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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
Wednesday, March 17, 2021, Vol. 22, No. 49
Headlines
B R A Z I L
BRAZIL: Retail Sales Fall in January for Third Month in a Row
BRAZIL: Top Court May Upend Carwash Graft Probe Convictions
C A Y M A N I S L A N D S
SHELF DRILLING: Moody's Gives B2 Rating on New Sr. Secured Bonds
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Gov.t Disburses US$76MM for Agro Industry
DOMINICAN REPUBLIC: Mulls Materials Imports to Alleviate Prices
PUNTA CATALINA: Power Plant at 50% Output Despite 'Repairs'
E C U A D O R
ECUADOR: IDB OKs $63MM Loan to Support Purchase of Vaccines
P U E R T O R I C O
JJE INC: Court Confirms Amended Plan
T R I N I D A D A N D T O B A G O
CL FINANCIAL: Liquidator Selling 94.24% Colfire Shares
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B R A Z I L
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BRAZIL: Retail Sales Fall in January for Third Month in a Row
-------------------------------------------------------------
Rio Times Online reports that Brazilian retail sales fell in
January for a third consecutive month, official figures showed on
March 5, largely in line with expectations and led by declining
supermarket, food and drink sales, as well as weakness in the
clothing and footwear sector.
Researchers at government statistics agency IBGE said the fall was
in large part due to the expiration on December 31st of emergency
government cash transfers to millions of poor families to help them
through the Covid-19 pandemic, according to 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.
S&P Global Ratings affirmed on December 14, 2020, 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.
Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020). Moody's credit rating for Brazil
was last set at Ba2 with stable outlook (April 2018). DBRS's
credit
rating for Brazil is BB (low) with stable outlook (March 2018).
As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings' 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.
BRAZIL: Top Court May Upend Carwash Graft Probe Convictions
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Simone Preissler Iglesias and Samy Adghirni at Bloomberg News
reports that Brazil's Supreme Court could upend years of work by
the Carwash anti-corruption task force that has sent some of the
nation's top politicians and businesspeople to jail.
A panel of five judges debated whether Sergio Moro, once the judge
in charge of the investigation and its most public face, was biased
in his rulings against former President Luiz Inacio Lula da Silva,
according to Bloomberg News. If he's deemed prejudiced, the
decision could open the door for others he convicted to request
their cases be reviewed, Bloomberg News relays.
Four justices have voted so far, two in favor and two against,
Bloomberg News says. The fifth requested more time to look into
the case, delaying the ruling, Bloomberg News notes. Justices can
change their votes until a final decision is announced, and there's
no set time for the discussion to resume, Bloomberg News
discloses.
The work of Carwash came under harsher public scrutiny after a
series of private conversations between the star judge and
prosecutors suggested Moro was guiding their hands to secure Lula's
conviction, Bloomberg News relays.
"You don't fight crime with crime," Justice Gilmar Mendes said
during the Court's virtual debate, adding that Moro had intended to
de-legitimatize Lula's Workers' Party and remove the former
president from electoral politics, Bloomberg News notes.
Moro, who has denied any wrongdoing, left the task-force at the end
of 2018 to become Jair Bolsonaro's justice minister, Bloomberg News
relays. He resigned last April, accusing the president of trying
to meddle in the federal police, Bloomberg News notes.
The case against him had been stalled for months at the top court
but resumed, one day after Supreme Court Justice Edson Fachin
annulled Moro's 2017 convictions of the former president in another
blow to Carwash, Bloomberg News relays.
"All those convicted by or who are defendants in Carwash
investigation are full of hope after what just happened," said
Debora Santos, a consultant with XP Investmentos who specializes in
legal affairs. "Fachin has just given an example of legal
uncertainty: someone who was convicted and stayed more than 500
days in prison is now completely free of charge," Bloomberg News
discloses.
Monday Ruling
Fachin, who oversees the Carwash probe at the top court, ruled on
Monday that cases against the left-wing leader were not prosecuted
in the proper jurisdiction, Bloomberg News relays. The
convictions, which were later confirmed by an appeals court, had
barred Lula from running for office in 2018. Fachin didn't rule on
the merit of the cases and his decision may still be appealed at
the full Court, Bloomberg News notes.
