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/raid1/www/Hosts/bankrupt/TCRLA_Public/191016.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, October 16, 2019, Vol. 20, No. 207 Headlines B E L I Z E BELIZE: Innovation Challenge Seeks to Stimulate Entrepreneurship B R A Z I L BRAZIL: Denies Conflict Between Agribusiness & Preservation EMBRAER SA: To Pause Operations in Brazil in January C A Y M A N I S L A N D S RAPTOR AIRCRAFT: S&P Assigns Prelim. BB(sf) Rating on Class C Notes M E X I C O MEXICO: Economic Growth Has Slowed on Elevated Risks, IMF Says P E R U PERU: Will Improve Crime Prevention Services With $40MM-IDB Loan P U E R T O R I C O BAHIA DEL SOL: Hires Cervoni Hernandez as Notary Public TECNICENTROS MUNDIAL: M. Miller Says Claim Wrongly Classified V E N E Z U E L A PETROLEOS DE VENEZUELA: Restart Crude Blending Facility VENEZUELA: Denies Entry of Guatemala's President-Elect - - - - - =========== B E L I Z E =========== BELIZE: Innovation Challenge Seeks to Stimulate Entrepreneurship ---------------------------------------------------------------- The Inter-American Development Bank (IDB) with its partners in the Compete Caribbean Partnership Facility (CCPF)- the United Kingdom's Department for International Development, the Caribbean Development Bank and the Government of Canada, is conducting a new social innovation challenge in Belize known as 'Change Dah Story'. Change Dah Story, which is also supported by the Belize Trade and Investment Development Service (BELTRAIDE) and the Department of Youth Services, was launched on October 10 at the Best Western Plus Belize Biltmore Plaza in Belize City and seeks to support the development of innovative technology solutions to solve pressing social and environmental problems impacting vulnerable youth in Belize, including crime and violence. The launch marked the start of a call for proposals that is open to individuals and organizations including students, professionals, entrepreneurs, private-sector companies, academia, NGOs, community groups and the wider Belizean populace, including citizens living abroad and foreigners with legal residence in Belize. Using innovation and social entrepreneurship as transformative tools, the challenge will engage these potential solvers to harness their collective knowledge, experience and creativity to generate innovative business ideas and new business models. "Innovation and digital technology are transforming economies and societies in profound ways. We hope that through this Challenge and the successful implementation of the business models developed, that vulnerable youth and their communities across the country will be empowered to transcend barriers and to contribute more effectively in a digital world to the social and economic development of Belize", says Dr. Cassandra T. Rogers, IDB's Country Representative in Belize. The challenge is the first iteration of a social innovation lab methodology that has been used by the IDB in the region and is now being piloted in Belize under the theme 'Ideas for Change' by the CCPF in collaboration with the IDB's Country Office in Belize. "With this approach, social problems are perceived as opportunities that can provide the impetus for creative and entrepreneurial solutions," says Dr. Sylvia Dohnert, Executive Director of the CCPF and Private Sector Development Lead Specialist at the IDB. "Belize was chosen as the locus of this pilot due to its entrepreneurial dynamism and creativity. At the same time, social problems that Belize experiences are similar to those of other countries in the Caribbean and even in the Central American region, which creates conditions for potential scalability of such solutions," she said. Proposals can be submitted in one or more of four pre-identified categories: education, recreation, parenting and employment and up to three winning proposals will be selected to receive US$10,000 each in training, mentoring and initial funding to put their ideas and prototypes into work. The deadline for submission is December 1, 2019. For more information and/or to submit a proposal, please visit www.iadb.org/changedahstory. The launch event coincides with the celebration of the IDB's 60th anniversary. Belize joined the IDB in 1992 and this year marks the country's 27th year as a Bank shareholder. As reported in the Troubled Company Reporter-Latin America on March 7, 2019, Moody's Investors Service has affirmed Government of Belize's B3 long-term foreign and local-currency issuer ratings, and the government's B3 foreign and local-currency senior unsecured bond ratings. =========== B R A Z I L =========== BRAZIL: Denies Conflict Between Agribusiness & Preservation ----------------------------------------------------------- Arkady Petrov at Rio Times Online reports that Agriculture, Livestock and Supply Minister Tereza Cristina issued a statement on October 10 at the Brazil 2019 Investment Forum in Sao Paulo. "Brazil is an agribusiness power, but it is also an environmental power. Despite the fact that this is currently highly questioned. In order to continue increasing national production and minimizing impacts on the environment, the Brazilian government and the private sector need to continue