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/raid1/www/Hosts/bankrupt/TCRLA_Public/190208.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, February 8, 2019, Vol. 20, No. 28 Headlines B R A Z I L BAHIA: Moody's Withdraws Ba3 Issuer Rating for Business Reasons SAMARCO MINERACAO: To Reboot Creditor Talks After Dam Disaster STATE OF ALAGOAS: S&P Affirms BB- Global Scale ICR, Outlook Stable STATKRAFT RENOVAVEIS: Moody's Pulls Ba3 CFR for Business Reasons D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Agricultural Sector Wants to Declare Emergency DOMINICAN REPUBLIC: Supply is 14% Above Demand, ADIE Says P A R A G U A Y PARAGUAY: Fitch Assigns BB+ Rating to USD500MM Bond due 2050 P U E R T O R I C O CHARLOTTE RUSSE: Taps Donlin Recano as Claims Agent T R I N I D A D & T O B A G O PETROLEUM CO: Refinery Closure Still Hurting Fishermen V E N E Z U E L A VENEZUELA: Mexico, Uruguay Propose Four-Stage Mechanism for Peace - - - - - =========== B R A Z I L =========== BAHIA: Moody's Withdraws Ba3 Issuer Rating for Business Reasons --------------------------------------------------------------- Moody's America Latina Ltda., has withdrawn the Ba3/A2.br issuer ratings assigned to the State of Bahia. Prior to the withdrawal, the outlook on the rating was stable. The following ratings were withdrawn: Issuer: State of Bahia Issuer Ratings: Ba3 (Global Scale Rating), A2.br (National Scale Rating) RATINGS RATIONALE Moody's has decided to withdraw the ratings for its own business reasons. The last rating action on the State of Bahia was taken on April 10, 2018 when Moody's affirmed the company's ratings at Ba3/A2.br, outlook stable. SAMARCO MINERACAO: To Reboot Creditor Talks After Dam Disaster -------------------------------------------------------------- Pablo Rosendo Gonzalez and R.T. Watson at Bloomberg News report that Samarco Mineracao SA, the Brazilian mining venture that hasn't operated since a deadly dam collapse in 2015, will seek to reboot talks with creditors after one of its parent companies suffered an even worse disaster at its own site, according to people involved in the discussions. Last month's deadly accident at a Vale SA tailings dam in Minas Gerais state has upended the outlook for Samarco, which is jointly owned by Vale and BHP Group Ltd, according to Bloomberg News. While Samarco and debtholders had been in discussions since late November, those talks were scrapped and negotiations will restart from scratch, according to the people who asked not to be identified because they aren't authorized to discuss the matter publicly, Bloomberg News says. With Vale SA's financial outlook imperiled by the latest catastrophe, creditors can expect Samarco to drive a harder bargain over the company's $2.2 billion in defaulted bonds and $3.8 billion in loans and other obligations, Bloomberg News discloses. The joint venture and entities it owed money had reached a preliminary understanding that a debt swap was the best way to get the company back on its feet, but a final deal hadn't been reached, the people said, Bloomberg News relays. After negotiations formally started Nov. 27, the parties, which exchanged written offers and counter proposals, were still far from reaching a deal as an end-of-January deadline loomed, the people said, Bloomberg News notes. The biggest sticking point was how to treat the funds that Vale and BHP had injected into Samarco in the wake of the November 2015 dam spill that killed 19 people and polluted waterways, which was considered Brazil's worst environmental disaster, Bloomberg News says. The dispute involves about $908 million in shareholder debentures and $892 million of cash that shareholders provided to pay for disaster cleanup and remediation, the people said, Bloomberg News relates. Creditors rejected Samarco's offer to treat the injections as senior or pari-passu debt, Bloomberg News discloses. On Jan. 24, the parties verbally agreed to a 15-day extension in order to allow for time to conclude the complicated talks, the people said. Everything changed, however, when the next day the second dam belonging to Vale gave way, Bloomberg News notes. The company, advised by JPMorgan Chase & Co., called off the negotiations, Bloomberg News says. The price of Samarco's $1 billion of notes due in 2022 plunged more than 30 percent after the accident to about 52 cents on the dollar, Bloomberg News relays. They rallied on Jan. 29 after the company disclosed that it had been holding talks with creditors, and now trade at 61 cents on optimism that successful negotiations will allow the company to resume operations, Bloomberg News notes. The bond's current price is roughly equivalent to the net present value that creditors will be looking to obtain when the talks resume, one person close to the creditors said, Bloomberg News says. That group