/raid1/www/Hosts/bankrupt/TCRLA_Public/191125.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
Monday, November 25, 2019, Vol. 20, No. 235
Headlines
A R G E N T I N A
ARGENTINA: Political Uncertainty, Crisis Torpedo Green Energy Push
PETROQUIMICA COMODORO: S&P Places 'B-' ICR On CreditWatch Negative
B O L I V I A
BOLIVIA: Evo Morales Can't Run in Next Election, Anez Says
B R A Z I L
IPS WORLDWIDE: Hires Felsberg Advogados for Brazilian Liquidation
JBS SA: Congresswoman Urges USDA to Investigate Payments to Unit
C A Y M A N I S L A N D S
EUROMAX III: S&P Lowers Class A-2 & B Notes Rating to 'D (sf)'
C O L O M B I A
COLOMBIA: Pres. Discloses National Dialogue Amid Massive Protests
P U E R T O R I C O
EMPRESAS CARRION: Dec. 18 Hearing on Amended Plan Disclosures
J & C CORP: Seeks Court Approval to Hire Accountant
V E N E Z U E L A
VENEZUELA: Opposition Cuts Deal to Delay Possible Citgo Seizure
X X X X X X X X
[*] BOND PRICING: For the Week November 18 to November 22, 2019
- - - - -
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A R G E N T I N A
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ARGENTINA: Political Uncertainty, Crisis Torpedo Green Energy Push
------------------------------------------------------------------
Marina Lammertyn at Reuters reports that in Argentina's sunny
Mendoza province, officials had been preparing to break ground on
the Vecaso solar park, a 115 megawatt project costing $90 million.
The culmination of nearly four years of planning, Vecaso was one of
several ambitious projects to take root under a renewable energy
push by the government of President Mauricio Macri.
But that project is now in limbo, along with at least two other
clean energy investments totaling half a billion dollars--victims
of political and economic uncertainty that has crimped cash flow
into Argentine industries from shale drilling to cars, according to
Reuters.
Latin America's no. 3 economy is facing default fears following a
sharp market crash and has imposed stricter capital controls to
protect the peso after an election last month that saw
business-friendly Macri beaten by opposition candidate Alberto
Fernandez, the report notes.
Once a sector that represented more than $4.5 billion in
investments and 9% of the country's total generation, the clean
energy projects have ground to a halt as companies and financial
backers wait for signals from Fernandez on his approach to energy
and economic policy, the report relays.
"The idea was to start construction before the end of the year, but
with the current uncertainty we have been forced to adjust," said
Ramiro Marquesini of Verano Capital, the Latin American company
responsible for building the Vecaso solar park, the report
discloses.
Marquesini said he hopes the construction will not be delayed
beyond June of next year, if the situation has stabilized by then,
the report says.
The report relays that Fernandez' vice president will be firebrand
former President Cristina Fernandez de Kirchner, known for
interventionist economic policies during her two terms between 2007
and 2015. The return of the Peronists to power from next month has
prompted investor fears that Argentina could be headed again in a
more protectionist direction.
The political uncertainty, not to mention inflation running at
nearly 51%, has put up a barrier to finishing renewable energy
projects in development, like the Vecaso solar park, industry
executives told Reuters.
Further complicating the landscape are capital controls imposed by
Macri's government that require financing institutions to convert
investment dollars into pesos upon entering Argentina, the report
says.
"Development banks and export credit agencies all just stopped
making disbursements," said Gustavo Castagnino, communications
director for Genneia, an Argentine energy firm that suspended the
development of four wind farms representing a total of 200
megawatts, the report discloses.
Marcelo Alvarez, president of the Argentine Chamber of Renewable
Energies (CADER), told Reuters in an interview that the situation
was affecting "one of the few sectors that had real investments in
recent times," adding that projects requiring a large initial
investment were particularly affected, the report notes.
In northwestern Argentina, a planned solar park in Jujuy
province--already home to South America's largest solar
farm--stalled after the results of the August primary election
indicated that Macri was on his way out, according to a source with
direct knowledge of the project, the report adds.
