/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/211007.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 Thursday, October 7, 2021, Vol. 22, No. 195 Headlines B O L I V I A BANCO NACIONAL DE BOLIVIA: Moody's Affirms 'B2' LT Deposit Rating B R A Z I L BRAZIL: Unemployment Falls to 13% in May-July trimester, IBGE Says C A Y M A N I S L A N D S CASTLELAKE AVIATION: Fitch Gives 'BB(EXP)' to $420MM Unsec. Notes CASTLELAKE AVIATION: Moody's Rates New Senior Unsecured Notes 'B2' D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: 21.54 % of Households Cut Number of Meals/Day DOMINICAN REPUBLIC: To Spend US$55 Million in Santiago J A M A I C A DIGICEL GROUP: Building Deep Blue One Subsea Cable M E X I C O GRUPO AEROMEXICO: Akin Gump 3rd Update on Senior Noteholder Group GRUPO AEROMEXICO: Gibson Dunn Updates on Claimholders GRUPO AEROMEXICO: Plan Filing Deadline Extended to Oct. 8 T R I N I D A D A N D T O B A G O CL FINANCIAL: Judge Reverses CLICO Energy Sale From 2009 - - - - - ============= B O L I V I A ============= BANCO NACIONAL DE BOLIVIA: Moody's Affirms 'B2' LT Deposit Rating ----------------------------------------------------------------- Moody's Investors Service has affirmed all long-term ratings and assessments assigned to Banco Nacional de Bolivia S.A. (BNB), including its B2 local and foreign currency deposit ratings and its b2 baseline credit assessment (BCA) and adjusted BCA. Moody's also affirmed the bank's long-term counterparty risk ratings of B1 and B2, for local and foreign currency respectively, as well as the long-term counterparty risk assessment (CRA) of B1(cr). All short-term ratings were also affirmed. The outlook on BNB's ratings was changed to negative, from stable. The rating action follows Moody's announcement published on September 30, 2021 that it had affirmed the Government of Bolivia's B2 bond rating, and changed the outlook to negative, from stable. Affirmations: Long term local and foreign currency deposit ratings of B2, outlook changed to negative from stable Short term local and foreign currency deposit ratings of Not Prime Long term local currency counterparty risk rating of B1 Long term foreign currency counterparty risk rating of B2 Short term local and foreign currency counterparty risk ratings of Not Prime Baseline Credit Assessment of b2 Adjusted Baseline Credit Assessment of b2 Long-term counterparty risk assessment of B1(cr) Short-term counterparty risk assessment of Not Prime(cr) Outlook action: Outlook Changed to Negative From Stable RATINGS RATIONALE The affirmation of BNB's B2 rating reflects the bank's well-established position in Bolivia, as the third largest bank, with a diversified loan book and important presence in mortgage, as well as credits to corporate and small and medium size enterprises. The bank's asset quality has historically aligned with the banking system's average, with non-performing loans relative to gross loans at 1.8% as of June 2021, a slight improvement compared to pre-pandemic levels. However, Moody's note that the extensive loan restructuring campaigns in 2020, still in place in Bolivia, will likely still impact future asset quality metric as deferrals come to an end over the next two quarters. In June 2021, loans subject to restructurings terms or with ongoing grace periods accounted for a high 25% of BNB's total loans, close to system average. Over the past four years, the bank's profitability has been negatively affected by higher funding costs, due to strong competition in the local market, with additional pressure in 2020 from increased credit costs and lower fee income, resulted from the increase in asset risk and the decline in business volumes during the pandemic and partial lockdowns in the country. As a result, BNB's net income to tangible assets ratio stood at a low 0.3% in December 2020, remaining flat in June 2021, well below the 0.9% reported in 2019. Moody's expect further pressure on credit costs to materialize with the end of loan deferrals and a moderate economic growth estimated for 2022 that will likely maintain business volumes below pre-pandemic levels. Despite subdued profitability, BNB's capitalization improved with tangible common equity to adjusted risk weighted assets ratio increasing to 10.6% in June 2021, from 9.7% one year earlier. This improvement resulted from moderate credit growth and low dividend payments since 2020. BNB's liquidity profile remained moderate, with liquid assets to total banking assets ratio at 27.4% in June 2021, still below the bank's historical average of above 35% before 2018. However, most of its funding mix is made of deposits, which reduces the exposure to international market volatility and to high cost structures. Nonetheless, and similar to its peers in the local market, BNB's deposits are largely from local pension funds, and therefore, embed some concentration risk. The change in BNB's rating outlook to negative, from stable, was in line with the