/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/180418.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 Wednesday, April 18, 2018, Vol. 19, No. 75 Headlines A R G E N T I N A ARGENTINA: Herd to Decline by as Much as 1-Mil. Due to Drought ALGODON WINES: Hopes to List on the Nasdaq in Second Quarter B R A Z I L BANCO DO BRASIL: To Expand Credit Cards to Non-Clients LUPATECH: NY Bankruptcy Court Closes Second Chapter 15 Case C H I L E AUTOPISTA COSTA ARAUCO: Hires Morales & Besa to Restructure Debt M E X I C O CEMEX SAB: Levi & Korsinsky Reminds of Class Action Commencement COACALCO: Moody's Hikes Rating to B3 & Alters Outlook to Stable P U E R T O R I C O MINI MASTER: Files 2nd Amendment to 2nd Amended Plan VEGA ALTA: Unsecured Creditors to Receive $5K Over 60 Months V E N E Z U E L A PETROLEOS DE VENEZUELA: Foreign Partners Pushing Quevedo Out VENEZUELA: Western Leaders Say They Won't Recognize Elections - - - - - ================= A R G E N T I N A ================= ARGENTINA: Herd to Decline by as Much as 1-Mil. Due to Drought -------------------------------------------------------------- Caroline Stauffer at independent.ie reports that Argentina's herd will shrink by up to 1 million head of cattle next year as ranchers facing scorched pastures after the worst drought in decades decide to slaughter females rather than grow their herds, analysts said. A wave of hot, dry weather since November has cut 40 percent off overall grains production in the world's No. 3 corn and soy exporter and will knock off an estimated 0.7 percent from Argentina's gross domestic product this year, according to independent.ie. The report notes that slaughtering more female cows than expected will have long-term repercussions on the meat-loving nation's herd at a time it was hoping to boost sales abroad after falling out of the top 10 beef exporting nations under the previous government. Ignacio Iriarte, a grain market analyst, said Argentina's 53.5 million-head herd would shrink by between 500,000 and 1 million head, the report says. "Winter is coming without having planted the grasses normally sown between February and March, which are the ones that provide feed in the middle of the winter," the report quoted Mr. Iriarte as saying. "The next five or six months will be critical," he added. According to the local beef industry chamber (Ciccra), 44.5 percent of cows slaughtered in March were female, a rate that was 3 percentage points higher than a year earlier, the report notes. "This threatens the future offer," said Miguel Schiaritti, Ciccra's president. He said the herd had been growing sharply over the last two years, would likely hold steady in 2018 and would decline in 2019, the report relays. The U.S. Department of Agriculture said in its latest report Argentina's herd would shrink this year due to the weather and a larger than normal slaughter, the report says. Pastures have been depleted in one of Argentina's main cattle producing areas in Chacabuco, in the north of Buenos Aires province, according to Guillermo Voisin, the president of the area's rural society, 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. ALGODON WINES: Hopes to List on the Nasdaq in Second Quarter ------------------------------------------------------------ Algodon Wines and Luxury Development Group, Inc. sent a letter from its chief executive officer and president, Scott Mathis, to its stockholders and business associates on April 5, 2018. The full-text copy of the letter is as follows: Dear Stockholders: This is perhaps the most important and timely stockholder update you have received from me in some time as we not only are moving forward to position the Company for continued growth, but also to list on the NASDAQ Stock Market. We believe we are close to achieving our NASDAQ objective and we know exactly what is required to do so. We believe that the opportunity for our stockholders has never been better. To be accepted for listing on NASDAQ, we will have to demonstrate that the Company meets the quantitative listing standards as well as all applicable requirements. As the Company continues to execute on the business plan, we feel confident we will meet and achieve those requirements. One of the factors that continues to impact the Company is the steady decline in the value of the Argentine peso over the years as it relates to our stockholder equity position (when reported back in U.S. dollar terms). As a result of the decline in the value of the Argentine peso versus the U.S. dollar, our stockholders' equity position has steadily been reduced. Even though real estate prices in Argentina are moving upwards in an exciting manner when you convert from a devalued peso back to U.S. dollars, stockholder equity under GAAP financial reporting rules is reduced. One of the requirements