Yet it upended Brazil's political landscape by accelerating
campaigning for the 2022 presidential election, which Lula is now
eligible to run in, Bloomberg News discloses. Early political
campaigning could derail discussions of market-friendly reforms
currently in congress, Bloomberg News relays. Now, if the top
court decides to label Moro as biased, it could taint the image of
the anti-corruption investigation which at some point set an
example to be followed in Latin America, Bloomberg News notes.
Since its inception in 2014, Carwash ensnared some of the nation's
top politicians and landed chief executives of construction
conglomerates in jail for participating in a large bribery scheme
that diverted billions of dollars from public coffers, Bloomberg
News relates. The investigation had massive public support, with
Moro being hailed as a hero and potential presidential contender,
Bloomberg News notes.
Last year, Bolsonaro announced he'd put an end to the probe because
corruption is no longer an issue in his government, Bloomberg News
discloses. His administration had been dismantling the structure
behind it for months, and last month Carwash was officially
disbanded with many of its members resigning of moving to other
positions, Bloomberg News adds.
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.
S&P Global Ratings affirmed on December 14, 2020, 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.
Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020). Moody's credit rating for Brazil
was last set at Ba2 with stable outlook (April 2018). DBRS's
credit
rating for Brazil is BB (low) with stable outlook (March 2018).
As reported in the Troubled Company Reporter-Latin America, S&P
Global Ratings' 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.
===========================
C A Y M A N I S L A N D S
===========================
SHELF DRILLING: Moody's Gives B2 Rating on New Sr. Secured Bonds
----------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to Shelf
Drilling, Ltd.'s proposed new guaranteed senior secured bonds due
in November 2024. The issuance size is expected to be $300 million.
The new bonds will be issued by Shelf Drilling Holdings, Ltd. and
will be secured on a first lien basis by substantially all of the
company's assets.
There is no change to Shelf Drilling's Caa2 corporate family
rating, its Caa2-PD probability of default rating and its Caa3
rating on the $900 million senior unsecured bonds issued by Shelf
Drilling Holdings, Ltd. and due in February 2025. The negative
outlook is also unchanged.
The assigned rating is subject to review of final documentation and
assumes no material change in the size, terms and conditions of the
transaction as advised to Moody's.
RATINGS RATIONALE
The assignment of the B2 rating to the proposed new issuance
reflects the debt instrument's superior position in Shelf
Drilling's capital structure as a result of the security interest
creditors will have over substantially all of the company's assets
including rigs with a carrying value of approximately $1.1 billion
as at December 31, 2020. The secured bonds will be fully and
unconditionally guaranteed by materially all of the company's
subsidiaries. The B2 rating on the new bonds is three notches
higher than Shelf Drilling's Caa2 CFR and four notches higher than
the Caa3 rating on the senior unsecured bonds.
The issuance proceeds will be used to repay the outstanding $55
million under the company's $225 million 1st lien senior secured
revolving credit facility (RCF). The RCF has also been used to
extend $24 million in bank guarantees, which will be replaced by an
equivalent amount of issuance proceeds in the form of restricted
cash. In addition, the company will repay the $80 million
outstanding under its 2nd lien senior secured bonds due in November
2024. Following this proposed transaction, the company's capital
structure will consist of only the new proposed secured bonds and
the existing $900 million unsecured bonds, while the RCF will be
cancelled.
Shelf Drilling's Caa2 CFR with a negative rating outlook reflects
the company's high financial leverage and currently weak free cash
flow generation capacity, making it challenging for the company to
address it significant debt burden. Contract cancellations and
suspensions announced in 2020 as well as lower average dayrates
will lead to weak financial performance this year and under Moody's
forecast would result in negative free cash flow. Moody's-adjusted
debt/EBITDA of 6.4x for 2020 is forecasted to increase to 12.1x in
2021 after incorporating the proposed issuance. On a net
debt/EBITDA basis, the ratio increases from 5.9x to 9.8x
respectively.
LIQUIDITY
Shelf Drilling's liquidity is currently adequate and will improve
further following the transaction as it will remove uncertainties
on the access to its RCF and will increase cash balances by about
$130 million assuming an issuance amount of $300 million. The
company will no longer be subject to maintenance financial
covenants. There will be no debt maturing until November 2024 when
the secured bonds are due, but this will be followed soon after by
the $900 million bonds due in February 2025. As at December 31,
2020, the company had unrestricted cash balances of $73 million and
had drawn down $55 million under its RCF. In February 2021, the
company completed the sale of the Shelf Drilling Journey rig for
$78 million, which significantly enhances the company's cash
position. Moody's forecasts a negative free cash flow of $30-$40
million in 2021 (excluding the rig sale proceeds) given the market
uncertainty and lower amount of contracted work for the company.
