/raid1/www/Hosts/bankrupt/TCRLA_Public/210706.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
Tuesday, July 6, 2021, Vol. 22, No. 128
Headlines
A R G E N T I N A
ARGENTINA: Suggests 21% Minimum Tax Rate Instead of Proposed 15%
B O L I V I A
BOLIVIA: Arrests Ex-Official in Probe of IMF Loan Agreement
B R A Z I L
BANCO PSA FINANCE: Moody's Withdraws Ba2 LongTerm Deposit Ratings
VALE SA: Will Invest At Least US$4BB to Reduce Emissions by 2030
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Agro Chief Downplays Rising Prices on Staples
DOMINICAN REPUBLIC: Construction Encroaches on Prime Farmlands
H O N D U R A S
HONDURAS: IDB OKs $45MM to Improve Quality of Life of Poor
P U E R T O R I C O
CDT DE SAN SEBASTIAN: Disclosure Hearing Continued to Aug. 11
DAVE & BUSTER'S: Considers Bankruptcy With New Recovery Plan
T R I N I D A D A N D T O B A G O
AUTHENTIC BUILDERS: Operations Halts Due to Fraud Allegations
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A R G E N T I N A
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ARGENTINA: Suggests 21% Minimum Tax Rate Instead of Proposed 15%
----------------------------------------------------------------
Radio Jamaica News Online relates that Argentine Finance Minister
Martin Guzman says a G7 proposal for a global minimum tax rate of
15 per cent is too low and a rate of at least 21 per cent is
needed, leading a push by some developing countries to strike a
better deal for their economies.
Finance ministers from the group of seven wealthy nations agreed in
early June to support a global minimum tax corporate of at least 15
per cent in international negotiations currently underway, Radio
Jamaica cites.
About Argentina
Argentina is a country located mostly in the southern half of South
America. It's capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.
Moody's credit rating for Argentina was last set at Ca on Sept. 28,
2020. Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds. DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.
DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement. Formal negotiations on the new financing
began in November 2020. Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.
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B O L I V I A
=============
BOLIVIA: Arrests Ex-Official in Probe of IMF Loan Agreement
-----------------------------------------------------------
AP News reports that Bolivia's government has arrested a former
Treasury Ministry official as part of an investigation into a loan
from the International Monetary Fund that was renounced by new
President Luis Arce.
Former Vice Minister Carlos Schlink was arrested as he was trying
to leave the country, according to prosecutor Manuel Saavedra, AP
News relays. Three former treasury ministers also are under
investigation, the report notes.
AP News discloses that Schlink served under former interim
President Jeanine Anez, who herself has been detained on charges of
sedition. The conservative assumed the presidency in 2018 after
President Evo Morales was pressured into resigning amid protests
over his reelection and left office after Morales' leftist party
won elections last year, the report notes.
Anez reached agreement with the IMF for a $327 million loan to deal
with the COVID-19 emergency, but Arce denounced the deal and
returned the money, alleging it imposed financial conditions upon
the country, the report notes. The IMF has sent a letter to
Bolivia's congress denying any such conditions, the report
discloses.
Schlink's attorney, Audalia Zurita, said her client "did not take
part in signing loans," the report relays.
Justice Minister Ivan Lima last month alleged that the need to
return the loan had caused financial damage, the report notes.
Opposition figures have accused the government of "judicial
'persecution" due to the arrest of Anez about about 20 other former
officials, the report relays. Her own government had faced similar
accusations when it tried to prosecute Morales and several of his
key aides, the report discloses.
As reported in the Troubled Company Reporter-Latin America on March
26, 2021, S&P Global Ratings revised its rating outlook on Bolivia
to negative from stable. At the same time, S&P affirmed its 'B+'
long-term foreign and local currency sovereign credit ratings and
our 'B' short-term foreign and local currency ratings. The transfer
and convertibility assessment is unchanged at 'B+'.
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B R A Z I L
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BANCO PSA FINANCE: Moody's Withdraws Ba2 LongTerm Deposit Ratings
-----------------------------------------------------------------
Moody's Investors Service has withdrawn all global ratings and
assessments assigned to Banco Psa Finance Brasil S.A.. Before the
withdrawal, the outlook on the deposit ratings was stable.
Withdrawals:
Issuer: Banco Psa Finance Brasil S.A.