to meet the NASDAQ standards is compliance with the stockholders' equity requirement. We must increase our stockholders' equity. To that end, we are seeking to raise additional capital for operations, investing in new real estate assets in Argentina, continuing to invest in infrastructure, and unveiling a marketing plan to sell more estate lots. We also expect over time that our business operations will help us maintain adequate stockholders' equity. As was recently announced in a public news release and our Current Report on Form 8K with the SEC (https://ir.algodongroup.com/all-sec-filings#document- 5349-0001493152-18-003978), Algodon was able to deed certain of its Phase 1 lots in Q1 2018 which will allow for the immediate recognition of approximately $870,000 in revenues from lot sales. In Q2 2018, Algodon expects to be approved for deeding another 19 Phase 1 lots, and in the next 12 months, expects to deed the remainder of the 97 Phase 1 lots. As you are aware, Algodon common stock (VINO) is already trading on the OTCQB marketplace. We, as management, do not believe that the OTCQB has allowed for sufficient liquidity and it has proven to be subject to erratic price swings coupled with undue volatility based on our low trading volume. We do not believe that our listing on the OTCQB has resulted in a fair or full valuation of our shares, and it has not given adequate value to our prospects or enterprise value, especially when considering the volume of positive news coming out of Argentina. We believe the macroeconomics on Argentina are improving at a rapid pace. Foreign investment in Argentina hasn't been this strong in decades, infrastructure improvements are being implemented and planned at the greatest level in several generations, jobs data has been steadily improving and real estate prices are finally moving positively forward at a nice pace as mortgages have reentered the marketplace. No longer is it just me and Algodon saying this: JP Morgan recently listed Argentina as the most promising emerging market on the globe, and Morgan Stanley has been extremely bullish and "pounding the table" on Argentina for more than a year now, and Morgan Stanley is rapidly growing its investment banking offices in Buenos Aires. We believe we are in the right part of the world at the right time. We did not come this far to only come this far. We do not know when or if Algodon will be approved for listing on NASDAQ, but we are excited and hopeful that we will soon meet the requirements and be ultimately approved for listing in Q2 of this year. We would expect that a listing on NASDAQ will provide great exposure for Algodon and our VINO shares. When that occurs, I hope to see you all at the bell ringing ceremony in New York. About Algodon Wines Through its wholly-owned subsidiaries, Algodon Wines & Luxury Development Group, Inc. -- http://www.algodongroup.com/-- invests in, develops and operates real estate projects in Argentina. Based in New York, AWLD operates a hotel, golf and tennis resort, vineyard and producing winery in addition to developing residential lots located near the resort. The activities in Argentina are conducted through its operating entities: InvestProperty Group, LLC, Algodon Global Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties II S.R.L., and Algodon Wine Estates S.R.L. AWLD distributes its wines in Europe through its United Kingdom entity, Algodon Europe, LTD. Algodon Wines reported a net loss attributable to common stockholders of $8.25 million for the year ended Dec. 31, 2017, compared to a net loss attributable to common stockholders of $10.04 million for the year ended Dec. 31, 2016. As of Dec. 31, 2017, Algodon Wines had $8.34 million in total assets, $4.33 million in total liabilities, $9.02 million in series B convertible redeemable preferred stock, and a total stockholders' deficiency of $5.02 million. Marcum LLP, in New York, the Company's auditor since 2013, issued a "going concern" opinion in its report on the consolidated financial statements for the year ended Dec. 31, 2017, citing that the Company has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. =========== B R A Z I L =========== BANCO DO BRASIL: To Expand Credit Cards to Non-Clients ------------------------------------------------------ Aluisio Alves and Carolina Mandl at Reuters report that Brazilian state-owned lender Banco do Brasil will seek an expansion of its credit card portfolio by issuing cards to non-clients, a top executive told Reuters. Executive Vice-President Marcelo Labuto said Brazil's largest bank by assets is finishing the development of default-control systems to start offering credit cards with its brand Ourocard to non- clients by the second half of 2018, according to Reuters. The report notes that Mr. Labuto said Banco do