/raid1/www/Hosts/bankrupt/TCRLA_Public/210831.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Tuesday, August 31, 2021, Vol. 22, No. 168
Headlines
A R G E N T I N A
PAMPA ENERGIA: Discloses Second Quarter 2021 Results
STONEWAY CAPITAL: Seeks to Hire RSM Canada as Tax Provider
B R A Z I L
BRAZIL: Minas Gerais Loses 20% of Coffee-Cultivated Area to Frost
BRAZIL: Top Court Upholds Law Granting Central Bank Autonomy
COMPANHIA SIDERURGICA: Fitch Raises LT IDRs to 'BB'
C A Y M A N I S L A N D S
EAGLE HOSPITALITY: Judge Blasts Queen Mary Ops; Assets Frozen
J A M A I C A
JAMAICA: Mining and Quarrying Sector Sees Decline in 3rd Quarter
T R I N I D A D A N D T O B A G O
[*] TRINIDAD & TOBAGO: Crude Falls 8% on Covid Fears
- - - - -
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A R G E N T I N A
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PAMPA ENERGIA: Discloses Second Quarter 2021 Results
----------------------------------------------------
Pampa Energia S.A. (NYSE: PAM; Buenos Aires Stock Exchange: PAMP),
an independent company with active participation in Argentina's
electricity and gas value chain, announces the results for the
six-month period and quarter ended on June 30, 2021.
The report discloses 68% year-on-year increase in sales, recording
US$346 million in the second quarter 2021 ('Q2 21'), explained by
higher price and volume of hydrocarbons and petrochemicals sold,
the new combined cycle gas turbine at Genelba Thermal Power Plant
('CTGEBA'), and the retroactive rise as of February 2021 on spot
energy remuneration, partially offset by real devaluation affecting
spot revenues.
The report further disclosed a 79% year-on-year increase in the
adjusted EBITDA3, recording US$241 million during Q2 21, explained
by rises of US$67 million in oil and gas, US$25 million in power
generation, US$12 million in petrochemicals, and US$2 million in
holding and others.
Pampa recorded a consolidated profit attributable to the Company's
shareholders of US$70 million, US$66 million higher than the second
quarter 2020 ('Q2 20'), mainly due to better operating margin,
offset by higher losses from discontinued operations and income tax
charge in Q2 21.
Net debt decreased to US$1,042 million as of June 30, 2021, showing
a continuous reduction compared to the US$1,148 million recorded by
the end of 2020.
A full text copy of the company's financial results is available
free at: https://prn.to/3ysn4vs
As reported in the Troubled Company Reporter - Latin America on
June 29, 2021, Fitch Ratings has upgraded Pampa Energia S.A.'s
Long-Term (LT) Foreign Currency (FC) and Local Currency (LC) Issuer
Default Ratings (IDR) to 'B-' from 'CCC'. Fitch has also upgraded
Pampa's senior unsecured notes to 'B-'/'RR4' from 'CCC'/'RR4'. The
Rating Outlook is Stable for both FC and LC IDRs.
STONEWAY CAPITAL: Seeks to Hire RSM Canada as Tax Provider
----------------------------------------------------------
Stoneway Capital Corporation and its affiliates seek approval from
the U.S. Bankruptcy Court for the Southern District of New York to
hire RSM Canada LLP as tax services provider.
The firm's services include:
(a) preparation and filing of certain Canadian Federal and
Provincial Corporate Income Tax Returns and related information;
(b) preparation and filing of certain T1134 - Information
Return Relating to Controlled and Non-Controlled Foreign
Affiliates;
(c) preparation and filing of certain Form T106 -
Information Return of Non-Arm's Length Transactions with
Non-Residents;
(d) preparation and filing of certain T1135 - Foreign Income
Verification Statement;
(e) advice on Canadian tax matters and other business
matters;
and
(f) other services for the Debtors as appropriate and proper
in the Chapter 11 cases, as requested.