Those behind the project had been in talks with European
development banks for $100 million in funding to build a 96
megawatt solar farm. The paper work and due diligence was in
advanced stages, according to the source, who declined to be named
due to the political sensitivity of the issue, the report notes.
Then, Fernandez trounced Macri by a wider-than-expected margin,
sending the peso and markets tumbling, the report relays.
"We had an informal 'ok,' but when they were presenting the project
to their steering committees, after the results of the primary,
they didn't say no--they told us they were going to wait until
things were more stable," the source said, the report notes.
The project leaders are now looking into alternative funding
options, the source said, the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. It's capital is Buenos Aires. Alberto Angel Fernandez is
the President-elect of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019 according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and -- in the recent decades -- increasing poverty.
Standard & Poor's foreign and local currency sovereign credit
ratings for Argentina stands at CCC- with negative outlook. S&P
said, "The negative outlook reflects the prominent downside risks
to payment of debt on time and in full per our criteria over the
coming months amid very complex political, economic, and financial
market dynamics." Moody's credit rating for Argentina was last set
at Caa2 from B2 with under review outlook. Fitch's credit rating
for Argentina was last reported at CC with n/a outlook. DBRS's
credit rating for Argentina is CC with under review outlook. S&P,
Moody's and DBRS ratings were issued on Aug. 30, 2019; Fitch rating
on Sept. 3, 2019.
Back in July 2014, Argentina defaulted on some of its debt, after
expiration of a 30-day grace period on a US$539 million interest
payment. The country hasn't been able to access international
credit markets since its US$95 billion default 13 years ago. On
March 30, 2016, Argentina's Congress passed a bill that will
allow the government to repay holders of debt that the South
American country defaulted on in 2001, including a group of
litigating hedge funds that won judgments in a New York court.
The bill passed by a vote of 54-16.
PETROQUIMICA COMODORO: S&P Places 'B-' ICR On CreditWatch Negative
------------------------------------------------------------------
On Nov. 20, 2019, S&P Global Ratings placed its 'B-' long-term
issuer credit rating on Argentina-based energy company,
Petroquimica Comodoro Rivadavia S.A. (PCR) on CreditWatch with
negative implications.
The CreditWatch placement reflects the company's tighter liquidity
due to high capital expenditures (capex), mainly to develop its
renewable energy business unit. PCR largely financed its capex with
bank lines with high amortizations during the next two years. Given
that the wind farms' cash flow generation is increasing gradually,
the company is dependent on debt refinancing with local banks in
order not to further pressure its liquidity position in the short
term. Moreover, PCR's covenant package is tight, in our view, and
S&P believes the company will struggle to meet net leverage of 2.5x
by year-end and 2.0x next year. This suggests that PCR will have to
either ask for a bank waiver or directly renegotiate the financial
covenants package going forward. The liquidity contraction and
constant need to refinance prevented the company from improving its
capital structure in the last year and a half. A volatile context
in Argentina (CCC-/Negative/C) due to recession and financial
distress significantly narrowed financing options for domestic
corporations, including PCR, which have been largely unable to
access international capital markets. Additionally, the new
administration will take office on December 10, while uncertainties
exist regarding potential changes in the regulatory framework for
oil and gas, and renewable energy sector, with crude oil price
controls and energy tariffs in Argentine pesos as a possible
scenario. This could add further pressure to the company's cash
flow generation and on its refinancing negotiations.
The company's average production reached 20,557 boepd in the first
nine months of the year. PCR reported high EBITDA per boe, of about
$21 year-to-date and solid EBITDA margin of 44% as of Sept. 30,
2019. Gross debt to adjusted EBITDA for the third quarter was 3.2x.
S&P expects PCR to generate about $155 million of adjusted EBITDA
and to reduce its gross leverage to 2.8x in 2019. It believes the
EBITDA contribution from the wind farms will allow PCR to reduce
gross leverage to about 2.2x in 2020 and 2.0x in 2021, which should
support short-term debt refinancing.
