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250620.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, June 20, 2025, Vol. 26, No. 123 Headlines B A H A M A S SILVER AIRWAYS: Shuts Operations, Argentum Buys Assets SILVER AIRWAYS: Stops Flights Six Months After Chapter 11 Filing B E R M U D A NABORS INDUSTRIES: All Proposals Passed at Annual General Meeting B R A Z I L AZUL SA: Cleary Gottlieb Represents Bondholders in Chapter 11 AZUL SA: U.S. Trustee Appoints Creditors' Committee M E X I C O ASCEND PERFORMANCE: Kane Russell Represents Creditors P U E R T O R I C O OPTIMUS SERVICE: Seeks to Hires Juan C. Bigas Valedon as Counsel T R I N I D A D A N D T O B A G O CARIBBEAN AIRLINES: Return Flight Into Controversy NIQUAN ENERGY: Mounting Legal, Financial Pressure X X X X X X X X LATAM: IDB Creates Fund to Strengthen Caribbean Integration - - - - - ============= B A H A M A S ============= SILVER AIRWAYS: Shuts Operations, Argentum Buys Assets ------------------------------------------------------ Silver Airways, LLC, abruptly shut flight operations and is completing a sale of its assets to Argentum Acquisition Co., LLC. Argentum emerged as the winning bidder for the assets with an offer of $5,755,000 in cash plus additional amounts and the assumption of certain liabilities. The Debtor scheduled an auction but no other party submitted a qualified bid. "We regret to inform you that we are ceasing operations as of today, June 11, 2025. In an attempt to restructure in bankruptcy, Silver entered into a transaction to sell its assets to another airline holding company, who unfortunately has determined to not continue Silver's flight operations in Florida, the Bahamas and the Caribbean," Silver informed customers via an Instagram post. "Please do not go to the airport. All credit card purchases should be refunded through your credit card company or your travel agency." A sale hearing before Judge Peter Russin was conducted on June 4, 10 and 11, and another is scheduled for June 24, as the final iterations of the proposed sale order and asset purchase agreement have yet to be signed due to unresolved issues with the unions and the purchaser. Argentum says it has not agreed to pay certain of the administrative expenses sought by the Debtor and it is not requesting that the Debtor stay in place in Chapter 11. The buyer says wants to remove the provision that provides that "Purchaser shall pay all administrative expenses incurred by Seller, including United States Trustee fees, professional fees, and ordinary course expenses incurred by the estate for the period commencing June 11, 2025 and ending on the date the Purchaser informs Seller it no longer requires Seller to remain a chapter 11 debtor." Meanwhile, the Association Of Flight Attendants-CWA and International Brotherhood of Teamsters, Local Union No. 1224 (IBT Local 1224) and the International Brotherhood of Teamsters-Airline Division (IBT-AD), which represents Silver Airways' flight attendants of the pilots, says the Debtor has failed to comply with key procedural and substantive obligations under the applicable collective bargaining agreements. IBT says the pilots and flight attendants are represented by unions, are on seniority lists, and have pre-existing CBAs that the purchaser is legally required to recognize and honor. IBT says the sale documents fail to acknowledge that the CBAs are binding upon Argentum as a "successor employer", and the unions cannot at this time meaningfully evaluate whether the "CBAs are being assumed, rejected, or improperly ignored." The purchaser counters that it is not responsible for the payment of the Debtor's obligations as demanded by the unions, nor will it acknowledge and agree that it is a successor employer under the CBA. Argentum has outlined modifications to the proposed sale order to provide that: "The Purchaser will acquire the assets of the Seller to operate the business of Seller and to the extent practicable Purchaser will continue as an airline, but Purchaser is not a successor of the Seller nor its estate, there is no continuity or continuity of enterprise between the Purchaser and the Seller, and there is no common identity between the Seller and the Purchaser." All assets of Seaborne, and the equity interests in Seaborne owned by Silver, are excluded from the Silver sale transaction. The deal with Argentum does not include the leases for aircraft, and equipment leased from Jetstream Aviation Capital, LLC and Azorra