/raid1/www/Hosts/bankrupt/TCRLA_Public/200908.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, September 8, 2020, Vol. 21, No. 180
Headlines
A R G E N T I N A
AEROPUERTOS ARGENTINA: S&P Affirms CCC+ Ratings
ARGENTINA: Commercial Flights Could Restart in October
ARGENTINA: Defuses Default Crisis With Massive Debt Deal
B A R B A D O S
BARBADOS: COVID-19 Pandemic Has Had a Major Impact on Economy
B R A Z I L
BRAZIL: Influenced by Pandemic, Airfare Prices Drop 34% During Q2
BRAZIL: Judges Uphold Suspension of Rio Governor
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Abinader Takes a Chainsaw to Gov. Agencies
DOMINICAN REPUBLIC: INESPRE Starts Sales of Bananas From Barahona
E C U A D O R
ECUADOR SOCIAL: Fitch Hikes Class B Repack Notes to 'B-sf'
G U A T E M A L A
GUATEMALA: IDB OKs $100M Loan to Help Vulnerable People Fight COVID
P U E R T O R I C O
ASCENA RETAIL: Sept. 16 Auction of Catherines Assets Set
BETTERECYCLING CORP: Plan Exclusivity Extended to October 7
- - - - -
=================
A R G E N T I N A
=================
AEROPUERTOS ARGENTINA: S&P Affirms CCC+ Ratings
-----------------------------------------------
S&P Global Ratings affirmed the 'CCC+' ratings on Argentina-based
airport operator, Aeropuertos Argentina 2000 S.A. (AA2000).
S&P said, "We recently reviewed downwards our base-case traffic
assumptions globally. We now expect a drop between 60% and 70% in
2020 (versus our previous assumption of 50%-55%), between 30% and
40% in 2021 (versus 25%-30% previously) and between 15% and 20% in
2022 (versus 15% previously). As a result, we have also revised
downwards our expectations for traffic assumptions for AA2000,
which are slightly harsher than the global expectations considering
the tighter lockdown in Argentina and more challenging economic
conditions. We adjust our base case for AA2000 to a traffic drop of
72% for 2020 (from 60% previously), a drop of 45% for 2021 (versus
30%), and 22% for 2022 (versus 15%).
"In our view, the downwards revision of our base case assumptions
for air traffic are offset by several factors. First, AA2000's
liquidity has been enhanced by the $40 million, two-year bullet
notes it issued in August 2020 (under the current circumstances we
deem cash on hand safer than expected EBITDA). Second, so far the
company's severe cost control initiatives have allowed it to
maintain its cash position stable in the first and second quarters
of 2020 (the latter with the full impact from the pandemic), and we
expect it to stay stable for the third quarter."
AA2000's cash flow generation capacity remains subdued until air
traffic restrictions are fully lifted. Even after it restructured
its financial debt in May, the company is still vulnerable and
dependent on upon favorable business, financial, and economic
conditions to meet its financial commitments in 2021. Since
mid-March, airports in Argentina have been closed to domestic and
international commercial flights, with only cargo flights allowed
and a handful of sanitary flights. Currently, although airlines
have sold tickets not yet used and there are ongoing talks for a
gradual reopening of air traffic in October, with some limited
flights scheduled already in September, the official target date
for a broader opening remains unclear.
Additionally, economic conditions in Argentina continue to degrade
because of the pandemic-induced deepening of the recession, the
widening fiscal deficit, and the sustained depreciation of the
Argentine peso. This is only partially offset by the recent
sovereign debt restructuring. Even if the air travel lockdown
starts to ease in the fourth quarter, the country's economic
challenges may cause air traffic to be fragile because disposable
income remains low.
Uncertainty remains high and visibility low in the intermediate to
long term, subject to the broad availability of medical treatments
or vaccines for COVID-19 (which could fuel travelers' appetites),
to government restrictions, to the government's capacity to
continue providing assistance and support to the travel industry
(which could make several cost aids sustainable), and to the way
airlines will manage fleet capacity as various airlines serving
Argentina are restructuring.
S&P said, "Although we note that AA2000's ability to weather the
pandemic has improved after its debt restructuring, and more
recently after it improved liquidity, the margin of deviation from
our base-case assumptions remains slim because the company has
already implemented many measures to reduce cash burn during the
lockdown. We expect liquidity to remain tight, given that cash
flows will remain subdued as long as air traffic lockdown isn't
eased."
ARGENTINA: Commercial Flights Could Restart in October
------------------------------------------------------
Buenos Aires Times reports that international and domestic
commercial flights to and from Argentina could restart next month,
according to reports.
