/raid1/www/Hosts/bankrupt/TCRLA_Public/230717.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, July 17, 2023, Vol. 24, No. 142
Headlines
A R G E N T I N A
ARGENTINA: Inflation Slowed to 6% in June, Reveals INDEC
ARGENTINA: Wheat Area Cut Even as Rains Improve Crop Conditions
BLOCKFI INC: 3AC Liquidators Say Plan Outline Inadequate
B R A Z I L
MV24 CAPITAL: S&P Affirms 'BB' Rating on $1.1BB Sr. Secured Notes
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Exec Prepares Law to Regulate Public Companies
J A M A I C A
JAMAICA: Public Sector Wage Increases Drive Up Fiscal Expenditure
P U E R T O R I C O
MANANTIAL ROCA: Case Summary & Six Unsecured Creditors
X X X X X X X X
[*] BOND PRICING COLUMN: For the Week July 10 to July 14, 2023
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A R G E N T I N A
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ARGENTINA: Inflation Slowed to 6% in June, Reveals INDEC
--------------------------------------------------------
Buenos Aires Times reports that inflation in Argentina slowed by
almost two points in June to six percent, decelerating for a second
consecutive month, according to official data released July 13.
The news, a rare boon for the government after months of soaring
increases, comes as Economy Minister Sergio Massa attempts to
tamper down prices ahead of next month's primaries and October's
general election, according to Buenos Aires Times.
Nevertheless, Argentina's ongoing problem with inflation is evident
if one takes a wider view: prices in Argentina have increased by
115.6 percent over the last year and by 50.7 percent since the turn
of the year, the report notes.
June's figure was the lowest monthly rate since January and comes
off the back of hikes of 8.4 percent in April and 7.8 percent in
May, the report relays.
Private consultancy firms had mostly forecast a deceleration,
though many cited a drop in economic activity as the cause, the
report discloses. The most recent Central Bank survey of market
analysts and economists had predicted a rate of 7.3 percent -
significantly higher than the actual figure, the report notes.
According to the poll, Argentina will record an inflation rate of
142 percent this calendar year, the report says.
The Noticias Argentinas news agency reported that government
officials were "relieved" by INDEC's report and delighted that
inflationary momentum had slowed, while recognizing that the
monthly figure is still high, the report relays.
Still, it will add value to the government's argument that its
sweeping 'Precios Justos' price-control scheme is having an impact
on hikes, the report says.
Speaking at a press conference prior to the release of the data,
Government Spokesperson Gabriela Cerruti said that Argentina is
"facing a downward trend and a much lower number than the last
measurement," the report notes.
"This allows us to think that we are on a downward trend in
inflation, which had had an impact in the first months of the year
as a result of the drought," she added, referring to the historic
dry spell that is expected to slash as much as US$20 billion off
the country's agricultural exports, the report relays.
Leading Increases
Buenos Aires Times relates that topping June's inflation data was
the communications sector. Hikes totalled 10.5 percent, in most
part led by government-approved increases in telephone and Internet
services, the report notes.
Next up was health, which rose 8.6 percent, again as a result of
scheduled increases in the costs of medicine and prepaid health
services, the report discloses. Utilities (housing, water,
electricity, gas and other fuels) rose 8.1 percent, mainly due to
increases in the cost of electricity, the report says.
Underlining the impact of government price controls, food and
non-alcoholic beverages - which normally lead the categories
recording the highest increases - rose by just over four percent,
the report relays. Notable rises were seen in bread, cereals,
dairy products and eggs, the report notes. Alcoholic beverages and
tobacco registered hikes of 4.5 percent, the report says. Clothing
and footwear was up 4.2 percent, the report adds.
INDEC said that core inflation was 6.5 percent in June, with
regulated prices rising 7.2 percent on average and seasonal prices
up just 1.8 percent, the report relays.
The impact was felt greatest in the Patagonia region (up 6.8
percent on average) with Greater Buenos Aires (5.8 percent) and
Cuyo (5.3 percent) seeing the lowest average increases, the report
notes.
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.
In 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+'.
S&P's 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 March 24, 2023, 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-'.
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: Wheat Area Cut Even as Rains Improve Crop Conditions
---------------------------------------------------------------
Keira Wright at Bloomberg News reports that wheat plantings in
Argentina will cover an area of 5.4 million hectares, 200,000
hectares less than estimated in June, with production now seen at
15.6 million tons, according to the Rosario Board of Trade.
-- Recent rains boost planting in areas of La Pampa and Buenos
Aires and improve crop conditions
-- Almost 80 percent of the wheat crop has been planted
-- Planted wheat area still expected to be lowest in eight
years because of lack of rain earlier
-- Corn production seen at 32 million tons, 40 percent less
than earlier expectations
-- Forty percent of the corn still to be harvested, with
progress slow because of high moisture
-- Soybean production estimate cut yet again to 20 million tons
from 20.5 million tons seen in June
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.
