/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/211209.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, December 9, 2021, Vol. 22, No. 240 Headlines B E R M U D A SAGICOR FINANCIAL: Fitch Assigns BB- Rating to Senior Notes C H I L E LATAM AIRLINES: Azul Backs Off From Bid, Citing Valuation Concerns C O L O M B I A FRONTERA ENERGY: Fitch Affirms 'B' LT IDRs, Outlook Stable D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Puerto Rico Interested in Trade Negotiations E C U A D O R ECUADOR: IDB OKs $400M Loan to Promote Economic Recovery H O N D U R A S HONDURAS: IDB OKs $400M Loan for Natural Disaster Fund J A M A I C A JAMAICA PUBLIC: OUR OKs Payment of Compensation to Customers P U E R T O R I C O ALARMAS COMPUTARIZADAS: Subchapter V Plan to Pay 100% of Claims HOTEL CUPIDO: Seeks Court Approval to Hire Notary Public S T . V I N C E N T A N D T H E G R E N A D I N E S ST. VINCENT & THE GRENADINES: To Get US$40MM in Recovery Support - - - - - ============= B E R M U D A ============= SAGICOR FINANCIAL: Fitch Assigns BB- Rating to Senior Notes ----------------------------------------------------------- Fitch Ratings has assigned a 'BB-' rating to the senior notes proposed to be issued by Sagicor Financial Company Limited (SFCL). SFCL's existing ratings are not affected by this rating action. KEY RATING DRIVERS Today's rating action follows the company's announcement that SFCL proposes to issue additional senior notes via a reopening of its senior note issue completed in May 2021. SFCL expects to use the proceeds for the additional issuance for general corporate purposes, including, but not limited to supporting growth in the company's U.S. business. The ratings assigned to the senior unsecured notes reflect standard notching based on Fitch's rating criteria. The senior unsecured notes are rated one notch below SFCL's IDR of 'BB'. RATING SENSITIVITIES Under its criteria, notching between actual and/or implied Insurer Financial Strength "anchor" ratings and the Issuer Default Rating (IDR) of a holding company compresses/expands by one notch when the anchor rating migrates between investment-grade and non-investment-grade. SFCL's implied anchor ratings would move between that cusp point if upgraded by one notch, implying the next potential upgrade in SFCL's holding company IDR and senior debt ratings would be by two notches. Factors that could, individually or collectively, lead to positive rating action/upgrade: -- No material deterioration in economic and operating environments and sovereigns of Jamaica, Trinidad and Barbados; -- Deployment of capital proceeds from the AQY transaction to grow operations in investment-grade jurisdictions; -- A decline in financial leverage ratio below 25% (adjusted to exclude non-controlling interests from capital). Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Significant deterioration in the economic and operating environments and sovereigns of Jamaica, Trinidad and Barbados, which would lead to a material decline in operating performance and/or credit profile of SFCL's investment portfolio; -- Deterioration in key financial metrics, including consolidated MCCSR falling below 180% and financial leverage exceeding 50% and ROE below 5% on a sustained basis. 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. 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. ========= C H I L E ========= LATAM AIRLINES: Azul Backs Off From Bid, Citing Valuation Concerns ------------------------------------------------------------------ Gabriel Araujo at Reuters reports that Azul SA confirmed making an offer this month to combine with Chile's LATAM Airlines Group (LTM.SN), which is in bankruptcy proceedings, but the Brazilian airline said it had since decided to focus on its own operations. The Brazilian airline said its non-binding proposal submitted on Nov. 11 had included around $5 billion in equity financing and was backed by some creditors of LATAM, according to Reuters. However, Azul added that LATAM's valuation in the bankruptcy proceedings had become higher than it found acceptable, citing ongoing uncertainty in the aviation industry amid the COVID-19 pandemic, especially in long-haul markets, the report notes. LATAM filed a reorganization plan in which it proposed an $8.19 billion infusion of capital into the group in a bid to exit its Chapter 11 bankruptcy, the report relays. The Chilean company previously said it had received several offers to fund the exit from Chapter 11 bankruptcy, each of which was worth more than $5 billion, the report says. Azul said in its filing that it believed its non-binding proposal would have provided significant increased network growth and generated synergies estimated at more than $4 billion, the report relates. It added that "the standalone