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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

          Wednesday, January 8, 2020, Vol. 21, No. 6

                           Headlines



A R G E N T I N A

ARGENTINA: Debt Do-Over Even Chancier Than Usual


B E R M U D A

NABORS INDUSTRIES: Fitch Affirms BB- IDR, Outlook Stable


B R A Z I L

BRAZIL: Over 70 Percent of Rural Properties Lack Internet Access
BRAZIL: Sao Paulo GDP Rises One Percent from September to October
SAMARCO MINERACAO: Rebuffs Creditors on Resumption of Debt Talks


C H I L E

LATAM AIRLINES: Delta Air Completes Purchase of 20% Stake


J A M A I C A

JAMAICA: BOJ Saw Weaker-Than-Expected Currency Take Up in Dec.
JAMAICA: Minister Expects Economic Growth to Return to Above 1%


P U E R T O   R I C O

BETTEROADS ASPHALT: Bankr. Court Denies Stay Motion Pending Appeal
BETTEROADS ASPHALT: Seeks to Hire Lugo Mender as Legal Counsel

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Debt Do-Over Even Chancier Than Usual
------------------------------------------------
Anna Szymanski at Reuters Breakingviews reports that Sovereign
debt's bad boy is back. Argentina, the eight-time defaulter, is on
the hook for around $100 billion of hard currency debt held in
private hands, just part of its hefty borrowings. The International
Monetary Fund may complicate new President Alberto Fernandez's
plans for a quick debt fix, with wonky new bond features making the
outcome even chancier than usual.

According to the report, the dwindling liquid cash reported by the
country's treasury won't even cover next year's roughly $10 billion
in private-lender interest, let alone principal. The Fernandez
administration, which took office on Dec. 10, has signaled it
prefers a so-called reprofiling to anything more drastic. That
normally means maturities would be pushed out a few years, but
interest rates and principal amounts due would be unchanged.

The IMF may nix this, notes Reuters. The fund gave Argentina a $57
billion credit facility in 2018. No rejig of government debt will
happen without its agreement. And its debt-sustainability analysis
is unlikely to deem this a simple liquidity issue, especially
factoring in the debtor's history, says the report.

So, a harsher restructuring is more likely, Reuters relays.
Citigroup has suggested that private lenders ought to be the
biggest losers, with some interest payments cut by about 65% and
maturities kicked out by around 10 years. Markets are also gloomy.
Argentina's benchmark U.S. dollar bond maturing in 2028 was trading
at around 40 cents on the dollar in early December.

Reuters also notes that further drama might come from a seemingly
boring source: new legal language. Argentina added so-called
single-limb collective-action clauses to recently issued debt.
These force owners of specific bonds to accept a deal approved in a
vote by 75% of holders of all issued bonds, making it harder for a
small group of creditors to hold out, as Elliott Management and a
few others famously did last time around. But a related clause says
a deal must be "uniformly applicable" to all parties, and this can
be interpreted in many ways.

Finally, the so-called pari passu clause -- the boogeyman of
Argentina's last restructuring, a provision traditionally
understood to give different bonds equal legal ranking -- could
even become an issue again, with new clarifying language apt to be
tested in U.S. courts, says Reuters. The only certainty is that the
outcome of the country's likely debt do-over will, once again,
change the wider sovereign debt landscape, it adds.

This is a Breakingviews prediction for 2020, notes the report.

                               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



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B E R M U D A
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NABORS INDUSTRIES: Fitch Affirms BB- IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings affirmed the Issuer Default Rating for Nabors
Industries, Ltd. and Nabors Industries, Inc. at 'BB-'. Fitch has
assigned a rating of 'BB-'/'RR4' to proposed offering of senior
unsecured guaranteed notes. The rating on the senior unsecured
priority guaranteed revolving credit facility due 2023 is affirmed
at 'BB'/'RR2'. Fitch has downgraded the rating on the senior
unsecured revolving credit facility due 2020 and the senior
unsecured notes to 'B+'/'RR5' from 'BB-'/'RR4' to reflect the
subordination to the proposed note issuance. The Rating Outlook is
Stable.

Nabors Industries, Inc.'s ratings reflect the company's favorable
asset quality characteristics, a global footprint that provides for
exposure to the international market with longer-term contracts,
and a positive FCF profile projected over the next few years, which
is expected to be used for debt reduction. This is offset by an
uneven recovery in the U.S. and international drilling rig markets,
reduced funding commitments, the need to address a looming maturity
wall and credit metrics that are weak for the current rating level.
Fitch recognizes that Nabors has taken positive steps to improve
its credit profile and enhance liquidity, including extending its
revolver, repurchasing debt, reducing capex spending and
significantly cutting its dividend. However, current industry
conditions are not expected to materially improve and capital
market support is uncertain.

The Stable Rating Outlook reflects the extension of debt maturities
by the proposed financing along with recent debt reduction efforts.
This is offset by continuing challenges for oilfield service
companies as E&P companies reduce capex and push for more
operational efficiencies. In addition, while the proposed
transaction addresses near-term refinancing risk, the capital
structure becomes more complex, thereby potentially limiting future
financing options. Fitch is also concerned that the impact on the
planned reduction in capex will have on maintaining and upgrading
its fleet. Lower than expected FCF in 2020, a reduction in
liquidity capacity, or the inability to close on the proposed
transaction could result in a negative rating action.