Multiple outlets, both local and international, said that officials
are planning to end one of the world's strictest coronavirus travel
bans in the coming weeks, with October pencilled in as a potential
restart date for international connections, according to Buenos
Aires Times.
Flights have been grounded in Argentina since March 20, when the
government imposed a nationwide lockdown to tackle the spread of
Covid-19 in Argentina, shuttering all the country's borders, the
report notes. Only limited exceptions have been authorized, with
most dedicated to the repatriation of Argentines stranded overseas
during the coronavirus pandemic, the report relays.
Transport Minister Mario Meoni said that his team had finished
drawing up health and safety protocols for both passengers and
aviation staff and were in the process of presenting them to the
Presidency, the report relays.
He confirmed that talks on the matter had taken place with Cabinet
Chief Santiago Cafiero and said he hoped news of an announcement
would be ready "in the next few days," the report notes.
"We have finalised the aeronautical transport protocols, with the
different operators of the system. Not only the protocol for
passengers inside the plane, but also for their reception in
airports," said Meoni, the report relays.
Quoting an anonymous government source, Reuters reported that
companies would be given 30 days to prepare for flights to restart,
though the official stressed that the ultimate decision to put
planes in the sky had not been taken by President Alberto
Fernandez, the report notes.
"We have a unified protocol and we are submitting a proposal to the
president for the resumption of domestic flights next month," said
Meoni, the report discloses.
"Obviously, we understand that there are situations in which some
provinces will limit the possibilities of flying, but giving the
power to each of them, so that you have the definitive option of
saying 'yes' or 'no' to the arrival of a domestic flight or from a
certain province," added the minister, the report relays.
Meoni also confirmed intentions to allow the restart of all modes
of transport, saying that long-distance coach and train options
were also in the pipeline, in order to cater to low-income sectors
of the population, the report says.
Lobby groups are increasing pressure on the government to restart
flights. The International Air Transport Association (IATA) accept
any further postponements, the report notes.
"It needs clarification as soon as possible as to when flights can
resume, especially since all the [necessary] biosecurity protocols
are already in place," said the organization, the report
discloses.
Peter Cerda, the IATA's Vice-President for the Americas, said that
further delays would "reduce Argentina's international
connectivity," the report adds.
About Argentina
Argentina is a country located mostly in the southern half of
South America. It's capital is Buenos Aires. Alberto Angel
Fernandez is the current president of Argentina after winning the
October 2019 general election. He succeeded Mauricio Macri in the
position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019 according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
As reported by the Troubled Company Reporter - Latin America on
April 14, 2020, Fitch Ratings upgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating to 'CC' from 'RD' and
Short-Term Foreign Currency IDR to 'C' from 'RD'.
The TCR-LA reported on April 13, 2020, that S&P Global Ratings
also lowered its long- and short-term foreign currency sovereign
credit ratings on Argentina to 'SD/SD' from 'CCC-/C'. S&P also
affirmed the local currency sovereign credit ratings at 'SD/SD'.
There is no outlook on 'SD' ratings.
On April 9, the TCR-LA reported that Moody's Investors Service
downgraded the Government of Argentina's foreign-currency and
local-currency long-term issuer and senior unsecured ratings to Ca
from Caa2.
ARGENTINA: Defuses Default Crisis With Massive Debt Deal
--------------------------------------------------------
Hugh Bronstein, Walter Bianchi, Adam Jourdan at Reuters report that
Argentina has defused fears of a messy default after it gained
backing from creditors, allowing it to exchange 99% of the bonds
involved in a $65 billion restructuring, a deal that could set a
precedent for future sovereign crises.
After months of winding and tense negotiations, framed by the
coronavirus pandemic, bondholders tendered 93.55% of the eligible
bonds in the exchange, Economy Minister Martin Guzman said at a
news conference, according to Reuters.
"In recent days we have worked on the conditions of an offer that
gained massive acceptance by our creditors as a result of the
dialogue process in past months," Guzman said, the report relays.
A strong deal is a major win for Argentina, Latin America's No. 3
economy, as it looks to escape from its ninth sovereign default and
revive an economy in its third year of recession and expected to
contract around 12.5% this year, the report notes.
Reuters reported, when the deal deadline closed, that the
government was confident of high creditor support after winning
over its main three creditor groups to a deal in principle earlier
in August.
Reuters discloses that President Alberto Fernandez, who took power
in December, said Argentina had been in a "labyrinth" of debt that
had now been solved. He thanked allies, including Pope Francis, an
Argentine, and Mexican President Andres Manuel Lopez Obrador, the
report relays.
