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       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

          Friday, June 21, 2019, Vol. 20, No. 124

                           Headlines



A R G E N T I N A

AMES XII: Moody's Raises Class B Debt Rating to B2(sf)


B R A Z I L

BANCO DO BRASIL: Unsecured Debt With Odebrecht at $1BB, CEO Says
CELESC DISTRIBUICAO: Moody's Hikes Issuer Ratings to Ba2/Aa3.br


C H I L E

CHILE: Economic Activity Has Decelerated, IMF Says


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Drought Withers Puerto Plata Agriculture
EL SALVADOR: To Get $200MM-IDB Loan for Government Expenditures


M E X I C O

MAXCOM TELECOMUNICACIONES: S&P Cuts ICR to 'CC', On Watch Negative
MEXICO: Senate Ratifies USMCA in Extraordinary Session


P U E R T O   R I C O

BAHIA DEL SOL: Seeks to Hire Landrau Rivera & Assoc.as Counsel
LUBY'S INC: Roy Camberg is New General Counsel


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: Unemployment Rate at 5% in 2018


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Plans to Restart Curacao Refinery

                           - - - - -


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

AMES XII: Moody's Raises Class B Debt Rating to B2(sf)
------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A. has
taken rating action on the global and national scale ratings of the
VRDB notes of Fideicomiso Financiero AMES XII. The rating action
resulted in the upgrade of the VRDB notes to B2 (sf) from Caa2 (sf)
(Global Scale Rating) and to A1.ar (sf) from B1.ar (sf) (National
Scale Rating).

The full rating action is as follows:

- Class B Floating Rate Debt Securities (VRDB) of "Fideicomiso
   Financiero AMES XII", upgraded to B2 (sf) (Global Scale Rating)
   and to A1.ar (sf) (National Scale Rating); previously on April
   17, 2018 assigned Caa2 (sf) (Global Scale Rating) and
   B1.ar (sf) (National Scale Rating).

RATINGS RATIONALE

Moody's upgraded the VRDB notes based on the strong performance of
the securitized pool and increase in credit enhancement. As of
April 2019, the pool had 180+ day delinquencies of 5.4% of the
outstanding pool balance and the VRDB notes had a credit
enhancement of 33.7%. Given the full turbo sequential structure and
the trapping of high levels of excess spread, the VRDB notes' hard
credit enhancement has increased from -31.9% as of the
transaction's closing date.

Moody's assumed a lognormal distribution for losses on the
performing pool with a mean of 6.1%, PCE of 12.1% (PCE, or the
portfolio credit enhancement, represents the credit enhancement
consistent with the highest rating achievable -i.e., the local
currency ceiling- in the country). These assumptions were derived
considering the historical performance of AMES' loan pool and prior
transactions.

The rated securities are payable from the cash flows derived from
the assets of the trust, which is an amortizing pool of eligible
personal loans denominated in Argentine pesos, with a fixed
interest rate, originated by the Asociacion Mutual de la Economia
Solidaria.

These personal loans are granted to employees of the City of Buenos
Aires (rated B2/A1.ar) using a "Codigo de Descuento". The "Codigo
de Descuento" is an identifier granted by a government-related
entity (in this case the City of Buenos Aires) that allows
deducting a personal loan's installment directly from the
borrowers' paycheck.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors that may lead to a downgrade of the ratings include a
material increase in delinquency levels beyond Moody's
expectations, or a disruption in the flow of payments from the City
of Buenos Aires.

Factors that may lead to an upgrade of the ratings include the
building of credit enhancement over time due to the turbo
sequential payment structure, when compared with the level of
projected losses in the securitized pool.




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

BANCO DO BRASIL: Unsecured Debt With Odebrecht at $1BB, CEO Says
----------------------------------------------------------------
Mateus Maia at Reuters reports that the Chief Executive Officer of
state-controlled Banco do Brasil SA, Rubem Novaes, said that the
bank has around BRL4 billion (US$1.03 billion) in unsecured debt
with construction conglomerate Odebrecht SA, which filed for
bankruptcy.

"We have set aside provisions for most of the loans," Novaes said,
adding that Banco do Brasil will suffer losses if creditors' debts
are discounted at more than 50% in the restructuring, according to
Reuters.

With debts of BRL98.5 billion, Odebrecht's bankruptcy protection
case is one of the largest in Latin American history, the report
notes.

