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250912.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 Friday, September 12, 2025, Vol. 26, No. 183 Headlines A R G E N T I N A PETROLERA ACONCAGUA: Restructures Debt, Changes Hands B E R M U D A NABORS INDUSTRIES: Completes $600M Quail Tools Sale to Covey B R A Z I L JBS SA: Ramps Up Cattle Tracking in Amazonian State of Para G U A T E M A L A GUATEMALA: IDB OKs $250M Loan to Improve Quality of Life in Motagua J A M A I C A JAMAICA: Chamber of Commerce Warns Against 100% Rise in Min. Wage P A R A G U A Y TELEFONICA CELULAR: Fitch Affirms BB+ Long-Term IDR, Outlook Stable P U E R T O R I C O PUERTO RICO: Dechert LLP Updates List of PREPA Bondholders V E N E Z U E L A CITGO PETROLEUM: US Supports Venezuelan Opposition in Bond Fight - - - - - ================= A R G E N T I N A ================= PETROLERA ACONCAGUA: Restructures Debt, Changes Hands ----------------------------------------------------- Buenos Aires Times reports that oil producer Petrolera Aconcagua Energia SA (Paesa) has completed a $220 million debt restructuring that paved the way for a takeover led by Vista Energy and trading house Trafigura. The report says Paesa, which missed payments this year, is now controlled by Tango Energy. Bnamericas, in a separate report, says Tango Energy -- a venture formed by Vista Energy, a unit of energy trader Trafigura and former YPF CEO Pablo Iuliano -- agreed to inject USD36 million into Paesa to obtain a 90% stake. Under the deal, Paesa's founding partners retain the remaining 10%. Traditionally focused on conventionals, Paesa has been working to build a shale footprint in the Vaca Muerta play, where Vista is the second biggest oil producer after state-owned YPF, Bnamericas relates. This year, Paesa unit Aconcagua Energia Generacion's USD90 million solar PV asset Aconcagua, in Mendoza province, was transferred to Parque Solar Aconcagua. In an auction corresponding to 1Q24, the asset secured 65MW of partial priority dispatch capacity, according to information from wholesale power market administrator Cammesa, the report adds. ============= B E R M U D A ============= NABORS INDUSTRIES: Completes $600M Quail Tools Sale to Covey ------------------------------------------------------------ Nabors Industries Ltd. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that two indirect wholly-owned subsidiaries of Nabors, PD Dutch, LLC and PD ITS, LLC (collectively, the "Sellers") and Covey Holdings, LLC (the "Buyer"), an indirect wholly-owned subsidiary of Superior Energy Services, Inc., entered into a Membership Interest Purchase Agreement, pursuant to which all of the equity interests in Quail Tools, LLC were sold by Sellers to Buyer on August 20, 2025 (the "Sale Date"). The net consideration paid by Buyer in connection with the Sale was $600 million plus adjustments for net working capital. Pursuant to the terms of the Agreement, the consideration consisted of: (a) $375 million in cash which was paid by Buyer on August 20, 2025, and (b) $250 million in the form of a secured promissory note (the "Seller Note") issued by Buyer in favor of PD ITS, LLC (the "Lender") pursuant to the Seller Note and Security Agreement by and among Buyer, Quail, Superior and Lender (the "Seller Note and Security Agreement"). The Agreement contains customary representations, warranties and covenants regarding Quail, Sellers and Buyer. The Seller Note is due on May 20, 2026 and is secured by a first-priority security interest in substantially all existing and after-acquired property of Quail and a pledge on 100% of the equity interests in Quail. The Seller Note also contains certain negative covenants, including restricting Buyer's and/or Quail's ability (and in certain circumstances, Superior's ability), subject to certain specified exceptions, to incur debt, grant liens, merge, make certain restricted payments, sell its assets, prepay debt or amend its organizational documents. Subject to certain exceptions, Buyer and Quail will use the proceeds from certain events of loss, assets sales and debt issuances, to prepay the Seller Note. The Seller Note bears interest at a rate of 7.50% for the first 180 days and thereafter interest at a rate of 10.0%, with such interest to be paid monthly. If there is an Event of Default (as defined in the Seller Note and Security Agreement), the interest rate will increase by 2% over the current interest rate. In addition, if the obligations under the Seller Note and Security Agreement are not paid in full by May 20, 2026, the interest rate will increase by an additional 1% for each month such obligations are not paid in full; provided, however, the interest rate shall not exceed 20%. The Seller Note is guaranteed by Superior and Quail pursuant to the Guaranty Agreement they granted in favor of the Lender for both performance and for payment (the "Guaranty Agreement"). The foregoing descriptions of the Agreement, the Seller Note and Security Agreement and the Guaranty Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of the Agreement, the Seller Note and Security Agreement and the Guaranty Agreement, which are filed as Exhibit 10.1, 10.2 and 10.3, respectively, to the Current Report on Form 8-K and are incorporated