Brasil's move aims at closing the gap with private banks in credit cards and also compete with novice credit card issuers such as Nubank amid a rapid growth of card transactions in Brazil. Banco do Brasil had a credit card base of 17,3 million at the end of December, the report notes. Although Banco do Brasil is the largest listed lender in the country, rival Itau Unibanco Holding SA had 29,2 million credit card holders, the report relays. Last year, credit card transactions amounted to 842.6 billion, up 12.4 percent from 2016, according to card industry group ABECS, the report recalls. Regarding defaults in loans to consumers, Mr. Labuto said that indicators "behaved well" during the first quarter, the report adds. As reported in the Troubled Company Reporter-Latin America on April 17, 2018, Fitch Ratings assigned an expected long-term foreign currency rating of 'BB-(EXP)' to Banco do Brasil S.A.'s (BdB) proposed senior unsecured notes due April 2023. Final amount and interest will be defined upon book building. The bonds' proceeds will be used for general corporate purposes. The final rating is contingent upon the receipt of final documents conforming to the information already received. LUPATECH: NY Bankruptcy Court Closes Second Chapter 15 Case ----------------------------------------------------------- Declan Bush at The Latin Lawyer reports that a New York bankruptcy court has signed off on Brazilian oil and gas servicer Lupatech's second Chapter 15 case, ending a US$275 million cross-border restructuring that has played out in New York and Sao Paulo since 2015. As reported in the Troubled Company Reporter-Latin America on Dec. 7, 2017, S&P Global Ratings affirmed its 'CCC-' global scale and 'brCCC-' national scale corporate credit ratings on Lupatech S.A. Subsequently, S&P withdrew the ratings at the company's request. The outlook was stable at the time of the withdrawal. ========= C H I L E ========= AUTOPISTA COSTA ARAUCO: Hires Morales & Besa to Restructure Debt ---------------------------------------------------------------- Fredrik Karlsson at The Latin Lawyer reports that Chilean concessionaire Autopista Costa Arauco has hired Morales & Besa to restructure and reassign its 7.2 million unidades de fomento (US$317 million) debt with BBVA. =========== M E X I C O =========== CEMEX SAB: Levi & Korsinsky Reminds of Class Action Commencement ---------------------------------------------------------------- Levi & Korsinsky, LLP issued a statement relating to a class action consisting of persons who have acquired securities of CEMEX, S.A.B.: To: All persons or entities who purchased or otherwise acquired securities of CEMEX, S.A.B. de C.V. ("CEMEX") (NYSE: CX) between August 14, 2014 and March 13, 2018. You are hereby notified that a securities class action lawsuit has been commenced in the United States District Court for the Southern District of New York. To get more information, go to: http://www.zlk.com/pslra-d/cemex?wire=2 or contact Joseph E. Levi, Esq. either via email at jlevi@levikorsinsky.com or by telephone at (212) 363-7500, toll- free: (877) 363-5972. There is no cost or obligation to you. The complaint alleges that throughout the class period Defendants issued materially false and/or misleading statements and/or failed to disclose that: (i) CEMEX executives had engaged in an unlawful bribery scheme in connection with the Company's business dealings in Colombia; (ii) discovery of the foregoing conduct would likely subject the Company to heightened regulatory scrutiny and potential criminal sanctions; (iii) the Company lacked adequate internal controls over financial reporting; and (iv) as a result, CEMEX's public statements were materially false and misleading at all relevant times. If you suffered a loss in CEMEX, you have until May 15, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff. Levi & Korsinsky is a national firm with offices in New York, California, Connecticut, and Washington D.C. The firm's attorneys have extensive expertise and experience representing investors in securities litigation, and have recovered hundreds of millions of dollars for aggrieved shareholders. Attorney advertising. Prior results do not guarantee similar outcomes. As reported in the Troubled Company Reporter-Latin America on March 16, 2018, Fitch Ratings has affirmed CEMEX, S.A.B. de C.V.'s (CEMEX) Long- Term Issuer Default Rating (IDR) at 'BB-'. Fitch has also affirmed the company's National Scale Long-Term Rating at 'A(mex)' and affirmed the company's National Scale Short-Term rating at 'F1(mex)'. The Rating Outlook remains Positive. COACALCO: Moody's Hikes Rating to B3 & Alters Outlook to Stable --------------------------------------------------------------- Moody's de Mexico affirmed the A3 (Global Scale, local currency) and Aaa.mx (Mexico