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

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

               Wednesday, August 15, 2018, Vol. 19, No. 161


                            Headlines



A R G E N T I N A

ARGENTINA: Ex-President Answers Bribery Allegations


B R A Z I L

BRF SA: S&P Lowers Issuer Credit Rating to 'BB', Outlook Negative
JALLES MACHADO: S&P Affirms 'BB-' ICR, Outlook Stable


C H I L E

CHILE: Public Health Workers Say Gov't Wants to Privatize System


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Land Price Gougers Delay Widening of Highway
DOMINICAN REPUBLIC: Tax Burden Topped Industrialists' Q2 Concerns


P U E R T O    R I C O

LIBERTY CABLEVISION: Bank Debt Trades at 3% Off
NATIONAL STORES: Taps Prime Clerk as Claims Agent
PR GOLD BOND: Plan Outline Okayed, Plan Hearing on Aug. 29
PUERTO RICO: Bond Prices Surge as Restructuring Deals Struck
RIQUELME E HIJOS: Taps Heriberto Acevedo as Accountant


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Appeals Crystallex Court Ruling
PETROLEOS DE VENEZUELA: To Start Using 'El Petro' Next Week


                            - - - - -


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A R G E N T I N A
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ARGENTINA: Ex-President Answers Bribery Allegations
---------------------------------------------------
Charles Newbery at The Financial Times report that Cristina
Fernandez de Kirchner, the former president of Argentina, sought
to paint herself as the victim of a conspiracy in the face of
bribery allegations that have unsettled markets and led to
comparisons with the corruption inquiry that has shaken Brazil.

Ms. Fernandez de Kirchner called for the case to be abandoned in
written testimony on the first day of her trial, and took to
Twitter to denounce what she claimed was a conspiracy between
Mauricio Macri, her successor, his media allies and Claudio
Bonadio, the presiding judge, according to The Financial Times.

The report notes that the former president, who ruled from 2007 to
2015 with a fiery brand of populism, is accused of leading a
criminal ring that took bribes, at times through extortion, from
construction companies in public works projects.

The scandal broke on August 1 when the Argentine newspaper, La
Nacion, published an investigation based on the contents of eight
notebooks of a government chauffeur during the rule of Ms.
Fernandez de Kirchner and Nestor Kirchner, her late husband, the
report relays.

The driver, Oscar Centeno, noted down his deliveries of alleged
bags of money given by business executives to the Kirchner
administrations between 2005 and 2015, the report discloses.  Mr.
Centeno logged names, dates, amounts and addresses in the
notebooks, the report.  His entries show deliveries were made to
the Kirchner homes in Buenos Aires, the report relays.

The report discloses that investors are worried the corruption
scandal will slow the recovery of Latin America's third-largest
economy, which suffered a 50 per cent plunge in its currency
against the dollar earlier this year, prompting an emergency loan
from the International Monetary Fund.

Argentina needs capital inflows to finance its current account
deficit, so political shocks are bad news, said Edward Glossop, a
Latin America economist at Capital Economics in London, the report
relays.  "If there is a big deterioration in risk appetite over
the next few months, that could cause big problems for the balance
of payments and therefore for the economy," the report quoted Mr.
Glossop as saying.

The scandal has hit the construction companies behind Mr. Macri's
ambitious public works program, a driver of economic growth. The
corruption allegations might make it harder for these companies to
raise financing, slowing their infrastructure projects, said
Marcos Buscaglia, founding partner of New York-based Alberdi
Partners, a consultancy, the report notes.

"If the economy drops more because of slower construction, it will
have an impact on activity and then an impact on the elections,"
he said, the report relays.

The report notes that Mr. Centeno had worked for Roberto Baratta,
the right-hand man of Julio de Vido, the minister of planning
under the Kirchners and one of their most powerful cabinet
members.  Mr. de Vido had been in charge of energy and transport,
including public works contracts and subsidies. The alleged bribes
to the Kirchners totaled $53 million, according to La Nacion, the
report discloses.

