/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/210419.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, April 19, 2021, Vol. 22, No. 72 Headlines B R A Z I L BRAZIL: Sao Paulo Office Market Gets Worst Occupancy Rate in 13 Yrs ELDORADO BRASIL: Fitch Cuts LT IDRs to B-, Keeps Rating Watch Neg. MULTIPLAN EMPREENDIMENTOS: Reopens Shopping Malls in Rio SIMPAR SA: Fitch Affirms 'BB-' LT IDRs, Alters Outlook to Positive C A Y M A N I S L A N D S LUCKIN COFFEE: Gets $250M Investment From Centurium, Joy Capital D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Inflation up 0 .60% in March, Central Bank Says P E R U TERMINALES PORTUARIOS: Fitch Ups USD110MM Sec. Notes Rating to BB+ P U E R T O R I C O BETTEROADS ASPHALT: Files Plan, Says Deal With Lenders Near HOSPEDERIA VILLA VERDE: Seeks to Hire Frye Maldonado as Counsel X X X X X X X X [*] BOND PRICING: For the Week April 12 to April 16, 2021 [^] BOOK REVIEW: Oil Business in Latin America: The Early Years - - - - - =========== B R A Z I L =========== BRAZIL: Sao Paulo Office Market Gets Worst Occupancy Rate in 13 Yrs ------------------------------------------------------------------- Rio Times Online reports that with more companies being forced to postpone the return of work to corporate spaces, due to social isolation measures imposed by the worsening of the pandemic, the office market in Sao Paulo continues to show an increase in returned leases and, consequently, in the vacancy rate. According to data from consultancy SiiLA, the high-standard office industry (A+ and A) in the city of Sao Paulo registered a negative net absorption of 31,000 square meters in the first quarter of this year, the report relays. The sector's vacancy rate increased two percentage points in relation to December, to 21.2% at the end of March, according to SiiLa, adds the report. 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. ELDORADO BRASIL: Fitch Cuts LT IDRs to B-, Keeps Rating Watch Neg. ------------------------------------------------------------------ Fitch Ratings has downgraded Eldorado Brasil Celulose S.A.'s (Eldorado) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'B-' from 'BB-' and its National Long-Term Rating to 'BB-(bra)' from 'A(bra)'. Fitch has also downgraded the rating of the 2021 unsecured notes issued by Eldorado Intl. Finance GmbH to 'B-'/'RR4' from 'BB-'. The notes are guaranteed by Eldorado and Cellulose Eldorado Austria GmbH. All ratings remain on Rating Watch Negative. The downgrades reflect still elevated refinancing risk due to the high uncertainties of the timing of the conclusion of the arbitration process between J&F Investimentos S.A. (J&F) and Eldorado's minority shareholder, Paper Excellence. The continued delay and uncertainties surrounding the company's future shareholding structure have limited Eldorado's ability to extend its debt profile and improve its capital structure, while it gets closer to the maturity of its USD350 million senior notes in June 2021. If Eldorado does not conclude the issuance of new debt in one month, the ratings will be downgraded by more than one notch. KEY RATING DRIVERS Elevated Refinancing Risk: Eldorado had cash and marketable securities of BRL950 million as of Dec. 31, 2020 and faces about BRL5.6 billion of debt maturing by December 2021. Although Eldorado is expected to generate about BRL1.5 billion of FCF in 2021, the company remains heavily reliant upon its ability to rollover bank debt and issue new debt to replace its USD350 million bond maturing in June. Litigation Limits Flexibility: Eldorado's financial flexibility is limited while the conclusion of the process remains uncertain. The company announced the conclusion of the arbitration process between J&F and Paper Excellence on Feb. 3, 2021. Paper Excellence won the process, allowing it to acquire the remaining 50.6% of Eldorado that is owned by J&F, thereby increasing its stake in the company to 100%. However, an annulment proceeding was filed by J&F and the final conclusion of the arbitration process will take longer than expected, postponing the release of J&F's guarantees and the change of Eldorado's control. Elevated Pulp Prices: The market pulp industry is cyclical; prices move sharply in response to changes in demand or supply. Pulp prices have increased sharply during 2021 after two brutal years of low prices, supported by supply and logistical constraints caused by mill closures, maintenance downtime and the shortage of containers. Fitch projects average BEKP prices of USD650/ton in 2021, an increase from USD460/ton in 2020. The movement of prices away from the marginal cost levels of recent years will provide producers with a window of opportunity to generate strong cash flow from operations before 2022 and 2023, when the next round of capacity expansions become operational. Stronger FCF: Eldorado is expected to generate about BRL3.5 billion of EBITDA and BRL2.6 billion of cash flow from operations (CFFO) in 2021 and BRL2.7 billion and BRL2.3 billion, respectively, in 2022. This compares with BRL1.8 billion of EBITDA and BRL1.5 billion of CFFO reported in 2020. The company is expected to report strong FCF of BRL1.5 billion in 2021, following investments of about BRL1.2 billion and no dividends. Leverage Reduction: Eldorado's leverage reduction will be faster than previously projected due to the recovery of pulp prices. The company's net leverage ratio is expected to fall to about 1.5x during 2021 and 2022, from 3.8x in 2020. Eldorado's continued leverage reduction will depend on the absence of expansion projects and the company's ongoing focus to use FCF to pay down debt. Eldorado's deleveraging strategy in the past few years should allow Eldorado's balance sheet to absorb a period of higher investments, if the Vanguarda II project is approved. Above-Average Business Profile: Eldorado has limited scale of operations compared with peers in Latin America and only one pulp mill, which is located in Brazil. This