TCRLA_Public/190809.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, August 9, 2019, Vol. 20, No. 159

                           Headlines



B E R M U D A

TEEKAY OFFSHORE: Fitch Affirms 'B' LT IDR, Outlook Stable


B R A Z I L

BRAZIL: Lower House Approves Pension Overhaul to Tackle Budget Gap
CAIXA ECONOMICA: Fitch Withdraws 'B' Rating on Subordinated Debt
JBS SA: Disclose Early Tender Results of Notes Offering
ODEBRECHT SA: Proposes Up to 75% Cut to Ethanol Unit Debt


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Accumulated Inflation From Jan.-June at 1.17%
DOMINICAN REPUBLIC: Haitian Labor Needed for Agro Business
DOMINICAN REPUBLIC: Public Debt Requires Tax Reform, Experts Warn


M E X I C O

CELADON GROUP: Completes $165 Million in New Long-Term Financing
PERKINS & MARIE: In Ch.11 to Sell Perkins, Foxtail Segment
PETROLEOS MEXICANOS: Needs $20BB a Year in Investment, BBVA Says


P U E R T O   R I C O

PUERTO RICO: New Governor Faces Legal Challenge

                           - - - - -


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B E R M U D A
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TEEKAY OFFSHORE: Fitch Affirms 'B' LT IDR, Outlook Stable
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Fitch Ratings has affirmed Teekay Offshore Partners, L.P.'s
Long-term Issuer Default Rating at 'B' and senior unsecured bonds
at 'B'/'RR4'. The Rating Outlook is Stable.

TOO's ratings reflect the expected stability of earnings and cash
flows supported by long-term, fixed-fee contracts with large
counterparties. The ratings also reflect the critical
infrastructure that the company provides through its shuttle
tankers and floating production and storage offloading (FPSO)
operations to deepwater oil and gas operators, as well as the
partnership's leading industry position. This stability is offset
by high leverage and significant structural subordination of
partnership-level debt to first-lien secured debt on vessels and
unsecured debt at both its ring-fenced subsidiary, Teekay Shuttle
Tankers LLC, and its other operating subsidiaries. This introduces
a risk that performance difficulties leading to cash flow
disruptions or an inability to refinance vessel mortgages could
adversely impact the partnership's liquidity. The ratings consider
TOO's growth capital expenditures over the next two years of
between $300 million to $400 million annually, which will require
meaningful funding; however, this is somewhat offset by the
reduction of distribution payments and TOO's historic ability to
raise secured funding in support of vessel construction. The
ratings also acknowledge the presence of a supportive sponsor in
Brookfield Business Partners L.P., which provides operational and
financial benefits to the partnership, through its GP revolving
credit facility and equity contributions over the past several
years.

The ratings consider that the primary operating risk is TOO's
inability to secure additional long-term contracts after
expiration, or that the timing between contracts endangers
liquidity to meet operating needs or debt service or principal
repayments as they come due. The structural subordination compounds
this risk. However, positive industry tailwinds and relationships
with investment-grade counterparties are considered factors that
can potentially raise the credit profile through securing
additional long-term, fixed-fee contracts on vessels coming
off-hire, offset by execution risk around re-contracting and
refinancing. Operating concerns also include the potential for
underperformance at TOO's towage and UMS (unit for maintenance and
safety) segments, weighing on EBITDA growth and delaying leverage
improvement.

Key Rating Drivers

Smoother Sailing Versus Expectations: Reported results and credit
metrics have been better than Fitch's expectations. Consolidated
leverage, defined as total consolidated debt inclusive of 50%
equity treatment of preferred equity divided by consolidated
Operating EBITDA inclusive of cash distributions from
non-consolidated joint ventures (JVs), was 4.9x in 2018 compared to
Fitch's target of 5.5x. Higher shuttle rates and utilization were
contributors to the outperformance, outside of a positive
settlement receipt from Petrobras. Additionally, contributions from
equity accounted investments (two FPSO JVs) were higher than
expected.

Liquidity Concerns Remain Afloat: Fitch is concerned about the
partnership's liquidity stemming from the need to regularly
refinance secured vessel debt and handle considerable principal
amortizations every year. Other concerns include cash demands from
sizable near-term committed capital expenditures and interest on
extant obligations, the company's ability to meet existing
quarterly distributions on preferred units, pay dry docking
expenditures, and fund a working capital deficit. The high volume
of debt issuances to be refinanced alone presents a set of risks as
changing interest rates, fluctuating vessel valuations and lender
appetites can all change materially over a relatively short period
of time, reducing visibility into the company's ability to secure
attractive financing on an ongoing basis. Similar to its situation
on contracts (recurrent renewal required within changing business
conditions), TOO's success with refinancing can potentially bolster
the partnership's credit profile.

A Strong Current of Near-term Funding Needs: TOO has a large demand
on cash over the balance of 2019 through 2020. As at June 30, 2019,
the company's total future spending tabbed for vessels,
newbuildings and committed conversions was roughly $725 million,
consisting of ~$250 million for the remainder of 2019, just over
$400 million in 2020 and $75 million in 2021. The lion's share of
the expected capex is going towards six shuttle tanker newbuildings
and roughly 2/3 of that spending has been secured via a $414
million committed credit facility mainly funded and guaranteed by
Canadian and Norwegian export credit agencies. These capital
expenditures are in addition to roughly $1.25 billion from
2019-2021 of debt maturities, most of which TOO will be
refinancing. Thus far, in 2019 the company has successfully
completed three financings including the mentioned newbuildings
facility, a $100 million secured revolving credit facility on three
FPSO units and a $450 million revolving credit facility secured by
16 of the company's shuttle tankers. Fitch expects TOO to remain
FCF negative until the current slate of newbuildings is completed,
at which time capital spending is expected to drop off materially.
Fitch expects shortfalls over the next 12-24 months to be met with
debt offerings, a large portion of which has been completed already
this year.

