/raid1/www/Hosts/bankrupt/TCRLA_Public/200827.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, August 27, 2020, Vol. 21, No. 172
Headlines
A R G E N T I N A
ARGENTINA: Stark Data Underlines Pandemic's Impact on Economy
GAUCHO GROUP: $89M Accumulated Deficit Raises Going Concern Doubt
GAUCHO GROUP: Reports $1.64 Million Net Loss in Second Quarter
B E R M U D A
NABORS INDUSTRIES: Needs Financial Waiver to Remain Going Concern
SEADRILL LTD: Says Substantial Doubt Still Exist on Going Concern
B R A Z I L
ITAU UNIBANCO: S&P Affirms BB-/B Rating, Outlook Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Exports Fell 7.97% During First Half of 2020
DOMINICAN REPUBLIC: President Says Economic Recovery Not So Easy
M E X I C O
ALPHA GUARDIAN: Court Confirms Chapter 11 Reorganization Plan
P E R U
PERU: Big Informal Sector Expands Further Amid Pandemic
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO HOSPITALITY: Hotel School to Close Permanently
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Oct. Deadline for Sanction Exemption Mulled
- - - - -
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A R G E N T I N A
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ARGENTINA: Stark Data Underlines Pandemic's Impact on Economy
-------------------------------------------------------------
Agence France-Presse reports that economic activity contracted by
12.9 percent in the first half of 2020, compared to the same period
of 2019, underlining the impact of the coronavirus pandemic.
However, new data revealed by the INDEC national statistics bureau
also showed that the economy showed early signs of recovery in June
after the strict Covid-19 lockdown brought trade to a dramatic halt
by April, according to Agence France-Presse.
Economic activity rebounded 7.4 percent in June from May, below
economists expectations of a 10 percent monthly jump, the report
notes.
Only financial services (up 4.8 percent) and utilities (namely
electricity, gas and water, up 3.6 percent) showed year-on-year
growth, the report says.
The most severe contractions were felt in community, social and
personal services activities (down 63.2 percent), hotels and
restaurants (down 62.7 percent) and fishing (down 53.6 percent),
the report discloses.
Economic activity was down 12.3 percent in June from the previous
year, INDEC said, although that was an improvement on April (down
26 percent) and May (down 20.5 percent), the report says.
"The improvement was mainly due to a greater relaxation of
restrictions on movement, mainly in industry and commerce,
especially in the provinces less affected by covid-19," the bureau
said in its report, the report notes.
It's the second straight month of improving data, though the
economy is far from out of the woods. Argentina's government
tightened its lockdown again in July after loosening some
quarantine restrictions in June, the report says.
President Alberto Fernandez also hasn't laid out a broad plan to
get the economy out of a recession stretching into its third year,
nor the end of a quarantine that began March 20 and currently lasts
until August 30, the report discloses.
Argentina's economy is forecast to contract 12.5 percent this year
according to private estimates, on pace for the worst one-year
decline on record, along with inflation above 40 percent and
double-digit unemployment, the report relays.
The economy has been in recession since 2018 and GDP contracted by
2.5 percent last year, 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.
As reported by the Troubled Company Reporter - Latin America on
April 14, 2020, Fitch Ratings upgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating to 'CC' from 'RD' and
Short-Term Foreign Currency IDR to 'C' from 'RD'.
The TCR-LA reported on April 13, 2020, that S&P Global Ratings
also lowered its long- and short-term foreign currency sovereign
credit ratings on Argentina to 'SD/SD' from 'CCC-/C'. S&P also
affirmed the local currency sovereign credit ratings at 'SD/SD'.
There is no outlook on 'SD' ratings.
On April 9, the TCR-LA reported that Moody's Investors Service
downgraded the Government of Argentina's foreign-currency and
local-currency long-term issuer and senior unsecured ratings to Ca
from Caa2.
GAUCHO GROUP: $89M Accumulated Deficit Raises Going Concern Doubt
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Gaucho Group Holdings, Inc. filed its quarterly report on Form
10-Q, disclosing a net loss of $1,295,492 on $296,986 of sales for
the three months ended March 31, 2020, compared to a net loss of
$1,400,957 on $440,495 of sales for the same period in 2019.
