/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/220502.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, May 2, 2022, Vol. 23, No. 81 Headlines A R G E N T I N A ARGENTINA: Will Not Modify $45BB Debt Deal With IMF YPF ENERGIA: S&P Affirms 'CCC+' ICR, Outlook Stable B O L I V I A BANCO NACIONAL DE BOLIVIA: Moody's Withdraws B2 Deposit Ratings B R A Z I L BRAZIL: Extends Reduction of Taxes on Industrial Products to 35% BRAZIL: Federal Public Debt Recedes to US$1.1 Trillion in March CENTRAIS ELETRICAS: Moody's Affirms 'Ba2' CFR, Outlook Stable ELDORADO BRASIL: Moody's Hikes CFR to Ba3, Outlook Stable [*] BRAZIL: Ends April With 4% Diesel Price Increase C H I L E LATAM AIRLINES: Amends RCF & Spare Engine Claims Pay Details J A M A I C A PETROJAM: Production Halted Following Electrical Fire T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: T&T SEC in Breach of Securities Act TRINIDAD PETROLEUM: Moody's Withdraws 'Ba3' CFR, Outlook Stable X X X X X X X X [*] BOND PRICING: For the Week April 25 to April 29, 2022 - - - - - ================= A R G E N T I N A ================= ARGENTINA: Will Not Modify $45BB Debt Deal With IMF --------------------------------------------------- Reuters reports that Argentine economy minister Martin Guzman said that the $45 billion debt deal with the International Monetary Fund will not be modified, following a meeting with IMF head Kristalina Georgieva. "We are not going to change the goals of the program with the IMF," Guzman told local media, according to Reuters. The South American country's center-left Peronist government led by President Alberto Fernandez struck a staff-level agreement with the international lender at the beginning of March to avoid a default, the report notes. The deal lays out a fresh schedule of financing over a 30-month period to replace a failed $57 billion program from 2018 that the grains-producing country was unable to pay back after years of recession, spiraling inflation and capital flight, the report relays. However, Guzman cautioned without giving more details that there will be a change in emphasis to focus on the social safety net due to the fallout from the Russian invasion of Ukraine which has triggered worldwide inflation, the report says. Argentina has long suffered from extremely high inflation, the report discloses. However, the war has increased price surges in Argentina as well as much of Latin America. Argentina's 2021 inflation hit above 50%, 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. Fitch Ratings has affirmed Argentina's Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at 'CCC' on April 14, 2022. 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. 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 upgrade in Argentina's ratings in 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. Argentina obtained on March 25, 2022, approval from the Executive Board of the International Monetary Fund (IMF) of a 30-month extended arrangement under the Extended Fund Facility (EFF) amounting to SDR 31.914 billion (equivalent to US$44 billion). Under the new terms, Argentina secured a much-needed grace period that postpones repayment of its debt. However, IMF warned of exceptionally high risks to the program. YPF ENERGIA: S&P Affirms 'CCC+' ICR, Outlook Stable --------------------------------------------------- On April 28, 2022, S&P Global Ratings affirmed its issuer credit and issue-level ratings on Argentine power generation company YPF Energia Electrica S.A. (YPFEE) at 'CCC+', which are the same as its 'CCC+' transfer and convertibility assessment (T&C) of Argentina. S&P also maintained YPFEE's stand-alone credit profile (SACP) at 'b-'. The outlook on YPFEE remains stable and mirrors that on the sovereign. It also incorporates the company's significant reduction in leverage following the satisfactory ramp-up of new plants and S&P's expectation of a modest and gradually falling leverage in the next 12 months, as seen in debt to EBITDA of 2.5x. YPFEE has met its commitments in the past two years. After completing three projects with a total installed capacity of 411 megawatts (MW) in 2020 (the El Bracho steam turbine, La Plata Cogeneration II, and the Los Teros I wind farm), the company also finished three more projects totaling 233 MW in 2021. As a result, EBITDA increased and leverage fell due to increased cash flows from greater electricity output, debt amortizations, and lower capital expenditures (capex). Therefore, in S&P's view, YPFEE's debt repayment capacity has strengthened. S&P said, "In the next two years, despite the industry and economic headwinds, and capex for a new solar plant in San Juan, we expect YPFEE's EBITDA to rise to the range of $300 million - $320 million from $298 million in 2021 and about $200 million in 2020. Therefore, as YPFEE continues servicing its debt, we expect debt to EBITDA to decrease to close to 2x in the next