/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/200107.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, January 7, 2020, Vol. 21, No. 5 Headlines A R G E N T I N A ARGENTINA: Issues $1.3 Billion in Treasury Bills ARGENTINA: State, Businessmen and Workers Enter Social Pact B R A Z I L SEABRAS 1 BERMUDA: Files Voluntary Chapter 11 Bankruptcy Petition D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Dollar Close to The Rate Estimated for 2020 DOMINICAN REPUBLIC: Every $ That Oil Goes Up Will Cost Country $64M J A M A I C A JAMAICA: Phillips Challenges Critics to Minimum Wage Deal Proposal P U E R T O R I C O DESTINATION MATERNITY: Committee Hires Cooley LLP as Counsel LAS LOMAS: Case Summary & 20 Largest Unsecured Creditors MARINE ENVIRONMENTAL: Seeks More Time to File Bankruptcy Plan V E N E Z U E L A PETROLEOS DE VENEZUELA: Curacao Ends Refinery Contract with Firm - - - - - ================= A R G E N T I N A ================= ARGENTINA: Issues $1.3 Billion in Treasury Bills ------------------------------------------------ Hernan Nessi at Reuters reports that Argentina's new government announced the issuance of $1.326 billion of dollar-denominated Treasury Bills, to be directly subscribed by the central bank, according to a decree in the official Gazette. The issuance of the 10-year debt comes as the country's new Peronist President Alberto Fernandez looks to pay off creditors and stave off a damaging default, according to Reuters. Argentina, hit by a debt crisis since last year, is facing tough restructuring negotiations with creditors including the International Monetary Fund (IMF) over around $100 billion in sovereign debt which it is struggling to service, the report relays. The Treasury Bills will expire on Dec. 30 2029 with interest payable semi-annually, the report says. The rate will depend on the interest accrued by the central bank's foreign reserves and capped at the annual LIBOR rate minus one percentage point, the decree said, the report notes. A recently passed law to help revive Argentina's economy, Latin America's third largest, allows the government to issue up to $4.571 billion in similar dollar denominated bills, 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. ARGENTINA: State, Businessmen and Workers Enter Social Pact ----------------------------------------------------------- Gabriel Burin at Reuters reports that Argentina's new President Alberto Fernandez said that a social pact with businesses and trade unions sent a "strong message" to creditors including the IMF that the economy must be allowed to grow before the country can pay its debts. The broad agreement struck last week, a core plank of the new Peronist administration's plans to revive the economy and rein in inflation, gives Fernandez extra muscle in looming restructuring talks over around $100 billion in debt, according to Reuters. "It is the first time where businessmen, workers and the State come together to tell creditors that Argentina must first grow and then meet its obligations," Fernandez said in an interview with local station Radio 10, the report relays. "It's a very strong message for the Fund and for creditors," Fernandez added. Fernandez's economic team is facing negotiations with the International Monetary Fund and private bondholders over looming debt repayments, which the center-left leader has said the country is not currently in a position to pay, the report relays. He argues that Argentina must be allowed to revive its anemic economy, Latin America's third largest, to raise the funds needed to pay off creditors, the report notes. Fernandez added in the radio interview that the relationship with the IMF was positive and praised a "more realistic" stance from the Fund regarding the situation in Argentina, the report discloses. The IMF has said it shares Fernandez's goals for rebooting the economy, but still needs to know his concrete economic plans before discussing a debt restructuring, the report notes. Fernandez said he expects an IMF mission to visit but gave no precise date, the report relays. Amid creditor talks, Argentina honored payments on international bonds that expired at the end of last month, though it has postponed payments on local debt that had already been delayed under previous president Mauricio Macri, the report notes. 