/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/190227.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, February 27, 2019, Vol. 20, No. 42 Headlines B E R M U D A CENTRAL EUROPEAN MEDIA: S&P Affirms B+ Rating on 2018 Deleveraging B R A Z I L BANCO DAYCOVAL: Moody's Affirms Ba2 Deposit Rating, Outlook Stable BANCO DAYCOVAL: Moody's Rates New Sr. Unsecured Notes Ba2 BRAZIL: Sao Paulo Industrial Belt Reinvents Itself Amid Change FORD MOTORS: To Close Brazil Plant, Exit South America Truck Biz STATE OF MINAS GERAIS: S&P Cuts GSR to SD on Missed Debt Payments D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Business Climate is Great, Official Says DOMINICAN REPUBLIC: Punta Catalina Plant in Final Phase of Tests M E X I C O MEXICO: Voters Approve Controversial Power Project P U E R T O R I C O HIGH TIMES: March 26 Plan Confirmation Hearing HIGH TIMES: Unsecured Creditors to Recoup 34% Dividend Under Plan LATIN AMERICAN MUSIC: Peer International Bid for Sanctions Granted SEARS HOLDINGS: Committee Hires Herrick as Special Counsel SEARS HOLDINGS: Incurs $193 Million Net Loss at Jan. 5 SEARS HOLDINGS: Net Loss Decreases to $125 million at Dec. 1 V E N E Z U E L A PETROLEOS DE VENEZUELA: Fire Disrupts Crude Transport - - - - - ============= B E R M U D A ============= CENTRAL EUROPEAN MEDIA: S&P Affirms B+ Rating on 2018 Deleveraging ------------------------------------------------------------------ Central European Media Enterprises Ltd. (CME) demonstrated robust deleveraging in 2018, and S&P expects the group to deleverage further to adjusted debt to EBITDA of 3.0x-3.3x in 2019 from 3.7x in 2018. S&P Global Ratings is therefore affirming CME at 'B+'. The affirmation reflects S&P's view that CME's credit quality has improved on a stand-alone basis. CME reduced its financial debt by more than $280 million (and $312 million when including previously pay-in-kind guarantee fees) in 2018 using its generated cash flows, proceeds from a warrant exercise, and proceeds from disposal of its business in Croatia. As a result, its S&P Global Ratings-adjusted debt-to-EBITDA ratio declined to 3.7x in 2018 from above 6.0x in 2017. The group reduced its interest payments in 2018 following the repricing of its guarantee fees in April 2018, the debt repayments, and lower borrowing costs due to deleveraging. In January 2019 CME prepaid EUR60 million ($69 million) of its outstanding term loan due in 2021. S&P said, "We assume that CME will use the majority of its reported free operating cash flow in 2019 to further prepay this instrument, translating to a decline in its adjusted leverage to 3.0x-3.3x by end-2019, as per our base case. We understand that CME plans to reduce its gross leverage and net leverage ratios (as the company reports) further reaching about 2.75x and 2.50x, respectively, by end-2019. We estimate that the company's 2.5x net leverage target ratio would be equivalent to 2.9x as adjusted by S&P Global Ratings. We note that the amended debt agreements from April 2018 allow CME to start paying dividends when it has achieved the gross leverage of 2.75x." S&P's rating on CME incorporates its view of the risk that the anticipated improvement in credit metrics is not sustainable in the long term because of potential earnings and cash flows volatility due to cyclicality of TV advertising markets and the still-unestablished financial policy with publicly stated leverage targets. Warner Media LLC continues to guarantee all of CME's term loans and provides its revolving credit facility (RCF) due in 2023 (currently undrawn). S&P said, "Given CME's sound operational performance and deleveraging last year, teamed with further anticipated debt reduction in 2019, we believe that the need for the guarantee is declining and the likelihood that it will be activated is diminishing. We also think that, by approaching its optimal capital structure, CME might refinance the outstanding maturities on its own without financial support from Warner Media. We therefore believe that CME's importance within the larger AT&T/Warner Media group has lessened, leading us to consider that CME group's creditworthiness no longer reflects any extraordinary financial support from AT&T/Warner Media." CME posted solid operational results in 2018 and outperformed S&P's projections for EBITDA generation. The group's audience shares in Czech Republic and Romania, its two largest markets, were slightly down and flat, respectively. But audience shares in other markets were flat or rising in 2018 compared with 2017. The like-for-like growth of TV advertising revenues stood near 3.3% at the group level (and about 7% in actual terms) and carriage fees and subscription revenues rose by almost 19% (actual terms) in 2018. Top-line growth, cost control, and expansion of the offering of the local content translated into S&P Global Ratings-adjusted EBITDA margins improving to 32.6% in 2018 from about 29.0% in 2017 (taking into account the restated accounts to include Slovenian operations). TV advertising revenue growth was particularly strong in Czech Republic, thanks to an increase in sold gross rating points (GRPs), and in smaller segments Slovakia and Bulgaria, driven by solid like-for-like sales growth. Romania's TV advertising also expanded but at lower rates due to an increase of average prices that offset a decline in sold GRPs. S&P said, "We expect that the positive macroeconomic environment in Central and Eastern Europe over 2019-2020 will support further revenue growth for CME and enable it to sustain its adjusted EBITDA margins of above 30%. "The positive outlook reflects our view that CME will continue to post solid operational performance, adjusted EBITDA margins of above 30%, strengthen its competitive position, and deleverage over the next 12 months. We also incorporate our view of CME's adequate liquidity supported by its solid free operating cash flow generation and full availability of the RCF. "We could raise the rating within the next 12 month if we believe that the group will achieve and maintain leverage below 3.0x and funds from operations to debt above 20%. The upgrade will depend on the extent and sustainability of the credit metrics' improvements, as well as on the established financial policy in the longer term. An upgrade would also hinge on our view of the company's ability to refinance its capital structure on a stand-alone basis. "We could revise the outlook to stable if CME's operating performance deteriorates due to a downturn in some of its TV advertising markets, or the group follows a more aggressive financial policy and allocates its free cash flow to acquisitions or shareholder returns. This would most likely impede the company's ability to achieve and maintain stronger metrics, namely adjusted debt-to-EBITDA below 