While Mr. Centeno subsequently burnt the notebooks, a friend had
made copies and handed them to the La Nacion journalist, the
report says.  The reporter turned copies over to Justice Bonadio,
who has brought in for questioning more than a dozen business
executives and former officials, the report notes.  A number of
them have confessed to involvement and struck plea bargains, the
report relays.

In her testimony, Ms. Fernandez de Kirchner said that "to
determine or rule out an alleged corruption matrix", the
investment in all public works during her rule must be
investigated, the report relays.

She also argued that the case should be invalidated on the grounds
that it was politically motivated, and because the evidence was
gathered illicitly, the report notes.  Mr. Centeno's friend took
the notebooks from a closed box without his permission, she wrote,
the report discloses.

The report says that the scandal so far is dwarfed by that
uncovered by the Lava Jato inquiry in Brazil, which has revealed
more than $1.6 billion in bribes.  It has also so far hit only
officials in the former administration of Ms. Fernandez de
Kirchner, which could mar her campaign for a third term next year
and make way for a more moderate opponent, the report notes.  This
could pose a bigger threat to Mr. Macri's re-election bid, said
Carlos Germano, a political analyst in Buenos Aires, the report
says.

"The scandal has only just begun," he said, the report notes.
"There are still going to be a lot of surprises," he added.

The case comes at a time when Mr. Macri is tightening spending to
rein in current account and fiscal deficits as a condition of a
$50 billion credit line from the International Monetary Fund in
June, the report notes.  Those austerity measures are hitting the
already disgruntled poor and lower-middle classes the hardest, the
report says.

Eduardo Fidanza, a director of Poliarquia Consultores, a political
consultancy in Buenos Aires, said these voters "feel orphaned",
and they may turn to an opposition candidate next year, the report
adds.

As reported in the Troubled Company Reporter-Latin America on
June 7, 2018, S&P Global Ratings affirmed on June 4, 2018, its
'B+' long-term sovereign credit ratings on the Republic of
Argentina. The outlook on the long-term ratings remains stable.
S&P also affirmed its short-term sovereign credit ratings on
Argentina at 'B', its 'raAA' national-scale ratings, and its
transfer and convertibility assessment of 'BB-'.

S&P said the stable outlook incorporates its expectation that
the Macri Administration will implement additional austerity-based
economic measures in the coming six months to contain and soon
reverse the deterioration in inflation dynamics, reduce the fiscal
deficit, and stabilize the economy. S&P expects the government's
decision to enter into an agreement with the International
Monetary Fund (IMF) will help sustain investor confidence and
maintain its access to capital market funding for its large fiscal
deficits. S&P expects that effective implementation of corrective
economic policies, including revised budgetary targets for this
year and next, will set the stage for better policy predictability
and continuity over the next several years.

Fitch Ratings affirmed on May 8, 2018, Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and revised
the Outlook to Stable from Positive.

On December 4, 2017, Moody's Investors Service upgraded the
Government of Argentina's local and foreign currency issuer and
senior unsecured ratings to B2 from B3. The senior unsecured
shelves were upgraded to (P)B2 from (P)B3. The outlook on the
ratings is stable.  At the same time, Argentina's short-term
rating was affirmed at Not Prime (NP). The senior unsecured
ratings for unrestructured debt were affirmed at Ca and the
unrestructured senior unsecured shelf affirmed at (P)Ca.

As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30- grace
period on a US$539 million interest payment.  Earlier that ,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago. On March 30, 2016, Argentina's Congress
passed a bill that will allow the government to repay holders of
debt that the South American country defaulted on in 2001,
including a group of litigating hedge funds that won judgments
in a New York court. The bill passed by a vote of 54-16.


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B R A Z I L
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BRF SA: S&P Lowers Issuer Credit Rating to 'BB', Outlook Negative
-----------------------------------------------------------------
S&P Global Ratings lowered its global scale issuer credit rating
on BRF S.A. to 'BB' from 'BB+'. The outlook on the rating remains
negative. S&P said, "In addition, we affirmed our 'brAAA' national
scale issuer credit rating and revised the outlook on it to
negative from stable. We also lowered our issue-level ratings on
BRF, BRF GmbH, and BFF International Ltd. to 'BB' from 'BB+' and
kept the recovery rating of '3' (50%-70%, rounded 60%) unchanged."

