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/raid1/www/Hosts/bankrupt/TCRLA_Public/140625.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 Wednesday, June 25, 2014, Vol. 15, No. 124 Headlines A R G E N T I N A ARGENTINA: Asks U.S. Judge for Talks in Debt Dispute ARGENTINA: Judge Picks Lawyer to Oversee Talks B R A Z I L OSX BRASIL: Incurs $1 Billion Loss in First Quarter C A Y M A N I S L A N D S AVONDALE LTD: Creditors' Proofs of Debt Due July 17 CITRICO INTERNATIONAL: Creditors' Proofs of Debt Due Aug. 18 FAIRLOP INVESTMENTS: Creditors' Proofs of Debt Due July 17 GRACE LIMITED: Creditors' Proofs of Debt Due July 17 JUBILEE INVESTMENTS: Creditors' Proofs of Debt Due July 17 NEXUS ADVISORS: Commences Liquidation Proceedings ORMIEY LTD: Creditors' Proofs of Debt Due July 17 SHALOM INVESTMENTS: Creditors' Proofs of Debt Due July 17 T & T HOLDINGS: Creditors' Proofs of Debt Due July 17 YONDER STAR: Creditors' Proofs of Debt Due July 17 D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: To Boost Health Care With $100MM IDB Loan M E X I C O CUERNAVACA: S&P Raises LT National Scale Rating to 'mxBB' P U E R T O R I C O COSTA BONITA: Court Orders Voluntary Dismissal of Chapter 11 Case CUE & LOPEZ: Harrison Seeks to Withdraw as Debtor's Counsel V E N E Z U E L A PETROLEOS DE VENEZUELA: Loses US$15.1 Billion in Fuel Subsidy - - - - - ================= A R G E N T I N A ================= ARGENTINA: Asks U.S. Judge for Talks in Debt Dispute ---------------------------------------------------- Ken Parks and Nicole Hong, writing for The Wall Street Journal, reported that Argentina took its first step in U.S. court toward negotiating with holdout creditors in a bid to end a dispute over unpaid debt and avoid a default. According to the report, Argentine stocks and bonds rallied after Argentina asked U.S. District Judge Thomas Griesa to give it more time to seek a deal with hedge funds suing to collect on bonds affected by the country's 2001 default. The court filing indicated Argentina still wanted to make a deal, investors said, the Journal related. In a signal that talks could soon get under way, Mr. Griesa appointed attorney Daniel Pollack to preside over negotiations, the report further related. ARGENTINA: Judge Picks Lawyer to Oversee Talks ---------------------------------------------- Bloomberg News reports that the managing partner of McCarter & English LLP in New York, Daniel Pollack, was assigned to mediate the stalemate between Argentina and its holdout bondholders after the U.S. Supreme Court let stand a decision requiring full payment on the debt. U.S. District Judge Thomas Griesa directed that Mr. Pollack preside as a special master over settlement negotiations between Argentina and creditors the country refers to as "vultures," according to Bloomberg News. The talks may take place in public or private, Judge Griesa said in a court filing, adding that Mr. Pollack doesn't have power to issue rulings, Bloomberg News relates. "I am moving as rapidly as possible to be of assistance to the parties," Mr. Pollack told Bloomberg News in a phone interview. Argentina defaulted on a record $95 billion debt in 2001, replacing the defaulted bonds with new ones at a sharp discount in two restructurings, Bloomberg News recalls. Bondholders that refused the exchange, including NML Capital, won their court battle when the high court on June 16 declined to review judge Griesa's ruling that Argentina must pay holders of defaulted bonds when it pays the holders of its restructured debt, notes the report. Court Orders The country, which has refused to comply with court orders in the past, says its $29 billion of foreign reserves are too low to meet the burden placed on it by the court rulings, Bloomberg News adds. Mr. Pollack specializes in financial litigation in the firm's New York office and his clients have included T. Rowe Price Associates Inc. and Wells Fargo & Co. Mr. Pollack has served as an adjunct professor at the University of Arizona Law School, where he teaches a seminar on negotiating employment agreements. Carmine Bocuzzi, a lawyer for Argentina in New York, asked Judge Griesa in a letter to delay all of the proceedings "to allow for the commencement of good faith negotiations between Argentina and its creditors," Bloomberg News relates. A stay would allow Argentina to make a June 30 debt payment on restructured bonds while beginning talks with the holdouts. Major Disputes Bloomberg News discloses that Argentina has settled major disputes with foreign creditors in recent months, Mr. Bocuzzi said in his letter to the court. In May, the government reached an agreement to compensate Madrid-based Repsol SA (REP) for seizing