3x. Furthermore, rating pressure could stem from CME's inability to refinance its capital structure on a stand-alone basis." =========== B R A Z I L =========== BANCO DAYCOVAL: Moody's Affirms Ba2 Deposit Rating, Outlook Stable ------------------------------------------------------------------ Moody's Investors Service has affirmed all ratings and assessments assigned to Banco Daycoval S.A. (Daycoval), including the short and long-term deposit ratings of Ba2 and Not Prime for local currency and Ba3 and Not Prime for foreign currency in global scale, the senior unsecured debt rating of Ba2, the short and long-term national scale deposit ratings of Aa2.br and BR-1, as well as the short and long-term counterparty risk ratings of Ba1 and Not Prime, for local and foreign currencies. Moody's also affirmed Daycoval's assessments, including the baseline credit assessment (BCA) of ba2, and counterparty risk assessments of Ba1(cr) for long-term and Not Prime(cr) for short-term. The ratings have a stable outlook. RATINGS RATIONALE The affirmation of Daycoval's Ba2 bank deposit rating reflects the bank's consistent earnings generation, which is supported by disciplined business and risk profiles, characterized by adequate asset quality and capitalization, factors that compare well to other midsized Brazilian banks. Daycoval's expertise in lending to small and medium size companies (SME) and its conservative underwriting policies have ensured that its asset risk is contained, as indicated by the 90-day problem loan ratio of 2.4% in 2018, which is below the system's average of 2.9%. About 69% of Daycoval's loans are short-term, collateralized loans to SMEs, while low-risk payroll loans make up another 27%. Notwithstanding the risk mitigation policies in place, Daycoval decided to increase its reserve coverage ratio to 122.9% of its highest risk loans, classified between E to H according to local regulation, which accounted for 6% of gross loans in 2018. The flow of loan renegotiations represented around 3% of total loans over the past two years, while recoveries have been high at 70% in 2018, helped by the favorable economic conditions. The ba2 BCA acknowledges Daycoval's diversified asset mix which provides financial flexibility to the franchise. However, a more competitive scenario in 2019 will likely pressure its margins, and it could lead Daycoval to higher risk appetite. In 2018, margins remained strong at around 11.6%, per Moody's calculation, an increment of 100 basis points over 2017, resulting from higher loan volumes. In regards to capital, Daycoval has consistently reported high capital levels and conservative leverage, as indicated by loans below six times equity, and which compares well to other similarly rated midsized banks in Brazil. In 2018, Moody's preferred capital ratio of tangible common equity stood at 11.2% of adjusted risk weighted assets for Daycoval. The capital ratio benefits from strong internal earnings generation and from its shareholders' conservative dividend payout policy, although Moody's expects it to decline as loan origination accelerates in 2019. In 2018, the bank's loan book increased 21% in twelve months. Daycoval's ratings incorporate its predominantly wholesale funding profile, a credit negative, and which is sourced from institutional investors in the domestic market. Daycoval is a frequent issuer of local currency bank notes (letras financeiras), as well as deposit-like instruments, such as real estate and rural linked securities (letras de credito Agricola, LCA and letras de credit imobiliarias, LCI), even during the economic recession. While these resources help to enhance the term structure of Daycoval's funding, they are nonetheless confidence and price sensitive. Daycoval's Ba2 global scale rating is speculative grade, and reflects the credit interlinkages with the Brazilian sovereign, also rated Ba2 in global scale. Daycoval's Aa2.br national scale rating (NSR), which corresponds to its Ba2 global scale rating, implies it is among the strongest credits in Brazil, in a national scale. At the same time, the NSR considers the bank's less diversified operations and lack of scale, as well as its greater dependence on market funding, compared to Ba2 rated peers that are rated Aa1.br in national scale. However, Daycoval benefits from more consistent earnings and more disciplined risk management than certain Ba2 global scale peers that are rated Aa3.br in national scale in Brazil. The stable outlook on Daycoval's Ba2 deposit rating is in line with the stable outlook on Brazil's government bond rating. WHAT WOULD CHANGE THE RATING UP/DOWN Upward rating pressure would depend on an upgrade of the sovereign rating, provided that the bank's standalone fundamentals, including its asset quality, profitability and capital, remain strong. However, Daycoval's ratings could be downgraded if the sovereign rating is downgraded, because the bank's BCA is constrained by the sovereign rating. Downward pressure on the BCA could also arise from a substantial deterioration in the bank's asset quality that could hurt its capital and reserves, and/or if the bank's profitability weakens materially. METHODOLOGY The principal methodology used in these ratings was Banks published in August 2018. Banco Daycoval S.A. is headquartered in Sao Paulo, Brazil, with total assets of BRL29.38 billion ($7.6 billion) and equity of BRL3.24 billion ($835 million) as of 31 December 2018. LIST OF AFFECTED RATINGS AND ASSESSMENTS The following ratings assigned to Banco Daycoval S.A. were affirmed: Long-term local currency bank deposit rating affirmed at Ba2; stable outlook Short-term local currency bank deposit ratings affirmed at Not Prime Long-term foreign currency bank deposit rating affirmed at Ba3; stable outlook Short-term foreign currency bank deposit ratings affirmed at Not Prime Long-term foreign currency senior unsecured debt rating affirmed at Ba2; stable outlook Long-term foreign currency senior unsecured MTN rating affirmed at (P)Ba2 Long-term Brazilian national scale bank deposit rating affirmed at Aa2.br Short-term Brazilian national scale bank deposit rating affirmed at BR-1 Long-term local currency counterparty risk rating affirmed at Ba1 Short-term local currency counterparty risk rating affirmed at Not Prime Long-term foreign currency counterparty risk rating affirmed at Ba1 Short-term foreign currency counterparty risk rating affirmed at Not Prime Long-term Brazilian national scale counterparty risk rating affirmed at Aaa.br Short-term Brazilian national scale counterparty risk rating affirmed at BR-1 Baseline credit assessment affirmed at ba2 Adjusted baseline credit assessment affirmed at ba2 Long-term counterparty risk assessment affirmed at Ba1(cr) Short-term counterparty risk assessment affirmed at Not