/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/210705.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, July 5, 2021, Vol. 22, No. 127 Headlines B A R B A D O S BARBADOS: Calls For Special Debt Repayment System B R A Z I L BANCO FIBRA: Fitch Assigns 'B+/B' IDRs, Outlook Negative BRAZIL: Incurs Primary Deficit of R$20.9BB in June, Ministry Says GENERAL SHOPPING: Fitch Lowers LongTerm IDRs to 'CC' C H I L E ITAU CORPBANCA: Corp Group Secures Bankr. Protection in Delaware D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Central Bank to Make Available RD$7B for Loans DOMINICAN REPUBLIC: Proposals Presented to Curb Price Hikes M E X I C O GRUPO AEROMEXICO: Egan-Jones Keeps D Senior Unsecured Ratings P U E R T O R I C O ALEX AND ANI: Asks Court Okay for Creditor, Founder Settlement CB REAL ESTATE: Taps Luis R. Carrasquillo as Financial Consultant X X X X X X X X [*] BOND PRICING: For the Week June 28 to July 3, 2021 - - - - - =============== B A R B A D O S =============== BARBADOS: Calls For Special Debt Repayment System ------------------------------------------------- RJR News reports that Barbados Prime Minister Mia Mottley has called for a debt repayment system for Caribbean countries similar to what was granted to Britain after World War II. The debt repayment system allowed Britain to have the fiscal space to return to a path of development, according to RJR News. Lamenting the absence of such provisions in the international financial system, Miss Mottley pointed out that middle-income countries have been set back at least a decade because of the COVID-19 pandemic, the report notes. As reported in the Troubled Company Reporter-Latin America on April 23, 2020, S&P Global Ratings affirmed its 'B-/B' long- and short-term sovereign credit ratings on Barbados, and its 'B-' issue-level ratings on Barbados' debt. In addition, S&P Global Ratings affirmed its 'B-' transfer and convertibility assessment. The outlook is stable. =========== B R A Z I L =========== BANCO FIBRA: Fitch Assigns 'B+/B' IDRs, Outlook Negative -------------------------------------------------------- Fitch Ratings has assigned the following ratings to Banco Fibra S.A. (Fibra): -- Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) 'B+'; Outlook Negative; -- Foreign and Local Currency Short-Term IDR 'B'; -- National Long-Term Rating 'BBB+(bra)'; Outlook Stable; -- National Short-Term Rating 'F2(bra)'; -- Viability 'b+'; -- Support Rating '5'; -- Support Rating Floor 'NF'. KEY RATING DRIVERS VR, IDRs AND NATIONAL RATINGS Fibra's ratings are highly influenced by its risk appetite and improved risk profile since its retail portfolio run-off. This has supported continuous progress on the execution of its restructuring plan has led to notable improvements in asset quality in the last four years. However, they also reflect its only modest, albeit improving, core operating profitability and capitalization metrics that are at the low end for its rating category. Since dropping its retail segment, the bank has adopted a more conservative underwriting standard, with a focused client target market approach and mainly offering structured credit products with some kind of guarantee. This approach proved to be beneficial during the pandemic period, resulting in a steady improvement in asset quality measures throughout these years. The bank's asset quality compares favorably against its peers, with an NPL ratio of 1.6%. To date, the bank has not experienced any material deterioration in asset quality measures despite the weak macroeconomic environment caused by the pandemic. The improving NPL ratio is a result of a combination of credit portfolio growth and a nominal reduction in delinquent loans. Due to the nature of its business model, the bank has some concentration in terms of sector (metals and mining and agribusiness) and clients (top 20 clients represent 1.9x its regulatory capital) but is mitigated by the good behavior of its portfolio and the low ratio of renegotiated loans (1.2% of total portfolio). With a Loan Loss Reserve of 81%, Fitch believes the bank is in an adequate position to absorb credit deterioration. Fibra's core banking earnings has improved over the past three years on the back of growing business volumes and on reduced loan impairment charges. However, profitability still falls short in comparison with its peers due to less diversified revenue sources and comparatively weaker cost efficiency. Over the near term, continued momentum in client growth following will be important to support 2021 earnings, although Fitch anticipates that underlying profitability will remain modest. In terms of capitalization, Fibra's CET1 ratio was 10.25% at 2020 (11% at 2019). Although adequate and above regulatory cushion, its capital ratios are modest compared to some of its peers. The bank has not paid dividends and plans to continue to limit dividend distribution to shore up its capital through