/raid1/www/Hosts/bankrupt/TCRLA_Public/200205.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

          Wednesday, February 5, 2020, Vol. 21, No. 26

                           Headlines



A R G E N T I N A

ARGENTINA: Buenos Aires Closes In on Deal With Bondholders
DESENVOLVE SP: Moody's Assigns Ba2 Issuer Ratings, Outlook Stable
GAUCHO GROUP: Further Amends Stock Certificate of Designation


C A Y M A N   I S L A N D S

KDAC AVIATION: S&P Assigns Prelim BB(sf) Rating on Cl. C Notes


C O L O M B I A

CREDIVALORES - CREDISERVICIOS: Fitch Rates New Sr. Notes 'B+(EXP)'
CREDIVALORES - CREDISERVICIOS: S&P Rates New Unsecured Notes 'B'


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Dollar Crunch Again; Banks Limit at US$2,000


J A M A I C A

JAMAICA: Owners Urged to Brace for Insurance Rate Increase
TRANSJAMAICA HIGHWAY: Fitch Rates New USD225MM Notes 'BB-(EXP)'
TRANSJAMAICAN HIGHWAY: S&P Gives (P)B+ on $225MM Notes Due 2036


P U E R T O   R I C O

LINDLEY FIRE: Main Assets Sold, Proposes Liquidating Plan
PONCE REAL ESTATE: In Talks With Triangle; Unsecureds to Get 100%
PUERTO RICO: Bondholders Lose Appeal Over Claim on Assets


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Trinidad Cancels Gas Deal Over Sanctions

                           - - - - -


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A R G E N T I N A
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ARGENTINA: Buenos Aires Closes In on Deal With Bondholders
----------------------------------------------------------
Global Insolvency, citing the Financial Times, reports that the
province of Buenos Aires has broken through an impasse with a group
of its bondholders, inching closer to avoiding a messy default over
an overdue payment and helping the national government press on
with the restructuring of more than $100 billion of debt it is
struggling to repay.

Negotiations between the province and its bondholders broke down,
but on Feb. 4, the government sweetened the terms it would offer,
just days before the already extended deadline was set to expire,
the report relays.

A formal agreement has not yet been reached, but one group of
bondholders agreed to accept late payments, and has urged other
creditors to support the deal, the report adds.

                      About Argentina

Argentina is a country located mostly in the southern half of South
America.  It's capital is Buenos Aires. Alberto Angel Fernandez is
the current president 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.

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.  S&P Global Ratings, in December 2019, raised its foreign
currency sovereign credit ratings on Argentina to 'CC/C' from
'SD/D'.  S&P's outlook on the long-term sovereign credit ratings is
negative. Fitch Ratings, in December 2019, 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'.  DBRS,
Inc. meanwhile downgraded Argentina's Long-Term and Short-Term
Foreign Currency - Issuer Ratings to Selective Default (SD), from
CC and R-5, respectively, also in December 2019.


DESENVOLVE SP: Moody's Assigns Ba2 Issuer Ratings, Outlook Stable
-----------------------------------------------------------------
Moody's America Latina Ltda. assigned long-and short-term global
local currency issuer ratings of Ba2 and Not Prime to the
state-owned development agency, Desenvolve SP -- Agencia de Fomento
do Estado de Sao Paulo, following the assignment of a ba3 baseline
credit assignment (BCA). In addition, Moody's assigned Desenvolve
SP Aa1.br and BR-1 long- and short-term Brazilian national scale
issuer ratings, Ba1 and Not Prime long- and short-term local and
foreign currency counterparty risk ratings and Ba1(cr) and Not
Prime(cr) long- and short-term counterparty risk assessments. The
outlook on all ratings is stable.

RATINGS RATIONALE

The Ba2 issuer rating reflects Desenvolve SP's ten-year franchise
as a regional development agency responsible for providing medium
and long-term financing small and medium enterprises based in the
State of Sao Paulo, in line with the state government's development
and economic policies. Desenvolve SP also lends to municipalities,
using state tax receivables as collateral, and grants financing to
infrastructure and investment projects. As of June 2019, about 73%
of the agency's gross loans consisted of granular and well
collateralized loans to SMEs. Desenvolve SP has limited ability to
operate beyond the boundaries of its state. Consequently, the
agency is highly dependent on and exposed to the local economy and
its loan book is concentrated in terms of segments, products and
borrower types. Moody's notes, however, that the State of Sao Paulo
accounts for 32% of Brazil's GDP and is the bellwether for the
country's economy.

The Ba2 rating also incorporates Desenvolve SP's large capital
base, still reflecting the sizable initial capital injection made
by the state of Sao Paulo in 2009. The agency's ratio of tangible
common equity to risk-weighted assets was 52.8% in June 2019,
ensuring a robust base to expand its balance sheet and representing
a strong cushion to absorb unexpected credit losses.

Having the mission of aiding the state government to implement
social and economic development policies, increasing profitability
is not one of Desenvolve SP's primary objectives. Nevertheless, its
management has demonstrated the capacity to originate recurring
revenues, while also maintaining constant efforts to diversify
earning sources. Despite its intrinsic challenges, Desenvolve SP
reported net income as 2.1% of tangible assets in June 2019, which
compares fairly with peers' profitability ratios.

The Ba2 rating also incorporates its funding structure which is
made of equity and long-term on-lendings from the federal
development bank Banco Nac. Desenv. Economico e Social - BNDES (Ba2
stable, ba2), a characteristic of non-deposit taking development
agencies.

The recent weakening of Desenvolve SP's asset quality is another
credit challenge for the agency's rating. Desenvolve SP's problem
loan to gross loan ratio, calculated according to Moody's
methodology, increased to 8.35% in June 2019, from 3.03% in
December 2017, reflecting credit risks associated with the
long-term nature of its small business loan portfolio, as well as
the challenging economic environment. To mitigate credit risk,
management has emphasized originating of granular, smaller ticket
loans, while enhancing risk-management practices. In addition,
management has focused on improving collection processes and
renegotiating past-due loans during the past six months. The agency
maintains conservative collateral to support its loan book as well
as reserves for loan losses, which covered 114.7% of problem loans
in June 2019.