Contracts, the Ebb and Flow: The company has a good number of
relatively long-term, fixed-fee contracts on its shuttle tankers,
floating storage and FPSO operations signed with large
counterparties (predominantly Shell and Petrobras) which should
provide stable earnings and cash flows in the near to intermediate
term. TOO's earnings are primarily generated from its FPSO and
shuttle tankers business segments, which together comprise
critical, irreplaceable operational linkage in the ultra-deepwater
(UDW) offshore oil and gas industry. TOO benefits from some size
and scale advantages relative to other offshore services companies
operating in this corner of the market, with one of the largest
fleets of shuttle tankers and as one of the larger operators of
FPSOs in the offshore industry. Yet, the company's capacity is not
100% long-term contracted so leaves a portion of the business
subject to spot/current market re-contracting rates and
necessitates the need to find suitable working homes for assets
that are 'laid-up'. Additionally, there is more than one contract
coming due over the forecast period on large assets that could have
a meaningful impact to the bottom line. In all, Fitch expects
stability of results over the forecast period but it is not without
event risk, both positive and negative.

Leverage Moves Away from High Tide: Leverage improved in 2018.
However, leverage is expected to increase in 2019 as a result of
increased newbuild spending, one FPSO coming off contract, one FPSO
beginning to operate on a contract extension at lower rates and
lower revenue resulting from vessel sales, among others.
Consolidated leverage is seen decreasing from approximately 5.5x in
2019 to below 4.8x beyond 2021. While credit metrics have improved
and the positive momentum is expected to continue beyond 2019,
leverage nevertheless remains elevated at present for the level of
business risk. Additionally, an inability to re-contract vessels
with existing customers/quickly redeploy to new customers could
lead to leverage remaining in the 5.5x range.

Structural Subordination: TOO's capital structure has a significant
amount of secured debt at the vessel level, and at its ring-fenced
subsidiary Teekay Shuttle Tankers, LLC. As such, partnership-level
debt is structurally subordinate to roughly $2.3 billion in
subsidiary level debt. The structurally superior debt largely
encumbers 50 of a total of 57 vessels, and holds a first-lien
secured interest in those vessels. Additionally, the partnership
receives distributions from two non-consolidated, off-balance sheet
joint ventures, Libra and Itajai, which have large debt
obligations. Operating performance difficulties or cash flow
disruptions at the operating vessels could negatively impact TOO's
ability to service its obligations at the partnership level.

Supportive Sponsorship: Fitch believes Brookfield to be a
supportive sponsor of TOO. Financial support is evidenced by an
equity investment of $610 million in 2017, the repurchasing and
cancellation of two expensive series of preferred units in the same
year, and the extension of a committed $125 million unsecured GP
revolver to TOO to enhance the partnership's liquidity. At present,
Brookfield owns 100% of the TOO GP units as well as roughly 73% of
the LP units outstanding, with a bid to purchase the remaining LP
units at what is currently a below market price. Brookfield has
demonstrated a patient approach to developing and capitalizing
slowly emerging trends. Given TOO's ongoing refinancing needs Fitch
views the potential added flexibility afforded by being a
Brookfield controlled/owned entity as being relatively positive for
TOO's credit profile.

Derivation Summary

TOO is unique among Fitch's publicly rated MLP coverage given its
niche marine focus. From an operating perspective, TOO's FPSO and
shuttle tanker segments compare to midstream pipeline
transportation and gathering and processing assets. Roughly 66% of
TOO's revenue is contracted under intermediate to long term
contracts with large counterparties (this excludes shuttle tannkers
operating under relatively short-term Contracts of Affreightment).
This is consistent with several of Fitch's rated high yield (BB-/B
& IDR) rated G&P names where investment grade counterparty exposure
ranges from 40% to 80%. TOO's consolidated operations are supported
by long-term take-or-pay contracts, with some volumetric risks for
a mid-range rated average contract life of 4.4 years for its FPSO
business (inclusive of JVs) and 5.8 years for its shuttle tanker
business. As such TOO's contract tenor compares less favorably to
higher rated midstream energy peers, such as Boardwalk Pipeline
Partners, LP (BBB-/Stable) and Cheniere Energy Partners, L.P. (CQP;
BB/Stable). TOO debt is also structurally subordinate to a
significant amount of operating subsidiary level debt both on a
secured and unsecured basis, similar to CQP but with leverage on a
consolidated basis forecast to be higher than other more highly
rated peers with structural subordination considerations and
without some of the offsetting cash flow stream diversity that
others possess. CQP additionally has longer-term plans to alleviate
structural subordination concerns by migrating its refinanced
project debt to the corporate level, which Fitch views overall as a
positive to the credit profile. TOO has fewer stated long-term
plans to shift its capital structure, by contrast. Fitch views
CQP's undiversified cash flows in LNG export to be a stronger
business than TOO's offshore and, as CQP reaches run-rate earnings
on its export facility, size and scale considerations have begun to
offset diversification and capital structure concerns. TOO's
leverage is high with yearend total debt with equity
credit-to-operating EBITDA of 5.5x expected for 2019.

Key Assumptions

Fitch's Key Assumptions Within Its Rating Case for the Issuer

  -- Growth beyond contract extensions or contract expirations and
vessel sales is driven largely by successful and timely newbuild
shuttle tanker deliveries;

  -- The Ostras FPSO remains in lay-up until the end of 2019, at
which time the vessel is sold;

  -- The Petrojarl Varg is recontracted by mid-2020 but upgrades
are not completed in time for first oil to be achieved within the
forecast period;

  -- The Randgrid FSO contract is extended through the forecast
period;

  -- All other major contracts with FPSOs and associated shuttle
tankers, Knarr, Petrojarl I, Voyaguer and Piranema Spirit, as well
as the Libra and Itajai remain on-contract, or are able to
recontract according to management expectations and/or current
negotiations, reflecting improving FPSO market fundamentals;

  -- Arendal Spirit UMS unit is off-hire through 2020, due to
current weak floating accommodation market conditions, but then is
contracted at economical rates;

  -- Utilization of shuttle tanker COA pool in the North Sea to
remain near 80%, consistent with management forecasts;

  -- Towage segment utilization remains depressed in the low 60%
range in 2019 before creeping up to near 80% by the end of the
forecast period, with steady day rates;

  -- TOO successfully refinances its major FPSO and shuttle tanker
vessel-level debt to better match current contract expirations
and/or after signing new contracts.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action

  -- Total Debt /Adjusted EBITDA, defined as total consolidated
debt inclusive of 50% equity treatment of preferred equity divided
by consolidated Adjusted EBITDA inclusive of cash distributions
from non-consolidated JVs, below 5.0x on a sustained basis;

  -- Successful contract extension/upgrade and redeployment of FPSO
and/or shuttle tanker vessels following current contract
conclusions, leading to an expected increase in cash flow
generation and decrease in leverage.

