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        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, January 5, 2018, Vol. 19, No. 4


                            Headlines



A R G E N T I N A

ARGENTINA: Argentinians Irked by Increase in Transport Fares
GST AUTOLEATHER: Readying APA for Sale of All Assets


D O M I N I C A N   R E P U B L I C

DOMINICAN REP: Customs Starts Charging RD$2/Gallon of Gasoline
DOMINICAN REPUBLIC: Environment Cancels Over 400 Expired Permits


E C U A D O R

ECUADOR: Launches Campaign For Feb. 4 Referendum


M E X I C O

MEXICO: Tortilla Makers Trade Blame Over Possible Price Hike


P U E R T O    R I C O

BUILDERS HOLDING: Taps OR & Co. as Accountant
PANADERIA Y REPOSTERIA: Plan Hearing Set for Jan. 25


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Wins Dismissal from Court of Appeal


                            - - - - -


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A R G E N T I N A
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ARGENTINA: Argentinians Irked by Increase in Transport Fares
------------------------------------------------------------
EFE News reports that users of the bus, subway and train systems
in the Buenos Aires metropolitan area, home to roughly 13 million
people, expressed their displeasure with the Argentine
government's decision to raise public-transport fares there by
between 25 percent and 50 percent.

"Transportation is expensive, and if they have to raise (fares) it
needs to be gradual. They can't raise (the price of) a bus ticket
by two pesos from one month to the next," Enrique Pidogrio told
EFE while waiting for a bus in this capital's downtown.

Transportation Minister Guillermo Dietrich said that fares would
rise by between MXN1 ($0.05) and MXN2, depending on the mode of
transportation, and that the hikes would go into effect in
February, April and June of this year, according to EFE News.

The price of a bus ticket (currently six pesos) will climb to
eight pesos in February, MXN9 in April and MXN10 in June, the
report says.

Metro fares, which currently cost MXN7.5, will increase to MXN11
in April and then MXN12 in June, the report relays.

Yolanda Perales, an employee of a cleaning company who typically
travels by train, bus and subway to get to work, also complained
about the upcoming fare hikes, the report relays.

During his announcement, Mr. Dietrich said users who make more
than one public-transport trip within a two-hour span can benefit
from the Red SUBE plan, which offers discounted fares to
passengers requiring multiple connections to reach their
destination, the report notes.

Since taking office just over two years ago, President Mauricio
Macri has sought to rein in a high budget deficit by, among other
things, cutting energy subsidies, the report relays.

He also backed a controversial, recently approved pension overhaul
that triggered large-scale disturbances, the report adds.

                         *     *    *

As reported in the Troubled Company Reporter-Latin America on
December 4, 2017, Moody's Investors Service has upgraded the
Government of Argentina's local and foreign currency issuer and
senior unsecured ratings to B2 from B3. The senior unsecured
shelves were upgraded to (P)B2 from (P)B3. The outlook on the
ratings is stable.  At the same time Argentina's short-term rating
was affirmed at Not Prime (NP). The senior unsecured ratings for
unrestructured debt were affirmed at Ca and the unrestructured
senior unsecured shelf affirmed at (P)Ca .

Moody's said the key drivers of the upgrade of the rating to B2
are: (1) a record of macro-economic reforms that are beginning to
address long existing distortions in Argentina's economy; and (2)
the likelihood that reforms will continue and in turn sustain
the recent return to positive economic growth.

The stable outlook on Argentina's B2 ratings balances Argentina's
credit strengths of its large, diverse economy and moderate income
levels against the credit challenges posed by still high fiscal
deficits and a reliance on external financing, which increases its
vulnerability to external event risk, said Moody's.

On Nov. 10, 2017, Fitch Ratings revised Argentina's Outlook to
Positive from Stable and has affirmed its Long Term Foreign-
Currency Issuer Default Rating (IDR) at 'B'.

On Oct. 30, 2017, S&P Global Ratings raised its long-term
sovereign credit ratings on the Republic of Argentina to 'B+' from
'B'. The outlook on the long-term ratings is stable.  S&P also
affirmed its short-term sovereign credit ratings on Argentina at
'B'. At the same time, S&P raised its national scale ratings to
'raAA' from 'raA+'. In addition, S&P raised its transfer and
convertibility assessment to 'BB-' from 'B+', in line with its
assessment of sustained local access to foreign exchange.

