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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
Monday, June 28, 2021, Vol. 22, No. 122
Headlines
A R G E N T I N A
TELECOM ARGENTINA: Court Deals Blow to ICT Price Controls
B A H A M A S
BAHAMAS: Expects $110 Million of FDI This Year
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Revisits Tax Reform as Revenue Tops US$1.1BB
DOMINICAN REPUBLIC: To Subsidize Products to Curb Inflation
P E R U
PERU: Worst Crisis Is Mass Job Losses, Castillo's Team Says
P U E R T O R I C O
ALEX AND ANI: Gets OK to Hire Kurtzman Carson as Claims Agent
T R I N I D A D A N D T O B A G O
CONSOLIDATED ENERGY: S&P Alters Outlook to Stable & Affirm 'B+' ICR
X X X X X X X X
[*] BOND PRICING: For the Week June 21 to June 25, 2021
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A R G E N T I N A
=================
TELECOM ARGENTINA: Court Deals Blow to ICT Price Controls
---------------------------------------------------------
bnamericas.com reports that an Argentine federal court has rejected
the extraordinary appeals of telecoms regulator Enacom against a
ruling that strengthened Telecom Argentina's stance against price
controls.
Although the court issued the ruling on June 18 already, it became
public only through a statement Telecom Argentina filed with
securities regulator CNV, according to bnamericas.com. The
decision confirms the partial suspension of the government decree
that defines telecoms as essential services, the report notes.
The same court had ordered in April the six-month suspension of
articles 1-6 of the decree, which relate to prices, the report
relays.
Prices
In early June, Enacom approved a 3% tariff increase for the month,
a 5% increase for July, and announced the next review for December,
the report discloses.
However, the courts influence the regulator's ability to determine
prices, the report notes. Aside from the Telecom Argentina
lawsuit, a ruling in Cordoba province favors pay TV association
ATVC and 500 national operators that opposed price controls, the
report relays.
Operators such as DirecTV and Telecentro are also suing.
Telecom Argentina had conditioned its investments on the ruling.
After the first ruling in favor, the company increased investments
to US$600 million, the report adds.
As reported in the Troubled Company Reporter-Latin America, Fitch
Ratings has affirmed the Long-Term Foreign Currency (FC) ratings of
Telecom Argentina S.A., including the 'B-' FC Issuer Default Rating
(IDR) and the 'B-'/'RR4' USD unsecured notes. Fitch has removed the
Rating Watch Negative (RWN) from both the Long-Term FC IDR and the
USD notes, including the 2025 and 2026 notes. The removal of the
Rating Watch reflects the company's USD103.6 million June 2021
maturity payment after successfully accessing dollars via the
official FX market.
=============
B A H A M A S
=============
BAHAMAS: Expects $110 Million of FDI This Year
----------------------------------------------
RJR News reports that Bahamas Prime Minister Dr. Hubert Minnis
disclosed that more than $110 million is being injected into the
economy by way of foreign direct investment in the real estate and
hotel sectors.
Dr. Minnis said those investments are expected to add more than
1,300 jobs to the workforce this year, according to RJR News.
He was speaking during the close of the 2021/2022 budget debate,
the report relays.
As reported in the Troubled Company Reporter-Latin America on Nov.
17, 2020, S&P Global Ratings lowered its long-term foreign and
local currency sovereign credit ratings on the Commonwealth of
The Bahamas to 'BB-' from 'BB'. At the same time, S&P Global
Ratings revised down its transfer and convertibility assessment to
'BB' from 'BB+'. The outlook is negative.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Revisits Tax Reform as Revenue Tops US$1.1BB
----------------------------------------------------------------
Dominican Today reports that the Dominican Government revisited its
interest in talks toward a fiscal pact so that can be enacted as of
next year, as revealed by the Minister of the Presidency, Lisandro
Macarrulla.
"We are going to start discussing now and contacts have already
begun within the Economic and Social Council (CES), which is where
the discussion of this issue should begin," said the official
during an interview on Telesistema, according to Dominican Today.
President Luis Abinader had indicated the need to start
negotiations to finalize the tax reform at the beginning of this
year, but the situation generated by the pandemic in terms of
income and prices had waylaid those intentions, the report notes.
According to the data managed by the General Budget Office, the
fiscal situation has improved. At the end of May, with revenue of
RD$66.03 billion (US$1.1 billion), an improvement of 18.6% with
respect to the RD$55.7 billion initially estimated, the report
relays.
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, 2021, 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: To Subsidize Products to Curb Inflation
-----------------------------------------------------------
Dominican Today reports that given the worrying rise in the prices
of necessities, President Luis Abinader reported that the State
would continue to subsidize some products to curb inflation.
"In the government we have to continue subsidizing so that it does
not become an inflationary effect," said Abinader at the working
table due to the international price crisis, together with his
Economic Cabinet and business representatives, according to
Dominican Today.
The report relays that Economy Minister Miguel Ceara Hatton
indicated that the main factors that justify inflation are:
- Price increases of the primary raw materials (commodities).
- Adverse factors in international means of transport via
freight.
The price movement reflects the increase in global aggregate demand
and is a short-term phenomenon until inventories are replenished.
