/raid1/www/Hosts/bankrupt/TCRLA_Public/210121.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, January 21, 2021, Vol. 22, No. 10
Headlines
B R A Z I L
BADESC: Fitch Affirms 'BB-' LongTerm Issuer Default Ratings
BANCO DO BRASIL: To Close 361 Branches and Release 5,000 Staff
BRAZIL: Agribusiness Exports Grow 4.1% in 2020
BRAZIL: Import Tax Cut on Tires to Please Brazil's Truckers
C O S T A R I C A
AERIS HOLDING: Moody's Confirms B3 Rating on Sr. Unsec. Bond
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Puerto Plata Exceed 100 Deaths Due to COVID-19
[*] DOMINICAN REPUBLIC: Haitian, Local Leaders Discuss Issues
G U A T E M A L A
BANCO INDUSTRIAL: Moody's Gives B1 Rating on New Tier 2 Sub. Notes
J A M A I C A
PARAMOUNT TRADING: Sees Decline in Revenue
P U E R T O R I C O
AUTO MASTER: $439,000 Sale of Juncos Property to Route 65 Approved
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: Rock Hard Seeks Cement Injunction
V E N E Z U E L A
VENEZUELA: Oil Industry Continues to Struggle
- - - - -
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B R A Z I L
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BADESC: Fitch Affirms 'BB-' LongTerm Issuer Default Ratings
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Fitch Ratings has Affirmed Agencia de Fomento do Estado de Santa
Catarina S.A. - Badesc's (Badesc) Long-Term Local and Foreign
Currency Issuer Default Ratings (IDRs) at 'BB-' with a Negative
Outlook. Fitch has also affirmed Badesc's Support Rating (SR) at
'3' and its National Rating Long-Term at 'AA (bra)' and National
Rating Short Term at 'F1+(bra)'.
Additionally, Fitch has taken corrective action on the National
Rating Long-Term Outlook, resulting in the Outlook's revision to
Stable from Negative, following the discovery of an error in the
application of the criteria to equalize it to the same ratings and
Outlook of Badesc's parent - the State of Santa Cantaria (Santa
Catarina). This Outlook was not revised in September 2020, right
after the revision of Santa Catarina's National Rating Long-Term
Outlook.
KEY RATING DRIVERS
IDRS, NATIONAL RATINGS, SUPPORT RATINGS
Badesc's IDRs and National Ratings are driven by Fitch's expected
support from its parent (Santa Cantarina State) and are equalized
to the parent's ratings. Fitch considers Badesc as a core
subsidiary in terms of financial services to the state, where
Badesc focuses its operations. Fitch does not assign a Viability
Rating (VR) to the institution, since according to Fitch`s
methodology, VRs are not usually assigned to development banks or
to other financial insitutions with operations that are largely
determined by their policy roles.
Badesc's SR is highly influenced by its role, along with the state,
in Fitch's opinion. The institution is a development arm of the
state's government, being an important entity in boosting the
state's economic growth through lending to micro and small
enterprises, as well as providing resources for municipalities
under the administration of Santa Catarina State. Group regulation
is also a significant factor for Badesc's rating in Fitch's
opinion. The regulator is very active and imposes some limitations
on the actions of the developing agencies in Brazil. In addition,
the regulator imposes any state to be the majority shareholder in
development agencies in Brazil.
In its assessment, Fitch also takes a moderate view of the small
size of the institution relative to the financial capacity of Santa
Catarina; the very low likelihood of apotential sale of Badesc; the
high reputational risk that Badesc represents to the state; the
high level of operational integration between both parent and
subsidiary, and the fact that it is a state-controlled
institution.
The Support Rating of '3' considers the moderate likelihood, as
defined in the criteria, that the parent will provide support if
needed. This is because Santa Catarina's ratings are constrained by
the Brazilian sovereign ratings, which in turn, constrain the
state's capacity to provide support, even though its willingness to
support would be high. The state has consistent revenue generation,
with higher operating margins than its national peers.
The strategy of Badesc is aligned with the state's economic
policies. It primarily provides financial and strategic solutions
focused on structuring projects, productive investments,
infrastructure and, more recently, supporting organic family
farming. Its credit lines are directed primarily to small- and
medium-sized businesses. Badesc also finances municipality
resources and acts as a financing agent for development funds to
boost the state's economy. During the pandemic, Badesc provided
specific emergency credit lines to support credit to micro
companies and small businesses: Badesc Emergencial, with interest
subsidized by the State Government, and Fungetur Emergency Giro,
with interest subsidized by the Federal Government's General
Tourism Fund.
Since Badesc's ratings are driven by support, the issuer's
intrinsic credit metrics have a limited impact on its ratings. Due
to the global scenario of quick economic deterioration due to the
coronavirus, the potential financial profile impact on Badesc will
depend on the length and severity of measures to reduce the spread
of the pandemic.
Badesc's asset quality was adequate compared to the risks it takes.
As of December 2019, the agency's D-H loans accounted for 9.3% of
the total at June 2020, compared with 9.4% in December 2019 and
8.0% in 2018. In 1H20, the operating profit/risk-weighted assets
ratio was 1.0% against 4.0% at YE 2019, 3.4% in 2018 and 5.8% in
2017, the reduction is explained by mainly less revenues from
credit recovery due to the effort being directed to the extension
of installments. The bank has also maintained high capitalization
levels (Common Equity Tier 1 Capital was 34.7% in June 2020).
As a development agency, Badesc has limitations to diversify its
funding base. The loan portfolio has been financed mainly by equity
or on-lendings from official entities, such as BNDES (National Bank
for Economic and Social Development) and FINEP (Financier of
Studies and Projects). The company is highly capitalized and, given
the limitations on raising funds from third parties, it has low
leverage. As a development agency, Badesc must create and
permanently maintain a liquidity fund equivalent to at least 10% of
the value of its obligations to be fully invested in federal
government securities.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to a
positive rating action/upgrade:
IDRS
-- Over the medium term, the ratings could benefit from a Rating
Outlook revision to Stable or upgrade of Santa Catarina's
ratings.
NATIONAL RATINGS
-- The ratings could benefit from upgrade of Santa Catarina's
ratings.
SUPPORT RATING
-- Improvements in SR are dependent on the upgrade of the parent.
Factors that could, individually or collectively, lead to a
negative rating action/downgrade:
IDRS, NATIONAL RATINGS
-- The ratings would be affected by further changes in Santa
Catarina's ratings;
-- The ratings could be affected by reduction of propensity from
the Santa Catarina to support, which is not currently under
Fitch's expectations.
SUPPORT RATING
-- If Santa Catarina's rating is downgraded to the single-B
category, the SR would be downgraded to '4' from '3'.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Financial Institutions and
Covered Bond issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of four notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
Badesc's IDRs and National Ratings are driven by Fitch's expected
support from its parent (Santa Cantarina State) and are equalized
to the parent's ratings.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means 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.
BANCO DO BRASIL: To Close 361 Branches and Release 5,000 Staff
--------------------------------------------------------------
Richard Mann at Rio Times Online reports that in a statement sent
to investors, Banco do Brasil announced that it will close 361
branches and offices, as well as resize its workforce with
voluntary severance packages (VSP). Membership is expected to
decrease 5,000 employees.
The bank is planning to adapt its service network in 361
municipalities, maintaining its own branches in 221 and Mais BB
banking correspondents in the rest, according to Rio Times Online.
Under the new model, 1.3 million customers will now have an
exclusive relationship manager for digital interaction through the
Fale.Com channel, the report notes.
As a result of the pandemic, digital interaction between customers
and the bank has increased, the report relays. The bank's app
reached 4.7 million users, a growth 273% higher than the
pre-pandemic period, the report adds.
As reported in the Troubled Company Reporter-Latin American,
Moody's Investors Service affirmed all of Banco do Brasil S.A.'s
ratings, following the affirmation of the bank's ba2 baseline
credit assessment. BB is rated Ba2 and Not Prime for long-and
short-term local currency deposits and Ba3 and Not Prime
for long- and short-term foreign currency deposits. Banco Do Brasil
S.A. (Cayman)'s long-term senior unsecured foreign currency debt
rating is Ba2. All ratings have a stable outlook.
BRAZIL: Agribusiness Exports Grow 4.1% in 2020
----------------------------------------------
EFE News reports that Brazil's agribusiness exports, one of the
mainstays of the economy, grew 4.1 percent in 2020 compared to the
year before, topping 100 billion U.S. dollars for the second time
on record, the Ministry of Agriculture, Livestock and Supply said
on January 12.
Agribusiness exports last year totaled 100.806 billion U.S.
dollars, the second-highest figure since hitting 101.17 billion
U.S. dollars in 2018, the ministry said in a statement, according
to EFE News.
Last year's agribusiness exports accounted for 48 percent of
Brazil's total sales abroad, the report notes.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
S&P Global Ratings affirmed on December 14, 2020, its 'BB-/B'
long-and short-term foreign and local currency sovereign credit
ratings on Brazil. The outlook on the long-term ratings remains
stable.
Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020). Moody's credit rating for Brazil
was last set at Ba2 with stable outlook (April 2018). DBRS's
credit rating for Brazil is BB (low) with stable outlook (March
2018).
As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings' stable outlook assumes that timely implementation
of fiscal adjustment and modest economic recovery will help
preserve market confidence and adequate funding conditions for the
government in local markets in the next two years, despite a
sustained increase in the debt burden.
BRAZIL: Import Tax Cut on Tires to Please Brazil's Truckers
-----------------------------------------------------------
Lachlan Williams at Rio Times Online reports that in a live stream
on Jan. 14, President Bolsonaro said he intends to clear the import
tariff on tires, currently at around 16%, in a move to please
truckers. The category is threatening to strike on Feb. 1,
according to Rio Times Online.
"The import tariff on tires should be zeroed for truckers, who are
experiencing difficulties," said Bolsonaro. The measure should be
announce, the report relays.
The price of tires is not among the truckers' claims, the report
discloses. The category calls for compliance with the minimum
freight price, which has been challenged by several sector
organizations at the STF, the report adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
S&P Global Ratings affirmed on December 14, 2020, its 'BB-/B'
long-and short-term foreign and local currency sovereign credit
ratings on Brazil. The outlook on the long-term ratings remains
stable.
Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020). Moody's credit rating for Brazil
was last set at Ba2 with stable outlook (April 2018). DBRS's credit
rating for Brazil is BB (low) with stable outlook (March 2018).
As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings' stable outlook assumes that timely implementation
of fiscal adjustment and modest economic recovery will help
preserve market confidence and adequate funding conditions for the
government in local markets in the next two years, despite a
sustained increase in the debt burden.
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C O S T A R I C A
===================
AERIS HOLDING: Moody's Confirms B3 Rating on Sr. Unsec. Bond
------------------------------------------------------------
Moody's Investors Service confirmed the B3 rating assigned to the
Senior Unsecured rating of Aeris Holding Costa Rica S.A. and
changed the rating outlook to negative. The rating action concludes
the rating review that initiated on November 10th, 2020.
Confirmations, previously placed on review for downgrade:
Issuer: Aeris Holding Costa Rica S.A.
Senior Unsecured Regular Bond/Debenture; Confirmed at B3
Outlook Actions:
Issuer: Aeris Holding Costa Rica S.A.
Outlook, Changed To Negative From Rating Under Review
RATINGS RATIONALE
Moody's rating action follows the confirmation that Aeris received
a compensation of approximately $29.9 million from the Government
of Costa Rica (B2 negative) in line with the economic
re-equilibrium clauses established in the Contrato de Gestion
Interesada ("CGI"), under which Aeris operates. The cash injection
materially improves Aeris' cash position easing the pressures on
liquidity. With this cash injection Aeris is expected to will be
able to meet operating expenditures and debt service payments
without drawing from the debt service reserve account.
According to the CGI, Aeris is entitled to receive compensation in
the form of reimbursement, tariff increases or a concession
extension as a result of the decrease of the traffic levels of 15%
or more over the last 12 months. Aeris reached an agreement with
the Government of Costa Rica in which they received $29.9 to
re-establish financial equilibrium. In addition, we understand that
the Government of Costa Rica is analyzing a potential concession
extension.
Aeris rating reflects the slow recovery of traffic amid the
COVID-19 outbreak and its impact on Aeris' liquidity position.
Despite the recent reopening of the airport, Moody's updated
enplanement scenarios incorporate a much slower recovery in 2021.
As a result, Aeris will continue to rely on available cash to
sustain operations and meet debt service payments.