its Argentine unit in April 2012, and three weeks later reached a $9.7 billion accord with the Paris Club group of lenders. The recent settlements, which Mr. Bocuzzi called "voluntary and equitable," were "breakthroughs that reflect Argentina's focus on emerging from the crisis of 2001 and normalizing its relationship with its creditors," Bloomberg News notes. Mr. Bocuzzi said Argentina can't afford to pay some of its creditors in full while not paying others, Bloomberg News notes. Mr. Bocuzzi said that the total amount due to holdouts from the republic's debt restructuring "exceeds half the country's reserves." "No country could pay half of its reserves, and Argentina cannot afford to be left without the means to manage its currency or handle the rest of its economy, including meeting the needs of its citizenry," Mr. Bocuzzi said in a letter to the judge, Bloomberg News discloses. Judge Griesa didn't rule on the request for a delay. The case is NML Capital v. Republic of Argentina, 08-cv-6978, U.S. District Court, Southern District of New York (Manhattan). =========== B R A Z I L =========== OSX BRASIL: Incurs $1 Billion Loss in First Quarter --------------------------------------------------- Reuters reports that OSX Brasil SA posted a net loss of BRL2.42 billion (US$1.08 billion) in the first quarter, the company said in a securities filing. OSX reported a net loss of BRL17.9 million in the same period last year, according to Reuters. Brazilian shipbuilding firm OSX Brasil SA, controlled by businessman Eike Batista, filed for protection from creditors on November 2013 on liabilities of BRL5.34 billion (US$2.30 billion). OSX Brasil filed for bankruptcy -- called "judicial recovery" in Brazil -- after Oleo e Gas Participacoes SA, formerly known as OGX Petroleo e Gas Participacoes, filed for bankruptcy on Oct. 30, 2013. OSX had outstanding debts of around US$2.2 billion as of June 30, 2013, including dollar-and real-denominated loans and bonds held by a mix of banks, investors and government institutions, such as Brazil's Merchant Marine Fund, according to The Wall Street Journal. The move on Nov. 11 at a Rio de Janeiro court follows a default and bankruptcy filing the prior month for Mr. Batista's flagship oil firm OGX Petroleo e Gas Participacoes SA, n/k/a Oleo e Gas, according to the WSJ report. The firm went public in 2008 for $4.1 billion but failed to produce nearly any of the up to 10.8 billion barrels it claimed to have. ========================== C A Y M A N I S L A N D S ========================== AVONDALE LTD: Creditors' Proofs of Debt Due July 17 --------------------------------------------------- The creditors of Avondale Ltd. are required to file their proofs of debt by July 17, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 20, 2014. The company's liquidator is: Citron 2004 Limited Telephone: +44 1534 282276 Facsimile: +44 1534 282400 Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands CITRICO INTERNATIONAL: Creditors' Proofs of Debt Due Aug. 18 ------------------------------------------------------------ The creditors of Citrico International Ltd. are required to file their proofs of debt by Aug. 18, 2014, to be included in the company's first and final dividend distribution. The company's liquidator is: Timothy Le Cornu c/o KRyS Global Governors Square 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 Cayman Islands Telephone: +345 947 4700 Facsimile: +345 946 6728 FAIRLOP INVESTMENTS: Creditors' Proofs of Debt Due July 17 ---------------------------------------------------------- The creditors of Fairlop Investments Limited are required to file their proofs of debt by July 17, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 20, 2014. The company's liquidator is: Citron 2004 Limited Telephone: +44 1534 282276 Facsimile: +44 1534 282400 Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands GRACE LIMITED: Creditors' Proofs of Debt Due July 17 ---------------------------------------------------- The creditors of Grace Limited are required to file their proofs of debt by July 17, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 19, 2014. The company's liquidator is: Citron 2004 Limited Telephone: +44 1534 282276 Facsimile: +44 1534 282400 Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands JUBILEE INVESTMENTS: Creditors' Proofs of Debt Due July 17 ---------------------------------------------------------- The creditors of Jubilee Investments Limited are required to file their proofs of debt by July 17, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 19, 2014. The company's liquidator is: Citron 2004 Limited Telephone: +44 1534 282276 Facsimile: +44 1534 282400 Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands NEXUS ADVISORS: Commences Liquidation Proceedings ------------------------------------------------- On May 29, 2014, the sole member of Nexus Advisors Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Margaret Chin-Wolf 341 Bukit Timah Road #08-02 Honolulu Tower, 259719 Singapore ORMIEY LTD: Creditors' Proofs of Debt Due July 17 ------------------------------------------------- The creditors of Ormiey Ltd are required to file their proofs of debt by July 17, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 20, 2014. The company's liquidator is: Citron 2004 Limited Telephone: +44 1534 282276 Facsimile: +44 1534 282400 Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands SHALOM INVESTMENTS: Creditors' Proofs of Debt Due July 17 --------------------------------------------------------- The creditors of Shalom Investments Limited are required to file their proofs of debt by July 17, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 19, 2014. The company's liquidator is: Citron 2004 Limited Telephone: +44 1534 282276 Facsimile: +44 1534 282400 Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands T & T HOLDINGS: Creditors' Proofs of Debt Due July 17 ----------------------------------------------------- The creditors of T & T Holdings Limited are required to file their proofs of debt by July 17, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 20, 2014. The company's liquidator is: Citron 2004 Limited Telephone: +44 1534 282276 Facsimile: +44 1534 282400 Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands YONDER STAR: Creditors' Proofs of Debt Due July 17 -------------------------------------------------- The creditors of Yonder Star Limited are required to file their proofs of debt by July 17, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 4, 2014. The company's liquidator is: Buchanan Limited c/o Allison Kelly Telephone: (345) 949-0355 Facsimile: (345)949-0360 P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: To Boost Health Care With $100MM IDB Loan --------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a $100 million loan to boost health care in the Dominican Republic through investments designed to increase the efficiency and effectiveness of spending in the sector and improving the quality of services aimed at the country's poorest people. This financing is part of a credit line for investment projects that could be increased to as much as $300 million. The goal is to improve service-management capability by expanding a results-based financing model to the "0" health region (Santo Domingo, Monte Plata and the National District). The program will benefit directly nearly 900,000 people of modest resources, who account for nearly 29 percent of the poor in the Caribbean nation. This model of financing will enhance coverage and the quality of health care services in the Dominican Republic, with emphasis on primary level care and preventive care. An estimated 33 percent of ambulatory care in the Dominican Republic is delivered at this level, whereas the World Health Organization recommends that it should be around 80 percent. Additionally the financing will help improve the supervisory capacity of the Ministry of Health and Social Assistance, especially in the areas of regulation and health intelligence. This operation is in line with the National Development Plan of 2010-2030 and the Multi-Year Public Sector Plan of 2013-2016. The main goals of the latter include providing universal access to health care, developing assistance networks and strengthening the supervisory role of the Ministry of Health and Social Assistance and regional health services, including guaranteed access to quality medicines and the consolidation of a health care information management system. The loan is over 16.5 years with a grace period of 14 and has an interest rate pegged to the LIBOR. =========== M E X I C O =========== CUERNAVACA: S&P Raises LT National Scale Rating to 'mxBB' --------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term national scale rating on the city of Cuernavaca to 'mxBB' from selective default (SD). The outlook is stable. RATIONALE The upgrade reflects the restructuring of Cuernavaca's last defaulted credit line. As of this report's date, the city has only three long-term loans with commercial banks, which it's honoring. The rating still reflects the city's "very negative" liquidity which reflects Cuernavaca's prolonged period of default. The additional rating constraint is the city's poor fiscal internal controls, as seen in the vulnerability to spending during political cycles and failure to honor fiscal obligations. The rating also incorporates