/raid1/www/Hosts/bankrupt/TCRLA_Public/201214.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
Monday, December 14, 2020, Vol. 21, No. 249
Headlines
B A H A M A S
XTRA-GOLD RESOURCES: Needs More Capital to Stay as a Going Concern
B R A Z I L
BRAZIL: S&P Affirms BB-/B Sovereign Credit Ratings, Outlook Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Gas Prices to go Up More Than 2 Pesos/Gallon
DOMINICAN REPUBLIC: More Than Half of Formal Jobs Lost Recovered
[*] DOMINICAN REPUBLIC: Merchants Assure Price Stability in Markets
M E X I C O
ARMOUR SECURE: A.M. Best Keeps B (Fair) Financial Strength Rating
P U E R T O R I C O
AMC LLC: Seeks to Hire Ganbia-Fabian Law as Counsel
PUERTO RICO: Prasa Moves Up Sale of $1.4 Billion Bonds
U R U G U A Y
URUGUAY: IDB OKs $6MM Loan to Improve Healthcare Sector Management
X X X X X X X X
[*] BOND PRICING: For the Week Dec 7 to Dec. 11, 2020
- - - - -
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B A H A M A S
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XTRA-GOLD RESOURCES: Needs More Capital to Stay as a Going Concern
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Xtra-Gold Resources Corp. filed its Form 6-K, disclosing a net
income (attributable to the Company) of $714,181 on $0 of revenue
for the three months ended Sept. 30, 2020, compared to a net income
(attributable to the Company) of $1,501,085 on $0 of revenue for
the same period in 2019.
At Sept. 30, 2020, the Company had total assets of $9,753,380,
total liabilities of $352,754, and $9,400,626 in total
stockholders' equity.
Xtra-Gold Resources said, "The Company is in development as an
exploration company. It may need financing for its exploration and
acquisition activities. Although the Company has incurred a gain
of US$2,288,146 for the period ended September 30, 2020, it has an
accumulated deficit of US$22,385,244. Results for the period ended
September 30, 2020 are not necessarily indicative of future
results. The uncertainty of gold recovery and the fact the Company
does not have a demonstrably viable business to provide future
funds, raises substantial doubt about its ability to continue as a
going concern for one year from the issuance of the financial
statements. The ability of the Company to continue as a going
concern is dependent on the Company's ability to raise additional
capital and implement its business plan, which is typical for
junior exploration companies."
A copy of the Form 6-K is available at:
https://bit.ly/39ZePyl
Xtra-Gold Resources Corp. engages in the exploration and
development of gold properties in Ghana, West Africa. The company
was formerly known as RetinaPharma International, Inc. and changed
its name to Xtra-Gold Resources Corp. in December 2003. Xtra-Gold
Resources Corp. was incorporated in 1998 and is based in Nassau,
Bahamas.
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B R A Z I L
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BRAZIL: S&P Affirms BB-/B Sovereign Credit Ratings, Outlook Stable
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S&P Global Ratings affirmed its 'BB-/B' long- and short-term
foreign and local currency sovereign credit ratings on Brazil. The
outlook on the long-term ratings remains stable. S&P also affirmed
its 'brAAA' national scale rating, and the outlook remains stable.
The transfer and convertibility assessment on Brazil is still
'BB+'.
Outlook
The stable outlook assumes that timely implementation of fiscal
adjustment and modest economic recovery will help preserve market
confidence and adequate funding conditions for the government in
local markets in the next two years, despite a sustained increase
in the debt burden.
Persistent fiscal weakness over the same timeframe, as a result of
poor growth or sluggish policy reaction, could translate into
further financing pressures for the government. This could lead to
lower ratings, in particular if it reduces the commitment from the
political class toward fiscal consolidation.
Conversely, S&P could raise the ratings if Brazil's fiscal
performance improves more than we expect over the forecast. This
could come from stronger growth and advancement from stalled
structural fiscal reforms.
Rationale
The government deficit has widened significantly in 2020 as a
result of the large fiscal support to the economy and GDP
contraction. Moving into 2021, as activity gradually rebounds,
Brazil faces the significant challenge of unwinding fiscal stimulus
measures implemented this year. The failure to implement timely
adjustments in the next year could further erode market confidence
locally and financing conditions for the government.
