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                 L A T I N   A M E R I C A

          Wednesday, February 9, 2022, Vol. 23, No. 23

                           Headlines



A R G E N T I N A

ARGENTINA: Seeks Russia's Support for More IMF Funds


B O L I V I A

BOLIVIA: Banks Must Allocate 6% of Profits to Social Function


B R A Z I L

BRAZIL: Cruise Suspension Extended Until Feb. 18
GOL LINHAS: Sees 26% Increase Flights in January


P A N A M A

BANCO LA HIPOTECARIA: Fitch Affirms 'BB+' LT IDR, Outlook Stable


P E R U

PERU: Inflation Slows More Than Forecast From 13-Year High


P U E R T O   R I C O

PUERTO RICO: Oversight Board Director Jaresko Steps Down
REDONDO CONSTRUCTION: Court OKs Lord's $1.3M Interest Computation

                           - - - - -


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A R G E N T I N A
=================

ARGENTINA: Seeks Russia's Support for More IMF Funds
----------------------------------------------------
Buenos Aires Times reports that Economy Minister Martin Guzman has
met up with Russian businessmen and investors, negotiating their
support for an increase in the International Monetary Fund's
allocation of funds to Argentina.

The Argentine government wants the IMF to include their country in
the distribution of the Resilience and Sustainability Trust fund, a
mechanism whereby developed countries cede some of their special
drawing rights in favor of poor and middle-income nations,
including Argentina, according to Buenos Aires Times.  If the IMF
accepts that claim, Argentina could thus receive additional funds
to boost Central Bank reserves, the report notes.

To clinch that support, Guzman met with his Russian counterpart,
Anton Siluanov, for a dialogue about the bilateral relationship and
the multilateral agenda in the G-20, asking for Russian support for
Argentine access to those funds, the report relates.  The meeting
followed that between Presidents Alberto Fernandez and Vladimir
Putin, the report notes.

The Argentine minister, who will not be accompanying the official
delegation to China, also met with businessmen and investors, to
whom he presented Argentina's economic perspectives in the short,
medium and long term, according to the report.  Those present
highlighted the country's growth after the pandemic, expressing
their interest in advancing in specific projects in the energy,
industrial, financial and technological sectors, the report
continues.  Guzman met Russian businessmen from those four sectors.
According to the report, the businessmen praised Argentina's
investment potential and expressed their interest in increasing
bilateral trade, according to an official communique from the
Economy Ministry, the report adds.

                        About Argentina

Argentina is a country located mostly in the southern half of South
America.  Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri in the position.

Argentina has the third largest economy in Latin America.  The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.

Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8, 2020.
Moody's credit rating for Argentina was last set at Ca on Sept.
28, 2020.  Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC.  DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.  

As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors.  The first
restructuring involved $65 billion in foreign-law bonds.  The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds.  DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.

DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement.  Formal negotiations on the new financing
began in November 2020.  Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.




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B O L I V I A
=============

BOLIVIA: Banks Must Allocate 6% of Profits to Social Function
-------------------------------------------------------------
Rio Times Online reports that the Bolivian Government, through a
supreme decree, ordered banks to allocate 6% of their profits to
the social function.  The resources will mainly go to reinforce
housing, production, and seed capital funds.

Economy Minister Marcelo Montenegro pointed out that the 6% will be
destined mainly to already existing guarantee funds, according to
the decree approved by the Cabinet of Ministers, according to Rio
Times Online.

These transfers of resources "will have to be made within a maximum
period of 30 days" and will be of a "definitive and irrevocable
nature," said Montenegro at a press conference in La Paz, the
report notes.



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B R A Z I L
===========

BRAZIL: Cruise Suspension Extended Until Feb. 18
------------------------------------------------
Rio Times Online reports that CLIA Brazil (Brazilian Maritime
Cruise Association) has decided to extend the suspension of
operations in ports until February 18, 2022, prolonging a decision
announced in January and taking into account the evolution of the
epidemiological scenario in the country.

The shipping lines arriving at the Southern Cone (except those
going to Antarctica) bet on the country to save the season but have
been stopped since January 21, 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.

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 2021 with stable outlook.  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
December 2021.  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).