In 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+'.
S&P's 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 March 24, 2023, 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-'.
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.
BLOCKFI INC: 3AC Liquidators Say Plan Outline Inadequate
--------------------------------------------------------
Russell Crumpler and Christopher Farmer, in their joint capacities
as the duly authorized joint liquidators appointed in the British
Virgin Islands ("BVI") liquidation of Three Arrows Capital, Ltd.
(in liquidation) ("3AC") and foreign representatives of 3AC, as
recognized pursuant to chapter 15 of the Bankruptcy Code in the
case captioned in re Three Arrows Capital, Ltd., filed an objection
to the Disclosure Statement Relating to the First Amended Joint
Chapter 11 Plan of BlockFi Inc. and its debtor affiliates pursuant
to Chapter 11 of the Bankruptcy Code and the Debtors' motion for
entry of an order approving the adequacy of the Disclosure
Statement.
The Joint Liquidators filed proofs of claim against the Debtors
asserting, inter alia, preference claims under BVI and other
applicable law arising from transfers by 3AC to the Debtors and
loans extended by 3AC to the Debtors. Based on presently available
information, the Joint Liquidators believe their claims against the
Debtors exceed $220 million, making 3AC among the Debtors' most
significant creditors. The Debtors propose to equitably
subordinate 3AC's claims through the Plan, and if their equitable
subordination gambit fails, 3AC would be treated pari passu with
Account Holder Claims, General Unsecured Claims, and Intercompany
Claims.
The Liquidators say the Disclosure Statement Motion should be
denied for multiple reasons:
* First, the proposed confirmation procedures violate the
automatic stay applicable in 3AC's chapter 15 case. The Debtors
are stayed from pursuing equitable subordination of 3AC's claims by
the automatic stay imposed in 3AC's chapter 15 case, and the
Debtors have not sought, let alone been granted, relief from the
stay. The Joint Liquidators will file a motion to enforce the
automatic stay in 3AC's chapter 15 case, not only because the stay
applies to the Debtors' equitable subordination attempt but also
because 3AC faces equitable subordination based on identical
allegations in the chapter 11 cases of Genesis Global Holdco, LLC
and certain of its affiliates (Bankr. S.D.N.Y. Case No. 23-10062
(SHL), Docket No. 429). If the Debtors are permitted to litigate
equitable subordination of 3AC's claims in these chapter 11 cases,
3AC will face multiple equitable subordination litigations running
in parallel and adjudicating the same facts and issues before
different bankruptcy courts, which would introduce the potential
that 3AC is subject to conflicting equitable subordination
rulings.
Notably, equitable subordination depends principally on the
debtor's conduct -- i.e., 3AC -- and so the issues are largely
3AC's issues and thus the same for each creditor. The
applicability of the stay to the Debtors' equitable subordination
attempt (and the same tactics by the Genesis debtors) should be
decided by the bankruptcy court overseeing 3AC's chapter 15 case
before the equitable subordination litigation may proceed (if
relief is granted at all). In light of this threshold obstacle to
litigating equitable subordination on the timeline the Debtors
propose, equitable subordination litigation should not be
adjudicated in connection with confirmation. Moreover, there is no
reason that the equitable subordination litigation must be decided
in connection with confirmation, as the Plan provides for a reserve
for distributions on account of disputed claims that are
subsequently allowed after the effective date.
* Second, even if the automatic stay were lifted, the Debtors'
proposed confirmation procedures would deprive the Joint
Liquidators of due process. The Disclosure Statement includes only
two sentences describing the factual and legal bases for equitably
subordinating 3AC's claims. DS at 46. These disclosures are devoid
of specificity and instead rely on conclusory statements that "3AC
is alleged to have been a fraud from inception" and 3AC's founders
"have taken steps to undermine the asset recovery efforts" of the
Joint Liquidators. The Disclosure Statement also fails to identify
how the Debtors' creditors were harmed by 3AC's alleged inequitable
conduct. The Debtors' meager statements do not afford the Joint
Liquidators reasonable notice of the claims against them or
sufficient information to prepare an objection to the Plan. If the
Debtors are granted relief from the stay (which the Joint
Liquidators will dispute), the Court should establish a schedule to
litigate equitable subordination that gives due consideration to
the complex factual and legal issues that equitable subordination
presents, which at a minimum begins with the Debtors filing a
complaint stating with particularity the substantive basis for
subordination combined with sufficient time for a motion to dismiss
followed by discovery to investigate and then try the merits of
those bases (whatever they may be).