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  -- Total Debt/Adjusted EBITDA sustained above 6.0x;

  -- Failure to secure refinancings on existing secured maturities
as well as an extension of the maturity date on the GP Revolver
consistent with Fitch expectations;

  -- Sustained inability to re-contract expiring FPSO or shuttle
tanker contracts.

Liquidity and Debt Structure

Limited Liquidity: TOO's liquidity is limited to a small amount of
available cash reserves. The terms of certain financings at
subsidiaries of TOO cause the $202 million of cash at June 30, 2019
to be deemed by Fitch as not entirely readily available. Fitch
calculates readily available cash at the TOO level to be
approximately $50 million. Additionally, the company has one
revolving credit facility at the partnership level (the GP
Revolver) and two facilities at the subsidiary level, however all
three facilities are currently fully drawn. The GP Revolver matures
in October 2019, Fitch believes the company will be able to
successfully extend the maturity date on this facility and end 2019
with a small amount of available capacity.

As of June 30, 2019, TOO's two fully drawn subsidiary level secured
revolving credit facilities consisted of the $450 million shuttle
tanker revolver and the $100 million FPSO revolver. These are in
addition to the unsecured Brookfield GP Revolver of $125 million
held at the partnership level. The total amount available under
these revolvers reduces by roughly $70 million per year over the
forecast period. The two vessel revolvers are collateralized by
first-priority mortgages on nineteen of the Partnership's vessels.
While the company refers to these facilities as revolvers, Fitch
notes that they function more similarly to term loans or mortgages,
where the entire amount is borrowed upfront, and amortizations of
principal and interest are expected over the loan life. As such,
the Partnership itself has only the $125 million GP Revolver at the
top level available for immediate liquidity beyond available cash.
Interest on the revolving credit facilities are based on LIBOR plus
margins, with a weighted average interest rate of approximately 6%,
excluding the effect from TOO's interest rate swaps.

On a segmented basis, TOO's maturity schedule is somewhat
manageable. Its debt service requirements are backed by long-term
contracts at the mortgaged vessels. These obligations are serviced
prior to any upstream distributions being made to intermediate
holdco's and parent entities. Vessel newbuilding costs are often
financed upfront by mortgaging the vessel and its associated
contract. Vessel mortgage refinancing is a concern; however, since
this requires near-constant access to the commercial banking
capital markets, and may result in higher amortization requirements
before cash is distributed upwards, reducing cash flow to the
parent despite no change in terms of the contracts. At the
TOO-level, the company depends on the upstream distributions from
its vessel owning subsidiaries in order to service its debt and
refinance.



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B R A Z I L
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BRAZIL: Lower House Approves Pension Overhaul to Tackle Budget Gap
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Maria Carolina Marcello at Reuters reports that Brazil's lower
house of Congress approved a far-reaching pension overhaul bill
aimed at reducing a huge budget gap, with the central economic
reform proposed by far-right President Jair Bolsonaro now advancing
to the Senate.

The government said the bill will save the public purse BRL933
billion ($235 billion) over the next decade, according to Reuters.

The text had already been approved by the lower house, 379 to 131,
in July, the report notes.  However, under Brazilian law, the text
requires two votes in both the lower and upper houses, as it
includes changes to the federal constitution, the report relays.

In the second round, the controversial bill passed by a vote of 370
to 124, and the chamber later rejected eight amendments that were
proposed mainly by its opponents and would have substantially
reduced the fiscal savings, the report notes.

Economy Minister Paulo Guedes went to Congress to thank lawmakers
for passing his reform bill and told reporters he expects its
passage through the Senate to be smooth, the report discloses.

"This reform changes the history of Brazil," Guedes said, the
report adds.

As reported in the Troubled Company Reporter-Latin America on May
27, 2019, Fitch Ratings has affirmed Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-' with a Stable
Outlook.

CAIXA ECONOMICA: Fitch Withdraws 'B' Rating on Subordinated Debt
----------------------------------------------------------------
Fitch Ratings has withdrawn the 'B' rating on Caixa Economica
Federal's (Caixa; Long-Term Foreign and Local Currency Issuer
Default Ratings BB-/Stable) subordinated debt because the bonds
have been called and cancelled.

RATING SENSITIVITIES

SUBORDINATED DEBT

Rating sensitivities are not applicable as the rating on the
subordinate debt has been withdrawn.

JBS SA: Disclose Early Tender Results of Notes Offering
-------------------------------------------------------
JBS S.A. disclosed the early tender results in connection with JBS
Investments GmbH's ("JBS Investments") previously announced offers
to purchase for cash (the "Tender Offers") for (i) any and all of
the outstanding U.S.$750,000,000 aggregate principal amount of
7.250% Senior Notes due 2024 of JBS Investments (the "2024 Notes")
and (ii) up to U.S.$350,000,000 (the "Maximum Tender Amount") of
the outstanding U.S.$775,000,000 aggregate principal amount of
6.250% Senior Notes due 2023 of JBS Investments (formerly ESAL
GmbH) (the "2023 Notes" and together with the 2024 Notes, the
"Notes"). JBS also announced receipt of requisite consents in
connection with JBS Investments' previously announced consent
solicitation (the "2024 Notes Consent Solicitation") from the
holders of the 2024 Notes for the adoption of the Proposed
Amendments (as defined below).

The terms and conditions of the Tender Offers and the 2024 Notes
Consent Solicitation are described in the Offer to Purchase and
Consent Solicitation Statement, dated July 23, 2019 (the "Offer to
Purchase"), previously distributed to holders of the Notes.

JBS has been advised that as of 5:00 p.m., New York City time, on
August 5, 2019 (such date and time, the "Early Tender Payment
Deadline"), U.S.$449,135,000 in aggregate principal amount of the
2024 Notes, representing approximately 60% of the outstanding 2024
Notes, had been validly tendered (and not validly withdrawn)
pursuant to the 2024 Notes Tender Offer and consents delivered
pursuant to the 2024 Notes Consent Solicitation. JBS Investments
intends to purchase all 2024 Notes validly tendered (and not
validly withdrawn) at or prior to the Early Tender Payment
Deadline, with such settlement date expected to be on August 6,
2019 (the "2024 Notes Early Settlement Date").