RSM will receive fixed fees for the following services:
Services Fees Total
-------- ---- -----
Stoneway Power Generation Inc. C$10,000/return C$30,000
Canadian Federal and Provincial
Corporate Income Tax Returns and
related information schedules
Stoneway Capital Corporation C$20,000/return C$40,000
Canadian Federal and Provincial
Corporate Income Tax Returns and
related information schedules
T1134 - Information Return Relating C$3,500/form C$56,000
(16
forms expected)
to Controlled and Non-Controlled
Foreign Affiliates (4 forms)
Form T106 - Information Return of C$1,000/slip C$14,000
(14 forms expected)
Non-Arm's Length Transactions with
Non-Residents (for all Canadian
reporting entities, if applicable)
T1135 - Foreign Income C$2,000/form C$10,000
(5 forms expected)
Verification Statement
Fees for additional services will be based on RSM's customary
hourly rates. The hourly rates for those individuals anticipated
for this engagement are as follows:
Tax Partner C$745 - C$1,055 per hour
Tax Director C$715 - C$855 per hour
Tax Manager C$420 - C$735 per hour
Tax Staff C$140 - C$400 per hour
Enzo Testa, a partner at RSM, disclosed in a court filing that his
firm is a "disinterested person" as the term is defined in Section
101(14) of the Bankruptcy Code.
The firm holds office at:
Enzo Testa, CPA
RSM Canada LLP
11 King Street West, Suite 700, Box 27
Toronto, ON M5H 4C7 Canada
Tel.: +1 416 480 0160
Fax: +1 416 480 2646
About Stoneway Capital Corp.
Stoneway Capital Corporation is a limited corporation incorporated
in New Brunswick, Canada, formed for the purpose of owning and
operating, through its Argentine subsidiaries, power generation
projects that will provide electricity to the wholesale
electricity
markets in Argentina. The Argentine subsidiaries operate four
power-generating plants in Argentina that provide electricity to
the wholesale electricity market in Argentina.
Stoneway is 100% owned by GRM Energy Investment Limited.
On Oct. 8, 2020, the Company commenced proceedings under the Canada
Business Corporations Act (the "CBCA"). The Debtors were well on
the way toward closing the consensual restructuring when on Dec. 4,
2020, the Argentine Supreme Court issued a decision in an ongoing
noise discharge dispute involving one of the Generation Facilities
located in Pilar, Argentina. The Argentine Supreme Court Decision
created significant uncertainty as it overturned a decision of the
federal appeals court in San Martin, Buenos Aires.
As a result of the looming expiration of the informal standstill
arrangement, the Debtors commenced chapter 11 cases in the U.S. in
order to put the automatic stay in place, maintain the status quo
pending resolution of the various issues in Argentina, and ensure
that neither the Indenture Trustee nor the Argentine Trustee takes
any action that could be detrimental or value destructive to the
Company.
Stoneway Capital Ltd. and five related entities, including
Stoneway
Capital Corp., sought Chapter 11 bankruptcy protection (Bankr.
S.D.N.Y. Case No. 21-10646) on April 7, 2021. Stoneway estimated
liabilities of $1 billion to $10 billion and assets of $500 million
to $1 billion.
Judge James L. Garrity, Jr. oversees the cases.
The Debtors tapped Shearman & Sterling LLP as bankruptcy counsel,
Bennett Jones LLP as Canadian counsel, Lazard Freres & Co. LLC as
investment banker, and RSM Canada LLP as tax services provider.
Prime Clerk, LLC is the claims agent and administrative advisor.
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B R A Z I L
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BRAZIL: Minas Gerais Loses 20% of Coffee-Cultivated Area to Frost
-----------------------------------------------------------------
Rio Times Online reports that the recent severe frosts in Brazil
resulted in losses on about 19% of coffee-cultivated areas in Minas
Gerais state, equivalent to 173,680 hectares.
This was estimated by the State Technical Assistance and Rural
Extension Company (Emater-MG), while the federal government was
looking for ways to keep the damaged farmers in business, according
to Rio Times Online.
The magnitude of the impact in MG is in line with projections made
the previous day by Agriculture Minister Tereza Cristina that
losses would be between 18% and 20%, the report adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020). Fitch's 'BB-' Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) has been affirmed
in May 2021. Standard & Poor's credit rating for Brazil stands at
BB- with stable outlook (April 2020). S&P's 'BB-/B' long-and
short-term foreign and local currency sovereign credit ratings for
Brazil were affirmed in December 2020. Moody's credit rating for
Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's
credit rating for Brazil is BB (low) with stable outlook (March
2018).