Moody's assesses as very high the probability that the state
government of Sao Paulo would provide financial support to
Desenvolve SP if necessary in a time of stress, a sign of the
strong macroeconomic and institutional linkages with the state
government-shareholder. In addition to determining the agency's
strategies, budgets and objectives, the state government is the
sole provider of Desenvolve SP's equity. As a result, Desenvolve
SP's adjusted BCA benefits from one notch of uplift for affiliate
support from its ba3 BCA.

Moody's assesses a low probability that the agency will benefit
from financial support from the Brazilian government. This reflects
the fact that Desenvolve SP is not a deposit taking entity and does
not represent systemic risks given its small size.

Moody's believes Desenvolve SP's exposure to environmental risks is
low, consistent with its general assessment for the global banking
sector. The agency's exposure to social risks is moderate,
consistent with Moody's general assessment for the global banking
sector. Moody's does not have any particular governance concerns
for Desenvolve SP. Nevertheless, Desenvolve SP's operations and
strategies are closely linked to the state government's interest
and policies, which may expose it to political interference or
strategic shifts.

WHAT COULD CHANGE THE RATING -- DOWN/UP

Desenvolve SP's ratings could face upward pressure if the rating of
its government-shareholder is upgraded. A significant improvement
in profitability as a result of loan growth with limited effect on
asset risk and without significantly diminishing its capital base,
would put positive pressure on its BCA.

The ratings would face downward pressure if either the state
government's rating were to be downgraded or Desenvolve SP's
fundamentals deteriorate significantly.

METHODOLOGY USED

The principal methodology used in these ratings was Banks
Methodology published in November 2019.


GAUCHO GROUP: Further Amends Stock Certificate of Designation
-------------------------------------------------------------
Gaucho Group Holdings, Inc. filed a Certificate of Designation of
the Series B Convertible Preferred Stock in February 2017
designating 902,670 shares of preferred stock of the Company, par
value $0.01 as Series B Convertible Preferred Stock.  Among the
other rights and preferences of the holders of Series B Shares, if
such Series B Shares had not been previously converted into common
stock, the holders were entitled to convert their Series B Shares
to common stock up until the date that was two years following the
termination of any offering of the Series B Shares, at which time
the Company would redeem all then-outstanding Series B Shares. Also
as previously reported, the termination date of the offering of the
Series B Shares was Dec. 4, 2017.

On Dec. 3, 2019, the Board and holders of a majority of the issued
and outstanding shares of Series B Shares approved the Amendment to
the Certificate of Designation of the Series B Convertible
Preferred Stock which extended the period in which holders of the
Series B Shares may voluntarily elect to convert those shares into
shares of common stock of the Company to Jan. 31, 2020.  In
addition, the Series B Amendment extended the date upon which the
Company shall redeem all then-outstanding Series B Shares and all
unpaid accrued and accumulated dividends to Jan. 31, 2020.  The
Series B Amendment was filed with the Secretary of State of the
State of Delaware on Dec. 3, 2019.

On Jan. 28, 2020, the Board approved an additional Amendment to the
Certificate of Designation of the Series B Convertible Preferred
Stock and on Jan. 30, 2020, holders of a majority of the issued and
outstanding shares of Series B Shares approved the Second Amendment
which extends the period in which holders of the Series B Shares
may voluntarily elect to convert those shares into shares of common
stock of the Company to April 15, 2020.  In addition, the Series B
Amendment extends the date upon which the Company shall redeem all
then-outstanding Series B Shares and all unpaid accrued and
accumulated dividends to April 15, 2020.  The Second Amendment was
filed with the Secretary of State of the State of Delaware on Jan.
30, 2020.

                       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.




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C A Y M A N   I S L A N D S
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KDAC AVIATION: S&P Assigns Prelim BB(sf) Rating on Cl. C Notes
--------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to KDAC
Aviation Finance (Cayman) Ltd./KDAC Aviation Finance (USA) LLC's
fixed-rate notes.

The note issuance is an ABS securitization backed by 34 aircraft
and the related leases, and shares or beneficial interests in
entities that directly and indirectly receive aircraft portfolio
lease rental and residual cash flows, among others.

The preliminary ratings are based on information as of Jan. 31,
2020. Subsequent information may result in the assignment of final
ratings that differ from the preliminary ratings.

The preliminary ratings reflect S&P's view of:

-- The likelihood of timely interest on the series A notes
(excluding step-up interest) on each payment date, the timely
interest on the series B notes (excluding step-up interest) when
series A notes are no longer outstanding on each payment date, and
the ultimate interest and principal payment on the series A, B, and
C notes on or prior to the legal final maturity at each respective
rating stress. The 69% loan-to-value ratio (LTV) (based on the
lower of the mean and median of the half-life book value and
half-life market value) on the series A notes; the 78% LTV on the
series B notes; and the 87% LTV on the series C notes.

-- The portfolio, which comprises 26 narrow-body passenger planes
(14 A320 family, four B737-700, and eight B737-800), and eight
wide-body passenger planes (four A330-200, two A330-300, and two
B777-200ER). The 34 assets have a weighted average age of
approximately 13.8 years and remaining average lease term of
approximately 2.8 years as of Dec. 31, 2019. All aircraft but one
(a single A321-100) are currently in-production models.

-- The locations of the lessees, some of which are in emerging
markets where the commercial aviation market is growing. The series
A and B notes, which follow an 11.3-year amortization profile, and
the series C notes, which follow a seven-year amortization profile.
The payment of the series A notes' outstanding principal balance,
followed by the series B notes, if a rapid amortization event has
occurred and is continuing.
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
                                                                   
         
-- An end-of-lease payment that will be paid to the series A, B,
and C notes according to a percentage equal to each note's
then-current LTV ratio.

-- A liquidity facility that is sized to at least nine months'
interest on the series A and B notes. The series C interest reserve
account, which is funded at $1.1 million at closing to cover
interest payments on the series C notes.

-- The subordination of the series C notes' interest and principal
payments to series A and B notes' interest and principal payments.

