/raid1/www/Hosts/bankrupt/TCRLA_Public/191224.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, December 24, 2019, Vol. 20, No. 256
Headlines
B O L I V I A
BANCO MERCANTIL: S&P Alters Outlook to Neg. & Affirms 'BB-' LT ICR
BANCO UNION: S&P Alters Outlook to Negative & Affirms 'BB-' LT ICR
B R A Z I L
ELDORADO BRASIL: Fitch Affirms BB- LT IDRs, Outlook Positive
INTERCEMENT PARTICIPACOES: Fitch Cuts IDRs to B-, Outlook Stable
C A Y M A N I S L A N D S
GUANAY FINANCE: Fitch Affirms BB Rating on Series 2013-1 Notes
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Customs Expects $3BB Income Despite Slowdown
P U E R T O R I C O
EMPRESAS CARRION: Oriental Bank Objects to Plan Outline
HIGH RIDGE: Case Summary & 50 Largest Unsecured Creditors
SPANISH BROADCASTING: Plans to Repay Debt & Purchase Pref. Stock
V E N E Z U E L A
PETROLEOS DE VENEZUELA: Board Aims to 'Preserve Value' of Nynas
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B O L I V I A
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BANCO MERCANTIL: S&P Alters Outlook to Neg. & Affirms 'BB-' LT ICR
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S&P Global Ratings revised its outlook on the long-term issuer
credit rating on Banco Mercantil Santa Cruz S.A. (BMSC) to negative
from stable. S&P also affirmed the 'BB-' long-term and 'B'
short-term ratings on the bank.
On Dec. 16, 2019, S&P Global Ratings revised its outlook on its
'BB-' long-term issuer rating on Bolivia to negative from stable
due to a potential weakening of its external profile and economic
conditions during the next few months.
The sovereign ratings constrain the bank's credit quality. The
outlook revision on Bolivia resulted in the same action on BMSC.
S&P limits the long-term rating on Banco Union by the sovereign
because it doesn't consider that it could withstand a sovereign
default scenario, given its large exposure to the country in the
form of investments and loans.
S&P could revise the outlook on BMSC to stable if it was to take
the same action on Bolivia. This could occur if there's a
successful political transition in early 2020 that sets the stage
for corrective fiscal and other economic policies that stabilize
the economy, and directly address fiscal and external imbalances,
including staunching a recent fall in foreign exchange reserves.
BANCO UNION: S&P Alters Outlook to Negative & Affirms 'BB-' LT ICR
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S&P Global Ratings revised the outlook to negative on the long-term
issuer credit rating on Banco Union S.A. S&P also affirmed its
long-term 'BB-' and short-term 'B' ratings on the bank.
On Dec. 16, 2019, S&P Global Ratings revised the outlook on its
'BB-' long term issuer rating on Bolivia to negative from stable
due to a potential weakening of the country's external profile and
economic conditions during the next few months.
The sovereign ratings constrain the bank's credit quality. Thus,
the outlook revision on Bolivia results in the same action on Banco
Union. S&P limits the long-term rating on Banco Union by the
sovereign because it doesn't consider that it could withstand a
sovereign default scenario, given its large exposure to the country
in the form of investments and loans.
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B R A Z I L
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ELDORADO BRASIL: Fitch Affirms BB- LT IDRs, Outlook Positive
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Fitch Ratings affirmed Eldorado Brasil Celulose S.A.'s Long-Term
Foreign and Local Currency Issuer Default Ratings at 'BB-' and the
National Long-Term Rating at 'A(bra)'. In addition, Fitch has
affirmed the 'BB-' rating for the 2021 unsecured notes issued by
Eldorado International Finance GmbH, which are guaranteed by
Eldorado and Cellulose Eldorado Austria GmbH. The Rating Outlook on
the corporate ratings is Positive.
Eldorado's ratings reflect the company's strong business profile,
limited scale of operations with only one pulp mill and excellent
position in the production cost curve due to productive forests, a
favorable climate for growing trees and a modern pulp mill.
Eldorado's ratings would be higher than 'BB-' if there were not
corporate governance concerns related to its controlling
shareholder, J&F Investimentos S.A. (J&F), and the ongoing
arbitration process involving the company's non-controlling
shareholder, Paper Excellence, and J&F.
The Positive Outlook reflects Fitch's expectation that Eldorado
will continue to report strong free cash flow (FCF), despite weaker
pulp prices, benefiting from a period of lower investments. This
will allow the company to continue to deleverage. Fitch expects the
company to use its robust FCF to improve liquidity, to continue
paying down short-term and costly bank debt, and to strengthen its
capital structure before building a second pulp line. By the end of
2021, Fitch projects the company's net leverage ratio to be below
2.0x. Fitch does not expect Eldorado to enter into a new investment
cycle at least until the arbitration process is concluded.
Resolutions of the arbitration process could also lead to positive
rating actions, but will depend on the financial and business
strategies for Eldorado.
KEY RATING DRIVERS
Arbitration Process to be Concluded in 2020: The ongoing
arbitration process between J&F and the minority shareholder Paper
Excellence, which is an affiliated of Asia Paper and Pulp, should
be concluded during the second half of 2020. The uncertainties
associated with the company's future shareholding structure still
limits Eldorado's ratings and Fitch will reassess the company's
strategy and credit quality once the decision is made. Fitch
believes that if J&F wins the arbitration process, Eldorado's
access to long term financing should improve and the company will
likely proceed with the construction of its second pulp line. If
Paper Excellence gains the control of the company, the agency has
low visibility about Eldorado's future growth strategy and capital
structure, which could be pressured if Paper Excellence adds debt
at Eldorado to help fund its acquisition of J&F's stake in the
company.
