/raid1/www/Hosts/bankrupt/TCRLA_Public/201117.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, November 17, 2020, Vol. 21, No. 230
Headlines
A R G E N T I N A
ARGENTINA: Battle-Scarred Creditors Demand Tough IMF Stance
IRSA INVERSIONES: S&P Cuts ICR to 'SD' on Completed Exchange Offer
B A H A M A S
BAHAMAS: S&P Lowers Long-Term Sovereign Credit Ratings to BB-
B O L I V I A
BOLIVIA: Morales Insists He Was Ousted in Coup
B R A Z I L
BRAZIL: Expects Rice Production to Shrink, May Limit Exports
C O L O M B I A
AVIANCA HOLDINGS: To Pursue Restructuring Without Government Loan
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Opinions Differ Regarding Extension of Curfew
DOMINICAN REPUBLIC: Recovery and Sustainability are Top Priorities
P U E R T O R I C O
JJE INC: Unsecured Creditors to Recover 20% Over 6 Years
V E N E Z U E L A
VENEZUELA: Suspends International Flights Until February 2021
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A R G E N T I N A
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ARGENTINA: Battle-Scarred Creditors Demand Tough IMF Stance
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Marc Jones at Reuters reports that Argentina's international
creditors, scarred by this year's turbulent debt restructuring,
want the new International Monetary Fund program the country is
seeking to come with ultra-rigorous conditions.
Argentina and its provinces restructured $100 billion of debt two
months ago, but the country's bonds have lost nearly 30% since
their relaunch as worries about the government's economic strategy
have persisted, according to Reuters.
Economy Minister Martin Guzman, who led the restructuring for Latin
America's No. 3 economy, said Argentina would seek an IMF Extended
Fund Facility (EFF) to replace the failed $57 billion program
agreed under Mauricio Macri's government, the report relays.
An EFF is a longer-term programme that typically requires more
economic reforms than 'standby' IMF agreements, the report notes.
A tougher stance is something creditors will welcome, the report
relates.
"We want the programme structured so the debt is declared (by the
IMF) as sustainable with a high probability," said Mangart
Advisors' Riccardo Grassi, who was heavily involved in the recently
finalized debt deal, the report discloses.
"If we have to say, 'no, this program to us doesn't work,' then
that is something that we will say," he said, adding creditors were
prepared to write to the IMF too if needed, the report relays.
The main investor groups have already raised concerns that
Argentina has "failed to restore confidence" since their
restructuring agreement provided around $70 billion of debt relief,
the report says.
It is headed for a near 12% economic contraction this year due to
the coronavirus pandemic and is locked in a spiralling currency
crisis with dwindling reserves that has seen the peso changing
hands in the black market at roughly half its official value, the
report notes.
The IMF could recommend a steep official devaluation to try and
solve the problem though it would be a difficult politically for
the government, which vowed just last month that it would not do
so, the report relays.
Mangart's Grassi, thinks there could be a middle ground. Instead of
one big devaluation, there could be small monthly 1%-1.5%
devaluations for up to a year providing more time for the country
to adjust, the report discloses.
The devaluation and differences over spending could see the IMF and
government's talks roll into next year, but they are key issues all
investors see as crucial to get the country back on track, the
report relays.
"Getting the currency under control would be good but I'm not sure
if there is any magic solution," said North Asset Management's
Peter Kisler, who also holds Argentine bonds, the report notes.
"There is a lack of faith in the government at the moment and the
technicals aren't good, but you have to try look forward," 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.
Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.
Fitch's credit rating for Argentina was last reported at CCC with
n/a outlook, a rating upgrade from CC on Sept. 11, 2020. DBRS'
credit rating for Argentina is CCC with n/a outlook, a rating
upgrade on Sept. 11, 2020. Moody's credit rating for Argentina was
last set at Ca, a rating downgrade from Caa2 on April 4, 2020, with
a negative outlook.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds. DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.
DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement. Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.
IRSA INVERSIONES: S&P Cuts ICR to 'SD' on Completed Exchange Offer
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S&P Global Ratings lowered its issuer credit ratings on
Argentina-based real estate company, IRSA Inversiones y
Representaciones S.A. (IRSA) to 'SD' from 'CC'.
S&P said, "We lowered our ratings on IRSA following the completion
of the exchange offer for the 98.3% of its outstanding $181.5
million series I 10.00% senior unsecured notes due Nov. 14, 2020.
This is because we considered this transaction as distressed, given
the proximity of the bonds' maturity date, rather than as
oportunistic. In addition, the offering changes the original terms
and conditions, extending debt amortization, which in our view is
tantamount to a default in light of the rising country risk in
Argentina. This is despite the absence of a principal haircut,
while the coupon was maintained.
"We will re-evaluate the rating in the next few days, given that
IRSA's liquidity and amortization profile will improve following
the exchange. We would still limit our post-restructuring ratings
on IRSA to the one on Argentina (CCC+/Stable/C) and our 'CCC+'
transfer and convertibility assessment of the country; therefore,
the rating would be in the 'CCC' category."
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B A H A M A S
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BAHAMAS: S&P Lowers Long-Term Sovereign Credit Ratings to BB-
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On Nov. 12, 2020, S&P Global Ratings lowered its long-term foreign
and local currency sovereign credit ratings on the Commonwealth of
The Bahamas to 'BB-' from 'BB'. At the same time, S&P Global
Ratings revised down its transfer and convertibility assessment to
'BB' from 'BB+'. The outlook is negative.
Outlook
S&P said, "The negative outlook reflects our view that there is at
least a one-in-three chance that we could lower the ratings on The
Bahamas over the next year if the economic recovery in 2021 is
weaker, or more prolonged, than our base case, due to challenges
related to COVID-19 containment measures or a longer-term fall in
tourism. If such a scenario were to result in prolonged fiscal
deficits at current levels, or a weakened ability to obtain
funding, we could lower the ratings. In addition, we could lower
the ratings if the government's efforts to address weak public
finances prove to be ineffective or untimely.
"Alternatively, we could revise the outlook to stable over the next
12 months if risks of a more severe or prolonged outbreak were to
subside, and the country's economy and finances stabilized in line
with our forecast."
Rationale
The Bahamas entered the pandemic with little fiscal flexibility
owing to its sustained budgetary imbalances and high debt burden.
Although successive administrations have identified the need to
reform the country's finances, reforms have been slow and failed to
eliminate fiscal deficits. The failure to implement timely fiscal
reform and strengthen public sector finances has meant the country
has limited liquid financial assets to deploy during the pandemic;
at the same time, The Bahamas faces financing risks as it seeks to
fund large pandemic-related fiscal deficits and refinance existing
debt. S&P has lowered its institutional assessment of The Bahamas
due to the political challenge of addressing shortcomings in public
finances in an uncertain economic climate over the next one-two
years.
COVID-19 has triggered an economic shock that is more pronounced in
tourism-dependent countries like The Bahamas. The country's
important tourism sector was shut down in March. Although it has
since slowly reopened, arrival levels remain dramatically lower
than usual. The loss of tourism revenue worsens an already strained
external position. At the same time, a high debt burden limits the
country's fiscal flexibility, while the currency regime limits
monetary policy flexibility. S&P believes the economic impact of
the pandemic remains a considerable risk to The Bahamas;
consequently, it has maintained our negative outlook.
Institutional and economic profile: The economy will contract
dramatically in 2020 due to the external shock, which could make
public sector financial reform even more challenging.
-- The Bahamas' economy will suffer a severe contraction in 2020,
although S&P expects growth will resume over the next three years.
-- S&P does not expect material progress on fiscal reforms, given
the ongoing pandemic and upcoming election.
-- Continued delays in advancing structural reforms diminish the
sovereign's financial flexibility in the long term.
S&P said, "Since our review in April, we have revised our economic
growth expectations for The Bahamas, and now believe that the
economy will contract 21% in 2020, before a more gradual recovery
begins in 2021. Although we believe it will take several years for
nominal GDP to reach pre-pandemic levels, the country will benefit
from its strong marketing presence and easy access for visitors
from its main source market, the U.S. We expect 2020 GDP per capita
will be $28,400, and the weighted-average real GDP per capita trend
growth over a 10-year period will be negative 0.11%, which is below
that of sovereigns in the same GDP category.