As reported in the Troubled Company Reporter-Latin America on June
20, 2018, Fitch Ratings has affirmed the Long-Term Foreign and
Local Currency Issuer Default Ratings (IDRs) of Banco do Brasil
S.A. (BdB) at 'BB-' and its long-term National rating at 'AA(bra)'.
The Rating Outlooks on the Long-Term IDRs and National Rating are
Stable. Fitch has also affirmed BdB's Viability Rating (VR) at
'bb-', Support Rating (SR) at '3' and Support Rating Floor at
'BB-'.


CELESC DISTRIBUICAO: Moody's Hikes Issuer Ratings to Ba2/Aa3.br
---------------------------------------------------------------
Moody's America Latina Ltda. upgraded the Corporate Family Ratings
assigned to Centrais Eletricas de Santa Catarina S.A. to Ba2 from
Ba3 on the global scale and to Aa3.br from A1.br on Brazil's
national scale. At the same time, Moody's upgraded to Ba2/Aa3.br
from Ba3/A1.br, the issuer ratings assigned to Celesc Distribuicao
S.A. ("Celesc D"). The outlook for both companies was changed to
stable from positive

The ratings' upgrade was prompted by progress made by the company
to secure long-term financing at lower costs and resolution of
disputes over regulatory liabilities contributing to Moody's
expectation that consolidated credit metrics will remain well
positioned within a higher rating category.

ISSUERS AND RATINGS AFFECTED

Centrais Eletricas de Santa Catarina S.A.

-- Corporate Family Ratings: upgraded to Ba2 from Ba3 and to
Aa3.br from A1.br

-- Outlook: changed to stable from positive

Celesc Distribuicao S.A

-- Issuer Ratings: upgraded to Ba2 from Ba3 and to Aa3.br from
A1.br

-- Outlook: changed to stable from positive

RATINGS RATIONALE

Celesc's Ba2/Aa3.br corporate family ratings reflect a moderate
risk profile primarily driven by its regulated distribution
business, which accounts for over 80% of consolidated cash
generation. The ratings incorporate Moody's expectation of
continuity in the improving fundamentals of the service area, which
has been growing above the national average, and in the company's,
cost cutting initiatives to support internal cash generation
growth. This growth will be balanced by (i) high capital investment
needs to improve quality indicators according to regulatory
targets, limiting the potential for leverage reduction; (ii) an
elevated pension burden; and (iii) working capital volatility due
exposure of high energy prices in times of unfavorable hydrology
conditions. The ratings also consider the benefit from the recent
entry of EDP - Energias do Brasil S.A (EDB, Ba2/Aa2.br stable) in
the company's board of directors, as the largest minority
shareholder, to support the execution of Celesc's business plan and
corporate governance practices.

Celesc D issuer ratings are at the same level as Celesc's CFR due
to the guarantee and cross default clauses embedded in the various
debts issued in the corporate family that indicate a high degree of
financial linkages between Celesc D and other subsidiaries within
the group. On a stand-alone basis, Celesc D's credit view
incorporates a moderate risk profile driven by its regulated
distribution business in a relatively small but developed service
region in the state of Santa Catarina, Brazil. Moody's views the
current regulatory regime in Brazil providing adequate tariff
adjustments on its electricity distribution business to compensate
the company's investment program up to the limit of BRL230 million
per year and intra-annual mismatch in non-manageable operating
costs associated with energy purchases, transmission and sector
charges, while the excess costs are absorbed by the company's
internal cash generation.

The stable outlook incorporates the view that Celesc's consolidated
credit metrics will remain adequately positioned for the Ba2
category, as reflected in a Cash Flow from Operations pre-Working
Capital changes (CFO pre WC) to Debt ratio above 20% and Interest
Coverage ratio above 3.0 times supported by operating cash
generation growth on the back of economic recovery in Celesc's
concession area and continued improvements in cost cutting
efforts.

WHAT COULD CHANGE THE RATING UP/DOWN

Celesc's global scale rating is constrained by Brazil's government
bond rating (Ba2, stable), given the highly regulated nature of the
energy sector and exposure to the same operating environment as the
sovereign; therefore, a rating upgrade is unlike at this time. A
rating upgrade on the national scale, or a change in outlook to
positive, would depend on sustained improvement in the company's
relevant credit metrics, such that its consolidated CFO pre-WC to
Debt approaches 30% and the Interest Coverage ratio is close to 4.0
times. Conversely, weakening consumption trends and/or failure to
meet regulatory targets leading to a prolonged deterioration in the
company's credit metrics, such that CFO pre-WC to Debt ratio falls
below 18% and Interest Coverage ratio remains sustainably below 2.5
times, could prompt a rating downgrade. A change in Celesc's
ratings would prompt a change in Celesc D ratings.

