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

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

          Wednesday, March 4, 2020, Vol. 21, No. 46

                           Headlines



A R G E N T I N A

LA RIOJA: Fitch Cuts LT IDR & $300MM Sr. Unsecured Notes to 'C'


B R A Z I L

BRAZIL: Reports R$44BB Surplus, Best January in Historical Series
ITAU UNIBANCO: Fitch Rates $700MM Sub. Perpetual T1 Notes 'B'


C O S T A   R I C A

COSTA RICA: IMF Says Growth Continues to be Subdued


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Product Prices Rise Between DOP3 to DOP40


J A M A I C A

JAMAICA: Launches New Risk Management Standard for Public Entities


M E X I C O

AXTEL SAB: S&P Alters Outlook to Positive & Affirms 'BB' ICR
COMAPA ZC: Moody's Withdraws Ba2 Global Scale Rating


P U E R T O   R I C O

LRJ GLOBAL QUALITY: Hires Santiago & Gonzalez as Counsel
PONCE REAL ESTATE: Seeks Court Approval to Hire Engineer


V E N E Z U E L A

PETROLEOS DE VENEZUELA: 2 Executives Arrested by Intel Agents

                           - - - - -


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A R G E N T I N A
=================

LA RIOJA: Fitch Cuts LT IDR & $300MM Sr. Unsecured Notes to 'C'
---------------------------------------------------------------
Fitch Ratings has downgraded the Argentinian Province of La Rioja's
Long-Term Foreign and Local Currency IDRs to 'C' from 'CCC'. In
addition, Fitch has downgraded the province's USD300 million 9.75%
senior unsecured notes due 2025 to 'C' from 'CCC'. The bond is
rated the same as PLR's IDRs.

KEY RATING DRIVERS

The downgrade of PLR's ratings follows the province's non-payment
of its 9.75% senior unsecured notes debt service due Feb. 24, 2020,
specifically an interest payment due for USD14.625 million. In Feb.
26, 2020, the province announced its intentions to begin
conversations with its creditors concerning the adverse
macroeconomic and public financial conditions currently faced by
the country, without fulfilling its debt service payment as per
contractually stipulated. As stipulated on the notes' indenture,
currently the province is in its 30-day grace period to fully
comply with its financial obligations. The 30-day grace period will
expire on March 24, 2020, and failure to pay is considered an event
of default in the transaction documents.

The notes were issued for USD200 million in February 2017 and then
reopened in the same year for an additional USD100 million
issuance, forming a single series for USD300 million. The bond is
denominated in U.S. dollars and accrues a fixed interest rate of
9.75% payable on a semi-annual basis (February 24 and August 24 of
each year). The bond's maturity date is on Feb. 24, 2025 with equal
capital payments in the last four years (on Feb. 24, 2022, on Feb.
24, 2023, on Feb. 24, 2024 and on Feb. 24, 2025). The notes are a
senior unsecured obligation of PLR governed by the laws of the
state of New York, and its rating is the same as PLR's IDRs. The
proceeds were used for the development of Parque Arauco S.A.P.E.M's
clean energy projects and other public works.

PLR's 'C' ratings reflect the province's current near-default
situation, the entrance of its grace period and the formal
announcement of an intended debt negotiation with bondholders.
PLR's Standalone Credit Profile is 'c'. Fitch has relied on its
rating definitions to position the province's ratings.

Effect from ESG Factors: PLR has an ESG Relevance Score of 4 for
Rule of Law, Institutional & Regulatory Quality, Control of
Corruption and Creditors Rights. The Province operates under a weak
institutional framework resulting in high volatility and
uncertainty. The deteriorated willingness to pay, reflected in the
breach of a formal agreement assuring debt service payment
negatively impacts Creditor Rights.

RATING SENSITIVITIES

La Rioja's ratings are subject to the debt service payments fully
fulfilled before the stipulated grace period expires on March 24,
2020. In the event PLR misses its interest payment, it will be
considered a default by Fitch.

