250709.mbx

250709.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 Wednesday, July 9, 2025, Vol. 26, No. 136 Headlines A R G E N T I N A ARGENTINA: Grew More Than Expected After Milei Lifted Controls EDEMSA: Fitch Assigns 'CCC+' LongTerm IDRs B A H A M A S FTX GROUP: Celsius Ends Clawback Suit C O L O M B I A BANCO DAVIVIENDA: Fitch Rates USD500MM Tier 2 Sub. Notes 'BB-' D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Launches RD$100MM Fund to Irrigation Systems J A M A I C A JAMAICA: PIOJ Cites Net Migration for Neg. Population Growth Rate P U E R T O R I C O NEW FORTRESS: Outlines Liquidity Strategy in Late Filing PET HOTELS: Seeks to Hire Millan Law Offices as Bankruptcy Counsel T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Economist Gives Defense Amid Criticism TRINIDAD & TOBAGO: Natural Gas Output Falls 5.9% - - - - - ================= A R G E N T I N A ================= ARGENTINA: Grew More Than Expected After Milei Lifted Controls -------------------------------------------------------------- Manuela Tobias at Bloomberg News reports that Argentina's economy grew more than expected in April as President Javier Milei loosened some currency controls as part of a US$20-billion agreement with the International Monetary Fund (IMF). Economic activity rose 1.9 percent in April from March, compared with the median estimate of 0.3 percent of analysts surveyed by Bloomberg. From a year ago, activity rose 7.7 percent in April, also surpassing expectations, according to government data published, according to Bloomberg News. After a harsh contraction last year at the start of Milei's austerity drive, economic activity grew in the first two months of this year, but fell 1.9 percent in March amid market flummox just before inking the new IMF deal, Bloomberg News notes. The financing package was signed on April 11, and Argentina lifted significant currency and capital controls with little impact on the currency, though restrictions remain in place for businesses, Bloomberg News relays. "It's a very good data point that exceeds all expectations," said Maria Castiglioni, director of consulting firm C&T Asesores in Buenos Aires, Bloomberg News relays. "In broad strokes, Argentina recovered what it lost in March, which was heavily influenced by uncertainty around what would happen with the IMF, the foreign exchange rate and capital controls," he added. Argentina's retail sector led growth in April, followed by manufacturing and finance, according to the April GDP proxy, Bloomberg News. Construction grew 17 percent on the year while the financial sector grew 28 percent amid a boom in credit, Bloomberg News relays. Separately, Argentina extended growth in the first quarter of the year, with consumer spending growing 2.9 percent quarter on quarter, Bloomberg News notes. "We continue to see consolidation and robust growth in monthly and annual economic activity," said Dante Ruggieri, partner at AT Inversiones, a Buenos Aires consultancy, Bloomberg News discloses. "What was most relevant was the growth in spite of the market uncertainty up until April 11," he added. An IMF technical team visited Buenos Aires to review the economic team's progress so far, Bloomberg News says. A staff-level agreement on the first review will be a key step before the IMF board would approve a US$2-billion disbursement as part of the program, Bloomberg News relays. Economists surveyed by Argentina's Central Bank in May expect the economy to grow 5.2 percent in 2025, Bloomberg News adds. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez 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 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. EDEMSA: Fitch Assigns 'CCC+' LongTerm IDRs ------------------------------------------ Fitch Ratings has published Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) of 'CCC+'. Fitch has also published EDEMSA's proposed unsecured notes for up to USD300 million a rating of 'B-' with a Recovery Rating of 'RR3'. Net proceeds from the planned issuance will repay outstanding debt, finance capex, and be used for general corporate purposes. EDEMSA's ratings reflect its energy distribution concession that runs until 2048. In February 2024, the regulator updated the company's tariff framework through the Integral Tariff Revision (RTI) process to include quarterly regulatory adjustments in line with inflation. EDEMSA does not receive subsidies from Argentina's central government or direct transfers from the Province of Mendoza. Instead, the company collects payments for the electric sector and retains about 55% of the final bill as its Added Distribution Value (VAD). Key Rating Drivers Regulatory Update: EDEMSA's RTI process, finalized in February 2024, resulted in an approximately 452% average increase in the VAD in its concession. The RTI five-year period (2023-2028) includes automatic quarterly adjustments relating to inflation, and additional components, including transmission and distribution costs, as well as commercial and other expenses. Quarterly adjustments since February 2024 have been successfully applied. Incorporating the tariff adjustment, Fitch expects EDEMSA's EBITDA to reach ARS112 billion in 2025 and 145 billion in 2026. In addition, EDEMSA signed an agreement with the Province of Mendoza for unearned income between 2008 and 2023. This agreement extends the EDEMSA concession