There are no structural factors of domestic policy that create
inflation other than those inherent to the recovery.
Central Bank Governor Hector Valdez Albizu said that the current
crisis is imported during his speech, so it will not last long, 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, 2021, 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
=======
PERU: Worst Crisis Is Mass Job Losses, Castillo's Team Says
-----------------------------------------------------------
Maria Cervantes at Bloomberg News reports that the paramount issue
for Peru's economy is a swift recovery from the mass destruction of
jobs last year, while the widening fiscal deficit and recent
inflation spike are both temporary, according to economists
advising Pedro Castillo, the nation's probable next president.
The advisers, ex-central bank chief Oscar Dancourt and former World
Bank economist Pedro Francke also said in a joint interview that
the nation's inflation-targeting regime has served the country well
and shouldn't be tampered with, and added that the nation will have
no difficulty whatsoever in paying its debts, according to
Bloomberg News. Both men are potential candidates to become senior
policy makers if Castillo forms a government next month, Bloomberg
News says.
With all 18.9 million ballots counted from the June 6 election,
Castillo, a union activist from a Marxist party, is ahead by about
44,000 votes, Bloomberg News discloses. His opponent, Keiko
Fujimori, is challenging the result and trying to get some of the
votes for Castillo invalidated, Bloomberg News relays. If the
electoral court confirms Castillo's win, he'll take office July 28,
Bloomberg News notes.
Bloomberg News discloses that Peru's stocks, bonds and currency
have fluctuated this month as investors try to gauge just how
radical a Castillo administration would be. Francke and Dancourt's
comments may help assuage fears that Castillo would lead Peru down
a path similar to the one followed by the socialist government of
Venezuela, Bloomberg News relays.
However, the weak economy, the worst jobs market in decades and low
inflationary pressure do create space for a Castillo government to
do more to boost employment and accelerate the recovery, they said,
Bloomberg News notes. Castillo himself has pledged to boost
spending on health and education, and to fund this via a tax on
mining and oil companies, Bloomberg News relaus.
The recent increases in the inflation rate have more to do with
temporary supply problems than with an underlying trend toward
faster price rises, Dancourt said, Bloomberg News discloses. The
economy is operating far below capacity, which will tend to keep a
lid on price pressures, he added.
"The main problem that the economy is facing isn't inflation, but
rather mass unemployment," Dancourt said, Bloomberg News relays.
In September, when the unemployment rate in the capital, Lima, rose
to a record 16.5%, nationwide more than 6 million Peruvians had
been left jobless, the Labor Ministry said, Bloomberg News notes.
Cash Transfers
Dancourt, who led the central bank in 2005 and 2006, said he would
like to continue with the "Reactivate Peru" plan, implemented via
the bank, a government-guaranteed loan program for businesses with
subsidized interest rates, Bloomberg News relays. He also sees a
role for direct cash transfers to individuals, Bloomberg News
mptes.
Peru's central bank held its key interest rate at an all-time low
of 0.25% this month, but dropped its commitment to keep it there
for "a prolonged period," in a sign that it may now be looking
ahead to eventually tightening policy as the economy recovers,
Bloomberg News notes.
The central bank's inflation-targeting system over the last two
decades has "served the country well," Dancourt said, Bloomberg
News notes. Other polices such as regular interventions in the
foreign exchange markets, gradually reducing the use of dollars in
the economy, and maintaining high levels of foreign reserves, have
worked well and should be continued, Dancourt said, Bloomberg News
relays.
While Dancourt and Francke's message is popular with investors,
they are competing for influence with Marxists from Castillo's Free
Peru party, Bloomberg News discloses. Vladimir Cerron, the party's
leader, wrote on Twitter that if the program for which people voted
isn't applied, that would de-legitimize Castillo, Bloomberg News
relays.
Peru's bonds have erased their initial crash after the election.On
Tuesday, the yield on the nation's dollar debt due 2051 rose one
basis point, to 3.47%, Bloomberg News relates.
Peru's fiscal deficit widened to more than 8% of gross domestic
product last year, from 1.4% before the pandemic, Bloomberg News
notes. But Francke says this is transitory, and that they can get
it on a downward trend. Peru is both willing and able to honor all
of its debts, he added.
Peru's debt is equivalent to 35% of GDP, lower than Brazil's,
Mexico's and Colombia's, though higher than Chile's, Bloomberg News
relays.
"I don't see any doubt regarding the payment of the public debt,
because Peru has ample resources to pay it," Francke said. "It's a
topic that's completely beyond discussion. We have a very solid
fiscal situation, he added.
=====================
P U E R T O R I C O
=====================
ALEX AND ANI: Gets OK to Hire Kurtzman Carson as Claims Agent
-------------------------------------------------------------
Alex and Ani, LLC and its affiliates received approval from the
U.S. Bankruptcy Court for the District of Delaware to employ
Kurtzman Carson Consultants, LLC as claims and noticing agent.
The firm will oversee the distribution of notices and will assist
in the maintenance, processing and docketing of proofs of claim
filed in the Debtors' Chapter 11 cases.
The firm's hourly rates are as follows:
Analyst $25.50 to $42.50
per
hour
Technology/Programming Consultant $29.75 to $80.75
per
hour
Consultant/Senior Consultant/Director $55.25 to $165.75
per hour
Securities/Solicitation Consultant $174.25 per hour
Securities Director/Solicitation Lead $182.75 per hour
Kurtzman will be paid a retainer in the amount of $50,000 and
reimbursed for out-of-pocket expenses incurred.
Evan Gershbein, executive vice president of Kurtzman, disclosed in
a court filing that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code.
The firm can be reached at:
Evan Gershbein
Kurtzman Carson Consultants LLC
222 North Pacific
Coast Highway, 3rd Floor
El Segundo, CA 90245
Tel: (310) 823-9000
About Alex and Ani
Founded in 2004 by Carolyn Rafaelian, Alex and Ani, LLC --
http://www.alexandani.com/-- has become a premier jewelry brand,
quickly gaining popularity because of the novel and customizable
nature of its signature expandable wire bracelet. Alex and Ani has
been headquartered in East Greenwich, R.I. since 2014. Since
opening its first retail store in Newport, R.I. in 2009, Alex and
Ani has expanded to over 100 retail store locations across the
United States, Canada and Puerto Rico.
Alex and Ani and its affiliates sought Chapter 11 protection
(Bankr. D. Del. Lead Case No. 21-10918) on June 9, 2021. At the
time of the filing, the Debtor had between $100 million and $500
million in both assets and liabilities. Judge Craig T. Goldblatt
oversees the case.
The Debtor tapped Kirkland & Ellis LLP as bankruptcy counsel,
Klehr
Harrison Harvey Branzburg LLP as local counsel, and Portage Point
Partners, LLC as financial advisor and investment banker. Kurtzman
Carson Consultants LLC is the notice and claims agent.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
CONSOLIDATED ENERGY: S&P Alters Outlook to Stable & Affirm 'B+' ICR
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on
Consolidated Energy Ltd. (CEL), a petrochemical company with
operations in Trinidad and Tobago and the U.S. Gulf Coast, and
revised its outlook to stable. S&P also affirmed its 'B+'
issue-level rating on the company's senior unsecured and secured
debt, including its proposed $92 million add-on to its current term
loan B.
The stable outlook indicates S&P's expectation for the company's
improved revenue and EBITDA due to the higher methanol prices and
consistent production across all its facilities.
Since the end of the third quarter of 2020, methanol prices started
to bounce back, with U.S. methanol contract prices of
$400-$500/metric ton(MT). S&P said, "Due to this trend that's
likely to continue in 2021, along with the company's higher
methanol production, we expect CEL to generate stronger revenues
and EBITDA (about $600 million) in the next 12-18 months. We
estimate CEL's adjusted debt to EBITDA to plummet to the mid- to
high-4.0x range in 2021 and 2022 from 10.6x at the end of 2020."
CEL had to stop production at two of its plants (M2 and M3) during
the second and third quarters of 2020, reducing output, revenue,
and EBITDA. Nonetheless, both plants resumed operations by the end
of the third quarter of 2020. S&P expects CEL should maintain
consistent and uninterrupted production across all of its
facilities, including at Natgasoline, but also broadly stable
results on the company's ammonia, urea ammonium nitrate, (UAN) and
melamine output. If the company maintains consistent production due
to the likely stronger demand for its products, coupled with the
favorable methanol prices, its EBITDA should rise to about $600
million by the end of 2021. Although the stable outlook reflects
these expectations, S&P maintains its current ratings on the
company until it shows consistent track record of reducing its
adjusted debt to EBITDA to the low-4.0x area from 9.6x as of March
31, 2021.
CEL doesn't have material debt obligations in 2021, and its
liquidity continues to benefit from committed revolving credit
facilities of about $270 million ($225 million at CEL and the
remainder at Natgasoline), which the company partly drew in the
first quarter of 2021, with about $150 million available. Although
CEL faces a substantial maturity in 2022 on its senior unsecured
bond of about $423 million, the company is seeking to partly
refinance the bond through the bank loan add-on, while reducing
this bond debt through a prepayment with cash on hand due to the
likely greater cash flows. We believe that if the company
refinances the bond well ahead of its maturity, CEL will alleviate
its debt obligations, and could enhance its debt profile and
liquidity position for the next 12-24 months.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week June 21 to June 25, 2021
-------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD
Cia Latinoamericana de 9.5 74.3 7/20/2023 AR 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
Noble Holding Internat 6.2 62.2 8/1/2040 KY USD
Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD
Noble Holding Internat 5.3 60.5 3/15/2042 KY 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
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Polarcus Ltd 5.6 71.8 7/1/2022 AE USD
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
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
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
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
Enel Americas SA 5.8 32.7 6/15/2022 CL CLP
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
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
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
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD
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
Province of Santa Fe 6.9 74.7 11/1/2027 AR 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
Fospar S/A 6.5 1.2 5/15/2026 BR BRL
YPF SA 16.5 67.3 5/9/2022 AR ARS
Automotores Gildemeist 8.3 54.2 5/24/2021 CL USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
*********
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
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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 * * *