Prime(cr) Outlook, remains stable BANCO DAYCOVAL: Moody's Rates New Sr. Unsecured Notes Ba2 --------------------------------------------------------- Moody's America Latina Ltda (MAL) has affirmed the Ba2 global local currency senior unsecured debt rating and the Aa2.br Brazilian national scale senior unsecured debt rating assigned to Banco Daycoval S.A.'s (Daycoval) outstanding local currency financial banknotes as well as to the existing programs maintained by the bank. The ratings have a stable outlook. This action follows a related press release made by Moody's Investors Service (MIS) that it had affirmed all ratings assigned to Banco Daycoval ("Moody's affirms Daycoval's Ba2 ratings; outlook stable") published on February 25, 2019. At the same time, Moody's assigned a Ba2 and Aa2.br local currency senior unsecured ratings, in global and national scale, respectively, to Daycoval's new local currency financial banknotes (letras financeiras). The notes will be issued in four tranches due in 2021, 2022, 2023, and 2024, up to a total aggregated amount of BRL1.0 billion. The outlook on the rating is stable. RATINGS RATIONALE The affirmation of Daycoval's Ba2 bank deposit rating reflects the bank's consistent earnings generation, which is supported by disciplined business and risk profiles, characterized by adequate asset quality and capitalization, factors that compare well to other midsized Brazilian banks. Daycoval's expertise in lending to small and medium size companies (SME) and its conservative underwriting policies have ensured that its asset risk is contained, as indicated by the 90-day problem loan ratio of 2.4% in 2018, which is below the system's average of 2.9%. About 69% of Daycoval's loans are short-term, collateralized loans to SMEs, while low-risk payroll loans make up another 27%. Notwithstanding the risk mitigation policies in place, Daycoval decided to increase its reserve coverage ratio to 122.9% of its highest risk loans, classified between E to H according to local regulation, which accounted for 6% of gross loans in 2018. Loan renegotiations have been around 3% over the past two years, while recoveries have been high at 70% in 2018, helped by the favorable economic conditions. The ba2 BCA acknowledges Daycoval's diversified asset mix which provides financial flexibility to the franchise. However, a more competitive scenario in 2019 will likely pressure its margins, which would require the bank to increase its risk appetite. In 2018, margins remained strong at around 11.6%, by Moody's calculation, an increment of 100 basis point over in 2017 resulted from higher volumes, even after a 26.3% increase in provisioning expenses. In regards to capital, Daycoval has consistently reported high capital levels and conservative leverage profile, as indicated by loans below six times equity, and which compares well to other similarly rated midsized banks in Brazil. In 2018, Moody's preferred capital ratio of tangible common equity stood at 11.2% of adjusted risk weighted assets for Daycoval. The capital ratio benefits from strong internal earnings generation and from its shareholders' conservative dividend payout policy although Moody's expects it to decline as loan origination accelerates in 2019. In 2018, the bank's loan book increased 21% in twelve months. Daycoval's ratings incorporate its predominantly wholesale funding, a credit negative, and which is sourced from institutional investors in the domestic market,. Daycoval is a frequent issuer of local currency bank notes (letras financeiras), as well as deposit-like instruments, such as real estate and rural linked securities (letras de credito Agricola, LCA and letras de credit imobiliarias, LCI), even during the economic recession. While these resources help to enhance the term structure of Daycoval's funding, they is nonetheless confidence and price sensitive. Daycoval's Ba2 global scale rating is speculative grade, and reflects the credit interlinkages with the Brazilian sovereign, also rated Ba2 in global scale. Daycoval's Aa2.br national scale rating (NSR), which corresponds to its Ba2 global scale rating, implies it is among the strongest credits in Brazil, in a national scale. At the same time, the NSR considers the bank's less diversified operations and lack of scale, as well as its greater dependence on market funding, compared to Ba2 rated peers, that are rated Aa1.br in national scale. However, Daycoval benefits from more consistent earnings and more disciplined risk guidelines than certain Ba2 global scale peers, that are rated Aa3.br in national scale in Brazil. The stable outlook on Daycoval's Ba2 deposit rating is in line with the stable outlook on Brazil's government bond rating. WHAT WOULD CHANGE THE RATING UP/DOWN Upward rating pressure would depend on an upgrade of the sovereign rating, provided that the bank's standalone fundamentals remain strong. However, Daycoval's ratings could be downgraded if the sovereign rating is downgraded, because bank's BCA is constrained by the sovereign rating given the high interlinkages between banks' balance sheets and the sovereign's. Downward pressure on the BCA could also arise from a substantial deterioration in the bank's asset quality while its loss buffers, such as capital and reserves, substantially contracts, and/or if the bank's profitability weakens materially. USED METHODOLOGY The principal methodology used in these ratings was Banks published in August 2018. Banco Daycoval S.A. is headquartered in Sao Paulo, Brazil, with total assets of BRL29.38 billion ($7.6 billion) and equity of BRL3.24 billion ($835 million) as of December 31, 2018. LIST OF AFFECTED RATINGS The following ratings assigned to Banco Daycoval S.A. were affirmed: - Local currency senior unsecured debt rating affirmed at Ba2; stable outlook - Brazilian long-term national scale senior unsecured debt rating affirmed at Aa2.br - Local currency senior unsecured debt MTN rating affirmed at (P)Ba2 - Brazilian long-term national scale senior unsecured MTN rating affirmed at Aa2.br The following ratings were assigned to Banco Daycoval S.A.'s proposed financial banknotes: - Local currency senior unsecured debt rating due March 2021 -- Ba2; stable outlook - Brazilian long-term national scale senior unsecured debt rating due March 2021 -- Aa2.br - Local currency senior unsecured debt rating due March 2022 -- Ba2; stable outlook - Brazilian long-term national scale senior unsecured debt rating due March 2022 -- Aa2.br - Local currency senior unsecured debt rating due March 2023 -- Ba2; stable outlook - Brazilian long-term national scale senior unsecured debt rating due March 2023 -- Aa2.br - Local currency senior unsecured debt rating due March 2024 -- Ba2; stable outlook - Brazilian long-term national scale senior unsecured