-- The maintenance analysis provided by Alton Aviation Consultancy
LLC at closing and by the servicer on a semi-annual basis
thereafter. The maintenance reserve account, which is required to
keep a balance to meet the higher of: (i)the lesser of $1 million
and the outstanding principal balance of the series A and B notes,
and (ii)the sum of forward-looking maintenance expenses. The excess
maintenance over the sum of the required senior and junior
maintenance amounts will be transferred to the collections account
after the six-month anniversary of closing date. The maintenance
reserve account is funded at approximately $37 million on the
closing date. The senior indemnification (capped at $10 million),
which is modelled to occur in the first 12 months.

-- The junior indemnification (un-capped), which is subordinated
to the rated series' principal payment.

DVB Bank SE, London branch (DVB), which is the servicer for this
transaction. DVB's in-house aircraft assets and aviation finance
team is experienced in managing new, mid-life, and end-of-life
aircraft assets.

  PRELIMINARY RATINGS ASSIGNED

  KDAC Aviation Finance (Cayman) Ltd./
  KDAC Aviation Finance (USA) LLC

  Class       Rating                  Amount
                                    (mil. $)
  A           A (sf)                 505.363
  B           BBB (sf)                60.342
  C           BB (sf)                 64.113




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CREDIVALORES - CREDISERVICIOS: Fitch Rates New Sr. Notes 'B+(EXP)'
------------------------------------------------------------------
Fitch Ratings assigned an expected rating of 'B+'/'RR4(EXP)' to
Credivalores-Crediservicios S.A.S' senior notes. The U.S. dollar
denominated notes will be issued for an amount of approximately
USD320 million at a fixed interest rate to be set at the time of
the issuance.

The tenor of these notes is yet to be determined. The net proceeds
of these senior notes will be used to facilitate the prepayment of
existing Senior debt due 2022, and any remaining funds are expected
to be used for repayment of other debt or general corporate
purposes. Interest payments will be made semi-annually. Fitch
believes this issuance will not significantly increase tangible
leverage given that the vast majority of the issuance is for debt
substitution at more favorable terms.

The final rating is subject to the receipt of final documentation
conforming to information already received by Fitch.

KEY RATING DRIVERS

Credivalores' Long-Term Issuer Default Rating (IDR) is 'B+'/Rating
Outlook Negative. The notes are expected to be rated at the same
level of Credivalores' IDR, as the likelihood of default of the
notes is the same as the one of the company.

Fitch revised Credivalores' Outlook to Negative on July 2019. The
Outlook revision to Negative reflected deterioration of asset
quality metrics, which has added pressure on already modest profits
and loss absorption capacity. During 2019, the entity took on
several strategies to reduce impairments and charge-offs such as
reducing credit card portfolio proportion of loans, tightening cut
off levels and underwriting adjustments in the most affected
regions. Fitch believes if these actions are not strong enough to
revert asset quality and profitability trends, which could add some
stress to leverage metrics, ratings could be downgraded.

Credivalores' IDRs are highly influenced by the company's profile
and concentrated nature within the financial system, which, despite
is small size, benefits from its role as one of the largest
non-bank financial institutions engaged in consumer lending to the
low-to-mid income population not usually served by banks in small
and mid-sized cities. Credivalores' quantitative metrics have seen
some positive trends since Fitch's last review. Asset quality
metrics remain pressured, but have seen some improvement (impaired
loans/total loans reached 14.7%, following net charge-offs of 1.4%
and loan loss allowances/ total loans improved to 91.0% as of
September 2019) . The ratings also consider the company's
relatively ample risk appetite due to its focus on low to middle
income segments. Profitability remains modest (ROAE 1.74%% as of
September 2019); however, the company was able to increase its
tangible common equity/tangible assets ratio to 10.7% as of
September 2019. This expected issuance will further enhance the
company's funding flexibility. When a non-bank financial
institution has a long-term IDR of 'B+' or below, Fitch typically
assigns a Recovery Rating (RR) to the entity's issues. RRs provide
greater transparency on the recovery component. An 'RR4' rating
indicates an 'Average' recovery prospect in the unlikely event of a
default.

RATING SENSITIVITIES

As the notes are rated at the same level as the VR, their rating is
primarily sensitive to any change in the bank's VR.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
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.


CREDIVALORES - CREDISERVICIOS: S&P Rates New Unsecured Notes 'B'
----------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue-level rating to
Credivalores - Crediservicios S.A.S.'s (Credivalores; B/Stable/B)
proposed senior unsecured notes for up to $320 million with a
maturity profile of up to five years. They will bear a fixed rate
with semiannual payments. The lender will use the proceeds
primarily to prepay outstanding debt and extend the average term of
its debt. The issue-level rating also incorporates S&P's
expectation that Credivalores will hedge the total amount of the
principal and interest with a full cross-currency swap (CCS) and/or
a call spread for the whole maturity to limit currency risk. S&P
expects Credivalores to complete the hedge in the next few days
after the placement.

The 'B' rating on the new notes is at the same level as the
long-term global scale issuer credit rating on Credivalores. This
is because S&P expects the company's priority debt (secured debt)
will represent less than 15% of total adjusted assets, and its
unencumbered assets will fully cover unsecured debt in the next 12
months. In this sense, the new notes will rank equally in right of
payment with all of the lender's existing and future senior
unsecured debt.

S&P said, "We expect Credivalores to use the proceeds for prepaying
about 47.5% of its outstanding international notes due 2022 (about
$162.5 million, considering prepayment prime), and the $35 million
and $40 million ECP notes due May 2020 and April 2021,
respectively. Credivalores will use the remainder to support the
projected loan growth for the next year. In this sense,
Credivalores will extend its maturity profile and reduce its
refinancing risk in the next two to three years. After the
issuance, debt's average term will increase to 3.6 years from 2.4
years as of September 2019.

"Our view of Credivalores' funding and liquidity remains unchanged.
Although we expect the issuance will improve the lender´s debt
maturity profile and keep stable funding ratio at slightly above
100%, we believe that Credivalores' funding structure will remain
concentrated in market debt and less diversified than other finance
companies that we rate regionally. The two international notes will
represent about 80% (67% before the issuance) of the total funding
base. The remainder of its funding base will rely on credit
facilities from banks, securitizations, trusts and shareholder's
capital.