KEY RATING DRIVERS

Proposed Financing Transaction: Nabors is announcing a tender for
up to $800 million of its 5.00% notes due 2020, 4.625% notes due
2021, 5.50% notes due 2023 and 5.10% notes due 2023. The offer will
give priority to the 5.50% 2023 notes followed by the 4.625% 2021
notes and the 5.00% 2020 notes, with no more than $50 million
tendered each for the 5.00% 2020 notes and 5.10% 2023 notes. The
tender will be funded through the proposed offering of $800 million
in senior guaranteed notes due 2026 and 2028. These notes will be
senior to the existing senior unsecured notes through the upstream
subsidiary guarantee, but subordinated to the guaranteed revolving
credit facility.

Looming Maturity Wall: Nabors has significant maturities coming up,
including $282 million in 2020, $635 million in 2021 and over $839
million in 2023. Management has been chipping away at the maturity
wall by applying free cash to open market bond repurchases. In
addition, Nabors has taken other steps to enhance FCF such as
reducing capex, cutting its dividend. Fitch believes the proposed
financing transaction will materially relieve the pressure of
refinancing the debt maturity wall.

U.S. Activity Has Weakened: Nabors' U.S. Lower 48 rig count
steadily increased to an average of 115 for second-quarter 2019
from a bottom of 44 in second-quarter 2016, but Fitch estimates
that it has since weakened to slightly over 100 for fourth quarter
2019. In addition to lower commodity prices, E&P companies are
becoming more cost conscious and efficient, which is leading to a
structural change in the drilling industry as fewer rigs are in
demand. Nevertheless, super-spec rigs, which include ancillary
technological offerings and other value-added services, continue to
have high utilization within the industry, and Nabors' U.S. fleet
has some of the best U.S. pad-capable rigs providing for relatively
resilient utilization and day rates. Nevertheless, Fitch believes
the expected continued reduction in E&P capex will likely lead to
lower rig utilization and day rates in 2020.

International Segment Provides Stability: Nabors' international
drilling segment exhibited resilient through-the-cycle results
consistent with the average international rig count. Rig counts are
less sensitive to commodity price changes due to longer contract
terms and a customer base of generally large public and sovereign
oil companies. This segment acts as a favorable hedge to the more
volatile U.S. rig count. International margins are slightly higher
than U.S. margins, and the longer term of the contracts provide for
more clarity on future utilization.

The company's international rig count has remained steady over the
past several years, although gross margins have declined from a
combination of sales of higher margin jack-ups, the expiration of a
couple of high margin rigs, reactivation costs and operational
challenges in Latin America. Fitch anticipates moderate growth over
the forecasted period. A portion of this growth will come from
leasing rigs to a 50/50 joint venture (JV) with the Saudi Arabian
Oil Company (Saudi Aramco), as well as new contracts in Mexico and
Kuwait. Challenges remain in Colombia, where eight rigs are up for
re-contracting in 2020, and in Venezuela, where three rig contracts
end by early 2021 and could be affected by sanctions.

Improving Ancillary Services Profitability: Investments in the
Drilling Solutions and Rig Technologies segments are beginning to
bear fruit. These segments allow Nabors to develop a portfolio of
value-added services and enhance its advanced drilling technology.
EBITDA has modestly increased despite the challenging conditions in
the drilling sector, and Fitch Drilling Solutions has generated
EBITDA $90 million for LTM ended third-quarter 2019 from $69
million in 2018.

Improving FCF: Fitch anticipates Nabors will be FCF positive in
2019-2021 based on the strong utilization of its super-spec rigs
and lower capex guidance. The company plans to reduce capex to $400
million in 2019 from $500 million in 2018, which Fitch estimates
will result in FCF of approximately $164 million. The agency
forecasts FCF slightly under $270 million in 2020 and slightly
under $300 million in 2021. Fitch estimates the company will remain
FCF positive over the forecast period, although this is coming at
the expense of material reductions in capex relative to historical
spending. Further debt reduction from FCF will need to weighed
against spending required to maintain and upgrade its fleet.

DERIVATION SUMMARY

Nabors is one of the largest global onshore rig operators with
significant U.S. and international footprints. The company is the
third-largest U.S. onshore rig operator, on a working-rig basis,
with Fitch estimating a 12% market share as of third-quarter 2019.
Helmerich & Payne, Inc. and Patterson-UTI Energy, Inc. have greater
U.S. onshore market shares at approximately 22% and 15%,
respectively, but do not have significant international operations.
Precision Drilling Corporation (B+/Stable) has a smaller U.S.
footprint than Nabors but has a roughly 25% market share of the
seasonally cyclical Canadian market.

Nabors' international onshore rig fleet provided it with a
favorable counterbalance to the more volatile U.S. rig count and
cash flow profile through the cycle. Fitch believes this
international first-mover and scale advantage, along with a
relatively better financial position compared with international
peer KCA Deutag Drilling Limited, will benefit the company over the
medium to long term. This was evident by the recent JV with Saudi
Aramco.

