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

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

          Thursday, May 26, 2022, Vol. 23, No. 99

                           Headlines



A R G E N T I N A

IRSA INVERSIONES: S&P Assigns 'CCC+' ICR on Debt Exchange


B R A Z I L

CESP-COMPANHIA ENERGETICA: S&P Affirms 'BB-' Global Scale ICR


C O L O M B I A

[*] COLOMBIA: Q1 Economic Growth Forecast at 7.5%


J A M A I C A

JAMAICA: In Talks With India For Wheat, Fertiliser


P A N A M A

PANAMA: Signs $60 Million Loan Agreement With IDB


P E R U

PERU: Social Conflicts Besetting Mining Investment


P U E R T O   R I C O

CARIBBEAN BANANA: Seeks Bankruptcy Protection


T R I N I D A D   A N D   T O B A G O

TRINIDAD & TOBAGO: $30 Million Covid Funds Not Audited

                           - - - - -


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A R G E N T I N A
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IRSA INVERSIONES: S&P Assigns 'CCC+' ICR on Debt Exchange
---------------------------------------------------------
S&P Global Ratings, on May 23, 2022, withdrew its 'CCC+' issuer
credit and issue-level ratings on IRSA Propiedades Comerciales S.A.
and assigned its 'CCC+' issuer credit and issue-level ratings to
Argentine real estate company IRSA Inversiones y Representaciones
S.A. (IRSA), which absorbed all of the latter's assets and
obligations, including the 2023 notes.

The negative outlook reflects some persistent refinancing risk,
mainly because of Argentina's volatile economic conditions and its
capital controls that restrict access to foreign currency. It also
reflects that the pandemic's effects on occupancy rates -- which
are below historical levels for shopping malls and offices --
continue to weigh on IRSA's operations.

S&P views the offer as a distressed exchange, mainly because if the
proposed exchange doesn't succeed, IRSA will face signifcant
challenges to refinance its obligations at the original maturity
date in March 2023. This is mainly due to the current transfer and
convertibility (T&C) restrictions imposed by Argentina's central
bank, the overall challenging economic conditions, and limited
access to credit for private entities in the country.

According to the subscription notice, IRSA intends to offer a
combination of cash of 30% of the 2023 notes, originally issued by
IRSA Propiedades Comerciales S.A., and new senior unsecured notes
for the remaining portion. The new notes will bear the same
interest rate as the 2023 notes and will amortize in five annual
installments starting in June 2024 and maturing in June 2028 (17.5%
in the first four years and 30% in the fifth year). The new notes
include an early tender premium of $1.5 or $3.0 cents for each $1
tendered, depending on investor selections of subscription
alternative. S&P said, "In our view, the proposed compensation
doesn't imply that investors would receive less value than promised
when the original debt was issued. Therefore, we don't consider
this event tantamount to default. The transaction is subject to a
minimun acceptance rate of 75%."

IRSA's cash position as of March 2022 was $106 million and the
company sold assets after that, which added about $80 million (net
of asset purchases) to its cash balance. If the company
successfully refinances its 2023 notes with a high acceptance
level, it would significantly reduce its refinancing risk. However,
capital controls still pose a challenge for Argentine issuers to
continue to refinance maturities abroad. IRSA also faces maturities
for $53 million corresponding to its series IX notes in March 2023,
which resulted from the exchange offer performed in November 2020.

In order to preserve international reserves, Argentina's central
bank (BCRA) is restricting access to the foreign exchange market to
obtain U.S. dollars to pay debt maturities. Companies must
refinance 60% of the principal amount and can only access the
foreign exchange market for the remaining 40% 45 days in advance of
the debt maturity date. For IRSA, which is undergoing this exchange
offer many months in advance of its 2023 notes maturity, the BCRA
granted approval to access the foreign exchange market for 30% of
the notes validly tendered and accepted for exchange (maximum of
$108 million of $360 million).

S&P said, "Following the merger of IRSA Inversiones y
Representaciones and IRSA Propiedades Comerciales, we withdrew our
ratings on the latter and assigned issuer credit and issue-level
ratings to the former. Given the strong business relationship and
fundamentals between these entities, the credit analysis after the
merger results in the same rating level. Although the merger
results in an entity with higher leverage, the overall financial
profile remains unaltered. Our rating on IRSA Propiedades before
the merger already incorporated strategic, operating, and financial
ties with IRSA Inversiones and Cresud S.A.C.I.F. y A. (not rated),
the ultimate parent, through our group rating methodology."

Since beginning of the pandemic, the company has been focusing on
optimizing its operations and asset portfolio, actively managing
liabilities, and trying to deleverage. IRSA's performance has
improved since the worst phase of the pandemic and its liquidity
has benefited from asset sales. As of March 31, 2022, IRSA's gross
debt to EBITDA for the last 12 months was 6.3x (4.1x annualizing
EBITDA as of the same date) and debt to debt plus equity was 29.2%.
However, operating conditions remain challegning, amid Argentina's
volatile economic conditions, high inflation, and local currency
depreciation.

ESG credit indicators: E-2, S-3, G-3




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B R A Z I L
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CESP-COMPANHIA ENERGETICA: S&P Affirms 'BB-' Global Scale ICR
-------------------------------------------------------------
S&P Global Ratings, on May 24, 2022, revised downward Brazilian
hydropower generator CESP-Companhia Energetica de Sao Paulo's
stand-alone credit profile (SACP) to 'bb' from 'bb+'. At the same
time, it affirmed the 'BB-' global scale and 'brAAA' national scale
issuer credit ratings on the company.

The stable outlook on CESP reflects that on Brazil, given that the
sovereign rating caps the company's credit quality.

S&P said, "We expect CESP's debt to EBITDA to be 3.0x-3.5x and FFO
to debt of 20%-25% in 2022, and about 3.0x and 25%-30% from 2023
onward, which is commensurate with our assessment of a significant
financial risk profile, versus our previous expectation of debt to
EBITDA below 3.0x and FFO to debt above 30%. In addition, because
of higher interest expenses, we see a tighter FFO interest coverage
ratio in the next years of 3.0x-6.0x, compared to our previous
expectation of above 6.0x. As a result, we revised CESP's SACP to
'bb' from 'bb+'.

"The drought damaged CESP's credit metrics in 2021, because the
company had to purchase additional energy at higher prices to
comply with its power purchase agreements (PPAs) due to inherited
energy sales contracts from CESP's previous administration--when it
was owned by the state of Sao Paulo--heightened by lower energy
generation caused by the drought. In addition, considering the
uncertain hydrology for this year, last year CESP made advance
energy purchases for 2022 at high prices, in order to mitigate a
further deterioration in hydrology, and considering a more
conservative Global Scaling Factor (GSF). Coupled with that, rising
basic interest rates and inflation increase CESP's interest
expenses, which further pressures credit metrics. The company only
sells 25% of its assured capacity (230 MW) in the regulated market
through longer-term PPAs that are adjusted by inflation annually.
It sells the remaining capacity through shorter-term contracts
negotiated in the free market bilaterally. From 2023 onward,
hydrology remains an uncertainty, and we believe that any worsening
in that variable could pressure CESP's credit metrics because the
company may have to buy additional energy at higher prices to honor
contracts, as occurred last year.

"We adjust CESP's debt by the deficit of its defined benefit
pension plan, which was hit by high inflation (measured by IGP-M)
that remunerates part of the plan's liabilities. CESP is migrating
part of its defined benefit pension plan's beneficiaries to a
defined contribution plan type (because the company doesn't have
the legal obligations to honor actuarial deficits under this
pension plan category) in 2022. Twenty percent of beneficiaries
opted for the migration and will receive their proportional share
once the judicial dispute related to that is concluded. We assume
CESP will finance the migration with new debt of roughly R$340
million, which is equivalent to 18% of the pension plan deficit
balance. In addition, we believe that the additional debt will bear
floating rates tied to interbank deposit rates, which will increase
CESP's interest expenses. We'll continue adjusting the R$1.4
billion balance related to the defined benefit pension plan,
because the bulk of beneficiaries didn't migrate. This adjustment
adds to the company's reported debt of R$2.0 billion in the first
quarter of 2022, which consists of two amortizing debentures."

The corporate restructuring concluded on March 25, 2022, led to
Auren Energia S.A. (Auren; not rated) fully owning CESP's shares,
while the latter's minority shareholder exchanged their shares in
CESP with Auren's. In the restructuring process, Auren received the
energy trading business and minority participation in hydro plants
from Votorantim S.A. (Votorantim; global scale: BBB-/Stable/--;
national scale: brAAA/Stable/--) and R$1.5 billion in equity from
Canada Pension Plan Investment Board (CPPIB), in order to finance
its future growth.

Auren's installed capacity now consists of 3.3 gigawatts (GW; 70%
of which is hydro and 30% wind--and CESP represents 50% of the
total amount), and a pipeline of primarily solar projects totaling
1.9 GW under construction, which we expect to begin operating
between 2023 and 2026. In addition, the energy trading business has
over 400 clients and reported close to R$4 billion in revenues in
2021. As part of this larger group, CESP will be Auren's main
asset, representing about 70% of total EBITDA in 2022 and 50%-60%
going forward following the start-up of new projects. S&P sees
Auren's diversification toward nonconventional renewables as
positive because it lowers hydrology risks and the cash flow
reliance on a single asset (the Porto Primavera dam).

ESG credit indicators: E-3, S-3, G-2

Environmental and social factors are moderately negative
considerations in S&P's credit rating analysis of CESP. The risk of
water scarcity at CESP's reservoir is a key rating factor, because
dry conditions could harm the company's cash flows if it needed to
acquire additional energy on the spot market to honor its energy
contracts. In addition, CESP is involved in civil and environmental
disputes in areas to which its hydroelectric dam provides
electricity.




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C O L O M B I A
===============

[*] COLOMBIA: Q1 Economic Growth Forecast at 7.5%
-------------------------------------------------
globalinsolvency.com reports that Colombia's economy could have
grown by 7.5% in the first quarter of 2022 versus the year-earlier
period, mainly boosted by domestic consumption, though this will
begin to moderate amid inflationary pressures, a Reuters poll
revealed.

Estimates from 13 analysts for economic growth fluctuated between
6% and 8.30% in the three months ended March 31, according to
globalinsolvency.com.

If growth is in line with the poll's median forecast of 7.5%, Latin
America's fourth-largest economy will have expanded at a slower
rate than in the prior quarter ending Dec. 31, when growth hit
10.8%, the report notes.

"The good dynamics of domestic demand, the high terms of trade and
expansionary monetary policy could have contributed to growth
during the first three months of 2022," David Cubides, director of
economic research at stock brokerage Alianza, said, the report
relays.

"However, looking ahead to the following quarters, the rise in
inflation, tighter financial conditions abroad and the increase in
the monetary policy rate would lead growth to gradually moderate,"
he added.  The analysts also forecast that the Andean country's
gross domestic product will expand by 5.25% this year, before
growth slows to 3% in 2023, the report adds.




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J A M A I C A
=============

JAMAICA: In Talks With India For Wheat, Fertiliser
--------------------------------------------------
RJR News reports that Jamaica is in talks with India for wheat,
fertilizers, and farm equipment exports.

Commerce Minister Aubyn Hill, who made the disclosure, said the
government is looking forward to deepening its investment
connections with India, according to RJR News.

Mr. Hill says the relationship will benefit both countries
economically, the report notes.

India President Ram Nath Kovind departed Jamaica following a
four-day state visit, the report notes.

As reported in the Troubled Company Reporter-Latin America in March
2022, Fitch Ratings has affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.




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

PANAMA: Signs $60 Million Loan Agreement With IDB
-------------------------------------------------
The Government of Panama and the Inter-American Development Bank
(IDB) signed a $60 million loan operation to advance digital
transformation and the management of public services in the
country.

Panama's Minister of Economy, Hector Alexander, and IDB President
Mauricio Claver-Carone signed the "Digital Panama" loan agreement,
which will make government procedures and services more efficient.
The operation also aims to enhance cybersecurity, protect and
manage data, and cut costs in interactions with government
agencies. It will prioritize the most vulnerable populations,
especially indigenous women.

"The IDB is fully committed to the digital transformation of
Panama," President Claver-Carone emphasized at the signing
ceremony. "Transformation into a digital economy will further the
country's sustainable development, enhance its competitiveness, and
help it create more and better jobs."

The signing followed President Claver-Carone's meeting with
Panamanian President Laurentino Cortizo, in which he reiterated the
Bank's commitment to continue supporting Panama's economic growth,
fiscal management and inclusion in regional value chains.

"Digital Panama" is a continuation of the work begun in 2016 with
the "Panama Online" loan operation. Through that operation, the IDB
is helping the country create an online version of approximately
400 government procedures for citizens and companies, including
COVID-19 vaccine registration, and implement digital
financial-management tools in 68 municipalities to more efficiently
and transparently manage public resources.

Minister Alexander said: "This program has a major impact on the
country's economic development because it digitalizes processes
within and between agencies. This streamlines government business
for the private sector, citizens and the state itself, with savings
for all parties. By digitalizing, the government can also receive
revenue more quickly and easily by streamlining tax collection,
increasing transparency and spurring economic recovery. This
process also enhances the quality of public spending."

Through the "Digital Panama" loan, the IDB will finance the design,
construction and launch of the Digital Government Innovation Hub
headquarters, which will house technical units linked to the
digital transformation process and cybersecurity.

In the area of training digital talent, the IDB financing will
support a pilot version of an information and communications
technology (ICT) career path at three government agencies. The
program will emphasize gender balance and diversity, as well as the
use of ICT skills to economically empower indigenous women, with
the possibility of adapting the program to other groups. The loan
will also finance mobile units to reach areas with more vulnerable
populations to provide gender-sensitive training in ICT and digital
transactions.

Panama will also use the resources to improve its Single Portal for
Citizens by integrating additional government agencies. The loan
will also support the design and launch of the National Data
Strategy, as well as training on ICT and cybersecurity in public
administration.

This operation is in line with the Bank's Vision 2025, which aims
to achieve recovery and sustainable, inclusive growth in Latin
America and the Caribbean by investing in areas including
digitalization, gender equity, and climate change. It also aligns
with the IDB Group's Country Strategy with Panama for 2021-2024,
where the digital transformation of public administration is a
priority area.




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P E R U
=======

PERU: Social Conflicts Besetting Mining Investment
--------------------------------------------------
Monica Martinez Lima at EFE News reports that mining investments in
Peru, which have amounted to $60 billion over the past 10 years,
look to be in trouble in the near future due to social conflicts
surrounding several mines and the upcoming start of operations at
the latest copper mining megaproject, various experts say.

A large portion of Peru has significant reserves of copper, silver,
gold and zinc, among other metals, which contribute 10 percent to
the country's GDP, and 60 percent of the country's exports are
primary materials, according to EFE News.




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

CARIBBEAN BANANA: Seeks Bankruptcy Protection
---------------------------------------------
Caribbean Banana Inc. filed for chapter 11 protection in the
District of Puerto Rico.

The petition states funds will be available to Unsecured
Creditors.

A telephonic meeting of creditors under 11 U.S.C. Sec. 341(a) is
slated for June 4, 2022 at 9:00 A.M.

                    About Caribbean Banana

Caribbean Banana, Inc. sought protection for relief under Chapter
11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 22-01302) on May
6, 2022, listing as much as $500,000 in both assets and
liabilities.

Honorable Bankruptcy Judge Maria De Los Angeles Gonzalez oversees
the case.

Enrique Almeida Bernal, Esq., and Zelma B. Davila, Esq., at Almeida
& Davila, P.S.C. are the Debtor's bankruptcy attorneys.




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T R I N I D A D   A N D   T O B A G O
=====================================

TRINIDAD & TOBAGO: $30 Million Covid Funds Not Audited
------------------------------------------------------
Trinidad Express reports that about $30 million of the Trinidad and
Tobago Government's Covid-19 monies sent to ministries was not
audited by the Auditor General.

According to the Auditor General's report for the period October 1,
2020 to September 30, 2021, the Government spent a little over $293
million in Covid-19 support for its various Ministries, the report
notes.

However, only $263,658,525.35 of that amount was audited, according
to Trinidad Express.

"Actual Covid-19-related expenditure recorded at Appendix II of the
Ministry's schedule was recorded as $126,750,070.84.
Covid-19-related expenditure recorded in the Vote Book amounted to
$133,129,245.75 resulting in a difference of $6,379,174.91," the
report noted, the report relays.

The Auditor General's report stated that a donation of US$100,000
from the Government of the Republic of Korea for Covid-19
mitigation measures, to be used for purchase of Personal Protective
Equipment (PPE), was not reflected on the statement provided," it
noted, the report discloses.

The report relays that among the issues raised in the report, which
was laid in Parliament and dated April 28, 2022, were that
contracts were not provided for expenditure by the Ministry of
Health:

1. Expenditure totalling $12,458,803.80 was recorded in respect to
4,824 Covid-19 'trips,' which were ambulance rides paid for by the
State. The audit noted that a copy of the contract agreement
between the Ministry and the service provider outlining the terms
and conditions of this service was not provided for audit
scrutiny.

2. A medical equipment upgrade contract with seven payment vouchers
amounting to $12,958,369.30 was not provided.

3. Hospital Refurbishment Program contract agreements for nine
payment vouchers amounting to $12,532,296.71 were not provided.

The Ministry of Finance was the second largest recipient with
$123,656,952.84.

Several Ministries and entities in receipt of state funds did not
respond to the Auditor General on their Covid-19 expenditure. They
are: the Judiciary; the Office of the Prime Minister; the Ministry
of Works and Transport; the Ministry of Housing and Urban
Development and the Ministry of Foreign and Caricom Affairs.

                          Grants

The report noted that there were several disparities in the
Covid-19 grants administered by the Government, the report
discloses.

The Government, in its management of Covid-19, administered a
number of grants to support citizens affected by the lockdown
measures, the report relays.

Among them were the Salary Relief Grant from the Ministry of
Finance, the Emergency Relief Grant for creatives from the Ministry
of Tourism, Culture and Ethnic Arts and the Income Support Grant
from the Ministry of Social Development and Family Services, the
report relays.

The report relays that among the findings by the Auditor General
with regard to the Salary Relief Grant (SRG) distributed by the
Ministry of Finance:

1. Eight instances were found where persons under 18 years were in
receipt of the SRG, which totaled $23,500.

2. One instance of duplication of the National Insurance number was
seen for an applicant who was paid twice which totalled $6,000.
This was also identified by the Ministry of Finance and funds were
recovered.

3. One instance was found where the National ID number was the same
for two applicants. Both applicants were paid $3,000 each.

4. Two applicants' last day of employment was June 1, 2021. One
person received $1,500 for May 2021 and the other received $1,000
for May 2021. Based on the criteria for the grant, the applicants
should not have received any payment for May 2021.

5. Two instances where persons older than 65 years were paid the
SRG, this totalled $6,000.

6. Two hundred and sixty-four instances were found where the
applicants' date of birth did not match their National ID number.
Payments to these applicants totalled $759,000. "Subsequently,
officials of the Ministry of Finance agreed with the Auditor
General's finding that input errors had occurred because input data
was not verified against the source documents. They also stated
that such input errors did not affect the value of payments," the
report said.

7. The SRG and Income Support Grant databases were joined and
checked to determine whether recipients received both the SRG and
the Income Support Grant. Four instances were found which totalled
$12,000. It should be noted that this error occurred at the
Ministry of Social Development and Family Services as the
applicants were registered in the NI System and therefore, were not
eligible for the Income Support Grant.

8. The SRG and the Food Support Grant databases were joined. It was
discovered that 18 persons who received the Food Support Grant were
also paid the SRG totalling $41,000. "Officials of the Ministry of
Finance stated that there is need for policy clarification on the
entitlement of benefits," the report said.

                    Income Support Grant

The Income Support Grant (ISG) was reinstated with effect from May
2021 to assist people whose employment or income was
suspended/terminated on or before May 1, 2021, the report relays.

This applied to individuals working in bars, restaurants, street
vendors who sell food, entertainment industry, tourism industry,
casinos and gaming houses, hairdressers/barbers/spas, night clubs,
gyms and retail, the report notes.

The report says that the report analyzed data for the period May 1,
2021 to June 30, 2021 and the findings are:

1. Audit was unable to determine the criteria for the payment of
the ISG under the second phase. Cabinet Minute No.288 of October 8,
2020, paragraph (h) stated: "The persons outside the National
Insurance System who experienced a loss of income as a result of
the Covid-19 pandemic be considered for relief under the Social
Assistance ISG administered by the Ministry of Social Development
and Family Services." Audit was informed that the MSDFS developed
the eligibility criteria based on the announcement by the Prime
Minister and subsequent public health notices.

2. All fields were populated in the payment file for the ISG with
the exception of the field for "Effective Date for Last Day of
Employment" which was only populated in 22 instances out of the
1,304 applications. Due to lack of information, Audit could not
determine if the remaining 1,282 applicants, who were paid, were
eligible for the ISG based on the criterion relating to the last
date of employment.

3. Five instances were found where persons with the same name and
National ID number received the ISG twice. Payments to these
applicants totalled $15,000.

4. Six instances were found where the National ID numbers of
applicants were not consistent with the date of birth entered in
the database. The payments to these recipients totalled $17,500.
However, 16 applications with this same issue were not paid. These
applications were filed in the 'Outstanding Applications file'
pending payment.

5. Four persons received both the ISG and the SRG totalling
$12,000. This was identified when the ISG and SRG payment files
were joined and analysed.

6. There were ten persons, who were registered under the National
Insurance (NI) system but were paid the ISG. The criterion for
payment of the ISG was that only persons who do not have an NI
number should apply.

7. Eighteen persons were paid both the ISG and the Food Support
Grant (FSG) totalling $41,000.

8. Some 5,392 persons applied for the ISG and 4,088 were rejected.
Some 1,304 persons were paid the ISG. There were 27 different
reasons for rejection of the ISG applications. The main reason was
the applicant had an NI number. This totalled 2,322 applicants of
which only 35 went on to be paid by the National Insurance Board
(NIB). Other reasons for rejection included missing information and
applicants were not in the sector eligible for the ISG.

                   Emergency Relief Grant

The report noted that Cabinet Minute No. 1133 of July 2, 2020
agreed "to the provision of a one-off Emergency Relief Grant in the
sum of $5,000 to artistes and creatives, who have lost income due
to cancelled exhibitions, classes, conferences, workshops and other
cultural related events, as a result of the measures undertaken by
the Government of the Republic of Trinidad and Tobago to mitigate
the spread of the 2019 Novel Coronavirus (Covid-19)," the report
discloses.

The Grant was launched on Friday, July 10, 2020, the report
relays.

The report notes that the findings:

1. Seven applicants were paid the Emergency Relief Grant (ERG)
twice during the financial year 2021 totalling $35,000.

2. The ERG data for the 2,843 artistes paid in 2021 was joined with
the ERG data for the 823 artistes who were paid in 2020. Audit
found that eight applicants who were paid the ERG in 2020 were
again paid the ERG in 2021 totalling $40,000.



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

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
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.

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.


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