GOL LINHAS: Sees 26% Increase Flights in January
------------------------------------------------
Rio Times Online reports that Gol Linhas recorded a 26.2% increase
in its total flight offer (ASK) in January, accelerating when
compared to the 12-month period ended in the first month of the
year, which rose 19.8%.

Its total number of seats grew 29.8% in January, also at a faster
pace than the previous 12 months, when it increased 23.2%,
according to Rio Times Online.

Gol also registered a 29.3% increase in the number of takeoffs,
although its occupancy rate dropped 0.7 percentage points, to
82.6%, the report notes.

Total demand (RPK) increased 25.2% in January, the report
discloses.

                     About Gol Linhas

Founded in 2000 and based in Sao Paulo, Brazil, Gol is the largest
low-cost carrier in Latin America, offering over 750 daily
passenger flights to connect Brazil's major cities and various
destinations in South America, North America and the Caribbean,
along with cargo and charter flight services.  Gol also owns 100%
of Smiles, a loyalty program company with more than 18.5 million
participants that allows members to accumulate miles and redeem
tickets in more than 900 destinations around the world and offer
non-ticket reward products and services. In the twelve months ended
June 2021, Gol reported consolidated net revenues of BRL5.5
billion.

As reported in the Troubled Company Reporter-Latin America, Fitch
Ratings, in September 2021, upgraded GOL Linhas Aereas Inteligentes
S.A.'s (GOL) Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDRs) to 'B-' from 'CCC+' and upgraded its Long-Term
National Scale rating to 'BB+(bra)' from 'B-(bra)'.  Fitch has also
upgraded GOL Finance's unsecured bonds to 'B-'/'RR4' from
'CCC+'/'RR4'.  Fitch has assigned a Stable Outlook for the IDRs and
the Outlook for the national scale rating remains Stable.  S&P
Global Ratings, also in September 2021, revised the outlook on
Brazilian airline Gol Linhas Aereas Inteligentes S.A. (Gol) to
positive from stable and affirmed its global scale 'CCC+' issuer
credit rating.




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P A N A M A
===========

BANCO LA HIPOTECARIA: Fitch Affirms 'BB+' LT IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Grupo ASSA y Subsidiarias' (Grupo ASSA)
Long-Term Issuer Default Rating (IDRs) at 'BBB-' and Short-Term IDR
at 'F3', and affirmed its subsidiary Banco La Hipotecaria, S.A.
(BLH)'s Long-Term IDR at 'BB+' and Short-Term IDR at 'B'. The
Rating Outlooks on the Long-Term IDRs of both entities were revised
to Stable from Negative.

The Outlook revision of the LT IDR to Stable is driven by Fitch's
opinion that Grupo ASSA was able to sustain its current financial
performance despite the downside risk of its multi-jurisdictional
operating environment (OE). This is reflected in lesser influence
of the OE on Grupo ASSA's IDR, after Fitch revised the Outlook of
Panama's OE to Stable from Negative as well as the Stable Outlook
of the financial factors of Grupo ASSA, deemed favorable in light
of the pandemic effects of the past two years and the
particularities and increasing challenges of the higher risk
jurisdictions. BLH's Outlook revision mirrors its ultimate parent
Grupo ASSA.

Fitch has also withdrawn BLH's Support Rating as it is no longer
relevant to the agency's coverage following the publication of its
updated Bank Rating Criteria on Nov. 12, 2021. In line with the
updated criteria, Fitch has assigned a Shareholder Support Rating
(SSR). BLH's national ratings are not directly affected by this
revision and remain unchanged.

KEY RATING DRIVERS

Grupo ASSA

Grupo ASSA's IDRs and VR are driven by the company's intrinsic
creditworthiness, which is highly influenced by Fitch's assessment
of its business profile, which is underpinned by the strong
franchise of its main business in the insurance segment, close to
25% in Panama and 12% in the rest of Central America, at the same
time its business's profile benefits by the segment and
geographical diversification. The second most relevant contributor
to the company's profit is the non-controlling stake in Banco
General and its holding company, as in 2021 this investment was the
largest provider of upstream dividends. The retail lending business
in the mortgage segment of La Hipotecaria Holding and the
Nicaraguan Grupo BDF has a smaller contribution to the PNL in line
with a more modest business profile of each subsidiary.