BRAZIL: Top Court Upholds Law Granting Central Bank Autonomy
------------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that a
majority of Brazil's Supreme Court justices have voted to uphold
the constitutionality of a law granting the central bank formal
autonomy, a key piece of legislation considered by investors as a
victory for monetary policy making in Latin America's largest
economy.
Eight justices voted in support of the law, and two against.
"Countries with an independent central bank have a good experience
with it," Chief Justice Luiz Fux said during an event hosted by XP
Investimentos earlier, adding that he sees the autonomy given to
Brazil's policy makers as a great advance, according to
globalinsolvency.com.
At issue in the case is a procedural question of whether the bill
should have been introduced by the president as it was, rather than
by legislators, the report notes.
But the timing of the court's deliberation is delicate, the report
says. President Jair Bolsonaro is growing increasingly agitated
over steep price increases that are contributing to a steady drop
in his popularity, which has never been lower, the report
discloses.
Behind closed doors, he's also expressed his deep displeasure about
remarks made by central bank chief Roberto Campos Neto, linking an
increase in inflation expectations to political infighting, the
report adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020). Fitch's 'BB-' Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) has been affirmed
in May 2021. Standard & Poor's credit rating for Brazil stands at
BB- with stable outlook (April 2020). S&P's 'BB-/B' long-and
short-term foreign and local currency sovereign credit ratings for
Brazil were affirmed in December 2020. Moody's credit rating for
Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's
credit rating for Brazil is BB (low) with stable outlook (March
2018).
COMPANHIA SIDERURGICA: Fitch Raises LT IDRs to 'BB'
---------------------------------------------------
Fitch Ratings has upgraded Companhia Siderurgica Nacional's (CSN)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
to 'BB' from 'BB-' and its National Scale ratings to 'AAA(bra)'
from 'AA-(bra)'. Fitch has also upgraded the senior unsecured notes
of CSN Inova Ventures, CSN Islands XII Corp, and CSN Resources SA
(all guaranteed by CSN) to 'BB'/RR4' from 'BB-'/'RR4'. The Rating
Outlook for the international ratings is Positive. The Outlook for
the National LT Rating is revised to Stable from Positive.
CSN's ratings reflect its strong iron ore business and strong
Brazilian flat steel market position, as well as the cost
competitiveness of these businesses. The upgrades follow CSN's
continued efforts to substantially strengthen its capital structure
including debt repayment, refinancing and asset sales. Elevated
iron ore prices and sufficient operational flexibility bolstered
FCF for more than two years. As of June 30, 2021, the net debt of
CSN has been reduced by USD5.3 billion to USD2.4 billion from
USD7.7 billion in 2017 year-end. The Positive Outlook reflects
Fitch's expectation of additional deleveraging in the next 12 to 18
months of more than USD1.3 billion.
KEY RATING DRIVERS
Solid Free Cash Flow: Fitch projects that CSN will generate BRL24.5
billion of EBITDA and BRL13.8 billion of FCF during 2021 after
spending BRL2.8 billion on capex, which is a hike from BRL1.7
billion of investments in 2020. In the last 12 months ended June
30, 2021, CSN obtained BRL22.2 billion of EBITDA and BRL12.3
billion of FCF. Spurred by record iron ore prices and recovering
production, 1H21 EBITDA reached BRL13.9 billion from BRL3.3 billion
in 1H20. Fitch's base case forecasts 31 million tons of iron ore
production for CSN, the sale of an additional 7 million tons of
iron ore bought from third parties and uses iron ore prices of
USD160/ton. These volumes are 22% higher than those of 2020, when
intense rainfall affected CSN's first half of the year production
but remain 1% below 2019 levels.
Strong Iron Ore Prices: Iron ore have posted record prices,
averaging nearly USD200/ton in 1H21, on the back of high demand
from global steel production and constrained supply since Vale's
dam collapse in 2019 and Australian supply issues in 2021. Chinese
steel production, in particular, has remained sound, but steel
producers have started to face downward pressures. Fitch revised
its price assumptions upwards yet expects prices to fall in 2H21
for a yearly USD160/ton average, and follow a multiyear downtrend
through 2025.