As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30-day grace
period on a US$539 million interest payment.  Earlier that day,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago. On March 30, 2016, Argentina's Congress
passed a bill that will allow the government to repay holders of
debt that the South American country defaulted on in 2001,
including a group of litigating hedge funds that won judgments
in a New York court. The bill passed by a vote of 54-16.


GST AUTOLEATHER: Readying APA for Sale of All Assets
----------------------------------------------------
GST Autoleather, Inc., and its affiliates ask the U.S. Bankruptcy
Court for the District of Delaware to authorize the form of the
asset purchase agreement to be signed with the successful bidder
for substantially all assets of the Debtors.

A hearing on the Motion is set for Jan. 17, 201, at 11:00 a.m.
(ET).  The objection deadline is Jan. 10, 2018, at 4:00 p.m. (ET).

The Company has been actively exploring the sale of substantially
all of its assets since 2015, when, as a result of its strong
financial performance, it received an unsolicited, non-binding
offer to purchase the Company from a foreign strategic buyer.
Unfortunately, the Company's financial performance declined during
this time period, and the interest of would-be buyers waned.
Potential buyers either lowered their valuations or withdrew their
bids or opted to wait and see if the Company's performance
improved.

Unable to reach definitive documentation for an out-of-court sale
transaction, the Debtors commenced chapter 11 cases on Oct. 3,
2017, intending to continue marketing the Company's assets
culminating in a Court-approved sale to the highest or best
bidder.

Accordingly, the Debtors sought, and the Court entered on Nov. 15,
2017 the Bid Procedures Order.  The Sale, approval of which is
sought by the Sale Motion, will be to the successful bidder at the
auction provided for in the Bid Procedures, to take place on the
date set forth in, and in accordance with, the Bid Procedures
Order.

In accordance with the Bid Procedures, the Debtors prepared a
proposed form of asset purchase agreement for the contemplated
Sale, which they have made available to potential bidders in their
electronic data room.  To the extent any required information is
not yet known or if the Successful Bidder's APA materially changes
any such required information, the Debtors will make further
disclosure to the Court at or prior to the Sale Hearing.

The salient terms of the Successful Bidder's APA are:

     a. Sale to Insider: The Debtors do not anticipate that the
buyer will be an insider.

     b. Purchase Price: The purchase price will be comprised of
certain Assumed Liabilities and a cash payment.

     c. Assets: All or substantially all assets of the Debtors.

     d. Assumed Liabilities: The Assumed Liabilities listed in
Section. 1.3 of the Form APA.

     e. Assigned Contracts: The Assigned Contracts that will be
listed on Schedule 1.1(a) of the Form APA.

     f. Representations and Warranties: Customary representations
and warranties by the Purchaser and the Seller.

     g. Private Sale/No Competitive Bidding: The Debtors are
pursuing an open Auction and Sale process.

     h. Closing and Other Deadlines: Section 8.1(c) of the Form
APA provides that either the Purchaser or the Company may
terminate the Form APA by written notice if the Closing will not
have occurred on or before the Outside Date.

     i. Good Faith Deposit: An amount in cash equal to 10% of the
Cash Payment.

     j. Use of Proceeds: None

     k. Sale Free and Clear of Unexpired Leases: The Sale is to be
free and clear of all liens and unassumed liabilities, including
unexpired leases that do not constitute Assigned Contracts.

     l. Credit Bid: The Bid Procedures permit any Qualified Bidder
who has a valid and perfected line on any Assets of the Debtors'
estates to submit a credit bid for all or a portion of the value
of such Secured Creditor's claims.

     m. Relief from Bankruptcy Rule 6004 (h): To maximize the
value received for the Assets, the Debtors are seeking to close
the transactions contemplated by the Successful Bidder's APA as
soon as possible after the Sale Hearing.  The Debtors, therefore,
have requested a waiver of the 14-day stay under Bankruptcy Rule
6004(h).

A copy of the Form APA attached to the Motion is available for
free at:

         http://bankrupt.com/misc/GST_AutoLeather_385_Sales.pdf

The Debtors submit that the Successful Bidder's APA will
constitute the highest or otherwise best offer for the Assets and
will allow them the greatest chance of preserving any going
concern value for their estates.  As such, their determination to
sell the Assets through an Auction process and subsequently to
enter into the Successful Bidder's APA will be a valid and sound
exercise of their business judgment.

