/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190130.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, January 30, 2019, Vol. 20, No. 21 Headlines B E R M U D A LIFEMILES LTD: S&P Affirms 'BB-' ICR on New $75MM Credit Add-On B R A Z I L BRAZIL: Pres. To Undergo 3rd Operation Since Assassination Attempt SAMARCO MINERACAO: Dam Disaster May Delay Settlement for BHP, Vale D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Leader Slams Business-Politics Collusion M E X I C O US FARATHANE: Moody's Affirms B2 CFR, Alters Outlook to Negative P U E R T O R I C O SEARS HOLDINGS: Unsecured Creditors Oppose Sale to Lampert T R I N I D A D & T O B A G O PETROLEUM CO: Firm's Dimming Light Reflected in San Fernando Town V E N E Z U E L A VENEZUELA: Mexico Willing to Mediate in Conflict VENEZUELA: Maduro Says He Wants Dialogue With Opposition VENEZUELA: Guaido Calls for Protests - - - - - ============= B E R M U D A ============= LIFEMILES LTD: S&P Affirms 'BB-' ICR on New $75MM Credit Add-On ---------------------------------------------------------------- Bermuda-based loyalty program company LifeMiles LTD has maintained strong EBITDA generation and solid credit metrics, given its favorable top-line growth and profitability that are in line with expectations. LifeMiles plans to issue a second incremental term loan of $75 million as an add-on to its $395 million first lien senior secured term facility to pay an extraordinary dividend for the same amount. On Jan. 25, 2019, S&P Global Ratings affirmed its 'BB-' global scale issuer credit and issue-level ratings on LifeMiles. S&P said, "The rating affirmation incorporates our view that LifeMiles will maintain a solid operating and financial performance in the next 12 months, thanks to its renamed coalition loyalty program in Colombia and Central America. We believe LifeMiles' top-line growth will remain at 10%-12%, due to a stable blended price per mile and growth in miles accrued from air and non-air coalitions, reflected in recent launches of several miles packages and co-branded products. The company's strategy aims to take advantage of a rising middle class in Colombia, Peru, and Central America who are increasingly using credit and debit card services. In our view, this strategy will allow LifeMiles to keep its EBITDA margin just above 50% in the next 12 months." LifeMiles expects to issue a second incremental term loan of $75 million as an add-on to its $395 million first lien senior secured term facility to pay an extraordinary dividend for the same amount to its shareholders. The incremental debt remains unconditionally guaranteed on a senior secured basis by the company and each of its direct and indirect subsidiaries, providing upstream guarantees to the term loan. The facility remains as LifeMiles' only debt. The security package consists of a first priority interest in all tangible and intangible assets (including capital stock of subsidiaries) of the respective borrower and guarantors, which also mitigates the subordination. S&P said, "We expect LifeMiles to continue posting strong cash flows from operations with relatively low working capital and capital expenditures (capex) needs in the next 12 months. Therefore, we estimate that excess cash amortizations will lead to debt levels above $400 million towards the end of 2019. Despite the latter, in addition to the 10% mandatory amortization per year, we expect LifeMiles' debt to EBITDA to be above 2.0x and DCF to debt to be negative or close to 0% in the next 12 months. These ratios incorporate the use of the new revolving facility of up to $20 million and the new incremental facility (accordion) of a minimum of $50 million as part of the company's financial strategy to maximize its shareholders' returns through dividend payments. Given this somewhat more aggressive financial policy, we've revised our financial risk profile assessment to significant from intermediate and LifeMiles' stand-alone credit profile (SACP) to 'bb-' from 'bb', given the expected higher leverage levels than our previous forecast." However, the issuer credit rating remains at 'BB-' given the two-notch rating differential above that of parent company, Avianca Holdings S.A. (B/Stable/--). =========== B R A Z I L =========== BRAZIL: Pres. To Undergo 3rd Operation Since Assassination Attempt ------------------------------------------------------------------ EFE News reports that Brazilian President Jair Bolsonaro entered a Sao Paulo hospital for pre-surgical procedures to prepare him for an operation this week to remove the colostomy bag that he has been using since an attempted assassination last September. The 63-year-old Bolsonaro, who visited the area affected by a mining accident in Minas Gerais state, arrived at Sao Paulo's Albert Einstein Israelite Hospital with his wife, Michelle, and a delegation headed by Security Cabinet Chief Minister Augusto Heleno Ribeiro and several advisers, 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. SAMARCO MINERACAO: Dam Disaster May Delay Settlement for BHP, Vale ------------------------------------------------------------------ Melanie Burton at Reuters reports that Brazil's deadly tailings dam collapse is likely to