working together," said the minister, according to Rio Times Online. The Federal Republic of Brazil is the largest country in Latin America. Sao Paulo is the most populated city and Brasilia is the capital. The federation is composed of the union of 26 states, the Federal District and more than 5,000 municipalities. Its government is headed by President Jair Bolsonaro. Among other things, Brazil's government is hounded by corruption allegations. Brazil has an advanced emerging economy. Amid growth in recent decades, the country entered an ongoing recession in 2014 amid a political corruption scandal and nationwide protests. Standard & Poor's credit rating for Brazil stands at BB- with stable outlook (January 2018). Moody's credit rating for Brazil was last set at Ba2 with stable outlook (April 2018). Fitch's credit rating for Brazil was last reported at BB- with stable outlook (February 2018). DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). EMBRAER SA: To Pause Operations in Brazil in January ---------------------------------------------------- Adele Cardin at Rio Times Online reports that Empresa Brasileira de Aeronautica SA or Embraer will grant collective vacation to all its employees in Brazil, some 15,000 workers, in preparation for the transfer of control of its commercial aviation division to American aviation giant Boeing, said one of the company's unions on October 10. According to the Metalworkers Union of Sao Jose dos Campos (SP), where the company's main plant is located, the vacation period will be between January 6 and 20, according to Rio Times Online. About Embraer SA Headquartered in Brazil, Empresa Brasileira de Aeronautica SA (Embraer) -- http://www.embraer.com-- is a company engaged in the manufacture of aircrafts for commercial aviation, executive jet and defense and government purposes. The Company has developed a line of executive jets based on one of its regional jet platforms and launched executive jets in the entry-level, light, ultra-large and mid-light/mid-size categories, the Phenom 100/300 family, the Lineage 1000 and the Legacy 450/500 family, respectively. The Company supplies defense aircraft for the Brazilian Air Force based on number of aircraft sold, and sells aircraft to military forces in Europe, Asia and Latin America. In July 2008, the Company acquired a 40% interest owned by Liebherr Aerospace SAS in ELEB?Equipamentos Ltda (ELEB). ELEB is an aerospace system and component manufacturer, and its products include landing gear systems, hydraulics and electro-mechanical sub-assem As reported in the Troubled Company Reporter - Latin America on Feb. 6, 2019, Moody's Investors Service has placed the Ba1 rating of Embraer S.A's senior unsecured notes under review for upgrade. Embraer's Ba1 corporate family rating remains unchanged. =========================== C A Y M A N I S L A N D S =========================== RAPTOR AIRCRAFT: S&P Assigns Prelim. BB(sf) Rating on Class C Notes ------------------------------------------------------------------- S&P Global Ratings assigned its preliminary ratings to the series 2019-1 series A, B, and C fixed-rate notes issued by Raptor Aircraft Finance I Ltd. (the Cayman issuer), an exempted Cayman Islands limited liability company, and Raptor Aircraft Finance I LLC (the U.S. issuer), a Delaware limited liability company (collectively, Raptor). The note issuance is an ABS transaction backed by 19 aircraft, and the related leases, shares, and beneficial interests in an entity that directly and indirectly receives aircraft portfolio lease rental and residual cash flows, among others. The preliminary ratings are based on information as of Oct. 11, 2019. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect: -- The likelihood of timely interest on the series A notes (excluding step up interest) on each payment date, timely interest on the series B notes (excluding step-up interest) when the series A notes are no longer outstanding on each payment date prior to the subordination date (14 years from the closing date), and ultimate interest and principal payment on the series A, B, and C notes on or before the legal final maturity date at the respective 'A', 'BBB', and 'BB' rating stress scenarios. -- The approximately 67% loan-to-value (LTV) ratio on the series A notes, the 81% LTV on the series B notes, and the 88% LTV on the series C notes. The LTV ratio is based on the lower of the mean and median (LMM) of the half-life base value and the half-life current market value. -- The aircraft portfolio consists of approximately 67% narrow-body aircraft (39% from the Airbus A320 family and 28% from the Boeing B737 family) and 33% wide-body aircraft (20% from the A330 family and 12% from the B787 family) by the LMM of the half-life value. All of the aircraft models are in production. -- The weighted average age (by value) of the aircraft in the portfolio is 3.92 years. Currently, all 19 of the aircraft are on lease, with a weighted average remaining term of approximately 6.78 years. -- Some of the lessees are in emerging markets where the commercial aviation market is growing. The existing and future lessees' estimated credit quality and diversification. The 19 aircraft are currently