The Debtors accordingly ask authority to convey the Assets to the
Successful Bidder arising from the Auction, if any, free and clear
of all liens, claims, rights, interests, charges, and
encumbrances, with any such liens, claims, rights, interests,
charges, and encumbrances to attach to the proceeds of the Sale.

To facilitate and effectuate the Sale of the Assets and enhance
the value to their estate, the Debtors are asking approval of the
assumption and assignment of the Assumed Contracts to the
Successful Bidder upon the Closing of the transactions
contemplated under the Successful Bidder's APA and payment of the
cure cost.

To maximize the value received for the Assets, the Debtors ask to
close the Sale as soon as possible after the Sale Hearing.
Accordingly, they ask that the Court waives the 14-day stay period
under Bankruptcy Rules 6004(h) and 6006(d).

                     About GST Autoleather

Headquartered in Southfield, Michigan, GST AutoLeather, Inc., was
founded in 1933, then known as Garden State Tanning, initially
operated as a tanning company that processed leather for the
upholstery and garment industries. The Company entered the
automotive industry in 1946.

As of Oct. 3, 2017, the Company employs approximately 5,600 people
worldwide, including the United States, Mexico, Japan, China,
Korea, Germany, Hungary, South Africa, and Argentina.  The Company
supplies leather to virtually every major OEM in the automotive
industry, including Audi, BMW/Mini, Daimler, Fiat Chrysler, Ford,
General Motors, Hyundai, Honda, Porsche, PSA, Nissan, Kia, Toyota
and Volkswagen.

GST AutoLeather, Inc., and five of its affiliates filed voluntary
petitions for relief under chapter 11 of the United States
Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-12100) on Oct. 3,
2017.  The Hon. Laurie Selber Silverstein is the case judge.

The Debtors tapped Kirkland & Ellis LLP as general bankruptcy
counsel; Pachulski Stang Ziehl & Jones LLP as local bankruptcy
counsel; Lazard Middle Market, LLC as financial advisor; Alvarez &
Marsal North America, LLC as restructuring advisor; and Epiq
Bankruptcy Solutions, LLC as claims and noticing agent, Ernst &
Young LLP, as tax advisors. Deloitte & Touche LLP, as independent
auditor.

On Oct. 13, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors.  The Committee is
represented by Christopher M. Samis, L. Katherine Good, Aaron H.
Stulman, Christopher A. Jones and David W. Gaffey of Whiteford
Taylor & Preston LLP and Erika L. Morabito, Brittany J. Nelson,
John A. Simon, Richard J. Bernard and Leah Eisenberg of Foley &
Lardner LLP.

Royal Bank of Canada is represented by Andrew V. Tenzer of Paul
Hastings LLP.


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D O M I N I C A N   R E P U B L I C
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DOMINICAN REP: Customs Starts Charging RD$2/Gallon of Gasoline
--------------------------------------------------------------
Dominican Today reports that the Customs Agency disclosed that the
fuel sector must comply with the RD$2.0 per gallon advance on
dispatched gasoline and diesel.

In a notice to importers, concessionaires or owners of gasoline or
diesel terminals, fuel distributors, and the general public,
Customs said the measure complies with article 19 of Budget Law
2018, according to Dominican Today.

"In the case of the collection of the two pesos (RD$2.00) per
gallon to the consumption of gasoline and diesel, regular and
premium, indicated in the aforementioned paragraph I of article 20
of Law no. 253-12, it is established that this is done by the
General Customs Directorate when said merchandise is dispatched,"
article 19 said, the report notes.

The RD$2.00 payment is an advance that must be made when importing
those hydrocarbons, the report relays.

It's estimated that if the collection for the program to renew
public transport vehicles earns around RD$95.4 million in 2018,
and 25% of that would come from the RD$2.00 tax on each gallon of
consumed in gasoline and diesel sold locally, it would mean
revenuer of RD$23.9 million, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Nov. 20, 2017, Fitch Ratings has affirmed Dominican Republic's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.


DOMINICAN REPUBLIC: Environment Cancels Over 400 Expired Permits
----------------------------------------------------------------
Dominican Today reports that the Environment Ministry disclosed
that over 400 environmental permit that expired several years ago
were canceled.

In a statement, One-stop Window Services director Pedro Guillermo
Almanzar said a team identified the expired documents belonging to
various projects scattered throughout the country, according to
Dominican Today.