The economy remains concentrated in the tourism sector, which
typically contributes at least 40% of GDP, but ground to a halt in
March when The Bahamas closed its borders. The country has slowly
reopened since June, but the tourism sector remains affected by
local and source-market COVID-19 outbreaks and local lockdowns and
quarantines. The most recent figures show that up to July 2020,
arrivals were down almost 62% year to date. The government
implemented a revised protocol for tourists beginning Nov. 1, which
eliminated the quarantine period and introduced revised testing
requirements. However, despite these changes, many resorts have not
yet reopened.
The government suspended its fiscal and debt targets under the
Fiscal Responsibility Act following Hurricane Dorian in September
2019. Although the government has continued its work on policies
and legislation in support of its fiscal responsibility mandate, it
has not enacted material revenue measures or sustained expenditure
cuts. Moreover, the current economic environment and upcoming
election in 2021 make difficult fiscal reforms unlikely in the
short term. The leadership of The Bahamian government has
alternated between the Free National Movement and the Progressive
Liberal Party over several decades. The ongoing delays and failure
to advance reform in key sectors of the economy will make it more
challenging for the government to finance larger fiscal deficits
and promote balanced economic growth over the longer term.
Flexibility and performance profile: Large fiscal deficits will
propel the debt burden.
-- The Bahamas is expected to post significant budget deficits in
the next two years.
-- The country has significant financing and refinancing needs.
-- Large external borrowing and high current account deficits will
continue to put pressure on The Bahamas' external position.
S&P said, "We expect the pandemic will have a significant impact on
the government's revenues and expenditures this year, through a
sharp contraction in tax collection and increased health and social
spending. We expect The Bahamas will have a deficit of $1.3 billion
in fiscal 2020-2021 (12.4% of GDP), in line with government
projections. We expect the change in general government net debt
will average 7.1% of GDP during 2020-2023, and 4.9% during
2022-2023. We believe the weak economy could limit the government's
ability and willingness to raise revenues through additional tax
measures."
The fiscal deficits will propel the government's net debt burden to
about 69.5% of GDP by the end of 2021, while interest payments will
remain above 15% of government revenues for three or more years.
S&P expects The Bahamas will finance its deficit with a combination
of domestic and external borrowing. In the past few years, most
government borrowing has been from domestic institutions; however,
commercial banks' exposure to the public sector is now close to 20%
of their assets and they might have less ability or appetite to
absorb additional exposure. The government has to fund sizable
projected fiscal deficits of $1.3 billion in fiscal 2020-2021
(12.4% of GDP) and $813 million (7.0% of GDP) in 2021-2022. In
October, it issued a $600 million external bond.
The government has funded most of its 2020-2021 deficit externally
through a combination of bonds, bank lending, and multilateral
institutions. It has already issued a $600 million bond and
borrowed $240 million from multilateral institutions. Although
external financing helped support The Bahamas' foreign exchange
reserves, it raised the country's external indebtedness. S&P
expects the external debt of the public and financial sectors, net
of usable reserves and financial sector external assets, will be
about 117% of current account receipts in 2020. These figures
include the government's $2.25 billion in external bonds, but do
not include the external debt and foreign direct investment in the
islands' substantial tourism sector.
S&P said, "Based on the gross external liabilities of the country's
large banking sector, we expect the gross external financial needs
of the public and financial sectors will be 352% of current account
receipts in 2020, up from about 200% in 2019. This also reflects
the high current account deficit, in part due to the significant
decline in tourism receipts, and the financial sector's high
rollover needs. However, we consider the financial sector's
external assets highly liquid, which somewhat diminishes liquidity
risk." Errors and omissions also contribute to a weak external
profile. Errors and omissions have historically been high and tend
to fluctuate.