J&F's Ongoing Investigation: Eldorado's rating is constrained by
weak corporate governance due its shareholder's structure, and
uncertainty as several investigations involving its shareholders
continue to move forward. These include administrative procedures
by the CVM (Brazilian Securities and Exchange Commission),
potential fines from the U.S. Department of Justice. These ongoing
legal matters create uncertainty regarding the timing and magnitude
of potential fines J&F might face. Fitch believes the probability
that Eldorado will become involved in them has diminished over
time. Furthermore, any addition fines that may be incurred by the
company's shareholders would likely be paid through dividends
received from Eldorado's sister company, JBS S.A. (Long-Term
Foreign and Local Currency IDR BB/Stable, National Long-Term Rating
AA+(bra)/Stable).
Strong FCF: Fitch projects Eldorado will generate about BRL2.2
billion of adjusted EBITDA in 2020 and BRL2.5 billion in 2021. This
compares with BRL2.3 billion of Fitch-adjusted EBITDA in the LTM
ended September 2019. EBITDA margins are expected to remain at 50%
and 55%. Despite weaker pulp prices, Eldorado's cash flow
generation should continue benefiting from lower investments and
financial expenses. Base case projections considered no dividends
and investments around BRL700 million in 2020 and BRL500 million in
2021, leading to annual FCF between BRL600 million and BRL1 billion
in 2020 and 2021.
Low Leverage: Eldorado's leverage should remain low, as the company
will continue to use FCF to lower net debt. Fitch projects net debt
to reduce to about BRL4.0 billion by the end 2021, from BRL6.8
billion in Sept. 30, 2019, and net debt/adjusted EBITDA of 2.3x in
2020 and 1.6x in 2021. In the LTM ended September 2019, net
leverage was 2.9x, compared with an average of 5.3x between
2015-2017. Eldorado's continued leverage reduction will depend on
the absence of expansion projects and the company's ongoing focus
to use FCF to pay down debt. In Fitch's opinion, Eldorado's
deleveraging strategy in the past few years places the company in a
good position to get through the negative part of the pulp cycle
with conservative credit metrics and should allow Eldorado's
balance sheet to absorb a period of higher investments, if
Vanguarda II project is approved.
Above-Average Business Profile: Eldorado has limited scale of
operations compared with peers in Latin America and only one pulp
mill, which is located in Brazil. This mill has an annual
production capacity of 1.7 million tons of BEKP, in an industry of
62 million tons. Nevertheless, the company is extremely competitive
in the industry due to its productive forests, a favorable climate
for growing trees and a modern pulp mill. In third-quarter 2019,
the company's cash cost of production was about USD159 per ton,
which placed it firmly in the lowest quartile of the cost curve.
Eldorado also has some financial flexibility from its forest base,
with the accounting value of the biological assets of its forest
plantations at BRL2.9 billion as of Sept. 30, 2019.
Unexpected Downturn in Pulp Cycle: The market pulp industry is very
cyclical; prices move sharply in response to changes in demand or
supply. Fitch expected the dearth of new projects during 2019 and
2020 to result in elevated pulp prices. However, pulp prices
plummeted in 2H19 due to weak demand for paper and packaging in
Europe and a slowdown of the Chinese economy. After strong pulp
prices during 2018, bleached eucalyptus kraft pulp (BEKP) will
consequently likely average USD575/ton delivered to China during
2019, a drop from USD800/ton in 2018. Fitch believes prices likely
bottomed out after reaching an unsustainable low of USD450/ton, and
does not expect pulp prices to further deteriorate in 2020, as
high-cost producers will need to shutter plants. Uncertainty about
the recovery of Chinese and European demand, excess inventory,
trade war pressure, slower global growth, and weaker conditions in
the global paper and board sectors likely limit a material upturn
in prices beyond an average of around USD600/ton for BEKP delivered
to China in 2020.
DERIVATION SUMMARY
Eldorado's business profile is strong and reflects its excellent
position in the lowest quartile of the production cost curve due to
its productive forests, a favorable climate for growing trees and a
modern pulp mill. Fitch expects the company to report net leverage
around 2.3x in 2020 and below 2.0x in 2021 as FCF will be used to
pay down short-tenored and costly bank debts.
Similar to other Latin American pulp producers, Eldorado's pulp
production cash costs are among the lowest in the world, ensuring
its long-term competitiveness. This places the company's business
risk profile in line with Latin America pulp companies like Suzano
(BBB-/Negative), Empresas CMPC (BBB/Stable) and Celulosa Arauco
(BBB/Negative). However, Eldorado has only one mill located in
Brazil, while its peers have higher scale of operations and
geographic diversification. Eldorado is also concentrated only in
pulp and is therefore more exposed to the cyclicality of pulp
prices compared with companies with higher product diversification
like Arauco and CMPC, which are leaders in the wood products
segment and tissue markets, respectively. Compared with its
investment grade peers, Eldorado's ratings are, however, still
constrained by ongoing litigation issues at its controlling
shareholders and weak corporate governance standards.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
-- Pulp sales volume of 1.7 million tons;
-- Average hardwood net pulp price between USD600 and USD650 per
ton in 2020-2021;
-- FX rate of 4.0 BRL/USD;
-- No dividends;
-- Base case does not incorporate investments in the new pulp
mill.
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
-- Positive outcome of the arbitration process between Paper
Excellence and J&F;
-- Conclusion of investigations involving J&F.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
-- Negative outcome involving the arbitration process opened by
Paper Excellence and/or involving litigations against J&F and the
Batista family affecting the company's ability to access more
adequate financing locally or abroad;
-- Decreased access to bank financing or capital markets.
LIQUIDITY AND DEBT STRUCTURE
Reduced Refinancing Risks: As of Sept. 30, 2019, Eldorado had cash
and marketable securities of BRL2.0 billion and total debt of
BRL8.8 billion, of which about BRL2.6 billion is due in the short
term. Excluding trade finance lines, debt maturities in the short
term are about BRL1.2 billion as of Sept. 30, 2019. During the
third quarter 2019, Eldorado issued a BRL1 billion pre-export
financing line and prepaid the Export Credit Agencies loan of
BRL800 million. The company also prepaid BRL1.25 billion debentures
from Fundo de Investimento do Fundo de Garantia do Tempo de Servico
during the fourth quarter 2019. Currently, only loans from the
Brazilian Development Bank of BRL2 billion are guaranteed by J&F.
