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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

          Friday, July 9, 2021, Vol. 22, No. 131

                           Headlines



A R G E N T I N A

CHACO PROVINCE: Moody's Alters Outlook on Ca Rating to Stable


B R A Z I L

MC BRAZIL DOWNSTREAM: Fitch Assigns FirstTime 'BB-' LT IDRs
PETROLEO BRASILEIRO: Raises $2.3BB for Fuel Distributor Stake Sale


C A Y M A N   I S L A N D S

PD SUKUK: S&P Assigns Prelim. 'BB' Rating on New USD Sukuk Program


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: $40+ Restaurants Seeks Flexible Curfew
DOMINICAN REPUBLIC: Prices of Construction Source Materials Drop


J A M A I C A

JAMAICA: Urges to Implement Effective Renewable Energy Policy


M E X I C O

EZEQUIEL MONTES: Moody's Assigns Ba1 Issuer Rating, Outlook Stable
GRUPO AEROMEXICO: Says Delta Intends to Exercise a Call Option
NEMAK SAB: Moody's Rates New EUR500MM Senior Unsecured Bonds 'Ba1'
NEMAK SAB: S&P Rates Up to $500MM Sr. Unsecured Notes 'BB+'


T R I N I D A D   A N D   T O B A G O

CARIBBEAN AIRLINES: T&T Public Wants to Sever Ties With Jamaica
CL FINANCIAL: Liquidators Draw US$9 Million in Fees From Firm

                           - - - - -


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A R G E N T I N A
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CHACO PROVINCE: Moody's Alters Outlook on Ca Rating to Stable
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Moody's Investors Service affirmed the Ca issuer and senior
unsecured debt ratings of the Province of Chaco. The baseline
credit assessment was also affirmed at ca. At the same time, the
outlook was changed to stable from negative following the
restructuring of Chaco's $250 million notes due 2024.

On June 24th, the province of Chaco announced that it had attained
the necessary consent to modify the terms of its $250 million notes
due 2024. The agreement reached with bondholders entails a maturity
extension to 2028 and a change in the coupon rate from a fixed
9.375%% to a step-up schedule that starts at 3.5% in February 2022
and rises to 8.25% by February 2028.

Affirmations:

Issuer: Chaco, Province of

Issuer Rating, Affirmed Ca

Senior Unsecured Regular Bond/Debenture, Affirmed Ca

Outlook Actions:

Issuer: Chaco, Province of

Outlook, Changed To Stable From Negative

RATINGS RATIONALE

The affirmation of the ca baseline credit assessment and Ca issuer
and debt ratings reflects the idiosyncratic risks of the Province
of Chaco, such as relatively low leverage levels and recent trend
of operating surpluses balanced against a weak economic base, high
dependence on federal transfers and significant exposure to
unhedged foreign currency debt.

Chaco has a recent track record of slightly positive operating
balances, with an operating surplus equivalent to 9.1% of operating
revenue in fiscal year 2020. Nevertheless, the province relies on a
high share of federal transfers from the federal tax sharing regime
to achieve these results, owing to the province's weak economic
fundamentals. In 2020 Chaco's own-source tax revenue to total tax
revenue was 13%, a relatively low level compared with that of some
of its national peers. Chaco benefits from relatively low leverage,
as net direct and indirect debt to operating revenue was 36.6% in
2020. Nevertheless, the province's exposure to unhedged foreign
currency debt (57.3% of total debt as of 2020), combined with a
limited market access, means very high refinancing risks.

At the same time, the ratings capture the very close economic and
financial linkages that exist between Argentina´s sovereign and
sub-sovereign governments which, currently, ties Chaco's rating
very closely to that of Argentina. Moody's notes that Argentina
faces a series of macroeconomic challenges that include high
economic volatility, persistently high inflation bolstered by
central bank funding of fiscal deficits, and heightened pressures
on the exchange rate and international reserves. In Moody's
opinion, until the fundamental macroeconomic problems that continue
to weigh on the sovereign credit profile are addressed, capital
market access will remain limited for the Argentine sub-sovereign
governments leading to the elevated credit risks of Chaco.

The Ca rating also takes into consideration that, despite the
restructuring of the $250 million notes, the risk of future debt
restructuring remains high because of Chaco's persistent
idiosyncratic risks, the restricted market access and a challenging
operating environment. While the restructuring materially eases the
scheduled debt service between 2021 and 2023, starting in 2024
Chaco will face a material increase in its debt service payments.
In light of the tight market access and the limited capacity of the
province to generate excess liquidity in foreign currency, a new
debt restructuring is likely in 2024.

RATING ACTION

Province of Chaco: foreign currency issuer rating affirmed at Ca
and foreign currency senior unsecured debt ratings affirmed at Ca,
Outlook changed to Stable from negative.

RATIONALE FOR THE STABLE OUTLOOK

The outlook change to stable from negative captures Moody's
expectation that economic and financial pressure faced by the
province will not differ materially over the next 12-18 months and
will therefore lead to fiscal pressure consistent with recent
results. At the same time, the stable outlook incorporates Moody's
expectation that bondholders will not face losses exceeding that
captured in the Ca rating (a range of 35 - 65%).

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Given the strong macroeconomic and financial linkages between
Argentine Sub-sovereigns and the Government of Argentina, which
currently carries a stable outlook, Moody's does not expect upward
pressures in the near to medium term for the Province of Chaco.
Nevertheless, Moody's would consider an upgrade if financing
conditions stabilize and the anticipated losses to private
creditors in future debt restructurings are less than currently
forecast.

Alternatively, a downgrade in Argentina's bond ratings and/or
further systemic deterioration could exert downward pressure on the
ratings. Increased idiosyncratic risks could also translate into a
downgrade. Moody's would also downgrade the ratings in the event a
debt restructuring results in losses greater than those reflected
in the current ratings.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.




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B R A Z I L
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MC BRAZIL DOWNSTREAM: Fitch Assigns FirstTime 'BB-' LT IDRs
-----------------------------------------------------------
Fitch Ratings has assigned MC Brazil Downstream Participacoes S.A.
first-time 'BB-' Long-Term Foreign and Local Currency Issuer
Default Ratings (IDRs). The Rating Outlook is Stable. Fitch has
also assigned a 'BB-' rating to the proposed USD1.8 billion of
senior secured notes to be issued by MC Brazil Downstream Trading
S.a.r.l. and fully guaranteed on a joint and several bases by MC
Brazil Downstream Participacoes S.A.

MC Brazil's ratings reflect the company's competitive geographic
location in Brazil's north-east region as well as its large
processing capacity, albeit a single site, and medium complexity
rating of 7.7 (according to Petrobras). The ratings are further
supported by the expected leverage metrics, which should average
1.9x over the next five years, and resilient debt service coverage
ratios.

The company's ratings reflect the inherent cash flow volatility of
the refining business, as well as the company's exposure to diesel
and gasoline price controls in Brazil (BB-/Negative), should the
country deviate from import parity pricing policy evidenced during
the past five years. Fitch expects MC Brazil to command relatively
healthy crack spreads, averaging nearly USD13/bbl, should the
current pricing structure in Brazil remain in place.

The Stable Rating Outlook reflect the company's adequate capital
structure and resilient coverage metrics, as well as the
expectation that Petrobras will continue its current import parity
pricing policy for gasoline and diesel.

KEY RATING DRIVERS

Competitive Location: The Landulpho Alves Refinery's (RLAM)
location in Brazil's north-east region bodes well for the company's
competitiveness, as the bulk of refining capacity in Brazil is
located in the south and south-east regions. RLAM's location,
coupled with Brazil's current refined products short position,
should support the company's continuation of import parity pricing
seen in Brazil in recent years. Furthermore, the company may be
able to procure medium sweet crude oil feedstock from Petrobras at
export parity prices, given the country's growing crude oil
production to levels that surpass local demand. Although Brazil is
a net oil exporter, the country relies on refined products imports
to supply local demand.

Expected Adequate Leverage: MC Brazil's ratings are supported by
the expected adequate leverage, as measured by total debt to
EBITDA, which Fitch expects to average approximately 1.9x during
the first few years after the company takes possession of the
refinery. The company's capital structure is also expected to
rapidly strengthen as a result of cash sweep mechanisms that would
further amortize debt in addition to the contracted amortization
schedule totaling USD643 million. MC Brazil's EBITDA is expected to
average approximately USD820 million during the first five years
after taking over operations from Petrobras while total debt is
composed initially by the proposed USD1.8 billion debt issuance.

Large Refinery with Medium Complexity: Although a relatively large
refinery, RLAM is a single site refinery, which may expose the
company's cashflow generation to disruptions from unscheduled
downtime, or force majeure events. RLAM's medium complexity (Nelson
complexity index of 7.7 according to Petrobras) results in high
fuel oil yields of up to 40%, which the company expects to export
as very low sulfur fuel oil (VLSFO). The company intends to process
low sulfur content crude oil from Petrobras' pre-salt formations.
VLSFO crack spreads are expected to decrease going forward, which
will increase the company's reliance on domestic sales of gasoline
and diesel as the main margin contributors.

Exposure to Domestic Pricing Policies: MC Brazil's ratings are
limited by the company's cash flow generation exposure to Brazil's
domestic pricing policies for gasoline and diesel. The ability to
export products, particularly VLSFO, may provide a floor to crack
spread, but at more compressed spreads than the domestic market.
Between 2010 and 2015, Brazil had different forms of price controls
through Petrobras, particularly for diesel and gasoline. In
addition, in 2018 Brazil implemented fuel subsidies at the retail
level.

Since 2016, Petrobras has maintained an import parity pricing
policy for oil products that has served its cash flow generation
well. Should Brazil implement price controls comparable to the
early 2010's, MC Brazil's cash flow generation and its credit
quality could be negatively affected.

Resilient Debt Service Coverage Levels: Under the rating case,
which assumes average crack spreads for RLAM of USD13/bbl over the
next five years, the company is expected to report an average debt
service coverage ratio (DSCR) of between 3.0x to 3.5x. Fitch
estimates MC Brazil's DSCR would break even at average crack
spreads of between USD8/bbl and USD9/bbl, depending on utilization
rates.

The rating case assumes average utilization rates of approximately
92% over the next five years. This compares favorably with RLAM's
average availability of 94% over the past three years, but is above
actual utilization rates of 74.4% under Petrobras' operations in
the past three years. The company is targeting a USD500 million
balloon amount after applying cash sweep debt repayments.

High-Volatility Sector: Refining remains one of the most cyclical
corporate sectors globally, and is subject to periods of boom and
bust, with sharp swings in crack spreads over the cycle. The last
major bust period was 2009, when collapsing oil prices and lagging
costs led industry margins to tighten materially. The market
rebounded relatively quick as the industry tends to adjust rapidly.
The sector has benefited in recent years from relatively lower
crude oil prices, as well as a rapid increase in crude oil price
differentials, which have widened spreads, partially due to
transportation constrains.

Neutral Relationship with Parent: Although MC Brazil is rated on a
stand-alone basis, the company may benefit from its relationship
with Mubadala Capital, the asset management arm of Mubadala
Investment Company, Abu Dhabi's (AA / Stable) sovereign wealth fund
with approximately USD243 billion of assets under management.
Mubadala Investment Company has investments in other refineries
globally, including Compania Espanola de Petroleos, S.A.'s (CEPSA;
BBB-/Stable).

DERIVATION SUMMARY

RLAM's ratings reflect its status as a single site, medium
complexity refiner with a competitive geographic location. The
company has a nameplate capacity of 302 thousand bpd, which
compares with CVR Energy, Inc.'s (CVI: BB-/Negative) nameplate
capacity of approximately 206.5 thousand bpd. RLAM is smaller than
peers Valero Energy Corporation (BBB/Negative) with 2.6 million bpd
and Marathon Petroleum Corporation (BBB/Negative) with 3.0 million
bpd. RLAM is also smaller than peers PBF Holding Company LLC
(B+/Negative) with 1.04 million bpd and HollyFrontier Corporation
(BBB-/Negative) with 457 thousand boe/d of high complexity
capacity.

The company's geographic location is comparable with other
mid-continental refineries in the U.S., such as CVI and
HollyFrontier, which gives these companies a competitive advantage
in terms of sourcing crude oil close to production facilities while
having more control on pricing its products, particularly for
domestic sales. Furthermore, RLAM should be well positioned to take
advantage of higher than normal VLSFO crack spreads that may
prevail for the next few years as a result of its ability to access
low sulfur crude oils from Brazil and the implications from
International Maritime Organization (IMO) 2020 rules for low sulfur
bunker fuels.

Expected average gross leverage, defined as total debt/EBITDA, of
1.9x is generally in line with 'BB' to 'BBB' peers, which also have
leverage levels that range from 1.4x to 2.0x. The main
differentiator between issuers, such as RLAM, CVI and PBF, versus
'BBB' peers is primarily size, geographic diversification and
business line diversification.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for the issuer
include:

-- Brent oil prices of USD63/bbl in 2021, USD55/bbl in 2022 and
    USD53/bbl for the long term;

-- 2-1-1 crack spreads in Brazil's Northeast region range between
    USD12-USD13 per bbl over the forecasted period;

-- Average operating expenses of USD5.50/bbl;

-- Average capex of USD114 million per year over the rating cycle
    with refinery turnovers every four years;

-- Existing tax benefits under Petrobras ownership are
    transferred to the new company;

-- Company obtains, before taking possession of the refinery, a
    comprehensive insurance policy that exceeds the issuance
    amount.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- Greater operations and earnings diversification or evidence of
    lower cash flow volatility;

-- Sustained debt/EBITDA leverage at or below 1.5x.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Change in gasoline and diesel pricing policy in Brazil that
    could negatively affect RLAM cash flow generation;

-- Sustained debt/EBITDA leverage above approximately 3.5x;

-- Debt Service Coverage Ratio as measured by FFO Fixed Charge
    coverage plus amortization sustainably below 1.5x.

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

Robust Liquidity: MC Brazil's liquidity position would benefit from
a six months debt service reserve account, as well as an initial
cash on hand policy of USD300 million, to be funded at the time of
acquiring RLAM from Petrobras. This liquidity position covers
approximately two years of debt service, which helps the company
mitigate short-term impacts in cash flow generation resulting from
crude oil and/or refined products price volatility.