plan presented by LATAM is, by definition, unable to generate synergies from a combination," the report discloses. Goldman Sachs analysts warned in a note to clients that any tie-up between the airlines would have held more 60% of Brazil's domestic air travel market, which could have attracted "extensive" scrutiny from antitrust regulator CADE, the report notes. Azul said it will continue to focus on the competitive advantages of its own network, while evaluating future partnerships and consolidation opportunities, the report notes. The rise in the group's shares followed a steep fall last week, when travel-related stocks were dragged down by the detection of a new coronavirus variant in South Africa, the report adds. 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. =============== C O L O M B I A =============== FRONTERA ENERGY: Fitch Affirms 'B' LT IDRs, Outlook Stable ---------------------------------------------------------- Fitch Ratings has affirmed Frontera Energy Corporation's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B'. Fitch also affirmed Frontera's senior unsecured notes at 'B/RR4'. The Rating Outlook is Stable. Frontera's ratings and Outlook reflect its a small production size, fixed production costs, and gross leverage, which is defined as total debt to EBITDA of 1.5x in 2021. The company has a 1P reserve life of 7.1 years applying 2020 year end reserve figures, and is estimated to have total debt to 1P of $5.21boe and a $20.63boe per PDP of reserve by YE 2021. KEY RATING DRIVERS Concentrated Production: Frontera's ratings are constrained by its production size, which is expected to average 40,000bbld over the rated horizon, approximately evenly split between light and heavy crude. The company has a concentrated production profile in which Quifa represents nearly 40% of daily production, followed by Guatiquia at almost 30% (10,850) and CPE-6 the remaining percent. The company operates all three blocks and owns 100% of both Guatiquia and CPE-6 ,and has a joint venture, working interest of 60%, with Ecopetrol for Quifa. Leverage Profile: Frontera's gross leverage, defined as total debt/EBITDA, is strong for its rating category. Fitch estimates gross leverage will be 1.5x in 2021, assuming an EBITDA of $380 million and total debt of $563 million. Total debt/proved developed producing (PDP) is expected to be $20.63/bbl by YE 2021, which is high for its rating category, and total debt/1P is expected to be $5.21 in 2021. EBITDA/ interest paid is estimated to be 9.5x in 2021 and average over 8.0x over the rated horizon. Fixed Cost Production Profile: Frontera has a fixed production profile that limits its financial flexibility. The company's half-cycle cost is estimated to be $29boe in 2021 in line with 2020 and 2019. The high production cost is mostly attributed to its fixed transportation cost, which is estimated to average $11.40bbl per annum over the rated horizons. The company is expected to hedge roughly 30% of total production to offset the higher costs and protect it from price volatility. Settlement Mitigates Financial Liabilities: Frontera Energy's settlement resolving its legal arbitration with Cenit Transporte y Logistica de Hidrocarburos S.A.S. (CENIT) and Oleoducto Bicentenario de Colombia S.A.S. is credit positive. Further, cash flow generation is expected to increase as this settlement also removes the uncertainty of unfavourable resolution and contingent liability, which could have resulted in material payments to compensate for the suspended contract. Fitch recognizes that Frontera's new contracted transportation volume is approximately 29,900bbl/d, of which 87% is contracted with Oleoducto de los Llanos Orientales S.A.(ODL) and OCENSA S.A. and 13% with CENIT/Bicentenario, nearly 70% of Fitch's expected daily production for the company. Free Cash Flow Negative: Frontera is expected to be free cash flow negative throughout the rating horizon, due to its high capex costs. Capex is estimated to average $20 boe per annum between 2021 through 2024. Capex costs are mostly attributed to developmental capex to replenish reserves and expand its PDP reserve life, which is the lowest amongst its Colombian peers at 1.8 years. This high capex spending limits the company's financial flexibility to scale back investments during volatile pricing environments, which occurred in 2020. Frontera's strong liquidity supports it investment plan. DERIVATION SUMMARY Frontera Energy's credit and business profile are comparable to other small independent oil producers in Colombia. The ratings of Geopark Limited (B+/Stable), SierraCol Energy Limited (B+/Stable), and Gran Tierra Energy International Holdings Ltd. (CCC+) are all constrained to the 'B' category or below, given the inherent operational risk associated