S&P said, "Following the Sept. 16, 2019, publication of our new oil
and gas price deck, we're maintaining the average price assumptions
for Brent crude oil at $60/bbl for the remainder of 2019 and for
2020, decreasing to $55/bbl for 2021. We believe the price
reduction in 2021 would weaken the oil and gas unit's
profitability, but would be offset by the renewable business unit
with all three wind farms fully operational and contributing a
fairly stable cash flow generation of about $65 million."
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B O L I V I A
=============
BOLIVIA: Evo Morales Can't Run in Next Election, Anez Says
----------------------------------------------------------
CBC News reports that Bolivia's interim President said that Evo
Morales would not be welcome to take part in new elections, after
the longtime leftist leader resigned and fled to Mexico amid rising
pressure over vote-rigging allegations.
Jeanine Anez, who took over, is battling to bring calm to a sharply
divided Bolivia that has been rocked by protests since the Oct. 20
election, which was won by Morales but marred by widespread
allegations of fraud, according to CBC News.
The report notes that Morales resigned after a damning audit found
electoral irregularities and the military withdrew its backing and
urged him to step down to help restore calm to the country. Morales
and his vice-president Alvaro Garcia, who also resigned, are now in
Mexico, which offered them asylum, the report relays.
"Evo Morales does not qualify to run for a fourth term. It's
because [he did] that we've had all this convulsion, and because of
this that so many Bolivians have been demonstrating in the
streets," Anez told a news conference, says the report.
The conservative former senator said Morales' Movement for
Socialism (MAS) party, which has a majority in Congress, was
welcome to participate in the vote, the report notes. "They should
start searching for a candidate," she said.
Anez did not give a specific date for the election, but under the
constitution, she has 90 days to do so since declaring herself
interim leader by invoking the constitutional line of succession,
the report discloses.
Morales has said he was the victim of a coup, with his supporters
continuing to agitate on his behalf with marches and skirmishes in
the streets of La Paz and nearby El Alto, the report relays.
Meanwhile, Anez is shoring up her position. She has appointed a new
military chief and cabinet members, while MAS lawmakers seemed to
have backed away from plans to try to nullify her interim
appointment, the report says.
Russian President Vladimir Putin said that Bolivia was on the brink
of chaos and there is now a power vacuum, the report notes.
Speaking to reporters in Brasilia at an economic summit, Putin said
he hoped that whoever comes to power in Bolivia would continue to
co-operate with Moscow, the report notes.
Not All Recognizing Anez
Russia, a key ally for Bolivia under Morales, said it would work
with Anez, while pointing out she had not been formally sworn in,
the report adds.
"But clearly, she will be recognized as Bolivia's new leader until
the question of a new president is resolved with elections,"
Russian deputy foreign minister Sergei Ryabkov said, the report
relays.
The United States, Brazil, Colombia and Britain have also
recognized Anez, the report notes. Other governments in South
America, including neighboring Peru and Argentina, have held off,
the report notes.
Canada updated its position on the fluid and chaotic situation in
Bolivia, saying it would work with and support the caretaker
administration of Anez--while still stopping short of formally
recognizing her presidency. Canadian officials also issued a fresh
advisories for travel in El Alto and consular access in La Paz, the
report notes.
Morales, in power since 2006, defied term limits and a 2016
referendum against lifting them by running for office this year,
after a Bolivian court packed with loyalists gave him a green light
to run indefinitely, citing his "human rights," the report
discloses.
In protests since the October vote, at least 10 people have been
killed, the public prosecutor's office said, mostly by projectiles
from firearms, the report adds.
Morales, tweeting from Mexico, has called for dialogue to help
"pacify" Bolivia, asking the United Nations and the Roman Catholic
Church to help find a solution, the report says.
In an interview with Spanish daily El Pais, Morales said he was
still legally president because his resignation had not yet been
accepted by the legislature, but added he considered Anez the de
facto leader and suggested he would not try to run in the next
election, the report notes.
A MAS legislator, asking not to be named, said the party wanted to
reach a deal with its opponents to formally appoint a transitional
government and were not planning to challenge Anez in her
transitional role, the report adds.
As reported in the Troubled Company Reporter-Latin America on June
24, 2019, Fitch Ratings has affirmed Bolivia's Long-Term Foreign
Currency Issuer Default Rating at 'BB-' and revised its Outlook to
Negative from Stable.
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B R A Z I L
===========
IPS WORLDWIDE: Hires Felsberg Advogados for Brazilian Liquidation
-----------------------------------------------------------------
Alex Moglia, the Chapter 11 Trustee of IPS Worldwide, LLC, seeks
authority from the U.S. Bankruptcy Court for the Middle District of
Florida to employ Felsberg Advogados, as special counsel to the
Debtor.
IPS Worldwide requires Felsberg Advogados to provide legal services
and assistance in relation to the winding up/liquidation of a
Brazilian company named IPS Worldwide do Brasil Prestadora de
Servicos Ltda.
Felsberg Advogados will be paid at these hourly rates:
Attorneys $630
Paralegals $140
Inter Services $90
Felsberg Advogados will also be reimbursed for reasonable
out-of-pocket expenses incurred.
Thomas Benes Felsberg, a partner at Felsberg Advogados, 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.
Felsberg Advogados can be reached at:
Thomas Benes Felsberg, Esq.
FELSBERG ADVOGADOS
5 Av. Cidade Jardim, 803
Jardim Paulistano, 01453-001, Brazil
Tel: +55 (11) 3141 9100
Fax: +55 (11) 3141 9150
E-mail: ThomasFelsberg@felsberg.com.br
About IPS Worldwide
IPS Worldwide, LLC, filed a Chapter 11 petition (Bankr. M.D. Fla.
Case No. 19-00511) on Jan. 25, 2019. In the petition signed by
William Davies, president, the Debtor was estimated to have assets
of less than $50,000 and liabilities of $100 million to $500
million. The case is assigned to Judge Karen S. Jennemann. The
Debtor tapped the Law Offices of Scott W. Spradley, P.A., as its
bankruptcy counsel, and Moglia Advisors, as investment banking
advisor.
Judge Karen S. Jennemann approved the appointment of Alex D. Moglia
as the Chapter 11 trustee for IPS Worldwide. The trustee retained
Klayer and Associates, Inc., as counsel and Moglia Advisors, as
investment banking advisor.
The U.S. Trustee for Region 21 on Feb. 15, 2019, appointed three
creditors to serve on an official committee of unsecured creditors
in the Chapter 11 case.
On June 25, 2019, the Court entered its order authorizing the sale
of substantially all of the Debtor's assets. The Chapter 11
Trustee conducted an auction on June 19, 2019, with Europe
Management, SPRL, being the highest and best bidder. The asset
sale closed in July 2019 and the amount of $2,300,000 was paid into
the estate.
JBS SA: Congresswoman Urges USDA to Investigate Payments to Unit
----------------------------------------------------------------
Tatiana Freitas and Mike Dorning at Bloomberg News report that
political opposition to Sao Paulo-based JBS SA's expansion in the
U.S. just got a new voice.
In a letter to Agriculture Secretary Sonny Perdue, Congresswoman
Rosa DeLauro requested an investigation "to bring suspension and
debarment proceedings against the JBS entities," including its U.S.
poultry unit Pilgrim's Pride Corp, according to Bloomberg News.
DeLauro, the Democratic representative for Connecticut, said JBS
got millions of dollars of procurement awards through the USDA's
Agricultural Marketing Service in addition to $90 million received
last year through government aid meant for U.S. farmers, Bloomberg
News relates.
"Based on well-supported and documented facts, JBS SA invested in
U.S. subsidiaries as a result of numerous criminal violations that
call into question the justification for their continuation as USDA
contractors," DeLauro said, Bloomberg News notes.
JBS USA said in a statement that as a U.S. food company, its
participation in federal programs is long-standing. The meatpacker
said the trade aid helps partners raising hogs, Bloomberg News
notes. Ranchers have been roiled by the stalled U.S.-China
negotiations, Bloomberg News discloses.