Headquartered in Florianopolis, in the state of Santa Catarina,
Brazil, Celesc is a non-operating holding company controlled by the
state government of Santa Catarina, with equity interests in
companies operating in the electricity sector, gas distribution and
sanitation. Celesc's main subsidiaries are (i) Celesc D
(responsible for 84% of consolidated EBITDA in 1Q19) a utility
company specialized in the distribution of electricity and covering
286 municipalities in the state of Santa Catarina, and (ii) Celesc
Geracao S.A. (Celesc G) a hydropower generation specialized in
small hydro plants with a total of around 107MW in installed
capacity and transmission assets. Celesc also holds minority
interests in a gas distribution company (SCGAS), a in water sewage
company (CASAN) and other small hydropower projects and
transmission assets in the State of Santa Catarina. In the twelve
months ended 30 March 2019 the company reported BRL7.5 billion in
net revenues (excluding construction revenues) and BRL198 million
in net income.




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

CHILE: Economic Activity Has Decelerated, IMF Says
--------------------------------------------------
An International Monetary Fund (IMF) staff team led by Mr. Luca
Antonio Ricci visited Santiago, Chile, on June 5 to 12, 2019 to
discuss recent economic and policy developments.  The IMF mission
met with government officials, private sector representatives and
academics during its stay. At the conclusion of the visit, Mr.
Ricci issued the following statement:

"Economic activity has decelerated, partly owing to a temporary
weather-related decline in mining.  Following a strong rebound in
2018, with real GDP growing at 4 percent, the deceleration in
economic activity since the start of 2019 has been stronger than
expected. GDP expanded by only 1.6 percent (yoy) in the first
quarter, dragged down by a contraction in mining and overall
exports, despite solid domestic demand. Headline inflation, after
dropping significantly under its new CPI measure starting in 2019,
picked up somewhat in recent months due to its non-core food and
energy components. By contrast, core inflation has remained subdued
and close to the lower bound of the Central Bank's target range.
Nominal export registered a fourth consecutive month of contraction
(yoy) in May. Confidence indicators have moderated lately against
the backdrop of higher external and domestic uncertainty.

"Global risks remain skewed to the downside amidst high policy
uncertainty. Global financial conditions remain broadly favorable
but could change rapidly, triggered for example by a shift in
global risk appetite, worsening of trade tensions, higher political
uncertainty, or a stronger-than-expected growth slowdown. Trade
tensions could persist or further escalate, hampering confidence,
investment, and growth. Sovereign risk concerns could return in the
euro area and a hard Brexit could create financial stability risks.
Overall, external developments are likely to continue to instill
volatility in copper prices and global trade.

"Overall, the worsening global environment and its impact on
economic performance have called for support from macroeconomic
policies while preserving macroeconomic stability:

The government recently announced a stimulus package to support
growth. The announced package of about USD 1.4 billion (about ½
percent of GDP) envisages both front-loading of public investment
projects that should be fully financed by reallocation of resources
from under-executed items within the existing budget and
accelerating private sector investment by a fast-track expansion of
existing concessions. Overall, the authorities expect an annual
contribution to growth of about 0.4 percentage points spread over
2019 and 2020.

The Central Bank recently cut the policy rate by 50 basis points,
increasing the expansionary stance of monetary policy at a critical
juncture. The decision was motivated by the weakening global
outlook, weaker-than-anticipated growth in the first quarter, low
inflation (especially core inflation remaining stubbornly close to
the lower bound of the target range), as well as the revision of
the Central Bank's estimates for trend growth (up by 25 basis
points) and for the neutral policy rate (down by 25 basis points).

"Maintaining the structural fiscal balance and inflation targets
remains a priority for the authorities. Staff expects the
authorities to meet the structural balance targets, though headline
fiscal deficit is expected to be larger in 2019, mainly owing to
the expectations of lower copper prices than envisaged in the
budget. Debt is expected to stabilize by early 2020s. Given the
looming uncertainty, the role of strong guidance on future monetary
policy actions, which will need to remain conditional on clear
signs of the expected inflation path, would become even more
important.

"The government has been aiming to support growth and address
development and social needs through a broad set of policy reforms.
These reforms relate to the tax, pension, and healthcare systems,
as well as the labor market, among others. While the lengthy
legislative process has strived to garner broad support, it has
also been contributing to domestic policy uncertainty, impairing
confidence and investment decisions.

