/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/181211.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 11, 2018, Vol. 19, No. 245 Headlines B R A Z I L BANCO DE DESENVOLVIMENTO: S&P Hikes GS Issuer Credit Rating to 'B' CONSTELLATION OIL: Files for Brazil Restructuring, Ch. 15 Case CONSTELLATION OIL: Chapter 15 Case Summary CONSTELLATION OIL: Says Agreement Reached With 2024 Bondholders C O L O M B I A PIONEER ENERGY: Expects to Have 7 Rigs Working by Mid-December PIONEER ENERGY: Joe Freeman Quits as SVP Well Servicing Segment D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Medina Meets With Head of US Financial Agency J A M A I C A JAMAICA: Growth Seen in Local Construction Industry in July-Sept P U E R T O R I C O BETTEROADS ASPHALT: Bid to Junk Petitions Partly Denied PUERTO RICO: Sends Bonuses to Workers, Ignoring Fiscal Warning V E N E Z U E L A VENEZUELA: Holds Local Elections X X X X X X X X X SCOTIABANK: Caricom Body to Monitor Republic's Purchase of Banks - - - - - =========== B R A Z I L =========== BANCO DE DESENVOLVIMENTO: S&P Hikes GS Issuer Credit Rating to 'B' ------------------------------------------------------------------ S&P Global Ratings raised its global scale issuer credit rating on Brazilian development bank Banco de Desenvolvimento de Minas Gerais S.A. - BDMG (BDMG) to 'B' from 'B-'. S&P said, "We also raised our national scale issuer credit rating on the bank to 'brA-' from 'brBBB-'. At the same time, we lowered the bank's stand-alone credit profile (SACP) to 'b' from 'b+'. The outlook on the ratings is negative." S&P said, "The upgrade of BDMG reflects our reassessment of the negative intervention risk from the state of Minas Gerais (CCC- /Negative/--), its controlling and sole shareholder. We now believe that the state's ability to impair the bank's credit quality is lower than we anticipated. "Although the state of Minas Gerais has faced expanding financial stress since 2016, we have had no evidence of extraordinary negative intervention in the bank. In our view, the state hasn't drained BDMG's resources through dividends or taxes, or reduced the bank's financial flexibility in any other way. We believe the country's regulatory framework, the Fiscal Responsibility Act, and the State-Owned Company Act have been successful in protecting the bank and other government-related entities from extraordinary negative interventions. Therefore, we believe the negative intervention risk is lower than we previously expected and the cap imposed on the ratings on BDMG by those on the state of Minas Gerais no longer applies. "Still, we believe that the state's financial constraints could pressure the local economy, affecting the bank's asset quality. As the state's economic conditions have worsened, the bank's nonperforming loans (NPLs) and net charge-offs have increased materially, reaching 4.5% and 7.4%, respectively, of the loan portfolio in September 2018, against an average of 2.1% and 0.9% in the past five years. Given that the bank's operations are highly concentrated in the state of Minas Gerais, and renegotiated loans and the top 20 clients represent around 18% and 32%, respectively, of the credit portfolio, we believe the bank's credit losses could sharply increase if the regional economy weakens further. As a result, we revised our SACP on the bank to 'b' from 'b+' to account for the higher asset risk in the region where BDMG operates." CONSTELLATION OIL: Files for Brazil Restructuring, Ch. 15 Case -------------------------------------------------------------- Constellation Oil Services Holding S.A., formerly known as QGOG Constellation S.A., filed a Chapter 15 bankruptcy petition in New York, immediately after initiating a recuperacao Judicial proceeding in Brazil. Constellation commenced restructuring proceedings in Brazil to implement a pre-negotiated restructuring of the Company's debt, which proceeding was accepted by the Brazilian court Dec. 6, 2018. The Company's restructuring has the support of a majority of its creditors, including 97.5% of the lenders under its project financings consisting of the syndicated secured credit facility with Amaralina Star Ltd. and Laguna Star Ltd. as borrowers and the syndicated secured credit facility with Brava Star Ltd. as borrower, its working capital facility with Banco Bradesco S.A., Grand Cayman Branch, as well as its shareholders. "Having the support from a significant portion of our creditors is an important achievement in restructuring the capitalization of the Company. Throughout the negotiation process with