debt rating due March 2024 -- Aa2.br BRAZIL: Sao Paulo Industrial Belt Reinvents Itself Amid Change -------------------------------------------------------------- EFE News reports that amid the recent announcement of the closure of a Ford factory, the metropolitan Sao Paulo industrial belt has been reinventing itself for over a decade and remains a jewel of the Brazilian economy. Known collectively as the Grand ABC Paulista, the manufacturing hubs outside Brazil's largest city produce more than the entire nation of Argentina, according to EFE News. The region's golden age was in the 1970s, when it gave birth to a vibrant labor movement that proved to be a springboard to national prominence for a lathe operator and union organizer named Luiz Inacio Lula da Silva, who went on to be Brazil's president from 2003-2011, the report notes. But the ABC auto sector has managed to survive globalization better than other places, the report discloses. Noting that people long spoke of the area as "the next Detroit," the president of the ABC Metalworkers Union, Wagner Santana, pointed out to EFE that so far, the ABC Paulista has avoided the fate of the center of the US auto industry, which has been in free-fall since the 1990s. Ford Motor Co. disclosed that it would be closing its plant in Sao Bernardo do Campo (the "B" in ABC) as part of a retrenchment in South America involving the elimination of 4,500 jobs by November, the report relays. The US automaker attributed the closure to a strategic decision to halt production and sale of Ford pick-up trucks in South America, the report notes. But Mr. Wagner said that Ford's withdrawal is an isolated case, the report says. "We are a base that still has 70,000 metal workers," he said, adding that the ABC Paulista accounts for up to 30 percent of Brazilian car production, half of the country's truck output and 90 percent of all buses made in Brazil, EFE News discloses. Large foreign automakers, including Ford and Volkswagen, established plants in the area in the 1960s, when a lack of competition in Brazil made it possible for the multinationals to reap "astronomical" profits, according to Santana, the report relays. In that environment, he said, employers were determined to keep the factories humming and unions were able to bargain for high wages and labor rights, the report notes. Thanks to favorable contracts and seniority, the median wage for an assembly worker at an auto plant in Sao Bernardo do Campo climbed to BRL6,300 (about $1,680) a month, the report notes. The report says that the 1990s saw other Brazilian states offering tax incentives to lure manufacturing plants away from Sao Paulo, a practice that remains the chief threat to the ABC Paulista, Santana said. In the face of a challenging scenario, the ABC has tried to make itself a specialized center of auto-parts production while also diversifying into other areas, the report relays. "There are already factories here that produce radar or equipment for oil prospecting," the union leader said, the report discloses. Ford's announcement was a blow to the region and its workers, but the union is hoping to reverse the decision to close the plant, the report says. Though they are not officially on strike, Ford employees in Sao Bernardo do Campo have not reported for work since Feb. 19. The workers plan to return to the factory Feb. 26 for an assembly to decide what their next steps will be, the report says. Besides the 2,800 Ford employees, the plant is staffed by 1,700 contractors doing cleaning and maintenance, and the union estimates that the shutdown will affect 27,000 people in all, taking into account the numerous local businesses that depend on the factory and the spending by employees, the report notes. As reported on the Troubled Company Reporter-Latin America on Feb. 11, 2019, S&P Global Ratings affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil. The outlook on the long-term ratings remains stable. At the same time, S&P affirmed its transfer and convertibility assessment of 'BB+'. S&P also affirmed its 'brAAA' national scale rating, and the outlook remains stable. FORD MOTORS: To Close Brazil Plant, Exit South America Truck Biz ---------------------------------------------------------------- Marcelo Rochabrun, Alberto Alerigi, and Ben Klayman at Reuters report that Ford Motor Co said it will close its oldest factory in Brazil and exit its heavy commercial truck business in South America, a move that could cost more than 2,700 jobs as part of a restructuring meant to end losses around the world. Ford previously said the global reorganization, to impact thousands of jobs and possible plant closures in Europe, would result in $11 billion in charges, according to Reuters. Following that announcement, analysts and investors had expected a similar restructuring in South America, the report notes. Ford Chief Executive Jim Hackett said last month that investors would not have to wait long for the South American reorganization plan, the report relays. The factory slated for closure is in Sao Bernardo do Campo, an industrial suburb of Sao Paulo that has operated since 1967, the report recalls. It first produced a number of auto models before being switched predominantly to trucks in 2001, the report says. It makes the F-4000 and F-350 trucks, as well as the Fiesta small car, a sales laggard, the report discloses. The factory closure may mean Ford is refocusing on the core of its car business in Latin America's largest economy, based in a much newer factory in the northeastern state of Bahia, the report notes. But the job cuts in Brazil's industrial heartland represent a psychological blow for the new administration of far-right President Jair Bolsonaro, which is battling an unemployment rate above 11 percent, the report says. Ford's latest cuts come as investors watch for signs of progress on the company's alliance with Volkswagen AG, which already encompasses commercial vans and pickup trucks but may soon expand into electric and self-driving cars, the report discloses. The two automakers have also pledged to work together on other projects, which could include combining capacity in regions like South America, the report notes. "You can't cost cut your way to prosperity in the long term," said David Kudla, who heads Michigan-based Mainstay Capital Management, a firm that previously owned Ford stock, the report relays. "We want to hear about the future, what you're doing for mobility services and autonomous vehicles," he added. The closure is also a blow to the industrial outskirts of Sao Paulo, where Brazil's automotive industry was born and which long drove its industrial growth, the report notes. It is also where imprisoned former President Luiz Inacio Lula da Silva came to fame as a union leader who organized