"In our view, Credivalores' liquidity is sufficient to fund daily
operations backed by the additional sources provided by the market
issuance. Therefore, we expect broad liquid assets to cover
short-term wholesale sources about 1.5x following the notes'
placement. In addition, we believe Credivalores has enough
available committed credit facilities and unencumbered resources to
raise additional liquidity through secured funding or
securitizations if needed. Our base- and stress-case scenarios
assume that Credivalores' cash flow analysis remains positive, and
we expect the lender to cover its liquidity needs on a monthly
basis for more than 12 months."

The ratings on Credivalores incorporate its diversified business
mix and good market position in the Colombian financial system
compared to other local finance companies. Its 7% forecasted
risk-adjusted capital ratio for the next 18 months indicates
sufficient capacity to absorb unexpected losses despite the
company's low profitability. The ratings also reflect weaker asset
quality metrics than those of its regional peers.

  Ratings List

  New Rating
  Credivalores - Crediservicios SAS

  Senior Unsecured       B




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Dollar Crunch Again; Banks Limit at US$2,000
----------------------------------------------------------------
Dominican Today reports that the sale of US dollars to the public
by the banks and S&Ls is being limited or conditioned, although the
exchange rate remains stable.

Financial institutions in the National District only sell between
US$1,000 and US$2,000 per customer, according to Dominican Today.

Some of the banks and one of the associations only sell dollars to
people who are their customers. However, acquiring US$2,000 at one
of those branches was impossible because they had run out, the
report notes.

It's the second dollar crunch since November, 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).




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J A M A I C A
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JAMAICA: Owners Urged to Brace for Insurance Rate Increase
----------------------------------------------------------
RJR News reports that property owners in Jamaica are being told to
brace for an increase in insurance rates of 10 to 15 percent this
year.

Executive Director of the Insurance Association of Jamaica, Orville
Johnson, says this is due to increasingly destructive Atlantic
hurricane seasons in recent years, according to RJR News.

Johnson says factors such as the type of construction and property
location will determine the level of rate increase, the report
notes.

He also said that property owners can take advantage of increased
competition in the market to ascertain their new premiums, the
report adds.

                            About Jamaica

As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings in September 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.


TRANSJAMAICA HIGHWAY: Fitch Rates New USD225MM Notes 'BB-(EXP)'
---------------------------------------------------------------
Fitch Ratings has assigned TransJamaica Highway Limited's (TJH)
proposed Notes issuance of USD225 million an expected rating of
'BB-(EXP)' with a Stable Rating Outlook. The final rating is
contingent on the receipt of final documents materially confirming
information already received.

KEY RATING DRIVERS

The rating reflects the stability and resiliency of a commuting
asset strategically located in the outskirts of Kingston, Jamaica's
capital city. The rating is also supported by a satisfactory
rate-setting mechanism, which allows tariffs to be adjusted
annually by U.S. inflation and the variations in FX rate between
the Jamaican Dollar (JMD) and the U.S. Dollar (USD). Debt is senior
secured, with typical project finance features that include
limitations on additional indebtedness. Rating case minimum and
average debt service coverage ratio (DSCR) are at 1.7x and 2.0x,
respectively, which are viewed as strong for the rating category
according to applicable criteria. The transaction presents robust
break-even values for its most important variables and no
dependency on traffic growth in order to repay the rated debt.
Furthermore, it withstands domestic economic shocks beyond those
observed between 2008-2014 when the Jamaican economy deeply
deteriorated, supporting a rating above that of the Jamaican
sovereign (B+/Positive), but constrained by Jamaica's Country
Ceiling of 'BB-'.

The rating incorporates the expectation that the current
concessionaire, the National Road Operating Constructing Company
Limited (NROCC), which is a limited liability public company
directly owned by the Government of Jamaica, will make an Initial
Public Offering (IPO) for up to 80% of TJH's shares shortly after
the notes issuance. According to the transaction documents, if the
IPO is not successful and the collateral is not properly pledged in
favor of the noteholders, an unwinding of the notes will be
triggered. Because of this, the transaction was not rated under the
Government-Related Entities Rating Criteria. As the IPO is expected
to be executed after the notes are issued, the project's ultimate
shareholders will not be known until that time. However, Fitch
believes that noteholder exposure to a potentially weak controlling
shareholder is mitigated by: 1) the limited liability nature of the
company with all assets pledged to the trust, which should protect
against potential consolidation in a sponsor insolvency scenario,
2) the transaction's debt structure, which limits future
indebtedness and distributions, preventing a potentially weak
sponsor from negatively affecting project operations or financial
performance for its own benefit and 3) the project's O&M contract
signed with an experienced operator, which should ensure its
satisfactory operation with costs at historical levels.

Strategically Located Essential Asset [Revenue Risk - Volume:
Midrange]:

The toll road is the main link between the capital city of Jamaica,
Kingston, and other populated urban and industrial centers
including the cities of Portmore and May Pen. The asset is
currently the only high-speed roadway serving the western part of
Kingston's metropolitan area, with an estimated population of 1.4
million people along the corridor. The project has fully recovered
from the 2009 crisis and the austerity program implemented by the
International Monetary Fund (IMF) in the country, and has shown a
CAGR of 3.8% in 2013-2019. An important section of the road was
slightly negatively affected by improvements in a competing route,
but growth prospects in the long term are underpinned by its
position as a strategic asset for the country, along with the fact
that motorization rates in Jamaica are still low and expected to
increase by 3.5% per annum until 2028.

Adequate Rate Adjustment Mechanism [Revenue Risk - Price:
Midrange]:

Toll rates are adjusted annually using an escalation formula based
on the U.S. CPI and the FX Rate (USD/JMD) evolution in accordance
with the maximum Capped Toll Level of that period, with additional
increases if USD/JMD exchange rate depreciates more than 10%
intra-period. Even though TJH is allowed to annually increase toll
rates, any change needs to be authorized by the Toll Regulator. If
the Toll Regulator does not authorize such toll rates, the
Concessionaire would need to be compensated for the lost revenues.
Fitch believes it is unlikely that the regulator would choose to
cut prices down given the toll rates' update track record since
2009.