The company has also secured a USD300 million line of credit to be
exclusively used as collateral for crude oil purchases. Liquidity
will be further be supported by a supplementary interest reserve
account, to be funded with equity at the time of issuance, and
which should remain in place between the time of issuance and final
closing of the refinery acquisition.

MC Brazil's debt will be primarily composed of the proposed USD1.8
billion amortizing debt issuance, as well as any drawn amounts from
its aforementioned line of credit. The company may also incur in a
limited amount of additional indebtedness per the terms of the
proposed issuance. The notes issuance will have a sculpted
amortization, as well as cash sweep provision driven by a
combination of leverage and a target bullet amortization of USD500
million in 2031.

The transaction will have a minimum cash sweep mechanism of 25% of
cash flow available sweeps while leverage is below 2.5x. The cash
sweep increases by 25%, up to a maximum of 75% of cash available
for sweeps should leverage surpass 3.0x.

The proposed debt issuance will benefit from a cash waterfall
structure that serves opex, crude purchases and hedging first;
second, senior secured debt services and other financial
obligations second; third, fund the debt service reserve accounts;
fourth, to make any debt service from cash sweep provision as
stated; and lastly to make distributions to shareholders and other
payments subject to restricted payment tests. The senior secured
notes are collateralized by all material existing and future assets
of the company, shares of the issuer and company, rights in all
material contracts and accounts receivables.

The collateral excludes the liquidity facility for crude purchases.
The covenants under the notes include restricted payment provision
that, among other things, restricts dividend distributions if DSCR
is below 1.5x or net leverage is above 3.0x.

ISSUER PROFILE

MC Brazil Downstream Participacoes S.A. is a newly formed entity
with the purpose of acquiring the Landulpho Alves Refinery (RALM)
from Petrobras. MC Brazil is indirectly owned by investment
vehicles owned, controlled, advised, or managed by Mubadala Capital
LLC, or, together with its subsidiaries, Mubadala Capital, an
indirectly wholly owned subsidiary of Mubadala Investment Company
PJSC.

RLAM is a medium complexity refinery (Nelson Complexity Index of
7.7 according to Petrobras) with 302,000 bbls per day of refining
capacity. It started operations in 1950 and some key units are less
than 10 years old and its main atmospheric and vacuum distillation
unit was added in 1997. The RLAM complex also has a marine
terminal, 3.7 million bbls of crude storage, 3.9 million bbls of
products storage and almost 670km of pipelines. The refinery is
located in the state of Bahia and sells its products to Brazil's
north and northeast regions and also exports, primarily fuel oils.

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.


PETROLEO BRASILEIRO: Raises $2.3BB for Fuel Distributor Stake Sale
------------------------------------------------------------------
Vinicius Andrade, Rachel Gamarski, and Cristiane Lucchesi at
Bloomberg News report that Petroleo Brasileiro SA raised about $2.3
billion through the sale of its remaining stake in Brazil's largest
fuel distributor in the biggest equity transaction in Latin America
this year.

Petrobras, as the company is known, fully exited Petrobras
Distribuidora SA in an offering that priced at 26 reais ($5.23) a
piece, according to company filings, Bloomberg News cites.  The
sale is part of a broader plan from the oil giant to exit non-core
businesses, cut debt and focus on deep-water projects, Bloomberg
News notes.

The downsizing is also part of the government's strategy to divest
state-run assets, Bloomberg News relays.  The privatization drive,
one of the main promises of Economy Minister Paulo Guedes when
taking office in 2019, has been on hold for most of the past year
after the pandemic upended the economy, Bloomberg News says.  The
government recently scored a victory after gaining congressional
approval to sell utility giant Eletrobras, stoking investor
optimism, Bloomberg News notes.

The divestment comes amid a rally in Brazilian assets, Bloomberg
News discloses.  The real is trading near its strongest level in a
year, the Ibovespa stock index hit a record earlier this month and
the government tapped the international bond market, Bloomberg News
relays. The South American nation, one of the world's biggest
exporters of raw commodities, is now expected to grow more than 5%
in 2021, Bloomberg News notes.

Bloomberg News discloses that the transaction -- the biggest in
Latin America so far this year -- raised about 11.4 billion reais.
The stake, 436,875,000 voting shares, was equivalent to 37.5% of
the company, Bloomberg News says.  It's also one of the
five-largest secondary offerings in the country since at least
1990, according to data compiled by Bloomberg.

Petrobras started divesting from BR Distribuidora in 2017 during
the company's initial public offering, Bloomberg News notes.  Two
years later, it sold control of the firm in a public equity
offering, raking in about $2.2 billion and ending government
control over the biggest player in the industry, Bloomberg News
relays.

Further divestment brings a significant contribution to Petrobras's
asset-sale program, while also cementing BR Distribuidora's
independence, BofA analyst Frank McGann wrote in a report dated
June 13, Bloomberg News notes.

BR Distribuidora, which owns over 8,000 gas stations and more than
1,000 convenience stores across Brazil, reported gains in the first
quarter and has recently embarked on cost cutting measures,
including staff reductions, Bloomberg News discloses.  Shares are
up 21% this year, outperforming the country's main stock gauge by
about 14 percentage points, Bloomberg News relays.

The stock is "set to continue to have a good run after the deal is
completed, as it removes the overhang that weighed on the shares,"
as well as risks tied to state-controlled firms, Credit Suisse
analysts led by Regis Cardoso wrote in a report dated June 29,
Bloomberg News notes.  Cardoso reaffirmed an outperform rating and
boosted his price target to 39 reais from 32, Bloomberg News says.

Petrobras accelerated efforts to divest non-essential assets under
former chief Roberto Castello Branco, who was replaced by former
general Joaquim Silva e Luna earlier this year, Bloomberg News
relays.

The shares, which account for about 10% of Brazil's Ibovespa Stock
Index, have trailed the benchmark's advance so far this year,
gaining about 4% in local currency terms compared with a nearly 7%
rise for the gauge, Bloomberg News notes.

Still, analysts are mostly positive on Petrobras's outlook after
the oil company posted a profit and cut debt in the first-quarter
results, boosting optimism for dividend payments under the
company's new direction, Bloomberg News discloses.  The preferred
stock has 10 buy recommendations, three holds and one sell,
Bloomberg data show, Bloomberg News adds.

The BR Distribuidora deal was led by Morgan Stanley, Bank of
America Corp., Citigroup Inc., Goldman Sachs Group Inc., Banco Itau
BBA, JPMorgan Chase & Co. and XP Inc.

                       About Petrobras

Petroleo Brasileiro S.A. or Petrobras (in English, Brazilian
Petroleum Corporation - Petrobras) is a semi-public Brazilian
multinational corporation in the petroleum industry headquartered
in Rio de Janeiro, Brazil.  Petrobras control significant oil and
energy assets in 16 countries in Africa, the Americas, Europe and
Asia.  But, Brazil represents majority of its production.

The Brazilian government directly owns 54% of Petrobras' common
shares with voting rights, while the Brazilian Development Bank and
Brazil's Sovereign Wealth Fund (Fundo Soberano) each control 5%,
bringing the State's direct and indirect ownership to 64%.