"Going forward, it is crucial to reach a broad agreement over the
policy reforms soon, so as to support domestic confidence in this
period of heightened global uncertainty.

"The IMF mission wishes to thank the authorities for their kind
hospitality and fruitful discussions."




===================================
D O M I N I C A N   R E P U B L I C
===================================

DOMINICAN REPUBLIC: Drought Withers Puerto Plata Agriculture
------------------------------------------------------------
Dominican Today reports that the months-long drought which parches
the western part of Puerto Plata in the Dominican Republic could
ravage agriculture and makes it difficult for locals to get
drinking water.

It hasn't rained in western Puerto Plata communities over a year
ago, from Maimon to Luperon, which has been disastrous for
livestock and agriculture, the zone's only sources of livelihood,
according to Dominican Today.

The farmer Salvador Reyes warned that the lives of animals and
people are at stake in the towns, which are the most affected by
the drought that persists since February 2018, causing the
disappearance of creeks and streams, the report notes.

He said productive communities of Puerto Plata need water for
livestock and for humans, the report says.  "It's exasperating,
which is why it is urgent that the authorities come to their aid,"
the report relays.

                     About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

Fitch Ratings has recently assigned a 'BB-' rating to Dominican
Republic's DOP50.523 billion notes (equivalent to USD1 billion ),
maturing 2026 and to the USD1.5 billion bonds maturing 2049.


EL SALVADOR: To Get $200MM-IDB Loan for Government Expenditures
---------------------------------------------------------------
El Salvador will strengthen fiscal sustainability by securing
resources for complementary financing of the General State Budget
with a $200 million loan approved by the Executive Board Directors
of the Inter-American Development Bank (IDB).

The Government of El Salvador has maintained its commitment to
continue with the necessary reform processes that the country is
implementing in order to advance in the strengthening of fiscal
management, with particular emphasis on the efficiency of public
spending and pension sustainability, through the implementation of
legal instruments of fiscal responsibility and pension systems, as
well as the strengthening of the institutional capacities of the
State.

The country has implemented a series of structural actions and
reforms, which have been supported by the IDB for its development
and execution, which highlight the creation of a regulatory
framework of fiscal responsibility that promotes sustainability of
public finances and increased efficiency and transparency in
purchasing processes.

A budget reform will also be implemented that links resources with
results and the strengthening of public investment management, as
well as measures that simplify regulations and facilitate
investment by favoring the productive private sector.

Likewise, measures have been implemented aimed at improving the
institutional capacity for tax collection, incorporating the
country to international standards of transparency, and the
institutional strengthening of the pension system to achieve its
long-term sustainability, grant life annuities and improve
intergenerational equity.

Fiscal sustainability has direct and indirect benefits for the
Salvadoran entire population, promoting the continuous financing of
State services, raising the quality of public investments and
supports a favorable macroeconomic situation for development and
productive activity. The loan will also benefit vulnerable groups
(women, children and the elderly) by promoting specific measures
that protect social spending.

The IDB loan, for $200 million, has a repayment period of 20 years,
a five and a half year grace period and an interest rate based on
LIBOR.




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

MAXCOM TELECOMUNICACIONES: S&P Cuts ICR to 'CC', On Watch Negative
------------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating on Maxcom
Telecomunicaciones S.A.B. de C.V. to 'CC' from 'CCC'. At the same
time, S&P lowered its issue-level credit ratings on the company's
step-up senior notes due 2020 to 'CC' from 'CCC'. S&P's recovery
rating on the notes is unchanged at '4'.

S&P also placed the ratings on CreditWatch with negative
implications, which reflects its expectation that it will likely
lower the rating on Maxcom to 'D' once the company achieves its
exchange offer or files for bankruptcy under U.S. Chapter 11.

The downgrade follows Maxcom Telecomunicaciones S.A.B. de C.V.'s
(Maxcom) announcement of the non-payment of its step-up senior
notes due 2020 (notes) interest obligations due June 18, 2019.
According to the legal terms of the notes, Maxcom hasn't yet fallen
into an event of default because it has a 30-day grace period to
cover the past due interest payments. At the same time, Maxcom
announced an exchange offer on its current notes, which must be
accepted by at least 90.0% of the shareholders. In the event that
the exchange offer isn't resolved within the next 30 days, Maxcom
intends to file for bankruptcy in order to proceed with the
restructuring process under U.S. Chapter 11.

S&P said, "We believe the company will maintain ongoing operations
with no significant changes; preventing a negative impact on its
current clients, suppliers, and internal workforce. Currently,
Maxcom's shareholders have agreed on a MXN300 million capital
injection in the event of a successful exchange offer. Maxcom
anticipates paying all past due interest obligations on the notes
once the restructuring process is completed. Otherwise, the company
will not pay its interest payments until agreeing upon a
restructuring strategy.

"We intend to resolve the CreditWatch negative within the next 30
days, and will likely lower the rating to 'D' once the company
either completes its distressed exchange offer, files for
bankruptcy, or defaults on its past due interest payments."


MEXICO: Senate Ratifies USMCA in Extraordinary Session
------------------------------------------------------
EFE News reports that Mexico's Senate ratified a trilateral trade
deal meant to supersede the North American Free Trade Agreement
(NAFTA), which came into force in 1994.

The senators gave their approval to the United States-Mexico-Canada
Agreement (USMCA) by a vote of 114-4 with three abstentions on the
second day of an extraordinary session, making the Aztec nation the
first of the three partners to ratify the deal, according to EFE
News.




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

BAHIA DEL SOL: Seeks to Hire Landrau Rivera & Assoc.as Counsel
--------------------------------------------------------------
Bahia Del Sol Hotel Corporation seeks authority from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Landrau
Rivera & Assoc. as counsel to the Debtor.

The services to be rendered by the firm are:

   a. advise the Debtor of its duties, powers and
      responsibilities in connection with its Chapter 11 case
      under the laws of the United States and Puerto Rico;

   b. advise the Debtor whether a reorganization is feasible and,
      if not, aid the Debtor in the orderly liquidation of its
      assets;

   c. represent the Debtor in negotiations with its creditors to
      formulate a plan of reorganization;

   d. employ other bankruptcy professionals to assist with the
      Debtor's financial reorganization; and

   e. provide other legal services in connection with the
      Debtor's bankruptcy case.

The firm's hourly rates are:

     Noemi Landrau Rivera           $200
     Josue A. Landrau Rivera        $175
     Legal & financial assistants   $75

Landrau Rivera & Assoc. will be paid a retainer in the amount of
$10,000.

Noemi Landrau Rivera, a partner at Landrau Rivera & Assoc., attests
that she and her firm are disinterested persons within the
definition provided by Section 101(14) of the Bankruptcy Code.

The firm can be reached through:

     Noemi Landrau Rivera, Esq.
     Landrau Rivera & Associates
     Carr. 21, Km. 3.2 Bp. Monacillos
     P.O. Box 270219
     San Juan, PR 00927-0219
     Tel: (787) 774-0224
     Fax: (787) 793-1004

                  About Bahia Del Sol Hotel Corp

Bahia Del Sol Hotel Corporation, filed a Chapter 11 bankruptcy
petition (Bankr. D. P.R. Case No. 19-03234) on June 5, 2019,
estimating under $1 million in both assets and liabilities.  The
Debtor tapped Noemi Landrau Rivera, Esq., at Landrau Rivera &
Assoc., as counsel.


LUBY'S INC: Roy Camberg is New General Counsel
----------------------------------------------
Peter Tropoli had resigned from Luby's, Inc. and is no longer the
general counsel and corporate secretary of the Company effective
June 13, 2019.  Additionally, the board of directors of the Company
appointed Roy Camberg as general counsel and corporate secretary of
the Company, as disclosed in a Form 8-K filed with the Securities
and Exchange Commission.

                         About Luby's

Houston, Texas- based Luby's, Inc. (NYSE: LUB) --
http://www.lubysinc.com/-- operates 136 restaurants nationally as
of March 13, 2019: 81 Luby's Cafeterias, 54 Fuddruckers, one
Cheeseburger in Paradise restaurants.  Luby's is the franchisor for
102 Fuddruckers franchise locations across the United States
(including Puerto Rico), Canada, Mexico, Colombia, and Panama.
Luby's Culinary Contract Services provides food service management
to 33 sites consisting of healthcare, corporate dining locations,
sports stadiums, and sales through retail grocery stores.

Luby's reported a net loss of $33.56 million for the year ended
Aug. 29, 2018, compared to a net loss of $23.26 million for the
year ended Aug. 30, 2017.  As of March 13, 2019, the Company had
$197.58 million in total assets, $82.49 million in total
liabilities, and $115.08 million in total shareholders' equity.