At March 31, 2020, the Company had total assets of $5,986,624,
total liabilities of $7,051,058, and $10,091,258 in total
stockholders' deficiency.
The Company said, "We have generated significant losses which have
resulted in a total accumulated deficit of approximately $89
million, raising substantial doubt that we will be able to
continue
operations as a going concern. Our independent registered public
accounting firm included an explanatory paragraph in their report
for the years ended December 31, 2019 and 2018, stating that we
have incurred significant losses and need to raise additional
funds
to meet our obligations and sustain our operations. Our ability
to
execute our business plan is dependent upon our generating cash
flow and obtaining additional debt or equity capital sufficient to
fund operations. If we are able to obtain additional debt or
equity capital (of which there can be no assurance), we hope to
acquire additional management as well as increase the marketing of
our products and continue the development of our real estate
holdings.
"Our business strategy may not be successful in addressing these
issues and there can be no assurance that we will be able to
obtain
any additional capital. If we cannot execute our business plan on
a timely basis (including acquiring additional capital), our
stockholders may lose their entire investment in us, because we
may
have to delay vendor payments and/or initiate cost reductions and
possibly sell certain company assets, which would have a material
adverse effect on our business, financial condition and results of
operations, and we could ultimately be forced to discontinue our
operations, liquidate and/or seek reorganization under the U.S.
bankruptcy code."
A copy of the Form 10-Q is available at:
https://is.gd/EElF5U
Gaucho Group Holdings, Inc., through its subsidiaries, invests in,
develops, and operates real estate projects in Argentina. The
company was formerly known as Algodon Group, Inc. and changed its
name to Gaucho Group Holdings, Inc. in March 2019. Gaucho Group
Holdings was founded in 1999 and is headquartered in New York, New
York.
GAUCHO GROUP: Reports $1.64 Million Net Loss in Second Quarter
--------------------------------------------------------------
Gaucho Group Holdings, Inc. filed with the Securities and Exchange
Commission its quarterly report on Form 10-Q, disclosing a net
loss
attributable to common stockholders of $1.64 million on $117,332
of
sales for the three months ended June 30, 2020, compared to a net
loss attributable to common stockholders of $2.13 million on
$268,733 of sales for the three months ended June 30, 2019.
For the six months ended June 30, 2020, the Company reported a net
loss attributable to common stockholders of $3.07 million on
$414,318 of sales compared to a net loss attributable to common
stockholders of $3.71 million on $709,228 of sales for the same
period during the prior year.
As of June 30, 2020, the Company had $5.62 million in total
assets,
$7.82 million in total liabilities, $9.01 million in series B
convertible redeemable preferred stock, and a total stockholders'
deficiency of $11.20 million.
"Based upon projected revenues and expenses, the Company believes
that it may not have sufficient funds to operate for the next
twelve months from the date these financial statements are made
available. Further, while the Company plans to apply to NASDAQ
later this year to uplist its common stock, should that effort not
be successful, the Company would be required, on December 31,
2020,
to redeem all Series B Shares that have not been previously
converted to common stock. The cost to redeem these shares would
likely have a material adverse effect on the Company's financial
position and would likely require either the liquidation of
certain
Company assets or an effort to raise new equity or debt financing.
Whether the Company would be able to consummate any such
transaction, should it need to do so, on economically beneficial
terms or otherwise, cannot be presently known. The aforementioned
factors raise substantial doubt about the Company's ability to
continue as a going concern."
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1559998/000149315220016278/form10-q.htm
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 subsidiaries, 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 $7.38 million for the year ended Dec. 31, 2019,
compared to a net loss attributable to common stockholders of
$6.40
million for the year ended Dec. 31, 2018. As of March 31, 2020,
the Company had $5.98 million in total liabilities, $7.05 million
in total liabilities, $9.02 million in series B convertible
redeemable preferred stock, and a total stockholders' deficiency
of
$10.09 million.