Environment said the cancellations are in resolution NO. 0001/2018
and notes that it purged the authorizations that expired and were
never retrieved by their applicants, the report notes.

The Compendium of Regulations and Procedures for Environmental
Authorizations of the Dominican Republic in Article 46 states that
the developer will have a period of 60 working days after
receiving a communication to make the corresponding payment and
withdrawal of the authorization approved to take effect," it said,
the report relays.

"After expiration of this period, the Ministry reserves the right
to grant a second and last term of 30 working days after having
assessed the reasons for the request. Once this deadline has
expired, the authorization will be canceled," the report says.

Complete list on Environment website www.ambiente.gob.do

As reported in the Troubled Company Reporter-Latin America on
Nov. 20, 2017, Fitch Ratings has affirmed Dominican Republic's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.


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E C U A D O R
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ECUADOR: Launches Campaign For Feb. 4 Referendum
------------------------------------------------
EFE News reports that the election campaign for the popular
referendum to be held in Ecuador on Feb. 4 kicked off with 40
registered citizens' organizations, most of them favoring the
"yes" vote for the seven questions to be asked of the public by
the government of Lenin Moreno.

Just four social organizations, of the 40 approved by the National
Electoral Council (CNE), will campaign for the "no" option to
certain questions on the referendum dealing with issues such as
corruption, re-election, capital gains, citizenship, mining and
sexual crimes against minors, according to EFE News.

The CNE reiterated that the election campaign will last until
midnight on Feb. 1, when a moratorium on proselytizing will be
instituted to give the citizenry time to reflect on how they
intend to vote, the report notes.

Hundreds of government sympathizers launched their "yes" campaign
at the door to the Carondelet presidential palace, where they
chanted slogans for their point of view on the seven questions,
the report relays.

The report discloses that demonstrators, many of them members of
the "Democracy Yes" collective and the Democratic Left party,
gathered on Independence Square in front of the government palace
calling for "Yes to everything."

A spokesman for the collective said that similar gatherings will
be held simultaneously in several cities around the country,
adding that the campaign "will grow" over the course of the coming
days, the report relays.

In the port city of Guayaquil, thousands more people congregated
downtown to support the "yes" option, in particular supporters of
the prefect of the province of Guayas, Jimmy Jairala, and the CUT
union, both of whom are allied with the Moreno government, the
report notes.

"No" campaign supporters, meanwhile, and sympathizers of former
President Rafael Correa gathered at the headquarters of the
Alianza Pais movement in northern Quito, where they once again
called the referendum pushed by the Moreno administration
dishonest and misleading, the report says.

Correa and Moreno, former colleagues, have become arch rivals and
are disputing the direction of the movement, and Correa's former
foreign minister, Ricardo Patino, said that the ex-president
intends to return to Ecuador from his current home in Belgium
with some sympathizers saying that he will speak in Guayaquil, the
report relays.

The government is prohibited from engaging in electoral promotion
or advertisement on the referendum, according to the CNE, to
guarantee fair and evenhanded public debate on the seven
questions, the report adds.

As reported in the Troubled Company Reporter-Latin America on Oct.
23, 2017, S&P Global Ratings assigned its 'B-' issue rating on the
Republic of Ecuador's senior unsecured notes for a total amount of
US$2.5 billion. The notes are due in October 2027 and have a
coupon of 8.875%. The rating on the notes is the same as the long-
term foreign currency sovereign credit rating on Ecuador.


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M E X I C O
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MEXICO: Tortilla Makers Trade Blame Over Possible Price Hike
------------------------------------------------------------
EFE News reports that tortilla makers and the Mexican government
are trading blame over a potential rise in the price of that basic
food item, with the former saying rising energy costs are to blame
and the latter warning about possible uncompetitive practices.

The National Union of Corn Mills and Tortillerias (Unimtac), which
represents around 80,000 tortilla bakeries and mills nationwide,
says the price of that basic foodstuff for millions of low-income
Mexicans could rise by between MXN1.5 and MXN3 (between $0.07 and
$0.14) per kilogram, according to EFE News.


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P U E R T O    R I C O
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BUILDERS HOLDING: Taps OR & Co. as Accountant
---------------------------------------------
Builders Holding Co Corp. seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire OR & Co., CPA as its
accountant.

The firm will provide special accounting services to the Debtor in
connection with its Chapter 11 case.