complicate a settlement for a similar disaster less than four years ago at the Mineracao S.A. iron ore mine, owned jointly by Vale SA and BHP Group, investors said. Vale and BHP have been aiming to restart the mine as early as 2020 following a dam failure in 2015 that killed 19 people and buried a village, according to Reuters. A second deadly dam burst at a Vale mine killed 65 people and there are fears the death toll could soar into the hundreds, the report relays. The Brazilian prosecutor running talks to settle a lawsuit over the Samarco collapse told Reuters the second dam burst could scramble those sensitive negotiations. Federal prosecutor Jose Adercio Sampaio said that depending on Vale's culpability in the new disaster, it may change how his task force handles a BRL155 billion ($41 billion) case against Samarco, the report notes. The case is currently suspended amid negotiations for a potential settlement, the report says. A restart at Samarco Mineracao SA depends on talks with prosecutors on building a new tailing dam system and a restructuring of the company's debt, executives at BHP and Vale have said, the report discloses. BHP said that Samarco's operations will only restart if it is safe, economically viable and has the support of the community and regulators, the report relays. It said Samarco has not yet reached an agreement with its lenders on the restructuring of its unsecured financial obligations, the report notes. The report relays that the latest dam failing could draw out any settlement for Samarco and potential mine restart, investors said. "In terms of remediation, it's clearly a very sensitive time to be trying to resolve it. So now it's just another thing to try and work through," said Andy Forster, senior investment officer with Argo Investments in Sydney, the report notes. However, the fallout for BHP was likely to be limited, the report says. "It's obviously an ongoing issue -- while they do still have minority interest in Samarco, they wear these potential liabilities when they occur," said Jason Teh, Chief Investment Officer at Vertium Asset Management in Sydney, the report says. "Samarco is quite small in terms of BHP's operations. It's a small proportion of its total business. BHP has a pretty good balance sheet for any potential liabilities," the report quoted Mr. Teh as saying. A rise in iron ore prices after the mine disaster was lifting BHP's shares as well as fellow Australian iron ore miners Rio Tinto and Fortescue, the report adds. As reported in the Troubled Company Reporter-Latin America on June 1, 2017, S&P Global Ratings said it affirmed then withdrew its 'D' (default) issuer and issue-level ratings on Samarco Mineracao S.A. and its senior unsecured debt at the issuer's request. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Leader Slams Business-Politics Collusion ------------------------------------------------------------ Dominican Today reports that National Herrera Industries Association (ANEIH), outgoing president Antonio Taveras Guzman warned of a paralysis in the national productive apparatus, as a result of the conspiracy between a business elite with political sectors entrenched in power, which he affirms has converted the country from producer to importer on a large scale. "Our country has been losing competitiveness, our companies have lost competitiveness, the industrial sector is in the ground and has lost all its capacity of contribution to the Gross Domestic Product and agro-industry is practically zero," he said, according to Dominican Today. The report notes that Mr. Taveras asked the Dominicans to confront that and other serious situations that threaten to turn the country into "an unviable society." "The country is experiencing a situation that could turn us into an unviable society if Dominicans don't commit ourselves to the changes demanded by today's economy, which has to do with having productive companies and being competitive," the report quoted Mr. Taveras as saying. Collusion The business leader said the collusion between business leaders and politicians "is generating the accelerated depredation of the Dominican State, since many of the transactions end up embezzling the State," he said, the report notes. The report relays that Mr. Taveras added that the "large monopolies and large concentrations of two of the three large economic groups that do not allow medium and small businesses to climb to higher levels." 