Supportive Steel Environment: Fitch anticipates CSN's steel volumes
will grow 10% and domestic prices rise 60% in 2021. The 1H21
volumes were already 21% higher than those of 1H20 while prices
rose by 73%. The Brazilian construction and automotive sectors
recovered strongly and demand outpaced supply. According to the
Brazilian Steel Institute, while crude steel production rose by 48%
in 2Q21 from the same period a year ago, apparent consumption was
69% higher than in 2Q20. As noted by CRU Group, the commodities
business intelligence company (CRU), domestic steel sheets command
a premium not yet enough to incentivize Chinese imports, so
transportation costs impede imports supporting high prices in
Brazil. Fitch expects EBITDA/ton of USD250 in 2021.
Decreasing Debt Burden: Fitch calculates that CSN's strong FCF
generation will lower net debt to USD1.1 billion in 2021 from
USD4.7 billion at the end of 2020, and USD6.7 billion at the end of
2019. The company had BRL37 billion of Fitch adjusted total debt at
the end of June 30, 2021 and BRL22.2 billion of cash and marketable
securities. Fitch includes BRL2.9 billion of advances received from
Glencore for a 33 million tons iron ore supply contract and
excludes lease related debt from its debt adjustments. Fitch
forecasts that CSN will end 2021 with a net debt/EBITDA ratio of
0.2x. This ratio is expected to weaken as iron ore prices fall;
Fitch uses USD100/ton for its forecast for 2022, USD80/ton in 2023,
and USD70/ton in 2024. The impact of the fall in iron ore prices
will be partially offset by stronger results from CSN's steel
division and new production coming from the Itabirite projects.
Reprofiling Short-Term Debt Concentration: CSN had about 35% of its
debt falling due by the end of 2023 as of June 30, 2021.
Approximately 70% of the debt falling due during this timeframe is
with Brazilian banks. Caixa Economica Federal, Banco do Brasil,
Nippon Export and Investment Insurance and Bradesco are CSN's
largest lenders. Bradesco and Banco do Brasil have also lent money
to CSN's controlling shareholder. CSN's 2021 liability management
program has led to the refinancing of the 2023 bond, the tender
offer of its perpetual bonds and targets a repayment of BRL 4
billion of bank debt, a decrease in annual amortization to BRL 2
billion from BRL 4 billion between 2022 and 2025, and an extension
of cash coverage of near-term debt from 30 months to more than 60
months.
CSN Mineracao Listing: The BRL4.1 billion (USD760 million) of
proceeds from the Sao Paulo Stock Exchange IPO of CSN Mineracao on
February 2021 was split between the parent and the subsidiary.
Approximately BRL1.3 billion remained within the company to expand
its mining projects and port terminal and BRL2.8 billion funded
CSN's debt prepayment efforts with its Brazilian banks.
CSN Cimentos Listing: CSN is postponing its efforts to raise BRL3
billion through the listing of CSN Cimentos, which represents
around 2% of its EBITDA but has an eight-year projects investment
plan of BRL6 billion. Currently the fifth largest Brazilian cement
producer, it plans to grow to a top three position in a few years.
This listing follows CSN's adoption of a new strategy during the
past few years to accelerate its deleveraging through the sale of
minority positions in its businesses and other assets. This
included a reduction of its preferred shares in Usiminas, resulting
in BRL1.3 billion in proceeds. The disposal of its remaining shares
in Usiminas remains under consideration.
DERIVATION SUMMARY
CSN's more integrated business profile and diversified portfolio of
assets compare well with Usinas Siderurgicas de Minas Gerais S.A.'s
(Usiminas; BB/Stable). Both issuers are highly exposed to the local
steel industry in Brazil. CSN and Usiminas show weaker business
positions than Brazilian steel producer Gerdau S.A (Gerdau;
BBB-/Stable), which has a diversified footprint of operations with
important operating cash flow generated from its assets abroad,
mainly in the U.S., and flexible business model (mini-mills) that
allow it to better withstand economic and commodities cycles.
Among the three business steel producers, Gerdau has consistently
maintained the strongest balance sheet, most manageable debt
amortization schedule, and has consistently made efforts to improve
its capital structure through assets sales or equity issuances.