massive strikes that helped harken the end of the military dictatorship, the report relays. But Sao Bernardo Mayor Orlando Morando complained angrily that Ford gave no warning and failed to discuss the closure with the workers, the report notes. "The 2,800 families directly affected and another 2,000 indirectly affected deserved a chance to react. This is an act of cowardice," Mr. Morando's office said in a statement obtained by the news agency. A Ford spokesman declined to provide a precise figure for job cuts but acknowledged there would be "a significant impact" and said the automaker would work with unions and other affected parties on "next steps," the report relays. Ford South America President Lyle Watters said the automaker remains "committed" to South America, a region where it is not currently profitable, the report notes. Slow Growth Sales of Ford cars and light trucks grew by 10 percent between 2017 and 2018 in Brazil, lagging a 15 percent post-recession increase for the industry as a whole, the report notes. In the trucks business, it ranked fourth, with sales less than half those of Mercedes Benz and Volkswagen, the report discloses. The report says that Ford said in October it would stop building its Focus compact cars in Argentina in May 2019 as part of efforts to end its losses in the region. Kleiton Da Silva, an employee and union representative in Ford's surviving Bahia plant, said the carmaker was in talks to cut 650 of its workforce there, which the automaker has said totals 4,604, the report relays. The No. 2 U.S. automaker expects to record pre-tax special charges of about $460 million, with most of that recorded this year, it said in the statement, the report adds. STATE OF MINAS GERAIS: S&P Cuts GSR to SD on Missed Debt Payments ----------------------------------------------------------------- On Feb. 25, 2019, S&P Global Ratings lowered its global scale and national scale ratings on the state of Minas Gerais to 'SD' from 'CCC-' and 'brCCC-', respectively. RATIONALE On Feb. 15, 2019, the state missed several debt service payments due to domestic and multilateral banks. The sovereign guarantees the majority of these loans, and S&P expects it to fulfill the debt service payment in the following weeks. However, because the loan agreements don't incorporate a stated grace period, according to our criteria, timely payment must occur no later than five business days after the due date (either by the state or by the federal government as guarantor). Given that this didn't occur, S&P considers this to be a default. S&P defines selective default when an obligor has failed to pay one or more of its financial obligations (rated or unrated) when it came due. S&P assigns an 'SD' rating when it believes that the obligor has selectively defaulted on a specific issue or class of obligations, but it will continue to meet its payment obligations on other issues or classes of obligations in a timely manner. Minas Gerais has payments coming due in late February and in March to multilateral lending agencies, and public and private banks. The state would cure its selective default once the missed debt services are paid and if it's current on other debt payments. If the payment is made to one or some of the creditors, but Minas Gerais has outstanding past-due debt service payments, as S&P's criteria defines, to other creditors, then the ratings would remain at 'SD'. The ratings that the state would receive upon emerging from default will depend on S&P's assessment of its willingness and capacity to continue repaying debt and of its overall credit profile. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Business Climate is Great, Official Says ------------------------------------------------------------ Dominican Today reports that Foreign minister Miguel Vargas called Dominican Republic's investment climate favorable and offered details on the free zone model, where 300 of the world's most important product brands are produced. During the meeting with members of the Israeli Chamber of Commerce, the official spoke in detail about the growth of the national economy, port facilities and free trade agreements with both the United States (DR-CAFTA) and the European Union (EPA), according to Dominican Today. The report notes the Chamber, created over 60 years ago, represents 100 companies and business activities both in Israel and abroad. The participants were from the areas of mining, construction, technology, transportation and agribusiness, the report relays. "The Israeli business leaders coordinated a trade mission to the Dominican Republic to meet with their Dominican counterparts and carry out joint business activities," Mr. Vargas added in a statement obtained by the news agency. 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: Punta Catalina Plant in Final Phase of Tests ---------------------------------------------------------------- Dominican Today reports that Dominican Republic Finance Minister Donald Guerrero affirmed: "The reality of Punta Catalina is that the plant is marching in the final phase of tests and must start generating for the system." According to the official, the coal-fueled power plant will provide some 40 megawatts of energy that will contribute to increase the country's energy supply, the report notes. Mr. Guerrero also denied that the plant hasn't started operations because the Brazilian contractor Odebrecht has halted the project, according to Dominican Today. "That's false. There is no Odebrecht payment requirement that hasn't been met in accordance with the set dates in the construction of the plant" Mr. Guerrero said during a presentation of the First National Productivity Index in the National Palace, the report notes. 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: Voters Approve Controversial Power Project -------------------------------------------------- EFE News reports that voters in several dozen cities in three Mexican states approved a controversial power project opposed by grassroots groups and residents of affected communities. The final tally was 59.5 percent of the ballots cast in favor and 40.1 percent against the Proyecto Integral Morelos, a result that President Andres Manuel Lopez Obrador, a project backer, touted in a press conference, according to EFE News. ===================== P U E R T O R I C O ===================== HIGH TIMES: March 26 Plan Confirmation Hearing ---------------------------------------------- The Bankruptcy Court has conditionally approved the disclosure statement explaining High Times Corp.'s Chapter 11 plan. 