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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                 L A T I N   A M E R I C A

          Thursday, February 20, 2020, Vol. 21, No. 37

                           Headlines



B R A Z I L

EMBRAER SA: Prosecutor Demands New CADE Audit of Boeing’s Purchase
JANAUBA TRANSMISSORA: Moody's Gives Ba1 Rating on EUR575MM Debt


C O S T A   R I C A

AERIS HOLDING: Moody's Lowers Sr. Unsec. Debt Rating to B1


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Unfair Competition, Smuggling Has Neg. Impact
[] DOMINICAN REPUBLIC: Municipal Elections Suspended


P E R U

CAMPOSOL SA: S&P Withdraws 'B+' LongTerm Issuer Credit Rating


P U E R T O   R I C O

ADELPHIA COMMUNICATIONS: Announces $33.2M Cash Distribution
PUERTO RICO: Moody's Hikes Series 2011B Bonds Rating to Caa3


V E N E Z U E L A

VENEZUELA: Holds Military Exercises as Pres. Attempts to Show Force

                           - - - - -


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B R A Z I L
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EMBRAER SA: Prosecutor Demands New CADE Audit of Boeing’s Purchase
--------------------------------------------------------------------
Dorah Feliciano at Rio Times Online reports that the purchase of
Embraer by Boeing may be subject to a new review by Brazil's
antitrust agency, commonly known as CADE (Administrative Council
for Economic Defense).

The Federal Prosecutor's Office (MPF) has called for a new review
of the agreement approved in January by CADE's General
Superintendency, according to Rio Times Online.

The Federal Prosecutor's Office (MPF) said the CADE failed to
consider the impact of the deal on all market segments in which the
companies operate, the report notes.

                       About Embraer SA

Headquartered in Brazil, Empresa Brasileira de Aeronautica SA
(Embraer) -- http://www.embraer.com-- is a company engaged in the
manufacture of aircrafts for commercial aviation, executive jet
and defense and government purposes.  The Company has developed a
line of executive jets based on one of its regional jet platforms
and launched executive jets in the entry-level, light, ultra-large
and mid-light/mid-size categories, the Phenom 100/300 family, the
Lineage 1000 and the Legacy 450/500 family, respectively.  The
Company supplies defense aircraft for the Brazilian Air Force
based on number of aircraft sold, and sells aircraft to military
forces in Europe, Asia and Latin America.  In July 2008, the
Company acquired a 40% interest owned by Liebherr Aerospace SAS in
ELEB?Equipamentos Ltda (ELEB).  ELEB is an aerospace system and
component manufacturer, and its products include landing gear
systems, hydraulics and electro-mechanical sub-assem

As reported in the Troubled Company Reporter - Latin America on
Feb. 6, 2019, Moody's Investors Service has placed the Ba1 rating
of Embraer S.A's senior unsecured notes under review for upgrade.
Embraer's Ba1 corporate family rating remains unchanged.


JANAUBA TRANSMISSORA: Moody's Gives Ba1 Rating on EUR575MM Debt
---------------------------------------------------------------
Moody's America Latina Ltda. assigned a Ba1 global scale and Aaa.br
national scale ratings to the second issuance of senior secured
debentures by Janauba Transmissora de Energia Eletrica S.A., in the
amount of BRL575 million, due in 2044. The outlook is stable.

RATINGS RATIONALE

The Ba1/Aaa.br ratings are supported by Janauba's 30-year
concession agreement to build and operate transmission assets
providing for strong cash flows for the project in the operating
phase. The ratings incorporate its expectation of a stable and
predictable revenue stream dictated by the availability-based
contractual structure combined with operations of low complexity,
yielding to an average DSCRs of 1.74x, under Moody's base case, for
the period in which the principal is amortized (2025-2044).

The ratings also consider the project finance structure, which
includes the assignment of security over all the project's assets,
along with other mechanisms for creditor protection, such as a cash
retention trigger, limitations to the issuance of additional debt
and step-in-rights in the event of a default. The ratings further
reflect the very high diversification of the offtake base, the
incentives for timely payment and the overall linkages to sovereign
credit quality of the Government of Brazil (Ba2 stable) due to the
highly regulated nature of the energy sector.