Ovidio Ruiz, the accountant designated to provide the services,
disclosed in a court filing that he and other members of his firm,
are "disinterested" as defined in section 101(14) of the
Bankruptcy Code.

The firm can be reached through:

     Ovidio Ruiz
     OR & Co., CPA
     P.O. Box 3266
     Carolina, PR 00957
     Email: orcocpa@gmail.com

                   About Builders Holding Co.

Builders Holding Co., Corp. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D.P.R. Case No. 16-06643) on August
20, 2016.  The petition was signed by Ismael Carrasquillo Sanchez,
president.  At the time of the filing, the Debtor disclosed $9.72
million in assets and $10.53 million in liabilities.

Judge Edward A. Godoy presides over the case.

Fausto David Godreau, Esq., at Godreau & Gonzales Law, is the
Debtor's bankruptcy counsel.  The Debtor hired Monge Robertin &
Asociados, Inc. as insolvency and restructuring advisor; and
Rivera Colon & Associated Co. as external auditor.

No official committee of unsecured creditors has been appointed in
the case.


PANADERIA Y REPOSTERIA: Plan Hearing Set for Jan. 25
----------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico is set
to hold a hearing on Jan. 25, 2018, to consider approval of the
Chapter 11 plan of reorganization for Panaderia Y Reposteria
Pontevedra Inc.

The hearing will be held at 9:30 a.m., at the U.S. Bankruptcy
Court, Southwestern Divisional Office, MCS Building, Second Floor.

The court had earlier approved the company's disclosure statement,
allowing it to start soliciting votes from creditors.

The order, signed by Judge Edward Godoy on Dec. 7, required
creditors to file their objections and cast their votes accepting
or rejecting the plan on or before 14 days prior to the Jan. 25
hearing.

                    About Panaderia Y Reposteria

Panaderia Y Reposteria Pontevedra Inc. sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 17-
01280) on February 27, 2017.  The petition was signed by Carlos R.
Rodriguez Torres, president.

At the time of the filing, the Debtor estimated assets of less
than $500,000 and liabilities of less than $1 million.

The Debtor hired Modesto Bigas Law Office as counsel.

On October 19, 2017, the Debtor filed a disclosure statement,
which explains its proposed Chapter 11 plan of reorganization.


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V E N E Z U E L A
=================


PETROLEOS DE VENEZUELA: Wins Dismissal from Court of Appeal
-----------------------------------------------------------
The Latin American Herald reports that the U.S. Court of Appeals,
in a 2-1 decision, has remanded back to a Federal District Court a
ruling dismissing PDVSA from a lawsuit by Crystallex alleging
"fraudulent transfer."

"At first glance this case appears exceedingly complex -- with its
tangle of debtors, creditors, parents, subsidiaries, alter egos,
and complex international corporate transactions," wrote Court of
Appeals Judge Rendell for the majority, according to The Latin
American Herald.  "But when one cuts through this morass, the
question at the center of this case is quite simple: can a
transfer by a non-debtor be a "fraudulent transfer" under the
Delaware Uniform Fraudulent Transfer Act (DUFTA)?"

"We are constrained to conclude that a transfer by a non-debtor
cannot be a "fraudulent transfer" under DUFTA," the U.S. Court of
Appeals for the Third Circuit concluded, admonishing Venezuela's
behavior, the report relays.  "While we do not condone the
debtor's and the transferor's actions, we must conclude that
Crystallex has failed to state a claim under DUFTA," the report
notes.

The 2 judge majority of Justices Vanaskie and Rendell found that
Crystallex had a $1.4 billion judgment against Venezuela -- not
PDVSA or PDV Holding -- and that PDVSA and PDV Holding were thus
not debtors within the meaning of the law and were free to
transfer the funds without violating the "fraudulent transfer"
statute, the report says.

"Crystallex has failed to successfully plead a transfer "by a
debtor" and thus failed to successfully plead a fraudulent
transfer claim against PDVH under DUFTA," the Court concluded,
remanding the case back to the District Court for further hearings
"consistent with this opinion," the report adds.

As reported in the Troubled Company Reporter-Latin America on Dec.
22, 2017, S&P Global Ratings lowered its issue-level ratings on
Petroleos de Venezuela S.A.'s (PDVSA's) senior unsecured notes due
2024 and 2021 to 'D' from 'CC'.


                            ***********


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com


                            ***********


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 2018.  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.
.


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