/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/230620.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, June 20, 2023, Vol. 24, No. 123 Headlines A R G E N T I N A ARGENTINA: Annual Inflation Hits 114% But Monthly Rate Slows ARGENTINA: Opposition Slams Government for Inflation Woes B R A Z I L AMERICANAS SA: Says Previous Management Team Committed Fraud BRAZIL: Bankman-Fried's Prosecutors Need Not Review Files D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Alerts of Sugar Shortage DOMINICAN REPUBLIC: Rice, Sugar, Onions & Potatoes Prices Up DOMINICAN REPUBLIC: Seeks to Expand Relations with Angola P U E R T O R I C O CERTENEJAS INC: Taps Charles A. Cuprill as Legal Counsel V I R G I N I S L A N D S THREE ARROWS: Liquidators Seek to Fine Co-Founder US$10K Per Day - - - - - ================= A R G E N T I N A ================= ARGENTINA: Annual Inflation Hits 114% But Monthly Rate Slows ------------------------------------------------------------ globalinsolvency.com, citing Reuters, reports that Argentina's annual inflation rate topped 114% in May, but in a silver lining for the embattled South American country the monthly rise came in well below analyst forecasts and posted a surprise slowdown versus a peak the month before. The monthly rise in the consumer price index (CPI) clocked in at 7.8%, the country's statistics agency said, well below analyst estimates of an 8.9% increase and under the 8.4% posted in April, the largest monthly rise in decades, according to globalinsolvency.com. Annual inflation, at its highest level since 1991, was also below a Reuters analyst poll of a 116.1% increase, the report notes. It remains one of the fastest inflation rates in the world and is far above neighboring countries, the report relays. Argentina has long battled high inflation, currency weakness and indebtedness, but high global prices linked to the war in Ukraine and a historic drought have hindered the government's ability to rein in prices and stabilize the economy, the report says. 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. ARGENTINA: Opposition Slams Government for Inflation Woes --------------------------------------------------------- Buenos Aires Times reports that opposition leaders in Argentina responded strongly to the publication of May inflation data, criticising the government's failure to tamp down runaway price increases. Presidential hopefuls Horacio Rodriguez Larreta and Patricia Bullirch were some of the most vocal Juntos por el Cambio leaders who questioned the Frente de Todos administration's economic policy after the INDEC national statistics bureau reported that year-on-year inflation had risen to 114.2 percent, according to Buenos Aires Times. Consumer prices increased 7.8 percent in May, according to government data, and have risen more than 42 percent so far this year, the report notes. "We can't go on like this. From December 10, we are going to start lowering inflation so that we can go back to living in peace," wrote Rodriguez Larreta, the mayor of Buenos Aires City and one of the opposition's frontrunners for the Presidency, the report notes. Bullrich, a former security minister and the mayor's main rival for the coalition's nomination, said that data on price hikes were a "monthly index of failure and decadence." Calling for change at the ballot box in the October election, she decried the lack of "any policy to reverse" inflation, the report relays. Union Civica Radical (UCR) City mayoral hopeful and national senator Martin Lousteau said the data "showed the failure of the government," the report discloses. Criticism also came from libertarians, with La Libertad Avanza presidential hopeful Javier Milei complaining about the government's money-printing, the report relays. "Repeat after me. Inflation is always and everywhere a monetary phenomenon that derives from an excess supply of money, which can arise from an increase in supply, a fall in demand or both at the same time. Denying it is not free," Milei posted on Twitter, repeating his call for the closure of Argentina's Central Bank, the report relays. On the other end of the spectrum, Frente de Izquierda y Trabajadores (FIT) presidential hopeful Gabriel Solano slammed the main partners of the ruling coalition, the report relays. "Only Massa, CFK and Alberto can celebrate an inflation rate of 7.8 percent and a 114 percent jump in year-on-year inflation," he complained, referring to Economy Minister Sergio Massa, Vice-President Cristina Fernandez de Kirchner and President Alberto Fernandez, 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. =========== B R A Z I L =========== AMERICANAS SA: Says Previous Management Team Committed Fraud ------------------------------------------------------------ globalinsolvency.com, citing Bloomberg News, reports that the previous management team at Brazilian retailer Americanas SA carried out fraudulent accounting practices and hid them from investors and the board of directors, according to a filing and comments from the current chief executive officer. The former executive team, led by then Chief Executive Officer Miguel Gutierrez, created false advertising contracts as a way to reduce costs on the balance sheet that ballooned to 21.7 billion