A corruption scandal was uncovered in 2014 that involved Petrobras.
The scandal related to money laundering that involved Petrobras
executives.  The executives were alleged to get received kickbacks
from overpriced contracts, to the tune of about $3 billion in
total.

S&P Global Ratings revised outlook on Petrobras to stable and
affirmed 'BB-' foreign currency and local currency credit ratings
on April 7, 2020.  Fitch affirmed Petrobras' 'BB-' long term
foreign currency and local currency credit ratings in February
2021.  Moody's Investors Service affirmed the 'Ba2' long term
foreign currency credit rating of Petrobras in August 2019.

As reported in the Troubled Company Reporter-Latin America,
Egan-Jones Ratings Company, in May 2021, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Petroleo Brasileiro S.A.  EJR also maintained its
'B' rating on commercial paper issued by the Company.




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PD SUKUK: S&P Assigns Prelim. 'BB' Rating on New USD Sukuk Program
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S&P Global Ratings assigned its preliminary 'BB' issue rating on PD
Sukuk Ltd.'s proposed U.S. dollar-denominated sukuk program.

PD Sukuk Ltd. (PD Sukuk), an orphan special-purpose vehicle
incorporated in the Cayman Islands, plans to establish a US$1
billion sukuk (trust certificates) program for Private Department
of Skh Mohamed Bin Khalid Al Nahyan LLC (PD). The proposed
inaugural sukuk issuance under the program is intended to repay
existing bank debt and fund general corporate needs.

The rating on the sukuk program reflects the rating on PD Sukuk
Ltd. (BB/Stable/--) because the proposed transaction fulfills the
five conditions of our criteria for rating sukuk:

-- PD will provide sufficient and timely contractual obligations
for the timely repayment of the principal amount and the final
periodic distribution amount in case of shortfall in the
performance of the underlying assets leading to an early
dissolution of the sukuk.

-- The company's obligations under the transaction documents are
irrevocable.

-- These obligations will rank pari passu with PD's other senior
unsecured financial obligations.

-- PD will undertake to cover all the costs related to the
transaction, through the service agency agreement and the exercise
price payable for the benefit of PD Sukuk.

S&P said, "Although the documentation mentions a risk of a total
loss event (TLE), we view this possibility as remote and rate to
this assumption. Our opinion is underpinned by our understanding
that the portfolio of underlying assets will be diversified, with
real estate assets in Abu Dhabi (for at least 51% of the underlying
assets).

"We therefore equalize the rating on the sukuk with the long-term
issuer credit rating on PD. We understand that first issuance under
the program will be $600 million to repay existing bank debt and
fund general corporate needs."




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: $40+ Restaurants Seeks Flexible Curfew
----------------------------------------------------------
Dominican Today reports that more than 40 restaurants have joined
on social networks under the # DejennosTrabajar campaign to draw
the authorities' attention to allow the curfew hours to be more
flexible so that they can survive amid the Covid-19 pandemic.

"For our work team: collaborators and their families, for those in
the agricultural sector, for farmers and fishermen, for importers
of food, beverages, utensils and kitchen equipment, for security
companies and valet parking, for manufacturers of hygienic and
cleaning products, for which they make uniforms," reads the message
posted by the group on their networks, according to Dominican
Today.

In this sense, chef Leandro Díaz stated that the situation has
been unsustainable for restaurants, while indicating that they are
requesting "a plan to de-escalate this curfew ( . . . .) there are
many of us who have survived because we have been building our
gastronomic proposals without any type of commitment or strong
debts, but, really, we have been in the red since this started,"
the report notes.

He added that the times and dates in which the curfew takes place
had generated uncertainty among restaurants, the report relays.  "I
don't know whether to open or close, what hours I am going to have,
what I will offer to my customers and visitors," said Díaz, while
highlighting that "this has been an incredible chain for everyone
who depends on the restaurant sector," according to Diario Libre,
the report discloses.

The report discloses that the Masterchef judge also asked himself,
"what is the difference between restaurants and hotels are
operating normally? Why are we not allowed to operate under all
sanitary criteria?"

In addition, representatives of the tourist sector of the Colonial
City favored the petition of owners of bars and restaurants so that
the government relaxes the current curfew that, according to
denounce, keeps them bankrupt, the report notes.

Through the tag or hashtag on social networks # DéjennosTrabajar,
owners of bars and restaurants carry out a campaign to sensitize
the authorities to the economic losses caused by the curfew since
the beginning of the pandemic, the report relays.

The Santo Domingo Tourism Cluster supports the flexibility of the
measure, ensuring that businesses currently meet the requirements
for greater openness, the report relates.

The sector representatives advocated for the government to present
a de-escalation plan in the short term that allows the total
integration of the productive sectors, the report notes.

In social networks, other establishments and figures have echoed
the call of restaurants, such as the singer Wason Brazobán, who
questioned who pays the premises and employees of these businesses,
the report discloses.

It is recalled that the Government extended through July 7, the
current curfew in force in the Dominican Republic, in accordance
with Decree 401-21, the report says.

                    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: Prices of Construction Source Materials Drop
----------------------------------------------------------------
Dominican Today reports that the prices of the leading construction
source materials are beginning to fall in international markets.
Iron ore, steel scrap, and PVC materials have registered downward
variations during the last weeks, after reaching historical levels
due to the crisis generated by the COVID-19 pandemic, according to
the report.

Business people consulted by Diario Libre indicated that it is
expected that the downward trend will continue and, with this, an
effect on the prices of the housing units at the consumer level
will be crystallized, the report relays.

Recently, the Dominican Association of Home Builders and Developers
(Acoprovi) pointed out that the increases in the primary materials
used in the construction sector had raised by 31.5% the costs of
the real estate projects in execution, the report notes.

Construction has been one of the sectors most affected by the
inflationary increases, which is why it has been in the
Government's focus, within the framework of the discussion tables
of special measures to face the international price crisis, the
report discloses.

Sources consulted pointed out that the downward trend registered by
the primary materials of the construction sector, together with the
reactivation of the production levels of these raw materials,
should be reflected within a few weeks in the price levels of
housing.

There are 196 proposals from the roundtables.

In the meantime, proposals continue to be presented at the sectoral
roundtables for the price crisis, set up by President Luis
Abinader, the report relays.  The Minister of Economy, Planning,
and Development, Miguel Ceara Hatton, revealed that almost 196
proposals had been received from the unions, associations, and
social actors that are part of the tables, the report notes.

The official explained that the Ministry of Industry, Commerce, and
Mipymes - the institution in charge of compiling the proposals-
analyzed them and that there are interesting and very positive
aspects that raise issues of temporary and very focused subsidies,
as well as revision of tariffs, liberalization of encaje, zero
bureaucracy and prevalent markets, as he indicated through a press
release, 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).




=============
J A M A I C A
=============

JAMAICA: Urges to Implement Effective Renewable Energy Policy
-------------------------------------------------------------
RJR News reports that the renewable energy sector is calling for
the Jamaican government to implement an effective energy policy.

In a media release, the Jamaica Renewable Energy Association, said
all imports on photovoltaic components are being charged 20 per
cent duty and all lithium batteries are being charged an additional
20 per cent GCT without notice, according to RJR News.