The government said the deal and a separate restructuring of local
law dollar debt combined would bring financial relief of $37.7
billion over the 2020-2030 period, and help cut average interest
payments on foreign law bonds to 3% from 7%, the report notes.
Now there are other challenges, the first of which is to reactivate
the domestic market," Fernandez said at the Casa Rosada
presidential palace, the report says.
What Next?
Guzman said Argentina now needed to turn attention to sealing a new
program with the International Monetary Fund to replace a defunct
$57 billion facility agreed in 2018, as well as tackling provincial
debt amid various smaller regional restructurings, the report
relays.
He said the government planned to send a 2021 budget bill to
Congress in mid-September, which would include a forecast for a
primary fiscal deficit next year of around 4.5%, the report
relates. A new deal with the IMF is unlikely before March next
year, said Guzman, the report notes.
The 1% of bonds that did not meet collective action clause (CAC)
thresholds of support for a restructuring indicates there were some
pockets of holdouts on individual bonds, though Guzman told
reporters it was not a major issue and would be resolved, the
report discloses.
The bonds being restructured have CACs that mean the government
needs a certain level of support to restructure them, the report
relays. Older 2005 indenture bonds require a combined 85% of
creditor support, with two-thirds of support needed on each
individual series, the report discloses.
The strong support and few holdouts stands in contrast to
Argentina's 2005 debt restructuring, which saw creditors holding
around a quarter of bonds reject a deal, leading to over a decade
of legal battles, the report relates.
I was expecting them to easily clear the CAC threshold on most of
the bonds, but this result was on the high side of my
expectations," said Ajata Mediratta, president of Greylock Capital
Management in New York, which was involved in the talks, the report
notes.
Eduardo Levy Yeyati, an economist at Torcuato Di Tella University,
said the good result underscored the important role of CACs,
similar to what had happened with a recent successful restructuring
in Ecuador, the report discloses.
"Once the government made a realistic offer acceptable to
creditors, the CACs induced the rest to get on board, dissuading
holdouts and avoiding costly litigation," he said. We now have
four years ahead of us to implement the policies that make this
swap a sustainable solution," he added.
About Argentina
Argentina is a country located mostly in the southern half of
South America. It's capital is Buenos Aires. Alberto Angel
Fernandez is the current president of Argentina after winning the
October 2019 general election. He succeeded Mauricio Macri in the
position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal
year 2019 according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
As reported by the Troubled Company Reporter - Latin America on
April 14, 2020, Fitch Ratings upgraded Argentina's Long-Term
Foreign Currency Issuer Default Rating to 'CC' from 'RD' and
Short-Term Foreign Currency IDR to 'C' from 'RD'.
The TCR-LA reported on April 13, 2020, that S&P Global Ratings
also lowered its long- and short-term foreign currency sovereign
credit ratings on Argentina to 'SD/SD' from 'CCC-/C'. S&P also
affirmed the local currency sovereign credit ratings at 'SD/SD'.
There is no outlook on 'SD' ratings.
On April 9, the TCR-LA reported that Moody's Investors Service
downgraded the Government of Argentina's foreign-currency and
local-currency long-term issuer and senior unsecured ratings to Ca
from Caa2.
===============
B A R B A D O S
===============
BARBADOS: COVID-19 Pandemic Has Had a Major Impact on Economy
-------------------------------------------------------------
At the request of the Government of Barbados, an International
Monetary Fund (IMF) team led by Bert van Selm conducted a staff
visit via videoconferencing between August 25-28, 2020 to discuss
implementation of Barbados' Economic Recovery and Transformation
(BERT) plan, supported by the IMF under the Extended Fund Facility
(EFF). To summarize the mission's findings, Mr. van Selm made the
following statement:
"The COVID-19 pandemic has had a major impact on Barbados' economy,
with a double-digit decline in economic activity projected for
2020. Tourism came to a virtual standstill between March and June
2020: airlift declined precipitously, most hotels closed, and
occupancy plummeted at facilities that remained open. In early
July, the island cautiously started reopening the economy for
international tourists, after the authorities effectively halted
local transmission of the disease.
"In this very challenging environment, Barbados continues to make
good progress in implementing its ambitious and comprehensive
economic reform program, while expanding critical investments in
social protection. International reserves, which reached a low of
US$220 million (5-6 weeks of import coverage) at end-May 2018, are
now in excess of US$1 billion. All indicative targets for end-June
under the EFF were met. The targets for international reserves, net
domestic assets and the primary balance were met with some margin,
which bodes well for meeting the end-September EFF targets.
"Good progress also continues to be made towards implementing
structural reform under the EFF. The two structural benchmarks for
end-June 2020, related to tax and customs administration, were both
met. A revised central bank law is expected to be ready to be sent
to Parliament in September.