Fitch expects Eldorado to continue to refinance short term debt,
extending debt profile and reducing the average cost of debt. The
expectation of strong FCF over the next two years should also be
used to amortize debt.
As part of the arbitration process, a Coordination Body was created
and will approve Eldorado's strategic decisions, including whether
the company can issue bonds. Therefore, the company's financial
flexibility is limited to a degree. Eldorado is currently
considering issuing a bond to repay high cost debt.
As of Sept. 30, 2019, total debt was composed of trade finance
lines and pre-export financing (22% of total debt), loans from the
Brazilian Development Bank (22%), senior unsecured notes (17%),
debentures from Fundo de Investimento do Fundo de Garantia do Tempo
de Servico (14%), pre-export financing line (12%), operating leases
(7%) and others (6%).
SUMMARY OF FINANCIAL ADJUSTMENTS
-- Fitch excludes gains and losses from derivatives transactions
from FFO and adds to other investing & financing cash flow;
-- Fitch excludes from adjusted EBITDA calculation ICMS credits,
PIS/COFINS credits, wood inventory appreciation, insurance
indemnity and fair value of biological assets;
-- Fitch excludes interest paid from net debt proceeds and
includes on FFO.
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.
Eldorado has an ESG Relevance Score of 4 for EFM Environment -
Energy Management as the company sells excess energy to the grid
from cogeneration based upon a renewable resource, which has a
positive impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.
Eldorado has an ESG Relevance Score of 5 for GGV - Governance
Structure due to the arbitrage process involving J&F and Paper
Excellence, which has a negative impact on the credit profile, and
is relevant to the ratings.
INTERCEMENT PARTICIPACOES: Fitch Cuts IDRs to B-, Outlook Stable
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Fitch Ratings downgraded InterCement Participacoes S.A.'s Long-Term
Foreign and Local Currency Issuer Default Ratings to 'B-' from 'B'
as well as the company's Long-Term National Scale Rating to
'BB+(bra)' from 'BBB-(bra)'. In addition, Fitch has downgraded
InterCement Financial Operations BV's unsecured notes due 2024 to
'B-'/'RR4' from 'B'/'RR4'. The Rating Outlook is Stable.
The downgrade is due to negative GDP growth expectations in
Argentina during 2020 and a continued decline in the purchasing
power of the company's clients in this market due to high inflation
and the deterioration of the Argentine peso. These factors will
weaken demand for cement in this market and are factored into the
downgrade of the ratings. The Argentine market has accounted for
around 60% of the company's consolidated EBITDA in recent years due
to the collapse in demand for cement in Brazil.
Fitch estimates that the company will need to generate at least
EUR100 million of EBITDA in Brazil to stabilize its capital
structure, which will likely need several years of robust economic
growth. This estimate assumes the stabilization of Argentine
construction activity in 2021, which is highly uncertain.
KEY RATING DRIVERS
Solid Business Position: InterCement is the second largest cement
producer in Brazil, which is one of the world's largest cement
markets, and the leading cement producer in Argentina with close to
50% market share. The company also has operations in Mozambique,
where it is the largest producer with a 50% market share, and in
Egypt, South Africa and Paraguay. InterCement's businesses in
Argentina and Paraguay are operated through its 51% owned
subsidiary Loma Negra, C.I.A.S.A. InterCement's sales are
relatively balanced between Brazil (42%) , Argentina and Paraguay
(31%) and its African subsidiaries. Fitch estimates that Argentina
and Paraguay will account for about 45% of InterCement's EBITDA
breakdown over the next two years; Brazil and Africa will represent
the balance.
A long road to Brazilian Recovery: InterCement generated only EUR20
million of EBITDA in Brazil during 2018; Fitch expects this figure
to climb to EUR50 million in 2020 and EUR70 million in 2021. These
figures remain far below a high of EUR 413 million in 2013. During
these years, cement consumption fell to 53 million tons from 72
million tons.
Argentina to Remain Challenging: InterCement's Argentine
subsidiary, which is the company's primary cash flow generator, is
expected to continue to face declining cement demand in 2020. Loma
Negra generated EUR174 million of EBITDA in 2018 compared to EUR211
million in 2017, and Fitch forecasts this business to generate
EUR120 million in 2020 and 2021 seems extremely uncertain. This
subsidiary's cash flow generation over the last two years has been
used to fund an expansion in Olavarria in the Buenos Aires
province. This expansion is expected to lead to cost efficiencies
as the company has rationalized two of its cement production
facilities and the benefits are expected to partially lessen the
effect of weak demand resulting from Argentina's steep economic
contraction.
Weak Consolidated EBITDA Generation: InterCement's operating EBITDA
declined to EUR241 million as of the LTM ended Sept. 30, 2019 from
EUR294 million as of YE 2018. The decline has largely reflected
weak cement demand in Argentina and South Africa as well as more
competition in Egypt, where the market is heavily oversupplied.
Capacity rationalization expenses in Argentina and to lesser extent
a weaker FX has also been a factor. Fitch's base case suggests a
gradual recovery to EUR270 million in 2021 mainly due to a recovery
in Brazil and to lesser extent from InterCement's African
subsidiaries.
Leverage Expected to Peak: InterCement's net leverage is expected
to peak at 6.5x, per the agency's estimates, during 2020. This
considers a consolidated operating EBITDA forecast of approximately
EUR240 million as well as capex of around EUR200 million, of which
EUR60 million-EUR70 million are related to Loma Negra's expansion,
which is expected to be complete by mid-2020. Subsequent
deleveraging in 2021 seems to depend largely on the stabilization
of Argentina and gradual EBITDA gains in Brazil.
FX Exposure: FX mismatch risk is significant for InterCement, as
the majority of its operating cash flow generation is based on
weaker currencies. Approximately 69% of total debt of EUR1.7
billion and approximately 67% of InterCement's total cash balance
of EUR260 million was denominated in hard currency, as of Sept 30,
2019. The company relies on its pricing strategy to offset U.S.
dollar cost inflation and revenue weakness resulting from currency
depreciation.
DERIVATION SUMMARY
InterCement's 'B-' rating reflects net leverage expectations above
6x in 2020 and 2021 along with weak cash flow generation resulting
from weak cement demand in Argentina. Weakness in the Brazilian
real and Argentine peso is also factored into the ratings. The
company has a strong business position in these markets. Business
scale is an important driver for cement industries, given its
capital-intensive operations and high fixed costs. Despite its
large scale, InterCement's cash flow has varied greatly since it
operates in highly volatile markets such as Brazil, Argentina,
Paraguay, Egypt, Mozambique and South Africa.
From an operational perspective, InterCement shows a weaker
position compared with other large players, such as LafargeHolcim
Ltd (BBB/Stable) and CEMEX, S.A.B. de C.V. (BB/Stable), which have
greater geographic diversification and more stable markets.
Votorantim Cimentos S.A. (BBB-/Stable), which is also a Brazilian
cement company but with strong operations in the U.S. and Canada
and other regions, is not a direct peer, as its rating is tied to
Votorantim Group's ratings, which also includes mining, pulp and
financial services subsidiaries.
From a financial perspective, InterCement's expected net leverage
at around 6.0x compares with expectations for CEMEX's net leverage
at around 4.0x, and it is high relative to the 4.3x median net
leverage ratio of Fitch's Latin America corporate issuers in the
'B' rating category. InterCement's poor operating cash flow
generation is a key rating constraint.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
-- Brazil volumes increasing mid-single digits in through 2022;
-- Argentine volumes declining about mid-single digits during
2020 and flat in 2021
-- Operating EBITDA of about USD240 million in 2020 and USD270
million in 2021
-- Capex levels around EUR200 million in 2020 and declining in
2021;
-- Successful bank debt refinancing of approximately EUR1 billion
during 1Q20;
RATING SENSITIVITIES
Developments That May, Individually or Collectively, Lead to
Positive Rating Action
-- Additional proactive steps by the company to materially
bolster its capital structure in the absence of high operating cash
flow;
-- Faster than expected deleverage to below 5.5x on a sustained
basis, and consistent FCF generation to pay down gross debt
levels.
Developments That May, Individually or Collectively, Lead to
Negative Rating Action
-- An inability to meet Fitch's expectations for Brazilian EBITDA
recovery;
-- Deterioration in InterCement's liquidity profile or
difficulties to progress on refinancing strategy leading to higher
refinancing risks;
-- Net leverage above 7.0x on a recurring basis.
LIQUIDITY AND DEBT STRUCTURE
Weak Liquidity: InterCement's liquidity is weak as the company
faces debt maturities of USD243 million in 2020 and USD310 million
in 2021 which compares with USD260 million of cash and short-term
investments. In addition to upcoming debt maturities, Fitch
estimates that InterCement will generate negative FCF of
approximately USD150 million in 2020 and USD50 million in 2021,
which reflects a weak but improving outlook for cash flow
generation in Brazil and Africa as well as the EUR50 million of
capex to be spent in 2020 to complete the expansion of Loma Negra's
L'Amali plant. The negative FCF is expected to be funded primarily
through local bank debt.
The company aims to refinance most of its upcoming maturities,
which are held by local banks and total about EUR1 billion, with a
structure that would require minimal amortizations over the next
two-three years. Fitch believes some form of debt refinancing is
likely given the fundamentally sound business position of the
company its two largest markets as well as the improving outlook
for the Brazilian economy.
ESG CONSIDERATIONS
InterCement has an ESG Relevance Score of 4 for Governance
Structure due limited board independence through ownership by key
shareholder, Mover Participacoes S.A..
For all other factors, 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.
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C A Y M A N I S L A N D S
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GUANAY FINANCE: Fitch Affirms BB Rating on Series 2013-1 Notes
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Fitch Ratings affirmed Guanay Finance Limited's 2013-1 notes at
'BB'. The Rating Outlook is Stable.
The transaction is backed by existing and future U.S. and Canadian
dollar-denominated ticket receivables originated by LATAM Airlines
Group S.A. Receivables result from passenger and cargo sales booked
under IATA code 045 and purchased with a qualified credit, debit or
charge card in the U.S. and Canada. Fitch's rating addresses timely
payment of interest and principal on a quarterly basis.
RATING ACTIONS
Guanay Finance Limited
Series 2013-1 40066NAA4; LT BB Affirmed; previously at BB
Series 2013-1 Reg S USG4182JAA19; LT BB Affirmed; previously at BB
KEY RATING DRIVERS
Originator's Credit Quality: Fitch rates LATAM's Long-Term Issuer
Default Rating (IDR) 'BB-'/Stable. LATAM's rating is supported by
its diversified business model, significant regional market
position, adequate liquidity, improved margins in key markets and
slightly better adjusted gross debt as of December of 2018 when
compared with the end of 2017.
Going Concern Assessment: Fitch assesses LATAM a going concern
assessment (GCA) score of 'GC3'. The maximum rating uplift allowed
by the GCA score is two notches. However, other risks outlined
below result in a one-notch rating uplift from LATAM's IDR.
Adequate Performance: Considering maximum quarterly debt service
for the life of the transaction, the last twelve month average debt
service coverage ratio (DSCR) is 5.2x. Flows benefit from a
strategically important and strong securitized business line.
Future Flow Debt: As of third-quarter 2019, outstanding future flow
debt represented approximately 1.2% of LATAM's consolidated debt
and 1.7% relative to unsecured debt. These percentages are low
relative to LATAM's balance sheet and have been improving since
closing.
Moderate Diversion Risk: The transaction is exposed to potential
diversion risk despite structural protections. Cash flows could be
diverted from the transaction by rerouting sales through a
different IATA code or processing card payments in a different
jurisdiction. Moderate diversion risk limits uplift of the future
flow rating from the originator's IDR.
RATING SENSITIVITIES
The ratings on the notes are sensitive to LATAM's credit quality
and its ability to continue generating securitized flows,
specifically in a context of financial stress as reflected by the
GCA score. Other parameters held constant; negative changes in
LATAM's IDR or GCA score could result in a rating downgrade (while
positive changes could result in an upgrade).
The transaction rating is also sensitive to the performance of the
securitized business line. A material contraction in LATAM's North
American gateway business that negatively affects DSCRs could lead
to a rating downgrade. A change in key ratings drivers of a certain
magnitude will not necessarily impact future flows ratings with the
same magnitude.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
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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: Customs Expects $3BB Income Despite Slowdown
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Dominican Today reports that the Customs agency said that the
global environment with a tendency to economic slowdown also
affects local dynamics, including revenue.
"Our most important challenges are to become increasingly
efficient, with the continuous simplification of the processes and
the impact of their actions against the illicit," Customs said in a
statement quoted by Diario Libre, according to Dominican Today.
It said that despite the challenges, it seeks to achieve a
collection in accordance with the provisions of the National Budget
for 2020, with RD$163.3 billion (US$3.08 billion), the report
relays.
Customs added that to October 2019, it collected RD$118.5 billion,
an increase of RD$6.8 billion, or 6.10% more than the same period
of 2018, 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).
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P U E R T O R I C O
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EMPRESAS CARRION: Oriental Bank Objects to Plan Outline
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Secured creditor Oriental Bank objects to the Amended Plan of
Reorganization and Disclosure Statement of Empresas Carrion
Allende, Inc.
Oriental Bank asserts that the feasibility of the Plan is put into
question as proposed because it is predicated upon the Debtor
entering into an agreement with Oriental for a payoff of the loan
with a discount commensurate to the reduction in value of the
properties subject to obtaining the appropriate financing, as shown
in the Scenario A of the Amended Plan under Class 2 of Secured
Claims.
The second scenario of restructuring the debt is predicated in the
development of the properties as income-producing properties. But
for that development, the properties need further remodeling which
will result in expenses of over $400,000 for the Debtor without a
source to finance said remodeling and development, Oriental Bank
says.
Oriental Bank adds that the Amended Plan does not pass the
feasibility test as it most probably will result in a liquidation
of the properties because the Debtor does not have an established
source of income to fund the proposed payment of plan in the
Amended Plan.
Oriental Bank further points out that the Plan discriminates
against and is not fair and equitable for Oriental, inasmuch as it
reduces its secured claim 7-1, does not reaffirm the loan
agreements, classifies its claims 8-1 and 11-1 under Class 5, which
does not provide for any payment whatsoever under the Plan.
The Amended Disclosure Statement does not provide any information
whatsoever as to the Debtor's principal's, nor related companies'
liquidity or financial capacity to make the required capital
contributions and investments within the time frame contemplated in
the Plan, Oriental Bank adds.
A full-text copy of the Objection is available at
https://tinyurl.com/ralayf2 from PacerMonitor.com at no charge.
Oriental Bank is represented by:
MCD LAW LLC
Cristina A. Fernandez Rodriguez
Email: caf@mcdlawllc.com
PO BOX 191732
SAN JUAN PR 00919-1732
Tel. (787)200-7876
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 represents
the Debtor.
HIGH RIDGE: Case Summary & 50 Largest Unsecured Creditors
---------------------------------------------------------
Lead Debtor: High Ridge Brands Co.
333 Ludlow Street
South Tower 2nd Floor
Stamford, Connecticut 06902
Business Description: Headquartered in Stamford, High Ridge Brands
Co. -- https://highridgebrands.com --
is an independent branded personal care
company. High Ridge has developed a diverse
portfolio of over 14 brands across a wide
variety of market segments with a particular
focus on skin cleansing, hair care, and oral
care. High Ridge was formed to acquire the
rights to the Zest soap brand in the United
States, Canada, Puerto Rico, and certain
other Caribbean countries from The Procter &
Gamble Company in January 2011.
Chapter 11 Petition Date: December 18, 2019
Court: United States Bankruptcy Court
District of Delaware
Nine affiliated debtors that concurrently filed voluntary
petitions
for relief under Chapter 11 of the Bankruptcy Code:
Debtor Case No.
------ --------
High Ridge Brands Co. (Lead Case) 19-12689
High Ridge Brands Holdings, Inc. 19-12690
HRB Midco, Inc. 19-12691
HRB Buyer, Inc. 19-12692
Golden Sun, Inc. 19-12693
Continental Fragrances, Ltd. 19-12694
Freshcorp, Inc. 19-12695
Children Oral Care, LLC 19-12696
Dr. Fresh, LLC 19-12697
Judge: Hon. Brendan L. Shannon
Debtors'
Bankruptcy
Counsel: Robert S. Brady, Esq.
Edmon L. Morton, Esq.
Ian J. Bambrick, Esq.
Allison S. Mielke, Esq.
Jared W. Kochenash, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, Delaware 19801
Tel: (302) 571-6600
Fax: (302) 571-1256
Email: rbrady@ycst.com
emorton@ycst.com
ibambrick@ycst.com
amielke@ycst.com
jkochenash@ycst.com
Debtors'
Corporate,
Finance &
Litigation
Counsel: DEBEVOISE & PLIMPTON LLP
Debtors'
Restructuring
Advisor: ANKURA CONSULTING GROUP, LLC
Debtors'
Investment
Banker: PJT PARTNERS LP
Debtors'
Notice,
Claims,
Solicitation &
Balloting
Agent: PRIME CLERK, LLC
https://cases.primeclerk.com/highridge
Estimated Assets
(on a consolidated basis): $100 million to $500 million
Estimated Liabilities
(on a consolidated basis): $500 million to $1 billion
The petitions were signed by Benjamin M. Jones, chief
restructuring
officer.