Grant Thornton LLP, in Houston, Texas, issued a "going concern"
qualification in its report on the consolidated financial
statements for the year ended Aug. 29, 2018, noting that the
Company sustained a net loss of approximately $33.6 million and net
cash used in operating activities of approximately $8.5 million.

The Company's term and revolving debt of approximately $39.5
million is due May 1, 2019.  The Company was in default of certain
debt covenants of its term and revolving credit agreements maturing
on May 1, 2019.  On Aug. 24, 2018, the lenders agreed to waive the
existing events of default resulting from any breach of certain
financial covenants or the limitation on maintenance capital
expenditures, in each case that may have occurred during the period
from and including May 9, 2018 until Aug. 24, 2018, and any related
events of default.  Additionally, the lenders agreed to waive the
requirements that the Company comply with certain financial
covenants until Dec. 31, 2018, at which time the Company will be in
default without an additional waiver or alternative financing.

These conditions, along with other matters, raise substantial doubt
about the Company's ability to continue as a going concern.




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

TRINIDAD & TOBAGO: Unemployment Rate at 5% in 2018
--------------------------------------------------
Aleem Khan at Trinidad Express reports that the Caribbean
Development Bank (CDB) said in a new report that Trinidad and
Tobago's unemployment rate stands at 5.0 per cent.

The CDB, citing "National Statistics Offices", said in its Annual
Report 2018 that T&T was shown to have the third-lowest
unemployment rate out of 12 CDB member countries, according to
Trinidad Express.

The CDB includes British overseas territories Turks and Caicos
Islands (TCI), the Cayman Islands, and the British Virgin Islands
(BVI), the report notes.

Only the Cayman Islands and the BVI had lower unemployment rates,
3.4 and 2.8, respectively, the report says.  Trailing T&T was TCI
with 6.0 per cent, the report adds.




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

PETROLEOS DE VENEZUELA: Plans to Restart Curacao Refinery
---------------------------------------------------------
Irina Slav at OilPrice.com reports that Venezuela's struggling oil
company Petroleos de Venezuela, S.A. (PDVSA) plans to resume
operations at its Isla refinery on Curacao, a company official who
wished to remain unnamed told S&P Global Platts.

The refinery has a nameplate capacity of 335,000 but its actual
throughput is a maximum of 270,000-290,000 bpd. It is operated by a
local company, Rafineria di Korsou, "under the direction of PDVSA,"
according to the company official, according to OilPrice.com.

The refinery has suffered its share of the fallout from the U.S.
sanctions against Venezuela with scarcity of feedstock forcing all
but the suspension of operations, the report notes.  This, in turn,
has made the Curacao autonomous government, with which PDVSA has a
contract for the operation of the refinery, to look for an
alternative operator, the report relays.

As a result of all this, Isla is facing bankruptcy: "PDVSA will
have to make the decision to send some 3 million barrels of crude
to generate cash flow to cover expenses from September to December
2019 or send $60 million to honor the contract and avoid claims,"
the company official told S&P Global Platts.  "If not, Isla will
have to declare force majeure and bankruptcy.  The refinery is now
totally paralyzed. PDVSA promised the reactivation and offered to
supply crude in July but through an intermediary," the report
says.

The Isla refinery received an exemption from the January sanctions
the U.S. slapped on Venezuela. Under the exemption, the refinery
can continue working with U.S. companies until January 15, 2020 but
it has not helped it much, it seems, the report discloses.  On top
of all its other troubles, it was also targeted by ConocoPhillips
in an asset seizure move against PDVSA, the report relays.

The scenario with PDVSA sending crude for the refinery is the less
likely one, as another company official explained, the report
notes.  "For PDVSA the refinery has a low priority. Crude
production in Venezuela has decreased significantly.  In this
scenario, sending crude to Curacaco makes no sense, especially when
you take in to account that PDVSA cannot sell products from Curacao
because of the embargo," the report relays.

For Curacao, however, the refinery is high priority: it accounts
for a tenth of the island's GDP and a solid portion of its
employment, the report adds.

As reported in Troubled Company Reporter-Latin America on June 3,
2019,  Moody's Investors Service has withdrawn all the ratings of
Petroleos de Venezuela, S.A. including the senior unsecured and
senior secured ratings due to insufficient information. At the time
of withdrawal, the ratings were C and the outlook was stable.



                           *********


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.
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Chapman, Editors.

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contact Peter A. Chapman at 215-945-7000.
.


                  * * * End of Transmission * * *