Fully Operational Asset [Infrastructure Development & renewal:
Midrange]:

The toll road has been fully operational, with its four toll
plazas, since 2012. It benefits from oversight from an independent
engineer who provides financial annual reviews of the budget and
the O&M plan and a commentary of the six succeeding semesters. The
structure holds a three-month Operations and Maintenance Reserve
Account (OMRA); as well as a Major Maintenance Reserve Account
(MMRA) funded with 100% of the costs to be carried out in the next
12 months, 50% of the costs to be carried out for the next 13 to 24
months and 25% of the costs to be carried out for the next 25 to 36
months. The assessment on this attribute is somewhat limited by the
hand back requirements as included in the concession, which oblige
the concessionaire to return the project to the grantor in a good
and operable condition.

TJH has negotiated and executed an amendment to the Concession
Agreement in which the tenor could be renewed, at any time during
2034, at TJH's request for an additional 35 years. With this
updated agreement, the hand back requirements will fall after the
maturity of the notes. Nonetheless, Fitch's financial projections
assume such expenses will be made in 2035-2036, given the
concession currently ends in 2036.

Typical Debt Structure [Debt Structure: Midrange]:

The proposed notes are senior, fully amortizing, fixed-rate and
with typical project finance covenants. There will be a six-month
Debt Service Reserve Account (DSRA) and a lock-up trigger at a
1.25x backward- and forward-looking DSCR. No FX risk is anticipated
given the formula for toll rates increase captures movements in the
JMD/USD exchange rate.

Financial Profile

Under Fitch's Rating Case, the project yields a minimum and average
DSCR of 1.7x and 2.0x, respectively, which are strong for the
rating category under the indicative ranges of the applicable Fitch
criteria, but ultimately constrained by Jamaica's country ceiling.

PEER GROUP

Comparable projects in the region include Autopistas del Sol (AdS;
B+/Negative) in Costa Rica, and Autopistas del Nordeste (AdN;
BB-/Stable) in The Dominican Republic. AdS and TJH are very similar
as both are strong commuting assets within their respective
country's capital cities. They also share all attributes at the
Midrange level, but the difference in ratings comes from AdS' lower
metrics (average DSCR of 1.2x versus 2.0x under Fitch's rating
case).

AdN has a Weaker assessment on Volume Risk given it has mostly
leisure traffic that has historically underperformed, but Stronger
Debt Structure as targeted principal amortization on the notes is
deferrable and the stockholders have contributed with additional
liquidity to support the operations. Debt service payments are
dependent upon a Minimum Revenue Guarantee (MRG) provided by the
Minister of Public Works and Communications. DSCR averages 1.3x,
but the rating is constrained by Fitch's assessment of the credit
quality of the MRG grantor obligation, which is commensurate with
that of the sovereign.

RATING SENSITIVITIES

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

  - A negative rating action on Jamaica's Country Ceiling;

  - Nil or negative traffic growth rate on a sustained basis;

  - An IPO outcome that is not supportive of Fitch's expectation
    with respect to the transaction's insulation from the risk
    presented by a financially weak and/or unexperienced
    sponsor(s).

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

  - A positive rating action on Jamaica's Country Ceiling.

TRANSACTION SUMMARY

TJH expects to issue senior secured debt for up to USD225 million
through a fully amortizing bond to mature in 2036 with a fixed
coupon rate.

Additionally, the issuance contemplates a 1.25x backward and
forward looking distribution test, along with a six-month Debt
Service Reserve Account. There are limitations for the project
incurring on additional debt. The proceeds will be used to pay
existing debt, pay transaction fees and for general corporate
purposes.

The toll road is the largest infrastructure project in Jamaica.
Between 2006-2007, TJH experienced an increase in traffic levels
due to the opening of the Portmore toll plaza in July 2006. Traffic
levels declined from 2008 to 2010 due to the Jamaican recession,
and the removal of a subsidy on toll rates in the Portmore toll
plaza. Current toll rates for all toll plazas represent, on average
85% of the annual capped toll rate.

In 2018, TJH experienced higher levels of traffic flow (i.e. +8.3%)
due to a partial shutdown of the Nelson Mandela Highway (a
toll-free competing road) caused by the construction works related
to its expansion from a two lane to a three lane road. However,
when the construction works were finalized in 2019, traffic grew at
a lower rate (i.e. +1.2%).

Fitch Cases

The Base Case reflects Fitch's view of long-term sustainable
performance. The base case includes a CAGR for traffic between 2020
and 2036 of 2.4%. The cost profile assumed is in line with the
sponsor's original assumptions with a 5% increase. Macroeconomic
assumptions are in line with Fitch's expectations. Under this
scenario, the minimum and average DSCR are 1.9x and 2.3x,
respectively.

Fitch's Rating Case reflects a reasonable likely scenario of stress
that could occur in this Project. Assumptions in relation to
traffic are reduced to a CAGR of 1.4%. Operating, general &
administrative, and maintenance expenses are increased by 7.5%
throughout the tenor of the debt. Rating Case metrics are slightly
weaker than that of the Base Case, with minimum and average DSCR of
1.7x and 2.0x, respectively.

Fitch tested the debt structure resiliency by assessing the
financial impact on individual stress factors. The break-even
scenarios include base case assumptions for the rest of the
variables not being tested. Results demonstrate that the project
can withstand a -1.0% traffic decrease every year. Also, it
tolerates toll rates as low as 49% of the Capped Toll Level instead
of the current weighted average of 85%. The Project also remains
able to service its debt with coverages above 1.0x when the agency
replicates the same traffic growth rates as the ones experienced
between 2009 and 2014.

In the event of pricing that results in higher than the assumed
initial coupon rate, it is expected that the aforementioned Rating
Case metrics would deteriorate, which could weaken credit quality.

Security

The collateral will include, among other things: (i) certain
reserve accounts; (ii) rights under certain project documents;
(iii) tangible movable property; (iv) leasehold rights; and (v) an
agreement to assign TJH's interest in the Concession Agreement.

Asset Description

TJH stretches for 49.9km, connecting Kingston with May Pen, and is
divided in two corridors: T1 and T2.

The T1 corridor stretches between Kingston and May Pen (with a
connection through to Spanish Town), it has three toll plazas
located at Spanish Town, Vineyards and May Pen.