A copy of High Ridge Brands Co.'s petition is available from
PacerMonitor for free at:
https://is.gd/NRLcNE
List of Debtors' 50 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
1. Mercer QIF Fund PLC - Bondholder $27,425,000
Mercer Investment Fund 1
Attn: Brian Connolly
399 Boylston St.
Suite 501
Boston, MA 02116
Tel: 6179390032
Email: bconnolly@millstreet.com
2. Barings Global Bondholder $26,960,000
Special Situations 3 S.A.R.L
Attn: Mike Searles
300 SouthTryon St.
Suite 2500
Charlotte, NC 2820
Tel: 9804175696
Email: michael.searles@barings.com
3. Millstreet Credit Fund LP Bondholder $22,925,000
Attn: Brian Connolly
399 Boylston St., Suite 501
Boston, MA 02116
Tel: 6179390032
Email: bconnolly@millstreet.com
4. Principal Funds, Inc. - Bondholder $15,607,000
Global Diversified Income Fund
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
Email: dbreazzano@ddjcap.com
5. JP Morgan Investment Funds - Bondholder $10,865,000
Global High Yield Bond Fund
Attn: Greg Seketa
1E. Ohio St., 6th Floor
Indianapolis, IN 46032
Tel: 3172365669
Email: greg.seketa@jpmorgan.co
6. PIMCO Horseshoe Fund, LP Bondholder $10,000,000
Attn: Andrew Jessop
650 Newport Center Dr.
Newport Beach, CA 92600
Tel: 9497206000
Email: andrew.jessop@pimco.com
7. Barings Global High Yield Bondholder $9,000,000
Credit Strategies Limited
Attn: Mike Searles
300 South Tryon St.
Suite 2500
Charlotte, NC 28202
Tel: 9804175696
Email: michael.searles@barings.com
8. BMO Capital Markets Corp. Bondholder $7,700,000
Attn: Evan Brown
3 Times Square
New York, NY 10036
Tel: 2127021200
Email: Evan.Brown@bmo.com
9. Geode Capital Management LP Bondholder $7,430,000
Attn: Jeffrey Miller
100 Summer St. 12th
Floor Boston, MA 02110
Tel: 6175633499
Email: jeffrey.miller@geodecapital.com
10. Caterpillar Inc. Bondholder $6,500,000
Master Retirement Trust
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
Email: dbreazzano@ddjcap.com
11. Principal Funds, Inc. Bondholder $4,938,000
- High Yield Fund
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
Email: dbreazzano@ddjcap.com
12. Scott's Cove Management, LLC Bondholder $4,732,000
Attn: Philip Acinapuro
400 Madison Ave.
10th Floor
New York, NY 1001
Tel: 2128993577
Email: acinapuro@scottscove.com
13. Strichting Bewaarder Bondholder $4,520,000
Syntrus Achmea Global
High Yield Pool
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
Email: dbreazzano@ddjcap.com
14. Bank of Nova Scotia Bondholder $3,750,000
Attn: Fatima Rego
150 King St. West
5th Floor
Toronto ,ON M5H 3T9
Canada
Tel: 4168637828
Email: fatima.rego@scotiabank.com
15. C.H. Robinson Worldwide Trade Creditor $3,625,952
Attn: Elisabeth Leister
P.O. Box 9121
Minneapolis, MN 554809121
Tel: 6102606100x3240
Email: elisabeth.leister@chrobinson.com
16. Aerofil Technology Inc. Trade Creditor $3,444,685
Attn: Neva Thiessen
c/o UMB Bank, NA
PO Box 870928
Kansas City, MO 641870928
Tel: 5734681471x1159
Email: cmclaughlin@aerofil.com
17. Mercer QIF Fund PLC Bondholder
$3,410,000
Mercer Investment Fund 1
Attn: David Breazzano
130 Turner St.
Building 3, Suite600
Waltham, MA 02453
Tel:7812838500
Email: dbreazzano@ddjcap.com
18. District of Columbia Bondholder $3,250,000
Retirement Board
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
Email: dbreazzano@ddjcap.com
19. Cosway Company Inc. Trade Creditor $3,094,958
Attn: Dennis Kaprielian
P.O. Box 840876
Los Angeles, CA 900840876
Tel: 3109004100
Email: dkaprielian@cosway.com
20. Crown Managed Accounts SPC Bondholder $3,000,000
Acting for and on Behalf
of Crown /BA 2SP
Attn: Mike Searles
300 South Tryon St.
Suite 2500
Charlotte, NC 28202
Tel: 9804175696
Email: michael.searles@barings.com
21. Barings Global Short Bondholder $2,982,000
Duration High Yield Fund
Attn: Mike Searles
300 South Tryon St.
Suite 2500
Charlotte, NC 28202
Tel: 9804175696
EMAIL: michael.searles@barings.com
22. The State of Connecticut Bondholder $2,920,000
Acting Through its Treasurer
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
Email: dbreazzano@ddjcap.com
23. PIMCO Funds: Bondholder $2,500,000
Global Investors Series plc, US
High Yield Bond Fund
Attn: Andrew Jessop
650 Newport Center Dr.
Newport Beach, CA 92600
Tel: 9497206000
EMAIL: andrew.jessop@pimco.com
24. Newport Global Bondholder $2,500,000
Opportunities Fund I-A LP
Attn: Anthony Longi, Jr.
21 Waterway Ave.
Suite 150
The Woodlands, TX 77380
Tel: 7135597400
Email: tlongi@ngalp.com
25. 1199SEIU Health Care Bondholder $2,430,000
Employees Pension Fund
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
EMAIL: dbreazzano@ddjcap.com
26. JP Morgan Strategic Bondholder $2,425,000
Income Opportunities Fund
Attn: Greg Seketa
1E. Ohio St.