"The team is looking forward to conducting discussions for the
fourth review under the EFF in late October and would like to thank
the authorities and the technical team for their openness and
candid discussions."
===========
B R A Z I L
===========
BRAZIL: Influenced by Pandemic, Airfare Prices Drop 34% During Q2
-----------------------------------------------------------------
Oliver Mason at Rio Times Online report that the price of flight
tickets in Q2 dropped 34.3 percent compared to the same period last
year, according to data from the National Civil Aviation Agency
(ANAC).
According to ANAC, this was the greatest price reduction recorded
in Q2 in 11 years, the report notes.
From April to June, the average flight price sold in Brazil was
BRL294.92 (US$59), compared to BRL448.65 recorded the year before,
according to Rio Times Online.
The period was marked by stricter restrictive, the report relays.
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
As reported in the Troubled Company Reporter-Latin America on May
8, 2020, Fitch Ratings affirmed Brazil's Long-Term Foreign Currency
Issuer Default Rating at 'BB-' and has revised the Rating Outlook
to Negative. The Outlook revision to Negative reflects the
deterioration of Brazil's economic and fiscal outlook, and downside
risks to both given renewed political uncertainty, including
tensions between the executive and congress, and uncertainty over
the duration and intensity of the coronavirus pandemic.
On April 10, 2020, the TCR-LA reported that S&P Global Ratings
revised on April 6, 2020, its outlook on its long-term ratings on
Brazil to stable from positive. At the same time, S&P affirmed its
'BB-/B' long- and short-term foreign and local currency sovereign
credit ratings. S&P also affirmed its 'brAAA' national scale rating
and its transfer and convertibility assessment of 'BB+'. The
outlook on the national scale rating remains stable.
BRAZIL: Judges Uphold Suspension of Rio Governor
------------------------------------------------
EFE News reports that Brazil's highest court upheld the six-month
suspension of Rio de Janeiro state Gov. Wilson Witzel pending an
investigation into charges he diverted public funds meant to pay
for materials to be used in battling the coronavirus pandemic.
The Special Court, a panel comprising the Superior Tribunal's
most-senior members, voted 14-1 to confirm the ruling by Judge
Benedito Gonçalves in response to a motion from the federal
Attorney General's Office, according to EFE News.
Under Brazilian law, cases involving senior elected officials must
be heard by the Special Court, the report notes.
Prosecutors contend that the governor used wife Helene Witzel's law
firm as a conduit for roughly 500,000 reais ($91,000) in kickbacks
on contracts for the acquisition of medical supplies, the report
says.
In June, the Rio state legislature began impeachment proceedings
against Wilson, a 52-year-old former jurist, the report discloses.
"I respect the decision of the Superior Tribunal of Justice. I
understand the conduct of the magistrates in the face of the
gravity of the facts presented, but I reaffirm that I never
committed illicit acts," Gov. Witzel said, the report relays.
The governor said that there was "no evidence" to support the
charges against him and his wife, brought by prosecutors he
described as being close to the family of President Jair Bolsonaro,
especially to the head of state's son Sen. Flavio Bolsonaro, who is
himself under investigation for corruption, the report notes.
The Rio governor and the president are both rightists and used to
be political allies, but fell out amid indications that Wilson has
presidential ambitions and their relationship has come under
further strain because of the pandemic, the report discloses.
Bolsonaro remains cavalier about Covid-19, which has claimed nearly
124,000 lives in Brazil, while Wilson has implemented firm measures
aimed at slowing the spread of the virus, the report says.
Rio de Janeiro state accounts for more than 16,000 Covid-19
deaths.
Among the two-dozen other people implicated in the Witzel case are
the speaker of the Rio state assembly, Andre Ceciliano of the
center-left Workers Party, and Everaldo Pereira, a politician and
evangelical pastor who ran for president in 2014 with backing from
then-congressman Jair Bolsonaro, the report relays.
Lt. Gov. Claudio Castro will take charge of the state government in
Witzel's absence, even though he is also a target of the corruption
probe, the report says.
All of Wilson's predecessors as Rio de Janeiro governor going back
to the start of this century have spent time behind bars and one of
them, Sergio Cabral, is serving a 294-year sentence for corruption
offenses during his 2007-2014 tenure, the report adds.
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
As reported in the Troubled Company Reporter-Latin America on May
8, 2020, Fitch Ratings affirmed Brazil's Long-Term Foreign Currency
Issuer Default Rating at 'BB-' and has revised the Rating Outlook
to Negative. The Outlook revision to Negative reflects the
deterioration of Brazil's economic and fiscal outlook, and downside
risks to both given renewed political uncertainty, including
tensions between the executive and congress, and uncertainty over
the duration and intensity of the coronavirus pandemic.