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. =========== M E X I C O =========== US FARATHANE: Moody's Affirms B2 CFR, Alters Outlook to Negative ---------------------------------------------------------------- Moody's Investors Service changed U.S. Farathane, LLC's rating outlook to negative from stable and affirmed all ratings, including the B2 Corporate Family Rating, B2-PD Probability of Default Rating, and B2 senior secured first lien term loan rating. The change to a negative outlook reflects the deterioration in US Farathane's earnings performance, evidenced by a declining margin (9/30/2018 LTM EBITA margin of 13.8% as compared to 3-year historical average of 17%) driven primarily by raw materials cost pressure, labor rate increases and inefficiencies arising from new program launches. Weak free cash flow is necessitating revolver utilization to meet required term loan amortization. A softer economic environment will create challenges to turn around the operating trends. Moody's affirmed the ratings because the company's credit metrics are still within expectations for the B2 rating category given the company's operating profile. The company also continues to win business. Moody's took the following rating actions for U.S. Farathane, LLC: Corporate Family Rating, affirmed B2 Probability of Default Rating, affirmed B2-PD $630 million ($545.2 million outstanding) senior secured first lien term loan due 2021, affirmed B2 (LGD4) Outlook, changed to Negative RATINGS RATIONALE USF's B2 CFR broadly reflects its capabilities in producing interior and exterior plastic components for light vehicles at good margins relative to peers, tempered by the company's modest scale, significant customer concentration and exposure to cyclical auto sales. USF generates approximately 90% of its revenue from General Motors, Ford and Chrysler. This degree of customer concentration is a credit risk as production cutbacks, platform losses, or pricing pressure would have a disproportionate impact on USF's revenues and earnings. In addition, Moody's projects that USF will generate roughly $25-$30 million of free cash flow over the next year that is not sufficient to fully fund the $31 million of required term loan amortization. This creates continued reliance on the $110 million asset-based revolving credit facility ($72 million outstanding as of 9/30/2018) at a time when the automotive industry is beginning to see softening consumer demand. Nonetheless, Moody's anticipates that USF's debt-to-EBITDA leverage (4.2x LTM 9/30/2018 incorporating Moody's standard adjustments) will continue to remain in a low 4.0x range as the company experiences pressure on its earnings. Liquidity is adequate but the revolver reliance and ongoing step downs in the term loan leverage covenant will increase liquidity risk if operating and free cash flow performance does not improve. A higher rating is unlikely given the company's modest scale and high customer concentration. However, Moody's would consider an upgrade if USF continues to profitably increase its scale, improves customer and platform diversity, while maintaining positive free cash flow, and reduces debt-to-EBITDA leverage. A downgrade could occur if USF's free cash flow remains weak, liquidity deteriorates, or debt-to- EBITDA leverage increases above 5 times due to operating weakness, debt-financed acquisitions or payments to equity owners. Customer or platform losses, production cuts, or pricing pressure would also put downward pressure on the rating. The principal methodology used in these ratings was Global Automotive Supplier Industry published in June 2016. U.S. Farathane, LLC, headquartered in Auburn Hills, Michigan, is a manufacturer and supplier of functional black plastic, and interior and exterior plastic components to North American automotive Original Equipment Manufacturers (OEMs). The company operates 18 manufacturing facilities in the United States, Mexico and China. USF's customers include Chrysler, Ford, General Motors and, to a much lesser degree, several other large global OEMs and Tier 1 suppliers. Revenue for the twelve months ended September 2018 was approximately $832 million. ====================== P U E R T O R I C O ====================== SEARS HOLDINGS: Unsecured Creditors Oppose Sale to Lampert ---------------------------------------------------------- Unsecured creditors of Sears Holdings Corp. are asking the bankruptcy court to deny the company's proposal to sell the business to majority shareholder and CEO Eddie Lampert for approximately $5.2 billion. Lampert's ESL Investments, Inc., has won an auction to acquire substantially all of Sears' assets, including the "Go Forward Stores" on a going-concern basis. The proposal will allow 425 stores to remain open and provide ongoing employment to 45,000 employees. But the official committee of unsecured creditors indicated in its objection and proposed complaint that Sears should instead liquidate. The committee claims that the sale to ESL is "inferior to the higher and better alternative of an orderly asset monetization and going-out-of-business process for the benefit of all of the Debtors' creditors." The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on Feb. 4, 2019, at 10:00 a.m. (ET) to consider approval of the sale to ESL. "The Creditors' Committee has uncovered facts demonstrating that Sears's downfall was precipitated, in large part, by years of self-dealing, breaches of fiduciary duties, and abuses of control and influence by Edward S. Lampert ("Lampert") and his investment fund ESL.4 As Sears's CEO, Chairman of the Board, controlling shareholder (with ESL), and "bank," Lampert was hopelessly conflicted as he presided over Sears's descent into insolvency and a persistent state of liquidity crisis and then, time after time, used those crises to divert more of Sears's assets for his and ESL's benefit. Their efforts paid off, as Lampert and ESL raked in enormous dividends, interest, and