leased to 14 airlines in 12 countries. Some of the initial lessees have low credit quality, and approximately 80% of the lessees (by aircraft value) are domiciled in emerging markets. Three of the 19 aircraft are leased to flag carriers internationally. -- Each series' scheduled amortization profile, which is a straight line over 14 years for series A and B and a straight line over seven years for series C. -- The transaction's debt service coverage ratio (DSCRs) and utilization triggers--a failure of which will result in the series A and B notes' turbo amortization. Turbo amortization for the series A and B notes will also occur if they are outstanding after year seven. -- The subordination of series C principal and interest to series A and B principal and interest. -- A revolving credit facility that BNP Paribas will provide and that will be available to cover senior expenses, including hedge payments and interest on the series A and, prior to the subordination date, series B notes. -- Alton Aviation Consulting LLC (Alton) performed a maintenance analysis before closing. After closing, the servicer will perform a forward-looking 27-month maintenance analysis at least annually, which Alton will review and confirm for reasonableness and achievability. -- The maintenance reserve account (funded to $1.0 million balance at closing), which receives senior payments from the waterfall, based on the projected maintenance expenses during the next six months of the transaction, and junior payments, based on the projected maintenance expenses during the next 12 months of the transaction. After month 84, the senior payments will be based on the next 16 months of projected expenses. -- The expense reserve account, which will be funded at closing with approximately $500,000 from the note proceeds and is expected to cover the next three months of expenses. The series C reserve account, which will be funded at closing with approximately $500,000 from the note proceeds. The initial average lease rate factor of 0.95%, (based on the LMM of half-life values), as measured by the portfolio's weighted average lease rate factor based on aircraft half-life value. -- The senior indemnification (excluding indemnification amounts to lessees under leases entered into before the transaction closing date) is capped at $10 million and modeled to occur during the first 12 months. -- The junior indemnification (uncapped) is subordinated to the rated series' principal payment. -- Seraph, an aircraft lessor, is the servicer for this transaction. -- The transaction's legal structure, which is expected to be bankruptcy remote. PRELIMINARY RATINGS ASSIGNED Raptor Aircraft Finance I Ltd./Raptor Aircraft Finance I LLC Series Rating Amount (mil. $) A A (sf) 553.000 B BBB (sf) 116.500 C BB (sf) 56.500 =========== M E X I C O =========== MEXICO: Economic Growth Has Slowed on Elevated Risks, IMF Says -------------------------------------------------------------- The International Monetary Fund (IMF) staff issued a Concluding Statement of the 2019 Article IV Mission on Mexico on Oct. 11, 2019. A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or 'mission'), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF's Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments. As per its Concluding Statement, IMF staff relates that economic growth in Mexico has slowed sharply in an environment of elevated external and domestic risks. Nevertheless, the authorities' commitment to very strong policies and policy frameworks is reassuring. The challenge is to create conditions for strong, sustained, and inclusive growth, while maintaining macroeconomic stability. To this end, the mission recommends: (i) pursuing a more growth-friendly and inclusive fiscal policy mix that puts debt on a downward path, notably by raising non-oil revenues and improving the efficiency of spending; (ii) easing monetary policy further if inflation remains close to target and inflation expectations remain anchored; (iii) boosting financial inclusion and strengthening financial system resilience; and (iv) re-invigorating structural reforms, including steps to reduce corruption and crime. IMF continues to note these on Mexico: Context, Outlook, And Risks 1. Strong fundamentals have contributed to Mexico's resilience. The authorities' commitment to fiscal prudence is strong, monetary policy has succeeded in bringing inflation to target, and financial sector supervision and regulation remain robust. The flexible exchange rate is playing a key role in helping the economy adjust to external shocks. Mexico's external position remains broadly consistent with medium-term fundamentals and desirable policy settings. These strong policies have been instrumental in allowing Mexico to navigate a complex external environment successfully. 2. But growth has declined sharply, and fiscal pressures are mounting. Fiscal pressures have emerged in the context of new policy priorities and a commitment to not raise taxes during the first half of the administration's term. Drastic budget cuts raise concerns about their sustainability and their potential impact on human capital, while productivity-enhancing reforms have largely stalled. 