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/raid1/www/Hosts/bankrupt/TCRLA_Public/200109.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 Thursday, January 9, 2020, Vol. 21, No. 7 Headlines A N T I G U A A N D B A R B U D A LIAT: Former PM Owen Arthur is New Chairman A R G E N T I N A ARGENTINA: S&P Ups LT Sovereign Credit Rating to CCC-, Outlook Neg. GAUCHO GROUP: HBH to Prepay up to $400K Under Expense Sharing Deal B E R M U D A NABORS INDUSTRIES: Moody's Rates New $800MM Sr. Unsec. Notes Ba2 NABORS INDUSTRIES: S&P Rates New Unsecured Guaranteed Notes 'BB-' B R A Z I L BRAZIL: Corn Exporters Concerned About Effect of US-Iran Crisis ELETROBRAS: S&P Raises SACP to 'bb-' on Improved Liquidity C H I L E GEOPARK LTD: S&P Assigns 'B+' Rating to New Senior Unsecured Bonds UBIOME INC: Psomagen-Macrogen Consortium Acquires Patents, Data D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Loses 49% in Contraband From Haiti DOMINICAN REPUBLIC: Most Remittances Go to a Few Regions P U E R T O R I C O ASOCIACION DE PROPIETARIOS: Plan Outline Hearing Reset to Feb. 20 BANCO POPULAR DE PUERTO RICO: S&P Withdraws 'B' Short-Term ICR V E N E Z U E L A VENEZUELA: Oil Exports Fell by a Third in 2019 as US Sanctions Bit - - - - - ===================================== A N T I G U A A N D B A R B U D A ===================================== LIAT: Former PM Owen Arthur is New Chairman ------------------------------------------- Barbados Today reports that Former Prime Minister Owen Arthur will be the next Chairman of regional airline LIAT Ltd., formerly known as Leeward Islands Air Transport or LIAT, Antigua and Barbuda Prime Minister Gaston Browne disclosed. There has been no word from Prime Minister Mia Mottley so far regarding the appointment, according to Barbados Today. Arthur replaces Dr. Jean Holder, also from Barbados, who resigned late last year, the report notes. "You would recognize there will be a new chairman. In fact, former Prime Minister of Barbados Owen Arthur, he will take over as the new chairman of LIAT," the prime minister said, the report relays. He said Arthur is the right man for the job given his history of fighting for LIAT, the report notes. "And I have to tell you, I don't think there could be any better candidate," Browne said, the report relays. "Owen Arthur would have spent a large amount of his prime ministerial equity ensuring the survival of LIAT, and now that it is at the crossroads again, I think that Owen is the right person to lead LIAT out of these difficulties," the report notes. Browne said there will be personnel and other changes but did not go into detail, the report says. "We have come to a consensus on the way forward so a lot of the differences that existed we've been able to resolve them and I believe LIAT has a very bright future ahead of it," Browne said, the report discloses. He also said LIAT will be capitalised with the US$15 million loan Antigua obtained from the ALBA Bank as well as $5 million from Dominica "and the others will put in a few millions," the report says. He said the plan is to raise between $20 to 30 million to recapitalize the airline, the report adds. About LIAT LIAT Ltd., formerly known as Leeward Islands Air Transport or LIAT, is an airline headquartered on the grounds of V. C. Bird International Airport in Antigua. It operates high-frequency inter-island scheduled services serving 15 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. The airline is owned by seven Caribbean governments, with three being the major shareholders: Barbados, Antigua & Barbuda and St. Vincent and the Grenadines along with Dominica(94.7 %); other Caribbean governments, private shareholders and employees (5.3%). In the last few years, LIAT has been challenged with financial difficulties, often needing additional funding as the airline dealt with the high cost of operations. In November 2016, the Barbados government defended LIAT's operations, even as opposition legislators called for a cessation of the business. In early 2015, LIAT offered early retirement packages to employees in efforts to downsize. In 2014, LIAT knew it had to deal with unprofitable routes to make operations viable. In the third quarter of 2013, the airline's top management was shaken, with news Chief Executive Officer Captain Ian Brunton's sudden resignation. LIAT's current chief executive officer is Julie Reifer-Jones, chairman is Jean Holder, and chief financial officer is Rojer Inglis. Dr. Ralph Gonsalves, prime minister of St. Vincent & the Grenadines, serves as chairman of LIAT shareholders. ================= A R G E N T I N A ================= ARGENTINA: S&P Ups LT Sovereign Credit Rating to CCC-, Outlook Neg. ------------------------------------------------------------------- On Jan. 7, 2020, S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Argentina to 'CCC-' from 'CC'. The outlook on the long-term sovereign credit ratings is negative. We also took the following rating actions: -- S&P raised the long-term issue ratings to 'CCC-' from 'CC'; -- S&P affirmed its short-term sovereign credit ratings at 'C', -- S&P affirmed its transfer and convertibility assessment on Argentina at 'B-'; and -- S&P raised its national scale rating on Argentina to 'raCCC-' from 'raCC'. Outlook The negative outlook reflects the prominent downside risks to timely and full payment of debt per S&P's criteria over