The ratings also consider the entity multi-jurisdictional OE,
currently at 'bb+', which still has a Negative Outlook. In Fitch's
opinion the influence of this factor has moderated given the
resilience shown by the company in recent years, and the gradual
shift toward jurisdictions with better sovereign ratings and/or OE
scores. Grupo ASSA consolidates operations from its insurance
subsidiaries across Central America and lending subsidiaries
located in Panama, Nicaragua, El Salvador and Colombia. Its core
market, Panama, generates close to 58% of consolidated income.
Despite the stabilization of Panama's OE, given the OE of
Nicaragua, El Salvador and Costa Rica still have Negative Outlooks,
a multiple-notch downgrade in those jurisdictions would trigger a
revision of the company's OE.

Grupo ASSA's capitalization is one of its strengths as reflected in
the metric of tangible equity to tangible assets of 31.0% as of
September 2021, while the metric of consolidated gross debt to
tangible equity was 1.3x, including customer deposits. At the
holding level the company has no leverage and the good consolidated
capital metrics come mostly from the insurance arm.

The stagnation of growth in the past four years has contributed to
maintaining good consolidated capital levels. This was especially
visible in the banking business of Nicaragua. Even though in some
segments and markets 2022 could be a year of recovery, the growth
previsions are still modest, contributing to preserve the capital
cushion.

Asset performance in the company is defined by the credit profile
of the three main subsidiaries and its own investment portfolio. In
turn, the holding company, ASSA Tenedora, is the largest
subsidiary, and accounts for 37.8% of consolidated assets before
eliminations. In Fitch's opinion, the insurance arm has a strong
credit profile, underpinned by the strong business profile, ample
capital levels and good financial performance comparing favorably
with peers. The lending subsidiaries of La Hipotecaria Holding and
Grupo BDF have also shown a good performance and reasonable
resilience to the environments in their operating countries.

As of September 2021, the net income to average assets ratio was
2.3% for Grupo ASSA, close to the last four-year average of 2.4%.
Some declines in the insurance business were seen due to the
increase in the claims of life and health segments due to the
impact of the pandemic, below the 2020 performance. The decline was
partially offset by changes in the insurance investment portfolio.
The rest of business maintained a reasonable performance yoy and
small improvements should be made in 2022.

BLH

BLH's Long-Term IDR and National is based in Fitch's opinion of its
parent's ability and propensity to provide support in case of need,
and the IDR is notched down once from Grupo ASSA's Long-Term IDR as
Fitch believes the parent's propensity to support the bank is
reflected in the relevant role of BLH providing complementary
services in strategically important markets. Fitch's also considers
the high reputational risk for Grupo ASSA and the significant
impact that the default of its subsidiary could have on its
business.

Fitch has also withdrawn BLH's Support Rating of '3' as it is no
longer relevant to the agency's coverage following the publication
of Fitch's updated Bank Rating Criteria on Nov. 12, 2021. In line
with the updated criteria, Fitch has assigned BLH an SSR of 'bb+'.

BLH's VR considers the assessment of the multi-jurisdictional OE of
the countries in which the bank and its subsidiaries operate. BLH's
OE assessment has been revised to Stable from Negative given the
stabilization of Panama's OE, its main market. Fitch has adjusted
its OE assessment for the Panamanian banking system to Stable from
Negative, following Fitch's revision of Panama's sovereign Outlook
to Stable from Negative, due to higher than-expected economic
recovery and lessening risks that fiscal or economic pressures
could affect the recovery prospects of the banks' financial
performance.

In addition, the VR considers BLH's specialized and concentrated
business model in the mortgage segment and its moderate risk
appetite. This has resulted in sustained good asset quality
(four-year average of 1%), but with a narrow net interest margin
(four-year average of 1.1%) below that of its competitors. Fitch
also considers the moderate capital position that provides
reasonable buffers above regulatory requirements, as reflected in
its common equity Tier 1 (CET1) to risk-weighted assets (RWA) ratio
at 11.3% and the bank's diversified funding structure and good
liquidity position.