two years from 5.5x in 2020 and less than 3x in 2021. Moreover, we expect the company to post positive free operating cash flows in the short to medium term. "Although YPFEE expanded its capacity under power purchase agreements (PPAs), reducing exposure to base energy (more susceptible to adverse regulatory interventions, in our view), the company remains heavily exposed to the electricity market administrator, Compañía Administradora del Mercado Mayorista Eléctrico S.A. (CAMMESA; slightly above 60% of the company's revenue). Also, all of YPFEE's operations are in Argentina. We believe this exposes the company to worsening business conditions, which we expect to remain so for the next one to two years, including restrictions on accessing foreign exchange markets, the currency's depreciation, and spiking interest rates and inflation. In addition, we consider the overall regulatory framework for utilities in Argentina as opaque and lacking predictability and stability, as seen in abrupt changes and negative government interventions. Finally, we now also incorporate the uncertainty over the availability of natural gas in the country (the company's thermal-based generation matrix accounts for 80% of its installed capacity) amid higher prices and demand, which is out of YPFEE's control. On this basis, we're currently keeping the SACP unchanged at 'b-' and we continue to cap the rating on the company at our assessment of Argentina's T&C." ESG credit indicators: E-3, S-3, G-3 ============= B O L I V I A ============= BANCO NACIONAL DE BOLIVIA: Moody's Withdraws B2 Deposit Ratings --------------------------------------------------------------- Moody's Investors Service has withdrawn all ratings and assessments assigned to Banco Nacional de Bolivia S.A. Before the withdrawal, the outlook on the deposit ratings was negative. Withdrawals: Issuer: Banco Nacional de Bolivia S.A. Baseline credit assessment, Withdrawn, previously rated b2 Adjusted baseline credit assessment, Withdrawn, previously rated b2 Long-term local and foreign currency deposit ratings, Withdrawn, previously rated B2; outlook changed to Ratings Withdrawn from Negative Long-term local currency counterparty risk rating, Withdrawn, previously rated B1 Long-term foreign currency counterparty risk rating, Withdrawn, previously rated B2 Long-term counterparty risk assessment, Withdrawn, previously rated B1(cr) Short-term local and foreign currency deposit rating, Withdrawn, previously rated Not Prime Short-term local and foreign currency counterparty risk ratings, Withdrawn, previously rated Not Prime Short-term counterparty risk assessment, Withdrawn, previously rated Not Prime(cr) Outlook Actions: Issuer: Banco Nacional de Bolivia S.A. Outlook, Changed To Ratings Withdrawn From Negative RATINGS RATIONALE Moody's has decided to withdraw the ratings for its own business reasons. Banco Nacional de Bolivia S.A. is headquartered in La Paz, Bolivia, with assets of Bs.31.6 billion and shareholders' equity of Bs.2.1 billion as of December 31, 2021. =========== B R A Z I L =========== BRAZIL: Extends Reduction of Taxes on Industrial Products to 35% ---------------------------------------------------------------- Rio Times Online reports that the Ministry of Economy was to hold a meeting with journalists last April 29 about the extension of the reduction of IPI (tax on industrial products) from 25% to 35%. The Special Secretary for Productivity and Competitiveness (Sepec), Daniella Marques, and the head of the Center for Tax and Customs Studies of the Federal Treasury, Claudemir Malaquias, was to participate in the conversation, according to Rio Times Online. Starting May 1, the lower rate will apply to cars, appliances of the so-called "white line", the report discloses. President Jair Bolsonaro (PL) signed the decree with the amendment, the report adds. 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). BRAZIL: Federal Public Debt Recedes to US$1.1 Trillion in March --------------------------------------------------------------- Rio Times Online reports that Brazil's federal public debt fell 2.89% in March, closing the month at BRL5.56 trillion (US$1.1 trillion). The result was published on April 28 by the National Treasury, according to Rio Times Online. According to Brazil's National Treasury, the public debt stock showed a reduction of BRL165.4 billion (US$33.3 billion) in March when compared to the previous month, the report relays. In February, the debt had risen 2.03%, reaching BRL5.73 trillion, the report discloses. 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). CENTRAIS ELETRICAS: Moody's Affirms 'Ba2' CFR, Outlook Stable ------------------------------------------------------------- Moody's Investors Service affirmed Centrais Eletricas Brasileiras SA–Eletrobras (Eletrobras) corporate family rating at Ba2. At the same time, Moody's upgraded the company's baseline credit assessment (BCA) to ba2 from ba3. The outlook on the ratings remains stable. Affirmations: Issuer: Centrais Eletricas Brasileiras SA-Eletrobras Corporate Family Rating, Affirmed Ba2 Upgrades: Issuer: Centrais Eletricas Brasileiras SA-Eletrobras Baseline Credit Assessment, Upgraded to ba2 from ba3 Outlook Actions: Issuer: Centrais Eletricas Brasileiras SA-Eletrobras Outlook, Remains Stable RATINGS RATIONALE The upgrade of Eletrobras' BCA to ba2, reflects the company's improved standalone credit profile following its business turnaround initiatives implemented in the last few years with a more disciplined financial approach, underpinning a gradual and sustainable strengthening of the company's credit metrics. Moody's expects Eletrobras to demonstrate continued financial strength under different scenarios, such that financial metrics will exceed the parameters set for the previous BCA level. The upgrade also incorporates the company's adequate liquidity position and long debt maturity profile. For the twelve months ended December 2021, Eletrobras' consolidated leverage as measured by the cash flow from operations pre-working capital (CFO pre-WC) to net debt ratio reached 25%, up from 16% in the three-year average between 2019 and 2020. At the same time, the cash interest coverage has improved to 2.9x from 2.6x. The improvement relates to the business restructuring, along with enhanced controls and other initiatives to support operating efficiency gains, leading to a recurring EBITDA around BRL15-20 billion per year in the projected period, as per Moody's standards. The rating's scenario considers that the (CFO pre-WC) to net debt ratio will remain in the 25% to 30% range through 2026 with the interest coverage in the 3.0x to 3.5x range. On the other hand, Eletrobras' credit profile remains pressured by its negative free cash flow generation stemming from the large capital spending plan, currently budgeted at BRL39 billion from 2022-26, and the execution risks associated with the completion of the Angra III nuclear plant. Balancing those pressures is Eletrobras' adequate liquidity position and track record of access to diversified funding sources, including debt issuances in the local and foreign capital markets, and loans from commercial and development banks. As of December 2021, the company reported BRL15.8 billion of short-term cash and cash equivalents compared to BRL9 billion in debt obligations through December 2022. Eletrobras' total outstanding debt was approximately BRL51.3 billion according to Moody's standard adjustments, not including BRL29.9 billion in off-balance guarantees to debt issued by unconsolidated subsidiaries and contingencies of approximately BRL15 billion. The largest off-balance exposure is a BRL13.8 billion debt guarantee related to its 35% indirect interest in the UHE Belo Monte, an 11.2 GW hydropower plant that is fully operational since November 2019. As a government-related issuer, Eletrobras' Ba2 corporate family rating takes into consideration the application of Moody's Joint Default Analysis. This framework incorporates assumptions of high interdependence with the Government of Brazil (Ba2 stable), the controlling shareholder, and a moderate level of support. Moody's view on the support considers Brazil's fiscal consolidation efforts and potential budget restrictions, which could hinder timely financial support should Eletrobras face a financial distress. However, we expect that some level of support from the federal government would still be forthcoming because of the company's relevance as the main electric company in Brazil, accounting for 28% of the country's generation capacity and 40.2% of the installed transmission lines, hence with a strategic position for regional and economic development. Historically, evidence of support from the sovereign has been in the form of cash transfers for equity increase, deferral on dividend payments, debt guarantees, and loans granted from state owned banks. The government's plan to materially dilute its participation in Eletrobras to less than 45% through an equity offering, presents some opportunities to further improve the company's credit profile. In Moody's view, the capitalization plan would help to improve the profitability of its generation business based on the repricing of certain contracts, while also reducing the exposure to nuclear projects. Also, it could drive a continued improvement in corporate governance, provided by the broadly distributed control and more flexibility on management's ability to make business overall decisions. Still, the capitalization scenario does not incorporate significant changes to the capital structure, as the anticipated proceeds of the equity increase would not necessarily translate into leverage reduction. Instead, the additional cash for the company should be primarily used to support incremental government fees and sector charges. The final terms and conditions for this capitalization plan remain ongoing, as such Moody's has not incorporated any potential implications of this plan into Eletrobras' ratings at this time. A successful completion of the capitalization will lead us to reassess the assumptions on the dependence and support levels coming from Brazil's government, in the context of potential changes to its financial and business profile. RATIONALE FOR THE OUTLOOK The stable outlook on Eletrobras' ratings follows the stable outlook on the Ba2 rating assigned to the Government of Brazil, given the strong credit linkages between the company and the sovereign. It also incorporates Moody's view that the company's stand-alone credit profile will be maintained over the next 12 to 18 months. ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS Eletrobras´ ESG attributes are overall considered as having a limited impact on the current rating. The company has a moderate exposure to environmental risks, reflected in the E-3 issuer profile scores mainly driven by its exposure to physical climate risks, mostly in the form of extreme weather patterns. The moderate negative exposure for waste & pollution due to the company´s operation of some nuclear power plants also weighs on the risks. Social risk exposure is also moderate (S-3 issuer profile score) reflecting the risk that demographic and societal trends could lead to adverse regulatory political intervention, broadly in line with other utilities in Latin America region. The moderate governance score (G-3 issuer profile) is mainly due to ownership concentration and moderate exposure to financial strategy and risk management reflected in the large investment plan. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of Eletrobras' Ba2 rating would depend on a similar action on Moody's ratings on the government of Brazil. Quantitatively, positive rating pressure would materialize if the CFO pre-WC to total net debt ratio stays above 30%, or the interest coverage Ratio approaches 4.2x on sustained basis. Negative rating pressure could result from a deterioration in the company's liquidity or leverage profile resulting from unexpected cash outlays such as compulsory loans, additional investments, extraordinary dividend distributions or material deterioration in its operating performance. Moody's would consider a downgrade if such pressures were not mitigated by an extraordinary financial support from its shareholders. Deterioration in the sovereign's credit quality or perception of weakened governance could also prompt a downward action. Quantitatively, the rating could be downgraded if the CFO pre-WC to total net debt ratio falls below 20%, or the interest coverage Ratio remains below 2.8x on sustained basis. Headquartered in Rio de Janeiro, Eletrobras is a holding company controlled by Brazil's federal government with 51.8% of Eletrobras' voting capital and 42.6% of its total capital. Eletrobras is the country's largest energy company with a total installed capacity of 50.5 gigawatts (GW), equivalent to 28% of Brazil's total power generation segment and interests on a total of 68,357 kilometers (km) high voltage transmission lines, equivalent to 40% of the country's electricity network. Investments are held mainly under separate subsidiaries, being Furnas, Chesf and Eletronorte the largest ones. In the last twelve months ended June 30, 2020, the company's adjusted net revenues reached BRL37.5 billion, of which 58% derived from the generation business and 42% from the transmission segment. The methodologies used in these ratings were Unregulated Utilities and Unregulated Power Companies published in May 2017. ELDORADO BRASIL: Moody's Hikes CFR to Ba3, Outlook Stable --------------------------------------------------------- Moody's Investors Service upgraded to Ba3 from B1 the Corporate Family Rating of Eldorado Brasil Celulose S.A. The outlook is stable. Upgrades: Issuer: Eldorado Brasil Celulose S.A. Corporate Family Rating, Upgraded to Ba3 from B1 Outlook Actions: Issuer: Eldorado Brasil Celulose S.A. Outlook, Remains stable RATINGS RATIONALE Eldorado's rating upgrade to Ba3 reflects the company's improved liquidity risk resulting from significant progress over the last year in reducing short term debt and extending maturities, despite the uncertainty resulting from the ongoing shareholder dispute. The Ba3 rating also reflects the company's strong operating performance, comparing well with peers in this rating category. The rating is also supported by Eldorado's efficient operations and low-cost profile, which reflects the quality of its assets and its vertically integrated production process, including its state-of-the-art production plant, privileged location, forest availability and self-sufficiency in wood and energy. The rating also considers Eldorado's position as the second largest producer of market pulp in Brazil, after Suzano. The rating is constrained by the Eldorado's relatively small scale and susceptibility to event risk, driven by its single-plant operations and limited operational diversification. Operations are concentrated in the state of Mato Grosso do Sul, in the central part of Brazil, an area well suited for growing eucalyptus trees. Nevertheless, Eldorado's ability to control input costs partially compensates for the risk of operating primarily in a single commodity product and in a single location. Eldorado's unbalanced capital structure has also been a rating constraint since the shareholders' litigation started, compromising the company's ability to implement liability management initiatives necessary to lengthen its debt maturity profile and manage liquidity risk. Over the course of 2021, however, despite the still ongoing shareholders' dispute, Eldorado was able to reduce refinancing risk and improve its capital structure. Total debt decreased by approximately BRL1.5 billion following the amortization of the $350 million senior unsecured notes due in June 2021 and prepayment of the balance of BNDES loans, partly financed by the issuance of debentures. The company issued a total of BRL1.2 billion in new debentures and CRA in 2021, demonstrating good access to the local markets. At year-end 2021, short-term debt decreased to 15% of total, compared to 73% at year-end 2020. However, 2023 maturities still need to be addressed and Moody's expects a plan to be in place by the end of 2Q22. Given that Eldorado's expansion plans have been put on hold until the shareholders' dispute is resolved, Moody's expects the company to continue to direct internal cash generation to debt amortization and prepayments. Moody's expects total debt to decrease to around BRL4.5 billion at the end of 2022 and around BRL3.5 billion at the end of 2023, supported by positive free cash flow generation above BRL1.0 billion in 2022 and 2023. The stable outlook reflects the expectation that Eldorado will continue to seek improvement in its capital structure and reduction in leverage over the rating horizon. Moody's also expects that the company will benefit from positive fundamentals in the market pulp segment in the next 12 to 18 months and will use excess cash generation to reduce debt, while extending maturities. More specifically, Moody's expects Eldorado to address 2023 maturities in a timely manner. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING An upward rating movement would require Eldorado to gain scale and increase cash flows diversification by source (different segments) and/or geography (asset location). The company would also need to continue to improve its liquidity profile and capital structure, while maintaining its competitive cost position and low leverage. Quantitatively, an upgrade of the company's rating would depend on: leverage below 3.0x Moody's adjusted total debt/EBITDA on an ongoing basis; Moody's adjusted retained cash flow to debt above 20% on an ongoing basis; and positive FCF generation and interest coverage, measures as adjusted EBITDA/interest expense, above 6x on a sustained basis. The rating or outlook could suffer negative pressure if Eldorado is not able to continue to improve its liquidity profile and extend debt maturities currently concentrated in 2023 and 2024. In addition, a downward movement could happen if a deterioration in the shareholders' dispute process adversely impacts the company's ability to access adequate financing again, locally or abroad. Quantitatively, negative pressure on the rating would result from: leverage, measured as total adjusted debt/EBITDA, trending towards 4x or above, and interest coverage, measured as adjusted EBITDA/interest expense, remaining below 4x on a sustained basis, significant deterioration in the company's operating performance or persistently low or negative free cash flow generation. The principal methodology used in this rating was Paper and Forest Products published in December 2021. Headquartered in São Paulo, Brazil and with operations in Tres Lagoas, Mato Grosso do Sul, Eldorado Brasil is a key player in the global pulp markets, with an installed capacity of 1.5 million tons of hardwood pulp (1.7 million tons nominal capacity) and very competitive cash cost, supported by an extensive forest base of more than 230,000 hectares in the state of Mato Grosso do Sul. Eldorado is owned by J&F Investimentos S.A. (50.59%) and CA Investment (Brazil) SA, subsidiary of Paper Excellence (49.4%). Eldorado started operations in December 2012 and reported revenues of BRL6.0 billion (USD 1.12 billion) in December 2021. [*] BRAZIL: Ends April With 4% Diesel Price Increase ---------------------------------------------------- Rio Times Online reports that the average price of diesel at service stations in Brazil rose 4.05% in April compared to March, to R$6.870 (US$1.39) per liter, according to a survey conducted by Ticket Log, the fleet management and mobility solutions brand of Edenred Brazil. The Ticket Log Price Index (IPTL) also showed that S-10 diesel increased 3.75% in the period, reaching R$6.993 per liter, the report notes. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Jair Bolsonaro is the current president, having been sworn in on Jan. 1, 2019. 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). ========= C H I L E ========= LATAM AIRLINES: Amends RCF & Spare Engine Claims Pay Details ------------------------------------------------------------ LATAM Airlines Group S.A. ("LATAM Parent") and certain of its debtor affiliates submitted a Sixth Revised Joint Plan of Reorganization and Disclosure Statement dated April 24, 2022. The Sixth Revised Plan reflects revisions based on, among other things, changes to the treatment of Class 1 Claims. Class 1 consists of RCF Claims against each RCF Obligor. The RCF Claims are Allowed as Secured Claims in an aggregate amount calculated as follows: (x) $600 million plus (y) accrued and unpaid interest up to and including the Effective Date at the rate required under the RCF Adequate Protection Stipulation plus (z) fees, costs, expenses, and other amounts accrued under and in accordance with the RCF Documents, in each case, excluding any interest that the Debtors are not required to pay on a current basis under the RCF Adequate Protection Stipulation. The Allowed RCF Claims and any payments under the RCF Adequate Protection Stipulation shall not be subject to any avoidance, reduction, setoff, recoupment, recharacterization, subordination (equitable, contractual, or otherwise), counterclaim, defense, disallowance, objection, or any challenges under applicable law or regulation. On the Effective Date each Holder of an Allowed Class 1 Claim shall receive in full satisfaction, settlement, discharge, and release of its Allowed Class 1 Claim a distribution pursuant to Class 1b Treatment, unless (x) such Holder elects Class 1a Treatment or (y) agrees to such other less favorable treatment as to which the Debtors and the Holder of such Allowed Class 1 Claim shall have agreed upon in writing: * Class 1a Treatment. If a Holder of an Allowed Class 1 Claim elects to receive Class 1a Treatment pursuant to the procedures set forth in the Disclosure Statement Supplemental Order, such Holder of such Allowed Class 1 Claim(s) shall receive (a) a distribution in Cash equal to the Allowed amount of such Claim(s) (solely to the extent not otherwise paid by the Debtors prior to the Effective Date) and (b) its Pro Rata share of the RCF Tranche A Exit Loans. * Class 1b Treatment. If a Holder of an Allowed Class 1 Claim elects to receive Class 1b Treatment pursuant to the procedures set forth in the Disclosure Statement Supplemental Order or does not make any election regarding Class 1a Treatment or Class 1b Treatment, such Holder of such Allowed Class 1 Claim(s) shall receive (a) a distribution in Cash equal to the amount of all interest, fees, costs, and expenses that have been Allowed on account of such Allowed Claim(s) (solely to the extent not otherwise paid by the Debtors prior to the Effective Date) and (b) its Pro Rata share of the RCF Tranche B Exit Loans. For the avoidance of doubt, the Debtors shall continue to pay all amounts that may come due on or before the Effective Date in accordance with the RCF Adequate Protection Stipulation. Class 2 consists of Spare Engine Facility Claims against the Spare Engine Facility Borrower. The Spare Engine Facility Claims are Allowed as Secured Claims in the aggregate principal amount of no less than $[273.2 million], plus (x)(i) accrued and unpaid interest up to and including the Effective Date at the rate required under the Spare Engine Facility Adequate Protection Stipulation, plus (ii) interest calculated at the Post-Default Rate (as defined in the Spare Engine Facility Agreement) from and after June 29, 2021 (less any amounts paid under the preceding clause (x)(i)), plus (iii) $2 million, and (y) fees, costs, expenses, and other amounts accrued under and in accordance with the Spare Engine Facility Documents. On the Effective Date an Allowed Class 2 Claim shall receive in full satisfaction, settlement, discharge, and release of its Allowed Class 2 Claim (x) Cash equal to the amount of such Allowed Class 2 Claim in connection with the refinancing of the Spare Engine Facility Claims pursuant to the terms of the Revised Spare Engine Facility Agreement or such other less favorable treatment as to which the Debtors and the Holder of such Allowed Class 2 Claim shall have agreed upon in writing. For the avoidance of doubt, the Debtors shall continue to pay all amounts that may come due on or before the Effective Date in accordance with the Spare Engine Facility Adequate Protection Stipulation. The Debtors and Reorganized Debtors, as applicable, shall fund distributions under the Plan with: (i) Cash on hand, including Cash from operations or asset dispositions; (ii) Cash proceeds from the subscription of ERO New Common Stock pursuant to the ERO Rights Offering Procedures (including the subscription of ERO New Common Stock by Eligible Equity Holders during the ERO Preemptive Rights Offering Period), (iii) the New Convertible Notes Class A (and the Cash proceeds from the sale by the Sales Agent of the New Convertible Notes Class A that would otherwise be distributed to Ineligible Holders of General Unsecured Claims against LATAM Parent), (iv) the New Convertible Notes Class C, (v) the Cash proceeds from the subscription of the New Convertible Notes (including any Cash proceeds from the subscription of the New Convertible Notes Class A and New Convertible Notes Class C by Eligible Equity Holders during the New Convertible Notes Preemptive Rights Offering Period above the Allowed Class 5a Treatment Cash Amount), (vi) the RCF Tranche B Exit Loans and (vii) the proceeds of the Exit Financing. Counsel for the Debtors: CLEARY GOTTLIEB STEEN & HAMILTON LLP Richard J. Cooper Lisa M. Schweitzer Luke A. Barefoot Thomas S. Kessler One Liberty Plaza New York, New York 10006 Telephone: (212) 225-2000 Facsimile: (212) 225-3999 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. ============= J A M A I C A ============= PETROJAM: Production Halted Following Electrical Fire ----------------------------------------------------- RJR News reports that production remains stalled at the state owned oil refinery Petrojam, after a small electrical fire at the facility. Equipment, including pumps, were damaged, prompting a halt in operations as a precaution, according to RJR News. However, Petrojam has sought to assure the public that the damage will not affect the supply of petroleum products to the market, the report notes. Technical safety experts are conducting an assessment to find the cause of the fire, the company said, the report relays. It added that the assessment will determine when production will resume, the report adds. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: T&T SEC in Breach of Securities Act ------------------------------------------------------ Trinidad Express reports that the Trinidad and Tobago Securities and Exchange Commission (T&T SEC) has breached its Act by not submitting its 2021 financial statements on time to the Ministry of Finance. Zephyrine, who is the Director-Strategic Management and Execution Office at the Ministry of Finance, told the meeting of the Public Accounts Committee (PAC) that there was a difference of opinion between the T&T SEC and its auditors which has resulted in the financial statements being incomplete at this point, according to Trinidad Express. She said when the T&T SEC received the management letter from its auditors, there "were some matters in the final opinion of the auditors that we were not totally in agreement with and we had a little thing and froing with the auditors and we have since settled on it. And actually that's the reason for the delay," she said, the report notes. T&T SEC chair Enid Zephyrine blamed it on the institution's auditors -- Deloitte and Touche, the report discloses. The T&T SEC's financial year ends in September, the report notes. Section 20 of the Securities Act 2012 states: "The Commission shall within four months of the end of its financial year send an annual report of its activities which shall include its annual audited financial statements to the Minister who shall cause it to be laid in Parliament within three months of receipt of the report," the report says. That means the T&T SEC's annual report for 2021 should have been sent to the Minister of Finance by the end of January, the report relates. Asked by the chair of the PAC, Davendranath Tancoo, what was the status of the T&T SEC's submission of the institution's 2021 annual report to the Ministry of Finance, Zephyrine responded: "The financial statements for 2021 have been submitted to the Ministry of Finance," the report notes. Questioned by Tancoo on the date of submission of the annual report, Zephyrine asked the CEO of the T&T SEC, Lystra Lucillio, "to speak to the date, the exact date," the report says. In her response, Lucillio contradicted the T&T SEC chair, pointing out that the annual report have not been submitted to the Ministry of Finance as yet, the report relays. "The 2021 financials are actually still being completed. We have signed off on it and it is with our auditors. We hope to get everything to the Ministry of Finance within the month of May. We have reached the final stages of the submission," said Lucillio, the report discloses. Tancoo noted that the T&T SEC should have completed the statement and submitted it to the Minister of Finance for his further submission to the Parliament, the report says. Asked to clarify the issues with the auditors, Zephyrine said: "One of the main issues is the Commission had not received the management letter in connection with the audit. "The management letter requires that the Commission makes its comments on issues identified during the audit period. And until that letter comes to the Commission and is discussed with the finance committee and approved by the board, we would not be able to sign off on those financials because that is what tells the story coming out of the matters raised during the audit process. So that's basically it. And, of course, that management letter would have included the issues that we were not totally in agreement with the auditors about, and which would impinged on the nature of the opinion" said Zephyrine, the report discloses. Zephyrine said one of the SEC's proposed actions to address this matter was to change Deloitte as the institutions' auditors, the report says. "We felt that having considered all the issues around meeting our deadlines for the statutory delivery of the documents, that now is a good time as any to probably look at a change of auditors," she said, the report relays. She said one of the challenges with the auditors was "around the interpretation of some of the International Financial Reporting Standards," the report notes. She said she is excited about the prospect of a change of auditors even after she acknowledged that it was the first time the SEC has had issues with them, the report relays. "The management letter is supposed to be submitted to the SEC in time to allow for its deliberation at the Finance Committee, and for the board to look at the recommendations of the finance committee and agree to the submission of the financial statements to the Ministry of Finance. The date that we felt we should have had the management letter, it was not forthcoming," said Zephyrine, the report notes. Lucillo elaborated that the SEC usually looks to complete its statements by mid-January, the report relays. "From the end of December into the beginning of January, we went back and forth with the auditors to finalize that aspect. They did indicate to us that they will draft statements that they wanted to make but the actual document we did not receive until sometime later on, past the statutory deadline date. So hence why we were unable to meet that deadline date. When we realized that that was the situation we contacted the Ministry of Finance and advised them about this situation," said Lucillo, the report discloses. Lucillo said it was the first time the T&T SEC missed its statutory deadline, the report adds. TRINIDAD PETROLEUM: Moody's Withdraws 'Ba3' CFR, Outlook Stable --------------------------------------------------------------- Moody's Investors Service withdrew the Ba3 corporate family rating and the b2 baseline credit assessment on Trinidad Petroleum Holdings Limited's ("TPHL"). The Ba3 ratings on the company's existing rated debt were unchanged. The ratings outlook is stable. Withdrawals: Issuer: Trinidad Petroleum Holdings Limited Baseline Credit Assessment, Withdrawn , previously rated b2 Corporate Family Rating, Withdrawn , previously rated Ba3 RATINGS RATIONALE The ratings on TPHL's existing rated debt are based on audited financial information provided by its main subsidiary and guarantor, Heritage Petroleum Company Limited ("Heritage"). Heritage's corporate family rating is Ba3, with a stable outlook. TPHL is an oil and gas company 100% owned by the Government of Trinidad & Tobago (Ba2 stable). =============== X X X X X X X X =============== [*] BOND PRICING: For the Week April 25 to April 29, 2022 --------------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- Noble Holding Internat 6.2 62.2 8/1/2040 KY USD Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD Banco Macro SA 17.5 65.2 5/8/2022 AR ARS Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Provincia del Chubut A 4.5 2208 3/30/2021 AR USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD YPF SA 16.5 67.3 5/9/2022 AR ARS Esval SA 3.5 49.9 2/15/2026 CL CLP KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD Banco Macro SA 17.5 65.2 5/8/2022 AR ARS Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Polarcus Ltd 5.6 71.8 7/1/2022 AE USD AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL Enel Americas SA 5.8 32.7 6/15/2022 CL CLP Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD Noble Holding Internat 5.3 60.5 3/15/2042 KY USD Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD YPF SA 16.5 67.3 5/9/2022 AR ARS Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD Noble Holding Internat 6.1 62.0 3/1/2041 KY USD Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD YPF SA 16.5 67.3 5/9/2022 AR ARS Fospar S/A 6.5 1.2 5/15/2026 BR BRL Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD Sylph Ltd 2.4 65.1 9/25/2036 KY USD Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD ********* 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 * * *