Cuernavaca's expenditure constraints, the absence of large contingent liabilities, and the institutional framework in which all Mexican municipalities operate and that S&P assess as "developing and unbalanced." As of the end of March 2014, its total debt was MXN736 million. Fifty four percent of the federal tax transfers, which the city receives, guarantee two of its three outstanding loans. These two loans account for 81% of Cuernavaca's total debt. Assuming that city won't issue additional debt for the rest of 2014, its debt will account for 64% of its discretionary revenues and debt service for 10% by the year-end. Its debt service could diminish if the city partly refinances its debt in the next few months. Currently, Cuernavaca is fully honoring its financial obligations and reports no use of short-term debt of any kind. S&P's expectation is that it will keep a conservative debt policy for the next two years. "Cuernavaca's budgetary performance improved in the past two years. This stems from the significant reduction of its capital expenditures (capex) for the same period. Our base-case scenario for the end of 2014 and the next two years assumes that the city would post deficits after capex of about 10% of its total revenues and operating surpluses of approximately 5% its operating revenues. Our assumption incorporates an annual average capex of MXN240 million during the same period, as well as an annual operating expenditure growth of up to 10%. Despite the city's efforts to control its operating expenditures, past-due payments to suppliers (ADEFAS) will continue to pressure them until the end of the current administration in 2015," S&P said. Cuernavaca maintains a higher level of discretionary revenues than those of its national peers, which benefits its financial flexibility. As of the end of 2013, its discretionary revenues had totaled MXN503 million, equivalent to 49% of its operating income, up from about 45% for the previous three years. The good performance in 2013 resulted from its solid nontax revenue performance. However, the city faces the MXN200 million payment to ADEFAS in 2014 and the annual average debt interest payment of MXN46 million through 2016. Moreover, S&P don't rule out the additional operating expenses in 2015 due to an election year. Cuernavaca has made efforts to contain operating costs, and improved public access to its finances. However, S&P still believes that the administration is vulnerable to political cycles and in general it lacks internal controls over its finances. Moreover, S&P believes that the administration will struggle to strengthen its intermediate- to long-term fiscal planning and liquidity policy. Cuernavaca, with a population of 365,168 (as of the end of 2010, according to Instituto Nacional de Estadistica y Geograf¡a e Inform tica) is the capital city of the state of Morelos (not rated). According to S&P's calculations, its GDP per capita would have reached $12,263.5 in 2013, in line with the national average. Cuernavaca's tourism and real estate sectors benefit from the city's proximity to Mexico City. However, security problems in recent years have weakened its tax collection, which were 7% lower in 2013 than in 2011, highlighting the 17% drop in its property transaction tax revenue. The rating on Cuernavaca incorporates S&P's assessment of the institutional framework for Mexican municipalities that S&P considers as "developing and unbalanced." S&P's assessment is intended to capture the relevant aspects of an intergovernmental system where an entity operates. Liquidity Cuernavaca's liquidity remains "very negative," according to S&P's criteria definitions, despite having completed its debt restructuring. As of March 31, 2014, its debt to suppliers totaled MXN585 million, while its cash balance was MXN63 million. S&P estimates that about half of the city's cash balance of MXN70 million, as of the end of 2013, will be available, compared with its debt service of MXN107 million in 2014 (33%). S&P projects that by the end of this year, its liquidity would remain "very negative." OUTLOOK The stable outlook reflects S&P's expectation that Cuernavaca could stabilize and gradually improve its budgetary performance and maintain a conservative debt policy in the next two years. Over the next 12-24 months, the rating could benefit from surpluses after capex and debt repayment, reducing its high liabilities related to suppliers. On the other hand, deficits after capex above 10% of its total revenue in 2014 and 2015 could lead to a downgrade. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. RATINGS LIST Upgraded; CreditWatch/Outlook Action To From Cuernavaca (City of) Issuer Credit Rating CaVal (Mexico) National Scale mxBB/Stable/-- SD/--/-- ===================== P U E R T O R I C O ===================== COSTA BONITA: Court Orders Voluntary Dismissal of Chapter 11 Case ----------------------------------------------------------------- Costa Bonita Beach Resort, Inc., requested the District of Puerto Rico Bankruptcy Court to grant a voluntary dismissal of the Chapter 11 case. While various creditors joined in Costa Bonita's motion, secured creditor DF Servicing LLC opposed voluntary dismissal and instead moved the Court to convert the case to a Chapter 7 liquidation. Asociacion de Condomines de Costa Bonita, the homeowners' association for the Debtor's condominium collateral, likewise requested that the Court convert the case. DF holds a valid, perfected and secured claim of over $5.2 Million in this single asset real estate (SARE) case. The Court conducted a two-day hearing on DF's Motion to Convert and the Debtor's Motion to Dismiss in late April 2014. Hon. Enrique S. Lamoutte ultimately ordered dismissal with a 36-month bar to refiling the case. At the hearing, DF's experts estimated that the pre-petition value of the estate was in excess of $12 million, and that as of the hearing date the value had decreased more than $7 million to an approximate market value of $5.2 million. Further, DF's insurance experts testified at the hearing that the Debtor had allowed the existing insurance on the real estate collateral to lapse by failing to make a premium payment of over $31,000. Despite the Debtor's contention that it had obtained replacement insurance policies, DF's experts stated that the Debtor's purported replacement insurance was defective and/or deficient for a host of reasons. The Debtor's Vice-President, Aida Escribano, testified at the hearing that the Debtor had only generated revenue of $551,000 since filing its Chapter 11 Petition in February 2012, and had paid more than $558,000 in expenses during the same time frame. Further, Escribano admitted that the majority of the revenue consisted of loans from stockholders and owners rather than revenue from operations. Escribano also admitted that the Debtor has made no payments to DF, paid no taxes, nor even paid its Chapter 11 counsel. Escribano also admitted that the only potential rehabilitation of the Debtor was the sale of the real estate collateral to a third party buyer; however, there are currently no prospective buyers. Section 1112(b)(1) of the Bankruptcy Code permits, after notice to the parties and a hearing, either dismissal or conversion -- whichever is in the best interest of the estate. The Court has discretion in choosing between dismissal and conversion, and applies a balancing test to determine which approach is in the best interest of the bankruptcy estate. In re DeJoungne, 334 B.R. 760, 770 (1st Cir. B.A.P. 2005). In reaching its decision to dismiss, the Court opined that since the Debtor is administratively insolvent, it is unlikely that the Debtor can rehabilitate or fund a Plan of Reorganization. The Court acknowledged that creditors face multiple detriments in this case, such as diminution of the property value, risk to collateral due to the lack of insurance, and the Debtor's failure to provide Monthly Operating Reports and to pay taxes which are due. However, because liquidation at this time would result in distribution solely to DF and not the remaining creditors, the Court determined that dismissal of the Debtor's Petition with a 36-month bar on the refiling of a Petition to be in the best interest of the estate. DF is represented by Luis C. Marini-Biaggi, Esq., and Nayuan Zouairabani, Esq., at O'Neill & Borges LLC of San Juan, PR. About Costa Bonita Costa Bonita Beach Resort, Inc., owns 50 apartments at the Costa Bonita Beach Resort in Culebra, Puerto Rico. It filed a bankruptcy petition under Chapter 11 of the Bankruptcy Code for the first time (Bankr. D.P.R. Case No. 09-00699) on Feb. 3, 2009. During this case, the Court entered an Opinion and Order finding that the Debtor satisfied all three (3) prongs of the Single Asset Real Estate, and, as such is a SARE case subject to 11 U.S.C. Sec. 362(d)(3). The Court also entered an Order modifying the automatic stay to allow creditor DEV, S.E., to continue in state court proceedings for the removal of the illegal easement and the restoration of DEV, S.E.'s land to its original condition by the Debtor. The first bankruptcy petition was dismissed on May 10, 2011 on the grounds that the Debtor failed to comply with an April 21, 2011 Order and the Debtor's failure to maintain adequate insurance. The case was subsequently closed on Oct. 11, 2011. Costa Bonita Beach Resort filed a second