Marcum LLP, in New York, the Company's auditor since 2013, issued
a
"going concern" qualification in its report dated March 30, 2020
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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B E R M U D A
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NABORS INDUSTRIES: Needs Financial Waiver to Remain Going Concern
-----------------------------------------------------------------
Nabors Industries Ltd. filed its quarterly report on Form 10-Q,
disclosing a net loss of $137,945,000 on $535,967,000 of total
revenues and other income for the three months ended June 30, 2020,
compared to a net loss of $192,835,000 on $771,875,000 of total
revenues and other income for the same period in 2019.
At June 30, 2020, the Company had total assets of $5,982,415,000,
total liabilities of $4,040,798,000, and $1,507,486,000 in total
equity.
The Company said, "Our 2018 Revolving Credit Facility contains
certain covenants, including a financial covenant requiring Nabors
to maintain net funded debt at no greater than 5.5 times our EBITDA
over the trailing twelve months (the leverage ratio). Throughout
2019 and through the first six months of 2020, we have been in
compliance with all covenants. However, the current drilling and
drilling related services environment, and the impact it has had on
our operations and cash flows, has made our ability to continue to
comply with the leverage ratio increasingly uncertain if these
conditions continue into 2021. Based on our current forecasts,
which are highly uncertain given current market conditions, it is
possible we will be in violation of this covenant in 2021, if
conditions do not improve meaningfully. Failure to comply with
this covenant, if not amended or waived, would result in an event
of default under the 2018 Revolving Credit Facility and the
potential acceleration of the outstanding balance, which raises
substantial doubt about the Company's ability to continue as a
going concern throughout the twelve month period following the
issuance of these financial statements."
A copy of the Form 10-Q is available at:
https://is.gd/oLN4ph
Nabors Industries Ltd. provides drilling and drilling-related
services for land-based and offshore oil and natural gas wells. It
operates through five segments: U.S. Drilling, Canada Drilling,
International Drilling, Drilling Solutions, and Rig Technologies.
Nabors Industries Ltd. was founded in 1952 and is headquartered in
Hamilton, Bermuda.
SEADRILL LTD: Says Substantial Doubt Still Exist on Going Concern
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Seadrill Limited filed its Form 6-K, disclosing a net loss of
$1,565 million on $321 million of total operating revenues for the
three months ended March 31, 2020, compared to a net loss of $296
million on $302 million of total operating revenues for the same
period in 2019.
At March 31, 2020, the Company had total assets of $7,497 million,
total liabilities of $7,381 million, and $86 million in total
equity.
The Company said, "In November 2019, we made the election to defer
$63 million of balances that would have otherwise fallen due in the
current quarter.
"In March 2020, we elected to defer a further $74 million that
would have otherwise fallen due in the quarter ended June 30, 2020.
This leaves a remaining $363 million to be deferred in future
periods. If we defer the remaining balance then the amounts due in
the year ended March 31, 2021 will reduce to $40 million and the
amounts due in the year ended March 31, 2022 will reduce to $558
million.
"Since the fourth quarter of 2019, we have been engaged in
discussions with our secured lenders regarding potential amendments
to our credit facilities to provide operational flexibility and
additional near-term liquidity by, among other things, converting
certain interest payments under our credit facilities to
payment-in-kind ("PIK") interest and deferring certain scheduled
amortization payments (or increasing the aggregate amount of such
payments that may be converted to loans payable at the final
scheduled maturity date of the relevant facility pursuant to the
amortization conversion election provisions contained in the
facility agreements). Our debt service is anticipated to be
primarily comprised of interest through at least Q1 2021 because
our facility agreements contain certain provisions that allow us to
elect to defer and convert up to $500 million in the aggregate of
scheduled amortization payments under certain of our credit
facilities. We have already elected to use a portion of this
capacity with respect to the scheduled amortization installments
under our credit facilities occurring in Q1 and Q2 2020. We intend
to continue exercising this option for each subsequent scheduled
amortization payment date until such capacity is fully utilized;
however, we cannot guarantee that we will be able to satisfy the
conditions set forth in the facility agreements in order to be able
to do so. We have forecasted that we will not be able to meet the
requirements under our ongoing liquidity financial covenant
contained in the facility agreements within a twelve-month period
following the date of this report and had requested consent for
certain liquidity enhancing measures in order to mitigate this.