ESG CONSIDERATIONS

Rule of Law, Institutional & Regulatory Quality and Control of
Corruption: 4, Creditor Rights: 4.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3, meaning that 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.

PLR has an ESG Relevance Score of 4 for Rule of Law, Institutional
& Regulatory Quality, Control of Corruption reflecting the negative
impact the weak regulatory framework and national policies of the
sovereign have over the Province.

The Province has an ESG Relevance Score of 4 for Creditor Rights,
which results in the breach of legal documentation stating the full
debt service payments, reflecting the low willingness to pay.




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B R A Z I L
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BRAZIL: Reports R$44BB Surplus, Best January in Historical Series
-----------------------------------------------------------------
Richard Mann at Rio Times Online, citing National Treasury, reports
that the Brazil Federal Government's cash flow recorded a primary
surplus of R$44.124 (US$11.031) billion in January, the best
performance for the month in the historical series, which began in
1997.

The result, which includes the Treasury, Social Welfare and Central
Bank accounts, reversed the R$14.637 billion deficit in December,
according to Rio Times Online.  In January 2019, the result had
been positive at R$30.030 billion, the report notes.

The January result was above the financial market's projections,
whose median surplus pointed to R$38 billion, according to a
Broadcast Projections, the report adds.

As reported in the Troubled Company Reporter-Latin America, Fitch
Ratings in November 2019 affirmed Brazil's Long-Term Foreign
Currency Issuer Default Rating at 'BB-'. The Rating Outlook is
Stable.


ITAU UNIBANCO: Fitch Rates $700MM Sub. Perpetual T1 Notes 'B'
-------------------------------------------------------------
Fitch Ratings has assigned a 'B' Final Long-Term Rating to Itau
Unibanco Holding S.A.'s Subordinated Perpetual T1 notes issued in
the amount of USD700,000,000.

The Final Rating follows a review of the final terms and conditions
conforming to information already received when Fitch assigned the
expected rating on Feb. 19, 2020.

The net proceeds of these notes will be used for general corporate
purposes.

KEY RATING DRIVERS

IUH's Long-Term Issuer Default Rating is 'BB'/Stable and its
Viability Rating is 'bb'. Fitch uses IUH's VR as the anchor rating
for the expected rating. Due to the high loss-absorbing features of
this subordinated, perpetual and unsecured issuance, Fitch's
baseline scenario is that these securities will be notched -4 from
the VR anchor (-2 for loss severity, plus -2 for non-performance
risk). However, Fitch's criteria factors in the compression issue
where the VR is 'bb+' or lower, providing some room for a narrower
notching. Therefore, the overall notching for these securities is
-3, given that the current IUH's VR rating is non-investment
grade.

The notes have the option to defer coupon payments on a
non-cumulative basis subject to certain conditions being met, and
are subject to write-down if common equity Tier 1 (CET1) ratio
falls below 5.125%. In Fitch's view, both the loss severity and the
non-performance risk of these securities are relatively higher than
the outstanding and legacy IUH's T2 hybrid securities.

IUH is the largest private-sector financial conglomerate in Brazil
and Latin America, and its Viability Rating of 'bb' is one notch
above Brazil's sovereign rating, reflecting the exceptionally
strong business and financial profile of the bank relative to the
operating environments in which it operates.

RATING SENSITIVITIES

The long-term rating on IUH's Subordinated Perpetual T1 Notes is
sensitive to any change in the bank's VR. The bank's VR has limited
upside potential given the constraints of its operating
environment. The VR could be downgraded if the bank's loss
absorption capacity diminishes, leading to a decline in its FCC
ratio to below 11%, or if there is a sustained decrease in its
operating profit/risk weighted assets ratio to below 3.0%. IUH's
IDRs and VRs are currently constrained by the sovereign ratings.
However, if the latter is eventually upgraded or revised to an
investment grade VR (i.e. 'bbb-' or higher), then the notching of
these notes will change to a rating level equivalent to -4 from the
bank's VR, considering that the notching compression benefit would
no longer apply in that scenario. 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.




