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250814.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, August 14, 2025, Vol. 26, No. 162 Headlines B A H A M A S FTX GROUP: Judge Denies Charitable Donation Claim in Ch. 11 B R A Z I L BRASKEM S.A: Fitch Lowers IDR to 'BB-' & Puts on Watch Negative CESP: S&P Affirms 'BB' Issuer Credit Rating, Outlook Stable C A Y M A N I S L A N D S SHELF DRILLING: ADES Transaction No Impact on Moody's 'B3' CFR SVB FIN'L: Ordered to Contest Ch. 11 Claims Amid Standing Fight C H I L E CHILE: IDB OKs $15M Loan to Support Pension Reform Implementation D O M I N I C A N R E P U B L I C DOMINICAN REP: Courts Private Sector for Fiscal Stability & Growth DOMINICAN REPUBLIC: Unveils 85-Pronged Strategy to Drive Growth P E R U PERU: IDB Supports Stronger Public Policy with $46.7 Million Loan P U E R T O R I C O PALMAS ATHLETIC: Case Summary & 12 Unsecured Creditors POPULAR INC: Moody's Affirms 'Ba1' Senior Unsecured Debt Rating SILVER AIRWAYS: Trustee Taps E-Hounds Inc as Technology Consultant - - - - - ============= B A H A M A S ============= FTX GROUP: Judge Denies Charitable Donation Claim in Ch. 11 ----------------------------------------------------------- Clara Geoghegan at law360.com reports that a Delaware bankruptcy judge rejected a former FTX Trading Ltd. customer's nearly $700,000 claim, saying he failed to show that funds donated to the cryptocurrency platform's charity were later clawed back. About FTX Group FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9, 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. =========== B R A Z I L =========== BRASKEM S.A: Fitch Lowers IDR to 'BB-' & Puts on Watch Negative --------------------------------------------------------------- Fitch Ratings has downgraded Braskem S.A.'s Issuer Default Ratings (IDRs) to 'BB-' from 'BB'. Fitch has also downgraded Braskem America Finance Company's senior unsecured ratings to 'BB-' from 'BB' and Braskem Netherlands Finance B.V.'s senior unsecured rating and subordinated rating to 'BB-' from 'BB' and to 'B' with a Recovery Rating of 'RR6' from 'B+'/'RR4', respectively. Furthermore, Braskem S.A.'s National Scale rating was downgraded to 'AA(bra)' from 'AAA(bra)'. The ratings were placed on Negative Watch. The downgrade reflects Braskem's persistently weak financial profile, especially after Q2 results, leading to a higher net leverage forecast (excluding Braskem Idesa) exceeding 'BB' rating triggers for 2025-2026. Industry challenges and dependence on government decisions limit performance improvement. The Negative Watch signals tighter liquidity driven by recurring cash burn and operational underperformance that, combined with intensifying event risks, could limit the ability to access capital markets along with larger debt maturities in the medium term. Key Rating Drivers Metrics Commensurate with 'B' Category: Braskem's financial profile remains under significant stress, and weak Q2 results prompted Fitch to revise its net leverage forecast (excluding Braskem Idesa) to the low teens for 2025 and 2026 — well above 'BB' rating triggers. This elevated indebtedness is a direct result of prolonged weak petrochemical spreads and sustained sector headwinds. The slower deleveraging and the company's current financial position offer little buffer against additional market, operational or macroeconomic shocks. Braskem's path to deleveraging is largely dependent on industry recovery, leaving it vulnerable should adverse conditions persist or intensify. FCF to Remain Negative: In Fitch's view, Braskem's free cash flow before disbursements related to Alagoas is expected to remain negative through at least 2027, despite management's ongoing efforts to reduce costs and preserve cash. Fitch projects EBITDA of approximately USD600 million in 2025 and USD700 million in 2026, but these levels remain insufficient to offset rising net working capital requirements and annual maintenance investments of USD400 million. The persistent cash burn and the need to support operations amid subdued EBITDA generation erodes financial flexibility and may signal rising refinancing risks. Challenged Liquidity, Weak Cash Generation: Braskem's liquidity, previously a core strength, has significantly declined in Fitch's view. While management's cash preservation and cost-reduction initiatives may offer some relief, Fitch views the company's ability to withstand prolonged market volatility as a key risk, particularly as liquidity buffers diminish. The growing challenge of refinancing upcoming debt maturities — especially the 2028 bonds, followed by those due in 2030 and 2031 — heightens this risk. Moreover, market speculation regarding the potential sale of Novonor's stake adds another layer of uncertainty. Volatile Industry: The petrochemical sector is experiencing an unprecedented downturn, characterized by significant margin compression due to persistent