/raid1/www/Hosts/bankrupt/TCRLA_Public/181204.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, December 4, 2018, Vol. 19, No. 240


                            Headlines



A R G E N T I N A

METROGAS SA: Moody's Gives B1 Global Scale Rating on New Notes
* ARGENTINA: Leaders Discuss Economic Ties With Spain Counterpart


J A M A I C A

LASCO FINANCIAL: Ops Not Threatened by Issues With MoneyGram


M E X I C O

DER NEUE HORIZONT: Fitch Affirms 'B' International IFS Rating
MEXICO: IMF Executive Board OKs FCL Access of SDR 53.4762 Billion


P U E R T O    R I C O

AMERICAN CENTER: Taps Lourdes Ledon as Special Counsel
LIBERTY CABLEVISION: Moody's Alters Outlook on B3 CFR to Stable
LUBY'S INC: Bandera Partners Nominates Slate of Five Directors
LUBY'S INC: Issues Statement on Bandera's Nomination of Directors


V E N E Z U E L A

PETROLEOS DE VENEZUELA: In Talks Over 2nd Oil-Transfer Operation
VENEZUELA: Opposition Urges BoE Not to Return Gold to Maduro


                            - - - - -


=================
A R G E N T I N A
=================


METROGAS SA: Moody's Gives B1 Global Scale Rating on New Notes
--------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A. has
assigned a B1 Global Scale local currency rating -- and an Aa3.ar
National Scale rating -- to MetroGas S.A.'s up to ARS1.500 million
proposed senior unsecured Class 1 and 2 notes to be issued under
its MTN Program. The outlook is stable.

RATINGS RATIONALE

Metrogas' B1/Aa3.ar ratings acknowledge that despite a very
challenging macroeconomic environment in Argentina, regulatory
conditions remain broadly supportive for Metrogas through the
government's passage and implementation of a new tariff regime
(RTI) that has adjusted gas distribution tariffs significantly. In
addition, the RTI incorporates semi-annual tariff adjustments that
allow a recovery of the company's growing operating costs in the
highly inflationary environment that persists in Argentina.

While the regulatory changes introduced in the last two years are
still recent and have been subject to public scrutiny, Moody's
consider them to be credit positive and overall supportive of
Metrogas' credit profile. As a result of the completion of the
third and last stage from the comprehensive tariff review (RTI) in
April 2018, Metrogas' credit metrics improved significantly. For
the last 12 months ended September 2018, the company's operating
margin rose to 14.9% (11.5% at fiscal year-end 2017) from negative
margins in 2016 and earlier years. Likewise, cash from operations
(CFO) pre-working capital to debt has almost doubled to 45.4% from
26.7% in 2017.

The ratings continue to be largely constrained by a still
incipient regulatory environment that could be challenged in the
medium term.

Proceeds from the proposed issuance will be used to refinance
short term debt maturities and will not increase the company's
total outstanding debt. Furthermore, the notes will be peso-
denominated and will reduce the company's foreign exchange
exposure, that currently is high given the company's dolar
denominated outstanding debt.

The stable outlook reflects its expectation of continued solid
metrics and that the cost recovery mechanisms for regulated
utilities will remain largely in place.

Given the stable outlook and its view that the creditworthiness of
the company continues to be highly dependent on the credit quality
of the Argentine government, Moody's does not expect an upgrade
for Metrogas in the near term.

A material regulatory reversal that delays or diminishes Metrogas'
ability to recover costs or the adoption of by the company of an
aggressive financial policy would result in negative pressure to
the ratings. Quantitatively, if Metrogas' reports Interest
coverage (FFO + interest to interest) below 3.0 times or CFO
(pre-wc) to debt below 20% negative rating pressure would result.

Metrogas is an Argentinean gas distribution utility, with
operations in the capital city and the southern area of Buenos
Aires Province, that holds one of the biggest concession areas in
terms of number of clients. Metrogas is 70% controlled by YPF SA
(B2, Stable). For the remaining 30%, 29% floats in the Buenos
Aires stock exchange and 1% belongs to Metrogas' employees.


* ARGENTINA: Leaders Discuss Economic Ties With Spain Counterpart
-----------------------------------------------------------------
EFE News reports that Spanish Prime Minister Pedro Sanchez and
Argentine President Mauricio Macri met on the sidelines of the G20
summit to discuss economic ties between their two nations.