Failure to comply with such liquidity requirements could result in
a default under the terms of our facility agreements if we are
unable to obtain a waiver or amendment from our lenders for such
non-compliance. We had also requested that our lenders consent to
an extension of the periods before which we are required to comply
with the net leverage and debt service coverage financial covenants
in our facility agreements because we currently anticipate that we
will not be able to meet these requirements when such covenants
begin to be tested at the end of Q1 2021. If we are unable to
comply with the net leverage and debt service covenants in our debt
agreements between Q1 2021 and Q4 2021 this will lead to an
interest margin increase of up to 100 bps in the form of PIK
interest. However, this does not constitute an event of default.
"Whilst substantial support was indicated by our secured lenders
for the consents discussed above, as certain of the amendments
impacting economic terms required 100% approval across 43
institutions, recent market uncertainties have prevented a
coalescing of views. As a consequence, Seadrill has decided not to
proceed with the bank consent and has retained financial and legal
advisors to prepare for a comprehensive restructuring of the
balance sheet. Whilst we continue to evaluate various alternatives
to address the cost of debt service and overall volume of debt, we
anticipate that a comprehensive restructuring may require a
substantial conversion of our indebtedness to equity. With $1.2
billion cash on hand Seadrill believes that this provides
sufficient liquidity to complete a comprehensive restructuring
process. However, until such time that an agreement is reached to
restructure our borrowing commitments, substantial doubt remains
over our ability to continue as a going concern."
A copy of the Form 6-K is available at:
https://is.gd/DcC0nM
Seadrill Limited is an offshore drilling contractor providing
worldwide offshore drilling services to the oil and gas industry.
The Company is based in Bermuda.
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B R A Z I L
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ITAU UNIBANCO: S&P Affirms BB-/B Rating, Outlook Stable
-------------------------------------------------------
S&P Global Ratings affirmed its 'BB-/B' global scale and
'brAAA/brA-1+' national scale ratings on Itau Unibanco Holding. The
outlook on the global and national scale ratings is still stable
and the SACP on the bank remains at 'bbb'.
The ratings on Itau reflect its diversified and resilient business
position stemming from a market-leading franchise, geographic and
business diversification, and its strong capacity to generate fee
revenue. S&P said, "Our ratings also incorporate the bank's
diversified and stable funding base due to a large retail deposit
base and adequate liquidity coverage of short-term wholesale
funding. We also factor in the bank's capital position, which have
been pressured by high dividends payments, weaker earnings due to
high credit provisions, high portion of deferred tax assets (DTAs)
and strong credit growth in 2020."
Even though COVID-19 has reached Latin America later than other
regions of the world, its impact was already evident in the largest
Brazilian banks' first-half 2020 results. The weakening asset
quality led Itau and most of its large peers to increase
substantially provisions for credit losses, jeopardizing
bottom-line results. As a result, Itau's net income decreased
around 40% as of June 2020 compared to one year before. On the
other hand, Itau's lending growth increased in the first half of
2020 to 19% year over year. This was mostly due to the rising
volume of corporate loans as companies seek to strengthen working
capital cash positions amid the pandemic. Itau, on the other hand,
had regulatory incentives to increase lending, given that the
central bank approved many measures to expand funding and capital
availability through lower reserve deposits and capital
requirements. Another important regulatory measure enabled banks to
renegotiate existing loans for up to six months that helped
maintain the loan portfolio. Retail lending, on the other hand,
posted modest growth as demand for some products such as credit
cards and auto loans decreased. Finally, Itau's exposure abroad,
which represent near 30% of total loans, increased due to the
Brazilian real's falling value in the first half of 2020.
S&P said, "However, we expect Itau's asset quality metrics to
remain under control in 2020, given the bank's tight underwriting
standards and flexibility to restructure loans to mitigate
potential losses stemming from higher risk in the economy.
Nevertheless, we believe the bank's sound NIMs and fee revenue to
continue to serve as a buffer against credit losses."
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Exports Fell 7.97% During First Half of 2020
----------------------------------------------------------------
Dominican Today reports that total exports from the Dominican
Republic fell 7.97% during the first semester of 2020, compared to
the same period of 2019.
The data is contained in the Trade Magazine published by the
Customs Directorate, which indicates that during the first half of
this year total exports reached US$4.5 billion, about US$390.22
million less than in the same period of 2019, when the activity
reached US$4.9 billion, according to Dominican Today.
The document indicates that for the period of January to June 2020,
57.20% of exports belonged to the free zone regime, 39.04% to the
national regime, 3.56% to temporary admission and the remaining
0.21% to re-export, the report notes.
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 negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).
DOMINICAN REPUBLIC: President Says Economic Recovery Not So Easy
----------------------------------------------------------------
Dominican Today reports that President Luis Abinader said he was
aware that economic recovery is not easy, since the fiscal deficit
increased by about 25 billion pesos.
He argued that the levels of public debt, even before the pandemic,
had reached the limits of recklessness, after noting that the
State's consolidated debt had doubled in the last decade, according
to Dominican Today.
In his swearing-in speech, Abinader stated that there had not been
an increase in the well-being of citizens in the recent past, but
there has been an increase in public debt and deficits, the report
notes.
"This is the scenario we are facing today, that is the balance that
we have found, a balance that we are firmly committed to reversing,
improving the quality of spending and eliminating waste and
corruption," said the president, the report relays.
Social Programs
In another order, Luis Abinader announced that he would extend the
Stay at Home and FACE programs until December, aimed at the people
most affected by COVID-19, the report notes.
In that sense, he indicated that concomitant tax facilities would
be extended, especially for small and medium-sized companies, 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 negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).
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M E X I C O
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ALPHA GUARDIAN: Court Confirms Chapter 11 Reorganization Plan
-------------------------------------------------------------
Force 10 Partners on Aug. 18, 2020, announced the confirmation of
Alpha Guardian and related debtors' Chapter 11 Plan of
Reorganization. The Plan was confirmed by the Honorable Mike K
Nakagawa of the United States Bankruptcy Court – Nevada.
Nicholas Rubin of Force 10 Partners served as the Chief
Restructuring Officer of Alpha Guardian. As CRO, Mr Rubin was
responsible for leading Force 10's successful operational
turnaround during the heart of the COVID-19 pandemic, which
resulted in significant positive operating cash flow and record
results. A case study on Alpha Guardian is available from Force
10.
Force 10 also oversaw the financial restructuring process and
successfully negotiated a consensual plan of reorganization
between
the Debtors, the secured creditors and the official committee of
unsecured creditors whereby over $100 million of senior secured
debt and over $30 million of junior claims were exchanged for
interests in a trust, while the balance of the senior secured debt
converted into equity of the reorganized Debtor.
Force 10 implemented aggressive efforts to stem operating losses,
including reducing payroll, improving operational efficiencies,
creating oversight of accounting processes, and collecting
significantly past-due receivables. Such efforts resulted in
substantial additional cash flow. As a result, the Debtors drew
only $1.1 million of a $4.0 million Debtor in Possession financing
facility.
Alpha Guardian was established in July 2017 through the
acquisition
and amalgamation of Cannon Safe and Stack-On Products, resulting
in
a market leader in the safe and secure storage industry. Alpha
Guardian’s brands have led the way in providing consumers with
secure storage solutions. Its products are sold to major
retailers
across the United States under the Cannon Safe, Stack-On Products
and GunVault brands. Alpha Guardian operates manufacturing and
distribution facilities in the U.S. and Mexico.
Other professionals contributing to the success of the case are
Garman Turner Gordon LLP, legal counsel to the Debtors; Brown
Rudnick LLP, legal counsel to the Official Committee of Unsecured
Creditors; and Schwartz Law PC, legal counsel to the senior
secured
creditor.
About Force 10 Partners
Force Ten Partners, LLC, d/b/a Force 10 Partners, is based in
Newport Beach, California. The advisory firm has deep domain
knowledge in financial and operational corporate restructuring,
valuation, forensic accounting, complex litigation support, and
computations involved in court proceedings and dispute resolution.
Force 10 serves middle-market companies as well as their
creditors,
stakeholders, and professionals, in roles including financial
advisor, interim manager, fiduciary services, expert witness,
financier, and M&A advisor. (www.force10partners.com)
About Alpha Guardian
Established in July 2017, Alpha Guardian --
https://www.alphaguardian.com/ -- provides consumers with secure
storage solutions. Its products are sold to major retailers
across
the United States under the Cannon Safe, Stack-On and GunVault
brands, all of which are designed to fill unique consumer needs.