Gross debt levels at CSN remain high relative to Gerdau and
Usiminas. CSN also has a more challenging debt amortization
schedule than either Usiminas or Gerdau.
CSN's 1st quartile position on the hot rolled coil steel cost curve
compares similarly to global peers such as PAO Severstal
(BBB/Stable) and Metalloinvest (BBB-/Stable), as the company
benefits from its vertical integration and the weak BRL. CSN and
Severstal both benefit from a significant share of high value-added
products that make up their sales. CSN and Metalloinvest have a
similar operating profile with iron ore contributing to more than
75% of EBITDA. CSN exhibits weaker credit metrics when compared to
Severstal or Metalloinvest, particularly in gross debt levels, and
its significant refinancing risks reflect the differential between
its rating and those of its global peers.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Benchmark iron ore prices average USD160/ton in 2021,
USD100/ton in 2022 and USD80/ton in 2023;
-- Iron ore volumes rebound by 22% in 2021, remain flat in 2022,
and grow 4% in 2023;
-- Steel volumes increase by 10% in 2021, grow by 3% in 2022 and
stay flat in 2023;
-- Capex reaches BRL 2.8 billion in 2021, and averages BRL 5
billion till 2024 to build the Itabirite expansion.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Additional asset sales in order to support gross debt
reduction;
-- Improved debt amortization schedule;
-- Sustained adjusted total debt/EBITDA ratio below 3.0x and/or
adjusted net debt/EBITDA ratio below 2.0x.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Inability or unwillingness to reduce gross debt levels with
cash proceeds from asset sale;
-- Sustained adjusted total debt/EBITDA ratio above 4.0x and/or
adjusted net debt/EBITDA ratio above 3.0x;
-- Adverse regulatory changes in Brazil's mining industry.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
CSN had BRL37 billion (USD6.5 billion) of Fitch adjusted total debt
as of June 30, 2021. Fitch's debt figure includes BRL3 billion of
advances received from Glencore for a 33 million tons iron ore
supply contract and excludes lease related debt from its
adjustments. Capital markets debt represents 60% of the Fitch
adjusted debt total, while banks account for 32% of debt and the
Glencore advance represents the final 8% of debt. Including the
Glencore debt, approximately 70% of the company's debt is
denominated in U.S. dollars or euros.
CSN recently sold 56 million preferred shares of Usiminas getting
BRL1.3 billion in proceeds. Approximately 51 million preferred
shares and 111 million ordinary shares remain under CSN's control.
These holdings were included in CSN's cash and marketable
securities. Fitch excludes equity holdings from marketable
securities that reached BRL22.7 billion at the end of June, 2021.
At that time, CSN also had about BRL6 billion of debt due during
2021 and 2022. These maturities are fully comprised of bank debt.
The liability management program under way attempts to extend
maturities. The resulting schedule for 2021 and 2022 is expected to
be of BRL3 billion. The average annual amortization between 2022
and 2025 is expected to fall to BRL2.3 billion from BRL3.7 billion
effectively extending cash coverage from nearly 30 months to more
than 60 months. In addition to these bank and capital markets
obligations, CSN has to make payments of about USD150 million per
year for the next five years, according to terms of the cash
advance it received from Glencore for its iron ore supply
agreement.
The plan also includes about BRL10 billion of net debt reduction.
CSN announced the repurchase of its USD1 billion in perpetual
notes. CSN refinanced its USD925 million 2023 notes with a USD 850
million bond due in 2031 and cash generation. CSN prepaid BRL3.7
billion using part of the BRL4.1 billion proceeds from the IPO of
CSN Mineracao in February. These advances are part of the
negotiations with Caixa, Banco do Brasil, and Bradesco that is
reducing this portion of total debt from BRL11.1 billion to BRL7.2
billion. In addition, BRL500 million of prepayments to other banks
are expected.
Caixa Economica Federal and Banco do Brasil are CSN's largest
lenders; Bradesco and Santander are also important lenders.
Bradesco and Banco do Brasil also lent money to CSN's controlling
shareholder, which makes them reliant to a degree upon CSN's
continued success and dividend distributions. Nippon Export and
Investment Company is also a key underwriter of a loan insurance to
upgrade CSN's iron ore facilities.