Although Aeris resumed commercial operations in October and opened
its borders to international travelers, the degree and speed of
traffic recovery is uncertain. As of December, traffic was down 74%
compared to the same month in 2020. Moody's expects that the
coronavirus outbreak will continue to result in low passenger
traffic through 2021. On a yearly basis, Moody's currently expects
that the decline in passenger traffic will amount around 60-70%
below 2019 in 2021, although more challenging scenarios could
emerge.
Moody's regards the coronavirus outbreak as a social risk under its
Environmental, Social and Governance (ESG) framework, given the
substantial implications for public health and safety that lead to
severe restrictions to air travel. The ongoing effects of the
coronavirus outbreak along with the need to maintain health and
safety in airport operations will continue to pose risks that are
reflected in the negative rating outlook.
RATING OUTLOOK
The rating outlook is negative to incorporate the uncertainty with
respect to the speed and magnitude of traffic recovery, the
evolution of the pandemic and the effectiveness of the vaccination
programs.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
In light of the negative outlook, upward rating pressure on Aeris'
rating is unlikely in the near future. However, the outlook could
change to stable if the traffic recovery leads to the stabilization
of liquidity and Aeris is projected to record debt service coverage
ratios above 1.1x on a sustained basis.
Conversely, the rating could be downgraded if traffic recovery is
slower than expected, such that Aeris is projected to record debt
service coverage ratios below 1.0x on a sustained basis and
available liquidity is materially reduced.
The principal methodology used in this rating was Privately Managed
Airports and Related Issuers published in September 2017.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Puerto Plata Exceed 100 Deaths Due to COVID-19
------------------------------------------------------------------
Dominican Today reports that Puerto Plata is among the seven
provinces of the country that already exceed the curve of 100
deaths due to this viral disease since last March to date.
In its report on the situation of COVID-19, the Provincial Health
Directorate specifies that there are already 134 deaths from the
coronavirus in this jurisdiction, according to Dominican Today.
According to official statistics, there are 103 admitted patients
in Puerto Plata, of which 83 are in the internment room, 21 in
Intensive Care Units (ICU), while 6 are on a ventilator, the report
notes.
On Jan. 14, some 14 admissions of people affected by the
coronavirus were registered, the report relays. Nine are in local
private clinics, and four are in the Ricardo Limardo University
Teaching Hospital, the report notes.
It is specified that 11 recovered patients have been discharged and
that beds are available to admit new patients who test positive for
the COVID-19 virus, both in the main public hospital in this
province and private health centers, the report discloses.
The provinces of the Dominican Republic where the most deaths from
COVID-19 have been registered are: Santo Domingo with 492 deaths,
the National District registers 412, and in Santiago, 361 deaths
have been reported, the report says.
In the same order, Puerto Plata with 134 deaths; La Vega with 126
reported deaths, Duarte with 125 deaths, San Cristóbal with 120
deaths, and La Romana with 112 deaths, 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.
Luis Rodolfo Abinader Corona is the current president of the
nation.
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, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings.
The negative outlook reflects S&P's view that it could lower the
ratings on the Dominican Republic over the next six to 18 months,
given the severe impact of the COVID-19 pandemic on the
sovereign's already vulnerable fiscal and external profiles, as
well as the potential for a weaker-than-expected economic
recovery.
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: Haitian, Local Leaders Discuss Issues
-------------------------------------------------------------
Dominican Today reports that President Luis Abinader met with
Haitian counterpart, Jovenel Moise, to discuss issues of health,
security, migration, among others, which all form part of the
bilateral agenda of both countries. The meeting took place during
a tour of the Dominican president of various parts of the border,
according to Dominican Today.
"Today I held a meeting with the president of Haiti, @moisejovenel,
to review the bilateral agenda: security, health, trade, migration,
energy and the evolution of the political process in Haiti. We will
publish a declaration of the agreements in the coming days,"
Abinader tweeted, the report notes.
Moise also tweeted that he met with Abinader, "to discuss issues
related to security, health, trade, migration, and other issues of
great interest to both nations," the report relays.
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.
Luis Rodolfo Abinader Corona is the current president of the
nation.
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, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term sovereign credit ratings.
The negative outlook reflects S&P's view that it could lower the
ratings on the Dominican Republic over the next six to 18 months,
given the severe impact of the COVID-19 pandemic on the
sovereign's already vulnerable fiscal and external profiles, as
well as the potential for a weaker-than-expected economic
recovery.
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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G U A T E M A L A
=================
BANCO INDUSTRIAL: Moody's Gives B1 Rating on New Tier 2 Sub. Notes
------------------------------------------------------------------
Moody's Investors Service assigned a B1 foreign currency
subordinated debt rating to the proposed Tier 2 subordinated notes
of Banco Industrial S.A. (Industrial). The proposed notes will be
denominated and settled in USD and will be due in 2031. The notes
are also callable after five years and the issuance amount will be
up to USD300 million.
The following ratings were assigned:
Issuer: Banco Industrial S.A.
Subordinated Debt, Assigned B1
RATINGS RATIONALE
The B1 rating assigned to Industrial's proposed Tier 2 subordinated
notes is positioned one notch below the bank's ba3 adjusted
baseline credit assessment (adjusted BCA), in line with Moody's
standard notching guidance for plain vanilla Tier 2 subordinated
debt. The notes will be junior in right of payment to all of
Industrial's existing and future senior indebtedness and will rank
senior only to the bank's capital stock or any other instrument
that may qualify as Tier 1 capital.
Industrial's ba3 BCA incorporates the bank's historically sound
asset quality and strong profitability that derives from the bank's
favorable funding profile based on low-cost core deposits, as well
as substantial liquidity buffers. Industrial's weak capitalization,
however, is a key credit challenge to its baseline credit
assessment.
The bank's solid risk management and business focus on low-risk
commercial loans, comprising 70% of gross loans, have ensured
relatively stable asset quality, as evidenced by nonperforming
loans ranging between 0.8% and 1.0% of gross loans in the past five
years. However, we expect deterioration in asset quality during the
first half of 2021 because of COVID-19 pandemic-induced loan
restructurings that provided relief to households and commercial
borrowers in 2020. In order to offset a potential rise in credit
risk, the bank built prudential provisions, raising total loan loss
reserves to 2.3x NPLs as of September 2020.
Industrial's standalone creditworthiness is constrained by its
relatively weak capitalization compared to ba3-rated peers. Despite
steadily increasing between 2015 and 2019 from 6.5% to 8.3%, the
bank's Moody's tangible common equity as a percentage of adjusted
risk weighted assets was 8.8% in September 2020. However, the
bank's consistently robust earnings will support its capital
replenishment capacity over the medium term. The bank's regulatory
capital ratios are much higher and comfortably comply with minimum
requirements, due to a 0% risk weighting of Guatemalan government
securities, which account for most of the bank's liquid assets.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
At this juncture, the negative outlook on Industrial's BCA
precludes any positive pressure on the bank's ratings. However, the
outlook could be stabilized if the Government of Guatemala's
sovereign rating outlook returns to stable, provided that the
bank's core capitalization metrics remain adequate, as well as its
asset quality metrics.
The bank's deposit ratings would likely be downgraded if the
Government of Guatemala's government bond rating were downgraded
because the banks' ratings are aligned to those of the sovereign. A
downgrade of the bank's deposit rating would result in a downgrade
of its subordinate debt rating. In addition, the BCA could be under
pressured if the bank's adjusted tangible common equity ratio
remained below 8% on a sustained basis, or if asset quality
deteriorated more than expected because of the pandemic were,
causing a significant reduction in profitability and capital.
METHODOLOGY USED
The principal methodology used in this rating was Banks Methodology
published in November 2019.
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J A M A I C A
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PARAMOUNT TRADING: Sees Decline in Revenue
------------------------------------------
RJR News reports that Paramount Trading Jamaica has reported a
decline in revenue and profit between June and November.
The company said the impact of the pandemic and the economic
decline resulted in revenue contraction, according to RJR News.
Paramount earned $668.8 million compared to $768 million in 2019.
It ended the period with $19.7 million net profit down from $39.5
million in the prior year, the report notes.
=====================
P U E R T O R I C O
=====================
AUTO MASTER: $439,000 Sale of Juncos Property to Route 65 Approved
------------------------------------------------------------------
Judge Enrique S. Lamoutte of the U.S. Bankruptcy Court for the
District of Puerto Rico authorized Auto Master Express, Inc. and
its secured creditor, Route 65, Inc., to sell the Service Station
located at PR 198 km 16.0, Ceiba Norte Ward, in Juncos, Puerto
Rico, investment property at Carr. 198 km 16.0 Bo. Ceiba Norte, in
Juncos, Puerto Rico, to Route 65 for $408,000, plus $30,575 to the
Municipal Revenue Collection Center ("CRIM").
Route 65 will pay of the CRIM's Secured Claim No. 2 the amount of
$30,575. Any remaining amount will be paid through the Plan by the
Debtor.
The sale is free and clear of all liens and encumbrances. The
liens, leases and/or encumbrances encumbering the Property are to
be completely or caused to be cancelled pursuant to the provisions
of Sections 363 of the Bankruptcy Code and in accordance with the
terms of the Order.
Any and all claims, interests (including possession), liens, and
encumbrances that may have been assessed and/or registered at the
CRIM, the Puerto Rico Treasury Department, and the Puerto Rico
Property Registry over the Property will be cancelled.
The Executive Director of the Municipal Revenue Collection Center,
after the receipt of the $30,575 due by the Debtor, will perform
all operations necessary in the systems and records of the CRIM to
cancel, eliminate and/or extinguish any and all real property taxes
that appear as liens, claims, interests or encumbrances over the
Property.
The Secretary of the Puerto Rico Treasury Department will perform
all operations necessary in the systems and records of Treasury to
cancel, eliminate and/or extinguish any and all real property taxes
that appear as liens, claims, interests or encumbrances over the
Property.
The Puerto Rico Property Registrar will perform all registrations
and operations necessary in its systems and records of the PR
Property Registry to cancel, eliminate and/or extinguish any and
all claims, interests or encumbrances over the Property.
A Writ of Cancellation of Liens will be issued by the Clerk of the
Court, whereby the Executive Director of the CRIM, the Secretary of
the Puerto Rico Treasury Department, and/or the Puerto Rico
Property Registrar will be instructed to cancel any liens, claims,
interests or encumbrances assessed over the Property.
Each and every Commonwealth of Puerto Rico governmental agency or
department and state and local governmental agency or department is
directed to accept any and all documents and instruments necessary
and appropriate to consummate the transfer of title of the Property
to Route 65 free and clear of any and all Interests, including the
registration of Route 65 as owner of any real estate acquired from
the Debtor.
The authorizing notary will be exempt from cancellation of any and
all stamp tax, internal revenue and legal aid stamps, or similar
taxes for the transactions set forth at length in the original
deeds of transfer and cancellation of mortgages.
About Auto Master Express
Auto Master Express Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-01464) on March 19,
2018. At the time of the filing, the Debtor estimated assets of
less than $500,000 and liabilities of less than $1 million. The
Debtor engaged Lcdo. Carlos Alberto Ruiz, CSP, as its legal
counsel.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
TRINIDAD & TOBAGO: Rock Hard Seeks Cement Injunction
----------------------------------------------------
Trinidad Express reports that Rock Hard Cement is seeking an
interim injunction preventing the Trinidad & Tobago Government from
imposing a quota and a 50 per cent increase in the import duties on
cement.
The application for that order will come up for hearing during a
virtual hearing before Justice Jacqueline Wilson at the High Court,
according to Trinidad Express.
Rock Hard Distributors of Trinidad and Tobago and Rock Hard
Distribution of St Lucia are challenging a decision announced in
December by the Ministry of Trade and Industry to introduce the
quota from January 1 to allow only 75,000 tonnes importation for
all distributors for the next three years, the report notes.
The distributors are also challenging the ministry's proposal sent
to the Commission for Trade and Economic Development (COTED) for
further suspension of the Common External Tariff (CET) on other
hydraulic cements and to apply the 50 per cent rate of duty, the
report relays.
The report discloses that the quota, import licensing regime as
well as a registration system for grey and other hydraulic cement
came into effect on January 1.
Rock Hard cement is manufactured in Turkey and is consigned to
distributors regionally, the report relays. It began distributing
in the country in 2016, the report notes.
In its claim, Barbados-based Mark Maloney, executive chairman of
Rock Hard Distribution Ltd (RHDL), registered in St Lucia, stated
the Trinidad and Tobago limb of Rock Hard's business was of
particular importance since almost half of the total amount of
cement it purchases is imported into this country, the report
relates.
In his affidavit, Maloney said this gives Rock Hard leverage to
negotiate better pricing from its suppliers in Turkey, the report
relays. Maloney went on to say that, without Trinidad and Tobago,
the brand would not be able to achieve competitive pricing on the
supply of cement or shipping and would not be able to operate in
the region, the report notes.
He stated that for business in the country to remain viable, a
minimum of 300,000 tonnes of cement per annum would have to be
imported into the region, the report discloses.
For the country alone, Rock Hard distributed approximately 150,000
tonnes from 2016 to 2020, he added.
"RHDL and RHTT are therefore substantial contributors to the
economy of Trinidad and Tobago both by way of direct investment,
earning foreign exchange, employment, and the development of the
cement and construction and related industries," the application
maintains, the report notes.
It adds that not only would the cement quota destroy both
businesses, but both decisions will cause the price of cement and
the cost of construction to rise locally, the report relays.
=================
V E N E Z U E L A
=================
VENEZUELA: Oil Industry Continues to Struggle
---------------------------------------------
venezuelanalysis.com reports that Venezuela's oil output has
remained at historic lows at the close of 2020.
The latest OPEC monthly report placed the Caribbean nation's
production at 431,000 barrels per day (bpd) in December, according
to secondary sources, the report notes. The number represents a
17,000 bpd increase compared to November.
The numbers reported directly by state oil company PDVSA stood
slightly higher at 441,000 bpd, up from 431,000 bpd in November,
according to venezuelanalysis.com.
Venezuela's most important industry, which has been plagued by
corruption, mismanagement and a brain drain, has seen output fall
sharply under the weight of punishing US sanctions, the report
relays. Daily production has consistently fallen in recent years,
going from an average of 1.9 million bpd in 2017 to just 500,000
bpd in 2020, the report discloses.
The US Treasury Department has targeted the Venezuelan oil industry
repeatedly since levying financial sanctions in August 2017, the
report relays. Measures have included an oil embargo, secondary
sanctions against Russian energy giant Rosneft, as well as taking
aim at shipping companies and vessels, the report notes.
In late 2020, the Trump administration moved to put a stop to swap
deals by threatening multinational corporations such as Spain's
Repsol and India's Reliance Industries into winding down their
activities in Venezuela, the report recalls.
In contrast, oil giant Chevron and other US-based service providers
had their sanctions waivers extended until June 2021, the report
relays. However, Halliburton recently announced it was laying off
all its Venezuela staff to keep a presence in the country through
equipment and facilities only, the report relates.
The Biden administration, due to take office on January 20, has yet
to take a position on Venezuela since the November elections, the
report notes. Nevertheless, the Miami Herald quoted current White
House Special Envoy for Venezuela Elliott Abrams saying he expects
no "major changes in US policy" and that the new administration
will continue backing self-proclaimed "Interim President" Juan
Guaido, the report relays.
With the industry mired in a slump and growing difficulties to
export crude, the Maduro government has increasingly looked to
improve conditions for private capital investment, both national
and foreign, the report says.
Under former President Hugo Chavez, the government introduced
legislation to increase PDVSA's role in an industry historically
dominated by foreign corporations, the report says. The 2001
Hydrocarbon Law and a 2007 decree stipulate that the state oil
company must retain operational control of oilfields, as well as
hold a share of 60 percent or more in joint ventures, the report
notes.
According to Reuters, the Venezuelan government has offered to let
small oilfield contractors operate fields owned by PDVSA in
exchange for a share of the profits, with reports that a larger
participation for foreign capital in mixed companies is also on the
table, the report relays.
The since-dissolved National Constituent Assembly approved an
"anti-blockade" law in October 2020 allowing the government to
implement measures to boost investment as well as suspend
legislation should it be "counterproductive" as a result of
sanctions, the report discloses. The law also includes
"confidentiality" clauses, making it possible for deals to be
signed in secret to avoid US unilateral measures, the report
notes.
President Maduro stated in annual state of the union address that
his administration's goal was to recover production to 1.5 million
bpd over the coming months, while reiterating the call for foreign
investment, the report relays.
Some leftist forces have criticized the government's overtures to
private investors, arguing that the country's sovereignty over
strategic sectors is imperiled, and that a lack of transparency
could also lend itself to corrupt dealings, 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
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2021. All rights reserved. ISSN 1529-2746.
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