The Bahamas' limited monetary and exchange rate flexibility
constrains its ability to respond to external shocks. The Bahamian
dollar is fixed at par with the U.S. dollar. At the onset of the
pandemic, the Central Bank of Bahamas took action to support the
foreign exchange reserves, which remain above $2 billion. S&P said,
"We expect that the central bank will continue to primarily rely on
a combination of interest rates, moral suasion, and macroprudential
tools to influence domestic credit growth. The central bank has
recently eased access to foreign currency and external financing
for entities with foreign currency inflows to stimulate business
activity. However, the limited nature of this measure and
restriction to sectors that generate foreign currency should dampen
the impact on the country's external accounts. Loss of
correspondent banking relationships remains a risk for The Bahamas,
as it does for many of the Caribbean sovereigns we rate. Although
we do not believe that this trend will threaten the banking
sector's ability to roll over its debt, we do think that it could
further stress the financial system. We believe this highlights the
importance of the central bank's new anti-money
laundering/counter-terrorist financing supervision regime, which
should strengthen compliance and assist in the maintenance of the
system's correspondent banks."
S&P considers banking sector contingent liabilities limited, given
the size of the sector, with assets estimated to be about 136% of
GDP. The financial sector is dominated by foreign subsidiaries of
Canadian banks, which comprise about two-thirds of domestic assets.
At the onset of the pandemic the commercial banking sector as a
whole had strong capital and liquidity ratios. Nevertheless, the
severe external shock could erode the asset quality and
profitability of those banks exposed to the tourism sector,
particularly as banks work to resolve the forbearance offered to
borrowers at the onset of the pandemic.
Environmental, social, and governance (ESG) factors relevant to the
rating action:
-- Health and safety
In accordance with our relevant policies and procedures, the Rating
Committee was composed of analysts that are qualified to vote in
the committee, with sufficient experience to convey the appropriate
level of knowledge and understanding of the methodology applicable.
At the onset of the committee, the chair confirmed that the
information provided to the Rating Committee by the primary analyst
had been distributed in a timely manner and was sufficient for
Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
Ratings List
Downgraded
To From
Bahamas
Transfer & Convertibility Assessment
Local Currency BB BB+
Bahamas
Senior Unsecured BB- BB
Downgraded; Ratings Affirmed
To From
Bahamas
Sovereign Credit Rating BB-/Negative/B BB/Negative/B
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B O L I V I A
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BOLIVIA: Morales Insists He Was Ousted in Coup
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EFE News reports that Bolivian former President Evo Morales, who
returned to his homeland after spending 12 months in exile in
Mexico and Argentina, reiterated that he was the victim of a coup
last year and said the Andean nation's vast lithium reserves were
the underlying motive.
Morales made his remarks at a press conference in which he spoke
about the plans he had developed while in office to industrialize
lithium, the main component of the rechargeable, lithium-ion
batteries that power electronic devices such as laptop computers
and cellphones, as well as electric vehicles, according to EFE
News.
During the media event, in which he insisted on discussing that
issue alone, the erstwhile head of state said the development of
Bolivia's lithium industry was put on hold during the one-year
tenure of rightist interim President Jeanine Anez but will be
resumed under Luis Arce, a former economy minister and Morales'
hand-picked successor, who won last month's twice-postponed, re-run
presidential election in a landslide and was inaugurated, the
report relays.
The press conference took place at a hotel facing the famed Uyuni
salt flats, where most of Bolivia's lithium reserves are located,
the report relays. Uyuni is one of the stops of an 800-vehicle
"caravan" that Bolivia's first indigenous president, who governed
the country from 2006 to 2019, is leading as part of his triumphant
homecoming celebration, the report notes.
The leftist Morales recalled that while in office he held talks
with senior South Korean and Japanese officials and offered to
supply their nations' industries with lithium-ion batteries
assembled in Bolivia, but he said they were not receptive to the
idea, the report discloses.
"After lots of meetings, I realized that the . . . industrialized
countries only want us Latin Americans to guarantee them (supplies
of) raw materials," Morales added.
"The struggle of humanity is always for control of natural
resources. Who do the natural resources belong to? The people,
under government management, or private interests via plundering by
the multinationals?" he added.
In that regard, "wherever the people are owners of their natural
resources, they arrange military bases and interventions and even
coups," Morales said, the report relays.
The ex-president continued that theme by recalling a Twitter
exchange in July of this year involving Elon Musk, the billionaire
CEO of American electric car manufacturer Tesla, the report notes.