with small scale and low diversification of oil and gas production. Frontera's production profile compares favorably with other 'B' rated Colombian oil exploration and production companies. Over the rated horizon, Fitch expects Frontera's production will average 40,000bbld in line with Geopark and higher than SierraCol at 36,000 bbld as well as Gran Tierra at 33,000bbld. Frontera's PDP reserve life is 1.6 years and 6.2 years for 1P in 2020 is below Geopark at 4.0 years for PDP and 7.4 years for 1P and SierraCol at 5.9 years for PDP and 6.3 years for 1P, while Gran Tierra is at 4.7 years for PDP and 9.5 years for 1P. Frontera's half-cycle production cost was $28.60/bbl in 2020 and full-cycle cost was $42.20/bbl higher than Geopark, who is the lowest cost producer in the region at $13.60/bbl and $23.40/bbl, SierraCol at $13.70 /bbl and $26.60/bbl, and Gran Tierra at $24.50/bbl and $42.60/bbl. Frontera's higher production cost is mainly attributed to a fixed transportation cost estimated to average $11.00/bbl. Frontera's strong capital structure is expected to have gross leverage that will average 1.7x over the rated horizon and pro forma total debt/PDP of $20.63/bbl and total debt/1P of $5.21/bbl. Geopark is forecast to have similar gross leverage of 1.7x but stronger debt/PDP of $10.76/bbl and 1P of $4.30/bbl and SierraCol's metrics are stronger at 1.5x, $8.38/bbl and $6.34/bbl, respectively. While Gran Tierra's metrics are at 1.9x, $15.90/bbl and $8.41/bbl, respectively. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: -- Fitch's price deck for Brent oil prices of $71 in 2021, $70.00 in 2022, $60.00 in 2023 and$53.00 in 2024; -- Vasconia discount of $5bbl over the rated horizon -- Average Production of 40,000boed between 2020-2023; -- Production costs averaging USD11/barrel; -- Transportation costs averaging USD11.40/barrel; -- SG&A cost averaging USD3.50/barrel; -- Average annual Capex of USD300 million between 2021-2024; -- No dividends payments over the rated horizon; -- Annual dividends received from ODL of $36 million per year through 2024; -- Stock repurchase of $15 million in 2021. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Net production maintained at 45,000boed or more, while maintaining a 1P reserve life of seven years or greater; -- Maintain a conservative financial profile with gross leverage of 2.5x or below and total debt/1P reserves of $8/bbl or below; Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Sustainable production size declines to below 30,000boed; -- 1P reserve life declines to below seven years on a sustained basis; -- A significant deterioration of credit metrics to total debt/EBITDA of 3.0x or more; -- A persistently weak oil and gas pricing environment that impairs the longer-term value of its reserve base; -- Sustained deterioration in liquidity and operating profile, particularly in conjunction with more aggressive dividend distributions than previously anticipated. 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 Strong Liquidity: Fitch views the company's liquidity position as strong, supported by cash on hand and a manageable debt amortization profile. As of Sept. 30, 2021, Frontera reported $318.8 million of unrestricted cash, $83.2 million letter of credit lines, and $100.7 million of separate restricted cash. This liquidity position is robust compared $163.1 million of short-term debt. ISSUER PROFILE Frontera Energy Corporation is an oil and gas company incorporated in Canada with operations in Latin America, primarily in Colombia with assets in Guyana. 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. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Puerto Rico Interested in Trade Negotiations ---------------------------------------------------------------- Dominican Today reports that trade between the Dominican Republic and Puerto Rico is timid, despite the proximity between the two islands, which is why the secretary of the Department of Economic Development and Commerce of Puerto Rico, Manuel Cidre Miranda, and a commission representing 20 companies, have shown interest in establishing trade negotiations between the two nations. Cidre Miranda raised the need to take advantage of the territorial proximity with the Dominican Republic to begin to test an export expansion that goes beyond the region, according to Dominican Today. The official, who heads the delegation of Puerto Rican businessmen that has been in the country for several days in search of establishing commercial ties in different areas, indicates that this can be done by taking advantage of the strength of each country and hiding the weaknesses of each one, the report notes. Puerto Ricans see a great opportunity to create a solid region with the ability to compete with the Asian world, which