the short term amid stressed economic and financial market dynamics. The sovereign's access to liquidity is likely to remain constrained as the Fernandez Administration outlines its economic policies while engaging in dialogue with bondholders, bankers, and the International Monetary Fund. S&P said, "We could lower the ratings once the government finalizes terms with bondholders for a potential debt restructuring, which we expect is likely to be characterized as a distressed debt exchange based on our methodology. It could entail an extension of maturities, which will not be compensated by the issuer, or a reduction in the face value of debt. Additionally, we could lower the ratings if economic and financial stresses further threaten timely debt service or the sovereign misses a debt payment. "We could raise the ratings following implementation of a debt restructuring and as policy signals and execution start to successfully turn around or stabilize private-sector confidence, market turbulence subsides, and the government regains access to market financing." Rationale S&P said, "After an unilateral extension of the maturity of U.S. dollar-denominated short-term paper (Letes) held by private-sector creditors on Dec. 19, 2019, we lowered the foreign currency long-term sovereign credit rating on Argentina to 'SD' from 'CCC-' and the short-term rating to 'D' from 'C'. Afterward, the government conducted two auctions of peso-denominated debt on Dec. 20 and Dec. 26 for about Argentine peso (AR$) 19 billion and paid the Bopomo (a locally issued peso-denominated bond: Bono a Tasa de Política Monetaria) due Dec. 23 for AR$24 billion. On Dec. 30, we raised our foreign currency long-term sovereign credit rating on Argentina to 'CC' from 'SD' and the short-term rating to 'C' from 'D'. "In the rating action on Dec. 30, we misapplied our criteria "Post-Default Ratings Methodology: When Does S&P Global Ratings Raise A Rating From 'D' Or 'SD'?" by assigning a 'CC' rating to the sovereign. This criteria does not permit us to initially raise a rating directly from 'SD/D' to 'CC'. To correct our criteria misapplication and more precisely incorporate our view of the administration's willingness and commitment to pay, we are now raising our long-term ratings to 'CCC-', a rating that is based on "Criteria For Assigning 'CCC+', 'CCC', 'CCC-', And 'CC' Ratings" and is consistent with the post-default criteria application. "The 'CCC-' rating incorporates evidence of the administration's willingness and commitment to make upcoming debt service payments, subject to a 'CCC-' level of risk, while it works on a broader economic and debt strategy, rather than maintaining the rating at 'SD'. Besides paying peso-denominated debt, the government also paid about US$900 million on its Centennial Bond and Discount Bond (in local and New York law) at the end of December and early January. We expect the administration to advance with a restructuring plan for its long-term debt with the private sector in the coming months, though the timing remains unclear and the terms of which are unknown. "We affirmed our transfer and convertibility assessment at 'B-'. The transfer and convertibility assessment remains higher than the sovereign rating because the government continues to signal its intention that tightened capital controls will not apply to principal and interest payments for nonsovereign entities. "Our credit ratings on Argentina reflect its unfavorable debt dynamics, a volatile exchange rate (which has sharply depreciated recently), high inflation, and a deep economic recession. They also reflect the deterioration of its financial environment and strained investor confidence. These factors have limited the sovereign's capacity to pay, leading to a second maturity extension of short-term debt on Dec. 19, less than four months after the prior administration re-profiled short-term debt on Aug. 29, 2019." In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List Upgraded; Ratings Affirmed To From Argentina Sovereign Credit Rating CCC-/Negative/C CC/Negative/C Ratings Affirmed Argentina Transfer & Convertibility Assessment B- Upgraded To From Argentina Sovereign Credit Rating Argentina National Scale raCCC-/Negative/-- raCC/Negative/-- Argentina Senior Unsecured CCC- CC GAUCHO GROUP: HBH to Prepay up to $400K Under Expense Sharing Deal ------------------------------------------------------------------ As previously reported, on April 1, 2011, Gaucho Group Holdings, Inc. entered into an expense sharing agreement with a related, but independent, entity under common management, Hollywood Burger Holdings, Inc. ("HBH"), to share expenses with GGH such as office space, support staff and other operating expenses. HBH is a private company founded by Scott Mathis which is developing Hollywood-themed fast food restaurants in the United States. Mr. Mathis is the chairman and chief executive officer of HBH and Maria Echevarria is the chief financial officer. The ESA was amended on Jan. 1, 2017 and again on Jan. 1, 2019 to reflect the current use of personnel, office space, professional services and additional general office expenses. Under this agreement, HBH owed $4,644 as of Dec. 31, 2018, and had prepaid $310,329 as of Nov. 30, 2019. On or about Dec. 27, 2019, the Board of Directors of both HBH and GGH approved an amendment to the ESA such that HBH prepay up