"JBS has transparently cooperated with authorities regarding the
past events in Brazil," the company said, notes Bloomberg News.
"Today, we are focused on creating more opportunity for our 62,000
mostly unionized U.S. team members in 28 states and Puerto Rico,
and the more than 12,000 family farmers and ranchers" that supply
livestock and poultry.
De Lauro's complaint follows a request presented last month by
Republican Senator Marco Rubio of Florida and Senator Bob Menendez,
a New Jersey Democrat, to Treasury Secretary Steven Mnuchin for a
review in the transactions made by the company, Bloomberg News
notes.
The senators and the lower-house member have a similar allegation:
the company engaged in illicit activities to expand. DeLauro cited
the bribery scheme that the brothers who control JBS SA, Joesley
and Wesley Batista, admitted under a plea bargain deal with
Brazilian prosecutors and alleged "illicit" funds provided by
Brazil's development bank BNDES, Bloomberg News says.
DeLauro serves as vice chair of the House Agriculture
Appropriations Subcommittee, which is responsible for funding the
USDA, Bloomberg News adds.
As reported in the Troubled Company Reporter-Latin America on Nov.
1, 2019, S&P Global Ratings raised its long-term issuer credit
ratings on Brazil-based protein processor JBS S.A. (JBS) and JBS
USA Lux S.A. to 'BB' from 'BB-'.
===========================
C A Y M A N I S L A N D S
===========================
EUROMAX III: S&P Lowers Class A-2 & B Notes Rating to 'D (sf)'
--------------------------------------------------------------
S&P Global Ratings lowered its credit ratings on EUROMAX III MBS
Ltd.'s class A-2 and B notes to 'D (sf)'. At the same time, S&P has
withdrawn its rating on the class A-1 notes.
On Nov. 12, 2019, S&P received notification from the trustee of:
-- The occurrence of events of default;
-- The acceleration of the notes;
-- The appointment of receivers of the issuer's portfolio of
assets; and
-- The sale of all assets held within the portfolio at an auction
that took place on March 5, 2019.
Full repayment of the class A-1 notes and payment of accrued
interest took place on May 23, 2019.
On Oct. 1, 2019, the trustee made the final distribution of the
proceeds of the realization of the portfolio. The class A-2 and B
notes defaulted on their principal repayment. The class A-2 notes
received 84% of their outstanding principal amount, while the class
B notes received 0%.
EUROMAX III MBS is a cash flow mezzanine structured finance CDO of
a portfolio that comprises RMBS as well as CMBS, and, to a lesser
extent, CDOs of corporates and CDOs of ABS. The transaction closed
in December 2002 and is managed by CIBC World Markets Inc. Collineo
Asset Management is the collateral adviser
===============
C O L O M B I A
===============
COLOMBIA: Pres. Discloses National Dialogue Amid Massive Protests
-----------------------------------------------------------------
The Latin American Herald reports that Colombia's President Ivan
Duque disclosed his government would launch talks with all
political and social groups as the South American country saw the
second day of mass protests marked by sporadic violence.
Duque promised Colombians his administration would address some of
the main demands made by the protesters, who have focused on the
nation's rampant inequality and a host of issues affecting labor
unions, students and indigenous groups, according to The Latin
American Herald.
". . . I will kick off a national conversation that strengthens the
current social policy agenda by working together--with a
medium--and long-term view--allowing us to close the gaps in
society," Duque said in a televised address, notes the report.
He added that this "conversation" among Colombians would include
all regions and social sectors, using electronic means and
"participatory mechanisms" with the aim of building a "significant
path of reforms," the report notes.
The protests erupted as several trade unions and civic groups
called for a strike to demonstrate against Duque's economic and
social policies, the report relays.
Hundreds of thousands took to the streets to display their
rejection of what they see as an inadmissible pack of
socio-economic reform measures and urged the government to change
course, the report notes.
The Latin American Herald says that the protests continued in
Bogota, albeit with a smaller number of participants, with some
neighborhoods in the south of the capital witnessing riots and
looting. The incidents prompted its mayor, Enrique Penalosa, to
declare a curfew throughout the country's largest city, the report
relays.
