/raid1/www/Hosts/bankrupt/TCRLA_Public/230728.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, July 28, 2023, Vol. 24, No. 151
Headlines
A R G E N T I N A
ARGENTINA: President Accuses Opposition of Trying to Tank IMF Deal
CAPEX SA: S&P Affirms 'CCC-' ICR on Proposed Debt Exchange
B A H A M A S
FTX GROUP: Prosecutors Accuse Founder of Witness Tampering
B R A Z I L
EMBRAER SA: Fitch Rates Unit's New Sr. Unsec. Bonds 'BB+'
LIGHT SA: Unveils Proposal to Restructure $2.3 Billion of Debt
C O L O M B I A
AVIANCA: Revamps Interiors on 100+ Aircraft
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Product Prices Remain Stable in Marketplace
G R E N A D A
GRENADA: Continues to Recover From Pandemic Amidst Rising Prices
M E X I C O
METROFINANCIERA SAPI 07U: Fitch Affirms 'Csf' Sr. Notes Rating
P E R U
NAUTILUS INKIA: S&P Alters Outlook to Negative, Affirms 'BB' ICR
P U E R T O R I C O
CHALLENGER BRASS: Bid to Use Cash Collateral Denied
COMUNICADORES GRAFICOS: Lender Seeks to Prohibit Cash Access
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A R G E N T I N A
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ARGENTINA: President Accuses Opposition of Trying to Tank IMF Deal
------------------------------------------------------------------
Sofia Rojas at Noticias Argentinas reports that President Alberto
Fernandez revealed that he spoke to the head of the International
Monetary Fund, Kristalina Georgieva, on the telephone, and accused
Juntos por el Cambio of blocking the debt restructuring
negotiations. "There are sectors of the opposition hoping for the
economic situation to get worse", he stated on the radio, according
to Noticias Argentinas.
"There are comments from there. We know who's who and it's very
likely for these things to happen", he said in tune with the
statements of the Economy minister and presidential hopeful of
Union por la Patria, Sergio Massa, and added: "There is a sector
worried about some people's interests and not the good of the
country," according to Noticias Argentinas.
His words come while the delegation of the Ministry of the Economy
and Fund experts continue their negotiations in Washington, the
report notes. For the President, Sergio Massa is "particularly
involved in the negotiation" and the tension between the parties
stems from the conditions claimed by the institution," the report
relays.
"The sooner these things get solved the better, given the
uncertainty", he explained and added that: "We don't speculate with
these things. We're looking into a negotiation which doesn't stunt
Argentine growth," the report notes.
Moreover, he held that all negotiations with the credit
institution "are difficult when you seek to preserve your own
decisions", and he stated: "I trust we'll be able to move forward,
find the necessary agreements and move on," the report dicloses.
As stated by the chief executive, he had an exchange of views with
the head of the IMF in the morning, although he avoided giving any
details about it. "We are working full steam ahead to close the
deal. I'd rather let those who are working keep it up and not talk
to the media," he said, notes the report.
Asked about the possibility of paying for the next debt maturity
rescheduled for July 31st in yuans, as the country did on June
29th, he answered: "I don't wish to anticipate anything. We're
working, we can make it," the report notes.
Over the last few hours, sources from the Fund informed that it
continues to discuss with Argentine officials how to reserves and
fiscal sustainability. "Our teams continue to work constructively,
in person, with the goal of reaching an agreement over the fifth
review of the Fund-backed Argentine program", said a spokesperson
from the Fund, the report discloses.
He pointed out that "discussions remain focused on policies to
strengthen reserves and improve fiscal sustainability. We will
continue to communicate on the progress of these discussions," the
report relays.
His Role in the Election Campaign
Alberto Fernandez also explained the role to be assumed towards the
election campaign of Union por la Patria, ahead of the PASO
primaries on August 13, the report notes.
"I try to concentrate on management, I have to finish my
administration well, it's the best I can do in a campaign within a
very difficult context. I'm working a lot with Sergio (Massa) and
Agustín (Rossi) and I'm following what's going on in the campaign
because both candidates are my ministers," he said, the report
relays.
On the other hand, he attacked Juntos por el Cambio hopefuls and
Javier Milei, whom he accused of "wanting a privatised Argentina",
notes the report.
"The right wants to strip rights from the people and place
Argentina once again in a parcel of the world at the service of a
world power. We have to warn people about the risk we run", he
stated, and concluded that: "Those who want to come back are those
who left us 150 billion dollars in debt and with 55% inflation.
People need to be reminded of that. It's the same people coming
back, those who say that the scourge are the unions", 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.
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.
CAPEX SA: S&P Affirms 'CCC-' ICR on Proposed Debt Exchange
----------------------------------------------------------
On July 26, 2023, S&P Global Ratings affirmed its 'CCC-' issuer
credit and issue ratings on Argentina-based oil and gas, and
integrated electricity generator Capex S.A. and assigned a 'CCC-'
issue rating to the new proposed 9.25% senior unsecured notes due
2028.
The outlook remains negative and reflects that on Argentina. It
indicates the potentially harsher restrictions to access and/or
transfer funds abroad in the near future, including additional
central bank regulations, that could force Argentine entities to
push forward payments in foreign-currency debt.
S&P's value consideration is related to investors' receiving at
least the face value of the original obligation in any of the
alternatives proposed, as well as an increase in interest rate to
compensate for exchanging their notes for the new ones with a
longer tenor. In addition, the transaction is performed several
months in advance of the debt's maturity in May 2024.
For the early tender period that extends to Aug. 4, 2023, there are
two alternatives.
In the first alternative, Capex intends to offer a combination of:
-- A cash consideration of up to the lesser of $50 million or 21%
of the total exchange participation distributed pro rata among
investors; and
-- Senior unsecured notes for the remaining portion of principal
at a par exchange.
In the second alternative, the 2024 notes are exchanged at a ratio
of 1.04x.
For the late tender period, which extends to Aug. 18, 2023, under
both alternatives bondholders will receive all outstanding notes at
par value.
The new notes will bear an interest rate of 9.25% (up from 6.875%)
and will amortize in eight consecutive semiannual installments
starting in February 2025. The transaction is subject to a minimum
acceptance rate of 70% among holders of the 2024 notes.
If the proposed exchange doesn't succeed, Capex could struggle to
access the foreign exchange market to obtain U.S. dollars to
service its debt. This is mainly due to the current T&C
restrictions imposed by Argentina's central bank (BCRA), the
country's deep economic slump, and the domestic private entities'
limited access to foreign credit.
Given that Capex is proposing an exchange well in advance of the
2024 maturity, the BCRA granted the company access to the foreign
exchange market for up to 21% of the notes' validly tendered or $50
million. The company will finance the cash consideration with a
cross-border pre-export financing.
The reason for this is S&P doesn't believe the company has material
financial obligations that would rank ahead of its unsecured debt
by way of structural or contractual subordination in a default
scenario.
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B A H A M A S
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FTX GROUP: Prosecutors Accuse Founder of Witness Tampering
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Shubham Kalia and Gokul Pisharody at Reuters report that U.S.
prosecutors have accused FTX founder Sam Bankman-Fried of witness
tampering and asked a federal judge to issue an order that would
bar the former billionaire and other parties from making public
statements likely to interfere with a fair trial.
The prosecutors wrote to U.S. District Judge Lewis Kaplan
referencing a New York Times article titled "Inside the Private
Writings of Caroline Ellison, Star Witness in the FTX Case,"
according to Reuters.
The article reported excerpts from Ellison's personal Google
documents from before the collapse of FTX in which she spoke about
being "pretty unhappy and overwhelmed" with her job and feeling
"hurt/rejected" from her breakup with Bankman-Fried, the report
notes.
Ellison led Bankman-Fried's Alameda Research hedge fund and has
pleaded guilty to defrauding investors and agreed to cooperate with
prosecutors. In December, Bankman-Fried said he and Ellison had
been in a relationship but gave no further details, the report
relays.
Prosecutors said it was apparent Bankman-Fried shared documents
with the New York Times and that his lawyers have since confirmed
to the government that he met with one of the article's authors in
person and shared documents "that were not part of the government's
discovery material," the report discloses.
Bankman-Fried's spokesperson and lawyers did not immediately
respond to requests for comment. The New York Times declined to
comment, and Ellison's lawyers did not respond to a Reuters request
for comment.
The prosecutors argued that by sharing these documents,
Bankman-Fried was trying to malign Ellison's credibility, and that
such conduct could chill witnesses from testifying and taint the
jury pool, the report relays.
"By selectively sharing certain private documents with the New York
Times, the defendant is attempting to discredit a witness, cast
Ellison in a poor light, and advance his defense through the press
and outside the constraints of the courtroom and rules of evidence:
that Ellison was a jilted lover who perpetrated these crimes
alone", prosecutors wrote in the letter, the report notes.
Earlier, FTX Trading sued founder Bankman-Fried and other former
executives of the cryptocurrency exchange, seeking to recoup more
than $1 billion they allegedly misappropriated before FTX went
bankrupt, the report adds.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately agreed to step
aside, and restructuring vet John J. Ray III was quickly named new
CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
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B R A Z I L
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EMBRAER SA: Fitch Rates Unit's New Sr. Unsec. Bonds 'BB+'
---------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating to Embraer Netherlands
Finance B.V. proposed 2030 benchmark sized senior unsecured bonds.
Embraer Netherlands Finance is a wholly owned subsidiary of Embraer
S.A. (Embraer). The issuance will be unconditionally and
irrevocably guaranteed by Embraer. Net proceeds will be used for a
tender offer for the 2028, 2025 and 2027 notes, and any remainder
for general corporate purposes. Fitch currently rates Embraer's
Long-Term (LT) Foreign Currency and Local Currency Issuer Default
Ratings (IDRs) 'BB+' and Long-Term National Scale Rating
'AAA(bra)'. The Rating Outlook is Stable.
Embraer's ratings reflect its competitive positions in the
commercial and business jet markets; large backlog (USD17.4
billion) covering several years of sales; and some product
portfolio diversification that further includes defense programs
and solid operations of its services and support segment. Embraer's
robust liquidity profile (mostly held outside Brazil) and its large
export revenues combined with some offshore operating cash flow
further support its ratings. The company's ability to maintain
positive FCF generation, to reduce gross leverage, while
maintaining net leverage consistently below 2.5x during the next
years and navigate the development of Eve Holding Inc. (EVE) is key
to potential positive rating actions in the medium term.
KEY RATING DRIVERS
Ongoing Backlog and Deliveries Recover: Fitch expects commercial
aircraft deliveries for 2023 to be around 20% below 2019 levels and
10% for 2024 (around 70 and 80 aircraft, respectively). For
business jet deliveries, the rebound has been faster with an
increase of 15% in 2023 and of 24% in 2024 (around 125 and 135
aircraft, respectively). During 2022, deliveries reached 57 for
commercial aviation and 102 for executive jets. Embraer and the
global aerospace & defense industry as a whole, has been suffered
from materials shortages and supply chain constraints, which
affected deliveries targets. Fitch expects this scenario to be
improving throughout 2023 with manufacturings reporting lower lead
times for parts and higher engine availability, which is likely to
support the ongoing rebound in deliveries later in the year and
2024.
Embraer's firm order backlog (commercial aviation) stood at 281
aircraft at the end of 1Q23, down from 291 in 4Q22 and 315 in 1Q22.
In terms of financial backlog, it has already surpassed
pre-pandemic levels, with USD17.4 billion at the end of 1Q23,
amount higher than 2019 (USD16.8 billion), and improvement from
USD14.4 billion at the end of 2020. In Fitch's view, Embraer's
backlog supports production for the next several years but suffers
from concentration and quality. Embraer remains working to boost
the orders of its E2 aircraft, while fierce competition could be
pressuring to higher price discounts.
Strong Market Position: Embraer's strong market position for
commercial jets with fewer than 150 seats and within the global
executive jets are key factors supporting the expected recovery in
the company's backlog in the medium term. Albeit increasing
competition that could pressure prices, midsize commercial jets
producers are expected to continue to have opportunities with
mainline or low-cost carriers that are looking to rightsize their
fleet to adjust capacity. The weaker financial or business position
of few competitors, or in some cases a change in strategy, are
allowing growth opportunities for Embraer that are helping the
company to see deliveries rebound in 2023/2024. Embraer's high
exposure to the U.S. regional/domestic market, which have seen a
stronger recover in some markets, are also facing some
infrastructure constrains. The performance of those markets is also
a key rating consideration and should help to drive commercial
aviation deliveries.
EBIT Margin Recovering: Embraer's operating performance is expected
to improve as deliveries rebound. During 2023 and 2024, Fitch
projects that Embraer's EBIT margins will recover to around 6.5%,
with the likely increase in backlog. During pre-pandemic period,
the company was facing pressures as it navigated several new
development programs. The lower deliveries in commercial aviation
and less favorable mix have affected the company's fixed cost
dilution during the 2020-2022 period.
Short-Term Working Capital Pressure: After a strong FCF generation
during 2022 (around USD500 million), working capital consumption
ahead of deliveries volume ramp-up, ongoing capex programs and
developments at EVE will pressure Embraer's FCF in the next 2-3
years. The strong FCF during 2022 represented an improvement from
the USD1 billion of FCF burn in 2020 and positive FCF of USD239
million in 2021. For 2023 and 2024, FCF is expected to be negative
at USD188 million and USD208 million, after capex of USD396 million
and USD555 million (including EVE), respectively. For 2023-2024,
Fitch's rating case does not currently assume dividend
distributions.
Net Leverage Trending Down: Fitch forecasts Embraer's net
debt/EBITDA to reach 1.9x in 2023, down from 2,4x in 2022 and 4.3x
in 2021. This compares with 20.7x in 2020, 4.1x in 2019 and average
of 1.0x during the 2015-2017 period. On gross leverage, Embraer's
leverage remains high for the rating, around 5.6x-4.6x over the
next two years. The company's ability to maintain positive FCF
generation, to reduce gross leverage, while maintaining net
leverage consistently below 2.5x during the next years and navigate
the development of EVE is key to potential positive rating actions
in the medium term.
Modest Brazilian Risk: Approximately 90% of Embraer's revenue is
generated from exports or from business operations based abroad.
Nonetheless, Brazil's economic and political environment is a
concern as the majority of Embraer's operating asset base is
locally domiciled, and the government represents a large portion of
the defense segment backlog. Brazil is listed as a related party in
Embraer's SEC filings as a result of the Brazilian government's
"golden share" and a direct shareholder stake (approximately 5% of
Embraer) via a company controlled by the government. Embraer's
recent contract renegotiations with the Federal Government was an
item to watch, but Fitch does not expect any major impact to cash
flow.
Rating Above Country Ceiling: Fitch does not consider Brazil's
country ceiling a rating constraint for Embraer currently, given
the company's large cash holding outside of Brazil, as well as its
heavy focus on exports, stand-by credit facility and growing
business outside of Brazil. Based on these factors, under Fitch's
criteria, Embraer could be rated up to three notches higher than
the Brazilian country ceiling.
DERIVATION SUMMARY
Embraer is one the market leaders for commercial jets with fewer
than 150 seats. Its aircraft are known for their engineering,
commonality across models and interior design. The company had 281
firm jet orders in backlog as of March 31, 2023. Embraer's total
backlog, including contracts from all segments, was USD17.4 billion
at March 31, 2023. Embraer's weaker competitive position compared
with major global peers, notably The Boeing Company (BBB-/Stable)
and Airbus SE (A-/Stable), based on scale and financial strength,
is partially offset by its good business position in the niche of
commercial jets with fewer than 150 seats, and its manageable
financial profile. Embraer's bulk of operations are in Brazil, but
its large exports flow, cash balances and operating cash flow
abroad are factors supporting its ratings above the country
ceiling, as per Fitch's criteria.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within the Rating Case for the Issuer
-- Embraer's commercial deliveries to be close to the company's
guidance of 70 in 2023 and 80 in 2024 (-21% and -10% versus 2019);
-- The business jet market deliveries to be around 125 in 2023 and
2024;
-- EBIT margin to moving around 7%;
-- Consolidated investment expenditures of around USD400 million
in 2023 and USD550 million in 2024;
-- Embraer to maintain its strong liquidity throughout the
forecast period and active liability management strategy to manage
refinancing risks.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- An upgrade to investment-grade level would be dependent on a
return to net leverage below 2.5x on sustainable basis, in addition
to gross leverage around 4.5x and strong liquidity position with no
major refinancing risks in the medium term;
-- Strong rebound in deliveries to 2019 levels earlier than
expected leading to EBIT margins above 7%;
-- Steady positive FCF generation.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Higher than expected capex levels, including additional cash
outflows related to EVE;
-- Substantial order cancellations in the E1 and E2 programs and
business jet segment, or significant delays and cost increases on
the new programs;
-- Net leverage remaining consistently above 3.5x from end of 2023
on;
-- Substantial declines in liquidity without commensurate debt
reductions;
-- Multiple-notch downgrade of Brazil's sovereign rating, along
with a similar reduction in the country ceiling.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Strong Liquidity: Embraer's financial flexibility is solid and it
is a key factor supporting the ratings. The company had USD3.2
billion of debt as of March 31, 2023, with cross-border unsecured
bonds representing around 79% of this amount. Total cash and
investments at the end of the period were USD1.9 billion, excluding
EVE (USD 294 million), and is sufficient to support debt
amortization up to at least mid 2027. The company's liquidity is
further enhanced by a revolving credit facility of USD650 million.
Fitch expects Embraer to remain disciplined with its liquidity
position, maintaining its proactive approach in liability
management to avoid exposure to refinancing risks. At March 31,
2023, approximately 98% of the company's cash, equivalents and
financial investments were in U.S. dollars and a major part being
held abroad.
ISSUER PROFILE
Embraer is the market leader for commercial jets with fewer than
150 seats. Its aircraft are known for their engineering,
commonality across models, and interior design. The company
delivered 57 commercial jets in 2022, an increase from 44 in 2020,
but down from 89 in 2019, 90 in 2018, and 101 in 2017.
DATE OF RELEVANT COMMITTEE
January 19, 2023
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
LIGHT SA: Unveils Proposal to Restructure $2.3 Billion of Debt
--------------------------------------------------------------
Reuters reports that Rio de Janeiro-based electricity distributor
Light SA has submitted a plan to restructure about 11 billion reais
($2.30 billion) of debt, according to a securities filing dated
July 14.
Light filed for bankruptcy protection in May, becoming the latest
high-profile Brazilian firm to do so in recent months, according to
the report.
The plan, which has yet to be approved by the lenders of the
company, foresees a number of repayment and capitalization options,
the report notes. Light said it will seek to raise at least 1
billion reais ($209 million) of new funds as part of its
reorganization plan, the report relays. In one, unsecured
creditors would accept a 60% discount to be repaid at once, the
report notes.
There is also a provision to convert unsecured debt into equity in
the proposed restructuring, the report notes.
Another payment option involves the issuance of new debt securities
to unsecured creditors, to be placed with a 20% discount on face
value, the report discloses. Light would repay the principal on
such new debt securities in 15 years, including a five-year waiting
period, the report adds.
According to Reuters, the company's creditors have yet to evaluate
and approve the plan formally. Changes to the proposal are expected
as talks progress, as is common in these situations.
Light provides services in 31 municipalities in the state of Rio de
Janeiro, and has around 4.5 million customers.
It has maintained services even after filing for bankruptcy, the
report relates.
About Light S.A.
As reported in the Troubled Company Reporter-Latin America on
June 13, 2023, Bloomberg News reported that investor Nelson
Tanure said he'll vote in favor of the bankruptcy process
for Rio de Janeiro's power company Light SA at a shareholders'
meeting, making the approval of the measure practically certain.
Moody's Investors Service has downgraded to Ca from
Caa3 Light S.A.'s (Light) Corporate Family Rating, the Issuer
Ratings and Backed Senior Unsecured ratings of its operating
subsidiaries Light Servicos De Eletricidade S.A. (Light SESA) and
Light Energia S.A. (Light Energia), both guaranteed by Light. The
outlooks remain negative.
These actions follow the court approval of Light's judicial
recovery request under the Brazilian Bankruptcy and Reorganization
Law. The judicial recovery in Brazil is the closest equivalent to
Chapter 11 of the US Bankruptcy Code.
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C O L O M B I A
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AVIANCA: Revamps Interiors on 100+ Aircraft
-------------------------------------------
Business Traveler reports that Colombian flag carrier Avianca has
overhauled the interiors of more than 100 Airbus A320 jets,
increasing their capacity by a fifth as it repositions itself as a
budget airline following its bankruptcy.
Bogota-headquartered Avianca filed for chapter 11 bankruptcy in New
York in the spring of 2020 amid the upheaval and travel
restrictions of the coronavirus pandemic, according to the report.
As part of its post-bankruptcy restructuring, Avianca has adopted a
new business model, transforming itself from a full-service legacy
airline to a low-cost carrier, the report notes.
It now offers cheaper, more competitive fares at several service
tiers and charges for onboard snacks, beverages, and other items,
the report relays.
To enable the change, the airline has refurbished the interiors of
104 Airbus narrowbody jets to accommodate more passengers, the
report discloses.
The retrofit was completed in just two years, adding 180 new Recaro
seats to each plane, which is 20% more than the previous capacity,
the report adds.
The seats are arranged in Premium, Plus, and Economy classes, the
report notes.
Avianca says that the overhaul will enable it to "offer more
competitive prices, transport more passengers per aircraft,
contribute to the decongestion of some airports, and reduce CO2
emissions," the report discloses.
It estimates that the new configuration will reduce the carbon
emissions of each carried passenger by 15.35%, bringing the airline
closer to its sustainability goals, adds the report.
About Avianca
Avianca -- https://aviancaholdings.com/ -- is the commercial brand
for the collection of passenger airlines and cargo airlines under
the umbrella company Avianca Holdings S.A. Avianca has been flying
uninterrupted for 100 years. With a fleet of 158 aircraft, Avianca
serves 76 destinations in 27 countries within the Americas and
Europe.
Avianca Holdings S.A. and its affiliates sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. S.D. N.Y. Lead Case No.
20-11133) on May 10, 2020. At the time of the filing, Debtors
disclosed $7,273,900,000 in assets and $7,268,700,000 in
liabilities.
Judge Martin Glenn oversees the cases.
The Debtors tapped Milbank LLP as general bankruptcy counsel;
Urdaneta, Velez, Pearl & Abdallah Abogados and Gomez-Pinzon
Abogados S.A.S. as restructuring counsel; Smith Gambrell and
Russell, LLP as aviation counsel; Seabury Securities LLC as
financial restructuring advisor and investment banker; FTI
Consulting, Inc. as financial restructuring advisor; and Kurtzman
Carson Consultants LLC as claims and noticing agent.
The U.S. Trustee for Region 2 appointed a committee of unsecured
creditors in Debtors' bankruptcy cases on May 22, 2020.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Product Prices Remain Stable in Marketplace
---------------------------------------------------------------
Dominican Today reports that President of the Federation of
Traders, Miguel Minaya, points out that only products in short
supply due to the production process show some price variation. In
the Mercado Nuevo de Villas Agricolas, the prices of most of the
agricultural products have been stable for weeks, and only a few
have varied due to shortages caused by the production process,
according to Dominican Today.
The market remains fully stocked with all products, according to
Minaya, and the vendors consulted, the report notes.
"The market has the same prices of the last months for the most
part. Some prices have gone up a little but there are others that
have dropped considerably, such as lemons currently, because we are
in season," he explained, the report relays.
He added that when a product is scarce, it usually tends to go up
in price, but it has been a few months since most of the goods in
the market have risen, the report discloses.
Complaints of Low Sales Persist
On other occasions, vendors pointed out that sales have been low.
Sales have indeed fallen, assured one vendor, who explained that
they have dropped by around 30 percent in the last few months, the
report relays.
According to Minaya, sales in the new market have been low for
years because the plaza functions more as a collection center,
where people buy to resell, 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.
=============
G R E N A D A
=============
GRENADA: Continues to Recover From Pandemic Amidst Rising Prices
----------------------------------------------------------------
On July 17, 2023, the Executive Board of the International Monetary
Fund (IMF) concluded the 2023 Article IV consultation with Grenada
and considered and endorsed the staff appraisal without a meeting.
Grenada' tourism-dependent economy continued to recover from the
pandemic amidst rising energy and food prices. Growth is estimated
to have reached 6.4 percent in 2022, driven by a tourism rebound
and construction activity. Inflation rose moderately to 2.9 percent
by end-2022, as the authorities' policy response dampened the pass
through from rising global food and fuel prices. Public debt is now
back on a downward trend. The financial sector is well-capitalized
and liquid although non-performing loans (NPLs) of credit unions
have risen.
Economic growth is expected to continue in 2023, although at a
slower pace of 3.9 percent, led by activity in tourism-related
sectors. Inflation is expected to peak at 3.2 percent toward the
end of this year. An economic slowdown of key tourist source
markets, renewed increases in food and fuel prices, a natural
disaster, or an abrupt decline in revenues from the
Citizenship-by-Investment (CBI) program could weaken growth, worsen
the fiscal position, and threaten debt sustainability. On the
upside, shifting demand for services in advanced economies could
make for even stronger tourism demand and investment projects may
prove to have a more front-loaded impact on the economy.
The government is committed to a return to the fiscal rules in
2023, after triggering the escape clause in 2020–22 to address
the fallout of the pandemic. It planned to amend the Fiscal
Responsibility Law this year to best support the country's
sustainable development. The government is seeking international
support to facilitate the implementation of its Disaster Resilience
Strategy and a transition towards renewable energy, critical for
enhancing resilience to natural disasters and economic
competitiveness.
Executive Board Assessment
Fiscal buffers built up over the past decade have allowed the
authorities to respond swiftly both to the pandemic and to higher
energy and food prices.The government's relief measures in 2022
helped protect the population from rising global food and fuel
prices. However, more could have been done to target this support
and preserve fiscal resources.
The economic recovery is taking hold, but important near-term
downside risks remain. Real GDP is projected to expand by 3.9
percent in 2023. An economic slowdown of key tourist source
markets, renewed increases in food and fuel prices, a natural
disaster, or an abrupt decline in revenues from the CBI program
could weaken growth, worsen the fiscal position, and threaten debt
sustainability. On the upside, shifting demand for services in
advanced economies could make for even stronger tourism demand and
investment projects may prove to have a more front-loaded impact on
the economy.
The external position is assessed to be weaker than the level
implied by fundamentals and desirable policies. Estimated imputed
reserves are assessed as adequate.
Public debt is now back to a downward path and debt is assessed to
be sustainable. However, Grenada is found to remain "in debt
distress" due to its outstanding arrears of about US$37.6 million
to official bilateral creditors, including Trinidad and Tobago and
Algeria.
The immediate policy priority is to return to the fiscal rules to
preserve credibility.Spending on relief measures should decline as
the initial food and fuel price spike dissipates. The focus should
be on structurally improving the effectiveness and targeting of
social assistance programs (including through improvements in the
determination of eligibility) and moving away from broad-based
support.
The planned amendment of the Fiscal Responsibility Framework should
be used to simplify the fiscal rules, institute a more effective
medium-term fiscal framework, and enhance accountability and
oversight.Maintaining the framework's current focus on debt
reduction will continue to underpin debt sustainability. There is
also a need for greater clarity on how fast debt should return to
its medium-term path following a shock. A fully operationalized
contingency fund will help smooth government expenditure and
provide insurance for major shocks. Transparency should be enhanced
by publishing public sector and SOE audited financial statements
and improving data on CBI flows and their usage.
To make space for critical spending will require increasing the
efficiency of both the tax system and public spending. The tax
incentive framework should be updated based on a reassessment of
the rationales, costs, and benefits of various incentives. Public
investment management should be strengthened to address major
bottlenecks in project implementation, improve project oversight,
and strengthen the transparency and accountability of the
procurement process.
The sustainability of public finances should be improved. Reforms
to the National Insurance Scheme (NIS) through a phased increase in
the contributory rate and pensionable age will help improve the
financial position of the NIS and should be quickly implemented.
The new pension system for new entrants to public service should be
designed to be actuarially sound. The ongoing regularization of
public sector workers should be guided by a thorough review of job
functions that assesses the allocation of resources and help
retrain public sector workers. A comprehensive wage review and
payroll audits are needed to ensure the wage grid reflects the
current labor market conditions.
The financial sector is stable, liquid, and resilient to shocks
amid tightening global financial conditions, but NPLs at credit
unions are at elevated levels. Lending standards and provisioning
requirements should be tightened for credit unions while continuing
to enforce corrective actions for those institutions that do not
meet prudential requirements. Credit unions should strengthen their
own debt collection efforts and bolster their internal governance
and risk management practices. Achieving an effective risk-based
and forward-looking supervisory approach will require more granular
information, better analytical capacity, and well-designed stress
testing. The authorities should find ways to improve financial
literacy and should encourage financial institutions to leverage
the ECCU regional credit bureau when it comes into operation.
To enhance competitiveness, Grenada should increase the domestic
value-added of tourism, promote gender equality, and improve labor
skills.Strengthening linkages with agriculture and fisheries will
help increase the domestic value-added of tourism. Measures to
boost agricultural productivity and build resilience to adverse
weather events will be critical to securing future production.
Policy efforts are needed to address identified gender gaps and
incentivize female labor force participation. Training and
apprenticeship programs should focus on increasing technical and
entrepreneurial skills, better integrating academic institutions
and employers, and facilitating the transition to employment.
Building resilience requires the government's resolute
implementation of its Disaster Resilience Strategy and an
expeditious transition to renewable energy.Continued improvement in
the regulatory framework can help incentivize the adoption of
renewable energy. Concessional financing from multilaterals and
climate funds can help catalyze private financing for investments
in renewables and climate adaptation. Communication about the
environmental impact of renewable energy projects would help foster
public support and incentivize private financing of such projects.
===========
M E X I C O
===========
METROFINANCIERA SAPI 07U: Fitch Affirms 'Csf' Sr. Notes Rating
---------------------------------------------------------------
Fitch Ratings has affirmed the following Metrofinanciera, S.A.P.I.
de C.V. SOFOM ER (Metro; rated B+(mex)/Negative) residential
mortgage-backed securities (RMBS):
MTROCB 07U
-- Local Currency (LC) long-term (LT) rating at 'Csf';
-- National Scale LT rating at 'C(mex)vra'.
MTROCB 08U
-- LC LT rating at 'Csf';
-- National Scale LT rating at 'C(mex)vra'.
METROCB 06U
-- National Scale LT rating at 'CC(mex)vra'.
MTROFCB 08
-- National Scale LT rating at 'AAA(mex)vra'; Outlook Stable.
ENTITY/DEBT RATING PRIOR
---------- ------ -----
Metrofinanciera
ETROCB06U (F#529)
2006
METROCB06U Natl LT CC(mex)vra Affirmed CC(mex)vra
Metrofinanciera
MTROCB08U (F#339)
MTROCB 08U
MTROCB 08U
MX97MT010017 LT Csf Affirmed Csf
MTROCB 08U
MX97MT010017 Natl LT C(mex)vra Affirmed C(mex)vra
Metrofinanciera
MTROCB07U (F#297)
MTROCB 07U
Senior Notes
MX97MT010009 LT Csf Affirmed Csf
Senior Notes
MX97MT010009 Natl LT C(mex)vra Affirmed C(mex)vra
Metrofinanciera
MTROFCB08 (F#381) 2008
MTROFCB 08
MX97MT020008 Natl LT AAA(mex)vra Affirmed AAA(mex)vra
KEY RATING DRIVERS
Adequate Operational Risk Exposure: Metrofinanciera maintains
adequate servicing, reporting and recovery activities of its
portfolio although the monetization of non-performing assets has
slow-down in the last years, Metrofinanciera has been historically
active on the sale of the REOs. The entity is rated by Fitch as
primary servicer at 'AAFC3-(mex)' with a Stable Outlook.
Immaterial Counterparty Risk: Commingling risk continues having an
immaterial exposure for all transactions as collections are
received directly into the Transaction Bank Accounts (TAB) opened
on behalf of the issuing trusts, isolating funds from insolvency of
the counterparties. In the same way, payment interruption is viewed
as immaterial.
MTROCB 07U (Trust F/297)
High Defaults Remaining: As of May 2023, the portfolio was
comprised by a total of 850 loans originated in Mexico equivalent
to 44.97million Unidades de Inversion (UDIs). The portfolio has
9.56% of +180 days defaults over initial balance (IB) below the
figure observed in the previous review of 10.10% as of June 2022,
given the number of foreclosures over the LTM. The transaction
remains polarized with 60.65% of the outstanding balance with +180
days default, causing transaction to rely on recoveries for the
full debt repayment.
Continued OC Deterioration: As of June 2023, the transaction has a
remaining balance of 66.79 million UDIs that represents a 24.0% of
the issuance notes balance; during the last year, the notes balance
amortized around 0.8% of the 278.31 million UDIs issued in 2007.
Moreover, overcollateralization (OC) has continued decreasing to
-270.6% as of June 2023 from -217.9% as of June 2022.
MTROCB 08U (Trust F/339)
High Defaults Remaining: As of May 2023, the portfolio was composed
by a total of 879 loans originated in Mexico equivalent to
42.26millionUDIs. The portfolio has 9.0% of +180 days defaults over
IB below the figure observed in the previous review of 9.6% as of
June 2022, given the number of foreclosures over the LTM. The
transaction remains polarized with 58.11% of the outstanding
balance with +180 days default, causing transaction to rely on
recoveries for the full debt repayment.
Continued OC Deterioration: As of June 2023, the transaction has a
remaining balance of 96.16 million UDIs that represents a 36.7% of
the issuance notes balance; during the last year, the notes balance
amortized a 0.2% of the 261.98 million UDIs issued in 2008.
Moreover, OC has continue decreasing to -431.13% as of June 2023
from -350.5% as of June 2022.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Rating would be downgraded to 'D(mex)' if transaction defaults on
its interest payments given the increasingly deteriorated OC
level.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade is viewed as unlikely, given that the current rating
reflects Fitch's view of an imminent or inevitable default of the
notes.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
=======
P E R U
=======
NAUTILUS INKIA: S&P Alters Outlook to Negative, Affirms 'BB' ICR
----------------------------------------------------------------
On July 26, 2023, S&P Global Ratings revised its outlook on
Nautilus Inkia Holdings SCS, Nautilus Distributions Holdings LLC,
and Nautilus Isthmus Holdings LLC (co-issuers, referred to as Inkia
or the company) to negative from stable and affirmed its issuer
credit rating at 'BB' and issue-level rating at 'BB-'.
S&P said, "The negative outlook reflects our view that if these
assets are sold in the next 6-12 months, Inkia's business risk
profile could weaken because of the lower scale of operations and
narrower diversification, pressuring the company's credit quality.
Moreover, divestments could raise cash-flow volatility as remaining
assets would operate under what we view as less predictable
regulatory frameworks."
Since last year, Inkia has been making progress in its divestment
plan, as seen in the sale of power generation subsidiaries in the
Dominican Republic, El Salvador, Guatemala, Jamaica, Panama,
Nicaragua, and Peru. This is part of the divestment plan of Inkia's
ultimate shareholder, I Squared Capital Advisors LLC. Moreover, the
company is in the process to sell its largest assets, which could
close in the next 6-12 months. S&P expects Inkia to use the sales
proceeds to repurchase fully its $218 million existing notes.
=====================
P U E R T O R I C O
=====================
CHALLENGER BRASS: Bid to Use Cash Collateral Denied
---------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico denied
the motion to use cash collateral filed by Challenger Brass &
Copper Co Inc. for failure to comply with Fed. R. Bank. P. 4001(b)
by failing to file a motion in accordance with Fed. R. Bankr. P.
9014 and accompanied by a proposed form of order.
Further, LBR 4001-2(c) requires that a request for urgent interim
use of cash collateral be presented by an affidavit. The debtor is
directed to file a motion in compliance with national and local
bankruptcy rules on or before July 26, 2023, to be considered by
the court during the August 2, 2023, hearing.
A copy of the order is available at https://urlcurt.com/u?l=whhNKM
from PacerMonitor.com.
About Challenger Brass & Copper Co Inc.
Challenger Brass & Copper Co Inc. is engaged in the manufacturing
and commercialization of copper, brass, bronze, stainless steels,
and aluminum. The company is based in Toa Baja, P.R.
Challenger Brass & Copper filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No.
23-01917) on June 23, 2023. The petition was signed by Abimael
Padilla Negron as authorized representative of the Debtor. At the
time of filing, the Debtor reported $1,031,500 in assets and
$2,540,722 in liabilities.
Judge Edward A. Godoy presides over the case.
Jesus Enrique Batista Sanchez, Esq. at The Batista Law Group, PSC
represents the Debtor as counsel.
COMUNICADORES GRAFICOS: Lender Seeks to Prohibit Cash Access
------------------------------------------------------------
Resolute FP US Inc. asks the U.S. Bankruptcy Court for the District
of Puerto Rico to prohibit Comunicadores Graficos, Inc. from using
cash collateral.
Prior to the Petition Date, the Debtor entered into various
agreements with Resolute pursuant to which the latter provided
materials to the Debtor.
Prior to the Petition Date, the Debtor defaulted on its obligations
under the Invoices, which defaults were duly notified to the
Debtor. The amount due by Debtor under the Invoices total
$266,445.
Resolute commenced a legal action against the Debtor, which
culminated with the Commonwealth of Puerto Rico Court of First
Instance, Carolina, granting partial summary judgment in favor of
Resolute on April 2, 2019, and requiring the Debtor to pay the
amounts due under the Invoices.
On October 22, 2019, Resolute, Debtor, and Accurate Printers, Inc.
executed the Settlement and Payment Agreement to resolve, among
other things, the Debtor's and Accurate's respective debts to
Resolute, including the Comunicadores Judgment. Further, the Debtor
acknowledged and confirmed in the Settlement Agreement that (i) the
Comunicadores Judgment is payable on demand, is liquidated, and
that it is immediately due and payable to Resolute; (ii) it
reaffirmed and ratified all of the covenants and obligations under
the Invoices and the contracts; (iii) the total amount of the debt
is $324,963, which Debt is jointly and severally liable by both
Debtor and Accurate; (iv) that Debtor is in default with the Debt;
(v) that Debtor and Accurate agreed to a payment plan for full and
complete satisfaction of the Debt, among other covenants; and (vi)
that Debtor and Accurate will grant a voluntary lien in favor of
Resolute over all of their "assets, equipment, and accounts
receivable".
As of the Petition Date, the amounts due by the Debtor under the
Invoices, the Comunicadores Judgment, and the Debt in the
Settlement Agreement total no less than $248,183 as evidenced by
Proof of Claim No. 33.
As of today, the Debtor has not requested an order authorizing the
use of Resolute's cash collateral. Further, Resolute has not
consented to any use of cash collateral by the Debtor.
The Debtor requests that the court prohibit any and all use of the
Cash Collateral and, in addition to such prohibition, that the
Court grant Resolute adequate protection on an emergency basis by:
a. granting a first priority replacement lien on all of the
Debtor's post-petition assets;
b. requiring an accounting of all cash collateral received by or
for the benefit of the Debtor since the Petition Date;
c. requiring that any cash collateral or property of Resolute that
is in the possession, custody or control of the Debtor or any of
the insiders of the Debtor be turned over to Resolute, whether now
existing or hereafter created, within the later of: (i) five days
from date hereof; or (ii) five days of receipt;
d. prohibiting the Debtor from using any of the Resolute's cash
collateral unless otherwise ordered by the Court;
e. granting such other relief that the Court finds necessary and
just; and
f. providing that nothing will prejudice the opportunity for, and
nothing will obligate any party to make, further stipulations
concerning any matter (including but not limited to future use of
cash collateral).
A copy of the motion is available at
https://urlcurt.com/u?l=8QhfxI
from PacerMonitor.com.
About Comunicadores Graficos
Comunicadores Graficos Inc. is a Puerto Rico-based company engaged
in printing and related support activities.
Comunicadores Graficos filed its voluntary petition for relief
under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No.
23-01064) on April 13, 2023, with $1 million to $10 million in
both
assets and liabilities. Juan Rafael Pierantoni Gonzalez, president
of Comunicadores Graficos, signed the petition.
Jesus Enrique Batista Sanchez, Esq. at The Batista Law Group,
P.S.C
represents the Debtor as counsel.
Resolute FP US Inc., as lender, is represented by:
Nayuan Zouairabani, Esq.
Victoria Rivera Llorens, Esq.
McConnell Valdes LLC
270 Muñoz Rivera Avenue
Hato Rey, Puerto Rico 00918
Tel: 787-250-5619
Fax: 787-759-9225
Email: nzt@mcvpr.com
vrll@mcvpr.com
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Chapman, Editors.
Copyright 2023. All rights reserved. ISSN 1529-2746.
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