reais ($4.5 billion) as of Sept. 30 2022, according to the filing that was based on information from an independent investigation, globalinsolvency.com notes. In addition, part of the money was shifted into suppliers accounts to cover the hole, the findings show. Hours later, Leonardo Coelho, the current CEO, presented slides during a congressional hearing that allegedly show how the former executive team kept the real financial figures from the board, falsified letters and signatures and asked banks to remove references to supply chain financing operations, the report relays. They also tried to sway the opinions of auditors, he said. "The material fact is that Americanas, for the first time, no longer calls this crisis 'accounting inconsistencies"', Coelho said. "It calls it 'fraud,'" the report adds. About Americanas SA Americanas was one of the largest diversified retail chains in Brazil, with a wide platform of physical stores, robust e-commerce, fintech, and has just entered into the niche food retail. It is listed on B3, being indirectly controlled by billionaire Jorge Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles. The retailer nosedived in January 2023 after becoming mired in an accounting scandal. The firm filed for bankruptcy at a court in Rio de Janeiro on Jan. 19, 2023. Americanas sought protection under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25, 2023. White & Case LLP, led by John K. Cunningham, is the U.S. counsel. BRAZIL: Bankman-Fried's Prosecutors Need Not Review Files --------------------------------------------------------- Luc Cohen at Reuters reports that a U.S. judge denied Sam Bankman-Fried's request to compel prosecutors to review files belonging to FTX, the now-bankrupt cryptocurrency exchange the defendant founded. U.S. District Judge Lewis Kaplan made the ruling in a hearing in Manhattan federal court after Bankman-Fried, 31, said FTX's current management was acting as part of the prosecution team and its records should thus be available to him as evidence in his Oct. 2 trial, according to Reuters. 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). =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Alerts of Sugar Shortage -------------------------------------------- Dominican Today reports that the Association of Suppliers of Santo Domingo (Asusado) has urged the government to investigate the causes of the recent sugar shortage in the Dominican Republic. Linny Ramirez, the president of Asusado, expressed concern over the impact of the shortage on the sector and consumers, the report notes. Ramirez highlighted that for over a week, they have observed a rise in sugar prices, with a sack of sugar now costing between 3,350 and 3,400 pesos, compared to the previous price of around 3,000 pesos, according to Dominican Today. She found it surprising that a shortage exists despite the mills operating and producing sugar normally, the report relays. Ramirez called on the government, particularly the director of the Dominican Sugar Institute, Máximo Perez, to investigate the reasons behind the shortage and implement preventive measures, the report discloses. She emphasized the importance of understanding the causes and finding solutions to address the shortage, the report says. Sugar is a crucial product for suppliers and companies involved in the production of sweets, confectionery, and beverages, the report discloses. Asusado, an organization with over 30 years of existence, represents 53 active partners and 68 members from the National District, Santo Domingo, and provinces such as Moca, San Cristobal, and La Altagracia, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCRLA reported in April 2019 that the Dominican To related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Fitch Ratings, in December 2021, revised the Outlook on Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDRs at 'BB-'.The revision of the Outlook to Stable reflects the narrowing of Dominican Republic's government deficit and financing needs since Fitch's last review resulting in the stabilization of the government debt/GDP ratio, as well as the investment-driven economic momentum, reflected in the faster-than-expected economic recovery in 2021 that Fitch expects to carry into above-potential GDP growth during 2022 and 2023. Standard & Poor's, also in December 2021, revised its outlook on the Dominican Republic to stable from negative.S&P also affirmed its 'BB-' long-term foreign and local currency sovereign credit ratings and its 'B' short-term sovereign credit ratings. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12 to 18 months that will likely stabilize the government's debt burden, despite lack of progress with broader tax reforms, S&P said.A rapid economic recovery from the downturn because of the pandemic should mitigate external and fiscal risks. Moody's affirmed the Dominican Republic's long-term issuer and senior unsecured ratings at Ba3 and maintained the stable outlook in March 2021. DOMINICAN REPUBLIC: Rice, Sugar, Onions & Potatoes Prices Up ------------------------------------------------------------ Dominican Today reports that the president of the Dominican Federation of Merchants assured that when the numbers of the Central Bank say that the Gross Domestic Product had zero growth, this sector knows that it had a -10% growth. Engineer Ivan de Jesus Garcia explained that the Federation he presides over has 432 Associations spread throughout the Dominican Republic, according to Dominican Today. These, in turn, have 61,920 members, which carry out all the country's commerce activities, the report notes. Garcia defined the Federacion Dominicana de Comerciantes as the most important business association in the country because it includes importers, spare parts stores, supply stores, supermarkets, many of the grocery stores affiliated to the Tarjeta Superate, fabric, household appliance and furniture stores, pharmacies, hardware stores, and government suppliers, the report relags. Central American and DR government agencies sign an agreement to defend consumers, the report discloses. Interviewed by Héctor Herrera Cabral in the program D'AGENDA, which is broadcast every Sunday on Telesistema channel 11 and TV Quisqueya for the United States, the commercial leader said that all the commerce is represented in the Federation, and that is what gives him the quality to be able to speak on behalf of the organized business, and of the different sectors that are grouped in the Federation, the report relays. Regarding the inflation levels reported by the Central Bank, Ivan Garcia recalled that the institution uses the annualized method, in this case, from May 2022 to the same month of this year, the report notes. For that reason, those numbers are accurate. "We all know that since November 2021, the Central Bank put the brakes on the economy reaching a monetary policy rate of 8. 5% which led commercial banks to offer us rates to trade of up to 18%, and consumer loans between 22 and 30%, this affected that in sectors, for example construction which is one of the most dynamic that the country has, its growth was practically zero during the last year, that is, when the numbers of the Central Bank say it is zero, we know, those of us who are in the hardware store, that it is -10%," he reiterated, the report discloses. He added that "Then, the economy slowed down, the inflation target was achieved because of that slowdown in the economy, and there is already a moment, such as the last three months, in which sales have fallen between 8 and 11% with respect to the same period last year, which must be dynamized," the report relays. "And, obligatorily, they had to release the brake and step on the accelerator a little and make available 34 billion pesos of the legal reserve that the banks have to be lent at a rate of 9%," he pointed out. He warned that the merchants want that 9% to reach the micro, small, and medium merchants and not to remain among the leading friends of the banks in the Dominican Republic, the report notes. Garcia suggested to the Central Bank that of the 34 billion pesos that it has liberalized, it allocates five billion to Promipyme at a rate of 4 to 6% so that this institution can place them at 10 or 12% to the Mipymes of the commerce sector, the report relays. "That would do a great service, obviously, first to the government, second to Promipyme, and third, that we are the first, to the country's MSMEs, because the money that goes to Promipyme if we are sure that they are dedicated to the country's MSMEs, and in this way thousands and thousands of small businessmen and businesswomen could benefit with those funds released at 9%, the report discloses. He reiterated his request to the Central Bank to contemplate the possibility of injecting new resources within two months when it evaluates the success of the 34 billion recently released, the report relays. "Obviously since they release those funds, come the privileged clients who are the ones who keep the great majority, because they have an extraordinary solvency index, but who does not have it that way, because they have always been nourished by cheap funds, and they restructure their own debts, and they will always be successful companies," he criticized, the report says. Garcia says there are increases in rice, sugar, onions, and potatoes, but flour prices have been reduced. Ivan Garcia reported that rice, sugar, onions, potatoes, and black beans have experienced price increases, while flour prices have been reduced considerably, the report relays. The president of the Dominican Federation of Traders asked the Minister of Industry and Commerce, Ito Bisono, and the director of Proconsumidor Eddy Alcantara to check what is happening with the price of sugar since the 125-pound sack went from RD$2,985.00 to 3,600.00 pesos, which implies that the increase has reached 15%. It is necessary to remember that the only products subject to price control in the country are fuel and sugar, the report notes. Without these prices being set by the State, then when the cost of sugar skyrockets, which we do not understand why, the people need an explanation, and so do we, so also refined sugar is being marketed at RD$3,600.00, when the 125-pound sack was being sold at between 3,200 and 3,300 pesos, the report relates. "The same thing is happening with the price of onion, which we were selling per pound at 16 pesos, and now it is between 24 and 28 pesos, that is, the sack has gone from 800 pesos to RD$1,400.00, which implies that the consumer will have to buy it again between 40 and 45 pesos," he explained. Ivan Garcia said the same situation occurred with the potato several days ago. A kilo was sold at 35 pesos and currently costs RD$50.00, the report notes. "We are talking that the pound, wholesale costs 24 pesos, but to the detail, we have to add 10 or 20% that the owners of the colmados and supermarkets earn in the operations," he clarified while being interviewed in the program D'AGENDA, the report relays. Another product that has increased in price is the black bean which, from 36 pesos a pound, has gone to 42; pints have remained at the same price, while the red beans have dropped from 58 pesos a pound to RD$52, the report discloses. "The rice that we were selling between RD$2,900.00 and 3,100 pesos, the selection of 125 pounds is at RD$3,300.00, which implies that it increased by 10%; we were always informing people that said product cost between 24 and 25 pesos a pound, now we have to add two pesos, the report notes. However, he clarified that the flour, which is the raw material to make bread and pasta, was reduced from RD$2,500.00 per sack to 2,100 pesos, which is why he demanded that the prices of its derivatives be decreased because they were increased when the cost of flour went up, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCRLA reported in April 2019 that the Dominican To related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Fitch Ratings, in December 2021, revised the Outlook on Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDRs at 'BB-'.The revision of the Outlook to Stable reflects the narrowing of Dominican Republic's government deficit and financing needs since Fitch's last review resulting in the stabilization of the government debt/GDP ratio, as well as the investment-driven economic momentum, reflected in the faster-than-expected economic recovery in 2021 that Fitch expects to carry into above-potential GDP growth during 2022 and 2023. Standard & Poor's, also in December 2021, revised its outlook on the Dominican Republic to stable from negative.S&P also affirmed its 'BB-' long-term foreign and local currency sovereign credit ratings and its 'B' short-term sovereign credit ratings. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12 to 18 months that will likely stabilize the government's debt burden, despite lack of progress with broader tax reforms, S&P said.A rapid economic recovery from the downturn because of the pandemic should mitigate external and fiscal risks. Moody's affirmed the Dominican Republic's long-term issuer and senior unsecured ratings at Ba3 and maintained the stable outlook in March 2021. DOMINICAN REPUBLIC: Seeks to Expand Relations with Angola --------------------------------------------------------- Dominican Today reports that the Dominican Republic Minister of Energy and Mines (MEM), Antonio Almonte, is considering the possibility of collaboration with the government of Angola, a country known for its significant oil and natural gas production on the African continent. According to a press release from the ministry, Almonte received a courtesy visit from the Ambassador of the Republic of Angola, Maria Cándida Pereira Teixeira. During the meeting, they discussed the potential establishment of ties between the Dominican Republic and Angola, the report notes. Ambassador Pereira, who previously served as her country's Minister of Education until 2019, highlighted Angola's abundant natural resources, particularly it's status as a major oil producer, according to Dominican Today. She mentioned that Angola's resources could be of value to the Dominican Republic, which heavily relies on fuel imports, the report relays. In addition to the energy sector, the meeting at the MEM headquarters delved into various mining-related topics, the report relays. Angola's experience as a country with diverse mining activities, including diamond, cobalt, manganese, and other minerals essential to modern industries, was of particular interest in the discussions, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCRLA reported in April 2019 that the Dominican To related that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Fitch Ratings, in December 2021, revised the Outlook on Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDRs at 'BB-'.The revision of the Outlook to Stable reflects the narrowing of Dominican Republic's government deficit and financing needs since Fitch's last review resulting in the stabilization of the government debt/GDP ratio, as well as the investment-driven economic momentum, reflected in the faster-than-expected economic recovery in 2021 that Fitch expects to carry into above-potential GDP growth during 2022 and 2023. Standard & Poor's, also in December 2021, revised its outlook on the Dominican Republic to stable from negative.S&P also affirmed its 'BB-' long-term foreign and local currency sovereign credit ratings and its 'B' short-term sovereign credit ratings. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12 to 18 months that will likely stabilize the government's debt burden, despite lack of progress with broader tax reforms, S&P said.A rapid economic recovery from the downturn because of the pandemic should mitigate external and fiscal risks. Moody's affirmed the Dominican Republic's long-term issuer and senior unsecured ratings at Ba3 and maintained the stable outlook in March 2021. ===================== P U E R T O R I C O ===================== CERTENEJAS INC: Taps Charles A. Cuprill as Legal Counsel -------------------------------------------------------- Certenejas Incorporado seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Charles A. Cuprill, Law Offices P.S.C. as its counsel. The firm's services include the preparation of the Debtor's plan of reorganization, representation of the Debtor in adversary proceedings and other legal services in connection with its Chapter 11 case. Charles A. Cuprill, P.S.C. will be paid at these rates: Charles A. Cuprill-Hernandez, Esq. $400 per hour Paralegal $85 per hour The firm received a retainer in the amount of $10,000. As disclosed in court filings, Charles A. Cuprill, P.S.C. is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The firm can be reached through: Charles A. Cuprill, Esq. Charles A. Cuprill, P.S.C., Law Offices 356 Fortaleza Street (2nd Floor) San Juan, PR 00901 Tel: 787-977-0515 Email: ccuprill@cuprill.com About Certenejas Incorporado dba Hotel Flor Del Valle Certenejas Incorporado, doing business as Hotel Flor Del Valle, is the fee simple owner of a land with commercial building known as "Motel Flor Del Valle." The property is located in Cidra, P.R., and is valued at $3.15 million. Certenejas Incorporado filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 23-01438) on May 12, 2023, with $4,412,900 in assets and $10,114,333 in liabilities. Luis J. Meaux Vazquez, president, signed the petition. Judge Enrique S. Lamoutte Inclan oversees the case. Charles A. Cuprill, Esq., at Charles A. Cuprill, PSC Law Offices and CPA Luis R. Carrasquillo & Co., P.S.C. serve as the Debtor's legal counsel and financial advisor, respectively. =========================== V I R G I N I S L A N D S =========================== THREE ARROWS: Liquidators Seek to Fine Co-Founder US$10K Per Day ---------------------------------------------------------------- Jonathan Randles at Bloomberg News reports that liquidators of Three Arrows Capital (3AC) want a judge to fine a co-founder Kyle Davies US$10,000 per day, claiming their ability to unwind the failed cryptocurrency hedge fund has been impeded by his refusal to cooperate with their investigation into the firm's collapse. The substantial fine is warranted because Mr. Davies hasn't responded to a subpoena served nearly five months ago, lawyers for the 3AC liquidators said in a filing in New York bankruptcy court two week ago, Bloomberg relays. According to the report, the decision to impose the fine is up to Judge Martin Glenn who said in a ruling earlier this year that Mr. Davies risked being held in contempt of court if he failed to comply with the subpoena and continued to sit out the proceedings. According to Bloomberg, liquidators have taken unorthodox steps in an effort to get the 3AC co-founders to turn over information, including getting approval from Judge Glenn to issue the subpoena to Mr. Davies via Twitter, where he frequently posts. Given the circumstances, a US$10,000 per day fine "is fair and likely meaningful in persuading Mr. Davies to respond", the liquidators said. Bloomberg relates that the liquidators have said they don't currently know where Mr. Davies or fellow co-founder Su Zhu are currently residing. However, they referenced a June 9 New York Times article that reported Mr. Davies flew to Bali after 3AC collapsed. In a sworn statement, 3AC liquidator Russell Crumpler cited Mr. Davies' comments in the article as evidence that the founder has shown no remorse for the collapse of the firm, which owes creditors roughly US$3 billion. "In my view and experience as a liquidator, Mr Davies' behaviour and recent public statements confirm his disregard for court orders and his obligations to the debtor's estate," Bloomberg quotes Mr. Crumpler as saying. Lawyers for Messrs. Davies and Zhu didn't return a message sent last Thursday (June 15) seeking comment, Bloomberg notes. In e-mail correspondence submitted to the court by the liquidators, counsel to Messrs. Davies and Zhu have said court orders the liquidators have obtained are "baseless" and that US courts have no jurisdiction over their clients because they have no presence in the country. Judge Glenn has previously said the liquidators presented strong evidence that Mr. Davies is subject to the court's jurisdiction even though he no longer resides in the country. Liquidators have said Mr. Davies was born in the US and that 3AC was first formed in Delaware and operated in California before it was incorporated in the British Virgin Islands, according to a March ruling cited by Bloomberg. Bloomberg says the co-founders also obtained credit from US financial institutions and tapped investors in New York and California. The judge declined last year to approve a subpoena for Zhu, who liquidators have said was born in China. An August 8 court hearing has been scheduled to consider the fine, Bloomberg adds. 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. ********* 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 * * *