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/raid1/www/Hosts/bankrupt/TCRLA_Public/220621.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 Tuesday, June 21, 2022, Vol. 23, No. 117 Headlines C H I L E CHILE: IDB Approves $300MM Loan for Energy Transition D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Flow of Exports Thru April Totaled US$4.1-Bil. DOMINICAN REPUBLIC: Food Basket is One of Cheapest in Region DOMINICAN REPUBLIC: US Rate Hikes Sure to Have Impact on Economy J A M A I C A JAMAICA: GOJ Pledges to Invest $31 Billion Into Infrastructure P U E R T O R I C O EMPACADORA Y PROCESADORA: Unsecureds to Get 20% of Claims in Plan V E N E Z U E L A VENEZUELA: Accuses Uruguay of Putting Plane at Risk - - - - - ========= C H I L E ========= CHILE: IDB Approves $300MM Loan for Energy Transition ----------------------------------------------------- The Inter-American Development Bank (IDB) approved a $300 million loan to Chile to expedite a fair, clean and sustainable energy transition in the country. This is the second and final operation in a two-loan series to support policy reforms. The IDB approved the first operation for $50 million in June 2021. As part of the second operation, Chile will overhaul its energy pricing to align it with its modernized distribution regulations and guarantee affordable electricity. Furthermore, it will accelerate the population's use of clean and sustainable energy that displaces fossil fuels and other polluting power sources. The program associated with the loan will also work to close gender gaps by promoting equal pay, including more women in the energy industry and pushing for gender parity at energy-related civil society organizations. Additionally, the program will help decarbonize power generation, create energy scenarios and projections that are consistent with the country's carbon neutral target for 2050 to update the Long-Term Energy Plan, compress the timeline for decommissioning coal-fired plants, draft the first fair transition strategy, and draw up regulations to facilitate grid connections for intermittent renewables and electricity storage. The operation also involves stimulating technological innovation through the approval of the National Electrical Vehicle Strategy this year, as well as new regulations aligned with the Energy Efficiency Law for rolling out electrical vehicles. Other similar steps include launching a program for trading in high-mileage vehicles, enforcing regulations on green hydrogen, and providing backing for the country's first green hydrogen projects. The loan contributes to the digital economy, climate change and gender and inclusion pillars of the IDB's Vision 2025 - Reinvest in the Americas: a Decade of Opportunities, which lays out a roadmap to recovery and inclusive growth in Latin America and the Caribbean. The $300 million IDB loan has a 16-year term, a five-and-a-half-year grace period and an interest rate based on the SOFR. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Flow of Exports Thru April Totaled US$4.1-Bil. ------------------------------------------------------------------ Dominican Today reports that the Dominican Association of Exporters (Adoexpo), celebrating the 50th anniversary of its founding, highlighted the potential of the sector, citing that the export volume in this last four-month period of the year totaled US$4.1 billion, a growth of 9.87% compared to January-April 2021 and 31.69% compared to 2019, year. Regarding the regime with the highest exports, Adoexpo pointed to the free zones with an amount of US$2.5 billion, a growth of 2.66% year-on-year and 33.49% compared to 2019, while the National regime of US$1.5 billion was exported, growing by 5.86% compared to January-April 2021 and 32.53% compared to 2019, according to Dominican Today. The president of Adoexpo, Elizabeth Mena, highlighted that this entity reached its half-century leading the promotion of this productive sector, improving conditions for the sector, promoting changes in public policies and playing a leading role in the generation of foreign exchange and formal employment, the report notes. She stated that gold is the main exported item, with US$470.74 million, for the first four months of the year, representing 11.40% of total exports, the report relays. In the second place, medical instruments and apparatuses stand out with an exported value of US$465.46 million, representing 11.27% of exports for this period, growing 37.12% year-on-year and 101.91% compared to 2019, the report notes. In third place are cigars, with US$320.55 million representing 7.76% of total exports, the report discloses. Destinations Mena expressed that the "top 10" destination countries for Dominican exports comprise 86.55% of total exports in the first four months of 2022, composed of the United States, which remains our largest trading partner comprising 51% of total exports; followed by Haiti, (9. 60%), Switzerland (8.50%), Puerto Rico (5.38%), the Netherlands (3.22%), China (2.99%), India (2.88%), Germany (1.08%), Italy (0.95%) and Spain (0.88%), 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: Food Basket is One of Cheapest in Region ------------------------------------------------------------ Dominican Today reports that according to a study recently carried out by the Central American Consumer Protection Council (Concadeco), an organization that belongs to the Central American Integration System (SICA), the Dominican Republic is one of the countries with the cheapest basic food basket. The president of the regional body, the Honduran Mario Castejon, said in a press release that the country has the staple products with the lowest prices than Panama, Nicaragua, Guatemala, Costa Rica, Honduras, and other Caribbean countries, according to Dominican Today. The head of the General Directorate of Consumer Protection of Tegucigalpa also highlighted that according to the comparative study, the basic food basket in El Salvador is US$223.86; Dominican Republic US$275.38, the report notes. He said that for this study, the 26 essential food products marketed in rural and urban areas of these countries were taken as a fundamental sample, "where it was determined that El Salvador is the first country with the cheapest basic products, followed by the Dominican Republic," the report relays. Food Among the foods included in the price monitoring study are chicken, eggs, pasta, legumes, sausages, cereals and derivatives, powdered and liquid milk, dairy products, vegetables, roots and tubers, seafood and fish, fruits, canned goods, as well as rice and oils have more affordable prices in the Dominican Republic, the report notes. Castejon said that the consumer protection agencies permanently carry out these studies to maintain a consultation among all the member states of the Consumer Protection Council of Central America, the report relays. He explained that the importance of the fact that the country has one of the cheapest basic food baskets in the region benefits the pockets of Dominican consumers, mainly low-income families, the report discloses. He took the opportunity to inform us that next September, the executive director of the National Institute for the Protection of Consumer Rights, Dr. Eddy Alcantara, will assume the pro tempore presidency of Concadeco in an event to be held in Santo Domingo with the presence of his counterparts from Central America, 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: US Rate Hikes Sure to Have Impact on Economy ---------------------------------------------------------------- Dominican Today reports that the US Federal Reserve approved the highest interest rate hike in that country since 1994 (to be between 1.5-1.75%), which will not only impact that economy, but analysts already anticipate its effects on others such as the Dominican. "The increase in the interest rate in the United States causes the interest rate to increase throughout the world and, therefore, a first effect is an increase in the interest rate at which the Dominican Republic will place new debt in the coming months," projects the economist and former general director of Internal Taxes, Magin Diaz, according to Dominican Today. He analyzes that the additional local impact will depend on whether the increase in interest rates in the United States - to fight inflation - causes a slowdown in its economy. "If that's the case, then we'll feel the impact through fewer remittances, fewer exports, and less tourist flow," he says, the report discloses. 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. ============= J A M A I C A ============= JAMAICA: GOJ Pledges to Invest $31 Billion Into Infrastructure -------------------------------------------------------------- Jamaica Observer reports that the government of Jamaica has pledged to invest $31 billion into hard infrastructure that will make the country climate resilient. The disclosure was made on June 15 by minister without portfolio in the Ministry of Economic Growth and Job Creation, Senator Matthew Samuda, at the 'Zones: 2022 Your Partner for Resilience, Sustainability and Prosperity' Tourism Ministerial Summit held at the Montego Bay Convention Centre, in Rose Hall, St James, according to Jamaica Observer. "We are going to ensure that our roads that connect us to our transport hubs are also roads that can withstand significant climatic and weather events. That will allow the sector to get back up much faster," Samuda said, the report notes. He made his presentation in a panel discussion on the topic 'Building resilience for global sustainability: Accelerating recovery and prosperity,' the report relays. He continued that "We are also not ignoring the nature-based solutions that we know are critical to our survival; we have an assessment that is going on now for things like our mangrove population across the island to ensure that we do protect our coastline, not just for tourist but certainly for our residents," the report says. The round-table panel discussion is expected to provide global stakeholders with an awareness of industry resilience strategies, experiences, lessons learned, and best practices that can contribute to tourism sustainability, economic growth, and development, the report notes. Samuda made it clear that immediate action is needed to develop climate resilience, "The climate has changed, it is not some future concept that we have to think about in 30 years as evidenced by affected weather patterns. What we are now concerned about is the rate of continued change and how it will affect us, changing weather patterns, changing temperatures and rising sea levels will impact us and I think that is a very good place to start this discussion," the report relays. The World Free Zones Organization (World FZO) announced the Global Alliance for Special Economic Zones Conference (GASEZ) at its eighth Annual International Conference (AICE). The conference is taking place from June 13 - 17 and features world-class speakers, senior policymakers, academics, multilateral organisations, and global business leaders from over 100 countries, the report adds. 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. ===================== P U E R T O R I C O ===================== EMPACADORA Y PROCESADORA: Unsecureds to Get 20% of Claims in Plan ----------------------------------------------------------------- Empacadora y Procesadora del Sur, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Disclosure Statement describing Plan of Reorganization dated June 14, 2022. Debtor is a privately owned corporation incorporated under the Laws of the Commonwealth of Puerto Rico on December 22, 2010. It is located at Parque Industrial San Idelfonso, Coamo, Puerto Rico, and is part of the Animal Slaughtering and Processing Industry. The ongoing economic downturn and recession faced by Puerto Rico during the last years, primarily due to the earthquakes and the effects of the COVID-19 Pandemic, adversely impacted numerous sectors and entities of Puerto Rico's economy, including Debtors' industry. As a result, in an effort to protect its business, obtain a breathing spell, and the benefits of 11 U.S.C. 362 (a), which stays all collection actions and judicial proceedings, on February 15, 2022, Debtor filed its Chapter 11 petition. As a result of the filing by Debtor of its Chapter 11 petition, Debtor received the benefits of 11 U.S.C. USC 362(a), which stays all collection actions and judicial proceedings against Debtor, providing Debtor the opportunity to file the Plan and Disclosure Statement, without the pressures that drove Debtor into Chapter 11, as envisioned by the Bankruptcy Code. Class 8 consists of Holders of Allowed General Unsecured Claims of $25,000 or Less. Holders of Allowed General Unsecured Claims of $25,000 or less or those claims in excess of $25,000 which are voluntarily reduced to $25,000, will receive in full satisfaction of their claims 20% thereof, on the Effective Date. Class 8 is impaired under the Plan and is entitled to vote to accept or reject the Plan. The allowed unsecured claims in this Class total $94,920.87. Class 9 consists of Holders of Allowed General Unsecured Claims in Excess of $25,000. Holders of Allowed General Unsecured Claims in excess of $25,000, including the deficiency claim of BPPR, will be paid in full satisfaction of their claims 20% thereof, through 60 equal consecutive monthly installments commencing on the Effective Date and continuing on the 30th day of the subsequent 59 months. Class 9 is impaired under the Plan and is entitled to vote to accept or reject the Plan. The allowed unsecured claims in this Class total $4,787,012.96. Class 10 consists of the Equity Holders. Class 10 will not receive any distribution under the Plan but will retain his shares in Debtor unaltered. Class 10 is unimpaired under the Plan and is not entitled to vote to accept or reject the Plan. Except as otherwise provided in the Plan, Debtor will effect payment of Administrative Expense Claims, Priority Tax Claims, Allowed Secured and General Unsecured Claims from the cash flows generated from its operations and the cash accumulated during the pendency of the case. A full-text copy of the Disclosure Statement dated June 14, 2022, is available at https://bit.ly/3xEN74c from PacerMonitor.com at no charge. Counsel for the Debtor: Alexis Fuentes-Hernandez, Esq. Fuentes Law Offices, LLC PO BOX 9022726 San Juan, PR 009022726 Phone: +1 787 722 5216 Fax: +1 787 722 5206 Email: fuenteslaw@icloud.com About Empacadora Y Procesadora Del Sur, Inc. Empacadora Y Procesadora Del Sur, Inc. is engaged in the business of packaging and manufacturing meats and chicken, and its income is derived essentially from amounts collected from sales of such inventories to business clients in Puerto Rico and the U.S. mainland. Empacadora Y Procesadora Del Sur sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 22-00354) on Feb. 15, 2022. In the petition signed by Carlos C. Rodriguez Alonso, president, the Debtor disclosed $11,604,565 in assets and $10,598,204 in liabilities. Alexis Fuentes Hernandez, Esq., at Fuentes Law Office, is the Debtor's counsel. ================= V E N E Z U E L A ================= VENEZUELA: Accuses Uruguay of Putting Plane at Risk --------------------------------------------------- Rio Times Online reports that the Venezuelan government issued a communiqué expressing its rejection of the "irresponsible handling" of the aeronautical authority of the Eastern Republic of Uruguay when it revoked the overflight permit of Emtrasur Cargo's Boeing 747. When the aircraft was over Uruguayan airspace, the aeronautical authority of that country revoked the overflight permit, forcing the plane to return to Buenos Aires, where it has remained since then and expects a resolution of its situation before the Argentine Government, according to Rio Times Online. As reported in the Troubled Company Reporter-Latin America in September 2021, S&P Global Ratings withdrew its 'SD/D' foreign currency sovereign credit ratings and 'CCC-/C' local currency ratings on Venezuela due to lack of sufficient information. At the same time, S&P withdrew its 'D' issue rating on 15 bonds. ********* 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 * * *