6th Floor
Indianapolis, IN 46032
Tel 3172365669
EMAIL: greg.seketa@jpmorgan.com
27. Commingled Pension Trust Fund Bondholder $2,285,000
(Corporate High Yield)
of JP Morgan Chase Bank, N.A.
Attn: Greg Seketa 1E.
Ohio St. 6th Floor
Indianapolis,IN 46032
28. DDJ Capital Management Bondholder $2,269,000
Group Trust DDJ Custom High
Yield Investment Fund
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
Email: dbreazzano@ddjcap.com
29. Strichting Pensioenfonds Bondholder $2,010,000
Hoogovens
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
Email: dbreazzano@ddjcap.com
30. Credit Suisse High Bondholder $2,000,000
Yield Bond Fund
Attn: Michael Chaisanguanthum
11 Madison Ave.
New York, NY 10010
Tel: 2125384178
EMAIL: michael.chaisanguanthum@creditsuisse.com
31. Marathon Asset Management L.P. Bondholder $2,000,000
Attn: Louis Hanover
One Bryant Park
38th Floor
New York, NY 10036
Tel: 2125003128
32. DDJ Capital Management Bondholder $1,910,000
Group Trust DDJ
Custom High Yield Fund 2017
Attn: David Breazzano
130 Turner St. Building 3,
Suite 600
Waltham, MA 02453
Tel: 7812838500
EMAIL: dbreazzano@ddjcap.com
33. Changzhou Daya Imp & Exp Corp Trade Creditor $1,876,609
Attn: Steve Hu
Room 402 -
40425 Taihuzhong Road
Xinbei District Changzhou
Jiangsu China, CN 213022 China
Tel: 865198104387
EMAIL: stevehu@jsmail.com.cn
34. ABN AMRO MultiManager Funds Bondholder
$1,868,000
Attn: Mike Searles
300 South Tryon St.
Suite 2500
Charlotte, NC 28202
Tel: 9804175696
EMAIL: michael.searles@barings.com
35. PIMCO Funds: PIMCO Bondholder $1,750,000
High Yield Spectrum Fund
Attn: Andrew Jessop
650 Newport Center Dr.
Newport Beach, CA 9260
Tel: 9497206000
EMAIL: andrew.jessop@pimco.com
36. Fidelity National Title Bondholder $1,750,000
Insurance Company
Attn: Anthony Longi, Jr.
21 Waterway Ave. Suite 150
The Woodlands, TX 77380
Tel: 7135597400
EMAIL: tlongi@ngalp.com
37. Barings Global Multi Bondholder
$1,663,000
Credit Strategy 2 Limited
Attn: Mike Searles
300 South Tryon St.
Suite 2500
Charlotte, NC 2820
Tel: 9804175696
Email: michael.searles@barings.com
38. Russell Investment Company Bondholder
$1,640,000
Multi-Strategy Income Fund
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
EMAIL: dbreazzano@ddjcap.com
39. FedEx Corporation Bondholder $1,591,000
Employees' Pension Trust
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
EMAIL: dbreazzano@ddjcap.com
40. Chen Zhou Wealthwise Trade Creditor $1,557,542
Attn: Auyeung
Shou Fo Road No.402
Zixing City
Chenzhou, Hunan,CN
China
Tel: 867353357818
EMAIL: h.auyeung@wealthwise.cn
41. UAW Retiree Medical Bondholder $1,540,000
Benefits Trust
(GM Separate Retiree Account)
Attn: David Breazzano
130 Turner St.
Building 3, Suite
600 Waltham, MA 02453
Tel: 7812838500
EMAIL: dbreazzano@ddjcap.com
42. Marietta Corporation Trade Creditor $1,486,839
Attn: Julia Chea
Dept CH 14106
Palatine, IL 60055410
Tel: 9056600444x200299
EMAIL: jchea@kikcorp.com
43. JP Morgan Strategic Bondholder $1,463,000
Income Opportunities Fund
Attn: Greg Seketa
1E. Ohio St.
6th Floor
Indianapolis, IN 46032
Tel: 3172365669
EMAIL: greg.seketa@jpmorgan.com
44. Credit Suisse Asset Bondholder $1,350,000
Management Income Fund, Inc.
Attn: Michael Chaisanguanthum
11 Madison Ave.
New York, NY 10010
Tel: 2125384178
EMAIL: michael.chaisanguanthum@creditsuisse.com
45. J.C. Penney Corporation, Bondholder $1,340,000
Inc. Pension Plan Trust
Attn: David Breazzano
130 Turner St.
Building 3,
Suite 600 Waltham, MA 02453
Tel: 7812838500
EMAIL: dbreazzano@ddjcap.com
46. NTCC High Yield Bond Fund FEBT Bondholder $1,280,000
Attn: David Breazzano
130 Turner St.
Building 3,
Suite 600
Waltham, MA02453
Tel: 7812838500
Emal: dbreazzano@ddjcap.com
47. National Railroad Bondholder $1,210,000
Retirement Investment Trust
Attn: David Breazzano
130 Turner St.
Building 3,
Suite 600
Waltham, MA 0245
Tel: 7812838500
EMAIL: dbreazzano@ddjcap.com
48. MIGROSPENSIONS KASSE FONDS Bondholder
$1,205,000
Attn: Greg Seketa
1E. Ohio St.