Brazil's strong external position, proactive monetary policy,
floating exchange rate, and favorable sovereign debt composition
constitute relative credit strengths that should enable it to
address the difficult conditions.
Institutional and economic profile: Progress on fiscal legislation
becomes even more pressing given Brazil's larger financing needs
and moderate growth prospects
-- After a 4.7% contraction in 2020, S&P expects economic growth
to rebound in 2021, although the removal of fiscal stimulus will
create uncertainty.
-- The legislative agenda is crowded, and the window for
discussion during the rest of the administration is tight.
-- Continued delays in advancing structural reforms hurt the
sovereign's fiscal credibility.
-- The economic recovery gained strength during the third quarter
after sharp declines in April and May, although some signs of
slowdown began to appear. S&P now believes that GDP will contract
4.7% in 2020 and expand 3.2% in 2021.
The Brazilian authorities have introduced extraordinary support to
mitigate the economic, social, and financial impact of the
pandemic. The full fiscal support package is 12% of GDP, one of the
largest among emerging markets, of which the direct impact in the
2020 government primary deficit is estimated around 8% of GDP. The
bulk of the measures is an emergency aid program, equivalent to
4.5% of GDP, which has benefited more than 60 million people.
The upcoming expiration of these measures raises uncertainty about
the pace of recovery next year, putting pressure on policymakers to
approve an extension of the benefits despite the lack of fiscal
space.
S&P expects a sustained, although moderate, recovery in private
investment in the coming quarters due to the expansionary monetary
policy, the SELIC benchmark rate at a record low of 2%, and a
strong increase in capacity utilization according to recent
surveys. Moreover, the approval of microeconomic reforms in a
number of sectors--recent examples include the passage of new
legislations on sanitation and bankruptcy--and a large program of
concessions bode well for investment prospects. On the other hand,
persistent fiscal uncertainty and high government financing needs
could hurt business confidence.
Brazil's growth prospects have been below those of other countries
at a similar stage of development, in S&P's view. S&P expects GDP
per capita of US$6,513 for 2020. Raising the country's long-term
GDP growth depends on reforms to increase productivity and private
investment, such as a simplification of Brazil's cumbersome tax
rules (discussion on this is in an advanced stage in Congress). A
slower pace of economic recovery next year could result in less
favorable political conditions for passing difficult economic
reforms.
The current administration has shown commitment to policies that
strengthen Brazil's fiscal accounts and encourage greater
private-sector participation in the economy. However, the lack of a
solid coalition in Congress and the pandemic have posed a challenge
in moving ahead more swiftly on the economic and fiscal agenda, in
particular because several reforms require constitutional
amendments (PECs, by their Portuguese acronym). In the near term, a
legislative priority is the approval of a fiscal reform, which
would seek to address the pressing issue of a potential breach of
the constitutional spending cap (which caps public spending growth
at the previous year's inflation rate).
Municipal elections last November and the upcoming election of the
leaders of the Chamber of Deputies and the Senate (in February
2021) have further delayed difficult political negotiations that
are becoming even more urgent given market concerns over increasing
fiscal risks. The window for approval of a crowded agenda of
reforms is very tight with the 2022 presidential election on the
horizon. S&P expects political dynamics to remain fluid in the
coming quarters, especially if growth disappoints.
Flexibility and performance profile: Large fiscal deficits will
increase the debt burden but risks are offset by Brazil's resilient
external position
-- Brazil is expected to post significant deficits in the next two
years.
-- Prolonged fiscal uncertainty could fuel market concerns,
complicating debt management.
In this environment, moderate current account deficits and limited
external borrowing will sustain the country's creditworthiness.
The large policy response to the pandemic will worsen Brazil's
already weak fiscal performance. S&P expects the change in net
general government debt to spike to about 16% of GDP in 2020 and
recede to 8% in 2021. The fiscal deficits will increase the
government's net debt burden to about 76% of GDP by the end of
2021, and continue to increase over the forecast, reaching almost
80% of GDP in 2023.