Adjusted Baseline Credit Assessment, Withdrawn, previously rated
ba2
Baseline Credit Assessment, Withdrawn, previously rated ba3
Long term Counterparty Risk Assessment, Withdrawn, previously rated
Ba1(cr)
Short Term Counterparty Risk Assessment, Withdrawn, previously
rated NP(cr)
Long Term foreign currency Counterparty Risk Rating, Withdrawn,
previously rated Ba1
Long Term local currency Counterparty Risk Rating, Withdrawn,
previously rated Ba1
Short Term foreign currency Counterparty Risk Rating, Withdrawn,
previously rated NP
Short Term local currency Counterparty Risk Rating, Withdrawn,
previously rated NP
Long term foreign currency Deposit Rating, Withdrawn, previously
rated Ba2; outlook changed to Ratings Withdrawn from Stable
Long term local currency Deposit Rating, Withdrawn, previously
rated Ba2; outlook changed to Ratings Withdrawn from Stable
Short Term foreign currency Deposit Rating, Withdrawn, previously
rated NP
Short Term local currency Deposit Rating, Withdrawn, previously
rated NP
Outlook Actions:
Issuer: Banco Psa Finance Brasil S.A.
Outlook, Changed To Ratings Withdrawn From Stable
RATINGS RATIONALE
Moody's has decided to withdraw the ratings for its own business
reasons.
The principal methodology used in these ratings was Banks
Methodology published in March 25, 2021.
Banco Psa Finance Brasil S.A. is a joint venture between Banco
Santander (Brasil) S.A. (Ba1/stable/ba2) and PSA Banque Finance
(A3/stable/ba1). It is a credit-oriented monoline bank that
finances the sale of vehicles produced by Peugeot and Citroen in
Brazil. In December 2020, it had total assets of BRL296 million and
equity shareholders of BRL257 million.
VALE SA: Will Invest At Least US$4BB to Reduce Emissions by 2030
----------------------------------------------------------------
Rio Times Online reports that Vale mining company plans to invest
between US$4 billion and US$6 billion to reduce emissions by 2030,
up from previous estimates that foresaw investments of up to US$2
billion, according to a market presentation by the company on June
24.
However, in the document presented to market analysts, the mining
company maintained its planned emissions reduction targets, and did
not offer details of its plan, according to Rio Times Online.
The company has developed several ESG (Environment, Sustainability
and Governance) initiatives, such as energy efficiency,
electrification of mines and railroads, and reduction of fossil
fuel use, the report relays.
About Vale SA
Vale S.A. is a Brazilian multinational corporation engaged in
metals and mining and one of the largest logistics operators in
Brazil.
As reported in the Troubled Company Reporter-Latin America in
September 2019, Moody's Investors Service affirmed Vale S.A.'s Ba1
senior unsecured ratings and the ratings on the debt issues of Vale
Overseas Limited, fully and unconditionally guaranteed by Vale S.A.
Moody's also affirmed the Ba2 senior unsecured ratings of Vale
Canada Ltd. The outlook changed to stable from negative.
At the same time, Moody's America Latina Ltda. affirmed Vale's
Ba1/Aaa.br corporate family rating and the Ba1/Aaa.br ratings on
its senior unsecured notes. The outlook changed to stable from
negative.
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D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Agro Chief Downplays Rising Prices on Staples
-----------------------------------------------------------------
Dominican Today reports that Minister of Agriculture, Limber Cruz,
recognizes the concern over price rises among consumers, but
assures that, worse than inflation, is the shortage and that this
in the Dominican Republic has not happened because the farmers have
continued to produce despite the crisis.
"There has been no shortage in this country. We are focused on
that, we do not rest and the president (Luis Abinader) is very
jealous of that," the official told Diario Libre, according to
Dominican Today.
He affirmed that municipal markets to supermarkets as well, are
packed with products, the report notes.
"I think the worst that can happen is the shortage, that there is
no product, and that is dangerous. (. . . .) We are far from a
shortage," Limber Cruz relays, according to the report.
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: Construction Encroaches on Prime Farmlands
--------------------------------------------------------------
Dominican Today reports that the problems faced by some
municipalities in the Dominican Republic over the loss of farmland
is viewed with concern by the government, a situation that is
already beginning to be faced, according to Agriculture Minister
Limber Cruz.
"If we continue to plant the country with houses, with villas, that
is dangerous. And, above all, the paradox of that is that the land
they take (to build) is Moca, one of the best in the world; Bonao,
where it rains the most in this country; Lower Yuna, one of the
most important places for growing rice in the Dominican Republic,"
he said, according to Dominican Today.