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 =========== SEABRAS 1 BERMUDA: Files Voluntary Chapter 11 Bankruptcy Petition ----------------------------------------------------------------- Seabras 1 Bermuda Ltd ("Parent") and Seabras 1 USA LLC ("OpCo" and, together with Parent, the "Companies") filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (the "Filings"). The Filings were made to ensure an orderly process to effectuate a new restructuring plan for Parent, while ensuring that the Company's customers will continue to be served as usual. Upon emergence from this process, the Companies expect to be well-positioned to aggressively pursue their combined business plan independent of the overhang caused by Parent's current challenges. Parent anticipates filing its proposed restructuring plan in the near term and working closely with its secured lenders to fashion a plan to address Parent's debt situation and emerge as a vibrant, healthy business. The Companies do not anticipate, nor do they wish to explore, any sale efforts through the processes contemplated by the Filings. The Companies expect to complete the process relating to the Filings within the next few months and to emerge within the second quarter of 2020, subject to all required approvals. Seaborn Networks ("Seaborn"), being the operator of the Companies' business, is not part of the Filings and continues to be the operator of the Companies' business. Seaborn is not owned by the Companies, but Seaborn is one of the indirect shareholders of the Companies. Seaborn's work in this regard is not expected to be impacted by the Filings; and the Companies expect that Seaborn will continue to provide all SG&A and Operations & Engineering services for the Companies. Seaborn itself has no borrowed money indebtedness and is a healthy business. Through the Filings process, Seaborn's management and workforce is expected to remain as it is today. Customers and suppliers should expect to work with all of the Companies' entities, and with Seaborn, as usual throughout the Filings process. The plan to be proposed by the Companies is not expected to contemplate any changes in business arrangements or activities for any of the Parent's subsidiaries, or for Seaborn, and all trade/vendor claims are expected to be paid in full. The Companies have also filed the customary motions as part of the Filings to compensate vendors as usual, maintain their usual programs for customers and partners, and otherwise operate their business as usual. Additional information will be available via https://seabornnetworks.com/seabras-restructuring/ The Companies are advised in their restructuring by Bracewell LLP and Appleby. About Seabras 1 Bermuda LLC and Seabras 1 USA LLC Seabras 1 Bermuda LLC, and its wholly owned subsidiary Seabras 1 USA LLC, together with their other subsidiaries, are the owners of a fiber optic cable system between New York USA and Sao Paulo Brazil known as Seabras-1. Seabras-1 itself is fully operated by Seaborn Networks, a leading developer-owner-operator of submarine fiber optic cable systems. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Dollar Close to The Rate Estimated for 2020 --------------------------------------------------------------- Dominican Today reports that the dollar is of vital importance for the Dominican economy since imports of products and raw materials are mainly made with this currency, impacting their local prices. Since last December, the exchange rate of the US currency registered a constant increase, at the end of 2019 at RD$52.96 per dollar, according to the official rate, published by the Central Bank, the report notes. At the beginning of last December, the currency was sold at RD$52.88, registering an interannual increase of RD$2.71, when compared to RD$50.17 that cost at the beginning of the same month of 2018, according to Dominican Today. The foreign currency was quoted during the first five days of last December at RD$52.88 per dollar, following its upward trend throughout the month, closing the year at a rate of RD$52.96, which has been maintained during the first three days of 2020, the report notes. For this year, the Government estimated that the average exchange rate of the dollar will be RD$53.56, an estimated depreciation of 4.5%, according to the Budget Law that will apply for the year 2020, the report relays. As estimated by the Government and the current rate of the dollar, during this year it is expected that the currency will only rise 0.6 Dominican cents, the report relates. Last September, the Central Bank had to intervene in the exchange market, with the injection of more than US$100 million, a month in which the exchange rate went from RD$51.32 to RD$52.40, the report recalls. During 2019, the average sales rate of the US currency was RD$51.30, according to the figures of the monetary institution, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. The Troubled Company Reporter-Latin America reported on April 4, 2019 that the Dominican Today related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic stands at BB- with stable outlook (2015). Moody's credit rating for Dominican Republic was last set at Ba3 with stable outlook (2017). Fitch's credit rating for Dominican Republic was last reported at BB- with stable outlook (2016). DOMINICAN REPUBLIC: Every $ That Oil Goes Up Will Cost Country $64M ------------------------------------------------------------------- Dominican Today reports that for the economist Henry Hebrard the rise in the price of crude oil is bad news starting the year, since unlike 2019 when the price was at US$45, today there is talk of an increase of US$4 above the US$59.10 contemplated in the 2020 budget. For every dollar the oil price goes up, "the impact is US$64 million, which means RD$3.3 billion or RD$13 billion additional in the oil bill, just for those four dollars," Hebrard said adding the increases they feel in fuels and inflation and brings a complication in government accounts due to the increase in the subsidy to the electricity sector, according to Dominican Today. Despite the complexity of the external sector, Hebrard believes that there are two elements that will help and it is the entrance of Punta Catalina and the end of the drought and the arrival of rains that feed the hydroelectric plants, the report notes. Collado Asks to be Attentive Miguel Collado Di Franco is more optimistic and suggests keeping an eye on the market, being vigilant and being cautious, the report notes. For the economist, it is necessary to wait and see how this situation unfolds, the report relays. Remember that last year there was a bombing in Saudi Arabia and therefore you have to see the real fundamentals, since there is an important supply of crude oil and there is more technology, with low demand, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. The Troubled Company Reporter-Latin America reported on April 4, 2019 that the Dominican Today related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic stands at BB- with stable outlook (2015). Moody's credit rating for Dominican Republic was last set at Ba3 with stable outlook (2017). Fitch's credit rating for Dominican Republic was last reported at BB- with stable outlook (2016). ============= J A M A I C A ============= JAMAICA: Phillips Challenges Critics to Minimum Wage Deal Proposal ------------------------------------------------------------------ RJR News reports that opposition Leader Dr. Peter Phillips is challenging critics who said his proposal to increase the minimum wage would leave many Jamaicans jobless to provide the evidence on which they are basing their claim. Dr. Phillips has said he will be pushing to have the minimum wage move from the current $7,000 per week to $12,500, according to RJR News. However, the proposal has been criticised, with several persons saying employers would not be able to afford such a sharp increase the report notes. Speaking with RJR News, Dr. Phillips said he has seen no evidence to support this prediction, adding that the implementation of his proposal could lead to economic growth. The Opposition Leader said he will be bringing his proposal to the House of Representatives for debate, the report adds. About Jamaica As reported in the Troubled Company Reporter-Latin America on Oct. 1, 2019, S&P Global Ratings, on Sept. 27, 2019, raised its long-term foreign and local currency sovereign credit ratings on Jamaica to 'B+' from 'B'. The outlook is stable. At the same time, S&P Global Ratings affirmed its 'B' short-term foreign and local currency sovereign credit ratings on the country. S&P Global Ratings also raised its transfer and convertibility assessment to 'BB-' from 'B+'. RJR News reported in June 2019 that Steven Gooden, Chief Executive Officer of NCB Capital Markets, warned that the increasing liquidity in the Jamaican economy might result in heightened risk to the financial market if left unchecked. This, he said, is against the background of the local administration seeking to reduce the debt to GDP to 60% by the end of the 2025/26 fiscal year, which will see Government repaying more than J$600 billion which will get back into the system, according to RJR News. ===================== P U E R T O R I C O ===================== DESTINATION MATERNITY: Committee Hires Cooley LLP as Counsel ------------------------------------------------------------ The Official Committee of Unsecured Creditors of Destination Maternity Corporation, and its debtor-affiliates, seeks authorization from the U.S. Bankruptcy Court for the District of Delaware to retain Cooley LLP as lead counsel to the