Extraordinary revenues, including additional transfers from the
central bank, state bank BNDES, and other public banks, as well as
proceeds from privatizations, could help marginally reduce the debt
burden. On the other hand, a record-low SELIC has helped reduce
government borrowing costs and interest payments. S&P expects
borrowing costs and interest payments to continue to decline toward
12% of government revenues in the next three years. However, this
assumption is subject to inflation expectations remaining anchored
in the medium term. Signs of rising inflation have been mounting in
recent months due to the passthrough of the weaker exchange rate to
food prices. S&P expects inflation to average 3.5% in 2020-2023,
within the central bank targets.
A favorable composition of debt, large government liquid assets
(around 16% of GDP), and limited contingent liabilities mitigate
the risks of managing Brazil's high debt burden. The National
Treasury has used part of its cash cushion to fund its larger
financing needs in the context of the pandemic, but transfers from
the central bank have helped to mitigate the fall in government
assets. Government debt remains overwhelmingly in local currency
(foreign currency only represents 5.7% of the total). The share of
nonresident holdings of government securities has been declining,
reaching 10% of the total as of October 2020 (compared with 19% in
December 2015). Nevertheless, the rapid buildup in debt, the
prospect of large financing needs next year (28% of the outstanding
debt will mature in next 12 months), and slow progress in passing
structural reforms have increased domestic market concerns in
recent months, leading to a sharp steepening of the local currency
yield curve and, consequently, shortening maturities.
In a context of demands for more spending next year on extended
social programs, a breach of the spending cap--without a defined
and credible plan for fiscal adjustment in the medium term--could
erode fiscal credibility and deteriorate funding conditions for the
government.
The country's external profile has remained resilient in recent
years despite frequent episodes of global volatility. The Brazilian
real floats and is an actively traded currency. The country has
been in a narrow net external creditor position since 2016 as a
result of limited public and private external borrowing combined
with a large stock of international reserves. S&P projects this
trend to continue in the coming three years (narrow net external
debt at -12% of current account receipts on average).
S&P said, "Despite this favorable external debt position, we
consider that Brazil could be vulnerable to sudden changes in
foreign direct investment (FDI) flows, since net external
liabilities, which include the high stock of FDI in the country,
account for almost 200% of current account receipts in 2020.
Despite a drop in inflows this year, we expect net FDI to remain
the largest source of financing of the current account deficits
(CADs). We assume the CAD will slowly increase in the coming years,
as imports and profit distribution accelerate, but remain below 2%
of GDP, consistent with an only mild recovery in domestic demand."
The central bank has provided ample monetary policy and liquidity
support during the pandemic. The SELIC rate was cut by 225 basis
points to 2%, and the central bank has adopted a new communication
tool of forward guidance. The central bank has also been able to
advance on several initiatives included in its multidimensional BC#
agenda, which, along with the very low rates in Brazil, is
supporting the development of local financial markets.
Positively, the central bank is moving toward formal autonomy. The
bill proposal, approved in the Senate, establishes fixed terms of
four years for the board members that do not coincide with the
presidential term. In S&P's opinion, the enhanced framework could
further strengthen the credibility of monetary policy. Dealing with
inflationary pressures, if the economy were to recover more rapidly
than expected, could be a good test of the new monetary framework.
In accordance with S&P's 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
Ratings Affirmed
Brazil
Sovereign Credit Rating BB-/Stable/B
Brazil National Scale brAAA/Stable/--
Transfer & Convertibility Assessment
Local Currency BB+
Brazil
Senior Unsecured BB-
Senior Unsecured brAAA
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D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Gas Prices to go Up More Than 2 Pesos/Gallon
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Dominican Today reports that the Ministry of Industry, Commerce,
and Mipymes (MICM) reported that fuels would suffer a slight
increase in the week of December 12-18, according to Dominican
Today.
Regular gasoline will be sold at 199.00 and premium gasoline at
211.50, increasing 2.60 per gallon each. In contrast, regular
diesel will rise by 2.80 to 161.80 and Optimo to 173.80, rising by
2.90 pesos per gallon, the report notes. Finally, liquefied gas
will be dispensed at 118.80, increasing 0.90 cents per gallon.
