TCRLA_Public/190813.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

          Tuesday, August 13, 2019, Vol. 20, No. 161

                           Headlines



B O L I V I A

BANCO FASSIL: Fitch Affirms B+ LT IDRs; Alters Outlook to Negative


B R A Z I L

BRAZIL: Government Investments in Sao Paulo State Have Dropped
PETROLEO BRASILEIRO: To Invest US$54BB in Rio Over the Next 5 Yrs.


C O S T A   R I C A

BANCO DAVIVIENDA: Fitch Affirms BB- LT FC IDR, Outlook Negative


M E X I C O

MEXICO: Low-Income Towns Resurging Economically


P U E R T O   R I C O

EMPRESAS CARRION: Oct. 2 Hearing on Disclosure Statement
PUERTO RICO: Bond Insurer MBIA Sues Banks Over Defaulted Bonds
QUESOS DEL PAIS: Oct. 1 Plan Confirmation Hearing
STONEMOR PARTNERS: Incurs $34.4 Million Net Loss in 2nd Quarter
STONEMOR PARTNERS: Withholds Unit Awards to Satisfy Obligations



V E N E Z U E L A

CITGO PETROLEUM: Venezuela Sanctions Order Leaves Future in Doubt

                           - - - - -


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B O L I V I A
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BANCO FASSIL: Fitch Affirms B+ LT IDRs; Alters Outlook to Negative
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Fitch Ratings has affirmed Banco Fassil S.A Long-Term Foreign and
Local Currency Issuer Default Ratings at 'B+. The Rating Outlook
was revised to Negative from Stable.

The Outlook revision to Negative from Stable follows the recent
revision of Bolivia's Long-Term IDR's Outlook to Negative from
Stable on June 20, 2019. Fitch considers the bank's performance to
be highly influenced by the operating environment given the impact
of the government's macroeconomic and regulatory policies, as well
as its overall involvement in the financial system, on its
performance. Consequently, a potential sovereign downgrade would
negatively affect the bank's current rating level.

Key Rating Drivers

VR and IDRS

The bank's Viability Rating (VR), or standalone creditworthiness,
drives its IDRs. Fassil's high sensitivity to the operating
environment and financial regulation, along with its company
profile and weak profitability highly influence its VR. The VR also
considers the bank's sound asset quality, pressured capitalization
and adequate funding profile.

Fassil's company profile reflects the bank's growth strategy, which
is oriented toward maintaining its position as the sixth largest
bank in the system by assets and loans. This objective has been
maintained amidst a heavily regulated and competitive financial
sector, positioning the entity as a regional leader in the region
of Santa Cruz.

Fitch considers that Fassil's profitability remains as the weakest
link in the bank's financial profile, but the agency expects its
falling trend will stabilize at current levels. Compulsory loan
quotas and caps and floors on interest rates for productive and
social housing portfolios have pressured the system's interest
margins and profitability. As of March 2019, the bank's operating
profit was 0.44% of risk weighted assets (RWA), which still
compares lower than Bolivian Universal Banks and international
peers. However, Fitch deems it likely that pressures on
profitability from falling net interest margins (NIMs),
constitution of loan loss allowances and lower equity accounted
income from deconsolidation of Santa Cruz Securities should ease
going forward.

Fassil's capital position has been affected by low retained
earnings and sustained growth. Despite lower-than-previous-years
loan growth in the last two years, Fitch Core Capital (FCC) to RWA
felt to 9.21% as of March 2019, comparing slightly below the system
(9.84%). The bank has stated full capitalization of net income for
the foreseeable future.

Banco Fassil's asset quality is considered by Fitch as its main
financial strength (NPLs as of March 2019: 0.88%). Convergence of
asset quality to that of its local peers (Average NPLs for
Universal Banks as of March 2019: 1.87%) has been slower than
expected, as Fassil maintained NPLs below local and international
peers. Fitch denotes the bank has conservative underwriting
standards with respect to other peers' practices as evidenced by
low restructuring, high proportion of secured lending and high loan
allowances. Fitch deems NPLs will likely stabilize below market
average at around 1% should the bank maintain current practices.
High concentration of the bank's loan portfolio among top 20
creditors (27% of gross loans and 3.2x of FCC as of March 2019)
remains a potential risk.

Fassil's funding structure is commensurate with its rating level.
Total loans are funded through customer deposits that have shown
stability (loans to deposits as of March 2019: 96.99%). However,
funding is concentrated on term deposits from institutional
clients, while its top 20 depositors represent a high 73% of total
deposits. The bank has increased its usage of subordinated bonds in
2019 to meet regulatory capital needs. Fassil has an adequate
liquidity position; however, it has fewer liquid assets to cover
short-term obligations than its local peers.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating (SR) and Support Floor (SRF) are rated '5' and
'NF', respectively. In Fitch's view, sovereign support cannot be
relied upon for Fassil, as it is not considered a systemically
important bank.

Rating Sensitivities

VR and IDRS

Upside potential for the ratings is limited given the sovereign's
rating and Negative Outlook.

Negative rating actions would follow from a downgrade in the
sovereign's rating. Additionally, sustained negative or
near-to-zero results as well as additional pressures on FCC to RWA
metrics to below 7% could also underpin a downgrade.

SUPPORT RATING AND SUPPORT RATING FLOOR

Upside potential for Fassil's SR and SRF is limited by its company
profile and could only occur over time. Substantial growth in
market share in terms of retail deposits and systemic importance
could cause an upward revision.



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B R A Z I L
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BRAZIL: Government Investments in Sao Paulo State Have Dropped
--------------------------------------------------------------
Rio Times Online reports that investments by the Sao Paulo
government decreased 26 percent in the first six months of Joao
Doria's administration and hit their lowest since 2012.

Despite the campaign's pledge to intensify the privatization of the
transportation sector to invest further in education, health, and
safety, 84 percent of the R$2.72 billion (US$ 688 million) invested
by the governor between January and June was used for road, rail
and subway works, according to Rio Times Online.

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.

PETROLEO BRASILEIRO: To Invest US$54BB in Rio Over the Next 5 Yrs.
------------------------------------------------------------------
Rio Times Online reports that Petroleo Brasileiro SA (Petrobras)
plans to invest US$54 (R$212) billion in projects in the state of
Rio de Janeiro over the next five years.  The news was provided by
the company's president, Roberto Castello Branco, during lunch at
the Rio de Janeiro Trade Association, according to Rio Times
Online.

According to Castello Branco, Rio de Janeiro will benefit from the
revenue generated from oil production, the report notes.  Last
year, the company paid approximately R$17 billion in taxes, and
this trend is on the rise, with taxes from Petrobras' activities,
as well as from other companies investing in pre-salt, the report
recalls.

As reported in the Troubled Company Reporter-Latin America on
Feb. 25, 2019,  S&P Global Ratings raised the stand-alone credit
profile (SACP) on Petrobras to 'bb' from 'bb-'. S&P also affirmed
its global scale ratings on the company at 'BB-' and its Brazilian
national scale rating at 'brAAA'.



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C O S T A   R I C A
===================

BANCO DAVIVIENDA: Fitch Affirms BB- LT FC IDR, Outlook Negative
---------------------------------------------------------------
Fitch Ratings has affirmed Banco Davivienda (Costa Rica), S.A.'s
Long-Term Foreign Currency Issuer Default Rating at 'BB-' and
Long-Term Local Currency IDR at 'BB', as well as Short-Term Foreign
and Local Currency IDRs at 'B'. The Rating Outlooks on the
Long-Term IDRs are Negative. Fitch also assigned a rating of
'F1+(cri)' to a new Programa Revolutivo de Papel Comercial 2019.

The Negative Outlook indicates that Davivienda CR's IDRs could be
downgraded in the event of a Costa Rican sovereign rating
downgrade.

KEY RATING DRIVERS

IDRs, NATIONAL RATINGS AND SENIOR DEBT

Davivienda CR's IDRs, national ratings and senior debt are driven
by potential support from its parent Banco Davivienda, S.A., if
required. Davivienda is the third largest bank in Colombia with a
presence in Central America and Miami, rated 'BBB'/Outlook
Negative.

The IDRs reflects the sound shareholder's commitment to its
subsidiary, which in Fitch's view is sufficient for Davivienda CR
to be rated above the sovereign rating. The bank's Foreign Currency
IDR is constrained by Costa Rica's 'BB-' Country Ceiling, which
according to Fitch's criteria, captures transfer and convertibility
risks. In addition, the Local Currency IDR received the maximum
uplift of two notches above the sovereign rating (B+/Outlook
Negative). However, this caps the subsidiary's IDRs to a lower
rating than if based solely on Davivienda's ability and propensity
to provide support.

Fitch's assessment also considers with high importance that
Davivienda's capacity and willingness to support its subsidiary
would be manageable, as Davivienda CR represents around 8.5% of
Davivienda's assets. The agency also considers the huge
reputational risk that Davivienda CR's default could constitute to
its parent, which would damage its franchise. Fitch views the Costa
Rican subsidiary as a key part of Davivienda's expansion and
diversification strategy in Central America.

Davivienda CR's national ratings are at the highest point of this
scale given the relative strength of the shareholder in relation to
other issuers rated in Costa Rica. The bank's local senior debt
rating is also equivalent to the institution's national rating as
the debt is senior unsecured.