On April 10, 2020, the TCR-LA reported that S&P Global Ratings
revised on April 6, 2020, its outlook on its long-term ratings on
Brazil to stable from positive. At the same time, S&P affirmed its
'BB-/B' long- and short-term foreign and local currency sovereign
credit ratings. S&P also affirmed its 'brAAA' national scale rating
and its transfer and convertibility assessment of 'BB+'. The
outlook on the national scale rating remains stable.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Abinader Takes a Chainsaw to Gov. Agencies
--------------------------------------------------------------
Dominican Today reports that President Luis Abinader created the
State Organs Liquidation Commission and established the overall
procedure to be followed.
The first article indicates that for the direction and coordination
of the dissolution and liquidation of one of the organs of the
State, one or more commissions will be formed that will be chaired
by Presidency chief of staff, Lisandro Macarrulla, according to
Dominican Today.
The decree also establishes that the commission will coordinate
with the "corresponding bodies" the issues related to the personnel
working in the institutions to be eliminated, the property and real
estate and the assets and liabilities that they possess, the report
notes.
It says that the Ministry of Public Administration, the General
Budget Office and the Office of the Comptroller will adopt the
corresponding measures after reviewing each particular case of the
agencies that will be subject to "suppression or restructuring,"
the report relays.
Abinader has announced the elimination of various agencies such as
the Office of State Works Supervisory Engineers (Oisoe), the
Patrimonial Fund of Reformed Companies (Fonper), among others, the
report relates.
In addition to the restructuring of the State Electric Utility
(Cdeee), which will become part of the Ministry of Energy and
Mines, the State Sugar Council will be part of National Assets, the
report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.
The Troubled Company Reporter-Latin America reported in April 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 negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).
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 in April 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 negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).
DOMINICAN REPUBLIC: INESPRE Starts Sales of Bananas From Barahona
-----------------------------------------------------------------
Dominican Today reports that the Price Stabilization Institute
(INESPRE) started the sale of bananas from Barahon at 7 pesos per
unit through its mobile warehouse programs.
The food was purchased from producers in Tamayo, Vicente Noble, and
other areas of the country's southern region, which were affected
by the passage of storm Laura, by the President of the Republic,
Luis Abinader, according to Dominican Today.
Ivan Hernandez Guzman, director of Inespre, reported that as of
September 1, fifteen trucks would leave daily to low-income
countries to sell bananas the population, the report notes.
The product will be shipped in packages of seven units for a price
of 50 pesos, the report relays.
"The President of the Republic visited the affected areas as we did
and asked the institutions of the agricultural sector to assist
those affected immediately, so we are acquiring more than a million
units of food," said the director of the entity state, the report
notes.
Last September 1, 2020, the Inespre mobile warehouses was to visit
many sectors of the Santo Domingo Oeste municipality such as
Bayona, Arroyo Bonito, Palmar de Herrera, Buenos Aires, El Cielo,
Las Palmas, Libertador, La Venta, Palave, Manoguayabo, Hato Nuevo,
Ensanche Altagracia, Guajimía, Batey Bienvenido, Juan Pablo Duarte
and El Enriquillo, the report relays.
While they will visit Evaristo Morales, Mata Hambre, Kilometer 13
de la Sanchez, Ensanche Espaillat, La Agustinita, Simon Bolivar, La
Canita, Capotillo, Los Guandules, Cristo Rey, María Auxiliadora,
La Cienaga, Guachupita in the National District and the Farallones
in Santo Domingo Este, the report discloses.
While the banana sales will take place in La Esperanza-Villa Faro,
Villa Esfuerzo, San Jose de Mendoza, Catanga Los Mina, Mendoza, El
Bonito de San Isidro, Ensanche Isabelita, Cancino Adentro, El
Tamarindo, Brisas el Eden , Iglesia Hermanos Unidos en Cristo,
Vietnan de Los Mina, Los Mameyes, El Perla and Invivienda in the
municipality of Santo Domingo Este, the report relays.
They will be able to benefit from the purchase of items at low
costs in La Pina de Los Alcarrizos, Canacon Pantoja, Carmen Renata
I, El Chucho de los Alcarrizos, Savica Los Alcarrizos, Las Flores-
La Guayiga, Los Coquitos-La Guayiga, La Guayiga , Los Platanitos in
Pantoja, Progreso sector, Los Humildes de Pantoja, Villa Las
Colinas old Los Patos, Freddy Beras Goico Los Alcarrizos and in
Pueblo Nuevo Los Alcarrizos, sectors of the Santo Domingo province,
the report adds.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district.