6th Floor
Indianapolis, IN 46032
Tel: 3172365669
EMAIL: greg.seketa@jpmorgan.com
49. DDJ/TAF Strategic Income Fund Bondholder $1,172,000
Attn: David Breazzano
130 Turner St.
Building 3, Suite 600
Waltham, MA 02453
Tel: 7812838500
EMAIL: dbreazzano@ddjcap.com
50. Russell Investment Company PLC Bondholder $1,130,000
Russell Global High Yield Fund
Attn: David Breazzano
130 Turner St.
Building 3,
Suite 600 Waltham, MA0245
Tel: 7812838500
EMAIL: dbreazzano@ddjcap.com
SPANISH BROADCASTING: Plans to Repay Debt & Purchase Pref. Stock
----------------------------------------------------------------
In connection with its planned recapitalization, Spanish
Broadcasting System, Inc. has received a letter from a recognized
multinational financial services broadcast lender stating that it
is highly confident of its ability to arrange secured debt
financing for SBS in an amount of $300 million. The debt financing
will carve out certain non-core real estate and broadcast station
assets so that, in connection with the recapitalization, SBS will
be positioned to obtain a separate and incremental first lien
asset-based financing facility.
SBS intends to use the proceeds from the $300 million of debt
financing plus the proceeds of the additional and incremental
asset-based funding to repay its existing $249.9 million of 12.5%
Senior Secured Notes and to make cash purchases of its existing
Series B preferred stock.
"SBS has an established track-record as a leading Hispanic
owner/operator of media, having consistently reported
industry-leading growth in its ratings, revenues and margins during
the last several years," stated Jose I. Molina, chief financial
officer of SBS. "SBS expects to deliver a robust and certain
return to our existing investors while repositioning SBS to
continue its forward operating momentum. Following closing of the
recapitalization transaction, we will continue serving our growing
base of millions of Hispanics nationwide with today's relevant news
and entertainment programming, as well as the advertisers that
target their dynamic purchasing power and expanding social,
cultural and political influence. Likewise, we will implement our
long-range strategic plans to create incremental value for our new
investors."
About Spanish Broadcasting
Based in Miami, Florida, Spanish Broadcasting System, Inc.
(OTCMKTS:SBSAA) -- http://www.spanishbroadcasting.com-- owns and
operates radio stations located in the top U.S. Hispanic markets of
New York, Los Angeles, Miami, Chicago, San Francisco and Puerto
Rico, airing the Tropical, Regional Mexican, Spanish Adult
Contemporary, Top 40 and Urbano format genres SBS also operates
AIRE Radio Networks, a national radio platform of over 275
affiliated stations reaching 95% of the U.S. Hispanic audience.
SBS also owns MegaTV, a network television operation with
over-the-air, cable and satellite distribution and affiliates
throughout the U.S. and Puerto Rico, produces a nationwide roster
of live concerts and events, and owns a stable of digital
properties, including La Musica, a mobile app providing
Latino-focused audio and video streaming content and HitzMaker, a
new-talent destination for aspiring artists.
Spanish Broadcasting reported net income of $16.49 million for the
year ended Dec. 31, 2018, compared to net income of $19.62 million
for the year ended Dec. 31, 2017. As of Sept. 30, 2019, the
Company had $455.18 million in total assets, $540.59 million in
total liabilities, and a total stockholders' deficit of $85.42
million.
Crowe LLP, in Fort Lauderdale, Florida, the Company's auditor since
2013, issued a "going concern" opinion in its report dated April 1,
2019, on the Company's consolidated financial statements for the
year ended Dec. 31, 2018, citing that the 12.5% Senior Secured
Notes had a maturity date of April 15, 2017. Cash from operations
or the sale of assets was not sufficient to repay the notes when
they became due. In addition, at Dec. 31, 2018 the Company had a
working capital deficiency. These factors raise substantial doubt
about the Company's ability to continue as a going concern.
=================
V E N E Z U E L A
=================
PETROLEOS DE VENEZUELA: Board Aims to 'Preserve Value' of Nynas
---------------------------------------------------------------
Luc Cohen at Reuters reports that the opposition-led ad-hoc board
of Venezuelan state oil company Petroleos de Venezuela, S.A.
(PDVSA) said it would seek to "preserve the value" of Swedish
refiner Nynas, a subsidiary which filed for company reorganization
at a Swedish court.
The refiner, jointly owned by PDVSA and Finland's Neste Oil, was
unable to extend loans with its banks in the face of U.S. sanctions
on Venezuela, leaving it unable to pay its debts, according to
Reuters.
The ad-hoc board, which has been recognized by Washington as the
rightful representation of the company abroad, called Nynas
decision to file for court protection "unilateral," the report
notes. It said in a statement that it had not been able to take
control of Nynas, despite its efforts, the report relays.
The board, appointed by the leader of the opposition-controlled
National Assembly Juan Guaido earlier this year, has managed to
take control of other overseas subsidiaries like U.S. refiner Citgo
and Colombian petrochemicals company Monomeros, the report
discloses.
Guaido has been recognized as Venezuela's rightful leader by dozens
of countries, but President Nicolas Maduro retains control of the
territory and dismisses Guaido as a U.S. puppet, the report says.
"[Nynas] remains under the influence of Nicolas Maduro's usurping
regime," the statement read, the report adds.
About PDVSA
Founded in 1976, Petroleos de Venezuela, S.A. (PDVSA) is the
Venezuelan state-owned oil and natural gas company, which engages
in exploration, production, refining and exporting oil as well as
exploration and production of natural gas. It employs around
70,000 people and reported $48 billion in revenues in 2016.
As reported in Troubled Company Reporter-Latin America on June 3,
2019, Moody's Investors Service withdrew all the ratings of
Petroleos de Venezuela, S.A. including the senior unsecured and
senior secured ratings due to insufficient information. At the time
of withdrawal, the ratings were C and the outlook was stable.
Citgo Petroleum Corporation (CITGO) is Venezuela's main foreign
asset. CITGO is majority-owned by PDVSA. CITGO is a United
States-based refiner, transporter and marketer of transportation
fuels, lubricants, petrochemicals and other industrial products.
However, CITGO formally cut ties with PDVSA at about February 2019
after U.S. sanctions were imposed on PDVSA. The sanctions are
designed to curb oil revenues to the administration of President
Nicolas Maduro and support for the Juan Guaido-headed party.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2019. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
.
* * * End of Transmission * * *