Natural gas maintains its price of 28.97 per cubic meter, the
report relays.
The ministerial office justified the increase by the rise of the
reference crude in the United States, which had reached its highest
nine months, the report relays. However, it fell back in the
previous two days with investors awaiting the new measures against
the coronavirus decreed in some states, the report notes.
"The average price of crude oil in the last five days had a slight
increase of US$0.60 per gallon, equivalent to 1.32 % in relation to
last week," says a statement obtained by the news agency.
For the week of December 12 to 18, the Ministry of Industry,
Commerce, and Mipymes has established that fuels will be sold at
the following prices:
-- Premium gasoline will be sold at RD$211.50 per gallon and
RD$2.60 per gallon.
-- Regular gasoline will be sold at RD$199.00 per gallon and
RD$2.70 per gallon.
-- Regular gasoline will sell for RD$161.80 per gallon and will
rise to RD$2.80 per gallon.
-- Gasoil Optimo will sell for RD$173.80 per gallon and will
increase by RD$2.90 per gallon.
-- Avtur will sell for RD$123.50 per gallon and will increase by
RD$3.30 per gallon.
-- Kerosene will sell for RD$148.50 per gallon and will increase
to RD$3.10 per gallon.
-- Fuel oil #6 will sell for RD$108.10 per gallon down to RD$0.30
per gallon.
-- Fuel Oil 1%S will sell for RD$122.20 per gallon and will
increase to RD$1.40 per gallon.
-- Liquefied Petroleum Gas (LPG) will sell for RD$118.80/g: up
RD$0.90 per gallon.
-- Natural Gas RD$28.97 per cubic meter, maintains its price.
-- The average exchange rate is RD$58.32, according to a survey
conducted by the Central Bank.
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, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term
sovereign credit ratings.
The negative outlook reflects S&P's view that it could lower the
ratings on the Dominican Republic over the next six to 18 months,
given the severe impact of the COVID-19 pandemic on the
sovereign's already vulnerable fiscal and external profiles, as
well as the potential for a weaker-than-expected economic
recovery.
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: More Than Half of Formal Jobs Lost Recovered
----------------------------------------------------------------
Dominican Today reports that the formal Dominican labor market
continues its recovery process after being hit by the coronavirus
pandemic last March, which forced employers to suspend thousands of
workers and cancel elsewhere.
Last October, the Social Security Treasury (TSS) registered
2,009,779 contributing employees, a figure that, although still
below recorded in March 2020, represents an improvement compared to
the months between April and September, according to Dominican
Today.
At the end of March, 2,250,140 workers were listed on the TSS, a
number that in May - the worst month so far this year - fell to
1,717,798. At that time, the loss was 532,342 jobs, a figure that
has since gone improving as the economy has begun to return to
normal, the report relays.
According to the number of contributors last October, the Dominican
economy needs to generate 240,361 jobs to return to the levels it
exhibited in March when the state of emergency was declared, the
report discloses. Part of the economic activities was paralyzed,
the report says.
In the last five months, the economy generated 291,981 formal jobs,
more than half of the formal jobs that were lost due to COVID-19,
the report notes. On average, the Dominican economy is generating
almost 58,400 monthly jobs, measured from May to October, the
report relays.
The most considerable contributions to the net fall in formal
employment, which amounted to 5.2%, between June 2019 and the same
month of 2020, corresponded to the branches of activity commerce
(-3.3 percentage points), hotels, bars and restaurants (-1.8),
other services (-1.7) and financial intermediation and insurance
(-1.4), the report notes.
This is contained in the report "Effects of COVID-19 on monetary
poverty, inequality, and the labor market, and analysis of
mitigation programs," recently presented by the Ministry of
Economy, Planning, and Development, the report notes.
And it adds that "the substantial reductions explain the notable
contribution of hotels, bars, and restaurants and commerce to the
fall in formal employment that these branches of activity
experienced in jobs 25% and 20%, respectively in relation to June
2019," the report discloses.