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C O S T A   R I C A
===================

COSTA RICA: IMF Says Growth Continues to be Subdued
---------------------------------------------------
An International Monetary Fund (IMF) team led by Inci Otker visited
San Jose from Feb. 18 to 24 to discuss recent economic
developments, progress with the fiscal reform, and the overall
macroeconomic outlook. The mission held fruitful discussions with
Central Bank President Rodrigo Cubero, Finance Minister Rodrigo
Chaves, members of the Legislative Assembly, other senior
government officials, and representatives of the financial and
private sectors and think-tanks. At the end of the visit, Ms. Otker
issued the following statement:

Macroeconomic conditions remain broadly stable, but growth
continues to be subdued. Following consecutive falls in growth from
2017 to early 2019, the economy has turned around since mid-2019,
owing to a rebound in services, agriculture, and manufacturing and
resulting in an overall estimated growth of 2.1 percent in 2019.
Reflecting the weaker economic activity, elevated unemployment
around 12 percent, lower oil prices, and a stronger domestic
currency (the colon), inflation fell below the 2-4 percent target
range of the Central Bank, while inflation expectations remained
anchored to the mid-point of the target range. The current account
deficit narrowed, fully covered by FDI inflows, with reserve
coverage at comfortable levels. Growth is projected to pick up
modestly to 2.5 percent in 2020, supported by the accommodative
monetary policy stance, an improvement in the terms of trade from
continued low oil prices, and moderately higher public investment.
However, growth remains susceptible to adverse shocks to global
growth, economic and socio-political stress in Nicaragua, the
continued weakness in consumer and business confidence, and
uncertainty regarding the implementation of the fiscal reform.

"Successful implementation of the fiscal reform approved in
end-2018 and the fiscal rule that came into effect with the 2020
budget remain key to preserving macroeconomic stability and
boosting confidence. The successful issuance of a US$1.5 billion
Eurobond in November 2019 helped reduce pressures on domestic
interest rates even further. Implementation of tax measures enacted
in the fiscal reform law started to bring higher revenues. However,
the central government primary deficit still rose to 2.8 percent of
GDP in 2019, and the overall deficit rose to 7 percent, its highest
level in more than 3 decades, owing to a growing interest bill,
higher capital spending, and payment of some transfers owed in
2018. The central government debt reached 58.5 percent of GDP, up
from 53.2 percent in 2018, and doubled its level a decade ago. The
large fiscal deficit is the main risk to macroeconomic stability,
with debt projected to exceed 60 percent of GDP in 2020.

"The authorities announced an additional fiscal adjustment package
earlier this month, aimed at reducing debt and supporting economic
growth. The measures include efforts to improve tax administration,
reduce tax evasion, review tax exemptions, replace expensive debt
with cheaper financing, and reform the public sector -- including
through the consolidation of public institutions and the
streamlining of public wage scales - as well as asset sales and
using financial surpluses of decentralized public agencies toward
reducing debt. The mission welcomes the authorities' additional
efforts toward fiscal consolidation, while considering that the
expected yield of some of the measures may take time to
materialize. Given this, timely implementation of the already
enacted reforms, clarity on the workings and strict implementation
of the fiscal rule across the board (with the exceptions recognized
by the fiscal reform law), and front-loading measures as much as
possible to yield more immediate results, will be key to reviving
confidence and further lowering funding costs. This will also help
put debt more quickly on a sustained downward path toward a level
prudent for emerging economies and create buffers against future
shocks. The efforts will need to strike a good balance between
spending cuts and revenue mobilization, while protecting growth and
the vulnerable.

"The mission welcomes the authorities' efforts to implement
monetary policy oriented towards supporting economic activity,
increasing exchange rate flexibility, and enhancing transparency
and communication to strengthen monetary policy transmission and
maintain inflation expectations firmly anchored. The mission also
welcomes the authorities' efforts to reduce the impact of
dollarization on financial stability through greater exchange rate
flexibility, differentiation of the reserve requirement on domestic
and foreign currency-denominated deposits, and the upcoming
reversal of the reduction in provisions for FX loans to non-dollar
earners.