to an additional $400,000 under the ESA to cover GGH's pre-offering financing needs. GGH has agreed to reduce HBH's expense obligations under the ESA by 15% until such time that its prepayment has been reduced to zero. Upon successful completion of the contemplated offering, GGH will refund a majority of the amount HBH has prepaid under the ESA and the full amount to the extent it has available funds. Further, as of Nov. 30, 2019, HBH owes Mr. Mathis $227,500 of unpaid wages accrued over the past three years and which Mr. Mathis has voluntarily deferred until HBH is successfully operating more stores. In the event the offering is unsuccessful and GGH is unable to repay HBH the prepaid office expenditures, Mr. Mathis has agreed to forego his rights to the accrued wages. Also on Dec. 27, 2019, the Board of Directors extended Scott Mathis' employment agreement with the Company, dated Sept. 28, 2015, for an additional term to expire on Feb. 29, 2020. All other terms of the Employment Agreement remain the same. About Gaucho Group Headquartered in New York, NY, Gaucho Group Holdings, Inc. -- http://www.algodongroup.com-- was incorporated on April 5, 1999. Effective Oct. 1, 2018, the Company changed its name from Algodon Wines & Luxury Development, Inc. to Algodon Group, Inc., and effective March 11, 2019, the Company changed its name from Algodon Group, Inc. to Gaucho Group Holdings, Inc. Through its wholly-owned ubsidiaries, GGH invests in, develops and operates real estate projects in Argentina. GGH operates a hotel, golf and tennis resort, vineyard and producing winery in addition to developing residential lots located near the resort. In 2016, GGH formed a new subsidiary and in 2018, established an e-commerce platform for the manufacture and sale of high-end fashion and accessories. The activities in Argentina are conducted through its operating entities: InvestProperty Group, LLC, Algodon Global Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties II S.R.L., and Algodon Wine Estates S.R.L. Algodon distributes its wines in Europe through its United Kingdom entity, Algodon Europe, LTD. Gaucho Group reported a net loss attributable to common stockholders of $6.40 million for the year ended Dec. 31, 2018, compared to a net loss attributable to common stockholders of $8.25 million for the year ended Dec. 31, 2017. As of Sept. 30, 2019, Gaucho Group had $7.02 million in total assets, $4.96 million in total liabilities, $9.03 million in series B convertible redeemable preferred stock, and a total stockholders' deficiency of $6.97 million. Marcum LLP, in New York, the Company's auditor since 2013, issued a "going concern" qualification in its report dated April 1, 2019, on the Company's consolidated financial statements for the year ended Dec. 31, 2018, citing that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. ============= B E R M U D A ============= NABORS INDUSTRIES: Moody's Rates New $800MM Sr. Unsec. Notes Ba2 ---------------------------------------------------------------- Moody's Investors Service assigned a Ba2 rating to Nabors Industries Ltd.'s proposed $800 million senior guaranteed unsecured notes. Moody's concurrently assigned a Ba3 Corporate Family Rating, a Ba3-PD Probability of Default Rating and an SGL-3 Speculative Grade Liquidity Rating to Nabors. Nabors' rating outlook is negative. Moody's also affirmed the B1 senior unsecured notes of Nabors Industries, Inc. while withdrawing its Ba3 CFR, Ba3-PD PDR and SGL-3 rating. NII's rating outlook remains negative. The CFR and other entity-level ratings have effectively been moved from NII to Nabors Industries Ltd. since the ultimate parent company will now have rated debt outstanding. Net proceeds from Nabors' new guaranteed notes will be used to redeem the company's existing senior unsecured notes at NII through a tender offer. Nabors has concurrently launched a tender offer for NII's 2020, 2021 and 2023 senior unsecured notes. However, the proposed offering is not conditioned on the completion, reduction or termination of the tender offer. "This refinancing transaction will improve Nabors' maturity profile while creating some structural complexity as well as structural subordination for the existing notes," said Sajjad Alam, Moody's Senior Analyst. "Nabors will still have significant refinancing requirements even if the company successfully executes the proposed debt tender offer." Ratings Assigned: Issuer: Nabors Industries Ltd. Senior Guaranteed Unsecured Notes, Assigned Ba2 (LGD3) Corporate Family Rating, Assigned Ba3 Probability of Default Rating, Assigned Ba3-PD Speculative Grade Liquidity Rating, Assigned SGL-3 Ratings Affirmed: Issuer: Nabors Industries, Inc. Senior Unsecured Regular Bond/Debenture, Affirmed B1 (to LGD5 from LGD4) Ratings Withdrawn: Issuer: Nabors Industries, Inc. Corporate Family Rating, Withdrawn, previously rated Ba3 Probability of Default Rating, Withdrawn, previously rated Ba3-PD Speculative Grade Liquidity Rating, Withdrawn, previously rated SGL-3 Senior Unsecured Commercial Paper, Withdrawn, previously rated NP Outlook Actions: Issuer: Nabors Industries Ltd. Assign Negative Outlook Issuer: Nabors Industries, Inc. Remains Negative RATINGS RATIONALE The proposed notes were rated Ba2, one notch above the Ba3 CFR, given their structurally senior position relative to the existing senior unsecured notes that lack subsidiary