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 March 26, 2019 at 10:00 AM at the U.S. Bankruptcy Court, U.S. Post Office and Courthouse Building, 300 Recinto Sur, Courtroom No. 2, Second Floor, San Juan, Puerto Rico. Acceptances or rejections of the Plan may be filed in writing by the holders of all claims 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. About High Times Corp. High Times Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-04770) on August 21, 2018. At the time of the filing, the Debtor estimated assets of less than $500,000 and liabilities of less than $500,000. Judge Enrique S. Lamoutte Inclan presides over the case. Alexis A. Betancourt Vincenty, Esq., at Lugo Mender Group LLC, is the Debtor's bankruptcy counsel. HIGH TIMES: Unsecured Creditors to Recoup 34% Dividend Under Plan ----------------------------------------------------------------- High Times Corp. filed a disclosure statement explaining its small business Chapter 11 plan. Class 3 General Unsecured Creditors are impaired. On the effective date of the plan, Class 3 claimants will receive from the debtors a non-negotiable, non-interest bearing promissory note, dated as of the Effective Date, providing for a total amount of $20,000 to be paid pro-rata to all allowed claimants under this class, which will be payable in consecutive monthly installments of $333.33 during a period of three years with a monthly pro-rata distribution among all allowed members of this Class 3 this on the basis of consecutive monthly installments providing for the payment of the fixed amount for the class. This dividend approximates a 34% of their allowed claims. Class 2.1 - Secured claim of CMIYA Investments Inc. are impaired. Total monthly payment $462.44 beginning Feb 1, 2019 and ending January 31, 2024. Total payoff amount is $27,747.00. This creditor filed POC No. 11. Two credit facilities encumber the same real property identified as RA-7 and Land No. 13343 on the Property Registry. The principal amount owed in these two credit facilities aggregates to $21,629.96. Class 2.2 - Secured claim of CMIYA Investments Inc. are impaired. Total monthly payment is $1,254.21 beginning February 1, 2019, and ending January 31, 2024. This creditor filed POC No. 11. One credit facility encumbers the same real property identified as RA-5 and Land No. 13339 on the Property Registry. The principal amount owed in this credit facility aggregates to $153,290.25. The Plan will be implemented as required under Section 1123(a)(5) of the Bankruptcy Code with the daily operations of the business and its resulting operating cash flows. The Debtor will retain property of the estate in order to operate its business and produce cash flow for the execution of the Plan. A full-text copy of the Disclosure Statement dated February 13, 2019, is available at https://tinyurl.com/yy2xb7xc from PacerMonitor.com at no charge. About High Times Corp. High Times Corp. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-04770) on August 21, 2018. At the time of the filing, the Debtor estimated assets of less than $500,000 and liabilities of less than $500,000. Judge Enrique S. Lamoutte Inclan presides over the case. Alexis A. Betancourt Vincenty, Esq., at Lugo Mender Group LLC, is the Debtor's bankruptcy counsel. LATIN AMERICAN MUSIC: Peer International Bid for Sanctions Granted ------------------------------------------------------------------ In the case captioned J. WALTER THOMPSON PUERTO RICO, INC., Plaintiff, v. LATIN AMERICAN MUSIC COMPANY, INC., et al., Defendants, Civil No. 17-1094 (FAB) (D.P.R.), District Judge Francisco A. Besosa granted Peer International Corporation of Puerto Rico's motion for attorney's fees, costs and sanctions. The Court referred Peer International's motion to a magistrate judge for a Report and Recommendation (R&R) and the R&R is adopted in part and rejected in part. Walgreens Company commissioned J. Walter Thompson Puerto Rico to produce a marketing campaign for the 2016 Christmas season. Walter Thompson procured a license from music publisher Peer International to use "Llego la Navidad" by Raul Balseiro ("the composition"). Peer International issued the license to Walter Thompson for a $5,500 fee. Id. After the marketing campaign aired throughout Puerto Rico, defendants Latin American Music Company, Inc. ("LAMCO") and ACEMLA de Puerto Rico, Inc. ("ACEMLA") informed Walgreens that they possessed exclusive rights to the composition. To resolve competing claims of ownership regarding "Llego la Navidad," Walter Thompson filed an interpleader complaint pursuant to Federal Rule of Civil Procedure 22. In addition to answering the interpleader complaint, LAMCO and ACEMLA set forth copyright infringement claims against Walter Thompson, Peer International, and Walgreens. Peer International moved for judgment on the pleadings pursuant to Federal Rule of Civil Procedure 12(c). The doctrine of collateral estoppel compelled the Court to grant Peer International's motion for judgment on the pleadings. Because LAMCO and ACEMLA's copyright infringement claims are frivolous, the Court issued an Order to Show Cause pursuant to Federal Rule of Civil Procedure 11. Peer International moved for sanctions against LAMCO and ACEMLA pursuant to 28 U.S.C. section 1927. The Court referred Peer International's motion "for a report and recommendation on attorney's fees and sanctions." The Order to Show Cause, however, remained before the Court. The magistrate judge recommended that (1) LAMCO and ACEMLA pay $107,181 in attorney's fees, and (2) that the Court forgo the imposition of sanctions. Peer International does not object to the magistrate judge's recommendation concerning the award of attorney's fees. Consequently, the Court adopts the magistrate judge's recommendation that LAMCO and ACEMLA pay $107,181 in attorney's fees. (Peer International does object, however, to the magistrate judge's recommendations regarding sanctions. According to Peer International, the magistrate judge "issued recommendations regarding the Court's Order to Show Cause . . . under Federal Rule of Civil Procedure 11, . . . not regarding Peer's motion for sanctions under 28 U.S.C. section 1927." he Court agrees. The Order to Show Cause and the motion for sanctions are distinct. The Court invoked Rule 11. Peer International cited section 1927. The Court's referral for an R&R concerned Peer International's motion for sanctions, requiring the magistrate judge to analyze LAMCO and ACEMLA's actions pursuant to section 1927. The R&R, however, is devoid of any reference to section 1927. Accordingly, the R&R is clearly erroneous because the magistrate judge misapplied the law. The Court rejects the magistrate judge's R&R regarding the imposition of sanctions. The Court finds that sanctions against counsel are appropriate pursuant to Rule 11 and section 1927, in addition to the granting of attorneys' fees to Peer International by LAMCO and ACEMLA. The Court recognizes that mere ineptitude is beyond the purview of Rule 