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       T R O U B L E D   C O M P A N Y   R E P O R T E R

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

          Thursday, February 24, 2022, Vol. 23, No. 34

                           Headlines



A R G E N T I N A

ARGENTINA: Engaged in 'Intense Negotiations' With IMF


C H I L E

LATAM AIRLINES: Creditor Group Preps Alternative Ch.11 Exit Deal


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: ANRD Aim for Sustainability


G U A T E M A L A

GUATEMALA: IDB Okays $300MM to Support Vulnerable Populations


J A M A I C A

JAMAICA: Business Sector Advocates for 30% Hike in Minimum Wage
JAMAICA: Inflation Rate Exceeds 9% Over 12-Mo. Period


M E X I C O

SIXSIGMA NETWORKS: S&P Affirms 'B' ICR & Alters Outlook to Positive

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A R G E N T I N A
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ARGENTINA: Engaged in 'Intense Negotiations' With IMF
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Buenos Aires Times reports that negotiators representing Argentina
and the International Monetary Fund are working day and night to
finalise the details of a new financing program and the resulting
agreement will be realistic, pragmatic and credible, a senior Fund
official said.

Speaking at an online event organized by the Council of the
Americas, Ilan Goldfajn, the current director of the IMF's Western
Hemisphere Department, said the two sides were engaged in "intense
negotiations" over a deal to refinance Argentina's US$44.5-billion
debt with the multilateral lender, according to Buenos Aires
Times.

Goldfajn warned, however, that the program will have to be owned by
Argentina as a whole, not just by the authorities, if it is going
to succeed, the report notes.

IMF staff and Fernandez's government announced a pre-agreement on
January 28 to renegotiate the country's US$44.5-billion debt, a
legacy of the record US$57-billion loan granted in 2018 to the
administration of former president Mauricio Macri, the report
relays.

The report discloses that government officials in Buenos Aires are
increasingly optimistic that a deal will be agreed in the coming
days. The IMF's Executive Board met to discuss the state of
negotiations, during which members expressed their views on the
outlines of the accord.

A Fund spokesperson said that staff are working closely with
officials in Buenos Aires to secure an agreement on a new financing
deal "as quickly as possible," the report notes.  Argentina's
government has a more specific target in mind - it wants a
staff-level agreement before the March 22 maturity of a
US$2.85-billion payment that the country can no longer afford, the
report disclsoes.

                          Bill 'Before March'

Argentina's government wants to send a bill to Congress detailing
an agreement with the International Monetary Fund over a new
financing program "before March 1," according to Casa Rosada
sources, the report says.

If possible, the Alberto Fernandez administration wants to use the
president's speech inaugurating a new round of congressional
sessions in early March to "talk about the future" and not the IMF
deal, said the sources who asked not to be identified, the report
relays.

Consulted by Noticias Argentinas, top sources in Government House
said that talks with the IMF outlining the final details of a new
financing programme for Argentina's US$44.5-billion debt to the
multilateral lender were accelerating, the report discloses.

"We initially believed that we would not reach March 1," said one
of the sources, explaining that the president's speech was set to
"talk about the Fund." But, the source said, if a bill is sent to
Congress, the head of state will be able to address other topics in
depth too, the report notes.

"The staff presented and the IMF board said 'Let's go.' They
complained, but they approved it]. Still, there is not much left.
If the Board approves what you present, you can't change much,"
they argued, the report says.

Another of the Casa Rosada sources added: "The Board said it was
fine, that it is on track, the report relays.  They complained
politically that the structural reforms demanded by the Fund were
lacking, but that they would still move forward, the report
discloses.  In the face of this, the feeling is that it may be a
matter of days" until a deal is sealed, they added.

"When the bill reaches Congress it will not be possible to change
it, because it will be the agreement with the Fund," they stressed,
the report says.

Argentina's Congress has to approve the agreement before the deal
goes back to the IMF's Executive Board for final approval, 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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C H I L E
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LATAM AIRLINES: Creditor Group Preps Alternative Ch.11 Exit Deal
----------------------------------------------------------------
globalinsolvency.com, citing WSJ Pro Bankruptcy, reports that
a group of Latam Airlines Group SA's creditors said they are
prepared to provide alternative financing if a bankruptcy judge
rejects a financial lifeline from another creditor group.

The splinter group of creditors, which includes Pentwater Capital
Management LP, Invictus Global Management LLC and Avenue Capital
Group, said it is ready to backstop $400 million of a rights
offering and roughly $3.27 billion in the sale of convertible
notes, according to globalinsolvency.com.

The creditors, whose unsecured debts include lease claims and
unsecured notes maturing in 2024 and 2026, said their proposal
would increase the restructuring plan's equity value to $7.79
billion from $7.61 billion, according to the commitment letter and
related materials viewed by The Wall Street Journal, the report
notes.

The offer is an alternative to an existing financing deal proposed
by another group of creditors including Sixth Street Partners that
Latam is hoping to get court approval for in order to end the
bankruptcy brought on by the Covid-19 pandemic, the report relays.