The project is in early stage of construction, having achieved 20%
of physical completion through December 2019. The construction and
ramp-up risks are largely mitigated by a guarantee provided by its
parent company Transmissora Alianca de Energia Eletrica S.A.
(TAESA, Ba1/Aaa.br stable) for the full and timely payment of the
debentures until the project reaches financial completion. All the
environmental licenses have been obtained and the rights-of-way
processes are ongoing in line with initial expectations. The
construction consortium includes several firms and suppliers of
significant expertise, such as subsidiaries of ABB Ltd. (A2
negative), and Siemens Aktiengesellschaft (A1 stable) for the
substation equipment, Alubar Metais e Cabos S.A. for the cables and
Brametal S.A. for the towers.

For the operating phase, Moody's views the revenue profile as
predictable and stable, as per the terms of Janauba's concession
agreement, which establishes availability-based payments that are
adjusted annually by inflation. The project is entitled to receive
BRL174.6 million in revenues, as per the original contractual bid
resulting from the transmission auction held in October 2016, which
is equivalent to BRL194 million in current value. The project was
awarded with a 13.06% discount over the maximum annual revenue
established for the bid, which is considerably lower than average
discounts observed in more recent auctions, that have reached 60%.
As a result, the project's economics are very attractive relative
to other transmission projects in Brazil.

The project operations and maintenance (O&M) activities will be
performed by TAESA; however, an O&M contract has not yet been
formalized. The established budget for operating and administrative
expenses is of approximately BRL20,000 per kilometer, which is
consistent with the average expenses in TAESA's portfolio of
concessions. The exposure to potential increases in O&M expenses is
reflected in Moody's cash flow sensitivities, but the very high
EBITDA margin of 91% under its base case implies low sensitivity of
DSCRs to operating expense increases.

The total investment, including soft costs, is estimated by the
regulator ANEEL in approximately BRL960 million. Once in operation,
the Janauba project is expected to generate annual revenues in the
order of BRL220 million and EBITDA of more than BRL200 million.
Financing sources include the second debentures (60%), the first
debentures (23%), equity injection by TAESA (15%) and financial
revenues accrued during construction phase (2%).

DEBT STUCTURE & SECURITY

Janauba's BRL575 million senior secured debentures (2nd issuance)
were issued as infrastructure debentures pursuant to law 12,431,
where the proceeds will be entirely used to support the capital
investment requirements for the project's completion. The debt is
fully amortizing in 25 years, maturing in December 2044. The
amortization schedule has been customized with both interest and
principal payments planned to occur on a biannual basis starting,
respectively, in December 2022 and December 2025. The principal
amount will be adjusted by inflation (IPC-A) and the interest has
been defined at a fixed cost of 4.8295% per year.

The debt's amortization profile is significantly longer than most
debentures in Brazil supported by the project's favorable
economics. The designed amortization schedule provides for very
little deleveraging over the first five years of the transaction,
leading to very high DSCRs and allowing the company to distribute
significant dividends. In Moody's base case, the project shows
average DSCRs of 2.42x between 2022 and 2024, 1.67x between 2025
and 2035, and 1.82x between 2036 and 2044.

The security package includes the fiduciary alienation of all the
issuer shares, along with the fiduciary assignment of the
concession agreement including all the rights to its cash balances,
future receivables and indemnification in the event of contract
termination. The structure also encompasses an incurrence covenant
test for dividend distributions, constraining pay-out at the
minimum legal requirement of 25% of net earnings if the DSCR drops
below 1.2x. New debt issues are limited in up to BRL200 million for
investment purposes, which provides the sponsor some flexibility
for the remaining capital requirements for project completion. On
the other hand, there are no provisions for a debt service reserve
account or a clear cash waterfall definition that are typically
seen in robust project finance structures.

Debenture holders benefit from an unconditional and irrevocable
guarantee provided by the parent company TAESA for the full and
timely payment of the expected principal and interests on the
debentures until the project is fully completed. The guarantee can
be released only after the project's DSCR is above 1.2x, based on
the audited annual report, the debt is in the amortization phase
with at least two installments on the debentures' scheduled
principal and interest payments, and the legal execution of all the
guarantees to the debenture holders. As such, Moody's expectation
is that the corporate guarantee will remain in place until at least
2026. Based on the terms of the guarantee, the debentures and the
debt at TAESA cross-default.

