/raid1/www/Hosts/bankrupt/TCRLA_Public/221108.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, November 8, 2022, Vol. 23, No. 217
Headlines
A R G E N T I N A
ARGENTINA: Economists & Businesses See Dollar Drought on Horizon
ARGENTINA: Lets Tourists Tap Parallel FX Rate to Bring in Dollars
B E R M U D A
BERMUDA: Mayor Has Concern Over Future of Hamilton
B R A Z I L
BRAZIL: Fires Most Crypto Professionals This Year, Study Shows
BRAZIL: Unemployment Rate Falls to 8.7%, Lowest Since 2015
BRAZIL: Wheat Prices Fell 6.3% After Deal on Black Sea Corridor
C H I L E
LATAM AIRLINES: Pilots Vote to Strike on Eve of Ch. 11 Exit
J A M A I C A
JAMAICA: BOJ Pumps US$30 Million Into Forex Market
M E X I C O
CREDITO REAL: Wagstaff Sets Bid Procedures for CRUSAFin Interests
P E R U
CAMPOSOL SA: Moody's Lowers CFR to B1 & Alters Outlook to Negative
P U E R T O R I C O
RODOLFO CARRERO: OSP's Objection to Proceeds Distribution Denied
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A R G E N T I N A
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ARGENTINA: Economists & Businesses See Dollar Drought on Horizon
----------------------------------------------------------------
Buenos Aires Times reports that the private sector in Argentina
fears government's economic team will tighten restrictions on
access to hard currency for purchase of inputs, creating a dollar
desert drought until March.
Buenos Aires Times relays that on Oct. 27, just US$18 million in
export dollars had been cashed in. Argentina's Central Bank could
purchase just US$1 million for its reserves, a meagre boost, the
report notes.
Back in September, farmers cashed in almost US$8.2 billion worth of
soy at a rate of 200 pesos per dollar. After that, the sector's
sales plunged brusquely, the report discloses.
The government's "soy dollar" permitted the government to close
September with a primary fiscal surplus of 80.624 billion pesos and
a modest gain of US$414 million for the balance of trade, cutting
three consecutive months of deficit, the report notes.
Economy Minister Sergio Massa managed to meet the objectives for
the third quarter in the agreement signed with the International
Monetary Fund (IMF), but now he faces a lack of new dollar inflows
as demanded by industry, the report relays.
"The government has an important desert [in terms of hard currency]
until March at least," said former Central Bank governor Martín
Redrado in a recent television interview, the report discloses.
Economist Juan Garzon of the IERAL think-tank agrees. He told
Perfil that "an optimistic estimate would place liquidation at
around US$1.25 billion each, both for this and last month," the
report notes
The scenario "would again improve in December with the entry of
winter crops into the market," especially wheat, which would be
bringing in between US$2 billion and US$2.5 billion, said the
expert, the report says.
But these US$5 billion in three months, "which is the product of an
optimistic estimate," underlined Garzon, do not even pay for a
month of imports, which totalled US$7 billion in September, the
report relays.
In this context "the government prefers to restrict the dollars for
companies, which will affect [economic] activity, so that
businessmen will either lay off or buy dollars" at parallel
exchange rates like the CCL (contado con liquidacion) or the blue,
which increases prices, Redrado told the Todo Noticias news
channel, the report discloses.
Redrado, a former Central Bank governor during the Kirchner
presidencies, pointed to the challenge facing Massa's economic team
as akin to "walking a tightrope with currency risk on one side and
inflation on the other with no measures to resolve the exchange
rate component," the report relays.
Furthermore, as from the application of the new SIRA system for
purchases abroad, "all imports have been halted – any businessman
who uses dollars to buy inputs no longer has them and only the
Central Bank can buy hard currency in these times," the report
notes.
The Argentine Industrial Union (UIA, in its Spanish acronym),
headed by Daniel Funes de Rioja, recently rejected the new import
system, calling for more "predictable mechanisms," the report
relays. The manufacturing lobby also requested that the
"discretionary" release of dollars be avoided with a system
permitting production to be planned, the report discloses.
In the midst of this panorama, Redrado throws in another alarming
figure: "We're underestimating a phenomenal drought and that
doesn't help [bring in dollars]," he added.
"Furthermore, the shortage of wheat (whose harvest begins in
December) has an impact on the prices of bread and flour, unlike
soy," warned the head of the Fundacion Capital think tank, the
report relays.
Who's asking now? In July, the Central Bank tightened currency
controls, telling companies that they would have to borrow abroad
to finance their imports and that, after three months, they would
sell them dollars at the official exchange rate, the report
discloses. In September, they decided to extend the measure for a
further three months, the report notes.
Those six months are now going by and companies will be presenting
their numbers as of January, the report relays. The fear of a
dollar drought on the horizon is a clear and present danger, the
report adds.
ARGENTINA: Lets Tourists Tap Parallel FX Rate to Bring in Dollars
-----------------------------------------------------------------
Buenos Aires Times reports that Argentina's government is trying to
rake in more tourism dollars and discourage cash use by offering
travellers who visit the country a more lucrative exchange rate on
card purchases, according to three senior government officials.
Foreign tourists who use non-Argentine issued credit and debit
cards will be charged a financial exchange rate known in Spanish as
the 'Dolar MEP' (Mercado Electronico de Pagos) in Argentina, priced
at about 291 pesos per dollar, according to website Rava, according
to Buenos Aires Times. That's much higher than the official rate
of 158 pesos per dollar currently applied to foreign card purchases
made in Argentina, the report notes.
The Central Bank will publish the measure and it will take effect,
according to the officials, who stressed it would provide more ease
and safety to tourists coming to Argentina, the report relays.
Battling inflation heading toward 100 percent, the government of
President Alberto Fernandez has struggled convince travellers to
put money into the country's complex financial system, the report
relays. A measure last year allowed tourists to open up temporary
bank accounts, but failed to gain traction, the report notes.
Tourists have long preferred cash in Argentina, but the trend has
worsened in recent years because of a gap between the official rate
and an alphabet soup of different, parallel rates, the report
discloses. The Central Bank is only seeing US$30 million a month
now from foreign credit card transactions in Argentina, down from
the US$250 million seen in prior months, according to the
officials, the report says.
Discouraging cash use also comes as scenes have emerged in recent
weeks of foreign tourists paying for meals with wads of cash, the
report says. Many locals and tourists exchange dollars for pesos
at the commonly used black market rate known as the "Dolar Blue"
which also closed at 291 pesos per US dollar, the report notes.
Those cash dollars don't enter government coffers, watering down
the economic benefit, the report notes.
Another reason for all the cash is that Argentina's largest
denomination bill is only 1,000 pesos, worth about US$3.44 on the
black market, creating a big discount versus the official rate, the
report relays. The Central Bank doesn't have plans to issue higher
denomination bills as it focuses on digital transactions, 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.
Last March 25, 2022, Argentina finalized agreement with the IMF
for a new USD44 billion Extended Funding Facility (EFF) intended
to fund USD40 billion in looming repayments of the defunct
Stand-By Arrangement (SBA), with an extra USD4 billion in up-front
net financing. This has averted the risk of a default to the IMF
and is facilitating a parallel rescheduling of Paris Club debt.
As reported by The Troubled Company Reporter - Latin America on
Aug. 12, 2022, S&P Global Ratings affirmed its foreign and
local-currency sovereign credit ratings of 'CCC+/C' on the
Republic of Argentina. The outlook remains stable. S&P also
affirmed its national scale 'raBBB-' rating and its 'CCC+' transfer
and convertibility assessment. S&P said the stable outlook reflects
the challenges in managing pronounced economic imbalances ahead of
the 2023 national elections given disagreement on policy within the
government coalition and financing pressures in the local market.
Last April 14, 2022, Fitch Ratings affirmed Argentina's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDR) at 'CCC'.
Fitch said Argentina's 'CCC' ratings reflect weak external
liquidity and pronounced macroeconomic imbalances that undermine
debt repayment capacity, and uncertainty regarding how much
progress can be made on these issues under a new IMF program.
On July 19, 2022, Fitch Ratings placed Argentina's Long-Term
Foreign Currency Issuer Default Rating (IDR) and Long-Term Local
Currency IDR Under Criteria Observation (UCO) following the
conversion of the agency's Exposure Draft: Sovereign Rating
Criteria to final criteria. The UCO assignment indicates that
ratings may change as a direct result of the final criteria. It
does not indicate a change in the underlying credit profile, nor
does it affect existing Rating Outlooks.
Moody's credit rating for Argentina was last set at Ca on
Sept. 28, 2020.
DBRS has also confirmed Argentina's Long-Term Foreign Currency
Issuer Rating at CCC and Long-Term Local Currency Issuer Rating at
CCC (high) on July 21, 2022.
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B E R M U D A
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BERMUDA: Mayor Has Concern Over Future of Hamilton
--------------------------------------------------
Royal Gazette reports that concern has been expressed over the
future of the City of Hamilton should the Bermuda Government
complete its hostile takeover.
The Government's proposed control of the Corporation of Hamilton is
still the subject of a legal battle, according to Royal Gazette.
But Charles Gosling, the Mayor of Hamilton, has his reservations
over government competence, wondering aloud if it would be
maintained in the same "embarrassing" state as the rest of the
island, the report discloses.
A year after the Municipalities Reform Act was passed in March
2019, to turn Bermuda's two municipalities into unelected quangos,
Mr. Gosling announced plans to lodge an appeal with the Privy
Council in London, the report notes.
Answering a question put to him by The Royal Gazette, during the
Washington Mall's 50th-anniversary celebrations, Mr. Gosling
pointed to the Crawl Post Office on Radnor Road, Hamilton Parish,
as an example of island dishevelment, the report discloses.
"I walk by there every morning," he said. "There are two feet of
weeds outside it. If the Government took over Hamilton, I would
hate to see the city go the same path," the report relays.
He said a good bit of revitalisation has happened in Hamilton in
the past few years, and it would be disappointing to those who had
invested in it to see that go by the wayside, the report relates.
Mr Gosling said no date has yet been finalised for their appeal to
the Privy Council, the report notes.
"It might not be until the spring or early summer of next year," he
said. "A lot hangs on the Privy Council, he added.
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B R A Z I L
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BRAZIL: Fires Most Crypto Professionals This Year, Study Shows
--------------------------------------------------------------
Rocco Caldero at Rio Times Online reports that Sao Paulo was the
7th city with the highest number of cryptocurrency market
professionals laid off in the "crypto winter" (period of falling
prices for digital assets), according to a survey released on
November 4, by price aggregator CoinGecko.
The study considered public layoffs announced between January 1 and
November 1, 2022, according to Rio Times Online.
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.
As reported in the Troubled Company Reporter-Latin America on
July 18, 2022, Fitch Ratings has affirmed Brazil's Long-Term
Foreign Currency Issuer Default Rating at 'BB-' and revised the
Rating Outlook to Stable from Negative.
On June 17, 2022, S&P Global Ratings affirmed its 'BB-/B' long-
and short-term foreign and local currency sovereign credit
ratings on Brazil.
Moody's Investors Service also affirmed on April 15, 2022,
Brazil's long-term Ba2 issuer ratings and senior unsecured bond
ratings, (P)Ba2 senior unsecured shelf ratings, and maintained the
stable outlook.
DBRS Inc. confirmed Brazil's Long-Term Foreign and Local Currency
Issuer Ratings at BB (low) on Aug 12, 2022. At the same time,
DBRS Morningstar confirmed the Federative Republic of Brazil's
Short-term Foreign and Local Currency Issuer Ratings.
BRAZIL: Unemployment Rate Falls to 8.7%, Lowest Since 2015
----------------------------------------------------------
Rio Times Online reports that the Brazilian unemployment rate fell
to 8.7% in the 3rd quarter. This is the lowest percentage since
the quarter from May to July 2015, when it recorded the same rate.
The IBGE (Brazilian Institute of Geography and Statistics) released
the result Oct. 27, according to Rio Times Online.
The percentage of unemployed people fell 0.6 percentage points in
relation to the second quarter of the year, the report discloses.
Compared with the same quarter in 2021, when it stood at 12.6%, the
rate fell 3.9 percentage points, the report says.
The number of unemployed people fell to 9.5 million, the lowest
level since the 4th quarter of 2015, the report notes.
It fell 6.2% to the second quarter of this year, corresponding to
621,000 people, the report recalls.
There are 4 million fewer unemployed people in one year, the report
relates.
The data are part of the Continuous National Household Sample
Survey (Pnad Continua), the report points 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.
As reported in the Troubled Company Reporter-Latin America on
July 18, 2022, Fitch Ratings has affirmed Brazil's Long-Term
Foreign Currency Issuer Default Rating at 'BB-' and revised the
Rating Outlook to Stable from Negative.
On June 17, 2022, S&P Global Ratings affirmed its 'BB-/B' long-
and short-term foreign and local currency sovereign credit
ratings on Brazil.
Moody's Investors Service also affirmed on April 15, 2022,
Brazil's long-term Ba2 issuer ratings and senior unsecured bond
ratings, (P)Ba2 senior unsecured shelf ratings, and maintained the
stable outlook.
DBRS Inc. confirmed Brazil's Long-Term Foreign and Local Currency
Issuer Ratings at BB (low) on Aug 12, 2022. At the same time,
DBRS Morningstar confirmed the Federative Republic of Brazil's
Short-term Foreign and Local Currency Issuer Ratings.
BRAZIL: Wheat Prices Fell 6.3% After Deal on Black Sea Corridor
---------------------------------------------------------------
Rocco Caldero at Rio Times Online reports that on November 2, wheat
prices fell 6.3% after Turkey said that the safety of Ukrainian
product transport is ensured.
Transportation via the Black Sea has resumed, according to Rio
Times Online.
Ukraine is the 4th largest global producer of the commodity, the
report notes.
Now, investors interpret that there will be a greater grain supply,
and the price will decrease, the report relays.
Turkish President Recep Tayyip Erdogan helped broker the deal, 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.
As reported in the Troubled Company Reporter-Latin America on
July 18, 2022, Fitch Ratings has affirmed Brazil's Long-Term
Foreign Currency Issuer Default Rating at 'BB-' and revised the
Rating Outlook to Stable from Negative.
On June 17, 2022, S&P Global Ratings affirmed its 'BB-/B' long-
and short-term foreign and local currency sovereign credit
ratings on Brazil.
Moody's Investors Service also affirmed on April 15, 2022,
Brazil's long-term Ba2 issuer ratings and senior unsecured bond
ratings, (P)Ba2 senior unsecured shelf ratings, and maintained the
stable outlook.
DBRS Inc. confirmed Brazil's Long-Term Foreign and Local Currency
Issuer Ratings at BB (low) on Aug 12, 2022. At the same time,
DBRS Morningstar confirmed the Federative Republic of Brazil's
Short-term Foreign and Local Currency Issuer Ratings.
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C H I L E
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LATAM AIRLINES: Pilots Vote to Strike on Eve of Ch. 11 Exit
-----------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that the largest
pilots union of Latam Airlines in Chile voted to strike, a day
before the company said it was planning on concluding its exit from
bankruptcy.
The Union of Latam Pilots (SPL) said it represents 313 of Latam
Airlines's approximately 500 pilots and that 99% of its members
voted to approve the strike, according to globalinsolvency.com.
In a statement released , the union said it was looking to revert
some pandemic-era cost-saving measures, including a 30% pay cut and
a shift to "variable salary model," the report notes.
"What we're asking now is an act of justice that jumps into view:
recover conditions we had before the adjustment that hit us hard,"
Mario Troncoso, president of the SPL said in a statement, the
report discloses.
Troncoso added that 240 pilots were fired during the pandemic and
while company executives and other company employees recovered 100%
of their pre-pandemic salaries, pilots are the only ones still
receiving a reduced salary, the report adds.
About LATAM Airlines Group
LATAM Airlines Group S.A. -- http://www.latam.com/-- is a
pan-Latin American airline holding company involved in the
transportation of passengers and cargo and operates as one unified
business enterprise. It is the largest passenger airline in South
America.
Before the onset of the COVID-19 pandemic, LATAM offered passenger
transport services to 145 different destinations in 26 countries,
including domestic flights in Argentina, Brazil, Chile, Colombia,
Ecuador and Peru, and international services within Latin America
as well as to Europe, the United States, the Caribbean, Oceania,
Asia and Africa.
LATAM and its 28 affiliates sought Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 20-11254) on May 25, 2020. Affiliates in
Chile, Peru, Colombia, Ecuador and the United States are part of
the Chapter 11 filing.
The Debtors disclosed $21,087,806,000 in total assets and
$17,958,629,000 in total liabilities as of Dec. 31, 2019.
The Hon. James L. Garrity, Jr., is the case judge.
The Debtors tapped Cleary Gottlieb Steen & Hamilton LLP as
bankruptcy counsel, FTI Consulting as restructuring advisor, Lee
Brock Camargo Advogados as local Brazilian litigation counsel, and
Togut, Segal & Segal LLP and Claro & Cia in Chile as special
counsel. The Boston Consulting Group, Inc. and The Boston
Consulting Group UK LLP serve as the Debtors' strategic advisors.
Prime Clerk LLC is the claims agent.
The official committee of unsecured creditors formed in the case
tapped Dechert LLP as its bankruptcy counsel, Klestadt Winters
Jureller Southard & Stevens, LLP as conflicts counsel, UBS
Securities LLC as investment banker, and Conway MacKenzie, LLC as
financial advisor. Ferro Castro Neves Daltro & Gomide Advogados is
the committee's Brazilian counsel.
The Ad Hoc Group of LATAM Bondholders tapped White & Case LLP as
counsel.
Glenn Agre Bergman & Fuentes, LLP, led by managing partner Andrew
Glenn and partner Shai Schmidt, has been retained as counsel to the
Ad Hoc Committee of Shareholders.
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J A M A I C A
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JAMAICA: BOJ Pumps US$30 Million Into Forex Market
--------------------------------------------------
RJR News reports that the Bank of Jamaica (BOJ) intervened in the
foreign currency market.
The central bank pumped US$30 million into the system, its ninth
intervention since the start of 2022, according to RJR News.
Three banks and five cambios were successful in the auction, the
report relays.
JMMB, National Commercial Bank and JMMB Securities received the
larger shares of the bid, 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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M E X I C O
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CREDITO REAL: Wagstaff Sets Bid Procedures for CRUSAFin Interests
-----------------------------------------------------------------
Robert Wagstaff, the duly appointed foreign representative by
Fernando Alonso-de-Florida Rivero, the liquidator of Credito Real,
S.A.B. de C.V., SOFOM, E.N.R., asks the U.S. Bankruptcy Court for
the Southern District of New York to authorize the bidding
procedures in connection with the auction sale of substantially all
of the Chapter 15 Debtor's direct and/or indirect equity interests
in a majority-owned, U.S. subsidiary, Credito Real USA Finance,
LLC.
The Objection Deadline is Nov. 10, 2022, at 4:00 p.m.
Based in Florida, CRUSAFin is an auto financing company that
provides loans to sub-prime customers in the United States for the
purchase of used cars. For over a year, the Chapter 15 Debtor has
been marketing the CRUSAFin business for sale to a third party.
Though the marketing process has yielded several competitive bids,
uncertainty over the Debtor's financial distress has been a
significant obstacle to finalizing a sale agreement with any buyer
outside of a court process.
In late July, upon the final acceptance of the Mexican Liquidation
Proceeding, the Mexican Liquidator and Foreign Representative
determined that a sale of the CRUSAFin Interests pursuant to
section 363 of the Bankruptcy Code overseen by the Court would
provide greater certainty and transparency to interested buyers and
maximize the value received by the Chapter 15 Debtor for the
benefit of its stakeholders.
To that end, in early August, the Mexican Liquidator re-launched a
marketing process specifically aimed at obtaining a binding
stalking horse bid that contemplates a section 363 sale of the
CRUSAFin Interests as part of the Chapter 15 Case. As of the
filing of the Motion, the Mexican Liquidator and Foreign
Representative continue to actively negotiate with various
potential stalking horse bidders and may be in a position to seek
authority from the Court to enter into a binding stalking horse
agreement in short order.
The Bidding Procedures proposed will provide a path for a final
marketing process and will ensure that the Chapter 15 Debtor
receives the highest and best price for the CRUSAFin Interests.
The Chapter 15 Debtor owed approximately US$2.5 billion in
third-party financial debt obligations. Consummation of a Sale
Transaction, will therefore unlock value for the Chapter 15
Debtor’s creditors that can be distributed in accordance
with
Mexican law and to the benefit all creditors in the Mexican
Liquidation Proceeding.
Additionally, CRUSAFin owes approximately $50 million under the
Wells Fargo LOC, which is guaranteed by the Chapter 15 Debtor and,
as a result of a number of extensions, is set to mature in January
2023. The proposed Sale requires buyers to either assume,
refinance or cash out the Wells Fargo LOC, which ultimately
benefits the Chapter 15 Debtor and its other creditors by releasing
the guaranty.
The Foreign Representative proposes the following dates and
deadlines for the Sale process:
a. TBD - Hearing to consider entry of the Bidding Procedures
Order
b. Within 2 business days of Entry of the Bidding Procedures
Order - Deadline for the Foreign Representative to file and serve
the Sale Notice
c. Dec. 5, 2022 at 4:00 p.m. (ET) - Deadline to file
objections to the Sale Transaction
d. Dec. 14, 2022 at 4:00 p.m. (ET) - Final Bid Deadline
e. Dec. 16, 2022 at 10:30 a.m. (ET) - The Auction, if any,
will take place in a virtual room hosted by the Foreign
Representative's counsel, or such other place and time as the
Foreign Representative will notify all Qualified Bidders and the
Consultation Party
f. Within 2 business days of conclusion of the Auction -
Deadline to file the Post Auction Notice
g. Dec. 20, 2022 at 4:00 p.m. (ET) - Deadline to file
objections to the conduct of the Auction
h. Dec. 22, 2022 at TBD (ET) - Sale Hearing
The Foreign Representative requests authorization to run an auction
process with respect to the CRUSAFin Interests pursuant to the
Bidding Procedures. If a Stalking Horse Bid is approved by the
Court, a Bid must propose a cash purchase price that has a value
greater than the sum of (i) the Purchase Price (as defined in the
Stalking Horse SPA), plus (ii) $500,000, plus (iii) any bid
protections that may be payable under any Stalking Horse Bid that
has been approved by the Court as of the Bid Deadline.
Any Overbid after and above the respective Auction Baseline Bid
will be made in increments valued at not less than $250,000. ach
Bid must be accompanied by a deposit in the amount of 5% of the
purchase price contained in the Modified SPA, before any
adjustments to the purchase price, to an interest-bearing escrow
account established by Richards, Layton & Finger PA.
Within two business days after the entry of the Bidding Procedures
Order, or as soon thereafter as practicable, the Foreign
Representative (or his agents) will serve the Sale Notice to the
Notice Parties. No later than two business days after the
conclusion of the Auction (if one is onducted), he will file the
Post Auction Notice.
The sale will be free and clear of all liens, claims, interests,
and encumbrances.
To implement the foregoing successfully, and given the nature of
the relief requested, the Foreign Representative respectfully
requests that the Court finds that notice of the Motion is
adequate
under Bankruptcy Rule 6004(a) and waives the 14-day stay of an
order authorizing the use, sale or lease of property and the
assumption and assignment of executory contracts and unexpired
leases under Bankruptcy Rules 6004(h) and 6006(d) is waived.
A copy of the Bidding Procedures is available at
https://tinyurl.com/2p8txpaa from PacerMonitor.com free of charge.
About Credito Real SAB
Credito Real SAB de CV SOFOM ENR is a Mexico-based company that
provides consumer financing. Credito is Mexico's biggest payroll
lender and second largest non-bank lender after Real Unifin.
Credito Real provides loans, either by providing direct financing
to consumers or by establishing financing programs with consumer
financing dealers that sell to Credito Real the collection rights
from consumer financing products. It also provides financing
directly to individuals that are employed by corporations with
payroll deduction agreements with consumer financing dealers
authorized by Credito Real. Credito Real operates through a
number of subsidiaries, including AFS Acceptance LLC.
Three alleged creditors signed a petition to send Credito Real to
Chapter 11 bankruptcy on June 22, 2022 (Bankr. S.D.N.Y. Case No.
22-10842). Institutional Multiple Investment Fund LLC, of Boston,
Massachusetts; Banco Monex, S.A., of Mexico, and Solitaire Fund,
of Liechtenstein, who claim to own an aggregate $8 million of
unsecured bond debt, signed the involuntary Chapter 11 petition.
David H. Botter, Esq., at Akin Gump Strauss Hauer & Feld LLP is
advising the three bondholders.
Despite efforts by bondholders to force the company to pursue a
Chapter 11 restructuring in the U.S., the Debtor opted to pursue
proceedings in Mexico instead. On June 28, 2022, Angel Francisco
Romanos Berrondo, one of the Debtor's shareholders and the former
CEO of Credito Real, filed a petition, in his capacity as a
shareholder, with the Mexican Court seeking to commence the
Mexican Liquidation Proceeding.
On June 30, 2022, the Mexican Court entered an order commencing
the dissolution and liquidation proceedings for the Company and
appointing Mr. Fernando Alonso-de-Florida Rivero as the Mexican
Liquidator.
The liquidator for Credito Real filed a Chapter 15 bankruptcy
petition (Bankr. D. Del. Case No. 22-10630) on July 14, 2022, to
seek U.S. recognition of the Mexican proceedings. The petition
was signed by Robert Wagstaff, the foreign representative of the
liquidator. Richards, Layton & Finger, P.A., led by John Henry
Knight, is counsel in the U.S. case.
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P E R U
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CAMPOSOL SA: Moody's Lowers CFR to B1 & Alters Outlook to Negative
------------------------------------------------------------------
Moody's Investors Service has downgraded Camposol S.A.
("Camposol")'s corporate family rating and the rating of its 6%
$350 million senior unsecured notes due 2027 and guaranteed by the
Peruvian fruit producer's parent company, CSOL Holding Ltd. to B1
from Ba3. Moody's changed the outlook to negative from stable.
Downgrades:
Issuer: Camposol S.A.
Corporate Family Rating, Downgraded to B1 from Ba3
Gtd Senior Unsecured Regular Bond/Debenture, Downgraded to B1 from
Ba3
Outlook Actions:
Issuer: Camposol S.A.
Outlook, Changed To Negative From Stable
RATINGS RATIONALE
The downgrade to B1 is driven by the deterioration in Camposol's
credit metrics and increasing liquidity risk.
The negative outlook reflects Moody's expectation that Camposol's
operating performance will remain under pressure with Moody's
adjusted leverage above 4x and negative free cash flow in the next
12 months as the company faces inflationary headwinds and supply
chain challenges.
Higher costs of inputs, particularly fertilizers and freights, will
continue challenging the company's performance through 2023, at
least. The company reported a 21% decrease in EBITDA for the last
twelve months ended June 2022 leading to Moody's adjusted leverage
of 6.2x.
At the same time, Camposol's liquidity remains pressured by the
need to build inventories to secure fertilizers among other inputs.
The negative working capital drove higher short term to finance
this gap with a balance of $152 million as of June 2022, which
negatively compares to the company's cash balance at $33 million.
The bulk of the short term debt is comprised of advised working
capital lines that are secured by inventory to finance the
harvesting season, and while short term debt should decline
slightly by year end 2022 due to the seasonal nature of the
company's operations, Moody's does not expect a material change.
Other sources of liquidity include a $60 million revolving credit
facility (RCF) that Camposol secured in October 2021.
Camposol expects a net leverage to decline towards 3.3x by 2023
from 4.6x as of June 2022, which translates into a gross leverage
of 3.8x including Moody's adjustments. However, negative free cash
driven by higher input costs, higher interest expenses and negative
working capital support Moody's view that a material debt reduction
will be challenging through 2023.
The B1 ratings reflect the company's position as a vertically
integrated producer of fresh and frozen fruits, its portfolio of
fruits with increasing demand and the expertise of its senior
management.
Camposol's ratings are constrained by its modest geographic
diversification, with most of its productive assets concentrated in
Peru; its relatively small size compared with that of its industry
peers; its exposure to weather events; and the commoditized and
seasonal nature of the company's highest-selling fruits.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, a rating upgrade is unlikely in the
short term. However, longer term, Camposol's ratings could be
upgraded if the company were to increase its size and geographic
diversification, while improving its liquidity with positive free
cash flow and adj. debt/EBITDA below 3.5x and cash flow from
operations/debt ratio to be above 15%.
The ratings could be downgraded if Camposol's liquidity worsens
further or if the company is unable to timely and successfully
rollover its short term debt. A deterioration in credit metrics
such that Camposol's adj. debt/EBITDA increases consistently over
4.5x or cash flow from operations/debt ratio expected to remain
below 10%.
The principal methodology used in these ratings was Protein and
Agriculture published in November 2021.
Based in Lima, Peru, Camposol S.A. (Camposol) is the main operating
subsidiary of CSOL Holding Ltd. and Subsidiaries and a vertically
integrated producer of branded fresh fruit; it also has a small
portfolio of frozen fruit, accounting for 7% of sales. Camposol's
main products are avocados and blueberries, which are sold to the
largest retailers and wholesalers in the world. Camposol reported
revenue of $415 million for the last twelve months ended June
2022.
=====================
P U E R T O R I C O
=====================
RODOLFO CARRERO: OSP's Objection to Proceeds Distribution Denied
----------------------------------------------------------------
Judge Maria de los Angeles Gonzalez of the U.S. Bankruptcy Court
for the District of Puerto Rico denied OSP Consortium, LLC's urgent
request to order that the net proceeds from sale of Rodolfo Ramirez
Carrero and Kendall Roggio Vega's property to Cesar L. Ocasio
Ramirez and Sheilah H. Vega Santiago for $216,000, be paid pursuant
to the stipulation.
The Property is described in the Spanish language as follows:
URBANA: Solar identificado con el numero 4 en el plano de
segregacion, radicado en el Barrio Parguera del termino municipal
de Lajas, Puerto Rico, con una cabida superficial de 248.06 metros
cuadrados; en lindes: Norte, en 35.514 metros, consolar número
5
de esta lotificacion; Sur, en 35.515 metros, con solar numero 3 de
esta lotificacion; Este, en 7.00 metros, con calle publica numero
1; y Oeste, en 7.00 metros, con solar A-16 de la Urbanización
Villas de la BahÃa.
Contiene una ESTRUCTURA en hormigon armado y bloques para ser
dedicada a vivienda, la cual se compone de tres niveles, y esta
subdividida en su interior en cocina, sala, comedor, laundry y tres
cuartos dormitorios y 2 1/2 cuartos de bano, además de una
terraza al aire libre en su tercer nivel y marquesina.
Property C described above is recorded at page 13 of volume
361 of Lajas, property number 15,994, 4th inscription, Property
Registry of Puerto Rico, San German Section.
The Court clines to consider an objection to the distribution
proposed by the Debtors of the sale proceeds filed two hours after
the scheduled closing of the sale. The record shows that OSP had
ample opportunity to object prior to the day of the closing of the
sale. As such, OSP's Urgent Motion is denied.
Rodolfo Ramirez Carrero and Kendall Roggio Vega filed for chapter
11 bankruptcy protection (Bankr. D. P.R. Case No. 19-02460) on May
1, 2019, and are represented by Michelle Marie Vega Rivera, Esq.
*********
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