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/raid1/www/Hosts/bankrupt/TCRLA_Public/220325.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 Friday, March 25, 2022, Vol. 23, No. 55 Headlines A R G E N T I N A ARGENTINA: Ball Now in IMF's Court After Congress Ok Debt Deal B R A Z I L PETROLEO BRASILEIRO: Refineries Record Sharp Drop in Production C H I L E LATAM AIRLINES: To Seek Bankruptcy Plan Approval in May 2022 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Fuel Price Remained Unchanged This Week DOMINICAN REPUBLIC: IDB OKs $60M Loan to Support Transparency G U A T E M A L A INVESTMENT ENERGY: Fitch Affirms 'BB-' LT IDRs, Outlook Stable M E X I C O COMISION DE AGUA: Moody's Withdraws 'Caa1' Issuer Rating GRUPO ELEKTRA: Fitch Affirms 'BB' LT IDRs, Outlook Stable STATE OF TAMAULIPAS: Moody's Withdraws 'Ba3' Issuer Rating P U E R T O R I C O ECOLIFT CORPORATION: May 11 Plan Confirmation Hearing Set PUERTO RICO: Ankura Issues Statement on Plan Effectivity PUERTO RICO: Mammoth Energy Comments on Bankruptcy Developments T R I N I D A D A N D T O B A G O UNILEVER: To Stop Manufacturing in T&T From July - - - - - ================= A R G E N T I N A ================= ARGENTINA: Ball Now in IMF's Court After Congress Ok Debt Deal -------------------------------------------------------------- Buenos Aires Times reports that with Argentina's Senate's approval of the government's US$45-billion agreement with the International Monetary Fund, the plan will now need to be voted on by the IMF's Executive Board to take effect. Gerry Rice, Director of Communications at the International Monetary Fund (IMF), had previously said in a statement that the IMF Executive Board will meet to discuss Argentina's request for an IMF-supported program today, March 25. In a 56-13 vote with three abstentions, senators passed the legislation underpinning Argentina's latest IMF program after a marathon session at Buenos Aires, recounts Buenos Aires Times. The vote in Buenos Aires highlighted tensions among the ruling coalition and its supporters, with Vice-President Cristina Fernandez de Kirchner - who heads the Senate - absent for much of the proceedings, the report discloses. The agreement won the approval of the Chamber of Deputies with a broad consensus between the ruling Frente de Todos coalition and the centre-right opposition front Juntos por el Cambio, a relative rarity in Argentina's polarized political landscape, the report notes. Faced with the spectre of a ruinous payment default if the agreement was not approved, the Senate comfortably greenlit it, despite the Kirchnerite wing of the ruling coalition denouncing the deal, the report discloses. "It is the responsibility of our government to build certainty in a context of uncertainty," Economic Minister Martin Guzman, the deal's chief architect, said in defending the package before senators, the report says. Following its approval, President Fernandez promulgated the bill authorizing the government to sign an agreement with the Fund into law, the report notes. Finalizing the Deal A positive vote by the IMF's board approval, likely to come, would finalize the deal after two years of negotiations with technical staff and mark the country's 22nd agreement with the multilateral lender, the report discloses, the report discloses. The plan allows Argentina to refinance upcoming payments owed to the IMF from a record US$57-billion bailout granted in 2018 to the Mauricio Macri administration that failed to stabilize the economy, the report relays. The country received US$44 billion of that amount. Macri's successor in office, President Alberto Fernandez, refused to accept the rest and sought to renegotiate repayment terms, the report notes. The report discloses that the timing of the board's vote will be key to determine whether the country goes into default with the multilateral lender. Once the deal is approved by the board, Argentina will almost immediately receive about US$9.8 billion from the IMF, the report notes. The rest of the disbursements are contingent on Argentina accomplishing targets in the program that are assessed during quarterly reviews with IMF staff, the report relays. The agreement provides for a series of macroeconomic measures to control Argentina's chronic and persistent inflation (50.9 percent in 2021, 52.3 percent over last 12 months) and reduce its budget deficit of three percent of GDP last year until it is balanced in 2025, the report discloses. Payments of US$19 billion and US$20 billion were due this year - a timeline the government considered impossible, the report says. Argentina is just emerging from three years of economic recession and battling rising inflation and a high poverty rate, the report relays. The country recorded a 4.7 percent jump in its consumer price index in February compared to January, with a 7.5 percent rise in the cost of food, the report notes. Under the new deal - the 13th that Buenos Aires has signed with the IMF since the return of democracy in 1983 - repayments will be made from 2026 to 2034 after a grace period, the report adds. Exposed a Divide President Fernandez's unusual step of making the legislature vote on the agreement exposed a divide with opposition lawmakers and within his own left-wing coalition, the report discloses. Senators from the ruling coalition who voted against it published a letter outlining their grievances with the IMF, an institution long vilified by Fernandez de Kirchner, the leader of the coalition's Kirchernite wing, the report relays. The premises of the agreement "make it impossible to ignite economic growth," the senators wrote in the eight-page letter, the report notes. Argentines "will suffer the consequences of this pact," they said. The bill was approved in the lower house only after lawmakers changed the text to solely vote on the IMF's financing, but not on the government's economic policies in the program, the report discloses. Economists have already noted that the projections in the agreement will be