fees; obtained control of Sears's best assets and real estate; and positioned ESL to be protected in this bankruptcy with claims and liens across the Debtors' capital structure -- all while intending to leave little or nothing for other creditors. Meanwhile, over the course of Lampert's and ESL's reign, Sears closed over 3,500 stores, cut approximately 250,000 jobs, and lost untold billions in value. Lampert and ESL should not now be allowed to assert superior claims to the value of Sears's remaining assets over the very creditors they damaged through their prepetition conduct," Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, counsel to the Committee tells the Court. ESL asserts that the Debtors' estates owe it nearly $2 billion. The ESL Claims, however, are legally unsupportable, according to the Creditors' Committee. Based on the Creditors' Committee's investigation to date, it has filed a standing motion and proposed complaint setting forth the following causes of action, mandating: * Disallowance of the ESL Claims: ESL is an entity from which property is recoverable with respect to the Seritage Transaction, the Lands' End spin-off, and the 2016-2018 ESL Contributions (collectively, the "Prepetition Transactions"). The Prepetition Transactions were actual or constructive fraudulent transfers -- or both -- and are therefore avoidable pursuant to sections 544 and 548 of the Bankruptcy Code and applicable state law. As a result, under Bankruptcy Code section 502(d), the ESL Claims must be disallowed or conditionally disallowed unless and until (i) ESL returns the value of the property fraudulently transferred in connection with the Prepetition Transactions; or (ii) the Court has determined in a final order that that the Prepetition Transactions did not constitute transfers subject to avoidance pursuant to Bankruptcy Code Sections 544 and 548 and applicable state law and that property is not recoverable from ESL. * Recharacterization of the ESL Claims: The ESL Claims improperly assert indebtedness on behalf of the 2016-2018 ESL Contributions. ESL contributed capital to Sears knowing it would be dissipated by unrelenting losses, and without any reasonable expectation (much less some formal projection) that such "debt" could ever be repaid according to its terms. ESL's purpose in providing this capital to Sears was to maximize the value of its investments in Sears and the spin-off entities (including Seritage) and position itself advantageously vis-a-vis Sears's creditors in anticipation of these Chapter 11 Cases. These contributions bear the hallmarks of equity, not debt, and should be recharacterized and treated as such for any purpose in connection with these Chapter 11 Cases. * Equitable Subordination of the ESL Claims: ESL abused its insider status and position of trust with the Company to strip away assets for Lampert's and ESL's benefit, to the substantial detriment of Sears and its stakeholders. Lampert and ESL engaged in years of grossly inequitable conduct such as self-dealing, breaches of fiduciary duties, and abuses of control and influence in order to maximize and protect their investments in Sears while all but guaranteeing the destruction of the Company and opportunities for its creditors to receive fair recoveries. In light of Lampert's and ESL's actions, the ESL Claims should be equitably subordinated, with any liens securing such claims transferred to the Debtors' estates. Tragically, according to the Committee, the Debtors have capitulated fully to ESL's slow-motion destruction of Sears, allowing ESL to credit bid (the "ESL Credit Bid") secured claims in the nominal amount of $1.3 billion in exchange for nearly all of Sears's remaining assets. The Creditors' Committee also contends that ESL's consideration, a substantial amount of which is in the form of the non-cash ESL Credit Bid, is woefully inadequate. Among other reasons, the Debtors' estates will be left administratively insolvent and the purchaser without a viable business plan and will have given away the estates' most valuable claims against ESL and others. The Creditors Committee's counsel: Ira S. Dizengoff, Esq. Philip C. Dublin, Esq. Abid Qureshi, Esq. Joseph L. Sorkin, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York, NY 10036 Telephone: (212) 872-1000 Facsimile: (212) 872-1002 E-mail: idizengoff@akingump.com pdublin@akingump.com aqureshi@akingump.com jsorkin@akingump.com - and - Lacy M. Lawrence, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP 2300 N. Field Street, Suite 1800 Dallas, TX 75201 Telephone: (214) 969-2800 Facsimile: (214) 969-4343 E-mail: llawrence@akingump.com A full-text copy of the Committee's Preliminary Objection is available for free at: http://bankrupt.com/misc/Sears_UCC_Obj_Sale.pdf 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 and M-III Partners is serving as restructuring advisor. Aebersold, Managing Director, and Levi Quaintance, Vice President of Lazard Freres & Co. LLC serve as investment banker to Holdings. DLA Piper LLP is the real estate advisor. Prime Clerk is the claims and noticing agent. The U.S. Trustee for Region 2 appointed nine creditors, including the Pension Benefit Guaranty Corp., and landlord Simon Property