OUTLOOK

The stable outlook reflects the structure that effectively provides
for credit substitution for the credit profile of the guarantor
until the project achieves completion.

FACTORS THAT COULD LEAT TO AN UPGRADE/DOWNGRADE

The global scale rating is linked to the credit quality of the
sovereign, and positive rating action for Janauba is constrained to
similar positive action for the Government of Brazil. The project's
global scale rating can be downgraded upon a similar rating action
on the sovereign. Aside from that, global scale and national scale
ratings can be downgraded upon deterioration in the credit quality
of the TAESA, as the guarantor until construction is completed.
Upon project completion, negative rating pressure will build-up if
the project faces a deterioration of the long term DSCRs to below
1.30x, driven by much higher than expected operating, maintenance
and administrative expenses, for example.

ISSUER PROFILE

Januaba is a special purpose vehicle fully owned by TAESA which was
created solely for the construction and subsequently the operation
and maintenance of (i) the Pirapora 2 -- Januaba 3 500 kV 238 km
transmission line; (ii) the Bom Jesus da Lapa II -- Janauba 3 500
kV 304 km transmission line; and (iii) the Janauba 3 500 kV
substation. The project is also responsible for additional
construction works on the Pirapora 2 and Bom Jesus da Lapa II
substations in order to accommodate for the new transmission lines.
The project spans through 18 municipalities in the Brazilian states
of Minas Gerais and Bahia.

TAESA is a power transmission company operating and maintaining
around 13,560 km of high voltage (230 to 525kV) transmission lines
through 38 long-term concessions. Currently, the holding company
comprises ten concessions (TSN, Novatrans, ETEO, GTESA, PATESA,
Munirah, NTE, STE, ATE e ATE II), fully investes in nine (ATE III,
Brasnorte, Sao Gotardo, Mariana, Miracema, Janauba, Sant'Ana, SPT
and SJT) and has equity participations in the other 19 (through
ETAU, Aimores, Paraguacu, Ivai, Transmineiras, and TBE), of which
31 are operating and seven are currently under construction. In
addition, after the planned acquisitions, Taesa will likely expand
its portfolio to 13,981 km of transmission lines through 41
concessions.

METHODOLOGY

The principal methodology used in these ratings was Generic Project
Finance Methodology published in November 2019.




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C O S T A   R I C A
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AERIS HOLDING: Moody's Lowers Sr. Unsec. Debt Rating to B1
----------------------------------------------------------
Moody's Investors Service downgraded the Senior Unsecured rating of
Aeris Holding Costa Rica S.A. to B1 from Ba3 and changed the
outlook to stable from negative.

This follows Moody's rating action in which the agency downgraded
the Government of Costa Rica's ratings to B2 and changed the rating
outlook to stable.

RATINGS RATIONALE

The B1 rating of Aeris, one-notch above the Government of Costa
Rica's rating of B2, reflects certain characteristics that limit
its exposure to Costa Rica: substantial international revenues,
access to international financing, and a transparent tariff setting
framework under the Contrato de Gestion Interesada.

Its rating is also supported by the project finance features under
the Notes, including a trust managed cash waterfall, a 6-month (one
semiannual payment) debt service reserve account, a forward looking
3-month Operation and Maintenance Reserve Account, limitations on
additional indebtedness, distribution lock-up tests, and a Capital
Expenditure Prefunding Account.

Passenger traffic continues to perform adequately supporting Aeris'
financial position. In 2019 traffic grew approximately 4.3% with
respect to 2018, which led to financial metrics in line with
expectations. Cash Interest Coverage (cash flow available for debt
service / interest) for 2019 is projected at approximately 2.75x
and Funds from operations to debt of close to 14.0%.

Notwithstanding, the downgrade to B1 recognizes that Aeris has
various linkages with the Government of the Costa Rica. These
include the reliance on the CGI with the government under which the
airport operates and the tariff setting process that requires
government approval.