ISSUER PROFILE
CSN is an integrated high value-added steelmaker with a large
market share in the Brazilian flat steels market and presence in
Germany, the US and Portugal. CSN is the second largest iron ore
exporter of Brazil. The company has a captive source of raw
materials, principally iron ore, and infrastructure, such as
energy, railways and port facilities. It also operates in the
cement business.
ESG CONSIDERATIONS
Companhia Siderurgica Nacional (CSN) has an ESG Relevance Score of
'4' for Governance Structure due to key person risk and limited
board independence through a single powerful shareholder, which has
a negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means 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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C A Y M A N I S L A N D S
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EAGLE HOSPITALITY: Judge Blasts Queen Mary Ops; Assets Frozen
-------------------------------------------------------------
Jeffrey L. Rabin of Long Beach Post News reports that a federal
bankruptcy court judge on Friday, August 27, 2021, froze $2.4
million in assets of Urban Commons founders Taylor Woods and
Howard Wu that could be used to repay COVID relief loans for the
Queen Mary that they allegedly used for "wrongful purposes."
In a strongly worded letter, U.S. Bankruptcy Court Judge
Christopher Sontchi in Delaware said Woods "misrepresented or
lied"
to the U.S. government to obtain $2.4 million in federal Paycheck
Protection Program loans.
Judge Sontchi granted a preliminary injunction freezing the assets
to assure repayment of the allegedly ill-gotten money. "Woods and
Wu have a history of wrongful acts and have proven that they are
capable of shuffling assets," the judge said.
In late May 2021, the judge said he was considering referring the
matter of the PPP loans to the U.S. Attorney's office. "These
defendants' behavior is beyond the pale," he said at the time. "It
was reprehensible. It was a betrayal of public trust."
The order freezing the assets was sought by attorneys for a
company, Urban Commons Queensway, LLC, who contend that Woods and
Wu improperly applied for the PPP loan without the company's
consent.
Woods told the Long Beach Post in May 2021 that the loan
application was made by mistake and they were working to fix the
issue. "There was never any intention to do anything inappropriate
by any party involved," Woods and Wu said in a statement.
But in the letter released Friday, Sontchi said "Woods knowingly
or
recklessly made false statements" to obtain the PPP loan from the
Small Business Administration. After "wrongfully obtaining the
funds," the judge wrote, Woods and Wu transferred the money to
another company they owned and then caused the funds to
disappear."
"These facts show Defendants' willingness to flaunt the law, use
entities and transfers to avoid paying money wrongfully obtained,
and a lack of remorse for so doing," Sontchi said.
The judge also noted that attorneys for Urban Commons Queensway
have submitted to the bankruptcy court evidence of multiple
lawsuits and judgments against Woods and Wu for "fraud, breach of
repayment obligations, and other loan defaults."
In November 2016, the Long Beach City Council awarded Urban Commons
a 66-year lease on the city-owned Queen Mary. To get the lease,
Woods and Wu made bold promises about developing a $250 million
entertainment and hotel complex called Queen Mary Island on
waterfront land next to the ship. Those plans were never realized.
The same day, the majority of the City Council ignored warnings
from City Auditor Laura Doud and approved $23 million in bonds to
jumpstart repairs on the deteriorating ship. Doud has been
conducting an audit to determine if Urban Commons spent the money
appropriately.
Urban Commons then packaged the Queen Mary lease and a host of U.S.
hotel properties and sold them to Eagle Hospitality Trust. In May
2019, Eagle went public on the Singapore Stock Exchange. Beset by
financial problems, the company collapsed into bankruptcy in
January of this 2021. Sontchi is overseeing the bankruptcy case.
All of the other hotel properties were sold at a bankruptcy court
auction, but not the lease on the Queen Mary. There were no
bidders. The Queen Mary is now back in the hands of the city. The
ship is closed because of the pandemic and the need to make urgent
repairs to the vessel.
About Eagle Hospitality Group
Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust ("Eagle H-REIT") and Eagle Hospitality Business Trust. Based
in Singapore, Eagle H-REIT is established with the principal
investment strategy of investing on a long-term basis, in a
diversified portfolio of income-producing real estate which is used
primarily for hospitality and/or hospitality-related purposes, as
well as real estate-related assets in connection with the
foregoing, with an initial focus on the United States.