In his speech, notes the report, Duque encouraged labor leaders to
compromise for the sake of a "national effort" geared toward the
future, "to defeat inequality, informality and the gaps that divide
our country."
"We are together in this task of building the future. And I am sure
that the beginning of this conversation throughout the territory,
head-on, openly, with you, will allow us to continue strengthening
our democracy, and that all of us, united, will be able to turn the
page on hatred, violence and inequality," the president added, the
report discloses.
During these two days of protests at least three people have died,
two of them in Buenaventura--Colombia's main port in the
Pacific--and the third in Candelaria, a municipality located in the
western region of Valle del Cauca, the report adds.
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P U E R T O R I C O
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EMPRESAS CARRION: Dec. 18 Hearing on Amended Plan Disclosures
-------------------------------------------------------------
A hearing is scheduled for Dec. 18, 2019 at 9:00 a.m. to consider
and rule upon the adequacy of the disclosure statement, as amended,
of Empresas Carrion Allende Inc.
Objections to the form and content of the disclosure statement must
be filed and served not less than 14 days prior to the hearing.
Empresas Carrion on Nov. 4, 2019, filed an Amended Chapter 11 Plan
and Disclosure Statement in light of objections received by the
Debtor.
The Company was engaged in the supermarket industry until they
closed the supermarket on 2015 due to diminishing business volume.
Since 2015, the Debtor has been trying to obtain the necessary
funding to reach an agreement with its secured creditor, Oriental
Bank. The Company owns two properties: one property is a 27,000
square feet building in three levels: a warehouse and receiving
area of 7,000 sq ft. in the basement, a first level with 10,480
sq. ft. and a second floor with 10,6000 sq. feet. The second
property is parcel of land used for parking purposes. The Plan
involves the development of both properties as commercial income
producing units.
Under the Plan, general unsecured claims will be paid 1% of the
allowable amount of the claim in 60 equal monthly installments
without interest,commencing 45 days after the effective date of
the plan. Aggregate amount of monthly payments is $775.24.
A full-text copy of the Amended Disclosure Statement dated Nov. 4,
2019, is available at https://is.gd/ZZiAAe from PacerMonitor.com at
no charge.
About Empresas Carrion Allende
Empresas Carrion Allende, Inc., operates a grocery store in
Arecibo, Puerto, Rico.
Empresas Carrion Allende filed its petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-07111)
on Dec. 6, 2018. In the petition was signed by Sandra I. Carrion
Montalvo, president, the Debtor estimated $1 million to $10 million
in both assets and liabilities. The case is assigned to the Hon.
Mildred Caban Flores. Francisco J. Ramos Gonzalez, Esq., at
Francisco J. Ramos & Asociados CSP, led by Francisco J. Ramos
Gonzalez, is the Debtor's counsel.
J & C CORP: Seeks Court Approval to Hire Accountant
---------------------------------------------------
J & C Corporation, Inc., seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire an accountant.
In an application filed in court, the Debtor proposes to employ
Jacqueline Rivera Gonzalez to provide accounting services, which
include the preparation of monthly operating reports and tax
returns; tax and management counseling; and representation in
tax-related investigations.
The Debtor will pay the accountant a monthly fee of $200.
Ms. Gonzalez is "disinterested" within the meaning of Section
101(14) of the Bankruptcy Code, according to court filings.
Ms. Gonzalez maintains an office at:
Jacqueline I. Rivera Gonzalez
San Antonio Apartment
2030 Calle Drama, Suite 104
Ponce, PR 00728
Tel: 787-843-1679
Fax: 787-812-0187
About J & C Corporation
J & C Corporation Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 19-04176) on July 24, 2019.
At the time of the filing, the Debtor had estimated assets of
between $500,001 and $1 million and liabilities of between $100,001
and $500,000. The case is assigned to Judge Mildred Caban Flores.
The Debtor tapped Modesto Bigas Mendez, Esq., as its legal counsel.
=================
V E N E Z U E L A
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VENEZUELA: Opposition Cuts Deal to Delay Possible Citgo Seizure
---------------------------------------------------------------
Luc Cohen at Reuters reports that Venezuela's opposition has
reached a deal with the custodians of a bond issued by state oil
company PDVSA to prevent bondholders from seizing U.S. refining
subsidiary Citgo, the bond's collateral, until May, according to
court filings and a source.
The opposition-appointed PDVSA board, which is recognized in the
United States as the company's rightful representation, last month
sued in the U.S. District Court for the Southern District of New
York to annul PDVSA's 2020 bonds VE151299784=, according to
Reuters.
The deal to delay litigation in the case between PDVSA and the
defendants, bond trustee MUFG Union Bank and collateral agent Glas
Americas, laid out a schedule in which fact discovery would extend
until Feb. 10, followed by a period of expert depositions before a
hearing on May 5, the report relays.
Judge Katherine Polk Failla agreed to the arrangement, known as a
forbearance agreement, last Nov. 15, filings showed.
Before the deal, PDVSA was at risk of losing Citgo after Jan. 22,
when a measure by the U.S. Treasury Department blocking the
transfer of shares in Citgo expires, the report discloses. That
move came on Oct. 24, days before the bond went into default, which
would have allowed bondholders to exercise their rights to seize
the company, the report notes.
The deal now gives the opposition more time in control of Citgo,
and it will continue negotiating possible solutions to the default
with the bondholders in parallel with the litigation, according to
one of the people involved in the talks, the report says.
Venezuelan President Nicolas Maduro cannot make payments on the
bond due to Washington's sanctions aimed at ousting him, the report
notes. The opposition, whose leader Juan Guaido is recognized by
the Trump administration as the legitimate president, said it did
not have the funds to make the $913 million payment due Oct. 28,
the report says.
While Guaido controls PDVSA's assets and legal representation in
the United States, Maduro remains in control of the company's
operations within Venezuela, the report relays. The socialist
leader calls Guaido a U.S. puppet seeking to oust him in a coup to
seize control of the OPEC nation's vast oil reserves, the report
relays.
The country's economy has been in a tailspin since crude oil prices
collapsed in 2014, prompting the government and PDVSA to default on
much of its foreign debt and spurring hyperinflation and chronic
shortages of basic goods that have forced millions of Venezuelans
to emigrate, the report adds.
About Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, 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.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week November 18 to November 22, 2019
---------------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
Empresa de Transporte 4.3 30.9 7/15/2020 CL CLP
Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
SACI Falabella 2.3 50.6 7/15/2020 CL CLP
Sylph Ltd 2.4 65.1 9/25/2036 KY USD
Banco Security SA 3.0 27.4 6/1/2021 CL CLP
Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD
Noble Holding Internat 5.3 60.5 3/15/2042 KY USD
AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL
MIE Holdings Corp 7.5 56.4 4/25/2019 HK USD
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD
Noble Holding Internat 6.2 62.2 8/1/2040 KY USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD
Enel Americas SA 5.8 32.7 6/15/2022 CL CLP
Empresa Provincial de 12.5 0.0 1/29/2020 AR USD
Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL
Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD
China Huiyuan Juice Gr 6.5 46.6 8/16/2020 CN USD
Odebrecht Finance Ltd 7.0 17.0 4/21/2020 KY USD
Yida China Holdings Lt 7.0 74.3 4/19/2020 CN USD
Noble Holding Internat 6.1 62.0 3/1/2041 KY USD
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Provincia del Chubut A 4.5 2208 3/30/2021 AR USD
Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD
Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD
Polarcus Ltd 5.6 71.8 7/1/2022 AE USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD
Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY
Plaza SA 3.5 38.3 8/15/2020 CL CLP
Banco Security SA 3.0 5.6 7/1/2019 CL CLP
Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD
Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP
City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD
Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR
Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD
Fospar S/A 6.5 1.2 5/15/2026 BR BRL
Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP
Sociedad Austral de El 3.0 17.0 9/20/2019 CL CLP
Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD
Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD
Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD
Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP
Esval SA 3.5 49.9 2/15/2026 CL CLP
*********
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.
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balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
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