The Troubled Company Reporter-Latin America reported in April 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 negative outlook (April 2020). Moody's credit rating for
Dominican Republic was last set at Ba3 with stable outlook (July
2017). Fitch's credit rating for Dominican Republic was last
reported at BB- with negative outlook (May 8, 2020).
=============
E C U A D O R
=============
ECUADOR SOCIAL: Fitch Hikes Class B Repack Notes to 'B-sf'
----------------------------------------------------------
Fitch Ratings has upgraded the ratings of the class B 144A/Reg S
notes issued by Ecuador Social Bond S.a.r.l. (ESB) to 'B-sf' from
'CCsf' and affirmed the class A 144A/Reg S notes at 'AAAsf'. Fitch
has also placed the class B notes on Outlook Stable while
maintaining the current Outlook Stable on the class A notes. The
rating action on the B notes follows Fitch's upgrade of Ecuador's
ratings on September 3, 2020 to 'B-' from 'RD'.
The upgrade of Ecuador's rating to 'B-' reflects the completion of
a "distressed debt exchange" (DDE) that Fitch deems to have cured
the default event initiated by the "consent solicitation" in April.
The Outlook is Stable. Despite deep economic challenges and
political uncertainty, the DDE has helped support near-term
repayment capacity by greatly reducing near-term debt service and
paving the way for a new 27-month USD6.5 billion Extended Fund
Facility (EFF) with the IMF. Fitch expects any government will have
incentives to honor the debt deal following upcoming elections in
2021, but election risks pose significant uncertainty around
commitments under the EFF and appetite for reforms and fiscal
adjustment. The ratings assigned to the new bonds are 'B-', in line
with the Long-Term Foreign Currency IDR.
RATING ACTIONS
Ecuador IDB Repack
Cl. A (secured) XS2106052827; LT AAAsf Affirmed; previously AAAsf
Cl. B (secured) XS2106053635; LT B-sf Upgrade; previously CCsf
TRANSACTION SUMMARY
The Social Bond, issued by Ecuador and partially guaranteed by the
Inter-American Development Bank (IDB; AAA/Stable), is the asset
backing the class A and B notes (together, the repack notes). The
assigned ratings address timely payment of interest and principal
on a semiannual basis.
KEY RATING DRIVERS
Social Bond's Credit Profile: The Social Bond issued by the
Republic of Ecuador is the asset backing the class A and B notes
issued by ESB. The Social Bond shares all characteristics of other
external indebtedness of Ecuador. The only difference is that its
proceeds are for specific investment in Ecuador's social housing
program and its debt service benefits from a partial credit
guarantee by the IDB.
IDB's Partial Credit Guarantee: The partial credit guarantee
between the IDB and ESB as initial purchaser of the Social Bond
partially covers Ecuador's failure to meet its obligations on the
Social Bond. After Ecuador's default on the Social Bond, all draws
from the IDB guarantee will be exclusively applied by the Trustee
to cover 100% of class A's debt service, covering a percentage of
the underlying Social Bond. The IDB guarantee effectively covers
100% of the class A notes issued by ESB within the 23-day cure
period.
IDB's Strong Credit Quality: The rating assigned to the class A
notes is commensurate with the Issuer Default Rating (IDR) of the
guarantee provider. IDB is rated 'AAA'/Stable.
Strength of the Partial Guarantee: IDB's obligations under the
guarantee will constitute direct, unsecured obligations of IDB. The
guarantee is comprehensive in scope, ensuring timely payment of
debt service on the class A notes through the financing structure.
Class B Notes Credit Quality: Given that all flows from the IDB
guarantee will be applied to the class A notes to meet debt service
according to the guarantee's schedule, a default by Ecuador under
its obligations of the Social Bond would lead to a default of ESB's
obligations under the class B notes. On April 20, Ecuador was
downgraded to 'RD' following the agreement by commercial
bondholders to the government's consent solicitations to defer
upcoming bond repayments by four months, which Fitch deemed to be
the first step in a DDE that will have concluded when an intended
comprehensive restricting of these securities is carried out that
normalizes the relationship with the international financial
community. On August 31, the Ecuadorian authorities completed an
exchange of 10 sovereign bonds for four new ones, after having
received acceptance of their offer from bondholders (98%) well
above the thresholds set in the collection action clauses (CACs).
On September 3, 2020, Fitch upgraded Ecuador's IDR to 'B-', which
reflects the completion of a DDE that Fitch deems to have cured the
default event initiated by the consent solicitation in April.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- The class A notes ratings are linked to the Long-Term Foreign
Currency IDR of the IDB, currently rated 'AAA'/Stable, which is the
highest rating assigned by Fitch.
-- The ratings on the class B notes could be upgraded if
Ecuador's IDR, currently rated 'BB-'/Stable, is upgraded.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- The class A notes' ratings are linked to the Long-Term Foreign
Currency IDR of the IDB; hence, a downgrade of the IDB's IDR would
trigger a downgrade of class A notes in the same proportion.
-- The class B notes' credit quality reflects the rating of
Ecuador and, thus, is sensitive to changes in Ecuador's Long-Term
IDR. Hence, a downgrade to Ecuador's IDR would trigger a decrease
in the class B note ratings in the same proportion.
=================
G U A T E M A L A
=================
GUATEMALA: IDB OKs $100M Loan to Help Vulnerable People Fight COVID
-------------------------------------------------------------------
The Inter-American Development Bank has approved a $100 million
project to support vulnerable populations in Guatemala which have
been affected by emergency measures taken to battle the COVID-19
pandemic. The goal is ensure a minimum income for these people
right now and as the country recovers from the health crisis, with
the help of a family voucher.
Before the pandemic hit in Guatemala, nearly 85 per cent of the
population lived in poverty or in a precarious situation, meaning
they have no way to sustain their consumption level against
temporary shocks or drastic reductions in their daily income such
as those triggered since the start of the pandemic. In fact, recent
data from greater Guatemala City show that 70 per cent of those
questioned saw their income fall, half of them by more than 25 per
cent.
The program will consist exclusively of money transfers carried out
with a so-called Family Voucher. The eligible beneficiaries of this
project will be people living in homes with no electricity or in
places with high levels of poverty, as well as those with access to
fewer than 200kWh of electricity per month as measured in February
of this year.
This funding aims to help vulnerable people maintain minimum levels
of consumption amid the pandemic, which has hindered their ability
to earn money. The goal is to help people that live without
electricity, who will account for around 10 per cent of those who
receive the family voucher, and indigenous people, in particular
those who also lack electricity in their homes.
The $100 million operation has a reimbursement period of 23.5 years
and will be carried out over 18 months, and features an interest
rate pegged to the LIBOR.
=====================
P U E R T O R I C O
=====================
ASCENA RETAIL: Sept. 16 Auction of Catherines Assets Set
--------------------------------------------------------
Judge Kevin R Huennekens of the U.S. Bankruptcy Court for the
Eastern District of Virginia authorized the bidding procedures
proposed by Ascena Retail Group, Inc. and affiliates in connection
with the sale of their right, title, and interest in and to
Catherines Plus Sizes assets, including: (i) specified Contracts,
if assignable under applicable law; (ii) Transferred Intellectual
Property and rights to collect royalties and proceeds in connection
therewith from and after the Closing; (iii) Inventory that is held
or otherwise designated for sale via the E-Commerce Business; (iv)
Customer Data; and (vi) all Documents to the extent related to the
E-Commerce Business, to City Chic Collective USA, Inc. for $16
million cash, plus the assumption of Assumed Liabilities, plus
payment of the Inventory Surplus, minus (C) the Inventory Deficit,
subject to overbid.
The following Stalking Horse Protections are approved and the
Debtors are authorized to incur and pay the Stalking Horse
Protections: (i) a Break-Up Fee in the amount of the lesser of
$600,000 or three percent of the Purchase Price; and (ii) Expense
Reimbursement in an amount up to $200,000.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: Sept. 11, 2020 at 5:00 p.m. (ET)
b. Initial Bid: At a minimum, each Bid must have a Purchase
Price equal to, or in excess of, the sum of $16 million plus the
Initial Minimum Overbid Amount.
c. Deposit: 10% of the aggregate purchase price of the Bid
d. Auction: If one or more Qualified Bids (other than the
Stalking Horse Bid) are received by the Bid Deadline with respect
to any applicable assets, then the Debtors will conduct the Auction
with respect to such assets. The Auction for the Catherines Assets
will commence on Sept. 16, 2020 at 10:00 a.m. (ET) via
videoconference or such other form of remote communication arranged
by counsel to the Debtors, or such later time or other place as the
Debtors determine, in which case the Debtors will timely notify the
Stalking Horse Bidder and all other Qualified Bidders of such later
time or other place, and file a notice of the change on the
Bankruptcy Court's docket for these chapter 11 cases.
e. Bid Increments: $100,000
f. Sale Hearing: Sept. 21 2020 at 11:00 a.m. (ET)
g. Sale Objection Deadline: Sept. 18, 2020 at 12:00 p.m. (ET)
As soon as reasonably practicable after the conclusion of the
Auction, if any, but no later than two business days thereafter,
the Debtors will file the Post-Auction Notice identifying the
Successful Bidder. Within five business days of the filing of the
Post-Auction Notice and, if the Successful Bidder is not the
Stalking Horse Purchaser, the Debtors will file a notice detailing
The Expense Reimbursement proposed to be paid to the Stalking Horse
Purchaser.