includes distressed-debt hedge funds including Solus Recovery Fund LP, York Total Return LP and Silver Point Capital Fund LP, who bought claims held by Japanese banks, according to the people familiar with the talks, Bloomberg News discloses. Representatives of the funds didn't immediately reply to calls and emails seeking comment. As reported in the Troubled Company Reporter-Latin America on June 1, 2017, S&P Global Ratings said it affirmed then withdrew its 'D' (default) issuer and issue-level ratings on Samarco Mineracao S.A. and its senior unsecured debt at the issuer's request. STATE OF ALAGOAS: S&P Affirms BB- Global Scale ICR, Outlook Stable ------------------------------------------------------------------ S&P Global Ratings affirmed its global scale 'BB-' long-term foreign and local currency issuer credit ratings on the state of Alagoas. S&P also affirmed its national scale 'brAA+' rating on the state. The outlook on both scale ratings remains stable. OUTLOOK The stable outlook reflects S&P's view that Alagoas will continue to post surpluses of above 5% of operating revenue, along with after-capex surpluses, in the next 12 months amid a diminishing debt burden and cash levels that comfortably cover the state's debt service. Downside scenario S&P said, "We could lower the ratings on Alagoas in the next 12 months if its budgetary performance deteriorates, reflecting impaired financial management practices; or if contingent liabilities--stemming from its government-related entities (GREs)- -materialize beyond our expectation such that they increase budgetary stress; or if we perceive that the state's liquidity position has worsened beyond our expectations. We could also downgrade Alagoas in the next 12 months if we were to lower the sovereign local and foreign currency ratings." Upside scenario Given that S&P doesn't believe Alagoas meets the conditions to have higher ratings than those on the sovereign, it would only raise the ratings on the state in the next 12 months if it were to raise its local and foreign currency ratings on Brazil. That would also have to be accompanied by a sustained increase in state's own-source revenue, such that Alagoas would be less dependent on federal transfers and its budgetary performance less prone to volatility. RATIONALE The 'BB-' global scale ratings on the state of Alagoas reflect its operating and after-capex surpluses, owing to an experienced management that has been introducing considerable fiscal changes since 2015, which S&P expects to continue doing so in the next four years. The ratings also reflect Alagoas' cash levels that more than cover its projected debt service for the next 12 months. On the other hand, Alagoas' creditworthiness suffers from a socioeconomic profile that's weaker than those of other states in Brazil, and from still high debt--although declining in relative terms--due to unfunded pension liabilities. Governor Renan Filho from the PMDB party was reelected in October 2018 in the first round. Mr. Filho will maintain a broad support at the state legislature, given that his coalition will continue to hold a majority. S&P believes this will be pivotal to pass key pieces of legislation such as downsizing the state payroll as well as continue strengthening own-revenue collection. The management has made public accounts transparent and implemented more medium- term fiscal planning instruments, which S&P assesses as positive credit factors. More recently, the state completed the framework to implement compliance policies for the public administration with the Ministry of Finance. Nevertheless, Alagoas is among Brazil's poorest states, which weighs on its creditworthiness. Its estimated GDP per capita was $4,558 for 2016-2018, and we expect it to reach $4,270 in 2019. The state's socioeconomic profile is also a rating constraint, which is weaker than those of domestic peers such as the states of Minas Gerais and Santa Catarina. Main economic activities are public administration, tourism, and agriculture (mainly the production of sugar and alcohol). The latter, which is the second- largest employer in the state, has been under significant pressure due to a combination of factors in the recent past, but the government is currently seeking ways to attract companies in the sugar industry and harmonize taxes in line with those practiced in other states. In addition, the state is aiming to diversify its economy by promoting the chemicals and plastic, ceramics, and furniture sectors, which are at various stages of development. S&P said, "We believe that the Brazilian local and regional governments' (LRGs') institutional framework is volatile and unbalanced. We believe the system continues to have an adequate level of predictability and transparency, with enhanced central government oversight of LRGs' finances and