RATIONALE FOR THE NEGATIVE OUTLOOK
The negative outlook reflects Moody's view that the company over
the next 12-18 months will continue to face a challenging
environment with cash flows unable to support balance sheet
deleveraging.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
An upgrade is unlikely in the near-term and would require a
sustainable improvement in liquidity such that free cash flow
generation and cash balances can meaningfully reduce the company's
net debt position.
Conversely, the ratings could be downgraded if liquidity weakens
materially and gross debt increases. A capital restructuring that
leads to recovery rates for creditors lower than those assumed in
the Caa2 CFR and bond ratings could also lead to a downgrade.
PRINCIPAL METHODOLOGY
The principal methodology used in this rating was Global Oilfield
Services Industry Rating Methodology published in May 2017.
The local market analyst for this rating is Rehan Akbar, +971 (423)
795-65.
CORPORATE PROFILE
Shelf Drilling, Ltd. is a Cayman Islands incorporated holding
company that as of year-end 2020 owned 31 independent-leg
cantilever jack-up rigs (excluding stacked or held for sale). The
company conducts drilling operations through various subsidiaries
in the Southeast Asian, Middle Eastern, Indian, West African and
North African/Mediterranean markets. Shelf Drilling generated
revenues of $585 million for the last 12 months ended December 31,
2020. The company is listed on the Oslo Stock Exchange since June
2018 and key shareholders include affiliates of China Merchants
Group (19.7%), Castle Harlan Inc. (14.5%) and Lime Rock Partners
(12.6%).
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D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Gov.t Disburses US$76MM for Agro Industry
---------------------------------------------------------------
Dominican Today reports that in the last five months, the
Government disbursed RD$4.4 billion (US$76 million) in financing at
zero rate for 12,500 small and medium agricultural and agroindustry
producers throughout the country.
"The item is part of the 5,000 billion pesos designated last
October by President Luis Abinader to reactivate the sector,
strengthen agricultural production and create jobs," says a press
release, according to Dominican Today.
The financing program served as a stimulus to farmers affected by
the pandemic, and had a direct impact on thousands of acres of
crops, the report notes.
About Dominican Republic
The Dominican Republic is a Caribbean nation that shares the island
of Hispaniola with Haiti to the west. Capital city Santo Domingo
has Spanish landmarks like the Gothic Catedral Primada de America
dating back 5 centuries in its Zona Colonial district. 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.
Fitch Ratings on Jan. 18, assigned a 'BB-' rating to Dominican
Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.
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: Mulls Materials Imports to Alleviate Prices
---------------------------------------------------------------
Dominican Today reports that faced with the rise of building
materials, which has caused the sector's standstill in the North
region, the Government is considering the possibility of
entrepreneurs importing products as a way of alleviating prices.
The Minister of Industry and Commerce, Ito Bisono, met with the
president at the National Palace and said that "the government is
thinking and we are looking at how to facilitate those who are
demanding the building materials, in all their elements, whether
rods, cement, wires, be imported as well," according to Dominican
Today.
In recent weeks, builders have decried the more than 30% increase
in construction products, the report relays.
The hikes are due not only to scarcity, but also to the chain of
intermediaries and the shortages that impact prices, the official
said, the report notes.
He said if the agreement is implemented, importers should meet
quality standards and adjust prices, 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.
Fitch Ratings on Jan. 18, assigned a 'BB-' rating to Dominican
Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041.
Concurrently, the Dominican Republic reopened its 2030 4.5% notes
for an additional USD1.0 billion, which Fitch rates 'BB-', raising
the total outstanding amount of the 2030 notes to USD2.0 billion.
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).
PUNTA CATALINA: Power Plant at 50% Output Despite 'Repairs'
-----------------------------------------------------------
Dominican Today reports that unit two of the Punta Catalina Power
Plant (CTPC) is still off line, despite that the Minister of Energy
and Mines (MEM), Antonio Almonte, reported that the plant would
come into service that day.
Unit two of Punta Catalina went out of operation on January 2,
after problems in its boiler, and after being repaired by foreign
techs, according to Dominican Today. According to Almonte its
entry into the system was projected at the end of the March 1-7,
the report relays.
However, as of March 9 the unit was still out of service, according
to the Coordinating Body (OC) of the National Interconnected
Electric System (SENI), where the plant was not among those
available, the report adds.
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E C U A D O R
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ECUADOR: IDB OKs $63MM Loan to Support Purchase of Vaccines
-----------------------------------------------------------
The Inter-American Development Bank (IDB) approved two projects for
Ecuador. The first aiming to promote the recovery of employment and
improve the living conditions of the population. Meanwhile, the
second will support the purchase of vaccines for the country
through the COVAX Facility.
The first $200 million project is a programmatic series whose
objective is to improve the population's quality of life, through
the improvement in: the coverage, targeting and/or quality of
priority social programs, and the implementation of measures to
support recovery of employment.
This operation seeks to promote the recovery of employment within
particularly vulnerable segments of the population, through
strategic actions to close economic gender gaps and to create
formal employment linked to environmental objectives.
In addition, it seeks to consolidate economic benefits and child
development services within the social protection system, and the
availability of inputs to implement the national immunization
strategy.
For its part, the $63 million guarantee has as its main objective
to contribute in reducing COVID-19 morbidity and mortality, by
supporting efforts to interrupt the chain of transmission of the
disease, seeking to facilitate access to doses safe and effective
vaccines against COVID-19. Specifically, through this guarantee
instrument, the Bank will guarantee Ecuador's the financial
obligations (of future payments) with GAVI Alliance within the
framework of the Committed Purchase Agreement.
This is expected to benefit the population groups prioritized for
the first immunizations under COVAX Facility, corresponding to
3,528,600 people (20.1% of the population).
The $200 million project has an 18-year amortization period and an
interest rate based on LIBOR. Meanwhile, the credit guarantee of
$63 million has a 25-year amortization period.
As reported in the Troubled Company Reporter-Latin America on March
2, 2021, Moody's Investors Service has affirmed the Government of
Ecuador's long-term foreign-currency issuer and senior unsecured
rating at Caa3 and changed the outlook to stable from negative.
=====================
P U E R T O R I C O
=====================
JJE INC: Court Confirms Amended Plan
------------------------------------
Jje Inc. has won confirmation of its Chapter 11 Plan.
Judge Mildred Caban Flores has entered an order that the Amended
Disclosure Statement of Jje Inc. filed on Sept. 17, 2020, is
finally approved. The Amended Plan filed by debtor dated Sept. 17,
2020, is confirmed as supplemented on Dec. 16, 2020, and on Jan.
26, 2021.
As reported in the TCR, the Debtor has proposed a Chapter 11 plan
that will award unsecured creditors a total sum of $25,965 which
represents a 20% distribution for this class. The Plan will be
funded with cash available proceeds from the revenue that the
hospice generates after paying operating expenses and taxes. The
Debtor's income is based on the admissions of patients to provide
treatment, which is the Debtor's business.
A full-text copy of the Amended Disclosure Statement dated Sept.
17, 2020, is available at https://tinyurl.com/y345ngps from
PacerMonitor at no charge.
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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T R I N I D A D A N D T O B A G O
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CL FINANCIAL: Liquidator Selling 94.24% Colfire Shares
------------------------------------------------------
Anthony Wilson at Trinidad Express reports that CL Financial
Limited liquidator Grant Thornton is selling the group's 94.24 per
cent shareholding in Colfire (Colonial Fire and General Insurance
Company), the local property and casualty (P&C) insurer.
Colfire sources said the company was T&T's number one motor insurer
in 2019 and 2020, and is the country's third largest property
insurer, according to Trinidad Express.
Colfire principally underwrites policies relating to motor,
property, casualty and marine, the report relays. It recorded
gross premium income of $291 million and net premium revenue of
$195 million in 2019, the last year for which its financials were
audited, the report discloses.
Profits for the company in 2020 would have been higher than in
2019, Colfire sources said, because the Covid-19 pandemic caused
fewer accidents on the country's roads, which translated into a
reduction in claims, the report says.
Colfire sources said this is the second active attempt to dispose
of the assets of the company, the report relays. The first took
place under the chairmanship of former minister of finance Gerald
Yetming in the 2014-to-2015 period, the report discloses.
The sources said a back-of-the-envelope valuation of the insurance
company during the period of the first sale attempt put Colfire's
worth at between $280 and $300 million, the report notes.
ANSA McAL and Jamaica's GraceKennedy group were the two companies
shortlisted by the CL Financial adviser at the time,
PricewaterhouseCoopers, during the first bidding-process. the
report relays.
The report notes that the bids submitted by the companies were
close, leading CL Financial to call them in for separate meetings,
seeking clarification of their proposals, Colfire sources said,
adding that that process concluded without a preferred bidder being
chosen.
Government sources indicated that Grant Thornton hired Broadspan to
conduct a current valuation of Colfire—a decision the Ministry of
Finance initially took objection to, but eventually withdrew its
objection, sources said, the report relays.
A website giving information on Colfire and a process through which
interested parties can get more information has been set up. The
website indicates that Colfire "has a large customer base, high
retention rates and a wide network of agents throughout the
country," the report discloses.
Companies that are interested in bidding for Colfire must fill out
a form on the website and if they are accepted, they will be given
access to a data room, the report says.
The information on the website that is available to the general
public does not disclose that CL Financial is in liquidation.
* * *
As reported in the Troubled Company Reporter-Latin America on Aug.
6, 2015, Trinidad Express reports that the Constitution Reform
Forum (CRF) has called on Finance Minister Larry Howai to refrain
from embarking on an "unnecessary drain on the Treasury" by
appealing the decision of a High Court judge, who ordered that the
Minister fulfil a request by president of the Joint Consultative
Council (JCC) Afra Raymond for financial details relating to the
bailout of CL Financial Limited. The CRF issued a release stating
that if the decision is appealed, not only will it be a waste of
finance but such a course of action will also demonstrate a "lack
of commitment by the Government to the spirit and intent of the
Freedom of Information Act FOIA", under which the request was
made, according to Trinidad Express.
On July 7, 2014, Trinidad Express said that the Central Bank has
placed the responsibility of voluntary separation package (VSEP)
negotiations for workers at insurance giant Colonial Life
Insurance Company Ltd. (CLICO) with the company's board, after
which it will review accordingly, the bank said in a statement.
The bank's statement follows protest action by CLICO workers,
supported by their union, the Banking, Insurance and General
Workers' Union (BIGWU), outside the Central Bank in Port of Spain,
according to Trinidad Express.
In a separate TCRLA report on June 26, 2014, Caribbean360.com said
that the Trinidad and Tobago government has welcomed an Appeal
Court ruling that the Attorney General Anand Ramlogan said saves
the country from paying out more than TT$1 billion (TT$1 = US$0.16
cents) to policyholders of the cash-strapped CLICO. The Appeal
Court overturned the ruling of a High Court that ruled members of
the United Policyholders Group (UPG) were entitled to be paid the
full sums of their polices. CLICO financially caved in on itself
at the end of 2008 after the investment instruments of major
policyholders matured and they wanted hundreds of millions of
dollars they were owed.
On Aug. 6, 2013, the TCR-LA, citing Caribbean360.com, said that
over TT$8 billion worth of CLICO's profitable business will be
transferred to Atruis, a new company that will be owned by the
state. The Trinidad Express said that the Cabinet approved the
transfer as the Finance and General Purposes Committee continues
to discuss a letter of intent hammered out by the Ministry of
Finance and CL Financial's 400 shareholders, which envisions
taxpayers will recover the more than TT$20 billion Government has
injected since 2009 to keep CL subsidiary CLICO and other
companies afloat.
At its annual general meeting in Sept. 2013, CL Financial
shareholders voted to extend the agreement with Government until
August 25, 2014, while Cabinet decides on a new framework accord
to recover the debt owed to Government through divestment of CL
subsidiaries, including Methanol Holdings, Republic Bank,
Angostura Holdings, CL World Brands and Home Construction Ltd.,
Caribbean360.com related. Proceeds from the divestment of these
assets will go toward Government's recovery of the billions it
pumped into CLICO.
TCRLA reported on Sep 22, 2011, Caribbean News Now, citing
Reuters, said that the cost of the Trinidad and Tobago
government bailout of CL Financial Limited is likely to rise to
more than TT$3 billion.
*********
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 2021. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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The TCR Latin America subscription rate is US$775 per half-year,
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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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