Group, L.P., to serve on an official committee of unsecured creditors. Akin Gump Strauss Hauer & Feld LLP is counsel to the creditors' committee. FTI Consulting is financial advisor to the creditors' committee. Houlihan Lokey Capital, Inc., is providing investment banking services to the committee. ================================ T R I N I D A D & T O B A G O ================================ PETROLEUM CO: Firm's Dimming Light Reflected in San Fernando Town ----------------------------------------------------------------- Ria Taitt at Trinidad Express reports that San Fernando seems to be becoming more and more a shanty town. So bemoaned Minister in the Ministry of Finance, Allyson West as she contributed to the debate on a motion on Petroleum Co. of Trinidad & Tobago (Petrotrin) filed by UNC Senator Gerald Ramdeen in the Senate, according to Trinidad Express. She said San Fernando's dimming light was a reflection of what was happening with Petrotrin, which was the leading industry in the area, the report notes. "I am a proud southerner and when I lived in San Fernando it was booming, it was booming, bright, growing and developing. In the last couple of years when I have driven down San Fernando, I have been distressed by the fact that San Fernando seems to me to be turning into more and more a shanty town because there is no growth, you are not seeing the prosperity that the old Texaco and Petrotrin brought at that time," the report quoted Mr. West as saying. As reported in the Troubled Company Reporter-Latin America on Sept. 28, 2018, Moody's Investors Service placed Petroleum Co. of Trinidad & Tobago's B1 corporate family rating and senior unsecured debt ratings on review for downgrade. This rating action was based on the lack of clarity regarding Petrotrin's new business profile and strategy as well as increasing liquidity risk related to the approaching maturity of the 2019 bonds. ================= V E N E Z U E L A ================= VENEZUELA: Mexico Willing to Mediate in Conflict ------------------------------------------------ EFE News reports that Mexican President Andres Manuel Lopez Obrador reiterated that his country is ready to act as mediator between the Venezuelan government and opposition. Asked about the Venezuelan crisis a day after Mexico and Uruguay extended a joint offer of mediation, Lopez Obrador told reporters at his daily press conference that his foreign policy is anchored in the Mexican constitution's principles of non-intervention and respect for the sovereignty of peoples, according to EFE News. "It's not that we are for or against anyone, we are for defending the constitutional principles of foreign policy," Lopez Obrador said, the report notes. Regarding the possibility of mediation, the leftist leader said that his government is more than willing to exercise that role, but only if both sides in Venezuela agree, the report relays. "We could do it, but we could not carry it out if there isn't a request from both parties. We will not meddle. We will respect our principles and if the parties request it, we are disposed to help them have this dialogue," the report quoted Lopez Obrador as saying. He added that he had already instructed Foreign Secretary Marcelo Ebrard "to support to the extent of our possibilities, without interference in the conflict" and without taking any sides, the report relays. "This has to do with a historical tradition of our country in foreign policy. We should not get involved in the affairs of other peoples or nations, because we do not want any hegemony or foreign government to intervene in matters that only concern Mexicans," Lopez Obrador said, the report notes. The report relates that Venezuela's political crisis moved into a more acute phase when the speaker of the opposition-controlled National Assembly, Juan Guaido, proclaimed himself interim head of state. The opposition, supported by the United States and Washington's allies in Latin America, say that last May's presidential election was illegitimate and they refuse to recognize leftist incumbent Nicolas Maduro as president, the report says. President Maduro accepted the offer of mediation from Mexico and Uruguay during a speech at Venezuela's Supreme Court, the report relays. "Together, the governments of Uruguay and Mexico are calling upon all parties involved, both within the country and abroad, to reduce tensions and prevent an escalation of violence that could aggravate the situation," Montevideo and Mexico City said in a statement released by the Uruguayan Foreign Ministry, the report notes. Clashes in recent days between opposition protesters and Venezuelan security forces have led to at least 20 deaths and 350 arrests, according to figures from human rights organizations, the report adds. As reported in the Troubled Company Reporter-Latin America, 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' VENEZUELA: Maduro Says He Wants Dialogue With Opposition -------------------------------------------------------- EFE News reports that President Nicolas Maduro said that channels of communication have always been open and that he is committed to dialogue despite the recent antagonism of the Venezuelan opposition and the