bankruptcy petition (Bankr. D.P.R. Case No. 12-00778) on Feb. 2, 2012, in Old San Juan, Puerto Rico. In the 2012 petition, the Debtor said assets are worth $15.1 million with debt totaling $14.2 million, including secured debt of $7.8 million. The apartments are valued at $9.6 million while a restaurant and some commercial spaces at the resort are valued at $3.67 million. The apartments serve as collateral for the $7.8 million while the commercial property is unencumbered. Bankruptcy Judge Enrique S. Lamoutte presides over the 2012 case. Charles Alfred Cuprill, Esq., serves as counsel in the 2012 case. The petition was signed by Carlos Escribano Miro, president. CUE & LOPEZ: Harrison Seeks to Withdraw as Debtor's Counsel ----------------------------------------------------------- Attorney Patricia I. Varella Harrison seeks the Bankruptcy Court's approval to withdraw as counsel for Cue & Lopez Construction, Inc. Ms. Harrison ended her employment at Charles A. Cupril, FSC law offices on May 15, 2014. Cupril will continue as counsel for the Debtor. Meanwhile, Cue & Lopez Construction sought a third extension within which to file its Plan of Reorganization and Disclosure Statement in the Bankruptcy Court for the District of Puerto Rico. The Debtor previously obtained extensions through June 2, 2014. The Debtor claims this brief extension is necessary because the Debtor continues to renew and negotiate proofs of claim by the Puerto Rico Treasury Department, the IRS, and Scotiabank Puerto Rico. Additionally, the Debtor is working to acquire new projects which would affect plan feasibility. Bankruptcy Judge Brian K. Tester granted the Debtor's request and ordered the Debtor's Plan and Disclosure Statement due by June 23, 2014. About Cue & Lopez San Juan, Puerto Rico-based Cue & Lopez Construction, Inc., sought protection under Chapter 11 of the Bankruptcy Code on Oct. 4, 2013 (Case No. 13-08297, Bankr. D.P.R.). The case is assigned to Judge Brian K. Tester. Cue & Lopez Contractors, Inc., filed a separate Chapter 11 petition (Case No. 13-08299) on the same date. The Debtors are represented by Charles Alfred Cuprill, Esq., at Charles A Curpill, PSC Law Office, in San Juan, Puerto Rico. CPA Luis R. Carrasquillo & Co., P.S.C., serves as accountant. Cue & Lopez Construction scheduled $13,334,151 in total assets and $17,520,089 in total liabilities. The Chapter 11 petitions were signed by Frank F. Cue Garcia, president. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Loses US$15.1 Billion in Fuel Subsidy ------------------------------------------------------------- El Universal reports that the high fuel subsidy in Venezuela continues causing losses to Petroleos de Venezuela (PSVSA). The company said its losses is due to "oil prices significantly below production and marketing costs," the state-owned corporation commented on its 2013 financial reports, according to El Universal. The balance indicates that "unrecoverable expenses and costs" after domestic sales amounted to US$15.1 billion in 2013, mainly attributed to "fuel sold at regulated prices and the irretrievable value of certain assets related to refining, which are associated to production and sale of fuel in the domestic market," the report notes. The figure reported in 2013 is actually 2.4% lower than that of 2012 (US$15.5 billion), the report relates. However, the report discloses that losses arising out of the fuel subsidy in the internal market in 2013 stood 48% above those of 2011, calculated at US$10.2 billion. Growth on the Internal Market Fuel domestic demand soared 3.2% in 2013, and ended at US$703,000 barrels per day, the report relates. Nonetheless, gasoline sale means US$7,500 in losses annually, based on Pdvsa's estimates, the report notes. Demand was around US$300,000 bpd, the report adds. About PDVSA Petroleos de Venezuela S.A. -- http://www.PDVSA.com/-- engages in the exploration, production, refining, transport, and commerce of hydrocarbons. The company was founded in 1975 and is based in Caracas, Venezuela. * * * As reported in the Troubled Company Reporter-Latin America on May 21, 2014, Standard & Poor's Ratings Services assigned its 'B-' debt rating to Petroleos de Venezuela S.A.'s (PDVSA; B-/Negative/- -) proposed $5 billion senior unsecured notes due 2024. PDVSA Petroleo S.A., PDVSA's exploration-and-production subsidiary (not rated), unconditionally and irrevocably guarantees the notes. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** 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, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2014. 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 or Nina Novak at 202-241-8200. * * * End of Transmission * * *