This has forced importers to either pay the increased taxes or
leave their containers at the ports, the report notes.

Importers are also being charged 43 per cent on the cost,
insurance, and freight value of the shipment to clear batteries
containing trace of lithium, which are made to be installed as part
of a renewable energy system, the report relays.

The industry is therefore appealing to the government to align
itself with international best practices and initiate the process
for suspension of the Council for Trade and Economic Development,
CARICOM external tariff, the report adds.

                         About Jamaica

Jamaica is an island country situated in the Caribbean Sea.
Jamaica is an upper-middle income country with an economy heavily
dependent on tourism.  Other major sectors of the Jamaican economy
include agriculture, mining, manufacturing, petroleum refining,
financial and insurance services.

Fitch Ratings affirmed in March 2021 Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+', with a stable
outlook.  Standard & Poor's credit rating for Jamaica stands at B+
with negative outlook (April 2020).  Moody's credit rating for
Jamaica was last set at B2 with stable outlook (December 2019).  

According to Fitch, Jamaica 'B+' rating is supported by World Bank
Governance Indicators that are substantially stronger than the 'B'
and 'BB' medians, a favorable business climate according to the
World Bank Doing Business Survey, moderate inflation and moderate
commodity dependence. These strengths are balanced by vulnerability
to external shocks, a high public debt level and a debt composition
that makes the sovereign vulnerable to exchange rate fluctuations.

The Stable Outlook is supported by Fitch's expectation that the
public debt level will return to a firm downward path
post-pandemic, which is underpinned by political consensus to
maintain a high primary surplus, the resilience of external
finances, and stronger economic policy institutions.




===========
M E X I C O
===========

EZEQUIEL MONTES: Moody's Assigns Ba1 Issuer Rating, Outlook Stable
------------------------------------------------------------------
Moody's de Mexico S.A. de C.V has assigned a ba1 baseline credit
assessment and Ba1/A1.mx (Global Scale, local currency/Mexico
National Scale) issuer ratings to the Municipality of Ezequiel
Montes. The outlook is stable.

RATINGS RATIONALE

The ba1 BCA and Ba1/A1.mx (Global Scale, local currency/Mexico
National Scale) issuer ratings of the municipality of Ezequiel
Montes reflect the credit strengths of positive operating and
financial margins, a strong liquidity position, a track record of
null indebtedness offset by a moderate level of own source revenues
collection, a limited economic base and high unfunded pension
liabilities.

From 2016-2020, the municipality of Ezequiel Montes recorded
operating and financial surpluses, on average equivalent to 17.2%
of operating revenues and 5.4% of total revenues, which compare
favorably with the Ba1 median of 4.9% of operating revenues and
-1.2% of total revenues, respectively. As a result, Ezequiel's
liquidity averaged a strong 5.6 times (x) the cash to current
liabilities from 2016 to 2020 (Ba1 median, 1.6x). Given the
positive operating and financial balances, Ezequiel Montes has been
able to achieve a track record of null indebtedness. However,
Moody´s includes in its calculation of debt the debt proceeds from
the stabilization fund "Fondo de Estabilización de los Ingresos de
las Entidades Federativas (FEIEF)", which for the municipality were
estimated at MXN2.7 million. Therefore, Moody's calculation of net
direct and indirect debt to operating revenues stood at an
extremely low 1.3% of operating revenues, in 2020.

For 2021-22 Moody´s expects that Ezequiel Montes will maintain
operating and financial surpluses, although slightly lower than
those observed from 2016 to 2020, at an average of 6.6% of
operating revenues and 5.2% of total revenues, given the lower
earmarked and non-earmarked transfers expected in 2021. Likewise,
Moody's projects that the municipality's liquidity position will
remain very strong at levels of 31.7x cash to current liabilities,
considering the financial surpluses expected. Finally, considering
that the municipality currently has no plans to acquire any long or
short-term debt Moody's expects the net direct and indirect debt to
operating revenues remain at a very low 1.6% of operating
revenues.

In terms of own source revenues collection, historically Ezequiel
Montes has maintained a moderate proportion of own source revenues
to operating revenues, on average equivalent to 26.6%, a figure
slightly lower than the median of Ba1 peers (28.6%). This is
attributed to the constrained and highly concentrated
socio-economic profile of the municipality. Ezequiel's economy is
concentrated in agriculture and animal breeding, in addition to its
relatively small size, since its population only represents 1.9% of
the state´s population.

Ezequiel Montes also posts a high unfunded pension liability that
is equivalent to MXN470.4 million (258% of operating revenues).

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

Environmental considerations are material to Ezequiel Montes
ratings. Ezequiel Montes is exposed to droughts, which could
significantly affect the local economy and therefore the affect its
own source revenues collection, given the significant concentration
of the municipality's economy in the agricultural and animal
breeding sectors which are intensive in the use of water.

Social considerations are material to Ezequiel Montes ratings.
Ezequiel Montes faces challenges in terms of social development as
well as high unfunded pension liabilities. Ezequiel's inhabitants
have an average of 7.7 years of education, which only represents
the basic school and has a constrained offer of households. In
addition, the municipality records a medium marginalization index,
below the national median of medium-high and is positioned in the
twelfth lower position of 16 municipalities at a state level in
this index. Also, Ezequiel Montes has high unfunded pension
liabilities equivalent to 258% of the operating revenues, amount
relatively higher compared with other Queretaro's municipalities
rated by Moody's and other Ba1 Mexican peers. However, the annual
payments have averaged MXN2.6 million, equivalent to 1.4% of
operating revenues, which reduces the financial pressures.

Governance considerations are material to Ezequiel Montes ratings.
The institutional framework is in line with other Mexican RLGs
(Mexican Financial Discipline Law and the National Accounting
Harmonization Council), the municipality publish in a timely and
transparent manner financial information.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

If the municipality improves its own source revenues collection
while maintains a strong liquidity and operating and financial
balances or implement measures oriented to reduce the current level
of unfunded pensions, the ratings could present upward pressure. On
the contrary, if the municipality´s operating and financial
balances show an abrupt deterioration that in turn significantly
decreases the liquidity, the ratings could face negative
pressures.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.

The period of time covered in the financial information used to
determine Ezequiel Montes, Municipality of's rating is between
January 01, 2016 and December 31, 2020 (source: Financial
Statements of the Municipality of Ezequiel Montes).


GRUPO AEROMEXICO: Says Delta Intends to Exercise a Call Option
--------------------------------------------------------------
Grupo Aeromexico, S.A.B. de C.V. ("Aeromexico" or the "Company")
(BMV: AEROMEX) related that on June 30, 2021, Delta Air Lines, Inc.
("Delta") provided notice to the Company's Chairman of the Board of
Directors informing that Delta intends to exercise its call option
and purchase US$185 million of Apollo's Tranche 2 Commitments under
the existing, and fully disbursed, super-priority
debtor-in-possession secured loan agreement approved by the United
States Bankruptcy Court for the Southern District of New York
presiding over Aeromexico's Chapter 11 voluntary financial
restructuring process, known as "DIP Financing". Delta has
indicated in its notice that such action is in furtherance of its
strategic relationship with Aeromexico and its support of the
Company's restructuring efforts.