guarantees. However, the new notes will be structurally subordinated to the 2018 revolving credit facility, which has direct upstream guarantees from substantially all rig and rig-related asset owning subsidiaries of Nabors in addition to having a downstream guarantee from the ultimate parent - Nabors Industries Ltd. The new notes will be issued by Nabors Industries Ltd. and will be guaranteed by Nabors Industries, Inc. and by certain holding company subsidiaries that indirectly own substantially all of Nabors rigs. Nabors' Ba3 CFR reflects its high financial leverage, reduced but still significant refinancing needs and high re-contracting risk in North America in light of projected weak rig demand. While Moody's expects dayrates and utilization in international markets to show improvements in 2020, US rig markets will likely remain soft. Most US based E&P companies have trimmed their capital spending and growth expectations to live within cash flow and boost shareholder returns, which will make it difficult for Nabors and its land drilling peers to raise dayrates and fleet utilization at least through mid-2020. Oil price volatility and weak US natural gas prices will also restrain drilling activity. If E&P companies in the US continue to rein in spending, Nabors will not be able to generate enough free cash flow to de-lever quickly. However, the company's relationship with Saudi Aramco (A1 stable) will continue to provide a base level contract and earnings visibility. The Ba3 CFR is supported by Nabors' large scale, high quality rig fleet, long-standing contractual relationship with some of the world's largest oil companies, and a strong and diversified international footprint. Nabors has adequate liquidity, which is reflected in the SGL-3 rating. After executing an amendment to the revolving credit facility in December 2019, the company has significantly reduced its covenant compliance risk, while through this proposed note offering, it will also reduce its refinancing needs. Moody's expects the company to generate free cash flow in 2020 and apply most of the surplus cash to reduce debt. The company has an undrawn $1.01 billion revolver, which matures at the earlier of (a) October 11, 2023 and (b) July 19, 2022, if any of Nabors' existing 5.5% senior notes due January 2023 remain outstanding as of such date. The company also has a $666.25 million revolver that had $455 million outstanding at September 30, 2019, and this facility matures on July 14, 2020. Nabors will likely roll the outstanding balance on the maturing revolver to the $1.01 billion revolver and subsequently look to repay this debt. Moody's estimates the company will generate $200-$250 million of free cash flow in 2020 after covering annual capex of roughly $400 million and dividends of $32 million. As of September 30, 2019, Nabors had $419 million in cash and short-term investments, of which $273 million was at its 50% owned SANAD joint-venture entity, which it consolidates for financial reporting purposes, but cannot use for general corporate purposes. The outlook could return to stable if Nabors increases liquidity and further reduces the refinancing risk involving its 2020 and 2021 notes. An upgrade would be contingent on significant debt reduction, sustainable free cash flow generation and maintaining the Debt/EBITDA ratio near 3x in a stable to improving industry environment. The CFR could be downgraded if the company is unable to reduce debt or generate free cash flow leaving the Debt/EBITDA ratio above 4x. Nabors Industries Ltd. -- a Bermuda incorporated entity, is the largest global land drilling contractor with operations in nearly two dozen countries and several offshore markets. Nabors Industries, Inc. is a wholly owned subsidiary of Nabors Industries Ltd. The principal methodology used in these ratings was Global Oilfield Services Industry Rating Methodology published in May 2017. NABORS INDUSTRIES: S&P Rates New Unsecured Guaranteed Notes 'BB-' ----------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue-level and '3' recovery ratings to Bermuda-based oilfield services company Nabors Industries Ltd.'s proposed unsecured guaranteed notes due in 2026 and due in 2028. S&P said, "Certain of its subsidiaries' holding rigs and related drilling assets will guarantee the notes. The '3' recovery rating indicates our expectation of meaningful (50%-70%; rounded estimate: 65%) recovery to creditors in the event of a payment default. We expect Nabors to use the proceeds to fund a tender and repurchase of up to $800 million of its unsecured notes due in 2020, 2021 and 2023, and for the general corporate purpose. The new notes will be subordinated to Nabors' credit facility due 2023 based on the structural position of the subsidiaries providing guarantees. "At the same time, we revised our recovery rating on Nabors' unsecured debt (without subsidiary guarantees) to '5' from '4' and lowered the issue-level rating to 'B+' from 'BB-'. The '5' recovery rating indicates our expectation of modest (10%-30%; rounded estimate: 25%) recovery to creditors in the event of a payment default. The reduction in our recovery expectations primarily reflects the additional priority debt." The issuer credit rating on Nabors remains 'BB-' with a negative outlook. ISSUE RATINGS - RECOVERY ANALYSIS Key analytical factors -- S&P values the company on a discrete