JBS Investments has been advised that as of the Early Tender
Payment Deadline, U.S.$413,109,000 in aggregate principal amount of
the 2023 Notes, representing approximately 53% of the outstanding
2023 Notes, had been validly tendered (and not validly withdrawn)
pursuant to the 2023 Notes Tender Offer.  Because the aggregate
principal amount of 2023 Notes tendered in the 2023 Notes Tender
offer exceeds the Maximum Tender Amount, the amount of 2023 Notes
validly tendered at or prior to the Early Tender Payment Deadline
and accepted for purchase on the settlement date, with such
settlement date expected to be on August 6, 2019 (the "2023 Notes
Early Settlement Date"), will be prorated and subject to the
proration procedures described in the Offer to Purchase.

The total consideration payable to 2024 Notes Holders for each
U.S.$1,000 principal amount of 2024 Notes validly tendered at or
prior to the Early Tender Payment Deadline and purchased pursuant
to the 2024 Notes Tender Offer will be U.S.$1,039.75 (the "2024
Notes Total Consideration"). The 2024 Notes Total Consideration
includes an early tender payment of U.S.$30.00 per U.S.$1,000
principal amount of 2024 Notes (the "2024 Notes Early Tender
Payment"), plus accrued and unpaid interest up to, but not
including, the 2024 Notes Early Settlement Date, payable only to
2024 Notes Holders who validly tender (and do not withdraw) their
2024 Notes and validly deliver (and do not revoke) the related 2024
Notes consents at or prior to the Early Tender Payment Deadline.
JBS Investments intends to execute a supplemental indenture (the
"2024 Notes Supplemental Indenture") to the indenture governing the
2024 Notes (the "2024 Notes Indenture"), which will, among other
things, (i) eliminate substantially all of the restrictive
covenants and certain events of default and related provisions
contained in the 2024 Notes Indenture and (ii) reduce the minimum
required notice period for the redemption of 2024 Notes from 30
days to three days prior to the date fixed for redemption
(maintaining the maximum notice period of 60 days). Adoption of the
proposed amendments (the "Proposed Amendments") to the 2024 Notes
Indenture requires consents of holders of a majority in aggregate
principal amount of the 2024 Notes outstanding (excluding any 2024
Notes owned by JBS or any of its affiliates). JBS Investments has
obtained the requisite consents for the Proposed Amendments to the
2024 Notes Indenture. Any 2024 Notes not tendered and purchased
pursuant to the 2024 Notes Tender Offer will remain outstanding and
will be governed by the terms of the 2024 Notes Indenture, as
amended by the 2024 Notes Supplemental Indenture.

The total consideration payable to 2023 Notes Holders for each
U.S.$1,000 principal amount of 2023 Notes validly tendered at or
prior to the Early Tender Payment Deadline and purchased pursuant
to the 2023 Notes Tender Offer will be U.S.$1,022.08 (the "2023
Notes Total Consideration"). The 2023 Notes Total Consideration
includes an early tender payment of U.S.$30.00 per U.S.$1,000
principal amount of 2023 Notes (the "2023 Notes Early Tender
Payment"; and together with the 2024 Notes Early Tender Payment,
the "Early Tender Payment"), plus accrued and unpaid interest up
to, but not including, the 2023 Notes Early Settlement Date,
payable only to 2023 Notes Holders who validly tender (and do not
withdraw) their 2023 Notes at or prior to the Early Tender Payment
Deadline.

Holders who have not yet tendered their Notes have until 11:59
P.M., New York City time, on August 19, 2019, unless extended by
JBS Investments (such time and date, as it may be extended, the
"Expiration Time") to tender their Notes pursuant to the applicable
Tender Offer. Holders of Notes who validly tender their Notes after
the Early Tender Payment Deadline but at or prior to the Expiration
Time will not be entitled to receive the Early Tender Payment and
will therefore be entitled to receive only the applicable Tender
Offer Consideration, as described in the Offer to Purchase, plus
accrued and unpaid interest up to, but not including, the Final
Settlement Date. In addition, because the aggregate principal
amount of 2023 Notes tendered in the 2023 Notes Tender offer
exceeds the Maximum Tender Amount, the amount of any 2023 Notes
tendered after the Early Tender Payment Deadline will not be
eligible for purchase.

JBS Investments' obligation to accept for purchase, and to pay for,
Notes validly tendered and not validly withdrawn pursuant to the
Tender Offers is conditioned upon the satisfaction or, when
applicable, waiver of certain conditions, which are more fully
described in the Offer to Purchase, including, among others, a
financing condition as described in the Offer to Purchase. In
addition, subject to applicable law, JBS Investments reserves the
right, in its sole discretion, to not accept any tenders of or
deliveries of consents for any reason. JBS Investments is making
the Tender Offers and the 2024 Notes Consent Solicitations only in
those jurisdictions where it is legal to do so.

Barclays Capital Inc. is acting as dealer manager for the Tender
Offers and as solicitation agent for the 2024 Notes Consent
Solicitation. Questions regarding the Tender Offers and the 2024
Notes Consent Solicitation should be directed to Barclays at +1
(800) 438-3242 (toll free) or +1 (212) 528-7581 (collect).

Copies of the Offer to Purchase are available to holders of Notes
from D.F. King & Co., Inc., the information agent and the tender
agent for the Tender Offers and the 2024 Notes Consent
Solicitation. Requests for copies of the Offer to Purchase should
be directed to D.F. King at +1 (877) 536-1556 (toll free), +1 (212)
269-5550 (collect) or jbs@dfking.com.

Neither the Offer to Purchase nor any related documents have been
filed with the U.S. Securities and Exchange Commission, nor have
any such documents been filed with or reviewed by any federal or
state securities commission or regulatory authority of any country.
No authority has passed upon the accuracy or adequacy of the Offer
to Purchase or any related documents, and it is unlawful and may be
a criminal offense to make any representation to the contrary.

The Tender Offers and the 2024 Notes Consent Solicitation are being
made solely on the terms and conditions set forth in the Offer to
Purchase. Under no circumstances shall this press release
constitute an offer to buy or the solicitation of an offer to sell
the Notes or any other securities of JBS or any of its
subsidiaries, including JBS Investments. The Tender Offers and the
2024 Notes Consent Solicitation are not being made to, nor will JBS
accept tenders of Notes or accept deliveries of 2024 Notes Consents
from, holders in any jurisdiction in which the Tender Offers and
the 2024 Notes Consent Solicitation or the acceptance thereof would
not be in compliance with the securities of blue sky laws of such
jurisdiction. This press release also is not a solicitation of
consents to the Proposed Amendments to the indenture governing the
2024 Notes. No recommendation is made as to whether holders should
tender their Notes or deliver their consents with respect to the
2024 Notes. Holders should carefully read the Offer to Purchase
because it contains important information, including the various
terms and conditions of the Tender Offers and the 2024 Notes
Consent Solicitation.