"The efforts to implement a broad array of structural reforms,
underpinned by the substantial progress made towards OECD
accession, including the planned environmental and education
reforms and passage of the laws on deposit insurance and
consolidated supervision, should support competitiveness, potential
growth, and financial stability. The mission, however, recommends
caution regarding ongoing discussions on introducing lending rate
limits, for their negative impacts on financial inclusion,
financial intermediation, and monetary policy transmission. The
mission suggests addressing the underlying causes of high interest
rates, particularly those related to distortions on the operation
of public and private banks. Tackling these distortions would also
contribute to strengthening monetary policy transmission.

"The team would like to thank the authorities for their warm
hospitality and all stakeholders for the candid and fruitful
discussions. The team looks forward to returning in June 2020 to
conduct the Article IV Consultation and provide a fuller assessment
of the economic situation."

As reported in the Troubled Company Reporter-Latin America on Feb.
17, 2020, Moody's Investors Service downgraded the Government of
Costa Rica's long-term issuer and senior unsecured bond ratings to
B2 from B1 and changed its rating outlook to stable from negative.




===================================
D O M I N I C A N   R E P U B L I C
===================================

DOMINICAN REPUBLIC: Product Prices Rise Between DOP3 to DOP40
-------------------------------------------------------------
Dominican Today reports that the products of the basic basket have
increased from 3 to 40 pesos in some sales centers of Greater Santo
Domingo, which has alerted sellers and consumers, who have to have
more money to be able to stock up.

Among the items that increased prices is beef, which five days ago
was selling at 95 pesos a pound, now it is at 100, for a rise of
five pesos; pork, five days ago the pound was sold at 65 pesos,
today it costs 70, increasing 5 pesos; cod, a week ago cost 93
pesos a pound now sells for 115, up 22 pesos; a pound of garlic a
week ago sold at 140 pesos today costs 180, for an increase of 40
pesos, according to Dominican Today.

Citrus fruits also reflected significant increases, so Wander
Santos, who is 15 years old as a New Market trader, said that "it
is very difficult for them to go down until Holy Week passes," the
report relays.

The unit of sour lemon "Persian" was sold a month ago from 3 to 4
pesos, is shipped from 6 to 10 pesos, for a rise of 3 to 6 pesos;
the unit of sour orange a month ago cost from 2.5 to 3 pesos, now
ships at 5 pesos, two pesos more expensive, the report notes.

                               Reaction

The Minister of Agriculture, Omar Benitez, said that the people can
be assured that there are enough chickens, rice, eggs, food, and
beans in the country, so he promised that the Dominican Republic
will not lack food, the report notes.

                              Offer Issue

                             Justification

The Minister of Agriculture, Omar Benitez, said that "prices in the
economy go up and down, depends on the supply; when a price goes
up, the offer is not enough and when it goes down, there is an
oversupply," the report discloses.

                      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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J A M A I C A
=============

JAMAICA: Launches New Risk Management Standard for Public Entities
------------------------------------------------------------------
RJR News reports that the government of Jamaica has launched a new
Risk Management Standard for public-sector organizations.

The guidelines are geared towards achieving a stable macroeconomic
environment as well as reducing risk and uncertainty in
decision-making, according to RJR News.

The standard was developed by a range of stakeholders, the report
notes.

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.




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M E X I C O
===========

AXTEL SAB: S&P Alters Outlook to Positive & Affirms 'BB' ICR
------------------------------------------------------------
On Feb. 28, 2019, S&P Global Ratings revised its outlook on
Mexico-based information and communication technology (ITC)
services provider, Axtel S.A.B. de C.V. to positive from stable. At
the same time, S&P affirmed its issuer credit and issue-level
credit ratings on Axtel at 'BB'.

