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/raid1/www/Hosts/bankrupt/TCRLA_Public/190124.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, January 24, 2019, Vol. 20, No. 17 Headlines B R A Z I L AVIANCA BRASIL: Looks for Capital, Hires Galeazzi Firm BANCO BRADESCO: Set to Shine as Local Banks Post Latest Earnings C O S T A R I C A AUTOPISTAS DEL SOL: Fitch Lowers Int'l Notes Rating to B+ REVENTAZON FINANCE: Fitch Cuts USD135MM Notes to BB-, Outlook Neg. D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Boosts Border Security With New Installation M E X I C O MEXICO: Aims to Address Causes of Fuel Theft OFFSHORE DRILLING: S&P Alters Outlook to Neg. & Affirms 'CCC-' ICR P U E R T O R I C O QUE GOLAZO: Feb. 6 Plan Confirmation Hearing SEARS HOLDINGS: Seeks to Hire Deloitte as Tax Services Provider SEARS HOLDINGS: Hires Deloitte Transactions as Bankruptcy Advisor V E N E Z U E L A VENEZUELA: Maduro Orders Revision of Diplomatic Relations With US - - - - - =========== B R A Z I L =========== AVIANCA BRASIL: Looks for Capital, Hires Galeazzi Firm ------------------------------------------------------ Tatiana Bautzer and Marcelo Rochabrun at Reuters report that Avianca Brasil, which filed for bankruptcy protection in December, is looking for a cash injection and has hired Brazilian consulting firm Galeazzi & Associados to help in talks with investors and creditors, the airline said. Galeazzi's executives are already visiting the carrier's creditors to discuss options, a source said, asking for anonymity to disclose private talks, according to Reuters. Reuters first reported the news of the Galeazzi hire, citing sources. Avianca shareholders are discussing a potential cash injection with different investors, including hedge fund Elliott Management Corp, two sources said, the report relays. Any investment now would need to happen within the bankruptcy protection process, likely in the form of debtor-in-possession financing, the report relates. Any capital injection or loan would need authorization from the bankruptcy judge, the report says. Avianca is battling two of its main aircraft lessors, Aircastle Ltd and General Electric Co's unit GE Capital Aviation Services, who have tried so far unsuccessfully to ground or repossess 40 percent of its fleet, the report relays. Avianca also said in the statement it continues to operate normally, the report notes. The escalating legal battle has added to the uncertainty surrounding Avianca Brasil's ability to maintain its current flight schedule, the report adds. As reported in the Troubled Company Reporter-Latin America on Dec. 13, 2018, Ana Mano and Marcelo Rochabrun at Reuters said that Brazil's fourth-largest airline, Avianca Brasil, filed for bankruptcy protection, saying its operations had been threatened by potential repossession of aircraft, which could prevent the carrier from continuing to operate. The unlisted airline said in its bankruptcy filing that leasing companies seeking to take back some 30 percent of its all-Airbus fleet threatened its ability to fly some 77,000 passengers in December, according to Reuters. Avianca said in a statement that the bankruptcy filing resulted from a failure to reach a "friendly agreement." It also said its flights would not be affected, the report relayed. The aircraft are still under Avianca Brasil's control for now and it remains unclear what their fate will be as the carrier is asking a Brazilian court to allow it to keep the planes for now, the report noted. The report disclosed that the airline said in the filing it largely blamed high fuel prices and a strong dollar for its troubles. BANCO BRADESCO: Set to Shine as Local Banks Post Latest Earnings ---------------------------------------------------------------- Vinicius Andrade and Felipe Marques at Bloomberg News report that Banco Bradesco SA is expected to benefit from a pick-up in lending in Brazil, standing out from Itau and other rivals such Banco do Brasil SA, analysts said. "Bradesco will likely lead the class, with a solid 4Q18 and upbeat 2019 guidance," Itau BBA analysts led by Thiago Bovolenta Batista wrote in a Jan. 20 report, according to Bloomberg News. Itau BBA sees Bradesco's recurring net income expanding by 15.8 percent on an annual basis, and recurring return on average equity reaching 19.2 percent, due to stronger loan revenues and stable credit risk, Bloomberg News relays. Bradesco's earnings are scheduled for release on January 31, one day after Banco Santander SA's Brazilian unit kicks off earnings season for the nation's lenders, Bloomberg News says. Brazilian banks are benefiting from borrowers' increased demand while loan losses decline, Bloomberg News notes. In November, Brazil's bank lending rose to BRL3.2 trillion while the business loan default rate fell to 3 percent, according to a lending report released by the central bank, Bloomberg News says. A sharp fall in provision charges will also help earnings, Santander Brasil's analysts said, Bloomberg News relays. "Bradesco could be the main highlight for the quarter, given positive expectations of asset-quality improvement," Henrique Navarro, Olavo Arthuzo and Isabella Nasuno wrote in report from Jan. 11, the analysts added. While Brazilian banks should post double-digit bottom-line growth in 2019, Safra analysts Luis Azevedo and Silvio Doria see the sector's multiples already reflecting this brighter outlook, Bloomberg News says. Citigroup also believes that valuations aren't cheap, but says Brazil's economic reforms could provide additional upside, Bloomberg News discloses. "Positive news on Congress leadership and on essential reforms could provide upside risks for 2020 onwards and also lower discount rates," Citigroup analysts Jorg Friedemann and Gabriel Nobrega wrote in a report from Jan. 9, Bloomberg News adds. The Numbers -- 4Q adjusted net income est. BRL5.53 billion (average of 5 estimates) -- 4Q return on equity est. 19.4% (average of 3 estimates) More Data -- BBDC4 has 15 buys, 3 holds and 1 sell; avg PT BRL41.28 -- Net income beat estimates in 5 of past 8 quarters As reported in the Troubled Company Reporter-Latin America on April 4, 2018, S&P Global Ratings affirmed its 'BB-/B' global scale and 'brAA- /brA-1+' national scale ratings on Banco Bradesco S.A. (Bradesco). S&P said, "We also affirmed our 'BB-' issue- level rating on the bank's senior unsecured notes. At the same time, we affirmed our 'brAA-' national scale ratings on its core subsidiary, Bradesco Capitalizacao S.A. The outlook remains stable." =================== C O S T A R I C A =================== AUTOPISTAS DEL SOL: Fitch Lowers Int'l Notes Rating to B+ --------------------------------------------------------- Fitch Ratings has downgraded its rating on Autopistas del Sol's international notes to 'B+' from 'BB' and removed it from Rating Watch Negative. The Rating Outlook is Negative. The downgrade and Negative Outlook follows Fitch's recent action on Costa Rica's sovereign ratings, and reflect the toll road's exposure to Costa Rica's economic conditions and links to the sovereign credit quality through the minimum revenue guarantee (MRG) mechanism. On Jan. 15, 2019, Fitch downgraded Costa Rica's Long-Term Foreign and Local Currency Issuer Default Ratings to 'B+' from 'BB' and removed the Rating Watch Negative. The Rating Outlook was revised to Negative. The downgrade on Costa Rica's IDRs reflects persistently wide fiscal deficits, higher near-term financing needs due to a steep amortization schedule, and budget-financing constraints. The Negative Outlook reflects risks tilted to the downside - given ongoing uncertainty surrounding government financing amidst high interest rates and shorter debt maturities, notwithstanding the implementation of the fiscal reform legislation and repayment of a short-term liquidity facility from the central bank. AdS's rating continues to reflect the asset's stable traffic and revenue profile, supported by an adequate toll adjustment mechanism. The toll road project, used mostly by commuters, could face significant competition in the short to medium term if the main competing road is substantially improved and its tariff is significantly lower than that of the current project. Toll rates are adjusted to the exchange rate quarterly and annually to reflect changes in the U.S. CPI. The rating also reflects fully amortizing senior debt with a fixed interest rate and a net present value (NPV) cash trap mechanism that protects noteholders in the event of early NPV-related termination of the concession before debt is fully repaid. Fitch's Rating Case average debt service coverage ratio of 1.2x is in line with Fitch's criteria guidance for the rating category, although somewhat weak. The presence of a MRG mechanism provides an additional layer of comfort to the rating. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action: -- Positive rating action on Costa Rica's sovereign ratings could trigger a corresponding positive rating action on the rated notes; Developments That May, Individually or Collectively, Lead to Negative Rating Action: -- Negative rating action on Costa Rica's sovereign ratings could trigger a corresponding negative action on the rated notes; -- Traffic volumes below Fitch's base case over a prolonged period; -- Projected ADSCR profile below 1.2x under Fitch's rating case. REVENTAZON FINANCE: Fitch Cuts USD135MM Notes to BB-, Outlook Neg. ------------------------------------------------------------------ Fitch Ratings has downgraded Reventazon Finance Trust's USD135 million fixed-rate notes to 'BB-' and removed it from Rating Watch Negative. The Rating Outlook is Negative. The rating action follows Fitch's downgrade of Instituto Costarricense de Electricidad's ratings to 'B+' from 'BB', which in turn followed the downgrade of Costa Rica's sovereign ratings to 'B+' from 'BB'. KEY RATING DRIVERS Reliance on ICE Lease Payments: The notes are backed by 100% participation interest on the Inter-American Development Bank's (IDB) B-loan acquired through a participation agreement, which gives the right to receive payments under IDB's B-loan. ICE lease payments from a non-cancellable financial lease agreement for the operation and maintenance of the hydropower plant will cover all payments on the loan. Credit Quality of ICE: Given the unconditional and irrevocable nature of the lease payments, Fitch views the credit risk of these payments as linked to ICE's credit quality. On Jan. 15, 2019, Fitch downgraded ICE's Long-Term Foreign Issuer Default Rating (IDR) to 'B+' with a Negative Outlook. Grupo ICE's ratings are supported by its linkage to the sovereign rating of Costa Rica, which stems from the company's government ownership and the implicit and explicit expectation of government support. Strength of the Lease Payments: To determine the strength of the lease payment obligation, Fitch considered the role of IDB as lender of record of the obligation being covered by ICE's payments tied to ICE's ownership structure. As the IDB will continue to be the lender of record and administer IDB's B-loan, Fitch believes the holders of the rated notes will benefit from the B-loan preferential, de facto, status provided by IDB. Because of this benefit, the credit quality of the payment obligation is considered to be in line with other obligations of Costa Rica with the IDB and therefore was notched upward from ICE's IDR. Preferred Creditor Status of IDB to Costa Rica: Historically, sovereigns have prioritized certain obligations, such as obligations from multilateral development banks (MDBs), when the government cannot service all of the country's external debt. While the B-loan is not a direct obligation of the sovereign, Fitch believes treatment of the IDB as a preferred creditor extends to ICE as the debtor, since ICE is a strategic government- owned entity that receives underlying sovereign support. Although Costa Rica has defaulted in the past (1981), neither the sovereign nor ICE have ever defaulted on debt issued by a preferred creditor. Currently, IDB's share of Costa Rica's external debt is 16.4% and historically has been within 12% to 13%, which makes it an essential preferred creditor for the country. Adequate Liquidity: The rated fixed-rate notes benefit from a debt service reserve account equivalent to the next principal and interest payment due amount. This liquidity provides certainty in case the transaction is exposed to temporary liquidity shock. As of December 2018, the external account had sufficient liquidity to cover debt service on the May 19 issued notes payment. Criteria Variation: Fitch's "Single- and Multi-Name Credit Linked Notes Rating Criteria," dated July 19, 2018, establishes that the credit quality of the primary risk contributors in a credit linked notes (CLNs) transaction is typically determined by an IDR assigned by Fitch. However, in some situations, a committee would consider using the actual bond rating (e.g. senior unsecured rating, subordinate rating) of an asset in place of the IDR. For this transaction, it has been determined that the credit quality of the primary risk contributor is not commensurate with the IDR or any particular bond rating of the obligor, as sovereign ratings do not directly address all forms of obligations. To determine the credit quality of the sovereign obligation and its notching from the sovereign IDR, Fitch incorporated perspectives from its sovereign group. During the analysis, it was determined that the appropriate notching uplift from the primary risk contributor would be one notch. RATING SENSITIVITIES A downgrade of ICE, tied to a rating of the sovereign, may trigger a downgrade of the transaction's rating. However, a rating action of ICE not tied to a rating downgrade of the sovereign may not trigger a rating action on the notes if Fitch's view on the strength of the payment obligation is not affected by such rating action. Additionally, changes in Fitch's view of the treatment of the IDB as a preferred creditor may trigger a rating action on the notes. USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10 No third-party due diligence was provided to or reviewed by Fitch in relation to this rating action. Fitch has removed from Rating Watch Negative and downgraded the following rating: -- $135,000,000 fixed-rate notes to 'BB-sf' from 'BB+sf'; Outlook Negative. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Boosts Border Security With New Installation ---------------------------------------------------------------- EFE News reports that starting Jan. 22, 2019, the Dominican Republic will have a new control and security center on the north stretch of its border with Haiti aimed at combating illegal migration, smuggling and drug trafficking. President Danilo Medina inaugurated the new installation in Monte Cristi province where the Joint Inter-agency Task Force will operate, staffed by members of more than 10 government departments and the armed forces, according to EFE News. The report relays that personnel based at the new post will combat possible illicit activities originating in the border municipalities of Dajabon, Manzanillo, Pepillo Salcedo and Las Matas de Santa Cruz, the military said in a news release. The Monte Cristi installation is the third of its kind to begin operations in this country, the report notes. The personnel have a variety of vehicles for their work, including all-terrain vehicles (ATVs) for patrolling mountainous areas, the report relays. They are also equipped with satellite communications systems plus drones and non-lethal weapons, the note said, the report adds. As reported in the Troubled Company Reporter-Latin America on Sept. 24, 2018, Fitch Ratings affirmed Dominican Republic's Long-Term, Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. =========== M E X I C O =========== MEXICO: Aims to Address Causes of Fuel Theft -------------------------------------------- Continental News reports that President Andres Manuel Lopez Obrador presented a plan to provide economic aid to communities along the routes of Mexico's fuel pipelines to discourage residents from illegally tapping into the conduits. "We are going to confront the unfortunate practice of . . . collecting gasoline from ditches, from leaks and from clandestine outlets," the president said at his morning press conference, according to Continental News. As a result of these measures, Lopez Obrador said he hopes that "there will be no (more) misfortunes," as occurred in the central state of Hidalgo where a punctured gasoline pipeline exploded while hundreds of residents were illegally collecting gasoline, killing 93, as of the count on Jan. 22, the report notes. The president will travel this week to several towns where the practice of stealing and selling state-owned gasoline -- known as "huachicoleo" -- is very common, as part of his plan to provide aid and halt the practice that creates huge losses for state-run oil company Petroleos Mexicanos (Pemex) and has resulted in the closure of pipelines by of the new administration, the report relays. The aid plan for the communities through which the pipelines run includes 91 municipalities, the report discloses. The report relays that the aid will be given with the aim of alleviating poverty and ending the need for people to tap the pipelines to get fuel, said the president. These actions will benefit 1.68 million people and require an investment of MXN3.86 billion ($187 million), the report relays. Theft of fuel from pipelines cost Mexico some MXN$3.4 billion last year, the government said, the report relays. Since his Dec. 1 inauguration, Lopez Obrador has launched an all- out fight against this crime, the report relays. The president has deployed thousands of police and troops to bolster security at pipelines, the report notes. The administration also adopted a change in Pemex's method for shipping gasoline and diesel from refineries to urban distribution centers, opting to transport more fuel via tanker trucks instead of pipelines, the report says. The change has caused severe supply problems in at least 10 states and Mexico City, and led to the closing of service stations, panic purchases and attempts to sabotage pipelines, the report relays. Lopez Obrador said that security forces will continue to battle fuel theft as the gangs persist in sabotaging pipelines, the report adds. OFFSHORE DRILLING: S&P Alters Outlook to Neg. & Affirms 'CCC-' ICR ------------------------------------------------------------------ S&P expects Mexico-based oilfield services company Offshore Drilling Holding S.A.'s (ODH) liquidity will continue to deteriorate meaningfully absent a recontracting of the company's vessels, which it does not envision in the very short term considering industry conditions. S&P Global Ratings revised its outlook on ODH to negative from developing and affirmed its 'CCC-' issuer credit rating on the company. S&P said, "The negative outlook reflects the possibility that we could lower the ratings in the next few months if the company doesn't replenish its debt reserve account. A downgrade could also occur if negotiations with bondholders lead us to believe the company is unlikely to be able to refinance, or if a distressed restructuring transaction is inevitable. "The rating action reflects our view of the increased risk of an event of default in the next month, absent an unanticipated significantly favorable change in the issuer's circumstances." On Sept. 20, 2018, the company used a part of its $80 million debt service reserve account (DSRA) to cover its $39.7 million semi- annual interest payment on its $950 million 2020 bullet bond. The terms and conditions of the notes specify that if the company is unable to replenish its DSRA after 179 consecutive days after its use, this would trigger an event of default. In such a case, the bondholders of at least 25% in aggregate principal amount of the then outstanding notes may declare all the notes to be due and payable immediately. In case of an acceleration, the company would not have enough liquidity to pay down its obligations. S&P said, "Likewise, the rating action also reflects an increased possibility of some form of debt restructuring in the next months because we expect ODH's operating performance will remain very weak, which would further constrain its liquidity. After ODH reached a settlement with PEMEX to terminate the charter agreements related to the Bicentenario and Centenario GR rigs, PEMEX agreed to pay a termination fee of $230 million, consisting of two installments; the first was paid on Sept. 13, 2018, and the following will be paid according to the schedule presented at the end of January of this year. Even considering these sources in our analysis, we believe that ODH will struggle to continue paying its debt service." ====================== P U E R T O R I C O ====================== QUE GOLAZO: Feb. 6 Plan Confirmation Hearing -------------------------------------------- The Disclosure Statement explaining Que Golazo Inc.'s Chapter 11 Plan is conditionally approved. A hearing for the consideration of the final approval of the Disclosure Statement and the confirmation of the Plan and of such objections as may be made to either will be held on February 6, 2019 at 2:00 PM at the U.S. Bankruptcy Court, U.S. Post Office and Courthouse Building, 300 Recinto Sur, Courtroom No. 1, Second Floor, San Juan, Puerto Rico. Acceptances or rejections of the Plan may be filed on/or before ten (10) days prior to the date of the hearing on confirmation of the Plan. Any objection to the final approval of the Disclosure Statement and/or the confirmation of the Plan shall be filed on/or before ten (10) days prior to the date of the hearing on confirmation of the Plan. Que Golazo is a for-profit corporation organized under the laws of the Commonwealth of Puerto Rico, since Jan. 26, 2010. Its primary business is the retail sale of sporting effects of soccer like specialized footwear, apparel, equipment, accessories, etc., from the main brands on the market like Adidas, Nike, Joma, Reusch, Select, and others. General unsecured creditors under the plan are classified in Classes 3 and 4 and will receive a distribution of 5% of their allowed claims over a period of five years. Payments and distributions under the plan will be funded by business income or any other income to which the Debtor may be eligible. A copy of the Disclosure Statement is available at https://tinyurl.com/ycy5dgvj from PacerMonitor.com at no charge. About Que Golazo Based in San Juan Puerto Rico, Que Golazo, Inc., filed a Chapter 11 petition (Bankr D.P.R. Case No. 18-01468) on March 19, 2018. In the petition signed by its president, Horacio Tierno Copioli, the Debtor estimated assets of less than $50,000 and debt under $500,000. Mary Ann Gandia-Fabian, Esq., at Gandia-Fabian Law Office, is the Debtor's counsel, and Jimenez Vazquez & Associates, PSC, is the accountant. SEARS HOLDINGS: Seeks to Hire Deloitte as Tax Services Provider --------------------------------------------------------------- Sears Holdings Corporation and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Deloitte Tax LLP to provide tax services. The firm will provide tax advisory services related to the Debtors' debt exchange transaction in accordance with the terms and conditions set forth in the work order dated February 1, 2018. These services include: a. advising the Debtors on the tax effects of their debt exchange transaction; b. advising the Debtors on the preparation of original issue discount calculations; c. advising the Debtors with respect to the review of the offering memorandum related to the exchange of certain notes held by certain creditors to determine tax reporting requirements from a tax perspective; and d. advising the Debtors with respect to the determination of the federal income tax filing requirements. Deloitte Tax will charge these hourly fees for the tax advisory services: National Tax Specialist Partner/ Principal/Managing Director $625 Partner/Principal/Managing Director $525 Senior Manager $400 Manager $320 Senior Associate $210 Staff $185 The firm will also provide tax advisory services related to the Debtors' restructuring, which include: a. advising the Debtors on the cash tax effects of restructuring and bankruptcy transactions and the post- restructuring tax profile tax costs; b. advising the Debtors on the restructuring and bankruptcy emergence process from a tax perspective, including the tax work plan; c. advising the Debtors with respect to any cancellation of debt income for tax purposes under IRC section 108; d. advising the Debtors on post-restructuring or post-bankruptcy tax attributes (tax basis in assets, tax basis in subsidiary stock, and net operating loss carryovers) available under the applicable tax regulations and the reduction of such attributes based on the Debtors' operating projections; e. advising the Debtors on the effects of tax rules under IRC sections 382(l)(5) and (l)(6) pertaining to the post-bankruptcy net operating loss carryovers and limitations on their utilization, and the Debtors' ability to qualify for IRC section 382(l)(5); f. advising the Debtors on net built-in gain or net built-in loss position at the time of "ownership change" (as defined under IRC section 382), including limitations on use of tax losses generated from post-restructuring or post-bankruptcy asset or stock sales; g. advising the Debtors as to the treatment of post-petition interest for state and federal income tax purposes; h. advising the Debtors on the state and federal income tax treatment of pre-bankruptcy and post-petition reorganization costs; i. assisting the Debtors in their evaluation and modeling of the tax effects of liquidating, disposing of assets, merging or converting entities as part of the restructuring; j. advising the Debtors on state income tax treatment and planning for restructuring or bankruptcy provisions in various jurisdictions; k. advising the Debtors on responding to tax notices and audits from various taxing authorities; l. assisting the Debtors in identifying potential tax refunds and advising them on procedures for tax refunds; m. advising the Debtors on income tax return reporting of bankruptcy issues and related matters; n. assisting the Debtors in their review and analysis of the tax treatment of items adjusted for financial reporting purposes as a result of "fresh start" accounting as required for the emergence date of the U.S. financial statements in an effort to identify the appropriate tax treatment of adjustments to equity (including issuance of new equity, options or warrants), and other tax basis adjustments to assets and liabilities recorded; o. assisting the Debtors in documenting the tax analysis, development of their opinions, recommendations, observations, and correspondence for any proposed restructuring alternative tax issue or other tax matters; q. assisting the Debtors in their efforts to calculate tax basis of their assets and liabilities in each of their subsidiaries or other entity interests; and p. advising the Debtors on other state and federal income tax issues. Deloitte Tax will charge these hourly fees for tax advisory services related to restructuring: National Tax Specialist Partner/ Principal/Managing Director $975 Partner/Principal/Managing Director $850 Senior Manager $725 Manager $595 Senior Associate $450 Staff $325 Thomas Hermanson, managing director of Deloitte Tax, attests that his firm is "disinterested" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: Thomas C. Hermanson Deloitte Tax LLP 111 S. Wacker Drive Chicago, IL 60606 Phone: +1 312 486 1000 About Sears Holdings Corporation Sears Holdings Corporation (NASDAQ: SHLD) -- http://www.searsholdings.com/-- began as a mail ordering catalog company in 1887 and became the world's largest retailer in the 1960s. At its peak, Sears was present in almost every big mall across the U.S., and sold everything from toys and auto parts to mail-order homes. Sears claims to be is a market leader in the appliance, tool, lawn and garden, fitness equipment, and automotive repair and maintenance retail sectors. Sears and Kmart merged to form Sears Holdings in 2005 when they had 3,500 US stores between them. Kmart emerged in 2005 from its own bankruptcy. Unable to keep up with online stores and other brick-and-mortar retailers, a long series of store closings has left it with 687 retail stores in 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands as of mid-October 2018. The Company employs 68,000 individuals, of whom 32,000 are full-time employees. As of Aug. 4, 2018, Sears Holdings had $6.93 billion in total assets, $11.33 billion in total liabilities and a total deficit of $4.40 billion. Unable to cover a $134 million debt payment due Oct. 15, 2018, Sears Holdings Corporation and 49 subsidiaries sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 18-23538) on Oct. 15, 2018. The Hon. Robert D. Drain is the case judge. The Debtors tapped Weil, Gotshal & Manges LLP as legal counsel; McAndrews Held & Malloy, Ltd., as IP counsel; M-III Partners as restructuring advisor; Lazard Freres & Co. LLC as investment banker; DLA Piper as real estate advisor; and Prime Clerk as claims and noticing agent. SEARS HOLDINGS: Hires Deloitte Transactions as Bankruptcy Advisor ----------------------------------------------------------------- Sears Holdings Corporation, and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Deloitte Transactions and Business Analytics LLP to provide bankruptcy advisory services, nunc pro tunc to October 29, 2018. The firm will provide advice and recommendations to the Debtors with respect to their current ledger and accounts payable system for the necessary bankruptcy reporting, and the development of creditor matrix, schedules of assets and liabilities, monthly operating reports, statements of financial affairs, and claims listing and reconciliation process. DTBA will also provide advice and recommendations with respect to general corporate restructuring matters as requested by the Debtors. DTBA will charge these hourly fees: Partner/Principal $775 - $925 Managing Director $700 - $925 Senior Manager/Senior Vice President $600 - $650 Manager/Vice President $500 - $600 Associate/Senior Associate $395 - $475 John Little, principal of DTBA, attests that his firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. The firm can be reached through: John W. Little Deloitte Transactions and Business Analytics LLP 2200 Ross Ave., Suite 1600 Dallas, TX 75201 Phone: +1 214 864 4210 Email: jolittle@deloitte.com About Sears Holdings Corporation Sears Holdings Corporation (NASDAQ: SHLD) -- http://www.searsholdings.com/-- began as a mail ordering catalog company in 1887 and became the world's largest retailer in the 1960s. At its peak, Sears was present in almost every big mall across the U.S., and sold everything from toys and auto parts to mail-order homes. Sears claims to be is a market leader in the appliance, tool, lawn and garden, fitness equipment, and automotive repair and maintenance retail sectors. Sears and Kmart merged to form Sears Holdings in 2005 when they had 3,500 US stores between them. Kmart emerged in 2005 from its own bankruptcy. Unable to keep up with online stores and other brick-and-mortar retailers, a long series of store closings has left it with 687 retail stores in 49 states, Guam, Puerto Rico, and the U.S. Virgin Islands as of mid-October 2018. The Company employs 68,000 individuals, of whom 32,000 are full-time employees. As of Aug. 4, 2018, Sears Holdings had $6.93 billion in total assets, $11.33 billion in total liabilities and a total deficit of $4.40 billion. Unable to cover a $134 million debt payment due Oct. 15, 2018, Sears Holdings Corporation and 49 subsidiaries sought Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 18-23538) on Oct. 15, 2018. The Hon. Robert D. Drain is the case judge. The Debtors tapped Weil, Gotshal & Manges LLP as legal counsel; McAndrews Held & Malloy, Ltd., as IP counsel; M-III Partners as restructuring advisor; Lazard Freres & Co. LLC as investment banker; DLA Piper as real estate advisor; and Prime Clerk as claims and noticing agent. ================= V E N E Z U E L A ================= VENEZUELA: Maduro Orders Revision of Diplomatic Relations With US ----------------------------------------------------------------- Corina Pons at Channel News Asia reports that Venezuelan President Nicolas Maduro said he had ordered a "revision" of diplomatic relations with the United States and would announce new measures. President Maduro was responding to comments made earlier by U.S. Vice President Mike Pence, who gave his support to Venezuela's opposition and called Maduro a "dictator with no legitimate claim to power." As reported in the Troubled Company Reporter-Latin America, S&P Global Ratings in May 2018 removed its long- and short-term local currency sovereign credit ratings on Venezuela from CreditWatch with negative implications and affirmed them at 'CCC-/C'. The outlook on the long-term local currency rating is negative. At the same time, S&P affirmed its 'SD/D' long- and short-term foreign currency sovereign credit ratings on Venezuela. S&P's transfer and convertibility assessment remains at 'CC' *********** 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 2019. 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. 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