by 20 years from August 2028, with a reduction of the concession fee to 6% from 10%. The company's losses reached 16.8% at FYE2024. Fitch expects this amount to decline to around 15% by 2028 as EDEMSA allocates most of its new USD300 million notes to combat these losses. Operating Environment Constrains Rating: As a regulated utility company, EDEMSA's revenues are exclusively generated in Argentina. This makes the company vulnerable to economic volatility, potential financial access disruptions, and weak governance systems. These factors constrain EDEMSA's rating. The current central government administration plans to implement aggressive fiscal adjustments, including reducing direct electric subsidies to end users. CAMMESA Debt Regularization: EDEMSA´s tariff adjustment allows the company to recover accumulated debt for energy purchases with Compania Administradora del Mercado Mayorista Electrico S.A. (CAMMESA), which acts as an agent in the wholesale market participants known as Mercado Mayorista Electrico. EDEMSA agreed to a payment plan with CAMMESA for previous energy purchases, acknowledging a debt of about ARS17,668.9 million. This debt is recognized as a pass-through in the tariff and has been offset with uncollected revenues from previous tariff periods. The original payment plan consisted of 96 monthly installments, and there are approximately seven years remaining, amounting to approximately USD180,000 monthly at an adjustable rate. Moderate Leverage Profile: EDEMSA has a moderate leverage profile. Fitch estimates EBITDA leverage at around 4.0x in 2025 and an average of 3.3x through FY2027, including the USD300 million issuance and cancellation of existing debt. The company's interest coverage will average around 4.0x over the rating horizon when incorporating these assumptions. Peer Analysis Relative to its peers outside of Argentina, EDEMSA's ratings are affected by Argentina's (CCC+) rating. The company operates in a challenging environment, marked by the country's economic issues, including hyperinflation and regulatory unpredictability, which significantly affect its credit strengths. EDEMSA operates a long-term energy distribution concession serving 480,000 customers. Its business profile compares with regional peers such as EDENOR (CCC+). EDENOR is Argentina's largest electricity distribution company based on the number of customers and the volume of electricity sold. It has an exclusive concession to distribute electricity in the northwestern part of the greater Buenos Aires metropolitan area and the northern section of Buenos Aires city, serving about 3.3 million clients. Over the rating horizon, EDEMSA's expected average gross leverage, measured as total gross debt/EBITDA, over the rating horizon is 3.3x, while EDENOR expects leverage below 2.0x. EDEMSA's increased leverage is driven by its expected USD300 million bond, which will be primarily used to fund capex. Neither company receives direct subsidies from the government. EDEMSA has a lower scale of operations compared with European integrated utilities such as Engie S.A. (BBB+/Stable), Enel Spa (BBB+/Stable), e-netz Suedhessen AG (BBB+/Stable) and EDF Energy Holdings Limited (BBB-/Stable). These are all well-diversified utilities operating in energy and natural gas distribution, as well as networks, energy solutions and nuclear assets. Key Assumptions - Annual average FX rate of USD/ARS of 1157.33 in 2025 and 1,337.50 in 2026 and 2027; - Inflation rate of 45.63% in 2025 and 22.05% in 2026 and 2027; - Five-year tariff review process through 2028 including quarterly adjustments increasing by inflation; - CAMMESA debt recognition of ARS 17,668 million to be paid for remaining about seven years included in tariff; - USD 300 million issuance during 2025 to refinance existing debt and general corporate purposes; - Energy losses around 16% over the rating horizon; - No dividend payments during 2025-2028. Recovery Analysis Key Recovery Rating Assumptions - EBITDA declines 30% in bankruptcy; - A 4.0x EBITDA multiple; - Administrative claims of 10%. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Worsening of the regulatory environment, such as as negative changes to the regulated framework that do not allow EDEMSA to implement the tariff structure, resulting in erosion of the company's liquidity, cash flow and capital structure; - Adverse change of control at EDEMSA that affects the company's business and financial strategy, dividends distribution and cash extraction or changes in corporate governance practices; - Inability to pass through tariff components, creating an FX mismatch to repay hard currency debt; - Inability to access financing. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Argentina's sovereign rating; - Improvement in the regulatory framework migrating to a constructive scheme, with low government interference in utility regulations with a clear tariff structure, enabling companies to recover costs of service from end users through tariffs. Liquidity and Debt Structure In the second half of 2024, EDEMSA issued local notes totaling USD80 million. As of March 2025, the company had cash on hand and short-term investments of ARS163,751 million (USD152 million) with short-term debt maturities of ARS25,122 million (USD24 million). Around 40% and 50% of EDEMSA cash and debt is denominated in USD, respectively. As of March 2025, EDEMSA has ARS19,491 million debt with CAMMESA, which the company has been paying on time as of February 2024. Issuer Profile Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA) oversees the supply and marketing of electricity in 11 departments of Mendoza, Argentina. Energy distribution is regulated through the Ente Provincial Regulador de la Energía Électrica (EPRE). Criteria Variation Fitch assigns Argentina to Group D, in the Country-Specific Treatment of Recovery Ratings Criteria, where the assigned Recovery Ratings (RR) are capped at 'RR4'. Fitch believes the recovery prospects for EDEMSA are higher than the expected recovery of 31%-50% for the 'RR4' band. This is based on Fitch's bespoke recovery analysis for each individual issuer as well as precedents of debt exchange offerings driven by capital control restriction put into place by the Argentine Central Bank. In all cases, the calculated recovery was higher than the expected recovery of 51%-70% for the 'RR3' band, but Fitch capped the RRs at 'RR3' to reflect a less predictable range of outcomes. A RR of 'RR3' supports a one-notch uplift for the instrument rating from the issuer's Foreign Currency IDR. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. 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 Recovery ----------- ------ -------- Empresa Distribuidora de Electricidad de Mendoza S.A. LT IDR CCC+ Publish LC LT IDR CCC+ Publish senior unsecured LT B- Publish RR3 ============= B A H A M A S ============= FTX GROUP: Celsius Ends Clawback Suit ------------------------------------- Yun Park at law360.com reports that FTX's Bahamas unit and bankrupt cryptocurrency lender Celsius Network reached a settlement resolving an adversary lawsuit seeking the return of around $517 million in pre-bankruptcy transfers. About FTX 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, 2022, 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. SBF 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 billion 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. =============== C O L O M B I A =============== BANCO DAVIVIENDA: Fitch Rates USD500MM Tier 2 Sub. Notes 'BB-' -------------------------------------------------------------- Fitch Ratings has assigned a final 'BB-' rating to Banco Davivienda S.A.'s U.S. dollar-denominated Tier 2 subordinated notes for USD500 million at 8.125% with a 10NC5 tenor. The proceeds from the issue will be used for general corporate purposes, including to refinance or repay existing debt. The final rating follows a review of the final terms and conditions according to the information received when Fitch assigned the expected rating on June 23, 2025. For more details see "Fitch Assigns 'BB-(EXP)' Rating to Davivienda's Tier 2 Subordinated Notes",. Key Rating Drivers Davivienda's new issuance rating is two notches below Davivienda's 'bb+' Viability Rating (VR) to reflect loss severity only. Fitch did not apply notching for non-performance risk, as the notes do not have additional loss-absorption features. The notes only provide limited loss-absorption capacity due to their relatively low trigger for principal write-off, which is a regulatory common equity Tier 1 (CET1) ratio at or below 4.5%. Fitch believes the trigger would not activate early enough to prevent a non-viability event for the bank. Fitch expects the securities to comply with local Tier II capital requirements. They will rank pari passu with all other unsecured Tier II capital subordinated indebtedness of the bank, except for any subordinated indebtedness that is designated as junior to the notes. The notes will be subordinated in payment rights to the prior payment in full in cash or cash equivalents of all outstanding obligations due for senior liabilities of the bank. They will hold senior payment rights only over subordinated instruments that constitute Tier II capital subordinated indebtedness designated as junior to the notes, Tier I capital subordinated instruments, and the bank's capital stock. Davivienda's VR reflects the bank's strong business profile, given its leading market position in Colombia as the second-largest bank and adequate franchise in Central America. The assessment also considers its sound risk management and financial performance recovery amid the recent challenging operating environment, as well as its good capital position and large, stable deposit base. For further information about the drivers and rating sensitivities for Davivienda's ratings, please see "Fitch Takes Action on Colombian and Central American Banks Following Colombia's Outlook Revision," dated March 11, 2025. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - The subordinated debt ratings would be sensitive to a downgrade of Davivienda's VR. Davivienda's VR and IDR's would be downgraded in the case of a sovereign downgrade as reflected in the Negative Outlook of the bank's IDRs. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The subordinated debt ratings would mirror any positive action on the bank's VR and would maintain the downward notching from it. Date of Relevant Committee 19 June 2025 ESG Considerations Fitch does not provide ESG relevance scores for Banco Davivienda S.A. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, program, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. Entity/Debt Rating Prior ----------- ------ ----- Banco Davivienda S.A. Subordinated LT BB- New Rating BB-(EXP) =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Launches RD$100MM Fund to Irrigation Systems ---------------------------------------------------------------- Dominican Today reports that the Agricultural Bank of the Dominican Republic (Bagrícola) and the National Irrigation Technology Directorate (TNR) have launched a call for proposals offering non-reimbursable funds of up to 35% for agricultural producers in San Juan province seeking to modernize their irrigation systems. This initiative is part of the implementation of the Fund for the Promotion of the Modernization of the National Irrigation System (FOTESIR) in the southern region, according to Dominican Today. With an initial investment of RD$100 million, the program aims to improve irrigation on 470,000 acres across San Juan, Azua, Bahoruco, and Independencia over the next four years, the report notes. The launch event took place at the Autonomous University of Santo Domingo (UASD) and was led by Claudio Caamaño Vélez, director of TNR, and Juan Rosario, technical deputy administrator of Banco Bagrícola, the report relays. They explained that the FOTESIR fund will cover up to 35% of the total cost of irrigation modernization projects, including training, water conduction, filtration, fertilization, and drainage, the report discloses. Eligible applicants include small and medium-sized producers—individuals or legal entities—whose properties in San Juan do not exceed 500 net tareas, the report relays. Proposals must be submitted by July 25 at 4:00 p.m. through certified suppliers registered with TNR. Beneficiaries will be selected based on a scoring system evaluating their financial contribution and the cost-efficiency of their projects, the report notes. 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. TCR-LA reported in April 2019 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. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= J A M A I C A ============= JAMAICA: PIOJ Cites Net Migration for Neg. Population Growth Rate ----------------------------------------------------------------- RJR News reports that the Planning Institute of Jamaica (PIOJ) is reporting that net migration is having a negative effect on the population structure, leading to a negative population growth rate. The PIOJ also stressed that the population had some 27,000 more women than men last year, when it was comprised of 1,363,700 women and 1,336,700 men, according to RJR News. There was a 0.1?ll (sic) in the country's counted population to 2.7 million people last year, the report notes. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. ===================== P U E R T O R I C O ===================== NEW FORTRESS: Outlines Liquidity Strategy in Late Filing -------------------------------------------------------- Ruth Liao of Bloomberg Law reports that New Fortress Energy, in its first-quarter 10-Q, revealed that its management has approved a plan aimed at strengthening the company's liquidity. The filing states that, as of March 2025, the company has access to a $100 million backstop agreement to help support its financial position. The company had previously flagged concerns about its ability to continue as a going concern earlier this year. As of December 31, 2024, New Fortress had invested $3.3 billion in its LNG liquefaction facilities, with a significant portion of the costs attributed to budget overruns on its offshore Mexico floating LNG project, Fast LNG, the report states. About New Fortress Energy Inc. New Fortress Energy Inc. is a US listed energy infrastructure company operating natural gas liquefaction, re-gasification and distribution assets in Puerto Rico, Mexico, Jamaica, Nicaragua and Brazil. The company operates one floating LNG production facility (FLNG) and is constructing the second onshore facility in Mexico, expected to come to production in 2026. PET HOTELS: Seeks to Hire Millan Law Offices as Bankruptcy Counsel ------------------------------------------------------------------ Pet Hotels LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Robert Millan, Esq., at Millan Law Offices to handle the bankruptcy proceedings. Mr. Millan charges $200 per hour for work performed. His paralegals bill $50 per hour. The firm received a retainer in the amount of $3,000. Mr. Millan assures the court that he is a disinterested person as that term is defined in 11 U.S.C., Section 101(14). Mr. Millan can be reached at: Robert Millan, Esq. ROBERT MILLAN Calle San Jose No. 250 San Juan, PR 00901 Tel: (787) 725-0946 Fax: (787) 725-0946 E-mail: rmi3183180@aol.com About Pet Hotels LLC Pet Hotels LLC filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 25-02627) on June 10, 2025. At the time of filing, the Debtor estimated $1,000,001 to $10 million in both assets and liabilities. Robert Millan, Esq., at Millan Law Offices serves as the Debtor's bankruptcy counsel. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Economist Gives Defense Amid Criticism --------------------------------------------------------- Angelo Jedidiah at Trinidad Guardian reports that following sharp criticism from St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves over the use of the TT dollar in regional trade, economist Professor Roger Hosein has maintained that his comments were understandable but unfortunate. Last month, at the opening ceremony of the 77th Organisation of Eastern Caribbean States (OECS) Meeting, newly appointed OECS chairman Dr Gonsalves condemned T&T's failure to settle a "miserly" US$4 million debt owed to his country for agricultural goods, according to Trinidad Guardian. Gonsalves said the proposal he got from Port-of-Spain is that the receivable should be paid in TTD-currency he says has no value outside of T&T, the report notes. He added that it might as well be compared to "Monopoly money," if brought to St Vincent and the Grenadines, the report relays. "This injustice has caused material difficulties to farmers and agri-traders in my country. Our country pays T&T annually in excess of US$65 million. We (are) paying hard foreign currency for visible exports from Trinidad, mainly petroleum products and manufactured goods . . . this is absolutely unfair and ridiculous," Dr Gonsalves said, the report discloses. While Professor Hosein acknowledged that T&T's foreign exchange shortage is a serious concern for the nation and the local SME sector, he pushed back on any characterisation of the TTD as worthless, the report says. "It's unfortunate, the use of the term Monopoly money. We are not in that terrible position. But from the perspective of the home countries, like St Vincent, the money has no value. So you can kind of sympathise with why they may be thinking that way. But our money is not Monopoly money," Hosein said while appearing on CNC3's The Morning Brew program, the report notes. He says while the foreign exchange problem will continue for the next three to five years, T&T maintains a strong per capita GDP and remains a leading energy producer in the region, the report relays. "We are still a strong player. But we have a lot of groundwork to do to fix the structure of production, structure of employment and structure of exports," the report notes. Hosein also echoed calls for the development of a broader regional payments system - specifically the proposed Caricom Payments and Settlement System, to offer an "intra-Caricom alternative" for countries struggling with access to foreign exchange, the report relays. His comments follow news that the central banks of Barbados and The Bahamas have successfully executed a cross-border transaction directly using their local currencies, eliminating the need for a third-party currency like the US dollar, the report discloses. TRINIDAD & TOBAGO: Natural Gas Output Falls 5.9% ------------------------------------------------ Trinidad Express reports that Trinidad and Tobago recorded short-term increases in the production of crude oil but declines in the production of natural gas and gas-related industries like LNG, methanol, and ammonia production during the first quarter of this year. The Energy Chamber of Trinidad and Tobago, analysing the data released by the Ministry of Energy and Energy Industries, said it highlighted some core issues within the energy sector, according to Trinidad Express. "Looking at monthly and quarterly data and even single year data can often be a bit misleading as it ignores critical historical information, the report notes. "In the energy sector, production is not constant; it fluctuates due to several factors, including scheduled outages (such as maintenance programs) and unscheduled outages, storage levels, and other factors, the report relays. "It is important to note that this data is also collected across multiple producers with multiple facilities; therefore, month to month, there are increases and decreases in production," the Chamber said, the report notes. It said first quarter data for 2025 showed a year-on-year reduction in the production of natural gas (-5.9%) during the first quarter of 2025, the report says. Crude oil production improved (6.1%t), while the performance of the petrochemical industry was mixed, the report discloses. Expansions in ammonia (4.7%) and urea (12.5%) were countered by a notable decline in methanol output (-15.3%), the report relays. The Chamber said a longer horizon reveals a substantial decline in oil and gas production, which results in lower petrochemical production and ultimately lower energy exports, the report says. 'Precipitous Decline' Oil production has been falling for the last 20 years. Peak oil production in Trinidad and Tobago was about 144,000 barrels of oil per day in 2005, the report relays. "Since then, there has been a precipitous decline in production. In May 2005, we produced 155,000 barrels per day, the report notes. The production in March 2025 is 67% less than May 2005—a substantial decrease," the report discloses. In December 2009, natural gas production was 4.5 bcf per day, the report says. In March 2025, it was 2.3 bcf/day, almost 50% of what was produced back then, the report notes. The Energy Chamber said that this longer horizon highlights the urgent need for reform in the energy sector, the report relays. "More needs to be done to encourage investment in the oil and gas sector in Trinidad and Tobago. Increased investment leads to more projects, which leads to increased opportunities for contractors to work on greenfield projects, and ultimately, more monetisation of oil and gas resources and increased exports of LNG, methanol, and ammonia, which can generate substantial foreign exchange," it added. ********* 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 * * *