Eagle entities. The asset purchase agreement identifies Wexford Capital Senior Vice President Wayne Heller as Argentum's CEO. According to his LinkedIn profile, Mr. Heller is also president and CEO of Alaska-based Aleutian Airways, and Jacksonville, Florida-based Sterling Airways. He was executive vice president and COO of Republic Airways Holdings from 1999 to 2015. Counsel to buyer Argentum: Michael A. Shiner, Esq. Tucker Arensberg, P.C. One PPG Place, Suite 1500 Pittsburgh, PA 15222 About Silver Airways Silver Airways, LLC is a regional U.S. airline operating flights between gateways in Florida, the Southeast and The Bahamas. The Silver Airways fleet is comprised of modern, state of the art aircraft with reliable, fuel-efficient turbo-prop engines. In the summer of 2018, Silver completed the acquisition of Seaborne Airlines, a San Juan, Puerto Rico-based air carrier serving destinations throughout Puerto Rico, the U.S. Virgin Islands, and other countries in the Caribbean. Seaborne provides connections throughout the Caribbean via the carrier's hub in San Juan, while also serving as the most critical link between St. Croix and St. Thomas with the carrier's seaplane operation. Silver Airways and Seaborne Virgin Islands, Inc. filed Chapter 11 petitions (Bankr. S.D. Fla. Lead Case No. 24-23623) on Dec. 30, 2024. At the time of the filing, Silver Airways reported $100 million to $500 million in assets and liabilities while Seaborne reported $1 million to $10 million in assets and liabilities. Judge Peter D. Russin oversees the cases. Brian P. Hall, Esq., is the Debtors' legal counsel. Brigade Agency Services, LLC, as lender, is represented by Frank P. Terzo, Esq., at Nelson Mullins Riley & Scarborough, LLP. Argent Funding LLC and Volant SVI Funding LLC, as lenders, are represented by Regina Stango Kelbon, Esq. at Blank Rome, LLP. Lawyers at Tucker Arensberg, P.C. represent Argentum Acquisition Co., LLC, emerged as the winning bidder for the airline's assets with an offer of $5,755,000 in cash plus additional amounts and the assumption of certain liabilities. SILVER AIRWAYS: Stops Flights Six Months After Chapter 11 Filing ---------------------------------------------------------------- Mary Schlangenstein of Bloomberg News reports that Silver Airways, a regional airline serving the Southeastern U.S. and the Caribbean, has informed customers it will suspend all operations starting June 11, 2025, nearly six months after filing for bankruptcy protection. "Please do not go to the airport," the Florida-based carrier stated in a message on its website. "All credit card transactions should be refundable through your card issuer or travel agency." About Silver Airways Silver Airways, LLC is a regional U.S. airline operating flights between gateways in Florida, the Southeast and The Bahamas. The Silver Airways fleet is comprised of modern, state of the art aircraft with reliable, fuel-efficient turbo-prop engines. In the summer of 2018, Silver completed the acquisition of Seaborne Airlines, a San Juan, Puerto Rico-based air carrier serving destinations throughout Puerto Rico, the U.S. Virgin Islands, and other countries in the Caribbean. Seaborne provides connections throughout the Caribbean via the carrier's hub in San Juan, while also serving as the most critical link between St. Croix and St. Thomas with the carrier's seaplane operation. Silver Airways and Seaborne Virgin Islands, Inc. filed Chapter 11 petitions (Bankr. S.D. Fla. Lead Case No. 24-23623) on December 30, 2024. At the time of the filing, Silver Airways reported $100 million to $500 million in assets and liabilities while Seaborne reported $1 million to $10 million in assets and liabilities. Judge Peter D. Russin oversees the cases. Brian P. Hall, Esq., is the Debtors' legal counsel. Brigade Agency Services, LLC, as lender, is represented by Frank P. Terzo, Esq., at Nelson Mullins Riley & Scarborough, LLP. Argent Funding LLC and Volant SVI Funding LLC, as lenders, are represented by Regina Stango Kelbon, Esq. at Blank Rome, LLP. ============= B E R M U D A ============= NABORS INDUSTRIES: All Proposals Passed at Annual General Meeting ----------------------------------------------------------------- The Annual General Meeting of Shareholders of Nabors Industries Ltd. was held on June 3, 2025. Holders of 12,949,101 shares, representing 82.49% of its outstanding shares of common stock entitled to vote as of the record date for the Annual Meeting, participated in person or