The positive outlook reflects the company's stronger-than-expected
financial performance during 2019, resulting in a faster
deleveraging than originally expected. In 2019, Axtel focused on
overhauling its operations to increase customer base and add higher
value to its services. Axtel divided its operations into two new
business units, services (Alestra) and infrastructure. The services
unit accounted for approximately 49% of total EBITDA stemming from
its telecom and solution offerings. The infrastructure unit
accounts for the remainder, mainly from its network connectivity
assets. S&P said, "Through the new operating strategy, we expect
Axtel to maintain revenue growth prospects and to align capex with
its cash generation, reducing future debt funding. In addition,
Axtel aims to lower churn rates, given that the services provided
for these types of customers are built-to-suit, for which we
consider low substitution probability rates."

As of this report's date, the company has been consistent in
aligning its operating strategy to the market needs and to keep up
with the industry's rapid technology updates to remain competitive
and to reach its growth prospects. S&P said, "We expect Axtel's new
operational structure to maximize its asset value by expanding
connectivity coverage through strategic alliances (Equinix Inc.)
outside Mexico, while continue targeting blue chip companies, such
clients remain on average of more than seven years. In addition, we
believe the new focus will generate stable EBITDA margins of about
33% in the next few years, in line with our estimates for the
industry average."

S&P said, "We expect Axtel to continue deleveraging in the next
12-18 months, mainly through stronger cash flows, rather than
through asset sales. We also expect the company remain an important
competitor in the telecom and IT market, despite the sale of three
data centers and the massive segment business in 2018." Failing to
achieve these factors could prevent an upgrade of Axtel.

Since 2019, Axtel's capex dropped significantly after it divested
its massive business unit. This segment required aggressive cash
outflows to maintain infrastructure and achieve growth prospects.
S&P expects greater capex flexibility, aligning it to service a
larger customer base. Therefore, S&P estimates positive FOCF in the
next two years.


COMAPA ZC: Moody's Withdraws Ba2 Global Scale Rating
----------------------------------------------------
Moody's de Mexico has withdrawn the Ba2 (Global Scale, local
currency) and A2.mx (Mexico National Scale) issuer ratings of
COMAPA Z.C. Moody's has also withdrawn the stable outlook.

Moody's has withdrawn the ratings for its own business reasons.

The principal methodology used in these ratings was
Government-Related Issuers published in June 2018.




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

LRJ GLOBAL QUALITY: Hires Santiago & Gonzalez as Counsel
--------------------------------------------------------
LRJ Global Quality Concrete, Inc., seeks authority from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ the Law
Office of Santiago & Gonzalez Law, LLC, as counsel to the Debtor.

LRJ Global Quality requires Santiago & Gonzalez to represent and
provide legal services to the Debtor in relation to the bankruptcy
proceedings.

Santiago & Gonzalez will be paid at these hourly rates:

     Attorneys                $150 to $200
     Paralegals                   $50

Santiago & Gonzalez will be paid a retainer in the amount of
$4,000.

Santiago & Gonzalez will also be reimbursed for reasonable
out-of-pocket expenses incurred.

Nydia Gonzalez, associate of the Law Office of Santiago & Gonzalez
Law, LLC, assured the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the Bankruptcy
Code and does not represent any interest adverse to the Debtor and
its estates.

Santiago & Gonzalez can be reached at:

     Nydia Gonzalez, Esq.
     LAW OFFICE OF SANTIAGO & GONZALEZ LAW, LLC
     11 Betances Street
     Yauco, PR 00698
     Tel: (787) 267-2205
     E-mail: bufetesg@gmail.com

              About LRJ Global Quality Concrete

LRJ Global Quality Concrete, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. D.P.R. Case No. 19-06780) on Nov. 19, 2019,
disclosing under $1 million in both assets and liabilities.  The
Debtor is represented by Nydia Gonzalez, Esq., at the Law Office of
Santiago & Gonzalez Law, LLC.


PONCE REAL ESTATE: Seeks Court Approval to Hire Engineer
--------------------------------------------------------
Ponce Real Estate Corp. seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to employ an engineer to
inspect the structural conditions of its real properties in light
of the earthquake and seismic activity in the southwest area of
Puerto Rico.  