The T2 Corridor, also called the Portmore Causeway, begins on
Marcus Garvey Drive in Kingston and end on Dyke Road in Portmore.

TJH acts as a major connector between business and key customers in
the Island's southern parishes.


TRANSJAMAICAN HIGHWAY: S&P Gives (P)B+ on $225MM Notes Due 2036
---------------------------------------------------------------
S&P Global Ratings said that it has assigned its 'B+' preliminary
long-term rating to Transjamaican Highway Limited's (TJH or the
project) $225 million notes due 2036. The final rating on the new
debt will depend on S&P's receipt and satisfactory review of all
final transaction documentation; the interest rate on the new notes
would need to be in line with its expectations. Accordingly, the
preliminary rating shouldn't be construed as evidence of the final
rating. If S&P doesn't receive the final documentation within a
reasonable timeframe, or if the final transaction departs from our
assumptions, S&P reserves the right to withdraw or change the
rating.

S&P said, "Our 'B+' preliminary rating is mostly influenced by the
sovereign rating that reflects Jamaica's high debt and interest
burden, which restrict its fiscal flexibility.   Despite a recent
pick-up, GDP growth remains low, constrained by structural
impediments. Nevertheless, the government's commitment to fiscal
prudence fosters macroeconomic stability--including low
inflation--and supports the country's creditworthiness. We tested
the project to assess if it could withstand a hypothetical
sovereign stress and concluded that there is an appreciable
likelihood that the project would default if the sovereign were to
default. The test mainly includes severe macroeconomic stresses
such as a 100% depreciation of the Jamaican dollar, a 10%
contraction in GDP that results in a plummeting traffic level, and
a doubling of inflation rate. In such a scenario, the project's
cash flows would significantly deteriorate. Despite a six-month
cash-funded reserve account located offshore, we don't believe cash
flows would be enough to fully pay debt payments in 2022 (defined
as the year of the stress). Therefore, we don't rate TJH above the
rating on Jamaica.

"We expect steady traffic increases during the notes' term thanks
to the project's strategic location in a highly populated area and
a very low exposure to market risk.   Total traffic grew at a
compounded annual growth rate (CAGR) of about 3.8% between 2013 and
2019. Despite periods of lower traffic, such as in 2013 and 2014
that we attribute to the weak economy and the implementation of the
International Monetary Fund's austerity program, traffic rebounded
starting in 2015, lifting the project's revenue. In line with the
independent consultant, Steer, we expect a high correlation between
GDP and traffic growth for the upcoming years. "We expect Jamaica's
economy to expand in the 2% area between 2021 to 2036 and that
traffic will continue averaging about 2.3%. Class I vehicles
(light) will continue to represent, in our view, the highest share
of traffic and revenue. We view this as a credit strength, given
these vehicles' lesser sensitivity to GDP growth fluctuations,
while such vehicles take a lower toll on the road's pavement,
preventing its frequent heavy maintenance.

"Volatility in cash flow available for debt service will remain
relatively low, in our view.   This is due to the mature nature of
the asset that has been operating for more than 17 years and the
forecasted low capital expenditures (capex), given that all
mandatory investments under the concession contract were already
completed."

Outlook

S&P said, "The stable outlook follows that on the sovereign. It
also incorporates our expectation that the traffic volumes will
continue to increase in the next 12 months at a steady rate of
about 2.3%, allowing the project to maintain a minimum and average
DSCR of about 2.1x and 2.6x, respectively. Furthermore, we expect
TJH to continue efficiently managing its operations, with limited
exposure to major maintenance risks, particularly in the short
term."

Upside scenario

S&P said, "We are unlikely to raise the rating in the next 12
months, because we expect it to move in tandem with that on
Jamaica. However, an upgrade of the sovereign could result in the
same rating action on the project.

"We could raise our stand-alone credit profile (SACP) on TJH if
traffic increases beyond our expectations, or if the amount issued
is lower leading to a minimum DSCR of at least 3x, while improving
the project's resilience in the downside scenario."

Downside scenario

S&P said, "We could lower the rating on the project if we downgrade
Jamaica to 'B', which we do not expect in the short term, given the
stable outlook on it. However, poor economic growth or an
unexpected weather-related shock that leads to a reversal in the
improving trajectory of Jamaica's external position could result in
higher external financing needs or a significant decline in usable
foreign exchange reserves in a downgrade of the sovereign--and
consequently--the project.

"We could revise downward the 'bbb+' SACP of the project if its
financial performance deviates substantially from our estimates,
leading to a minimum DSCR of 1.65x or below and a less resilient
performance to a downside-case scenario. Any downgrade of the SACP
below the existing rating on Jamaica is highly unlikely in the
current scenario and would require a severe deterioration of the
minimum DSCR to less than 1.1x. This could occur if traffic is
extremely below our expectations or there are higher-than-expected
maintenance works."




=====================
P U E R T O   R I C O
=====================

LINDLEY FIRE: Main Assets Sold, Proposes Liquidating Plan
---------------------------------------------------------
Lindley Fire Protection Co., Inc., filed a Chapter 11 plan that
provides for a liquidation of the Debtor's assets.

After attempting the "earn out strategy", the Debtor and the
Official Committee of Unsecured Creditors concluded that an
immediate sale of all or substantially all of Debtor's assets was
the best path forward as it would maximize the value of the estate
for the benefit of all creditors.

On Oct. 23, 2019, the Debtor filed its motion authorizing the sale
of substantially all of its property.  After the hearing held on
November 27, 2019, the Court approved the Sale to Expedite Fire,
Inc., of all of substantially all of Debtor’s assets when
it
entered the sale order on Dec. 26, 2019.  Of the assets not sold
were the Debtor's accounts receivable and avoidance actions.

Under the Plan, holders of General Unsecured Claims in Class 3 will
each receive a pro rata share of the "liquidation trust
interests".

Class 5 Equity Interests will be deemed without monetary value as a
result of the insolvency of the Debtor, and all Equity Interests
will be cancelled, annulled and extinguished without any further
action.

A hearing on the Disclosure Statement is slated for:

       Date: March 4, 2020
       Time: 10:00 a.m.
       Courtroom: 5D
       United States Bankruptcy Court
       411 West Fourth Street, Santa Ana CA 92701

A full-text copy of the Disclosure Statement dated Jan. 22, 2020,
is available at https://tinyurl.com/qnwl9al from
PacerMonitor.com
at no charge.