The company operates manufacturing and distribution facilities in
the U.S. and Mexico and has employees in multiple countries.
Cannon Safe -- https://www.cannonsafe.com/ -- is a manufacturer of
large-scale gun safes and secure home storage solutions. Since
1965, its focus has been on manufacturing safes to protect prized
possessions.
GunVault -- https://www.gunvault.com -- offers a wide range of gun
safes including biometric safes, pistol safes, and portable safes.
Stack-On -- https://www.stack-on.com/ -- manufactures and
distributes gun security products.
Alpha Guardian and its affiliates filed Chapter 11 petitions
(Bankr. D. Nev. Lead Case No. 20-11016) on Feb. 24, 2020. At the
time of the filing, Debtors had estimated assets of between $10
million and $50 million and liabilities of between $100 million
and
$500 million in liabilities.
Judge Bruce T. Beesley presides over the cases.
The Debtors tapped Garman Turner Gordon LLP as their bankruptcy
counsel, and Nicholas Rubin of Force Ten Partners, LLC, as their
chief restructuring officer. Stretto is Debtors' claims noticing
and solicitation agent.
The U.S. Trustee for Region 17 appointed a committee of unsecured
creditors on March 11, 2020. The committee tapped Brown Rudnick,
LLP as its lead bankruptcy counsel, and McDonald Carano, LLP as
its
local counsel.
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P E R U
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PERU: Big Informal Sector Expands Further Amid Pandemic
-------------------------------------------------------
Monica Martinez at EFE News reports that Lima's Central Market has
seen a rise in the number of street vendors who were forced into
that option after their stable job or small business abruptly
disappeared amid the coronavirus-triggered lockdowns, one
manifestation of a recent expansion of Peru's already large
informal sector.
Street vending is prohibited in downtown Lima, but Peruvians use
their ingenuity to avoid the security guards and sell their wares
until shortly before a nighttime curfew starts at 10 pm, the report
says.
Peru's lockdowns have exacted a heavy economic toll, with several
million left unemployed since the quarantine began and the vast
majority of working-age people now making a living in the informal
sector, according to figures from economist Kurt Burneo, the report
notes.
"Prior to the quarantine or social isolation, we had 72 percent of
(workers) in the informal sector; in other words, just over seven
out of 10 were informal," Burneo said in an interview with EFE
News.
"Now with the results we're seeing, the sustained drop in economic
activity, considering that from April to June we had 6.7 million
unemployed . . . this has contributed to the informal rate in the
labor sector rising possibly to a number near nine," he added.
"Nine out of 10 (workers), when it had been seven out of every 10,"
the economist said.
The fact that nearly two-thirds of the population works in the
informal sector "creates vulnerability in the economy as a whole,"
said economist Jorge Chavez, chief executive officer of the
consulting firm Maximixe, the report notes.
"Consumption has fallen in Peru because the large portion of the
population that's informal . . . accounts for 58 percent of
consumption," which has tumbled as their income has fallen amid the
pandemic, he added.
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T R I N I D A D A N D T O B A G O
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TRINIDAD & TOBAGO HOSPITALITY: Hotel School to Close Permanently
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Trinidad Express reports that the board of the Trinidad and Tobago
Hospitality and Tourism Institute (TTHTI) in Chaguaramas announced
that it has decided to initiate the voluntary winding up of the
institute, citing non-payment of budgeted subventions by the
Government and its closure in March as a result of the Covid-19
restrictions.
In a statement, the board said last month letters requesting urgent
meetings were dispatched to the Ministry of Education by both the
TTHTI and its parent body, the Trinidad Hotels, Restaurants and
Tourism Association (THRTA), according to Trinidad Express. These
were sent on July 9 and 21, 2020.
The institute said in these letters, it sought further clarity on
the reasons or explanations for the withholding of subvention
payments to the institute (over $13 million) which were approved in
national budgets for the fiscal years 2017, 2018, and 2019 by the
Parliament of the Republic of Trinidad and Tobago, the report
notes.
"There has been no acknowledgement or response to these letters of
request. The unexplained, continued unwillingness of the
Government over the past several years to engage in discussions
with the TTHTI, along with the impact of this global pandemic, has
left the board with no other options but to permanently close the
institute.
"The voluntary winding up the TTHTI is the only viable course of
action to potentially satisfy debts owed to creditors, staff,
suppliers, students and financiers. Over the coming weeks,
representatives of the institute will be engaging affected
stakeholders to discuss the way forward," the report notes.
Explaining the impact of the Covid-19 pandemic, the TTHTI said
following the discovery of the first coronavirus case, Government
immediately ordered the closure of several non-essential businesses
in an attempt to limit virus contagion, the report relays.
These regulations stated that all educational establishments shall
not be open for the purpose of providing education to persons
unless permitted by the minister, the report discloses. The TTHTI
said it continues to remain closed up to present date as per public
health regulations issued, the report says.
Hands-on Training
The institute noted that the primary training and educational
products offered by the TTHTI are practical-based and tactile in
nature, the report notes. This requires students to be physically
present at the institute's campus in Chaguaramas to receive
hands-on training in the fields of culinary arts, baking and pastry
arts, and food and beverage management, the report relays.
The Covid-19 pandemic meant that all confirmed in-person classes
and scheduled training programs were cancelled since March 2020,
according to the TTHTI statement obtained by the news agency.
Citing the confirmation of community spread of Covid-19, along with
rapid acceleration of positive cases and increases in deaths, the
institute pointed out that Prime Minister Dr Keith Rowley indicated
that educational establishments were likely to remain closed until
the end of the year, the report relays.
"Whil[e] the importance of these public health measures are well
understood by the TTHTI's board, the harsh financial reality is
that the Institute has been unable to effectively generate revenue
from its core educational products and services since March, 2020
and it is unlikely that it would be able to do so for the remainder
of the year at minimum. The closure period over the past five
months has already significantly eroded the institute's working
capital and stymied the achievement of revenue forecasts outlined
in its viable growth plan, initiated in December 2019," the TTHTI
said, the report notes.
The institute said while it is not alone as an educational
institution being shut down, "its situation is exacerbated by the
'in-person' requirements for several aspects of the delivery of the
educational products, coupled with the exceedingly bleak outlook
for the hospitality and tourism industry given its specialization
and symbiotic relationship with this industry," the report notes.
The TTHTI said in June 2020 the Road Map to Recovery Committee
recommended a task force be convened by the Government to urgently
develop a tourism recovery plan for Trinidad and Tobago addressing
priority areas, resource needs as well as appropriate solutions,
the report notes.
"The Tourism Industry Task Force has not yet been convened and as
such, without intervention or support, similar to the $50 million
invested by Government in Tobago tourism operators and businesses,
further fallout and permanent business closures, especially in
Trinidad, is anticipated, particularly with the recent limitations
placed on the business activities of food and beverage operators as
per public health regulations," the report adds.
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V E N E Z U E L A
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PETROLEOS DE VENEZUELA: Oct. Deadline for Sanction Exemption Mulled
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Jonathan Saul and Marianna Parraga at Reuters report that the
United States is considering an October deadline for ending
exemptions to Venezuelan sanctions that allow some companies and
refiners to still receive the South American producer's oil, two
sources said, as Washington seeks to raise the heat on President
Nicolas Maduro.
U.S. President Donald Trump has ramped up sanctions on Venezuela's
state-run PDVSA, its key foreign partners and customers since it
first imposed measures against the company in early 2019, seeking
to oust the left-leaning Maduro after a 2018 re-election considered
a sham by most Western nations, according to Reuters.
Officials in Washington say the failure of sanctions to loosen
Maduro's grip on power has frustrated Trump. With November's
presidential election approaching, the U.S. government is preparing
to toughen its stance on Venezuela, especially the sanctions on its
oil and gold industries, the sources said, the report notes.
The sanctions have already deprived PDVSA of most of its long-term
oil customers, reducing oil exports to below 400,000 barrels per
day (bpd), their lowest level in almost 80 years, the report
relays.