our creditors, we have continued to successfully perform under our contracts and strengthened our reputation as a leading rig operator in Brazil. We reinforce our commitment to continue to provide exceptional service to our customers as we implement our pre-arranged deal through this proceeding," said Mr. Leduvy Gouvea, CEO of Constellation. About Constellation Oil Constellation Oil Services Holding S.A. -- http://bankrupt.com/misc/nysb18-13952.pdf-- is a provider of offshore and onshore oil and gas contract drilling and FPSO services in Brazil through its subsidiary Servicos de Petroleo Constellation S.A. With continuous operations since 1981, Serviáos de Petroleo Constellation has built an unmatched reputation for excellence in offshore and onshore drilling services, obtaining ISO 9001, ISO 14001, OHSAS 18001 and API Spec Q2 certifications for its quality management, environmental and safety records and systems. Constellation on Dec. 6, 2018, initiated a recuperacao Judicial proceeding in Brazil to implement a pre-negotiated restructuring of the Company's debt. Constellation and 9 subsidiaries on Dec. 6, 2018, also filed voluntary petitions seeking relief under Chapter 15 of the Bankruptcy Code to seek recognition of the proceedings in Brazil. The lead Chapter 15 case is In re Servicos de Petroleo Constellation S.A. (Bankr. S.D.N.Y. Case No. 18-13952). The Hon. Martin Glenn is the case judge. WHITE & CASE LLP serves as counsel in the U.S. case. CONSTELLATION OIL: Chapter 15 Case Summary ------------------------------------------ Ten affiliates that filed voluntary petitions seeking relief under Chapter 15 of the Bankruptcy Code: Debtor Case No. ------ -------- Servicos de Petroleo Constellation S.A. (Lead Case) 18-13952 Avenida Presidente Antonio Carlos No. 51, 5th Floor Centro, Rio de Janeiro, 20020-010 Brazil Alpha Star Equities Ltd. 18-13953 Star International Drilling Limited 18-13954 Lone Star Offshore, Ltd. 18-13955 Constellation Oil Services Holding S.A. 18-13956 Arazi S.a.r.l. 18-13957 Snover International Inc. 18-13958 Olinda Star Ltd. 18-13959 Gold Star Equities Ltd. 18-13960 Constellation Overseas Ltd. 18-13961 Business Description: Constellation Oil Services Holding S.A. is a provider of offshore and onshore oil and gas contract drilling and FPSO services in Brazil through its subsidiary Servicos de Petroleo Constellation S.A. With continuous operations since 1981, Servicos de Petroleo Constellation has obtained ISO 9001, ISO 14001, OHSAS 18001 and API Spec Q2 certifications for its quality management, environmental and safety records and systems. Foreign Proceeding: Brazilian Recuperacao Judicial ("RJ") Chapter 15 Petition Date: December 6, 2018 Court: United States Bankruptcy Court Southern District of New York (Manhattan) Judge: Hon. Martin Glenn Chapter 15 Petitioner and Foreign Representative: Andrew Childe FFP(Cayman) Ltd, 42 North Church St 2nd Floor Harbour Centre George Town Grand Cayman, Cayman Islands Foreign Representative's Bankruptcy Counsel: John K. Cunningham, Esq. Thomas E. MacWright, Esq. Philip M. Abelson, Esq. WHITE & CASE LLP 1221 Avenue of the Americas New York, New York 10020-1095 Tel: (212) 819-8200 Email: jcunningham@whitecase.com tmacwright@whitecase.com philip.abelson@whitecase.com - and - Richard S. Kebrdle, Esq. Laura L. Femino, Esq. WHITE & CASE LLP 200 South Biscayne Blvd, Suite 4900 Miami, Florida 33131 Tel: (305) 371-2700 Email: rkebrdle@whitecase.com laura.femino@whitecase.com Estimated Assets: Unknown Estimated Debts: Unknown A full-text copy of Servicos de Petroleo's Chapter 15 petition is available for free at http://bankrupt.com/misc/nysb18-13952.pdf CONSTELLATION OIL: Says Agreement Reached With 2024 Bondholders --------------------------------------------------------------- Constellation Oil Services Holding S.A., formerly known as QGOG Constellation S.A., said Dec. 7, 2018, that it has been involved in discussions and negotiations with certain holders (and investment managers for certain holders) of the 9.00% Cash/0.50% PIK Senior Secured Notes due 2024 (the "2024 Notes") issued by the Company pursuant to that indenture dated as of July 27, 2017 by and among the Company, the subsidiary guarantors party thereto from time to time and Wilmington Trust, National Association, as trustee, paying agent, transfer agent and registrar. Following the execution of confidentiality agreements entered into as of Oct. 18, 2018 with certain members of an ad hoc committee of Noteholders (the "Ad Hoc Committee"), representatives of the Company and the Company's