maintains its market without having to bring anything to this side of the world, 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). ============= E C U A D O R ============= ECUADOR: IDB OKs $400M Loan to Promote Economic Recovery -------------------------------------------------------- Ecuador will promote sustainable and inclusive economic recovery with a program structured as a $400 million policy-based guarantee (PBG) approved by the Inter-American Development Bank (IDB). The program will help strengthen the institutional and regulatory framework to improve the business environment, boost international trade, and enhance financial stability and access to financing. PBGs are financial instruments that facilitate the issuance of a guarantee backed by a sovereign counter guarantee once a country meets a series of agreed-upon policy conditions. This is the first of two consecutive operations under the programmatic policy-based loan (PPB) modality. The operations are independently financed but technically related to one another. The guarantee will cover future obligations undertaken by Ecuador under a sovereign bond or a loan of up to $400 million. The guarantee can potentially leverage private resources for at least the same amount as those provided by the IDB. It can also improve the overall profile of Ecuador's public debt by reducing borrowing costs and providing longer repayment periods compared to non-guaranteed debt issuance. The program will support macroeconomic stability and push forward a series of reforms to strengthen the business environment, trade regulation, and the institutional framework for economic recovery and competitiveness. The guarantee will also facilitate trade tariff reduction, streamlining of administrative procedures, increased public-private cooperation to promote investment, and private sector development with an environmental perspective. It will also promote reforms to strengthen governance to foster monetary and financial stability; enact prudential regulations for an orderly transition towards a stable, post-COVID-19 financial system; expand access to financing; and improve safeguards for financial consumers. The guarantee will support measures within the financial system that are focused on equality and promote the financial inclusion of women. This operation is in line with IDB's Vision 2025 - Reinvesting in the Americas: A Decade of Opportunities, a plan to promote economic recovery and inclusive growth in Latin America and the Caribbean in the areas of regional integration, productive sector recovery, gender and inclusion, and climate change. The IDB' policy-based guarantee has a maximum guarantee tenor of up to 20-years. =============== H O N D U R A S =============== HONDURAS: IDB OKs $400M Loan for Natural Disaster Fund ------------------------------------------------------ The Inter-American Development Bank (IDB) has approved a $400 million contingent loan to help buffer the impact of eventual natural disasters and severe or catastrophic public health emergencies on Honduras's public finances. The operation was approved under the Contingent Credit Facility for Natural Disaster and Public Health Emergencies (CCF), an innovative instrument intended to promote a greater degree of financial resilience for countries. The CCF also increases the Bank's climate change financing for Latin America and the Caribbean. Funds will only be disbursed to the country in case of an emergency event and will be used to finance extraordinary public expenditures. Honduras is exposed to multiple natural hazards such as earthquakes, floods, hurricanes, and droughts, whose frequency and intensity are expected to increase as the impact of climate change intensifies. The country is also vulnerable to pandemics, such as COVID-19, and epidemics, including dengue fever, chikungunya, and zika. The program aims to improve financial management of natural disaster and public health event risks by increasing stable, cost-efficient, and rapid-access contingent financing. These funds would pay for extraordinary public spending to meet the needs of populations affected by this type of emergencies. The operation is structured under two CCF modalities: The $300 million Modality I will provide parametric coverage in the event of earthquakes, hurricanes, and excess rainfall associated with cyclonic systems; and the $100 million Modality II will cover future epidemics and pandemics. This coverage will enhance the country's ability to deploy a rapid and effective response to emergencies, including humanitarian assistance, restoration of public services, and other rapid-response measures. The IDB and Honduras seek to improve the latter's integrated disaster risk management by fostering improvements to the five pillars