Fitch considers asset quality to be high for Nabors, as the
'SmartRig' is among the best U.S. pad-capable rigs. This feature
should help rigs maintain relatively resilient usage and day rates
through the cycle. The company, however, is in a relatively weaker
financial position than certain large U.S. onshore rig peers. This
was evident from recent liquidity enhancement actions, which may
lead the company to becoming capital-constrained and placing it at
a competitive disadvantage as the U.S rig replacement and
pad-optimal customer adoption cycle continues.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within the Rating Case for the Issuer

  -- A West Texas Intermediate (WTI) oil price of $57.50/bbl in
2019 and 2020 and a $55.00/bbl long-term price;

  -- A Henry Hub gas price of $2.50/mcf in 2019 and in the long
term;

  -- A U.S. lower 48 working rig count that grows to 109 in 2019
from 107 in 2018, and then levels thereafter;

  -- An international working rig count that declines to 89 in 2019
from 93 in 2018, and then grows modestly thereafter;

  -- A Canadian working rig count that declines to 11 in 2019 from
2018 levels of 17;

  -- Drilling Solutions EBITDA increases to $87 million in 2019
from $69 million in 2018 and remains flat thereafter;

  -- Capex of approximately $400 million in 2019 declining to the
$325 million to $375 million range in 2020 and 2021;

  -- The Saudi Aramco JV has no material cash flow effect over the
next few years;

  -- U.S. average corporate rig margins per day increase in 2019 to
$1,242 from $1,083 but declines in 2020;

  -- International average corporate rig margins per day decrease
to $1,326 in 2019 from $1,469 in 2018;

  -- The quarterly dividend remains $0.01/share with no additional
shareholder actions contemplated in the near term.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action

  - Mid-cycle debt/EBITDA of below 3.0x on a sustained basis;

  - Lease-adjusted FFO-gross leverage less than 4.0x;

  - A demonstrated ability to address the upcoming maturity wall
without reducing overall liquidity.

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  - Failure to manage FCF, reducing liquidity capacity and
increasing gross debt levels;

  - Increasing refinancing risk impeding the ability to address the
maturity wall;

  - Structural deterioration in rig fundamentals resulting in
weaker than expected financial flexibility;

  - Mid-cycle debt/EBITDA above 4.0x on a sustained basis;

  - Mid-cycle lease-adjusted FFO-gross leverage greater than 5.0x.

Fitch has lowered the leverage thresholds given weaker industry
conditions and uncertainty in the capital markets for oilfield
service issuers. Fitch may tighten the leverage thresholds further
over time if the FCF profile changes in an adverse way.

LIQUIDITY AND DEBT STRUCTURE

Near-Term Liquidity Sufficient: Nabors had $397 million of cash and
short-term investments as of Sept. 30, 2019, including $273 million
held in the SANAD JV in which Nabors did not have direct access to
the cash. The company has two credit facilities: An unsecured 2012
$666.25 million unsecured credit facility that matures July 14,
2020 and a $1.014 billion 2018 revolving credit facility that
matures Oct. 11, 2023, or, July 19, 2022 if any of the 5.5% senior
notes due in January 2023 are outstanding as of that date. There
was $455 million outstanding on the 2012 revolver and none
outstanding on the 2018 revolver. The 2018 revolver is guaranteed
by Nabors subsidiaries; however, the 2012 revolver does not have a
similar guarantee.

Fitch estimates liquidity pro forma for the proposed financing is
$682 million, which excludes the 2012 revolver that matures in
2020, with the amount outstanding on that revolver moving to the
2018 revolver.

December 2019 Credit Amendment: On Dec. 13, 2019, Nabors amended
its 2018 revolving credit facility that included reducing the
commitment from $1.27 billion to $1.014 billion, changing the
financial maintenance covenant to net debt/EBITDA requirement of no
greater than 5.5x, reducing the general lien basket, and allowing
the ability to repay up to $150 million of the 2025 notes, among
other changes.

Impending Maturity Wall: The company has a significant amount of
debt maturing over the next few years with $282 million due in 2020
(excluding the $455 million on the 2020 credit facility that is
expected to be refinanced on the 2023 facility), $635 million due
in 2021 and $839 million due in 2023. The proposed refinancing
should allow the company to greatly reduce this risk. Under the
2018 credit agreement, Nabors has the ability to refinance the 2020
and 2021 notes with proceeds from the revolving credit facility.
However, the use of the revolver for the later-dated notes is
restricted up to the $150 million basket for the 2025 notes, as the
company will be reliant on FCF, new unsecured notes or equity.
Additional first-lien capacity is restricted to $150 million.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
Environmental, Social and Governance (ESG) credit relevance is a
score of '3' - ESG issues are credit neutral or have only a minimal
credit impact on the entity, either due to their nature or the way
in which they are being managed by the entity.



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B R A Z I L
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BRAZIL: Over 70 Percent of Rural Properties Lack Internet Access
----------------------------------------------------------------
Arkady Petrov at Rio Times Online reports that internet access in
the countryside is one of the main challenges of Brazilian
agribusiness.  According to the last 2017 Agribusiness Census, over
70 percent of rural properties are not connected, the report
notes.

The report relays that according to the Brazilian Institute of
Geography and Statistics (IBGE), in charge of the Census:

  -- Brazil has 5.07 million rural farms;

  -- 71.8 percent do not have access to the internet (3.64 million
properties), which hampers the use of new technologies in one of
the main sectors of the economy.