                      About Grupo Aeromexico

Grupo Aeromexico, S.A.B. de C.V. (BMV: AEROMEX) --
https://www.aeromexico.com/ -- is a holding company whose
subsidiaries are engaged in commercial aviation in Mexico and the
promotion of passenger loyalty programs.

Aeromexico, Mexico's global airline, has its main hub at Terminal 2
at the Mexico City International Airport. Its destinations network
features the United States, Canada, Central America, South America,
Asia and Europe.

Grupo Aeromexico and three of its subsidiaries sought Chapter 11
protection (Bankr. S.D.N.Y. Lead Case No. 20-11563) on June 30,
2020. In the petitions signed by CFO Ricardo Javier Sanchez Baker,
the Debtors reported consolidated assets and liabilities of $1
billion to $10 billion.

Timothy Graulich, Esq., of Davis Polk and Wardell LLP, serves as
counsel to the Debtors.


NEMAK SAB: Moody's Rates New EUR500MM Senior Unsecured Bonds 'Ba1'
------------------------------------------------------------------
Moody's Investors Service assigned a Ba1 rating to Nemak, S.A.B. de
C.V.'s proposed 7-years EUR500 million senior unsecured
sustainability linked bonds. Nemak's existing ratings including its
Ba1 Corporate Family Rating and stable outlook remain unchanged.

The proceeds from the proposed bonds will be used to refinance
Nemak's existing Euro-denominated 3.25% bond due 2024. The proposed
bonds will include a sustainability linked structure associated to
an 18% reduction target in Nemak's greenhouse gases emissions to be
measured five years after the issuance of the bonds. Nemak has
established a goal to reduce its greenhouse gas emissions by 28% by
the end of 2030 as measured in 2019. The bonds have an interest
rate step-up clause in which interest rate payable on the notes if
certain sustainability targets are not met.

RATINGS RATIONALE

The Ba1 ratings reflect the company's sales concentration with 52%
of its volumes being sold in North America, and its product focus
into three main segments with the same demand drivers. On the other
hand, the ratings continue to reflect Nemak's leading position in
the aluminum engine blocks and cylinder head markets, as well as
its growing e/mobility and structural application business. The
ratings also consider the company's status as the sole supplier for
about 90% of its volumes, its strong technology and innovation
capabilities, and the solid relationship with many of the major
global automakers.

Nemak's operations are closely linked to the performance of the
automotive industry in North America and Europe, where about 88% of
its revenues are derived. Moody's has a stable outlook for the
global automotive manufacturing industry. Moody's expects global
light vehicle sales will continue to recover in 2021. The recovery
in the auto sector will, however, be uneven and faces short term
headwinds like a shortage of semiconductors, which might diminish
global light vehicle production by around 2% this year hurting
automakers around the world. Nonetheless, Moody's forecasts light
vehicle sales in the US to increase by 5.4% in 2021 and 4.9% in
2022. Similarly, Moody's expects Western European auto unit sales
to grow by 11.2% in 2021 and 10.5% in 2022.

Nemak's sales volumes have recovered in the 2H20 and 1Q21 resulting
in a 14.6% y-o-y revenue growth in the 1Q21. Similarly,
profitability measured by EBITDA/Equivalent unit raised to $15.8 in
the 1Q21; up from $13.5 in the 1Q20. Moody's estimates Nemak's
adjusted EBITDA margin will reach around 16% in 2021-22 supported
by higher revenues and a leaner cost structure. The company has
done efforts to reduce its operating costs in face of the
coronavirus outbreak in 2020 which will continue to benefit its
profitability going forward.

Nemak's credit metrics will improve as well over 2021-22 supported
by better operating environment and economic recovery. Moody's
estimates that Nemak will reduce its adjusted gross debt/EBITDA
below 3.0x by the end of 2021 from higher EBITDA generation and
debt reduction; down from 3.5x over the twelve months ended March
31, 2021. Higher EBITDA in 2022 will help Nemak's adj. gross
debt/EBITDA to further improve towards 2.5x by year end 2022.
Similarly, Moody's expects interest coverage will improve with adj.
EBITDA/Interest expense over 5x in 2021 and over 8.5x in 2022; up
from an expected 5x in 2020.

Nemak has adequate liquidity. The company reported cash on hand of
$275 million as of March 31, 2021 that can cover 1.9x its
short-term debt and CMLTD of $149 million as of the same date. In
addition, the company has committed credit facilities totaling $408
million, which are fully available. Furthermore, Nemak's advised
credit facilities add $440 million (77% available) to its secondary
sources of liquidity. Pro-forma for the issuance of the proposed
notes and debt refinancing, Nemak will improve its long-term debt
maturity profile with no major amortizations until 2028 when the
proposed bonds are due and in 2031 when its $500 million bonds are
due. Nemak will resume its capex program in 2021 and invest on
average $390 million per year in 2021-23, primarily to increase
installed capacity in electric vehicles and structural components.

The stable outlook reflects Moody's expectations that Nemak's
credit metrics and profitability will improve over the next 12-18
months.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING

The ratings could be upgraded if the company is able to grow its
topline while maintaining strong credit metrics, with
Moody's-adjusted gross debt/EBITDA below 2.5x and Moody's-adjusted
EBITA/interest expense above 4.0x. To be considered for an upgrade,
the company would also need to improve its profitability, maintain
robust liquidity and cash generation that translates into a
meaningful positive free cash flow.

The ratings could be downgraded if the company's credit metrics
deteriorate over the next 18 months, or in case there is a
greater-than expected decline in automobile sales that hurts
Nemak's operations or liquidity. Failure to de-lever the company,
with adjusted gross debt/EBITDA declining toward 3.0x, or a
deterioration in liquidity could lead to a downgrade.

The principal methodology used in this rating was Automotive
Suppliers published in May 2021.

Nemak, S.A.B. de C.V. produces aluminum cylinder heads, engine
blocks, transmission components, and structural and electric
vehicle components for light vehicles manufactured by more than 60
customers worldwide, with 73% of its sales volumes coming from Ford
Motor Company (Ba2 stable), Volkswagen Aktiengesellschaft (A3
stable), General Motors Company (Baa3 stable) and Fiat Chrysler
Automobiles N.V. -- now part of Stellantis N.V. (Baa3 stable).
Nemak's products are sold mainly in North America and Europe, which
account for 88% of its consolidated revenue. Nemak reported revenue
of $3.4 billion over the twelve months ended March 31, 2021.


NEMAK SAB: S&P Rates Up to $500MM Sr. Unsecured Notes 'BB+'
-----------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level and '3' recovery
ratings (rounded estimate: 55%) to Nemak S.A.B. de C.V.'s
(BB+/Stable/--) proposed senior unsecured notes of up to EUR500
million. This transaction follows Nemak's recent refinancing of its
dollar-denominated bond. The company will use the new issuance
proceeds to refinance its existing 3.25% senior unsecured bond due
2024 with an outstanding balance of EUR500 million.