* In contrast, under the Debtors' proposed procedures, the
Debtors do not propose to supplement the Disclosure Statement with
a pleading setting forth the factual and legal bases for equitable
subordination until they file their confirmation brief and reply to
objections on August 13, 2023 -- only four days before the
confirmation trial is proposed to commence -- leaving the Joint
Liquidators inadequate time to prepare a defense. And worse still,
the Debtors propose July 28, 2023 as the deadline to object to
confirmation, which means that the Joint Liquidators would be
required to object to the subordination of their claims with
nothing more to rely on than the two sentences in the Disclosure
Statement. Such a procedure turns due process on its head and
would require the Joint Liquidators to respond to claims of
equitable subordination before they have even seen the allegations
that are the basis for such claims, and then have no informed
opportunity to conduct discovery of those allegations in a targeted
and efficient manner, much less adequately prepare for trial, once
those allegations are revealed. Considering that the Plan proposes
procedures for reserving against disputed claims pending
adjudication following the effective date, it is clear that tying
the equitable subordination litigation to confirmation is designed
to deprive the Joint Liquidators of reasonable notice and
opportunity to present a defense to subordination. Accordingly,
the Disclosure Statement Motion should not be approved absent
additional protections to ensure that the Joint Liquidators are
afforded due process.
* Finally, the statements in the Disclosure Statement regarding
the Debtors' proposed litigation with respect to significant
disputed claims, including 3AC's claims, fail to provide creditors
adequate information to make their own judgment on the viability of
the Debtors' strategy. The Debtors acknowledge that litigation
regarding these disputed claims "will make a positive or negative
difference to client recoveries of over $1 billion, orders of
magnitude larger than any other issue facing BlockFi and its
Clients" and consequently, failure to prevail in litigation "could
be catastrophic for the Estates and Clients." DS at 14-15. And yet,
the Disclosure Statement fails to explain the factual or legal
basis for the Debtors' claims with the level of specificity needed
for creditors to make an informed judgment about the Debtors'
litigation position for example, it does not disclose the basis for
equitable subordination against noninsiders such as 3AC and the
harm that unsecured creditors allegedly suffered as a result of
3AC's actions. Considering that the disputed claims litigation is
the largest driver of creditor recoveries (according to the
Debtors), the Disclosure Statement is inadequate and should not be
approved absent more fulsome disclosure regarding the substantive
basis for disputing the claims.
The Joint Liquidators have attempted to engage the Debtors in
settlement discussions to explore whether a consensual resolution
may be achievable without the need for costly, time-consuming
litigation, and to that end have requested to participate in the
ongoing mediation. The Debtors have rejected the Joint
Liquidators' request to participate in mediation and have not
otherwise meaningfully engaged with the Joint Liquidators on the
merits and treatment of their claims.
Counsel to the Foreign Representatives of Three Arrows Capital,
Ltd. (in liquidation):
Adam S. Ravin, Esq.
Adam J. Goldberg, Esq.
Christopher Harris, Esq.
Brett M. Neve, Esq.
Nacif Taousse, Esq.
LATHAM & WATKINS LLP
1271 Avenue of the Americas
New York, NY 10020
Telephone: (212) 906-1200
Facsimile: (212) 751-4864
E-mail: adam.ravin@lw.com
adam.goldberg@lw.com
christopher.harris@lw.com
brett.neve@lw.com
nacif.taousse@lw.com
- and -
Nima H. Mohebbi, Esq.
Tiffany M. Ikeda, Esq.
LATHAM & WATKINS LLP
355 South Grand Avenue, Suite 100
Los Angeles, CA 90071
Telephone: (213) 485-1234
Facsimile: (213) 891-8763
E-mail: nima.mohebbi@lw.com
tiffany.ikeda@lw.com
About BlockFi Inc.
BlockFi is building a bridge between digital assets and traditional
financial and wealth management products to advance the overall
digital asset ecosystem for individual and institutional
investors.
BlockFi was founded in 2017 by Zac Prince and Flori Marquez and in
its early days had backing from influential Wall Street investors
like Mike Novogratz and, later on, Valar Ventures, a Peter
Thiel-backed venture fund as well as Winklevoss Capital, among
others. BlockFi made waves in 2019 when it began providing
interest-bearing accounts with returns paid in Bitcoin and Ether,
with its program attracting millions of dollars in deposits right
away.
BlockFi grew during the pandemic years and had offices in New York,
New Jersey, Singapore, Poland and Argentina.
BlockFi worked with FTX US after it took an $80 million hit from
the bad debt of crypto hedge fund Three Arrows Capital, which
imploded after the TerraUSD stablecoin wipeout in May 2022.
BlockFi had significant exposure to the companies founded by former
FTX Chief Executive Officer Sam Bankman-Fried. BlockFi received a
$400 million credit line from FTX US in an agreement that also gave
FTX the option to acquire BlockFi through a bailout orchestrated by
Bankman-Fried over the summer. BlockFi also had collateralized
loans to Alameda Research, the trading firm co-founded by
Bankman-Fried.
BlockFi is the latest crypto firm to seek bankruptcy amid a
prolonged slump in digital asset prices. Lenders Celsius Network
LLC and Voyager Digital Holdings Inc. also filed for court
protection this year. Kirkland & Ellis is also advising Celsius and
Voyager in their separate Chapter 11 cases.
BlockFi Inc. and eight affiliates sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 22-19361) on
Nov. 28, 2022. In the petitions signed by their chief executive
officer, Zachary Prince, the Debtors reported $1 billion to $10
billion in both assets and liabilities.
Judge Michael B. Kaplan oversees the cases.
The Debtors taped Kirkland & Ellis and Haynes and Boone, LLP as
general bankruptcy counsels; Walkers (Bermuda) Limited as special
Bermuda counsel; Cole Schotz, P.C., as local counsel; Berkeley
Research Group, LLC as financial advisor; Moelis & Company as
investment banker; and Street Advisory Group, LLC as strategic and
communications advisor. Kroll Restructuring Administration, LLC is
the notice and claims agent.
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B R A Z I L
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MV24 CAPITAL: S&P Affirms 'BB' Rating on $1.1BB Sr. Secured Notes
-----------------------------------------------------------------
On July 13, 2023, S&P Global Ratings affirmed its 'BB' issue-level
rating on MV24 Capital B.V.'s (MV24 or the project) $1.1 billion
6.748% senior secured notes.
The positive outlook reflects the one on the global scale rating on
Petrobras.
S&P said, "We think the vessel is inherently exposed to operational
risks and security factors that can result in lower availability
and no bonus payment. Although the vessel's average availability is
about 96% since deployment, we assume 95% availability annually
from 2024 onward because we expect greater variability in monthly
availability, as illustrated by the latest downtime, discussed
further below. In our view, the project's resilience in a
downside-case scenario supports MV24's strength, given its
fixed-price and availability-based charter payments.
"We expect that MV24 will have a minimum availability of about 90%
in 2023 and that it will use all the maintenance days this year,
resulting in no maintenance allowance bonus payment, leading to an
annual DSCR of around 1.02x."
On Feb. 16, 2023, MV24's vapor recovery unit (VRU) failed to
restart after the preventive maintenance and needed to be sent
onshore to be repaired. After completing the necessary repairs, the
VRU was reinstalled and returned to normal operation on March 26.
S&P said, "During this period, the uptime was about 70%. However,
we exclude the 2023 DSCR from the minimum calculation because we
consider this a one-off event that's unlikely to be repeated in the
following years, and we forecast the DSCR reverting to our
base-case in 2024. Next year, we expect MV24 to use seven days of
maintenance stoppage, leading to a DSCR close to 1.28x."
S&P said, "We revised the minimum DSCR to incorporate periodic
replacement of the four gas turbine generators (GTG) in the vessel,
which need to be replaced every two to three years. In 2022, MV24
reported $13.8 million in expenses to replace three GTGs. According
to the vessel operator, Modec Inc., one GTG was replaced in 2022,
two GTGs were replaced in mid-2023, and the remaining replacement
should happen in 2025 or 2026. The GTGs' replacement costs are now
incorporated in our projections, which results in a lower minimum
DSCR compared to our previous base case of 1.21x between 2024 and
2034. Nevertheless, the lower minimum DSCR doesn't affect the
project's stand-alone credit profile (SACP)."
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D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Exec Prepares Law to Regulate Public Companies
------------------------------------------------------------------
Dominican Today reports that the Executive Branch of the Dominican
Republic is finalizing a bill aimed at organizing and regulating
public companies in the country. These companies either have
entirely public capital or have the majority of their shares owned
by the State, according to Dominican Today.
Antoliano Peralta, the legal consultant of the Executive Power,
revealed this information during an interview with elCaribe-CDN,
the report notes. He explained that currently, there is no
specific legislation that governs public companies, which means
they are established without clear guidelines and mechanisms,
unlike the constitution of public or private trusts, the report
relays.
Peralta cited several examples of Dominican companies with public
capital or majority public ownership, including Banco de Reservas,
the Dominican Oil Refinery (Refidomsa), Punta Catalina, Las Edes,
the Hydroelectric Generation Company Dominican Republic (Egehid),
as well as upcoming entities like the Metropolitan Bus Services
Office (OMSA) and the Dominican Chemical Laboratory, the report
notes.
He highlighted that while public trusts were established in the
past without a specific law, a public trust law has since been
enacted, the report relays. The new development he announced is
the ongoing work on a bill that will organize and regulate public
companies, which are companies with public capital or majority
public ownership, the report discloses. This marks the first time
this information has been shared publicly, and the bill aims to
provide a legal framework for these entities, 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.
S&P Global Ratings, in December 2022, raised its long-term foreign
and local currency sovereign credit ratings on the Dominican
Republic to 'BB' from 'BB-'. The outlook on the long-term ratings
is stable. S&P affirmed its 'B' short-term sovereign credit
ratings. S&P also revised its transfer and convertibility (T&C)
assessment to 'BBB-' from 'BB+'. The stable outlook reflects S&P's
expectation of continued favorable GDP growth and policy continuity
over the next 12-18
months that will likely stabilize the government's debt burden.
In February 2023, S&P said its BB ratings reflect the country's
fast-growing and resilient economy. It also incorporates the
country's historical political and social challenges in passing
structural reforms to contain fiscal deficits, despite recent
improvements in the electricity sector. The ratings are constrained
by relatively high debt, a hefty interest burden, and limited
monetary policy flexibility.
Fitch Ratings, in December 2022, affirmed the Dominican Republic's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Rating Outlook.
Moody's affirmed the Dominican Republic's long-term issuer and
senior unsecured ratings at Ba3 and maintained the stable outlook
in March 2021.
=============
J A M A I C A
=============
JAMAICA: Public Sector Wage Increases Drive Up Fiscal Expenditure
-----------------------------------------------------------------
Kellaray Miles at Jamaica Observer reports that a 26 per cent or
$30.7-billion increase in total government expenditure, largely
driven by the recent public sector compensation exercise, stood
among the key highlights of the fiscal performance review delivered
by the Economic Program Oversight Committee (EPOC).
Describing the undertaking as unprecedented and one "never seen in
the history of Jamaica", chairman of EPOC Keith Duncan said that
the increased employee compensations, which went up by about $24
billion or near 53 per cent, significantly added to total
year-on-year expenditure totaling $148.4 billion for the April-May
2022 review period, according to Jamaica Observer.
"Wages and salaries was a very hot topic and continue to be a sort
of hot potato for many. Total wages and salaries was $95.2 billion
ahead of 2021/22, coming in at $317.9 billion - which is actually
42.8 per cent greater than the 2021/22 year. This public sector
review has been a very complex one and I believe the Ministry of
Finance has done a very good job in restructuring the
compensations, making them more efficient, reducing the salary
bands and the number of allowances. The most important thing is
that we now have an efficient compensation model," Duncan said, the
report notes.
Commenting on the climate of the economic environment, which
continues to be tempered by rising interest rates, high inflation,
and the tightening of monetary policy by the Bank of Jamaica (BOJ),
Duncan also said that the recent increases in public sector
salaries could possibly force the BOJ to further hold its current
policy rate over the next few months, the report discloses.
Inflation, which continues to hover around the outer band of the
targeted range, was 6.1 per cent in May, influencing the central
bank's decision to hold interest rates at 7 per cent, following its
last monetary policy committee meeting, the report notes.
The continued growth of industries, such as tourism and the return
of other key sectors, such as mining after the return of Jamalco's
operation, have also helped to fuel economic growth of 4.7 per cent
for the fiscal year, pushing gross domestic product above the
pre-pandemic level, the report relays.
Noting the country's access to the International Monetary Fund's
(IMF) US$968 million Precautionary and Liquidity Line (PLL) and
US$764 million Resilience and Sustainability Facility (RSF), Duncan
said that the availability of these programs provides that
additional buffer of safety for the economy, which can only help to
strengthen the institutional framework for fiscal policy, the
report relays.
"We continue to achieve our targets under the fiscal responsibility
targets and Jamaica continues to do really well in getting its
levels down. What we have seen so far is that the economy has been
witnessing a strong recovery after COVID, which I would say has
been very well managed by Government, the finance minister, and the
BOJ," he stated, noting that while the BOJ in its outlook has
projected 1-3 per cent growth for the economy in 2023/24 - the
desire is for the economy to outperform these numbers despite risks
such as a slowdown in private credit and the tightening of monetary
policy, the report says.
"Aside from this we are however hopeful that the economy will
continue to meet its growth projection," he further said while
underscoring the need for there to be a balancing act and the
continuation of proper fiscal management, the report notes.
Duncan, who continues to chair EPOC, providing oversight for fiscal
rules, said that with the appointment of Courtney Campbell as
fiscal commissioner in March, his role will soon come to an end
when EPOC is replaced later this year, the report says.
"The office is now being set up, and we expect by around maybe
December that it should be up and running, EPOC will transition and
the fiscal commissioner will take his rightful role in guarding the
fiscal rules, providing oversight in his independent capacity to
ensure that government adheres to the rules under the fiscal
responsibility laws," he said, the report adds.
About Jamaica
Jamaica is an island country situated in the Caribbean Sea.
Jamaica is an upper-middle income country with an economy heavily
dependent on tourism. Other major sectors of the Jamaican economy
include agriculture, mining, manufacturing, petroleum refining,
financial and insurance services.
Standard & Poor's credit rating for Jamaica stands at B+ with
negative outlook (April 2020). Moody's credit rating for Jamaica
was last set at B2 with stable outlook (December 2019). Fitch's
credit rating for Jamaica was last reported at B+ with stable
outlook (April 2020).
In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is
Stable.
=====================
P U E R T O R I C O
=====================
MANANTIAL ROCA: Case Summary & Six Unsecured Creditors
------------------------------------------------------
Debtor: Manantial Roca Cristal, LLC
PR 112 Km 1.3 Ramal 4445 Int Bo Rocha
Moca, PR 00676
Business Description: The Debtor owns real property located at
PR 112 Km 1.3 Ramal 4445 Int Bo Rocha,
MocaA, PR valued at $686,000.
Chapter 11 Petition Date: July 10, 2023
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 23-02122
Judge: Hon. Enrique S. Lamoutte Inclan
Debtor's Counsel: Juan C. Bigas-Valedon, Esq.
JUAN C. BIGAS
PO Box 7011
Ponce, PR 00732-7011
Email: cortequiebra@yahoo.com
Total Assets: $721,764
Total Liabilities: $1,022,313
The petition was signed by Lourdes Socorro Ramirez Benique as
presidente.
A full-text copy of the petition containing, among other items, a
list of the Debtor's six unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/BSIQRIY/MANANTIAL_ROCA_CRISTAL_LLC__prbke-23-02122__0001.0.pdf?mcid=tGE4TAMA
===============
X X X X X X X X
===============
[*] BOND PRICING COLUMN: For the Week July 10 to July 14, 2023
--------------------------------------------------------------
Issuer Cpn Price Maturity Country Curr
------ --- ----- -------- ------- ----
Agile Group Holdings 6.1 41 10/13/2025 KY USD
Agile Group Holdings 5.5 45 04/21/2025 KY USD
Agile Group Holdings 5.5 39.2 05/17/2026 KY USD
Alfa Desarrollo SpA 4.6 72.1 09/27/2051 CL USD
Alfa Desarrollo SpA 4.6 72.1 09/27/2051 CL USD
Alibaba Group 2.7 67.4 02/09/2041 KY USD
Alibaba Group 3.2 65.2 02/09/2051 KY USD
Agile Group Holdings 5.8 50.2 01/02/2025 KY USD
Banco Davivienda SA 6.7 66.5 CO USD
Banco de Chile 2.7 75.4 03/09/2035 CL AUD
Banco de Chile 1.7 69.5 04/26/2032 CL EUR
Chile Bond 1.3 52 01/22/2051 CL EUR
Chile Bond 3.1 66.9 01/22/2061 CL USD
Chile Bond 1.3 65.4 01/29/2040 CL EUR
Chile Bond 1.3 71.2 07/26/2036 CL EUR
Chile Bond 3.3 66.6 09/21/2071 CL USD
China Maple Leaf 2.3 75 01/27/2026 KY USD
China SCE Group 6 29 02/04/2026 KY USD
China SCE Group 7.4 56.2 04/09/2024 KY USD
China SCE Group 7 35.2 05/02/2025 KY USD
China SCE Group 6 42.9 09/29/2024 KY USD
Ruta del Maipo 2.3 53.5 12/15/2024 CL CLP
Santander Consumer 2.9 73.1 11/27/2034 CL AUD
Seagate HDD Cayman 3.4 73.4 07/15/2031 KY USD
Seazen Group 4.5 63.6 07/13/2025 KY USD
Silk Road Investments 2.9 68.8 01/23/2042 KY AUD
Simpar Finance 10.8 73.8 02/12/2028 BR BRL
Simpar Finance 10.8 73.8 02/12/2028 BR BRL
Skylark 1.8 58.2 04/04/2039 KY GBP
YPF SA 1 69.8 01/10/2026 AR USD
YPF SA 7 61.6 12/15/2047 AR USD
YPF SA 7 61 12/15/2047 AR USD
UEP Penonome II SA 6.5 73.6 10/01/2038 PA USD
UEP Penonome II SA 6.5 74.1 10/01/2038 PA USD
Guaranteed 5.4 73.7 01/29/2038 KY USD
Guaranteed 5.3 71.9 03/23/2038 KY USD
QNB Finance 11.5 62.1 1/30/2025 KY TRY
Generacion 9.9 73.1 12/01/2027 AR USD
Generacion 12.5 0 02/16/2024 AR USD
Gol Finance Inc 8.8 40.5 KY USD
Gol Finance Inc 8.8 42 KY USD
Goldman Sachs 2.3 75.9 06/30/2040 KY EUR
Greenland Hong Kong 10.2 45.9 KY USD
Guacolda Energia SA 4.6 40.8 04/30/2025 CL USD
Guacolda Energia SA 4.6 40.8 04/30/2025 CL USD
Tencent Holdings 3.2 66.2 06/03/2050 KY USD
Tencent Holdings 3.2 66.5 06/03/2050 KY USD
Tencent Holdings 3.3 63 06/03/2060 KY USD
Tencent Holdings 3.3 63.5 06/03/2060 KY USD
Three Gorges Finance 3.2 74.2 10/16/2049 KY USD
VTR Comunicaciones 5.1 55.3 01/15/2028 CL USD
VTR Comunicaciones 5.1 53.6 01/15/2028 CL USD
VTR Comunicaciones 4.4 54.4 04/15/2029 CL USD
VTR Comunicaciones 4.4 54.5 04/15/2029 CL USD
Earls Eight 0.1 63.8 12/20/2031 KY AUD
Earls Eight 2.3 75.2 05/20/2032 KY AUD
Earls Eight 1.7 71.4 06/20/2032 KY AUD
Ecopetrol SA 4.6 75 11/02/2031 CO USD
Ecopetrol SA 5.9 63.9 11/02/2051 CO USD
Ecopetrol SA 5.9 65.5 05/28/2045 CO USD
Lani Finance 3.1 68.6 10/19/2048 KY AUD
Lani Finance 1.9 63.3 10/19/2048 KY EUR
Lani Finance 1.7 60 03/14/2049 KY EUR
Lani Finance 1.9 62.3 09/20/2048 KY EUR
QNB Finance 3.4 75.4 10/21/2039 KY AUD
QNB Finance 13.5 55.7 10/06/2025 KY TRY
QNB Finance 2.9 75.3 12/04/2035 KY AUD
SYN prop e tech SA 13.6 20.3 3/15/2024 BR BRL
Yango Cayman 12 3.9 09/15/2023 KY USD
MSU Energy SA 6.9 70.8 02/01/2025 AR USD
MSU Energy SA 6.9 71.2 02/01/2025 AR USD
Itau Unibanco SA 5.8 19.4 05/20/2027 BR BRL
Jamaica Government 8.5 68.9 12/21/2061 JM JMD
Jamaica Government 6.3 72.7 07/11/2048 JM JMD
Kaisa Group Holdings 10.9 9.1 KY USD
Fospar S/A 6.5 1.3 05/15/2026 BR BRL
Frigorifico 7.7 71.1 07/21/2028 PY USD
Frigorifico 7.7 71.4 07/21/2028 PY USD
Galaxy Digital 3 62.5 12/15/2026 KY USD
Colombia Bond 7.3 71.3 10/18/2034 CO COP
Colombia Bond 7.3 71.3 10/18/2034 CO COP
Colombia Bond 7.3 61.5 10/26/2050 CO COP
Colombia Bond 7.3 61.5 10/26/2050 CO COP
Colombia Bond 3.9 54.8 02/15/2061 CO USD
Colombia Bond 4.1 61.9 02/22/2042 CO USD
Colombia Bond 5.6 72.7 02/26/2044 CO USD
Colombia Bond 3.1 74 04/15/2031 CO USD
Colombia Bond 3.3 72.1 04/22/2032 CO USD
Colombia Bond 5.2 67.3 05/15/2049 CO USD
Colombia Bond 4.1 58.8 05/15/2051 CO USD
Colombia Bond 5 66.9 06/15/2045 CO USD
Colombia Bond 6.3 63 07/09/2036 CO COP
Colombia Bond 6.3 63 07/09/2036 CO COP
Helenbergh China 8 32.9 11/07/2024 KY USD
Banco del Estado 3.1 72.5 02/21/2040 CL AUD
Banco del Estado de 1.7 70 03/01/2032 CL EUR
Banco del Estado 2.8 68.9 03/13/2040 CL AUD
Banco del Estado 1.7 69.2 07/05/2032 CL EUR
Banco GNB Sudameris 7.5 73.3 04/16/2031 CO USD
Banco GNB Sudameris 7.5 73.4 04/16/2031 CO USD
Banco Santander Chile 1.3 57.6 11/29/2034 CL EUR
Banco Santander Chile 3.1 72.3 02/28/2039 CL AUD
Panama Bond 4.5 73.5 01/19/2063 PA USD
Panama Bond 4.3 74.8 04/29/2053 PA USD
Panama Bond 3.9 66.8 07/23/2060 PA USD
Pearl Holding III 9 30.5 10/22/2025 KY USD
Pearl Holding III 9 30.5 10/22/2025 KY USD
Peruvian Bond 3.6 68.6 01/15/2072 PE USD
Peruvian Bond 2 69.5 11/17/2036 PE EUR
Peruvian Bond 2.8 61.1 12/01/2060 PE USD
Peruvian Bond 1.3 72.1 03/11/2033 PE EUR
Peruvian Bond 3.2 60.9 07/28/2121 PE USD
Vista Energy 1 73 03/03/2028 AR USD
Voyager II 3.3 74.3 03/23/2034 KY AUD
Transocean Inc 6.8 67.6 03/15/2038 KY USD
Inversiones Latin 5.1 44.6 06/15/2033 CL USD
Inversiones Latin 5.1 44.8 06/15/2033 CL USD
KWG Group Holdings 7.4 15.8 01/13/2027 KY USD
KWG Group Holdings 6 40.8 01/14/2024 KY USD
KWG Group Holdings 5.9 22.2 11/10/2024 KY USD
KWG Group Holdings 6.3 17.6 02/13/2026 KY USD
KWG Group Holdings 7.4 26.5 03/05/2024 KY USD
KWG Group Holdings 6 19.4 08/10/2025 KY USD
KWG Group Holdings 6 16.8 08/14/2026 KY USD
KWG Group Holdings 7.9 27.5 08/30/2024 KY USD
KWG Group Holdings 7.9 60.2 09/01/2023 KY USD
Telecom Argentina SA 1 56.5 02/10/2028 AR USD
Telecom Argentina SA 1 64.2 03/09/2027 AR USD
Tencent Holdings 3.8 74.1 04/22/2051 KY USD
Tencent Holdings 3.8 74.1 04/22/2051 KY USD
Tencent Holdings 3.9 72.3 04/22/2061 KY USD
Tencent Holdings 3.9 72.3 04/22/2061 KY USD
eHi Car Services 7 64.9 09/21/2026 KY USD
El Salvador Bond 6.4 62.3 01/18/2027 SV USD
El Salvador Bond 6.4 62 01/18/2027 SV USD
El Salvador Bond 7.1 48.5 01/20/2050 SV USD
El Salvador Bond 7.1 48.6 01/20/2050 SV USD
El Salvador Bond 5.9 46 01/30/2025 SV USD
El Salvador Bond 7.6 49.4 02/01/2041 SV USD
El Salvador Bond 7.6 49.4 02/01/2041 SV USD
El Salvador Bond 8.6 58.1 02/28/2029 SV USD
El Salvador Bond 8.6 57.9 02/28/2029 SV USD
El Salvador Bond 8.3 56.4 04/10/2032 SV USD
El Salvador Bond 8.3 56.3 04/10/2032 SV USD
El Salvador Bond 7.7 50 06/15/2035 SV USD
El Salvador Bond 7.7 50 06/15/2035 SV USD
El Salvador Bond 9.5 54.6 07/15/2052 SV USD
El Salvador Bond 9.5 54.5 07/15/2052 SV USD
El Salvador Bond 7.6 49.9 09/21/2034 SV USD
El Salvador Bond 7.6 50 09/21/2034 SV USD
Banda de Couro 8 69.1 01/15/2027 BR BRL
Alibaba Group 3.3 63 02/09/2061 KY USD
AMTD IDEA Group 4.5 52.5 KY SGD
AAC Technologies 3.8 68.6 06/02/2031 KY USD
ACEN Finance 4 70.9 KY USD
AES Tiete 6.8 0.7 04/15/2024 BR BRL
Agile Group Holdings 13.5 40.7 KY USD
Agile Group Holdings 8.4 38.1 KY USD
Agile Group Holdings 7.9 31 KY USD
Argentina Bonar Bonds 1 19.8 7/09/2029 AR USD
Argentina Bonar Bonds 1 27.5 08/05/2023 AR USD
Argentina Treasury 2.5 25.3 11/30/2031 AR ARS
Argentine Bond 0.5 19.5 07/09/2029 AR EUR
Argentine Bond 1 23.7 07/09/2029 AR USD
Argentine Bond 0.1 21.5 07/09/2030 AR EUR
Argentine Bonos 16 72.6 10/17/2023 AR ARS
Argentine Bonos 15.5 22.2 10/17/2026 AR ARS
Ascent Finance 3.4 58.4 02/06/2043 KY AUD
Ascent Finance 3.8 59.8 06/28/2047 KY AUD
Ascent Finance 1.2 61.4 07/12/2047 KY EUR
Astra Cumulative 1.5 60.6 11/01/2029 KY 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. 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 * * *