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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
Monday, January 6, 2020, Vol. 21, No. 4
Headlines
A R G E N T I N A
ARGENTINA: Peso Ends Tumultuous 2019 Down 37% Against The Dollar
B R A Z I L
BRAZIL: 2019 International Trade Balance Declines
J A M A I C A
UC RUSAL: Downgraded by JP Morgan Chase & Co
P U E R T O R I C O
BAHIA DEL SOL: Feb. 12, 2020 Disclosure Statement Hearing Set
BETTERECYCLING CORPORATION: Taps Lugo Mender as Legal Counsel
CHRISVIC BY THE SEA: Hires Almeida & Davila as Bankruptcy Counsel
RELIANCE MANUFACTURING: Feb. 12 Hearing on Disclosure Statement
SAN JUAN ICE: Plan & Disclosures Hearing Reset to Jan. 22, 2020
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Touts Gasoline Delivery to Nation
X X X X X X X X
[*] BOND PRICING: For the Week December 30 to January 3, 2019
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Peso Ends Tumultuous 2019 Down 37% Against The Dollar
----------------------------------------------------------------
Reuters reports that the Argentine peso on Dec. 30 chalked up a 37%
drop for 2019, closing out a tumultuous year in which the currency
has plummeted against the dollar amid rising debt default fears,
rampant inflation and domestic recession.
The peso, its major losses from earlier in the year capped by
currency controls in recent months, closed down 0.13% on Dec. 30 at
ARS59.91 per dollar, according to Reuters.
Argentina's markets are closed on Dec. 31 for the New Year
holiday.
The country's markets and currency were battered in August when a
steep primary election defeat for then-President Mauricio Macri
jolted investor confidence in the South American nation with
worries about a sharp political shift, the report notes.
Reuters relays that that dragged down the peso, the domestic S&P
Merval .MERV equities index and the country's bonds, which fell
into distressed territory over default fears as the government
sought talks to restructure billions of dollars in debt.
Argentina's over-the-counter bonds, however, have recovered
slightly, warming to new Peronist President Alberto Fernandez, who
has sought a more amiable approach to debt talks and looked to calm
fears over heavy investor losses, the report notes.
The country's OTC bonds rose 8.5% on average in December, though
they were still down 21% for the year, the report relays.
Ratings agency Standard & Poor's lifted Argentina's long-term
foreign currency rating out of "selective default", saying that a
non-payment issue earlier in the month had effectively been
"cured," 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.
On Dec. 30, 2019, S&P Global Ratings raised its foreign currency
sovereign credit ratings on Argentina to 'CC/C' from 'SD/D'. The
outlook on the long-term sovereign credit ratings is negative. S&P
previously lowered the ratings to 'SD' (selective default) on Dec.
20 following the unilateral extension of U.S. dollar-denominated
short-term paper (Letes) held by private-sector market participants
on Dec. 19, 2019.
DBRS, Inc. (DBRS Morningstar) downgraded Argentina's Long-Term and
Short-Term Foreign Currency - Issuer Ratings to Selective Default
(SD), from CC and R-5, respectively.
On December 26, 2019, Fitch Ratings upgraded Argentina's Long-Term
Foreign-Currency
Issuer Default Rating to 'CC' from 'RD', and its Short-Term
Foreign-Currency IDR to 'C' from 'RD'.
Moody's credit rating for Argentina was last set at Caa2 from B2
with under review outlook. Moody's rating was issued on Aug. 30,
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
===========
B R A Z I L
===========
BRAZIL: 2019 International Trade Balance Declines
-------------------------------------------------
Richard Mann at The Rio Times Online reports that Brazil's trade
balance recorded a 4.7 percent decline between January and November
2019, compared to the same period in 2018.
Data from the Ministry of Economy show that the country exported
and imported US$370.6 billion in products in 2019, compared to
US$388.2 billion last year, according to The Rio Times Online.
When separating exports from imports, a drop of 6.8 percent in
foreign sales and 2.1 percent in purchases is noted, the report
notes.
According to economists and the National Confederation of Industry,
the reduction is a worldwide trend, the report discloses.
It added that the crisis in Argentina interferes with the Brazilian
trade balance. The National Confederation of Industry (CNI)
estimates that the current account deficit should reach three
percent of GDP, the report notes.
As reported in the Troubled Company Reporter-Latin America on Nov.
18, 2019, Fitch Ratings affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating at 'BB-'. The Rating Outlook is
Stable.
=============
J A M A I C A
=============
UC RUSAL: Downgraded by JP Morgan Chase & Co
--------------------------------------------
RJR News reports that Windalco's parent company, UC Rusal, has been
downgraded by equities research analysts at JPMorgan Chase and
Company.
It has moved from an overweight rating to a neutral rating,
according to RJR News.
No reason was given for the change, the report notes.
West Indies Alumina Company (WINDALCO), formerly Jamalcan, is a
joint venture between the UC Rusal and the Government of Jamaica.
UC Rusal is the majority shareholder (93% stake) and manages the
joint venture. The Government of Jamaica owns the remaining 7%
share.