The IBGE considers rural farms as areas where agricultural
production occurs as an income activity, 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.

BRAZIL: Sao Paulo GDP Rises One Percent from September to October
-----------------------------------------------------------------
Arkady Petrov at Rio Times Online reports that Brazil reports that
Sao Paulo's economy is moving fast towards detaching itself from
the national Gross Domestic Product (GDP).

From September to October alone, Sao Paulo State's GDP grew one
percent in a comparison free of seasonal effects, according to data
from the SEADE Foundation, which also recorded a 5.2 percent
increase over October last year, according to Rio Times Online.
With the October results, the average Sao Paulo GDP growth
projection for 2019 was revised from 2.1 to 2.6 percent.

Sao Paulo's GDP growth in October was determined by a three percent
increase in industrial activity and a 0.8 percent rise in services,
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.

SAMARCO MINERACAO: Rebuffs Creditors on Resumption of Debt Talks
----------------------------------------------------------------
Pablo Rosendo Gonzalez at Bloomberg News reports that Samarco
Mineracao SA has rejected creditors' formal request to resume talks
to restructure its defaulted debt, signaling heightened risks for
bond holders, according to people with direct knowledge of the
situation.

The Brazilian iron ore venture between BHP Group and Vale SA said
it has yet to firm up its business plan, according to Bloomberg
News.  And without that, the company argues that it will be at a
disadvantage if it were to resume talks that have been put on hold
for almost a year on its $2.9 billion in defaulted debt, the people
said, Bloomberg News notes.

Bloomberg News says that Samarco has said it will restart iron ore
mining in the second half of this year after securing all the
permits required by authorities.  Operations have been halted since
a waste dam collapse in 2015 that killed 19 people, curtailing the
company's ability to meet its obligations to creditors, Bloomberg
News relates.

The continued delay in talks to restructure the debt may antagonize
Samarco's creditors, the people said, Bloomberg News notes.  That's
bad news for holders of the company's $2.2 billion in bonds
maturing 2022 and 2024 that have fallen to 66 to 69 cents,
Bloomberg News relates.  The company has been in default on these
obligations for almost four years, Bloomberg News notes.

Samarco estimates production to hit as high as 8 million metric
tons per year in 2020 and reach full capacity of about 24 million
tons of pellets by around 2030, Bloomberg News notes.

Negotiations for the restructuring of the defaulted debt were put
on hold at the end of January 2019, when Vale, which owns half of
the venture, suffered an even worse disaster at a mine in
Brumadinho, also in the state of Minas Gerais, Bloomberg News
discloses.  That spurred heightened scrutiny of applications for
environmental permits by regulators, Bloomberg News adds.

As reported in the Troubled Company Reporter-Latin America on June
1, 2017, S&P Global Ratings said it affirmed then withdrew its 'D'
(default) issuer and issue-level ratings on Samarco Mineracao S.A.
and its senior unsecured debt at the issuer's request.



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C H I L E
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LATAM AIRLINES: Delta Air Completes Purchase of 20% Stake
---------------------------------------------------------
RJR News reports that Delta Air Lines has completed its purchase of
a 20% stake in LATAM Airlines, formerly LAN Airlines S.A. and Lan
Chile,, wrapping up one of the surprise aviation deals of 2019.

LATAM is a member of Oneworld and an associate of Delta's
arch-rival, American Airlines, according to RJR News.

The deal is putting that relationship in jeopardy, the report
notes.

The Delta/LATAM deal was part of a wider strategy by Delta Air
Lines to make equity investments in key airlines around the world,
the report relays.

                        About LATAM Airlines

LATAM Airlines, formerly LAN Airlines S.A. and Lan Chile, is an
airline based in Santiago, Chile, and is one of the founders of
LATAM Airlines Group, Latin America's largest airline holding
company.

As reported in the Troubled Company Reporter-Latin America on
Feb. 14, 2019, Fitch Ratings has assigned a final rating of
'B+'/'RR4' to LATAM Airlines Group S.A.'s USD600 million unsecured
notes issued through its fully owned subsidiary LATAM Finance
Limited. The assignment of the final ratings follows the receipt of
documents confirming the information already received. The final
ratings are the same as the expected rating assigned to the senior
unsecured notes on Jan. 28, 2019.



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J A M A I C A
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JAMAICA: BOJ Saw Weaker-Than-Expected Currency Take Up in Dec.
--------------------------------------------------------------
RJR News reports that the Bank of Jamaica (BOJ) is reporting that
currency take up during the holiday period was weaker than
expected.

The central bank projected that financial institutions would take
up about $7.3 billion, according to RJR News.

However, during the last five work days of December, the BOJ issued
only $2.9 billion to financial institutions, the report notes.

There is normally a stronger demand for currency during December
due to increased spending, the report relays.

However, this year the demand fell to the lowest in more than a
decade, 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.

JAMAICA: Minister Expects Economic Growth to Return to Above 1%
---------------------------------------------------------------
RJR New reports that Finance Minister Dr. Nigel Clarke said he
expects economic growth in the 2020/2021 financial year to return
to levels above one per cent.

In a release, Dr. Clarke said the government will continue to use
all levers at its disposal to elevate levels of growth across the
medium term, according to RJR News.

Dr. Clarke said Jamaica's economy is showing signs of resilience
given the economy's modest expansion, despite external economic
shocks, in the third quarter of 2019, the report notes.