internal capital generation. In Fitch's view, the bank's capitalization is pressured, and this will limit credit growth especially when considering the negative operating environment of Brazil. Fibra largely funds its loan book through wholesale deposits and financial bills (Letras Financeiras), distributed through a series of partner brokerages. To fund its credit portfolio expansion, the bank also obtained funding through DPGE, as part of its funding diversification strategy; and LFG, a one-year subsidized line which was part of the liquidity stimulus measures taken by the Central Bank. The result was a funding expansion of 49% compared to 2019, and a loan to customer deposits ratio of 107.95%, in line with its peers. Its liquidity remained adequate when compared with its short-term needs. Liquid assets totaled BRL1.3 billion in December 2020. Support Rating and Support Rating Floor Fibra's Support Rating of '5' and its Support Rating Floor of NF' reflect the bank's low systemic importance. In Fitch's view, the bank is not likely to benefit from external support. RATING SENSITIVITIES IDRs, VR and National Ratings Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A sustained reduction in the bank's capitalization driven by fast credit portfolio expansion, significantly outpacing its internal capital generation to a CET 1 ratio below 8%. -- A substantial deterioration of the bank's asset quality and earnings driven by a significant change in long term strategy. -- Operational losses in 2021. Factors that could, individually or collectively, lead to positive rating action/upgrade: -- A sustained improvement in operating profitability (Operating Profit/RWA) of over 3% without deterioration in asset quality metrics. -- Improvement in its capitalization metrics (e.g. a CET 1 ratio above 14%). -- An upgrade is unlikely in the near future. Support Rating and Support Rating Floor A potential upgrade of Fibra's Support Rating and Support Rating Floor is unlikely for the foreseeable future, as this would only arise from a material gain in the bank's systemic importance. ESG CONSIDERATIONS 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. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond 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. BRAZIL: Incurs Primary Deficit of R$20.9BB in June, Ministry Says ----------------------------------------------------------------- Rio Times Online reports that after two months in positive territory, Brazil central government's budget recorded a primary deficit in May. In June, the difference between revenues and expenditures was negative at R$20.947 billion, according to the Ministry of Finance, according to Rio Times Online. The result - which combines the accounts of the National Treasury, Social Security, and the Central Bank - was the best for the month since 2019, when it was negative by R$126.636 billion in May 2020, influenced by additional spending to fight Covid-19, the report relays. In the year to May, the primary result records a surplus of R$19.911 billion, the best result for this period since 2013. In the same period last year, this result was negative at R$222.493 billion, the report 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. Fitch Ratings' credit rating for Brazil stands at 'BB-' with a negative outlook (November 2020). Fitch's 'BB-' Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) has been affirmed in May 2021. Standard & Poor's credit rating for Brazil stands at BB- with stable outlook (April 2020). S&P's 'BB-/B' long-and short-term foreign and local currency sovereign credit ratings for Brazil were affirmed in December 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). GENERAL SHOPPING: Fitch Lowers LongTerm IDRs to 'CC' ---------------------------------------------------- Fitch Ratings has downgraded General Shopping e Outlets do Brasil S.A.'s (GSB) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'CC' from 'CCC-'. In related rating actions, Fitch has downgraded the company's senior secured notes to 'CC'/'RR4' from 'CCC-'/'RR4', its perpetual notes to 'C'/'RR5' from 'CC'/'RR5' and affirmed its subordinated perpetual notes at 'C'/'RR6'. Fitch has downgraded GSB's National Scale rating to 'CC(bra)' from 'CCC(bra)'. The subordinated perpetual notes and the senior secured notes are issued by General Shopping Investment Limited and the perpetual notes are issued by General Shopping Finance Limited. The 'CC' rating primarily reflects Fitch's belief that default, including debt restructuring is probable over the outlook period. KEY RATING DRIVERS Coronavirus Continues Distressing Business: Fitch anticipates GSB's 2021 EBITDA will remain below 2019 levels by about 50%, which reflects the effects of the coronavirus pandemic and GSB's smaller asset base after the assets transfer executed in 2019. Projections consider annual EBITDA of around BRL35 million with negative CFFO during 