Attorneys for Lindley Fire Protection Co., Inc.:

     Marc C. Forsythe
     Charity J. Manee
     GOE FORSYTHE & HODGES LLP
     18101 Von Karman Avenue, Suite 1200
     Irvine, CA 92612
     Tel: (949) 798-2460
     Fax: (949) 955-9437
     E-mail: mforsythe@goeforlaw.com
             cmanee@goeforlaw

                 About Lindley Fire Protection

Established in 1986 in Anaheim, California, Lindley Fire Protection
Co., Inc. -- http://www.lindleyfire.com/-- provides fire
protection services and contracts with large industrial warehouses
and facilities.

Lindley Fire Protection performs construction services worldwide
and its personnel have performed work in various locations such as
Western Somoa, Puerto Rico, Texas, Illinois, Nevada, Colorado,
Utah, Montana, Idaho and Mexico.

Lindley Fire Protection sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. C.D. Cal. Case No. 17-10929) on March 12,
2017.  The petition was signed by Leslie L. Lindley, II,
president.
At the time of the filing, the Debtor estimated its assets and
debts at $1 million to $10 million.

The case is assigned to Judge Catherine E. Bauer.  

Goe & Forsythe, LLP is the Debtor's bankruptcy counsel.

On March 29, 2017, the Office of the U.S. Trustee appointed an
official committee of unsecured creditors.  The committee retained
Marshack Hays LLP as its legal counsel.

Accurate Business Consulting, Inc., serves as joint financial
advisor to the Debtor and the Committee.


PONCE REAL ESTATE: In Talks With Triangle; Unsecureds to Get 100%
-----------------------------------------------------------------
Ponce Real Estate Corporation filed an Amended Chapter 11 Plan of
Reorganization and an Amended Disclosure Statement.

The Debtor has presented two offers to creditor Triangle REO PR,
Corp. and continues to communicate and engage with Triangle to work
out a settlement amenable to both parties.  Such a settlement could
expedite the confirmation and conclusion of this bankruptcy
proceeding.  The settlement may include or more of the following
alternatives:

   a. Transfer of Debtor's collaterals encumbered by Triangle.

   b. Transfer title and possession to Triangle of unencumbered
properties of Debtor and/or their guarantors, free and clear
pursuant to Sections 363 and 1146 of the Bankruptcy Code, to add
new value to Triangle's collaterals and/or cover the value
deficiencies of its secured claim, meaning at least the value of
Triangle's interest in the estate's interest in such property, or
the indubitable equivalent of its secured claim, as stipulated or
as determined by the Court in the event an objection is filed to
Triangle's Claim.

   c. Payment from proceeds of financing or sale of the property
located at the Encarnacion Ward a/k/a/ Tallaboa, in Penuelas,
Puerto Rico, or other properties outside the normal course of
business until.

The Plan proposes to treat claims as follows:

   * CLASS 2 - SECURED CLAIM 4: MORTGAGE NOTES SUBSCRIBED BY
     DEBTOR AND HELD BY TRIANGLE REO PR CORP. IMPAIRED.
     Triangle REO PR Corp., serviced by Capital Crossing Puerto
     Rico, LLC, filed its Proof of Claim No. 4 in the total
     amount of $4,104,387 at an annual interest rate of 4.25%,
     as fully secured. The mortgage notes and cash equivalent
     or current value sums to approximately $1,276,420 which
     will be payable to Triangle REO PR Corp., to cover the
     secured portion of Claim 4 in the amount of $1,194,000.

   * CLASS 4 "TRIANGLE UNSECURED PORTION OF CLAIM 4 - DEFICIENCY
     CLAIM HELD BY TRIANGLE REO PR CORP. IMPAIRED. This claim is
     forecasted to receive 100% in cash equivalents providing
     unencumbered properties of the estate and unencumbered
     properties belonging to the guarantors, to be transferred to
     Triangle as additional new value and consideration for the
     realization of the indubitable equivalent of claim number 4.

   * CLASS 5 - GENERAL UNSECURED CLAIMS. IMPAIRED. The total
     amount of unsecured claims allowed as per the claims is
     broken down as follows:

     a. Claim 1 CRIM: $79,626.32
     b. Claim 2 Puerto Rico Telephone/Claro: $3,343.66
     c. Claim 3 State Insurance Fund: $1,416.08

     On the Effective Date of the Plan, claimants shall receive
from the Debtors a nonnegotiable, annual interest bearing at 3.25%
promissory note, dated as of the Effective Date, providing for a
total allowed amount of $81,386.06, which shall be payable in one
lump sum payment on or before the end of the second year. The
proposed dividend payable to this class through the plan exceeds
100% of the allowed General Unsecured Claims.

A look at the projected income does not demonstrate that Debtor can
reorganize and comply with the best interest of creditors with the
regular income from the operation of Debtor's real property rental
business.  Therefore, the Debtor will finance or sell retained
property to provide the funds to satisfy all secured real property
taxes owed including the real property taxes of realties
surrendered and transferred to Triangle REO PR Corp. in order to
transfer free and clear but also to pay all unsecured portions of
real of real property taxes and all other general unsecured
claims.

A full-text copy of the Disclosure Statement dated Jan. 22, 2020,
is available at https://tinyurl.com/v65ayvq from PacerMonitor.com
at no charge.

Counsel for Debtor:

     EDGARDO MANGUAL GONZALEZ
     JOSE L. JIMENEZ QUINONES
     EMG Despacho Legal, C.R.L.
     Edificio La Electanica
     1608 Calle Bori, Suite 212
     San Juan, Puerto Rico 00927
     Tel: (787) 753-0055
     Fax: (787) 767-5015
     E-mail: lcdomangual@gmail.com
     E-mail: lcdojosejimenez@gmail.com

                About Ponce Real Estate Corp.

Ponce Real Estate Corp. as registered in the Department of State of
Puerto Rico on February 11, 1955, under registry number 4514, as a
domestic for-profit-corporation, operating the business of owning
to lease real estate properties for commercial and/or residential
purposes.   Its principal place of business is located at 49 Mendez
Vigo Street, Ponce, Puerto Rico 00730, which is property of PRE.
Mr. Francisco I. Vilarino Rodríguez a/k/a Frank Vilarino is the
the sole owner and president.

Ponce Real Estate Corp. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-06805) on Nov. 24,
2018.

At the time of the filing, the Debtor estimated assets of $1
million to $10 million and liabilities of the same range. The
Debtor tapped EMG Despacho Legal, CRL as its legal counsel, and
Tamarez CPA, LLC as its accountant.


PUERTO RICO: Bondholders Lose Appeal Over Claim on Assets
---------------------------------------------------------
Karen Pierog at Reuters reports that a U.S. Appeals Court ruled
that bondholders' claim on the assets of Puerto Rico's public
employee pension system ended when the system filed for bankruptcy
in May 2017.  

The Boston-based First Circuit Court of Appeals affirmed Federal
Judge Laura Taylor Swain's June decision that bondholders' claim on
employer contributions to the U.S. commonwealth's Employees
Retirement System (ERS) did not extend into bankruptcy, according
to Reuters.

The ruling is a further setback for owners of nearly $3 billion of
the system's bonds after a federal appellate court determined last
year they had a legally enforceable claim as of December 2015 on
assets pledged by the pension fund to pay off the debt, the report
notes.

The report discloses that a lawyer for some of the bond funds that
appealed Swain's ruling did not immediately respond to a request
for comment.  Puerto Rico's federally created financial oversight
board commenced a form of municipal bankruptcy in 2017 to
restructure about $120 billion of debt and liabilities incurred by
the Caribbean island's government and its entities, the report
relays.

Prior to its bankruptcy filing, Puerto Rico's pension system
liquidated almost all of its cash assets and the government moved
to a pay-as-you-go system in which pension benefits are paid out of
the island's general fund, the report notes.

The board said the appeals court decision "lifts a cloud" over the
government's pension payments, the report notes.

"The commonwealth has no obligation to pay bondholders other than
the value of encumbered assets in ERS when it commenced its case
under Title III of PROMESA," the board said in a statement obtained
by the news agency.

                           About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017.  On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.  The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent.  Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.

                    Bondholders' Attorneys

Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet, Rivera
& Sifre, P.S.C. and serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc., and
the First Puerto Rico Family of Funds, which collectively hold over
$4.4 billion of GO Bonds, COFINA Bonds, and other bonds issued by
Puerto Rico and other instrumentalities.

White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP, Autonomy
Capital (Jersey) LP, FCO Advisors LP, and Monarch Alternative
Capital LP.

Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.

Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ Management
II LP (the QTCB Noteholder Group).

                          Committees

The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth.  The
Retiree Committee tapped Jenner & Block LLP and Bennazar, Garcia &
Milian, C.S.P., as its attorneys.  The Creditors Committee tapped
Paul Hastings LLP and O'Neill & Gilmore LLC as counsel.




=================
V E N E Z U E L A
=================

PETROLEOS DE VENEZUELA: Trinidad Cancels Gas Deal Over Sanctions
----------------------------------------------------------------
Linda Hutchinson-Jafar and Luc Cohen at Reuters report that
Trinidad and Tobago has canceled an agreement with Venezuela for
the joint development of a natural gas field straddling their
maritime border because of U.S. sanctions on Venezuela's state
energy company Petroleos de Venezuela, S.A. (PDVSA).

The Caribbean island nation is a major exporter of liquefied
natural gas (LNG), but its own offshore natural gas output has been
declining in recent years, according to Reuters.

That has raised the possibility of using gas from neighboring
Venezuela, which has large untapped offshore gas reserves, to feed
LNG plants in Trinidad, the report notes.

Trinidad and Tobago's prime minister, Keith Rowley, said during an
energy conference in Port of Spain that the two countries will now
independently develop the 10.04 trillion cubic feet Loran-Manatee
shallow-water field, the report notes.

"Progress in the development of the unitized Loran-Manatee field
has been impeded by the sanctions imposed by the U.S. government,
which inhibits U.S. companies from doing business with Venezuelan
oil company PDVSA," the report quoted Mr. Rowley as saying.

Under the agreement signed between the two countries in 2013,
73.75% of the joint field belongs to Venezuela and the rest to
Trinidad and Tobago, the report relays.

The report discloses that U.S. oil major Chevron Corp holds a 60%
interest in the Loran field, with the remainder held by PDVSA,
while Shell Trinidad and Tobago holds a 100% interest in the
Manatee field.

Washington slapped sanctions on PDVSA last year in a bid to oust
socialist President Nicolas Maduro, the report notes.  He has
overseen an economic collapse and is accused by the United States
and others of corruption and human rights violations, the report
relays.

PDVSA's output has declined, but exports have increased in recent
months and Maduro remains in power, the report relays.

Rowley said gas production from the Manatee field could start by
2024 or 2025 at rates ranging from 270 to 400 million standard
cubic feet per day, the report discloses.

He said the decision to independently develop their fields also has
implications for the development of other cross-border fields, the
Mankin-Cocuina and the Kapok-Doradoh, the report notes.

These are estimated to hold 850 billion cubic feet of gas within
the Trinidad and Tobago maritime area, the report adds.

                          About PDVSA

Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the
Venezuelan state-owned oil and natural gas company, which engages
in exploration, production, refining and exporting oil as well as
exploration and production of natural gas.  It employs around
70,000 people and reported $48 billion in revenues in 2016.

As reported in Troubled Company Reporter-Latin America on June 3,
2019, Moody's Investors Service withdrew all the ratings of
Petroleos de Venezuela, S.A. including the senior unsecured and
senior secured ratings due to insufficient information. At the
time of withdrawal, the ratings were C and the outlook was stable.

Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign
asset.  CITGO is majority-owned by PDVSA.  CITGO is a United
States-based refiner, transporter and marketer of transportation
fuels, lubricants, petrochemicals and other industrial products.

However, CITGO formally cut ties with PDVSA at about February 2019
after U.S. sanctions were imposed on PDVSA.  The sanctions are
designed to curb oil revenues to the administration of President
Nicolas Maduro and support for the Juan Guaido-headed party.



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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
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USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

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