BRF has faced consecutive unfavorable events that prevented it
from improving its credit metrics in the past quarter. Most
recently, EU's ban on poultry protein exports from Brazil and the
truck drivers' strike in that country, leading to significant one-
off costs, further weakened the company's credit metrics, such as
debt to EBITDA to 6.0x in the second quarter of 2018, deviating
from the target of close to 4x by year-end. These events, coupled
with management's inability to timely adjust its volume produced,
redirect its volumes destined for EU to another profitable market,
and adjust prices according to grain price increases, have
heightened the volatility and vulnerability of BRF's margins. The
latter declined to close to 2.5% in second quarter of 2018 from
our estimates that they would gradually reach historical double
digits.

In addition, BRF remains exposed to several short- to medium-term
risks that could undermine its ability to deleverage, which
underpin our negative outlook on the ratings. Among the risks, we
include:

-- The 'Operacao Carne Fraca' (Operation Weak Flesh)
    investigation could raise additional sanitary concerns and
    further export restrictions;

-- Grain price increase and foreign-exchange volatility,
    pressuring margins;

-- Rising protectionism movements, denting the export business;

-- Further consequences of truck drivers' strike, increasing the
    company's logistics and input costs above management's
    expectations; and

-- Delays in assets sales, which depend on market demand.

The offsetting factors are BRF's significant competitive
advantages given that the company is a market leader in Brazil and
the Middle East, and it has a highly recognized brand. S&P also
views positively the resolution of shareholders' disputes and the
currently closer alignment of the board with senior management. In
addition, BRF is likely to maintain a sizable liquidity cushion
for the next 12 months given that it already refinanced a
significant portion of its short-term debt maturities. Also, the
company's credit metrics could rapidly recover if cash conversion
cycle improves and the company's divestment program is completed
in the next six months. These factors could lead to cash inflows
of almost R$5 billion, which are not fully captured in our base
case given recent headwinds.

S&P's said, "Our base-case scenario takes a conservative approach,
consisting of cash proceeds from asset sales of about R$3.5
billion in 2018 and 2019 and excluding any cash inflow from
working capital improvement due to the risks of a slump in exports
and in domestic market, and weak economy in Argentina that could
delay the asset sales in the region. Therefore, we expect still
weak credit metrics, with debt to EBITDA of 5.5x by the end of
2018 and in the 3.5x-4.0x range for 2019, with a shortfall in free
operating cash flow (FOCF), still exposing BRF to refinancing
needs beyond the next 12 months."


JALLES MACHADO: S&P Affirms 'BB-' ICR, Outlook Stable
-----------------------------------------------------
S&P Global Ratings affirmed its 'BB-' global scale and 'brAA+'
national scale issuer credit ratings on Jalles Machado S.A.
(Jalles). The outlook remains stable.

The affirmation reflects S&P's expectation that Jalles will be
able to operate close to full capacity in fiscal 2019, diluting
its fixed costs, after recovering from the drought that damaged
its plantations in fiscal 2017 (ended March 31, 2017). In
addition, the still remunerative ethanol prices, the depreciation
of the Brazilian real, Jalles' production flexibility, and its
diversified portfolio help offset the weak sugar prices, enabling
Jalles to gradually increase FOCF in the next few years.

Jalles' agricultural yields rebounded in fiscal 2018 due to
adequate crop treatment and increased irrigation capacity,
allowing it to crush over 4.3 million tons of cane in fiscal 2018
and reduce its idle capacity. This, along with its flexibility to
maximize ethanol production and its more value-added portfolio of
products, including organic sugar, translated into positive FOCF
generation, although lower-than-expected, despite still high
capital expenditures (capex).

S&P said, "Compared to our previous expectations, the company's
deleveraging was somewhat delayed, due to the aforementioned
factors. However, the recent sale of 60% of its Jalles Machado
mill energy cogeneration operation, its higher capacity
utilization, and its premium portfolio should enable the company
to keep deleveraging, although more gradually. We expect debt to
EBITDA to decrease to slightly below 2x in fiscal 2019, as Jalles
uses more robust FOCF generation and the proceeds from the asset
sale to reduce debt."