of the Integrated Natural Disaster Risk Management Plan (INDRMP): Governability and development of the guiding framework; risk identification and awareness; disaster risk reduction; emergency preparedness; and financial risk management. Natural disasters have a disproportionate impact on vulnerable populations less prepared to deal with these events. In light of this scenario, the program seeks to incorporate a perspective that is mindful of gender equality and vulnerable groups, such as indigenous populations and people with disabilities, to disaster risk management. This would be implemented through activities included in the INDRMP as well as the gender action plan to tackle major gender gaps. The contingent loan's potential beneficiaries include the Honduran population at large, especially those affected by emergencies, who will receive urgent assistance under the proposed coverage. This operation is aligned with the crosscutting themes of climate change and gender inclusion of the IDB's Vision 2025 - Reinvesting in the Americas: A Decade of Opportunities, aimed at bringing economic recovery and inclusive growth to Latin America and the Caribbean. The IDB's $400 million lending consists of $140 million in concessional financing with a repayment term and grace period of 40 years and 0.25 interest; and a $120 million loan with a 25-year term, a 5.5-year grace period and interest rate based on LIBOR. ============= J A M A I C A ============= JAMAICA PUBLIC: OUR OKs Payment of Compensation to Customers ------------------------------------------------------------ RJR News reports that the Office of Utilities Regulation has approved the phased payment of more than $200 million in compensation to thousands of Jamaica Public Service Company (JPS) customers for Guaranteed Standards breaches. The breaches were committed in the period from March 2020 to September this year, according to RJR News. The payment of compensation follows Energy Minister Daryl Vaz's decision to deny JPS's request for a wholescale suspension of the Guaranteed Standards, the report notes. JPS had made the request on the basis that the continuing adverse impact of the COVID-19 pandemic presented force majeure conditions and warranted it being excused from compliance with the Guaranteed and Overall Standards under its Electricity License, the report notes. Force majeure is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance, such as an epidemic occurs, the report relays. A statement from the OUR said the Energy Minister communicated his final decision to the JPS in a letter dated October 7. As a result of the minister's decision, the JPS is mandated to pay $220.9 million to affected customers for breaches committed, the report discloses. The JPS, in a letter to the OUR seeking approval for a payment schedule, cited cash flow issues exacerbated by the pandemic, the report says. The OUR approved the payment schedule starting next month and continuing until April next year, the report relays. In addition, the JPS resumed monthly payment in November to affected customers for breaches committed in October, the report notes. All payments are applied as credits to bills, the report adds. ===================== P U E R T O R I C O ===================== ALARMAS COMPUTARIZADAS: Subchapter V Plan to Pay 100% of Claims --------------------------------------------------------------- Alarmas Computarizadas, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Plan of Reorganization under Subchapter V dated Dec. 02, 2021. Debtor is a corporation organized pursuant to the laws of the Commonwealth of Puerto Rico and chartered on January 19, 1993. Debtor's principal asset is a building with a parcel of land partially used in the business operation and partially rented out to a third party. The business is located at Urb Constancia 2656 Las Americas Avenue, Ponce, Puerto Rico. The Chapter 11 plan of reorganization under Sub Chapter V has been drafted to provide for the full payment of allowed secured claim filed by Banco Popular de Puerto Rico. Allowed priority, and unsecured claims will be paid in full within the 60-month period after the confirmation of the plan. To confirm the Plan, the Court must find that all creditors who do accept the Plan will receive a higher distribution than the amount they will receive in a Chapter 7 liquidation case. Under the terms of the plan allowed unsecured creditors will receive a 100% distribution. Debtor's plan provide for the payment of creditors with income generated from its business operations as follows: * One class of priority claims, two classes of secured claims, and one class of unsecured claims. * Secured creditors, priority creditors, and allowed unsecured creditors will receive distributions, which the proponent of the plan has valued at 100 cents on the dollar. * Allowed administrative claims, as authorized by the Bankruptcy Court, are not classified for purposes of voting under the Plan, but the plan provides for their treatment. The Plan will treat claims as follows: * Class 1 consists of Banco Popular de Puerto Rico (BPPR) allowed secured claim totaling $132,194.27. Banco Popular's secured claim will receive direct payments from Debtor. Monthly payments of $1,402.13 at an amortization of 7 years and an interest rate of 5% for a period of 83 months and a final balloon payment for the remaining balance ($48,184.55) at month 84. This Class has 100% estimated recovery. * Class 2 consists of the Internal Revenue Services and CRIM secured claims totaling $7,133.20. Internal Revenue Services' claim will be paid in full in 60 equal monthly installments of $89.81 including an interest rate of 3%. CRIM's secured claim will be paid in full in 60 equal monthly installments of $38.36 including an interest rate of 3%. * Class 3 consists of all non-priority unsecured claim allowed under 502 of the Code totaling $25,943.99. Allowed unsecured creditors will receive a dividend of 100%. Debtor will make 60 equal monthly installments of $465.50 including a 3% interest rate. * Class 4 consists of Equity interest of the Debtor. Debtor's shareholders will not receive any distributions under the plan but will retain their ownership over the corporation. Debtor has implemented measures to streamline its business operation and improve its marketing strategies. Debtor will use existing assets and the income generated from the operation of its business to fund the plan. A full-text copy of the Plan of Reorganization dated Dec. 2, 2021, is available at https://bit.ly/31o4bzA from PacerMonitor.com at no charge. The firm can be reached through: Roberto L. Mateo, Esq. P.O. Box 336877 Ponce, PR 00733 Telephone: (787) 840-1212 Email: mateolaw@msn.com About Alarmas Computarizadas Alarmas Computarizadas, Inc. sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 21-02431) on Aug. 16, 2021, listing as much as $500,000 in both assets and liabilities. Julio A. Rosa Figueroa, president, signed the petition. Roberto L. Mateo, Esq., serves as the Debtor's legal counsel. HOTEL CUPIDO: Seeks Court Approval to Hire Notary Public -------------------------------------------------------- Hotel Cupido, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Ricardo Miguel Gonzalez Cruz, Esq., an attorney practicing in San Juan, Puerto Rico. The Debtors need the assistance of a notary public to complete the sale of their properties contemplated under their Chapter 11 plan of liquidation. Mr. Cruz has agreed to provide the notarial services at the rate of 0.5 percent in any property sale and expenses. Mr. Cruz disclosed in a court filing that he is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The attorney can be reached at: Ricardo Miguel Gonzalez Cruz, Esq. Village at the Point 2318 Cacique St. San Juan, PR 00913 Telephone: (502) 536-6312 Email: gonzalezcruzlex@gmail.com About Hotel Cupido Hotel Cupido, Inc., a privately held company that owns and operates hotels and motels, filed its voluntary petition for Chapter 11 protection (Bankr. D.P.R. Case No. 19-03799) on June 30, 2019, disclosing $488,176 in assets and $3,213,031 in liabilities. Wilmer Tacoronte Negron, administrator, signed the petition. Judge Edward A. Godoy oversees the case. Bufete Quinones Vargas & Asoc. serves as the Debtor's bankruptcy counsel. =========================================================== S T . V I N C E N T A N D T H E G R E N A D I N E S =========================================================== ST. VINCENT & THE GRENADINES: To Get US$40MM in Recovery Support ---------------------------------------------------------------- RJR News reports that St. Vincent and the Grenadines is to receive US$40 million in recovery support for volcano eruption. The World Bank Board of Executive Directors approved US$40 million for the Volcanic Eruption Emergency Project in St. Vincent and the Grenadines, according to RJR News. The project is also financed by a US$2 million grant from the European Union's Caribbean Regional Resilience Building Facility, managed by the World Bank's Global Facility for Disaster Reduction and Recovery, the report notes. In April 2021, the La Soufriere volcano experienced explosive eruptions that damaged critical services, infrastructure, and agriculture, affecting the population of St. Vincent and the Grenadines, the report relays. The natural disaster compounded the effects of COVID-19, creating financing needs estimated at US$175 million, 23 per cent of the country's gross domestic product in 2021, the report adds. ********* 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 * * *