global overcapacity and fundamental changes in supply and demand dynamics. Elevated volatility has increased uncertainty around earnings recovery, making it difficult for Braskem to restore credit metrics consistent with higher rating categories. The expected industry rationalization, such as the shutdown of less profitable plants, has not occurred at the necessary pace. This may be attributable to government support, subsidies for certain companies, or high contractual costs which are delaying the supply-demand balance. Persistent Event Risks Increase Uncertainty: The speculative possibility that a new controlling shareholder could initiate debt renegotiations adds further instability to an already complex situation. Fitch believes that if a binding offer materializes and a transaction proceeds, Petrobras is unlikely to have enough blocking rights over new shareholder decisions, although it has indicated its intentions to increase influence by revising the current shareholder agreement and raising its stake, though not above 50%. Solid Business Profile: Braskem retains a solid business profile as the seventh largest petrochemical company globally and the market leader in Brazil. Its integrated operations and dominant positions in key product segments provide competitive advantages throughout the cycle. Nonetheless, the company faces the challenge of reducing its reliance on naphtha to enhance its positioning on the global ethylene cost curve. The development of the green polyethylene market could be transformational for the company in the long run. Peer Analysis Braskem's ratings are below its main peers due to persistently weak credit metrics, negative free cash flow and high leverage (projected in the low teens), alongside tightening liquidity. These challenges are more acute than those faced by its investment-grade peers. Westlake Corporation (BBB/Stable) benefits from cost-advantaged North American feedstocks, low leverage (below 2x), robust FCF and strong vertical integration, supporting a resilient credit profile and ample liquidity. Dow Inc. (BBB/Stable) retains its rating through significant scale, global diversification and strong liquidity (over USD2 billion cash, USD8 billion in credit), despite elevated leverage (approaching 4x) and negative FCF. Dow's diversified business and flexible feedstock base help moderate volatility. LyondellBasell Industries N.V. (BBB/Stable) is distinguished by large scale, broad diversification and feedstock flexibility, which support stable EBITDA margins and strong liquidity. Its balanced capital allocation and resilient pre-dividend cash flow contrast with Braskem's persistent cash burn. Orbia Advance Corporation, S.A.B. de C.V. (BBB/Stable) is supported by product and geographic diversification, vertical integration and solid cash generation, with leverage expected to be around 3.0x through 2026. Orbia's consistent efficiency and broad exposure reduce volatility relative to Braskem. Alpek, S.A.B. de C.V. (BBB-/Negative) faces high leverage and profitability pressures but maintains investment-grade status through a resilient business model, positive cash flow and manageable maturities. Key Assumptions - Brazil polyethylene projected revenue of USD4.0 billion, USD4.0 billion and USD4.1 billion during 2025-2027; - Brazil polypropylene projected revenue of USD2.0 billion USD2.0 billion and USD2.0 billion during 2025-2027; - Brazil vinyls projected revenue of USD600 million, USD600 million and USD650 million during 2025-2027; - Brazil ethylene/propylene projected revenue of USD800 million, USD950 billion and USD950 billion during 2025-2027; - U.S. and Europe polypropylene projected revenue of USD3.0 billion, USD3.3 billion and USD3.6 billion during 2025-2027; - Polyethylene-ethane reference spreads of USD770/ton in 2025, USD790/ton in 2026 and USD810/ton in 2027; - Polyethylene-naphtha reference spreads of USD440/ton in 2025, USD450/ton in 2026 and USD460/ton in 2027; - Polypropylene-propylene reference spreads of USD400/ton in 2025, USD400/ton in 2026 and USD450/ton in 2027; - Polyvinyl chloride reference spreads of USD330/ton in 2025, USD340/ton in 2026 and USD390/ton in 2027; - Annual maintenance capex of approximately USD400 million; - No dividends to shareholders during the analysis horizon. Recovery Analysis The recovery analysis for Braskem Netherlands Finance B.V.'s subordinated notes assumes that Braskem would be a going concern (GC) in bankruptcy and that it would be reorganized rather than liquidated. GC Approach: - A 10% administrative claim; - The GC EBITDA is estimated at USD1 billion. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the valuation of Braskem; - EV multiple of 5.0x. With these assumptions, Fitch's waterfall generated recovery computation (WGRC) for the subordinated notes is in the 'RR6' band. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Sustained negative FCF in the next six to 12 months that significantly reduces financial flexibility; - Any event concerning the change of control that hinders capital market access could lead to a multi-notch downgrade; - The non-renewal of the revolving credit facility due in December 2026, resulting from stressed financing conditions; - Material additional contingent claims for the geological event in Alagoas; - Material financial support to Braskem Idesa; - Net debt/EBITDA above 5.5x, on average through the cycle, excluding Braskem Idesa; - Sustained EBITDA interest coverage below 1.0x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Net debt/EBITDA below 4.0x on average through the cycle, excluding Braskem Idesa; - Neutral to positive FCF through the cycle, excluding disbursements for Alagoas. Liquidity and Debt Structure Braskem's liquidity position has steadily worsened since 2022, when the company held USD2.4 billion in readily available cash and marketable securities — enough to cover all liabilities for the next 60 months. By June 30, 2025, this cushion had diminished to USD1.7 billion, providing only 30 months of coverage, while gross debt rose from USD6.8 billion to USD8.5 billion. Braskem's financial flexibility is supported by a USD1 billion unused revolving credit facility maturing in 2026. However, Fitch views the risk of liquidity stress as increasingly elevated if the current rate of cash burn persists over the coming year, particularly as the sizable debt amortization scheduled for January 2028 draws nearer. Issuer Profile Braskem S.A. produces and sells chemicals, petrochemicals, fuels, steam, water, compressed air and industrial gases. The company has plants in Brazil, the U.S., Germany and Mexico that produce thermoplastic resins such as polyethylene, polypropylene and polyvinyl chloride. 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 Braskem S.A. has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to the operations' disruption and large cash outflows triggered by the geological event in Alagoas, which has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. Braskem S.A. has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to the reparation costs incurred following the geological event in Alagoas, to relocate over 14,000 families from neighboring areas, which has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. 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 Prior ----------- ------ -------- ----- Braskem Netherlands Finance B.V. senior unsecured LT BB- Downgrade BB subordinated LT B Downgrade RR6 B+ Braskem America Finance Company senior unsecured LT BB- Downgrade BB Braskem S.A. LT IDR BB- Downgrade BB LC LT IDR BB- Downgrade BB Natl LT AA(bra) Downgrade AAA(bra) senior unsecured Natl LT AA(bra) Downgrade AAA(bra CESP: S&P Affirms 'BB' Issuer Credit Rating, Outlook Stable ----------------------------------------------------------- S&P Global Ratings affirmed its 'BB' global scale and 'brAAA' national scale credit ratings on Brazil-based hydropower generator CESP -- Companhia Energetica de Sao Paulo. At the same time, S&P revised downward CESP's stand-alone credit profile (SACP) to 'b+' from 'bb'. The outlook remains stable, reflecting S&P's view that CESP will remain a key asset for Auren, given its position as the group's largest subsidiary, its solid profitability and strong dividend contributions. CESP will conduct a capital reduction of R$2.6 billion, after the conclusion of its R$2.1 billion debentures issuance, to support liability management efforts at its parent company, Auren Energia S.A. (not rated). The capital reduction should increase CESP's leverage. S&P said, "More specifically, we expect a deterioration in the company's credit metrics, with debt to EBITDA rising to more than 7x and FFO to debt falling to about 5% in 2025, from our current expectations of approximately 3.5x and 20%, respectively. CESP will finance the capital reduction with the proceeds from the recently announced 14th debenture issuance of R$2.1 billion and cash equivalents of R$500 million. As a result, we revised CESP's SACP downward to 'b+' from 'bb' and its financial risk profile to highly leveraged from significant. Still, we consider CESP's concession until April 2056 and its ability to generate surplus energy, to meet other generation companies' shortfalls within the group, as key strengths of its stand-alone credit quality." The transaction, already approved by the Brazilian Electricity Regulatory Agency (the Portugues acronym for which is ANEEL), should conclude in the third quarter of 2025. This is part of the group's broader efforts to optimize its capital structure and reduce financing costs at the holding level after the latter's October 2024 acquisition of AES Brasil's assets. S&P said, "We believe Auren would provide financial support to CESP, in any circumstance, if needed. Despite CESP's weaker individual credit