Macri, according to Spanish official sources, spoke in very
positive terms about Spain's model of small and mid-sized firms
that focus on exports, EFE News says.

In that context, Macri proposed partnerships between Spanish and
Argentine companies to add value to commodities produced in
Argentina, the report notes.

The two leaders likewise discussed the opportunities for Spanish
engineering and construction companies to bid on major
infrastructure projects in Argentina, the report says.

Macri thanked Sanchez for Spain support for accelerating
negotiations between the Mercosur trade bloc -- comprising
Argentina, Brazil, Paraguay and Uruguay -- and the European Union,
the report discloses.

The president also expressed appreciation for Spain's backing
Argentina's effort to return to the Organization for Economic
Cooperation and Development, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Nov. 14, 2018, S&P Global Ratings lowered its long-term foreign
and local currency ratings on Argentina to 'B' from 'B+' and
affirmed its short-term foreign and local currency ratings at 'B'.
S&P removed the long-term ratings from CreditWatch, where it
placed them on Aug. 31, 2018, with negative implications.
The outlook on the long-term ratings is stable. At the same time,
S&P lowered its national scale ratings to 'raAA-' from 'raAA'.
S&P also lowered its transfer and convertibility assessment to
'B+' from 'BB-'.

S&P said, "The stable outlook reflects our expectation that the
government will implement difficult fiscal, monetary, and other
measures to stabilize the economy over the coming 18 months,
gradually staunching the deterioration in the sovereign's
financial profile and debt burden, reversing inflation dynamics,
and restoring investor confidence. The combination of lower
government financing needs, declining inflation and interest
rates, and expectations of continuity in key economic policies
after national elections in October 2019 could set the stage for
economic recovery and contain external vulnerability."

Fitch Ratings affirmed on May 8, 2018, Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and revised
the Outlook to Stable from Positive.

On December 4, 2017, Moody's Investors Service 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.

As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30-grace
period on a US$539 million interest payment.  Earlier, 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.



=============
J A M A I C A
=============


LASCO FINANCIAL: Ops Not Threatened by Issues With MoneyGram
------------------------------------------------------------
RJR News reports that Lasco Financial Services has sought to
clarify and assure consumers and shareholders that the issues
plaguing MoneyGram on the international scene do not pose a threat
to MoneyGram's ongoing business or to LASCO Financial Services'
commercial activity.

Lasco issued a statement in response to a Gleaner article entitled
MoneyGram Woes, according to RJR News.

MoneyGram was recently fined US$125 million for breaching a
settlement that required it to improve its anti-money laundering
controls in 2012, the report relays.

Lasco said that since the original prosecution in 2012, MoneyGram
has taken significant steps to improve its compliance programme
and have remediated many of the issues which were originally
detected, RJR News discloses.

LASCO Financial Services is MoneyGram's largest agent in Jamaica.



===========
M E X I C O
===========


DER NEUE HORIZONT: Fitch Affirms 'B' International IFS Rating
-------------------------------------------------------------
Fitch Ratings has affirmed Der Neue Horizont Re, S.A.'s
International Insurer Financial Strength rating and National Scale
IFS rating at 'B' and 'BBB-(mex)', respectively. The Rating
Outlook is Stable.

KEY RATING DRIVERS

Der Neue became authorized by Mexico's Insurance and Surety
National Commission (CNSF) on Dec. 13, 2014; as of September 2017,
the company had grown to USD20.7 million in gross premiums written
(GPW). At mid-year-2018, Der Neue was the fifth largest company in
terms of agricultural insurance premiums written. While Fitch
recognizes that market conditions benefit company growth, any
expansion must be consistent with the company's financial and
operational capacities. The short operating history is a
significant limitation on the current ratings.

The company's financial performance is influenced by weather
events, the timing of subscription premiums and the levels of
retention. In this sense, Der Neue's capacity to generate a
critical mass in premiums that would allow it to absorb operating
costs and claims in a competitive market will be key to
determining future performance. Also, given the company's low
retention plan (less than 5% of premiums), future performance
relies on its ability to retain a good reinsurance portfolio.