=========
C H I L E
=========


CHILE: Public Health Workers Say Gov't Wants to Privatize System
----------------------------------------------------------------
EFE News reports that members of the union representing municipal
health workers protested outside the Chilean presidential palace
against what they see as a government plan to privatize health
care in the Andean nation.

The Pinera administration's proposed upgrade to the country's
National Health Fund (Fonasa) -- dubbed Fonasa Plus -- is part of
a string of changes that will result in the "further precarization
of the public system," according to the union, the report says.

Among other things, public hospitals will be forced to compete for
resources with private clinics to obtain the funds they require to
do their daily work, the report says.

The report relays that the union representatives also said that
these proposals are aimed at doing the bidding of the right-wing
government, which is set on furthering the current system of
marketization of basic rights.

The union said that the current healthcare model has made Chile
"one of the most unequal countries in the world," and that it
"segregates" users and precludes them from gaining access to
"basic social services, such as education, health, housing, access
to culture and a healthy environment," the report discloses.

At the center of the government's proposal is giving Fonasa
subscribers the option of paying more than the current 7 percent
withholding tax that funds the service in exchange for upgraded
benefits, the report relays.

The plan also calls for requiring public hospitals to compete with
private clinics for Fonasa's patronage, the report adds.


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


DOMINICAN REPUBLIC: Land Price Gougers Delay Widening of Highway
----------------------------------------------------------------
Dominican Today reports that price gouging in the sale of the land
bordering the Santiago-Navarrete-Puerto Plata highway (north) has
become the main stumbling block to sustain the pace of the
reconstruction work on the 44-kilometer road, said Public Works
deputy minister Ramon Antonio Pepin.

Responding to nagging complaints of the work's prolonged delays
and the perils posed by some road sections, Mr. Pepin said certain
owners of adjacent land are asking "prohibitive prices," trying to
speculate with the urgency of solving the project's legal aspect,
according to Dominican Today.

He added that the speculation with the land to try to force the
State to buy above the established prices, has prevented the
widening the road to four lanes from proceeding on schedule, notes
the report.

As reported in the Troubled Company Reporter-Latin America on
July 19, 2018, Fitch Ratings assigned a 'BB-' rating to
Dominican Republic's USD1.3 billion bonds, maturing July 2028. The
notes have a coupon of 6%.  Proceeds from the issuance will be
used for general purposes of the government, including the partial
financing of the 2018 budget.


DOMINICAN REPUBLIC: Tax Burden Topped Industrialists' Q2 Concerns
-----------------------------------------------------------------
Dominican Today reports that the tax burden tops the factors that
concern Dominican industrialists in the April-June quarter, with
27% of the responses to the quarterly Industrial Situation Survey
of the Dominican Industries Association (AIRD).

In second and third place among the factors that negatively affect
competitiveness were the cost of raw materials and unfair
competition and contraband, with 15% each, according to Dominican
Today.

The report notes that the tax burden has held second or first
place since the Index's emergence in the first quarter of 2015,
except for the July-September 2017 quarter when it ranked third.

Meanwhile, the "cost of raw material" remains in second place two
consecutive semesters and "unfair competition and contraband" goes
from fourth to third place, the report discloses.  There are 14
factors that are considered key for a competitive national
industry, the report says.

The ranking determines in order of importance, which are the main
factors that have a negative impact on the competitiveness of the
industrial sector, as well as its importance and weight in a given
period of conjuncture, the report adds.

As reported in the Troubled Company Reporter-Latin America on
July 19, 2018, Fitch Ratings assigned a 'BB-' rating to
Dominican Republic's USD1.3 billion bonds, maturing July 2028. The
notes have a coupon of 6%.  Proceeds from the issuance will be
used for general purposes of the government, including the partial
financing of the 2018 budget.