The stable outlook mirrors the outlook on the ratings of Costa Rica
and the expectation that Aeris' passenger and financial performance
will remain strong relative to the assigned rating.

WHAT COULD CHANGE THE RATING UP/DOWN

The rating could be upgraded if Costa Rica's rating is upgraded and
Aeris continues to record cash interest coverage ratios and
FFO/Debt above 2.0x and 14%, respectively, on a projected basis.

Downward pressure on the rating could develop due to sustained
decreases in passenger traffic and cash flow generation, material
capital expenditure overruns, or weaker financial metrics on a
sustained basis with cash interest coverage ratio consistently
below 1.5 times or its FFO/Debt ratio was consistently below 7.5%.
Further deterioration of the rating of the Government of Costa
Rica, could also lead to downward pressure on the rating.

Aeris Holding Costa Rica S.A. is the operator of the country's main
international airport, Aeropuerto Internacional Juan Santamaria.

The principal methodology used in this rating was Privately Managed
Airports and Related Issuers published in September 2017.




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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: Unfair Competition, Smuggling Has Neg. Impact
-----------------------------------------------------------------
Dominican Today reports that unfair competition and smuggling, the
cost of raw materials and the exchange rate in the Dominican
Republic are the factors that most impacted competitiveness in the
October-December 2019 quarter, according to the "Ranking of Factors
Affecting Competitiveness of the industries."

The quarterly Ranking by the Dominican Republic Industries
Association (AIRD), within the Industrial Short Term Survey (ECI),
indicates that unfair competition and contraband, remained for the
fourth consecutive quarter in first or second position of the
ranking throughout 2019, according to Dominican Today.  The
indicator shows an incidence of 19% in that last quarter, the
report notes.

The indicator has been present in the first three places since
April-June 2018, the report relates.

According to the statement from the AIRD, the cost of raw materials
rose strongly from the sixth position, 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 in April 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: Municipal Elections Suspended
----------------------------------------------------
EFE News reports that the Dominican Republic's Central Election
Board (JCE) suspended the nationwide municipal elections after
multiple technical problems with the automated voting system, which
is being used for the first time, although only in a partial
manner.

The governing Dominican Liberation Party (PLD) said that "sabotage"
in the country's voting system led to the suspension of the
nationwide municipal elections earlier in the day, according to EFE
News.

                   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 in April 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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P E R U
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CAMPOSOL SA: S&P Withdraws 'B+' LongTerm Issuer Credit Rating
-------------------------------------------------------------
S&P Global Ratings withdrew its 'B+' long-term issuer credit rating
on Peru-based fresh food producer Camposol S.A. at the company's
request.

S&P said, "The outlook was stable at the time of the withdrawal,
reflecting our expectation that Camposol should improve its
operating and financial performance over the next 12 months. The
company's recent seafood business spin-off, coupled with higher
production from recent investment in planted fields, should support
higher revenue growth and an EBITDA margin close to 35%. In
addition, Camposol's recent issuance of $350 million senior
unsecured notes extended its debt maturity profile and provides
greater financial flexibility for the company to pursue its
investment plan. As a result, we expect Camposol to post a gross
leverage ratio below 3.0x and slightly negative DCF generation by
the end of 2020.

"Finally, at the time of the withdrawal, our 'B+' rating reflected
Camposol's limited scale of operations compared with those of its
global rated peers, its limited product diversification, and its
still high asset concentration in Peru, despite recent investments
in Colombia and Uruguay. Moreover, Camposol competes in the
competitive, commodity-oriented, and seasonal fresh produce
industry, in which operating performance is subject to
uncontrollable factors such as weather, price fluctuations, and
political risks including potential trade barriers. In the past,
this has typically resulted in volatile earnings, cash flows, and
credit metrics. On the other hand, the company benefits from solid
brand recognition, vertical integration that allows it to control
its products from field to end-clients, and its strategic
plantation location in Peru. We also consider Camposol's solid
market position in the fast growing blueberry and avocado global
markets, above-average EBITDA margins compared to other global
agribusiness companies, and prospects for higher production given
its current expansionary capital expenditure deployment."




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P U E R T O   R I C O
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ADELPHIA COMMUNICATIONS: Announces $33.2M Cash Distribution
-----------------------------------------------------------
Adelphia Communications Corporation ("ACC") on Feb. 6, 2020,
announced a subsequent distribution of $33.2 million in cash
payable on or about Feb. 19, 2020 to holders of Allowed Claims
against the parent Adelphia Communications Corporation pursuant to
the First Modified Fifth Amended Joint Chapter 11 Plan of
Reorganization of Adelphia Communications Corporation and Certain
Affiliated Debtors, dated as of January 3, 2007, as Confirmed (the
"Plan").  ACC has established a Record Date for purposes of this
distribution of February 13, 2020.

A chart summarizing the distribution of cash to be made to holders
of Allowed Claims against ACC will be available in the Important
Documents section of the Company's website at
www.adelphiarestructuring.com.  The chart does not reflect
additional distributions that may be made over time as a result of
the release of reserves.  The amount and timing of such
distributions as a result of the release of reserves are subject to
the terms and conditions of the Plan and numerous other conditions
and uncertainties, many of which are outside the control of
Adelphia and its subsidiaries.

Creditor inquiries regarding distributions under the Plan should be
directed to creditor.inquiries@adelphia.com.

The Effective Date of the Plan occurred on February 13, 2007.
Adelphia Communications Corporation continues under the management
of Development Specialists, Inc., the Plan Administrator, to
liquidate its assets and administer its plan of reorganization.
Prior to the sale of substantially all of the consolidated assets
of Adelphia to Time Warner NY Cable LLC and Comcast Corporation on
July 31, 2006, Adelphia Communications Corporation was the fifth
largest cable television company in the country.  It served
customers in 31 states and offered analog and digital video
services, high-speed Internet access and other advanced services
over its broadband networks.

                   About Adelphia Communications

Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation was once the fifth-biggest cable company.  Adelphia
served customers in 30 states and Puerto Rico, and offered analog
and digital video services, Internet access and other advanced
services over its broadband networks.

Adelphia collapsed in 2002 after disclosing that founder John Rigas
and his family owed $2.3 billion in off-balance-sheet debt on bank
loans taken jointly with the company.  Mr. Rigas was sentenced to
12 years in prison, while son Timothy 15 years.

Adelphia Communications and its more than 200 affiliates filed for
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 02-41729) on
June 25, 2002.  Willkie Farr & Gallagher represented the Debtors in
their restructuring effort.  PricewaterhouseCoopers served as the
Debtors' financial advisor.  Kasowitz, Benson, Torres & Friedman
LLP and Klee, Tuchin, Bogdanoff & Stern LLP represented the
Official Committee of Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas-Managed Entities, were
entities that were previously held or controlled by members of the
Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision LLC.  The RME Debtors filed for Chapter 11 protection
(Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642) on March 31,
2006.  Their cases were jointly administered under Adelphia
Communications and its debtor-affiliates' Chapter 11 cases.

The Bankruptcy Court confirmed the Debtors' Joint Chapter 11 Plan
of Reorganization on Jan. 5, 2007.  The Plan became effective on
Feb. 13, 2007.

The Adelphia Recovery Trust, a Delaware Statutory Trust, was formed
pursuant to the Plan.  The Trust holds certain litigation claims
transferred pursuant to the Plan against various third parties and
exists to prosecute the causes of action transferred to it for the
benefit of holders of Trust interests.  Lawyers at Kasowitz,
Benson, Torres & Friedman, LLP (NYC), represent the Adelphia
Recovery Trust.


PUERTO RICO: Moody's Hikes Series 2011B Bonds Rating to Caa3
------------------------------------------------------------
Moody's Investors Service upgraded the rating on Puerto Rico
Infrastructure Financing Authority Revenue Bonds (Ports Authority
Project) Series 2011B from C to Caa3. The outlook has been revised
to stable from negative.