Apart from the MXN92.5 million (USD4.8 million) needed to start
operations, the company has not required additional capital
injections as of September 2018. As of that time, the liabilities-
to-equity ratio was 1.7x, lower than its peer average of 4.6x;
also, the technical reserves plus net premiums written to equity
(Net leverage) ratio stood at 1.6x, favorable when compared with
the agricultural sector's average of around 5.0x. The company's
business plan calls for controlled leverage (net leverage) of
around 1.6x, while the expected low retention level should yield a
ratio of net retained premiums-to-equity no higher than 10%
(September 2018: 6.0%).

Der Neue's equity level is adequate to support its growth strategy
in the short term. However, projections may be sensitive to
changes in expected claims ratios, expenses or cost of
reinsurance. Fitch will monitor how performance may affect
internal capital generation.

The company's investment portfolio is concentrated in Mexican
federal government instruments; 53% is concentrated in CETES
payable in 28 days, the remainder is invested in debt
certificates. As of September 2018, the liquid assets to reserves
ratio was 79%, favorable compared with the sector's average of
76%. The company expects to maintain its current investment policy
focused on low-risk federal government instruments.

The company manages a diversified reinsurance program through
quota share contracts with Swiss Re (as the major participant),
Partner Re, Liberty Syndicates, Oddysey Re, Reaseguradora Patria,
Qatar Re, TransAtlantic Re, Barents Re and Navigators Re. Fitch
notes the company's heavy reliance on reinsurance.

RATING SENSITIVITIES

Upside potential is tied to the successful realization of the
company's business plan and its ability to post positive operating
results, the good quality of its investments, and a conservative
reinsurance program. Failure to deliver results as indicated in
its business plans in terms of premium growth, retention levels
and overall profitability and capitalization, may result in a
rating downgrade.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

Der Neue Horizont Re, S.A.

  -- IFS at 'B';

  -- National IFS at 'BBB-(mex)'.


MEXICO: IMF Executive Board OKs FCL Access of SDR 53.4762 Billion
-----------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF), on
November 26, 2018, completed its review of Mexico's qualification
for the arrangement under the Flexible Credit Line (FCL) and
reaffirmed Mexico's continued qualification to access FCL
resources.  At the request of the Mexican authorities for a
reduction of access under the FCL arrangement for Mexico
consistent with their intention last year, the Executive Board
approved the FCL access of SDR 53.4762 billion (about US$74
billion.  The Mexican authorities stated their intention to
continue treating the arrangement as precautionary.

The current two-year FCL arrangement for Mexico was approved by
the IMF's Executive Board on November 29, 2017 for an original
access amount equivalent to SDR 62.3889 billion (about US$86
billion). Mexico's first FCL arrangement was approved on April 17,
2009, and was renewed on March 25, 2010, January 10, 2011,
November 30, 2012, November 26, 2014, and May 27, 2016.

Following the Executive Board's discussion on Mexico, Christine
Lagarde, Managing Director and Chair, made the following
statement:

"Very strong policies and policy frameworks have helped Mexico
navigate a complex external environment. Growth has remained
resilient while inflation declined. Fiscal policy has stemmed the
rise in the public debt-to-GDP ratio, monetary policy has
maintained a prudent stance, and financial regulation and
supervision remain strong. The flexible exchange rate has played a
key role in helping the economy adjust to external shocks.

"The current and the incoming administrations have stated their
commitment to maintain very strong policies and policy frameworks,
including the independence of economic-policy institutions. They
are also committed to fostering a reform agenda to strengthen the
rule of law and boost private investment. It will be important to
adhere strictly to these commitments to preserve hard-won gains
and instill policy predictability.

"Given its openness to financial and trade flows, the Mexican
economy remains exposed to external risks. These risks include
renewed volatility and increased risk premia in global financial
markets, a sharp pull-back of capital from emerging market
economies, as well as weakening global growth and intensified
global trade tensions. The risk of an abrupt change in Mexico's
trade relations, however, has receded.