interference from abroad. "I'm ready for dialogue because I believe in peace, in the word, I'm a man of words," President Maduro told a press conference at the presidential palace, while saying he hopes that "sooner rather than later the opposition gets out of the trap it put itself in and enters into a reasonable dialogue," according to EFE News. He said that National Assembly speaker Juan Guaido, who proclaimed himself interim head of state, met with the leader of the pro- government National Constituent Assembly, Diosdado Cabello, and they "talked about a new dialogue for the country" and asked to "keep that possibility open," the report notes. The report relays that Mr. Cabello, according to President Maduro, told Mr. Guaido that the government "is ready for national talks without conditions, and with an agenda open to partial agreements that will allow us to move forward in peace to the country's recovery and to a global accord on governability and democracy." "I say dialogue because that's the only way to find solutions. The road to take is dialogue, diplomacy," the report quoted President Maduro as saying. President Maduro raised once more the possibility of holding talks after accusing Guaido of carrying out a coup d'etat, the report relays. The United States and a dozen of Washington's Latin American allies have recognized Guaido as Venezuela's interim president, while several European governments have threatened to do so unless Maduro calls new elections, the report relays. President Maduro accuses US President Donald Trump of directing "an operation to impose" on Venezuela "a puppet government that serves its interests," the report recalls. Washington imposed targeted economic sanctions against Venezuela during the administration of Barack Obama, the report relays. Trump expanded those sanctions and has also flirted with the possibility of military intervention in Venezuela, where the US supported an abortive coup in 2002 against then-President Hugo Chavez (1954-2013), Maduro's predecessor and political mentor, the report discloses. President Maduro was first elected in a special vote following Chavez's death in office and won a second term last May, but the opposition contends the process was illegitimate, the report relays. The president called for 20-year prison sentences to be imposed on demonstrators guilty of vandalism and said the opposition is behind the violence that broke out during the protests, the report notes. Non-government organizations say the protests, which have occurred particularly in poor neighborhoods and practically always at night, have left 26 people dead, several injured and almost 400 detained, but up to now the authorities have not confirmed these figures, the report adds. As reported in the Troubled Company Reporter-Latin America, 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' VENEZUELA: Guaido Calls for Protests ------------------------------------ The Latin American Herald reports that the head of parliament and interim president of Venezuela, Juan Guaido, called two protests demanding that the military side with the citizens and allow the entry of humanitarian aid. In a message spread through his social networks, Mr. Guaido called on Venezuelans to "go out on the street" in a "great national protest," to demand that the armed forces allow humanitarian aid to enter the country, according to The Latin American Herald. "We will do it peacefully," he requested of his supporters, adding that the day's aim is to continue delivering to the military the text of a law that parliament sanctioned, which offers guarantees to civilian and military officials who disobey Nicolas Maduro and facilitate a change of government, the report notes. He also called for another protest, without offering further details, but said that the protest will take place "on the streets of Venezuela and around the world," the report relays. Also, detractors of President Maduro, who has been in power since 2013, urged the military to renounce him and delivered to the army a copy of the controversial amnesty law, which President Maduro supporters see as encouraging a coup, the report relays. President Maduro, meanwhile, visited several barracks in the center of the country, where he supervised military exercises and received the support of hundreds of soldiers, the report says. The political tension in Venezuela surged when Guaido swore in as interim president in front of hundreds thousands of supporters, the report relays. PresidentMaduro won comfortably in the May elections, which much of the opposition boycotted considering the polls fraudulent, the report notes. Mr. Guaido affirms that he "usurps" the presidency, viewing Maduro's six-year term as "illegitimate," the report says. Therefore, the executive power falls to the head of parliament until new elections are called, according to several articles of the constitution, the report discloses. More than 20 countries, including the United States, have backed Mr. Guaido as interim leader, the report adds. As reported in the Troubled Company Reporter-Latin America, 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 2019. 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 * * *