EHT US1, Inc., and 26 affiliates, including 15 LLC entities that
each owns hotels in the U.S., sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 21-10036) on Jan. 18, 2021.
EHT US1, Inc., estimated $500 million to $1 billion in assets and
liabilities as of the bankruptcy filing.
The Debtors tapped PAUL HASTINGS LLP as bankruptcy counsel; FTI
CONSULTING, INC., as restructuring advisor; and MOELIS & COMPANY
LLC, as investment banker. COLE SCHOTZ P.C. is the Delaware
counsel. RAJAH & TANN SINGAPORE LLP is Singapore Law counsel, and
WALKERS is Cayman Law counsel. DONLIN, RECANO & COMPANY, INC., is
the claims agent.
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J A M A I C A
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JAMAICA: Mining and Quarrying Sector Sees Decline in 3rd Quarter
----------------------------------------------------------------
RJR News reports that Jamaica's mining and quarrying sector
suffered a decline during the April to June quarter.
This followed growth in the previous three months.
According to the Bank of Jamaica's quarterly monetary policy
report, the decline reflected reduced capacity utilization at a
plant due to a fall in the quality of bauxite mined, the report
notes.
As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2021, Jamaica Observer reports that that production of
fish dipped by an estimated 10.2 per cent in 2020, due mainly to
measures to stem the spread of the novel coronavirus, but rising
costs, climate change, and illegal activities also played a role in
the decline.
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T R I N I D A D A N D T O B A G O
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[*] TRINIDAD & TOBAGO: Crude Falls 8% on Covid Fears
----------------------------------------------------
Trinidad Express reports that two weeks ago, oil prices closed out
their biggest week of losses in more than nine months with another
down day as investors sold futures in anticipation of weakened fuel
demand worldwide due to a surge in Covid-19 cases.
The crude market have posted seven consecutive days of losses.
Numerous nations worldwide are responding to the rising infection
rate due to the coronavirus Delta variant by adding travel
restrictions to cut off the spread, according to Trinidad Express.
China has imposed stricter disinfection methods at ports, causing
congestion, nations including Australia have ratcheted up travel
restrictions, and global jet fuel demand is softening after
improving for most of the summer, the report notes.
"It's hard for prices to find support with this kind of
uncertainty," said John Kilduff, partner at Again Capital LLP in
New York, the report relays.
Brent crude fell 8 per cent on the week, settling down US$1.27, or
1.9 per cent, to US$65.18 a barrel, its lowest since April and down
about 8 per cent for the week, the report says. US West Texas
Intermediate (WTI) crude for September settled down US$1.37, or 2.2
per cent, to US$62.32 a barrel, to lose more than 9 per cent for
the week, the report relays.
China, the world's largest crude importer, has imposed new
restrictions with its "zero tolerance" coronavirus policy, which is
affecting shipping and global supply chains, the report notes. The
United States and China have also imposed flight-capacity
restrictions, the report discloses.
"They are acting severely for minimal outbreaks, which is a direct
threat for the demand profile there," Kilduff said, the report
says.
Several US companies have delayed return-to-office plans. Apple
Inc, the largest US company by market value, is delaying the return
of its workers until early 2022, Bloomberg reported, the report
relays. The US dollar hit a nine-month high on signs the US
Federal Reserve is considering reducing stimulus this year. Oil
prices move inversely to the US currency, making oil more expensive
for foreign purchasers when the dollar rallies, the report
discloses.
While the Delta variant drags on fuel demand, supply is steadily
increasing, the report notes. US production rose to 11.4 million
barrels per day in the most recent week, and drilling firms added
rigs for the third week in a row, services company Baker Hughes
said, the report notes.
The Organisation of the Petroleum Exporting Countries (OPEC) and
its allies are slowly boosting supply that had been shut early in
the pandemic, the report says.
Futures contracts suggest that the market expects plenty of supply
in coming months. The premium for the front month Brent contract
over the third-month contract has nearly halved between late July
and now, indicating that near-term supply will not be as tight as
the market had expected, the report notes.
"The oil market has quickly noticed that the Delta variant is a
growing problem and a potential hurdle to a mobility/fuel demand
recovery," Francisco Blanch, Bank of America commodity and
derivative strategist, said in a note, the report adds.
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