mill has an annual production capacity of 1.7 million tons of BEKP. Nevertheless, the company is extremely competitive in the industry due to its productive forests, a favorable climate for growing trees and a modern pulp mill. The company's cash cost of production was about USD115 per ton during 2020, which places it firmly in the lowest quartile of the cost curve. Eldorado also has some financial flexibility from its forest base, with the accounting value of the biological assets of its forest plantations at BRL3.0 billion as of Dec. 31, 2020. ESG Influence: Eldorado has an ESG Relevance Score of 5 for GGV - Governance Structure due to the uncertainties associated with the company's future shareholding structure that limits the company's financial flexibility, which has a negative impact on the credit profile, and is relevant to the ratings. DERIVATION SUMMARY Eldorado's business profile is strong and reflects its excellent position in the lowest quartile of the production cost curve due to its productive forests, a favorable climate for growing trees and a modern pulp mill. Similar to other Latin American pulp producers, Eldorado's pulp production cash costs are among the lowest in the world, ensuring its long-term competitiveness. This places the company's business risk profile in line with Latin America pulp companies like Suzano (BBB-/Stable), Empresas CMPC (BBB/Stable) and Celulosa Arauco (BBB/Negative). However, Eldorado has only one mill located in Brazil, while its peers have higher scale of operations and geographic diversification. Eldorado is also concentrated only in pulp and is therefore more exposed to the cyclicality of pulp prices compared with companies with higher product diversification like Arauco and CMPC, which are leaders in the wood products segment and tissue markets, respectively. Compared with its investment-grade peers, Eldorado's ratings are constrained by high refinancing risk and concentrated debt amortization profile and by the ongoing litigation issues at its controlling shareholders and weak corporate governance standards. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: -- Pulp sales volume of 1.75 million tons in 2021 and 2022; -- Average net hardwood pulp prices of USD650 per ton in 2021 and USD600 per ton in 2022; -- Average FX rate of 5.4 BRL/USD in 2021 and 5.1 BRL/USD in 2022; -- No dividends; -- Base case does not incorporate investments in the new pulp mill. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Conclusive outcome of the arbitrage process; -- Refinancing of the bond due in June 2021. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- Failure to refinance the bond due in June 2021 in one month will result in a multi-notch ratings downgrade. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE High Refinancing Risk: Eldorado has high refinancing risk, with about BRL5.6 billion of debt due in the short term, including the USD350 million senior unsecured notes due in June 2021. The continued delay in the final conclusion of the arbitration process and the uncertainties associated with the company's future shareholding structure, limit the company's financial flexibility and capacity to extend its debt profile and improve its capital structure. Eldorado had cash and marketable securities of BRL950 million as of Dec. 31, 2020 and total debt of BRL7.7 billion. Short-term debt totaled BRL5.6 billion at the end of the year and debt falling due in 2022 was BRL1.9 billion. Excluding trade finance lines, debt maturities in the short term were about BRL3.5 billion. As of Dec. 31, 2020, total debt was composed of trade finance lines and pre-export financing (55% of total debt), senior unsecured notes (24%), loans from the Brazilian Development Bank (17%), and others (4%). ESG CONSIDERATIONS Eldorado has an ESG Relevance Score of '4[+]' for EFM Environment -- Energy Management as the company sells excess energy to the grid from cogeneration based upon a renewable resource, which has a positive impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Eldorado has an ESG Relevance Score of '5' for GGV -- Governance Structure due to the arbitrage process involving J&F and the company's non-controlling shareholder, Paper Excellence, which has a negative impact on the credit profile and is highly relevant to the rating, resulting in a change to the rating. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. MULTIPLAN EMPREENDIMENTOS: Reopens Shopping Malls in Rio -------------------------------------------------------- Rio Times Online reports that Multiplan announced that, following guidance from municipal authorities, it has reopened the shopping malls it operates in the city of Rio de Janeiro. Opening hours will be reduced, the report says. The company has four malls in operation in the city of Rio de Janeiro: Barra Shopping, New York Center City, Village Mall, and Park Shopping Campo Grande. A fifth, Park Jacarepagua, should be opened at the end of the year, according to Rio Times. The report relates that in total, the reopened establishments add up to a little more than 170,000 square meters of gross leasable area. On average, the four malls ended December with an occupancy rate of almost 95%, the report notes. In early April, Rio mayor Eduardo Paes issued a municipal decree authorizing non-essential trade from 10 a.m. to 6 p.m., the report adds. As reported in the Troubled Company Reporter-Latin America on Dec. 18, 2017, S&P Global Ratings said it has affirmed its global scale 'BB+' ratings on Multiplan Empreendimentos Imobiliarios, with a negative outlook. S&P subsequently withdrew them at the issuer's request. The national scale and debt ratings on Multiplan were unaffected by the withdrawal. SIMPAR SA: Fitch Affirms 'BB-' LT IDRs, Alters Outlook to Positive ------------------------------------------------------------------ Fitch Ratings has affirmed the Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) of Simpar S.A. and JSL S.A. at 'BB-' and the Long-Term National Scale Ratings of Simpar, JSL and Vamos Locacao de Caminhoes Maquinas e Equipamentos S.A. at 'AA-(bra)'. At the same time Fitch also affirmed Simpar Europe's and Simpar Finance S.a.r.l.'s senior unsecured debt ratings at 'BB-'. The Outlook was revised to Positive from Stable. The Positive Outlook reflects expectations Simpar will continue to strength its operational cash generation and manage its consolidated leverage at more moderate levels. Simpar's ratings reflect its strong business profile, leading position in the Brazilian logistics industry and diversified service portfolio. The group benefits from long-term contracts with medium to large corporate clients for a significant part of its revenues and a track record of resilient operating performance throughout economic cycles. The ratings incorporate the group's strong growth strategy, which is partially mitigated by its above-average financial flexibility, adequate liquidity and well spread debt amortization profile. KEY RATING DRIVERS Strong Market Position: Simpar has a leading position in the Brazilian logistics industry with a diversified portfolio of businesses and a presence in multiple sectors of the economy. The group's strategic and operational nature of the service it provides, coupled with long-term contracts for most of its logistic and heavy vehicle rentals, minimizes its exposure to more volatile economic cycles. The group's significant operating scale has made it an important purchaser of light vehicles and trucks, giving it significant bargaining power relative to peers. JSL Logistica focuses on supply chain management and transportation, Movida Participacoes S.A. (BB-/Stable) on light vehicles and fleet rental, Vamos on heavy vehicles and equipment rentals, and CS Brasil Participações e Locações on fleet rental for the public sector. Robust EBITDA: The base case scenario for Simpar presents expected strong and growing consolidated EBITDA based on recent acquisitions, organic growth and improving margins. Movida and Vamos should be the most important contributors to the EBITDA expansion in 2021, as these two businesses regain traction after the worst period of the 2020 lockdown restrictions. JSL Logistics will continue to grow, improve margins and become a more asset light operation. Simpar should reach consolidated EBITDA at BRL2.8 billion (23% margin) in 2021 and BRL3.6 billion (24%margin) in 2022, from BRL2.1 billion (22% margin) in 2020. Moderate Leverage: JSL's follow-on in 2020 and Vamos' IPO in 2021 raised BRL2 billion in equity, enhancing the group's ability to conciliate its growth strategy with a sound capital structure. A continued improvement in the operating margins of the logistics and vehicle rental business is important to temper medium-term leverage. Simpar's consolidated net leverage, measured by total net debt/EBITDA, should be around 3.5x from 2021 to 2023, comparing with an average of 4.3x in the last four years. Manageable Negative FCF: FCF should remain negative, on average, at BRL2.6 billion from 2021 to 2023, pressured by annual average capex of BRL3.4 billion. Cash flow from operations (CFFO) should range between BRL960 million and BRL1.1 billion during this period, benefitting from growing EBITDA. CFFO was BRL2.0 billion in 2020, while FCF was negative at BRL1.5 billion after capex of BRL3.8 billion. Strong Parent and Subsidiary Linkage: JSL's and Vamos' ratings reflect the companies' strong legal, operational and strategic link with controlling shareholder, Simpar (HoldCo), according to Fitch's Parent and Subsidiary Rating Linkage Criteria, which equalizes the ratings of the three companies. In addition to relevant ownership, Simpar guarantees some of both companies' debt, which, in some cases, also have consolidated financial covenants. Companies also benefit from important commercial synergies, such as greater bargaining power when buying vehicles and negotiating with customers. At Simpar, board control and relevant ownership stakes in its operating companies also mitigate the structural subordination of its debt, with no upstream dividends or intercompany loans restrictions that a majority board vote cannot overcome. DERIVATION SUMMARY Simpar's bargaining power and business position tend to be relatively closer to Localiza Rent a Car S.A. (BB/Negative), and much stronger than that of Ouro Verde Locacao e Servico S.A. (BB-/Stable). Compared with Localiza, Simpar has a weaker financial profile with higher leverage and more pressured FCF. Compared with Ouro Verde, Simpar has higher leverage and a similar liquidity position but a much better business profile and access to credit markets. Compared to Rumo S.A. (BB/Negative), both companies share similar business risks, considering their respective business traits, but Simpar's leverage is higher. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Average consolidated annual revenue growth at 20% from 2021 to 2023; -- Consolidated EBITDA margins at 24%, on average, from 2021 to 2023; -- Consolidated net capex at around BRL3.4 billion, on average, from 2021 to 2023; -- Cash balance remains sound compared with short-term debt; -- Dividends at 25% net income; -- No large-scale M&A activity or equity sale. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Consolidated net adjusted debt/EBITDA below 3.5x on a sustainable basis. -- Strengthening of the company's scale and profitability, without further deterioration of its's capital structure. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Limits to Simpar's unrestricted ability to access the operating companies' cash; -- Failure to preserve liquidity and inability to access adequate funding; -- Prolonged declines in demand coupled with the company's inability to adjust operations; -- Consolidated net adjusted leverage above 4.5x on a sustainable basis; -- Material deterioration in the group's fleet rental and logistics businesses. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Strong Liquidity: Simpar's robust liquidity position is a key credit consideration, with cash covering short-term debt by an average of 1.8x during the last four years. The group's expected negative FCF, a result of its growth strategy, will be financed by debt in the rating scenario. Simpar had BRL5.8 billion of cash and equivalents and BRL14.2 billion of total adjusted debt (11% secured), with BRL2.0 billion due in the short-term (3.2x cash coverage ratio) as of December 2020. The group's debt profile is mainly comprised of local debentures, promissory notes and CRA issuances (64%) and bond issuances. Simpar's financial flexibility is also supported by the group's ability to postpone growth capex to adjust to the economic cycle and to the considerably number of the group's unencumbered assets, with a book value of fleet over net debt at 1.5x. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of Environmental, Social and Corporate Governance (ESG) Credit Relevance is a Score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. =========================== C A Y M A N I S L A N D S =========================== LUCKIN COFFEE: Gets $250M Investment From Centurium, Joy Capital ---------------------------------------------------------------- Luckin Coffee Inc. (in Provisional Liquidation) (OTC: LKNCY) on April 15, 2021, announced that it has entered into an investment agreement (the "Investment Agreement") with an affiliate of Centurium Capital, as the lead investor, and Joy Capital. Both Centurium Capital and Joy Capital are leading private equity investment firms in China and current shareholders of the Company. Pursuant to the Investment Agreement, (i) Centurium Capital has agreed to an investment, through a private placement, totaling approximately US$240 million in senior convertible preferred shares of the Company ("Senior Preferred Share(s)"), and (ii) Joy Capital has agreed to an investment, through a private placement, totaling approximately US$10 million in Senior Preferred Shares (collectively, the "Transactions"). Under certain circumstances, Centurium Capital and Joy Capital may be able to upsize on a pro rata basis for an additional US$150 million. The closing of the Transactions will be subject to a series of closing conditions, including the implementation of a restructuring of Luckin Coffee's $460 million 0.75% Convertible Senior Notes due 2025 through a scheme of arrangement under section 86 of the Cayman Islands Companies Act (2021 Revision) in accordance with the terms of the recently announced restructuring support agreement. Luckin Coffee plans to use the proceeds of the investment to facilitate the Company's proposed offshore restructuring and fulfill its obligations under its recently announced settlement with the U.S. Securities and Exchange Commission. The Transactions allow the Company to focus its balance sheet on the continued execution of its business plan, focused on growing the core coffee business and achieving its long-term growth targets. According to a U.S. regulatory filing, the salient terms of the transactions include: * Purchase and Sale: The Company will initially issue and sell to Centurium Capital a total of 295,384,615 Senior Preferred Shares and Joy Capital a total of 12,307,692 Senior Preferred Shares, at the issue price of US$0.8125 per Senior Preferred Share (being equivalent to US$6.50 per ADS on an as-converted basis). * Conversion: At the holder's option, each Senior Preferred Share can be convertible into Class A Ordinary Shares of the Company (or an equivalent number of ADSs) at the then applicable conversion price. * Price Adjustment: The applicable initial conversion price shall be equal to US$0.8125 per Senior Preferred Share (being equivalent to US$6.50 per ADS on an as-converted basis) and be subject to certain customary adjustments * Upsize Right: If the Company has not received an approval from the State Administration of Foreign Exchange to repatriate any funds outside of China by a benchmark date, which is the later of November 15th, 2021 and the 60th day after the date on which the petition to convene a scheme meeting is filed in Cayman court, Centurium Capital and its permitted designated investors will have the right to purchase a pro rata entitlement to an additional 184,615,385 Senior Preferred Shares, at the issue price of US$0.8125 per Senior Preferred Share (being equivalent to US$6.50 per ADS on an as-converted basis), by notifying the Company and Joy Capital of its decision to exercise such right within 40 days after such benchmark date. If Centurium Capital exercises such right, Joy Capital will have the right to purchase a pro rata entitlement to the additional 184,615,385 Senior Preferred Shares, at the issue price of US$0.8125 per Senior Preferred Share (being equivalent to US$6.50 per ADS on an as-converted basis), by notifying the Company and Centurium Capital within 5 business days thereafter. * Voting Rights: Each Senior Preferred Share will be entitled to vote on all matters submitted to a vote of the holders of Class A Ordinary Shares on an as-converted basis, together with the holders of Class A Ordinary Shares, as one single class. A copy of the SEC filing is available at https://bit.ly/3e9iHNL Negotiations between Luckin Coffee, Centurium Capital and Joy Capital were supported throughout by the Company's financial advisor, Houlihan Lokey (China) Limited, legal advisors, Davis Polk & Wardwell LLP and Harney Westwood & Riegels, and the Joint Provisional Liquidators, Mr. Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Ms. Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited. About Luckin Coffee Luckin Coffee (OTC: LKNCY) -- http://www.luckincoffee.com/-- has pioneered a technology-driven retail network to provide coffee and other products of high quality, high affordability, and high convenience to customers. Empowered by big data analytics, AI, and proprietary technologies, Luckin Coffee pursues its mission to be part of everyone's everyday life, starting with coffee. Luckin Coffee was founded in 2017 and is based in China. In July 2020, Luckin Coffee called in liquidators in the Cayman Islands to oversee a corporate restructuring and negotiate with creditors to salvage its business, less than four months after shocking the market with a US$300 million accounting fraud. The Company hired Houlihan Lokey as financial advisers to implement a workout with creditors. The start-up company also named Alexander Lawson of Alvarez & Marsal Cayman Islands and Tiffany Wong Wing Sze of Alvarez & Marsal Asia to act as "light-touch" joint provisional liquidators (JPLs) under a Cayman Islands court order. The Joint Provisional Liquidators of Luckin Coffee, Alexander Lawson of Alvarez & Marsal Cayman Islands Limited and Wing Sze Tiffany Wong of Alvarez & Marsal Asia Limited, on Feb. 5, 2021, filed a verified petition under chapter 15 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Case No. 21-10228). The Chapter 15 Petition seeks, among other things, recognition in the United States of the Company's provisional liquidation pending before the Grand Court of the Cayman Islands. DLA Piper LLP (US), led by Thomas R. Califano and Robert Craig Martin, is the U.S. counsel. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Inflation up 0 .60% in March, Central Bank Says ------------------------------------------------------------------- Dominican Today reports that inflation has already accumulated a rise of 8.3% in the last year, well above the average target of around 4% of price increase with which the Government expects to close the year. According to the Central Bank of the Dominican Republic, just in March alone, the rise was 0.60%, slightly lower than the 0.68% of February and 0.97% of last January, the report notes. What most substantial inflations in March were the price increases in regular gasoline (4.83 %) and Premium (4.44 %) and diesel (4.44 %) registered at the beginning of that month, according to Dominican Today. In the first quarter, the increase in prices was 2.27%, with some products even reaching increases of up to 60% in that period, the report relays. Limes, passionfruits, and avocados registered increases of 60.4%, 31.6%, and 19.7%, respectively. On the other hand, ripe and green bananas and onions decreased their prices between 19% and 21% between January and March, according to data published by the Central Bank, the report discloses. The Issuer expects that inflation will "begin its convergence" towards the target of between 3% and 5% per year from June of this year, the report says. The International Monetary Fund director for the Western Hemisphere, Alejandro Werner, said that the price rebound, a worldwide phenomenon, will be transitory, according to Dominican Today. "Inflation in the second quarter is going to show an increase that reflects the low price levels that were in that 2020 period because there was a significant drop due to the pandemic," he said. According to the Central Bank, in March, the basic food basket registered a cost of 37,774.71 pesos (US$663), the report relays. The amount is average and varies according to the social stratum. In this sense, in the poorest households, the cost was 22,233.67 pesos (US$390) in that month, while among the families of the highest quintile, 62,721.03 pesos (US$1,105) were allocated to the basic food basket last month, the report says. Inflation impacts in the same way—by income levels. The price indexes by income quintiles varied in March by 0.35% for quintile 1, the poorest by 0.45% for quintile 2, and 0.48% for quintile 3, the report discloses. This behavior of the price indexes of the first three quintiles is explained by the price increases of fuel, land transportation services, personal care services, and meals prepared outside the home, the report says. Meanwhile, the higher income quintiles registered inflation rates of 0.52 % and 0.80 %, respectively, mainly due to the rising prices of fuel and airline tickets, which have greater relative weight in households with higher purchasing power, 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). ======= P E R U ======= TERMINALES PORTUARIOS: Fitch Ups USD110MM Sec. Notes Rating to BB+ ------------------------------------------------------------------ Fitch Ratings has upgraded Terminales Portuarios Euroandinos Paita's (Paita) USD110 million secured notes to 'BB+' from 'BB' with a Stable Outlook. Paita's upgrade to 'BB+' reflects the strong volume and revenue performance historically observed, which resulted in financial metrics in excess of Fitch's projections, along with the expectation of this trend being maintained in the long term. While Fitch continues to recognize the asset is primarily regionally focused, the coronavirus pandemic had no significant effects on the asset's performance and Fitch expects future volume growth will continue to be driven by agricultural and finishing products foreign demand and local production levels. The upgrade also incorporates the successful prefunding of the Phase III capital improvement program. In past reviews, Fitch's projected metrics were affected by the provisions expected to fund the expansion, constraining the project's rating. RATING RATIONALE Paita's rating reflects a weaker port asset with relatively high volatility and some reliance on cargo types, business lines and customers, along with modest flexibility to manage toll increases. The rating also considers the project's obligation to perform capital investments once certain thresholds are met, leading to tighter financial ratios and potential dependence on cash reserves, exposure is mitigated by the appropriate prefunding mechanism. Although the coronavirus pandemic had significant effects on most transportation assets, ports have shown greater resilience due to their cargo transport nature. In particular, the effects on Paita have been very limited compared with those observed under Fitch's rated portfolio. Fitch revised its rating case to incorporate the better than expected volume of 2020. The rating case minimum and average debt service coverage ratio (DSCR) is 2.1x and 2.7x, respectively which could indicate a higher rating, according to applicable criteria. However, the rating is currently limited by the potential effects of the coronavirus pandemic. KEY RATING DRIVERS Exposure to Cargo Volume - Revenue Risk (Volume): Weaker - The Port of Paita is a secondary port of call with some concentration in cargo types, business lines and customers. Profitability has been improving given the operator's strategic emphasis on special services and the region's increasing productivity. The port is exposed to cargo volatility as contractual agreements with shipping lines are limited, and weak overland transportation infrastructure limits the service area mainly to commodity exports. Additionally, the region is exposed to material volatility of fishing-related exports due to the area's exposure to climatic effects related to El Nino. Moderate Pricing Flexibility - Revenue Risk (Price): Midrange - Port tariffs and fees were initially established in the concession agreement and are subject to an annual adjustment to reflect last year's inflation, and a five-year adjustment to begin in 2019, which will reflect the port's productivity level. Tariffs for the provision of special services are not regulated and can be adjusted to follow market prices. A Minimum Revenue Guarantee (MRG) was granted by the Government of Peru but Fitch considers it of limited value due to its amount and the complex and extensive process required for execution. Defined Capital Program - Infrastructure Development and Renewal: Midrange - The concession agreement established a well-defined capital improvement, planning and funding process composed of four phases, and includes mandatory and optional investments. Phase I included the majority of investments and was finalized in 2014, and Phase II was completed in 2016. Subsequent phases are triggered by defined volume levels, and are funded by special, separate reserves. Phase III already reached the defined volume level and it's been fully prefunded. Adequate Structural Protections - Debt Structure: Midrange - Fixed-rate senior debt with a structure that incorporates a strong distribution test in order to trap cash to prefund future investment costs. The project's financial flexibility is sustained by adequate liquidity reserves. The amortization schedule results in significant back-loading, since half of the debt is expected to be repaid in the last six years of the debt's 25-year term. Financial Profile: Revenues in 2020 increased by 17.8% as a result of increased demand for agriculture and fishing products. Paita was able to maintain a robust coverage ratio of 2.0x in 2020. Fitch's revised its rating case resulting in a robust average DSCR of 2.7x and minimum DSCR of 2.1x. PEER GROUP Paita compares with Commonwealth Ports Authority (CPA; BB/Stable). Both are small ports and have weaker volume risk attributes with CPA having nearly a 100% import-based cargo operation. Paita is considered an operator port, while CPA operates under a 'landlord' program, although Fitch's criteria does not directly favor one type over the other. Under Fitch's rating cases, CPA has an average DSCR of 2.1x, and Paita has 2.7x, which justifies the difference in the rating. Alabama State Port Authority (ASPA; BBB+/Stable) is a port with similar attribute assessments of weaker volume risk, reflecting its exposure to commodities, coupled with a midrange price assessment reflecting its established history with its users and the availability of state tax revenues in times of volatility. ASPA's average DSCR of 1.4x in the rating case is below that of Paita but compensated by the state's resources. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Sustained and significant volume and revenue overperformance above Fitch's base case and the expectation that this trend will be sustained in the long-term; -- The application of maximum tariffs without a negative reaction on the demand. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- Continued volume underperformance below 2.0% and the expectation that this trend will sustain in the long-term. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. CREDIT UPDATE Revenues in 2020 were USD59.7 million, 42.8%% higher than Fitch's Rating Case (FRC). Revenues continue to show a positive growth trend since 2015, except for 2017, which was affected by the El Nino phenomenon. In 2020, twenty-foot equivalent unit (TEU) containers' volume increased 10.8% to 329,430 units, above FRC expectation of -15.0%. The coronavirus pandemic slightly affected the port during March, April, and June 2020. January and February 2021 also registered a solid performance on volume, having an average growth of 4.4% in TEUs compared with the same period of 2019. The port terminal has continued to benefit from the development of local production areas, which have sustained the region's trade dynamics. Tariffs increased by 6.0% in 2020, which is equivalent to the last 12-month US CPI of 1.3% and a productivity factor (X-factor) of 4.7%. In contrast, Fitch expected an inflation variation of 2.4% and an X-Factor of -2.0%. Regarding operating expenses (OpEx), Paita incurred expenses of USD18.9 million in 2020, compared with USD17.8 million assumed under the FRC. The company successfully prefunded the Phase III capital improvement program, having a total balance of USD19.8 million as of December 2020. The Phase IV funding is being done in line with the pre-established schedule, reflecting a balance of USD9.1 million. The 2020 DSCR for 2020 was 2.0x, which outperformed FRC's forecast of 1.3x, given the aforementioned higher-than-expected revenues paired with an effective control over operating expenses. FINANCIAL ANALYSIS Fitch has revised its volume assumptions under its base and rating cases to reflect actual performance in 2020. Under the base case, Fitch forecasts 2021's average quarterly volume level at 115.0% of 2019's volume level. Fitch expects volume will perform at a CAGR of 3.8% over the life of the debt from 2022 onwards. The CAGR incorporates the adverse effects of the El Nino phenomenon in 2030, a 1% reduction in tariffs from 2024 onward to consider the regulatory effects of productivity. Management's budgets for operating were stressed by 4.0%. Under these assumptions, minimum and average DSCRs are 2.2x and 3.1x, respectively with a Net Debt/EBITDA of 1.8x. The FRC assumed for 2021 an average quarterly volume level at 112.8% of 2019 levels. From 2022 onward, Fitch assumed a volume CAGR of 1.8%. Operating expenses were stressed an additional 4.0% over the base case. The rating case presents a minimum DSCR of 2.1x and average DSCR of 2.7x and net debt/EBITDA is 1.7x. SECURITY The Port of Paita is located in the region of Piura, a small city with low economic activity, 1,030km northwest of Lima. Paita is connected to a major highway that links it to the Yurimaguas port (Amazon system) with no significant competition. The location provides a competitive advantage over Callao and Guayaquil for serving the North-Western Peruvian market. A security package includes a pledge of all capital stock of the issuer/mortgage between the issuer and sub-collateral agent/perfected security interest in all of the issuer's assets. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of Environmental, Social and Corporate Governance (ESG) Credit Relevance is a Score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ===================== P U E R T O R I C O ===================== BETTEROADS ASPHALT: Files Plan, Says Deal With Lenders Near ----------------------------------------------------------- Betteroads Asphalt LLC submitted a Plan of Reorganization and a Disclosure Statement. The Debtor intends to commence solicitation of votes on the Plan based on the possibility of reaching an agreement with Banco Popular de Puerto Rico, Banco Santander Puerto Rico, FirstBank Puerto Rico and the Economic Development Bank (hereafter collectively, referred to as the "Lenders"). While the Debtor and the Lenders have engaged in arms' length negotiations seeking to resolve their differences and claims, still this agreement has not been completed. Once completed, the Disclosure Statement, as well as the Plan will be amended or supplemented to conform with the covenants to be agreed with the Lenders. Treatment of Claims Class 1 consists of the secured portion of the claim owed to BPPR, FirstBank, SFS and EDB on account of the Syndicated Credit Facility in the aggregate amount of $94,306,956.21. Class 1 is impaired. Class 2 consists of the secured portion of the claim owed to BPPR on account its direct credit facility in the aggregate amount of $19,098,906. Class 2 is impaired. Class 4 consists of the claim owed to Western Surety Company (CNA). This creditor has claimed against the Debtor the aggregate amount of $12,853,074. Class 4 is impaired. For the treatment of classes 1, 2 and 4, the Debtor and creditors are still working on a settlement agreement to resolve this claim. Treatment of this Class will be subject to the terms of a Settlement Agreement which still is being negotiated. Class 6 consists of all General Unsecured creditors. On the effective date of the plan allowed claimants shall receive from the Debtor a lump sum payment in the aggregate amount of $_____ to be paid pro-rata among all allowed claimants under this Class. This pro-rata distribution will be paid to each allowed general unsecured claim in a single lump-sum payment to be distributed on the effective date of the Plan. Class 6 is impaired. Class 8 consists of all Equity Security Interests of the Debtor. On the Effective Date, or as soon thereafter as reasonably practicable, all Betteroads Interests will be extinguished. Class 8 is impaired. While the Debtor and the Lenders have engaged in arms' length negotiations seeking to resolve their differences and claims, still this agreement has not been completed. Once completed, the Disclosure Statement will be amended or supplemented to conform with the covenants to be agreed with the Lenders. Attorneys for the Debtor: LUGO MENDER GROUP, LLC Betteroads Asphalt, LLC 100 Carr 165 Suite 501 Guaynabo, P.R. 00968-8052 Tel.: (787) 707-0404 Fax: (787) 707-0412 S/ Wigberto Lugo Mender Wigberto Lugo Mender USDC-PR 212304 wlugo@lugomender.com S/ Alexis A. Betancourt Vincenty Alexis A. Betancourt Vincenty USDC-PR 301304 a_betancourt@lugomender.com A copy of the Disclosure Statement is available at https://bit.ly/3mJ8gob from PacerMonitor.com. About Betteroads Asphalt and Betterecycling Corp Betteroads Asphalt LLC produces warm mix asphalt, which is used in airports, highways, neighborhoods, and environment projects. Betterecycling Corporation produces gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants. Both companies are based in San Juan, P.R. On June 9, 2017, creditors commenced involuntary bankruptcy petitions under Chapter 11 of the Bankruptcy Code against Betteroads Asphalt LLC (Bankr. D.P.R. Case No. 17-04156) and Betterecycling Corporation (Bankr. D.P.R. Case No. 17-04157). On Oct. 11, 2019, the court entered the "order for relief" after finding that the involuntary petitions were not filed for an improper bankruptcy purpose or with bad faith. Judge Enrique S. Lamoutte oversees the cases. The Debtors are represented by Lugo Mender Group, LLC. HOSPEDERIA VILLA VERDE: Seeks to Hire Frye Maldonado as Counsel --------------------------------------------------------------- Hospederia Villa Verde, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Frye Maldonado Law Office to handle its Chapter 11 case. Frye Maldonado Law Office will be paid an hourly rate of $150 and reimbursed with actual and necessary expenses. The firm received a retainer in the amount of $6,000. Harold Frye Maldonado, Esq., at Frye Maldonado, disclosed in a court filing that his firm is a disinterested person pursuant to Section 101(14) of the Bankruptcy Code. The firm can be reached through: Harold A. Frye Maldonado, Esq. Frye Maldonado Law Office 654 Ave Munoz Rivera, 654 Plaza San Juan, PR 00918 Phone: 787-767-3800 Fax: (800) 204-0744 Email: frye.maldonado@gmail.com About Hospederia Villa Verde Hospederia Villa Verde, Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 21-01015) on March 31, 2021, listing $500,001 to $1 million in both assets and liabilities. Harold A. Frye Maldonado, Esq., at Frye Maldonado Law Office, serves as the Debtor's legal counsel. =============== X X X X X X X X =============== [*] BOND PRICING: For the Week April 12 to April 16, 2021 --------------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- Sylph Ltd 2.4 65.1 9/25/2036 KY USD Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD YPF SA 16.5 67.3 5/9/2022 AR ARS Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL Enel Americas SA 5.8 32.7 6/15/2022 CL CLP Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Noble Holding Internat 6.1 62.0 3/1/2041 KY USD Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD 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 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 Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Banco Macro SA 17.5 65.2 5/8/2022 AR ARS Esval SA 3.5 49.9 2/15/2026 CL CLP Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Automotores Gildemeist 6.8 54.9 1/15/2023 CL 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 Embotelladora Andina S 3.5 37.9 8/16/2020 CL CLP Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY Noble Holding Internat 5.3 60.5 3/15/2042 KY USD 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 Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL 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 Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD Polarcus Ltd 5.6 71.8 7/1/2022 AE 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 YPF SA 16.5 67.3 5/9/2022 AR ARS Empresa de Transporte 4.3 30.9 7/15/2020 CL CLP Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD [^] BOOK REVIEW: Oil Business in Latin America: The Early Years --------------------------------------------------------------- Author: John D. Wirth Ed. Publisher: Beard Books Softcover: 282 pages List price: $34.95 Review by Gail Owens Hoelscher Buy a copy for yourself and one for a colleague on-line at http://is.gd/DvFouR This book grew out of a 1981 meeting of the American Historical Society. It highlights the origin and evolution of the state-owned petroleum companies in Argentina, Mexico, Brazil, and Venezuela. Argentina was the first country ever to nationalize its petroleum industry, and soon it was the norm worldwide, with the notable exception of the United States. John Wirth calls this phenomenon "perhaps in our century the oldest and most celebrated of confrontations between powerful private entities and the state." The book consists of five case studies and a conclusion, as follows: * Jersey Standard and the Politics of Latin American Oil Production, 1911-30 (Jonathan C. Brown) * YPF: The Formative Years of Latin America's Pioneer State Oil Company, 1922-39 (Carl E. Solberg) * Setting the Brazilian Agenda, 1936-39 (John Wirth) * Pemex: The Trajectory of National Oil Policy (Esperanza Duran) * The Politics of Energy in Venezuela (Edwin Lieuwen) * The State Companies: A Public Policy Perspective (Alfred H. Saulniers) The authors assess the conditions at the time they were writing, and relate them back to the critical formative years for each of the companies under review. They also examine the four interconnecting roles of a state-run oil industry and distinguish them from those of a private company. First, is the entrepreneurial role of control, management, and exploitation of a nation's oil resources. Second, is production for the private industrial sector at attractive prices. Third, is the integration of plans for military, financial, and development programs into the overall industrial policy planning process. Finally, in some countries is the promotion of social development by subsidizing energy for consumers and by promoting the government's ideas of social and labor policy and labor relations. The author's approach is "conceptual and policy oriented rather than narrative," but they provide a fascinating look at the politics and development of the region. Mr. Brown provides a concise history of the early years of the Standard Oil group and the effects of its 1911 dissolution on its Latin American operations, as well as power struggles with competitors and governments that eventually nationalized most of its activities. Mr. Solberg covers the many years of internal conflict over oil policy in Argentina and YPF's lack of monopoly control over all sectors of the oil industry. Mr. Wirth describes the politics and individuals behind the privatization of Brazil's oil industry leading to the creation of Petrobras in 1953. Mr. Duran notes the wrangling between provinces and central government in the evolution of Pemex, and in other Latin American countries. Mr. Lieuwin discusses the mixed blessing that oil has proven for Venezuela, creating a lopsided economy dependent on the ups and downs of international markets. Mr. Saunders concludes that many of the then-current problems of the state oil companies were rooted in their early and checkered histories." Indeed, he says, "the problems of the past have endured not because the public petroleum companies behaved like the public enterprises they are; they have endured because governments, as public owners, have abdicated their responsibilities to the companies." John D. Wirth was Gildred Professor of Latin American Studies at Stanford University. He died in June 2002 in Toronto. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *