/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/230414.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 Friday, April 14, 2023, Vol. 24, No. 76 Headlines A R G E N T I N A ARGENTINA: IMF Calls for 'Stronger Policy Package' From Country GAUCHO GROUP: Delays Filing of 2022 Annual Report B R A Z I L BRAZIL: Annual Inflation Hits Lowest Since 2021 BRAZIL: Inflation Expectations Level Off After Fiscal Plan BRAZIL: Lula Affirms Gov't Will Make Efforts for Economic Growth ODEBRECHT DRILLING: Chapter 15 Case Summary C H I L E GUACOLDA ENERGIA: S&P Cuts ICR to 'D' on Tender Offer Completion G U A T E M A L A BANCO INDUSTRIAL: S&P Upgrades LT ICR to 'BB', Outlook Stable P U E R T O R I C O AMERICAN FLAMINGO: Unsecureds, if any, to Recover 100% w/ Interest V I R G I N I S L A N D S FAIRFIELD SENTRY: Court Grants Bid to Certify Interlocutory Appeal - - - - - ================= A R G E N T I N A ================= ARGENTINA: IMF Calls for 'Stronger Policy Package' From Country --------------------------------------------------------------- Buenos Aires Times reports that the International Monetary Fund (IMF) called on Argentina to adopt "a stronger policy package" to "safeguard stability" in the face of economic crisis and a punishing drought. The remarks, delivered in a press release after the IMF's Executive Board approved a fourth quarterly review of Argentina's 30-month extended fund facility (EFF) program, came as the multilateral lender signed off on an immediate disbursement of around US$5.4 billion for the nation, according to Buenos Aires Times. The IMF also confirmed that it would lower agreed targets on Central Bank reserve accumulation in response to the ongoing crisis, the report notes. In the context of severe drought, rising inflation and weak reserve coverage, "a stronger policy package" is needed from Argentina's government to "safeguard stability, address setbacks and secure program objectives," said the international lender, the report discloses. President Alberto Fernandez's government and the IMF agreed a new credit programme in March 2022 that restructured Argentina's US$44.5-billion debt with the lender, the report ntoes. With this latest tranche of US$5.4 billion, the country has received US$28.9 billion to date, the report relays. Under the terms of the deal, Argentina's government must build up its international reserves and progressively reduce the country's fiscal deficit from three percent of gross domestic product in 2021 to 2.5 percent in 2022, 1.9 percent in 2023 and 0.9 percent in 2024, the report says. Last year, the deficit reached 2.3 percent of GDP and net international reserves increased by US$5.4 billion, above the previously agreed target of US$5 billion, the report recalls. In its statement, the IMF acknowledged that "all quantitative performance criteria through end-December 2022 were met with some margin," the report says. "More prudent macroeconomic policies in the second half of 2022 supported a moderation in inflation and improvements in fiscal and external balances, helping to secure end-2022 program targets," said Gita Gopinath, the IMF's second-in-command, quoted in the statement obtained by the news agency. In a concession to Argentina, Gopinath revealed that "some downward adjustments to reserve accumulation targets" would be warranted in the wake of the punishing drought that is expected to shave billions off national GDP, the report relays. Consequently, "a stronger policy package is now necessary to safeguard stability and maintain the anchoring role of the program," she warned, the report notes. 'Challenging Situation' The IMF said that Argentina's economic situation had become "more challenging since the beginning of this year in light of the increasingly severe drought and policy setbacks," the report relays. President Fernandez had made the same point a few days earlier during a meeting at the White House with his US counterpart, Joe Biden, whose country is the IMF's largest financial contributor and holds the largest voting share on the board, the report notes. The country's drought, the worst since 1929, "has greatly complicated" the economy, argued Fernandez, who claims to have obtained Biden's support at international lending organizations, the report notes. Yet in her call for a "stronger policy package," Gopinath - who met with Economy Minister Sergio Massa in Washington - insisted that the 2023 primary fiscal deficit target of 1.9 percent is an "essential" target if Argentina is to " support disinflation and reserve accumulation, alleviate financing pressures, and strengthen debt sustainability," the report relays. To that end, she concluded that "additional macroeconomic policy tightening and further modifications to [exchange rate" policies may be required in the coming months, the report says. In a nod to internal disagreement in the ruling Frente de Todos coalition over the IMF's role and general elections later this year, Gopinath declared that "political support for program policies remains critica" moving forward, the report discloses. Among other measures, the IMF's number two wants the government to continue implementing measures to eliminate energy subsidies for better-off and commercial users. Gopinath also said "the fiscal cost of the new pension moratorium should be mitigated through strong regulations to target entry only to those with the greatest need," the report relays. "Real interest rates should remain sufficiently positive to tackle high inflation and support demand for peso assets. Further rate increases may be warranted in the event of further inflation shocks or intensification of FX pressures," said the IMF, the report says. Argentina has a complicated system of currency controls with one official rate and several parallel exchange rates, the report notes. However, "interventions in the parallel FX market using reserves or short-term external debt instruments should be eschewed," warned Gopinath, who said exchange restrictions should be rolled back as conditions permit, the report notes. "They are no substitute for sound macroeconomic policy," said the IMF official. Argentina's recorded growth of 5.2 percent last year, but inflation remains very high, totalling 94.8 percent in 2022, a three-decade high, the report discloses. Most products cost twice as much as they did at the same time last year, in a country where poverty reaches 39.2 percent of the population, according to official data, the report says. Fitch Ratings downgraded Argentina's foreign currency debt rating from CCC- to C, the lowest level above default, because it considers default to be "imminent," 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. S&P Global Ratings, on March 29, 2023, lowered its long-term foreign currency sovereign credit rating on Argentina to 'CCC-' from 'CCC+'. S&P also affirmed its 'C' short-term foreign currency sovereign credit rating and its 'CCC-/C' local currency ratings on Argentina. The outlook on the long-term ratings is negative. S&P also lowered the transfer and convertibility assessment to 'CCC-' from 'CCC+'. The negative outlook on the long-term ratings reflects risks surrounding pronounced economic imbalances and policy uncertainties before and after the 2023 national elections. Divisions across the political spectrum constrain the sovereign's ability to implement timely changes in economic policy. Global capital markets are closed to Argentina. In the local market, swaps are being deployed to manage large maturities before placing debt through traditional auctions. The central bank continues to play a key role as a backstop for local debt management in the secondary market. The ongoing severe drought has exacerbated pressures in the already disrupted foreign exchange (FX) market. Fitch Ratings, on the other hand, downgraded Argentina's Long-Term Foreign Currency Issuer Default Rating (IDR) to 'C' from 'CCC-', and has affirmed the Long-Term Local Currency IDR at 'CCC-' on March 24, 2023. Fitch's downgrade of Argentina's rating to 'C' from 'CCC-' follows an executive decree that forces domestic public-sector entities into operations involving their holdings of sovereign debt securities, which would involve unilateral exchanges and forced currency conversion that constitute default events under Fitch's criteria. The 'C' rating reflects Fitch's view that default is thus imminent. Fitch said the rating would be downgraded to 'Restricted Default' (RD) upon execution of the exchanges. Moody's Investors Service, in September 2022, affirmed Argentina's Ca foreign-currency and local-currency long-term issuer and senior unsecured ratings. The outlook remains stable. The decision to affirm the Ca ratings balances Argentina's limited market access, weak governance, and history of recurrent debt restructurings with recent efforts to marshal fiscal and monetary measures to start addressing underlying macroeconomic imbalances in the context of the IMF program that was approved in 2022, according to Moody's. DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer Rating at CCC and downgraded its Long-Term Local Currency Issuer Rating to CCC from CCC (high) on March 3, 2023. GAUCHO GROUP: Delays Filing of 2022 Annual Report ------------------------------------------------- Gaucho Group Holdings, Inc. was unable to file its Annual Report on Form 10-K for the year ended Dec. 30, 2022 on March 31, 2023, because the audit for the Company's consolidated financial statements for the year ended Dec. 31, 2022 has not been finalized. The Company anticipates that it will be able to file the Form 10-K within the extension period provided pursuant to Rule 12b-25. About Gaucho Group Headquartered in New York, NY, Gaucho Group Holdings, Inc. -- http://www.algodongroup.com-- was incorporated on April 5, 1999. Effective Oct. 1, 2018, the Company changed its name from Algodon Wines & Luxury Development, Inc. to Algodon Group, Inc., and effective March 11, 2019, the Company changed its name from Algodon Group, Inc. to Gaucho Group Holdings, Inc. Through its wholly owned subsidiaries, GGH invests in, develops and operates real estate projects in Argentina. GGH operates a hotel, golf and tennis resort, vineyard and producing winery in addition to developing residential lots located near the resort. In 2016, GGH formed a new subsidiary and in 2018, established an e-commerce platform for the manufacture and sale of high-end fashion and accessories. The activities in Argentina are conducted through its operating entities: InvestProperty Group, LLC, Algodon Global Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties II S.R.L., and Algodon Wine Estates S.R.L. Algodon distributes its wines in Europe through its United Kingdom entity, Algodon Europe, LTD. Gaucho Group reported a net loss of $2.39 million for the year ended Dec. 31, 2021, a net loss of $5.78 million for the year ended Dec. 31, 2020, and a net loss of $6.96 million for the year ended Dec. 31, 2019. As of Sept. 30, 2022, the Company had $25.39 million in total assets, $6.86 million in total liabilities, and $18.53 million in total stockholders' equity. =========== B R A Z I L =========== BRAZIL: Annual Inflation Hits Lowest Since 2021 ----------------------------------------------- globalinsolvency.com, citing Bloomberg News, reports that Brazil's annual inflation slowed more than expected, reaching the lowest since January 2021 as congress prepares to debate President Luiz Inacio Lula da Silva's new fiscal framework meant to shore up the nation's finances. Official data released showed consumer prices rose 4.65% in March compared to the year prior, less than February's reading of 5.6% and below the 4.71% median estimate from analysts surveyed by Bloomberg. Monthly inflation slowed to 0.71%, notes the report. Brazil's central bank has held the country's benchmark interest rate steady at 13.75% for five consecutive meetings in response to a deteriorating inflationary outlook, according to Bloomberg. Growing debts and Lula's plans for a more active role for the state in the economy have spooked investors and analysts alike, who say Brazil's public accounts are in bad shape, 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 was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. As recently reported in the Troubled Company Reporter-Latin America, Fitch Ratings, in December 2022, affirmed Brazil's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. The ratings are constrained by high government indebtedness, a rigid fiscal structure, weak economic growth potential, and a record of governability challenges that have hampered efforts to address these fiscal and economic issues and clouded policy predictability. The Stable Outlook reflects Fitch's expectation that growth will slow in the coming year and that recent fiscal improvement will erode under a new government, but within a margin consistent with the current rating, and from a better starting point than previously expected. Uncertainty is elevated regarding the plans of the incoming government and the extent to which these could ease or aggravate fiscal and economic challenges. However, Fitch does not expect policies that jeopardize broad economic stability. Standard & Poor's affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil, and the outlook remains stable (June 2022). The stable outlook reflects S&P's base-case assumption that Brazil will maintain its fiscal anchors over the next two years despite an increasing interest burden, preventing significant fiscal slippage and limiting the rise in its already high debt burden. Moody's credit rating for Brazil was last set at Ba2 in 2018 with stable outlook. Moody's affirmed the Ba2 issuer ratings and senior unsecured bond ratings in April 2022. DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). BRAZIL: Inflation Expectations Level Off After Fiscal Plan ---------------------------------------------------------- Maria Eloisa Capurro at Bloomberg News reports that Brazil analysts kept their inflation forecasts for next year and beyond unchanged after President Luiz Inacio Lula da Silva's government presented a highly-anticipated fiscal rule proposal to help control the growth of public debt. Expectations for consumer price increases remained steady from the previous week, at 4.13 percent for 2024 and 4 percent for 2025, interrupting a string of increases, according to a Central Bank survey of economists published, Bloomberg News notes. The annual inflation rate will tick up to 5.96 percent this December, slightly higher than prior estimate of 5.93 percent, the analysts forecast, according to Bloomberg News. Policymakers led by Roberto Campos Neto held interest rates unchanged at 13.75 percent last month for the fifth straight meeting as they battle expectations that consumer prices will keep rising at an above-target pace through 2025, Bloomberg News notes. Inflation slowed down for the 10th consecutive month to 5.36 percent in early March, Bloomberg News relays. Finance Minister Fernando Haddad presented a new fiscal framework that was initially welcomed by investors, the report discloses. The plan sets targets for surpluses before interest payments and now needs to be debated in Congress, Bloomberg News notes. Haddad's team expects the new rule to help central bankers lower interest rates - which have become a sensitive topic since Lula started criticising the central bank's tight monetary policy, Bloomberg News says. Lula's complaints have resonated with the population. Only 17 percent of Brazilians say interest rates are "adequate," while 71 percent consider them "higher than they should be" and 80 percent think Lula is right to put pressure on the monetary authority, according to a Datafolha survey published, Bloomberg News relays. Analysts surveyed by the Central Bank forecast that the key interest rate will fall to 12.75 percent by December and 10 percent by the end of next year. It's still unclear how much space for rate cuts the new fiscal framework may give policymakers, Bloomberg News notes. Campos Neto said he needs time to study the plan, though pointed to "goodwill" from the finance ministry to tame growing debt levels, Bloomberg News relays. JPMorgan & Chase Co said the plan is not enough to guarantee rate cuts before November, Bloomberg News notes. "While the predictability of the fiscal framework is welcome, the rule does not seem to be enough to stabilise debt-to-GDP," economist Cassiana Fernandez wrote in a report, Bloomberg News discloses. "Moreover, there is still no clarity on what will be announced regarding revenues in the coming weeks, which directly impacts the government's plans to reach the primary budget target," he added. 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 was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. As recently reported in the Troubled Company Reporter-Latin America, Fitch Ratings, in December 2022, affirmed Brazil's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. The ratings are constrained by high government indebtedness, a rigid fiscal structure, weak economic growth potential, and a record of governability challenges that have hampered efforts to address these fiscal and economic issues and clouded policy predictability. The Stable Outlook reflects Fitch's expectation that growth will slow in the coming year and that recent fiscal improvement will erode under a new government, but within a margin consistent with the current rating, and from a better starting point than previously expected. Uncertainty is elevated regarding the plans of the incoming government and the extent to which these could ease or aggravate fiscal and economic challenges. However, Fitch does not expect policies that jeopardize broad economic stability. Standard & Poor's affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil, and the outlook remains stable (June 2022). The stable outlook reflects S&P's base-case assumption that Brazil will maintain its fiscal anchors over the next two years despite an increasing interest burden, preventing significant fiscal slippage and limiting the rise in its already high debt burden. Moody's credit rating for Brazil was last set at Ba2 in 2018 with stable outlook. Moody's affirmed the Ba2 issuer ratings and senior unsecured bond ratings in April 2022. DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). BRAZIL: Lula Affirms Gov't Will Make Efforts for Economic Growth ---------------------------------------------------------------- Richard Mann at Rio Times Online reports that the President of Brazil, Luiz Inacio Lula da Silva, affirmed that his government would make greater efforts to grow the national economy as of April 10, the 100th day since his inauguration. "Starting soon, when we present what was done in these first 100 days, we will begin with another phase of our government, which is to make the economy grow again," Lula said in a meeting with the press, according to Rio Times Online. "My obsession now will be economic growth and the generation of jobs, and I am sure that we will achieve it successfully," he added, notes the report. 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 was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. As recently reported in the Troubled Company Reporter-Latin America, Fitch Ratings, in December 2022, affirmed Brazil's Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. The ratings are constrained by high government indebtedness, a rigid fiscal structure, weak economic growth potential, and a record of governability challenges that have hampered efforts to address these fiscal and economic issues and clouded policy predictability. The Stable Outlook reflects Fitch's expectation that growth will slow in the coming year and that recent fiscal improvement will erode under a new government, but within a margin consistent with the current rating, and from a better starting point than previously expected. Uncertainty is elevated regarding the plans of the incoming government and the extent to which these could ease or aggravate fiscal and economic challenges. However, Fitch does not expect policies that jeopardize broad economic stability. Standard & Poor's affirmed its 'BB-/B' long- and short-term foreign and local currency sovereign credit ratings on Brazil, and the outlook remains stable (June 2022). The stable outlook reflects S&P's base-case assumption that Brazil will maintain its fiscal anchors over the next two years despite an increasing interest burden, preventing significant fiscal slippage and limiting the rise in its already high debt burden. Moody's credit rating for Brazil was last set at Ba2 in 2018 with stable outlook. Moody's affirmed the Ba2 issuer ratings and senior unsecured bond ratings in April 2022. DBRS's credit rating for Brazil is BB (low) with stable outlook (March 2018). ODEBRECHT DRILLING: Chapter 15 Case Summary ------------------------------------------- Eight affiliates that concurrently filed voluntary petitions for relief under Chapter 15 of the Bankruptcy Code: Debtor Case No. ------ -------- ODN I Perfuracoes Ltda. (Lead Case) 23-10557 Avenida Cidade de Lima, n 86 Offices 501 and 502 (part) Santo Cristo, 20.220-710 Rio de Janeiro, Brazil Odebrecht Drilling Norbe VIII/IX Ltd. 23-10559 Odebrecht Drilling Norbe Eight GmbH 23-10560 Odebrecht Drilling Norbe Nine GmbH 23-10561 Odebrecht Offshore Drilling Finance Limited 23-10562 ODN I GmbH 23-10563 Odebrecht Drilling Norbe Six GmbH 23-10564 ODN Tay IV GmbH 23-10565 Foreign Proceeding: Recuperacao extrajudicial proceeding in the 4th Business Court of the Judicial District of Rio de Janeiro, Brazil pursuant to Federal Law 11,101 of February 9, 2005 (as amended from time to time) of the laws of the Federative Republic of Brazil filed on December 12, 2022. Chapter 15 Petition Date: April 11, 2023 Court: United States Bankruptcy Court Southern District of New York Judge: Hon. David S. Jones Foreign Representative: Rogerio Luis Murat Ibrahim Avenida Cidade de Lima, n 86 Offices 501 and 502 Santo Cristo, 20.220-710 Rio de Janeiro, Brazil Foreign Representative's Counsel: Eli J. Vonnegut, Esq. Joanna McDonald, Esq. Matthew B. Masaro, Esq. DAVIS POLK & WARDWELL LLP 450 Lexington Avenue New York, New York 10017 Tel: (212) 450-4000 Fax: (212) 701-5800 Email: eli.vonnegut@davispolk.com joanna.mcdonald@davispolk.com matthew.masaro@davispolk.com Estimated Assets: Unknown Estimated Debt: Unknown A full-text copy of the Lead Debtor's Chapter 15 is available for free at PacerMonitor.com at: https://www.pacermonitor.com/view/CD6CTNA/ODN_I_Perfuracoes_Ltda_and_Rogerio__nysbke-23-10557__0001.0.pdf?mcid=tGE4TAMA ========= C H I L E ========= GUACOLDA ENERGIA: S&P Cuts ICR to 'D' on Tender Offer Completion ---------------------------------------------------------------- On April 12, 2023, S&P Global Ratings lowered the issuer credit and issue-level credit rating on Chilean coal-fired power generator Guacolda Energia S.A. to 'D' from 'CC'. Imminently, S&P will re-evaluate both ratings upon the settlement of the transaction including the company's willingness and capacity to meet its financial obligations. The downgrade follows the announcement of the completion of Guacolda's tender offer of its senior secured notes due 2025. The total amount of the existing notes that has been validly tendered was $132.5 million, for which the company will pay approximately $60 million in cash on the settlement date, April 13, 2023. S&P said, "We viewed the tender offer as tantamount to default. For more details please refer to our last report, "Guacolda Energia S.A. Downgraded To 'CC' From 'B-' On Tender Offer Announcement, Outlook Negative" published on March 14, 2023. "We will re-evaluate the issuer credit and senior secured debt ratings upon the settlement of the transaction, taking into account the company's new capital structure, and willingness and capacity to meet its financial obligations." ================= G U A T E M A L A ================= BANCO INDUSTRIAL: S&P Upgrades LT ICR to 'BB', Outlook Stable ------------------------------------------------------------- S&P Global Ratings raised its long-term issuer credit ratings on Banco Industrial S.A. (BI) and Banco G&T Continental S.A. (Banco G&T) to 'BB' from 'BB-'. At the same time, S&P affirmed its short-term global scale rating at 'B' on both entities. The outlook is stable for both banks. On April 11, 2023, S&P Global Ratings raised its long-term foreign currency sovereign credit rating on Guatemala to 'BB' from 'BB-'. The upgrade of Guatemala is based on its resilient economy and long-standing macroeconomic stability. The ratings incorporate our view of its still-developing public institutions and a challenging political environment that constrains policymaking effectiveness. Further steps to promote long-term growth and address high social needs would be key to substantially reduce the country's high poverty level. On the other hand, Guatemala's solid external position, moderate general government debt to GDP, and sound monetary policy constitute relative credit strengths to manage the volatile external economic conditions. As a result, the issuer credit ratings on BI and Banco G&T moved in tandem with that on the sovereign and are now at the same level as their stand-alone credit profiles (SACPs). The ratings on BI reflect its position as the largest bank in Guatemala and its highly diversified business profile. S&P's ratings also incorporate our consolidated projected risk-adjusted capital (RAC) ratio for the bank's parent, Bicapital (not rated) of about 6.6% for the next two years. The ratings also incorporate a highly dollarized balance sheet and our expectation that the bank will maintain healthier asset quality metrics than those of the Guatemalan banking system average. Finally, the bank's deposit base remains one of its main strengths and provides it with enough liquidity to face short-term obligations, despite adverse market conditions. The ratings on the bank reflect its solid position in the Guatemalan commercial lending segment and its increased participation in diverse retail lending business lines. The ratings also incorporate S&P's projected RAC ratio for Grupo G&T (on a consolidated basis) of slightly above 7% for the next two years. The ratings also incorporate a highly dollarized balance sheet compared with the industry average. In addition, Banco G&T's funding base relies mainly on deposits from the retail sector, which we deem more stable during adverse market conditions. ===================== P U E R T O R I C O ===================== AMERICAN FLAMINGO: Unsecureds, if any, to Recover 100% w/ Interest ------------------------------------------------------------------ American Flamingo, L.L.C., submitted an Amended Chapter 11 Plan of Reorganization. Under the Plan, each holder of an Allowed General Unsecured Claim will receive 100% of the amount of such holder's Allowed General Unsecured Claim, plus 5% payable in 60 monthly installments commencing as of the Effective Date. However, there are no Unsecured Claims in this case. All Cash necessary to make payments and Plan Distributions shall be obtained from the Cash of the Reorganized Debtors as generated from its operations and the Cash held in the Contested Claims Reserve, if any, as applicable. Counsel for the Debtor: Hector Eduardo Pedrosa-Luna, Esq. P.O. Box 9023963 San Juan, PR 00902-3963 Tel: (787) 756-7880 Tel: (787) 920-7983 Fax: 787-754-1109 E-mail: hectorpedrosa@gmail.com A copy of the Plan of Reorganization dated March 31, 2023, is available at https://bit.ly/3KdZcnd from PacerMonitor.com. About American Flamingo American Flamingo LLC is a Single Asset Real Estate (as defined in 11 U.S.C. Sec. 101(51B)). It is engaged in the business of leasing office spaces in San Juan, Puerto Rico. At the present time, American Flamingo owns an office located at 644 Fernandez Juncos Avenue, Suite 203, San Juan, PR 00907. American Flamingo sought Chapter 11 bankruptcy protection (Bankr. D.P.R. Case No. 22-01290) on May 5, 2022. In the petition filed by John Hanratty, as member, American Flamingo estimated assets between $500,000 and $1 million and liabilities between $500,000 and $1 million. Hector Eduardo Pedrosa Luna, of The Law Offices of Hector Eduardo Pedrosa Luna, is the Debtor's counsel. =========================== V I R G I N I S L A N D S =========================== FAIRFIELD SENTRY: Court Grants Bid to Certify Interlocutory Appeal ------------------------------------------------------------------ FAIRFIELD SENTRY LIMITED (IN LIQUIDATION), acting by and through the Foreign Representatives thereof, and KENNETH KRYS, solely in his capacity as Foreign Representatives and Liquidator thereof, Plaintiffs/Appellants, v. CITIBANK, N.A. LONDON, Defendants/Appellees, Case No. 19-CV-3911 (VSB), (S.D.N.Y.), Judge Vernon S. Broderick of the U.S. District Court for the Southern District of New York grants the Defendants' motion for certification of an interlocutory appeal pursuant to 28 U.S.C. Section 1292(b). This case involves more than two rounds of appeals from a series of orders issued by Bankruptcy Judge Stuart M. Bernstein of the Bankruptcy Court of the Southern District of New York in roughly 400 administratively consolidated cases arising from the infamous Ponzi scheme orchestrated by Bernard L. Madoff. The Liquidators have asserted common law claims and statutory avoidance claims. On Aug. 24, 2022, the Court issued an Opinion & Order affirming the Bankruptcy Court's decision and holding, among other things, that the Liquidators' avoidance claims were barred by the safe harbor provision under the Bankruptcy Code.. On Sept. 26, 2022, the Liquidators filed an appeal as of right. Meanwhile, the Defendants filed a motion for certification of the following issue to the Second Circuit under 28 U.S.C. Section 1292(b): "Whether Sections 546(e) and 561(d) of the Bankruptcy Code preclude the plaintiffs from pursuing foreign common law claims in a Chapter 15 proceeding where the elements of those claims duplicate claims that are barred by Section 546(e)." The Defendants had argued that the Liquidators' foreign common law claims were also barred by the safe harbor provision under the Bankruptcy Code, since those claims were "duplicative" of the statutory avoidance claims, which were barred by the safe harbor provision. The Court rejected that argument. Because this ruling did not result in a final decision as to the Liquidators' foreign common law claims, Defendants request that the Court certify an interlocutory appeal of the ruling pursuant to 28 U.S.C. Section 1292(b). The Court finds that the Defendants meet each of the criteria for certification. First, the Court finds that the Defendants have raised 'a controlling question of law' -- the question of whether the safe harbor provision of the Bankruptcy Code precludes the plaintiffs from pursuing foreign common law claims is a purely legal one, and reversal of my ruling would materially affect the litigation's outcome. Second, the Court finds "substantial ground for difference of opinion" -- the Court agrees that the interaction between the Supremacy Clause and international comity principles raises sufficiently difficult questions that merit appellate review. Finally, the Court finds that certification will "materially advance the ultimate termination of the litigation." In fact, certification in this case promotes "judicial economy" because the Defendants' motion raises a question that is "inextricably bound" with the issues in the already-pending appeal before the Second Circuit. Moreover, certification is "particularly appropriate in complex litigation involving multiple coordinated actions," such as this, in which "interlocutory review may be the best way to materially advance the ultimate termination of the litigation by avoiding protracted litigation and multiple appeals of the same or similar issues." A full-text copy of the Opinion & Order dated March 27, 2023, is available https://tinyurl.com/2p9bkvrh from Leagle.com. About Fairfield Sentry Fairfield Sentry is being liquidated under the supervision of the Commercial Division of the High Court of Justice in the British Virgin Islands. It is one of the funds owned by the Fairfield Greenwich Group, an investment firm founded in 1983 in New York City. Fairfield Sentry and other Greenwich funds had among the largest exposures to the Bernard L. Madoff fraud. Fairfield Sentry Limited filed for Chapter 15 protection (Bankr. S.D.N.Y. Case No. 10-13164) on June 14, 2010. Fairfield Sentry became the subject of a BVI liquidation, and a BVI court appointed the Liquidator under BVI law. The Liquidator then sought recognition of the BVI liquidation as a foreign main proceeding under Chapter 15 of the Code in the Southern District of New York. The Bankruptcy Court entered an order granting recognition of the Fairfield Sentry case on July 22, 2010, enabling the Liquidator to use the U.S. Bankruptcy Court to protect and administer Fairfield Sentry's assets in the U.S. ********* 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 2023. 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 * * *