250724.mbx

250724.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 Thursday, July 24, 2025, Vol. 26, No. 147 Headlines A R G E N T I N A YPF SA: Argentina Gets US Support in Bid to Suspend Share Handover D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Manufacturing Slows Down Again in June 2025 J A M A I C A CARIBBEAN CEMENT: Plans 150,000 Tonne Boost in Annual Production M E X I C O TITAN INDUSTRIES: Seeks Chapter 11 Bankruptcy in Texas P U E R T O R I C O PUERTO RICO: Judge Rejects Bondholder Claim Against Country SILVER AIRWAYS: Soneet Kapila Named Chapter 11 Trustee T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: EU Official Sees Hope Amid Carbon Tax Threat TRINIDAD & TOBAGO: Forex Shortage Forces Firms to Look to Jamaica - - - - - ================= A R G E N T I N A ================= YPF SA: Argentina Gets US Support in Bid to Suspend Share Handover ------------------------------------------------------------------ Buenos Aires Times reports that amid the ongoing controversy over the potential handover of YPF shares as payment for a US$16-billion judgment related to the oil company's expropriation, the United States government has announced it will intervene in court to support Argentina. US President Donald Trump's administration is set to file an amicus curiae brief backing Argentina's request to suspend the ruling that ordered the transfer of 51 percent of shares in the state-run energy firm YPF, according to Buenos Aires Times. The US Department of Justice will submit the filing to the New York Court of Appeals, seeking to maintain the freeze on Judge Loretta Preska's order throughout the appeal process, according to multiple reports in local outlets, the report notes. At present, a temporary suspension is in place pending the presentation of legal arguments by both sides, the report relays. Washington's intervention is aimed at ensuring that the halt remains in effect for the full duration of Argentina's appeal, the report discloses. The move by the Justice Department will bolster Argentina's position as it challenges Preska's June ruling, which ordered the immediate transfer of shares to litigation funds Burford Capital and Eton Park following the country's loss in a 2023 court case, the report says. That order is currently on hold due to Argentina's appeal. In 2024, under the Biden administration, the US had already filed an amicus brief rejecting the plaintiffs' attempt to enforce the ruling via a handover of YPF shares, the report recalls. At the time, the Justice Department argued such a move "violates the United States' sovereign immunity standards," the report notes. However, Preska ignored the US government's position and ruled against Argentina, the report relays. Argentina lodged a formal appeal after Preska ordered the nation to sell its majority stake in state oil firm YPF, the report notes. The judge has ordered Argentina to sell its 51 percent stake in YPF towards settling a debt of US$16.1 billion to two former minority shareholders, the report relays. Argentina in 2012 seized 51 percent of the company from Spanish oil giant Repsol, which received about US$5 billion in compensation, the report notes. But minority shareholders Petersen Energia and Eton Park Capital - which jointly held about 25 percent of the company - went to court claiming they were not properly compensated, the report says. Judge Preska ruled in favour of the plaintiffs and in September 2023 ordered Argentina to pay the two firms, which has not happened, the report discloses. The judge said Argentina must sell its stake in YPF to offset the debt, the report notes. The Argentine Treasury's legal division has confirmed the nation has initiated appeal proceedings, the report relays. Speaking to the Noticias Argentinas news agency, Sebastian Maril, CEO of Latam Advisors, gave an expert view, explaining that an amicus brief amounts to formal support from an independent third party in a case, "adding arguments to persuade the judge or panel of judges to rule in favour of the party receiving support." Maril clarified that, for now, the US Department of Justice's intervention does not appear to extend to the broader appeal over the US$16.1-billion ruling, nor does it directly address the order to hand over shares, the report notes. This latest intervention aims to reverse that outcome and prevent Argentina from being forced to immediately relinquish its majority stake in YPF, the report says. Burford Capital is expected to file its objection to Argentina's request for an extended suspension on July 17, with the Argentine government scheduled to submit its arguments in favour of maintaining the stay on July 22, the report discloses. A decision is pending on Argentina's request for the payment to be suspended until its appeal is heard, the report relays. The ruling is seen as a setback for President Milei, whose administration is seeking to bolster foreign currency reserves and rein in soaring inflation while navigating a heavy debt burden, the report notes. If it loses its appeal, Argentina has vowed to seek relief from higher courts, the report adds. About YPF SA YPF SA, an energy company, engages in the oil and gas upstream and downstream activities in Argentina. Its upstream operations include the exploration, exploitation, and production of crude oil, and natural gas. The company's downstream operations include petrochemical production and crude oil refining; transportation and distribution of refined and petrochemical products; commercialization of crude oil, petrochemical products, and specialties. As reported in the Troubled Company Reporter-Latin America in January 2025, Fitch Ratings affirmed YPF S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'CCC'. Additionally, Fitch has affirmed YPF's outstanding senior unsecured notes at 'CCC' with Recovery Rating of 'RR4'. The company's Standalone Credit Profile (SCP) remains 'b', and its ratings are aligned with Fitch's "Government Related Entities Criteria," reflecting government ownership and strategic importance. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Manufacturing Slows Down Again in June 2025 --------------------------------------------------------------- Dominican Today reports that the Monthly Manufacturing Activity Index (IMAM) for the Dominican Republic dropped to 48.5 in June, down from 49.9 in May, remaining below the neutral threshold of 50. This indicates a continued contraction in manufacturing activity compared to the previous month. The IMAM, modeled after the international Purchasing Managers' Index (PMI), reflects month-to-month performance across five key areas: sales, production, employment, inventories, and supplier delivery times. All five components declined in June, according to Dominican Today. Notably, sales fell from 47.9 to 45.4, production dropped from 54.7 to 48.1, and employment slipped slightly from 51.9 to 51.0, the report notes. Additionally, supplier delivery times decreased from 51.0 to 46.0, and raw material inventory declined from 57.7 to 57.0—though still above the growth threshold, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. 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 ============= CARIBBEAN CEMENT: Plans 150,000 Tonne Boost in Annual Production ---------------------------------------------------------------- RJR News reports that the Rockfort-based Caribbean Cement Company says it plans to export 28,000 tonnes of cement to Caribbean markets, starting next month. It follows the recent completion of its US$42 million expansion plan, according to RJR News. Managing Director Jorge Martinez said the plan will see a 150,000 tonne expansion in production to 1.15 million tonnes annually. He added that the company generated revenues of $27.9 billion last year, despite the fall in annual output to 950,000 metric tonnes due to the plant shutdown, the report notes. The company also indicated that it generated net profits of $2 billion on revenues of $8.2 billion during the first quarter of this year, compared with $1.9 billion on revenues of $7.6 billion for the comparative period last year, the report relays. Carib Cement's net worth, or the difference between its assets and liabilities, also climbed to $30 billion from $26 billion during the first quarter of last year, the report adds. About Caribbean Cement Caribbean Cement Company Limited, together with its subsidiaries, manufactures and sells cement and clinker in Jamaica and other Caribbean countries. The company was incorporated in 1947 and is based in Kingston, Jamaica. As reported in the Troubled Company Reporter-Latin America on Aug 10, 2023, Jamaica Observer said that high cost attributed to a scheduled annual maintenance exercise done during the first quarter sent operational earnings and six months profit falling for cement manufacturer Carib Cement at the end of June. For the reporting period, net profit, which amounted to $2.4 billion, was approximately 20 per cent below the $3 billion earned for the half-year mark in 2022, according to Jamaica Observer. Operating earnings for the period also fell by about 24 per cent to total $3.6 billion when compared to the $4.8 billion seen for last year's period, the report noted. =========== M E X I C O =========== TITAN INDUSTRIES: Seeks Chapter 11 Bankruptcy in Texas ------------------------------------------------------ On July 9, 2025, Titan Industries USA LLC filed Chapter 11 protection in the U.S. Bankruptcy Court for the Western District of Texas. According to court filing, the Debtor reports between $1 million and $10 million in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. About Titan Industries USA LLC Titan Industries USA LLC provides dedicated freight transportation services with a focus on transparency and efficiency. The Company offers mobile-optimized tools for real-time shipment tracking, driver assist support, and cross-border communication between the U.S., Canada, and Mexico. Its operations are tailored to meet specific client needs, emphasizing reliability and timely delivery. Titan Industries USA LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. W.D. Tex. Case No. 25-30867) on July 9, 2025. In its petition, the Debtor reports estimated assets and liabilities between $1 million and $10 million. Honorable Bankruptcy Judge Christopher G. Bradley handles the case. The Debtors are represented by James Jopling, Esq. at JIM K. JOPLING, ATTORNEY AT LAW. ===================== P U E R T O R I C O ===================== PUERTO RICO: Judge Rejects Bondholder Claim Against Country ----------------------------------------------------------- Rick Archer at law360.com reports that a New York federal judge found the terms of Puerto Rico's debt restructuring plan bars holders of bonds issued by the island's public electric utility from lodging a claim against the Puerto Rican government for damages related to the utility's debt. This decision stems from a 2022 restructuring plan approved under the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA), which aimed to resolve over $70 billion in debt held by the island and its agencies. Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Ã¢â‚¬Å“RickyÃ¢â‚¬Â Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (Ã¢â‚¬Å“PROMESAÃ¢â‚¬Â). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies Ã¢â‚¬â€ Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and OÃ¢â‚¬â„¢Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. SILVER AIRWAYS: Soneet Kapila Named Chapter 11 Trustee ------------------------------------------------------ The U.S. Trustee for Region 21 appointed Soneet Kapila of Kapila Mukamal as Chapter 11 Trustee for Silver Airways, LLC. The appointment was made pursuant to the order from the U.S. Bankruptcy Court for the Southern District of Florida on June 25. The Chapter 11 trustee can be reached at: Soneet R. Kapila Kapila Mukamal 1000 South Federal Highway, Suite 200 Fort Lauderdale, FL 33316 Tel: (954) 761-1011 Email: skapila@kapilamukamal.com 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. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: EU Official Sees Hope Amid Carbon Tax Threat --------------------------------------------------------------- Trinidad and Tobago Guardian reports that Dareece Polo at Trinidad and Tobago Guardian reports that with T&T's energy sector bracing for the impact of the European Union's Carbon Border Adjustment Mechanism (CBAM) in early 2026, one EU official says there's still reason for optimism and potential for transformation. CBAM is a policy designed to tax the carbon emitted during the production of certain goods imported into the EU, with the goal of cutting emissions and preventing carbon leakage by incentivising cleaner production methods globally, according to Trinidad and Tobago Guardian. As one of the world's largest exporters of ammonia, T&T is expected to feel the effects of CBAM directly, the report notes. In 2024, the country produced more than four million tonnes of ammonia, nearly all of which was exported with 21 per cent sold to the EU and UK, the report relays. Amidst growing concerns, Ivan Ovando-Lacroux, international cooperation officer for Latin America and the Caribbean at the EU's Directorate-General for International Partnerships, told Guardian Media that the EU and T&T have reached an advanced stage in a joint wind energy exploration project, the report discloses. The initiative aims to repurpose existing offshore platforms between Trinidad and Venezuela to host wind turbines, the report says. Ovando-Lacroux disclosed that a workshop is scheduled for July 23 to develop a concrete action plan for implementation, with expectations that turbines could be installed by 2027, the report relays. He said the use of wind energy in ammonia production could significantly help T&T meet CBAM compliance, reducing the risk of costly border taxes on exports to the EU, the report notes. But not everyone is convinced. Energy strategy and policy advisor Anthony Paul is urging the country to take a more critical look at the EU-supported plan, the report says. He argues that wind power may not be the right fit for T&T, either economically, geographically, or developmentally, the report relays. "Why are the European Union and the Americans pushing us to biofuels? Because they want to sell us solar and wind? They struggle, even with all the wind they have, to get consistent power from wind," he said. Paul questioned whether the proposed technologies genuinely reflect T&T's national interests, or whether they serve external agendas under the guise of clean energy partnerships, the report notes. He emphasised the importance of investing in homegrown, climate-appropriate renewable technologies that create real employment and long-term development, the report relays. "Now, biofuels, biodiesel and bioethanol can go directly into your car or your truck or your generators. They can use the same pumps they have, the same tank wagons, the same refinery, in fact, right? So, we can actually use installed infrastructure. And if we do biotechnology research, biofuels research, we can have a big impact on agriculture. Wind and solar don't give us a lot of high-level jobs, you know," he warned, the report discloses. Meanwhile, climate change expert Steve Maximay is urging the Government to focus on climate justice and skilled negotiation, the report says. He also noted that the transition should be fair and strategic, the report notes. "It is about understanding principles like just transition. In other words, we are being forced to transition how we produce all kinds of things, including things in the energy sector. And I'm saying that if you have somebody with enough climate justice and expertise on your team, you can negotiate those taxes downwards significantly," he added. As debate around the project grows, Energy Minister Dr Roodal Moonilal has not responded to multiple requests for comment. TRINIDAD & TOBAGO: Forex Shortage Forces Firms to Look to Jamaica ----------------------------------------------------------------- RJR News reports that Trinidad and Tobago's ongoing foreign exchange shortage is forcing several business leaders to look outside the country for solutions. Many are now turning to Jamaica, either to raise capital or access new markets, according to RJR News. One example is PriceSmart, which is seeking to raise US$50 million in Jamaica with the help of GK Capital Management, the report notes. In a similar move, the Mayberry Group recently assisted A.S. Bryden Holdings, a Trinidad-based subsidiary of the Seprod Group, in refinancing US$14.38 million in debt, the report relays. The company has also acquired an 80% stake in Caribbean Producers as part of efforts to boost its ability to earn foreign exchange, the report adds. ********* 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 * * *