tough to meet, even before it's finalized, the report notes. Officials are forecasting annual inflation this year to cool between 38 to 48 percent from the current level of 52%. But banks, such as JPMorgan Chase & Co, are now forecasting inflation above 60% in Argentina this year due to factors including rising global food and commodity prices, the report discloses. IMF spokesman Gerry Rice said the aim of the deal was to "reduce persistently high inflation" but warned of the challenges faced by the global economy following Russia's invasion of Ukraine, the report says. The National Congress building was fenced off ahead of the Senate vote, following protests when the lower house approved the bill, with some demonstrators burning rubbish and throwing stones towards the building entrance, the report says. A police officer was struck by a Molotov cocktail and some windows were hit with stones, including those from the office of the Senate president: Fernandez de Kirchner, adds the report. 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. =========== B R A Z I L =========== PETROLEO BRASILEIRO: Refineries Record Sharp Drop in Production --------------------------------------------------------------- Richard Mann at Rio Times Online reports that the sudden drop in demand for fuels prompted a sharp reduction in the utilization factor of Petrobras' refineries, which are now prioritizing the production of Liquefied Petroleum Gas (LPG) to supply the domestic market, in addition to importing the raw material, said the director of the National Petroleum, Natural Gas and Biofuels Agency (ANP), Felipe Kury. Failing to mention the extent of the drop in refineries, Kury repeated data earlier confirmed by the president of the state-owned company, Roberto Castello Branco, notes Rio Times Online. According to Petrobras' latest report, refineries operated with a capacity factor of 76% last year in March and dropped to 74% this year, the report notes. As reported in the Troubled Company Reporter-Latin America on Feb. 10, 2022, Fitch Ratings has affirmed Petroleo Brasileiro S.A.'s (Petrobras) Local and Foreign Currency Long-Term Issuer Default Ratings (IDRs) and outstanding debt ratings at 'BB-'. The Rating Outlook is Negative. The national scale rating has been affirmed at 'AA(bra)'. The Outlook for the national scale rating is Stable. ========= C H I L E ========= LATAM AIRLINES: To Seek Bankruptcy Plan Approval in May 2022 ------------------------------------------------------------ Jeremy Hill of Bloomberg News reports that U.S. Bankruptcy Judge James Garrity set aside two days in May 2022 for Latam Airlines Group SA to seek court approval of its Chapter 11 plan. The Chilean airline will present its plan to the bankruptcy court on May 17 and 18, 2022, Garrity said in a hearing Friday, March 18, 2022, says Bloomberg News. The report says Judge Garrity heard arguments about a dispute between the company and its official low-ranking creditor panel over $1.3 billion of inter-company loans. Judge Garrity shut the public out of part of the hearing so lawyers could address confidential details of the debt; he didn't immediately rule on the dispute after reopening the hearing, notes Bloomberg. About LATAM Airlines 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. LATAM Airlines Group S.A. 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 Airlines Group S.A. 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 general bankruptcy counsel; FTI Consulting as restructuring advisor; and Togut, Segal & Segal LLP and Claro & Cia in Chile as special counsel. Prime Clerk LLC is the claims agent. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Fuel Price Remained Unchanged This Week ----------------------------------------------------------- Dominican Today reports that the Ministry of Industry, Commerce, and Mipymes (MICM) had disclosed that the price of fuels remained unchanged for the week of March 19 to 25. In this regard, Premium Gasoline was to remain at RD$293.60, and Regular Gasoline at RD$274.50, the report relays. Meanwhile, Regular Gasoil was to continue at RD$221.60, and Optimum Gasoil at RD$241.10 per gallon, the report discloses. Likewise, Liquefied Petroleum Gas (LPG) remained at RD$147.60 per gallon, and Natural Gas maintained its price at RD$28.97 per m3, the report notes. In addition, Avtur was sold at RD$249.54 and Kerosene at RD$284.88, the report relays. Fuel Oil increased to RD$192.11 per gallon, and Fuel Oil 1% was sold at RD$211.77, 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. DOMINICAN REPUBLIC: IDB OKs $60M Loan to Support Transparency ------------------------------------------------------------- The Dominican Republic will strengthen transparency, accountability, and integrity in public resources management with a $60 million loan from the Inter-American Development Bank (IDB). The operation will promote actions to consolidate transparency and traceability in resource management, strengthen the internal control function, and promote access to information, citizen participation, and integrity in public administration and the private sector. The program will support transparency measures in public finances based on greater interoperability between the budget, the public investment system, contracting processes, and the internal control ecosystem. Likewise, it will modernize the electronic contracting system, monitoring, follow-up, and evaluation of public investment by designing and implementing a system of final beneficiaries for legal persons and structures in the country. The Dominican Republic will finance the modernization of the management model and organizational structure of the Office of the Comptroller General of the Republic, which will allow a digital transformation of the "ex ante" control model, as well as a reorganization of the agency's duties, positions, and necessary staffing and of internal control units. Likewise, the program will implement an interest conflict management system and develop tools that facilitate citizen participation, complaints management, and protecting whistleblowers of acts of corruption. It will also strengthen the Single Transparency Portal, which will centralize open data and open government portals, and the public information access system with accessibility for people with disabilities, among other activities led by the Office of Government Ethics and Integrity. The program will finance activities in support of closing gender gaps through implementing strategies and incorporating digital tools that contribute to increasing the percentage of companies led by women that participate in public acquisitions, among other actions. Likewise, the initiative will follow environmental sustainability criteria through by incorporating green acquisition guidelines to the public contracting electronic system, and by acquiring services, software, and infrastructure with energy efficiency and low carbon footprint criteria. Having a more efficient and transparent management of public resources that provides timely information and greater control will benefit public officials, companies, and citizens of the country. This operation is aligned with Vision 2025 - Reinvest in the Americas: A Decade of Opportunity, the IDB's roadmap to promote the recovery and inclusive growth of Latin America and the Caribbean, in the areas of governance, digital economy, micro, small and medium enterprises, gender and inclusion, and climate change. The IDB loan of $60 million has a 25-year amortization term, a 6-year grace period, and an interest rate based on SOFR. IDB is the leading multilateral institution financing and providing technical assistance to transparency, integrity, and corruption control projects in Latin America and the Caribbean. With more than $23 million in technical cooperations approved since 2007 to improve transparency and integrity in the public and private sectors in the region, our member countries have implemented loan programs for more than 2 billion dollars for this agenda. 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. ================= G U A T E M A L A ================= INVESTMENT ENERGY: Fitch Affirms 'BB-' LT IDRs, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Investment Energy Resources Limited's (IERL) Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs) at 'BB-'. Fitch also affirmed the senior secured green bonds at 'BB-'. The Rating Outlook is Stable. The ratings reflect IERL's diversified portfolio of generation assets that span across Central America, mostly notably in Guatemala (BB-/Stable), which Fitch estimates cash flow from Guatemala sufficiently supports its cash flow profile and slightly offsets the company's high off-taker risk tied to governments in lower rated operating environments, such as El Salvador (CCC) and in Nicaragua (B-/Stable). KEY RATING DRIVERS High Off-Taker Risk: IERL's ratings reflect the company's high off-taker risk, where 46% of its revenues come from off-takers with a weighted average credit quality in line with a 'B+' rating. As of Dec. 31, 2021, 40% of consolidated revenues originated from contracts signed with distribution companies in Guatemala; 22% from Empresa Nacional de Energia Electrica (ENEE; not rated) in Honduras, 19% from Instituto Costarricense de Electricidad (ICE; B/Stable) in Costa Rica (B/Stable), 6% from contracts signed with distribution companies in Nicaragua (B-/Stable) and 3% in the Dominican Republic. As a contingent measure, IERL has the Multilateral Investment Guarantee Agency's insurance, which offers political risk insurance and enhancement guarantees on its generation assets in Honduras and Nicaragua. Diversified Business Portfolio: IERL's diversified portfolio of renewable generation assets across Central America offset the idiosyncratic risk tied to government supported off-takers in lower rated environments and stabilize cash flow across technologies mitigating the risks of low hydrology or unfavorable wind conditions. The company has a portfolio of 818MW generation assets: 39% of which are hydroelectric plants, 21% solar (including 50% stake in the solar farms Bosforo -- 100MW -- and Cuscatlan Solar -- 10MW, both JVs with AES in El Salvador), and 40% in wind assets. The company's ratings are capped by the country ceiling of Guatemala Predictable Cash Flows: IERL has predictable cash flows supported by long-term U.S. dollar-denominated contracts, and a low fixed marginal cost of production, given its concentration in renewables. As of YE 2021, the company's generation capacity was 93% contracted under power purchase agreements (PPAs) with a weighted average remaining life of approximately 13 years. Off-taker for the take-or-pay contracts are obligated to purchase 100% of generation. According to preliminary data, IERL's revenues were USD320 in 2021 (8% up compared to 2020), and EBITDA increased by 7% to USD187 million compared to 2020. Fitch's base case reflects that energy production will be close to 2.8GWh in 2022, assuming a blend of P50 and P90 scenarios for the solar and wind projects, and capacity factors that reflect historical average hydrology conditions in the case of Renace and Santa Teresa. Revenues under these assumptions may amount to USD322 million while EBITDA may reach approximately USD197 million in 2022. Improving Leverage Profile: IERL's liability management exercise in 2021 materially improved its leverage profile. As of YE 2021, gross leverage, measured by total debt/EBITDA, was estimated to be 5.3x according to preliminary figures (2020: 6.2x). Fitch expects IERL's leverage to be close to 5.0x by end of 2022 and to deleverage toward 4.7x in 2024. The deleveraging trajectory is supported by the loan's programmed amortization schedule of about USD30 million per year, and by average annual EBITDA of approximately USD197 million between 2022 and 2024. Additionally, average FFO interest coverage may reach 3.0x between 2022 and 2024. Strong Shareholder Group: IERL benefits from the strength of Corporacion Multi Inversiones (CMI) group of companies. CMI is a family-owned multinational conglomerate and one of the largest in Central America, with operations in 14 countries including the Caribbean and the U.S. Its operations span agribusiness, restaurants (including the global chain Pollo Campero), real estate, electricity generation and finance. CMI has shown commitment to developing its energy business unit and has made significant investments in this industry, while providing back-office support and access to credit to CMI Energia. DERIVATION SUMMARY IERL's 'BB-' reflects the company's diversified and complementary asset portfolio supported by exceptionally long-term U.S. dollar-denominated contracts, which mitigates its exposure to weak off-takers in challenging operating environments. Compared to AES Panama Generation Holdings, S.R.L. (AESPGH) (BBB-/Stable), IERL has a lower scale of operations but a better geographic diversification, which AESPGH compensates with a better off-taker risk profile, and both companies have similar leverage expectations. Compared to Orazul Energy Peru S.A. (BB/Stable), IERL has higher expected leverage and a weaker operating environment; compared to Nautilus Inkia Holdings SCS (BB/Stable), IERL shows similar leverage levels but modest capex investments and a more flexible shareholder strategy, a combination that should derive in positive FCF through the cycle. KEY ASSUMPTIONS -- Average capacity factors for wind assets of 44% and 24% for solar, between 2022-2024; -- Capacity factors that reflect historical average hydrology conditions, in the case of Renace of 44% and 41% for Santa Teresa, between 2022-2024; -- 90% contracted generation through the cycle; -- Average monomic price of USD115/MWh over 2022-2024; -- The loan has annual amortizations USD30 million 2022 and 2027 with a balloon repayment in 2028; -- Average maintenance capex at USD9 million between 2022-2024. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- A material improvement in the company's operating environment; -- Sustained gross leverage below 4.0x through the rating cycle. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A material deterioration in the company's operating environment and/or applicable CC; -- Total debt/EBITDA of 5.0x on a sustained basis; -- Significant lag in collections that weakens the company's liquidity position; -- Sustained disruptions in generation capacity due to either technical or climatological issues. 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: As of Dec. 31, 2021, IERL reported readily available cash and cash equivalents totaling USD77.2 million, which covers its short-term debt of USD30 million. Fitch estimates that IERL will be FCF positive through the rating cycle strengthening its overall liquidity. ISSUER PROFILE Investment Energy Resources Limited, (IERL) is the entity through which Corporacion Multi Inversiones corporate group (the CMI Group) owns the largest and most diversified private renewable energy portfolio in Central America and the Caribbean. IERL's utility scale operating assets are in Guatemala, Honduras, Costa Rica, Nicaragua and the Dominican Republic, and have an aggregate installed capacity of over 800MW, including hydro, wind and solar generation. In addition, IERL owns commercialization and distributed generation subsidiaries in Guatemala and El Salvador and has a 50% stake in 110MW utility-scale solar joint ventures with AES Corporation in El Salvador. ESG Considerations Investment Energy Resources Limited has an ESG Relevance Score of '4' [+] for GHG Emissions & Air Quality due to the company's advantage as a renewable generation company in Central America, which has a positive impact on the credit profile, and is relevant to the ratings in conjunction with other factors. 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. =========== M E X I C O =========== COMISION DE AGUA: Moody's Withdraws 'Caa1' Issuer Rating -------------------------------------------------------- Moody's de Mexico S.A.de C.V, has withdrawn the Caa1 (Global Scale, local currency) and B2.mx (Mexico National Scale) issuer ratings of the Comision de Agua Potable y Alcantarillado del Municipio de Acapulco (CAPAMA). Moody's has also withdrawn the stable outlook. RATINGS RATIONALE Moody's has decided to withdraw the ratings for its own business reasons. The principal methodology used in these ratings was Government-Related Issuers Methodology published in February 2020. GRUPO ELEKTRA: Fitch Affirms 'BB' LT IDRs, Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed Grupo Elektra, S.A.B. de C.V.'s (Elektra) Long-Term Local-Currency (LC) and Foreign-Currency (FC) IDRs at 'BB' and national Long-Term rating at 'A+(mex)'. Fitch has also affirmed the national Short-Term rating at 'F1+(mex)'. At the same time, Fitch has affirmed Nueva Elektra del Milenio, S.A. de C.V.'s (NEM) LC and FC IDRs at 'BB'. The Rating Outlooks for Elektra and NEM are Stable. The affirmation of Elektra's ratings reflects its long-term retail trajectory and market position as one of Mexico's main department store chains, operational and financial linkage with Banco Azteca S.A. (BAZ; A+[mex]/F1+[mex]/Negative), as well as the company's sizable liquidity position and financial flexibility. The ratings also consider Fitch's view of the company's related parties aggressive treatment toward different stakeholders, which weakens governance. NEM's ratings are equalized to those of its parent company Elektra applying the strong parent/weak subsidiary approach. Fitch incorporates the high legal, strategic and operational incentives between both companies. Elektra guarantees NEM's future flows issuance and some of NEM cash flows are used to pay Elektra's debt. NEM is a strategic subsidiary for the economic group as it operates the Mexican retail business and is the parent company of the retail businesses in Latin America. NEM's operations are also integral to Elektra's core business as they provide operational benefits and share a common management structure. KEY RATING DRIVERS Strong Market Position: Elektra's market position is supported by diversification of its operations and linkage with Banco Azteca, which has widespread banking franchises across the country. Elektra has more than 70 years' experience in the commercialization of durable goods, with operations in four Latin American countries, including Mexico. The company also has a presence in the U.S. through its subsidiary Purpose Financial, Inc. (formerly Advance America), a provider of payday lending and other short-term financial services. Elektra's omnichannel strategy includes not only retail but also a financial business component. Since 2016, the company has invested in servers and IT platforms to support innovations to allow it to stay updated with consumer trends. Elektra generates about 88% of the group's consolidated revenues in Mexico, including retail and financial businesses. However, Fitch believes operations in other countries across Latin America and in the U.S. mitigate revenue concentration. Revenue Growth and Profitability Pressures in Retail: Elektra's retail operations continued growing in 2021, however, the company faced a challenging environment of higher inputs and merchandise costs. The company's retail revenues increased 25% during 2021 compared to 2020 driven mainly by higher sales of motorcycles, cell phones and appliances, as well as the opening of new stores and a growing contribution of online sales. In terms of profitability, Elektra's retail gross margin in 2021 decreased around 460bps compared to 2020 as industry wide disruptions related to supply chain and higher input prices increased the cost of inventory sold in stores. Fitch expects that Elektra's retail revenues will maintain a positive growth trend in 2022-2023, while profitability should recover as costs pressures are gradually reflected in pricing actions combined with hedging strategies and normalization of supply chain disruptions. Leverage Within Expectations: Fitch's analysis focuses primarily on Elektra's retail business and excludes its financial arm. Elektra's retail-only gross adjusted debt/EBITDAR was 3.9x at YE 2021, and adjusted net debt/EBITDAR was around 2.5x, considering cash and marketable securities. These metrics were higher than the 3.1x and 1.4x, respectively, at YE 2020, due to the issuance of NEM's USD500 million senior notes in 2021. Fitch projects that retail-only gross adjusted leverage will trend down to 3.7x in 2022 and 3.3x in 2023. In addition, retail-only adjusted net debt/EBITDAR is projected to be around 2.4x by 2022 and 2.2x in 2023. Using the captive finance adjustment, as per Fitch's criteria, Elektra's consolidated gross adjusted debt/EBITDAR had an important reduction to 2.7x at YE 2021, when compared to 5.0x at YE 2020. This was driven mainly by the normalization of Banco Azteca's operating income after being impacted by a large provision in 2020. The adjusted leverage ratio is expected to remain relatively stable in 2022 and trend below 2.5x in the next two to three years. When financial services (FS) activities are consolidated by a rated entity, Fitch's criteria assumes a capital structure for FS operations, which is strong enough to indicate that FS activities are unlikely to be a cash drain on retail operations over the rating horizon. Then the FS entity's debt proxy, or its actual debt (if lower), can be deconsolidated and the remaining debt used for credit metric calculations. Banco Azteca Complements Elektra's Business Model: The linkage between Elektra's retail and financial divisions is strong, as they depend on each other to complete service offerings to customers. The retail division complements its product sales by offering Banco Azteca credit services, while Banco Azteca maintains a strong base of customers derived from Elektra and Salinas y Rocha shoppers. Fitch's approach for Elektra's ratings incorporates the assessment of Elektra's credit profile considering potential future capital injections Banco Azteca might require from Elektra. Current assumptions consider no capital injections to Banco Azteca over the rating horizon. Banco Azteca's national Long-Term rating of 'A+(mex)'reflect its strong business profile and solid funding and liquidity assessment. In addition, the ratings incorporate the challenges in the financial performance in the last three years and the risks of the operating environment. The Negative Outlook in its rating contemplates a lower level of profitability for the business model that has resulted in weaker capital metrics when compared to previous years. Continued Positive FCF: Elektra's consolidated FCF has remained neutral to positive over the last eight years, despite increasing capex and varying economic cycles. The company's FCF was MXN10.3 billion in 2021, and Fitch expects it to continue to be positive across the rating horizon. Fitch estimates Elektra's capex for 2022 will be around MXN8 billion. Investments will mainly be focused on store opening and remodeling, as well as IT developments for the retail and banking operations to support its commercial strategy. Currency Exposure Mitigated: Although debt mainly consists of local currency issuances, some of Elektra's inventory is exposed to currency variations, as a portion of it is linked to the U.S. dollar. This could pressure profit margins for some products if this effect is not reflected in price increases, or might affect sales volumes if it is passed through prices. However, this exposure is mitigated by Purpose Financial's cash flows and money transfer fees collected in U.S. dollars. Elektra has partially covered its U.S. dollar cash flow exposure for 2022 by entering into forward and futures contracts. ESG - Governance Structure: Elektra has an ESG Relevance Score (RS) of '5' for Governance Structure. The company is owned by Ricardo Salinas and his family. Grupo Salinas has taken various actions that illustrate potential conflicts of interest through different treatment among different types of creditors. This includes TV Azteca's partial prepayment of its Mexican peso-denominated local bonds and non-payment to its U.S. dollar-denominated creditors. DERIVATION SUMMARY Elektra's ratings reflect the company's profile as a department store business focused in the mid- to low economic segment of the population in Mexico and other countries in Latin America. Elektra's stores scale is smaller than Lojas Americanas S.A. (BB/Negative) but larger than Grupo Unicomer (BB-/Positive), and it has one of the largest credit portfolios held by a retailer in the region. The company is more geographically diversified than Americanas but less than Unicomer; however, Mexico and the U.S. are the countries that generate most of Elektra's cash and have lower country risk than most of Unicomer's countries of operations, and Brazil, where Americanas is focused. Elektra's financial profile is adequate when compared with regional peers. The company has resilient operating cash flows in its retail division compared with other retailers and it has sound financial flexibility due to its high levels of cash and marketable securities. Elektra's retail business profitability above the average of Fitch's rated retailers globally, and its operating margins and liquidity are relatively similar to those of Americanas and higher than those of Unicomer. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Consolidated revenues grow an average of 9.2% annually in 2022-2025; -- Annual growth of 7.0% in banking deposits; -- Consolidated gross credit portfolio growth of 8.7% per year on average in 2022-2025; -- NPL provisions of MXN16.5 billion per year on average; -- Average annual capex of MXN9.3 billion; -- Dividend payments growing at 5% per year; -- The company refinances all of its current debt maturities. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- A sustained decrease in adjusted leverage and adjusted net leverage for the retail division to levels below 3.5x and 2.0x, respectively; -- Sustained consolidated adjusted debt to EBITDAR (as per Fitch's methodology) below 2.0x; -- A strengthening of the bank's creditworthiness coupled with solid performance of the retail business revenue, profitability and cash flow dynamics; -- Fitch's perception of a sustained track record of strengthening corporate governance practices over time. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Sustained adjusted debt to EBITDAR for the retail division above 4.0x; -- Sustained adjusted net debt to EBITDAR for the retail division above 3.0x (including readily available cash equivalents, as per Fitch's calculations); -- Sustained consolidated adjusted debt to EBITDAR (as per Fitch's criteria) above 3.0x; -- Deterioration in BAZ's creditworthiness; -- A further deterioration in corporate governance perception. 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 Sound Liquidity: At YE 2021, cash for the retail division was MXN5.7 billion and short-term debt was MXN14.4 billion, mainly composed of local issuances. In addition, the retail division had close to MXN10.8 billion of marketable financial instruments portfolio according to Fitch's calculations as of YE 2021. Fitch considers the cash and marketable securities at the retail business as readily available cash as there are no constrains in its disposition. ISSUER PROFILE Grupo Elektra was founded in 1950 as an electronics manufacturer and became, in 1957, a retailer. Elektra is one of the largest specialty retailing (1,179 stores in Mexico and 108 stores in Latin American), consumer finance and banking services companies in Mexico in terms of number of stores, branches and revenues. Elektra also operates in Guatemala, Honduras and Panama. The company operates in two main business segments: retail and financial services, which is mainly comprised of Banco Azteca. ESG CONSIDERATIONS Elektra has an ESG Relevance Score of '5' for Governance Structure due to ownership concentration and the company's related party's aggressive treatment toward different stakeholders and arrangements with related companies that benefit shareholders but impact creditor's interests. This has a negative impact on the credit profile, and is highly relevant to the rating, resulting in a one-notch downgrade. Elektra has an ESG Relevance Score of '4' for Financial Transparency due to the level of detail and transparency of financial disclosure, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. 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. STATE OF TAMAULIPAS: Moody's Withdraws 'Ba3' Issuer Rating ---------------------------------------------------------- Moody's de Mexico S.A.de C.V, has withdrawn the Ba3 (Global Scale, local currency) and A3.mx (Mexico National Scale) issuer ratings of the State of Tamaulipas. Moody's has also withdrawn the stable outlook and the ba3 baseline credit assessment (BCA). RATINGS RATIONALE Moody's has decided to withdraw the ratings for its own business reasons. The principal methodology used in these ratings was Regional and Local Governments published in January 2018. ===================== P U E R T O R I C O ===================== ECOLIFT CORPORATION: May 11 Plan Confirmation Hearing Set --------------------------------------------------------- On Jan. 14, 2022, debtor Ecolift Corporation filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Disclosure Statement referring to Chapter 11 Plan. On March 15, 2022, Judge Edward A. Godoy approved the Disclosure Statement and ordered that: * Acceptances or rejections of the Plan may be filed in writing by the holders of all claims on/or before 14 days prior to the date of the hearing on confirmation of the Plan. * Any objection to confirmation of the plan shall be filed on/or before 14 days prior to the date of the hearing on confirmation of the Plan. * The debtor shall file with the Court a statement setting forth compliance with each requirement in section 1129, the list of acceptances and rejections and the computation of the same, within 7 working days before the hearing on confirmation. * May 11, 2022 at 1:30 PM, via Microsoft Teams is the hearing for the consideration of confirmation of the Plan and of such objections as may be made to the confirmation of the Plan. A full-text copy of the order dated March 15, 2022, is available at https://bit.ly/3qjBFbo from PacerMonitor.com at no charge. Attorney for the Debtor: Carmen D. Conde Torres C. CONDE & ASSOC. San Jose Street #254, 5th Floor San Juan, P.R. 00901-1253 Tel: (787) 729-2900 Fax: (787) 729-2203 E-mail: condecarmen@microjuris.com About Ecolift Corp. Ecolift Corp. is a manufacturer of aircraft parts and equipment. Ecolift Corp. sought Chapter 11 protection (Bankr. D.P.R. Case No. 21-02751) on Sept. 17, 2021. In the petition signed by Ernesto Di Gregorio as president, Ecolift estimated assets of between $1 million and 10 million and liabilities of between $1 million and $10 million. Carmen D. Conde Torres, Esq., C. CONDE & ASSOC., is the Debtor's counsel. PUERTO RICO: Ankura Issues Statement on Plan Effectivity -------------------------------------------------------- Ankura Consulting, LLC, an independent global expert and advisory services firm, issued a statement regarding the effective date of the Commonwealth of Puerto Rico's Plan of Adjustment: On March 15, 2022, the Plan of Adjustment for the Commonwealth of Puerto Rico (the "Commonwealth" or "Puerto Rico") went effective. On January 18, 2022, U.S. District Court Judge Hon. Laura Taylor Swain approved the Plan of Adjustment that set the restructuring terms for approximately $34 billion of debt, which is the largest restructuring of municipal debt in U.S. history. The Plan of Adjustment paves the way for Puerto Rico to exit from bankruptcy with a stable and sustainable balance sheet. Through the implementation of the Plan of Adjustment, Puerto Rico reduces the total amount of central government debt from $34 billion to $7.4 billion; cuts Puerto Rico's maximum annual debt service payments from a maximum of $4.2 billion to $1.15 billion; and lowers per capita debt by 86%. "This is a great collective achievement for Puerto Rico, thanks to the fiscal and economic team of the Government, the Legislature, the Financial Oversight and Management Board (the "Oversight Board"), and all those who have worked over the past five years to get to this historic moment," said Fernando Batlle, Ankura's Chairman of Latin America, who is leading all aspects of Ankura's advisory work for the Government. He continued, "The consummation of the Commonwealth Plan of Adjustment is the 'reset' button for Puerto Rico and starts a new era of fiscal stability with new opportunities to shape a successful, modern economy." Philip Gund, Global Leader of Ankura's Turnaround & Restructuring practice, commented, "Fernando and the Ankura team worked collaboratively with the Government, the Fiscal Oversight Board and its constituencies and advisors while keeping the best interests of the Commonwealth at the forefront of the restructuring." In addition to the rightsizing of the Commonwealth's balance sheet, the Plan of Adjustment also includes elements that promote and ensure that the Commonwealth maintains fiscally responsible policies and avoids the mistakes of the past, including: the establishment of debt management guidelines that govern future public indebtedness and the establishment and funding of a pension reserve trust to meet future pension obligations. Kevin Lavin, CEO of Ankura, remarked, "The Plan of Adjustment puts Puerto Rico on a path to grow again the Island's economy, encouraging investment by restoring investors' confidence in Puerto Rico, which in turn will promote economic development and job creation." He continued, "We are honored to have been involved in this historic moment, and as our team continues to advise the Government in other initiatives, our goal will continue to be the betterment of the Commonwealth and its people." About Ankura Ankura Consulting Group, LLC -- http://www.ankura.com/-- is an independent global expert services and advisory firm that delivers services and end-to-end solutions to help clients at critical inflection points related to change, risk, disputes, finance, performance, distress, and transformation. The Ankura team consists of more than 1,700 professionals serving 3000+ clients across 55 countries who are leaders in their respective fields and areas of expertise. Collaborative lateral thinking, hard-earned experience, expertise, and multidisciplinary capabilities drive results and Ankura is unrivaled in its ability to assist clients to Protect, Create and Recover Value. 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. * * * The two Title III plans of adjustment have been confirmed to date, for the Commonwealth and COFINA debtors. PUERTO RICO: Mammoth Energy Comments on Bankruptcy Developments --------------------------------------------------------------- Mammoth Energy Services, Inc. on March 14, 2022, issued the following statement in response to Puerto Rico's governor Gov. Pedro Pierluisi's attempt to terminate the $8.3 billion dollar bankruptcy agreement that would have allowed the Puerto Rico Electric Power Authority ("PREPA") to emerge from bankruptcy and pay its creditors: "This is yet another example of Puerto Rico and PREPA continuing their resistance to pay their bills. I commend Judge Laura Taylor Swain for directing the Puerto Rico Fiscal Management and Oversight Board ("FOMB") to advance a new deal for PREPA immediately. While PREPA has begun addressing amounts owed to post-bankruptcy creditors, Mammoth's subsidiary Cobra Acquisitions LLC ("Cobra") is still owed more than $340 million dollars for work completed nearly three years ago. PREPA is running out of excuses, and it is well past time for them to make their creditors whole," said Arty Straehla, Chief Executive Officer of Mammoth. During a recent meeting of the FOMB in Puerto Rico, board member Justin Peterson made the following comments on the need to hold PREPA accountable: https://www.youtube.com/watch?v=0p3iRwyOfs8 JUSTIN PETERSON: "As some of you know, who follow me on Twitter, I have called attention to this matter because I think it is important that PREPA be held accountable. Just so everybody understands that I had the opportunity to have lunch with Arty Straehla, who is the CEO of Mammoth in DC one day he came to see me. So, after the hurricane when Puerto Rico needed help, they called these guys, and they you know on a moment's notice deployed people to help bring emergency restoration to the grid and they were paid some and but not all and PREPA continued to run the meter and ask a lot of this company who swung into action and did what it was contracted to do, and they haven't been paid. And so I agree with everything our chairman said that you know we want to work with FEMA and work with the process and make sure that everything that deserves to be paid is paid but I just I just want to underscore for everybody what these guys did and I also want to underscore that something that you said which is that when Members of Congress have asked FEMA are you telling PREPA not to pay these guys and FEMA'S denied it and so again you know maybe more fake news that we have to deal with that we have to look into but thank you for your comments." Following Hurricane Maria (September 2017) in Puerto Rico and its complete destruction of the island's power grid, Mammoth, through Cobra, was awarded an initial $200 million restoration contract in 2017. Through five separate amendments to the original contract, the aggregate contract amount was eventually increased to $945 million. PREPA awarded a second contract of up to $900 million to Cobra in response to a Request for Proposals ("RFP") process. As of February 28, 2022, Mammoth, through Cobra, is owed $344 million including $117 million in interest charges, as specified in the contract, on remaining invoices for work Cobra completed nearly three years ago. Mammoth Energy Services, Inc. Mammoth (NASDAQ: TUSK) -- http://www.mammothenergy.com-- is an integrated, growth-oriented energy services company focused on the construction and repair of the electric grid for private utilities, public investor-owned utilities and co-operative utilities through its infrastructure services businesses. The Company also provides products and services to enable the exploration and development of North American onshore unconventional oil and natural gas reserves. Mammoth's suite of services and products include: infrastructure services, well completion services, natural sand and proppant services, drilling services and other energy services. 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. * * * The two Title III plans of adjustment have been confirmed to date, for the Commonwealth and COFINA debtors. ===================================== T R I N I D A D A N D T O B A G O ===================================== UNILEVER: To Stop Manufacturing in T&T From July ------------------------------------------------ Andrea Perez-Sobers at Trinidad Express reports that UNILEVER Caribbean Ltd will stop all manufacturing and production operations in Trinidad at the end of July, which will result in 119 workers being placed on the breadline. In a news release, Unilever confirmed that its supply agreement with a third party, which came into effect after the sale of its spreads business in 2018 as a key part of its global strategy, means manufacturing and production will cease at its Champs Fleurs factory, according to Trinidad Express. "This finalizes the sale and transition of the spreads business to its new owner. UCL has operated strictly in accordance with its legal requirements when deliberating such actions and as a consequence initiated consultation with the Oilfields Workers' Trade Union (OWTU), the recognized majority union for workers employed by the company," the statement said, the report notes. The company noted that it carefully considered the impact of these business decisions on its people, and their livelihoods -- and is committed to supporting them during this challenging time, the report relays. "The company will continue to operate in Trinidad and Tobago with a more fit-for-purpose business model focused on sales, marketing and supply chain-and remains committed to delivering superior performance and driving sustainable and responsible growth," UCL added, the report discloses. UCL's OWTU representative, Neil McEachnie, told the Express that 119 unionized workers would be affected. McEachnie said the move to stop manufacturing in T&T did not come as a surprise as they had been expecting it since 2019, when over 150 workers were retrenched following a restructuring at the company, the report discloses. "Somewhere around 2019, the company would have indicated that they intended to exit manufacturing and that they had implemented the first phase of a two-phase retrenchment exercise," McEachnie said, the report relays. He said Unilever stopped manufacturing liquid and powder detergent in 2019. That left the facility only producing spreads margarines, such as Blue Band, the report notes. That spreads business will stop on July 31, the report says. He indicated that the workers who were not dismissed then had only remained on staff due to the agreement, which will end in July, the report relays. "They do have a co-packing agreement with a company that purchased their spreads business globally for five more years. And as a consequence of that, they retained such employees as were necessary, to fulfill the requirements of that contract. That contract, based on information provided from Unilever, will expire in July of this year," McEachnie stressed, the report discloses. Asked how the workers were taking the news, especially in light of economic constraints caused by the pandemic, the union representative said the workers are saddened and anxious, as the labour market is not that great now, 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 2022. 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 * * *