by proxy. As explained in the Company's proxy statement relating to the Annual Meeting: *  In accordance with the Company's Bye-Laws, directors are elected by a plurality of the votes cast. However, the Company has adopted a policy requiring that, in the event a nominee does not receive the affirmative vote of a majority of the shares voted in connection with his or her election, he or she must promptly tender his or her contingent resignation from the Board of Directors, which the Board will accept unless it determines that it would not be in the Company's best interests to do so. *  Approval of the other matters considered at the Annual Meeting required the affirmative vote of the holders of a majority of shares present in person or represented by proxy and entitled to vote at the meeting, with abstentions having the effect of votes against a proposal and broker nonvotes being disregarded in the calculation. The matters voted upon at the Annual Meeting were: A. Election of Directors 1. Tanya S. Beder * Shares For: 7,753,049 * Shares Withheld: 3,620,613 * Nonvotes: 1,575,439 2. Anthony R. Chase * Shares For: 7,873,785 * Shares Withheld: 3,499,877 * Nonvotes: 1,575,439 3. James R. Crane * Shares For: 10,927,289 * Shares Withheld: 446,373 * Nonvotes: 1,575,439 4. John P. Kotts * Shares For: 7,952,399 * Shares Withheld: 3,421,263 * Nonvotes: 1,575,439 5. Michael C. Linn * Shares For: 10,541,228 * Shares Withheld: 832,434 * Nonvotes: 1,575,439 6. Anthony G. Petrello * Shares For: 10,804,617 * Shares Withheld: 569,045 * Nonvotes: 1,575,439 7. John Yearwood * Shares For: 10,849,879 * Shares Withheld: 523,783 * Nonvotes: 1,575,439 All directors were elected by a majority of shares voted. B. Approval and Appointment of PricewaterhouseCoopers LLP as the Company's Independent Auditor and Authorization for the Audit Committee To Set the Independent Auditor's Remuneration * For: 12,850,134 * Against: 43,734 * Abstain: 55,233 RESULT: Approved (99.24% For) C. Advisory Vote on Compensation of Named Executive Officers * For: 7,000,992 * Against: 4,320,444 * Abstain: 52,226 * Nonvotes: 1,575,439 RESULT: Approved (61.55% For) D. Approval of Amendment No. 4 to the Company's Amended and Restated 2016 Stock Plan * For: 10,480,963 * Against: 886,440 * Abstain: 6,259 * Nonvotes: 1,575,439 RESULT: Approved (92.15% For) About Nabors Bermuda-based Nabors Industries Ltd. (NYSE: NBR) owns and operates land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. * * * In July 2024, S&P Global Ratings assigned its 'CCC' issue-level rating and '6' recovery rating to Nabors Industries Ltd.'s proposed $550 million senior guaranteed notes due 2031. The company's subsidiary, Nabors Industries Inc., will issue the notes. The '6' recovery rating indicates S&P's expectation of negligible (0%-10%; rounded estimate: 0%) recovery of principal by creditors in the event of a payment default. =========== B R A Z I L =========== AZUL SA: Cleary Gottlieb Represents Bondholders in Chapter 11 ------------------------------------------------------------- Cleary Gottlieb is representing an ad hoc cross-holder group of secured bondholders of Azul S.A., the largest airline in Brazil by number of cities served, in the restructuring of Azul'ss debt under Chapter 11 protection in the United States. The group represents more than 65% of Azul's total secured debt. The ad hoc group, ultimately comprised of more than 20 leading financial institutions and some of the largest U.S.-based hedge funds, is a cross-holder group consisting of holders of Azul's first-lien notes, second-lien notes, secured bridge notes, super senior notes and secured convertible debentures. This restructuring follows Cleary's work representing Azul creditors in two previous out-of-court restructurings in which creditors reshaped the Company's balance sheet and provided over $750 million of new funding to the Company. Despite those efforts, the Company found itself unable to meet its ongoing liquidity challenges in April 2025 and in less than a month, Cleary, along with other bondholder advisors, helped structure, negotiate, and implement a comprehensive in-court restructuring. The in-court Chapter 11 prearranged capital solution and restructuring included arrangements for: * Supporting a plan of reorganization that contemplates the equitization of all of the first-lien and second-lien debt of the company; * Providing approximately US$1.6 billion in debtor-in-possession (DIP) financing, which will repay Azul's most senior debt and provide Azul with approximately US$670 million of new capital to bolster liquidity during the restructuring process; * Backstopping an equity rights offering of US$650 million, which will be open to all equitizing first-lien and second-lien creditors at a 30% discount to plan value; * Negotiating a potential DIP-to-Exit financing of between approximately $650 million to $1,000,000 to ensure Azul's ability to exit Chapter 11 successfully; * Implementing comprehensive governance reforms and new management incentive plans; and * Facilitating a potential equity investment of up to US$300 million from United Airlines and American Airlines in Azul. Upon emergence from Chapter 11, it is anticipated that Azul's creditors will own a substantial majority of the equity of the reorganized Azul, reflecting their critical role in facilitating the restructuring and recapitalization of the company. Cleary's work with Azul on these groundbreaking transactions are the most recent examples of the firm's deep experience in helping stakeholders navigate the ups and downs of the aviation sector. Since the onset of the COVID-19 pandemic, Cleary has played a leading role in the restructurings (or other transformative transactions) of LATAM Airlines, Aeromexico, GOL, Garuda, SAS AB, Nordic Aviation, Asiana Air, Jet Blue, and the U.S. Treasury in connection with its Payroll Support Program and Rescue Plan, providing over $30 billion across 13 different financings for U.S. airlines. The Cleary restructuring and corporate teams included partners Rich Cooper, Francisco Cestero, Tom Kessler, and Carina Wallance, and associates James Armshaw, Tom Lynch, Richard Minott, Jennifer Pollan, Josefina Griot, and Lucas Davidenco. The Cleary finance team included partner Duane McLaughlin, counsel Victor Chiu, associates Silvia Fittipaldi, Nicholas Pokas, Adrienne Lewis, Zhiyuan (Andy) Xie, and David Rubinstein, law clerk Cosmo Albrecht, and international lawyer Victor Barone. Partner Matthew Brigham and associate Nathaniel Pribil advised on tax matters. Partner Julia Petty advised on executive compensation and benefits matters. About Azul SA Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 900 daily flights to over 150 destinations. With an operating fleet of over 200 aircrafts and more than 15,000 Crewmembers, the Company has a network of 300 non-stop routes. Azul was named by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2023. In 2020 Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian flag carrier earned the number one ranking in the Traveler's Choice Awards. On the Web: http://www.voeazul.com.br/imprensa On May 28, 2025, Azul S.A. and 19 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-11176). The cases are pending before the honorable Judge Sean H. Lane. The Company is supported by Davis Polk & Wardwell LLP, White & Case LLP, and Pinheiro Neto Advogados as legal counsel; FTI Consulting as financial advisor; Guggenheim Securities, LLC as investment banker; SkyWorks Capital LLC as fleet advisor; and FTI Consulting, C Street Advisory Group, and MassMedia as strategic communications advisors. Stretto is the claims agent. The Participating Lenders are supported by Cleary Gottlieb Steen & Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as investment banker. United Airlines is supported by Hughes Hubbard & Reed LLP and Sidley Austin LLP as legal counsel and Barclays Investment Bank as investment banker. American Airlines is supported by Latham & Watkins LLP as legal counsel. AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal counsel. AZUL SA: U.S. Trustee Appoints Creditors' Committee --------------------------------------------------- The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Azul S.A. and its affiliates. The committee members are: 1. Airbus S.A.S. 2 rond-point Dewoitine 31700 Blagnac, France Attention: Paul Meijers, EVP Commercial Transactions Tel: +336 03 61 87 97 paul.meijers@airbus.com 2. DAE Holding (Ireland) Limited Central Quay Block B Riverside IV Sir John Rogerson's Quay D02 RR77, Dublin 2 Ireland Tel: +353 1 635 5000 legal@dubaiaerospace.com 3. Sindicato Nacional dos Aeronautas (SNA) Brazil, Sao Paulo SP Renascenca Street 801/112 Congonhas 04612-010 Attention: Captain Tiago Rosa, President Tel: (55) 11 5090-5100 Tiago.rosa@aeronautas.org.br 4. Sky High XXIII Leasing Company Limited and Sky High L Leasing Company Limited c/o ICBC International Leasing Company Limited 2 Grand Canal Square, Grand Canal Harbor Dublin 2, Ireland Attention: Peng Hou Tel: +353 87 3577230 alexhou@ie.icbcleasing.com 5. U.S. Bank Trust Company, N.A. 1025 Connecticut Avenue NW, Suite 510 Washington, DC 20036 Attention: Dave Diaz, Vice President dav.diaz@usbank.com 6. Viasat, Inc. 2501 Gateway Road Carlsbad, California 92008 Attention: Jeff Eddington, Associate General Counsel Tel: (760) 893-5165 Jeff.eddington@viasat.com 7. Willis Lease Finance Corporation 4700 Lyons Technology Parkway Coconut Creek, Florida 33073 Attention: Z. Cliffton Dameron IV, SVP & General Counsel Tel: (561) 349-8963 cdameron@willislease.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Azul SA Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 900 daily flights to over 150 destinations. With an operating fleet of over 200 aircrafts and more than 15,000 Crewmembers, the Company has a network of 300 non-stop routes. Azul was named by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2023. In 2020 Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian flag carrier earned the number one ranking in the Traveler's Choice Awards. On the Web: http://www.voeazul.com.br/imprensa On May 28, 2025, Azul S.A. and 19 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-11176). The cases are pending before Judge Sean H. Lane. The Company is supported by Davis Polk & Wardwell LLP, White & Case LLP, and Pinheiro Neto Advogados as legal counsel; FTI Consulting as financial advisor; Guggenheim Securities, LLC as investment banker; SkyWorks Capital LLC as fleet advisor; and FTI Consulting, C Street Advisory Group, and MassMedia as strategic communications advisors. Stretto is the claims agent. The Participating Lenders are supported by Cleary Gottlieb Steen & Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as investment banker. United Airlines is supported by Hughes Hubbard & Reed LLP and Sidley Austin LLP as legal counsel and Barclays Investment Bank as investment banker. American Airlines is supported by Latham & Watkins LLP as legal counsel. AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal Counsel. =========== M E X I C O =========== ASCEND PERFORMANCE: Kane Russell Represents Creditors ----------------------------------------------------- In the Chapter 11 cases of Ascend Performance Materials Holdings Inc. and affiliates, Trinity Industries Leasing Company, Enterprise Products Operating, LLC, and Enterprise Petrochemical Marketing, LLC (collectively, the "Creditors") filed a verified statement pursuant to Rule 2019 of the Federal Rules of Bankruptcy Procedure. On or around May 19, 2025, Trinity Industries Leasing Company retained attorneys currently affiliated with Kane Russell Coleman Logan, PC ("KRCL") to represent it as counsel in connection with certain lease agreements between itself and debtor Ascend Performance Materials in the case. KRCL represents (as such term is defined in Bankruptcy Rule 2019(a)(2)) Trinity Industries Leasing Company, Enterprise Products Operating, LLC, and Enterprise Petrochemical Marketing, LLC in their capacities as creditors in the Bankruptcy Case acting in concert to advance a common interest (as required by Bankruptcy Rule 2019(b)(1)). The Creditors' name and mailing addresses are as follows: 1. Trinity Industries Leasing Company 14221 North Dallas Parkway, Suite 1100 Dallas, Texas 75254 2. Enterprise Products Operating, LLC 1100 Louisiana St., Suite 24.042, Houston, Texas 77002 3. Enterprise Petrochemical Marketing, LLC 1100 Louisiana St., Suite 24.042, Houston, Texas 77002 Trinity Industries is an equipment lessor to the Debtors. Trinity is owed amounts due pursuant to its lease agreement. Enterprise Products provides pipeline to the Debtors to move materials. Enterprise Products is owed amounts in the ordinary course of business that are due and owing. KRCL does not represent or purport to represent any other entities in connection with the Debtors' chapter 11 cases. KRCL does not represent the Creditors as a "committee" as such term is used in the Bankruptcy Code and Bankruptcy Rules and does not undertake to represent the interests of, and are not fiduciaries for, any creditor, party in interest, or other entity that has not signed a retention agreement with KRCL. In addition, the Creditors do not represent or purport to represent any other entities in connection with the Debtors' chapter 11 cases. The Firm can be reached at: KANE RUSSELL COLEMAN LOGAN, P.C. Jason Binford, Esq. 401 Congress Ave., Ste. 2100 Austin, Texas 