A Twitter user who took exception to Musk's contention that a new
massive United States government coronavirus stimulus bill would
not be in the public interest said the real blow to the interests
of ordinary people was the US government's "organizing a coup
against Evo Morales in Bolivia so you could obtain the lithium
there," the report notes.
"We will coup whoever we want! Deal with it," the business leader
fired back flippantly.
"Tesla's owner says he financed the coup just for the lithium.
There's a lot of concern in the United States over lithium, and
this coup was for lithium. They don't want us to add value to
lithium as a state. They always want our resources to be in the
hands of the multinationals," Morales said.
The 61-year-old head of Bolivia's ruling Movement Toward Socialism
(MAS) party said he remains convinced that "in the future two or
three countries will determine global lithium prices" and therefore
urged the other Latin American countries to maintain sovereignty
over their natural resources, the report says.
"We as Latin Americans all have to contribute" to the goal of
narrowing the region's science and technology gap, Morales added.
The press conference took place on the second day of his journey
via convoy from Villazon, a southern Bolivian town on the border
with Argentina, to the central department of Cochabamba, the report
notes.
Different events and rallies are planned along the route, which
traverses his political stronghold, the report relays.
The convoy kicked off a few hours after Morales walked across a
border bridge linking Bolivia and Argentina, where the Bolivian
political icon had lived in exile for 11 months, the report
discloses.
Morales next will head toward the city of Oruro and is scheduled to
make an emotional stop in the hamlet of Orinoca, his birthplace,
the report relays.
His journey will conclude in Chimore, a coca-growing enclave near
the central province of Chapare, where Morales rose to prominence
as a coca-growers' leader decades ago, the report discloses.
The Bolivian leader departed his homeland on Nov. 11, 2019, from
Chimore via a Mexican air force plane and accepted an offer of
asylum in the Aztec nation, where he stayed for around a month, the
report adds.
As reported in the Troubled Company Reporter-Latin America on
Oct. 5, 2020, Fitch Ratings has downgraded Bolivia's Long-Term
Foreign Currency Issuer Default Ratings to 'B' from 'B+' and
revised the Rating Outlook to Stable from Negative.
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B R A Z I L
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BRAZIL: Expects Rice Production to Shrink, May Limit Exports
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Oliver Mason at Rio Times Online reports that Brazil's rice
production is expected to shrink and the challenge will be to limit
exports in order to supply domestic demand and contain domestic
prices.
According to the forecast of agricultural production released by
the Brazilian Institute of Geography and Statistics (IBGE), the
rice crop should have a smaller harvest in 2021, the report notes.
The production of paddy rice should decrease 2.4 percent next year,
to 10.8 million tons, according to Rio Times Online.
"The drop is related to productivity issues. But the expected
volume meets domestic demand, in the range of 10.5 million to 10.8
million tons," notes the report.
The challenge will be to keep the product in the country, since the
appreciation of the dollar against the real continues to stimulate
exports, adds Rio Times Online.
About Brazil
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.
Standard & Poor's credit rating for Brazil stands at BB- with
stable outlook (April 2020). Moody's credit rating for Brazil was
last set at Ba2 with stable outlook (April 2018). Fitch's credit
rating for Brazil was last reported at BB- with negative outlook
(May 2020). DBRS's credit rating for Brazil is BB (low) with stable
outlook (March 2018).
As reported in the Troubled Company Reporter-Latin America, Fitch
Ratings' outlook revision in May 2020 for Brazil 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.
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C O L O M B I A
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AVIANCA HOLDINGS: To Pursue Restructuring Without Government Loan
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Luis Jaime Acosta at Reuters reports that Avianca Holdings said it
has won the support of a large number of institutional investors
and existing lenders, meaning it will no longer need the Colombian
government's participation as part of its restructuring process.
Avianca, Latin America's second-largest airline, filed for Chapter
11 bankruptcy in New York in May, according to Reuters. A U.S.
bankruptcy court approved a proposed financing plan of over $2
billion to help the carrier exit Chapter 11 restructuring in
October, the report notes.
