/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/221226.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 Monday, December 26, 2022, Vol. 23, No. 251 Headlines A R G E N T I N A ARGENTINA: President Alberto Snubs Court Ruling, Sparking Crisis B R A Z I L BANCO ABC: Moody's Affirms 'Ba2' Deposit Ratings, Outlook Stable BRAZIL: IBGE Forecasts Inflation of 5.90% in 2022 BRAZIL: Public Debt Ends 2022 at Lowest Level in Five Years J A M A I C A JAMAICA: BOJ Pauses Policy Interest Rate Hike M E X I C O INSIGNIA LIFE: A.M. Best Cuts FS Rating to B(Fair) P E R U CAMPOSOL SA: Moody's Lowers CFR & $350MM Sr. Unsecured Notes to B3 T R I N I D A D A N D T O B A G O OCT ENTERPRISES: Zipline Money Unfrozen in BVI V I R G I N I S L A N D S GENEVER HOLDINGS: Gets OK to Hire Neubert as Co-Counsel THREE ARROWS: Voyager to Distribute Claims Recovery to Creditors X X X X X X X X [*] BOND PRICING: For the Week Dec. 19 to Dec. 23, 2022 - - - - - ================= A R G E N T I N A ================= ARGENTINA: President Alberto Snubs Court Ruling, Sparking Crisis ---------------------------------------------------------------- Bunenos Aires Times reports that President Alberto Fernandez pledged to disobey a Supreme Court order to return funding to the government of the opposition-controlled city of Buenos Aires, sparking an institutional crisis and capping off a week of political setbacks. The report says Fernandez on Thursday night(Dec. 22) called the ruling "unprecedented, incongruent and impossible to comply with," and said he would seek to recuse all four judges of the Supreme Court from the case, according to a government statement. "We're before a Supreme Court that's lost the criteria of justice," the report quoted Fernandez, who is a professor of penal law at the University of Buenos Aires, as saying at a separate interview with a local TV channel. "It's definitively acting on political criteria." The case stems from a lawsuit Buenos Aires City Mayor Horacio Rodriguez Larreta filed against the national government in 2020 after Fernández took federal funds intended to the city and gave them to Buenos Aires Province, which is governed by the president's coalition, notes the report. At the time, Fernandez took the decision on the grounds that the city is much wealthier than the province. According to the BA Times, the court ruled Wednesday (Dec. 21) that some of the money must be returned to the city, although not as much as Rodriguez Larreta was seeking. Still, it marked a political victory for the city mayor, who is seen as a top contender for next year's presidential election, and another setback for Fernandez as his ruling Frente de Todoscoalition faces growing infighting, the report notes. The president's decision not to honour the court ruling drew immediate backlash from opposition leaders and constitutional experts, who warned the rule of law is at stake if the government ignores the court. Rodriguez Larreta said the actions "broke the constitutional order," the report notes. "Rulings aren't debated, they're complied with," former president Mauricio Macri tweeted, notes BA Times. "Disobeying a Supreme Court ruling would destroy the nation's legal continuity and expose us to anarchy." Political analysts said the president's action opened up dangerous legal precedents, the report notes. If the government continues to disobey the order, "we'll be able to affirm, without risk of exaggerating, that the rule of law will be dead in Argentina," says Lucas Romero, head of Buenos Aires-based Synopsis Consultores, the report discloses. World Cup Evacuation The criticism heaped on Fernandez's response to the Supreme Court follows a week of setbacks for the president entering the last year of his mandate with a fraying coalition and dwindling popularity, the report relays. Argentina won the World Cup, catapulting the nation into joy and celebration, the report notes. But the team's victory parade was cut short as fans overwhelmed security and swarmed the bus, sparking a blame game between the government and football officials over planning, the report relays. Lionel Messi and other players had to be evacuated by helicopter and chose not to go to the presidential palace for the photo-op with Fernandez, a tradition for most World Cup winners, the report discloses. Argentina's economy also showed signs of slowdown, the report notes. The government reported that economic activity dropped for a second straight month in October while unemployment rose in the third quarter, the report says. Annual inflation is on pace to hit 100 percent in the coming months too, 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 in the Troubled Company Reporter-Latin America on Nov. 18, 2022, S&P Global Ratings affirmed its 'CCC+/C' foreign currency sovereign credit ratings on Argentina. S&P lowered the long-term local currency sovereign credit rating to 'CCC-' from 'CCC+' and the national scale rating to 'raCCC+' from 'raBBB-'. S&P also affirmed its 'C' short-term local currency rating. The outlook on the long-term ratings is negative. S&P's 'CCC+' transfer and convertibility assessment is unchanged. 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. =========== B R A Z I L =========== BANCO ABC: Moody's Affirms 'Ba2' Deposit Ratings, Outlook Stable ---------------------------------------------------------------- Moody's Investors Service has affirmed all ratings and assessments assigned to Banco ABC Brasil S.A. (BAB) or (The Bank), including the long-term local and foreign currency deposit ratings of Ba2 and the long-term counterparty risk rating of Ba1. Moody's also affirmed the bank's baseline credit assessment (BCA) of ba2, BAB's short-term ratings, as well as the counterparty risks assessments of Ba1(cr) for long-term and NP(cr) for short-term. The ratings have a stable outlook. RATINGS RATIONALE In affirming BAB's ba2 BCA, Moody's acknowledges the bank's well-established wholesale franchise focused on large and upper-middle market companies and track-record of disciplined credit risk standards. These strengths have consistently supported the bank's buoyant profitability and capital replenishment capacity through economic cycles. BAB's recent initiative to improve business diversification by lending to small and midsized companies (SMEs) has enhanced future earnings generation and recurrence. This will be particularly important amid a scenario of deceleration in economic activity for the next 12-18 months, when business growth will likely moderate and credit costs rise. At the same time, competitive pressures in the wholesale segment will likely intensify as peer banks will increase lending at BAB's lower risk core target markets. BAB's problem loans ratio has averaged around 0.8% over different credit cycles within the last seven years, attesting to the bank's well-established risk guidelines and disciplined credit risk standards. In 2023, the combination of high interest rates with slower business activity will likely constrain loan repayment capacity of SMEs, a segment BAB started operations in 2019 and has been growing loan origination at a strong pace, although these loans still accounted for 9% of the bank's total credit exposure as of September 2022. This portfolio also has shorter tenors, lower tickets, higher yields and stronger collateralization structures than the bank's traditional portfolio of corporate loans, hence improving asset risk management. In addition, BAB has historically maintained conservative provisioning buffers, with loan loss reserves representing 2.3% of gross loans and 9.6x problem loans as of September 2022. BAB's net income to tangible assets ratio improved to 1.5%, compared to the 1.2% five-year average ratio as of December 2021. Profitability has been supported by the strong origination of higher margin loans to SMEs while asset quality has been consistently well-controlled, increasing contribution from more value-added products (i.e. derivatives and cash management), and non-interest income, up by 19% in the last 12 months ended in September 2022, that resulted from the customer base expansion, the recently added insurance broker and strong results from its investment banking division amid favorable conditions in the local debt market. The increase in earnings in the period compensated a 58% rise in operating expenses, mainly due to new hirings and investments related to its business expansion, ongoing digital transformation and diversification strategy. The bank's capital position has benefited from consistent internal capital generation. Moody's ratio of common tangible equity to risk-weighted assets was 9.6% in September 2022, up from 9.2% one year prior. On a regulatory basis, the bank had a common equity tier 1 ratio of 11.9% in September 2022. Moody's assessment of BAB's capital also incorporates the bank's higher leverage than similarly rated peers stemming from its sizable off-balance sheet portfolio of issued guarantees. The ba2 BCA also reflects BAB's reliance on confidence-sensitive wholesale funding, as illustrated by a ratio of market funds to tangible banking assets of 49.2% in September 2022. Refinancing risk is counterbalanced by the bank's good access to local and international investors, which supports a relatively diversified funding mix, and conservative liquidity management. The bank has also centered efforts on increasing funding granularity by expanding retail deposits sourced through both third-party and its own digital platforms, and the share of funding invested by individuals increased to 16% from 13% in the 12 months ended in September 2022. The bank's Ba2 deposit rating takes into account its adjusted BCA of ba2 and does not incorporate any affiliate support from its majority shareholder, Arab Banking Corporation (unrated). However, Moody's acknowledge the strong shareholder commitment demonstrated by a conservative dividend policy in the Brazilian subsidiary and the relevant contribution of BAB to its shareholder's results. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS At the moment there is no upward pressure on BAB's ratings because they are constrained by Government of Brazil's sovereign bonds rating of Ba2, with stable outlook. Downward pressure on BAB's BCA, and ratings, could emerge from a sudden deterioration in the bank's asset quality, leading to a contraction in bank's loss buffers, such as capital and reserves, which would significantly weaken the bank's profitability. METHODOLOGY USED The principal methodology used in these ratings was Banks Methodology published in July 2021. LIST OF AFFECTED RATINGS Affirmations: Issuer: Banco ABC Brasil S.A. Adjusted Baseline Credit Assessment, Affirmed ba2 Baseline Credit Assessment, Affirmed ba2 ST Counterparty Risk Assessment, Affirmed NP(cr) LT Counterparty Risk Assessment, Affirmed Ba1(cr) ST Counterparty Risk Rating (Foreign Currency), Affirmed NP ST Counterparty Risk Rating (Local Currency), Affirmed NP LT Counterparty Risk Rating (Foreign Currency), Affirmed Ba1 LT Counterparty Risk Rating (Local Currency), Affirmed Ba1 ST Bank Deposit (Foreign Currency), Affirmed NP ST Bank Deposit (Local Currency), Affirmed NP LT Bank Deposit (Foreign Currency), Affirmed Ba2, STA LT Bank Deposit (Local Currency), Affirmed Ba2, STA Outlook Actions: Issuer: Banco ABC Brasil S.A. Outlook, Remains Stable BRAZIL: IBGE Forecasts Inflation of 5.90% in 2022 ------------------------------------------------- Richard Mann at Rio Times Online reports that the IPCA-15 (National Broad Consumer Price Index 15) ended 2022 at 5.90%. The monthly rate rose 0.52% in December, according to Rio Times Online. The index is considered a pre-inflation index, the report notes. The IBGE (Brazilian Institute of Geography and Statistics) released the result Dec. 23, the report discloses. In November, the IPCA-15 rose 0.53%, the report relays. The accumulated figure for the October-December quarter stood at 1.21%, the report relays. The preliminary inflation rate decelerated from 6.17% to 5.9% in the 12 months. Last year it had closed at 10.42%, 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). BRAZIL: Public Debt Ends 2022 at Lowest Level in Five Years ----------------------------------------------------------- Rio Times Online reports that according to the Ministry of Economy, the general government's gross debt will end in 2022 at its lowest level in five years. In the evaluation report of primary revenues and expenses published Dec. 22, the team of Minister Paulo Guedes projected a debt equivalent to 73.7% of the Gross Domestic Product (GDP) at the end of this year, the same level as in Dec. 2017, according to Rio Times Online. In the same document, the ministry raised from R$ 23.4 (US$4.5) billion to R$ 34.1 billion, the estimated primary surplus of the federal government this year, the report notes. 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: BOJ Pauses Policy Interest Rate Hike --------------------------------------------- Dashan Hendricks at Jamaica Observer reports that the Bank of Jamaica has kept its policy interest rate unchanged for the first time since its August 2021 monetary policy committee (MPC) meeting, citing a "generally favorable" inflation outlook after 14 months of matching red hot price increases with feverish rate hikes. The central bank had first signaled a willingness to halt the increases in its policy interest rate from as early as August, and repeated it in November, "if the incoming data continue to reflect a downwards track for inflation," according to Jamaica Observer. But now it says, even though the 12-month inflation rate for November was reported at 10.3 per cent - the highest it had been since June - the fact that the price increases were within the range of 9.5 per cent to 10.5 per cent that it expected, and appears to be trending down, it was time to halt the rate increases, the report notes. "The key external drivers of headline inflation, such as grain, fuel, and shipping prices, continued to trend downwards and broadly in line with the bank's projections," it said, as it added, "as expected, the pace of monetary tightening by the United States Federal Reserve Board (Fed) appeared to be slowing," the report relays. The slowing of rate increases in the US is key to the BOJ slowing or halting its own rate increases, the report says. In the past, it has said it could not stop hiking rates if the Fed is hiking rates out of fear it may cause capital flight, the report notes. But despite the positive trends in terms of headline inflation, core inflation - which excludes food and fuel prices from the overall measurement - remains uncomfortably high at 8.8 per cent in November, even though it was lower than the 9 per cent recorded a month earlier, the report relays. At 8.8 per cent, the core inflation rate is twice the lower end of the BOJ target of 4 per cent to 6 per cent for headline inflation each year, the report discloses. For sure, fuel prices are declining, though they remain high. Ahead of petrol price announcements tomorrow, the cost of E10-87 gasoline, the lowest grade and cheapest motor fuel, had an ex-refinery price of $162.66 per litre, the report notes. That is down 33 per cent from its peak of $215.89 per litre recorded in early June and the lowest it has been in exactly one year, when the ex-refinery price was $162 per litre on December 23, the report relays. At the same time, liquefied natural gas prices fell by 7.9 per cent during the last month, compared to a projected decline of 2 per cent, which should augur well for electricity prices in Jamaica, the report discloses. Food prices remain high as well, up 14.3 per cent in the last year, outstripping the headline inflation rate of 10.3 per cent in November, on higher costs for vegetables, tubers, plantains, cooking bananas, and pulses following adverse weather conditions in the September 2022 quarter, the report relays. However, the BOJ said, "The indicators suggest that inflation over the next three to six months will be broadly consistent with the bank's most recent inflation forecast. That, as international fertiliser prices fell by an average monthly rate of 8.7 per cent for October to November 2022, which should support lower agricultural prices. The BOJ is also expecting that agricultural prices will fall in early 2023 as a result of higher production from replanting," the report discloses. Immediately, though, the central bank is hoping that the rate hikes it has been implementing since October last year will start to feed into the wider economy, 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 =========== INSIGNIA LIFE: A.M. Best Cuts FS Rating to B(Fair) -------------------------------------------------- AM Best has downgraded the Financial Strength Rating to B (Fair) from B+ (Good), the Long-Term Issuer Credit Rating to "bb" (Fair) from "bbb-" (Good) and the Mexico National Scale Rating to "a.MX" (Excellent) from "aa-.MX" (Superior) of Insignia Life S.A. de C.V. (Insignia) (Mexico). Concurrently, AM Best has placed these Credit Ratings (ratings) under review with negative implications. These rating actions follow the sustained deterioration of the financial strength of its parent, Proyecto Insignia, S.A.P.I. de C.V.(PIN), and its potential effects on Insignia's balance sheet strength. The ratings reflect Insignia's balance sheet strength, which AM Best assesses as strong as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. Insignia's operating results have been impacted heavily by COVID-19-related claims during the past two years, on which significant losses reported in the operating entity have in turn translated into a severe weakening of PIN's capital base, further deteriorating its already elevated financial leverage. The under review with negative implications status points to the impact that the high financial leverage at the holding company level could have on Insignia's balance sheet strength, as the sole source of revenue of its parent company. In addition, the ongoing losses in net results could potentially result in a sharp decrease in risk-adjusted capitalization. AM Best will continue to monitor this situation as it evolves. The methodology used in determining these ratings is Best's Credit Rating Methodology (Version Nov. 13, 2020), which provides a comprehensive explanation of AM Best's rating process and contains the different rating criteria employed in the rating process. ======= P E R U ======= CAMPOSOL SA: Moody's Lowers CFR & $350MM Sr. Unsecured Notes to B3 ------------------------------------------------------------------ Moody's Investors Service has downgraded Camposol S.A.'s corporate family rating and the rating of its 6% $350 million senior unsecured notes due 2027 and guaranteed by Camposol's parent company, CSOL Holding Ltd. to B3 from B1. The outlook remains negative. The downgrade of Camposol's ratings reflects persistent tight liquidity and weak credit metrics. Moody's believes that, due to a deteriorated economic environment, Camposol will continue to operate with weak leverage and coverage metrics through 2023. The rating action also considers the high refinancing risk associated with the company's $202 million in debt maturing in the next twelve months and the limited financial flexibility to absorb external shocks amid a challenging economic environment and tighter credit conditions. Downgrades: Issuer: Camposol S.A. Corporate Family Rating, Downgraded to B3 from B1 Backed Senior Unsecured Regular Bond/Debenture, Downgraded to B3 from B1 Outlook Actions: Issuer: Camposol S.A. Outlook, Remains Negative RATINGS RATIONALE The B3 rating of Camposol incorporates weaker than expected results in 2022 that materially deviate from original expectations with a 44% drop in YTD EBITDA as of September 2022, compared to the year before and as reported by the company. Higher costs of inputs, particularly fertilizers and freights, coupled with lower prices for avocados and blueberries, will continue to challenge the company's ability to generate cash flows through 2023. The company posted a Moody's adjusted EBITDA margin of 16.7% and leverage of 8.4x for the last twelve months ended September 2022, which negatively compare to the 29.3% and 4.3x, respectively, posted in December 2021. While freights costs are signaling some reduction, Moody's expects these to remain above historical averages in the 2023-2024 period. At the same time, Camposol's liquidity has been under pressure by working capital required to build inventories of fertilizers and other inputs. The negative working capital drove higher short term debt to finance a $187 million gap as of September 2022, which negatively compares to the company's cash balance of $28 million. The bulk of the short term debt is comprised of advised working capital lines that are secured by inventories providing liquidity during the harvesting season. To address the liquidity pressures, Camposol shared an updated guidance for 2023 that includes a reduction of capex to $65 million, no dividend distribution and a 10% SG&A savings. In addition, Camposol confirmed that it is currently working on refinancing its short term debt extending its maturities. For this reason Moody's believes that any leverage reduction will be primarily driven by EBITDA improvement rather than a material debt reduction. Given the challenging economic environment forecasted for 2023, leverage will remain above 6 times in the foreseeable future. Other sources of liquidity include $46 million available under the company's $60 million revolving credit facility that was secured by Camposol in October 2021. On December 7, the Government of Peru (Baa1 stable) restored government and constitutional order after sitting President Pedro Castillo attempted to dissolve congress. Since then, the country has a new president, Dina Boluarte. Social protests led the government to declare a 1-month state of emergency on December 14. Demonstrators blocked roads, cutting off supplies to copper mines and local food markets and shutting down tourism sites. Most of the protests are concentrated in the southern region of Peru, where most of the agribusiness and mining activities are concentrated. This increases the risk for Peruvian companies; although Camposol mostly operates in the northern region and it already completed most of its harvest season. Nonetheless, Moody's believes that this could, in a stressed scenario, delay the company's ability to execute liability management exercises. The B3 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; weak liquidity and high leverage; its exposure to weather events; and the commoditized and seasonal nature of the company's highest-selling fruits. The negative outlook reflects the company's weak liquidity and the uncertainty around the company's cash flow generation capacity in the current global and domestic environment in Peru, increasing the risk of a distressed exchange. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Camposol's ratings could be upgraded if the company improves its liquidity profile by extending the maturity of its short term debt and addressing its 2023 maturities. Longer term, positive pressure could arise should the company increases its size and geographic diversification, while maintaining an adequate liquidity and adj. debt/EBITDA below 6x, EBITA/interest expense is above 1.5x. The ratings could be downgraded if Camposol's liquidity worsens further or if the company is unable to rollover its short term debt. Lack of success in improving credit metrics such that Camposol's adj. debt/EBITDA is consistently maintained above 7x without clear prospects of improvement or EBITA/interest expense remains below 1.0x. 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 $426 million for the last twelve months ended September 2022. ===================================== T R I N I D A D A N D T O B A G O ===================================== OCT ENTERPRISES: Zipline Money Unfrozen in BVI ---------------------------------------------- Leah Sorias at Trinidad Express reports that OCT Enterprises LTd, the company sued by the Tobago House of Assembly (THA) for failing to deliver a $2.5 million zipline in Tobago, said a British Virgin Island's judge has lifted a freeze order on the bank accounts of their two directors and has ordered the THA to pay their costs. THA is suing for US$416,900 for alleged breach of contract in the zipline project planned for the Main Ridge Forest Reserve over a distance of 1.5 kilometres, according to Trinidad Express. A statement by OCT Enterprises said their directors, Richard Graham and Darren Hreniuk, were relieved that the court was able to unfreeze their accounts after the THA, through its lawyers Alexander Jeremie & Company, claimed that the company acted fraudulently in its dealings with THA zipline project, the report discloses. "We are happy that the truth is coming to light in this matter and we also intend to fully clear our name in the T&T courts. We have been operating for more than 20 years with over 35 projects in 15 countries. It was the THA that sought us out. I don't wish to say anymore as these proceedings are set to be heard by the T&T courts," Hreniuk stated, the report notes. The statement said: "Justice Tana'ania Small Davis KC in the Eastern Caribbean Supreme Court's commercial division for the High Court of the BVI, lifted the freeze after she found no basis to continue the freeze based upon the arguments put forward by the THA's legal team. "The BVI law firm of Harney Westwood & Riegels (HWR) was retained by Alexander Jeremie & Co on behalf of the THA. The OCT directors represented themselves in the matter against the international law firm." Last month, THA Chief Secretary Farley Augustine claimed that after searches, it was discovered that the BVI-based company paid by the former THA administration to establish the zipline did not exist in the BVI, the report recalls. He said the THA received two freezing orders against the directors of the company-one account in Trinidad and Tobago and the other in the BVI, the report says. A week later, the THA's lead attorney in the matter John Jeremie noted after the banks accounts of the two directors were frozen, a tip was received and the name OCT Enterprises produced a hit, the report adds. =========================== V I R G I N I S L A N D S =========================== GENEVER HOLDINGS: Gets OK to Hire Neubert as Co-Counsel ------------------------------------------------------- Genever Holdings, LLC received approval from the U.S. Bankruptcy Court for the District of Connecticut to employ Neubert Pepe & Monteith, P.C. as co-counsel with Goldberg Weprin Finkel Goldstein, LLP. The firm's services include: a. advising the Debtor as to its rights, powers and duties in its Chapter 11 case; b. advising the Debtor as to its investigation into the property of its estate, including the pursuit of any actions to collect and recover property for the benefit of the estate; c. commencing, conducting or continuing litigation to assert rights held by the Debtor's estate, protect assets of the estate, or otherwise further the goal of completing the case; d. preparing legal documents and reviewing financial reports filed and to be filed in the case; e. advising the Debtor concerning, and preparing responses to, legal papers that may be filed by other parties; f. advising the Debtor with respect to, and assisting in the negotiation and documentation of, financing agreements and related transactions; g. reviewing the nature and validity of any liens asserted against the Debtor's property and advising the Debtor concerning the enforceability of such liens; h. advising and assisting the Debtor in connection with any potential asset sales and property dispositions; i. advising the Debtor concerning executory contract and unexpired lease assumption, assignment and rejection; j. advising the Debtor in connection with the formulation, negotiation, and promulgation of a plan of reorganization and related transactional documents; k. assisting the Debtor in reviewing, estimating and resolving claims asserted against the Debtor's estate; and l. negotiating with parties-in-interest. Neubert will be paid at these rates: Principals $450 per hour Associates & Counsels $175 to $360 per hour Paralegal $150 to $175 per hour Douglas S. Skalka, Esq. $450 per hour Lucas B. Rocklin, Esq. $400 per hour Patrick R. Linsey, Esq $350 per hour In addition, the firm will be reimbursed for out-of-pocket expenses incurred. Douglas Skalka, Esq., principal at Neubert, disclosed in a court filing that his firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Mr. Skalka also made the following disclosures in response to the request for additional information set forth in Paragraph D.1 of the Revised U.S. Trustee Guidelines: Question: Did you agree to any variations from, or alternatives to, your standard or customary billing arrangements for this engagement? Answer: No. As a practical matter, Neubert will only be compensated if and to the extent that there are assets in the Debtor's estate. Question: Do any of the professionals included in this engagement vary their rate based on the geographic location of the bankruptcy case? Answer: No. Question: If you represented the client in the 12 months pre-petition, disclose your billing rates and material financial terms for the pre-petition engagement, including any adjustments during the 12 months pre-petition. If your billing rates and material financial terms have changed post-petition, explain the difference and the reasons for the difference. Answer: Not applicable. Neubert has not previously represented the Debtor. Question: Has your client approved your prospective budget and staffing plan, and, if so, for what budget period? Answer: The Debtor and Neubert are discussing staffing and a budget for this Chapter 11 case for the period from Oct. 11 to Dec. 31, 2022. Neubert can be reached through: Douglas S. Skalka, Esq. Neubert Pepe & Monteith, PC 95 Church St New Haven, CT 06510 Phone: +1 203-821-2000 Email: dskalka@npmlaw.com About Genever Holdings Genever Holdings, LLC is the owner of the entire 18th floor apartment and auxiliary units in the Sherry Netherland Hotel located at 781 Fifth Ave., N.Y. Genever Holdings, LLC filed its voluntary petition for Chapter 11 protection (Bankr. S.D.N.Y. Case No. 20-12411) on Oct. 12, 2020, with $50 million to $100 million in both assets and liabilities. On Nov. 4, 2022, the case was transferred to the U.S. Bankruptcy Court for the District of Connecticut and was assigned a new case number (Case No. 22-50592). Ho Wan Kwok, owner of Genever Holdings, LLC's parent, Genever Holdings Corporation, sought Chapter 11 protection (Bankr. D. Conn. Case No. 22-50073) on Feb. 15, 2022, with $50,001 to $100,000 in assets and $100 million to $500 million in liabilities. According to Reuters, Ho Wan Kwok, also known as Guo Wengui, was a former real estate magnate who fled China for the U.S. in 2014 ahead of corruption charges. He filed for bankruptcy after a New York court ordered him to pay lender Pacific Alliance Asia Opportunity Fund $254 million stemming from a contract dispute. Genever Holdings Corporation is a company in Road Town, Tortola, which is engaged in activities related to real estate. It sought Chapter 11 protection (Bankr. D. Conn. Case No. 22-50542) on Oct. 11, 2022, with $10 million to $50 million in assets and $100 million to $500 million in liabilities. On Nov. 21, 2022, the Connecticut bankruptcy court ordered the consolidation of the three cases for procedural purposes. The cases are jointly administered under Case No. 22-50073 and are assigned to Judge Julie A. Manning. Kevin J. Nash, Esq., at Goldberg Weprin Finkel Goldstein, LLP and Neubert Pepe & Monteith, P.C. serve as Genever Holdings, LLC's legal counsels. Neubert, Pepe & Monteith and Harney Westwood and Riegels, LP serve as Genever Holdings Corporation's bankruptcy counsel and British Virgin Islands counsel, respectively. Luc A. Despins, the Chapter 11 trustee appointed in Ho Wan Kwok's case, tapped Paul Hastings, LLP as bankruptcy counsel; Neubert, Pepe & Monteith as local and conflicts counsel; and Harney Westwood and Riegel as British Virgin Islands counsel. Pullman & Comley, LLC represents the official committee of unsecured creditors appointed in Ho Wan Kwok's bankruptcy case. THREE ARROWS: Voyager to Distribute Claims Recovery to Creditors ---------------------------------------------------------------- Voyager Digital Ltd. (OTC Pink VYGVQ; FRA: UCD2) on Dec. 19 disclosed that the Company's claims against Three Arrows Capital remain with the bankruptcy estate, and any future recovery on these and other non-released claims will be distributed to the estate's creditors. The Company also disclosed that its operating company Voyager Digital LLC selected U.S. exchange BAM Trading Services Inc. (doing business as "Binance.US") as the highest and best bid for its assets after a review of strategic options with the core objective of maximizing the value returned to customers and other creditors on an expedited timeframe. Binance.US is headquartered in Palo Alto, CA, and is incorporated in Delaware. It is an independent legal entity and has a licensing agreement with Binance.com. The Binance.US bid, which sets a clear path forward for Voyager customer funds to be unlocked as soon as possible, is valued at approximately $1.022 billion and is comprised of (i) the fair market value of Voyager's cryptocurrency portfolio at a to-be-determined date in the future, which at current market prices is estimated to be $1.002 billion, plus (ii) additional consideration equal to $20 million of incremental value. The Binance.US bid aims to return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities. Binance.US will make a $10 million good faith deposit and will reimburse Voyager for certain expenses up to a maximum of $15 million. Should the deal not close by April 18, 2023 subject to a one-month extension, the agreement allows Voyager to immediately move to return value to customers. Voyager Digital LLC will seek Bankruptcy Court approval to enter into the asset purchase agreement between Voyager Digital LLC and Binance.US at a hearing on January 5, 2023. The sale to Binance.US will be consummated pursuant to a Chapter 11 plan, which will be subject to a creditor vote and is subject to other customary closing conditions. Binance.US and the Company will work to close the transaction promptly following approval of the chapter 11 plan by the Bankruptcy Court. This sale agreement follows Voyager's July 5, 2022 entrance into a voluntary restructuring process aimed at returning maximum value to customers. Additional information about the timeline and customer access to crypto will be shared as it becomes available. A copy of the asset purchase agreement and other pleadings filed in this case may be obtained free of charge by visiting the Voyager case website https://cases.stretto.com/Voyager. Voyager was advised by Kirkland & Ellis LLP, Moelis & Company LLC, and Berkeley Research Group. Binance.US was advised by Latham & Watkins LLP. About Voyager Digital Holdings Based in Toronto, Canada, Voyager Digital Holdings Inc. -- https://www.investvoyager.com/ -- runs a cryptocurrency platform. Voyager claims to offer a secure way to trade over 100 different crypto assets using its easy-to-use mobile application. Through its subsidiary Coinify ApS, Voyager provides crypto payment solutions for both consumers and merchants around the globe. Voyager Digital Holdings Inc. and two affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10943) on July 5, 2022. In the petition filed by Stephen Ehrlich, chief executive officer, the Debtors estimated assets and liabilities between $1 billion and $10 billion. Judge Michael E. Wiles oversees the cases. The Debtors tapped Kirkland & Ellis, LLP as general bankruptcy counsel; Berkeley Research Group, LLC as financial advisor; Moelis & Company as investment banker; Consello Group as strategic financial advisor; Deloitte Tax, LLP as tax services provider; and Deloitte & Touche, LLP as accounting advisor. Stretto, Inc. is the claims agent. On July 19, 2022, the U.S. Trustee for Region 2 appointed an official committee of unsecured creditors in these Chapter 11 cases. The committee tapped McDermott Will & Emery, LLP as bankruptcy counsel; FTI Consulting, Inc. as financial advisor; Cassels Brock & Blackwell, LLP as Canadian counsel; and Epiq Corporate Restructuring, LLC as noticing and information agent. The committee also tapped the services of Harney Westwood & Riegels, LP in connection with Three Arrows Capital Ltd.'s liquidation proceedings in British Virgin Islands. The Debtors filed their joint Chapter 11 plan of reorganization on July 6, 2022. About Three Arrows Capital Three Arrows Capital Ltd. was an investment firm engaged in short-term opportunities trading, and is heavily invested in cryptocurrency, funded through borrowings. As of April 2022, the Debtor was reported to have over $3 billion of assets under its management. Three Arrows Capital Ltd. was incorporated as a business company under the laws of the British Virgin Islands. Its sole shareholder owning all of its "management shares" is Three Arrows Capital Pte. Ltd., which previously operated as a regulated fund manager in Singapore until 2021, when it shifted its domicile to the BVI, as part of a global corporate plan to relocate operations to Dubai. The Debtor borrowed digital and fiat currency from multiple lenders to fund its cryptocurrency investments. After cryptocurrency lost 99% of its value, and then prices of other cryptocurrencies had rapid declines, the Debtor reportedly defaulted on its obligations. On June 24, 2022, one of the Debtor's many creditors -- DRB Panama Inc. -- filed an application to appoint joint provisional liquidators -- and thereafter, full Liquidators -- in the Eastern Caribbean Supreme Court in the High Court of Justice (Commercial Division) located in BVI. The application was assigned claim number VIHCOM2022/0117. Subsequently, on June 27, 2022, the Debtor filed its own application for the appointment of joint liquidators before the BVI Commercial Court. On June 29, 2022, the Honorable Mr. Justice Jack of the BVI Commercial Court appointed Russell Crumpler and Christopher Farmer of Teneo (BVI) Limited as joint liquidators of Three Arrows Capital Ltd. On July 1, 2022, liquidators of Three Arrows Capital filed a Chapter 15 bankruptcy in the U.S. (Bankr. S.D.N.Y. Case No. 22-10920) to seek recognition of the BVI proceedings. Judge Martin Glenn is the case judge. Latham & Watkins, led by Adam J. Goldberg is counsel in the U.S. case. The law firm of Ogier, led by Grant Carroll, is advising the liquidators in the BVI proceedings. =============== X X X X X X X X =============== [*] BOND PRICING: For the Week Dec. 19 to Dec. 23, 2022 ------------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Noble Holding Internat 6.2 62.2 8/1/2040 KY USD Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD Noble Holding Internat 5.3 60.5 3/15/2042 KY USD Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY Esval SA 3.5 49.9 2/15/2026 CL CLP Noble Holding Internat 6.1 62.0 3/1/2041 KY USD City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD Sylph Ltd 2.4 65.1 9/25/2036 KY USD Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD Province of Santa Fe 6.9 74.7 11/1/2027 AR USD Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR Fospar S/A 6.5 1.2 5/15/2026 BR BRL Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD Province of Santa Fe 6.9 75.2 11/1/2027 AR USD Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD ********* 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. 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