As reported in the Troubled Company Reporter-Latin America on June
19, 2019, Fitch Ratings has upgraded JBS S.A.'s Long-Term Foreign-
and Local Currency Issuer Default Ratings and senior unsecured
notes issued by JBS Investments GmbH and JBS Investments II GmbH
to 'BB' from 'BB-'. The National Scale rating was upgraded to 'AA+
(bra)' from 'A(bra)'. The Rating Outlook is Stable. The upgrade
reflects JBS expected deleveraging and strong free cash flow
generation and improved financial flexibility due to recent
liability management.

ODEBRECHT SA: Proposes Up to 75% Cut to Ethanol Unit Debt
---------------------------------------------------------
Tatiana Bautzer and Gram Slattery at Reuters report that Brazilian
construction conglomerate Odebrecht SA has proposed cutting the
debt of its ethanol unit Atvos by between 35% to 75%, newspaper
Valor Economico reported.

Citing court documents, Valor said Odebrecht proposed a 35% haircut
on secured debt and 75% on the unsecured debt of its ethanol unit,
according to Reuters.

Atvos debt subject to restructuring, excluding credits owed to
other units of the Odebrecht conglomerate will have a global
haircut of 46%, reducing its total financial debt from BRL10.5
billion ($2.65 billion) to BRL5.7 billion, the newspaper said, the
report notes.

                       About Odebrecht SA

Odebrecht S.A. -- www.odebrecht.com -- is a Brazilian conglomerate
consisting of diversified businesses in the fields of engineering,
construction, chemicals and petrochemicals. Odebrecht S.A. is a
holding company for Construtora Norberto Odebrecht S.A., the
biggest engineering and contracting company in Latin America, and
Braskem S.A., the largest petrochemicals producer in Latin America
and one of Brazil's five largest private-sector manufacturing
companies. Odebrecht controls Braskem, which by revenue is the
fourth largest petrochemical company in the Americas.

On June 17, 2019, Odebrecht filed for bankruptcy protection, aiming
to restructure BRL51 billion (US$13 billion) of debt.

The bankruptcy filing comes after years of struggles for Odebrecht,
the biggest of the Brazilian engineering groups caught in a
sweeping political corruption investigation that has rippled across
Latin America, Reuters relayed, as reported by The Troubled Company
Reporter - Latin America.



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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Accumulated Inflation From Jan.-June at 1.17%
-----------------------------------------------------------------
Dominican Today reports that central banker, Hector Valdez Albizu,
said Dominican Republic's economy grew 4.7%, with an annual
inflation of 0.92% and an accumulated inflation from January to
June of 1.17%.

The official spoke after meeting with Dominican Industries
Association (AIRD) president Celso Juan Marranzini and other
executives, to review the performance of the Dominican economy and
its industrial activity, as well as to the sectorial placement of
the resources released from the bank reserve, according to
Dominican Today.

He labeled the figures as a positive achievement, despite the
adverse international environment and current internal conditions
that led to sluggish production and consumption, the report notes.

He added that the economy is expected to grow as high as 5.5% by
yearend 2019 which would make the country the fastest growing in
Latin America, the report adds.

                     About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

The Troubled Company Reporter-Latin America reported on April 4,
2019 that the Dominican Today related that Juan Del Rosario of the
UASD Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with stable outlook (2015). Moody's credit rating for Dominican
Republic was last set at Ba3 with stable outlook (2017). Fitch's
credit rating for Dominican Republic was last reported at BB- with
stable outlook (2016).

DOMINICAN REPUBLIC: Haitian Labor Needed for Agro Business
----------------------------------------------------------
Dominican Today reports that migratory controls to stop the entry
of undocumented Haitians are a virtual pipe dream, because their
presence is essential for agro, using traditional, non-technical
methods.

For the planting, clearing and harvesting of beans, corn, sweet
potato, papayas, lemons, loading and unloading, drying and
processing of rice, unlike previous times, 100 percent are done by
Haitians in San Juan de la Maguana province, according to Dominican
Today.

They are so necessary, that unlike before, when area business
leaders paid RD$300 (US$6) per day to the Dominicans and half that
to foreigners, now the Haitians set the price and demand RD$500 per
day of 8 hours, the report discloses.

The farm owner who doesn't pay that amount faces losing the crop in
the field, or does not milk his cows, the report adds.

                     About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

The Troubled Company Reporter-Latin America reported on April 4,
2019 that the Dominican Today related that Juan Del Rosario of the
UASD Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with stable outlook (2015). Moody's credit rating for Dominican
Republic was last set at Ba3 with stable outlook (2017). Fitch's
credit rating for Dominican Republic was last reported at BB- with
stable outlook (2016).

DOMINICAN REPUBLIC: Public Debt Requires Tax Reform, Experts Warn
-----------------------------------------------------------------
Dominican Today reports that a group of economists headed by to
Armando Barrios Ross warned that in its first year the next
Administration will have to enact a comprehensive tax reform to
address public debt, otherwise it will become unmanageable.

"The pre and post electoral period will inevitably lead to the
expansion of public spending for the next year by the State," said
Barrios Ross, dean of Economics and Business of the Technological
Institute of Santo Domingo (Intec), according to Dominican Today.

"When we get closer to the elections, governments invest more to
leave a mark that they did a good job, but on the other hand to win
the elections, it's been that simple a recurring behavior in recent
years," the expert said, quoted by El Dia, the report notes.

                     About Dominican Republic

The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.

The Troubled Company Reporter-Latin America reported on April 4,
2019 that the Dominican Today related that Juan Del Rosario of the
UASD Economic Faculty cited a current economic slowdown for the
Dominican Republic and cautioned that if the trend continues,
growth would reach only 4% by 2023. Mr. Del Rosario said that if
that happens, "we'll face difficulties in meeting international
commitments."

An ongoing concern in the Dominican Republic is the inability of
participants in the electricity sector to establish financial
viability for the system.