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P U E R T O    R I C O
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LIBERTY CABLEVISION: Bank Debt Trades at 3% Off
----------------------------------------------
Participations in a syndicated loan under which Liberty
Cablevision of Puerto Rico is a borrower traded in the secondary
market at 97.25 cents-on-the-dollar during the week ended Friday,
August 3, 2018, according to data compiled by LSTA/Thomson Reuters
MTM Pricing. This represents an increase of 0.52 percentage points
from the previous week. Liberty Cablevision pays 350 basis points
above LIBOR to borrow under the $530 million facility. The bank
loan matures on July 25, 2021. Moody's rates the loan 'B2' and
Standard & Poor's gave a 'B' rating to the loan. The loan is one
of the biggest gainers and losers among 247 quoted syndicated
loans with five or more bids in secondary trading for the week
ended Friday, August 3.


NATIONAL STORES: Taps Prime Clerk as Claims Agent
-------------------------------------------------
National Stores, Inc., received approval from the U.S. Bankruptcy
Court for the District of Delaware to hire Prime Clerk LLC as
claims and noticing agent.

The firm will oversee the distribution of notices and the
maintenance, processing and docketing of proofs of claim filed in
the Chapter 11 cases of the company and its affiliates.

Prior to the Petition Date, Prime Clerk received a retainer in the
sum of $30,000.

Prime Clerk is a "disinterested person" as defined in Section
101(14) of the Bankruptcy Code, according to court filings.

The firm can be reached through:

     Benjamin J. Steele
     Prime Clerk LLC
     830 Third Avenue, 9th Floor
     New York, NY 10022
     Direct: (212) 257-5490
     Mobile: 646-240-7821
     Email: bsteele@primeclerk.com

                      About National Stores

National Stores is a 344-store chain in 22 U.S. states and Puerto
Rico.  National Stores currently does business as Fallas, Fallas
Paredes, Fallas Discount Stores, Factory 2-U, Anna's Linen's by
Fallas, and Falas (spelled with single "l" in Puerto Rico).
Fallas, which emplolys 9,800 people, is a discount retailer
offering value-priced merchandise, including apparel, bedding and
household supplies.  The brands of National Stores are located in
retail plazas, specialty centers, and downtown areas to serve the
communities its customers and staff members call home.

National Stores, Inc., and its affiliates sought Chapter 11
protection and Aug. 6, 2018, and announced that Hilco Merchant
Resources, LLC, is conducting going-out-of-business sales for 74
stores.  The lead case is In re J & M Sales Inc. (Bankr. D. Del.
Lead Case No. 18-11801).

J & M Sales estimated assets and debt of $100 million to $500
million as of the bankruptcy filing.

The Hon. Laurie Selber Silverstein is the case judge.

The Debtors tapped Katten Muchin Rosenman LLP as general
bankruptcy counsel, Pachulski Stang Ziel & Jones LLP as bankruptcy
co-counsel, Retail Consulting Services, Inc., as real estate
advisor, Imperial Capital, LLC, as investment banker, and Prime
Clerk LLC as the claims and noticing agent.  SierraConstellation
Partners, LLC, is providing personnel to serve as chief
restructuring officer and support staff.


PR GOLD BOND: Plan Outline Okayed, Plan Hearing on Aug. 29
----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico will
consider approval of the Chapter 11 plan of reorganization for PR
Gold Bond Administration Services Inc. at a hearing on Aug. 29.

The hearing will be held at 9:00 a.m., at the Jose V. Toledo U.S.
Post Office and Courthouse Building, Courtroom 3.

The court will also consider at the hearing the final approval of
the company's disclosure statement, which it conditionally
approved on Aug. 2.

The order required creditors to file their objections and submit
ballots of acceptance or rejection of the plan on or before 14
days prior to the hearing.

            About PR Gold Bond Administration Services

Based in Bayamon, Puerto Rico, PR Gold Bond Administration
Services Inc. filed a Chapter 11 petition (Bankr. D.P.R. Case No.
17-06052) on August 28, 2017.  Luis D. Flores Gonzalez, Esq., at
Luis D Flores Gonzalez Law Office represents the Debtor as legal
counsel.

At the time of filing, the Debtor estimated less than $50,000 in
assets and $100,001 to $500,000 in liabilities.

On July 27, 2018, the Debtor filed a disclosure statement, which
explains its proposed Chapter 11 plan of reorganization.


PUERTO RICO: Bond Prices Surge as Restructuring Deals Struck
------------------------------------------------------------
Karen Pierog at Reuters reports that Puerto Rico bonds rallied on
Aug. 9, a day after the latest debt restructuring deal struck
between the bankrupt U.S. commonwealth and its bondholders as well
as a federal court ruling that affirmed the budgetary powers of an
oversight board.

Stock prices rallied for bond insurers with exposure to Puerto
Rico after the island's government reached what it called a
"milestone" agreement to restructure sales tax revenue bonds,
according to Reuters.

The report notes that the benchmark Puerto Rico general obligation
bonds due in 2035 with an 8 percent coupon traded as high as
52.125 cents on the dollar on Aug. 9, up from the 40-cent range in
early August.

Senior revenue bonds issued by the island's Sales Tax Financing
Corporation (COFINA) due in 2057, carrying a 5.25 percent coupon,
traded at 85.05 cents on the dollar, the report relays.  The
subordinate COFINA 2041 bond, also with a 5.25 percent coupon,
traded at 53 cents on the dollar after weeks of trading in a low
40-cent range, the report notes.  The 2042 subordinate 6 percent
COFINA bond traded at 51 cents on the dollar, the report says.

"We saw a more formalized agreement to restructure COFINA, and the
recoveries are fairly good considering the circumstances," said
Shaun Burgess, portfolio manager at Cumberland Advisors in
Sarasota, Florida, Reuters discloses.

"Seniors are getting about 93 percent recovery," Mr. Burgess said,
adding that "is not much of a haircut and in the deal they have
given up some of the dedicated revenue to GO bondholders as part
of the arrangement," notes the report.

Subordinate bondholders are getting 56 cents on the dollar, he
said.  "Overall a good development for the commonwealth," he
added, notes Reuters.

The report relays that Puerto Rico has been battling the twin
scourges of fiscal and natural disaster.  With about $74 billion
in bond debt and another $50 billion in pension debt, it filed the
biggest bankruptcy in U.S. government history in May 2017, Reuters
recounts.

Its bond prices were already trading in default last September,
when Hurricane Maria trashed the island's infrastructure and sent
them tumbling even further, the report says.

Peter Franks, senior market analyst at Municipal Market Data, said
investors were encouraged the ruling by a U.S. judge overseeing
Puerto Rico's bankruptcy case who made it clear that a federal
oversight board can enforce fiscal discipline, says the report.

However, Judge Laura Taylor Swain's ruling also stated the board,
created under the 2016 federal PROMESA Act, lacks authority to
demand changes in Puerto Rico law, the report adds.

                        About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017.  On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.  The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

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; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst &
Youngis the Board's financial advisor, and Citigroup Global
Markets Inc. is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.

                    Bondholders' Attorneys

Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet,
Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund
Group, comprised of mutual funds managed by Oppenheimer Funds,
Inc., and the First Puerto Rico Family of Funds, which
collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and
other bonds issued by Puerto Rico and other instrumentalities.

White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch
Alternative Capital LP.

Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.

Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).

                          Committees

The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth.
The Retiree Committee tapped Jenner & Block LLP and Bennazar,
Garcia & Milian, C.S.P., as its attorneys.  The Creditors
Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as
counsel.


RIQUELME E HIJOS: Taps Heriberto Acevedo as Accountant
------------------------------------------------------
Riquelme E Hijos, Inc., seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire an accountant.

The Debtor proposes to employ Heriberto Acevedo to provide
accounting services, which include the preparation of its monthly
operating reports, tax returns, financial statements and cash flow
projections needed for its Chapter 11 plan.

Mr. Acevedo charges an hourly fee of $50.  His associates charge
$25 per hour.

In a court filing, Mr. Acevedo disclosed that his firm is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.

Mr. Acevedo maintains an office at:

     Heriberto Reguero Acevedo
     105 Avenida Borinquen
     Base Ramey
     Aguadilla, PR
     Tel: 787-890-1954
     Email: rameysportsapartments@gmail.com
     Email: heribereg@aol.com

                    About Riquelme E Hijos

Riquelme E Hijos, Inc., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-03279) on June 11,
2018.  At the time of the filing, the Debtor estimated assets of
less than $50,000 and liabilities of less than $500,000.  Judge
Edward A. Godoy presides over the case.


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


PETROLEOS DE VENEZUELA: Appeals Crystallex Court Ruling
-------------------------------------------------------
Brian Ellsworth at Reuters report that Venezuelan state oil
company PDVSA is appealing a decision allowing Canadian miner
Crystallex to take control of shares in U.S. subsidiary PDV
Holdings as part of a 10-year dispute over the state takeover of
Crystallex assets, a court filing shows.

The U.S. District Court for the District of Delaware last week
ruled that Crystallex could attach shares of PDVH, owner U.S.
refiner Citgo, to collect on a $1.4 billion award to compensate it
for the 2008 nationalization, according to Reuters.

"Notice is hereby given that (PDVSA) . . . hereby appeals to the
United States Court of Appeals for the Third Circuit from the
Order of this Court entered on August 9, 2018," wrote Samuel T.
Hirzel, a lawyer for PDVSA, in a filing posted to the Delaware
court's docket, the report says.

The filing did not provide additional details.

"We are confident that Judge Stark's careful and well thought out
opinion is correct and will withstand all scrutiny," Crystallex
lawyer Robert Weigel said via telephone, referring to Judge
Leonard P. Stark, the report notes.

Two years ago, the government of President Nicolas Maduro used
49.9 percent of Citgo shares as collateral for a $1.5 billion loan
from Russian oil major Rosneft, the report says.  The remaining
50.1 percent was set aside as collateral for PDVSA's 2020 bond,
the report relays.

The report notes that the Crystallex case has been closely watched
by investors holding billions of dollars in Venezuelan bonds,
which are almost all in default as the OPEC nation struggles under
the collapse of its socialist economy.

As reported in the Troubled Company Reporter-Latin America on
March 19, 2018, Moody's Investors Service downgraded Petroleos de
Venezuela, S.A.(PDVSA)'s ratings to C from Ca.  Moody's also
lowered the company's baseline credit assessment (BCA) to c from
ca.


PETROLEOS DE VENEZUELA: To Start Using 'El Petro' Next Week
-----------------------------------------------------------
Irina Slav at oilprice.com reports that Venezuela's state-owned
oil company Petroleos de Venezuela, S.A.(PDVSA) will start using
the local cryptocurrency El Petro for all its transactions on
August 20, President Nicolas Maduro said, as quoted by Sputnik.

The president did not mention whether PDVSA's business partners
agreed with the change, according to oilprice.com.  Yet the shift
to a cryptocurrency in all of PDVSA's business dealings is only
part of a much bigger monetary overhaul, the report notes.

From August 20, the petro will begin to be used in parallel with
the national currency the bolivar, and its prices will be pegged
to that of the bolivar, the report says.  President Maduro said
that the central bank will start issuing daily exchange rates for
the two as well, the report notes.

Last December, President Maduro shocked analysts who follow both
the country's flirtations with default and the cryptocurrency
community by announcing that Venezuela would launch the petro
cryptocurrency, backed by oil, diamonds, and gold reserves, to
help the country to "advance in issues of monetary sovereignty, to
make financial transactions and overcome the financial blockade,"
the report recalls.

The cryptocurrency was launched in February this year despite
opposition from parliament, the report relays.  The digital
currency will be backed by Venezuela's oil and gold reserves.
During the presale period alone, according to President Maduro,
the petro, which has already been sanctioned by Washington,
generated US$6 billion in proceeds, the report adds.

As reported in the Troubled Company Reporter-Latin America on
March 19, 2018, Moody's Investors Service downgraded Petroleos de
Venezuela, S.A.(PDVSA)'s ratings to C from Ca.  Moody's also
lowered the company's baseline credit assessment (BCA) to c from
ca.


                            ***********


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, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2018.  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.
.


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