Since the current offer was presented in November, dissenting
creditors, including the holders providing the new deal, have
contended that Latam is paying an unreasonable amount of fees to
secure the funding it needs, 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.




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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: ANRD Aim for Sustainability
-----------------------------------------------
Dominican Today reports that the president of the Shippers
Association of the Dominican Republic (ANRD), Teddy Heinsen,
indicated that the sector he represents works closely with the
International Maritime Organization (IMO) in its goal of conserving
and sustainably using the oceans, seas and maritime resources.

"Compared to other means of transport, such as planes, trains and
trucks, maritime transport is more efficient and has less impact on
the environment. Without a doubt, the port maritime sector is a
catalyst for progress and prosperity," according to Dominican
Today.

Heinsen spoke in the panel "Shipping Sector: En route to
sustainability" held at the Business Hall of the AIRD, where the
Minister of the Environment, Orlando Jorge participated, the report
notes.

He said the maritime sector has demonstrated with clear actions
that in order to adapt to the post-pandemic world and rebuild for
the better, it is necessary to add economic, social and
environmental value, the report relays.

"We must continue rowing the public and private sector together, as
we have been doing, generating robust alliances to continue taking
this vessel called the Dominican Republic to a safe port. In this
journey we will be guided by the good compass of experience and
clear and coherent strategies," 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.

TCRLA 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, in December 2021, revised the Outlook on Dominican
Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR)
to Stable from Negative and affirmed the IDRs at 'BB-'.  The
revision of the Outlook to Stable reflects the narrowing of
Dominican Republic's government deficit and financing needs since
Fitch's last review resulting in the stabilization of the
government debt/GDP ratio, as well as the investment-driven
economic momentum, reflected in the faster-than-expected economic
recovery in 2021 that Fitch expects to carry into above-potential
GDP growth during 2022 and 2023.

Standard & Poor's, also in December 2021, revised its outlook on
the Dominican Republic to stable from negative.  S&P also affirmed
its 'BB-' long-term foreign and local currency sovereign credit
ratings and its 'B' short-term sovereign credit ratings.  The
stable outlook reflects S&P's expectation of continued favorable
GDP growth and policy continuity over the next 12 to 18 months that
will likely stabilize the government's debt burden, despite lack of
progress with broader tax reforms, S&P said.  A
rapid economic recovery from the downturn because of the pandemic
should mitigate external and fiscal risks.

Moody's affirmed the Dominican Republic's long-term issuer and
senior unsecured ratings at Ba3 and maintained the stable outlook
in March 2021.




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G U A T E M A L A
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GUATEMALA: IDB Okays $300MM to Support Vulnerable Populations
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The Inter-American Development Bank (IDB) approved a $300 million
policy support operation to accompany measures to benefit the most
vulnerable population in Guatemala by improving social protection
services and health programs.

The operation seeks to improve the quality, governance, and
transparency of social protection programs by strengthening the
capacity for planning, monitoring, evaluation, and communication,
and developing and implementing a Strategic Information Technology
Plan.

Among the social protection measures, the Social Registry of Homes
will contribute to selecting the beneficiaries through transparent
methodologies. In addition, the analysis of the results with a
gender approach will allow the estimation of coverage gaps and the
review, adaptation, and prioritization of social programs to close
said gaps.

Besides, the loan seeks to improve the health services provided to
the population through the design and implementation of policies
for the continuous improvement of the quality of prenatal care and
childbirth, as well as the financing and management measures
necessary for its consolidation and the coordination of the
emergency network, the development of health information
technologies and health care with cultural relevance.

These measures seek to improve results in the fight against
poverty, which continues to be a challenge in Guatemala. For
example, in 2020, as a result of the crisis, poverty went from
51.5% to 54.9%. It also seeks to reduce maternal and neonatal
mortality, advance towards the Sustainable Development Goals for
maternal mortality, and reduce the gaps in this indicator between
indigenous women and the rest of the population.

The IDB loan seeks to benefit households from the main social
protection programs (around 800,000 people), as well as pregnant
women and newborns (there are approximately 28,000 births a year in
the prioritized municipalities), and indigenous populations that
will benefit from policies with cultural relevance (about 430,000
people).

Supporting vulnerable populations, promoting social progress, and
working for gender equity are the objectives that the IDB Group
sets out in its Vision 2025, a roadmap to achieve inclusive growth
in Latin America and the Caribbean.

The IDB loan of $300 million has a disbursement period of 1 year.




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J A M A I C A
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JAMAICA: Business Sector Advocates for 30% Hike in Minimum Wage
---------------------------------------------------------------
RJR News reports that businesses and sector leaders are advocating
for a 30 per cent increase in the minimum wage.

Amid the sharp increase in the cost of living and the depreciation
of the Jamaican dollar, they say an increase will offer a safety
net for low income workers whose personal budgets have been
decimated by inflation, according to RJR News.

The proposal comes in the wake of 9.7 per cent January inflation
that caused food prices, fuel and other commodities to soar, the
report notes.

With an increase of that ratio, the standard minimum wage would be
increased to $9,100 weekly from $7,000 and $12,610 for security
guards from $9,700, 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.


JAMAICA: Inflation Rate Exceeds 9% Over 12-Mo. Period
-----------------------------------------------------
RJR News reports that Jamaica's inflation rate exceeded 9 per cent
during the 12 months to January this year.

The Statistical Institute of  Jamaica (STATIN) says point to point
inflation was 9.7%, according to RJR News.

The increase was driven mainly by the divisions: 'Food and
Non-Alcoholic Beverages', 'Transport', and 'Housing, Water,
Electricity, Gas and Other Fuels,' the report notes.

Meanwhile, inflation in January was 0.6%, the report relays.

This was mainly influenced by a 8.4 per cent increase in the index
'Restaurants and Accommodation Services' and 'Meat and other parts
of  slaughtered land animals,' the report discloses.

This was tempered by a 1.5 per cent decline in the prices
associated with the category 'Housing, Water, Electricity Gas and
other fuels, 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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SIXSIGMA NETWORKS: S&P Affirms 'B' ICR & Alters Outlook to Positive
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S&P Global Ratings revised the outlook to positive, affirmed its
Mexico-based information technology (IT) managed and data services
provider Sixsigma Networks Mexico S.A. de C.V. (KIO Networks)
global scale long-term issuer credit and issue-level ratings at
'B', and removed them from CreditWatch, where they were placed with
positive implications on Aug. 2, 2021, when the acquisition was
announced.

The positive outlook reflects S&P's expectations that KIO Networks
could improve its liquidity after the acquisition, due to the new
owner's strategy to reduce short-term debt, improve working capital
management, and allow for sustainable expansion investments,
through equity injections.

KIO Networks was acquired by I Squared Capital (ISQ), on Nov. 26,
2021. S&P expects the new ownership will strengthen the company's
liquidity position and capital structure.

ISQ's strategy to reduce short-term debt will reduce refinancing
risks for KIO Networks.Since closing the transaction on Nov. 26,
2021, ISQ's strategy has focused on reducing KIO Networks'
liquidity exposure and improving the capital structure. S&P
believes that the company's liquidity risks were materially reduced
through the new owner's equity injections during fourth-quarter
2021 and first-quarter 2022. This translated into the amortization
of most of the outstanding Mexican peso (MXN) 3.2 billion in
short-term debt as of Sept. 30, 2021, and a reduction in working
capital outflows. In our view, these actions could revert KIO
Networks' previous cash shortfalls and constitute a crucial step
toward achieving sufficient liquidity headroom. S&P expects the
company will focus its cash flows on increasing capital expenditure
(capex) for its core strategy to expand the data center business
segment.

The company's liquidity remains less than adequate.Although ISQ's
commitment and willingness to reduce short-term obligations and
working capital stress is positive for our analysis of KIO
Networks' liquidity and diminishes its refinancing risk, an
improvement to our liquidity assessment would follow a track record
of managing a broader liquidity cushion over the upcoming months
amid an accelerated growth strategy. This would result in increased
covenant headroom and an improved capacity to withstand adverse or
unexpected events while maintaining low refinancing risk.

S&P forecasts an acceleration of capex and revenue growth through
the strategy to expand data center capacity. In line with actions
to improve liquidity and increase headroom to invest its cash
flows, by year-end 2021 KIO Networks began to develop additional
data center capacity in its Querétaro and Tultitlan facilities,
having already designed incremental capacity. These constitute KIO
Networks' two largest data center facilities and hold among its
highest occupation rates. In this sense, the expansion could boost
revenue growth from 2022, mainly by expanding the relationship with
private-sector clients. S&P believes new data center capacity will
remain the main focus of KIO Networks' capex over the next couple
of years. This would accelerate revenue growth and, to some extent,
shift the company's client portfolio more heavily into the private
sector, which is projected to spur demand for IT and data center
services in Mexico.

Outlook

S&P said, "The positive outlook on KIO Networks reflects our view
on its reduced liquidity risks after being acquired by ISQ, due to
the new owner's strategy to reduce short-term debt and improve
working capital management through equity injections. We expect the
company can fund an increase in capex to expand its data center
business, without compromising its liquidity position.

"At the same time, the positive outlook is in line with our
expectation that the equity injections will translate into leverage
reduction, maintaining adjusted debt to EBITDA below 5.0x."

Downside scenario

S&P could revise the outlook to stable or negative during the
upcoming 12 months if, contrary to our expectations, the company's
liquidity position deteriorates. This would compromise KIO
Networks' ability to service its remaining short-term debt, manage
working capital, or deploy its expansion capex.

Upside scenario

S&P could raise the ratings on KIO Networks during the upcoming 12
months if it maintains improved liquidity headroom and shows
prudent risk management, amid its accelerated growth strategy.

This would occur if the company can fund its expansion and working
capital needs without an increase in short-term debt, establishing
a track record of a sustainable liquidity cushion, more covenant
headroom and, in turn, increased protection against unexpected or
adverse events.



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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

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