2021-2022, reflecting excessive interest payments relative to EBITDA. Fitch anticipates continued negative FCF generation during 2021-2022. High Financial Leverage: GSB's financial leverage is high and is viewed as unsustainable. The company's net leverage ratio, measured as net adjusted debt/EBITDA, was 11.9x, 35.4x, and 38.4x in 2019, 2020 and LTM March 2021, respectively, reflecting the 50% credit on the subordinated perpetual notes. The company's net leverage ratio will remain above 20.0x by YE 2022. Debt totalled BRL2 billion as of March 31, 2021 (BRL1.7 billion as of March 31, 2020), primarily composed of BRL108.1 million in real estate credit bills, BRL8.7 million in secured loans and financing, BRL51.5 million in secured notes, BRL669.5 million in perpetual notes and BRL1.2 billion (BRL994.1 million as of March 31, 2020) in subordinated perpetual notes. Low Unencumbered Assets Base: The company maintains relatively low levels of unencumbered assets, limiting its financial flexibility. GSB's total assets value is estimated at BRL1.1 billion as of March 31, 2021, made up of encumbered and unencumbered assets of BRL587 million and BRL505 million, respectively. The company's net loan/value ratio is 170%, while the company's unencumbered assets/unsecured debt ratio is low at 0.31x. The ratings also factor in GSB's high FX exposure, as all of the company's cash flow - measured as EBITDA - is generated in Brazilian reais, while approximately 93% of its total debt is denominated in U.S. dollars. Limited Capacity to Cover Interests Expenses: GSB's capacity to cover interest expenses is tight and will be pressured by local currency depreciation on its U.S. dollar-denominated debt. GSB's asset transfer - executed during 2019 - further deteriorated its capital structure, resulting in fewer assets to support debt service. The company's cash position was BRL162 million with short-term debt of BRL34 million at March 31, 2021. Fitch's base case reflects an interest coverage ratio, measured as an EBITDA/interest paid ratio, around 0.5x during 2021-2022, compared with 1.1x in 2019. Fitch believes GSB will continue deferring interest expenses on its 12% subordinated perpetual notes. Equity Treatment for Subordinated Perpetual Notes: GSB's subordinated perpetual notes qualify for 50% equity credit as they meet Fitch's deep subordination criteria with equity-like characteristics including: an effective maturity of at least five years, full discretion to defer coupons for at least five years and limited events of default. Equity credit is limited to 50% given the hybrid's debt-like cumulative interest coupon. The company has exercised its right to defer the interest payment under its 10% perpetual subordinated notes since 2H15; this deferral does not constitute an event of default under the indenture. Fitch assumes the company will continue deferring interest payments on the subordinated perpetual notes into the foreseeable future. Management Strategy Negative Impact: GSB has an ESG Relevance Score of '5' for management strategy due to its track record of recurring operational and debt restructuring processes during the past years due to challenges the company has faced in implementing its strategy and maintaining competitive positions within its key markets. GSB's below-average execution of its strategy has contributed to a materially weaker operational performance and unsustainable capital structure. The company also has an ESG Relevance Score of '5' for its governance structure due to the strong influence on GSB's owners upon management, which has resulted in decisions related to the company's operational and financial strategies that have been made to the detriment of its creditors. DERIVATION SUMMARY GSB's 'CC' rating reflects the company's track record of maintaining high financial leverage, negative FCF, weak liquidity and a shrinking unencumbered assets base. Fitch views GSB's capital structure as weaker than regional peers such as BR Malls Participacoes S.A. (BB/Negative); InRetail Real Estate S.A. (BB+/Stable); and IRSA Propiedades Comerciales S.A. (CCC). IRSA PC's 'CCC' LT FC IDR is constrained by the Republic of Argentina's 'CCC' country ceiling, which limits the foreign currency rating of most Argentine corporates. GSB's 'CC' rating incorporates weakness in several rating considerations. In terms of net leverage, measured as the net debt/EBITDA, BR Malls, InRetail Real Estate and IRSA PC had ratios of 6.7x, 9.6x and 5.9x respectively, during 2020. In terms of liquidity and capacity to consistently cover interest expenses paid with recurrent cash flow generation, BR Malls, InRetail Real Estate and IRSA PC had coverage ratios of 5.2x, 2.0x and 2.4x respectively, during the period. GSB's net leverage ratio and net interest coverage ratios were 35.5x and 0.5x during 2020, respectively. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Temporary mall closures continue during 2021, gradually normalizing operations toward 2022; -- Net revenues around BRL100 million and BRL115 million during 2021 and 2021, respectively; -- Occupancy rates around 94% in 2021-2022; -- Negative FCF generation during 2021-2022; -- Interest coverage (EBITDA/interest expenses ratio) around 0.5x during 2021-2022. Recovery Rating Assumptions: The recovery analysis assumes that GSB would be considered a going concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. GSB's going-concern EBITDA is based on the expected level of EBITDA in 2021. The going-concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the valuation of the company. The going-concern EBITDA is 10% below the 2021 EBITDA to reflect the company's operational performance when facing a distress scenario. An EV multiple of 6x is used to calculate a post-reorganization valuation and reflects a midcycle multiple. The USD9 million secured notes due in 2026 have been assigned a Recovery Rating of 'RR4'. The bespoke analysis indicated the potential for a higher recovery; however, Fitch capped the ratings at 'RR4' in accordance with its Country Specific Treatment of Recovery Rating Criteria, which caps recovery ratings in Brazil at 'RR4' due to concerns about issues such as creditor's rights during a debt restructuring or the consistent application of the rule of law. The perpetual notes have been notched down one notch for the IDR and the subordinated perpetual notes two notches to indicate below average or poor recovery prospects in the event of a default. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- Material improvement in the company's liquidity and financial leverage through some combination of the following actions: equity injection, asset sales with limited impact on cash flow generation, and lower FX exposure. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Further deterioration of GSB's liquidity position; -- Execution of a distressed debt exchange; -- Defaults on scheduled amortization/interest payments and/or formally filing for bankruptcy protection. 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 GSB's financial leverage is viewed as high and unsustainable and the company's lower unencumbered assets base limits financial flexibility. GSB's capacity to cover interest expenses is tight and will be pressured during the next 12-18 months. ISSUER PROFILE General Shopping e Outlets do Brasil S.A. (GSB) - formerly known as General Shopping Brasil SA - started shopping malls activities in 1989, with the opening of Poli Shopping in the city of Guarulhos. The company expanded its operations in 2006 through the development of new shopping malls, the acquisition of ownership interest in existing shopping malls, the expansion of existing shopping malls and the purchase of land to construct new shopping malls. As of March 31, 2021, GSB has stake in nine shopping centers, representing 81,325 sq m of owned gross leasable area, collectively. ESG CONSIDERATIONS GSB has an ESG Relevance Score of '5' for management strategy due to its track record of recurring operational and debt restructuring processes during the past years due to challenges the company has faced in implementing its strategy and maintaining competitive positions within its key markets. GSB's below-average execution of its strategy has contributed to a materially weaker operational performance and unsustainable capital structure. The company has an ESG Relevance Score of '5' for its governance structure due to the strong influence on GSB's owners upon management, which has resulted in decisions related to the company's operational and financial strategies that have been made to the detriment of its creditors. The company also has an ESG Relevance Score of '4' for group structure, reflecting complexity, transparency and related-party transactions, and an ESG Relevance Score of '4' for financial transparency due to lack of quality and timing of financial disclosure. 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. ========= C H I L E ========= ITAU CORPBANCA: Corp Group Secures Bankr. Protection in Delaware ---------------------------------------------------------------- Maria Chutchian at Reuters reports that the part owner of Chilean bank Itau Corpbanca secured court approval in Delaware to fend off any potential creditor attempts to collect debts owed as it works to restructure in the U.S. Corp Group Banking SA (CGB), represented by Simpson Thacher & Bartlett, filed for Chapter 11 protection on June 25 to restructure nearly $2 billion in debt, according to Reuters. That figure includes $500 million in bonds issued under New York law on which the company has defaulted. CGB, which is controlled by Chilean billionaire Alvaro Saieh, holds 26.2% of the bank's common equity, the report notes. During a virtual hearing, U.S. Bankruptcy Judge Kate Stickles in Wilmington, Delaware, said she would approve what effectively serves as a comfort