Under the new issuance, the company has also established
sustainability objectives, mainly on reducing greenhouse gas (GHG)
emissions. Nemak's goal is to reduce GHG emissions by 18% by 2026,
compared with scope 1 and 2 GHG emissions of 1.4 million tCO2e as
of Dec. 31, 2019. Under a stressed scenario, in which the company
doesn't achieve the expected sustainability performance target in
the proposed timeframe, this will result in an increased interest
rate, which will be established on transaction completion. Nemak
will also be subject to publishing, on an annual basis, its
sustainability performance, along with a verification assurance
report, to be issued by the external verifier. In S&P's opinion,
this transaction reflects the company's commitment to improve its
sustainability practices.

S&P said, "The stable outlook on Nemak reflects our view that its
production volumes will continue recovering towards pre-pandemic
levels as it improves product mix and increases market access in
the electric vehicle segment, allowing it to post debt to EBITDA
below 2.0x and free operating cash flow to debt close to 15%, while
maintaining strong liquidity."

  Ratings List

  NEW RATING

  NEMAK S.A.B. DE C.V.

   Senior Unsecured     BB+
    Recovery Rating     3(55%)




=====================================
T R I N I D A D   A N D   T O B A G O
=====================================

CARIBBEAN AIRLINES: T&T Public Wants to Sever Ties With Jamaica
---------------------------------------------------------------
Durrant Pate at Jamaica Observer reports that there is a growing
segment of the Trinidad and Tobago public clamouring for its
home-based regional airline, Caribbean Airlines (CAL), to sever
link with Jamaica in the wake of mounting losses.

Some segments of the public blame the loss making routes in and out
of Jamaica for the increasing operational deficit being incurred by
Caribbean Airlines over the years since it bought Jamaica's then
national carrier, Air Jamaica, in 2010, according to Jamaica
Observer.

CAL's accumulated losses is now estimated at US$454.5 million (over
TT$3 billion), while posting a TT$172.7 million ($26 million) loss
for the first quarter 2021 added to the operating loss of TT$738
million (USD108.5 million) booked in 2020, the report notes.

In addition, there was a 75 per cent decline in revenue, compared
to the same three months in 2020, the report says.  In 2010, the
Government of Jamaica agreed with CAL that it would designate it
the exclusive national carrier of Jamaica when it bought Air
Jamaica, the report recalls.

The Jamaican Government committed that it will not request
designation of national carrier status for any other air carrier
for as long as CAL's Jamaican operations maintain a minimum level
of service and meet certain other criteria, the report notes.

One Trinidadian, John Jessamy, writing in the Trinidad and Tobago
Newsday, commented that CAL's, "agreement with Jamaica was a
disaster," the report says.  He wrote that, "as recent as May CAL
signed an agreement to absorb 1,000 Jamaicans as pilots, cabin
attendants, maintenance engineers and ground staff, while the T&T
Treasury is bearing this burden while Jamaica is laughing all the
way to the bank," the report notes.

Jessamy emphasized that from June 2020 to now, Jamaica has recorded
a total of 816,632 stopover visitors and generated in excess of
US$1.31 billion, questioning whether CAL got a fraction of that
money, the report discloses.

In responding to his question, the Trinidadian contended, "we stand
all expenses and Jamaica waits for its share of the profits at the
end of the year, the report relays.  That's ludicrous.  CAL surely
needs restructuring. The first thing to do is sever the link with
Jamaica," the report adds.

He charged that since CAL was formed in 2006, it has not made a
profit of any real value but continues to receive a handout from
the Ministry of Finance annually, the report relays.

In dealing with the financial crisis at the airline, Jessamy is
suggesting that CAL forge an alliance with LIAT and service the
entire Caribbean with only ATR turbo prop planes, the report
discloses.  He was adamant that Jamaica should not be in this
partnership, arguing that Kingston "is only interested in
international travellers to fund its tourism product. It is about
time we get this monkey off our backs," the report relays.

Interestingly, CAL is 88.1 per cent owned by the Government of
Trinidad & Tobago with the Jamaican Government holding the
remaining 11.9 per cent, the report notes.  The airline operates
bases at both Port of Spain (Trinidad and Tobago) and Kingston's
Norman Manley (Jamaica), the report says.

CAL holds 8.42 per cent market share at Kingston City Norman Manley
International in terms of weekly airline seats, third in line after
JetBlue Airways (B6, New York JFK) with 49.12 per cent and American
Airlines (AA, Dallas/Fort Worth) with 9.66 per cent, the report
discloses.

Jessamy's sentiments about CAL delinking with Jamaica is shared by
several members of the society; some among them in Parliament, the
report relays.  Pronouncement by several Trinidadians suggested
that they see Jamaica as being an albatross around the neck of the
T&T-based airline ever since its purchase of Air Jamaica, the
report notes.

There has been no response from the Dr Keith Rowley-led Trinidad
Government about talks of CAL severing ties with Jamaica, but the
Administration has announced a restructuring of its operations at
both bases in Jamaica and T&T, the report relays.

Finance Minister Colm Imbert told Parliament that, "Caribbean
Airlines' restructuring will be taken in both countries in the best
interest of the airline," the report adds.

                  About Caribbean Airlines

Caribbean Airlines Limited - http://www.caribbean-airlines.com/-  

provides passenger airline services in the Caribbean, South
America, and North America.  The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods.  In addition, it operates a duty free
store in Trinidad.  Caribbean Airlines Limited was founded in 2006
and is based in Piarco, Trinidad and Tobago.

Caribbean Airlines is among many airlines whose business has been
greatly affected in 2020 by the slowdown of international travel
caused by the COVID-19 pandemic.  The government of Trinidad &
Tobago guaranteed a US$65 million loan for the airline, and that
funding has helped with the airlines' cash flow shortfall since May
2020.  In September 2020, the airline related it will be taking
cost-cutting measures to help keep it afloat.  The measures, which
was to affect some 1,700 employees, included salary deductions,
no-pay leaves and lay-offs.


CL FINANCIAL: Liquidators Draw US$9 Million in Fees From Firm
-------------------------------------------------------------
Trinidad Express reports that since their appointment four years
ago, the joint liquidators (JLs) in charge of CL Financial (CLF),
international accounting firm Grant Thornton's Hugh Dickson and
David Holukoff have submitted claims for payment of fees and
expenses totalling over $61.8 million (US$9.11 million).

Grant Thornton was appointed as the provisional liquidator of CL
Financial, following an application by Finance Minister Colm Imbert
for the winding up of the group, which was once Trinidad and
Tobago's largest indigenous company, according to Trinidad
Express.

In the seventh report to the court, dated December 18, 2020, and
signed by Holukoff, the liquidators said that up to October 2020,
the JLs have drawn total fees US$8,318,856 ($56,441,635), the
report notes.

But the payments to Grant Thornton include fees of $2,494,513 for
the period of their appointment as provisional liquidators from
July to September 2017 while under liquidator expenses, there is a
sum of $2,921,553, the report relays.

In total, for the period July 2017 to October 2020, Grant Thornton
has invoiced the Government for a total of $61,827,701, which is
equal to about 55 per cent of the $112,976,056 identified as
payments by the liquidators, the report relates.  The second
largest CLF expense in the period is for legal fees, which totaled
$18,751,897, the report discloses.

The liquidators also serve on several of the conglomerate's boards,
the report notes.

In their report, they noted the fees earned are a discounted sum.

"From the date of our appointment on September 15, 2017, to October
31, 2020, the JLs have drawn total fees of US$8,318,856 after an
applied discount of US$3,722,043 and expenses of US$431,866.16,"
the report said, Trinidad Express relays.

According to the report, CL Financial, the conglomerate in
liquidation, has $237 million in cash as at October 31, 2020,
Trinidad Express discloses.

The report noted that substantial value was received by CL
Financial in the week of preparing the report, which will take its
cash in hand to $374 million, of which $88 million will remain
ring-fenced within the company on the determination of an
outstanding trust deed, Trinidad Express says.

It sold assets directly and indirectly owned by CL Financial,
amounting to the sum of $140 million for the reporting period,
Trinidad Express notes.

CLF received $152 million in dividends for the six-month period
$142 million from CL World Brands (CLWB) and $10 million from
Caribbean Petrochemical Manufacturing Ltd, Trinidad Express
discloses.

Updates:

Trinidad Express relays that among the updates in the report are:

1. HCL's land divestment

The liquidators placed in excess of 3,000 acres of land on the open
market for sale.

It noted the Covid-19 pandemic affected its initial marketing
process, but it launched a "comprehensive marketing process for the
first tranche of the land bank assets on 1 July, 2020".

"HCL management and the joint liquidators' team worked closely with
the brokers over a three-month period to maximise the outcome of
the marketing process and to address an extensive number of queries
from prospective purchasers in relation to the available land. The
process ultimately resulted in substantial public interest, with 73
bids being received and offers being accepted in the amount of $116
million.

"Since closure of the process, the joint liquidators have overseen
execution of four sale and purchase agreements for the total amount
of $43 million, with deposits in hand, which are expected to
complete in the three-month period following this report. All the
executed agreements were at or above the independent valuation
obtained by the joint liquidators.

"Negotiations remain ongoing in relation to four additional lots
where the transactions have been delayed at the request of the
potential purchasers; the JLs and the HCL subgroup will take all
appropriate action to secure these sales as soon as possible. The
JLs note that transacting business during the pandemic is not
straightforward and are therefore working constructively with
interested parties to close deals," the report said.

It noted since being granted approval by the court, 11 formal
notices of "Land Likely to be Acquired for a Public Purpose" have
been filed in the Trinidad and Tobago Gazette for land owned by the
HCL subgroup.

"Four of these notices were filed after launch of the marketing
process for tranche one of the land bank and resulted in the
applicable lots being withdrawn from the public process, even
though substantial bids had been received on those lots and monies
spent on marketing them. All eleven lots will be excluded from any
further marketing process and will be subject to a compulsory
acquisition process which remains ongoing at the state of this
report," it said.

The report said the remaining land bank will be brought to market
this year through a public process "which is in line with that
originally approved by the court's order".

2. Agostini's share sale

The report noted that the JLs oversaw the sale of 50 per cent of
HCL's shareholding of Agostini's Ltd, which earned it $39 million
in mid-March 2020.

The JLs said: "The sale proceeds were obtained at a critical time
during the peak of the pandemic and provide essential assistance to
the group in meeting its working capital and debt servicing
obligations."

"On advice of the independent brokers overseeing the transaction,
50 per cent of the shares held by HCL for remarketing later in 2020
due to lack of liquidity in the market at the height of the
pandemic. The independent brokers have monitored liquidity in the
market in the six-month period preceding this report, with a view
to identifying a suitable opportunity to sell the shares. Following
the broker's advice, a further sale of 50,000 shares was completed
in November 2020 at a market value of $1.2 million. These funds
will be utilised to pay down the secured creditor of HCL per
agreement with them.

"Whilst expressions of interest have been received for the
remaining shares, the indicated values are not in line with current
market value, and as such this has not been pursued by HCL. The JLs
and management of HCL remain open to offers for the shares which
reflect current market value, and will ensure that any suitable
opportunity to release value from the remaining shareholding is
progressed in 2021," the report said.

For the financial year ended September 30, 2020, HCL was listed as
owning 1,925,291 shares in Agostini's Ltd.

3. CLICO's stake in Oman-based methanol company, MHIL

"The JLs completed their review of a trust purportedly in favour of
CLICO's beneficial ownership of the company's shareholding in MHIL
and filed an application to the court seeking direction on the
trust's validity on June 17, 2020, with the matter coming before
the High Court of Justice on August 12, 2020.

On August 26, 2020, it was ordered that this declaration of trust
was validly executed and the MHIL shares did not form part of the
assets of the company available for distribution by the joint
liquidators. As the MHIL share proceeds had been previously
ring-fenced within an escrow account, the JLs directed the proceeds
to be provided to CLICO in accordance with the order. It is not
anticipated that any further action will be required in this
matter," the report said.

Since 2019, in their third report, the joint liquidators have
identified the divestment of Methanol Holdings (International) Ltd
(MHIL) as "significantly advanced" and "will complete during the
period following this report".

In CLICO's 2017 audited financial report, the company's 56.53 per
cent stake in MHIL is valued at $2.37 billion, the report relays.

                  Appointment of Joint Liquidators

The JLs were appointed by the High Court in 2017 to manage CLF,
with the power, among others, to secure the assets and undertakings
of CLF and to investigate the affairs of CLF, the report
discloses.

On July 11, 2017, the Government petitioned and was success­ful in
the High Court to have the conglomerate, once chaired by Lawrence
Duprey, be wound up because it was unable to pay its debt and that
JLs be appointed to manage its affairs, the report says.  The
Government's case was that CLF is insolvent and continued operation
was "reckless", that it was in the public's interest to have it
wound up to repay the debt owed to Government and other creditors,
the report notes.

CLF's most valuable asset, its other insurance company Colonial
Life Insurance Company (CLICO) remains under management of the
Central Bank of Trinidad and Tobago (CBTT) under Section 44D, the
report relays.

CLF's shareholders are CL Duprey Investment Trust (21.8 per cent),
Dalco Capital Management Company Ltd (26 per cent), Ministry of
Finance (14.2 per cent), other parties (38 per cent), the report
adds.

                  About CL Financial/CLICO

CL Financial was one of the largest privately held conglomerate in
Trinidad and Tobago. It was originally founded as an insurance
company and has since expanded to be the holding company for a
diverse group of companies and subsidiaries.

CL Financial is the parent company of Colonial Life Insurance
Company (Trinidad) Limited (Clico).  CLICO is now the Company's
insurance division.

CL Financial however experienced a liquidity crisis in 2009 that
resulted in a "bail out" agreement by which the government of
Trinidad and Tobago loaned the company funds ($7.3 billion as of
December 2010) to maintain its ability to operate, and obtained a
majority of seats on the company's board of directors.

The companies to be bailed out were: CL Financial Ltd (CLF);
Colonial Life Insurance Company Ltd (CLICO); Caribbean Money Market
Brokers Ltd (CMMB); Clico Investment Bank (CIB) and British
American Insurance Company (Trinidad) Ltd (BAICO).

As reported in the Troubled Company Reporter-Latin America in July
2017, CL Financial Limited shareholders vowed to pay back a TT$15
billion (US$2.2 billion) debt to the Trinidad Government.



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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
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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.

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