VR

Davivienda CR's Viability Rating (VR) is highly influenced by the
operating environment and its company profile. The entity is the
sixth largest bank in Costa Rica, with a market share of 6.9% in
terms of assets, offering different products and services for the
middle and high income segments in the local market. In addition,
the bank's VR considers its reasonable risk appetite, good asset
quality, modest but improving profitability, tight capitalization
levels and adequate funding structure.

Fitch views Davivienda CR's asset quality as good. However, in
light of the Costa Rican market's lower dynamism, the
non-performing loans (NPL) ratio (+90 days overdue) increased in
2018 and 1Q19 to 1.4% and 1.8%, respectively, after averaging 1.1%
from 2015 to 2017. Nevertheless, this metric contrasts positively
with the local market (2015-2018: bank: 1.2%; system: 2.0%) and is
in line with international peers (similarly rated emerging market
banks), reflecting the tools, controls, models and underwriting
policies of the entity. Despite the prevailing environment, the
agency expects delinquency metrics to remain lower than the system.


The bank's profitability has been modest. Although profitability
has improved in recent years, it still contrasts unfavourably with
local and international peers. The operating profit to
risk-weighted assets (RWA) ratio decreased to 0.5% in 2017 from
0.9% in 2015. However, as a result of the institution's commercial
and operational strategies, the deteriorating trend was reversed
and this metric improved to 0.9% in 2018 and 1.1% at 1Q19. The net
interest margin exhibited the same evolution. Fitch expects this
positive performance to continue over the medium term.

In Fitch's opinion, Davivienda CR's capitalization is tight
compared with local and international peers. As of 1Q19, its Fitch
Core Capital (FCC) to RWA metric was 10.2%, similar to the average
of 10.3% over the past four years. The bank's total capital ratio
has been oscillating around 11.2%, above the regulatory minimum of
10%. In an adverse economic event, the agency expects Davivienda's
ordinary support to continue if necessary, in order to maintain
regulatory capital ratios that exceed the minimum required.

Davivienda CR's financial flexibility is reasonable due to its
diversified funding options and market access, with 69.6% of its
financing coming from customer deposits as of 1Q19. From 2015 to
2018, deposit growth was lower than that of loans, resulting in an
increase of the loans to deposits ratio to 125.3% in 2018 from
116.8% in 2015. This trend reversed in 1Q19, as this indicator
declined to 113.7%. Fitch views the bank's liquidity position as
adequate and expects it to continue strengthening.

SUPPORT RATING (SR)

According to Fitch's criteria, Davivienda CR's 'BB-' Foreign
Currency IDR maps to a SR of '3'. The bank's SR reflects
Davivienda's moderate ability and propensity to give support to its
subsidiary, if necessary. Costa Rica's Country Ceiling mostly
influences the entity's SR.

NEW NATIONAL DEBT

The new Program has the same national short-term rating as the
bank, since, according to Fitch, it has the same risk, as there is
no guarantee and it is in the same hierarchy of conditions as its
other unsecured debts.

RATING SENSITIVITIES

IDRs AND SUPPORT RATING

The Rating Outlook for Davivienda CR's Long-term IDRs is Negative,
which indicates that a downgrade of Costa Rica's Sovereign Rating
and Country Ceiling could trigger a downgrade of Davivienda CR's
IDRs. In addition, the bank's IDRs and SR could be affected if
Fitch's perception of the shareholder's ability or propensity to
support its subsidiary changes.

Conversely, a revision of the Outlook on the sovereign's IDR to
Stable would likely prompt a similar action on the Outlook of the
bank's IDRs.

VR

Davivienda CR's VR could be downgraded in a scenario of material
and consistent deterioration of the local economic environment that
would lead to changes in sovereign ratings. The VR could also be
pressured by a deterioration of the entity's profitability and
asset quality ratios that results in a sustained decline in its
Fitch Core Capital ratio below 9%. There is limited upside
potential on the VR as the rating is at the sovereign level and the
Outlook on Costa Rica is Negative.

NATIONAL RATINGS AND SENIOR DEBT

The ratings are at the highest level of the national rating scale
and therefore have no upside potential. However, the bank's
national ratings could be downgraded if Fitch's view of the
parent's ability and/or willingness to support its subsidiary
changes.

Changes in Davivienda CR's senior unsecured debt would mirror any
potential downgrade on the bank's national scale ratings.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.

Fitch has affirmed the following ratings:

  -- Long-Term Foreign Currency IDR at 'BB-'; Outlook Negative;

  -- Short-Term Foreign Currency IDR at 'B';

  -- Long-Term Local Currency IDR at 'BB'; Outlook Negative;

  -- Short-Term Local Currency IDR at 'B';

  -- Support Rating at '3';

  -- Viability Rating at 'b+';

  -- National Long-Term Rating at 'AAA(cri)'; Outlook Stable;

  -- National Short-Term Rating at 'F1+(cri)';

  -- Long Term National Scale Rating of Programa E de Emisiones de
Bonos Estandarizados en Colones y Dolares at 'AAA(cri)';

  -- Long Term National Scale Rating of Programa F de Emisiones de
Bonos Estandarizados en Colones y Dolares at 'AAA(cri)'.

Fitch has assigned a 'F1+(cri)' National Short-Term Rating to new
Programa Revolutivo de Papel Comercial 2019.



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M E X I C O
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MEXICO: Low-Income Towns Resurging Economically
-----------------------------------------------
EFE News reports that on the Isthmus of Tehuantepec, in southern
Mexico, it is impossible to guess by simply looking how many wind
turbines have been erected over thousands of hectares.  But thanks
to the wind energy business, in the surrounding area the low-income
communities have been resurging economically in recent years,
according to EFE News.

As a result of the social projects launched by various energy
companies, municipalities like Santo Domingo Ingenio, which live
surrounded by these majestic towers with their huge propellers that
generate clean energy, are providing local residents with access to
better medical facilities, electricity and better schools, the
report notes.



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P U E R T O   R I C O
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EMPRESAS CARRION: Oct. 2 Hearing on Disclosure Statement
--------------------------------------------------------
A hearing on approval of disclosure statement explaining the
Chapter 11 Plan of Empresas Carrion Allende, Inc., is scheduled for
October 2, 2019, at 9:00 AM, to consider and rule upon the adequacy
of the disclosure statement.  Objections to the form and content of
the disclosure statement must filed and served not less than
fourteen (14) days prior to the hearing.

             About Empresas Carrion Allende

Empresas Carrion Allende, Inc., operates a grocery store in
Arecibo, Puerto, Rico.

Empresas Carrion Allende filed its petition for relief under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 18-07111)
on Dec. 6, 2018.  In the petition was signed by Sandra I. Carrion
Montalvo, president, the Debtor estimated $1 million to $10 million
in both assets and liabilities.  The case is assigned to the Hon.
Mildred Caban Flores.  Francisco J. Ramos Gonzalez, Esq., at
Francisco J. Ramos & Asociados CSP, led by Francisco J. Ramos
Gonzalez, is the Debtor's counsel.

PUERTO RICO: Bond Insurer MBIA Sues Banks Over Defaulted Bonds
--------------------------------------------------------------
Karen Pierog at Reuters reports that bond insurance company MBIA
Inc sued several financial institutions over their role in
underwriting billions of dollars of Puerto Rico bonds that
eventually went into default.

The lawsuit filed in superior court in San Juan claimed the banks
"inflicted a financial tragedy" on the now-bankrupt U.S.
commonwealth by urging it to issue "unsustainable" debt, according
to Reuters.

"That debt bankrupted the commonwealth and its agencies while the
banks enriched themselves through massive fees," the lawsuit
stated, the report notes.

Puerto Rico filed for bankruptcy in 2017 to restructure about $120
billion of debt and pension obligations.

According to the lawsuit, major banks underwrote more than $66
billion of bonds issued between 2001 and 2014 by Puerto Rico and
its agencies, earning hundreds of millions of dollars in fees. The
defendants are: UBS Financial Services Inc, UBS Securities LLC,
Citigroup Global Markets Inc, Goldman Sachs & Co LLC, J.P. Morgan
Securities LLC, Morgan Stanley & Co LLC; Merrill Lynch, Pierce,
Fenner & Smith Inc; RBC Capital Markets LLC, and Santander
Securities LLC, the report discloses.

MBIA argued that these underwriters failed to do their due
diligence on Puerto Rico bonds, which led to disclosures that were
"materially false or misleading" and upon which its unit, National
Public Finance Guarantee Corporation, relied upon when it decided
to insure the debt, the report relays.

Reuters discloses that national insured more than $11 billion of
Puerto Rico debt. Subsequent defaults led the insurer to make as of
July 1 over $720 million in claims payments that the lawsuit seeks
to recover in damages from the banks.

The same banks were sued by Puerto Rico's federally created fiscal
oversight board in May for allegedly aiding and abetting the
island's "clearly insolvent" government to issue debt, 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.

QUESOS DEL PAIS: Oct. 1 Plan Confirmation Hearing
-------------------------------------------------
The Disclosure Statement explaining the small business Chapter 11
Plan of Quesos del Pais La Esperanza, Inc., is conditionally
approved.

A hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan and of such
objections as may be made to either will be held on October 1, 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.

An objection to the final approval of the Disclosure Statement
and/or the confirmation of the Plan must be filed and served on/or
before ten (10) days prior to the date of the hearing on
confirmation of the Plan.

Class 4 General Unsecured are impaired. Each Holder of an Allowed
Class 4 General Unsecured Claim shall receive on or as soon as
reasonably practicable after the Effective Date, and from time to
time thereafter in accordance with Section VI.B of the Plan, its
Pro Rata Share of the Debtor's Available Cash until each Holder
receives approximately up to one four percent (4.%) of its Allowed
Claim and, if applicable, post-petition interest in accordance with
Section VI.I of the Plan but subject to the limitations in Section
VI.D of the Plan.

Class 3 General Unsecured Claims with recourse are impaired. Each
Holder of an Allowed Class 3 will be paid as due under the contract
or applicable non bankruptcy law.

Class 5 Common Interests in Debtor in Possession are impaired. Each
Holder of Allowed Class 5 Common Interests (including, if Allowed,
shall neither receive nor retain any Property of the Estate of The
Quesos del Pais La Esperanza Inc.

The Plan provides for the distribution of (i) all Cash held by or
for the benefit of each Debtor on the Effective Date) plus (ii) all
Cash realized from the current operation of Debtor Business and
collection of accounts receivables, causes of actions against third
parties, or other disposition of Property of the Estate to the
Holders of Allowed Claims and Allowed Interests.

A full-text copy of the Disclosure Statement dated August 1, 2019,
is available at https://tinyurl.com/yxefd8hm from PacerMonitor.com
at no charge.

Attorney for the Debtor:

     Garcia- Arregui & Fullana PSC
     252 Ponce de Leon Ave.
     Suite 1101
     San Juan, PR 00918
     Tel. 787-766-2530
     Fax-787-756-7800
     Email: ifullana@gaflegal.com

              About Quesos Del Pais La Esperanza

Quesos Del Pais La Esperanza Inc. filed a Chapter 11 bankruptcy
petition (Bankr. D.P.R. Case No. 18-06529) on Nov. 6, 2018,
disclosing under $1 million in assets and liabilities.  The Debtor
hired Garcia-Arregui & Fullana, as attorney.

STONEMOR PARTNERS: Incurs $34.4 Million Net Loss in 2nd Quarter
---------------------------------------------------------------
StoneMor Partners L.P. filed with the Securities and Exchange
Commission on Aug. 9, 2019, its quarterly report on Form 10-Q
reporting a net loss of $34.39 million on $78.49 million of total
revenues for the three months ended June 30, 2019, compared to a
net loss of $17.01 million on $81.57 million of total revenues for
the three months ended June 30, 2018.

For the six months ended June 30, 2019, the Company reported a net
loss of $56.93 million on $149.96 million of total revenues
compared to a net loss of $34.94 million on $159.51 million of
total revenues for the same period last year.

As of June 30, 2019, the Company had $1.76 billion in total assets,
$1.76 billion in total liabilities, $57.50 million in total
redeemable convertible preferred units, and a total partners'
deficit of $60.94 million.

Cemetery segment operating profit for the second quarter was $4.8
million compared to $4.1 million for the prior year period.

Six-month segment operating profit was $7.6 million compared to
$6.3 million in the prior year period.

Funeral segment operating profit was $1.8 million for the second
quarter compared to $2.5 million in the prior year period.
Six-month segment operating profit was $3.3 million compared to
$4.5 million in the prior year period.

Corporate overhead expense was $13.1 million for the second quarter
compared to $15.2 million in the prior year period.

Cash used in operating activities for the first six months of 2019
was $31.6 million compared to cash provided by operations in the
prior year period of $15.4 million.  The reduction in cash from
operating activities was primarily due to a decline in sales
production, non-recurring working capital initiatives in the prior
year period, a decline in accounts payable and accrued expenses,
increased debt service costs and increased costs associated with
consulting and professional fees arising from the potential
C-Corporation conversion, debt refinancing, various employee
severance obligations and other ongoing initiatives.

Merchandise trust value at June 30, 2019 was $519.4 million
compared to $488.2 million at Dec. 31, 2018.

Deferred revenue at June 30, 2019 was $944.1 million compared to
$914.3 million at Dec. 31, 2018.

As of June 30, 2019, the Partnership had $41.9 million of
unrestricted cash and cash equivalents, $20.1 million of restricted
cash related to the cash collateralization of letters of credit
with proceeds from the recapitalization, and $358.2 million of
total debt.

On June 27, 2019, the Partnership completed a $447.5 million
recapitalization transaction, consisting of a private placement of
$62.5 million of convertible preferred securities and a concurrent
private placement consisting of $385.0 million of Senior Secured
Notes due 2024.

