
TELEFONICA: Incurs 4Q Loss Amid Latin American Overhaul
-------------------------------------------------------
Ian Mount at The Financial Times reports that Telefonica posted a
net loss for the fourth quarter, as restructuring costs and
impairments from Mexico and Argentina underscored the challenges
the company faces as its overhauls its business and reorients its
strategy in Latin America.
The Spanish telecoms company said that revenues during the quarter
dipped 4 per cent to EUR12.4 billion, slightly beating the
EUR12.38bn expected by analysts polled by Bloomberg. The fourth
quarter net loss of EUR202 million fell short of analyst
expectations of a EUR715.7m net profit, according to The Financial
Times. Removing currency headwinds, the company said its
fourth-quarter revenue rose 2 per cent on the same period in 2018,
the report notes.
In November, the Spanish telecoms group said it would focus its
investment on its domestic market, Brazil and the UK and Germany,
the report relays. The remaining eight Latin American markets in
which it operates, including Mexico, Colombia and Argentina, are to
be carved out into a separate unit and earmarked for potential
sale, the report discloses. The company also announced that two
new operating businesses - Telefonica Tech and Telefonica Infra --
would be created as part of the overhaul, the report relays.
Telefonica reported 3.2 per cent revenue growth for full year 2019
on an organic basis, with growth in its four main markets. It
predicted "stable" revenues for 2020, the report notes.
Telefonica's net debt, a key focus of executive chairman Jose Maria
Alvarez-Pallete, fell 8.1 per cent in 2019, to EUR37.74 billion,
the report relays.
"2019 was an important year for Telefonica," Mr. Alvarez-Pallete
said in a statement. "We delivered very strong free cash flow in
2019, leading to a continued reduction in debt for 11 consecutive
quarters, also helped by disposals and other actions to improve
return on capital employed," the report notes.
Telefonica's fourth-quarter earnings highlighted the obstacles the
company has in Latin America. Its fourth quarter operating income
before depreciation and amortisation (oidba) was EUR3.67 billion,
well below analyst expectations of EUR4.18 billion, on the back of
impairments in Argentina and Mexico as well as restructuring costs,
the reprot discloses.
Telefonica's transformation plans yielded several bright spots, the
report relates. The company said it had achieved more than EUR420
million in savings in 2019 from its digital transformation plan,
and it said that by 2022 it expects to see about EUR2 billion in
additional revenue from Telefonica Tech, a new technology unit
focused on cyber security, cloud services and the internet of
things, the report notes.
Also, in its highly competitive home market, the telecoms group
posted quarterly revenue growth of 0.4 per cent, to EUR3.27
billion, the report relates.
=====================
P U E R T O R I C O
=====================
TALLER DE FOTOPERIODISMO: PR Recovery Says Plan Unfeasible
----------------------------------------------------------
PR Recovery and Development JV, LLC, a secured creditor of debtor
Taller de Fotoperiodismo, Inc., objects to the Debtor's disclosure
statement.
In its objection, PR Recovery notes that:
* Pursuant to the Disclosure Statement, the Plan will be
implemented with the continued operation of Debtor's business
endeavors and the obtaining of additional licenses and
accreditations to offer educational services in Puerto Rico, which
will allegedly result on an expansion of the services already
offered in the communities and on the Debtor's premises, through
the funds received by governmental agencies. It is uncertain if
and when these events will take place. Such a Plan lacks adequate
means of implementation, is not feasible and is un-confirmable.
* PR Recovery, the Debtor's largest, over-secured creditor, would
not be paid in full pursuant to the terms of the proposed Plan. As
an oversecured creditor, PR Recovery is entitled to the full value
of its claim (Claim No. 32) as of the petition date, plus
postpetition interest on such claim, and any reasonable fees,
costs, or charges provided for under the relevant agreements
between the parties, up to the value of the collateral, including
the Real Property and the Personal Property.
* The Plan discriminates unfairly against PR Recovery, is not
fair and equitable and hence not subject to cram-down. The
proposed Plan appears not to retain all of PR Recovery's liens and
establishes payment terms to PR Recovery subject to a speculative
appraisal value of the Real Property -- without considering any
liens on Personal Property -- that pretends to cut the stated value
of the Real Property in half for confirmation purposes.
A full-text copy of PR Recovery's objection dated Jan. 28, 2020, is
available at https://tinyurl.com/vbqbk83 from PacerMonitor at no
charge.
PR Recovery is represented by:
ANTONETTI MONTALVO & RAMIREZ COLL
JOSE L. RAMIREZ-COLL
P.O. Box 13128
San Juan, PR 00908
Tel: (787) 977-0303
Fax: (787) 977-0323
E-mail: jramirez@amrclaw.com
About Taller De Fotoperiodismo
Taller de Fotoperiodismo, Inc., is a local non-profit corporation
created under the laws of the Commonwealth of Puerto Rico. The
foundation offers photojournalism workshop to children, youth and
adults. It is directed by its president, Mr. Pedro Borges.
Prior to the filing of the voluntary petition, a judicial creditor
performed a series of garnishment of Debtor's bank accounts
pursuant to a State Court order. The financial decline was
triggered by a significant reduction in income and complications
with the transition of leadership caused by the decease of the
former president. The totality of this circumstances resulted in
the Debtor's insolvency.
Taller De Fotoperiodismo Inc. sought chapter 11 protection (Bankr.
D.P.R. Case No. 19-00091) on Jan. 10, 2019. The Debtor was
estimated to have $1 million to $10 million in assets and
liabilities. The Hon. Enrique S. Lamoutte Inclan is the case
judge. Javier Vilarino of VILARINO & ASSOCIATES LLC is the
Debtor's counsel.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week February 17 to February 21, 2020
---------------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL
MIE Holdings Corp 7.5 56.4 4/25/2019 HK USD
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD
Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR
Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD
Fospar S/A 6.5 1.2 5/15/2026 BR BRL
Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP
Yida China Holdings Lt 7.0 74.3 4/19/2020 CN USD
Noble Holding Internat 6.1 62.0 3/1/2041 KY USD
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Provincia del Chubut A 4.5 2208 3/30/2021 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Empresa de Transporte 4.3 30.9 7/15/2020 CL CLP
Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD
Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD
Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD
Polarcus Ltd 5.6 71.8 7/1/2022 AE USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD
KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD
Noble Holding Internat 5.3 60.5 3/15/2042 KY USD
SACI Falabella 2.3 50.6 7/15/2020 CL CLP
Sylph Ltd 2.4 65.1 9/25/2036 KY USD
Banco Security SA 3.0 27.4 6/1/2021 CL CLP
Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD
Enel Americas SA 5.8 32.7 6/15/2022 CL CLP
Empresa Provincial de 12.5 0.0 1/29/2020 AR USD
Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL
Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD
China Huiyuan Juice Gr 6.5 46.6 8/16/2020 CN USD
Odebrecht Finance Ltd 7.0 17.0 4/21/2020 KY USD
Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD
Noble Holding Internat 6.2 62.2 8/1/2040 KY USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY
Plaza SA 3.5 38.3 8/15/2020 CL CLP
Banco Security SA 3.0 5.6 7/1/2019 CL CLP
Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD
Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP
Sociedad Austral de El 3.0 17.0 9/20/2019 CL CLP
Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD
Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD
Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD
Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP
Esval SA 3.5 49.9 2/15/2026 CL CLP
*********
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 2020. All rights reserved. ISSN 1529-2746.
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contact Peter A. Chapman at 215-945-7000.
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