RATING SENSITIVITIES

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

Grupo ASSA

-- The Long-Term IDR has limited upside potential given the
    current OE of Grupo ASSA with several individual jurisdictions
    yet to be stabilized;

-- Over the medium term, ratings could be positively influenced
    by a material improvement in the economic conditions and
    broader OE, as well as its assets performance.

BLH

-- Positive rating actions on BLH's IDR, National and SSR could
    be driven by positive rating actions on its shareholder's IDR;

-- BLH's VR could only be upgraded over the medium term as a
    result of the sustained strengthening of its business profile
    and the financial profile of the bank as reflected in an
    operating income to RWA ratio consistently above 1.5% and a
    CET1 to RWA ratio of at least 15%.

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

Grupo ASSA

-- The IDRs could be pressured if a weaker assessment of Grupo
    ASSA's multijurisdictional OE, weakens its financial
    performance, which is not Fitch's baseline scenario at
    present;

-- Grupo ASSA's IDRs would also be sensitive to significant and
    consistent weakening of its financial profile resulting from
    deterioration of its main subsidiaries or core investments.

BLH

-- Any negative action on Grupo ASSA's IDRs would also lead to a
    similar action on BLH's IDRs, National and SSR; in addition,
    BLH's IDR and National could also change if Fitch's assessment
    of its parent's ability, or willingness to support its
    subsidiary changes, which is not expected at present;

-- BLH's VR could be downgraded as a result of a sustained low
    profitability, as measured by an operating income to RWA ratio
    consistently below 0.5%, or by a material deterioration in its
    financial performance that drives its CET1 to RWA ratio below
    10%.

VR ADJUSTMENTS

BLH

-- The Capitalizations & Leverage score has been assigned above
    the implied score due to the following adjustment reason(s):
    Capital Flexibility and Ordinary Support (positive);

-- The Funding & Liquidity score has been assigned above the
    implied score due to the following adjustment reason(s): Non
    Deposit Funding (positive).

-- In accordance with Fitch Ratings' policies, the issuer
    appealed and provided additional information to Fitch Ratings
    that resulted in a Rating action that is different than the
    original Rating committee outcome.

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.

SUMMARY OF FINANCIAL ADJUSTMENTS

BLH

Prepaid expenses and other deferred assets were reclassified as
intangible assets and were deducted from Fitch Core Capital due to
their low loss absorption capacity.

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.



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P E R U
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PERU: Inflation Slows More Than Forecast From 13-Year High
----------------------------------------------------------
globalinsolvency.com, citing Bloomberg News, reports that Peru's
inflation slowed more than expected in January as transportation
prices fell, providing a welcome relief to the central bank which
faced in 2021 the fastest rise in prices in 13 years.

Annual inflation slowed to 5.68%, compared with the 5.99% median
forecast of analysts surveyed by Bloomberg, according to
globalinsolvency.com.

Consumer prices increased 0.04% from December, the national
statistics bureau reported, the report discloses.

Prices for food, energy and fuel surged in Peru and across Latin
America last year as the pandemic and lockdowns spurred
supply-chain snarls and shortages, the report relays.

Peru's central bank, like regional peers, has mounted an aggressive
monetary tightening cycle by raising its key rate 275 basis points
since August to 3%, the report discloses.  The central bank, which
targets inflation of 2%, plus or minus one percentage point, the
report adds.




=====================
P U E R T O   R I C O
=====================

PUERTO RICO: Oversight Board Director Jaresko Steps Down
--------------------------------------------------------
Jim Wyss of Bloomberg News reports Natalie Jaresko, the executive
director of Puerto Rico's Financial Oversight and Management Board,
is resigning after helping the U.S. commonwealth through a historic
bankruptcy.

Jaresko will step down April 1, shortly after a federal judge
approved a debt-restructuring plan that will allow the island to
emerge from the biggest municipal bankruptcy in U.S. history.  In a
statement, the oversight board said it is beginning the search for
a new executive director and Jaresko will assist with the
transition.

In the position since March 2017, Jaresko helped hammer out the
contentious deal approved last January 2022 that slashed Puerto
Rico's overall debt by about 80%, according to the board.

Puerto Rico's record bankruptcy drama ends after debt plan okayed.

"Puerto Rico has the strength, and the people of Puerto Rico have
the dedication, to end this crisis and build a better future,"
Jaresko said in a statement, adding that the debt reduction had led
the Caribbean island to "an important turning point."

While the board has been seen as a key player in fending off Puerto
Rico's creditors, the body's power over local finances -- and its
ability to overrule elected officials -- have also fueled
resentment.

In statement, Governor Pedro Pierluisi acknowledged the "great
differences" he'd had with the board, particularly around pension
reform and "micromanaging government operations," but he said
Jaresko had always "worked in good faith and in favor of what she
believes is for the benefit of Puerto Rico in the long run."

"I wish her great success in her future endeavors and urge the
members of the FOMB to ensure that whoever replaces her knows that
we are in a transition stage toward the end of the Board's
mandate," he said.

Before becoming executive director, Jaresko worked for the U.S.
Department of State, was the Finance Minister of Ukraine from 2014
through 2016, and was a founding partner of Horizon Capital private
equity fund.  

                       About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70 billion,
a 68%  debt-to-GDP ratio and negative economic growth in nine of
the last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III of
2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017.  On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.  The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that may
be referred to her by Judge Swain, including discovery disputes,
and management of other pretrial proceedings.

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets Inc.
is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.


REDONDO CONSTRUCTION: Court OKs Lord's $1.3M Interest Computation
-----------------------------------------------------------------
On April 8, 2019, the United States Bankruptcy Court for the
District of Puerto Rico rendered an Opinion and Order denying
Redondo Construction Corporation's Position as to Overpayment to
Continental Lord, Inc., under the 15% Footnote Provision of the
Supplement to Plan of Reorganization.  The Court granted in part
and denied in part, Lord's Opposition to Debtor's Position as to
Alleged Overpayment Under the 15% Footnote Provision.

The Court ordered the parties to submit within 30 days their
computations regarding how the interest component should be
distributed. On May 8, 2019, Lord said interest should be
$1,367,762.07. On May 20, 2019, the Debtor said interest should be
$5,065.94.

On May 31, 2019, Lord filed its Opposition to Debtor's Motion in
Compliance with Order requesting that the same be denied because
the Debtor's calculations are not based on the real facts nor
content of this Court's previous decisions and orders. Lord also
states Debtor's calculations completely disregard  the Court's
August 31, 2009 Decision and Order by which the Court awarded to
Lord $1,746,085.00 for its principal amount and the Debtor complied
with such award on July 16, 2012 and paid Lord the net amount of
$1,395,381.00 after deducting legal and administrative expenses.

Moreover, the Debtor's calculations also disregard the content of
this Court's April 8, 2019 Opinion and Order in which the Court
denied the Debtor's Position as to Overpayment to Lord under the
15% Footnote Provision of the Supplement to the Plan of
Reorganization at Docket No. 1017 at docket no. 2627.

Bankruptcy Judge Enrique S. Lamoutte grants Lord's Motion in
Compliance and denies the Debtor's Motion in Compliance.

The Court in its April 8, 2019 Opinion and Order held that there
had been no overpayment in the amount of the principal claim that
had been awarded and paid to Lord, net of legal and administrative
costs in the amount of $1,395,381.00, based on the amended
Liquidating Agreement, the Bankruptcy Court's 2009 Opinion and
Orders and Judgment. Throughout this adversary proceeding the
parties have agreed that the percentage of Lord's claim for the
principal amount of the claim was calculated using the total
principal base in the amount of $9,220,288.83 that was recalculated
and allocated to the PR-2 Mayaguez Project pursuant to the mandate
of the First Circuit Court of Appeals.

Moreover, on April 4, 2016, the Debtor filed an Urgent Motion for
Calculation of Interest Due Redondo Construction Corporation and
for Setting Aside Status Conference in which Redondo states that
the total principal amount awarded for the PR-2 Mayaguez Project
was in the amount of $9,220,288.88 after excluding the extended
home office overhead amounts. In addition, in that same motion,
Redondo calculates the interest amount pertaining to the PR-2
Mayaguez project in the amount of $8,885,209.49 in conformity with
the mandate of the First Circuit Court of Appeals. Redondo
disclosed that the total amount of interest for the three projects
was in the total amount of $9,982,695.52.

However, the total interest amount was later reduced by $59,128.09
for a total interest amount of $9,923,567.43 plus the interest
accrued over said amount. The calculation of interest was reduced
due to an Opposition to "Urgent Motion. . ." filed by the Puerto
Rico Highway and Transportation Authority to which Redondo conceded
to said calculation of interest. The interest that had accrued for
the PR-2 Mayaguez Project up to the Judgment date of August 31,
2009 was in the amount of $8,759,021.78 plus the post-judgment
interest that had accrued in the amount of $74,112.84 for a total
interest amount of $8,833,134.62 that was allocated to the PR-2
Mayaguez project as to which Redondo agreed with. Therefore, the
Debtor's interest calculations of Lord based on allegations of an
overpayment of Lord's principal claim are unfounded, Judge Lamoutte
says. Consequently, the Debtor's CLI interest calculation using the
base amount of $6,076,678,93 is misplaced, given that the parties
agreed that the total interest amount that was allocated to the
PR-2 Mayaguez Project was in the amount of $8,833,134.62, not in
the amount of $6,076,678.93, the judge notes. However, both parties
agree that the amount that should be deducted for administrative
expenses is in the amount of $137,934.06. The total administrative
expenses were in the amount of $728,268.54 and both parties agree
that Lord's allocation should be 18.94% of the total administrative
expenses ($137,934.06/$728,268.54).

As to the applicable contractual provisions, the court agrees with
CLI that the August 15, 1994 Liquidating Agreement was amended by
the March 2001 amendment which provided that in the event that the
claim was adjudicated separately, any amounts collected from the
authority would be distributed to the party whose claim had been
adjudicated specifically. Moreover, the United States District
Court for the District of Puerto Rico agreed with Appellee CLI that
the Bankruptcy Court during the June 14, 2017 hearing stated that
the footnote in Exhibit B of the Supplement to the Plan's Schedule
incorporates by reference in the Plan the entire Liquidating
Agreement of August 15, 1994, as amended in 2001 and is binding on
Appellant. The court agrees that Lord's claim was allocated
separately as a subcontractor claim and was allocated the amount of
$1,746,085.00 pursuant to the Court's August 31, 2009 Decision and
Order.

The court notes that unlike the August 31, 2009 Decision and Order
which included and itemized Lord and Remodelco's pass through
claims as a component of the total principal awarded under the PR-2
Mayaguez Project claim, the subsequent Opinion and Orders that have
dealt with the issue of prejudgment and post judgment interest have
calculated the interest using the total principal awarded by
project. Thus, there is no specific allocation or itemization to
the prejudgment and postjudgment interest pertaining to the
subcontractor claims (Lord and Remodelco's pass through claims)
which form part of the total principal awarded of the PR-2 Mayaguez
project.

The court agrees with CLI that for more than 12 years the Debtor
pursued Lord's pass through claim, paid on July 16, 2012, the
principal amount awarded of such claim under the Plan following the
provisions of the Liquidating Agreement, as amended in March 2001,
regarding payment of the claim based on the specific allocation of
the same which was in conformity with the first paragraph of the
2001 amendment. The court also adopts CLI's legal analysis
regarding Lord's net interest allocation and agrees with CLI that
the percentage that was allocated to Lord was 18.94% and that the
interest allocated to Lord should be 18.94% of the total amount of
$8,833,134.62 which results in $1,672,995.70 minus 10% legal fees
($167,299.57) and $137,934.06 in administrative expenses resulting
in the net interest amount due to CLI of $1,367,762.07. The court
notes that the Debtor in its Motion in Compliance with Order at
Docket No. 2652 failed to provide any legal basis for CLI's
interest computation (Docket No. 2667). Therefore, CLI's legal
analysis for its interest component stands unopposed.

A full-text copy of the Opinion and Order dated January 27, 2022,
is available at https://tinyurl.com/2p9x3htp from Leagle.com.

Redondo Construction Corporation has been in the construction
business for 30 years, and worked on many public and government
projects.  Redondo filed for chapter 11 protection (Bankr. D.P.R.
Case No. 02-02887) on March 19, 2002, and the Bankruptcy Court
confirmed the Debtor's chapter 11 plan on Oct. 6, 2005.



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