Standard & Poor's credit rating for Dominican Republic stands at
BB- with stable outlook (2015). Moody's credit rating for Dominican
Republic was last set at Ba3 with stable outlook (2017). Fitch's
credit rating for Dominican Republic was last reported at BB- with
stable outlook (2016).



===========
M E X I C O
===========

CELADON GROUP: Completes $165 Million in New Long-Term Financing
----------------------------------------------------------------
Celadon Group, Inc. has refinanced its former revolving credit
facility and obtained $165 million in new financing.

Company Commentary

Chief Executive Officer, Paul Svindland, commented: "This financing
provides a solid platform for the next stage of our business
turnaround.  A strong capital base is critical to providing
dependable service for customers, a modern fleet for our drivers,
and a stable home for all Celadon associates.  We are grateful to
our new financing partners for investing the time to understand our
plan and the capital to support it."

Mr. Svindland continued, "As a company, we are highly energized by
the opportunities ahead.  Over the past two years, we have exited
several business units and become a focused North American
truckload transportation company.  Despite numerous headwinds,
including an older tractor fleet, we have achieved meaningful
improvements in revenue per seated tractor, customer service, and
safety.

"The linchpin to our next round of improvement involves replacing
approximately 2,000 four and five-year old tractors with new
units.

"Our fleet refresh is underway, with approximately 100 new trucks
delivered since May, another 100 scheduled for August, and
approximately 1,800 more expected to arrive over the next several
quarters.  These new trucks will dramatically lower our costs,
enhance productivity, and improve the lives and safety of our
professional drivers.  Beyond the fleet refresh, we must return to
our historical roots as a high-service, low cost provider to our
customers.  We will have all the tools, and it is now up to our
team to execute our plan."

Mr. Svindland concluded, "Outside of core operations, we expect to
complete our financial statement audit during our second or third
quarter of fiscal 2020.  Promptly thereafter, we intend to resume
filing financial reports with the SEC and to seek a listing on a
national stock exchange."

Revolving Credit Facility

Highlights of the new revolving credit facility include the
following:

   * Facility Size: $60.0 million

   * Interest Rate: LIBOR + 3.50%

   * Borrowing Base: 90% of eligible U.S and Canadian accounts
     receivable

   * Financial Covenants: fixed charge ratio, leverage ratio,
     minimum liquidity, maximum capital expenditures

Term Loans

Highlights of the term loans include the following:

   * Facility Size: $105.0 million, including capitalized fees;
     senior and junior tranches

   * Interest Rate: LIBOR + 10.25%

   * Amortization: zero first year, 5.0% second year, 7.5% third
     year

   * Financial Covenants: fixed charge ratio, leverage ratio,
     minimum liquidity, maximum capital expenditures

Equity Warrants

The junior tranche term loan provider is receiving the warrants in
the transaction.  Highlights of the warrants include the
following:

   * Warrant Shares: Warrants to purchase 16.0 million common
     shares (or convertible preferred shares) are exercisable
     immediately, and warrants to purchase approximately 5.5
     million shares become exercisable only in a change of
     control

   * Fully Diluted Percentage: Aggregate warrants equal
     approximately 33% of the Company's fully diluted equity;
     When added to shares currently owned, the holder's fully
     diluted position will be approximately 49.9%

   * Strike Price: One cent per share
   * Other: Board observer rights, registration rights,
     requirement to hold a stockholders' meeting to approve an
     increase in authorized common stock, and the Company's Board
     of Directors granted an exemption for the transaction to
     avoid triggering the Company's stockholder rights plan
   
Advisors

Celadon Group, Inc. engaged AlixPartners LLP as financial and
operating advisor and Evercore LLC as its investment bank. Scudder
Law Firm, P.C., L.L.O. served as legal counsel for the financing
and DLA Piper LLP served as special counsel.

                           About Celadon

Celadon Group, Inc. -- http://www.celadongroup.com/-- provides
long haul, regional, local, dedicated, intermodal,
temperature-protect, and expedited freight service across the
United States, Canada, and Mexico.  The Company also owns Celadon
Logistics Services, which provides freight brokerage services,
freight management, as well as supply chain management solutions,
including logistics, warehousing, and distribution.  The Company is
headquartered in Indianapolis, Indiana.

In a press release dated April 2, 2018, Celadon stated that based
on issues identified in connection with the Audit Committee
investigation and management's review, financial statements for
fiscal years ended June 30, 2014, 2015, 2016, and the quarters
ended Sept. 30 and Dec. 31, 2016, will be restated.  Celadon's new
senior management team, led by the Company's new chief financial
officer and new chief accounting officer, commenced a review of
the
Company's current and historical accounting policies and
procedures.  The internal investigation and management review have
identified errors that will require adjustments to the previously
issued 2014, 2015, 2016, and 2017 financial statements.  

The New York Stock Exchange notified the Securities and Exchange
Commission on April 18, 2018, of its intention to remove the entire

class of the common stock of Celadon Group from listing and
registration on the Exchange on April 30, 2018, pursuant to the
provisions of Rule 12d2-2(b) because, in the opinion of the
Exchange, the Common Stock is no longer suitable for continued
listing and trading on the Exchange.

PERKINS & MARIE: In Ch.11 to Sell Perkins, Foxtail Segment
----------------------------------------------------------
Perkins & Marie Callender's, LLC, the Memphis, Tennessee-based
operator of two family and casual dining chains, sought Chapter 11
bankruptcy protection on Aug. 5, 2019, disclosing plans to sell its
Perkins business and a segment of its Foxtail bakery business to
"Perkins Group LLC."

As of the Petition Date, the Debtors own 111 Perkins restaurants
located in 11 states, and franchise 255 Perkins restaurants located
in 30 states and 4 Canadian provinces.  Similarly, as of the
Petition Date, the Debtors own and/or operate 28 Marie Callender's
restaurants located in 3 states, and franchise 21 Marie Callender's
restaurants located in 2 states and Mexico.

The Debtors' net revenues for the year ended Dec. 31, 2018 were
$335 million.  As of the Petition Date, the Debtors had 5,379
employees.

Amid a decline in sales across the family-dining and casual-dining
industries due to decreased guest-traffic, the Debtors were unable
to make scheduled interest payments on the prepetition credit
facility in July and October 2018.

After reaching a deal to sell a portion of its assets to buyer
Perkins Group, Perkins & Marie Callender's sought Chapter 11
protection.