Joe Redling, StoneMor's president and chief executive officer said,
"Our second quarter results reflect continued pressure on pre-need
production as our sales force adjusts to initiatives we launched in
the first quarter of 2019.  We believe we have identified the
primary drivers of our sales productivity and pre-need sales
issues.  While our initiatives are in the early stages, we remain
focused on improving our sales process and training, and optimizing
staffing levels across our asset base.

"We are also beginning to see early signs of improvement in sales
production with a strong sequential rebound of net interment rights
sold and pre-need contracts written from the first quarter of 2019
to the current quarter.  At the same time, we saw a reduction in
corporate overhead net of non-recurring expenses on a
year-over-year basis.  As we have previously disclosed, we've
targeted a minimum of $30 million of cost reductions across
corporate, G&A, sales and field operations.  After a careful review
of labor efficiencies across our properties, at the beginning of
July 2019, we implemented a reduction of approximately 6% of our
field workforce as part of these cost reduction initiatives.

"The June 27, 2019 announcement of the closing of our $447.5
million recapitalization not only represented a major step in
providing us with a meaningful liquidity improvement to execute our
turnaround strategy, but also demonstrated both the strong
underlying value of our asset base as well as investor confidence
in our management team's ability to execute our turnaround plan,
including the next phase of our performance improvement plans."

Garry Herdler, senior vice president and chief financial officer
added, "In mid-April 2019, we outlined our turnaround strategy
focused on four key goals: cash flow and liquidity, capital
structure, balance sheet/portfolio review, and performance
improvement through cost reductions and revenue enhancement. Our
results reflect the efforts of our initial 100-day plan, which
included significant progress on improving liquidity and capital
structure.  We believe we have identified additional expense
reduction opportunities in the next phase of this operational
turnaround strategy.

"We continue to work towards process improvements to better align
our cost structure with our revenues and performance improvement
efforts.  These efforts and the contemplated C-Corporation
conversion are important steps to revitalizing our business and
positioning us for future success.  Since joining the team and
gaining a better understanding of StoneMor's business, I am more
confident in the execution plans we are developing for the next
phase of our turnaround plan to address our near-in challenges and
opportunities, with the commitment to set a clear strategic roadmap
for the future."

                           Updated Unit Count

As of June 30, 2019, the Partnership had 39.53 million units
outstanding.  As part of the debt and equity recapitalization, the
Partnership issued 52.08 million of Series A Preferred units which
are convertible to common units on a 1:1 basis (subject to
anti-dilution adjustments) no later than upon the completion of the
previously announced C-Corporation conversion.  The outstanding
unit count at June 30, 2019, pro forma for the recapitalization
transactions, was 91.62 million units.

In connection with the C-Corporation conversion, and as previously
disclosed, StoneMor anticipates issuing an additional 2.95 million
common units.  Pro forma outstanding unit count as of June 30,
2019, after giving effect to the matters noted above and the
C-Corporation conversion is expected to be approximately 94.57
million units.

A full-text copy of the Form 10-Q is available for free at:

                       https://is.gd/pQhXZD

                      About StoneMor Partners

StoneMor Partners L.P., headquartered in Trevose, Pennsylvania --
http://www.stonemor.com-- is an owner and operator of cemeteries
and funeral homes in the United States, with 321 cemeteries and 90
funeral homes in 27 states and Puerto Rico.  StoneMor's cemetery
products and services, which are sold on both a pre-need (before
death) and at-need (at death) basis, include: burial lots, lawn and
mausoleum crypts, burial vaults, caskets, memorials, and all
services which provide for the installation of this merchandise.

StoneMor reported a net loss of $72.69 million for the year ended
Dec. 31, 2018, compared to a net loss of $75.15 million for the
year ended Dec. 31, 2017.  As of March 31, 2019, the Company had
$1.72 billion in total assets, $1.75 billion in total liabilities,
and a total partners' deficit of $28.83 million.

                          *    *    *

As reported by the TCR on Feb. 13, 2019, Moody's Investors Service
downgraded StoneMor Partners L.P.'s Corporate Family rating to Caa2
from Caa1 and Probability of Default rating to Caa3-PD from
Caa1-PD.  The Caa2 CFR reflects Moody's concern that if pre-need
cemetery selling and liquidity pressures do not abate while the
senior secured credit facility is being refinanced, a distressed
exchange or other default event could become more likely.

As reported by the TCR on July 3, 2019, S&P Global Ratings affirmed
its 'CCC+' issuer credit rating on StoneMor Partners L.P. The
outlook remains negative.  S&P said, "The rating affirmation
reflects our view that despite the removal of near term maturities
and sufficient liquidity over the next twelve months, we continue
to view StoneMor's capital structure as unsustainable in the long
term given our projection for persistent free cash flow deficits.