11 and section 1927. The claims raised by LAMCO and ACEMLA, however, are flagrant violations of Rule 11 and section 1927. The proposition that LAMCO and ACEMLA own "Llego la Navidad" is legally untenable. A cursory review of dispositive precedent reveals that LAMCO and ACEMLA are collaterally estopped from asserting ownership over the composition. Representations made by LAMCO and ACEMLA in bankruptcy proceedings compound the need for sanctions. LAMCO and ACEMLA filed for bankruptcy protection pursuant to Chapter 11 of the Bankruptcy Code, 11 U.S.C. sections 301, et seq. In asset schedules submitted to the bankruptcy court, the only property listed that LAMCO and ACEMLA claimed to own are their respective logos, each valued at $1. Absent from LAMCO and ACEMLA's asset schedule is "Llego la Navidad." In sum, LAMCO and ACEMLA own "Llego la Navidad" for purposes of seeking relief pursuant to the Copyright Act, but not for purposes of the bankruptcy proceeding. This inconsistency bolsters the Court's conclusion that this action is meritless. Relitigating issues already disposed of in prior actions needlessly consumes judicial resources. LAMCO and ACEMLA were keenly aware that they do not own "Llego la Navidad." The Court cannot impose sanctions on LAMCO and ACEMLA pursuant to section 1927, because this provision applies only to counsel and pro se litigants. Pursuant to Rule 11, the Court "may not impose a monetary sanction . . . against a represented party for violating Rule 11(b)(2)." The Court possesses the inherent power to award attorney's fees if a party has acted "in bad faith, vexatiously, wantonly, or for oppressive reasons." The magistrate judge already recommended, and the Court concurs, that LAMCO and ACEMLA must pay $107,181 in attorney's fees. Courts have repeatedly dismissed copyright infringement actions commenced by LAMCO and ACEMLA on collateral estoppel grounds. LAMCO and ACEMLA's pattern of asserting ownership over compositions they plainly do not own is troubling, vexatious, and an abuse of the judicial process. A copy of the Court's Opinion and Order dated Jan. 14, 2019 is available at https://bit.ly/2EcxrJF from Leagle.com. J. Walter Thomson, Plaintiff, represented by Patricia Rivera-MacMurray, Hernandez Mayoral Law Office. Acemla De Puerto Rico, Inc.,(ACEMLA), Defendant, represented by Jelka L. Duchesne, Puerto Rico Corporate Services & Robert Penchina, Ballard Spahr LLP, pro hac vice. Latin American Music Co.,Inc.(LAMCO), Defendant, represented by Jelka L. Duchesne , Puerto Rico Corporate Services, Kelly D. Talcott , The Talcott Law Firm PC, pro hac vice & Robert Penchina , Ballard Spahr LLP, pro hac vice. Peer International Corporation of Puerto Rico, Defendant, represented by Barry I. Slotnick , Loeb & Loeb LLP, pro hac vice, Frank D'Angelo , Loeb & Loeb LLP, pro hac vice & Katarina Stipec-Rubio, Adsuar Muniz Goyco Seda & Perez Ochoa PSC. Latin American Music Co.,Inc.(LAMCO), ThirdParty Plaintiff, represented by Jelka L. Duchesne, Puerto Rico Corporate Services, Kelly D. Talcott , The Talcott Law Firm PC, pro hac vice & Robert Penchina , Ballard Spahr LLP, pro hac vice. Latin American Music Co Inc., filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 17-02023) on March 24, 2017, disclosing under $1 million in both assets and liabilities. The Debtor is represented by JVictor Gratacos Diaz, Esq. at Gratacos Law Firm, PSC. SEARS HOLDINGS: Committee Hires Herrick as Special Counsel ---------------------------------------------------------- The Official Committee of Unsecured Creditors of Sears Holdings Corporation, and its debtor-affiliates seeks authorization from the U.S. Bankruptcy Court for the Southern District of New York to retain Herrick Feinstein LLP as special conflict counsel to the Committee. On Nov. 20, 2018, following an auction, the Debtors selected Cyrus Capital Partners, L.P. as the winning bidder for the purchase of certain Medium Term Notes Series B issued by Debtor Sears Roebuck Acceptance Corp. The documents governing the MTN Transactions included an agreement by the Debtors to cause non-Debtor affiliate Sears Reinsurance Company Ltd. to refrain from selling, transferring or assigning approximately $ 1.4 billion of the MTNs held by Sears Re. Several CDS Participants, including Omega Advisors, Tnc., and Och-Ziff Capital Structure Arbitrage Master Fund, Ltd., objected to the sale of MTNs to Cyrus, arguing, among other things, that the Auction was improper because of the Sears Re Lock-Up Agreement. The objecting CDS Participants claimed that they were led to believe that only $251 million of MTNs held by the Debtors were available for sale at the Auction. At bottom, the objecting CDS Participants argued that if they had known of the intent to lock-up or purchase the remaining MTNs owned by the Debtors or Sears Re, they would have either bid higher for the $251 million of MTNs noticed for sale at the Auction or sought to purchase the other MTNs owned by the Debtors or Sears Re. According to these objecting CDS Participants, the Debtors had essentially left millions of dollars on the table, to the detriment of the estate, including a $100 million " consortium bid " articulated by Barclays Capital during the December 20 hearing. Accordingly, and in keeping with its fiduciary duties, counsel for the Committee noted the "robust reservation of rights" under the governing sale order and promised an investigation. Due to certain potential conflict issues, the Committee requires Herrick to serve as its special conflicts counsel, with respect to matters pertaining to the MTN investigation. Herrick will be paid at these hourly rates: Partners $580 to $1,150 Counsels $465 to $1,160 Associates $360 to $570 Paraprofessionals $300 to $420 Herrick will also be reimbursed for reasonable out-of-pocket expenses incurred. In accordance with Appendix B-Guidelines for Reviewing Applications for Compensation and Reimbursement of Expenses Filed under 11 U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the following is provided in response to the request for additional information: a. Herrick did not agree to any variations from, or alternatives to, its standard or customary billing arrangements for this engagement. b. No rate for any of the professionals included in this engagement varies based on the geographic location of the bankruptcy case. c. Herrick did not represent any member of the Committee in the Debtors' Chapter 11 Cases prior to its retention by the Committee. d. Herrick expects to develop a budget and staffing plan to comply reasonably with the U.S. Trustee's request for information and additional disclosures, as to which Herrick reserves all rights. e. The Committee has approved Herrick's proposed hourly billing rates. The primary Herrick attorneys staffed on the Debtors' Chapter 11 Cases, subject to modification depending upon further development. Stephen B. Selbst, partner of Herrick Feinstein LLP, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and (a) is not creditors, equity security holders or insiders of the Debtors; (b) has not been, within two years before the date of the filing of the Debtors' chapter 11 petition, directors, officers or employees of the Debtors; and (c) does not have an interest materially adverse to the interest of the estate or of any class of creditors or equity security holders, by reason of any direct or indirect relationship to, connection with, or interest in, the Debtors, or for any other reason. Herrick can be reached at: Sean E. O' Donnell, Esq. Stephen B. Selbst, Esq. Steven B. Smith, Esq. HERRICK, FEINSTEIN, LLP Two Park Avenue New York, NY 10016 Tel: (212) 592-1400 Fax: (212) 592-1500 About Sears Holdings Corp 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. Weil, Gotshal & Manges LLP is serving as legal counsel, M-III Partners is serving as restructuring advisor, and Lazard Freres & Co. LLC is serving as investment banker to Holdings. DLA Piper LLP is the real estate advisor. Prime Clerk is the claims and noticing agent. The U.S. Trustee for Region 2 on Oct. 24, 2018, appointed nine creditors to serve on an official committee of unsecured creditors in the Chapter 11 cases. The Committee retained Akin Gump Strauss Hauer & Feld LLP, as counsel. Herrick Feinstein LLP is the special conflict counsel. SEARS HOLDINGS: Incurs $193 Million Net Loss at Jan. 5 ------------------------------------------------------ Sears Holdings Corporation, et al., filed with the U.S. Securities and Exchange Commission their monthly operating report for December 2, 2018 through January 5, 2019. The Debtors' consolidated statement of operations showed a net loss of $193.00 million on $1.11 billion of total revenue for the current reporting period. As of January 5, 2019, the Debtors listed $31.42 billion in consolidated total assets, $38.67 billion in consolidated total liabilities, and a $7.25 billion in consolidated total shareholders' deficit. The Debtors listed total cash receipts of $1.24 billion and total cash disbursements of $1.21 billion. A copy of the monthly operating report is available at the SEC at: https://is.gd/Z3qysX About Sears Holdings 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. Weil, Gotshal & Manges LLP is serving as legal counsel and M-III Partners is serving as restructuring advisor. Aebersold, Managing Director, and Levi Quaintance, Vice President of Lazard Freres & Co. LLC serve as investment banker to Holdings. DLA Piper LLP is the real estate advisor. Prime Clerk is the claims and noticing agent. The U.S. Trustee for Region 2 appointed nine creditors, including the Pension Benefit Guaranty Corp., and landlord Simon Property Group, L.P., to serve on an official committee of unsecured creditors. Akin Gump Strauss Hauer & Feld LLP is counsel to the creditors' committee. FTI Consulting is financial advisor to the creditors' committee. Houlihan Lokey Capital, Inc., is providing investment banking services to the committee. SEARS HOLDINGS: Net Loss Decreases to $125 million at Dec. 1 ------------------------------------------------------------ Sears Holdings Corporation, et al., filed with the U.S. Securities and Exchange Commission their monthly operating report for November 4, 2018 through December 1, 2018. The Debtors' consolidated statement of operations showed a net loss of $125 million on $924 million of total revenues in November, lower as compared to $404 million net loss reported for the previous period. As of December 1, 2018, the Debtors listed $31.86 billion in consolidated total assets, $39.13 billion in consolidated total liabilities, and a $7.27 billion in consolidated total shareholders' deficit. The Debtors listed total cash receipts of $1.28 billion and total cash disbursements of $1.38 billion. A copy of the monthly operating report is available at the SEC at: https://is.gd/2B57EK About Sears Holdings 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. Weil, Gotshal & Manges LLP is serving as legal counsel and M-III Partners is serving as restructuring advisor. Aebersold, Managing Director, and Levi Quaintance, Vice President of Lazard Freres & Co. LLC serve as investment banker to Holdings. DLA Piper LLP is the real estate advisor. Prime Clerk is the claims and noticing agent. The U.S. Trustee for Region 2 appointed nine creditors, including the Pension Benefit Guaranty Corp., and landlord Simon Property Group, L.P., to serve on an official committee of unsecured creditors. Akin Gump Strauss Hauer & Feld LLP is counsel to the creditors' committee. FTI Consulting is financial advisor to the creditors' committee. Houlihan Lokey Capital, Inc., is providing investment banking services to the committee. ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Fire Disrupts Crude Transport ----------------------------------------------------- Reuters reports that a fire hit a crude oil pumping station in Venezuela's Orinoco belt region, state-owned oil company Petroleos de Venezuela (PDVSA) said, disrupting crude transportation as the cash-strapped firm struggles with the impact of U.S. sanctions. The fire at the Ero pumping station, which has the capacity to transport 300,000 barrels per day of crude, was controlled and no one was injured, the company said in a statement. But the incident will affect transport of crude through pipelines, a source at the company said, without providing further details, according to Reuters. The incident comes weeks after the United States slapped sanctions on PDVSA to try to oust socialist President Nicolas Maduro from power. Venezuela, a founding member of the Organization of the Petroleum Exporting Countries (OPEC), holds the world's largest crude reserves, but production has collapsed amid mismanagement and an economic crisis, the report notes. In the statement, PDVSA said the fire was caused by "an act of sabotage perpetrated by the right-wing opposition," the report relays. The report notes that PDVSA said the Ero station receives crude from its Petrocarabobo oilfield, a joint venture with Spain's Repsol, and from its Petroindependencia joint venture, which is 34 percent owned by Chevron. PDVSA's facilities for producing, refining and transporting oil and fuel often experience outages due to a lack of spare parts and delayed maintenance following years of underinvestment, the report adds. As reported in the Troubled Company Reporter-Latin America on Aug. 24, 2018, S&P Global Ratings affirmed its 'SD' global scale issuer credit rating and 'D' issue-level ratings on Petroleos de Venezuela S.A. (PDVSA). ********* 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 * * *