financial and legal advisors (the "Company Representatives") met in person and by telephone With representatives of the Ad Hoc Committee and the Ad Hoc Committee's financial and legal advisors (the "Ad Hoc Committee Representatives") to discuss the terms of a possible consensual restructuring, recapitalization, reorganization, refinancing and/or amendment of the 2024 Notes and related matters (a "Potential Transaction"), and exchanged proposals representing the terms of a potential transaction (each, a "Proposal"), which the Company is required to make public under the Confidentiality Agreements (such materials, collectively, the "Cleansing Materials"). Subsequent to these discussions, the Company has reached an agreement in principle with a majority of the 2024 bondholders, subject to definitive documentation and approval by the parties to that certain plan support agreement entered into in connection with the restructuring proceedings. About Constellation Oil Constellation Oil Services Holding S.A. -- http://bankrupt.com/misc/nysb18-13952.pdf-- is a provider of offshore and onshore oil and gas contract drilling and FPSO services in Brazil through its subsidiary Servicos de Petroleo Constellation S.A. With continuous operations since 1981, Serviáos de Petroleo Constellation has built an unmatched reputation for excellence in offshore and onshore drilling services, obtaining ISO 9001, ISO 14001, OHSAS 18001 and API Spec Q2 certifications for its quality management, environmental and safety records and systems. Constellation on Nov. 9, 2018, announced that it is deferring payment of a $27 million cash interest payment on its 9.5% Senior Notes due 2024 and a $3 million cash interest payment on its 6.25% Senior Notes due 2019, both of which are due on Nov. 9, 2018. Constellation on Dec. 6, 2018, initiated a recuperaáao Judicial proceeding in Brazil to implement a pre-negotiated restructuring of the Company's debt. Constellation and 9 subsidiaries on Dec. 6, 2018, also filed voluntary petitions seeking relief under Chapter 15 of the Bankruptcy Code to seek recognition of the proceedings in Brazil. The lead Chapter 15 case is In re Servicos de Petroleo Constellation S.A. (Bankr. S.D.N.Y. Case No. 18-13952). The Hon. Martin Glenn is the case judge. WHITE & CASE LLP serves as counsel in the U.S. case. =============== C O L O M B I A =============== PIONEER ENERGY: Expects to Have 7 Rigs Working by Mid-December -------------------------------------------------------------- From time to time, senior management of Pioneer Energy Services meets with groups of investors and business analysts. In a Form 8-K filed with the Securities and Exchange Commission on Nov. 27, 2018, the Company attached slides that have been prepared in connection with the management's participation in those meetings and participation in the Jefferies 2018 Energy Conference. The slides provide an update on the Company's operations and certain recent developments, which among others, include the following: Third Quarter Updates * Executed contracts for two rigs in Colombia, both of which are currently mobilizing and are expected to begin operations in December. With these executed contracts, the Company expects to have seven rigs working by mid-December. * As expected, two rigs in Colombia received rate increases of approximately $1,500 to $3,000 per day in November with a third rig expected to receive a $3,000 per day rate increase in early first quarter. The slides are available for free at https://is.gd/l4WWMq About Pioneer Based in San Antonio, Texas, Pioneer Energy Services -- http://www.pioneeres.com/-- provides well servicing, wireline, and coiled tubing services to producers in the U.S. Gulf Coast, offshore Gulf of Mexico, Mid-Continent and Rocky Mountain regions through its three production services business segments. Pioneer also provides contract land drilling services to oil and gas operators in Texas, the Mid-Continent and Appalachian regions and internationally in Colombia through its two drilling services business segments. Pioneer Energy reported a net loss of $75.11 million in 2017, a net loss of $128.4 million in 2016, a net loss of $155.1 million in 2015, and a net loss of $38.01 million in 2014. As of Sept. 30, 2018, Pioneer Energy had $752.9 million in total assets, $574.4 million in total liabilities and $178.5 million in total shareholders' equity. * * * Moody's Investors Service had upgraded Pioneer Energy Services' Corporate Family Rating to 'Caa2' from 'Caa3'. Moody's said that Pioneer's 'Caa2' CFR reflects the company's elevated debt balance pro forma for the $175 million senior secured term loan issuance. Moody's said that while the company's operating cash flow is expected to improve due to good demand for its drilling rigs and equipment services, Pioneer Energy Services' leverage metrics are weak, as reported by the Troubled Company Reporter on Nov. 13, 2017. PIONEER ENERGY: Joe Freeman Quits as SVP Well Servicing Segment --------------------------------------------------------------- Joe P. Freeman intends to retire from his role as senior vice president of Well Servicing Segment at Pioneer Energy Services Corp., effective Jan. 1, 2019. On Dec. 5, 2018, the Company entered into a Confidential Retirement Agreement and Release of Claims with Mr. Freeman. He will continue as an employee of the Company through his retirement date of May 31, 2019, providing business operations consulting services. Pursuant to the Retirement Agreement, Mr. Freeman agreed to a customary release and restrictive covenants. The Retirement Agreement entitles Mr. Freeman to, among other things: (1) monthly payments of $13,750, paid in accordance with the Company's payroll practices; (2) a lump sum payment of $16,023.65 for accrued, unused vacation time, payable following his retirement date of May 31, 2019, and a payout of his award under the Company's Annual Incentive Program, payable in February 2019; (3) the vesting of unvested restricted cash units and phantom share units will vest in accordance with their terms and conditions on the dates applicable to them; and (4) continued eligibility to participate in the Company's employee benefits plans, programs and arrangements through May 31, 2019. About Pioneer Based in San Antonio, Texas, Pioneer Energy Services -- http://www.pioneeres.com/-- provides well servicing, wireline, and coiled tubing services to producers in the U.S. Gulf Coast, offshore Gulf of Mexico, Mid-Continent and Rocky Mountain regions through its three production services business segments. Pioneer also provides contract land drilling services to oil and gas operators in Texas, the Mid-Continent and Appalachian regions and internationally in Colombia through its two drilling services business segments. Pioneer Energy reported a net loss of $75.11 million in 2017, a net loss of $128.4 million in 2016, a net loss of $155.1 million in 2015, and a net loss of $38.01 million in 2014. As of Sept. 30, 2018, Pioneer Energy had $752.9 million in total assets, $574.4 million in total liabilities and $178.5 million in total shareholders' equity. * * * Moody's Investors Service had upgraded Pioneer Energy Services' Corporate Family Rating to 'Caa2' from 'Caa3'. Moody's said that Pioneer's 'Caa2' CFR reflects the company's elevated debt balance pro forma for the $175 million senior secured term loan issuance. Moody's said that while the company's operating cash flow is expected to improve due to good demand for its drilling rigs and equipment services, Pioneer Energy Services' leverage metrics are weak, as reported by the Troubled Company Reporter on Nov. 13, 2017. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Medina Meets With Head of US Financial Agency ----------------------------------------------------------------- Dominican Today reports that President Danilo Medina met in the National Palace with Ray W. Washburne, president of the Overseas Private Investment Corporation (OPIC), a US governmental agency that helps American companies invest in emerging markets. Created in 1971, the OPIC provides financial products, political risk insurance and investment funds and has made investments in the energy sector in several countries this year, according to Dominican Today. It also provides means to manage risks associated with foreign direct investment, promotes development in emerging countries promotes US foreign policy and national security priorities, the report notes. US ambassador Robin S. Bernstein and American embassy diplomats also accompanied Washburne, the report relays. The US officials in the meeting: -- Katherine Beamer, counselor for Political and Economic Affairs of the Embassy of the United States. -- Maria Elena Portorreal, commercial specialist of the United States Embassy. -- Liana Coste Gaton, analyst of Economic Policy of the Embassy of the United States. -- John Deaver Alexander III, OPIC senior adviser. -- Kary Hintz-Tate, Acting Director of the Office of Economic Policy Coordination of Summits of the State Dept. -- Forrest E. Hoglund, CEO of Seaone Maritime Corp. -- Katherine Beamer, counselor for Political and Economic Affairs of the Embassy of the United States. -- Maria Elena Portorreal, commercial specialist of the United States Embassy. -- Liana Coste Gaton, analyst of Economic Policy of the Embassy of the United States. -- John Deaver Alexander III, OPIC senior adviser. -- Kary Hintz-Tate, Acting Director of the Office of Economic Policy Coordination of Summits of the State Dept. -- Forrest E. Hoglund, CEO of Seaone Maritime Corp. Among the officials who accompanied Medina figured administrative minister, Jose Ramon Peralta and Presidency chief of staff, Gustavo Montalvo, the report relays. As reported in the Troubled Company Reporter-Latin America on Sept. 24, 2018, Fitch Ratings affirmed Dominican Republic's Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. ============= J A M A I C A ============= JAMAICA: Growth Seen in Local Construction Industry in July-Sept ---------------------------------------------------------------- RJR News reports that the Jamaican local construction sector grew during the July to September quarter. According to the Bank of Jamaica's quarterly monetary policy report, this performance was largely driven by the continued expansion and upgrade of road infrastructure, RJR News relays. The estimated growth in the sector was partly offset by a decline in residential construction, according to RJR News. This was due to a reduction in housing starts by the National Housing Trust, the report says. As reported in the Troubled Company Reporter-Latin America on Sept. 27, 2017, Moody's Investors Service has upgraded the Government of Honduras' foreign currency and local currency issuer and senior unsecured ratings to B1 from B2. The rating outlook was moved to stable from positive. ====================== P U E R T O R I C O ====================== BETTEROADS ASPHALT: Bid to Junk Petitions Partly Denied ------------------------------------------------------- Bankruptcy Judge Enrique S. Lamoutte denied in part Betteroads Asphalt, LLC and Betterecycling Corporation's motions to dismiss the involuntary bankruptcy petitions filed by the petitioning creditors pending an adjudication of whether the petitioning creditors filed the involuntary petitions in bad faith. Betteroads and Betterecyling alleged that the petitions should be dismissed due to the following: (i) most of the Petitioning Creditors' claims are not eligible because their claims are subject to a bona fide dispute and are not in conformity with 11 U.S.C. section 303(b)(1); (ii) the Petitioning Creditors filed these petitions as a bad faith litigation tactic and thus the same warrant dismissal; (iii) the court should dismiss these cases based on the doctrine of abstention pursuant to 11 U.S.C. section 305(a)(1); and (iv) the alleged Debtors should be awarded the fees, costs and damages pursuant to 11 U.S.C. section 303(i). Firstbank Puerto Rico, Banco Santander de Puerto Rico, the Economic Development Bank for Puerto Rico, and Banco Popular de Puerto Rico (Lenders) filed an opposition to the motion in both cases. The Debtors argue that if the case is dismissed, the Syndicate Lenders will not suffer because they would retain their lien unaffected in the state court proceedings. They also argue that the only ones that would benefit from the involuntary bankruptcies would be the secured lenders and the other petitioning creditors and that no benefit would be derived by the Debtors or other parties in interest. The Debtors further allege that if they are allowed to pursue their counterclaims and prevail in the state court litigation, they would be in a position even to satisfy other creditors in 100%. The court finds that the Debtors' arguments are based upon unsupported and contradictory allegations that fail to establish how dismissal will benefit both the Debtors and its creditors. The secured lenders' liens will not suffer and will remain secured whether the Debtors are in bankruptcy or not. The only ones that would benefit from the state court litigation are the plaintiffs (syndicate lenders) that have commenced state court proceedings and have secured claims. Moreover, the court notes that the state court litigation in which the Syndicate Lenders were the plaintiffs was barely commencing, meaning a complaint, an answer to the complaint, a counter- claim were filed and the court's resolution by which it denied a motion for preventive garnishment filed by Banco Popular. To the court's knowledge no discovery had begun. The court notes that the other creditors that could benefit are the ones that already have Judgments and would need to race to the Property Registry in order for the Judgments to be secured by collateral. However, if the Debtors are in bankruptcy, piecemeal litigation would be halted and other unsecured creditors could potentially receive dividends from the bankruptcy estate. The Debtors' argument that if they are allowed to pursue their counterclaims and prevail in state court litigation, they would be in a position to satisfy other creditors in 100% of their claims is unfounded and speculative. The court finds that the Debtors have failed to show how dismissal would serve its interest and those of its creditors. Therefore, this court concludes that the Debtors request for dismissal pursuant to section 305(a)(1) is unfounded and thus, should not be used as an alternative remedy for a motion to dismiss. Moreover, this court has held that bad faith in the filing of an involuntary petition is a "cause" for dismissal of the same. Thus, this court finds that the Debtors have failed to satisfy their burden of proof on this particular issue. An evidentiary hearing will be scheduled to consider whether or not the involuntary petitions were filed in bad faith, that is, for an improper purpose that constitutes an abuse of the bankruptcy process. A copy of the Court's Opinion and Order dated Nov. 30, 2018 is available at: http://bankrupt.com/misc/prb17-04157-11-206.pdf BetterRoads Asphalt LLC produces warm mix asphalt. Its products are used in airports, highways, neighborhoods, and environment projects. Betterecycling produces gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants. The Debtors are affiliates of Coco Beach Golf & Country Club, S.E., which sought bankruptcy protection on July 13, 2015 (Bankr. D.P.R. Case No. 15-05312). Both companies are based in San Juan, Puerto Rico. The Petitioning Creditors filed an involuntary bankruptcy petition (Bankr. D.P.R. Case Nos. 17-04156 to 57) on June 9, 2017. PUERTO RICO: Sends Bonuses to Workers, Ignoring Fiscal Warning -------------------------------------------------------------- Karen Pierog at Reuters reports that Puerto Rico dispersed millions of dollars in holiday bonuses to government workers on despite a warning from its federally appointed oversight board that doing so could harm the bankrupt U.S. commonwealth's ability to make payroll later in the current fiscal year. Governor Ricardo Rossello's office disclosed that Christmas bonuses totaling $85.3 million were being sent immediately to employees and that the payments were covered by increased revenue, according to Reuters. Puerto Rico has been in federal court since 2017 trying to restructure around $120 billion of debt and pension obligations, the report notes. The report says that Natalie Jaresko, executive director of the Financial Oversight and Management Board, said Puerto Rico's certified fiscal plan includes the elimination of the bonuses "as part of cost reductions in payroll and related costs" aimed at avoiding "more drastic measures." Each government agency will have to offset bonus payments because the certified spending plan for the fiscal year that ends June 30 prohibits Puerto Rico from exceeding budgeted payroll costs, Jaresko said in a statement posted on Twitter, the report relays. Failure to do so would imperil "the commonwealth's ability to make payroll for its employees," she added. In the governor's announcement, Teresita Fuentes, secretary of the island's department of treasury, said Puerto Rico's fiscal plan and budget will not be affected because increased revenue from government agency fiscal adjustments and efficiencies will cover the bonuses, the report notes. The announcement also included statements from public worker union officials praising the decision to pay bonuses, the report adds. Puerto Rico completed its first court-approved debt restructuring since filing a form of bankruptcy, the report notes. The Government Development Bank deal addresses about $4 billion of debt, the report adds. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States that's facing a massive bond debt of $70 billion, a 68% debt-to-GDP ratio and negative economic growth in nine of the last 10 years. The Commonwealth of Puerto Rico has sought bankruptcy protection, aiming to restructure its massive $74 billion debt-load and $49 billion in pension obligations. The debt restructuring petition was filed by Puerto Rico's financial oversight board in U.S. District Court in Puerto Rico (Case No. 17-01578) on May 3, 2017, and was made under Title III of 2016's U.S. Congressional rescue law known as the Puerto Rico Oversight, Management, and Economic Stability Act ('PROMESA'). The Financial Oversight and Management Board later commenced Title III cases for the Puerto Rico Sales Tax Financing Corporation (COFINA) on May 5, 2017, and the Employees Retirement System (ERS) and the Puerto Rico Highways and Transportation Authority (HTA) on May 21, 2017. On July 2, 2017, a Title III case was commenced for the Puerto Rico Electric Power Authority ("PREPA"). U.S. Chief Justice John Roberts has appointed U.S. District Judge Laura Taylor Swain to oversee the Title III cases. The Honorable Judith Dein, a United States Magistrate Judge for the District of Massachusetts, has been designated to preside over matters that may be referred to her by Judge Swain, including discovery disputes, and management of other pretrial proceedings. Joint administration of the Title III cases, under Lead Case No. 17-3283, was granted on June 29, 2017. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets, as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at O'Neill & Borges are on-board as attorneys. McKinsey & Co. is the Board's strategic consultant, Ernst & Young is the Board's financial advisor, and Citigroup Global Markets Inc. is the Board's municipal investment banker. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains a case web site at https://cases.primeclerk.com/puertorico Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA, and PREPA. O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), the agency responsible for negotiations with bondholders. The Oversight Board named Professor Nancy B. Rapoport as fee examiner and to chair a committee to review professionals' fees. Bondholders' Attorneys Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund Group, comprised of mutual funds managed by Oppenheimer Funds, Inc., and the First Puerto Rico Family of Funds, which collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by Puerto Rico and other instrumentalities. White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS Family of Funds and the Puerto Rico Family of Funds, which hold $613.3 million in COFINA bonds. Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell, Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam & Lausell are co-counsel to the ad hoc group of General Obligation Bondholders, comprised of Aurelius Capital Management, LP, Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative Capital LP. Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are co-counsel to the ad hoc coalition of holders of senior bonds issued by COFINA, comprised of at least 30 institutional holders, including Canyon Capital Advisors LLC and Varde Investment Partners, L.P. Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson Kempner Capital Management LP, OZ Management, LP, and OZ Management II LP (the QTCB Noteholder Group). Committees The U.S. Trustee formed an official committee of retirees and an official committee of unsecured creditors of the Commonwealth. The Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its attorneys. The Creditors Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as counsel. ================= V E N E Z U E L A ================= VENEZUELA: Holds Local Elections -------------------------------- EFE News reports that Venezuela is holding local elections, with 2,459 municipal council seats up for grabs on a day marked by the non-participation of the main opposition parties. An EFE reporter visited several polling places in Caracas and verified that just one of them was operational at 7 a.m., an hour after the polls had been scheduled to open by the National Election Council. 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'. ================= X X X X X X X X X ================= SCOTIABANK: Caricom Body to Monitor Republic's Purchase of Banks ---------------------------------------------------------------- Trinidad Express reports that Suriname-based Caricom Competition Commission (CCC) said any impact of the proposed acquisition of Scotiabank's operations in nine Caribbean countries by the Trinidad-based Republic Financial Holdings Ltd (RFHL) will be assessed in accordance with the Revised Treaty of Chaguaramas (RTC) that governs the regional integration movement. Antigua and Barbuda and Guyana have expressed reservations about the proposed acquisition, with St John's indicating that it would not be issuing a vesting order to facilitate the move, according to Trinidad Express. *********** 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 * * *