negative outlook on Bolivia's government bond rating and reflects Moody's view that underlying inter-linkages between banks´ standalone creditworthiness and that of the sovereign are high. BNB's ratings continue to be placed at the same level of the sovereign ratings. MACRO PROFILE CHANGED TO WEAK-, FROM WEAK Moody's changed the Macro Profile for Bolivia to Weak-, from Weak, to incorporate the challenging operating and macroeconomic environment in the country. Increasing liquidity risks of Bolivia's sovereign, driven by large, recurring fiscal deficits, a declining foreign exchange reserve buffer and large government financing needs pose risks to banks' operating environment. The pandemic-induced economic recession and extensive mandatory loan deferrals, which Moody's expect to continue to generate asset risk pressures in the coming quarters, have also increased risks for banks. In addition, the country's economic growth is expected to moderate to about 3% over the next 3-5 years, from a 4% average previous to the pandemic, which also affect banks' business and asset quality prospects. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A stabilization of BNB's ratings outlook could arise from a similar action on Bolivia's sovereign ratings, provided that the bank's financial performance stabilizes after the negative cycle caused by the pandemic outbreak. A downgrade could be driven by a downgrade of the Bolivian sovereign rating, further deterioration in the country's operating environment, or a higher-than-expected deterioration of BNB's asset quality or pressures on its funding and liquidity profiles. RATING METHODOLOGY The principal methodology used in these ratings was Banks Methodology published in July 2021. =========== B R A Z I L =========== BRAZIL: Unemployment Falls to 13% in May-July trimester, IBGE Says ------------------------------------------------------------------ Rio Times Online reports that the unemployment rate in Brazil closed at 13.7% in the May to July mobile quarter, which is the lowest rate so far this year and a drop of one percentage point compared to 14.7% in the previous period, according to official data released. In absolute numbers, there are still 14.1 million people looking for work in this country of 213 million inhabitants, which represents 676,000 fewer than in the moving quarter closed in April, indicated the latest report of the federal Institute of Statistics IBGE, according to Rio Times Online. The average expectation of 26 consulting firms and financial institutions surveyed by the economic daily Valor was an unemployment rate of 13.9% in the quarter ending in July, the report relays. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Jair Bolsonaro is the current president, having been sworn in on Jan. 1, 2019. Fitch Ratings' credit rating for Brazil stands at 'BB-' with a negative outlook (November 2020). Fitch's 'BB-' Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) has been affirmed in May 2021. Standard & Poor's credit rating for Brazil stands at BB- with stable outlook (April 2020). S&P's 'BB-/B' long-and short-term foreign and local currency sovereign credit ratings for Brazil were affirmed in December 2020. Moody's credit rating for Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). =========================== C A Y M A N I S L A N D S =========================== CASTLELAKE AVIATION: Fitch Gives 'BB(EXP)' to $420MM Unsec. Notes ----------------------------------------------------------------- Fitch Ratings expects to assign a 'BB(EXP)' rating to Castlelake Aviation Finance DAC's (CAF) proposed $420 million issuance of senior unsecured notes. The proceeds will be used to fund the purchase and transfer of aircraft assets from funds and entities managed by Castlelake L.P. KEY RATING DRIVERS The expected senior unsecured debt rating is equalized with CAF's expected Long-Term Issuer Default Rating (IDR) reflecting expectations for average recovery prospects in a stressed scenario given the availability of unencumbered assets. CAF's expected Long-Term IDR is equalized with that of parent, Castlelake Aviation Limited (CA), given it is a wholly owned debt-issuing subsidiary. CA's expected ratings are supported by its young fleet with one of the longest weighted average remaining lease terms amongst peers, adequate targeted leverage, the absence of order book purchase commitments, lack of near-term debt maturities and strong expected liquidity metrics. The ratings also consider the company's affiliation with Castlelake L.P., which has an established position as a lessor of midlife and older commercial aircraft, management experience and a track record in underwriting, servicing and managing a sizable global aircraft portfolio. The expected rating is constrained by execution risks associated with the company's aggressive, albeit potentially attainable, growth targets and accompanying financing objectives. Additional rating constraints include a largely secured expected funding profile, a smaller and significantly concentrated portfolio by customer and geography at inception relative to other aircraft lessors, lower than peer exposure to narrowbody aircraft, higher than average exposure to weaker credit airlines, and weaker projected profitability over the next two years. Fitch also notes potential governance and conflict of interest risks associated with Castlelake's externally-managed business model, limited number of independent board members and ownership by a fixed-life private fund structure. Rating constraints applicable to the aircraft leasing industry more broadly include the monoline nature of the business; vulnerability to exogenous shocks including the ongoing challenges facing the aviation sector as a result of the coronavirus pandemic; potential exposure to residual value risk; sensitivity to oil prices; reliance on wholesale funding sources; and increased competition. Fitch expects the issuance of $420 million of senior unsecured notes will diversify CA's funding profile, resulting in unsecured debt representing slightly above 20% of the firm's total debt at inception. Fitch expects CA will rely predominantly on secured borrowings to fund its operations, however, additional issuances of unsecured debt would be viewed favorably as it would increase unencumbered assets and improve the company's financial flexibility. The Stable Rating Outlook reflects Fitch's expectation that CA will manage its balance sheet growth in order to maintain sufficient headroom relative to its targeted leverage range and Fitch's negative rating sensitivities over the Rating Outlook horizon. The Stable Rating Outlook also reflects expectations for the maintenance of a strong liquidity position, given the lack of order book purchase commitments with aircraft manufacturers. RATING SENSITIVITIES The expected senior unsecured debt rating is primarily sensitive to changes in CAF's Long-Term IDR and secondarily to the relative recovery prospects of the instruments. A decline in unencumbered asset coverage, combined with a material increase in secured debt, could result in the notching of the unsecured debt down from the Long-Term IDR. Upon establishment of the aircraft portfolio, execution of the term loan B and execution of an unsecured debt issuance, Fitch would expect to convert CA's and CAF's expected IDRs to final IDRs. Failure to execute on the aircraft asset transfer, secured funding and unsecured debt issuance could result in the expected ratings being withdrawn or revised down. Factors that could, individually or collectively, lead to positive rating action/upgrade: Long-Term IDR -- Assuming the aircraft asset transfer is completed and the secured term loan B and unsecured notes are closed, CA's ratings could be, over time, positively influenced by solid execution with respect to planned growth targets and outlined long-term strategic financial objectives, including maintenance of leverage within the targeted range. Ratings could also benefit from enhanced scale and improved risk profile of the portfolio, as exhibited by stronger lessee diversification, reduced exposure to weaker airlines, maintenance of the impairment ratio below 1%, and increases in the proportions of Tier 1 aircraft and narrowbody aircraft. -- An upgrade would be also conditioned upon achieving a sustained return on average assets in excess of 2.5% and unsecured debt approaching or in excess of 35% of total debt, while achieving and maintaining unencumbered assets coverage of unsecured debt in excess of 1.0x. Any potential upward rating momentum would also be evaluated in the context of potential governance and conflict of interest risks associated with CA's externally managed business model, limited number of independent board members and ownership by a fixed-life private fund structure. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- CA's ratings are sensitive to renewed pandemic-driven lockdowns and travel restrictions as this would further pressure the airline industry and could lead to lease restructurings, lessee defaults and increased losses. A weakening of the company's projected long-term cash flow generation, profitability and liquidity position and/or a sustained increase in leverage above 4x would also be viewed negatively. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. CASTLELAKE AVIATION: Moody's Rates New Senior Unsecured Notes 'B2' ------------------------------------------------------------------ Moody's Investors Service assigned a B2 rating to the senior unsecured notes proposed to be issued by Castlelake Aviation Finance DAC (Castlelake Aviation). Castlelake Aviation's Ba3 corporate family rating and Castlelake Aviation One DAC's (a wholly-owned subsidiary of Castlelake Aviation) Ba3-rated proposed term loan were not affected by the rating action. Castlelake Aviation and Castlelake Aviation One DAC's outlooks is unchanged at positive. Assignments: Issuer: Castlelake Aviation Finance DAC GTD Senior Unsecured Regular Bond/Debenture, Assigned B2 RATINGS RATIONALE The B2 rating assigned to Castlelake Aviation's proposed senior unsecured notes reflects the notes' junior position in the company's capital structure, with their being subordinated to a substantial amount of secured debt. This secured debt includes Castlelake Aviation's $750 million secured revolving facility due 2024 and Castlelake Aviation One DAC's $1.2 billion proposed senior secured term loan due 2026. The debt instrument ratings are based on the application of Moody's Loss Given Default for Speculative-Grade Companies methodology and model. Castlelake Aviation's Ba3 CFR reflects Moody's expectation of its improving profitability, good equity capital and stable fleet utilization, which are likely to benefit from better prospects of domestic travel. Moody's currently expects that global air passenger demand will recover toward 2019 levels through 2023, but the recovery will be uneven due to varying vaccination rates and may be delayed by the spread of COVID-19 variants. These credit strengths are tempered by high lessee concentration and reliance on secured debt for funding, although the company has plans to shift its funding to a greater composition of unsecured debt. Moody's expects that Castlelake Aviation will benefit from its management and servicing relationship with Castlelake Aviation Holdings (Ireland) Limited, a wholly owned subsidiary of Castlelake, L.P. (together, "Castlelake"), which has a long-term history of placing aircraft and managing relationships across the world. Moody's also anticipates that Castlelake Aviation will maintain a good liquidity position supported primarily by good free cash flow generation and a healthy level of retained cash. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The ratings could be upgraded if Castlelake Aviation decreases its reliance on secured debt such that its secured debt to tangible managed assets is less than 50%, demonstrates solid debt maturities management while also maintaining consistent profitability as defined by net income to total assets of above 1.0% (not including gain on sale of the aircraft), and debt / equity leverage remains below 3.0x. The ratings could be downgraded if Castlelake Aviation suffers from a deterioration in earnings such that profitability as defined by net income to total assets is sustained below 1% or if overall liquidity declines, including funds from operation being below 6% of total debt, or if it disposes of aircraft assets on unfavorable terms. The principal methodology used in this rating was Finance Companies Methodology published in November 2019. Incorporated in Cayman Islands, Castlelake Aviation Finance DAC (Castlelake Aviation) is a newly formed entity that will specialize in leasing of commercial aircraft globally. Castlelake Aviation will ultimately be owned by funds and accounts managed by Castlelake , an aviation platform with a fleet of 352 aircraft with assets of $20.2 billion at June 1, 2021. Upon the date the proposed financing transactions are anticipated to close, Castlelake Aviation will have 71 aircraft in its portfolio at $2.6 billion in total assets. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: 21.54 % of Households Cut Number of Meals/Day ----------------------------------------------------------------- Dominican Today reports that the crisis due to the coronavirus pandemic caused a setback of the conquests in the development indicators of the Dominican Republic, approximately 576,000 people returned to extreme poverty and 1,400,000 to general poverty. The data includes an evaluation of the effects of the COVID-19 pandemic in the country in which the Ministry of Economy, the agencies, funds, and programs of the United Nations System (UN), the European Union, the World Bank, and the Inter-American Development Bank participated with information collected in the period March-December 2020, according to Dominican Today. "It is estimated that, as a result of the COVID-19 crisis, the extreme poverty rate increased from 3% to 8.2% (576,000 new extreme poor), and the general poverty rate from 21.4% to 34.6% (1.4 million new poor), which implies an increase of 13.3 percentage points, to return to the levels registered in 2014,"the report relays. Due to the low purchasing power, the report states that 21.54% of the households evaluated reported that they had to reduce the number of meals per day, the report notes. 31% said they reduced the portion or amount of food served, the report says. Even 2.7% of households reported whole days without eating, the report discloses. The government took measures to guarantee agricultural production, even the interviewees admitted the availability and quality of food in the markets, however, they reported that their income was insufficient to counteract inflation, the report relates. The low purchasing power coincided with the fall in employability, the document adds, the report says. "Despite the measures to contain the impacts on the labor market, by September 2020 the number of employed people decreased by 335,674 and in the hardest phase of confinement it reached 410,367 (June 2020). With this, the occupancy rate decreased by 5.2% in the second quarter and by 6.1% in the third quarter compared to 2019," the document stated, the report notes. However, the negative data, in the evaluation the agencies recognized the importance of the social programs: Employee Solidarity Assistance Fund (FASE) and "Pa Ti"and Stay at Home: "Social programs have meant that 752,395 Dominicans have not fallen into a condition of general monetary poverty during the worst months of the pandemic. Of these, 315,431 people could have fallen into destitution if mitigation programs were not implemented. Due to the response measures to the crisis, the increase in people in poverty was limited to 650,000 poor and 255,000 new extreme poor people as of June 2020," the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. The Troubled Company Reporter-Latin America reported in April 2019 that the Dominican Today related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Fitch Ratings on Jan. 18, 2021, assigned a 'BB-' rating to Dominican Republic's USD1.5 billion 5.3% notes due Jan. 21, 2041. Concurrently, the Dominican Republic reopened its 2030 4.5% notes for an additional USD1.0 billion, which Fitch rates 'BB-', raising the total outstanding amount of the 2030 notes to USD2.0 billion. Standard & Poor's, on December 4, 2020, affirmed its 'BB-' long-term foreign and local currency sovereign credit ratings on the Dominican Republic. The outlook remains negative. S&P also affirmed its 'B' short-term sovereign credit ratings. The negative outlook reflects S&P's view that it could lower the ratings on the Dominican Republic over the next six to 18 months, given the severe impact of the COVID-19 pandemic on the sovereign's already vulnerable fiscal and external profiles, as well as the potential for a weaker-than-expected economic recovery. Moody's credit rating for Dominican Republic was last set at Ba3 with stable outlook (July 2017). Fitch's credit rating for Dominican Republic was last reported at BB- with negative outlook (May 8, 2020). DOMINICAN REPUBLIC: To Spend US$55 Million in Santiago ------------------------------------------------------ Dominican Today reports that President Luis Abinader said that the Dominican Republic government will spend RD$42 billion (US$55 million) in Santiago over the next four years in the execution of new infrastructure works. During his intervention at the opening of the Expo Cibao 2021 fair, before an audience made up of business leaders, the president explained that the Santiago 2025 plan includes the construction of a monorail, a cable car, a better bus network and the promotion of use of bicycles, according to Dominican Today. The project includes the construction of 1,200 apartments in the Hato del Yaque municipal district, the report notes. Likewise, the improvement of 39 kilometers of road in Santiago. The projects include the expansion of the Duarte highway at the entrance to the province and the Gregorio Luperón highway, whose works were started by the president, 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 ============= DIGICEL GROUP: Building Deep Blue One Subsea Cable -------------------------------------------------- RJR News reports that Mobile service provider, Digicel, on said it is making a significant investment in international submarine capacity with the build of its Deep Blue One subsea cable. It has signed a partnership agreement with Orange to extend the system from Trinidad to French Guiana, according to RJR News. In a statement, Digicel said Deep Blue One will provide the best in class connectivity with the opportunity to connect offshore oil and gas rigs on the back of the industry boom in the region, the report relays. The company said this build will complement its existing Southern Caribbean Fibre network which has approximately 3,000 kilometres of submarine cable connecting 20 islands in the Eastern Caribbean, the report adds. About Digicel Group Digicel Group is a mobile phone network provider operating in 33 markets across the Caribbean, Central America, and Oceania regions. The company is owned by the Irish billionaire Denis O'Brien, is incorporated in Bermuda, and based in Jamaica. As reported in the Troubled Company Reporter-Latin America in April 2020, Moody's Investors Service downgraded Digicel Group Limited's probability of default rating to Caa3-PD from Caa2-PD. At the same time, Moody's downgraded the senior secured rating of Digicel International Finance Limited to Caa1 from B3. All other ratings within the group remain unchanged. The outlook is negative. Also in April 2020, the TCR-LA reported that Fitch Ratings has downgraded Digicel Limited to 'C' from 'CCC', and its outstanding debt instruments, including the 2021 and 2023 notes to 'C'/'RR4' from 'CCC'/'RR4'. Fitch has also downgraded Digicel International Finance Limited to 'CCC+' from 'B-'/Negative, and its outstanding debt instruments, including the 2024 notes and the 2025 credit facility, to 'CCC+'/'RR4' from 'B-'/'RR4'. Fitch has removed the Negative Rating Outlook from DIFL. =========== M E X I C O =========== GRUPO AEROMEXICO: Akin Gump 3rd Update on Senior Noteholder Group ----------------------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firm of Akin Gump Strauss Hauer & Feld LLP submitted a third amended verified statement to disclose an updated list of Ad Hoc Group of Senior Noteholders that it is representing in the Chapter 11 cases of Grupo Aeromexico, S.A.B de C.V., et al. On July 8, 2020, the Ad Hoc Group engaged Akin Gump Strauss Hauer & Feld LLP to represent it in connection with the chapter 11 cases of Grupo Aeromexico, S.A.B. de C.V. and its affiliated debtors and debtors in possession. Shortly thereafter, the Ad Hoc Group engaged Nader, Hayaux y Goebel, S.C. as Mexican counsel, and Ducera Securities LLC and Banco BTG Pactual S.C. as financial advisor. On September 18, 2020, the Ad Hoc Group filed the Verified Statement of the Ad Hoc Group of Senior Noteholders Pursuant to Bankruptcy Rule 2019. On February 12, 2021, the Ad Hoc Group filed the First Amended Verified Statement of the Ad Hoc Group of Senior Noteholders Pursuant to Bankruptcy Rule 2019. On June 9, 2021, the Ad Hoc Group filed the Second Amended Verified Statement of the Ad Hoc Group of Senior Noteholders Pursuant to Bankruptcy Rule 2019. Thereafter, the Ad Hoc Group directed The Bank of New York Mellon, in its capacity as Trustee under the Indenture, to retain Akin Gump as special counsel, Nader as special Mexican counsel, and Ducera and BTG as financial advisors, in each case to represent the interests of the holders of the Senior Notes, effective as of June 1, 2021. Counsel does not represent the Ad Hoc Group as a "committee". By virtue of Counsel's representation of the Ad Hoc Group and as special counsel to the Trustee to represent the interests of the holders of the Senior Notes, Counsel does not undertake to represent the interests of, and is not a fiduciary for, any other creditor, party in interest or other entity that has not signed a retention agreement with Counsel. In addition, the Ad Hoc Group does not represent or purport to represent any other entities in connection with the Debtors' chapter 11 cases. As of Sept. 14, 2021, members of the Ad Hoc Group of Senior Noteholders and their disclosable economic interests are: 140 Summer Partners LP 1450 Broadway, 28th Floor New York, NY 10018 * Senior Notes: $30,028,000.00 * Trade Payable Claim against Aerovias: $42,300,000.00 * Trade Payable Claim against Aerolitoral: $11,595,525.00 Amundi Pioneer Asset Management, Inc. 60 State Street Boston, Massachusetts 02109 * Senior Notes: $14,015,000.00 * Tranche 1: $14,091,666.67 * Tranche 2: $2,859,794.31 Amundi (UK) Limited 41 Lothbury London, EC2R 7HF United Kingdom * Senior Notes: $27,550,000.00 Blue Bay Asset Management 77 Grosvenor Street London, W1K 3JR United Kingdom * Senior Notes: $2,196,000.00 Corre Partners Management LLC 12 E. 49th St., 40th Floor New York, NY 10017 * Senior Notes: $20,440,000.00 * Trade Payable Claim against Aerovias: $25,000,000.00 Dirichlet Principal Partners 20 Eastbourne Terrace London, W2 6LG United Kingdom * Senior Notes: $7,000,000.00 DSC Meridian Capital LP 888 Seventh Avenue New York, New York 10106 * Senior Notes: $28,154,000.00 Glendon Capital Management L.P. 2425 Olympic Blvd., Suite 500E Santa Monica, CA 90404 * Senior Notes: $6,070,000.00 GML Capital Group 22 Percy Street London, W1T 2BU United Kingdom * Senior Notes: $30,945,000.00 Investment Placement Group Inc. 350 10th Ave. Suite 1150 San Diego, CA 92101 * Senior Notes: $11,160,000.00 Macquarie Investment Management 100 Independence 610 Market Street Philadelphia Pennsylvania 19106-2354 * Senior Notes: $7,500,000.00 * Tranche 1: $8,700,000.00 * Tranche 2: $7,002,270.72 Moneda Asset Management Av. Isidora Goyenechea 3621 8th Floor Las Condes, Santiago de Chile * Senior Notes: $1,000,000.00 * Tranche 1: $10,293,053.48 * Tranche 2: $38,186,343.00 Sandglass Capital Advisors LLC 1133 Broadway, Suite 1528 New York, New York 10010 * Senior Notes: $2,000,000.00 Seaport Global Securities LLC 360 Madison Avenue, 22nd Floor New York, NY 10017 * Senior Notes: $1,000,000.00 Stone Harbor Investment Partners 31 West 52nd Street 17th Floor New York, New York 10019 * Senior Notes: $4,921,000.00 Teachers Advisors, LLC 730 Third Avenue New York, New York 10017 * Senior Notes: $14,000,000.00 * Tranche 1: $4,075,000.00 * Tranche 2: $3,310,000.00 VR Global Partners, L.P. 300 Park Avenue 16th Floor New York, New York 10022 * Senior Notes: $95,021,000.00 * Tranche 1: $12,840,279.85 * Tranche 2: $49,658,285.35 Counsel to the Ad Hoc Group of Senior Noteholders and Special Counsel to the Trustee can be reached at: David H. Botter, Esq. Abid Qureshi, Esq. Jason P. Rubin, Esq. AKIN GUMP STRAUSS HAUER & FELD LLP One Bryant Park New York, NY 10036 Tel: (212) 872-1000 Fax: (212) 872-1002 Email: dbotter@akingump.com lbeckerman@akingump.com jrubin@akingump.com A copy of the Rule 2019 filing is available at https://bit.ly/3kjahHW at no extra charge. 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. The Debtors tapped Davis Polk and Wardell LLP as their bankruptcy counsel, KPMG Cardenas Dosal S.C. as auditor, and Rothschild & Co US Inc. and Rothschild & Co Mexico S.A. de C.V. as financial advisor and investment banker. White & Case LLP, Cervantes Sainz S.C. and De la Vega & Martinez Rojas, S.C. serve as the Debtors' special counsel. Epiq Corporate Restructuring, LLC is the claims and administrative agent. The U.S. Trustee for Region 2 appointed a committee to represent unsecured creditors on July 13, 2020. The committee is represented by Willkie Farr & Gallagher, LLP and Morrison & Foerster, LLP. GRUPO AEROMEXICO: Gibson Dunn Updates on Claimholders ----------------------------------------------------- Pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure, the law firm of Gibson, Dunn & Crutcher LLP submitted a first amended verified statement to disclose an updated list of Ad Hoc Group of Unsecured Claimholders in the Chapter 11 cases of Grupo Aeromexico, S.A.B. de C.V., et al. On or about July 2021, certain members of the Ad Hoc Group of Unsecured Claimholders retained attorneys presently with Gibson, Dunn & Crutcher LLP to represent them as counsel in connection with the pending chapter 11 cases. From time to time thereafter, certain additional holders of unsecured claims have joined the Ad Hoc Group of Unsecured Claimholders. On August 9, 2021, the Ad Hoc Group of Unsecured Claimholders filed the Verified Statement of the Ad Hoc Group of Unsecured Claimholders Pursuant to Bankruptcy Rule 2019. Since that time, the membership of the Ad Hoc Group of Unsecured Claimholders and the disclosable economic interests in relation to the Debtors held or managed by such members has changed. The Ad Hoc Group of Unsecured Claimholders submits this Amended Verified Statement accordingly. Gibson Dunn represents the members of the Ad Hoc Group of Unsecured Claimholders in their capacity as holders of general unsecured claims asserted against one or more of the Debtors. As of Sept. 17, 2021, members of the Ad Hoc Group of Unsecured Claimholders and their disclosable economic interests are: Unsecured Claims ---------------- Bank of America $32,492,534.00 National Association Gateway Village #900 900 West Trade St. NC1-026-05-41 Charlotte, NC 28202 Invictus Global Management $47,730,000.00 310 Comal Street Building A Suite 229 Austin, TX 78702 Nut Tree Capital Management $150,000,000.00 55 Hudson Yards 22nd Floor New York, NY 10001 P. Schoenfeld Asset Management $29,300,000.00 1350 6th Avenue 21st Floor New York, NY 10019 Counsel to the Ad Hoc Group of Unsecured Claimholders can be reached at: GIBSON, DUNN & CRUTCHER LLP Joshua K. Brody, Esq. Scott J. Greenberg, Esq. Matthew J. Williams, Esq. 200 Park Avenue New York, NY 10166 Telephone: (212) 351-4000 Facsimile: (212) 351-4035 E-mail: jbrody@gibsondunn.com sgreenberg@gibsondunn.com mjwilliams@gibsondunn.com A copy of the Rule 2019 filing is available at https://bit.ly/39ew7Gp at no extra charge. 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. The Debtors tapped Davis Polk and Wardell LLP as their bankruptcy counsel, KPMG Cardenas Dosal S.C. as auditor, and Rothschild & Co US Inc. and Rothschild & Co Mexico S.A. de C.V. as financial advisor and investment banker. White & Case LLP, Cervantes Sainz S.C. and De la Vega & Martinez Rojas, S.C., serve as the Debtors' special counsel. Epiq Corporate Restructuring, LLC is the claims and administrative agent. The U.S. Trustee for Region 2 appointed a committee to represent unsecured creditors on July 13, 2020. The committee is represented by Willkie Farr & Gallagher, LLP and Morrison & Foerster, LLP. GRUPO AEROMEXICO: Plan Filing Deadline Extended to Oct. 8 --------------------------------------------------------- Justin Villamil of Bloomberg News reports that U.S. Bankruptcy Judge Shelley Chapman granted Aeromexico's motion to extend the exclusive filing deadline of its Chapter 11 plan to Oct. 8, 2021. The court did not rule on a separate motion regarding the assumption of an aircraft lease. 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. The Debtors tapped Davis Polk and Wardell LLP as their bankruptcy counsel, KPMG Cardenas Dosal S.C. as auditor, and Rothschild & Co US Inc. and Rothschild & Co Mexico S.A. de C.V. as financial advisor and investment banker. White & Case LLP, Cervantes Sainz S.C. and De la Vega & Martinez Rojas, S.C., serve as the Debtors' special counsel. Epiq Corporate Restructuring, LLC is the claims and administrative agent. The U.S. Trustee for Region 2 appointed a committee to represent unsecured creditors on July 13, 2020. The committee is represented by Willkie Farr & Gallagher, LLP and Morrison & Foerster, LLP. ===================================== T R I N I D A D A N D T O B A G O ===================================== CL FINANCIAL: Judge Reverses CLICO Energy Sale From 2009 -------------------------------------------------------- Rickie Ramdass at Trinidad Express reports that former executive chairman of CL Financial and CLICO director Lawrence Duprey acted oppressively, unfairly and with prejudice to the companies when he facilitated a deal to sell shares in what was then called CLICO Energy to Proman Holdings (Barbados) Ltd in February 2009. CL Financial and CLICO together owned majority 51 per cent stake in CLICO Energy, which was sold to Proman Holdings on February 3, 2009 for US$46.5 million, according to Trinidad Express. Justice Davindra Rampersad said Duprey acted without due care and diligence and even failed in his fiduciary duties under the Companies Act as he failed to act honestly and in good faith with a view to the best interest of the companies, the judge found, the report notes. Justice Rampersad made his statements in a judgment delivered in a lawsuit brought by CL Financial Ltd and CLICO against Proman, Process Energy (Trinidad) Ltd (PETL) and Duprey, the report relays. In the case, CL Financial and CLICO argued that Duprey sold the 84,986,145 shares in CLICO Energy owned by CL Financial and CLICO, just three days after the CL Financial group was bailed out by the Government in January 2009, the report discloses. Proman renamed CLICO Energy to Process Energy (Trinidad) after it acquired the company in February 2009, the report notes. As part of his 87-page ruling, Justice Rampersad ordered Proman Holdings to return the 51 per cent stake held in Process Energy to CL Financial and CLICO, the report relays. Proman Holdings was also ordered to pay CLF the dividends it collected from the shares since 2009 plus interest, the report notes. On the other hand, CLF was ordered by the judge to reimburse Proman Holdings its purchase price plus in addition to interest, the report discloses. At the time the deal was struck, CLF controlled 34 per cent of the shares of Process Energy, CLICO 17 per cent. Proman owned the 49 per cent balance, the report relays. Given that Proman eventually bought out the shares held by both companies, this resulted in it controlling the entire company which held a sizable stake in Methanol Holdings Trinidad Ltd (MHTL) as well as stakes in other profitable energy companies, the report relays. The International Court of Arbitration back in 2014, had ordered CLICO to sell the remainder of its shares in MHTL to Proman's subsidiary Consolidated Energy Ltd (CEL) for US$1.175 billion, the report says. In its claim, attorneys for CL Financial and CLICO contended Duprey did not have the authority to sell CLICO's 17 per cent stake in Clico Energy, which they claimed was held by CL Financial in trust for CLICO, the report notes. In addition to that, the companies claimed the shares sold were valued at US$130 million, way in excess of the $46 million for which it had been purchased by Proman, the report discloses. In its defence however, attorneys for Proman argued that CLICO did not have its stake registered in an attempt to avoid paying stamp duty, the report relates. However, in his ruling, Justice Rampersad said the court was convinced the transfer could still be registered and all CLICO needed to do was pay the requisite stamp duty and or penalties, the report notes. The judge said he was of the view Proman was aware of a sub-committee for the disposal of assets of the CL Financial companies "and the renewed requirements for shareholder resolutions thereby curtailing Duprey's prior ostensible authority and also failed to make any inquiry whatsoever on the evidence before this court as to whether or not he was authorised to enter into this share purchase agreement in the very unusual circumstances that prevailed at the time," he added. Justice Rampersad said with the "business savvy persons" who were involved in the transaction, "the point of this sale at this time with such haste seemed to have been designed to ensure that Proman got it at the price that it wanted rather than at a fair market value ascertained in an arms-length transaction between two equal parties,"the report relays. "The fact that Duprey did not even utter a squeak in opposition is testament to the fact that he was working with Proman to do just that,"the judge stated, the report notes. Although he noted that Proman officials were wrong to go ahead with the purchase of the company from Duprey, Rampersad ruled that their conduct did not constitute fraud, 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. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2021. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *