/raid1/www/Hosts/bankrupt/TCRLA_Public/250314.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, March 14, 2025, Vol. 26, No. 53
Headlines
A R G E N T I N A
AUTOPISTAS DEL SOL: Fitch Affirms & Then Withdraws B+ LongTerm IDR
B R A Z I L
BRAZIL: Will Not Retaliate Against U.S. Steel Tariffs Immediately
G U Y A N A
GUYANA: IMF Says Economy is Advancing at a Strong Pace
J A M A I C A
NCB FINANCIAL: Fitch Affirms 'BB-/B' IDRs, Outlook Positive
P E R U
PERU Finance Chief is Betting on Tax Cuts to Boost Growth to 4%
P U E R T O R I C O
CARIBE ENTERTAINMENTS: Unsecureds Will Get 15% over 60 Months
TETRAD ENTERPRISES: Seeks Chapter 11 Bankruptcy in Puerto Rico
T R I N I D A D A N D T O B A G O
NIQUAN ENERGY: Assets Being Sold Off
VENEZUELA: Economist Says Real Negotiations Will Now Take Place
- - - - -
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A R G E N T I N A
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AUTOPISTAS DEL SOL: Fitch Affirms & Then Withdraws B+ LongTerm IDR
------------------------------------------------------------------
Fitch Ratings has affirmed and subsequently withdrawn Autopistas
del Sol, S.A.'s (AdS) 'B+' Long-Term International Rating on its
international notes and 'A+(cri)' Long-Term National Scale Rating
on its local notes. The Rating Outlook at the time of withdrawal
was Positive. As of this date, Fitch will no longer provide rating
services for AdS.
RATING RATIONALE
Fitch has chosen to withdraw the Ratings of AdS for commercial
reasons.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Rating sensitivities do not apply as the ratings have been
withdrawn.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Rating sensitivities do not apply as the ratings have been
withdrawn.
ESG Considerations
Fitch will no longer provide ESG relevance scores.
Entity/Debt Rating Prior
----------- ------ -----
Autopistas del
Sol, S.A.
Autopistas del Sol,
S.A./Project Revenues
- First Lien/1 LT LT B+ Affirmed B+
Autopistas del Sol,
S.A./Project Revenues
- First Lien/1 LT LT WD Withdrawn
Autopistas del Sol,
S.A./Project Revenues
- Second Lien/2 Natl LT Natl LT A+(cri) Affirmed A+(cri)
Autopistas del Sol,
S.A./Project Revenues
- Second Lien/2 Natl LT Natl LT WD(cri) Withdrawn
===========
B R A Z I L
===========
BRAZIL: Will Not Retaliate Against U.S. Steel Tariffs Immediately
-----------------------------------------------------------------
globalinsolvency.com, citing Reuters, reports that Brazil's Finance
Minister said that the country would not immediately retaliate
against tariffs imposed by the United States on steel and aluminum
imports, instead seeking talks, with the government noting it will
consider all actions.
U.S. President Donald Trump's increased tariffs on all steel and
aluminum imports took effect, stepping up a campaign to reorder
global trade in favor of the U.S. and drawing swift retaliation
from Canada and Europe, according to globalinsolvency.com.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian
general election. He was sworn in on January 1, 2023, as the 39th
president of Brazil, succeeding Jair Bolsonaro.
In October 2024, Moody's Ratings upgraded the Government of
Brazil's long-term issuer and senior unsecured bond ratings to Ba1
from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2;
and maintained the positive outlook. S&P Global Ratings raised on
Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB'
from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with
a Stable Outlook. DBRS' credit rating for Brazil was last reported
at BB with stable outlook at July 2023.
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G U Y A N A
===========
GUYANA: IMF Says Economy is Advancing at a Strong Pace
------------------------------------------------------
An International Monetary Fund (IMF) staff team, led by Ms. Alina
Carare and Ms. Lusine Lusinyan, held discussions virtually and in
Georgetown for the 2025 Article IV Consultation during February
24–March 7, 2025. The team met with Vice-President Dr. Bharrat
Jagdeo, Finance Minister Dr. Ashni Singh, Minister of Parliamentary
Affairs and Governance Gail Teixeira, Central Bank Governor Dr.
Gobind Ganga, other senior officials, representatives from the
private sector, banks, labor unions, and other stakeholders. At the
conclusion of the visit, Ms. Carare and Ms. Lusinyan issued the
following statement:
Guyana's economic transformation is advancing at a strong pace and
broadening in scale. Rapidly expanding oil production, strong
non-oil output, and large-scale public infrastructure investment
supported the highest real GDP growth rate in the world, at a
recorded average of 47 percent in 2022–24. The non-oil economy
continues to reflect a solid broad-based performance across
sectors, especially construction and services. Real GDP and real
non-oil GDP are projected to grow by about 10¼ percent and 13
percent in 2025, respectively. Inflation is expected to edge up to
around 4 percent by end-2025 from close to 3 percent in end-2024.
Following a strong fiscal impulse in 2024, the budget deficit is
expected to narrow from 7.3 percent of GDP to just below 5 percent
of GDP in 2025, as higher oil revenues more than offset the
projected increase in spending. The large current account surplus
of 24½ percent of GDP in 2024 is projected to moderate to about 9
percent of GDP in 2025 reflecting the imports of the fourth oil
Floating Production Storage and Offloading (FPSO) vessel.
The medium-term economic outlook remains highly favorable with
balanced risks. The economy is expected to grow on average 14
percent per year over the next five years, driven by robust oil
production amid a growing share of the non-oil sector. Non-oil GDP
is projected to expand on average by about 6¾ percent per year.
Risks to the outlook are broadly balanced. On the upside, further
oil discoveries and productivity-enhancing investments, including
to strengthen energy resilience would further bolster Guyana's
economic prospects. Downside risks stem from overheating pressures
which, if not contained, could lead to higher inflation and real
exchange rate appreciation beyond the level consistent with a
balanced expansion of the economy. Commodity price volatility in a
highly uncertain global environment and climate shocks could also
adversely affect inflation and alter the macroeconomic outlook.
Staff commends the authorities' continued commitment to maintaining
macroeconomic stability, ensuring fiscal sustainability, and
fostering inclusive growth. While there are no clear signs of
overheating, enhancing the close monitoring of macroeconomic
developments and continuing to proactively respond through tighter
policies would be essential to ensure that the economy avoids
overheating and remains on a balanced expansion path. Staff
assesses that social transfer policies implemented in recent years
have increased disposable income and reduced the poverty rate.
Going forward, additional targeted transfers, integrated into a
medium-term fiscal framework, could further support inclusive
growth and help Guyana advance faster toward its sustainable
development goal (SDG) of no poverty.
Given Guyana's development and investment needs, the fiscal policy
stance is appropriate at this stage, and the fiscal deficits should
gradually close over the medium term. The increase in the
withdrawal ceiling from the Natural Resource Fund (NRF) in early
2024 provided room for a substantial expansion of capital
expenditure, which reached over 12½ percent of GDP in 2024. Staff
recommends gradually closing the overall fiscal deficit by 2031,
followed by a narrowing of the non-oil primary deficit over the
(conservatively) projected lifespan of oil reserves to the levels
consistent with ensuring intergenerational equity and preserving
fiscal and macroeconomic sustainability. Implementing a
comprehensive medium-term fiscal framework with an explicit anchor
and an operational target, further modernizing public financial
management systems, and conducting regular expenditure reviews to
continually assess spending efficiency and effectiveness in
reaching the SDGs will also help further strengthen fiscal
discipline and transparency.
Monetary policy remains appropriately tight, helping contain
inflation. Maintaining broad money growth in line with non-oil GDP
growth, continuing to carefully manage liquidity in the banking
system, and tightening monetary policy further, if signs of
overheating or imbalances emerge, remain key to guarding against
inflationary pressures. Enhancing the monetary policy toolkit,
including through strengthening the interest rate channel, reducing
excess liquidity where needed, and taking steps toward deepening
financial markets would help strengthen the effectiveness of
monetary policy transmission. Maintaining consistent policies will
continue supporting the current stabilized exchange rate regime,
which remains appropriate. As Guyana's economy continues to
transform, a reassessment of the exchange rate framework could be
beneficial in the medium term.
There is scope to strengthen macroprudential framework to help
effectively respond to potential shocks to financial stability. The
current macroprudential framework could be enhanced to link it to
the real-time supervisory framework, and staff welcomes the Bank of
Guyana's interest to engage with the IMF on technical assistance to
develop macroprudential tools. Improving data collection and
statistics on corporate and household balance sheets and real
estate prices will be critical to support strengthening banking
supervision and the move towards broad-based risk-based financial
supervision.
The authorities have advanced in enhancing governance of the NRF
and modernizing public sector operations. The 2023 NRF and Public
Accountability and Oversight Committee Annual Reports have been
presented to the National Assembly, regular notifications of
receipts of petroleum revenues, as mandated by law, are published
in the Official Gazette and presented to the National Assembly, and
the Bank of Guyana publishes monthly and quarterly reports of the
NRF's financial performance. The authorities have also made good
progress in modernizing their revenue administration capacity. The
procurement framework is being upgraded, improving public access to
information about procurement opportunities and processes and
building capacity among public officials. As part of broader
digitalization efforts in public sector service delivery, work is
ongoing to introduce e-procurement.
Staff supports Guyana's continued efforts to strengthen its AML/CFT
and anti-corruption frameworks in line with its international
commitments. Guyana's Mutual Evaluation Report by the Caribbean
Financial Action Task Force (CFATF), published in 2024, found a
significant improvement in Guyana's efforts to improve its
understanding of ML/FT risks via the conduct of multiple ML/FT risk
assessments, including a 2023 sectoral risk assessment on the
Extractive Industries. The 2024 Sixth Round of Review of the
Mechanism for Follow-up on the Implementation of the Inter-American
Convention against Corruption (MESICIC) from the Organization of
American States also acknowledges Guyana's progress, and the
authorities are working to strengthen the Integrity Commission,
particularly the compliance framework for the submission of
declarations.
Continued implementation of reforms will further strengthen fiscal
transparency and anti-corruption frameworks, including in
extractive industries. Internal audit capabilities are expanding,
and more effort is needed to ensure a timely publication of audit
reports of some public companies and local authorities. In line
with the recommendations of the MESICIC 2024 report, work is
ongoing in multiple areas to strengthen anti-corruption efforts.
Following the Extractive Industries Transparency Initiative (EITI)
report published in 2024, the authorities are working to implement
the beneficial ownership transparency recommendation in line with
the EITI standards. There is also scope to strengthen regulatory
compliance in the non-oil mining sector, particularly with
large-scale operators. Staff supports the authorities' strong
efforts to strengthen the rule of law through hiring more
magistrates and judges.
Guyana remains a global pioneer in climate policies monetizing
forest conservation, and the authorities are enhancing the
country's energy matrix, strengthening macroeconomic resilience.
Against climate change vulnerabilities stemming from sea level rise
and flooding, the authorities are working to prioritize actions as
outlined in the Guyana's Low Carbon Development Strategy 2030 to
build resilience, further promote sustainable forestry, and enhance
biodiversity conservation. The Gas-to-Energy project is expected to
secure reliable electricity provision countrywide as a transition
toward a cleaner and more renewable energy mix over the longer
term.
Staff supports the authorities' efforts to foster inclusive growth,
economic diversification, and upgrading of labor skills. Addressing
labor shortages and skill mismatches through training and
vocational education is key to supporting the ongoing economic
expansion and increasing women participation in the labor markets.
Staff commends the authorities for reforms and investments to boost
productivity, trade connectivity, and export diversification,
including through high value-added products in agriculture and
manufacturing.
Staff welcomes the authorities' ongoing efforts to modernize
official statistics and offered further support through capacity
development. In this context, further enhancements to the national
accounts and price statistics to capture the rapidly evolving
economy remain a key priority. The updated household budget survey,
planned to be finalized by 2027, and regular labor force surveys
will also help shape and refine government policies.
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J A M A I C A
=============
NCB FINANCIAL: Fitch Affirms 'BB-/B' IDRs, Outlook Positive
-----------------------------------------------------------
Fitch Ratings has affirmed National Commercial Bank Jamaica
Limited's (NCBJ) Long-Term and Short-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) at 'BB-' and 'B',
respectively. Fitch has also affirmed NCBJ's Viability Rating (VR)
at 'bb-'Fitch has additionally affirmed NCB Financial Group
Limited's (NCBFG) Long-Term Foreign and Local Currency IDRs and
Short-Term Foreign and Local Currency IDRs at 'B+' and 'B',
respectively. The Rating Outlook for both NCBJ and NCBFG's
Long-Term IDRs is Positive.
The Positive Outlook on the Long-Term IDRs is aligned with the
Positive Outlook on Jamaica's sovereign rating and reflects Fitch's
expectations of continued improvement in the Operating Environment
(OE).
Key Rating Drivers
NCBJ
VR Driven Ratings; Highly Influenced by Business Profile: NCBJ's VR
drives its IDRs. The bank's VR is highly influenced by NCBJ's
Business Profile due to its due to its dominant position as the
largest bank in Jamaica with a consolidated market share by assets
of 37% and deposits of 32% at FYE 2024, considerable pricing power,
minimal competitive pressure, and robust, long-lasting customer
relationships.
Operating Environment Influence: The VR is moderately impacted by
Jamaica's sovereign rating and broader OE considerations. The OE
Positive Outlook is indicative of Jamaica's favorable performance
on Fitch's core metrics, with an Operational Risk Index (ORI)
ranked at the 36th percentile and a GDP per capita of USD7.1
million. Additionally, the OE Positive Outlook highlights robust
governance, substantial progress in debt reduction, a solid fiscal
framework, and a strong political commitment to achieving large
primary surpluses. Fitch anticipates that these improvements will
support the expansion of the banking sector, thereby enhancing the
financial performance of banks.
Stable Asset Quality: Fitch evaluates NCBJ's asset quality as
stable, highlighting the institution's effective risk management
practices and the robust diversification of its securities and loan
portfolios. Fitch's evaluation considers that approximately 20% of
total assets consist of government investment securities with
creditworthiness comparable to the sovereign. As of FYE 2024, the
90-day non-performing loans (NPL) ratio stood at 3.1%, reflecting a
controlled level of loan impairments.
Fitch expects a slight improvement in the NPL ratio in 2025, driven
by lower inflation, reduced interest rates, and the successful
implementation of stricter risk management measures, especially in
the consumer segment. During the same period, loan loss allowances
covered 80.8% of impaired loans; however, when including the
non-distributable reserve held in equity, the coverage increases to
101% of NPLs.
Challenged Profitability: NCBJ's profitability performance faced
several challenges. The operating profit relative to average total
assets was 0.5%, indicating lower operational efficiency compared
to the four-year average from fiscal years 2021-2024, which was
1.2%. This decline was mainly attributed to persistently high loan
impairment charges, credit costs, and operational expenses. Despite
expectations for a decrease, the necessity for provisions continued
to grow in 2024, following an increase in 2023. However, the
positive OE, along with anticipated improvements in cost efficiency
and a projected significant reduction in provisions, is expected to
enhance earnings and profitability, potentially reversing the
bank's downward trend.
Adequate Capitalization: As of FYE 2024, NCBJ showcased adequate
capitalization metrics, indicating a robust capital position, by
effectively managing healthy dividend upstreaming and aligning
asset growth with its capabilities. The tangible common equity to
tangible assets ratio was 11.4%, providing a strong foundation for
risk management. As of FYE 2024, NCBJ comfortably meets the minimum
required capital adequacy ratio at 15.1%.
Additionally, the bank is required to maintain a mandatory banking
reserve fund in equity, which Fitch views as a complementary
safeguard against potential losses. Fitch expects a modest
improvement in capitalization, driven by the bank's aim to boost
its earnings and profitability, which is expected to positively
influence retained earnings and, in turn, its capitalization.
Robust Funding and Liquidity Profile: NCBJ benefits from holding
the largest market share in deposits in the country, supported by a
well-diversified, low-cost deposit base that meets 58% of its
funding needs, along with proven access to debt markets. As of FYE
2024, NCBJ's funding and liquidity profile was strong, with a gross
loans-to-customer deposits ratio of 80.3%, maintaining a balanced
funding structure. The bank's emphasis on maintaining a balanced
funding and liquidity profile contributed to its financial
stability in 2024. Fitch anticipates liquidity to remain strong,
given NCBJ's conservative position in this area.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
NCBJ- IDRs and VR
- Given NCBJ's government support assessment at the sovereign
rating level, its IDRs are sensitive to changes in the sovereign
rating actions;
- The VR could be downgraded if the bank's tangible equity ratio is
sustained below 10%, due to either accelerated growth, a relevant
deterioration in asset quality or profitability.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
NCBJ- IDRs and VR
- Given NCBJ's government support assessment at the sovereign
rating level, its IDRs are sensitive to sovereign rating actions;
- An upgrade of NCBJ's VR would also be positive for the bank's
IDR. NCBJ's VR could be upgraded if the bank is able to maintain
its strong franchise, sound financial profile relative to its
rating level, and a capital ratio of tangible common equity to
tangible assets above 10%, in the context of an improvement of the
OE.
Government Support Rating: NCBJ's Government Support Rating (GSR)
of 'bb-' aligns with the sovereign rating, reflecting the bank's
significant systemic importance. However, this rating also
considers a moderate likelihood of support due to uncertainties
regarding the sovereign's ability or willingness to provide such
assistance, as indicated by its 'BB-' Long-Term IDRs.
NCBJ- GSR
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- NCBJ's GSR would be affected if Fitch negatively changes its
assessment of the Jamaican government's propensity to provide
timely support to the bank;
- This could also arise in the event of a sovereign negative rating
action.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- NCBJ's GSR could be upgraded if Jamaica's rating is upgraded.
SUBSIDIARIES & AFFILIATES: KEY RATING DRIVERS
NCBFG
Creditworthiness of its Major Subsidiary: NCBFG ratings are based
on the creditworthiness of its main subsidiary NCBJ's, which is the
largest bank in the country by assets and represents 53% of the
group's consolidated assets. NCBFG's income is mainly derived from
dividend income from its subsidiaries, followed by management fees
and interest income (70%, 24% and 11%, in the same order).
Significant Double Leverage: NCBFG's significant double leverage,
consistently averaging above 120%, 121% as of FYE 2024, suggests a
potentially burdensome level of bank holding company debt service.
This factor is a primary reason for the one-notch differentiation
from NCBJ. This persistently elevated double leverage results from
NCBFG's growth strategy, which involves acquiring subsidiaries
through leveraged means. Through this approach, NCBFG seeks to
expand its operational footprint and strengthen its market
presence. However, Fitch considers the downward trend in double
leverage that has been observed in recent years, indicating a
positive move towards reducing financial burdens.
Convenient Contingency Plans in Place: NCBFG's liquidity is
robustly supported by a range of mitigants beyond just dividend and
fee income from NCBJ and its other major subsidiaries. While its
subsidiaries' operations contribute significantly, NCBFG benefits
from several additional strengths that enhance its liquidity
profile. The bank maintains adequate liquidity and has the
capability to secure inter-company financing. Furthermore, NCBFG
has access to local capital markets and continues to employ other
debt reduction. It also enjoys bilateral short-term funding from
international banks, secured funding within the region using
unencumbered collateral, and the flexibility to sell unencumbered
assets.
Importantly, NCBFG distinguishes itself by having structured
liquidity contingency plans, which are not common among holding
companies in Latin America. Fitch views the presence of these
structured plans as a positive aspect of NCBFG's liquidity
management strategy. Although NCBFG does not have committed lines
of credit, it has cultivated strong relationships with banks and
regional investors, further bolstering its liquidity management
capabilities.
High Capital and Liquidity Fungibility: The ratings consider there
are no regulatory restrictions on subsidiaries paying dividends or
upstreaming liquidity to the holding company.
Wholly Owned Subsidiary of NCBFG with no Credit Enhancement: The
holding company has full ownership and control of NCBJ. However, it
does not hold any guarantees or cross default clauses.
SUBSIDIARIES AND AFFILIATES: RATING SENSITIVITIES
NCBFG
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- NCBFG's rating is sensitive to a change in NCBJ's ratings;
- In addition, the holding company's ratings would be negatively
impacted by changes in the group structure that would reduce the
materiality of NCBJ's role in the group or increase the complexity
of the group's structure;
- The relativity between NCBFG and NCBJ's ratings could be
negatively affected by a sustained increase in a double leverage
above 150%. Also, a deterioration in its standalone liquidity
profile could negatively impact NCBFG's ratings.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- A double leverage consistently below 120% could positively
influence NCBFG's rating by potentially narrowing the relativity
between NCBFG and NCBJ's ratings.
- An upgrade in NCBJ's rating could lead to a positive action in
NCBFG's ratings.
VR ADJUSTMENTS
NCBJ
- NCBJ's VR of 'bb-' has been assigned above the 'b+' implied VR
due to the following adjustment reason: Business Profile
(Positive).
- The Business Profile score has been assigned above the implied
score due to the following adjustment reason: Market Position
(Positive) and Business Model (Positive).
- The Funding & Liquidity score has been assigned above the implied
score due to the following adjustment reason: Deposit Structure
(Positive).
Public Ratings with Credit Linkage to other ratings
NCBFG ratings are based on the creditworthiness of NCBJ.
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.
Entity/Debt Rating Prior
----------- ------ -----
NCB Financial
Group Limited LT IDR B+ Affirmed B+
ST IDR B Affirmed B
LC LT IDR B+ Affirmed B+
LC ST IDR B Affirmed B
National
Commercial Bank
Jamaica Limited LT IDR BB- Affirmed BB-
ST IDR B Affirmed B
LC LT IDR BB- Affirmed BB-
LC ST IDR B Affirmed B
Viability bb- Affirmed bb-
Government Support bb- Affirmed bb-
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P E R U
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PERU Finance Chief is Betting on Tax Cuts to Boost Growth to 4%
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globalinsolvency.com, citing Bloomberg News, reports that Peru's
new finance minister is pushing an array of tax incentives early in
his tenure in a bid to boost economic growth to its fastest pace in
seven years, excluding the pandemic rebound.
Jose Salardi, who took over the finance ministry five weeks ago, is
eyeing four key sectors for tax incentives: agriculture, forestry,
fishing and the creation of a special economic zone near the
recently inaugurated $1.3 billion Chancay port that is set to
significantly boost commerce with China, according to
globalinsolvency.com.
=====================
P U E R T O R I C O
=====================
CARIBE ENTERTAINMENTS: Unsecureds Will Get 15% over 60 Months
-------------------------------------------------------------
Caribe Entertainments Group, Inc., filed with the U.S. Bankruptcy
Court for the District of Puerto Rico a Disclosure Statement for
Plan of Reorganization.
The Debtor is a corporation. The Debtor operates two restaurants in
Condado Tourist Area in San Juan Puerto Rico.
The Debtor does not own any Real Properties, but owns Business
Equipment, furniture and inventory used in the operate two
restaurants in Condado Tourist Area which has a value of
approximately $32.312.97.
The Debtor filed a chapter 11 because debtor had difficult times
during the pandemic closing and incurred in arrears with the
Treasury Department and the municipality of San Juan.
The Debtors generates income from operation operate two restaurants
in Condado Tourist Area. This business operation generates income
to cover the proposed disbursements and to cover their tax
liabilities.
The Debtor's Projections evidence the Debtor's ability to meet
administrative expenses upon confirmation. Debtor estimates that at
the time of an Order of Confirmation, Debtor will have in excess of
$5,000.00 in his Debtor in Possession Account. These projections
are based on the Debtors pre-petition and post petition income as
well as the Debtor's current cash-balance in their DIP Account.
The Debtor's projected cash-flows also demonstrate a sustained
ability to continue to regular operation of the business and to
cover their personal expenses and co comply with the plan payments.
The Plan proposes payments and distributions on all Allowed
Claims.
Class 2 consists of Allowed General Unsecured Claims. The Class 2
Claims will be Satisfied via monthly payments starting the
Effective Date of the Plan. Total Class 2 Claims is estimated at
$248,521.19 The Distribution of class 2 claims is estimated at
15.00% ($36,228.18). The distribution on this class will be monthly
starting on the effective date of the plan until the month 60. This
Class is impaired.
The Class 3 Claims consist of all equity security holders owned by
the corporation, if any: The Class 3 Claims will receive no
distribution under the plan. This Class is impaired will not vote
on the plan.
The Plan establishes that the Plan will be funded from the
Reorganized Debtor's cash flow generated by the Debtor. It
generally consists of the by the operating of the business. The
Debtor will contribute her cash flow to fund the Plan commencing
on
the Effective Date of the Plan and continue to contribute through
the date that Holders of Allowed Class 1, 2 and 3, Claims receive
the payments specified for in the Plan.
A full-text copy of the Disclosure Statement dated February 19,
2025 is available at https://urlcurt.com/u?l=z0u8l0 from
PacerMonitor.com at no charge.
Counsel to the Debtor:
Jose M. Prieto Carballo, Esq.
JPC Law Office
P.O. Box 363565
San Juan, PR 00936
Telephone: (787) 607-2066
Email: jpc@jpclawpr.com
About Caribe Entertainments Group
Caribe Entertainments Group, Inc., filed its voluntary petition for
relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case
No. 24-03026) on July 22, 2024. In the petition signed by Tito
Enriquez Bustamante, president, the Debtor disclosed under $1
million in both assets and liabilities.
The Debtor tapped Jose M. Prieto Carballo, Esq., as bankruptcy
counsel and Rodriguez Espola (RELLC), LLC as its accountant.
TETRAD ENTERPRISES: Seeks Chapter 11 Bankruptcy in Puerto Rico
--------------------------------------------------------------
On February 28, 2025, TETRAD Enterprises LLC filed Chapter 11
protection in the U.S. Bankruptcy Court for the District of Puerto
Rico. According to court filing, the Debtor reports between $10
billion and $50 billion in debt owed to 1 and 49 creditors. The
petition states funds will be available to unsecured creditors.
About TETRAD Enterprises LLC
TETRAD Enterprises LLC is a conglomerate project development firm
specializing in large-scale utility projects. The company offers
Hydraflo pumps, which are hydraulically-driven, large-volume
submersible water pumps designed for rapid setup and heavy-duty
performance across various applications, including emergency
pumping, flood control, stormwater drainage, dewatering, and
agricultural irrigation.
TETRAD Enterprises LLC sought relief under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D.P.R. Case No. 25-00895) on February 28,
2025. In its petition, the Debtor reports estimated assets and
liabilities between $10 billion and $50 billion each.
The Debtor is represented by:
Wallace Vazquez Sanabria, Esq.
WVS LAW LLC
17 Mexico Street, Suite D-1
San Juan PR 00917-2202
Tel: 787-756-5730
Email: wvslawllc@gmail.com
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T R I N I D A D A N D T O B A G O
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NIQUAN ENERGY: Assets Being Sold Off
------------------------------------
Joel Julien at Trinidad Express reports that an unused piece of
equipment intended for NiQuan Energy Trinidad Ltd's operations is
among several assets now up for sale by the receiver, just after
the seventh anniversary of the gas-to-liquid plant's grand
opening.
The unused FT Max Catalyst-T 2811, weighing 231,000 pounds and used
in gas-to-liquids (GTL) processes, is being sold by receiver
manager Varune Mungal, according to Trinidad Express.
Also, up for sale is a hydrocracker catalyst weighing 14,062
pounds, the report notes.
"The Receiver Manager of NiQuan Energy Trinidad Ltd (in
receivership) is offering the following assets of the company for
sale as a complete package or on an individual basis," a notice
about the assets for sale stated, the report discloses.
Assets For Sale:
-- One Air Compressor – New Kaishan KRSP2
-- Eight ISO Tanks 20 feet
-- One Three-tonne CAT Diesel forklift
-- One 2.5-tonne CAT Electrical forklift
-- Four 40ft Officer Containers
-- Three 40ft Storage Containers
-- One Plotter (HP Design Jet T3500 Production MFP)
-- Office Equipment and Furniture
-- Amine (KS-2040) (18 Tote)
-- FT Max Catalyst (Unused) T2811 (231,000 lbs)
-- Hydrocracker Catalyst (Spent) TK 928, TK 711, TK 551 (14,062
lbs)
On October 10, Mungal was appointed as the receiver for NiQuan
Energy Trinidad Ltd amid ongoing winding-up proceedings, the report
discloses.
Mungal is the managing director of Business Recovery and Advisory
Services Limited (BRASL), the report discloses.
Mungal was appointed as the receiver under a series of mortgage
debentures dating back to 2018, according to a newspaper
advertisement, the report says.
The report relays that his appointment was pursuant to the
following:
-- A mortgage debenture dated July 6, 2018;
-- An amended mortgage debenture dated July 30, 2019;
-- An amended and restated mortgage debenture February 6, 2020;
and
-- An amended and restated mortgage debenture dated July 18, 2023.
NiQuan's former vice-president, David Small, was awarded $18.8
million for breach of a written mutual separation agreement dated
November 2, 2021, along with exemplary damages, on September 29
last year, the report discloses.
However, after complaining about not being paid, Small, a former
independent senator, filed a petition in the High Court on February
1, seeking the winding-up of NiQuan in an effort to recover the
money owed to him by the company, the report says.
And on March 15, M Hamel-Smith & Co, the attorney representing
Republic Bank Ltd, wrote the Registrar of the Supreme Court, the
report relays.
"Our client is, among other things, the Collateral Agent under a
Short-Term Note Instrument issued by NiQuan to approximately 20
noteholders from various countries. As Collateral Agent, our
client is contractually obliged to represent the interest of the
Noteholders with respect to the STNI and accompanying registered
security granted in relation to the STNI in favour of the
Noteholders which includes all tangible and intangible assets of
NiQuan secured under a charge of shares (as amended from time to
time) and a mortgage debenture (as amended from time to time). As
at the date of this letter, the STNI covers debt owed by NiQuan to
the Noteholders in the amount of US$175,000,000," the letter from M
Hamel-Smith & Co stated, the report relays.
Since the matter was brought before the High Court, the Junior
Sammy Group, JMMB and at least five other companies also stepped
forward, claiming they too are owed money by the company, the
report notes.
At the end of April, approximately 80 employees at NiQuan Energy
Trinidad Ltd were sent home after the company's founder, Ainsley
Gill, informed staff that expected funding had not materialised as
planned, forcing the mothballing of the gas-to-liquids plant, the
report says.
"During these last few months, the Company has been preserving the
Plant in a wet layup in anticipation of an amicable solution and
the return of gas. However, following the disproportionate
curtailment of gas supply suffered by the Company, followed by the
wrongful termination of the Gas Supply Contract (GSC), it is with
disappointment and frustration that the Company has no other
alternative but to now place the plant into a dry layup and,
mothballed status," Gill stated in a letter to employees, the
report discloses.
Gill said as a direct consequence of those difficulties, it was
with "deep regret" that NiQuan's senior secured mortgage holders
have been unable to fund the company as was "reasonably expected,"
the report notes.
"And as a further direct consequence, the company is now unable to
continue to preserve the GTL Plant," Gill added.
"Further, it is likely that a winding up order will be made by the
High Court pursuant to a winding up petition brought against the
company by two unsecured creditors. The next hearing before the
Court is scheduled for May 3, 2024," he added.
Gill said that as a result of this pending appointment of a
liquidator by the court, NiQuan was unable to extend the current
extended furlough that staff members were placed on, the report
relays.
"Therefore at 5 p.m. on April 30, 2024, your Contract of Employment
will be terminated, and the Company will issue individual formal
termination letters," the letter stated, the report says.
"This is a very unfortunate outcome; one the Company did not wish
to occur," he added.
NiQuan's troubled gas-to-liquids plant was placed in "Asset
Preserving Silent Mode" last September due to a lack of natural
gas, and financial constraints, the report discloses.
In August last year, NiQuan lost its bid for an injunction against
the Government to compel the State to resume its natural gas
supply, the report relays.
Delivering a decision last August, High Court Judge Kevin Ramcharan
dismissed NiQuan's application for an injunction against the
Trinidad and Tobago Upstream Downstream Energy Opera¬tions Company
Ltd (TTUDEOCL) and the Office of the Attorney General, the report
says.
NiQuan owed TTUDEOCL US$21 million for natural gas contractually
given to it, the report relays.
Gill established NiQuan Energy LLC, in 2008, the report recalls.
"Under his (Gill's) leadership, NiQuan Energy achieved a historic
milestone by developing the world's first commercially viable
small-scale Gas-to-Liquids (GTL) facility, also the first GTL plant
in the Western Hemisphere. Ainsley sees GTL technology as a
practical solution for reducing greenhouse gas (GHG) emissions in
hard-to-abate industries, positioning NiQuan as a leader in the
clean energy transition. His vision includes expanding NiQuan's
presence worldwide, with multiple GTL facilities providing
sustainable energy solutions for the future," NiQuan's website
states, the report says.
The gas-to-liqudis plant was opened in T&T in March 2021 with Prime
MInister Dr Keith Rowley delivering the feature address, the report
discloses.
"In 2018 when NiQuan acquired the plant, Petrotrin received a cash
payment of US$10 million, with the remaining US$25 million to be
paid in Preference Shares. To complete the plant, a further capital
injection of approximately US$125 million was required," Rowley
said, the report notes.
"Additionally, the Government is expected to receive TT$2 billion
in taxes and statutory payments over the life of the project.
NiQuan's investment represents the first major private investment
in the downstream energy sector in recent times, despite
difficulties in the global markets," he stated, the report notes.
As reported in the Troubled Company Reporter-Latin America on
May 21, 2024, RJR News reports that regional rating agency
Caribbean Information and Credit Rating Services (CariCRIS) has
lowered Niquan Energy Trinidad Limited's credit rating to default.
VENEZUELA: Economist Says Real Negotiations Will Now Take Place
---------------------------------------------------------------
Raphael John-Lall at The Trinidad and Tobago Guardian reports that
despite the threat by the Trump administration to end all oil and
natural gas agreements approved by the previous US government for
Venezuela, a top economist in that country remains optimistic that
all is not lost for Venezuela, the country with the world's largest
reserves of oil.
Venezuelan economist Luis Vicente Leon did an analysis, which he
posted on his X social network, following US Secretary of State,
Marco Rubio posting on X that he was "providing foreign policy
guidance to terminate all Biden-era oil and gas licences that have
shamefully bankrolled the illegtimate Maduro regime," according to
The Trinidad and Tobago Guardian.
The T&T Government has been planning to request an extension from
the US Government for the licence granted to Shell and the
state-owned National Gas Company (NGC) to develop the Dragon gas
field in Venezuela, according to a Reuters report, the report
relays. The OFAC licence expires in October 2025, the report
discloses.
The licence, initially issued in early 2023, allows the companies
to proceed with planning the project, which aims to supply gas to
Trinidad by 2027, the report says.
Despite the latest anouncement, Leon argued that the "game is not
over" for Venezuela and justified why "the game has just begun," ,
the report notes.
"Amid the heated debate over the budget in the United States,
President Donald Trump has decided to suspend Chevron's licence as
of March 1, which undoubtedly pleases hardline American
representatives and guarantees support for his budget proposal. But
this move does not mean that the game is over. On the contrary,
the game has only just begun. The decision leaves six months for
the period of dismantling the company's regular operations (wind
down), during which it will continue to produce and export legally,
while it plans its cessation of operations or negotiates its
permanence based on other different conditions," , the report
relays.
Leon also said there is no indication that this decision will
affect, for now, the operations of the other international energy
companies with active licences, which do not expire this year, and
there is no talk yet of re-imposing secondary sanctions, , the
report discloses.
"During these six months, the negotiation period between the
governments of the United States and Venezuela opens to define the
way in which the oil relationship will be managed. In the wake of
the general licence, which had been cancelled previously, the
American Government approved a list of individual licences
(currently in force) that replaced the general cancellation and
created a new framework for the relationship, which is certainly
positive for the United States, given that each license granted to
the private sector represents an increase in its influence and
control over the local energy sector. It is now, in these six
months, where the real negotiations between Trump and Venezuela's
President will take place," he added.
He said it is obvious that Trump is a pragmatic and negotiating
president and what Venezuelans are going to see in this period are
his concrete requests, the report relays.
"The critical questions at this point are: How will the Venezuelan
Government react to this new U.S. pressure strategy? Will it seek
solutions that open the door to negotiations or will it launch its
Plan B, which would mean the immediate de-Westernisation of the
Venezuelan oil industry, handing over the fields susceptible to
Trump's decisions to China, Russia, Iran and others, with which it
already has oil trade relations based on payment mechanisms free of
blockades, which it has learned to use in these last years of
sanctions?"
He also raised the issue of whether Trump will focus his demands on
Venezuelan President Nicolas Maduro on transactional elements that
are truly negotiable today, such as the migration issue, political
prisoners, the reduction of Chinese participation in Venezuela, and
some elements of democratisation that do not represent a
significant risk of losing power for Maduro, the report notes.
Leon argued that if Maduro goes in that direction, the probability
of success is high and rapid, or, on the contrary, will Trump
direct his demands toward an immediate change of government,
something that experience indicates will block any willingness to
negotiate on the part of Maduro and the military sector, the report
relays. Venezuela's militar are likely to be a thousand times more
willing to initiate their Plan B of total closure of opposition
political participation and economic de-Westernization than to lose
power with infinite exit costs for them and the entire revolution?
"It is obvious that the best scenario (possible and achievable, not
theoretical and passionate) for Venezuela and the United States is
to reach a new agreement that allows the country to continue
participating in the Western energy markets. The greater the
private participation, with full transparency of operations,
anti-corruption controls and availability of international
resources for investment, the better the conditions will be to
continue the effective struggle in the political field. On the
contrary, crossing the border into radicalisation will only lead us
to the worst scenario of economic and political ‘Iranianisation'
of the country, the report discloses.
"I have no idea where this will end, but I hope that passions and
pressures do not lead us, once again, to the deterioration of the
lives of the people and the country, with no real possibility of
producing a political change, which never occurs in the economy,
but always in society."
Could Go Either Way
Local economist Dr Anthony Gonzales told Guardian Media that the
situation is not as bad as it seems, the report notes.
"Nothing was also said about the European companies that are
allowed to operate in Venezuela, so clearer and more decisive
action by OFAC (the US Office of Foreign Assets Control) is needed
to give more insight as to where the US is heading on this. We also
have to watch where the situation is going with the Venezuelan
migrants. In these conditions, an OFAC renewal for Dragon gas still
remains a fifty-fifty chance," the report says.
Alternative Markets
Senior Venezuelan journalist, Miguel Angel Perez, who is the
founder of Venezuelan media outlet Iguana TV, also did an analysis
on his show "From Wherever," the report relays.
He argued that President Trump is giving away the Venezuelan energy
market, with the largest reserves on the planet, to China and its
Silk Road project, and to the rest of the BRICS, an alliance to
which Venezuela will sooner or later belong, the report says.
"The emerging superpowers will keep the oil that the US needs.
Trump, in terms of energy, is shooting himself in the foot. He will
have to turn it around, without losing face, in the silence of the
negotiations. He will have to continue buying Venezuelan oil," he
predicted.
About Venezuela
Venezuela, officially the Bolivarian Republic of Venezuela, is a
country on the northern coast of South America, consisting of a
continental landmass and a large number of small islands and islets
in the Caribbean sea. The capital is the city of Caracas.
Hugo Chavez was president to Venezuela from 1999 to 2013. The
Chavez presidency was plagued with challenges, which included a
2002 coup d'etat, a 2002 national strike and a 2004 recall
referendum. Nicolas Maduro was elected president in 2013 after
the
death of Chavez. Maduro won a second term at the May 2018
Venezuela elections, but this result has been challenged by
countries including Argentina, Chile, Colombia, Brazil, Canada,
Germany, France and the United States who deemed it fraudulent and
moved to recognize Juan Guaido as president.
The presidencies of Chavez and Maduro have challenged Venezuela
with a socioeconomic and political crisis. It is marked by
hyperinflation, climbing hunger, poverty, disease, crime and death
rates, social unrest, corruption and emigration from the country.
Moody's has withdrawn 'C' local currency and foreign currency
ceilings for Venezuela in September 2022. Standard & Poors has
also withdrawn its 'SD/D' foreign currency sovereign credit
ratings and 'CCC-/C' local currency ratings on Venezuela in
September 2021 due to lack of sufficient information. Fitch
withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in
June
2019 due to the imposition of U.S. sanctions on the country's
government.
*********
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