asset-value basis based on its Sept. 30, 2019, net asset value, consistent with its treatment of other contract drilling companies. S&P assumes a 55% realization rate on Nabors' drilling equipment. -- S&P estimates that for the company to default, spending in the exploration and production industry would need to drop, leading to limited demand for drilling services. -- S&P assumes the company's $1.014 billion unsecured guaranteed revolving credit facility maturing in 2023 would be 85% drawn at the time of default. The facility is guaranteed by certain subsidiaries holding rigs and drilling related assets. -- S&P assumes the $666 million facility maturing in 2020 is not renewed at maturity. -- S&P's recovery ratings on the credit facility maturing in 2023 and the unsecured guaranteed notes are capped at '3' despite its expectation for recovery of greater than 100%. This reflects its assumption that Nabors could add material secured debt that would have priority ahead of the facility and guaranteed notes prior to a default. Simulated default and valuation assumptions -- Simulated year of default: 2024 -- Insolvency jurisdiction (Rank A): Majority of the company's revenue and assets are in the U.S. Simplified waterfall -- Net enterprise value (after 5% administrative costs): $2.4 billion -- Total senior unsecured debt with subsidiary guarantee claims: $914 million --Recovery expectations: 50%-70% (rounded estimate: 65%, capped) -- Value available to senior unsecured claims with secondary subsidiary guarantee claims: $1.5 billion -- Total senior unsecured debt with secondary subsidiary guarantee claims: $830 million -- Recovery expectations: 50%-70% (rounded estimate: 65%, capped) -- Value available to subordinated unsecured claims: $656 million -- Subordinated unsecured claims: $2.3 billion --Recovery expectations: 10%-30% (rounded estimate: 25%) All debt amounts include six months of prepetition interest. =========== B R A Z I L =========== BRAZIL: Corn Exporters Concerned About Effect of US-Iran Crisis --------------------------------------------------------------- Lise Alves at Rio Times Online reports that grain producers in Brazil, especially corn farmers, are very concerned about the recent US-Iranian clash in the Middle East. The escalation of the conflict, they say may hinder the South American country's exports to Iran, one of largest importers of Brazilian corn, according to Rio Times Online. Traditionally Iran has been one of largest importers of Brazilian corn, purchasing over 5.108 million tons in 2019, notes the report. "For now, there has been no change (about exports to Iran), but the situation causes concern because Iran is one of the main destinations of Brazilian corn abroad," Sergio Mendes, director for Anec (National Association of Cereal Exporters) told The Rio Times in a telephone interview. 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. ELETROBRAS: S&P Raises SACP to 'bb-' on Improved Liquidity ---------------------------------------------------------- On Jan. 7, 2020, S&P Global Ratings affirmed its 'BB-' global scale issuer credit and issue-level ratings on Eletrobras. S&P also affirmed its 'brAAA' and 'brA-1+' long-term and short-term national scale ratings. At the same time, S&P raised its stand-alone credit profile (SACP) on Brazil-based electric utility to 'bb-' from 'b+'. S&P said, "We have affirmed our ratings because the main rating driver is our view of an almost certain likelihood that the company would receive extraordinary government support in case of financial stress. At the same time, we revised upward its SACP to 'bb-' from 'b+' on stronger liquidity. This occurred after Eletrobras successfully issued about R$7.5 billion in debentures throughout 2019 and completed a R$7.75 billion capital increase on Dec. 30, 2019. The latter has contributed net cash of R$3.7 billion, given that the government injected R$4.0 billion in prior years. We now expect the company's liquidity sources over uses to be above 1.5x for the following 12 months as of September 2019. We also believe Eletrobras has wide access to debt and equity capital markets, as well as exhibiting prudent risk practices. The current management has been overhauling the company's operations, including asset divestures and cost optimization initiatives, since 2017. "Finally, our SACP analysis continues to incorporate a positive adjustment reflecting our expectation that Eletrobras will continue divesting its non-core assets in the next 12 months. This involves either selling its equity investments in private- and publicly-listed companies, or by selling its stakes in generation and transmission projects that it doesn't control but provide financial guarantees. We view positively the non-core asset sales in the past two years, including six distributors, and we believe Eletrobras could continue using the proceeds to reduce debt." ========= C H I L E ========= GEOPARK LTD: S&P Assigns 'B+' Rating to New Senior Unsecured Bonds ------------------------------------------------------------------ S&P Global Ratings assigned its 'B+' issue-level rating to GeoPark Ltd.'s (B+/Positive/--) proposed senior unsecured bonds with a seven-year bullet maturity. The bonds will rank pari passu with the company's other senior unsecured debt and GeoPark plans to use the proceeds to finance the acquisition of Amerisur and for general corporate