                        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.



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P U E R T O   R I C O
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BETTEROADS ASPHALT: Bankr. Court Denies Stay Motion Pending Appeal
------------------------------------------------------------------
Judge Enrique S. Lamoutte of the U.S. Bankruptcy Court for the
District of Puerto Rico denied the motion for stay pending appeal
filed by involuntary debtors Betteroads Asphalt, LLC and
Betterecycling Corporation.

The involuntary debtors have filed the motion for stay after
seeking to appeal the opinion and order of the Bankruptcy Court
entered on Oct. 11, 2019, that denied the alleged debtors' motion
to dismiss the involuntary petition filed by several petitioning
creditors, and concluding that the involuntary petition was not
filed in bad faith.

On June 9, 2017, an involuntary petition was filed against the
alleged debtors by:

     (1) lenders Firstbank Puerto Rico, Banco Santander de Puerto
Rico, the Economic Development Bank for Puerto Rico and Banco
Popular de Puerto Rico, as administrative agent,

     (2) Sargeant Marine, Inc. and Sargeant Trading LTD,

     (3) Facsimil Paper Connection, Inc.,

     (4) Champion Petroleum, Inc.,

     (5) Control Force, Corp., and

     (6) St. James Security, Inc.

The involuntary debtors request that the Chapter 11 proceedings be
stayed until the resolution of the pending appeals based on the
following arguments:

     (i) the notice of appeal deprives the bankruptcy court of
jurisdiction to entertain matters of a Chapter 11 case;

    (ii) in the alternative, there is a "substantial possibility"
of the involuntary debtors' success on the merits because, absent
said relief, irreparable harm will occur; and

   (iii) the involuntary debtors have proffered a reasonable bond
and sufficient for the requested relief in the event the Court
fails to dispense the involuntary debtors from such condition for
granting the stay remedy.

On November 11, 2019, the petitioning creditors filed a joint
opposition to the debtors' motion for stay pending appeal arguing,
among others, that (i) the involuntary debtors are not requesting
relief to preserve the issues on appeal but to suspend all of the
Chapter 11 proceedings and preclude the court from administering
these cases and parties from enforcing any rights available under
chapter 11; and that (ii) the divestiture doctrine applies to
prevent a trial court from amending and modifying the issues on
appeal while they are on appeal. It does not provide for a stay of
proceedings.

On November 15, 2019, the involuntary debtors filed their reply to
petitioning creditors' joint opposition to motion for stay pending
appeal.

          Series of Discovery Schedule Motions

The involuntary debtors and the lenders filed a joint motion on
discovery schedule on June 30, 2017, pursuant to which the parties
informed the court on the agreed discovery schedule relating to
contested matters regarding the involuntary petitions.

The Lenders sought to exclude broad and disproportionate discovery
on allegations of bad faith by the lenders and other petitioning
creditors who commenced the involuntary proceedings and on certain
counter claims filed against the Debtors in pending local court
litigation by filing a motion for protective order limiting scope
of discovery for the contested matters relating to the motion to
appoint a trustee and the involuntary petitions on August 3, 2017.

On August 30, 2017, the Lenders and the involuntary debtors filed
an amended joint motion on discovery schedule, and on November 7,
2017, the parties filed the second amended joint motion on
discovery schedule and request for status conference hearing.

Thereafter, the court in its opinion and order entered on November
30, 2018, held that:

    (i) the Petitioning Creditors have satisfied the three prong
requirement for filing an involuntary petition;

   (ii) bad faith is an independent cause for dismissal of an
involuntary petition under 11 U.S.C. Sec. 303(b); and

  (iii)  the alleged Debtors have failed to show that dismissal
pursuant to Sec. 305(a)(1) abstention is in the best interest of
both the creditors and the debtor.

The court also determined that an evidentiary hearing would be
scheduled to consider whether the involuntary petitions were filed
in bad faith, that is, for an improper purpose that constitutes an
abuse of the bankruptcy process.  Thereafter, the Court set an
evidentiary hearing for May 23, 2019 regarding the involuntary
debtors' motions to dismiss the involuntary petitions and the
oppositions thereto.

In the intervening period prior to the May 23, 2019 hearing, the
lenders and the alleged debtors filed a joint motion on discovery
schedule, and an amended joint motion on discovery schedule on
March 7, 2019 and March 26, 2019, respectively.

The Court rescheduled the evidentiary hearing set for May 23, 2019
to June 27, 2019 upon the joint request of the lenders and the
alleged debtors.  On April 9, 2019, the parties filed a joint
motion on second amended discovery schedule.  

On June 20, 2019, the petitioning creditors filed their joint
pretrial report in connection with the June 27, 2019 hearing, and
the day after, on June 21, 2019 the alleged Debtors filed their
preliminary pretrial report.

On June 26, 2019, the court entered an amended order in which it
addressed several of the motions regarding the discovery disputes
between Betteroads and Sargeant.  The Court concluded therein that
the improper purpose has not been clearly defined and as such is
unable to extend the scope of the alleged Debtor's discovery
requests to other affiliates and/or related entities.  The court
hereby grants Sargeant's omnibus reply to alleged debtor's motion
regarding discovery disputes requesting order to compel discovery
and examination and answer to comply with order opposing motion to
quash or otherwise plead and for extension of time.  However, the
court ruled to allow for one deposition to be taken from an officer
of Sargeant that is knowledgeable regarding the events leading to
the filing of the involuntary petition.