Court documents did not identify the people behind Perkins Group
(Contact details of the Perkins Group was redacted from publicly
available documents).  Perkins Group is represented by:

         Omar J. Alaniz, Esq.
         Kevin Chiu, Esq.
         BAKER BOTTS L.L.P.
         2001 Ross Avenue, Suite 900
         Dallas, Texas 75201
         Telephone: (214) 953-6500
         Facsimile: (214) 953-6503
         E-mail: omar.alaniz@bakerbotts.com
                 kevin.chiu@bakerbotts.com

                   - and -

         Justin R. Alberto, Esq.
         Sophie E. Macon, Esq.
         BAYARD, P.A.
         600 N. King Street, Suite 400
         Wilmington, DE 19801  
         Telephone: (302) 655-5000
         Facsimile: (302) 658-6395
         E-mail: jalberto@bayardlaw.com
                 smacon@bayardlaw.com

Absent higher and better offers, Perkins Group LLC has agreed to
pay $40 million in cash and assume certain liabilities to acquire:

   (i) the franchise, ownership and operation of "Perkins" branded
family dining restaurants and bakeries; and

  (ii) A portion of the Foxtail bakery business, pertaining to the
manufacturing and supplying to restaurants, supermarket in-store
bakeries, and  branded food companies premium baked goods, mixes,
and syrups, including pies, muffin batters, cookies, brownies,
pancake mixes and syrups, from the facility located at 6880
Fairfield Business Drive, Fairfield, Ohio 45014.

However, in the event the Debtors accept another bid from a third
party for the Foxtail Business, the initial purchase price will be
reduced to $35 million.

The Company has an agreement with its existing lenders to provide
debtor-in-possession ("DIP") financing to ensure an efficient
bankruptcy process.  The Company expects to have enough liquidity
to continue to operate in the normal course while completing the
sale process.

The Debtors' investment banker, Houlihan Lokey Capital, Inc., led
by managing director Jason Abt, conducted a marketing process
prepetition.  To maximize the value of the assets, the Debtors will
continue to market and solicit offers for all or any portion of
their assets postpetition, in accordance with the milestones set
forth in the DIP credit agreement:

   * Aug. 26, 2019: Hearing to consider approval of the Bidding
Procedures and entry of the Bidding Procedures Order

   * Sept. 10, 2019: Bid Deadline  

   * Sept. 11, 2019: Deadline for Debtors to notify Potential
Bidders of their status as Qualified Bidders

   * Sept. 12 2019: Auction to be held at the offices of Akin Gump
Strauss Hauer & Feld LLP (if necessary) Sale Objection Deadline

   * Sept. 13, 2019: Target date for the Debtors to file with the
Court the Notice of Auction Results

   * Sept. 19, 2019 Proposed date of the Sale Hearing to consider
approval of Sale and entry of Sale Order

   * Within 75 days of the Petition Date: Closing Date

Perkins & Marie announced in a statement that it has filed a series
of motions that, subject to Court approval, will allow it to
maintain its usual employee compensation and benefit programs, make
payments for goods and services in the normal course, and otherwise
operate its business as usual.  These motions are typical in a
Chapter 11 process and are generally granted in the first days of
the case.

The Company is continuing discussions with investors and potential
buyers regarding the Marie Callender's restaurants. Once an
agreement is finalized an additional announcement will be made.  As
part of the restructuring process, on Aug. 4, 2019, the Company
closed 10 Perkins and 19 Marie Callender's underperforming
locations.  All remaining restaurants will be open and operating as
usual and guests can expect to continue to enjoy the great food and
hospitality for which Perkins and Marie Callender's are known.

Jeff Warne, president and CEO of Perkins & Marie, stated, "Our
intention moving forward is to minimize disruptions and ensure that
the sale process is as seamless to our guests, employees, and
vendors as possible."

                  Prepetition Capital Structure

Under a Credit Agreement, dated as of June 26, 2015, as amended,
with Bank of America, N.A., as administrative agent, the Debtors'
secured prepetition obligations are as follows:

   (i) $14,541,010 in revolving loan principal obligations,
including reimbursement obligations in the amount of $8,541,010 in
respect of face amount of outstanding letters of credit;

  (ii) $94,001,173 in term loan principal obligations,

(iii) $6,304,257 in accrued and unpaid interest,

  (iv) $160,678 in respect of accrued and unpaid letters of credit
fees and

   (v) $91,821 in respect of accrued and unpaid commitment fees.

The Debtors' unsecured obligations are comprised of approximately
$8,100,000 outstanding in unpaid trade debt to their vendors and
suppliers.

This is the Company's second bankruptcy filing in eight years.
Its 2011 reorganization left it under the control of the investment
firm Wayzata Investment Partners, still its majority owner,
according to Reuters.

According to Jonathan Stempel, writing for Reuters, Warne said in
court papers that falling sales "across the family-dining and
casual-dining industries" in 2017 and 2018, "elevated" commodity
prices, rising minimum wages and "an increasingly tight labor
market" were factors leading to the bankruptcy filing.

Warne said that following the closures, the Company will own or
franchise 355 Perkins restaurants and 28 Marie Callender's
restaurants, Reuters adds.

               About Perkins & Marie Callender's

Perkins & Marie Callender's, LLC, --
http://www.perkinsrestaurants.com/and
http://www.mariecallenders.com/-- are operators and franchisors of
family-dining and casual-dining restaurants, under their two
highly-recognized brands: (i) their full-service family dining
restaurants located primarily in Minnesota, Iowa, Wisconsin, Ohio,
Pennsylvania and Florida under the name "Perkins Restaurant and
Bakery" and (ii) their mid-priced, full-service casual-dining
restaurants, specializing in the sale of pies and other bakery
items, located primarily in California and Nevada under the name
"Marie Callender's Restaurant and Bakery".  The Company was formed
in 2006 following the combination of the Perkins Restaurant &
Bakery chain with Marie Callender's.

As of the Petition Date, the Debtors own 111 Perkins restaurants
located in 11 states, and franchise 255 Perkins restaurants located
in 30 states and four Canadian provinces.  Similarly, as of the
Petition Date, the Debtors own and/or operate 28 Marie Callender's
restaurants located in three states, and franchise 21 Marie
Callender's restaurants located in two states and Mexico.  Thus,
the Debtors own, operate or franchise over 400 restaurants
throughout the United States, Canada and Mexico.  