purposes, including capital expenditures. S&P said, "As we discussed in our recent article, "GeoPark Ltd. Outlook Revised To Positive And 'B+' Ratings Affirmed On Proposed Acquisition Of Amerisur Resources Plc" published Nov. 18, 2019, on RatingsDirect, we expect the debt-financed acquisition to boost production and reserves while only increasing gross leverage to slightly below 2.0x in the next 12 months. In this context, we believe there is at least a one-in-three chance of an upgrade of GeoPark to 'BB-' in the next 12 months after the transaction is completed, the long-term financing obtained, and operations stabilized. "We rate GeoPark's senior unsecured notes at the same level as the issuer credit rating because there aren't material financial obligations that would rank ahead of the company's unsecured debt by way of structural or contractual subordination. GeoPark doesn't hold any secured obligations and debt is issued at the parent level." UBIOME INC: Psomagen-Macrogen Consortium Acquires Patents, Data --------------------------------------------------------------- On Jan. 2, 2020, the Psomagen-Macrogen Consortium announced the acquisition of all key assets of US company uBiome. Through the move, Psomagen has become a key player in the microbiome sector, a promising next-generation bio healthcare industry, with a competitive advantage in the US and global markets. The acquisition includes a microbiome patent portfolio comprising 246 patents (60 registered US patents and 186 applications), anonymized microbiome data, nearly 300,000 samples, and laboratory equipment from uBiome's laboratory in San Francisco. The acquisition price is USD7.05 million, corresponding to 1% of uBiome's estimated corporate value. uBiome was a microbiome company based in San Francisco, known for its unique and competitive market presence in the field of sequencing on the microbiome's 16S rRNA gene. The company's patent portfolio in the field is rated the third best in the world, and the amount of the microbiome data the company had accumulated is the biggest in the world. But in June of this year, one of the company's co-founders resigned over a number of issues; this was followed by the loss of CLIA certification and CAP accreditation, rendering the company unable to conduct business. uBiome shortly filed for bankruptcy with the United States Bankruptcy Court for the District of Delaware. Since November, the company has been engaged in selling off its key assets. The Psomagen-Macrogen Consortium was selected as the preferred bidder from key competitors in the field from the US, the UK and Australia. The consortium, after chosen to acquire uBiome's asset on December 17, finalized the deal on December 27. With an increasing number of studies shedding light on the effects of human microbiome on various health-related conditions including neurological, cardiovascular, metabolic syndromes (diabetes, obesity, etc.) as well as cancer, the microbiome market is rapidly emerging as a growth-driving and high value-added industry. Global market research firm Frost & Sullivan has forecast an average annual growth rate of 7.6% for the global microbiome market, from USD81.1 billion in 2019 to approximately USD108.7 billion in 2023. Psomagen intends to widen its competitive edge and preemptively fulfill the rapidly growing global microbiome market by developing safer and more competitive services than their current service offerings through R&D in addition to the newly acquired patents and data. The microbiome data of almost 300,000 samples from uBiome is expected to be particularly useful in integrating and developing various business areas such as personalized cosmetics, diets, healthcare and new drug development. Psomagen CEO Ryan W. Kim commented, "The acquisition is a brilliant move that will allow Psomagen to gain global competitiveness and leadership in the microbiome market. It has given us a substantial upper hand in the fiercely competitive microbiome market." Macrogen CEO Kap-Seok Yang also remarked on the acquisition: "The acquisition of the uBiome assets is the second strategic move of the consortium in the microbiome market after the joint partnership and investment in Microba, an Australian microbiome company, earlier this year. It will enable us to offer better service in the short term, but more importantly, it will be a foundation of the new platform businesses we are building based on genomic data of both human and microbiome." Psomagen, Inc., located in Rockville, Maryland since December 2004, started out as the US subsidiary of Macrogen, Inc (KOSDAQ: 038290). Psomagen is now grossing around USD 20 million in annual revenues. The company has been recognized in the US market for its superior genome analysis and has recently been focusing on the North American clinical diagnostics and DTC business areas. Psomagen also possesses expertise in microbiome screening, in which intestinal microorganisms are used to analyze the physical composition, as well as predict and prevent certain conditions. Psomagen is expanding its microbiome business portfolio to include not only 16S rRNA gene-based analysis but also whole-genome analysis. About uBiome Inc. uBiome, Inc. -- https://ubiome.com/ -- is a microbial genomics company founded in 2012. uBiome combines its patented proprietary precision sequencing with machine learning and artificial