"The Flexible Credit Line arrangement plays an important role in
supporting the authorities' macroeconomic strategy by providing
insurance against tail risks and bolstering market confidence. In
light of the dissipation of some of the risks facing Mexico and
given Mexico's strong buffers, the authorities requested a
reduction in access under the current arrangement, in line with
the commitment they made at the time of its approval a year ago.
The lower access is appropriate and consistent with the
authorities' strategies that envisage a gradual phasing out of
Mexico's use of the facility subject to a reduction in risks. Both
current and incoming administrations intend to continue to treat
the arrangement as precautionary."



======================
P U E R T O    R I C O
======================


AMERICAN CENTER: Taps Lourdes Ledon as Special Counsel
------------------------------------------------------
American Center for Civil Justice, Inc., seeks authority from the
U.S. Bankruptcy Court for the District of New Jersey to expand the
scope of the retention Lourdes I. Morera Ledon, as special
counsel.

Ms. Ledon represents the Debtor in a case entitled Lourdes
Domenech Guzman et al. v. Gilberto Guzman Ramos et al. (Civil No.
DAC2010-3790), which is pending before the Puerto Rico Court of
First Instance, Superior Division of Bayamon. The Debtor seeks to
expand the scope of the retention. Joshua Ambush has filed a claim
that is based in part on alleged violations of a settlement
agreement. The allegations of Ambush are that the Debtor violated
the settlement agreement by opposing a motion to intervene filed
by Ambush in the Domenech Case, and by filing other pleadings in
that case. The Debtor has filed an adversary proceeding to expunge
the Ambush Claim and to recover damages from Ambush for his
violations of the Settlement Agreement.

As special counsel, Lourdes I. Morera Ledon will assist the
Debtor's counsel in the Ambush Adversary Proceeding to establish
the extent and validity of the Ambush Claim and pursue recovery
from Ambush of damages for his violation of the settlement
agreement.

Hourly rates charged by the counsel are:

     Lourdes I. Morera Ledon   $250
     Paralegals                 $75

Ms. Ledon attests that she does not represent nor hold any
interest adverse to the debtor or the estate with respect to the
matter for which he/she will be retained under 11 U.S.C. Sec.
327(e).

The counsel can be reached through:

     Lourdes I. Morera Ledon
     2900 Carr. 834
     Villa Mercedes Buzon 4025
     Guaynabo, PR 00971

            About American Center for Civil Justice

American Center for Civil Justice, Inc., is a tax-exempt
organization that provides legal services.  The organization
defends human and civil rights by advocating and aiding lawsuits
by victims of oppression, acts of violence and other injustices.

American Center for Civil Justice filed voluntary petitions for
relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.N.J.
Lead Case No. 18-15691) on March 23, 2018.  In the petition signed
by Elie Perr, president, the company estimated $10 million to $50
million in assets and liabilities.  The Honorable Christine M.
Gravelle presides over the case.  Timothy P. Neumann, Esq. , of
Broege, Neumann, Fischer & Shaver LLC is the Debtors' counsel.


LIBERTY CABLEVISION: Moody's Alters Outlook on B3 CFR to Stable
---------------------------------------------------------------
Moody's Investors Service changed the outlook on the ratings of
Liberty Cablevision of Puerto Rico LLC to stable, reflecting the
recovery of the company's operations and cash flows from the
effects of last year's hurricanes. At the same time, Moody's
affirmed LCPR's B3 corporate family rating, its B3-PD probability
of default rating, as well as the B2 and Caa2 ratings on its
senior secured bank debt (first and second-lien).

Outlook Action:

Issuer: Liberty Cablevision of Puerto Rico LLC

Outlook, Changed To Stable From Negative

Affirmations:

Issuer: Liberty Cablevision of Puerto Rico LLC

Probability of Default Rating, Affirmed B3-PD

Corporate Family Rating, Affirmed B3

Senior Secured First Lien Bank Credit Facility, Affirmed B2 (LGD3)

Senior Secured Second Lien Bank Credit Facility, Affirmed Caa2
(LGD6)

RATINGS RATIONALE

The change in rating outlook to stable reflects the recovery of
LCPR's operations and cash flows from the infrastructure damages
and economic loss of Hurricanes Irma and Maria, which heavily hit
Puerto Rico in September 2017. LCPR completed the rebuilding of
its network in Q3 2018 and, while it has not fully returned to
pre-hurricane revenue and EBITDA levels, Moody's expects it to
generate positive free cash flow going forward. Moreover, Moody's
estimates that LCPR's credit metrics will meet the parameters for
the B3 rating during the coming quarters, once the effects of the
hurricanes phase out. Moody's projects that LCPR's ratio of gross
debt to EBITDA (including Moody's adjustments) will improve to
around 6x by year-end 2019.