Thereafter, evidentiary hearings were held on June 27, 2019; July
15, 2019, July 17, 2019, and July 18, 2019.  After the involuntary
debtors presented their case in chief, the petitioning creditors
moved for the denial of the involuntary debtors' request to dismiss
the petition pursuant to Fed. R. Bankr. P. 7052 because the
involuntary debtors failed to meet their burden of proving that the
involuntary petitions were filed in bad faith.

On October 11, 2019, the Court rendered its Opinion and Order:
   "[a]fter a careful review of the evidence presented by the
involuntary debtors, the court finds that the same does not
establish that the petitions were filed for an improper bankruptcy
purpose.  Seeking that other creditors join in filing an
involuntary petition in order to pursue debt collection in the
bankruptcy court is not an improper bankruptcy purpose.  In re
Basil Street Partners, 477 B.R. 853.  The evidence presented showed
that the involuntary debtors had defaulted on their loan payments
and, that the lenders had engaged in active collection actions. The
discussions by and between the lenders, including the syndicate
lenders, and the advice provided by their legal counsel show that
the decision to file the involuntary petitions was more in the
nature of a studied business decision than an action to harass or
merely seek an alternate collection forum".

Consequently, the court determined that the involuntary petitions
were not filed in bad faith and an order for relief under Chapter
11 was entered subsequently.

                  The Appeal and Onwards

On October 24, 2019, the alleged debtors filed their notice of
appeal and statement of election by which they appeal the opinion
and order entered on October 11, 2019, which denied the alleged
debtors' motion to dismiss, and concluded that the involuntary
petitions were not filed in bad faith.

The involuntary debtors also appeal several interlocutory orders
and rulings which have become final upon the entry of the Oct. 11,
2019 order, including, among others, an Opinion and Order of
November 30, 2018 in which the court determined that the
Petitioning Creditors satisfied the three-prong requirement for
filing an involuntary petition pursuant to Section 303(b) of the
Bankruptcy Code.

On November 8, 2019, the lenders filed their notice of cross-appeal
in which they seek revision of the legal determination made in the
November 30, 2018 opinion and order, that bad faith is an
independent cause of dismissal of an involuntary petition under
Section 303(b).

On November 4, 2019, the involuntary debtors filed a motion for
stay pending appeal.  The petitioning creditors filed their joint
opposition on November 11, 2019.  The alleged debtors filed their
reply to the petitioning creditors' joint opposition to the motion
for stay pending appeal on Nov. 15, 2019.

The involuntary debtors contend that the bankruptcy court does not
have jurisdiction to proceed with a Chapter 11 case when those
aspects of the case are deeply related to the appeal.  The
involuntary debtors raised the point, among others, that (i) ". .
.
it is precisely whether the door to a Chapter 11 will be opened or
should remain closed what is explicitly at stake and under review
at the district court;" (ii) ". . . any execution and/or scheduling
of Chapter 11 tasks and reliefs grounded in an order for relief
issued as a result of an opinion and order, when both are under
review, will be intimately related to the matters specifically
defined in the appeal and will certainly interfere with and
effectively circumvent the alleged debtor's right to the appeal
process.  The alleged debtors contend that the Chapter 11
proceeding should be stayed as a matter of right while the pendency
of the appeal for lack of jurisdiction, without the imposition of
any other requirement."

The petitioning creditors contend that the involuntary debtors'
jurisdictional argument is unfounded.  The petitioning creditors
alleged that the involuntary debtors are not requesting relief to
preserve the issues on appeal, but that they are requesting that
the court suspend all proceedings that may arise in these chapter
11 cases and preclude the court from administering the same and the
parties from enjoining any rights available under chapter 11.  The
petitioning creditors also argued that the divestiture doctrine
prevents a trial court from amending or modifying the issues on
appeal while they are on appeal.  It does not provide for a stay of
proceedings as requested by the involuntary debtors.

According to the petitioning creditors, proceeding with the
administration and continuation of the Chapter 11 proceedings is,
at most, an 'enforcement' or 'implementation' of the entry of the
order for relief that would not implicate the divestiture doctrine,
as the Court would be doing nothing to modify the Discovery Orders,
the 2018 Opinion and Order, or the 2019 Opinion and Order."

In re Sabine, 548 B.R. at 680, the Court held that the divestiture
doctrine is not intended to 'cede control' of the conduct of a
Chapter 11 case to disappointed litigants.  Such a decision would
be contrary to Fifth Circuit precedent indicating that a narrow
interpretation [of divestiture doctrine] is normally appropriate In
re Weingarten, 661 F. 3d at 908.'" Neutra, Ltd. v. Terry (In re
Acis Capital Mgmt., L.P., 604 B.R. 484, 524 (Northern District of
Texas, 2019).  The court concludes that the Opinions and Orders and
legal issues therein do not divest this court of jurisdiction from
carrying forward with the administering of the involuntary cases.