intelligence to develop wellness products, clinical tests, and therapeutic targets. uBiome has filed for over 250 patents on its technology, which includes sample preparation, computational analysis, molecular techniques, as well as diagnostic and therapeutic applications. uBiome and its non-debtor foreign affiliates currently employ approximately 100 individuals, of which 35 are located in the United States, 37 in Chile, and 28 in Argentina. On Sept. 4, 2019, uBiome, Inc., sought Chapter 11 protection (Bankr. D. Del. Case No. 19-11938). The Debtor was estimated to have assets of $50 million to $100 million and liabilities of $10 million to $50 million as of the bankruptcy filing. The Hon. Laurie Selber Silverstein is the case judge. The Debtor tapped Young, Conaway, Stargat & Taylor, LLP as counsel; Goldin Associates, LLC, as restructuring advisor; and GLC Advisors & Co., LLC and GCLA Securities LLC as investment banker. Donlin Recano & Company, Inc., is the claims agent. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Loses 49% in Contraband From Haiti ------------------------------------------------------ Dominican Today reports that for every 100 pesos in merchandise smuggled into the Dominican Republic from Haiti, the Government loses around 49 pesos in unpaid revenue to Customs and Internal Taxes. Taking into account the levies on products seized along the Dominican-Haitian border between 2017 and early 2019, the unpaid tariff exceeded RD$34.4 million and the Itebis (VAT) would have been RD$34.5 million, according to Dominican Today. For the Selective Consumption Tax (ISC), RD$9.2 million and Specific Taxes, RD$7.1 million were lost, the report notes. The evasion affected State coffers with unpaid income of RD$85.1 million in that period, the report relays. The data are contained in the report "Impact on Dominican Finance of goods smuggled in from Haiti to the Dominican Republic," 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: Most Remittances Go to a Few Regions -------------------------------------------------------- Dominican Today reports that in 2010, nearly 68% of the US$3.7 billion received by the Dominican Republic in remittances were distributed among 18 provinces. The amount, equal to US$2.5 billion of the total, went mostly to regions that had the highest percentage of poor households in that year, according to Dominican Today. But internal immigration from those 18 provinces has reversed that figure, the report notes. Diario Libre reports that from January to November 2019, four of the main Dominican cities: National District, Santiago, Santo Domingo and Duarte received 61% of the US$6.4 billion in remittances that were sent to the country, 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). ===================== P U E R T O R I C O ===================== ASOCIACION DE PROPIETARIOS: Plan Outline Hearing Reset to Feb. 20 ----------------------------------------------------------------- Debtor-in-possession Asociacion de Propietarios Condominio Radio Centro filed a motion with the U.S. Bankruptcy Court for the District of Puerto Rico to enter an order rescheduling the hearing to consider approval of its Amended Disclosure Statement. At the Debtor's behest, the Judge ordered that the hearing scheduled for Jan. 22, 2020, is rescheduled for Feb. 20, 2020 at 9:30 a.m. The Debtor is represented by: GLORIA M. JUSTINIANO Ensanche Martinez 8 Ramirez Silva St. Mayaguez, PR 00680 Tel: (787) 222-9272 E-mail: justinianolaw@gmail.com About Asociacion De Propietarios Condominio Radio Centro Asociacion De Propietarios Condominio Radio Centro sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 19-02202) on April 23, 2019. At the time of the filing, the Debtor was estimated to have assets of less than $100,000 and liabilities of less than $500,000. Gloria Justiniano Irizarry, Esq., at JUSTINIANO'S LAW OFFICE, is the Debtor's counsel. BANCO POPULAR DE PUERTO RICO: S&P Withdraws 'B' Short-Term ICR -------------------------------------------------------------- S&P Global Ratings said it withdrew its 'B' short-term issuer credit rating on Banco Popular de Puerto Rico at the company's request. The 'BB+' long-term issuer credit rating on Banco Popular de Puerto Rico is unchanged. The outlook on the long-term rating remains positive. ================= V E N E Z U E L A ================= VENEZUELA: Oil Exports Fell by a Third in 2019 as US Sanctions Bit ------------------------------------------------------------------ Marianna Parraga at Reuters reports that Venezuela's oil exports plummeted 32% last year to 1.001 million barrels per day, according to Refinitiv Eikon data and state-run Petroleos de Venezuela SA's reports, as a lack of staff and capital drove output to its lowest level in almost 75 years and U.S. sanctions shrank exports markets. The drop would have been steeper if some of PDVSA's largest customers had not bought Venezuelan oil through intermediaries or trans-shipped cargoes off several ports around the world so the country of origin was blurred, according to industry sources, vessel trackers and Eikon data, according to Reuters. In terms of customers, Russia's Rosneft was the largest receiver and intermediary of Venezuelan oil with 33.5% of total exports, followed by state-run China National Petroleum Corp (CNPC) and its units with 11%, and Cuba's state-run Cubametales with 7%, the data showed, the report notes. PDVSA did not reply to a request for comment. China emerged as the first destination for Venezuelan oil in 2019 as sanctions deprived PDVSA of its primary market, the United States, the report relays. That was despite CNPC and its units halting the loading of crude at Venezuelan ports in the second half, the report discloses. Venezuela sent an average of 319,507 bpd to China in cargoes covering direct routes as well as in vessels chartered by intermediaries that ended up reaching Chinese refiners after trans-shipping the oil off countries like Malaysia, the Eikon vessel tracking data showed, the report relays. U.S. sanctions on Venezuelan and Iranian oil, which along with lower output affected global supply of heavy crude, contributed to driving oil prices up more than 20% last year. But prices are expected to remain rangebound this year as U.S. supplies have swelled, the report notes. OPEC-member Venezuela produced 1.01 million bpd of crude from January through November, according to official numbers, the report discloses. The collapse in output under President Nicolas Maduro has dragged what was once Latin America's wealthiest nation into an economic tailspin, the report relays. Analysts monitoring Venezuela forecast a further decline in crude production this year due to the combination of sanctions and lack of investment and staff, the report relays. Market intelligence firm Kpler expects Venezuela's production to average 600,000-800,000 bpd in 2020, said its global energy economist, Reid I'Anson, the report relays. Analysts said it was hard to predict how sharply exports would fall this year, the report relays. "Washington wants more sanctions but PDVSA's customers are looking for formulas to continue buying," said Francisco Monaldi, of Rice University's Baker Institute, who forecasts output will fall this year at least at the same rate as the years preceding sanctions, the report relays. "The main questions are how much the United States will enforce sanctions on Venezuela? Is Washington ready to act against PDVSA's partners and customers?," Monaldi added, the report notes. Asia Grows In Importance A frozen trade relationship with the United States allowed Asia in 2019 to strengthen its position as the main destination for PDVSA's oil with China, India, Malaysia, Japan and Singapore receiving cargoes, sometimes only for blending and transferring, the report relays. Venezuela's oil shipments to Asia averaged 647,000 bpd, or 65% of total exports in 2019, the report notes. India was the second-largest receiver of Venezuela oil last year with 217,739 bpd. Refining firm Reliance Industries suspended direct purchases from PDVSA in the second quarter, but resumed them later in 2019 after reaching a new swap deal allowing PDVSA to receive fuel cargoes in exchange, the report discloses. The report relays that Europe was the third-largest destination for Venezuelan oil, also through swaps allowed under U.S. sanctions. European refiners, mainly Spain's Repsol, received an average of 118,980 bpd last year, according to the data. Cuba was fourth with 70,359 bpd, a number below the average of recent years, but high considering that other Caribbean nations stopped receiving Venezuelan oil even before sanctions hit, due to PDVSA's declining output, the report says. Former PDVSA executives and union leaders attribute the slump in oil production to a lack of capital and a recent exodus of about 30,000 workers, around a quarter of total staff reported in 2016, the last year the firm published its annual report, the report notes. PDVSA and its joint ventures also struggled to export oil that had accumulated in storage tanks amid a shrinking portfolio of customers due to the sanctions announced by Washington a year ago to oust Maduro, the report relays. The mounting stocks forced the firm to cut output while converting oil upgraders into blending stations designed for producing the crude grades demanded by Asian clients, the report notes. Venezuela, which has the world's largest crude reserves, imported an average of 155,674 bpd of fuel and diluent naphtha in 2019, in line with recent years but too little to cover the gap left by PDVSA's very low domestic refining, resulting in intermittent shortages of motor fuel during the year, the report adds. About Venezuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea. The capital is the city of Caracas. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. Standard and Poor's long- and short-term foreign currency Sovereign credit ratings for Venezuela stands at 'SD/D' (November 2017). S&P's local currency sovereign credit ratings on the other hand Are 'CCC-/C'. The May 2018 outlook on the long-term local currency sovereign credit rating is negative, reflecting S&P's view that the sovereign could miss a payment on its outstanding local currency debt obligations or advance a distressed debt exchange operation, equivalent to default. Moody's credit rating (long term foreign and domestic issuer ratings) for Venezuela was last set at C with stable outlook (March 2018). Fitch's long term issuer default rating for Venezuela was last set at RD (2017) and country ceiling was CC. Fitch, on June 27, 2019, affirmed then withdrew the ratings due to the imposition of U.S. sanctions on Venezuela. ********* 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 * * *