The affirmation of LCPR's ratings reflects Moody's expectation
that, in spite of a smaller subscriber base post-hurricanes, the
company will maintain a solid market position, as Puerto Rico's
leading provider of pay TV and broadband services, and at least
stable revenue and high profitability, with an EBITDA margin
around 45%. The B3 CFR continues to take account of the company's
geographic concentration on Puerto Rico and the challenging
operating environment in which it has been operating for years,
with the island's struggling economy and population decline.

Following the hurricane effects and the temporary loss of revenue,
LCPR received support from its shareholder, Liberty Latin America
Ltd. LCPR was granted an up to USD60 million equity commitment,
available until the end of December 2018 and of which it had used
USD45 million as of September 30, 2018. The company also received
insurance advances totaling USD50 million and funds from the
Federal Communications Commission amounting to USD11 million.
Moody's expects LCPR's liquidity to be adequate for the next 12-18
months. At the end of September 2018, LCPR had a cash balance
amounting to USD32 million and Moody's projects that the company
will generate positive free cash flow going forward (around USD40
million of free cash flow in 2019), enabling the company to
gradually repay the drawdowns under its USD40 million revolving
credit facility, which it had fully drawn in Q4 2017. LCPR has a
comfortable debt maturity profile with its term loans maturing in
2022 and 2023. LCPR's financial covenants will start again to be
tested in Q1 2019 and Moody's expects the company to be compliant.

Moody's would consider a downgrade of LCPR's ratings if leverage
(Moody's adjusted Debt-to-EBITDA) was above 6.75x or free cash
flow negative for a prolonged period of time. A downgrade would
also occur if LCPR's liquidity weakens and it fails to receive
liquidity support from its shareholder. Finally, negative ratings
pressures would also occur if there is a further reduction in the
company's revenue base, resulting in particular from a decline in
Puerto Rico's population or from economic pressures.

Moody's would consider an upgrade of LCPR's ratings if leverage
was sustained below 5x and free cash flow-to-debt above 3%. At the
same time, an upgrade would also require substantial improvement
in the credit profile and economy of Puerto Rico or increased
business scale beyond the scope of Puerto Rico.

The principal methodology used in these ratings was Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in January 2017.

LCPR, which was created in 2012 following the merger of two Puerto
Rican broadband communications entities, is the largest cable
company in Puerto Rico, providing video, high speed data and
telephone services to residential and commercial customers. During
the 12 months ended September 2018, the company's total revenues
were still affected by the hurricane effects and amounted to $248
million (excluding $11 million of "other revenue" representing
funds received from the Federal Communications Commission). LCPR
is 100% owned by Liberty Latin America Ltd.


LUBY'S INC: Bandera Partners Nominates Slate of Five Directors
--------------------------------------------------------------
Bandera Partners LLC, owner of 2,619,721 shares of Luby's, Inc.
common stock or approximately 8.9% of the Company's outstanding
shares, delivered a letter to the Company's Board of Directors on
Nov. 27, 2018, expressing its concerns with respect to actions
taken by the Company in its investments and real estate holdings.

"I'm writing today to tell you that what's happening at Luby's is
simply not working," said Jeff Gramm, managing director at Bandera
Partners LLC.  "The Fuddruckers and Luby's restaurant concepts do
not generate a sufficient return on capital to justify the
investments management is making, under your direction and
supervision, into the business.  The strategy of plowing cash
flows back into restaurants works with good concepts like
Pappadeaux and Pappasito's, but it has been a failure at Luby's.
Capital expenditures since fiscal 2008 have totaled $235 million
dollars, about six times the company's current market
capitalization.  The return on this investment has been dismal,
and to pay down the debt you have accumulated in the process,
Luby's is liquidating the most valuable asset shareholders own,
the company's real estate."