National Scale) debt ratings of Mexico City (Ciudad de Mexico) and changed the outlook to stable from negative. The rating changes apply to the following bond issuances: * MXN2.521 billion bond issuance (original face value) under the program GDFCB10-2. * MXN2.5 billion bond issuance (original face value) under the program GDFECB12. * MXN2.126 billion bond issuance (original face value) under the program GDFECB13. * MXN2.5 billion bond issuance (original face value) under the program GDFECB 14. * MXN1.382 billion bond issuance (original face value) under the program GDFECB 15. * MXN2.5 billion bond issuance (original face value) under the program GDFECB 15-2. * MXN1 billion bond issuance (original face value) under the program GCDMXCB 16V. * MXN7 billion (original face value) securitization of a loan from Dexia Credito Local Mexico, S.A. de C.V. to Mexico City, Mexico CBPF48. In addition, Moody's affirmed the Global Scale (local currency) and Mexico National Scale ratings of 36 Mexican states and municipalities, one university, and 4 water companies, and changed the outlook to stable from negative. Moody's also affirmed the Global Scale (local currency), Mexico National Scale ratings and maintained current outlooks on 19 Mexican states and municipalities. Moody's also took the following rating actions on the following four municipalities and one water company: - Municipality of Coacalco: Issuer ratings upgraded to B3/B1.mx from Caa1/B2.mx; outlook revised to stable from positive. - Municipality of Corregidora: Issuer ratings upgraded to Baa1/Aa1.mx from Baa2/Aa2.mx; maintained the stable outlook. - Municipality of Tlalnepantla: Issuer ratings upgraded to Ba1/A1.mx from Ba2/A2.mx; maintained the stable outlook. - Municipality of Durango: Issuer ratings upgraded to Ba2/A2.mx from Ba3/A3.mx; maintained the stable outlook. - Aguas del Municipio de Durango: Issuer ratings upgraded to Ba2/A2.mx from Ba3/A3.mx; maintained the stable outlook. A list of the Affected Ratings is available at: https://is.gd/siUYC5 Finally, Moody's affirmed the debt ratings of 112 enhanced loans, a list of which is available at https://is.gd/HDsRZa The action follows Moody's rating action on April 11, 2018, in which the agency affirmed Mexico's government bond rating of A3, and revised the outlook to stable from negative. RATINGS RATIONALE RATING RATIONALE FOR MEXICO CITY Under the legal framework governing Mexico City, the Government of Mexico is the direct obligor of all debt incurred by Mexico City. Accordingly, the rating fully reflects the credit quality of the Federal Government. RATIONALE FOR AFFIRMED RATINGS AND OUTLOOK CHANGE FOR 36 STATES AND MUNICIPALITIES The ratings affirmation and outlook change to stable from negative reflects the change in the sovereign outlook, given that Mexican sub-sovereigns have close operating and financial linkages with the federal government. The sovereign action was based on an assessment that risks to growth stemming from the NAFTA renegotiation are receding, that structural reforms adopted since 2013 have increased the Mexican economy's resilience to shocks, contributing to favorable fiscal results and a moderate decline in public sector indebtedness, and that there is a low probability the next administration will weaken economic and fiscal trends through a sharp change in policy. RATIONALE FOR THE AFFIRMED RATINGS AND MAINTINED OUTLOOKS FOR 19 STATES AND MUNICIPALITIES The decision to affirm the ratings and maintain the outlooks for these entities reflects their idiosyncratic credit profiles. Issuers with a stable outlook are relatively less vulnerable to systemic risks and the issuers with a negative outlook face individual credit pressures. RATIONALE FOR THE MUNICIPALITY OF COACALCO The upgrade of Coacalco's issuer ratings to B3/B1.mx from Caa1/B2.mx and the change of outlook to stable from positive reflects the municipality's positive gross operating balance (GOB), lower debt levels and an improvement in its liquidity position. Coacalco's GOBs have been positive during the last three years, averaging 10.2% of operating revenues, compared to the negative results observed from 2012 to 2014 that averaged -12.8%. These positive operating margins reflect a decline in current expenditures as a result of measures implemented by the current administration. As a result of the improvement in operating margins, Coacalco posted cash financing surpluses averaging 13.9% of total revenues during the last three years, which resulted in an improvement in liquidity, with cash to current liabilities climbing to 0.15x in 2017, up from 0.04x in 2015. Nonetheless, liquidity remains weak, which is captured in the municipality's B3 credit profile. In addition, Coacalco's debt levels are still relatively high compared to national peers, though they are