adherence to fiscal discipline. However, structural rigidities of Brazil's intergovernmental system have prevented LRGs from reaching revenue-and-expenditure balance. Overall, our current assessment draws on our evaluation of an intrinsically rigid intergovernmental system that has failed to address LRGs' significant budgetary imbalances and this isn't likely to change over the short to intermediate term. Therefore, these factors, in our view, have left LRGs unprepared to address key long-term spending trends and financing options." Given its weak and narrow economic base, Alagoas depends heavily on transfers from the federal government. Historically, more than half of Alagoas' revenue has come from federal transfers, which adds volatility to the budgetary performance. However, because of the current administration's ongoing efforts, own-source revenue have risen since 2015. S&P's base-case scenario assumes the administration will continue strengthening tax collection, and it expects own-source revenue to increase to nearly 53% of operating revenue by 2021 from 50% in 2015. S&P said, "Likewise, spending pressures--stemming from weak economy and considerable infrastructure needs--constrain Alagoas' budget. In 2019-2021, we estimate the state will spend R$2 billion -- or close to 8% of total expenditures -- on healthcare, education, roads, and sanitation. Furthermore, minimum spending requirements mandated at the national level for healthcare and education, along with payments of public-servants' salaries and pensions, will also continue to limit Alagoas' ability to cut spending. (The state payroll and pensions represent around 60% of the state's operating spending.) As the state increases its own- source revenue and controls its expenses, we expect its operating surplus to average almost 8% of operating revenue in 2019-2021, while ongoing capex projects will keep after-capex surpluses around 2.6% of total spending. "Our base-case scenario assumes the state will finance its capital spending in the next three years through new and existing borrowings from public banks and multilateral lending institutions, funds from the federal government, and own resources. At the same time, debt repayment should total nearly R$770 million. We expect Alagoas' debt to decline both in absolute and relative terms as the state strengthens its revenue base and requires less borrowings to finance capex. As a result, our base- case scenario for Alagoas' tax-supported debt assumes that it will decline to 80% of consolidated operating revenue in 2021 from 104% at the end of 2018. We incorporate in Alagoas' debt stock the debt of its development agency, Desenvolve, which we consider as a non- self-supporting GRE." While Alagoas' debt stock dropped in 2018 resulting from a R$1 billion reduction after a favorable decision from the Supreme Court following a dispute with the federal government, the level of unfunded pension liabilities is a risk to the state's current debt burden. Although the state has recently created a new pension fund, the level of current liabilities is likely to require increasing budgetary outlays in the future, which will elevate budgetary stress. Alagoas also plans to increase its investments through Casal, a self-supporting water and sanitation GRE, to expand these services in the state. The company currently has three public-private partnership (PPP) for the provision of water, and plans to establish more PPP projects in the future. The GRE's PPPs are guaranteed by Casal's future receivables and by a fund managed by Alagoas Ativos, a company created to manage PPP projects. In addition to Casal, Alagoas has a self-supporting gas company, Algas, and Desenvolve. We assess Alagoas' exposure to the contingent liabilities stemming from these GREs to be less than 10% of its consolidated operating revenue. S&P said, "Alagoas' net free cash and liquid assets will cover 1.1x of its service in the next 12 months, which we estimate to be around R$690 million. However, we expect Alagoas' significant funding needs, stemming from its investments, to dent cash levels. We assess Alagoas' access to external liquidity as limited. This assessment incorporates Brazil's Banking Industry Country Risk Assessment (BICRA) of '6'. Our BICRAs, which evaluate and compare global banking systems, are grouped on a scale from '1' to '10', ranging from what we view as the lowest-risk banking systems (group '1') to the highest-risk (group '10')." 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 committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. 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. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Ratings Affirmed Alagoas (State of) Issuer Credit Rating Global Scale BB-/Stable/-- Brazil National Scale brAA+/Stable/-- STATKRAFT RENOVAVEIS: Moody's Pulls Ba3 CFR for Business Reasons ---------------------------------------------------------------- Moody's America Latina Ltda., has withdrawn Statkraft Energias Renovaveis S.A. Ba3/A1.br corporate family ratings. Prior to the withdrawal, the outlook on the rating was stable. The following ratings were withdrawn: Issuer: Statkraft Energias Renovaveis S.A. Corporate Family Ratings: Ba3 (Global Scale Rating), A1.br (National Scale Rating) RATINGS RATIONALE Moody's has decided to withdraw the ratings for its own business reasons. The last rating action on Statkraft Renovaveis was taken on November 1, 2018 when Moody's affirmed the company's ratings at Ba3/A1.br, outlook stable. Statkraft Renovaveis is owned 81.31% by Statkraft Investimentos Ltda. and 18.69% by the pension fund Fundacao dos Economiarios Federais. Statkraft Investimentos Ltda. is a holding company controlled by the Norwegian company Statkraft AS (Baa1, stable). Statkraft Renovaveis holds interests in 22 power plants in Brazil, being 18 hydropower plans and 4 onshore wind farms, with a total installed capacity of 927 MW (or the equivalent to 450 MW in proportion to Statkraft Renovaveis 's stake). In the last twelve months ended on September 30, 2018, Statkraft Renovaveis posted a net income of BRL76 million on consolidated revenues of BRL338 million. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Agricultural Sector Wants to Declare Emergency ------------------------------------------------------------------ Dominican Today reports that the agricultural producers of the Dominican Republic will formally request the Government to declare the emergency in the areas most affected by the drought, where the crops are drying up, and the livestock has begun to die, after months without rain to alleviate the agostamiento of the field. This was confirmed by Efe, the president of the National Confederation of Agricultural Producers (Confenagro), Eric Rivero, who pointed out that this formal request will be made to the authorities, given the situation suffered by the northern and southern regions but, on all, the northwest line, according to Dominican Today. The report notes Mr. Rivero described the situation as "terrible" for a region where most municipalities are agricultural producers, "everything is drying up," crops are being lost, among them, those of organic bananas, one of the main items exported, although at the moment it does not count on figures of economic losses. Also, between 150 and 200 head of cattle have already died, and milk production in populations such as Santiago Rodriguez, which represented 120 million pesos per month (about 2.4 million dollars), has been reduced to 35% of what it is usual, explained the president of Confenagro, the report says. Seeing the conditions in which the field is "heartbreaking," they are experiencing "very difficult" moments, he said, the report relays. Hence they will request an emergency declaration in the most affected areas, as the measures that have been put in place by Government are not enough to alleviate the situation, the report discloses. The authorities launched an emergency plan on the northwest line last Sunday that includes measures such as the delivery of food rations in the communities most in need, the distribution of molasses to feed livestock, and the shipment of tankers to supply water to the population and agricultural producers, the report notes. However, Mr. Rivero considers these and other actions insufficient and draws attention to the fact that, although it is the most affected, not only does the Northwest line need help, also in the south and in the north, they are suffering the consequences of lack of rainfall, the report relays. For starters, it would take more trucks carrying water, more sugar cane for livestock, and more facilities for small producers, for whom "it is difficult to transport what is necessary to save the cows," he said, the report notes. He also noted that the state's investment in the construction of dams and aqueducts "has been paralyzed" in recent years, and is considered necessary to create more infrastructure for the collection of water, something that would not only help to alleviate the drought but would improve the problem of lack of electrical power, he said, the report says. The National Office of Meteorology (Onamet) declared a state of drought in the south, southwest and northwest regions of the country due to the continuous deficit of rains in these areas, the report relays. From January to November 2018, there was a drought classified as weak to severe; and in December the country had a general balance of rainfall, 58.2% lower than average values, the report notes. The situation continued in January, a month in which 84% of the measurement stations analyzed showed some degree of drought, with