Committee. Destination Maternity requires Cooley LLP to: (a) attend the meetings of the Committee; (b) review financial and operational information furnished by the Debtors to the Committee; (c) analyze and negotiate the budget and the terms of the Debtors' use of cash collateral; (d) assist in the Debtors' efforts market and sell their assets in a manner that maximizes value for creditors; (e) assist the Committee in negotiations with the Debtors and other parties in interest on the Debtors' proposed chapter 11 plan and/or exit strategy for these cases; (f) confer with the Debtors' management, counsel, and financial advisor and any other retained professional; (g) confer with the principals, counsel and advisors of the Debtors' lenders and equity holders; (h) review the Debtors' schedules, statements of financial affairs, and business plan; (i) advise the Committee as to the ramifications regarding all of the Debtors' activities and motions before this Court; (j) review and analyze the Debtors' financial advisors' work product and report to the Committee; (k) investigate and analyze certain of the Debtors' prepetition conduct, transactions, and transfers; (l) analyze the value of the go-forward business; (m) provide the Committee with legal advice in relation to the chapter 11 cases; (n) prepare various pleadings to be submitted to the Court for consideration; and (o) perform such other legal services for the Committee as may be necessary or proper in these proceedings. Cooley LLP will be paid at these hourly rates: Cathy Hershcopf Partner $1,185 Seth Van Aalten Partner $995 Cullen Speckhart Partner $995 Michael Klein Special Counsel $955 Lauren Reichardt Associate $825 Paul Springer Associate $670 Mollie Canby Paralegal $275 Cooley LLP will also be reimbursed for reasonable out-of-pocket expenses incurred. Cathy Hershcopf partner of Cooley LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors' chapter 11 petition, directors, officers or employees of the Debtors; and (c) does 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 Debtors, or for any other reason. Cooley LLP can be reached at: Cathy Hershcopf, Esq. COOLEY LLP 55 Hudson Yards New York, NY 10001 Tel: (212) 479-6000 About Destination Maternity Corporation Destination Maternity is a designer and omni-channel retailer of maternity apparel in the United States, with the only nationwide chain of maternity apparel specialty stores, as well as a deep and expansive assortment available through multiple online distribution points, including our three brand-specific websites. As of August 3, 2019, Destination Maternity operated 937 retail locations, including 446 stores in the United States, Canada and Puerto Rico, and 491 leased departments located within department stores and baby specialty stores throughout the United States and Canada. It also sells merchandise on the Internet, primarily through Motherhood.com, APeaInThePod.com and DestinationMaternity.com websites. Destination Maternity sells merchandise through its Canadian website, MotherhoodCanada.ca, through Amazon.com in the United States, and through websites of certain of our retail partners, including Macys.com. Destination Maternity's 446 stores operate under three retail nameplates: Motherhood Maternity(R), A Pea in the Pod(R) and Destination Maternity(R). It also operates 491 leased departments within leading retailers such as Macy's(R), buybuy BABY(R) and Boscov's(R). Generally, the company is the exclusive maternity apparel provider in its leased department locations. Destination Maternity and its two subsidiaries sought Chapter 11 protection (Bankr. D. Del. Lead Case No. 19-12256) on Oct. 21, 2019. As of Oct. 5, 2019, Destination Maternity disclosed assets of $260,198,448 and liabilities of $244,035,457. The Hon. Brendan Linehan Shannon is the case judge. The Debtors tapped Kirkland & Ellis LLP as legal counsel; Greenhill & Co., LLC as investment banker; Landis Rath & Cobb LLP as local bankruptcy counsel; Hilco Streambank LLC as intellectual property advisor; Prime Clerk LLC as claims agent; and Berkeley Research Group, LLC as restructuring advisor. BRG's Robert J. Duffy has been appointed as chief restructuring officer. Andrew Vara, acting U.S. trustee for Region 3, on Nov. 1, 2019, appointed five creditors to serve on the official committee of unsecured creditors in the Chapter 11 cases of Destination Maternity Corporation and its affiliates. The Committee hires Cooley LLP as lead counsel. Cole Schotz P.C., as Delaware and conflict counsel. Province, Inc., as financial advisor. LAS LOMAS: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Las Lomas Construction, SE Carr 392 