Cruz said that in Jima (Monsenor Noel province), Cotui (in Sanchez
Ramirez) and Bajo Yuna (in Duarte), are the towns where 60% of the
country's rice is produced and are among the most affected by
farmland use to build houses and other real estate, 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).
===============
H O N D U R A S
===============
HONDURAS: IDB OKs $45MM to Improve Quality of Life of Poor
----------------------------------------------------------
The Inter-American Development Bank (IDB) approved a project for
Honduras to support minimum income levels and help the quality of
life of vulnerable people affected by the COVID-19 pandemic and by
the effects of hurricanes Eta and Iota last November.
Despite a relative dynamic economy prior to the crisis, Honduras
maintains a high level of extreme poverty and one of the highest
informality rates in the region, with only 17% of the population
contributing to social security, a scenario that has worsened as a
result of the pandemic.
To help the country respond to these needs, the approved operation
will support the implementation of the main social protection
program in Honduras, the Bono de Vida Mejor Cash Transfer Program
(PBMV), which targets households in extreme poverty. The loan will
guarantee the financing of 25% of the program's rural households.
In addition, the project will strengthen the Honduran government's
G2P (government to people) payment platform, implemented by the
Honduran Bank for Production and Housing (BANHPROVI), helping to
expand its coverage and facilitate the payment of the Bono de Vida
Mejor cash transfer in rural areas.
The project will also expand the Cuídate Program, which promotes
sexual and reproductive health, actions to promote equitable gender
relations in the home, as well as the prevention of gender and
intra-family violence. In addition, it will expand the Emprendiendo
una Vida Mejor Program, which accompanies the PBVM cash transfer
with training in entrepreneurship and financial education, to help
increase the poorest rural households' consumption and savings,
income generation during the period of recovery from the pandemic.
The operation seeks to directly benefit 72,000 rural households in
extreme poverty with the Bono de Vida Mejor cash transfer, 2,000
couples with the Cuídate Program and 1,000 households with the
Emprendiendo una Vida Mejor Program.
The project responds to the digital economy, and gender and
diversity pillars of the IDB Group's 2025 Vision, as well as the
roadmap for the economic recovery of Latin America and the
Caribbean, by offering technological solutions that allow the
delivery of more inclusive social services and programs with
special attention to girls and women affected by the pandemic.
The $45 million project has a disbursement period of two years and
an interest rate based on LIBOR.
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P U E R T O R I C O
=====================
CDT DE SAN SEBASTIAN: Disclosure Hearing Continued to Aug. 11
-------------------------------------------------------------
Judge Edward A. Godoy has entered an order within which the hearing
on approval of disclosure statement filed by CDT De San Sebastian
Inc is rescheduled for August 11, 2021 at 1:30 PM via Microsoft
Teams Video & Audio Conferencing and/or Telephonic Hearings.
A copy of the order dated June 29, 2021, is available at
https://bit.ly/2UjACeC from PacerMonitor.com at no charge.
Counsel for the Debtor:
Jose R Cintron Esq
605 Condado, Suite 602
Santurce, Puerto Rico 00907
Tel 787-725-4027
Cel 787-605-3342
Fax 787-725-1709
E-mail: jrcintron@prtc.net
lawoffice602@gmail.com
About CDT De San Sebastian
CDT De San Sebastian Inc., a tax-exempt entity that operates an
outpatient care center in San Sebastian, P.R., sought Chapter 11
protection (Bankr. D.P.R. Case No. 19-06636) on Nov. 13, 2019. At
the time of the filing, the Debtor disclosed assets of between $1
million and $10 million and liabilities of the same range. Judge
Brian K. Tester oversees the case. The Debtor has tapped Jose
Ramon Cintron, Esq., as its legal counsel, and JE&MA CPA Consulting
Solutions LLC, as its accountant.
DAVE & BUSTER'S: Considers Bankruptcy With New Recovery Plan
------------------------------------------------------------
Nina Rangel of San Antonio Current reports that after the pandemic
nearly forced it into Chapter 11 bankruptcy reorganization last
fall, Texas-based Dave & Buster's is hoping a new business plan
can put it on the path to a comeback.
The arcade-and-restaurant recently announced that it's acquired
seven exclusive new games, pared down its food menu, added new
in-store tech and third-party delivery as part of the revamp.