About UC Rusal
Headquartered in Russia, RUSAL is one of the largest integrated
aluminium producers, with aluminium output of 3.8 million tonnes in
2018. The company generated revenue of $10.3 billion and
Moody's-adjusted EBITDA of $2.2 billion in 2018.
=====================
P U E R T O R I C O
=====================
BAHIA DEL SOL: Feb. 12, 2020 Disclosure Statement Hearing Set
-------------------------------------------------------------
On Dec. 10, 2019, Judge Brian K. Tester ordered that the hearing on
approval of the Disclosure Statement accompanying the Chapter 11
plan of debtor Bahia Del Sol Hotel Corporation is scheduled for
Feb. 12, 2020, at 2:00 p.m. at the U.S. Bankruptcy Court, Jose V.
Toledo Federal Building and U.S. Courthouse, 300 Recinto, Sur,
Courtroom No. 1, Second Floor, Old San Juan, Puerto Rico to
consider and rule upon the adequacy of the Disclosure Statement.
Objections to the form and content of the Disclosure Statement
should be in writing and filed with the court and served upon
parties in interest at their address of record not less than 14
days prior to the hearing. Objections not timely filed and served
will be deemed waived.
A full-text copy of the order is available at
https://tinyurl.com/tpank47 from PacerMonitor.com at no charge.
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.
BETTERECYCLING CORPORATION: Taps Lugo Mender as Legal Counsel
-------------------------------------------------------------
Betterecycling Corporation seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to employ Lugo Mender Group,
LLC, as its legal counsel.
The firm will provide these services in connection with the
Debtor's Chapter 11 case:
a. advise the Debtor of its duties, powers and
responsibilities ;
b. advise the Debtor in connection with its reorganization
endeavors, including assisting in the formulation of a plan of
reorganization;
c. assist the Debtor in negotiations with creditors for the
purpose of arranging a feasible plan of reorganization;
d. prepare on behalf of the Debtor the necessary complaints,
answers, orders and other legal documents; and
e. appear before the court.
Lugo's hourly rates are:
Wigberto Lugo Mender $300
Senior Associates $250
Junior Associates $175
Legal Assistants $125
The Debtor paid the firm a retainer in the sum of $37,500.
Wigberto Lugo Mender, Esq., at Lugo Mender, disclosed in a court
filing that he and other members of his firm are "disinterested" as
defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached through:
Wigberto Lugo Mender, Esq.
Lugo Mender Group, LLC
100 Carr. 165, Suite 501
Guaynabo, PR 00968-8052
Tel: (787) 707-0404
Fax: (787) 707-0412
Email: wlugo@lugomender.com
About Betterecycling Corporation
Betterecycling Corporation produces gasoline, kerosene, distillate
fuel oils, residual fuel oils, and lubricants. Based in San Juan,
P.R., Betterecycling Corporation filed a voluntary petition under
Chapter 11 of the Bankruptcy Code (Bankr. D. P.R. Case No.
17-04157) on Jun. 9, 2017. Judge Enrique S. Lamoutte Inclan
oversees the case. Lugo Mender Group, LLC is the Debtor's legal
counsel.
CHRISVIC BY THE SEA: Hires Almeida & Davila as Bankruptcy Counsel
-----------------------------------------------------------------
Chrisvic by the Sea, Corp. requests permission from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Almeida
& Davila, P.S.C. as counsel in this bankruptcy proceeding.
The Debtor agrees to pay Almeida & Davila, P.S.C. the amount of
$3,500.00 as retainer fee. The firm will also bill the Debtor:
-- $250.00 per hour, for work performed or to be performed by
Enrique M. Almeida Bernal, Esq., or by Zelma Davila Carrasquillo,
Esq.;
-- $175 per hour for work performed by its associate
attorneys; and
-- $85.00 for paralegals, plus expenses.
Almeida & Davila, P.S.C. attests that it is a disinterested person
as defined in 11 U.S.C. Sec. 101(14), since it and its members: (a)
are not the Debtor's creditors, equity security holders or
insiders; (b) are not and were not, within two years before the
date of the filing of the petition, directors, officers or
employees of the Debtor; and (c) they do not have an interest
materially adverse to the interest of the estate or of any class of
creditors or equity security holders, by reason of any direct or
indirect relationship to, connection with, or interest in, the
Debtor.
The firm may be reached at:
Enrique M. Almeida Bernal, Esq.
Zelma Davila Carrasquillo, Esq.
ALMEIDA & DaVILA, P.S.C.
PO Box 191757
San Juan, PR 00919-1757
Tel: (787) 722-2500
Fax: (787) 777-1376
Email: ealmeida@almeidadavila.com
About Chrisvic by the Sea
Chrisvic by the Sea, Corp. filed a voluntary Chapter 11 petition
(Bankr. D. P.R. Case No. 19-07109) on December 4, 2019, and is
represented by Enrique M. Almeida Bernal, Esq. and Zelma Davila
Carrasquillo, Esq., at Almeida & Davila, P.S. C. The Debtor listed
under $500,000 in both assets and liabilities.
