/raid1/www/Hosts/bankrupt/TCRLA_Public/190109.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, January 9, 2019, Vol. 20, No. 6


                            Headlines



B R A Z I L

BRAZIL: Bolsonaro Leaves Economy to Free-Market Crusader
INVESTMENT ENERGY: S&P Discontinues Prelim. 'BB-' Long-Term ICR


C H I L E

CHILE: Expects Amount of Forest Lost to Fires to Double


M E X I C O

MEXICO: Sets Goal of Boosting Exports, Investment


P U E R T O    R I C O

ADLER GROUP: March 27 Plan Confirmation Hearing Set
HARAS SANTA: March 6 Hearing on Disclosure Statement
KONA GRILL: Fails to Comply with Nasdaq's Market Value Rule
SEARS HOLDINGS: DOJ Watchdog Seeks Appointment of Fee Examiner
SEARS HOLDINGS: Court OKs $350MM Junior DIP Financing From GACP


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Signs Pact With France's Maurel & Prom


                            - - - - -


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B R A Z I L
===========


BRAZIL: Bolsonaro Leaves Economy to Free-Market Crusader
--------------------------------------------------------
EFE News reports that Brazilian President Jair Bolsonaro again
admitted his lack of expertise in some areas, including the
economy and finance, which he said will be the responsibility of
Economy Minister Paulo Guedes, an acolyte of free-market apostle
Milton Friedman (1912-2006).

"Admitting my ignorance in many areas is a sign of humility. I'm
certain I know a lot more about politics than Guedes, but he knows
much more about the economy than I do," the president said at a
ceremony in which the new presidents of Brazil's three principal
public banks assumed their positions, according to EFE News.

As reported in the Troubled Company Reporter-Latin America,
Egan-Jones Ratings Company, on October 8, 2018, withdrew its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by the Federative Republic of Brazil.


INVESTMENT ENERGY: S&P Discontinues Prelim. 'BB-' Long-Term ICR
---------------------------------------------------------------
S&P Global Ratings discontinued its preliminary 'BB-' long-term
issuer credit and issue-level ratings on Investment Energy
Resources Limited and Subsidiaries (IERL).

S&P assigned the preliminary ratings to IERL on Oct. 9, 2018,
based on the proposed $600 million senior unsecured notes issuance
that the company would use to repay project finance debt at its
operating subsidiaries.

However, IERL has revised its strategy, and has cancelled the
notes issuance. As a result, S&P is discontinuing all ratings.



=========
C H I L E
=========


CHILE: Expects Amount of Forest Lost to Fires to Double
-------------------------------------------------------
EFE News reports that Chile's government estimates that the extent
of forest devastated by fire during the current season will double
compared with the previous period, the agriculture minister said.

"We've predicted that wildfires will burn some 70,000 hectares
this year," Antonio Walker told a press conference, adding that
the projection was based on the likelihood of persistent high
temperatures, low humidity and stiff winds, according to EFE News.

While 2,100 wildfires have consumed 9,206 hectares since the start
of the season on July 1, no lives have been lost, the report
notes.



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


MEXICO: Sets Goal of Boosting Exports, Investment
-------------------------------------------------
The Latin American Herald reports that Mexico's foreign relations
and economy secretariats agreed on a plan aimed at promoting
exports and attracting foreign direct investment.

The cooperation accord was signed by Foreign Secretary Marcelo
Ebrard and Economy Secretary Graciela Marquez on the first day of
the 30th Annual Meeting of Ambassadors and Consuls in Mexico City,
according to The Latin American Herald.

This agreement will promote the integration of companies,
especially small and medium-sized businesses, into global value
chains, the report relays.

The Cabinet officials said that President Andres Manuel Lopez
Obrador instructed them to prioritize the promotion and growth of
the Mexican export sector, the report says.

Under this agreement, an annual work plan will be created and top
foreign service officials will be appointed to conduct economic
and trade promotion work in key embassies and consulates, the
report discloses.

Likewise, training seminars will be organized for those in charge
of economic and trade promotion, the report relays.

In addition, the two departments will exchange information via
digital platforms, the report notes.

The five-day gathering brings together the 105 diplomats heading
Mexico's embassies, consulates and missions abroad, the report
adds.



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


ADLER GROUP: March 27 Plan Confirmation Hearing Set
----------------------------------------------------
Bankruptcy Judge Mildred Caban Flores approved Adler Group, Inc.'s
amended disclosure statement, dated Oct. 17, 2018, explaining its
chapter 11 plan.

Written acceptances or rejections of the Plan, and any objection
to confirmation of the Plan must be filed on/or before 14 days
prior to the date of the hearing on confirmation of the Plan.

A hearing for the consideration of confirmation of the Plan will
be held on March 27, 2019 at 9:00 AM at the Jose V. Toledo Federal
Building and US Courthouse, 300 Recinto Sur Street, Courtroom 3,
Third Floor, San Juan, Puerto Rico.

The Troubled Company Reporter previously reported that holders of
Allowed General Unsecured Claims under the plan will receive a
lump-sum distribution of $15,000, equivalent to 0.60% of their
allowed claims.  The lump-sum will be distributed on the Effective
Date in a pro-rata basis calculated over the allowed amount.

A copy of the Disclosure Statement from PacerMonitor.com is
available at https://tinyurl.com/ya73ug8h at no charge.

                    About Adler Group Inc.

Adler Group Inc. owns the Caguas Military property located at Carr
189 km 3.1 (interior) Rincon Ward, Gurabo Puerto Rico, which is
valued at $3 million.  It holds inventory and equipment worth
$513,870.  For 2015, the Company posted gross revenue of $1.61
million 2015 and gross revenue of $1.91 million for 2014.

Adler Group sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Case No. 17-02727) on April 20, 2017.  In the
petition signed by Jose Torres Gonzalez, authorized
representative, the Debtor disclosed $3.52 million in assets and
$4.43 million in liabilities.

The case is assigned to Judge Mildred Caban Flores.  The Debtor
hired MRO Attorneys at Law, LLC, as bankruptcy counsel.


HARAS SANTA: March 6 Hearing on Disclosure Statement
----------------------------------------------------
A hearing on approval of disclosure statement of Haras Santa
Isabel Inc. is scheduled for March 6, 2019, at 9:00 AM.

Objections to the form and content of the disclosure statement
should be in writing and filed  not less than 14 days prior to the
hearing.

The Debtor's plan of reorganization contemplates the sale of all
of its assets to the purchaser, including all of its real
properties, thoroughbreds, inventories, furniture, fixtures,
improvements, equipment, trademarks, trade names and supplies, and
others, for $850,000.00. The sale will be financed through a
credit facility to be granted to the purchaser by Puerto Rico Farm
Credit.

From the cash proceeds of the sale and the estimated cash in
Debtor's accounts, estimated in $55,000, the Debtor will pay on
the Effective Date, $700,000 to Abbey; 100% of allowed
administrative expense claims; 100% of allowed priority tax claims
up to $100,000; 100% of other priority claims; and will reserve a
carve out for $50,000 to pay allowed general unsecured claims, on
a pro-rata basis.

The Debtor disclosed that the holders of the allowed general
unsecured claims will be paid in full satisfaction on the
effective date, approximately 1% thereof from a $50,000 carve out
to be reserved for the unsecured creditors from the proceeds of
the sale of the Debtor's assets.

The Debtor will effect all the payments on the effective date from
the proceeds of the sale of its assets and the estimated cash
balance in the Debtor's debtor-in-possession accounts. The total
distributions under the Plan are estimated in $901,000.00.

The cash proceeds from the sale of the Debtor's assets are
estimated in $850,000.00. The Debtor estimates that the net cash
in its debtor-in-possession bank accounts, resulting from the
collections of accounts receivable, will be approximately $55,000.
Therefore, total funds to make the payments under the Plan will be
approximately $905,000, sufficient to make the same.

A full-text copy of the Disclosure Statement, dated December 13,
2018, is available at:

        http://bankrupt.com/misc/prb18-07077-13.pdf

                   About Haras Santa Isabel

Haras Santa Isabel Inc. is a privately-held company in Coamo,
Puerto Rico, in the horse breeding business.

Haras Santa Isabel previously sought bankruptcy protection (Bankr.
D.P.R. Case No. 10-06672) on July 27, 2010.

Haras Santa Isabel again sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-07077) on Dec. 4, 2018.
At the time of the filing, the Debtor disclosed $2,579,669 in
assets and $8,787,638 in liabilities.  The case is assigned to
Judge Enrique S. Lamoutte Inclan.  The Debtor tapped Charles
Alfred Cuprill, Esq., at Charles A Cuprill, PSC Law Offices, as
its legal counsel.


KONA GRILL: Fails to Comply with Nasdaq's Market Value Rule
-----------------------------------------------------------
Kona Grill, Inc., received on Dec. 28, 2018, a deficiency notice
from The Nasdaq Stock Market stating that for the last 30
consecutive business days, the Company had not met The Nasdaq
Global Market's continued listing standard requiring $15 million
minimum market value of publicly held shares, as required by
Nasdaq Listing Rule 5450(b)(2)(C).  As provided in the Nasdaq
rules, the Company has 180 calendar days, or until June 26, 2019,
to regain compliance with the continued listing standard.  In
order to regain compliance, the Company's market value of publicly
held shares must be $15 million or more for a minimum of ten
consecutive business days at any time prior to June 26, 2019.  If
the Company regains compliance, Nasdaq will provide written
confirmation to the Company and close the matter.  Based on the
number of publicly held shares on the date of this filing, in
order to satisfy the $15 million market value requirement, the
closing bid price of the Company's common stock would need to be
at least $1.89 per share for ten consecutive business days.

If the Company fails to regain compliance during this period, it
will receive written notification that its securities are subject
to delisting from the Global Market.  In such event, Nasdaq rules
permit the Company to appeal any delisting determination to a
Nasdaq Hearings Panel.  Alternatively, the Company may consider
applying to transfer the Company's securities to The Nasdaq
Capital Market, subject to certain conditions including meeting
the Capital Market's continued listing requirements.  The
notification has no immediate effect on the listing of the
Company's common stock on The Nasdaq Global Market or on the
trading of the Company's common stock.

                      About Kona Grill

Kona Grill, Inc., headquartered in Scottsdale, Arizona, Kona
Grill, Inc. -- http://www.konagrill.com/-- currently owns and
operates 44 restaurants in 22 states and Puerto Rico.  Its
restaurants feature a global menu of contemporary American
favorites, award-winning sushi and craft cocktails.  Additionally,
Kona Grill has two restaurants that operate under a franchise
agreement in Dubai, United Arab Emirates, and Vaughan, Canada.

Kona Grill incurred a net loss of $23.43 million in 2017 and a net
loss of $21.62 million in 2016.  As of Sept. 30, 2018, Kona Grill
had $78.59 million in total assets, $75.74 million in total
liabilities, and $2.84 million in total stockholders' equity.

The Company has incurred losses resulting in an accumulated
deficit of $88.5 million and outstanding borrowings under a credit
facility of $33.5 million as of Sept. 30, 2018.  As of Sept. 30,
2018, the Company has cash and cash equivalents and short-term
investment balance totaling $4.0 million and net availability
under the credit facility of $2.2 million, subject to compliance
with certain covenants.  The Company has implemented various
initiatives to increase sales and reduce costs to increase
profitability.

"Management expects to utilize existing cash and cash equivalents
and short-term investments, along with cash flow from operations,
and the available amounts under the credit facility, to provide
capital to support the business, to maintain and refurbish
existing restaurants, and for general corporate purposes.  Any
reduction of cash flow from operations or an inability to draw on
the credit facility may cause the Company to take appropriate
measures to generate cash.  The failure to raise capital when
needed could impact the financial condition and results of
operations.  Additional equity financing, to the extent available,
may result in dilution to current stockholders and additional debt
financing, if available, may involve significant cash payment
obligations or financial covenants and ratios that may restrict
the Company's ability to operate the business.  There can be no
assurance that the Company will be successful in its plans to
increase profitability or to obtain alternative capital and
financing on acceptable terms, when required or if at all," the
Company stated in its Quarterly Report for the period ended Sept.
30, 2018.


SEARS HOLDINGS: DOJ Watchdog Seeks Appointment of Fee Examiner
--------------------------------------------------------------
William K. Harrington, the United State Trustee for Region 2, asks
the U.S. Bankruptcy Court for the Southern District of New York to
appoint a fee examiner for Sears Holdings Corporation.

                     About Sears Holdings

Sears Holdings Corporation (NASDAQ: SHLD) --
http://www.searsholdings.com/-- began as a mail ordering catalog
company in 1887 and became the world's largest retailer in the
1960s.  At its peak, Sears was present in almost every big mall
across the U.S., and sold everything from toys and auto parts to
mail-order homes.  Sears claims to be is a market leader in the
appliance, tool, lawn and garden, fitness equipment, and
automotive repair and maintenance retail sectors.

Sears and Kmart merged to form Sears Holdings in 2005 when they
had 3,500 US stores between them.  Kmart emerged in 2005 from its
own bankruptcy.

Unable to keep up with online stores and other brick-and-mortar
retailers, a long series of store closings has left it with 687
retail stores in 49 states, Guam, Puerto Rico, and the U.S. Virgin
Islands as of mid-October 2018.  The Company employs 68,000
individuals, of whom 32,000 are full-time employees.

As of Aug. 4, 2018, Sears Holdings had $6.93 billion in total
assets, $11.33 billion in total liabilities and a total deficit of
$4.40 billion.

Unable to cover a $134 million debt payment due Oct. 15, 2018,
Sears Holdings Corporation and 49 subsidiaries sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 18-23538) on Oct. 15,
2018.

The Hon. Robert D. Drain is the case judge.

Weil, Gotshal & Manges LLP is serving as legal counsel, M-III
Partners is serving as restructuring advisor and Lazard Freres &
Co. LLC is serving as investment banker to Holdings.  DLA Piper
LLP is the real estate advisor.  Prime Clerk is the claims and
noticing agent.


SEARS HOLDINGS: Court OKs $350MM Junior DIP Financing From GACP
---------------------------------------------------------------
BankruptcyData.com reported that the Court hearing the Sears
Holdings case issued an order approving on a final basis the
Debtors' authority to enter into a $350 million, multiple draw,
junior debtor-in-possession ("DIP") term loan (the "Junior DIP
Financing").

The Junior DIP Financing is being provided pursuant to
superpriority junior lien secured DIP credit agreement (the
"Junior DIP Credit Agreement") entered into on November 29, 2018
amongst (i) SRAC and Kmart, as borrowers, (ii) Cantor Fitzgerald
Securities, as agent and collateral agent and (iii) the other
lenders from time to time party thereto (the "Junior DIP
Lenders"). The entry into the Junior DIP Credit Agreement was
approved on an interim basis (allowing interim access of up to
$250 million) by the Court on November 30, 2018.

As previously reported in respect of the Debtors' requesting
motion, "The Junior DIP Financing, together with the DIP ABL
Financing, provides a strong and clear message to the Debtors'
vendors, customers, and employees, as well as their potential
acquirers, that these Chapter 11 cases are appropriately funded.
The Debtors, with the assistance of their advisors, reached out to
approximately 90 parties, gauging interest and narrowing the
universe of possible incremental financing structures.
Additionally, the Debtors reached out to nine parties for interest
in the senior DIP financing; however, no parties expressed
interest or provided terms better than those under the existing
DIP ABL Financing. With respect to marshalling, the DIP ABL
Lenders have agreed to hold all proceeds of Prepetition
Unencumbered Collateral in a cash collateral account until
substantially all Prepetition ABL Collateral has been sold,
transferred, or otherwise been disposed of.  The Debtors decision
was similarly informed by the DIP ABL Lenders willingness to
consent to the Junior DIP Financing and make necessary
modifications to allow this financing to be obtained."

The key terms of the proposed Junior DIP Financing are as follows:

1. The Junior DIP Financing shall be provided by a consortium led
   by GACP Finance Co., LLC,

2. The available amount shall be $350 million with an interest
   rate of LIBOR + 11.50%,

3. The Junior DIP Financing shall be secured by (a) a junior lien
   on the Prepetition ABL Collateral, (b) a pari passu senior lien
   on certain unencumbered assets comprising Specified Collateral
   junior only to the Carve-Out, (c) a lien junior only to the
   Carve-Out and DIP ABL Liens on other previously unencumbered
   assets, and (d) a lien junior only to the Carve-Out, Other
   Prepetition Liens, other Senior Permitted Liens, and DIP ABL
   Liens on collateral with other prepetition liens. Importantly,
   just like the DIP ABL Facility, the Junior DIP Financing does
   not prime any liens without consent,

4. 100% of the net cash proceeds from dispositions of Prepetition
   Unencumbered Collateral shall (a) first fund the Winddown
   Account until it is funded with $200 million (the "Winddown
   Account Funding Condition"), (b) fund the cash collateral
   account in an amount sufficient to repay the DIP ABL Facility
   in full, and (c) upon the discharge of the DIP ABL Facility
   obligations, the amounts shall be held as collateral for the
   obligations under the Junior DIP Financing, and

5. Proceeds of Specified Collateral after the Winddown Account
   Funding Condition has been satisfied, shall be distributed pro
   rata to the DIP Collateral Account and Cash Collateral Account
   based on the $350 million commitment amount under the Junior
   DIP Financing and $300 million of DIP ABL Facility, subject
   however, to the terms and conditions of the DIP Intercreditor
   Agreement.

                    About Sears Holdings

Sears Holdings Corporation (NASDAQ: SHLD) --
http://www.searsholdings.com/-- began as a mail ordering catalog
company in 1887 and became the world's largest retailer in the
1960s.  At its peak, Sears was present in almost every big mall
across the U.S., and sold everything from toys and auto parts to
mail-order homes.  Sears claims to be is a market leader in the
appliance, tool, lawn and garden, fitness equipment, and
automotive repair and maintenance retail sectors.

Sears and Kmart merged to form Sears Holdings in 2005 when they
had 3,500 US stores between them.  Kmart emerged in 2005 from its
own bankruptcy.

Unable to keep up with online stores and other brick-and-mortar
retailers, a long series of store closings has left it with 687
retail stores in 49 states, Guam, Puerto Rico, and the U.S. Virgin
Islands as of mid-October 2018.  The Company employs 68,000
individuals, of whom 32,000 are full-time employees.

As of Aug. 4, 2018, Sears Holdings had $6.93 billion in total
assets, $11.33 billion in total liabilities and a total deficit of
$4.40 billion.

Unable to cover a $134 million debt payment due Oct. 15, 2018,
Sears Holdings Corporation and 49 subsidiaries sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 18-23538) on Oct. 15,
2018.

The Hon. Robert D. Drain is the case judge.

Weil, Gotshal & Manges LLP is serving as legal counsel, M-III
Partners is serving as restructuring advisor and Lazard Freres &
Co. LLC is serving as investment banker to Holdings.  DLA Piper
LLP is the real estate advisor.  Prime Clerk is the claims and
noticing agent.



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


PETROLEOS DE VENEZUELA: Signs Pact With France's Maurel & Prom
--------------------------------------------------------------
EFE News reports Venezuela's Petroleos de Venezuela S.A. (PDVSA)
signed an agreement with France's Maurel & Prom to increase
production of crude in the South American country, which possesses
the world's largest proven oil reserves.

"We welcome the fact that this company of French origin and
capitalization . . . is going to participation with PDVSA with
$400 million in investment to increase production in Lake
Maracaibo," Venezuelan Energy Minister Manuel Quevedo told state-
run VTV television, according to EFE News.

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).


                            ***********


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.

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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 2019.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


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