On Aug. 5, 2019, Perkins & Marie Callender's, LLC, and 9 affiliates
sought Chapter 11 bankruptcy protection (Bankr. D. Del. Lead Case
No. 19-11743).

Perkins & Marie estimated $50 million to $100 million in assets and
$100 million to $500 million in liabilities.

The Hon. Kevin Gross oversees the jointly administered cases.

The Debtors tapped AKIN GUMP STRAUSS HAUER & FELD LLP as bankruptcy
counsel; RICHARDS, LAYTON & FINGER, P.A. as local counsel; HOULIHAN
LOKEY, INC. as investment banker; and FTI CONSULTING as financial
advisor.  KURTZMAN CARSON CONSULTANTS LLC is the claims agent.

PETROLEOS MEXICANOS: Needs $20BB a Year in Investment, BBVA Says
----------------------------------------------------------------
EFE News reports that state-owned oil giant Petroleos Mexicanos
(Pemex) needs $20 billion annually in private investment in
addition to the funds being provided by the government to increase
production, BBVA Mexico chief economist Carlos Serrano said.

"It needs around $20 billion annually and the only way to get it is
by attracting private capital because there is no budgetary room in
Mexico for the government to provide these resources," Serrano said
during the presentation of the third-quarter Situacion Mexico
report, according to EFE News.

The BBVA Mexico chief economist said the Petroleos Mexicanos
Business Plan, which was prepared by President Andres Manuel Lopez
Obrador's administration, was timely, "but it does not provide
sufficient funds to reverse the decline in petroleum production,"
the report notes.

As a result, "it would make sense to renew the farmout agreements,"
which are financial risk-sharing partnerships between the public
and private sectors that allow a company to stabilize its
production, Serrano said, EFE News says.

The economist said infusions of private capital would especially
help in "financing exploration for crude in deep waters," an area
in which "Pemex has no experience," the report discloses.

EFE News relates the BBVA Mexico chief economist said the federal
government lacked the resources to execute Pemex's plans and would
likely use the funds for infrastructure projects and poverty
reduction programs if it did have them.

EFE News notes that Serrano said that while reducing the taxes paid
by Pemex was a good move, it was likely that Moody's would cut the
oil company's credit rating to below investment grade, a move
already made by another credit rating agency, Fitch.

Pemex is carrying total debt of more than $104 billion and has
another $64 billion in pension obligations, accounting for 20
percent of Mexico's debt, EFE News relays.

Lopez Obrador, who took office on Dec. 1, 2018, has vowed to fix
Pemex's problems and make Mexico energy self-sufficient, the report
says.

On July 16, the administration presented the Petroleos Mexicanos
Business Plan, which included an 11 percent tax cut for the company
and a capital infusion to bolster the balance sheet, the report
recalls.

The business plan also calls for building a new refinery, but
analysts contend that Pemex needs to expand exploration in
deepwater areas to boost oil production, which has fallen to 1.64
million barrels per day (bpd), the report adds.

Petroleos Mexicanos engages in the exploration, exploitation,
refining, transportation, storage, distribution, and sale of crude
oil and natural gas in Mexico.  The Company was founded in 1938 and
is based in Mexico City, Mexico.

As reported in the Troubled Company Reporter-Latin America on
June 13, 2019, Petroleos Mexicanos filed with the U.S. Securities
and Exchange Commission its annual report on Form 20-F, disclosing
a net loss of MXN180,419,837,000 on MXN1,681,119,150,000 of total
sales for the year ended Dec. 31, 2018, compared to a net loss of
MXN280,850,619,000 on MXN1,397,029,719,000 of total sales for the
year ended in 2017.



=====================
P U E R T O   R I C O
=====================

PUERTO RICO: New Governor Faces Legal Challenge
-----------------------------------------------
Luis Valentin Ortiz at Reuters reports that Puerto Rico's newly
installed governor and its Senate president faced off in written
arguments submitted to the island's supreme court, which will
decide who is in charge of the bankrupt government.

Both sides agreed that Puerto Rico is facing its biggest
constitutional crisis after days of protests forced Governor
Ricardo Rossello to leave office, according to Reuters.

Pedro Pierluisi, Rossello's handpicked successor, is fighting a
constitutional challenge filed by Senate President Thomas Rivera
Schatz over Pierluisi's appointment as secretary of state, a
position next in line to the governor, the report ntoes.

Reuters relates that Pierluisi was sworn in as governor after the
Puerto Rico House confirmed him as secretary of state, without
confirmation from the Senate.  Schatz filed a lawsuit claiming his
chamber's advice and consent duty under the island's constitution
was usurped and Pierluisi should be removed from office, the report
relays.

It was unclear if the Supreme Court would schedule oral arguments
in the case, although a ruling was widely expected to be issued
soon given the political turmoil, the report notes.

Pierluisi's legal brief warned that if the high court decides in
favor of the Senate, "it would have a disastrous impact on Puerto
Rico's governance," and jeopardize the island's stability, Reuters
discloses.

The governor's lawyers argued that Pierluisi was legally secretary
of state even without confirmation because the legislature was not
in session, the report relays.

                       Government Functioning

Under normal circumstances, an appointment made during a
legislative recess would be subject to a legislative vote once
lawmakers reconvene for their regular session, Reuters notes.
However, the fact that Pierluisi ceased being secretary of state
once he was sworn in as governor makes that requirement moot, the
brief stated, he added.  

The Senate president's brief argued that both legislative chambers
need to confirm a secretary of state nominee under Puerto Rico's
constitution, the report relays.

Puerto Rico's Justice Secretary Wanda Vazquez, another Rossello
appointee, would be next in line for governor should the court rule
against Pierluisi, the report notes.

At a press conference, Pierluisi assured the public that "the
government continues to function," the report notes.

His assumption of office capped more than a week of political chaos
after Rossello said he would resign over offensive chat messages
that drew around a third of the island's 3.2 million people to the
streets in protest as well as federal corruption charges against
two former members of his administration, the report says.

Pierluisi has been controversial mainly because he formerly gave
legal advice to the island's unpopular, federally created fiscal
oversight board, the report adds.

                        About Puerto Rico

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

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

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

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

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

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

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

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

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

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

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

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

                    Bondholders' Attorneys

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

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

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

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

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

                          Committees

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


                           *********


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.

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contact Peter A. Chapman at 215-945-7000.
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