order to ensure that creditors outside the U.S. do not attempt to pursue litigation against CGB or try to collect debts owed, the report relays. While U.S. bankruptcy law automatically protects Chapter 11 debtors against such legal actions, that shield doesn't exist in many other countries, prompting CGB to seek an order confirming that protection, the report notes. However, non-bankrupt affiliates of CGB do not have the same protection, the report discloses. The Chapter 11 filing was precipitated by several years of falling share prices for Itau Corpbanca, the report says. Recently, noteholders represented by Cleary Gottlieb Steen & Hamilton filed papers seeking the appointment of an administrator and aiming to freeze the company's assets, which led to the company's bankruptcy filing, the report relays. Luke Barefoot of Cleary said during a hearing that certain noteholders are pursuing fraudulent conveyance claims against the company, the report discloses. CGB said in court papers that the allegations have no merit. The company has no operations and its only asset is its interest in Itau Corpbanca, the report notes. CGB has around $13 million in cash on hand that it will use to fund the bankruptcy process. CGB will return to the Delaware court on Aug. 12 for a follow-up hearing, the report relays. The case is In re Corp Group Banking SA, U.S. Bankruptcy Court, District of Delaware, No. 21-10969. For CGB: Michael Torkin, Bryce Friedman, David Zylberberg and Ashley Gherlone of Simpson Thacher & Barlett and Pauline Morgan, Sean Greecher, Andrew Magaziner and Elizabeth Justison of Young Conaway Stargatt & Taylor =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Central Bank to Make Available RD$7B for Loans ------------------------------------------------------------------ Dominican Today reports that the Central Bank of the Dominican Republic (BCRD) has between RD$7 billion and RD$8 billion available for the sectors "that want to borrow," as announced by the Central Bank governor Hector Valdez Albizu. The resources are the product of recoveries of money that has been placed to invigorate the economy, Valdez Albizu stressed, according to Dominican Today. "Recently in the Monetary Board, it was decided that the recoveries that were coming from the money that is already placed, which make between RD$7 billion and RD$8 billion, will again be relocated to other sectors that need it. This is an additional boost . . . ," said the governor during a press conference in which he announced the results of the economy in the first five months of this year, the report notes. To date, some RD$196,285.1 million have been channeled to companies and households through some 90,000 new loans, refinancing, and debt restructurings, according to the BCRD report, Dominican Today says. The sectors that have received the most resources are commerce and micro, small and medium-sized enterprises (MSMEs) (RD$83,141.4 million); households (RD$27,766.3 million); manufacturing (RD$21,725 million); construction (RD$18,276.5 million) and exports (RD$6,062.6 million), according to the agency, Dominican Today discloses. The governor emphasized that the agency has enough space to contribute with the support needed by the different productive sectors, the report relays. Economic Growth The president of the Monetary Board and governor of the Central Bank reported that last May, the Dominican economy registered a growth of 21.2% compared to the same month of 2019, the report notes. In the first five months, cumulative growth amounted to 13.4%, the report says. Valdez Albizu stressed that the economy is consolidating its recovery trend so that by the end of this year, economic growth is expected to exceed 8%, 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). DOMINICAN REPUBLIC: Proposals Presented to Curb Price Hikes ----------------------------------------------------------- Dominican Today reports that the Social and Labor Roundtable is one of those created by President Luis Abinader to present proposals that seek to mitigate the rise in prices that the country is experiencing. This work team in which churches, civil and economic organizations, trade unionists, and others participated prepared several suggestions to prevent the current situation from affecting citizens, according to Dominican Today. The working group, coordinated by Servio Tulio Castanos, delivered its proposals to the Minister of Industry, Commerce and Mipymes (MICM), Victor -Ito- Bisono, the report notes. The report relays that Participacion Ciudadana, one of the entities belonging to the social and labor table, presented several suggestions, among which are that all subsidies be targeted, not generalized, to avoid that high-income sectors benefit from them and that these be channeled through Progresando con Solidaridad (Prosoli), impacting households previously identified by the Sistema Unico de Beneficiaries (Siuben). The organization prepared a document to be presented at the working table suggesting compliance with the legal provisions that prevent monopolies in the cargo transportation sector to reduce the costs that affect the prices of goods and services, in addition to reviewing the cost structure of fuels, which affect the prices of the economy, the report notes. Hence, it is necessary to reduce excise taxes on hydrocarbons, the report discloses. It also recommends that future wage increase discussions should be accompanied by measures to increase the production capacity of employees and severance insurance that respects the acquired rights of workers and is financed by the private sector, the report notes. Meanwhile, Foro Ciudadano proposed to carry out a survey of low-income families that for various reasons are left out of social programs, in addition to generating an articulation of small traders and informal vendors to reduce intermediaries in the rural-urban relationship that allows the products of the family basket to reach easy acquisition costs for families in extreme poverty, the report relates. Manifiesto Ciudadano understands that the ideal is for the Government to dismantle the tax burden of imports until reaching pre-pandemic stability and assuming the increase in transportation costs of the main items that impact the economy, the report relays. Churches The report notes that Miguel Sang Ben, representing this religion, expressed in a meeting held by the Social and Labor Table to discuss its proposals that a "successful" action could be a short-term crop program to generate alternative food of national origin. It suggests reactivating the operational capacity of Inespre and arranging the distribution of basic foodstuffs donated through parishes and religious entities to social groups without monetary income and in marginal areas, the report says. The evangelical community suggested a National Plan "Siembra" with credit financing. As much land as possible would be established to increase the supply of some items, focused on small and medium producers, the report discloses. Trade Unionists Three trade union organizations presented a joint proposal with fiscal, labor, distribution, and health measures, the report relays. Among these is creating a special fund for the containment of price increases and the maintenance and expansion of State programs for the pandemic, the report notes. Regarding the labor market, they recommend a 40% wage adjustment and the creation of quality jobs. Other suggestions are to expand the distribution network of "Mercado de productores," "Agromercados," and "Bodegas móviles" of Inespre, in addition to increasing the supply of medicines and insurance companies that cover the PCR tests of the COVID, 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). =========== M E X I C O =========== GRUPO AEROMEXICO: Egan-Jones Keeps D Senior Unsecured Ratings ------------------------------------------------------------- Egan-Jones Ratings Company, on June 22, 2021, maintained its 'D' foreign currency and local currency senior unsecured ratings on debt issued by Grupo Aeromexico SAB de CV. EJR also maintained its 'D' rating on commercial paper issued by the Company. Headquartered in Mexico City, Mexico, Grupo Aeromexico SAB de CV operates as an airline. ===================== P U E R T O R I C O ===================== ALEX AND ANI: Asks Court Okay for Creditor, Founder Settlement -------------------------------------------------------------- Law360 reports that the founder of bankrupt jewelry chain Alex and Ani LLC, its Chapter 11 estate and its creditors have asked a Delaware bankruptcy judge to approve a three-way settlement of multiple suits and dueling claims over company-related debts and control, clearing the way for a sale or reorganization. In a motion for approval filed June 28, 2021, the company's bankruptcy principals asked the U. S. Bankruptcy Judge Craig T. Goldblatt to move the agreement forward without the usual 14-day waiting period ordinarily imposed following approval. Carolyn Rafaelian founded Alex and Ani in 2004 and was the sole equity owner until 2012, at which time she sold a 40 percent interest to San Francisco-based private equity firm JH Partners. JH Partners sold its interest to LC A&A Holdings, Inc. ("LC Holdings"), an affiliate of London-based private equity firm Lion Capital LLC, approximately two years later. On September 13, 2019, Ms. Rafaelian personally borrowed $5 million from Lion Capital pursuant to a promissory note and guaranty of payment (the "Promissory Note") to fund a portion of her commitments under the $20 million Second Lien Credit Facility in the 2019 out-of-court restructuring. In April 2020, Lion Capital declared a default under the Promissory Note following Ms. Rafaelian's failure to make the required monthly interest payments. On June 3, 2020, Ms. Rafaelian and several of her affiliated entities sued LC Holdings in the United States District Court for the District of Rhode Island seeking a declaratory judgment that Ms. Rafaelian was not in breach of the Promissory Note and enjoining LC Holdings from foreclosing, collecting, or levying on any collateral securing the Promissory Note. On June 15, 2020, the Promissory Note matured. Ms. Rafaelian failed to timely make any principal or interest payments as required thereunder. On June 17, 2020, Lion Capital filed an action for summary judgment in lieu of complaint against Ms. Rafaelian and certain affiliated guarantors under the Promissory Note in the Supreme Court of the State of New York, New York County. On Oct. 28, 2020, the New York Supreme Court ordered Ms. Rafaelian to repay Lion Capital the $5 million loaned under the Promissory Note, as well as interest and attorneys' fees. On June 9, 2021, Carolyn Rafaelian, A&A Pledge Co., Venice Beach Walk, LLC (collectively, the "Rafaelian Entities"), the Debtors, LC Holdings and LC Intermediate (together, the "Lion Entities"), and The Bathing Club LLC (the "Purchaser") entered into the Settlement Agreement. The Settlement Agreement is a significant achievement for the Debtors and provides for a path to consensus and, ultimately, emergence from chapter 11 as a going concern. Pursuant to the Settlement Agreement: * A&A Pledge Co. will sell its 35 percent interest under the Second Lien Credit Facility to the Purchaser; * LC Holdings will sell its 35 percent of the face amount of the first lien obligations under the First and Third Credit Facility to the Purchaser; * the Rafaelian Entities will dismiss and withdraw the Litigation with prejudice; * the Rafaelian Entities, on the one hand, and A&A Shareholding and its subsidiaries, the Lion Entities and the Purchaser, on the other hand, will provide mutual releases; * Ms. Rafaelian resigned from her position on the Board of managers of A&A Shareholding contemporaneously with executing the settlement; * to the extent still in effect, the non-competition agreement between Ms. Rafaelian and A&A Shareholding will terminate upon entry of an order approving the Settlement Agreement; and * the Purchaser will indemnify A&A Pledge Co. and its affiliates and certain of their respective employees and representatives from any claims or causes of actions arising out of: (a) the inaccuracy of any representation or warranty made by the Purchaser; and (b) a breach of any covenant of the Purchaser under the Settlement Agreement. 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. CB REAL ESTATE: Taps Luis R. Carrasquillo as Financial Consultant ----------------------------------------------------------------- CB Real Estate, LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Luis R. Carrasquillo & Co., P.S.C. as financial consultant. The Debtor needs a financial consultant to assist in the financial restructuring of its affairs, advise on strategic planning, assist in the preparation of a plan of reorganization and participate in negotiation with creditors. The firm's hourly rates are as follows: Luis R. Carrasquillo, Partner $175/hr Marcelo Gutierrez, Senior CPA $125/hr Arnaldo Morales Rivera, Senior Accountant $100/hr Carmen Callejas Echevarria, Senior Accountant $90/hr Zoraida Delgado Diaz, Junior Accountant $60/hr Enid Olmeda, Junior Accountant $45/hr Rosalie Hernandez Burgos, Administrative and Support $35/hr Kelsei Lopez, Administrative and Support $35/hr The firm will also be reimbursed for out-of-pocket expenses incurred. The retainer fee is $10,000. Luis Carrasquillo Ruiz, Esq., a partner at Luis R. Carrasquillo & Co., disclosed in a court filing that his firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Luis R. Carrasquillo Ruiz Luis R. Carrasquillo & Co. P.S.C. 28th Street, #TI-26 Turabo Gardens Avenue Caguas, PR 00725 Telephone: (787) 746-4555 Facsimile: (787) 746-4564 Email: luis@cpacarrasquillo.com About CB Real Estate San Juan, P.R.-based CB Real Estate, LLC is a fee simple owner of two commercial buildings located in Puerto Rico and a residential property in New York, valued at $8.9 million in the aggregate. CB Real Estate sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 21-01849) on June 16, 2021. Horacio Campolieto Bielicki, president, signed the petition. In the petition, the Debtor disclosed total assets of $10,147,500 and total liabilities of $3,407,130. Charles A. Cuprill, PSC Law Offices and Luis R. Carrasquillo & Co. P.S.C. serve as the Debtor's legal counsel and financial consultant, respectively. =============== X X X X X X X X =============== [*] BOND PRICING: For the Week June 28 to July 3, 2021 ------------------------------------------------------ Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- 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 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 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. 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