RATINGS RATIONALE

The rating action reflects final settlement terms between
creditors, the Financing Authority, the Puerto Rico Ports Authority
and the Commonwealth of Puerto Rico (Ca negative). Creditors are
expected to recover approximately 78% of outstanding principal and
accrued interest from a mixture of cash and new bonds sources,
based on Moody's estimated calculation using currently available
information. This is above the 0-35% recovery range for the current
C rating. The Caa3 rating reflects the significant cash portion of
the settlement and an expected lower payout on the previously
issued Government Development Bank Debt Recovery Authority bonds.
The calculation also reflects recovery for all creditors, though
92% of holders participated in the settlement and the remaining
bonds will be outstanding and subject to ongoing negotiation.
Moody's expects to withdraw the rating upon confirmation.

RATING OUTLOOK

The stable outlook reflects its view that recoveries under the
terms of the settlement agreement are likely to be in the Caa3
range given the large cash payment and smaller allocation of new
bonds.

FACTOR THAT COULD LEAD TO AN UPGRADE

  -- Any federal court rulings or actions by the US government or
the FOMB that materially improve bondholder recovery prospects
versus currently anticipated levels.

FACTOR THAT COULD LEAD TO A DOWNGRADE

  -- Appellate rulings that result in bondholders receiving lower
recoveries than anticipated.

LEGAL SECURITY

The bonds were payable solely from revenues received by the
Financing Authority under the Loan and Trust Agreement. The
obligations of the Port Authority under the Loan and Trust
Agreement constitute a general, unsecured obligation of the Ports
Authority, which ranks on parity with all other general, unsecured
and unsubordinated obligations thereof.

The bonds were also secured by two irrevocable, transferable direct
pay letters of credit issued by the Government Development Bank, a
public corporation and governmental instrumentality of the
Commonwealth of Puerto Rico.

PROFILE

The Puerto Rico Infrastructure Financing Authority is a public
corporation established in 1988, with the stated purpose of
providing assistance to other instrumentalities responsible for
commonwealth infrastructure and serving as an alternative means for
financing associated facilities. The Financing Authority is
authorized to issue bonds for its own use or the use of the other
instrumentalities.

The principal methodology used in these ratings was US States and
Territories published in April 2018.




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V E N E Z U E L A
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VENEZUELA: Holds Military Exercises as Pres. Attempts to Show Force
-------------------------------------------------------------------
Manaure Quintero and Efrain Otero at Reuters report that
Venezuela's military held exercises that deployed civilian militia
and armored vehicles in the capital Caracas and around the country,
an effort by President Nicolas Maduro to show strength as
Washington prepares to escalate sanctions.

Maduro accuses the United States of preparing an invasion of the
OPEC nation, which in 2017 U.S. President Donald Trump described as
a possibility. Since last year the United States has ramped up
economic sanctions against his government, according to Reuters.

The exercises were launched days after Maduro formally incorporated
the civilian reserve, a group of some 4 million volunteers with
limited military training, into the armed forces alongside the
army, navy, air force and National Guard, the report notes.

"We have proven the level of command and control of the Bolivarian
militia, complemented by the National Bolivarian Armed Forces,"
said Defense Minister Vladimir Padrino in statements broadcast on
state television, the report discloses.

In one exercise seen by Reuters along a highway in eastern Caracas,
a group of several hundred people including soldiers and militia
members participated in a 10-minute drill that involved blocking
"invaders" from entering the capital, the report relays.

They were joined by civilian members of the ruling Socialist Party
dressed in red shirts who served as look-outs, while soldiers drove
armored vehicles, the report notes.

Reuters relates that the "invaders" were represented by a group of
cars that blocked the highway.

Maduro's adversaries dismiss such exercises as theatrics meant to
disguise the decay of the armed forces amid hyperinflation that has
made Venezuelan salaries -- including those of soldiers --
insufficient to buy basic food, the report notes.

"It's a propaganda exercise by the dictatorship today," opposition
leader Juan Guaido said in a press conference, the report says.

"I say to the armed forces . . . we are with you, we know about
those malnourished soldiers," the report relates.

Maduro has held on to power despite the country’s economic crisis
in large part because of support from the military, the report
notes.

The United States has implemented a broad sanctions program against
his government and has urged the armed forces to turn against him,
the report discloses.

State Department officials this month said they plan new measures
to increase the pressure on Maduro, who says the sanctions are to
blame for the country's economic problems, the report adds.



                           *********


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.

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