The Assumption and Assignment Procedures regarding the assumption
or assumption and assignment of the Catherines Executory Contracts
proposed to be assumed by the Debtors and assigned to a Successful
Bidder are approved. No later than Sept. 4, 2020, if applicable,
the Debtors will file with the Court and serve the Cure Notice on
all non-Debtor contract counterparties to the Catherines Executory
Contracts and their counsel, if known. The Cure Objection Deadline
is within 14 days of the date of service of the Cure Notice, at
5:00 p.m. (ET).
The Order is without prejudice to the rights of Kobie Marketing,
Inc. to assert or raise any issue, claim, or objection related to
the Sale, including any assumption of liability to Kobie,
assumption of any executory contract of Kobie, or proposed new
contract for Kobie's services.
All time periods set forth in the Order will be calculated in
accordance with Bankruptcy Rule 9006(a).
The Order will be immediately effective and enforceable upon its
entry.
A copy of the Bidding Procedures and Stalking Horse APA is
available at https://tinyurl.com/yycp8xke from PacerMonitor.com
free of charge.
About Ascena Retail Group
Ascena Retail Group, Inc. (Nasdaq: ASNA) --
http://www.ascenaretail.com/-- is a national specialty retailer
offering apparel, shoes, and accessories for women under the
Premium Fashion (Ann Taylor, LOFT, and Lou & Grey), Plus Fashion
(Lane Bryant, Catherines and Cacique), and Value Fashion
(Dressbarn) segments, and for tween girls under the Kids Fashion
segment (Justice). Ascena, through its retail brands, operates
ecommerce websites and approximately 2,800 stores throughout the
United States, Canada, and Puerto Rico.
Ascena Retail reported a net loss of $661.4 million for the fiscal
year ended Aug. 3, 2019, a net loss of $39.7 million for the year
ended Aug. 4, 2018, and a net loss of $1.06 billion for the year
ended July 29, 2017.
On July 23, 2020, Ascena Retail Group and its affiliates sought
Chapter 11 protection (Bankr. E.D. Va. Case No. 20-33113). As of
Feb. 1, 2020, Ascena Retail had $13,690,710,379 in assets and
$12,516,261,149 in total liabilities.
The Hon. Kevin R. Huennekens is the case judge.
The Debtors tapped Kirkland & Ellis LLP and Cooley LLP as
bankruptcy counsel, Guggenheim Securities, LLC as financial
advisor, and Alvarez and Marsal North America, LLC as restructuring
advisor. Prime Clerk, LLC is the claims agent.
BETTERECYCLING CORP: Plan Exclusivity Extended to October 7
-----------------------------------------------------------
At the behest of Betterecycling Corporation, Judge Enrique S
Lamoutte Inclan of the U.S. Bankruptcy Court for the District of
Puerto Rico extended through and including October 7, 2020, and
December 6, 2020, respectively, the periods within which the Debtor
has the exclusive right to file and solicit acceptances to a
Chapter 11 plan.
Due to the proximity between the date in which appraisals are
expected to be received and the expiration of the exclusivity
period, the Debtor deems more proper and beneficial to the parties
and the estate to seek a brief extension of the exclusivity
periods.
Although the Debtor hoped for the prior 45 days extension to
provide the necessary time to complete this intended exercise, it
is widely known that current circumstances are not optimal and
challenging for the parties, agents, and professionals.
Since the filing of the petition, the Debtor has been managing its
affairs and operating its business. The Debtor seeks a reasonable
time which will allow parties to confer, address the feasibility of
their efforts, allow the lenders a reasonable space to go through
their decision-making structure, and for the parties to inform the
Court in a short timeframe as to the course to follow ahead.
About Betterecycling Corporation
Betterecycling Corporation produces gasoline, kerosene, distillate
fuel oils, residual fuel oils, and lubricants.
Based in San Juan, P.R., Betterecycling Corporation filed a
voluntary petition under Chapter 11 of the Bankruptcy Code (Bankr.
D.P.R. Case No. 17-04157) on Jun. 9, 2017.
The Honorable Enrique S. Lamoutte oversees the case. Lugo Mender
Group, LLC is the Debtor's legal counsel.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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