3. The mission projects near-term growth to pick up only slowly and inflation to continue falling. Growth is projected to reach 0.4 percent in 2019, and to accelerate to 1.3 percent in 2020 on the back of a modest recovery in domestic demand as uncertainty subsides and monetary conditions ease further. Headline inflation is at Banxico's 3-percent target, while core inflation is expected to converge to it by mid-2020. 4. The balance of risks is tilted to the downside. The main external risks include weaker-than-projected global growth, volatility in global financial markets, and continued uncertainty about Mexico's trade relations with the U.S. On the domestic front, medium-term growth could be lower, and investors could reconsider Mexico's credit quality, should the administration weaken its commitment to fiscal prudence, strong institutions, and a favorable business environment. A downgrade of Pemex to non-investment status by a second major rating agency could lead to higher financing costs and spillovers to other corporations. On the other hand, concrete steps to enhance good governance and the rule of law, and advance structural reforms, would provide upside risks to growth. Fiscal Policy And Structural Fiscal Reforms 5. The mission welcomes the commitment to fiscal prudence, but stresses the need for more ambitious targets to put the public debt ratio on a downward path. Keeping the PSBR at 2.2-2.4 percent of GDP over the medium term, as envisaged in the authorities' plans, would keep debt broadly stable at around 55 percent of GDP. While this level is sustainable in staff's view, more ambitious medium-term fiscal targets would help rebuild buffers and insure against downside risks and demographics-related spending pressures. 6. Additional measures are needed to meet the announced fiscal targets. The mission is of the view that budget projections are based on optimistic assumptions for nominal GDP growth, oil production, and tax revenue buoyancy, and remains concerned about the projected significant compression of spending on goods and services. Meeting the announced fiscal targets would require closing an emerging fiscal gap of 0.5-1.5 percent of GDP during 2020-24 with concrete actions; this would be imperative to safeguard the credibility of fiscal policy. 7. The authorities' top priority should be to raise non-oil tax revenues while making the tax system more progressive . Mexico's revenue performance significantly lags that of regional and international peers, with a strikingly weak VAT collection. The mission thus urges the authorities to undertake a comprehensive review of the tax system with a view to bringing forward plans for rationalizing tax expenditures and broadening the tax base. Consideration should be given to: VAT. Taxing (non-export related) food items at the standard 16 percent rate alone would boost revenues by some 1 percent of GDP, while targeted benefits could offset the impact on the poor (an initially reduced rate could smooth the transition to the standard rate). Income taxes. Rationalizing inefficient and regressive tax expenditures and widening the PIT top bracket could boost revenues and increase progressivity. Excises. Guaranteeing retail fuel price growth below inflation by reducing the excise rate subject to a zero floor disproportionately benefits the rich and should be abolished. Local taxes. A reform of both the property and vehicle registration taxes would allow for a reduction in central government transfers to states and municipalities and thus encourage fiscal responsibility. Border tax regime. This temporary (for 2019 and 2020) special policy regime creates distortions and likely erodes the tax base and should thus be abolished immediately or at least not be extended. Tax administration. The mission welcomes recent steps to improve tax administration, namely: (i) the abolition of the right to offset excess VAT credits against other taxes; and (ii) strengthening sanction for tax evasion and closing loopholes. To further reduce fraud and improve compliance, the mission recommends adopting a comprehensive strategy to tackle VAT non-compliance in line with the recommendations of the recent Fund technical assistance, while addressing the lack of a high-coverage audit process for VAT returns. Integrating the income tax and social security administrations could reduce tax evasion over the medium-term. 8. Enhancing public expenditure efficiency could facilitate shifting spending toward a more growth-friendly and inclusive mix. To this end: Public investment. The mission notes the need to increase non-energy related public investment-especially if the envelope must accommodate large-scale priority projects-but only in the context of a sustainable fiscal position and a comprehensive infrastructure plan that lays out priorities and financing options. Public investment management should be strengthened in line with the recent Public Investment Management Assessment. Social protection spending. Efficiency gains could be achieved by rationalizing the numerous social protection programs and improving targeting, including by reducing errors of inclusion and exclusion, beneficiary overlaps, and program duplications. Wage bill. Stricter standards and more transparency in the use of temporary personnel, along with the consistent application of merit-based recruitment and the establishment of a centralized payroll system would contain the wage bill. However, maintaining pay competitiveness will be important to ensure staff quality and mitigate corruption incentives. Education spending. More careful audits of payrolls to identify ghost workers and curb absenteeism, along with a rebalancing of spending towards investment in equipment and facilities, will help increase the efficiency of education spending. Improving the quality of early-childhood education, access to education in low-coverage regions and for disadvantaged-background children would lead to better outcomes. Pension system. The mission welcomes the reduction in management fees for pension funds and recommends further improving pension adequacy by increasing the contribution rate for the defined-contribution pension system, potentially by reducing contributions to the housing fund Infonavit to avoid incentives for firms to operate informally. Moreover, consideration could be given to increasing the effective retirement age. Finally, federal and local non-contributory pension pillars should be consolidated. Health sector. The mission recommends seeking efficiency gains in health expenditure by reducing administrative and insurance costs. Investment should target rural and impoverished areas with deficient access to services. Improving the portability of insurance and building an information infrastructure compatible across sub-systems would improve continuity of care, health outcomes, and reduce beneficiary duplication. Public procurement. Making further progress on centralizing procurement and adopting a digital platform could yield savings, while reducing the risks of corruption and bid rigging. 9. The mission recommends reconsidering Pemex's business plan with the aim of improving profitability, while also providing relief to the budget. The company's financial situation remains weak, its debt is elevated, and oil production had been dropping until very recently. The business plan limits cooperation with private firms in Pemex's upstream business to service contracts, envisages investing heavily in its loss-making downstream business, and lacks concrete ways to reduce operating costs. The mission recommends reconsidering these decisions as they place the onus of stabilizing Pemex squarely on the government. Most importantly, joint ventures with the private sector remain the most promising way to replace reserves and increase production given fiscal pressures. 10. Strengthening the fiscal framework would support the new administration's commitment to fiscal responsibility . As the mission has emphasized in the past: (i) the current fiscal framework could benefit from a well-calibrated debt anchor ; (ii) the structural spending rule should cover a broader expenditure envelope; (iii) the framework lacks a well-defined adjustment path to return to target after a shock; (iv) triggers for the use of escape clause should be significantly tightened ; and (iv) a non-partisan, adequately-sourced fiscal council should be created with a formal mandate to provide an independent evaluation of fiscal policy. It is encouraging that the new administration shares these views and intends to revamp the fiscal framework along these lines. The mission stands ready to provide support in these efforts, and also recommends putting in place a modern medium-term budget framework and implementing the recommendations of the 2018 Fiscal Transparency Evaluation. Monetary policy 11. The mission welcomes the recent easing of monetary policy and sees scope to continue easing in the period ahead. Banxico's tight monetary stance was successful in bringing headline inflation back to the 3-percent target. Going forward, given the still-tight policy stance in the context of a large negative output gap, the mission recommends continuing to lower the policy rate so long as inflation remains close to the target and inflation expectations remain anchored, while being mindful of risks. 12. Improvements in the communication strategy have helped guide market expectations. The mission welcomes these improvements and urges Banxico to continue keeping its communication concise, while focusing on external developments only to the extent that these are relevant for the inflation trajectory. 13. Exchange rate flexibility should remain the key shock absorber. The flexible exchange rate has played an important role in gradually strengthening the non-oil balance as Mexico shifted from being a net oil exporter to net oil importer. Exchange rate flexibility will be indispensable to restore equilibrium in response to permanent shocks, while foreign exchange intervention should be limited to incidences of disorderly market conditions. The FCL provides an additional buffer, should downside risks materialize. Financial Stability 14. Financial sector resilience could be further boosted by closing gaps in the regulatory and supervisory framework. In line with the 2016 FSAP recommendations, the mission advocates: (i) increased operational independence, budget autonomy, and legal protection of the banking and securities supervisor; (ii) integration of prudential supervision functions under one authority for all financial institutions; (iii) enhancements to the definition of "common risk" and "related party"; and (iv) expansion of the resolution regime to cover financial holding companies and strengthening the authorities' powers to require banks to make changes to improve their resolvability. 15. Efforts to boost financial sector competition and inclusion should continue. The mission welcomes the authorities' efforts to improve financial inclusion through a diverse set of measures announced earlier in the year. Going forward, a multi-pronged strategic approach to boost lending and strengthen competition and inclusion should be a policy priority amid weakening economic activity. Specifically, priority should be given to initiatives that boost competition and transparency in financial products, reduce cash usage and improve financial infrastructure especially in terms of supporting SMEs. Finally, upcoming fintech secondary regulations should promote competition in the sector while preserving financial stability. Structural reforms 16. There is a need to raise potential growth by reinvigorating the structural reform agenda. Despite important transformations of the Mexican economy, growth has continued to disappoint, and the medium-term outlook has weakened. Poverty and inequality have only modestly declined and have failed to do so in Mexico's South. Reinvigorating productivity-enhancing reforms is thus central to boosting growth, reducing poverty and inequality, and narrowing regional income disparities. Specifically: Combating corruption and money laundering. The mission re-iterates the importance of more effective enforcement and inter-agency cooperation to counter corruption, and the need for the effective implementation of the 2014 National Anti-Corruption Strategy. With respect to anti-money laundering, the mission notes UIF's drive to increase the effectiveness of financial investigations. FGR should take the necessary measures to be able to effectively follow-up on UIF's referrals. The current lack of transparency of beneficial ownership of companies enables corruption, money laundering, tax evasion and other financial crime, and should urgently be addressed through an inter-agency task force. The mission expresses concern about reduced budget allocations to sector regulators and important autonomous entities such as the judicial branch, COFECE and CONEVAL. Reducing Mexico's labor informality. The mission recommends strengthening enforcement and reinvigorating efforts to replace hiring and firing restrictions with an unemployment insurance scheme; and reducing entry costs for formal firms, e.g., by reducing the procedural costs and time burdens of starting and formalizing a business. Improving the security situation. Enhancing the effectiveness of law enforcement and judicial institutions is critical to strengthening the rule of law. 17. There is also a need to continue addressing gender gaps. Lowering participation barriers for mothers remains a priority as gender gaps increase during child-bearing years, and women with more children participate less. Child care and maternity/paternity benefits are well below OECD peers and should be expanded. In addition, the mission is concerned over the cancelation of subsidies for child care facilities and their replacement with direct transfers. Promoting the financial inclusion of women should be one of the pillars of the government's upcoming financial inclusion initiatives. 18. Productivity growth would also benefit from strengthening competition and easing product market regulations. The mission advocates removing barriers to trade in services, especially in the transportation and logistics sector. It also urges restarting energy auctions and risk-sharing arrangements between Pemex and private firms. 19. Further adjustments in the minimum wage should be very gradual to avoid short-term disruptions and adverse formal employment effects. While acknowledging that increases in the minimum wage-large enough to ensure an increasing ratio of minimum-to-median wages-would help reduce inequality, the mission recommends caution in further adjustments to avoid discouraging formal employment. ======= P E R U ======= PERU: Will Improve Crime Prevention Services With $40MM-IDB Loan ---------------------------------------------------------------- Peru will implement an improvement program for crime prevention services in the urban population most vulnerable to crime and violence with a $40 million loan approved by the Inter-American Development Bank (IDB). The program will benefit the citizens of several districts that reside and transit in areas of high crime concentration, by strengthening the Ministry of Interior with special attention to the National Police and the Intelligence Directorate of the National Police. In addition, community organizations, youth and women participating in the programs in the jurisdictions of the police stations will benefit. Peru has as a priority the improvement of citizen security. Among the initiatives underway, the multisectoral strategy of Barrio Seguro stands out, which contains actions to improve citizen participation, protect the rights of citizens, and ensure coexistence in vulnerable neighborhoods. Barrio Seguro prioritizes its approach in urban districts where the highest rate of crime and violent incidents is concentrated. The program will improve police effectiveness in prevention tasks, financing the training and awareness of police personnel in methodologies for identification, analysis and approach to security problems with a community police approach. An information system will also be designed and implemented in police stations with a focus on community patrol service for the generation, analysis and monitoring of data aimed at strengthening crime prevention tasks. Additionally, it is planned to support activities to strengthen the intelligence function of the Intelligence Directorate of the National Police (DIRIN). Among the activities, specialized guidelines and training will be developed for DIRIN police officers in strategic analysis and operational tactical analysis. With this program it is hoped to strengthen the attention services and community participation programs of the police stations to improve the public perception of the National Police, the social prevention of violence and the reduction of crime. This component will have community preventive programs for children, adolescents, youth and women, to address crime risk factors through accountability, transparency and citizen participation mechanisms. ===================== P U E R T O R I C O ===================== BAHIA DEL SOL: Hires Cervoni Hernandez as Notary Public ------------------------------------------------------- Bahia Del Sol Corporation seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Francisco I. Cervoni Hernandez, as notary public to the Debtor. Bahia Del Sol requires Cervoni Hernandez to serve as notary public in connection with the sale of the Debtor's real property located at Road 305, La Parguera, Lajas, Puerto Rico. Cervoni Hernandez will be paid a fee of 1% of the total amount of the transaction. Francisco I. Cervoni Hernandez assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtor and its estates. Cervoni Hernandez can be reached at: Francisco I. Cervoni Hernandez, Esq. PO Box 370 Mercedita, PR 00715-0370 Tel: (787) 840-5976 About Bahia Del Sol Corporation 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. TECNICENTROS MUNDIAL: M. Miller Says Claim Wrongly Classified ------------------------------------------------------------- M. Miller & Son, LLC submitted an objection to the adequacy of the Disclosure Statement of Tecnicentros Mundial, Inc. The Debtor hired Miller to assist it in the preparation, presentation and adjustment of all claims for loss or damage by Hurricane Maria that occurred on or about Sept. 20, 2017. In Miller's role as the Debtor's public adjuster, it was instrumental in negotiating a settlement of all of the Debtor's building claims in the amount of $915,737.93. In the Debtor's voluntary Chapter 11 bankruptcy petition, the Debtor described that it had an insurance claim(s) from Hurricane Maria and received an insurance payment of $915,737.932 that is being held by one of the Debtor's other creditors, Oriental Bank. In the proposed Disclosure Statement, the Debtor is intending to treat Miller's claim as an unsecured claim (Class 3) when the Debtor's position is that it is an equitable lien creditor/assignee of a portion of the insurance proceeds held by Oriental Bank. Therefore, the Disclosure Statement wrongfully classifies Miller's claim. The Debtor's contract with Miller gave Miller the right of assignment of a portion of the insurance proceeds to it, essentially bypassing the Debtor's estate, which is why Miller was a named payee on the $915,737.93 check. The Disclosure Statement fails to address this issue and Miller will likely be filing an adversary proceeding in order for the court to more fully address Miller's claims. With this, Miller respectfully requests that an order be entered denying approval of the Disclosure Statement. Attorney for Creditor, M. Miller & Son, LLC BARRY S. MILLER, ESQ. 1211 Liberty Avenue, Hillside, NJ 07205 Tel: 973-216-7030 Fax: 973-710-3099 Email: bmiller@barrysmilleresq.com - and - Maria del P. Bobonis-Zequeira (Local Counsel) #690 Cesar Gonzalez St. Cond. Parque de las Fuentes 2104 San Juan, Puerto Rico 00918 Tel: 787-360-2373 Email: pbobonis@gmail.com About Tecnicentros Mundial Based in San Juan, Puerto Rico, Tecnicentros Mundial, Inc., a distributor of tires and tubes for passenger and commercial vehicles, filed a voluntary Chapter 11 petition (Bankr. D.P.R. Case No. 19-04471) on Aug. 6, 2019. In the petition signed by Jacklin Tirado Rivera, vice-president, the Debtor had total assets of $3,459,283 and total liabilities of $8,891,276. The case is assigned to Hon. Enrique S. Lamoutte Inclan. William Vidal Carvajal, Esq., in San Juan, Puerto Rico, is the Debtor's counsel. Luis Carrasquillo, CPA, is the financial advisor. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Restart Crude Blending Facility ------------------------------------------------------- Mircely Guanipa and Deisy Buitrago at Reuters report that Venezuelan state-run oil company Petroleos de Venezuela, S.A. (PDVSA) and Chevron Corp have restarted crude blending at their Petropiar joint venture, two sources familiar with the operation said. Operations at the plant were halted in September due to rising inventories, as U.S. sanctions on the OPEC-member nation left few companies willing to buy Venezuelan crude, according to Reuters. It was now producing at a rate of around 100,000 barrels per day (bpd) of Merey crude, the sources said, the report relays. Earlier, PDVSA and China National Petroleum Corp restarted their Petrosinovensa blending facility, the report notes. The two plants are currently the only ones blending extra-heavy, tar-like crude from the Orinoco oil belt with lighter grades in order to produce Merey, a popular grade for Asian refiners, the report relays. Neither PDVSA nor Chevron immediately responded to requests for comment. An Oct. 8 internal PDVSA report seen by Reuters said the company was seeking to restart the Petropiar blending facility, but was repairing a gas leak, the report discloses. Venezuela reshuffled oil output in June to focus on producing Merey heavy crude, a blend of heavy and light oil most preferred by Asian refiners, hoping to secure exports, the report relates. PDVSA lost its largest U.S. customers after Washington imposed sanctions in January, the report adds. As reported in Troubled Company Reporter-Latin America on June 3, 2019, Moody's Investors Service withdrew 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. VENEZUELA: Denies Entry of Guatemala's President-Elect ------------------------------------------------------ Miami Herald reports that the president-elect of Guatemala said he was blocked from entering Venezuela where he planned to meet opposition leader Juan Guaido, who is seeking to oust socialist President Nicolas Maduro. Officials defended their actions, saying Guatemala's incoming leader, Alejandro Giammattei, was turned away because he broke with normal protocol followed by heads of state, according to Miami Herald. The commercial flight carrying Giammattei, who takes office in Guatemala on Jan. 14, made an early morning landing at the airport near Caracas, but his visit ended there, the report notes. "They didn't allow our entry into Venezuela," Giammattei said in a video posted on Twitter. "They escorted us to the gate and put us on the returning plane," the report relays. Giammattei expresses his support for Guaido in the video shot from the plane about to depart, the report notes. The report relays that Guaido, who traveled to the airport to greet the foreign leader, launched a campaign early this year with backing from more than 50 nations to unseat Maduro. Critics accuse Maduro of claiming a second term following a fraudulent election in 2018, while overseeing the once-wealthy oil-nation's economic and social collapse, the report discloses. Giammattei said in another video that in Caracas, he planned to invite Guaido to his inauguration in Guatemala and press for Venezuela's return to democracy, including the release of political prisoners and the immediate call to elections, the report notes. Guaido later spoke at a private university where he was to meet with Giammattei, saying Maduro's government used "unprecedented, unnecessary diplomatic aggression" by refusing the Guatemalan leader, the report says. Maduro's government said Giammatei is well-known as the incoming president of Guatemala, but rather than entering as such, Giammattei presented an Italian passport and said he came as a tourist making a private visit, the report relays. "A visit to Venezuela by high-level foreign officials requires not only bilateral coordination that include setting an agenda, arranging security and issuing visas, but also the presentation of credentials and identification of the country that fulfilled of government," the Venezuelan government said in a statement obtained by the news agency. Maduro maintains control of Venezuela with the backing of the military and international support from key allies Cuba, Russia and China, the report notes. The United States supports Guaido and has imposed sanctions on Venezuela as it tries to force Maduro from power, the report adds. About Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South Ameri ca, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. Standard and Poor's long- and short-term foreign currency sovereign credit ratings for Venezuela stands at 'SD/D' (November 2017). S&P's local currency sovereign credit ratings on the other hand are 'CCC-/C'. The May 2018 outlook on the long-term local currency sovereign credit rating is negative, reflecting S&P's view that the sovereign could miss a payment on its outstanding local currency debt obligations or advance a distressed debt exchange operation, equivalent to default. Moody's credit rating (long term foreign and domestic issuer ratings) for Venezuela was last set at C with stable outlook (March 2018). Fitch's long term issuer default rating for Venezuela was last set at RD (2017) and country ceiling was CC. Fitch, on June 27, 2019, affirmed then withdrew the ratings due to the imposition of U.S. sanctions on Venezuela. ********* 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 * * *