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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, December 22, 2022, Vol. 23, No. 249

                           Headlines



B A H A M A S

FTX: Founder Held in Bahamas, Awaiting Likely US Extradition


B R A Z I L

BRAZIL: Brazil Central Bank to Launch Digital Currency in 2024
OI SA: Exits Bankruptcy Protection After 6++ Years; Shares Jump


E L   S A L V A D O R

GRUPO UNICOMER: S&P Alters Outlook to Negative, Affirms 'BB-' ICR


J A M A I C A

JAMAICA: Jamaica's Inflation Rises to 10.3% in November


T R I N I D A D   A N D   T O B A G O

CL FIN'L: Appeals Court Gives Proman Jan 9 Deadline
TRINIDAD & TOBAGO: Food Inflation Jumps to 11.6%

                           - - - - -


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B A H A M A S
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FTX: Founder Held in Bahamas, Awaiting Likely US Extradition
------------------------------------------------------------
EFE News reports that the founder of the defunct cryptocurrency
exchange giant FTX, Sam Bankman-Fried, was awaiting possible
extradition to the United States following his arrest in the
Bahamas at the request of a New York attorney.

The 30-year-old founder and former CEO of FTX, which collapsed into
bankruptcy with some $3 billion owed to creditors, was arrested
late Monday (Dec. 12) for "various" financial offenses in the
Bahamas and the US, the Royal Bahamas Police Force said in a
statement, according to EFE News.

The US government is seeking criminal charges against
Bankman-Fried, once a high-flier in the crypto world, the report
notes.

The New York Times reports that those charges include wire fraud,
securities fraud and money laundering, among others, the report
relays.  

New York Southern District Attorney Damian Williams, who filed the
arrest warrant, said the sealed indictment against Bankman-Fried
was due to be unsealed, the report says.

In a statement, the Bahamian attorney general Ryan Pinder said
Bankman-Fried's "arrest followed receipt of formal notification
from the United States that it has filed criminal charges against
SBF and is likely to request his extradition," the report notes.

FTX filed for bankruptcy in a dizzying fall from grace, the report
discloses.

The new CEO of FTX, bankruptcy expert John Ray, said in a stinging
court filing later that month that a "substantial portion" of the
assets held by FTX may be missing or stolen, the report relays.

"Never in my career have I seen such a complete failure of
corporate controls and such a complete absence of trustworthy
financial information as occurred here," he added.

Founded in 2019, FTX exploded onto the cryptocurrency scene and
ballooned to a peak value of some $32 billion with over a million
users worldwide. Now in embers, the company has acknowledged some
$3 billion of debt owed to 50 main creditors, the report adds.




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B R A Z I L
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BRAZIL: Brazil Central Bank to Launch Digital Currency in 2024
--------------------------------------------------------------
Reuters reports that Brazil's central bank aims to launch its
digital currency in 2024 after a closed pilot program next year
with financial institutions, bank president Roberto Campos Neto
said, adding that the project had received international attention.


Campos Neto said that the design of the central bank's digital
currency would encourage banks to tokenize their assets, with
considerable efficiency gains, according to Reuters.

"If the digital currency is actually a tokenized deposit, it
inherits all the regulation that already applies to deposits," he
said, adding that it should not disturb monetary policy or hurt
banks' balance sheets, the report notes.

Campos Neto said that representatives of the International Monetary
Fund (IMF) have approached the central bank and given feedback that
this model seems the easiest to implement and other central banks
should look into it, the report relays.

"In the end, we were even flattered to have thought of a system
that other central banks are now thinking of," he said. The
tokenization of deposits should also improve the banks' settlement,
auditing and funding costs, said Campos Neto, the report notes.

The central bank chief also predicted a jump in use of the bank's
popular instant payment system, Pix, once users can access cheaper
credit through the system, without a fee known as the merchant
discount rate (MDR), the report relays.

Launched in November 2020, Pix is free for individuals, but the
system lets banks and payment institutions freely define merchants'
costs both for transfers and receiving funds, the report adds.

                        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).


OI SA: Exits Bankruptcy Protection After 6++ Years; Shares Jump
---------------------------------------------------------------
Reuters reports that shares in Brazilian telecom firm Oi SA soared
after it revealed it was exiting bankruptcy protection, marking the
closure of a restructuring process that lasted more than six years.


Oi filed in June 2016 for Brazil's then-biggest ever bankruptcy
protection after running out of time to reorganize operations and
restructure a multibillion-dollar debt amid a harsh recession in
Latin America's largest economy, according to Reuters.

The firm said that the proceedings had now come to an end after a
Rio de Janeiro court decision, noting that it managed to repay a
4.6 billion reais ($871.43 million) debt with state development
bank BNDES as well as some other loans, the report notes.

In the period, Oi also had to sell its mobile operations to rivals
TIM SA, Telefonica Brasil SA and Claro, a subsidiary of Mexico's
America Movil, in a landmark 16.5 billion-real deal, the report
relays.  After the announcement, common shares in Oi jumped as much
as 53% to 0.26 real in morning trading, the report adds.

As reported in the Troubled Company Reporter-Latin America on Nov.
14, 2022, S&P Global Ratings lowered its global scale issuer credit
rating on Oi S.A. to 'CCC-' from 'CCC+' and the national scale
rating to 'brCCC-' from 'brBB'. S&P also lowered its issue ratings
on the senior unsecured debt to 'CCC-' from 'CCC+' and on the
senior secured debt to 'CCC' from 'B-', with no change in the
recovery ratings.




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E L   S A L V A D O R
=====================

GRUPO UNICOMER: S&P Alters Outlook to Negative, Affirms 'BB-' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on El Salvador-based
retailer Grupo Unicomer Corp. (Unicomer) to negative from stable,
and affirmed the 'BB-' issuer and issue-level credit ratings on the
company.

The negative outlook reflects a potential downgrade in the next six
months if the company's liquidity doesn't improve or if leverage
consistently surpasses our estimates, including adjusted debt to
EBITDA above 3x and free operating cash flow (FOCF) to debt below
10%.

S&P said, "We expect sluggish economic activity in the next 12
months, which coupled with persistently high inflation, will
maintain financing costs elevated in many countries across the
globe. In our view, these factors will spill over into several
jurisdictions where Unicomer operates, likely undermining
discretionary consumption and the company's top-line trajectory,
despite record-high remittances. In response, Unicomer aims to sell
a sizable amount of its current inventory in the next couple of
quarters to bolster cash flows and cash reserve after several
quarters of inventory accumulation to about $150 million above
historical levels--a similar trend among other retailers. We
estimate this will take a toll on Unicomer's profitability, given a
likely more aggressive discount campaign, decreasing its retail
operations' adjusted EBITDA margins towards 7.5%-8.0% in the next
12 months. Although most of its short-term debt is secured by
account receivables on its captive finance (consumer finance)
operations that mitigate short-term liquidity risks, without
whittling down the inventory, we believe that high short-term debt
could pressure the company's liquidity.

"Although we expect the company to maintain adjusted net debt to
EBITDA in the 2.0x-3.0x range at the fiscal year ending March 2023.
However, once approved, CSF's acquisition, the price of which
remains undisclosed, will require additional financing, aside from
Unicomer's internal cash flows and the November capital injection
of about $80 million by its shareholders. Consequently, there's a
higher likelihood of Unicomer's adjusted leverage remaining close
or surpassing the 'BB-' rating threshold, which prompted us to
revise the outlook to negative. The retail operations' adjusted
debt to EBITDA deteriorated to 3.0x for the 12 months ended Sept.
30, 2022, while the reported net debt to EBITDA, including consumer
finance operations is close to 4.75x.

"We expect Unicomer to replenish its cash reserves by $100 million
- $150 million in the next couple of quarters by shrinking its
inventory to historical levels. Nonetheless, with a cash balance of
$80 million and short-term debt of $276 million as of Sept. 30,
2022, and considering that the $350 million senior notes mature in
the next 15 months, we believe that Unicomer could be exposed to
refinancing risks over the next few quarters amid high financing
costs for emerging-market issuers. On the other hand, Unicomer has
sound relationship with several banks, reflected in its diversified
pool of creditors, available credit lines, along with the financial
strength of its two shareholders, Milady Associates Ltd. (not
rated) and El Puerto de Liverpool S.A.B. de C.V. (BBB/Stable/--),
and the company' short-term account receivables from its credit
operations, which as of Sept. 30, 2022, were close to $520 million.
We expect Unicomer to make progress in refinancing its 2024 notes
in the next six months, although if no tangible progress has been
achieved by then, and/or cash flows pressures remain, we could
downgrade the company by one or more notches."

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




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

JAMAICA: Jamaica's Inflation Rises to 10.3% in November
-------------------------------------------------------
RJR News reports that the inflation rate for Jamaica now stands at
10.3 per cent.

The Statistical Institute of Jamaica (STATIN) says for the 12
months up to November, the increase in the cost of goods was mainly
influenced by a two per cent increase in the index for 'Food and
Non-Alcoholic Beverages,' according to RJR News.

Also affecting the movement of the Consumer Price Index was the
'Education' division, which had a 1.7 per cent rise in its index
due to increased , the report notes.

The overall rate of inflation was, however, tempered by a 2.4 per
cent fall in the index for the division 'Housing, Water,
Electricity, Gas and Other Fuels' due to lower electricity rates,
the report relays.

It was also tempered by a 0.2 per cent decline in the index for the
'Transport' division, as a result of lower petrol prices, the
report says.

For the fiscal year to date, the inflation rate stands at 6.2 per
cent, 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.




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T R I N I D A D   A N D   T O B A G O
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CL FIN'L: Appeals Court Gives Proman Jan 9 Deadline
---------------------------------------------------
Trinidad Express reports that a deadline of January 9 has been
given by the Court of Appeal to Proman Holdings (Barbados) to
provide full disclosure of documents requested by CL Financial
(CLF) relating to the sale of Clico assets to it in 2009.

The court rejected an application by attorneys for Proman that it
not set a specific date for when the documents should be handed
over, according to Trinidad Express.

Instead, the three-judge panel comprising Justices of Appeal Alice
Yorke-Soo Hon, Gregory Smith and Vasheist Kokaram pointed out that
the substantive appeal was set to take place on January 27, and
therefore, the documents had to be disclosed before then, the
report notes.

While she submitted that since then her client had received some of
the requested documents from Proman, she was concerned by recent
communications her client had received that the disclosure of other
information requested could be in breach of the Companies Act, the
report relays.

In addition to that, the attorney said Proman did not provide her
client with any date as to when the balance of the documents could
be disclosed, the report discloses.

"We have sent a consent order to them and they indicated they would
have no difficulty with that but only on certain conditions," Peake
submitted, the report relays.

In response to her complaints, however, Proman's lead attorney
Simon Salzedo, KC, said his client had been complying with the
court's order in the best way it could, the report notes.

However, he submitted that it had concerns over the disclosure of
any commercially sensitive CLF may request, the report relays.

Salzedo said CLF had asked for "a great deal of information"
spanning approximately 4,000 pages, and these documents needed to
be examined to ensure that the disclosure of any of it would not be
in breach of commercial confidentiality, the report says.

Some of the other information requested by CLF was not even under
the control of his client, he said, and therefore, that would make
it impossible for Proman to disclose it, the report notes.

"We have been disclosing the information, but we ask for the
opportunity to properly examine the specific pieces of information.
If we identify items of commercial sensitivity then we should be
allowed to raise it before the court, the report relays.

"Some of the documents requested are not even in the company's
possession. We cannot agree to all this information being provided
by any particular date because some of it may not be in the control
of my client at all," he stated, pointing out that CLF wanted the
documents by the end of this week, the report notes.

Salzedo said Proman had been responding "in good faith" and urged
the court to not impose "a blanket draconian order," the report
says.

Fyard Hosein, SC, however, who appeared for Clico, accused Proman
and its attorneys of deliberately attempting to "hide information
to slow CLF and Clico down," the report relays.

He suggested that Proman was not satisfied with the previous order
of the Appeal Court, it could take its fight to the higher level at
the Privy Council, the report notes.

Salzedo took issue with the accusation though, the report notes.

"I ask the court to disregard that. We have accepted the orders of
the court and we have complied by providing information as
practically possible," he said, the report relays.

On October 19, the Justices had granted an interim stay to Proman,
preventing the liquidators of CL Financial (CLF) from enforcing a
judgment delivered in its favour in last October by Justice
Devindra Rampersad, the report discloses.

The High Court order had to do with the sale of shares in CLICO
Energy to Proman Holdings in February 2009 that was facilitated by
Lawrence Duprey, former executive chair of CL Financial and CLICO,
just three days after he signed a Memorandum of Understanding to
bail out the group, the report notes.

While Proman appealed the High Court's decision, it was ordered by
the Appeal Court to pay into the court US$83 million in revenue
from its subsidiaries that it had been holding in escrow since
October 2021, pending the outcome of the substantive appeal, the
report says.

That payment was to be made by no later than October 31, the report
relays.

Further to that CLF and CLICO were also allowed to appoint two
directors to the board, who would be allowed to access PETL's
(formerly CLICO Energy) financial records, the report notes.  The
two directors on the board of Process Energy are Ulric Miller, a
CLICO director, and David Holukoff, one of CLF's two joint
liquidators, the report relays.  Peake explained that Holukoff is a
corporate director, who represents GTSS, a Grant Thornton entity,
the report says.

The main area of contention is that CLF and Clico are claiming that
the shares sold were valued at US$130 million, way in excess of the
US$46.5 million for which the shares had been purchased by Proman
on January 3, 2009, three days after the MoU. Shortly after Proman
acquired the 51 per cent shareholding in CLICO Energy from CLF and
CLICO, it renamed CLICO Energy to Process Energy Trinidad Ltd, the
report relays.

In his January 30, 2021 judgment, Justice Rampersad found that
Duprey acted without due care and diligence and even failed in his
fiduciary duties under the Companies Act, as he failed to act
honestly and in good faith with a view to the best interest of the
companies, the report notes.

At the time the deal was struck, CLF controlled 34 per cent of the
shares of CLICO Energy; CLICO, 17 per cent and Proman owned the
49-per cent balance, the report says.

Given that Proman purchased the shares held by both CLF and CLICO,
this resulted in Proman controlling the entire company, the report
relays.

In its claim, attorneys for CL Financial and CLICO contend Duprey
did not have the authority to sell CLICO's 17 per cent stake in
CLICO Energy, which they claimed was held by CL Financial in trust
for CLICO, the report discloses.

In 2017, the CLF conglomerate was put into liquidation by the
Government to clear the remainder of its debt arising out of its
multi-billion-dollar bailout by Government, the report adds.

                 About CL Financial/CLICO

CL Financial was one of the largest privately held conglomerate in
Trinidad and Tobago. It was originally founded as an insurance
company and has since expanded to be the holding company for a
diverse group of companies and subsidiaries.

CL Financial is the parent company of Colonial Life Insurance
Company (Trinidad) Limited (Clico).  CLICO is now the Company's
insurance division.

CL Financial however experienced a liquidity crisis in 2009 that
resulted in a "bail out" agreement by which the government of
Trinidad and Tobago loaned the company funds ($7.3 billion as of
December 2010) to maintain its ability to operate, and obtained a
majority of seats on the company's board of directors.

The companies to be bailed out were: CL Financial Ltd (CLF);
Colonial Life Insurance Company Ltd (CLICO); Caribbean Money Market
Brokers Ltd (CMMB); Clico Investment Bank (CIB) and British
American Insurance Company (Trinidad) Ltd (BAICO).

As reported in the Troubled Company Reporter-Latin America in July
2017, CL Financial Limited shareholders vowed to pay back a TT$15
billion (US$2.2 billion) debt to the Trinidad Government.


TRINIDAD & TOBAGO: Food Inflation Jumps to 11.6%
------------------------------------------------
Trinidad Express reports that the Central Bank reported Dec. 11
that headline inflation in T&T increased from 4.1 per cent in March
2022 to 6.3 per cent in September, 2022.

In its November Monetary Policy Report, which cited data from the
Central Statistical Office, the Central Bank said: "Food inflation
maintained its upward trajectory over the period, moving from 7.9
per cent in March 2022 to 11.6 per cent in September 2022,"
according to Trinidad Express.

The report attributed the rise in food prices to the continuation
of "the pass-through of supply-side factors (such as elevated
international food prices, high shipping costs and logistical
delays) to domestic food prices," the report notes.

The report relays that according to the Central bank report price
increases in September 2022 were broad-based, affecting most
sub-indices including:

* bread and cereals (17.1 per cent);

* meat (13.4 per cent);

* fish (8.0 per cent);

* milk, cheese and eggs (6.1 per cent);

* butter, margarine and edible oils (12.7 per cent);

* vegetables (13.8 per cent);

* food products not elsewhere classified (12.3 per cent); and

* non-alcoholic beverages (5.8 per cent) sub-indices.

The report said that conversely, slower price increases were
recorded for the fruits (9.2 per cent) and sugar, jam and other
confectionery (3.7 per cent) sub-indices, Trinidad Express
discloses.

In a section of the report that looked at the implications of the
2023 budget for monetary policy, the Central Bank said the most
significant impact to the retail price index (RPI) will come from
the pass-through of the measures affecting the transport sub-index,
the report notes.

"While the increases in the price of fuels at the pump will have a
minimal direct impact on the transport sub-inde3, subsequent
increases to maxi and taxi fares, and transportation costs in
general, can have a more substantial effect," said the Central
Bank. It also noted that the food and non-alcoholic beverages
sub-index could be impacted indirectly, as a result of higher
transportation costs, the report relays.

Addressing the domestic economy as a whole, the report stated
preliminary indicators suggest a continued rebound in economic
activity during the third quarter of 2022 (July 1 to September 30,
2022). The growth was broad-based as both the energy and non-energy
sectors grew "buttressed by a robust expansion in natural gas
production," the report relates.

The report indicated that natural gas output jumped by 20 per cent
year-on-year in the third quarter of 2022 "on the heels of improved
production from bpTT and Shell Trinidad and Tobago Ltd (Shell),"
the report adds.



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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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