78701 Telephone: (512) 487-6566 Email: jbinford@krcl.com About Ascend Performance Materials Ascend Performance Materials Holdings Inc., together with their non-debtor affiliates, are one of the largest, fully-integrated producers of nylon, a plastic that is used in everyday essentials, like apparel, carpets, and tires, as well as new technologies, like electric vehicles and solar energy systems. Ascend's business primarily revolves around the production and sale of nylon 6,6 (PA66), along with the chemical intermediates and downstream products derived from it. Common applications of PA66 include heating and cooling systems, air bags, batteries, and athletic apparel. Headquartered in Houston, Texas, Ascend has a global workforce of approximately 2,200 employees and operates eleven manufacturing facilities that span the United States, Mexico, Europe, and Asia. The Debtors filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 25-90127) on April 21, 2025, with $1 billion to $10 billion in assets and liabilities. Robert Del Genio, chief restructuring officer, signed the petitions. Judge Christopher M. Lopez presides over the case. The Debtors tapped Bracewell LLP as co-bankruptcy counsel; KIRKLAND & ELLIS LLP and KIRKLAND & ELLIS INTERNATIONAL LLP as restructuring counsel; PJT Partners, Inc., as investment banker; and FTI Consulting, Inc. as restructuring advisor. ===================== P U E R T O R I C O ===================== OPTIMUS SERVICE: Seeks to Hires Juan C. Bigas Valedon as Counsel ---------------------------------------------------------------- Optimus Service Group seeks approval from the U.S. Bankruptcy Court for the Eastern District of Puerto Rico to employ Juan C. Bigas Valedon Law Office to handle its Chapter 11 case. Juan Bigas Valedon, Esq., the primary attorney in this representation, will be billed at his hourly rate of $350, plus expenses. The firm received a retainer of $10,000 from the Debtor. Mr. Bigas Valedon disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Juan C. Bigas Valedon, Esq. Juan C. Bigas Valedon Law Office P.O. Box 7011 Ponce, PR 00732 Telephone: (259)-1000 Facsimile: (842)-4090 About Optimus Service Group Optimus Service Group sought relief under Subchapter V of Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-02414) on May 29, 2025. In its petition, the Debtor disclosed up to $1 million in estimated assets and up to $100,000 in estimated liabilities. Honorable Bankruptcy Judge Mildred Caban Flores handles the case. Juan C. Bigas Valedon Law Office serves as the Debtor's counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== CARIBBEAN AIRLINES: Return Flight Into Controversy -------------------------------------------------- Trinidad and Tobago Newsday reports that it has been almost 20 years since Caribbean Airlines Ltd (CAL) was incorporated as a wholly-owned state enterprise, replacing British West Indies Airways Ltd (BWIA). That transition cost an estimated US$359.9 million or about TT$2.5 billion, according to a 2018 parliamentary report. Yet, has that been recouped? Is the airline profitable? Two decades later, CAL keeps flying in controversy in relation to such questions, as seen by recent exchanges between the Prime Minister and PNM MP Colm Imbert, who for ten years sat at the head of the finance ministry that acts as the airline's corporation sole, according to Trinidad and Tobago Newsday reports. Speaking at a post-cabinet media briefing on June 5, Ms Persad-Bissessar said CAL officials recently attempted to "jumbie" the new UNC government with a shopping list of demands, the report notes. A $260 million loan is rolling over, the report relays. "CAL is in the red, but every time they speak, they're talking about the gains they're making, how much profit they're making," she said, announcing a new board. But Mr Imbert, in a social media post a day later, denied as "false" any suggestion of a cover-up. He said the airline has always referred to operating profit, “which they should know excludes debt service,” he added. Disclosed in the 2025 Draft Estimates of Recurrent Expenditure under the Ministry of Finance are items for debt servicing for CAL to the tune of $99 million in local loan interest and principal repayment of $196 million. This, besides a $70 million transfer. CAL reported an operating profit of $111 million for 2018 and $121 million for 2019, the report recalls. But the pandemic year of 2020 saw losses of almost $600 million. Nonetheless, by 2023, officials were buoyant, the report notes. In February 2025, Mr Imbert said the carrier had moved "from an operating loss of US$36.7 million in 2022 to an operating profit of US$24.7 million, excluding debt service." (That was akin to moving from TT$250 million to TT$166 million.) He added, "In 2024, the operating profit fell to US$12.1 million, excluding debt service." (About TT$82 million.), the report relays. Even so, as far back as 2017, Parliament's Joint Select Committee on State Enterprises noted, "CAL has consistently failed to adhere to reporting timelines," the report recalls. Correspondence with an activist in 2025 also suggested missing submissions for 2016-2024, the report discloses. This was the context of the 2024 salary increase for pilots, the report notes. While the UNC and PNM rightly spar over all these details, CAL's importance should not be limited to profitability, the report says. As the structure of its shareholding reveals – it is 88.1 per cent state-owned, 11.9 per cent owned by the Jamaican government – its function is geo-strategic, both within Caricom and closer to home, the report notes. In 2007, it gained the Tobago Express Ltd route. That air-bridge is subsidised to the tune of about $50 million annually, primarily because it is far too important to be left to the whims of the global airline industry, the report relates. CAL will always be controversial. But for the moment, it remains indispensable. The focus should be on both profit and its capacity to serve the people — two often inconsistent things, the report adds. About Caribbean Airlines Caribbean Airlines Limited provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. Caribbean Airlines is among many airlines whose business has been greatly affected in 2020 by the slowdown of international travel caused by the COVID-19 pandemic. The government of Trinidad & Tobago guaranteed a US$65 million loan for the airline, and that funding has helped with the airlines' cash flow shortfall since May 2020. In September 2020, the airline related it will be taking cost-cutting measures to help keep it afloat. The measures, which was to affect some 1,700 employees, included salary deductions, no-pay leaves and lay-offs. NIQUAN ENERGY: Mounting Legal, Financial Pressure ------------------------------------------------- Rickie Ramdass at Trinidad Express reports that NIQUAN Energy Trinidad Ltd, now in receivership, is under mounting legal and financial pressure as it struggles with significant debts owed to both State entities and private creditors. At the heart of the controversy is the company's alleged access to undisclosed financial support despite its insolvency, according to Trinidad Express. The issue was raised by senior counsel Anand Ramlogan during winding-up proceedings before Justice Westmin James, the report relays. Ramlogan represents former NiQuan vice-president David Small, who initiated liquidation proceedings last year to enforce a $20.5 million judgment stemming from unpaid sums and a breach of a mutual separation agreement dating back to November 2021, the report recalls. Small's complaint underscores that while local creditors such as himself and the Water and Sewerage Authority (WASA) remain unpaid, NiQuan was nonetheless able to meet a US$2 million security deposit for legal costs in arbitration proceedings, the report notes. “Where was NiQuan getting its money from to pay its lawyers?” Ramlogan questioned in court, the report says. He demanded full disclosure regarding the third-party financial arrangements NiQuan has entered into with international corporate litigation financiers, the report discloses. Ramlogan emphasised that such financing is not an act of charity, as these financiers typically negotiate a significant portion of any judgment award for themselves, to the detriment of NiQuan's local creditors, the report relays. Ramlogan described the situation as "manifestly unfair," the report notes. He expressed concern over a June 9 report from the court-appointed receiver, who was appointed in October 2024, which revealed that NiQuan's legal arbitration efforts were fully funded by an unnamed litigation funder, with US$2 million already posted for security costs, the report relays. The arbitration pertains to the termination of NiQuan's contract in August 2023 with the Trinidad and Tobago Upstream Downstream Energy Operations Company Ltd (TTUDEOCL), which is owed over US$22 million, the report discloses. Ramlogan in his arguments made mention of a 2023 explosion at NiQuan's GTL plant that resulted in the death of Allanlane Ramkissoon, a pipefitter at Massy Energy, who, along with others, was contracted to carry out works at NiQuan's plant, the report notes. With regard to that incident, Justice Avason Quinlan-Williams found that it was unlawful for the Energy Ministry to not disclose the investigative report to Ramkissoon's widow, who had made a request under the Freedom of Information Act (FOIA), the report relates. The ministry had stated that the document was exempt from disclosure under the act, the report notes. As part of the winding-up process, NiQuan is being prepared for sale on an "as is, where is" basis with expressions of interest due June 16, and formal proposals by June 30, the report discloses. A preferred bidder is expected to be named by July 15. NiQuan also owes substantial debts to several State entities, including T&TEC, WASA, Trinidad Petroleum Holdings Ltd (TPHL), and eTeck, the report relays. Appearing along with Ramlogan for Small were attorneys Jared Jagroo and Ganesh Saroop, while NiQuan was represented by Vivek Lakhan Joseph, the report notes. Attorney Jonathan Walker appeared for Republic Bank, Stephen Singh for the receiver; Prem Persad Maharaj appeared for a creditor, and Lydia Mendonca appeared for WASA, the report adds. =============== X X X X X X X X =============== LATAM: IDB Creates Fund to Strengthen Caribbean Integration ----------------------------------------------------------- As part of the Brazil-Caribbean Summit, with the participation of Caribbean Community (CARICOM) nations, the Inter-American Development Bank (IDB) disclosed new measures to support the region through development and integration. In the IDB's view, the joint efforts of Brazil and CARICOM prove that regional integration works. One of the IDB's most important initiatives is the creation of a multi-donor fund for the ONE Caribbean program, a platform for collective action focused on climate resilience and disaster risk management, citizen security, private sector development and food security. To date, the IDB has launched 11 regional initiatives, in addition to ONE SAFE Caribbean and a coordination mechanism for project preparation. "The IDB is fully committed to the development of Caribbean countries. Together with leaders from the region and Brazil, the IDB is working to strengthen resilience and security and generate opportunities throughout the region. In this regard, within the framework of our ONE Caribbean program, the IDB is ready to contribute, including with a new fund, by promoting integration by offering regional initiatives as well as providing resources and support to Haiti," IDB President Ilan Goldfajn said. The main IDB announcements at the Summit, which brought together heads of state and government leaders at the Itamaraty Palace in Brasilia, are as follows: 1. Haiti: The IDB is providing R$1.6 billion ($283 million) in grants for projects such as school meals, hospital renovations, and basic infrastructure. The IDB will also finance projects with the private sector as part of the 2025-2030 Recovery Plan for Haiti, a broad program to promote economic opportunities in areas outside of Port-au-Prince. The IDB is leading the preparation of this plan at the request of Haitian authorities and in close collaboration with the UN, the European Union, and the World Bank. 2. Multi-Country Debt Swap: At the request of CARICOM Chair and Barbados Prime Minister Mia Mottley, the IDB is leading the coordination with other multilateral institutions for a first-of-its-kind regional standardized debt-for-resilience multi-country swap program. This initiative will unlock fiscal space, strengthen resilience, and channel savings into regional public goods. This new framework would help bring scale, transparency, and efficiency – crucial for small states that face high costs in such transactions. 3. Caribbean Multi-Donor Fund: The IDB is launching the Caribbean Multi-Donor Trust Fund, an IDB platform for collective action focused on resilience, citizen security, private sector development, and food security. The fund was created under the ONE Caribbean program with initial contributions of approximately $13 million from Canada and the United Kingdom. The IDB invites other countries and institutions to participate in the initiative, including Brazil. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000. . * * * End of Transmission * * *