KM 2.2 Sect Cerro Alto Bo. Candelaria Lajas, PR 00667 Business Description: Las Lomas Construction is a general contractor based in Lajas, Puerto Rico. It previously sought bankruptcy protection on May 26, 2011 (Bankr. D.P.R. Case No. 11-04774). Chapter 11 Petition Date: January 2, 2020 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 20-00007 Debtor's Counsel: Maria Soledad Lozada, Esq. LOZADA LAW & ASSOC PO Box 9023888 San Juan, PR 00902-3888 Tel: 787-533-1400 E-mail: msl@lozadalaw.com Estimated Assets: $1 million to $10 million Estimated Liabilities: $1 million to $10 million The petition was signed by Pedro LLuch Martinez, president. A copy of the petition containing, among other items, a list of the Debtor's 20 largest unsecured creditors is available at PacerMonitor.com for free at: https://is.gd/88HYqS MARINE ENVIRONMENTAL: Seeks More Time to File Bankruptcy Plan ------------------------------------------------------------- Marine Environmental Remediation Group, LLC and MER Group Puerto Rico LLC asked the U.S. Bankruptcy Court for the District of New Jersey to extend the period during which only the companies can file a Chapter 11 plan to April 27 and the period to solicit acceptances for the plan to June 24. The companies need additional time to negotiate a plan and complete the mediation of three central issues to their bankruptcy cases: (1) the companies' multi-million dollar claims against Travelers Property Casualty Company of America; (2) the companies' multi-million dollar claims against Starr Indemnity & Liability Company, and (3) the companies' objections to Starr's asserted liens on more than $1 million of cash proceeds from the sale of their vessel. The resolution of these matters or the inability to resolve them if mediation is not successful will substantially affect the companies' finances and formulation of a plan, according to court filings. About Marine Environmental MER Group -- http://www.mergroupllc.com-- provides ship recycling services at facilities in the United States and Europe. MER claims to have pioneered an environmentally-sensitive process of dismantling obsolete vessels that meets or exceeds all U.S. EPA, OSHA, state and Commonwealth regulations. Marine Environmental Remediation Group LLC and affiliate MER Group Puerto Rico LLC filed voluntary petitions seeking relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 19-18994) on May 1, 2019. In the petitions signed by Martin Vulaj, CEO, the Debtors' estimated $1 million to $10 million in both assets and liabilities. The case is assigned to Judge Vincent F. Papalia. Jeffrey D. Vanacore, Esq., at Perkin Coie LLP, represents the Debtors. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Curacao Ends Refinery Contract with Firm ---------------------------------------------------------------- Kallanish Energy reports that Venezuela's state-owned oil company, Petroleos de Venezuela, S.A. (PDVSA), will no longer operate Curacao's Isla refinery under a transition period, after its long-term lease contract expired. According to officials of the Caribbean island, PDVSA rejected the government's proposal to continue operating the 335,000-barrel-per-day refinery for a transition period of up to six months. Instead, PDVSA had sought an extension of 12 months, the report notes. State refining company Refineria de Koursou (RdK) and the Klesch Group on Dec. 22 signed an asset purchase and sale agreement covering Isla refinery, the utilities plant CRU and the Bullenbay oil terminal, according to Kallanish Energy. The parties are now working to fulfil conditions and potentially close the deal in the second quarter of 2020, RdK said, in a joint press statement, the report relays. The agreement signed with Klesch "forms the basis for a long-term relationship between the parties. The remaining documents will be finalized and signed in the coming months," it added. The Curacao Chronicle reported unions representing the refinery employees rejected the proposal presented by RdK, the report notes. Under the plan, all employees of Isla would be offered an employment contract through the CRU for a transition period of six months, until the facilities were sold to the new owner, the report says. The unions, however, are reportedly seeking a transition period of 12 months -- like PDVSA had originally requested, the report discloses. Curacao prime minister Eugene Rhuggenaath was quoted as saying: "the government will do everything in its power to achieve a transition period that is as peaceful as possible," 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. ********* 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 * * *