The report discloses that a handful of European and Asian customers
have continued taking Venezuelan oil under specific authorizations
granted since last year by the U.S. Treasury for transactions that
do not involve cash payments to Maduro's administration.
The list includes Italy's Eni (ENI.MI), Spain's Repsol (REP.MC),
India's Reliance Industries (RELI.NS) and Thailand Tipco Asphalt
(TASCO.BK). About a dozen mostly unknown firms also have emerged as
customers this year, according to PDVSA's exports documents, the
report relays.
The U.S. administration is moving to set an October deadline for
winding down all trade of Venezuelan oil, including swaps and
payments of pending debt with crude, the sources said, the report
notes.
"Whatever oil business is left has to be completed (by the
deadline)," one of the sources said, the report relays.
A further tightening of the sanctions on Venezuela's main export
industry would be likely to exacerbate not only chronic shortages
of fuel in the South American country but also lack of everything
from basic foodstuffs to medicines, the report notes.
PDVSA, Reliance, Tipco and the U.S. Treasury did not immediately
reply to requests for comment.
A U.S. State Department spokesman said they "continue to engage
with companies in the energy sector on the possible risks they face
by conducting business with PDVSA." Repsol, which at the end of
2019 registered 239 million euros in unpaid debt in Venezuela, said
its operations were fully compliant with international laws, the
report notes.
Eni said it was operating in full compliance with the U.S.
sanctions framework and would continue to do so "in continuous
dialogue with all U.S. relevant authorities," the report relates.
Traders and sources from those companies familiar with export
operations from Venezuela said they have not yet been notified of
the changes, the report relays. Almost all PDVSA's remaining
long-term customers have since 2019 requested authorization from
the U.S. Treasury to take Venezuelan oil under non-cash contracts
agreed with PDVSA as a way to receive payment for pending debts or
outstanding dividends, or to exchange Venezuelan crude for fuel,
the report discloses. In February, the Treasury's Office of
Foreign Assets Control (OFAC) sanctioned what was then PDVSA's main
trade partner, Rosneft Trading, the report relays. In March, OFAC
followed with sanctions on another unit of Russia's Rosneft
(ROSN.MM), TNK Trading, and in June it sanctioned two Mexico-based
firms that exchanged Venezuelan oil for trucks, the report relays.
Most buyers of Venezuelan crude have since ceased business with
PDVSA to avoid falling foul of sanctions while new--mostly
unknown--clients have emerged in recent months, taking cargoes
under complicated transactions often involving trans-shipments at
sea and multiple re-sales, the report notes. Venezuela has also
recently deepened business with Iran, infuriating Washington, which
this month seized 1.1 million barrels of Iranian fuel bound for
Venezuela after getting a warrant from a U.S. court, the report
relays.
The United States in April gave U.S. Chevron Corp (CVX.N) and a
handful of U.S.-based oil service firms until Dec. 1 to wind down
all operations in Venezuela, the report notes. Chevron had stopped
trading Venezuelan crude in March, and in July it wrote down its
entire investment in the country, the report discloses.
Chevron did not immediately reply to a comment request.
Even though the U.S. government cites Venezuela's plummeting oil
exports as a success of its sanction policy, some officials
privately acknowledge that application has been inconsistent, the
report adds.
Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and islets
in the Caribbean sea. The capital is the city of Caracas.
Hugo Chavez was president to Venezuela from 1999 to 2013. The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum. Nicolas Maduro was elected president in 2013 after the
death of Chavez. Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.
The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis. It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.
S&P Global Ratings, in May 2019, removed its long- and short-term
local currency sovereign credit ratings on Venezuela from
CreditWatch with negative implications and affirmed them at
'CCC-/C'. The outlook on the long-term local currency rating is
negative. At the same time, S&P affirmed its 'SD/D' long- and
short-term foreign currency sovereign credit ratings on Venezuela.
Moody's credit rating (long term foreign and domestic issuer
ratings) for Venezuela was last set at C with stable outlook in
March 2018. Meanwhile, Fitch's long term issuer default rating for
Venezuela was last in 2017 at RD and country ceiling was CC. Fitch,
on June 27, 2019, affirmed then withdrew the ratings due to the
imposition of U.S. sanctions on Venezuela.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
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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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