The Debtor proposes to employ Danny Febles Moscoso, P.E. to render
these services:

   a. Visit all sites identified by the Debtor for visual
inspection and take photographs of the damaged areas.

   b. Prepare and submit reports, with photos, of each inspected
structure, with a detailed listing of the findings and possible
preliminary recommendations.  

   c. Evaluate the construction blueprints available to identify
the main structural elements of each building or structure.

Mr. Moscoso will be paid $4,000 for said services.  The proposal
does not include design, improvements and retrofitting
recommendations.  Additional visits to sites already agreed to will
cost no less than $150 each.
  
The Debtor did not pay Mr. Moscoso a retainer fee.

Mr. Moscoso declares in court filings that he and his staff
members
are all disinterested persons as that term is defined in Section
101(14) of the Bankruptcy Code.  

Mr. Moscoso, P.E., may be reached at:

   1108 Monte Membrillo
   Quintas de Altamira
   Juan Diaz, Puerto Rico 00795-9131
   Telephone: 787-315-4689
   Email: dfebleswork@gmail.com.
                                    
                   About Ponce Real Estate Corp.

Ponce Real Estate Corp. is registered in the Department of State of
Puerto Rico as a domestic for-profit-corporation and is in the
business of owning and leasing real estate properties for
commercial or residential purposes.  Its principal place of
business is located at 49 Mendez Vigo St., Ponce, P.R., which is
property of PRE.  Francisco I. Vilarino Rodriguez is 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 was estimated to have assets
of $1 million to $10 million and liabilities of the same range.
Judge Edward A. Godoy oversees the case.

The Debtor tapped EMG Despacho Legal, CRL as its legal counsel, and
Tamarez CPA, LLC as its accountant.




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

PETROLEOS DE VENEZUELA: 2 Executives Arrested by Intel Agents
-------------------------------------------------------------
Marianna Parraga at Reuters reports that Venezuelan intelligence
agents detained two executives from PDVSA's supply and trading
division, three company sources said, just over a week after
President Nicolas Maduro appointed a commission to restructure the
state-run oil company.

Under growing pressure due to U.S. sanctions on PDVSA and its main
business partner, Rosneft Trading, Maduro last week ordered the
nation's economy vice president, Tareck El Aissami, who is under
sanctions himself, to lead a committee to reorganize the company,
according to Reuters.

Maduro said he would accept no more excuses from PDVSA's workers,
including reasons related to sanctions, to justify its performance,
and declared an "energy emergency" in the country, the report
notes.

In one of its first decisions, the commission appointed a
lieutenant colonel with no apparent industry experience, Antonio
Perez Suarez, as vice president of PDVSA's supply and trading
division, the report relays.  It is yet unclear if other vice
presidents who were asked to resign are still in office, the report
says.

The executives detained, Aryenis Torrealba and Alfredo Chirinos
from supply and trade's operations, left the company in handcuffs
according to two of the sources, the report notes.  Torrealba is
also a board member of PDVSA's refining unit in Europe, Nynas AB,
the report discloses.

The arrests occurred after the commission last week demanded
employees from the supply and trading division close accounting
books. Following similar action in the financial department, its
vice president, Fernando De Quintal, was called to testify before
PDVSA's internal affairs department, according to the sources, the
report relays.

Since a board led by Manuel Quevedo, a major general from the
National Guard, took PDVSA's reins in 2017, detentions and probes
against employees over corruption or wrongdoing have not been
unusual. But little evidence has so far been made public to
demonstrate culpability, the report says.

The most notable cases occurred in late 2017 when Nelson Martinez
and Eulogio Del Pino, former PDVSA presidents, were arrested on
corruption charges, the report notes.  Martinez died while in state
custody in 2018. Del Pino remains in prison, as do six other top
executives from PDVSA's U.S. refining unit, Citgo, who were
arrested in 2017, the report adds.

                              About PDVSA

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

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

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

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



                           *********


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

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2020.  All rights reserved.  ISSN 1529-2746.

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contact Peter A. Chapman at 215-945-7000.
.


                  * * * End of Transmission * * *