therein by reference. The Report on Form 8-K is available at https://tinyurl.com/489puhpn The Agreement, the Seller Note and Security Agreement and the Guaranty Agreement contain representations, warranties, covenants and agreements, which were made only for purposes of such agreement and as of specified dates. The representations and warranties in the Agreement, the Seller Note and Security Agreement and the Guaranty Agreement reflect negotiations between the parties to the Agreement, the Seller Note and Security Agreement and the Guaranty Agreement, respectively, and are not intended as statements of fact to be relied upon by investors, or any individual or other entity other than the parties. In particular, the representations, warranties, covenants and agreements in the Agreement, the Seller Note and Security Agreement and the Guaranty Agreement may be subject to limitations agreed by the parties, including having been modified or qualified by certain confidential disclosures that were made between the parties in connection with the negotiation of the Agreement, the Seller Note and Security Agreement and the Guaranty Agreement, and having been made for purposes of allocating risk among the parties rather than establishing matters of fact. In addition, the parties may apply standards of materiality in a way that is different from what may be viewed as material by investors. As such, the representations and warranties in the Agreement, Seller Note and Security Agreement and the Guaranty Agreement may not describe the actual state of affairs at the date they were made or at any other time and you should not rely on them as statements of fact. Moreover, information concerning the subject matter of the representations and warranties may change after the date of the Agreement, the Seller Note and Security Agreement and the Guaranty Agreement, and unless required by applicable law, Nabors undertakes no obligation to update such information. About Nabors Bermuda-based Nabors Industries Ltd. (NYSE: NBR) owns and operates land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. As of June 30, 2025, the Company had $5.04 billion in total assets, $3.59 billion in total liabilities, and $640.33 million in total stockholders' equity. * * * Egan-Jones Ratings Company on June 10, 2025, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by Nabors Industries, Inc. =========== B R A Z I L =========== JBS SA: Ramps Up Cattle Tracking in Amazonian State of Para ----------------------------------------------------------- Ana Mano at Reuters reports that JBS SA has delivered 123,765 ear tags to individually track cattle in Para state, according to a statement, marking a possible turning point in efforts to halt deforestation in the Amazon. Para passed a law in late 2023 requiring that ranchers in the state identify their cattle by the end of 2026, according to Reuters. Under the initiative, JBS said it aims to deliver 2 million tags in partnership with the Nature Conservancy, a non-governmental organization, to small ranchers in the state, the report notes. Of the total tags so far delivered to farmers, 65,902 are already attached to animals' ears on 89 farms in the state, JBS said, the report says. The move enabled JBS' Maraba beef plant to process individually tracked cattle in Para for the first time, the report discloses. Individually tracking each animal in Para represents a daunting task, as the state boasts a cattle herd of 26 million, about the size of the one in Australia, the report relays. But the move could be a turning point in the struggle to halt the destruction of the world's largest rainforest, as cattle and soybean cultivation have been a key driver of deforestation in the region, the report adds. About JBS SA JBS S.A. is a Brazilian company that is a large meat processing enterprise, producing factory processed beef, chicken, salmon, pork, and also selling by-products from the processing of these meats. It is headquartered in Sao Paulo. It was founded in 1953 in Anapolis, Goias. As reported in the Troubled Company Reporter-Latin America in August 2021, S&P Global Ratings revised the global scale outlook on JBS S.A. (JBS) and its fully owned subsidiary JBS USA Lux S.A. (JBS USA) to positive from stable and affirmed its 'BB+' issuer credit rating. The recovery expectations remain unchanged, and S&P affirmed the 'BB+' ratings on the senior unsecured notes and the 'BBB' ratings on the secured term loans. ================= G U A T E M A L A ================= GUATEMALA: IDB OKs $250M Loan to Improve Quality of Life in Motagua ------------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a $250 million loan to help Guatemala enhance the environment of the Motagua River Basin and the quality of life of its residents. The operation, which has been approved by the IDB's Board of Executive Directors, will finance a program to expand solid-waste collection and disposal. It will also increase treatment of effluents and discharges, strengthen water quality monitoring and control at the national level, and improve local management of sanitation and solid-waste services. The program will directly benefit 166,000 households with access to sanitation and 225,000 households with proper solid waste management. It will also improve the quality of the effluents discharged in the watershed, promote a circular economy for solid waste, and increase formal employment among recyclers, particularly women. The Motagua River Basin is the largest watershed in the country, covering 96 municipalities in 14 departments and home to approximately four million people. Currently, the basin faces problems with solid and liquid waste pollution, deforestation, forest fires, decreased water flow, and erosion. These problems also affect some areas in Honduras, requiring a coordinated, binational effort. Proper solid waste management will require an estimated investment of at least $420 million, while achieving safe sanitation for this population by 2035 will require approximately an additional $2.14 billion. This operation is the first of several planned interventions in the Motagua River Basin, such as building sanitation systems in the northern sub-basin of the Las Vacas River, in the Guatemala City Metropolitan Area. Projects for integrated solid waste management centers and municipal composting units will also be launched. The program includes measures to strengthen institutional capacities and improve the integrated management of solid waste, sanitation, and water resources. These initiatives include support for modernizing the Ministry of Environment and Natural Resources and the Municipal Development Institute. The $250 million operation has a 22.5-year repayment term, an eight-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR). ============= J A M A I C A ============= JAMAICA: Chamber of Commerce Warns Against 100% Rise in Min. Wage ----------------------------------------------------------------- RJR News reports that President of the Jamaica Chamber of Commerce Katherine Silvera says the cost of labour remains one of the biggest costs for manufacturers, a sector that currently employs nearly 100,000 workers. She warns that a 100 per cent increase in the minimum wage would negatively affect their operations, while asserting that manufacturers are the backbone of the Jamaican economy, relates RJR News. According to Ms Silvera, companies would be forced to raise prices, further driving up the cost of living, the report relays. She adds that, without strategies to boost productivity, the move intended to help workers could backfire, ultimately hurting both businesses and employees, the report discloses. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. =============== P A R A G U A Y =============== TELEFONICA CELULAR: Fitch Affirms BB+ Long-Term IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Telefonica Celular del Paraguay S.A.E.'s (Telecel) Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB+'. The Rating Outlook is Stable. Fitch has also affirmed Telecel's senior unsecured notes due 2027 at 'BB+'. Telecel's ratings reflect its leading market position in Paraguay (BB+/Stable), its extensive network and distribution coverage and the strong recognition of its Tigo brand. Telecel's competitive strengths enable strong FCF generation and high margins, resulting in a solid financial profile. Telecel's Foreign Currency IDR is limited by Paraguay's relatively weak operating environment. In addition, Telecel's ratings reflect the linkage between the company and its parent, Millicom International Cellular S.A. (Millicom; BB+/Stable), given Millicom's full control of Telecel through its 100% ownership stake. Key Rating Drivers Parent-Subsidiary Relationship: A parent-subsidiary relationship exists as Millicom holds a controlling 100% share in Telecel. Millicom is a holding company that relies solely on upstream cash flows from its subsidiaries, which exposes Telecel to shareholder distributions that could pressure its FCF generation. Fitch views Telecel's Standalone Credit Profile as the same as Millicom; therefore, the rating is equalized with Millicom's. Strong Profitability: Fitch expects EBITDA margins to be above 40% through the rating horizon supported by lower fixed costs and increased prices paired with its strong market position. In 2024, the company improved its profitability margin to 39% from 32% in 2023 which was pressured due to upfront expenses from cost-saving initiatives. Fitch expects to see further improvement owing to future renegotiations of programming costs with main suppliers. FCF Drives Deleveraging: Fitch projects solid FCF generation before dividends due to strong cash flow from operations that comfortably covers annual capex of around PYG600 billion. Fitch expects the company to delever to below 2.0x in 2025 from 2.3x in 2024, backed by strong operational cash flows and prepayment of its USD debt with partial refinancing in local currency. Fitch anticipates excess cash to be upstreamed to Millicom as dividends starting in 2026. Solid Market Position: Telecel is the leading mobile operator in Paraguay, with a market share of around 55%. The company has an entrenched position with the country's most extensive network. Fitch believes Telecel's market leadership will remain intact, supported by market-leading networks in mobile and fixed-line services, a deep sales network and strong brand recognition. Although competition has intensified in the broadband internet services business in recent years, investments to modernize and expand its network should allow Telecel to maintain its leading position in the market. Weak Operating Environment: Telecel's ratings are limited by a relatively weak operating environment in Paraguay, with a low sovereign rating, weak governance indicators, a shallow local capital market and vulnerability to high macroeconomic volatility. Peer Analysis Telecel is well-positioned compared with telecom peers in the 'BB' category based on high profitability, low leverage and a leading mobile market position, backed by solid network competitiveness and strong brand recognition. Telecel has a strong financial profile with high profitability and low leverage for the rating level compared with regional telecom peers in the same rating category. The company's business profile is in line with Colombia Telecomunicaciones S.A. E.S.P. (BB+/Stable), an integrated telecom operator in Colombia (BB+/Negative). Telecel's credit profile is stronger than those of Axtel, S.A.B. de C.V. (BB-/Stable) and VTR Finance N.V. (CCC) given their lack of service diversification and weaker financial profiles. Telecel's relatively weak geographic diversification and historically high shareholder returns temper the credit. Parent-subsidiary linkage is applicable given Millicom's strong influence over Telecel's operations. Key Assumptions - Relatively stable growth in subscribers and revenue generating units offset by increased prices; - EBITDA margins above 40% benefiting from cost-saving initiatives; - Stable capital intensity around 14%-15%; - Yearly dividends starting in 2026 with value-creating fees between 5% and 6% of revenues; - Prepayment of USD debt in 2025 with partial refinancing in local currency; - Net leverage below 2.0x through the rating horizon. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A multi-notch downgrade of Paraguay's sovereign rating or Country Ceiling could lead to a downgrade of Telecel's Foreign Currency IDR; - A negative rating action on Millicom due to net leverage exceeding 3.5x on a consolidated basis or 4.5x on a holding company debt/dividends received basis; Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Millicom, Telecel's controlling shareholder, would have positive rating implications. Liquidity and Debt Structure Telecel's liquidity position is adequate, supported by its readily available cash balance, conservative leverage and solid FCF. Cash upstreams to Millicom temper financial flexibility somewhat, but no dividends are expected until 2026. Historically, Telecel sends around PYG250 billion of value-creating fees to Millicom annually. The company held a cash balance of PYG1,546 billion against short-term debt of PYG296 billion as of June 30, 2025. The company's total debt at June 30, 2025 was PYG4,771 billion, which consists mainly of a USD290 million (approximately PYG2.300 trillion) senior unsecured bond due 2027 and local currency unsecured bank debt. The company is in the process of refinancing its USD debt with local currency debt to reduce FX risk. Issuer Profile Telecel is the largest telecom operator in Paraguay providing mobile, fixed broadband, pay-TV and mobile financial services, operating under the Tigo brand. The company has the most extensive mobile and hybrid fiber-coaxial networks in the country. Summary of Financial Adjustments - Standard Lease adjustments MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Telefonica Celular del Paraguay S.A.E. LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed BB+ ===================== P U E R T O R I C O ===================== PUERTO RICO: Dechert LLP Updates List of PREPA Bondholders ---------------------------------------------------------- The law firm of Dechert LLP filed a ninth verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure to disclose that in the Chapter 11 case of Puerto Rico Electric Power Authority ("PREPA"), the firm represents the PREPA Ad Hoc Group. Dechert submits this Ninth Verified Statement to update the PREPA Ad Hoc Group's holdings of Bonds and disclosable economic interests currently held by its Members, as of August 25, 2025. Dechert notes that it does not represent the PREPA Ad Hoc Group as a committee (as such term is used in the Bankruptcy Code and Bankruptcy Rules) and does not undertake to, and does not, represent the interest of, and is not a fiduciary for, any creditor, party in interests, or entity other than the PREPA Ad Hoc Group and Invesco. Dechert has been advised by the Members of the PREPA Ad Hoc Group that its Members either hold, or manage funds and/or accounts that hold, collectively, approximately $2.6 billion in aggregate principal amount of uninsured Bonds, in addition to approximately $361.5 million in aggregate principal amount of insured Bonds. The members of the PREPA Ad Hoc Group and their bond holdings in PREPA are: Member Uninsured Bonds Insured Bonds ------- --------------- ------------- AllianceBernstein L.P. $175,480,000 $56,305,000 1345 Avenue of the Americas, New York, NY 10105 Aristeia Capital, L.L.C. $87,140,000 $0 One Greenwich Plaza, Suite 300, Greenwich, CT 06830 BNY Mellon Funds Trust $14,500,000 $0 201 Washington Street, 8th Floor, Boston, MA 02108 Capital Research and Management Co. $309,100,000 $39,080,000 333 South Hope Street, 54th Floor Los Angeles, CA 90404 Columbia Management Investment Advisers, LLC $39,595,000 $0 290 Congress Street, Boston, MA 02210 Delaware Management Company a series of Macquarie Investment Management Business Trust $161,190,000 $0 610 Market Street, Philadelphia PA 19106 Ellington Management Group, L.L.C. $23,255,000 $0 711 Third Avenue, New York, NY 10017 Goldman Sachs Asset Management LP $305,567,038 $98,282,000 200 West Street, New York, NY 10282 Invesco Advisers, Inc. $227,598,788 $108,180,000 225 Liberty Street New York, NY 10281 MacKay Shields LLC $608,545,000 $20,880,000 1345 Avenue of the Americas New York, NY 10105 Massachusetts Financial Services Company $89,565,000 $35,640,000 111 Huntington Avenue, Boston, MA 02199 Old Orchard $108,360,000 Capital Management LP, on behalf of certain funds and accounts it manages or advises. 340 Madison Avenue, Suite 3B, New York, NY 10173 One William Street $201,823,157 $0 Capital Management, L.P., on behalf of certain funds it manages or advises 299 Park Ave., Fl. 25, New York, NY 10171 RUSSELL INVESTMENT COMPANY $26,815,000 $3,015,000 1301 Second Avenue, 18th Floor Seattle, WA 98101 SIG Structured Products, LLC $5,065,000 $0 401 E. City Avenue, Suite 220 Bala Cynwyd, PA 19004 T. Rowe Price $151,120,000 $130,000 100 E. Pratt Street, BA 0754 Baltimore, MD 21202 Tower Bay Asset Management LP $39,630,000 $0 700 Canal Street, Ste 12E Stamford, CT 06902 PREPA Ad Hoc Group is represented by: MONSERRATE SIMONET & GIERBOLINI, LLC Dora L. Monserrate-Peñagarícano, Esq. Fernando J. Gierbolini-González, Esq. Richard J. Schell, Esq. 101 San Patricio Ave., Suite 1120 Guaynabo, PR 00968 Phone: (787) 620-5300 Facsimile: (787) 620-5305 Email: dmonserrate@msglawpr.com fgierbolini@msglawpr.com rschell@msglawpr.com - and - DECHERT LLP G. Eric Brunstad Jr., Esq. Stephen D. Zide, Esq. David A. Herman, Esq. 1095 Avenue of the Americas New York, NY 10036 Phone: (212) 698-3500 Facsimile: (212) 698-3599 Email: eric.brunstad@dechert.com stephen.zide@dechert.com david.herman@dechert.com About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio "Ricky" Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17cv-01578. A copy of Puerto Rico' PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies -- Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) -- commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. ================= V E N E Z U E L A ================= CITGO PETROLEUM: US Supports Venezuelan Opposition in Bond Fight ---------------------------------------------------------------- Claire Shefchik at Royal Gazette reports that the Gold Reserve Ltd, listed on the Bermuda Stock Exchange, has highlighted a new filing by the United States Government in a closely-watched New York court battle over the validity of the 2020 Petroleos de Venezuela, SA bonds. In a Statement of Interest submitted, the US Government reaffirmed its recognition of the 2015 National Assembly as the only democratically elected government of Venezuela and rejected Nicolas Maduro's regime as illegitimate, according to Royal Gazette. The bonds, issued in 2016 under Mr Maduro, have been challenged as unlawful under Venezuelan law, the report notes. The filing urged the court to give "respectful consideration" to the National Assembly's interpretation of Venezuelan law, while emphasising that the US was taking no position on whether the bonds are ultimately enforceable, the report says. The Department of State also drew attention to deteriorating conditions in Venezuela since its last filing in 2020, citing corruption, human rights abuses, narcotics trafficking and a refugee crisis that has driven more than 20 per cent of the population from the country, the report notes. It noted that Edmundo Gonzalez, the opposition candidate, was the true winner of the July 2024 presidential election, despite Mr Maduro declaring victory and launching what it called a "campaign of terror and repression," the report relays. Gold Reserve, which trades under the symbol GRZ.BH in Bermuda, is among several creditors seeking to recover billions of dollars linked to Venezuela's state-owned oil company and its American subsidiary, Citgo, the report discloses. The company has been active in the US court-supervised sales process involving PDV Holding Inc, Citgo's indirect parent, and has previously submitted bids through its Delaware subsidiary, the report says. The company said the American position strengthens the standing of the opposition-led National Assembly in ongoing litigation, the report relays. Gold Reserve remains one of the few BSX-listed companies directly tied to the outcome of Venezuela's sovereign debt disputes, the report adds. As reported in the Troubled Company Reporter-Latin America on Sept. 3, 2025, Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of CITGO Petroleum Corp. (CITGO, or Opco) at 'B' with a Stable Outlook and CITGO Holding, Inc. (Holdco) at 'CCC+'. Fitch also affirmed Opco's existing senior secured notes and industrial revenue bonds at 'BB' with a Recovery Rating of 'RR1'. ********* 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 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *