/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/221201.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 Thursday, December 1, 2022, Vol. 23, No. 234 Headlines B E R M U D A BLOCKFI INC: Case Summary & 50 Largest Unsecured Creditors B R A Z I L BRAZIL: Economist Will Lead Regional Development Bank BRAZIL: Market Value of Banks is Still Lower Than in 2019 J A M A I C A JAMAICA: Manufacturing Prices Fell in October JAMAICA: Seeking Investments of at least US$1 Billion M E X I C O BRASKEM IDESA: S&P Alters Outlook to Negative, Affirms 'B+' ICR S T . K I T T S A N D N E V I S ST. KITTS & NEVIS: Growth Has Slowed the Past Year, IMF Says - - - - - ============= B E R M U D A ============= BLOCKFI INC: Case Summary & 50 Largest Unsecured Creditors ---------------------------------------------------------- Nine affiliates that concurrently filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code: Debtor Case No. ------ -------- BlockFi Inc. (Lead Debtor) 22-19361 201 Montgomery Street, Suite 263 Jersey City, NJ 07302 BlockFi Trading LLC 22-19363 BlockFi Lending LLC 22-19365 BlockFi Wallet LLC 22-19366 BlockFi Ventures LLC 22-19367 BlockFi International Ltd. 22-19368 BlockFi Investment Products LLC 22-19370 BlockFi Services, Inc. 22-19371 BlockFi Lending II LLC 22-19374 Business Description: BlockFi is a ditigal asset lender founded in 2017. Chapter 11 Petition Date: November 28, 2022 Court: United States Bankruptcy Court District of New Jersey Judge: Hon. Michael B. Kaplan Debtors' General Bankruptcy Co-Counsel: Joshua A. Sussberg, P.C. Christine A. Okike, P.C. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, New York 10022 Tel: (212) 446-4800 Email: jsussberg@kirkland.com christine.okike@kirkland.com Debtors' General Bankruptcy Co-Counsel: Richard S. Kanowitz, Esq. Kenric D. Kattner, Esq. HAYNES AND BOONE, LLP 30 Rockefeller Plaza, 26th Floor New York, New York 10112 Tel: (212) 659-7300 Email: richard.kanowitz@haynesboone.com kenric.kattner@haynesboone.com Debtors' Local Bankruptcy Counsel: Michael D. Sirota, Esq. Warren A. Usatine, Esq. COLE SCHOTZ P.C. Court Plaza North, 25 Main Street Hackensack, New Jersey 07601 Tel: (201) 489-3000 Fax: (201) 489-1536 Email: msirota@coleschotz.com wusatine@coleschotz.com Debtors' Financial Advisor: BERKELEY RESEARCH GROUP, LLC Debtors' Investment Banker: MOELIS & COMPANY Debtors' Strategic & Communications Advisor: C STREET ADVISORY GROUP, LLC Debtors' Special Bermuda Counsel: WALKERS (BERMUDA) LIMITED Debtors' Notice & Claims Agent: KROLL RESTRUCTURING ADMINISTRATION LLC Estimated Assets (consolidated): $1 billion to $10 billion Estimated Liabilities (consolidated): $1 billion to $10 billion The petitions were signed by Zachary Prince as chief executive officer. A full-text copy of the Lead Debtor's petition is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/EHR2XVY/BlockFi_Inc__njbke-22-19361__0001.0.pdf?mcid=tGE4TAMA Consolidated List of Debtors' 50 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ 1. Ankura Trust Company, LLC, Indenture $729,036,246 as Trustee for the Indenture dated as of February 28, 2022 James J. McGinley 140 Sherman Street, 4th Floor Fairfield, CT 06824 Tel: 203-319-6900 Email: james.mcginley@ankura.com 2. West Realm Shires Inc. (FTX US) Loan $275,000,000 John J. Ray III 3500 South Dupont Highway Dover, DE 19901 3. Name and Address on File Client $48,561,400 4. Securities & Exchange Commission Settlement $30,000,000 Hane Kim Brookfield Place 200 Vesey Street, Suite 400 New York, NY 10281-1022 Tel: 212-336-1088 Email: kimha@SEC.GOV 5. Name and Address on File Client $27,930,663 6. Name and Address on File Client $25,531,937 7. Name and Address on File Client $16,450,930 8. Name and Address on File Client $10,092,477 9. Name and Address on File Client $9,130,266 10. Name and Address on File Client $6,500,000 11. Name and Address on File Client $6,416,732 12. Name and Address on File Client $6,264,675 13. Name and Address on File Client $6,042,827 14. Name and Address on File Client $5,713,322 15. Name and Address on File Client $5,500,232 16. Name and Address on File Client $5,482,181 17. Name and Address on File Client $5,000,000 18. Name and Address on File Client $4,670,469 19. Name and Address on File Client $3,995,213 20. Name and Address on File Client $3,290,438 21. Name and Address on File Client $3,290,186 22. Name and Address on File Client $3,092,832 23. Name and Address on File Client $3,084,390 24. Name and Address on File Client $2,733,625 25. Name and Address on File Client $2,618,909 26. Name and Address on File Client $2,600,000 27. Name and Address on File Client $2,527,023 28. Name and Address on File Client $2,385,343 29. Name and Address on File Institutional $2,264,185 Loans 30. Name and Address on File Client $2,195,060 31. Name and Address on File Client $2,028,277 32. Name and Address on File Client $1,799,293 33. Name and Address on File Client $1,769,481 34. Name and Address on File Client $1,693,730 35. Name and Address on File Client $1,680,488 36. Name and Address on File Client $1,647,320 37. Name and Address on File Client $1,646,355 38. Name and Address on File Client $1,630,590 39. Name and Address on File Client $1,535,700 40. Name and Address on File Client $1,471,911 41. Name and Address on File Client $1,454,081 42. Name and Address on File Client $1,398,077 43. Name and Address on File Client $1,354,519 44. Name and Address on File Client $1,253,815 45. Name and Address on File Client $1,201,448 46. Name and Address on File Client $1,100,609 47. Name and Address on File Client $1,046,888 48. Name and Address on File Client $1,042,364 49. Name and Address on File Client $1,000,189 50. Name and Address on File Client $999,650 =========== B R A Z I L =========== BRAZIL: Economist Will Lead Regional Development Bank ----------------------------------------------------- globalinsolvency.com, citing Associated Press, reports that Latin American governments elected Brazilian economist Ilan Goldfajn to lead the region's largest development bank in the wake of a misconduct probe that led to the firing of the previous president. Governors from the Inter-American Development Bank's 48 members selected Goldfajn to lead the Washington-based multilateral lender from a slate of five candidates nominated by Argentina, Brazil, Chile, Mexico and Trinidad & Tobago, according to globalinsolvency.com. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He will be sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In July 2022, Fitch Ratings affirmed Brazil's Long-Term Foreign Currency Issuer Default Rating at 'BB-' and revised the Rating Outlook to Stable from Negative. In June 2022, S&P Global Ratings also affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil. Moody's, in April 2022, affirmed Brazil's long-term Ba2 issuer ratings and senior unsecured bond ratings, (P)Ba2 senior unsecured shelf ratings, and maintained the stable outlook. On the other had, DBRS, in August 2022, confirmed Brazil's Long-Term Foreign and Local Currency Issuer Ratings at BB (low). BRAZIL: Market Value of Banks is Still Lower Than in 2019 --------------------------------------------------------- The Rio Times Online reports that the 4 largest banks listed on the B3 (Sao Paulo Stock Exchange) are worth 62% of the market value registered in 2019, BRL951.9 billion in the pre-pandemic period. The survey was carried out by analyst Einar Rivero, from TradeMap, and sent exclusively to Poder360. It considers the numbers of BB (Banco do Brasil), Bradesco, Itau Unibanco and Santander Brasil, according to The Rio Times Online. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He will be sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In July 2022, Fitch Ratings affirmed Brazil's Long-Term Foreign Currency Issuer Default Rating at 'BB-' and revised the Rating Outlook to Stable from Negative. In June 2022, S&P Global Ratings also affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil. Moody's, in April 2022, affirmed Brazil's long-term Ba2 issuer ratings and senior unsecured bond ratings, (P)Ba2 senior unsecured shelf ratings, and maintained the stable outlook. On the other had, DBRS, in August 2022, confirmed Brazil's Long-Term Foreign and Local Currency Issuer Ratings at BB (low). ============= J A M A I C A ============= JAMAICA: Manufacturing Prices Fell in October --------------------------------------------- RJR News reports that the Statistical Institute of Jamaica (STATIN) is reporting that the cost to produce goods in the manufacturing industry fell in the month of October. The Producer Price Index for the sector was down one per cent, according to RJR News. The main contributor was a decline in the major group, 'Refined Petroleum Products', which fell by 6.4 per cent, due to lower crude oil prices on the international market, the report notes. But the falloff was tempered by a 0.4 per cent increase in the index for the major group 'Food Beverages & Tobacco,' the report relays. October's PPI movement brought the point-to-point index for the manufacturing industry up by 14.6 per cent, the report dicloses. The three major groups contributing to the growth were 'Refined Petroleum Products,' 'Food, Beverages & Tobacco', and 'Chemical and Chemical Products, the report relays. Mining and Quarrying PPI Falls The October PPI for the Mining and Quarrying industry fell by 9.4 per cent, the report says. The movement in the index for the industry was mainly attributed to a 9.9 per cent decline in the index for the major group 'Bauxite Mining & Alumina Processing,' adds the report. The index for the other major group 'Other Mining & Quarrying' saw slight movement, the report discloses. The Mining & Quarrying industry's point-to-point index fell by 19.8 per cent, following a 20.8 per cent decline in the index for the major group 'Bauxite Mining & Alumina Processing,' 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. JAMAICA: Seeking Investments of at least US$1 Billion ----------------------------------------------------- RJR News reports that Jamaica is looking to secure investments of US$1 billion or more. Finance Minister Dr. Nigel Clarke says the government is pushing to have amendments to the Large Scale Projects and Pioneer Industries Act of 2013 approved before the end of the financial year to support this new agenda, according to RJR News. "We have Omnibus Incentive legislation that is the framework for everyday investments but with the track record that Jamaica has established and with the macroeconomic fundamentals that we have, which are strong, our goal now is to attract investments that are a billion US dollars in size and more," he announced, the report notes. Dr. Clarke was contributing to the opening discussion at the Invest Jamaica 2022 Business Conference, 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. =========== M E X I C O =========== BRASKEM IDESA: S&P Alters Outlook to Negative, Affirms 'B+' ICR --------------------------------------------------------------- On Nov. 29, 2022, S&P Global Ratings revised its outlook on Mexico-based polyethylene producer Braskem Idesa S.A.P.I.'s (BI) to negative from stable and affirmed its 'B+' issuer credit rating. At the same time, S&P affirmed its 'B+' issue-level and '3' recovery ratings on the company's senior secured notes due 2029 and 2032. The '3' recovery rating indicates its expectation of meaningful (50%-90%; rounded estimate 65%) recovery prospects in the event of a payment default. The negative outlook reflects S&P's view that BI could face a complex price environment for its products (polyethylene) and raw materials (mainly ethane), increasing its weighted net debt to EBITDA above 5.0x in the next 12 months. Despite revenue and EBITDA improvement last year, the outlook revision reflects expected higher leverage for 2022 and 2023. The company strengthened its financial results during 2021 due to robust demand for its products and favorable polyethylene prices. However, its revenue and EBITDA deteriorated in the third quarter of 2022. On a quarterly basis, BI posted MXN5.5 billion in revenue, down 20.1% from a previous-year level mainly due to lower polyethylene prices. At the same time, raw material prices rose, especially ethane (the main input for polyethylene production, which represents about 55% of its total costs) and natural gas. This caused BI's EBITDA to plummet about 85% to about MXN578 million from MXN3.6 billion last year. Consequently, due to lower EBITDA during the third quarter of 2022, BI's net leverage increased to 4.2x for the 12 months ended September 2022. S&P said, "We also expect that the fourth-quarter results will be in line with those in the third quarter due to current polyethylene prices. Therefore, we now forecast BI's net weighted debt to EBITDA to be well above 5.0x by the end of 2022, up sharply deviating from our previous expectation of less than 4.0x. Nonetheless, we still expect a steady demand for the company's products (high- and low-density polyethylene), given their diverse final applications and the resiliency of the industries that BI serves (packaging, hygiene, cleaning, pharmaceuticals, food, and beverage among others). Nevertheless, despite the basic consumption nature of BI's products, we expect a challenging environment for the next 12 months given that polyethylene prices could remain sluggish, denting BI's EBITDA and credit metrics." S&P said, "We could downgrade BI if polyethylene prices continue to fall further than expected amid persistently high inflation. Although we expect lower EBITDA for the remainder of 2022, which in turn should raise weighted net debt to EBITDA well above 5.0x by year-end, we forecast a gradual recovery of polyethylene prices during 2023 that should enable the company's EBITDA to bounce back. Additionally, although we expect a complex scenario for commodity prices to remain due to persistently high inflation, we assume that ethane and natural gas prices will gradually normalize during 2023, supporting BI's profitability." Stricter cost controls and BI's operating efficiencies should cause weighted net debt to EBITDA to drop below 5.0x for the next 12 months. On the other hand, if polyethylene prices continue to drop and raw material prices to remain high because of inflationary pressures and the Russia-Ukraine conflict, the company's weighted net debt to EBITDA could reach beyond our 5.0x threshold. This could lead us to downgrade BI. Despite challenging business conditions, BI's liquidity remains strong. The company still maintains a strong liquidity position with a cash balance of about MXN8 billion (about $400 million) as of Sept. 30, 2022. BI still has a comfortable debt maturity profile, with no material financial obligations in the next 12 months, given short-term debt maturities of only about MXN523.4 million as of Sept. 30, 2022, through the amortizations of a bank loan. The company's debt structure mainly consists of its two senior secured notes of $900 million and $1.2 billion, which represents about 94% of its total debt due 2029 and 2032, respectively. Last year, BI issued $1.2 billion in senior notes, and coupled with an amortizing bank loan, fully refinanced a project finance loan, extending its debt maturity profile. Although S&P expects lower EBITDA than in previous year, it expects BI to deploy its capital expenditures (capex) prudently and lower its dividend payments in order to preserve its cash and keep a solid liquidity position. The negative outlook reflects S&P's view that BI could face difficulties stemming from lower polyethylene prices and higher raw materials (mainly ethane) prices. These factors could continue sapping the company's EBITDA and increase its weighted net debt to EBITDA above 5.0x. S&P could lower the rating on BI in the next six-12 months if: -- The supply-demand dynamics continue to depress polyethylene prices and the company's credit metrics; -- Business conditions or global economy recovery stalls, deepening a drop in the company's revenues and margins, which would cause EBITDA to continue eroding; -- BI's production and sales prices don't reach the expected levels, crimping revenue and EBITDA; -- Weighted average net debt to EBITDA remains well above 4.0x and the weighted EBITDA interest coverage ratio below 3.0x consistently due to lower EBITDA; -- Cash flows plummet well beyond our expectations, weakening liquidity well beyond our assumptions; and/or -- If the company increases substantially its debt to fund capex or other investments. S&P could revise our outlook on BI to stable in the next six-12 months if: --- There is evidence of stable operating performance, and BI's finances improve, with higher revenue through increasing volume sales and polyethylene prices; -- BI boosts its EBITDA while its margins significantly recover; and/or -- Its credit metrics improve, toward a weighted net debt to EBITDA below 4.0x and weighted EBITDA interest coverage of more than 3.0x on a consistent basis. The above could result from higher output at its polyethylene production plant, coupled with solid product demand and favorable polyethylene prices. BI was incorporated in April 2010 and is based in Mexico City. It's a petrochemical company primarily producing polyethylene. The company's petrochemical complex in Veracruz (the Etileno XXI project) has an annual output of 1.05 million tons of polyethylene, 750,000 tons of high-density polyethylene, and 300,000 tons of low-density polyethylene, using ethane as the principal raw material. Braskem S.A. owns 75% of the company, and Grupo Idesa S.A. de C.V. owns the remaining 25%. Assumptions GDP in Mexico, the U.S., Europe, and Latin America to grow about 2.1%, 1.6%, 3.1%, and 3.0%, respectively, in 2022, and 0.8%, 0.2%, 0.3% and 1.4%, respectively, in 2023. Demand for BI's products has been resilient despite complex business conditions, given strong consumption of its high- and low-density polyethylene. S&P expects consumption of polyethylene to remain stable for 2022 and 2023. Average foreign exchange rate of MXN20.15 per $1 in 2022 and MXN20.75 per $1 in 2023. Given that all of BI's debt is in dollars, and its sales are in the same currency or pegged to it, offsets the exchange-rate risk. S&P's price deck assumptions for natural gas prices are $6.25 per million British Thermal Units (MMBTU) in 2022 and $5.25/MMBTU in 2023. Consolidated revenue to decrease about 5% for 2022. Nonetheless, revenue to jump about 20% for 2023 due to higher volume sales coupled with more stabilized polyethylene sales prices. Lower EBITDA for 2022 due to higher raw material prices, mainly ethane gas and natural gas that represent around 55% and 10%, respectively of the company's cost structure. However, S&P expects a recovery for 2023, coupled with the company's cost controls, operating efficiencies and more stable raw material prices, should reflect EBITDA margins to improve. Capex of about MXN1.9 billion for 2022 and MXN2.1 billion for 2023, mainly for maintenance, the implementation of the logistics for ethane imports, the definitive ethane import terminal, and operational needs. No dividend payments for the remainder of 2022, except MXN205 million (or $10 million) already distributed to Grupo Idesa. No dividend payments for 2023; however, the company can adjust dividends according to its cash flows. Lower debt for the next 12 months because we expect BI to reduce it through the amortizations of its term loan. Key metrics Based on these assumptions, we arrive at the following credit metrics for 2022 and 2023. EBITDA margins in the range of 20%-25% for 2022 and 2023; Adjusted net debt to EBITDA above 5.0x in 2022 and 2023; and EBITDA interest coverage in the 1.5x-2.0x range in 2022 and 2023. We still view BI's liquidity as strong because we expect cash sources to exceed uses by at least 1.5x for the next 12 months, and 1.0x for the subsequent 12 months. In the next two years, we also expect sources to exceed uses even if EBITDA were to decline by 30%. We also incorporate qualitative factors in our liquidity analysis, including BI's solid relationships with banks. We continue to view the company's risk management as generally prudent, with efforts to maintain liquidity through strict cash controls that align inflows with expenses, and the flexibility to address short-term pressures. In addition, in our view, BI can adjust its capex by prioritizing investments, keeping a solid cash position to comply with the debt maturity profile. Principal liquidity sources: -- Cash and cash equivalents of MXN8 billion (about $396.1 million) as of Sept. 30, 2022; and -- Funds from operations (FFO) of about MXN2.3 billion for the next 12 months. Principal liquidity uses: -- Short-term debt maturities of MXN523.4 million (about $25.8 million) as of Sept. 30, 2022; -- Working capital requirements of about MXN920 million for the next 12 months; and -- Capex of about MXN2.1 billion for the next 12 months. S&P said, "We performed a recovery analysis to arrive at our issue-level rating on BI's senior secured notes. "Our issue-level rating of 'B+' on BI's notes due 2029 and 2032 is in line with the issuer credit rating. We maintain our recovery rating of '3' indicating our expectation for meaningful recovery in the event of payment default (50%-90%). "We valued BI on a liquidation basis, given our belief that in a hypothetical default scenario, the company's main assets would be sold, disrupting its business continuity. We valued the company under the discrete asset valuation analysis to determine its stressed enterprise value at the hypothetical point of default, given its heavy asset base. "Our simulated default scenario contemplates a default in 2026 caused by a downturn in the petrochemicals and chemicals industry due to a global economic downturn that erodes consumption and demand for BI's products and results in more volatile raw material prices, coupled with increased competition. We estimate that for the company to default, its EBITDA would need to plunge, causing its business to deteriorate." -- Simulated year of default: 2026 -- EBITDA at emergence: about MXN4.1 billion -- Implied enterprise value multiple: 5.0x -- Jurisdiction: Mexico -- Gross enterprise value (EV) at default: about MXN33.6 billion -- Net EV at default (after 5% administrative costs): about MXN31.9 billion -- Recovery rating: '3' -- Recovery expectations: 50%-90% *All debt amounts include six months' prepetition interest. ESG credit indicators: E-3, S-2, G-2 ===================================== S T . K I T T S A N D N E V I S ===================================== ST. KITTS & NEVIS: Growth Has Slowed the Past Year, IMF Says ------------------------------------------------------------ The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with St. Kitts and Nevis. Growth decelerated marginally in 2017, as the continued decline in CBI inflows slowed growth in construction. Consumer inflation was low, partly due to a small contraction in food prices. The overall fiscal balance remained in surplus but has deteriorated markedly since its 2013-peak, and the debt-to-GDP ratio increased marginally from the previous year. The current account deficit remains high and only marginally declined in 2017, as the decline in CBI receipts was more than offset by growing tourism receipts and a significant decrease in imports. Foreign reserves at the ECCB remained at comfortable levels, well above the various reserve-adequacy metrics. The banking sector has reported capital and liquidity ratios that are well above the regulatory minimum but has elevated NPLs and risks, including delays in completing the debt-land swap arrangement and loss of Corresponding Banking Relationships (CBRs). Medium-term growth is projected to fluctuate around 3 percent under the current policies. It is projected to improve in 2018-20 as the implementation of FDI projects in the tourism sector accelerates and decelerate to around 2.7 percent over time as the momentum slows down. The current account deficit is projected to worsen over the medium term, driven by higher FDI-related imports associated with tourism projects and a tapering of CBI inflows, partially offset by growth in tourism receipts. Downside risks include lower than projected CBI inflows; further delays in resolving the debt-land swap; failure to tackle worsening financial sector vulnerabilities; exposure to major natural disasters; a tighter financial environment from higher U.S. interest rates; and spillovers from regional financial challenges, including loss of CBRs. On the upside, stronger CBI inflows and higher growth in advanced economies could support growth compared to the baseline. Executive Board Assessment Executive Directors welcomed St. Kitts and Nevis's good macroeconomic performance in recent years. However, growth has slowed over the past year, and the medium‑term outlook remains moderate. Directors acknowledged significant challenges, including those associated with declining Citizenship By Investment (CBI) inflows, financial sector vulnerabilities, tighter global financial conditions, and weather‑related shocks. Against this background, Directors encouraged policies to safeguard macroeconomic and financial stability, together with reforms to strengthen competitiveness and foster inclusive growth. Directors noted that, absent any corrective policies, public debt is expected to increase over the medium term, as revenue from CBI receipts further declines. They considered that a significant fiscal adjustment is needed to reverse debt dynamics. The adjustment could focus on both revenue and expenditure measures, including streamlining tax incentives, restructuring activities funded by the Sugar Industry Diversification Foundation, and containing the wage bill through a multi‑year framework. Recognizing the need to maintain fiscal buffers to assist in covering the cost of natural disasters, Directors recommended the establishment of a Growth and Resilience Fund (GRF), which should be linked to a fiscal responsibility framework. They suggested that access to the GRF could be used to respond to adverse shocks and to support natural disaster resilience investment projects. The GRF should have a sovereign wealth fund structure in line with international best practices. Directors expressed concern about the high level of NPLs and urged the authorities to prioritize their resolution, which would include the operationalization of the Eastern Caribbean Asset Management Corporation, a credit bureau, and the strengthening of foreclosure and insolvency legislation. They supported the implementation of IFRS9 and new regulations on provisioning and valuation and encouraged the authorities to closely monitor capitalization levels of the banking system. Directors encouraged the authorities to take decisive steps to accelerate land sales under the debt‑land swap arrangement to mitigate the fiscal and financial sectors from contingent liabilities. They also emphasized the importance of remaining vigilant to CBR risks, enhancing the AML/CFT regime, and strengthening the transparency of the CBI program. Directors agreed that comprehensive structural reforms would strengthen the potential for diversified and inclusive growth, and address competitiveness challenges. They welcomed ongoing efforts to improve the ease‑of‑doing business, support skills development, promote growth in tourism and other sectors, and strengthen social policies and security. Improving labor productivity and promoting trade integration at the regional and international level are also necessary to support competitiveness. ********* 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 * * *