STONEMOR PARTNERS: Withholds Unit Awards to Satisfy Obligations
---------------------------------------------------------------
The Compensation and Nominating and Governance Committee of the
Board of Directors of StoneMor GP LLC, the general partner of
StoneMor Partners L.P., has approved the withholding of an
aggregate of 376,351 common units otherwise issuable in connection
with the accelerated vesting of certain phantom and restricted unit
awards previously granted to certain employees of StoneMor GP
pursuant to the Partnership's Amended and Restated 2019 Long-Term
Incentive Plan in satisfaction of such employees' tax withholding
obligations arising from such accelerated vesting in the aggregate
amount of $677,431.  The number of units withheld was based on the
fair market value of the units on the date of the Committee's
action as defined in the LTIP, and included the withholding of the
number of units set forth opposite the names of the officers listed
below in satisfaction of the tax withholding obligation set forth:

                                             Units       Tax
  Name/Title                                Withheld  Obligations
  ----------                                --------  -----------
Joseph M Redling                            132,669     $238,804
President and Chief
Executive Officer

Garry P. Herdler                             69,979     $125,962
Senior Vice President and
Chief Financial Officer

Austin K. So                                 39,292     $70,725
General Counsel, Chief Legal
Officer and Secretary


                      About StoneMor Partners

StoneMor Partners L.P., headquartered in Trevose, Pennsylvania --
http://www.stonemor.com-- is an owner and operator of cemeteries
and funeral homes in the United States, with 321 cemeteries and 90
funeral homes in 27 states and Puerto Rico.  StoneMor's cemetery
products and services, which are sold on both a pre-need (before
death) and at-need (at death) basis, include: burial lots, lawn and
mausoleum crypts, burial vaults, caskets, memorials, and all
services which provide for the installation of this merchandise.

StoneMor reported a net loss of $72.69 million for the year ended
Dec. 31, 2018, compared to a net loss of $75.15 million for the
year ended Dec. 31, 2017.  As of March 31, 2019, the Company had
$1.72 billion in total assets, $1.75 billion in total liabilities,
and a total partners' deficit of $28.83 million.

                          *    *    *

As reported by the TCR on Feb. 13, 2019, Moody's Investors Service
downgraded StoneMor Partners L.P.'s Corporate Family rating to Caa2
from Caa1 and Probability of Default rating to Caa3-PD from
Caa1-PD.  The Caa2 CFR reflects Moody's concern that if pre-need
cemetery selling and liquidity pressures do not abate while the
senior secured credit facility is being refinanced, a distressed
exchange or other default event could become more likely.

As reported by the TCR on July 3, 2019, S&P Global Ratings affirmed
its 'CCC+' issuer credit rating on StoneMor Partners L.P. The
outlook remains negative.  S&P said, "The rating affirmation
reflects our view that despite the removal of near term maturities
and sufficient liquidity over the next twelve months, we continue
to view StoneMor's capital structure as unsustainable in the long
term given our projection for persistent free cash flow deficits.



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

CITGO PETROLEUM: Venezuela Sanctions Order Leaves Future in Doubt
-----------------------------------------------------------------
The Financial Times reports that Venezuelan opposition leader Juan
Guaido has proclaimed that sweeping new US sanctions targeting
President Nicolas Maduro's regime will protect Venezuela-owned,
US-based refiner Citgo from seizure by creditors.  But he may have
spoken too soon.

The Financial Times says US president Donald Trump announced a
near-total economic embargo of Venezuela, the first such step
against a western hemisphere country in more than 30 years.  Mr.
Guaido, the National Assembly president who is recognised by the US
and more than 50 other countries as Venezuela's interim president,
was quick to home in on what he said was a key victory in the
executive order, the report relays.

"Given this measure, Citgo and all its assets are protected," he
tweeted, notes the report.  "Anyone who wants to benefit from the
crisis will be driven away."

The Financial Times relays that emboldened by the US order, Mr.
Guaido's parallel government has hinted it might skip a $913
million payment due in late October to holders of a bond maturing
in 2020 that was issued by state-owned oil company Petroleos de
Venezuela SA, which is backed by a majority stake in Citgo.

"Our preliminary view is that the collateral will remain beyond the
reach of the PDVSA 2020 bondholders, who remain in a very weak
position, and the Venezuelan side should exploit this opportunity,"
said an opposition lawmaker in Caracas with knowledge of the
situation, the report relays.

Venezuela has long been fearful of missing a payment on the
debt--the country's only bond not yet in default--since it could
mean losing control of the jewel in the crown of PDVSA's foreign
assets, the report discloses.  To avoid this outcome, the National
Assembly, led by Mr. Guaido, made good on a $71 million interest
payment in April, the report relays.

While Alejandro Grisanti, a director on the ad hoc PDVSA board
appointed by Mr. Guaido, sees the executive order as a "clear
signal from the US administration that it's seeking to protect
Venezuelan assets in the United States," he told the FT: "That
doesn't mean there's no risk, and it certainly doesn't mean that
Venezuelans can do whatever they want with the debt burden they've
inherited from the Maduro and Chavez governments," the report
relates.

For Mr. Guaido, the failure to hold on to Citgo could be
devastating, both for his teetering interim government, whose
efforts to oust Mr. Maduro have stalled, and for the country, which
is mired in a deep humanitarian crisis exacerbated by tough
sanctions, the report relays.

However, others have disputed Mr. Guaido's interpretation of the
order, putting Citgo's future back in doubt, the report notes.

Law firm Cleary Gottlieb, which represents creditors holding
roughly $9 billion worth of Venezuelan debt, issued a statement
saying it does not "see a basis" for Mr. Guaido's conclusion about
Citgo, the report notes.

Based on existing legal guidance from the US Treasury's Office of
Foreign Assets Control, "it appears to us that the holders of the
2020 Bonds are still authorized to execute on their collateral,"
the firm wrote, the report relays.  It also pointed to a previous
Treasury Department license that exempted PDVSA 2020 bondholders
from sanctions, meaning they could still go after Citgo if
Venezuela missed a payment, the report discloses.

"Pending any further changes to the General Licences or OFAC's
guidance, therefore, we believe that execution on the collateral
securing the 2020 Bonds in accordance with their terms remain
authorized," the report relays.

A Treasury official confirmed that interpretation: "Treasury's
authorization and related guidance regarding the 2020 PDVSA bonds
was not impacted by the [executive order] of August 5."

A person close to Mr. Guaido's team conceded this point, but added:
"The original rationale was that blocking the 2020 holders from
foreclosing on their collateral would only allow Maduro to default
on the bond with impunity, the report notes.

"The US government was interested in increasing the financial
pressure on the Maduro regime," the person said.  "All of that,
however, was pre-Guaido," the person added.

Should creditors retain the right to seize Citgo, the person close
to Mr. Guaido's team warned of severe consequences, the report
notes.

"At this point the license could operate to deprive the Guaido
government of one of the country's most important external assets,"
the person said.  "That, in turn, will delay the eventual economic
recovery of the country," he added.

For that reason, some observers expect the Treasury to clarify the
scope of Citgo's protection before October, the report notes.  "I
don't really see the Treasury allowing the 2020 bondholders to
enforce their claim," said Richard Cooper, a lawyer at Cleary
Gottlieb who advises the bondholder group alongside Mark Walker at
Guggenheim Securities.

"If they don't change this, someone is going to get blamed for
losing Citgo," he added.  "It would be a potentially big hit to the
Guaido team to lose Citgo under their watch," he said.

The big bondholder group, which proposed its own plan to
restructure the country's $150 billion stack of defaulted debt last
month, has suggested an alternative path forward, the report
relays.

"Our group has offered to help the Guaido government find a market
solution for the 2020 issue which would help Venezuela preserve
control of Citgo and avoid the need for the Treasury to change
their previous guidance on this issue," said Mr. Cooper, the report
notes.

This could include refinancing the payment due this year or the
entire bond, among other options with the US government's blessing,
the report discloses.

The 2020 PDVSA notes, whose biggest holders include London-based
investment firm Ashmore Group, BlackRock and T Rowe Price,
according to data compiled by Bloomberg, are now trading around 65
cents on the dollar, down from nearly 96 cents on the dollar in
late January when the prospects of regime change appeared brighter,
the report relays.

Mr. Grisanti of the ad hoc PDVSA board said the Guaido team is
still assessing "the possibility or impossibility of paying that
debt" in October, the report notes.

"We're designing a strategy, working to get to the best agreement
that reflects the reality on the ground in Venezuela and the
humanitarian crisis it's currently experiencing," he said.  "All
options are on the table," he added, notes the report.

As reported in the Troubled Company Reporter-Latin America on
April 2, 2019, S&P Global Ratings said it assigned its 'B+'
issue-level rating and '1' recovery rating to U.S.-based refinery
and petroleum product marketer and distributor CITGO Petroleum
Corp.'s $1.2 billion senior secured term loan due in 2024. At the
same time, S&P Global Ratings placed the rating on CreditWatch with
developing implications.

The company plans to use the proceeds from the financing to provide
liquidity for ongoing business needs. In addition, the company
plans to terminate its revolving credit facility and AR
securitization facility.


                           *********


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
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

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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,
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