/raid1/www/Hosts/bankrupt/TCRLA_Public/211129.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, November 29, 2021, Vol. 22, No. 232
Headlines
B R A Z I L
BRAZIL: Export of Goods Drop in 3rdQ
C H I L E
LATAM AIRLINES: Nears Chapter 11 Exit
J A M A I C A
JAMAICA: Telecoms Given Until April 1 to Allow Users to Set Limits
M E X I C O
GRUPO AEROMEXICO: Will Raise $1.3 Billion to Exit Chapter 11
P A N A M A
PANAMA: IDB OKs $150M Loan to Promote Gender Equality
T R I N I D A D A N D T O B A G O
TRINIDAD & TOBAGO: No Property Tax Till After 2025 General Election
X X X X X X X X
[*] BOND PRICING: For the Week Nov. 22 to Nov. 26, 2021
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B R A Z I L
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BRAZIL: Export of Goods Drop in 3rdQ
------------------------------------
Rio Times Online reports that Brazil had the second-largest drop in
exports of goods among the G20 countries in the third quarter
compared to the previous quarter, according to a survey by the
Organization for Economic Cooperation and Development (OECD).
The exports of goods from the world's largest economies grew 0.9%,
and imports, 0.4%, in the third quarter, measured in US dollars,
according to Rio Times Online. In the case of Brazil, exports
suffered a 7.1% contraction but came from a record high of 29.8% in
the previous quarter, the report notes.
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 H I L E
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LATAM AIRLINES: Nears Chapter 11 Exit
-------------------------------------
Joshua Fineman of Seeking Alpha reports that Latam Airlines Group
(OTCPK:LTMAQ) is said to be close to a Chapter 11 exit backed by
some unsecured creditors as it tried to fend off overtures from
rival Brazilian carrier Azul SA. (NYSE:AZUL). LTMAQ is down 15%
after dropping earlier in the day.
The Chilean airline is close to a restructuring deal with large
unsecured creditors and some shareholders that would help it exit
bankruptcy, according to a WSJ report, citing people familiar.
A Latam representative told the paper that it's trying to file its
reorganization plan by Friday, November 19, 2021.
Azul founder and Chairman David Neeleman told Chilean newspaper
Diario Financiero that he would likely make an offer, though it
would have to be after Nov. 23, when the regulatory limit for
reaching a restructuring agreement ends, Reuters reported earlier
this November 2021.
Deutsche Bank earlier this month cut Latam Airlines (OTCPK:LTMAQ)
to sell from hold and reduced its price target to $0 from $2,
writing that "we count on one hand the number of airline
bankruptcies (out of more than 100) in which equity holders
received some consideration under the plan or reorganization."
About LATAM Airlines Group
LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise. It is the largest passenger airline in South
America.
Before the onset of the COVID-19 pandemic, LATAM offered passenger
transport services to 145 different destinations in 26 countries,
including domestic flights in Argentina, Brazil, Chile, Colombia,
Ecuador and Peru, and international services within Latin America
as well as to Europe, the United States, the Caribbean, Oceania,
Asia and Africa.
LATAM and its 28 affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in
Chile, Peru, Colombia, Ecuador and the United States are part of
the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel, FTI Consulting as restructuring advisor, Lee
Brock Camargo Advogados as local Brazilian litigation counsel, and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. The Boston Consulting Group, Inc. and The Boston
Consulting Group UK LLP serve as the Debtors' strategic advisors.
Prime Clerk LLC is the claims agent.
The official committee of unsecured creditors formed in the case
tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters
Jureller Southard & Stevens, LLP as conflicts counsel, UBS
Securities LLC as investment banker, and Conway MacKenzie, LLC as
financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is
the committee's Brazilian counsel.
The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as
counsel.
Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew
Glenn and partner Shai Schmidt, has been retained as counsel to the
Ad Hoc Committee of Shareholders.
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J A M A I C A
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JAMAICA: Telecoms Given Until April 1 to Allow Users to Set Limits
------------------------------------------------------------------
RJR News reports that the Office of Utilities Regulation (OUR) has
extended the deadline for telecommunications providers to offer
post-paid mobile customers the option to set spending limits when
roaming.
This decision, initially set to take effect on December 18, has
been extended to April 1 next year, according to RJR News.
It constitutes the final phase of the OUR's decisions, which are
contained in its Determination Notice, 'Improving Information
Transparency in Telecommunication Markets', published on June 18,
2020, the report notes.
The new deadline was set after an assessment of the readiness of
the telecoms providers and third parties, the report discloses.
The proposed mechanism includes alerts which will inform mobile
phone customers of usage levels prior to and on reaching maximum
limits, the report relays.
Post-paid customers will be able to set financial caps or spending
limits that will allow them to better manage the expenses
associated with the use of the service, the report adds.
As reported in the Troubled Company Reporter-Latin America on Nov.
25, 2021, Moody's Investors Service has affirmed the Government of
Jamaica's long-term issuer and senior unsecured ratings at B2. The
senior unsecured shelf rating has also been affirmed at (P)B2. The
outlook on the ratings remains stable.
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M E X I C O
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GRUPO AEROMEXICO: Will Raise $1.3 Billion to Exit Chapter 11
------------------------------------------------------------
Grupo Aeromexico is set to raise $1.3 billion to exit Chapter 11
bankruptcy.
According to a Nov. 19 filing, after tireless good-faith
negotiations, the Debtors, Apollo, Delta, the Ad Hoc Group of
Senior Noteholders, the Ad Hoc Noteholder/BSPO Bidders, the Ad Hoc
Group of Unsecured Claimholders, and the Mexican Investors have
agreed to the terms of a revised equity commitment letter. The
Debtors and certain of the Exit Financing Parties have also agreed
to the terms of a revised debt commitment letter.
A total of US$1.3 billion is to be raised by various financing
parties to enable Grupo Aeromexico to exit US Chapter 11
bankruptcy
protection.
The Commitment parties -- excluding strategic partner Delta Air
Lines and Mexican investors -- will purchase or finance $600
million in new capital (representing 26.9% of all new shares
issued), as well as $762.5 million in senior secured first-lien
notes. Certain of the committed parties (other than Delta and the
Mexican investors) and/or other third-party investors may also
provide other exit debt financing through syndication to be
arranged by JP Morgan Chase Bank. In addition, Delta will
subscribe and pay for $100 million of New Shares.
This follows an agreement on the terms of a revised equity
commitment letter and a revised debt commitment letter reached
between the so-called "exit financing parties" consisting of Grupo
Aeromexico, its lead US lender Apollo Global Management Inc, Delta
Air Lines, groups of senior shareholders, unsecured creditors, and
Mexican investors.
According to Aviation.com, highlights of the revised equity
commitment letter include:
* Delta will subscribe and pay for $100 million of new shares.
It will also be required to convert all fully accrued amounts of
its Tranche 2 loans into new shares at plan equity value. In
exchange, Delta shall receive 20% of all new shares issued under
the Chapter 11 exit plan, representing 20% of the capital stock of
the reorganised Grupo Aeromexico. In addition, any or all portions
of Delta's claims against the debtors shall be allowed and
satisfied in accordance with the Chapter 11 plan and any
distributions of new shares on such claims will be added to Delta's
ownership interest.
* Apollo Management Holdings will receive $150 million in cash,
accrued interest at the applicable interest rate under the
Debtor-in-Possession (DIP) credit agreement on the outstanding
obligations under the Tranche 2 DIP loans commencing on December
31, 2021; and 22.38% of all new shares. Mexican Pension Fund
Tranche 2 DIP loans will be converted into 3.54% of all new shares
issued under the Chapter 11 exit plan.
* A cash pool of $450 million (consisting of $350 million from
the debtors' balance sheet and USD100 million of excess cash) shall
be distributed to unsecured creditors.
According to Aviation.com, highlights of the revised debt
commitment letter include:
* Senior secured first lien notes of USD762.5 million are to be
issued collectively.
* Of this, $575 million will be used to repay Tranche 1 of the
DIP facility; for working capital and general corporate purposes;
payments to holders of first-lien notes and administrative fees;
and to fund cash distributions to unsecured
creditors.
In the motion, Grupo Aeromexico said the revised exit financing
proposals provided for sufficient exit financing for a successful
emergence from Chapter 11 and also resolved several other complex
matters with broad stakeholder support which would allow the
debtors to continue towards a more consensual and expeditious
confirmation of the restructuring plan. "Put simply, this is the
only viable path forward for the debtors," it said.
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.
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P A N A M A
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PANAMA: IDB OKs $150M Loan to Promote Gender Equality
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Inter-American Development Bank says the approval is the second in
a series of two operations under the Programmatic Policy Reform
Support Loan. This series seeks to reduce gender inequality in
Panama, implement policies that promote the physical, economic, and
decision-making autonomy of women, and strengthen the country's
gender institutions.
This second operation aims to strengthen the regulatory and
institutional framework and the management capacity of gender
policies within the COVID-19 response and recovery process. The
program has four specific objectives: improve the quality of
service offered to women victims of gender-based violence (GBV),
strengthen access, quality, and cultural relevance of sexual and
reproductive health services; promote equal opportunities in access
and working conditions for women, and contribute to strengthening
women's leadership.
Panama has promoted, for almost three decades, policies in favor of
gender equality. The COVID-19 crisis threatens to deepen existing
gaps and puts progress made at risk. As in other Latin American and
Caribbean countries, women have carried the heaviest burden and the
highest risk of contagion as frontline workers in Panama.
Additionally, the measures taken during the health crisis have
created barriers to accessing sexual and reproductive health
services, affecting more indigenous women in hard-to-reach areas.
Likewise, it has affected the physical safety of women, unleashing
an increase in femicides, increasing the risks of GBV and domestic
violence, and limiting victims' access to essential services. In
terms of employment, women have disproportionately lost jobs and
income, with an unemployment rate almost double that of men.
The loan will benefit women victims of GBV in Panama. Likewise, the
operation will benefit women's health, especially young people,
adolescent mothers, and women residing in indigenous regions. In
addition, the loan will contribute to the insertion and
professional development of women, especially young women and those
affected by situations of socioeconomic vulnerability, and in the
expansion of opportunities for social inclusion and economic
development for those most affected by multidimensional poverty and
ethnic and gender inequalities.
Gender equality directly impacts the well-being of women, their
families, and the recovery of countries. In turn, it has a direct
impact on poverty reduction, economic growth, and sustainable
development. Actions that benefit women and vulnerable populations
are a priority for the IDB Group's Vision 2025, a roadmap to
support countries to achieve an inclusive and sustainable recovery,
and the recently approved IDB Group Country Strategy with Panama
for the period 2021-2024.
The loan has a 12-month disbursement period, a 2-year grace period,
and an interest rate based on LIBOR.
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T R I N I D A D A N D T O B A G O
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TRINIDAD & TOBAGO: No Property Tax Till After 2025 General Election
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Yvonne Baboola at Trinidad Express reports that property tax, "the
tax people love to hate", may not happen until after the 2025
general election, says former People's National Movement (PNM)
finance minister Karen Nunez-Tesheira.
"It will not happen until after 2025. It is not a politically good
idea. It's not a good idea for anybody politically. Nobody wants
to see tax in an election year", she said during a webinar on
property tax hosted by the Chaguanas Chamber of Commerce, according
to Trinidad Express.
Nunez-Tesheira, who had brought the property tax bill to Parliament
in 2009 during the Patrick Manning administration, said she was
called "Taxsheira," the report notes.
Speculating on the date of the implementation of the property tax,
she was responding to Dr Sunil Lalloo, University of the West
Indies lecturer and part-time valuation consultant, the other
speaker at the webinar, the report relays.
Lalloo said based on the difficult and complex logistics involved
in implementing the property tax, he does not foresee it happening
any time before March 2022, the report notes.
He said the tax everyone loves to hate will be a nightmare for the
Government to put forward politically and administratively, the
report discloses.
"If they really push and use contracted workers instead of the
civil service, it may happen the following year (2023). Otherwise,
we're looking at 2024. If I had to say when I think it would
happen, I would say 2024 or 2025, but it's not happening next
year," he added.
According to Finance Minister Colm Imbert, not enough people have
filed property tax valuation forms with the Valuation Division for
the Government to begin its implementation, the report relays.
Imbert said in Parliament the law requires the Government to get
200,000 homeowners to file forms before it can legally start the
implementation process, the report discloses.
But only 165,000 forms were filed, the report relays.
November 30 is the deadline for submission of forms, and Imbert
said any extension may have to take place on or before that, if at
all, the report notes.
Tesheira said under the Manning regime, they were ready to start
the implementation, and had prepared 250,000 bills to send out, the
report discloses.
But then Manning called a snap election in 2009 and that was the
end of that, the report says.
Tesheira said she was against putting revenue earned from property
tax into a Government-controlled consolidated fund, the report
relates.
"Don't hold your breath on what they're going to do with it. I am
against putting it into a consolidated fund. You have the Green
Fund; you can create a fund," she added, notes the report.
Tesheira was in agreement with Lalloo who said monies from property
tax are supposed to be used for the funding of local government
services like the provision of smoother roads, water on a timely
basis and garbage collection, the report notes.
"Why isn't property tax in line with Local Government reform?
Saying and doing are two different things. You can rely on a
political promise as much as any other promise, which is not at
all," he said, the report relays.
Lalloo said when property taxes are placed in a consolidated fund,
they can be used by the Government to pay salaries and wages, the
report discloses.
And if you think taking your brick-and-mortar business online will
help you escape the property tax, you may have to think again, the
report notes.
According to Tesheira, online businesses are not taxed, but those
that operate from some kind of home or office can be, the report
relays.
She said when they were drafting the property tax bill, the
pandemic was not around and the ongoing profusion of online
businesses post-Covid-19 was not under consideration at that time,
the report says.
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X X X X X X X X
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[*] BOND PRICING: For the Week Nov. 22 to Nov. 26, 2021
-------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
YPF SA 16.5 67.3 5/9/2022 AR ARS
Cia Energetica de Pern 6.2 1.1 1/15/2022 BR BRL
Polarcus Ltd 5.6 71.8 7/1/2022 AE USD
Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY
Noble Holding Internat 6.1 62.0 3/1/2041 KY USD
Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL
Enel Americas SA 5.8 32.7 6/15/2022 CL CLP
Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD
KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Fospar S/A 6.5 1.2 5/15/2026 BR BRL
Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD
Noble Holding Internat 5.3 60.5 3/15/2042 KY USD
Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
Corp Universidad de Co 5.9 64.2 11/10/2021 CL CLP
Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD
Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD
Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD
Noble Holding Internat 6.2 62.2 8/1/2040 KY USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Sylph Ltd 2.4 65.1 9/25/2036 KY USD
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Esval SA 3.5 49.9 2/15/2026 CL CLP
Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP
Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD
Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD
City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD
Empresa Electrica de l 2.5 63.8 5/15/2021 CL CLP
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD
Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Provincia del Chubut A 4.5 2208 3/30/2021 AR USD
Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR
*********
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.
.
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