Mr. Gramm added, "I have tried to reach a mutually agreeable
settlement with the company that would give Bandera sufficient
seats on the company's Board to help foster positive change.
Luby's has hired a very sophisticated and expensive corporate
defense lawyer instead of engaging in substantive negotiations to
improve the Board with fresh, independent faces.  To date, almost
four weeks after I responsibly engaged with the company, Luby's
has evaded substantive discussion.  CEO Christopher Pappas has not
responded to any of my requests to speak, and only one of the
Board members I have reached out to has replied.  I tried to
settle this matter amicably, and for the good of all shareholders,
but you left me no choice but to nominate a slate of highly
qualified directors with deep experience in finance, real estate
and restaurant operations."

"I understand that Luby's directors control approximately 38% of
the outstanding shares of Common Stock.  But I believe this is the
outside shareholders' last chance to salvage their investment in
the company, and I feel a responsibility to take on this difficult
battle on their behalf, rather than subject myself and other
Luby's shareholders to another year of value destruction," Mr.
Gramm concluded.

Besides Mr. Gramm, Bandera's slate includes Senator Phil Gramm,
Stacy Hock, Savneet Singh, and Brian Wright.

A full-text copy of the Letter is available for free at:

                     https://is.gd/jM0Cc0

                         About Luby's

Houston, Texas- based Luby's, Inc. (NYSE: LUB) --
http://www.lubysinc.com/-- operates 146 restaurants nationally as
of Aug. 29, 2018: 84 Luby's Cafeterias, 60 Fuddruckers, two
Cheeseburger in Paradise restaurants.  Luby's is the franchisor
for 105 Fuddruckers franchise locations across the United States
(including Puerto Rico), Canada, Mexico, the Dominican Republic,
Panama and Colombia.  Additionally, a licensee operates 36
restaurants with the exclusive right to use the Fuddruckers
proprietary marks, trade dress, and system in certain countries in
the Middle East.  The Company does not receive revenue or
royalties from these Middle East restaurants.  Luby's Culinary
Contract Services provides food service management to 28 sites
consisting of healthcare, corporate dining locations, and sports
stadiums.

Luby's reported a net loss of $33.56 million on $365.19 million of
total sales for the year ended Aug. 29, 2018, compared to a net
loss of $23.26 million on $376.03 million of total sales for the
year ended Aug. 30, 2017.

As of Aug. 29, 2018, Luby's had $199.98 million in total assets,
$87.36 million in total liabilities, and $112.62 million in total
shareholders' equity.

Grant Thornton LLP, in Houston, Texas, issued a "going concern"
qualification in its report on the consolidated financial
statements for the year ended Aug. 29, 2018, noting that the
Company sustained a net loss of approximately $33.6 million and
net cash used in operating activities of approximately $8.5
million. The Company's term and revolving debt of approximately
$39.5 million is due May 1, 2019.  The Company was in default of
certain debt covenants of its term and revolving credit agreements
maturing on May 1, 2019.  On Aug. 24, 2018, the lenders agreed to
waive the existing events of default resulting from any breach of
certain financial covenants or the limitation on maintenance
capital expenditures, in each case that may have occurred during
the period from and including May 9, 2018 until Aug. 24, 2018, and
any related events of default.  Additionally, the lenders agreed
to waive the requirements that the Company comply with certain
financial covenants until Dec. 31, 2018, at which time the Company
will be in default without an additional waiver or alternative
financing. These conditions, along with other matters raise
substantial doubt about the Company's ability to continue as a
going concern.


LUBY'S INC: Issues Statement on Bandera's Nomination of Directors
-----------------------------------------------------------------
Luby's, Inc. confirmed that it has received notice on behalf of
Bandera Partners LLC and certain of its affiliates that it intends
to nominate up to six candidates for election to Luby's Board of
Directors at the 2019 Annual Meeting of Shareholders.

Luby's issued the following statement:

"Luby's Board is in the process of reviewing Bandera's nomination
notice consistent with its fiduciary duties.  The Luby's Board and
management team are committed to acting in the best interests of
the Company and its shareholders.  We are always open to
constructive ideas regardless of their source and will carefully
consider Bandera's candidates as we would any other potential
directors to assess their ability to add value to the Board for
the benefit of all shareholders.

"Luby's notes that the Company was surprised by Bandera's
nominations.  Bandera approached the Company only a few days prior
to the nomination deadline and demanded that the Board replace one
third of the directors and appoint Jeff Gramm, his father Sen.
Phil Gramm, and one of Bandera's close business associates to the
Board.  Even though the Board extended the nomination deadline to
allow for constructive discussions, Bandera gave the Board only 48
hours to agree to their demands.  The Company informed Bandera
that 48 hours was an insufficient time for a public company board
to commit to appointing three candidates whom the Board had not
met and whose biographies they had not had an opportunity to
carefully review and discuss.

"Christopher Pappas and Harris Pappas and the entire Board
continue to support the Company's strategy and plans as have been
previously disclosed.  In furtherance of this support, each Luby's
director has irrevocably committed to vote their shares in the
Company in accordance with the recommendations of the Board at the
2019 Annual Meeting of Shareholders.

"The Board will review and consider Bandera's nomination notice
and make a formal recommendation regarding director nominees in
the Company's definitive proxy statement and other materials, to
be filed with the Securities and Exchange Commission and mailed to
all shareholders eligible to vote at the 2019 Annual Meeting of
Shareholders.  Shareholders are not required to take any action at
this time."

Sidley Austin LLP is acting as legal advisor to Luby's.

                         About Luby's

Houston, Texas- based Luby's, Inc. (NYSE: LUB) --
http://www.lubysinc.com/-- operates 142 restaurants nationally as
of Nov. 7, 2018: 82 Luby's Cafeterias, 59 Fuddruckers, and 1
Cheeseburger in Paradise. The Company is also the franchisor for
104 Fuddruckers franchise locations across the United States
(including Puerto Rico), Canada, Mexico, Panama, and Colombia.
Luby's Culinary Contract Services provides food service management
to 30 sites consisting of healthcare, higher education, sport
stadiums, and corporate dining locations as of Nov. 7, 2018.

Luby's reported a net loss of $33.56 million on $365.19 million of
total sales for the year ended Aug. 29, 2018, compared to a net
loss of $23.26 million on $376.03 million of total sales for the
year ended Aug. 30, 2017.  As of Aug. 29, 2018, Luby's had $199.98
million in total assets, $87.36 million in total liabilities, and
$112.62 million in total shareholders' equity.

Grant Thornton LLP, in Houston, Texas, issued a "going concern"
qualification in its report on the consolidated financial
statements for the year ended Aug. 29, 2018, noting that the
Company sustained a net loss of approximately $33.6 million and
net cash used in operating activities of approximately $8.5
million.  The Company's term and revolving debt of approximately
$39.5 million is due May 1, 2019.  The Company was in default of
certain debt covenants of its term and revolving credit agreements
maturing on May 1, 2019.  On Aug. 24, 2018, the lenders agreed to
waive the existing events of default resulting from any breach of
certain financial covenants or the limitation on maintenance
capital expenditures, in each case that may have occurred during
the period from and including May 9, 2018 until Aug. 24, 2018, and
any related events of default.  Additionally, the lenders agreed
to waive the requirements that the Company comply with certain
financial covenants until Dec. 31, 2018, at which time the Company
will be in default without an additional waiver or alternative
financing.  These conditions, along with other matters, raise
substantial doubt about the Company's ability to continue as a
going concern.



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


PETROLEOS DE VENEZUELA: In Talks Over 2nd Oil-Transfer Operation
----------------------------------------------------------------
Marianna Parraga at Reuters reports that Venezuela's state-run oil
firm Petroleos de Venezuela S.A. (PDVSA) has begun talks with
shipping firms to set up a second ship-to-ship (STS) operation off
the country's eastern coast in an effort to increase sagging crude
exports, according to three people familiar with the matter.

PDVSA this year began sea-borne oil transfers off its western
coast, mainly to move crude and fuel oil to Asia, after its ports
clogged with tankers waiting to load and its Caribbean terminals
faced seizure, according to Reuters.

PDVSA's STS activity has expanded recently, but not enough to
expedite operations at its main oil port of Jose, according to
Refinitiv Eikon data, the report notes.

The country's crude exports fell 21 percent to an average 1.126
million barrels per day (bpd) between January and October,
according to Refinitiv Eikon data, the report relays.  At the end
of the first half, PDVSA's contractual obligations totaled 2.19
million bpd, the report says.

PDVSA has not yet chosen a firm to handle the new STS operation.
Among the companies being considered is a unit of Dubai-based
Stalco Shipping Co, according to one of the people, the report
relays.

"Certified captains and mooring masters are being recruited for
the project," one person familiar with the matter said, it added.

                          Two At a Time

The new STS operation would be installed near La Borracha island,
about 16 kilometers (10 miles) off Puerto la Cruz, one of
Venezuela's main coastal cities, one of the sources said, the
report relays.

PDVSA plans to use some of its larger vessels, including Suezmaxes
and very large crude carriers as mother ships, to build the
operation. Up to two tankers could simultaneously load oil through
this system, according to the sources, the report notes.

Sea-borne transfers are risky to tankers and the environment,
require additional insurance, equipment and specially trained crew
and masters to oversee the exchanges, the report says.  PDVSA has
sought approval to conduct the transfers from INEA, Venezuela's
water authority, one of the people familiar with the matter said,
the report discloses.

But it was unclear if authorities have given PDVSA permission to
conduct the operations in an ecologically sensitive area, at
Mochima National Park, the report relays.

Venezuela's Ecosocialism ministry did not respond to a request for
comment.

The report says that most PDVSA-owned tankers used for exports
have been anchored in Venezuelan waters since U.S. producer
ConocoPhillips moved to seize Caribbean export assets last spring
to enforce a $2 billion arbitration ruling.  It reached a payment
agreement this fall, but the seizure risk remains as other
creditors could employ a similar strategy, the report says.

PDVSA also was forced to close one of three docks at its Jose
terminal for almost 90 days following a tanker collision in
August, complicating its efforts to increase crude exports, the
report adds.

"The idea is to change as many contracts as possible to FOB (free
on board)," one of the people said, requiring product to be
delivered at the seller's port and buyers to make logistical
arrangements, the report relays.

PDVSA's customers would be responsible for paying STS fees to the
operating company, the sources added, slightly changing a
mechanism used for the STS operation off the Paraguana Refining
Center, which requires clients to bring their own equipment, the
report adds.

As reported in the Troubled Company Reporter-Latin America on
Aug. 24, 2018, S&P Global Ratings affirmed its 'SD' global scale
issuer credit rating and 'D' issue-level ratings on Petroleos de
Venezuela S.A. (PDVSA).


VENEZUELA: Opposition Urges BoE Not to Return Gold to Maduro
------------------------------------------------------------
Kitco News, citing Media reports, notes that the Venezuelan
government's attempts to repatriate its 14 tons of gold being
stored at the Bank of England (BoE) just got a little more
complicated, with the country's opposition asking the British
central bank not to release the bullion to President Nicolas
Maduro.

The report notes that Venezuela's former National Assembly
President Julio Borges and the political coordinator for the
centrist social-democratic Voluntad Popular party, Carlos Vecchio,
sent a letter to the BoE's governor Mark Carney, asking him to
deny Venezuela's repatriation request and accusing President
Maduro of corruption, Miami Herald reported.

"This transaction is clearly prompted by illegal and immoral
motives: President Maduro and his associates have systematically
used the assets of the Venezuelan state (including the gold) to
sustain money laundering efforts, and to facilitate the widespread
and damaging system of corruption and repression financed by the
Venezuelan dictatorship using the money of the Venezuelans," they
wrote, the report relays.  "Huge sums have been stolen by Maduro
and his associates," they added.

In November, media reports said that President Maduro was
attempting to get the gold that is worth more than $550 million
back, but the BoE was refusing to cooperate, the report discloses.

British officials are reportedly insisting that the Venezuelan
government reveals its plans for the gold in order to prevent
money-laundering, The Times reported, the report adds.

As reported in the Troubled Company Reporter-Latin America on
June 1, 2018, S&P Global Ratings, in May 2018, removed its
long- and short-term local currency sovereign credit ratings on
Venezuela from CreditWatch with negative implications and affirmed
them at 'CCC- /C'. The outlook on the long-term local currency
rating is negative. At the same time, S&P affirmed its 'SD/D'
long- and short-term foreign currency sovereign credit ratings on
Venezuela. S&P's transfer and convertibility assessment remains at
'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.
.


                   * * * End of Transmission * * *