The moves come after the Dallas-based chain laid off 1,300 workers
across seven states during the height of the pandemic. It
temporarily closed its two San Antonio stores, located in Balcones
Heights and at Rivercenter Mall, but reopened them this spring.
D&B's new games include a life-size version of Hungry Hungry Hippos
and Minecraft Dungeons Arcade, along with new virtual reality
experiences, according to the company. The new food items include
chimichurri bowls, garlic parmesan truffle fries and strawberry
shortcake.
D&B officials said the company's 2021 outlook is positive, with 107
locations reopening in January or 76% of its total footprint.
About Dave & Buster's Entertainment
Founded in 1982 and headquartered in Dallas, Texas, Dave & Buster's
Entertainment, Inc., is the owner and operator of 136 venues in
North America that combine entertainment and dining and offer
customers the opportunity to "Eat Drink Play and Watch," all in one
location. Dave & Buster's offers a full menu of entrances and
appetizers, a complete selection of alcoholic and non-alcoholic
beverages, and an extensive assortment of entertainment attractions
centered around playing games and watching live sports and other
televised events. Dave & Buster's currently has stores in 40
states, Puerto Rico, and Canada.
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T R I N I D A D A N D T O B A G O
=====================================
AUTHENTIC BUILDERS: Operations Halts Due to Fraud Allegations
-------------------------------------------------------------
Trinidad Express reports that an alleged web of fraud involving
misappropriation of corporate property and breach of fiduciary duty
has resulted in the High Court temporarily stopping the operations
of a hardware store owned by former president of the Hindu Credit
Union (HCU) Harry Harnarine and his relatives.
Justice Robin Mohammed granted an interim injunction freezing the
operations of Authentic Builders General Hardware Ltd (ABGH) at
Mega Foods compound on O'Meara Road, Arima, according to Trinidad
Express.
The application for interim injunctive relief was brought by a
hardware carrying a similar name-Authentic Building General
Hardware 2021 Ltd (ABGH2021)-and two of its directors, Elvis Lum
Young and Navindra Ramnanan, the report notes.
It was filed against ABGH, Harnarine, his daughter Krystal
Ramjattan and his two sons Hari and Amrit Harnarine, the report
relays.
It was alleged that Harnarine, acting on behalf of his family's
hardware store, induced Lum Young and Ramnanan to set up a new
company with a similar name so it would be able to "benefit from
existing marketing and expertise" and reputation in the hardware
industry, the report discloses.
Harnarine's children were also directors of the new hardware while
Harnarine was manager at both businesses, the report relays.
The claimants alleged that, based on representation made by
Harnarine, they incorporated ABGH2021 and injected approximately
$2.5 million in capital funds to begin operation of the new store,
the report discloses.
The report discloses that the alleged that Harnarine also induced
them to enter into all payments with his family's business on the
understanding that it would be transferred to ABGH2021 when it was
fully incorporated.
Court documents stated that, based on these representations, the
claimants cleared significant debts for Harnarine's hardware store
as well as paid for a lease to be entered with Mega Foods Ltd, the
report relays.
The claimants alleged that when the new hardware began operation,
Harnarine, as manager, charged all the expenditure to the new
hardware and diverted all the revenue to his family's business, the
report notes.
Court documents further alleged that the proceeds from sale of
hardware material by the new hardware were diverted to Harnarine
and to the account of his family's business, the report relays.
It claimed there was a commingling of funds to avoid tracing,
commingling of stocks and that Harnarine diverted the premium
clients to his own business, the report relates.
The report discloses that the claimants allege that Harnarine also
presented inflated invoices for services never carried out and
charged all such invoices to the ABGH2021 while his family's
business benefited.
Restrained From Operating
With the interim injunction being granted, Harnarine's business has
been restrained from carrying out any type of operation, the report
notes.
The owners are also restrained from disposing, removing, assigning,
transferring, concealing, selling or otherwise dealing with the
assets, including motor vehicles, heavy equipment, stock and
inventory of the hardware's operations without the approval of the
claimants, the report discloses.
Ultimately, the claimants are seeking to have the court order
Harnarine to make disclosure of documentation, including the
administrative records of the hardware store's operations as well
as financial records, sales transactions, inventory levels,
warehouse operations, accounts receivables and accounts payables of
the new hardware store, the report relays.
The application was heard ex-parte, therefore Harnarine was not
represented at the proceedings, the report says.
ABGH2021, Lum Young and Ramnanan were represented by attorney
Justin Phelps. The matter will next come up for hearing on July
14.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2021. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
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