The court, in its November 30, 2018 Opinion and Order, after
thoroughly analyzing the parties' position, aligned itself with the
holding of In re Forever Green Athletic Fields, Inc. 804 F.3d 328
(3rd Cir. 2015), in which the Third Circuit held that bad faith
serves as a basis for both dismissal and damages and supported its
position on the good faith filing requirements.  In In re Forever
Green Athletic Fields, Inc., the Third Circuit employed a "totality
of circumstances" standard for determining bad faith pursuant to
Section 303.

The Third Circuit in In re Forever Green Athletic Fields, Inc.,
explained the reasoning for employing the totality of the
circumstances test as follows:  "[w]e adopt the totality of
circumstances test standard for determining bad faith under Section
303.  This standard is most suitable for evaluating the myriad ways
in which creditors filing an involuntary petition could act in bad
faith.  It also is the same standard we apply when reviewing
allegations that a debtor filed a voluntary petition in bad faith.
. . . In conducting this fact-intensive review, courts may consider
a number of factors, including, but not limited to, whether: the
creditors satisfied the statutory criteria for filing the petition;
the involuntary petition was meritorious; the creditors made a
reasonable inquiry into the relevant facts and pertinent law before
filing; there was evidence of preferential payments to certain
creditors or of dissipation of the debtor's assets; the filing was
motivated by ill will or a desire to harass; the petitioning
creditors used the filing to obtain a disproportionate advantage
for themselves rather than to protect against other creditors doing
the same; the filing was used as a tactical advantage in pending
actions; the filing was used as a substitute for customary
debt-collection procedures; and the filing had suspicious timing In
re Forever Green Fields, Inc., 804 F. 3d at 336."

The involuntary debtors alleged that the involuntary petitions were
filed in fact seeking an equitable relief or a monetary and
litigation strategy, even in detriment of other potential
creditors, which is more evident upon their adherence and posture
of keeping these agreements confidential.

The court, however, did not find any improper purpose or bad faith
in the filing of the involuntary petitions.  As to the carveout
agreements regarding this particular purpose in an involuntary
petition, the court concluded that, "[s]eeking that other creditors
join in filing an involuntary petition in order to pursue debt
collection in the bankruptcy court is not an improper bankruptcy
purpose. In re Basil Street Partners, LLC, 477 B.R. 853." (Case
17-04156, Docket No. 520, pg. 9-10; case 17-04157, Docket No. 362,
pg. 9-10). The court's reasoning in In re Basil Street Partners,
LLC, for concluding that requesting other creditors to join the
involuntary petition does not constitute bad faith is based upon
the following, "[w]ith respect to Basil Street's charge that APL
orchestrated this case, the court notes that merely seeking out
other creditors to join in the petition does not give rise to a
finding of bad faith, unless such solicitation involved the use of
fraudulent statements, harassive conduct, or the exertion of undue
pressure. U.S. Fidelity & Guar. Co. v. DJF Realty & Suppliers,
Inc., 58 B.R. 1008, 1012 (N.D.N.Y. 1986)" Id. at 853.

The court finds that the involuntary debtors have failed to satisfy
the first prong of the stay pending appeal requirements which is
likelihood to succeed on the merits.

In view of the foregoing, the court holds that the divestiture
doctrine does not apply to the involuntary bankruptcy proceedings.


The court declines to address the issue of whether the involuntary
debtors should be required to post a bond at this stage in the
proceedings.

The opinion and order dated Dec. 6, 2019 is available at
https://www.leagle.com/decision/inbco20191209581 from Leagle.com.

Alexis A. Betancourt Vincenty, Lugo Mender Group LLC, 100 PR-165
Ste 501, Toa Alta, 00968, Puerto Rico, Wigberto Lugo Mender, Lugo
Mender & Co., 100 Carr. 165 Suite 501, Guaynabo, PR 00968-8052,
counsel for Betteroads Asphalt LLC, Alleged Debtor.

Alexis A. Betancourt Vincenty, Lugo Mender Group LLC, 100 Carr.
165
Suite 501, Guaynabo, PR 00968-8052, Wigberto Lugo Mender, Lugo
Mender & Co., 100 Carr. 165 Suite 501, Guaynabo, PR 00968-8052,
counsel for Betteroads Alphalt LLC, Debtor.

Gustavo A. Chico Barris, Ferraiuoli LLC, 221 Ponce de León
Avenue, 5th Floor, San Juan, Puerto Rico 00917, Sonia Colon Colon,
Ferraiuoli, LLC, 221 Ponce de León Avenue, 5th Floor, San Juan,
Puerto Rico 00917, Jordi Guso , Berger Singerman LLP, 350 East Las
Olas Boulevard, Suite 1000, Fort Lauderdale, FL 33301, Camille N.
Somoza, Ferraiuoli LLC, 221 Ponce de León Avenue, 5th Floor,
San
Juan, Puerto Rico 00917, counsel for Sargeant Trading Limited &
Sargeant Marine Inc., Petitioning Creditors.

Valerie M. Blay Soler, Marini Pietrantoni Muniz, LLC., Suite 900
250 Ave., Ponce de Leon, San Juan, PR 00918, Jonathan Camacho
Villamil, Marini Pietrantoni Muiz LLC, Suite 900, 250 Ave. Ponce de
Leon, San Juan, PR 00918, Ignacio Labarca Morales, Marini
Pietrantoni Muniz LLC, Suite 900, 250 Ave. Ponce de Leon, San Juan,
PR 00918, Luis C. Marini Biaggi, Marini Pietrantoni Muniz LLC,
Suite 900, 250 Ave. Ponce de Leon, San Juan, PR 00918, Mauricio O.
Muniz,  Marini Pietrantoni Muniz LLC, Suite 900, 250 Ave. Ponce de
Leon, San Juan, PR 00918, Carolina Velaz Rivero,  Marini
Pietrantoni Muniz LLC, Suite 900, 250 Ave. Ponce de Leon, San Juan,
PR 00918, counsel for Banco Popular De Puerto Rico, Economic
Development Bank For Puerto Rico & Banco Santander De Puerto Rico,
Petitioning Creditors.

Valerie M. Blay Soler, Marini Pietrantoni Muniz, LLC., Jonathan
Camacho Villamil, Marini Pietrantoni Muiz LLC, Fausto David Godreau
Zayas, Godreau & Gonzalez Law, Rafael A. Gonzalez Valiente, Godreau
& Gonzalez Law, Ignacio Labarca Morales, Marini Pietrantoni Muniz
LLC, Luis C. Marini Biaggi, Marini Pietrantoni Muniz LLC, Mauricio
O. Muniz Luciano, Marini Pietrantoni Muniz LLC & Carolina Velaz
Rivero, Marini Pietrantoni Muniz LLC, counsel for Firstbank Puerto
Rico, Petitioning Creditor.

Israel O. Alicea Luciano, Capital Center Building, Torre Sur, No.3
Arterial De Hostos Suite 702, Hato Rey, Puerto Rico, PR 00918,
Alexis Fuentes Hernandez , Fuentes Law Offices, LLC, counsel for
St. James Security Inc., Petitioning Creditor.

Alexis Fuentes Hernandez, Fuentes Law Offices, LLC, Cond. Pisos de
Don Juan, 405 San Francisco St., Suite 4-A, San Juan, PR 00901,
counsel for Facsimil Paper Connection, Inc., Petitioning Creditor.

Juan P. Rivera Roman, Juan P Rivera Roman Law Firm, PO Box 7498,
Ponce, PR 00732, counsel for Municipality of Guayanilla, 3rd Party
Plaintiff.

Manuel Fernandez Bared, Toro Colon Mullet Rivera & Sifre, 416 Ponce
de Leon Avenue, Union Plaza, Suite 311, San Juan, PR 00918-3430,
Linette Figueroa Torres , Toro Colon Mullet P.S.C., 416 Ponce de
Leon Avenue, Union Plaza, Suite 311, San Juan, PR 00918-3430& Nayda
Ivette Perez-Roman, Toro, Colon, Mullet, Rivera & Sifre, P.S.C.,
416 Ponce de León Avenue, Union Plaza, Suite 311, San Juan, PR
00918-3430, counsel for Bituven Puerto Rico, LLC, 3rd
Party Plaintiff.

                   About BetterRoads Asphalt
                and Betterecycling Corporation

BetterRoads Asphalt LLC produces warm mix asphalt. Its products are
used in airports, highways, neighborhoods, and environment
projects. Betterecycling Corporation produces gasoline, kerosene,
distillate fuel oils, residual fuel oils, and lubricants.  Both
companies are based in San Juan, Puerto Rico.

On June 9, 2017, alleged creditors commenced involuntary bankruptcy
petitions, under chapter 11 of the United States Bankruptcy Code
(Bankr. D.P.R. Case No. 17-04156), against Betteroads  Asphalt LLC,
under Case No. 17-04156-ESL and Betterecycling Corporation (Case
No. 17-04157-ESL).

On Nov. 30, 2018, the Court entered an "opinion and order"
including findings and concluding that, among other things, the
Petitioning Creditors have satisfied the three-prong requirement
for filing an involuntary petition.

On Oct. 10, 2019, after a five-day evidentiary hearing, the Court
entered an "opinion and Order" finding, among other things, that
the involuntary petitions were not filed for an improper bankruptcy
purpose or with bad faith.

On October 11, 2019, the Court entered the "order for relief".

BETTEROADS ASPHALT: Seeks to Hire Lugo Mender as Legal Counsel
--------------------------------------------------------------
Betteroads Asphalt LLC seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire 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
efforts, including the formulation of a plan of reorganization;

     c. negotiate with creditors to arrange a feasible plan of
reorganization;

     d. prepare legal papers; and

     e. appear before the court in which the Debtor asserts a
claim
or defense related to the bankruptcy case.

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 Betteroads Asphalt and Betterecycling Corp

Betteroads Asphalt LLC produces warm mix asphalt, which is used in
airports, highways, neighborhoods and environment projects.
Betterecycling Corporation produces gasoline, kerosene, distillate
fuel oils, residual fuel oils and lubricants.  Both companies are
based in San Juan, P.R.

On June 9, 2017, creditors commenced involuntary bankruptcy
petitions under Chapter 11 of the Bankruptcy Code against
Betteroads  Asphalt LLC (Bankr. D.P.R. Case No. 17-04156) and
Betterecycling Corporation (Bankr. D.P.R. Case No. 17-04157).  

On Oct. 11, 2019, the court entered the "order for relief" after
finding that the involuntary petitions were not filed for an
improper bankruptcy purpose or with bad faith.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

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