decreasing. Net direct and indirect debt (NDID) to operating revenues was equivalent to 49.5% at the end of 2017, compared to 67.5% at its peak in 2013. Moody's expects debt levels to continue decreasing in 2018 to roughly 45%. However, the municipality continues to depend on short-term debt, which can put pressure on its liquidity. RATIONALE FOR THE MUNICIPALITY OF CORREGIDORA The upgrade of Corregidora's issuer ratings to Baa1/Aa1.mx from Baa2/Aa2.mx with a stable outlook reflects a sustained improvement in recent years in the municipality's credit profile, characterized by growing own source revenues, strong operating margins, very low debt levels and a strong liquidity position. Corregidora's GOB equaled 24.1% in 2017, well above the 9.4% average during the 2013-2015 period. The increase of its GOB mainly reflects a compound annual growth rate (CAGR) of 24% of own source revenues during the 2013 -- 2017 period that outpaced the current expenditure CAGR of 13%. Furthermore, liquidity levels measured as cash to current liabilities have been strong during the last five years, averaging 6.4x, a stronger level than national peers. Debt levels were equivalent to 5.6% of operating revenues as of December 2017, a low level. Going forward, Moody's expects Corregidora's strong operating and financial performance to continue, supported by sustainable high own-source revenues, a strong liquidity position and low debt levels. RATIONALE FOR THE MUNICIPALITY OF TLALNEPANTLA The upgrade of Tlalnepantla's ratings to Ba1/A1.mx from Ba2/A2.mx with a stable outlook reflects the municipality's strong cash financing surpluses and GOBs, decreasing debt levels and solid liquidity. Between 2015-2017, Tlalnepantla's cash financing surpluses and GOBs averaged 13.7% of total revenues and 18% of operating revenues, respectively, in both cases above the municipality's Ba- rated peers. NDID to operating revenues stood at 14.1% in 2017, down from the 38.6% in 2013. As a result of this stronger financial and operating performance, Tlalnepantla's liquidity also improved, with cash to current liabilities rising to 1.34x in 2017, up from 0.08x in 2015. The improvement is explained by a combination of rising operating revenues, driven by gains in both own source revenues and federal participations, and tight control of operating expenditures. Tlalnepantla has also made progress in recent years in reducing contingent liabilities associated with its water company (OPDM) by reducing the utility's debt with the National Water Commission (CONAGUA) to MXN 717 million at the end of 2017, down from MXN 1,171 million in 2014. Moody's expects that the municipality of Tlalnepantla will continue to post cash financing and gross operating surpluses in 2018-19 of 11.5% of total revenues and 12% of operating revenues, respectively. Moody's also expects the municipality's liquidity will continue to improve, and projects that cash will rise to 1.5x current liabilities in 2018-19, and that NDID will fall to 13% of operating revenue. RATIONALE FOR THE MUNICIPALITY OF DURANGO The upgrade of Durango's issuer rating to Ba2/A2.mx from Ba3/A3.mx with a stable outlook reflects the municipality's recurring gross operating and financial surpluses in recent years, which have resulted in a sustained improvement in its liquidity and declining debt levels. Durango's cash position was equal to 1.4x its current liabilities in 2017, well above the municipality's Ba3 rated peers, and Moody's projects its liquidity will strengthen slightly in 2018 as the municipality continues to post operating and financial surpluses. Durango's solid performance will also allow it to continue reducing its leverage, and Moody's projects that its NDID will fall to 17.4% of operating revenue by the end of 2018, from 37.7% in 2013. RATIONALE FOR PUBLIC UNIVERSITY The stable outlook for the Benemerita Universidad Autonoma de Puebla (Baa3/Aa3.mx stable) reflects the stable outlook of its supporting government, the state of Puebla (Baa3/Aa3.mx stable). RATIONALE FOR THE FOUR WATER COMPANIES The ratings affirmation for the water companies and the change of outlook to stable from negative reflect the affirmation of the ratings of their support providers and their change of outlook to stable. The water companies SIAPA (Ba2/A2.mx), COMAPA Z.C. (Ba2/A2.mx), CAPAMA (B3/B1.mx) and SOAPAP (Baa3/Aa3.mx) have strong linkages with their support providers: the state of Jalisco (Ba2/A2.mx stable), the state of Tamaulipas (Ba1/A1.mx stable), the municipality of Acapulco and the state of Puebla (Baa3/Aa3.mx stable), respectively. RATIONALE FOR AGUAS DEL MUNICIPIO DE DURANGO The ratings upgrade of Aguas del Municipio de Durango to Ba2/A2.mx from Ba3/A3.mx with a stable outlook reflects the ratings upgrade of the water company's support provider, the municipality of Durango, to Ba2/A2.mx with a stable outlook. In Moody's view, it is not meaningful to distinguish between the credit quality of Aguas del Municipio de Durango and that of the supporting government. RATIONALE FOR ENHANCED LOANS The affirmation of the enhanced loans reflects the affirmation of all issuer ratings in Moody's portfolio. WHAT COULD CHANGE THE RATINGS UP/DOWN Given the stable outlook on Mexico's sovereign bond rating, Moody's does not expect an upgrade on Mexico's City debt ratings. However, an upgrade or downgrade on Mexico's ratings will exert upward or downward pressure on Mexico's City debt ratings. An improvement of the financial and debt metrics of states and municipalities could exert upward pressure on their ratings. Conversely, a deterioration of the financial and debt metrics of states, municipalities and the public university could exert downward pressure on their ratings. Given the strong financial linkages between the five water companies and the public university and their respective support providers, an upgrade/downgrade of the support providers' ratings could result in an upgrade/downgrade of the issuer ratings of the water companies and the university. Given the links between the loans and the credit quality of the obligors, an upgrade/downgrade of the issuer ratings could exert upward/downward pressure on the debt ratings of the enhanced loans. Also, if debt service coverage metrics improve or fall materially below Moody's expectations, the ratings could face upward/downward pressure. The principal methodology used in rating the Mexico RLGs' issuer ratings was Regional and Local Governments published in January 2018. The principal methodologies used in rating the enhanced loans were Regional and Local Governments published in January 2018, and Rating Methodology for Enhanced Municipal and State Loans in Mexico published in July 2017. The principal methodologies used in rating Benemerita Universidad Autonoma de Puebla were Higher Education published in December 2017 and Government-Related Issuers published in August 2017. The principal methodology used in rating the water companies was Government-Related Issuers published in August 2017. The period of time covered in the financial information used to determine state, municipality, water company and public university ratings is between 01/01/2012 and 12/31/2016 (source: financial statements). The period of time covered in the financial information used to determine enhanced loan ratings is between 01/01/2013 and 12/31/2017 (source: financial statements). ====================== P U E R T O R I C O ====================== MINI MASTER: Files 2nd Amendment to 2nd Amended Plan ---------------------------------------------------- Mini Master Concrete Services, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico a second amendment to its second amended plan of reorganization dated March 20, 2018. The treatment of Class 1 Economic Development Bank has been amended as follows: EDB's secured claims for $3,198,012.66 arose from two commercial loans issued to the Debtor. EDB's secured claims will be totally paid as by the transfer of the Debtor's properties in Vega Alta, Puerto Rico with a combined value of $480,000; the transfer of the Debtor's parcel of land in Isabela, Puerto Rico with an appraised value of $670,000, the completion of the transfer of the Dorado property by the execution of the corresponding deed and; a cash payment to be made on the Effective Date for $250,000. The transfers and payments totaling $1,400,000 will be in full payment and release of all of EBD's claims. A copy of the Second Amendment to the Second Amended Plan is available at http://bankrupt.com/misc/prb16-09956-11-221.pdf About Mini Master Concrete Services Mini Master Concrete Services, Inc. filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-09956) on December 22, 2016. The Hon. Mildred Caban Flores over the case. Charles A. Cuprill, PCS Law Offices represents the Debtor as counsel. The Debtor disclosed total assets of $15.78 million and total liabilities of $5.46 million. The petition was signed by Carmen M. Betancourt, president. VEGA ALTA: Unsecured Creditors to Receive $5K Over 60 Months ------------------------------------------------------------ Vega Alta Community Health, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico an amended disclosure statement and summary of its proposed plan of reorganization dated March 25, 2018. Class 5 consists of all other general unsecured creditors not classified as part of the convenience class and listed in the Schedules and those who filed proof of claims, who hold a claim over $5,000 and who have not elected to be part of the convenience class. Those who were not listed by the Debtor but that have filed proof of claims asserting an unsecured obligation over $5,000 are also included in this class. After review of the proof of claims filed to date, those listed by the Debtor, the total of claims relating to this class is $557,448.35. As of March 25, 2018 there are 13 general unsecured creditors included in this Class. The total claims related to this classification are $557,448.35. The entire allowed claims for this class will receive more than the amount calculated as liquidation value under a Hypothetical Chapter 7 liquidation analysis. The entire class five will receive the total amount of $5,000 during 60 months counting from the Effective Date. The debtor will distribute this monthly payment at pro rata of each claimholders claims. The Debtor will also initiate accounts receivable collection efforts. The Debtor understands that they can collect from $12,000 to $24,000 as annual accounts receivables net proceeds. The debtor proposes that 50% of accounts receivables net proceeds will be disbursed to unsecured creditors. Funding the plan will be from the income collection from health insurance providers, Government agencies including Puerto Rico Department of Health, income from money collected to patients including health insurance deductibles, accounts receivables collection efforts made by the debtor, and any other business that Debtor wild be engaged during the life of the Plan. A full-text copy of the Amended Disclosure Statement is available at http://bankrupt.com/misc/prb16-08128-11-146.pdf About Vega Alta Vega Alta Community Health, Inc., provides primary medical services to the residents of Vega Alta and nearby areas. The Debtor, based in Catano, Puerto Rico, filed a Chapter 11 petition (Bankr. D.P.R. Case No. 16-08128) on Oct. 11, 2016. Jaime Rodriguez Perez, at Jaime Rodriguez Law Office, PSC, serves as bankruptcy counsel. In its petition, the Debtor listed $25,582 in assets and $1.47 million in liabilities. The petition was signed by Luis M Gonzalez Bermudez, president. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Foreign Partners Pushing Quevedo Out ------------------------------------------------------------ Kallanish Energy reports that foreign partners of Venezuela's oil company, Petroleos de Venezuela, S.A.(PDVSA), have been "quietly urging" the government to remove Manuel Quevedo from both his position as the head of the oil company and as the country's oil minister, Argus reported. Kallanish Energy notes that the news agency said multiple Venezuela-based foreign oil executives, diplomats and a presidential palace official say the inexperienced National Guard major general has to go. President Nicolas Maduro is reportedly under pressure to replace his nominee with a professionally qualified oil executive, the report relays. Russia's Rosneft and China's CNPC, primary partners in Venezuelan JVs, are also pushing for the appointment of a PDVSA board of directors with oil management experience and authority to make executive decisions, Argus said, the report relays. The report notes that Mr. Maduro named Mr. Quevedo in November 2017, amid a corruption investigation, leading then-energy minister Eulogio Del Pino and PDVSA CEO Nelson Martinez to be arrested. Roughly 80 senior PDVSA executives have been arrested under corruption charges, leaving the state-oil firm without industry expertise, Kallanish Energy notes. As the country struggles with its worst economic crisis ever, PDVSA struggles to keep production from declining, the report says. Mr. Quevedo, so far, has failed to deliver on the task of lifting output by 1 million barrels per day (MMBPD) this year, the report relays. A foreign executive speaking on condition of anonymity said PDVSA's management "has become dysfunctional under Mr. Quevedo." He told Argus "production continues to fall, PDVSA's best workers are leaving the industry, debts aren't being paid, criminal violence and theft in the oilfields is out of control, and no one makes any decisions about anything," the report notes. A source said "output continues to fall because everything is at a standstill," while another source added "Mr. Quevedo holds many meetings, but nothing is decided," the report relays. Mr. Maduro has to deal quickly with PDVSA's death spiral, and end the stealing of oil and equipment, as this will only add constraints to lifting crude production and, consequently, the country's revenues, the report adds. As reported in the Troubled Company Reporter-Latin America on March 19, 2018, Moody's Investors Service downgraded Petroleos de Venezuela, S.A.(PDVSA)'s ratings to C from Ca. Moody's also lowered the company's baseline credit assessment (BCA) to c from ca. VENEZUELA: Western Leaders Say They Won't Recognize Elections ------------------------------------------------------------- Ryan Dube at The Wall Street Journal reports that a meeting of leaders from across the Americas centered its attention on Venezuela's authoritarian government, as the U.S. and Latin America's largest nations said in a session they wouldn't recognize next month's presidential election, calling it a farce. At the Summit of the Americas, U.S. Vice President Mike Pence called for nations to do more to isolate Venezuelan President Nicolas Maduro, according to The Wall Street Journal. He traveled to Peru in the place of President Donald Trump, the report notes. "The United States of America will not stand idly by as Venezuela crumbles," said Mr. Pence, who met with Venezuelan opposition activists in Peru's capital city, the report relays. "Now is the time to do more, much more," he added. Venezuela's economic collapse and perceived growing authoritarianism has loomed over the meeting of presidents from the Western Hemisphere that is held once every three years, the report notes. Mr. Maduro was barred from participating in the summit, whose official theme is democratic governance against corruption, the report says. The U.S., Canada and other countries have leveled sanctions against the Maduro administration over the last year, the report relays. Mr. Pence said the U.S. will provide $16 million in aid to support Venezuelans that have fled abroad amid soaring inflation and chronic shortages of food and medicine, the report notes. After Mr. Pence's speech, leaders from 16 nations in the hemisphere -- including Brazil, Mexico, Chile and Peru -- issued a statement saying they will continue to push for free and fair elections, the return of democracy and respect for human rights in Venezuela, the report notes. "We can't look away," said Argentine President Mauricio Macri, who also signed the statement, the report discloses. "Venezuela is an extreme case of what uncontrolled corruption can lead a society to," he added. Mr. Maduro's few remaining leftist allies in the region lashed out at the U.S., as they have at previous summits, the report notes. Bolivian President Evo Morales called Washington the "main threat to democracy" in the region, lamenting that Mr. Maduro was excluded from the meeting, the report says. But most leaders opposed a regime that has jailed opponents and overseen an economic decline so severe that hundreds of thousands of Venezuelans have flooded into neighboring countries to escape a humanitarian crisis that has resulted in babies dying of malnutrition, the report relays. "Anyone who is a true friend of Venezuela must put the interest of the people of Venezuela to the forefront of our concerns," said Canadian Prime Minister Justin Trudeau, the report notes. "The violation of human rights in Venezuela is completely unacceptable," he added. U.S. Sen. Marco Rubio (R., Fla), who held meetings with Latin American leaders at the summit, said there is an agreement on the need for countries to impose new, "aggressive sanctions," the report relays. In an interview, he said there needs to be a plan to help Venezuela recover once constitutional order is restored, the report notes. In the meantime, he said the U.S. and its allies are looking to deal with the humanitarian crisis and find a way to deliver humanitarian assistance inside Venezuela, the report says. Mr. Maduro's Socialist government has blocked foreign aid even as the economy is set to continue its violent decline with inflation hitting 13,000% this year, according to the International Monetary Fund. He argues there is no crisis and that aid is part of a U.S.- led effort to destabilize his government, the report relays. "It's incredible that he maintains a state of denial of such a clear crisis," Colombian President Juan Manuel Santos said, the report adds. Mr. Santos said Colombia won't recognize the May 20 election in Venezuela that is being boycotted by most of the opposition parties due to a playing field vastly tilted in favor of Mr. Maduro, who has jailed and barred rivals from running, the report notes. Henri Falcon, a former governor, is Mr. Maduro's only notable rival candidate, the report relays. "We won't recognize the results of elections that are designed to cover up a dictatorship," said Mr. Santos, the report adds. As reported in the Troubled Company Reporter-Latin America on March 13, 2018, Moody's Investors Service has downgraded the Government of Venezuela's foreign currency and local currency issuer ratings, foreign and local currency senior unsecured ratings, and foreign currency senior secured rating to C from Caa3. Concurrently, the foreign currency senior unsecured medium term note program has also been downgraded to (P)C from (P)Caa3. The outlook has been changed to stable from negative. *********** 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. 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