Number of Employers
The number of employers has been improving and, in relation to May,
shows net growth of 18,131, going from 69,863 that month to 87,994
last October, the report relays.
However, the figure remains below the current level before the
pandemic's impact, since in March, there were 92,320 formal
employers in the country, the report relays. Hence, the economy
still requires 4,326 employers to recover that level, according to
the Social Security Treasury records, 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, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term
sovereign credit ratings.
The negative outlook reflects S&P's view that it could lower the
ratings on the Dominican Republic over the next six to 18 months,
given the severe impact of the COVID-19 pandemic on the
sovereign's already vulnerable fiscal and external profiles, as
well as the potential for a weaker-than-expected economic
recovery.
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: Merchants Assure Price Stability in Markets
-------------------------------------------------------------------
Dominican Today reports that in the last 25 days, the prices of
agricultural products have decreased from 50% to more than 60%
about the beginning of November, assured the Federation of
Provisions Traders and SMEs.
However, products such as eggs and chicken have experienced a rise
of between 10 and 15% in this period, said Miguel Minaya, president
of the New Market Traders Association, according to Dominican
Today.
He said that among the products that have registered price
reductions are onions, which went from RD$70 per pound to RD$30,
garlic from RD$200 to RD$90 for imported products, and RD$80 for
Creole products, the report notes.
The same is true of plantains, which used to be priced between
RD$30 and RD$40 per unit, and now range from RD$13 to RD$15 for the
Barahona variety Cibaeno plantain is between 6, 7, and 8 pesos, the
report relays. "There is no longer any need to pay RD$30 and RD$40
for a banana.
In the banana case, it's three pesos of first quality and two
pesos," said the leader during the celebration of the day of the
supplying merchant, the report discloses.
Minaya pointed out that there are also losses in the case of
vegetables after Luis Abinader implemented the price reduction
plan. He added that the potato, which was at RD$40, is at RD$18,
the boogaloo tomato went from RD$30 to RD$12, and the carrot to
RD$15 the free one, the report relays.
He emphasized that this will guarantee that families have access to
essential products during the Christmas season. However, he called
attention to the fact that products such as chicken and eggs are
becoming scarce in the market, the report notes.
Shortage of Chicken
Pavel Concepcion, president of the Dominican Association of Poultry
Farmers, explained that the reduction in chicken supply is due to a
low production affected by the fall in sales in previous months
with the restrictions by the Covid-19, the report discloses.
He also expressed that the increases are due to more than 45% of
production costs. As they are raw materials, transportation added
to the devaluation of the local peso. He explained that the chicken
price on the farm went from RD$ 28 to RD$ 36, while in the pollera,
it is RD$56 and RD$60 depending on the location and trade, the
report says.
He said that by March, the price of chicken would be down, as
production has increased, the report notes.
Red Alert
The Federation of Provisions Traders called on the Government to
mediate actions to stabilize chicken and eggs' price, pointing out
that they are essential for family consumption, the report relays.
Agriculture Seeks Price Stability
Despite the shortage of chicken and eggs, the producers of this
sector and the pork ones assured that there would be enough
Christmas production, the report notes.
This is how producers of the referred products were informed during
a meeting with Limber Cruz, Minister of Agriculture, the report
discloses.
The official affirmed that he works to guarantee the balance
between stable prices to the consumer and the producer's
profitability to sustain national production and food security, 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, on December 4, 2020, affirmed its 'BB-'
long-term foreign and local currency sovereign credit ratings on
the Dominican Republic. The outlook remains negative. S&P also
affirmed its 'B' short-term
sovereign credit ratings.
The negative outlook reflects S&P's view that it could lower the
ratings on the Dominican Republic over the next six to 18 months,
given the severe impact of the COVID-19 pandemic on the
sovereign's already vulnerable fiscal and external profiles, as
well as the potential for a weaker-than-expected economic
recovery.
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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M E X I C O
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ARMOUR SECURE: A.M. Best Keeps B (Fair) Financial Strength Rating
-----------------------------------------------------------------
AM Best has maintained the under review with developing
implications status for the Financial Strength Rating of B (Fair),
the Long-Term Issuer Credit Rating of "bb" and the Mexico National
Scale Rating of "a.MX" of Armour Secure Insurance S.A. de C.V.
(Armour) (Mexico).
The Credit Ratings (ratings) were initially placed under review
with developing implications on Dec. 6, 2019, following an
announcement that AXA XL had entered into an agreement to acquire
Armour. This transaction is still pending regulatory approval from
the Mexico regulator, Commission Nacional De Seguros y Fianzas, as
operations were put on hold due to the COVID-19 pandemic. The
ratings will remain under review until the transaction is completed
successfully, and AM Best can assess the financial and operational
impacts of the acquisition fully.
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P U E R T O R I C O
=====================
AMC LLC: Seeks to Hire Ganbia-Fabian Law as Counsel
---------------------------------------------------
ALM LLC seeks authority from the U.S. Bankruptcy Court for the
District of Puerto Rico to hire Ganbia-Fabian Law Office as its
legal counsel.
The services that Ganbia-Fabian will render are:
a. advise the Debtor with respect to its duties, powers and
responsibilities in its Chapter 11 case;
b. advise the Debtor in connection with a determination
whether a reorganization is feasible and, if not, helping the
Debtor in the orderly liquidation of its assets;
c. assist the Debtor in negotiations with creditors for the
purpose of arranging the orderly liquidation of assets or for
proposing a viable plan of reorganization;
d. prepare legal papers or documents;
e. appear before the court in which the Debtor asserts a
claim interest or defense directly or indirectly related to its
bankruptcy case; and
f. employ other professional services, if necessary.
The hourly rates for the firm's services are:
Mary Ann Ganbia-Fabian $295
Junior Attorney $250
Paralegal $125
Ganbia-Fabian Law received a retainer in the amount of $10,000.
Ms. Ganbia-Fabian assured the court that her firm is a
disinterested person within the meaning of Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Mary Ann Gandia-Fabian, Esq.
Ganbia-Fabian Law Office
P.O. Box 270251
San Juan, PR 00928
Tel: 1-787-390-7111
Fax: 1-787-729-2203
Email: gandialaw@gmail.com
About ALM LLC
ALM, LLC is the owner of fee simple title to a property located in
Trujillo Alto, P.R., having a current value of $860,943.
ALM filed its petition for relief under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 20-04571) on Nov. 25,
2020.
In the petition signed by Kristian E. Riefkohl Bravo, president,
the Debtor disclosed $1,083,384 in assets and $2,919,967 in
liabilities.
Judge Mildred Caban Flores oversees the case.
Mary Ann Gandia Fabian, Esq. at Ganbia-Fabian Law Office, serves as
the Debtor's legal counsel.
PUERTO RICO: Prasa Moves Up Sale of $1.4 Billion Bonds
------------------------------------------------------
Michelle Kaske of Bloomberg News reports that Puerto Rico's
Aqueduct and Sewer Authority on Wednesday, December 9, 2020, began
pricing $1.4 billion of bonds, accelerating the refinancing by one
day.
Prasa, as the utility is known, is the main supplier of water on
the island.
Debt maturing in 2047 with a 5% coupon was priced at an initial
yield of 4.25%, or 285 basis points more than top-rated municipal
bonds, according to preliminary pricing information. By comparison,
Puerto Rico's restructured sales-tax debt due in 2058 with a 5%
coupon has been trading this week at an average yield of 3.48%,
according to Bloomberg data.
The island water and sewer utility set to refinance revenue bonds.
The deal is first major public debt sale since bankruptcy.
About Aqueduct and Sewer Authority
The Puerto Rico Aqueducts and Sewers Authority is a water company
and the government-owned corporation responsible for water quality,
management, and supply in the U.S. Commonwealth of Puerto Rico.
PRASA is the only entity authorized to conduct such business in
Puerto Rico
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68% debt-to-GDP ratio and negative economic growth in nine of the
last 10 years.
The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.
The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').
The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").
U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.
Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.
McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico
Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.
O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.
The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.
=============
U R U G U A Y
=============
URUGUAY: IDB OKs $6MM Loan to Improve Healthcare Sector Management
------------------------------------------------------------------
Uruguay will improve the e-government management of healthcare
services in the areas of prevention and early treatment of
noncommunicable chronic diseases with a $6 million loan approved by
the Inter-American Development Bank (IDB).
The operation, part of a conditional credit line for investment
projects, will improve the quality of interoperable data of the
National Electronic Medical Records (HCEN, after its Spanish
initials), the utilization of this data for patient management, and
health and assistance goals' monitoring.
Use and enhancement of the HCEN platform will contribute to improve
both direct healthcare assistance and decision-making. This
platform, which has been developed with support from the first two
operations of the conditional credit line for investment projects,
has proved to be a valuable tool in the fight against the COVID-19
pandemic, helping produce quick responses by supplying centralized
records on patients and on health services required to tackle the
disease.
The project will improve the structured data stored in the HCEN
platform and will also have new functionalities aimed at providing
better disease prevention and treatment services. These include a
nationwide medicine prescription and supply management system and
the design of a medical information structure catalog system.
Other plans include implementing a promotion strategy and adopting
a cybersecurity reference framework for the use of a minimum
structured data set for the platform. The project also contemplates
financing the design and implementation of a promotion and adoption
strategy for a minimum structured data set in the electronic
medical records, and the implementation of projects aimed at
boosting the digital capabilities of healthcare providers and of
other activities within the digital healthcare ecosystem.
The $6 million IDB loan is for a 25-year term, with a 5-year period
of grace, and an interest rate based on LIBOR. Uruguay will provide
$1.35 million in local counterpart funds.
About us
The Inter-American Development Bank is devoted to improving lives.
Established in 1959, the IDB is a leading source of long-term
financing for economic, social, and institutional development in
Latin America and the Caribbean. The IDB also conducts cutting-edge
research and provides policy advice, technical assistance and
training to public and private sector clients throughout the
region.
===============
X X X X X X X X
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[*] BOND PRICING: For the Week Dec 7 to Dec. 11, 2020
-----------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
YPF SA 16.5 67.3 5/9/2022 AR ARS
SACI Falabella 2.3 50.6 7/15/2020 CL CLP
Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD
MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD
Enel Americas SA 5.8 32.7 6/15/2022 CL CLP
Empresa Provincial de 12.5 0.0 1/29/2020 AR USD
Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP
Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY
Sylph Ltd 2.4 65.1 9/25/2036 KY USD
Noble Holding Internat 5.3 60.5 3/15/2042 KY USD
AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD
Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD
Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD
Polarcus Ltd 5.6 71.8 7/1/2022 AE USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD
Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Noble Holding Internat 6.2 62.2 8/1/2040 KY USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD
Odebrecht Finance Ltd 7.0 17.0 4/21/2020 KY USD
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
China Huiyuan Juice Gr 6.5 46.6 8/16/2020 CN USD
Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP
Sociedad Austral de El 3.0 17.0 9/20/2019 CL CLP
Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD
Plaza SA 3.5 38.3 8/15/2020 CL CLP
Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
Banco Security SA 3.0 27.4 6/1/2021 CL CLP
Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD
Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP
Banco Security SA 3.0 5.6 7/1/2019 CL CLP
MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD
Fospar S/A 6.5 1.2 5/15/2026 BR BRL
China Huiyuan Juice Gr 6.5 46.6 8/16/2020 CN USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
MIE Holdings Corp 7.5 56.4 4/25/2019 HK USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
MIE Holdings Corp 7.5 56.2 4/25/2019 HK USD
mpresa de Transporte 4.3 30.9 7/15/2020 CL CLP
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Odebrecht Finance Ltd 7.0 16.5 4/21/2020 KY USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL
Yida China Holdings Lt 7.0 74.3 4/19/2020 CN USD
Noble Holding Internat 6.1 62.0 3/1/2041 KY USD
USJ Acucar e Alcool SA 9.9 74.0 11/9/2019 BR USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Provincia del Chubut A 4.5 2208 3/30/2021 AR USD
Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD
Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD
Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR
Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD
Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD
Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP
Esval SA 3.5 49.9 2/15/2026 CL CLP
*********
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
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