the most alarming negative balances being those of the southwest (-98.3%), Northwest (-85.8%) and south of the country (79.4%), the report discloses. The report relays that an additional problem, and derived from the lack of water, is the presence of a plague of the pine beetle (Ips calligraphus) in the Sierra de la Cuenca del Rio Yaque del Norte, an area that is suffering the most intense drought it has sustained on record. This insect lodges under the bark of the tree and dries it quickly, especially during periods of prolonged droughts, when the trees are weak and can not produce resin to defend themselves, so that, although it is also acting to end the plague, the lack of water also endangers one of the most important natural areas of the country, 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. DOMINICAN REPUBLIC: Supply is 14% Above Demand, ADIE Says --------------------------------------------------------- Dominican Today reports that 2019 begins with a 14% surplus on the electricity supplied, according to the Dominican Electrical Industry Association (ADIE). In the first 36 days this year, 1,639 GWh of electricity was consumed by the system for which the ADIE reiterates the power companies' capacity to supply the demand of the distributors, according to Dominican Today. "For the period from January 1 to February 5, the availability of energy represented 1,873.3 GWh. while the electricity consumed in the system reached 1,639 GWh," ADIE said, the report relays. The ADIE, citing information by the National Electric System Coordinating Body, added that the reserve, the energy that the power companies supplied but not required by the distributors, was 234.4 GWh, 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. =============== P A R A G U A Y =============== PARAGUAY: Fitch Assigns BB+ Rating to USD500MM Bond due 2050 ------------------------------------------------------------ Fitch Ratings has assigned a 'BB+' rating to Paraguay's USD500 million bond, with final maturity in 2050. The bond has a coupon of 5.4%. Proceeds from the issuance will be used for capital expenditures and to refinance a portion of outstanding debt. KEY RATING DRIVERS The bond rating is in line with Paraguay's Long-Term Foreign- Currency Issuer Default Rating (IDR) of 'BB+'. RATING SENSITIVITIES The bond would be sensitive to any changes in Paraguay's Long-Term Foreign Currency IDR. Fitch upgraded Paraguay's Long-Term Foreign Currency IDR to 'BB+' from 'BB' and revised the Rating Outlook to Stable from Positive on Dec. 11, 2018. ====================== P U E R T O R I C O ====================== CHARLOTTE RUSSE: Taps Donlin Recano as Claims Agent --------------------------------------------------- Charlotte Russe Holding, Inc., received approval from the U.S. Bankruptcy Court for the District of Delaware to hire Donlin, Recano & Company, Inc., as its 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. The firm's hourly rates for professional services are: Executive Staff No charge Senior Bankruptcy Consultant $117 - $149 Case Manager $81 - $117 Technology/Programming Consultant $54 - $90 Consultant/Analyst $45 - $72 Clerical $22 - $41 Prior to the Debtor's bankruptcy filing, Donlin received a retainer of $25,000. Donlin is "disinterested" as defined in Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached through: Nellwyn Voorhies Donlin, Recano & Company, Inc. 6201 15th Avenue, Brooklyn, NY 11219 Phone: 212.481.1411 About Charlotte Russe Holding Inc. Charlotte Russe Holding, Inc. -- https://www.charlotterusse.com/ - - is a specialty fashion retailer of young women's apparel and accessories comprised of seven entities. The company and its affiliates are headquartered in San Diego, California and have one distribution center located in Ontario, California. In addition, the companies lease office space in Los Angeles, California and San Francisco, California, where they primarily conduct merchandising, marketing, e-commerce and technology functions. The companies sell their merchandise to customers in the contiguous 48 states, Hawaii, and Puerto Rico through their online store and 512 Charlotte Russe brick-and-mortar stores located in various regional malls, outlet centers, and lifestyle centers. The bulk of the companies' apparel and accessory products are sold under the Charlotte Russe brand with ancillary brands for denim and perfume (Refuge), young women's plus-size apparel (Charlotte Russe Plus), and cosmetics (Charlotte by Charlotte Russe). Charlotte Russe Holding and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Case Nos. 19-10210 to 19-10216) on Feb. 3, 2019. At the time of the filing, Charlotte Russe Holding had estimated assets of $100 million to $500 million and liabilities of $100 million to $500 million. The cases are assigned to Judge Laurie Selber Silverstein. The Debtors tapped Bayard, P.A. and Cooley LLP as their bankruptcy counsel; Guggenheim Securities, LLC as their investment banker; A&G Realty Partners, LLC as lease disposition consultant and business broker; Gordon Brothers Retail Partners LLC, Hilco Merchant Resources LLC and Malfitano Advisors, LLC as liquidation consultant; and Donlin, Recano & Company, Inc. as claims and noticing agent. ================================ T R I N I D A D & T O B A G O ================================ PETROLEUM CO: Refinery Closure Still Hurting Fishermen ------------------------------------------------------ Trinidad Express reports that local fishermen may have a long wait before their fuel woes end. Energy Minister Franklin Khan told Express Business that until government finds a partner for the Pointe-a-Pierre oil refinery and refining operations reopen, fishermen will have to "rally" with using super gasoline for their boats, according to Trinidad Express. Before the closure of the refinery, regular gasoline was widely used by fishermen because it was cheap, the report notes. Following the closure of State-owned Petroleum Co. of Trinidad & Tobago (Petrotrin)'s oil refinery in November last year, the last stocks of regular gas were distributed by December 7, the report adds. As reported in the Troubled Company Reporter-Latin America on Sept. 28, 2018, Moody's Investors Service placed Petroleum Co. of Trinidad & Tobago's B1 corporate family rating and senior unsecured debt ratings on review for downgrade. This rating action was based on the lack of clarity regarding Petrotrin's new business profile and strategy as well as increasing liquidity risk related to the approaching maturity of the 2019 bonds. ================= V E N E Z U E L A ================= VENEZUELA: Mexico, Uruguay Propose Four-Stage Mechanism for Peace ----------------------------------------------------------------- EFE News reports that Mexico and Uruguay in Montevideo proposed the so-called "Montevideo Mechanism," a four-stage process consisting of immediate dialogue, negotiation, commitments and implementation to achieve peace in Venezuela. "We're proposing the Montevideo Mechanism as per our legitimate interest and readiness to contribute to helping the Venezuelan people and the involved actors find a solution to their differences," the two nations said in a joint communique backed by the Caribbean Community (Caricom), according to EFE News. If Venezuela's elected government, headed by President Nicolas Maduro, and the opposition -- unified behind the figure of self- proclaimed interim President Juan Guaido -- agree to dialogue in accord with this plan, the head of the Ibero-American General Secretariat (Segib), Rebeca Grynspan, former Uruguayan Foreign Minister Enrique Iglesias and former Mexican Foreign Secretary Bernardo Sepulveda would be invited to accompany the process, the report relays. In addition, a top Caricom representative and "figures of recognized international experience and moral quality" would also be called upon to participate, EFE says. In that regard, the tripartite initiative is being established as a "peaceful and democratic alternative that favors dialogue and peace to foster the necessary conditions for a comprehensive and lasting solution," the report discloses. According to the proposal, the first phase -- that of immediate dialogue -- is designed to generate the conditions for direct contact among the involved actors "within a secure environment," the report notes. Immediately thereafter, the process would move to the negotiation phase where a "strategic presentation of the results of the dialogue phase" would be made to the parties in which points in common and areas of opportunity would be sought to make their positions more flexible and identify potential areas of agreement, the report says. The third phase, that of commitment, would consist of constructing and signing the agreement based on the results of the previous phase, the report notes. Finally, the implementation phase would be undertaken with international monitoring and support, the report relays. Although Mexico and Uruguay, along with the Caricom countries, recognize "the level of complexity and the circumstances" in Venezuela, they also said in the document that they feel this is "no reason to reject diplomatic routes to the solution of controversies," the report notes. In addition, they reiterated their concern over the serious humanitarian situation in Venezuelan and "respectfully" urged the parties to guarantee the preservation of human rights, the report discloses. Uruguayan President Tabare Vazquez and his foreign minister, Rodolfo Nin Novoa, met in Montevideo with Mexican Foreign Secretary Marcelo Ebrard to discuss the Venezuelan crisis, the report adds. 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *