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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, November 5, 2021, Vol. 22, No. 216
Headlines
B E L I Z E
BELIZE: Plans to Clear Much of its Debt by Restructuring USD Bonds
B E R M U D A
APEX GROUP: Completes Acquisition of Fund Administrator Mainstream
BERMUDA: Sees Lowest Employment Rate in More Than 35 Years
B R A Z I L
BRAZIL: Federal September Tax Collection Increases 12.87%
BRAZIL: Price Index Up 1.20%, is Highest for October Since 1995
C O L O M B I A
AVIANCA HOLDINGS: Wins U.S. Court Approval of Bankruptcy Plan
ECOPETROL SA: Appoints New VP of Strategy and New Businesses
M E X I C O
GRUPO KALTEX: Commences Cash Tender Offer of 2022 Notes
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B E L I Z E
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BELIZE: Plans to Clear Much of its Debt by Restructuring USD Bonds
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RJR News reports that the Belize government says it will be able to
wipe away a significant amount that the country owes from
principal, capitalised interest and past due interest by retiring
all of its US dollar bonds due in 2034.
Belize is looking to restructure a US$572 million superbond that
emerged from a 2006-2007 restructuring and now contributes to a 133
per cent debt to gross domestic product ratio that the
International Monetary Fund deems unsustainable, according to RJR
News.
Prime Minister John Briceno tabled a resolution authorizing the
purchase and redemption of the country's US dollar bonds, the
report notes.
As reported in the Troubled Company Reporter-Latin America in May
2021, S&P Global Ratings lowered its long- and short-term foreign
currency sovereign credit ratings on Belize to 'SD/SD' (selective
default) from 'CC/C'. S&P also lowered its rating on the foreign
currency bond due in 2034 to 'D' from 'CC'.
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B E R M U D A
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APEX GROUP: Completes Acquisition of Fund Administrator Mainstream
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Wesley Bray at globalcustodian.com reports that global financial
services provider Apex Group has completed the acquisition of
Mainstream Group Holdings, following approvals from shareholders,
the Federal Court of Australia and regulators.
Apex had been embroiled in a bidding war for the Australian fund
administrator with arch-M&A-rival SS&C Technologies, which ended in
July, according to globalcustodian.com.
After weeks of counter offers, the race ended as SS&C pulled out of
talks, leaving Apex with the superior bid, the report notes.
Now that the transaction is complete, Mainstream will operate under
the Apex brand, increasing the global presence of the Group with
the addition of over 360 employees located in Australia, the Cayman
Islands, Hong Kong, Ireland, Isle of Man, Malta, Singapore and the
United States, the report relays.
Apex now officially operates from 50 offices worldwide, with 5,000
employees servicing $1.5 trillion in assets across administration,
depositary, custody and under management, the report discloses.
As Mainstream becomes part of Apex, it will continue to provide
fund administration and related services to over 1,400 funds and
more than 189,000 investors with funds under administration over
AUD $295 billion, the report says.
"We are pleased to welcome Mainstream to the Apex Group, which we
believe provides the best platform for the company's continued
success and international expansion," said Peter Hughes, founder
and CEO of Apex Group, the report discloses.
"This acquisition forms part of our strategy to continually enhance
our single-source model, and significantly expands and deepens our
service and product offering for clients across all geographies and
aspects of their business," the report notes.
The completion of the Mainstream acquisition follows a green light
received by Apex Group from private equity administration
specialist Sanne, to move forward with its $2 billion deal, the
report relays.
With the addition of Mainstream and Sanne, Apex will service $2.2
trillion in assets across administration, custody, depositary and
under management, the report relays. This means the
fast-growing administrator will have doubled its AUA in the space
of a year, the report says.
Regulatory approval for the Sanne deal is expected in early 2022.
"We are excited to become part of the Apex Group and are
enthusiastic about the opportunities it will provide Mainstream
clients who can now access a wider suite of solutions through
Apex's global network," said Martin Smith, CEO of Mainstream, the
report notes.
"We share similar cultures and values and are confident of our
future as part of the Group. I look forward to seeing the benefits
that Apex's successful integration will bring for our clients and
employees in the years to come," the report adds.
As reported in the Troubled Company Reporter-Latin America on Nov.
2, 2021, S&P Global Ratings affirmed its 'B-' long-term issuer
credit ratings on Bermuda-based Apex Group Ltd. and its financing
subsidiaries, Apex Group Treasury Ltd. and Apex Group Treasury LLC.
At the same time, S&P has affirmed its 'B-' issue rating and '3'
recovery rating on the group's revolving credit facility (RCF) and
first-lien term loans, which include the new upsized term loans.
BERMUDA: Sees Lowest Employment Rate in More Than 35 Years
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Bermuda's employment rate dropped to its lowest level in more than
35 years last year as the COVID-19 pandemic wrecked an already
struggling economy.
Government ministers told a news conference total jobs filled
declined by 1,951 or 5.7 per cent from 34,378 in 2019 to 32,427 in
2020.
The job losses occurred when the Bermuda government was forced to
close the international airport from March 20 until July 1.
The worst-hit areas were the hotel and food services sectors.
The government said there were signs that the job loss trend had
not continued into this year.
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B R A Z I L
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BRAZIL: Federal September Tax Collection Increases 12.87%
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Rio Times Online reports that Brazil's federal government's tax
collection had a real increase of 12.87% in September over the same
month last year, reaching R$149.102 (US$26) billion, the highest
amount ever recorded for the month since records began in 1995,
said the Federal Revenue Service.
According to a Reuters poll of analysts, the result was slightly
above the expected collection of R$147.85 billion, the report
relays.
From January to September, the collection grew 22.30%, adding up to
R$1.349 trillion - also a record for the period, according to Rio
Times Online.
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).
BRAZIL: Price Index Up 1.20%, is Highest for October Since 1995
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Richard Mann at Rio Times Online reports that the the Broad
National Consumer Price Index -15 (IPCA-15) accelerated to 1.20% in
October, after hitting 1.14% in September, the Brazilian Institute
of Geography and Statistics (IBGE) reported.
In October 2020, the IPCA-15 had a variation of 0.94%. The 1.20%
rise is the highest for October since 1995 (1.34%), according to
Rio Times Online. It is also the highest monthly rate since
February 2016 (1.42%), the report notes.
The result was above the 28 projections of analysts from consulting
firms and financial institutions consulted by Valor Data, which
estimated an advance of 0.98% in October, the report adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Jair Bolsonaro is the current president, having
been sworn in on Jan. 1, 2019.
Fitch Ratings' credit rating for Brazil stands at 'BB-' with a
negative outlook (November 2020). Fitch's 'BB-' Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) has been affirmed
in May 2021. Standard & Poor's credit rating for Brazil stands at
BB- with stable outlook (April 2020). S&P's 'BB-/B' long-and
short-term foreign and local currency sovereign credit ratings for
Brazil were affirmed in December 2020. Moody's credit rating for
Brazil was last set at Ba2 with stable outlook (April 2018). DBRS's
credit rating for Brazil is BB (low) with stable outlook (March
2018).
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C O L O M B I A
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AVIANCA HOLDINGS: Wins U.S. Court Approval of Bankruptcy Plan
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Reuters reports that the Southern District of New York has approved
Colombian airliner Avianca's (AVT_p.CN) reorganization plan,
Avianca said on Tuesday, November 2, 2021, which will allow the
company to complete its Chapter 11 bankruptcy process before the
end of the year.
Avianca, along with rival Chile's LATAM Airlines, were the two
largest carriers in the region before the coronavirus pandemic, but
both were sent into bankruptcy restructuring when the virus upended
air travel, amid especially strict restrictions in Latin America.
Avianca had already posted several years of losses before the
pandemic began, and went through a boardroom coup in 2019 led by
United Airlines.
"Avianca announces that today, after presenting certain additional
documentation that had been required by the court, the tribunal of
the Southern District of New York confirmed the company's
reorganization plan," the company said in a statement from Bogota.
"The airline expects to successfully complete that process and
emerge from Chapter 11 before the end of the year as a financially
stronger and more efficient airline."
Avianca will have significantly less debt and more than $1 billion
in liquidity when it finishes the bankruptcy process, the statement
said.
The company plans to have 130 airplanes servicing 200 routes by
2025, it added.
During the bankruptcy process, Avianca received around $2 billion
in new financing.
About Avianca Holdings SA
Avianca -- https://aviancaholdings.com/ -- is the commercial brand
for the collection of passenger airlines and cargo airlines under
the umbrella company Avianca Holdings S.A. Bogota, Colombia-based
Avianca has been flying uninterrupted for 100 years. With a fleet
of 158 aircraft, Avianca serves 76 destinations in 27 countries
within the Americas and Europe.
Avianca Holdings S.A. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No.
20-11133) on May 10, 2020. At the time of the filing, the Debtors
disclosed $7,273,900,000 in assets and $7,268,700,000 in
liabilities.
Judge Martin Glenn oversees the cases.
The Debtors tapped Milbank LLP as general bankruptcy counsel;
Urdaneta, Velez, Pearl & Abdallah Abogados and Gomez-Pinzon
Abogados S.A.S. as restructuring counsel; Smith Gambrell and
Russell, LLP as aviation counsel; Seabury Securities LLC as
financial restructuring advisor and investment banker; FTI
Consulting, Inc. as financial restructuring advisor; and Kurtzman
Carson Consultants LLC as claims and noticing agent.
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors in Debtors' bankruptcy cases on May 22, 2020. The
committee is represented by Willkie Farr & Gallagher, LLP.
ECOPETROL SA: Appoints New VP of Strategy and New Businesses
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Ecopetrol S.A. (BVC: ECOPETROL;NYSE: EC) (the "Ecopetrol" or the
"Company") hereby reports that starting November 1, 2021, Nicolas
Azcuenaga Ramirez has been appointed as the new Corporate Vice
President of Strategy and New Businesses, taking over for Juan
Manuel Rojas. Nicolas Azcuenaga is a business administrator from
Colegio de Estudios Superiores de Administracion (CESA), has a
diploma from Manchester University & International Compliance
Association and has more than 20 years of work experience, 16 of
them in the Oil & Gas industry.
The new Vice President has held leadership positions for financial
and commercial management in different countries, such as Colombia,
the United Kingdom and Brazil. In Ecopetrol, he has served as CFO
for the Upstream Subsidiaries in the Corporate Vice Presidency of
Finance, where he has been responsible for the financial oversight
of various transactions, such as the acquisition by Hocol of the
assets of the Chuchupa Ballena assets, the acquisition of a
strategic position in the Permian and the Gato do Mato asset in
Brazil, among others. Since May 2021, he has been leading the team
in charge of Ecopetrol's acquisition of the stake owned by the
Republic of Colombia through the Ministry of Finance and Public
Credit in Interconexión Eléctrica S.A. (ISA).
The Company hereby thanks Juan Manuel Rojas for his work and the
achievements made for the Ecopetrol Group.
As reported in the Troubled Company Reporter-Latin America on
Oct. 29, 2021, S&P Global Ratings assigned its 'BB+' issue-level
rating to Ecopetrol S.A.'s (BB+/Stable/--) proposed senior
unsecured notes, to be issued in two tranches due 2031 and 2051,
totaling about $2 billion. The notes will rank pari passu with all
Ecopetrol's other present and future senior, unsecured, and
unsubordinated obligations.
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M E X I C O
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GRUPO KALTEX: Commences Cash Tender Offer of 2022 Notes
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Grupo Kaltex, S.A. de C.V. ("Grupo Kaltex" or the "Company")
announced that it has commenced a cash tender offer (the "Tender
Offer") for any and all of the outstanding U.S.$220,000,000
aggregate principal amount of its 8.875% Senior Notes due 2022 (the
"Notes").
In conjunction with the Tender Offer, Grupo Kaltex is also
soliciting consents (the "Consent Solicitation") from the holders
of the Notes for the adoption of proposed amendments (the "Proposed
Amendments") to the indenture governing the Notes (the "Indenture")
as described below.
The Tender Offer and the Consent Solicitation are being made
pursuant to an Offer to Purchase and Consent Solicitation
Statement, dated November 1, 2021 (as amended or supplemented from
time to time, the "Offer to Purchase").
A full text copy of the company's press release is available free
at: https://prn.to/31jcxrB
As reported in the Troubled Company Reporter-Latin America on
Nov. 3, 2021, Fitch Ratings has assigned a 'CCC'/'RR4' rating for
Grupo Kaltex, S.A. de C.V.'s (Kaltex; Issuer Default Rating [IDR]
CCC/Positive) proposed USD220 million senior secured notes.
Proceeds will be used to refinance the outstanding amount of the
USD220 million senior secured notes due April 2022. The 'RR4'
Recovery Rating indicates characteristics consistent with
securities historically recovering 31%-50% of principal and related
interest.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
Copyright 2021. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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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.
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