The airline was expecting $370 million in credit from the Colombian
government, the report relays. The move was suspended following a
judicial ruling, which Avianca initially looked to appeal, the
report discloses.
"Avianca has the financial flexibility at this stage to support its
operations and continue its restructuring without participation of
the Colombian government," the company said in a statement obtained
by the news agency.
The decision by Colombia's government to offer the loan to the
airline provoked fierce criticism from opposition politicians and
unions, the report relays.
The Colombian government was not immediately available to comment.
Colombia's flagship airline has a fleet of 158 planes and 19,000
employees, the report notes. It has routes to 76 destinations in
27 countries in the Americas and Europe, the report discloses. It
carried 30.5 million passengers in 2019, generating $4.6 billion in
sales, the report adds.
About Avianca Holdings
Avianca -- https://aviancaholdings.com/ -- is the commercial brand
for the collection of passenger airlines and cargo airlines under
the umbrella company Avianca Holdings S.A. Avianca has been flying
uninterrupted for 100 years. With a fleet of 158 aircraft, Avianca
serves 76 destinations in 27 countries within the Americas and
Europe.
Avianca Holdings S.A. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
20-11133) on May 10, 2020. At the time of the filing, Debtors
disclosed $7,273,900,000 in assets and $7,268,700,000 in
liabilities.
Judge Martin Glenn oversees the cases.
The Debtors tapped Milbank LLP as general bankruptcy counsel;
Urdaneta, Velez, Pearl & Abdallah Abogados and Gomez-Pinzon
Abogados S.A.S. as restructuring counsel; Smith Gambrell and
Russell, LLP as aviation counsel; Seabury Securities LLC as
financial restructuring advisor and investment banker; FTI
Consulting, Inc. as financial restructuring advisor; and Kurtzman
Carson Consultants LLC as claims and noticing agent.
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors in Debtor's bankruptcy cases on May 22, 2020.
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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: Opinions Differ Regarding Extension of Curfew
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Dominican Today reports that citizens of Greater Santo Domingo
showed different positions concerning the proposal put forward by
the former president, Leonel Fernandez, who suggests that the
curfew be eliminated in the country but that nightclubs and places
for the sale of alcoholic beverages remain closed.
While some understand that the government provision should be
eliminated since citizens do not respect it and "each person is
great and knows what is convenient for him," others understand that
the danger of contagion is still extreme and that the same should
be extended, according to Dominican Today.
"I believe that each person is an individual and knows what is best
for them. With the curfew, people do whatever they want, imagine
without a curfew, there is no conscience here," added Fausto, a
passerby approached by the Listin team during their visit to the
Colonial Zone, the report notes.
For his part, Alfredo Jose, a Spanish national, said, "that it is
good to extend the curfew, adding that it seems silly that the
measure begins at 7:00 at night (on weekends) since the virus is at
all hours," the report relays.
Meanwhile, Aurelio de Leon said that if the curfew is removed,
people will "believe that everything is gone (the pandemic), and
that is not the case, so he says he is not in favor of removing the
curfew, that it remains," the report discloses.
The issue brought several opinions for and against, after Leonel
Fernandez referred to the subject of the elimination of the curfew,
during a swearing-in activity of about 100 drivers of the Transport
Driver Movement (Mochotran), in the house Presidential Force of the
People, the report says.
Fernandez indicated on that occasion that in cities like New York,
Miami, Paris, there is no curfew and what they have done is close
bars, restaurants, cinemas, and other places where large numbers of
people tend to gather and that this is the modality that Dominican
authorities should follow, the report adds.
President Luis Abinader extended the current curfew until December
1. It runs from 9:00 at night to 5:00 in the morning and on
weekends, from 7:00 PM to 5:00 a.m.
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. Luis
Rodolfo Abinader Corona is the current president of the nation.
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: Recovery and Sustainability are Top Priorities
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Dominican Today reports that President Luis Abinader stressed that
economic recovery and sustainability are two of the pillars that
the government he leads has as its top priorities.
At the beginning of the construction of a biomass plant at the
Nestle factory in San Francisco de Macoris, the governor spoke at
the beginning of constructing a biomass plant, where he was
invited, according to Dominican Today.
Abinader was received by Pablo Wiechers, head of Nestle's market
for the Latin Caribbean region, who stated that they would
contribute to the national economy's relaunching by investing 70
million dollars between 2020 and 2023, the report notes.
The president started an expansive work schedule in this
municipality that extends until tomorrow, the report relays.
"There can be no economic recovery without investment, but there
can be no investment if a climate of long-term sustainability is
not fostered," he added.
He said that all the investments supported in recent months by the
government respond to standard patterns, such as supporting today:
economic recovery, quality jobs, and long-term sustainability, the
report relays.
Abinader further noted that this private plant includes $4.5
million in capital investments to promote clean energy that
contributes to achieving carbon footprint neutrality, the report
notes.
Also included is a plan of 5 million dollars in expanding their
installed capacity to supply the local market and exports, the
report discloses.
He said there would be significant investments behind the
construction of their brands and their packaging materials to
accelerate their commitment to making all packaging materials
recyclable by 2025, the report says.
"This company's commitment to a green and economically sustainable
future is a reason for support from the Dominican government," he
said.
He valued the commitment to continue the support that, for more
than 50 years, Nestle has provided to the national dairy sector,
the report relays.
Among the contributions that it consolidates, the president cited
the development plans for professional farmers, focusing on
promoting a new generation of young producers, the report relays.
Likewise, plans to improve milk quality, promote agricultural
practices with zero impact on the environment, protecting soil,
water, grazing systems, biodiversity, C02, and climate change, the
report notes.
"The future looks better thanks to your work and commitment. And
the government will not fail to help them," Abinader added.
Participating in the activity were the Administrative Minister of
the Presidency, Jose Ignacio Paliza, and the Minister of Industry,
Commerce and Mipymes, Victor (Ito) Bisono, the President of the
Chamber of Deputies, Alfredo Pacheco, the report relays.
In addition, Monsignor Fausto Ramon Mejia Vallejo, Bishop Diocese
of San Francisco de Macoris and the Swiss Ambassador, Urs Robert
Schneider, the report discloses.
Also, the Minister of Agriculture, Limber Cruz; the administrator
of the Banco Agricola, Fernando Duran; the administrator of
Edenorte, Andres Cueto; the senator of the Duarte province,
Franklin Romero; the provincial governor, Ana Xiomara Cortes and
the municipal mayor, Siquio Ng de la Rosa, the report notes.
Private Investment
Pablo Wiechers, Nestle's Market Manager for the Latin Caribbean
region, said that this investment would continue to promote the use
of clean energy. He explained that the biomass boiler would use
wood and other materials to stop using fossil fuels and incinerate
its waste, the report relays.
He said that the company reaffirmed its commitment to reviving the
Dominican economy by developing its local supply chain of
vegetables and spices such as oregano, turmeric, onions, the report
discloses.
He informed that they support 1,144 farmers with fresh milk for an
annual amount of 36 million liters, the report notes.
In addition to San Francisco de Macoris, Nestle Dominicana has a
factory in San Cristobal, the report relays.
Productivity and Jobs
The Minister of Industry and Commerce, Victor -Ito- Bisono, valued
that the Dominican industrial sector is one of the pillars for
increasing productivity, competitiveness, and growth of our
economy, the report notes.
Bisono said that they are working on a broad program that will
allow them to advance to obtain the 600,000 jobs that the
government of President Abinader has proposed, 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. Luis
Rodolfo Abinader Corona is the current president of the nation.
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).
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P U E R T O R I C O
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JJE INC: Unsecured Creditors to Recover 20% Over 6 Years
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Debtor JJE Inc. filed with the U.S. Bankruptcy Court for the
District of Puerto Rico an Amended Disclosure Statement describing
its Reorganization Chapter 11 Plan dated September 17, 2020.
Class IV General unsecured claims included are the creditors that
filed proofs of claim. The Debtor will award a total sum of
$25,965 which represents a 20% distribution for this class. To pay
the amount of $25,965, the Debtor will make the monthly payment of
$360.62 for 72 months. Each payment will be distributed in a pro
rate amount to all creditors and claimants included in this class.
Claims in this class are entitled to vote on the Plan.
The Plan will be funded with cash available proceeds from the
revenue that the hospice generates after paying operating expenses
and taxes. Debtor's income is based on the admissions of patients
to provide treatment, which is the Debtor's business. Debtor's
operating expenses consist of bank commissions, utilities, repairs
and maintenance, employee salaries and payroll taxes, insurance
expenses, office expenses, property taxes, municipal taxes, and
income taxes.
Taxes being paid by the Debtor are to the Internal Revenue Service,
to the Treasury Department of Puerto Rico, State Insurance Fund,
Department of Labor, and property taxes to the Municipal Revenue
Collection Center.
The Debtor will be able to make all the payments as proposed by the
Plan because the Debtor has an ending balance of $67,703.86 as of
June 2020. The Plan will become effective on the Effective Date
thirty days after the order of confirmation becomes final.
A full-text copy of the Amended Disclosure Statement dated
September 17, 2020, is available at https://tinyurl.com/y345ngps
from PacerMonitor at no charge.
The Debtor is represented by:
Victor Gratacos Diaz, Esq.
GRATACOS LAW FIRM, P.S.C.
P.O. Box 7571
Caguas, P.R. 00726
Tel: (787) 746-4772
Fax: (787) 746-3633
E-mail: bankruptcy@gratacoslaw.com
About JJE Inc.
JJE, Inc., is a home health care services provider based in Manati,
Puerto Rico. JJE, Inc., filed a Chapter 11 petition (Bankr. D.P.R.
Case No.19-02034) on April 12, 2019, and is represented by Victor
Gratacos Diaz, Esq., in Caguas, Puerto Rico. In the petition
signed by Jenny Olivo, president, the Debtor disclosed $295,244 in
total assets and $1,953,718 in total liabilities.
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V E N E Z U E L A
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VENEZUELA: Suspends International Flights Until February 2021
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The Latin American Herald reports that Venezuela will suspend
international flight operations until February 13 of next year,
except for five authorized destinations, in all airports at the
national level according to a statement released by the nation's
National Institute of Civil Aviation (INAC) on its Twitter account
@InacVzla.
This way, the Dominican Republic, Panama, Mexico, Turkey, and Iran
were cleared exclusively for "commercial air operations," while the
route to the Los Roques archipelago was surprisingly suspended as
the sole domestic destination after having been cleared, according
to The Latin American Herald.
Sources from the local tourism sector have noted that while the
authorized destinations open a significant number of air
connections, especially with the US, the available flights will be
benefiting in large part the repatriation needs of the country,
both for those foreigners still in Venezuela and for facilitating
the return of stranded Venezuelan nationals abroad, the report
notes.
Separately, the Vice Minister of Land Transportation, Claudio
Farias, announced that all bus terminals across Venezuela will
resume operations starting on November 30 after suspending
activities for nearly nine months due to the measures taken by the
administration of Nicolas Maduro in a bid to prevent the COVID-19
outbreak from spreading further, the report relays.
Venezuela's flight operations were brought to a standstill in
mid-March when the oil-rich South American country decreed a state
of emergency due to the COVID-19 pandemic, the report adds.
Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and islets
in the Caribbean sea. The capital is the city of Caracas.
Hugo Chavez was president to Venezuela from 1999 to 2013. The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum. Nicolas Maduro was elected president in 2013 after the
death of Chavez. Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.
The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis. It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.
S&P Global Ratings, in May 2019, removed its long- and short-term
local currency sovereign credit ratings on Venezuela from
CreditWatch with negative implications and affirmed them at
'CCC-/C'. The outlook on the long-term local currency rating is
negative. At the same time, S&P affirmed its 'SD/D' long- and
short-term foreign currency sovereign credit ratings on Venezuela.
Moody's credit rating (long term foreign and domestic issuer
ratings) for Venezuela was last set at C with stable outlook in
March 2018. Meanwhile, Fitch's long term issuer default rating for
Venezuela was last in 2017 at RD and country ceiling was CC. Fitch,
on June 27, 2019, affirmed then withdrew the ratings due to the
imposition of U.S. sanctions on Venezuela.
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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 2020. 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.
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