RELIANCE MANUFACTURING: Feb. 12 Hearing on Disclosure Statement
---------------------------------------------------------------
Judge Brian K. Tester has ordered that a hearing on approval of the
Disclosure Statement is scheduled for Feb. 12, 2020 at 2:00 p.m. at
the U.S. Bankruptcy Court, Jose V. Toledo Federal Building and U.S.
Courthouse, 300 Recinto, Sur, Courtroom No. 1, Second Floor, Old
San Juan, Puerto Rico.
Objections to the form and content of the Disclosure Statement must
be filed and served not less than 14 days prior to the hearing.
About Reliance Manufacturing
Reliance Manufacturing, Inc., is a privately-held home builder in
San Juan, Puerto Rico.
Reliance Manufacturing sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-05778) on Oct. 1, 2018.
In the petition signed by Gilberto Media Safon, president, the
Debtor disclosed $441,201 in assets and $2,788,977 in liabilities.
Judge Hon. Brian K. Tester presides over the case. The Debtor
tapped MRO Attorneys at Law, LLC as its legal counsel; and Tamarez
CPA, LLC as its accountant.
SAN JUAN ICE: Plan & Disclosures Hearing Reset to Jan. 22, 2020
---------------------------------------------------------------
Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico granted the motion of debtor San Juan Ice
Inc. requesting continuance of the confirmation hearing.
The hearing on final approval of the disclosure statement and
confirmation of the plan scheduled for Dec. 11, 2019, at 9:00 a.m.,
is rescheduled, for cause, for Jan. 22, 2020, at 9:00 a.m., at the
United States Bankruptcy Court, Jose V. Toledo Federal Building and
US Courthouse, 300 Recinto Sur Street, Courtroom 3, Third Floor,
San Juan, Puerto Rico.
The time period to confirm the plan is extended, for cause, until
Feb. 5, 2020.
About San Juan Ice Inc.
San Juan Ice Inc., based in San Juan, PR, sought Chapter 11
protection (Bankr. D.P.R. Case No. 18-01784) on April 3, 2018. In
the petition signed by Ramiro Rodriguez Pena, president, the Debtor
disclosed $580,495 in assets and $1.17 million in liabilities. The
Hon. Mildred Caban Flores oversees the case. Robert Millan, Esq.,
at Millan Law Offices, serves as bankruptcy counsel to the Debtor.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Touts Gasoline Delivery to Nation
---------------------------------------------------------
Deisy Buitrago and Luc Cohen at Reuters report that with an emoji
of a flexing bicep, Venezuelan state oil company Petroleos de
Venezuela, S.A., or PDVSA, celebrated what was once a routine task
in the OPEC nation: delivering gasoline.
Acute gasoline shortages in much of Venezuela's interior have in
recent days reached the capital Caracas, which has been largely
insulated from the service station queues and rolling blackouts
plaguing the rest of the country, according to Reuters.
While intermittent fuel shortages have long troubled Venezuelans,
days-long waits for gasoline became routine this year. U.S.
sanctions, intended to force out socialist President Nicolas
Maduro, have made importing fuel more costly and complicated, while
refineries are largely shut due to underinvestment, the report
notes.
PDVSA has not commented on the recent wave of shortages, which have
added to the daily frustrations in a country suffering from
hyperinflation and a sixth straight year of recession, the report
relays.
But, the company sent six tweets touting fuel deliveries in various
parts of the South American country, the report relays.
"That's how to end the year," the company tweeted, using a bicep
emoji, alongside a picture of a fuel truck filling up in eastern
Anzoategui state, one of the country's largest crude-producing
regions, the report says.
Earlier this month, in El Tigre in central Anzoategui, where the
first successful oil well in the region was drilled in the 1930s,
lines of more than 200 cars waited at the city's handful of service
stations, which were all closed, to hold their spot for when the
next fuel truck arrived, the report notes.
"It is hard to believe that in our country, which is rich in oil,
there is no gasoline," said Daniel Guevara, a 33-year-old farmhand
at a nearby ranch who arrived at 4 a.m. to line up at a PDVSA gas
station, the report says.
Shortages grew after fuel imports fell to 135,000 barrels-per-day
(bpd) in November from 210,000 bpd in October, according to
Refinitiv Eikon tanker tracking data and internal PDVSA documents,
the report adds.
About PDVSA
Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the
Venezuelan state-owned oil and natural gas company, which engages
in exploration, production, refining and exporting oil as well as
exploration and production of natural gas. It employs around
70,000 people and reported $48 billion in revenues in 2016.
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.
Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign
asset. CITGO is majority-owned by PDVSA. CITGO is a United
States-based refiner, transporter and marketer of transportation
fuels, lubricants, petrochemicals and other industrial products.
However, CITGO formally cut ties with PDVSA at about February 2019
after U.S. sanctions were imposed on PDVSA. The sanctions are
designed to curb oil revenues to the administration of President
Nicolas Maduro and support for the Juan Guaido-headed party.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week December 30 to January 3, 2019
-------------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
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
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
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 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
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 2020. 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 * * *