profile, we consider it the group's main asset, which supports our decision to affirm the 'BB' ratings. CESP accounts for at least 15% of the group's consolidated cash flow, underpinned by its long remaining concession, stable cash generation from surplus energy, and its consistent role as a strong dividend contributor. Following the transfer of most of its bilateral and trading contracts to Auren's commercialization arm, CESP's energy production comfortably exceeds its 230 megawatts (MW) of regulated market contracts. The company sells this surplus to the group's other subsidiaries and to the holding to meet their contractual obligations. Additionally, Auren manages its subsidiaries in an integrated manner—including cash holdings, financial liabilities, and the group's broader energy balance. Moreover, given CESP's relevance to the group, debt acceleration at the subsidiary level would trigger a cross-default on Auren's financial obligations. This reinforces our view that Auren would step in to provide support to CESP, if necessary." Auren is advancing in AES Brasil's assets turnaround. Since completing the acquisition in November 2024, Auren has been capturing synergies of approximately R$250 million, primarily driven by selling, general, and administrative cost reductions and improved operational efficiency of the recently acquired assets. For example, the group centralized the operations of all assets into a single command center and has been enhancing capacity utilization of the acquired wind farms—boosting asset availability to 92% in the second quarter of 2025 from 86% in the same period of the previous year. Auren targets reaching an average availability rate of 95% by year-end. Additionally, along with the current transaction, the group is finalizing the liability management related to the bridge debentures used to finance the acquisition. It prepaid R$3.2 billion in April 2025 and plans to amortize the remaining R$2.2 billion in the coming months, thereby avoiding the step-ups in interest rates, as set in the debt documentation each October until 2028. As a result, we continue to expect Auren's debt to EBITDA at 5.0x–5.5x and FFO to debt of 7%–10% in 2025 and 2026, improving to 4.5x–5.0x and 10%–12%, respectively, by 2027. S&P said, "The stable outlook on CESP reflects the credit quality of Auren and our view that the former will remain a key asset for its parent, given its position as the group's largest subsidiary, its solid profitability, and strong dividend contributions. While we now expect CESP's leverage to increase following the capital reduction and debenture issuance—leading to net debt to EBITDA ratio of 7x–9x in the next few years—we believe this is a strategic move to optimize Auren's overall capital structure. In our view, Auren would be willing and able to provide financial support to CESP if needed, which continues to underpin CESP's creditworthiness. "We could downgrade CESP if we perceive a lower likelihood of financial support from Auren, or if the creditworthiness of the latter deteriorates, with debt to EBITDA surpassing 5.5x and FFO to debt doesn't converge to our forecast of about 9% in 2026. That could occur if the group takes an aggressive stance on debt-funded acquisitions, or if it fails to capture material operational and administrative synergies from the assets it acquired. "We do not expect to upgrade CESP in the next 12 months due to the sovereign rating cap that constrains Auren's credit quality, and consequently, that of CESP. We could revise CESP's SACP upward if its gross debt falls or if its cash generation increases, resulting in debt to EBITDA below 5x and/or FFO to debt above 12%. That could happen if CESP sells its energy surplus at a higher price to Auren of if it incorporates new assets without debt additions." =========================== C A Y M A N I S L A N D S =========================== SHELF DRILLING: ADES Transaction No Impact on Moody's 'B3' CFR -------------------------------------------------------------- Moody's Ratings says Shelf Drilling, Ltd.'s (Shelf Drilling or the company) B3 long term corporate family rating, B3-PD probability of default rating and the B3 instrument rating of the $1,095 million backed senior secured notes (SSNs) issued under the wholly owned subsidiary Shelf Drilling Holdings, Ltd. are unaffected by the acquisition offer by ADES International Holding, Ltd (ADES). The outlook for both entities is unaffected at stable. On August 05, Shelf Drilling, Ltd. announced that it has received a cash offer from ADES International Holding, Ltd (ADES) to acquire all outstanding shares of the company. The transaction is expected to close in the fourth quarter of 2025, subject to customary closing conditions. The proposed transaction values the equity of Shelf Drilling at approximately $400 million and an enterprise value of approximately $1.6 billion. The acquisition is contingent upon receiving approval from at least two-thirds of shareholder votes cast at the Extraordinary General Meeting. If approved by shareholders and relevant regulatory authorities, the transaction will trigger a change of control clause under the existing legal documentation for the $1,095 million backed SSNs and the $315 million backed SSNs issued by Shelf Drilling North SEA Holdings LTD. In conjunction with the closing of the transaction, ADES intends to issue call notices for both backed SSNs. Following the full repayment of the $1,095 million backed SSNs, the B3 instrument rating will be withdrawn. Shelf Drilling's B3 CFR reflects the company's (1) exposure to geographically diversified shallow water oil basins; (2) track record of signing and renewing contracts in a competitive environment and having long-standing relationships with blue-chip companies; and (3) adequate liquidity and adequate credit metrics during the last two years. Conversely, the rating is constrained by (1) the company's exposure to a cyclical operating environment susceptible to uncertain global oil markets and macroeconomic developments, both increasing re-contracting risk; (2) a track record of high capital spending requirements for a relatively old fleet, excluding the 2022 acquisitions from Noble Drilling Corporation, which has a younger fleet; and (3) the company's limited track record of positive free cash flow generation and history of aggressive capital structures. COMPANY PROFILE Shelf Drilling, Ltd. is a Cayman Islands incorporated holding company that owns 33 jackup rigs including 5 rigs through a full ownership in its subsidiary, Shelf Drilling North SEA Holdings LTD. The company conducts drilling operations through various subsidiaries in the Southeast Asian, Middle Eastern, Indian, West African, North Sea and North African/Mediterranean markets. Shelf Drilling generated revenues of $976 million and Moody's-adjusted EBITDA of $287 million for the last 12 months ended March 31, 2025. The company is listed on the Oslo Stock Exchange since June 2018. SVB FIN'L: Ordered to Contest Ch. 11 Claims Amid Standing Fight --------------------------------------------------------------- Clara Geoghegan of Law360 reports that on August 5, 2025, the former parent company of Silicon Valley Bank clashed with the liquidators of its Cayman Islands branch over standing in a $294 million lawsuit, leading a New York bankruptcy judge to direct SVB Financial to formally object to the claims on the grounds that they were filed too late. About SVB Financial Group SVB Financial Group (Pink Sheets: SIVBQ) is a financial services company focusing on the innovation economy, offering financial products and services to clients across the United States and in key international markets. Prior to March 10, 2023, SVB Financial Group owned and operated Silicon Valley Bank, a state chartered bank. During the week of March 6, 2023, Silicon Valley Bank, Santa Clara, CA, experienced a severe "run-on-the-bank." On the morning of March 10, the California Department of Financial Protection and Innovation seized SVB and placed it under the receivership of the Federal Deposit Insurance Corporation. SVB was the nation's 16th largest bank and the biggest to fail since the 2008 financial meltdown. On March 17, 2023, SVB Financial Group sought Chapter 11 bankruptcy protection (Bankr. S.D.N.Y. Case No. 23-10367). The Debtor had assets of $19,679,000,000 and liabilities of $3,675,000,000 as of Dec. 31, 2022. The Hon. Martin Glenn is the bankruptcy judge. The Debtor tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Centerview Partners, LLC as investment banker; and Alvarez & Marsal North America, LLC as restructuring advisor. William Kosturos, a partner at Alvarez & Marsal, serves as the Debtor's chief restructuring officer. Kroll Restructuring Administration, LLC, is the claims and noticing agent and administrative advisor. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Debtor's Chapter 11 case. The committee tapped Akin Gump Strauss Hauer & Feld, LLP as bankruptcy counsel; Cole Schotz P.C. as conflict counsel; Lazard Freres & Co. LLC as investment banker; and Berkeley Research Group, LLC as financial advisor. ========= C H I L E ========= CHILE: IDB OKs $15M Loan to Support Pension Reform Implementation ----------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a loan of up to $15 million to support Chile in the implementation of its pension reform. This operation, approved by the IDB's Executive Board, aims to improve pensions and their ability to ensure an adequate standard of living and facilitate access to pension information through the institutional strengthening of the organizations responsible for the Chilean Pension System (SPC). The program includes the development of new technological and operational capacities at the Social Security Institute and the Superintendency of Pensions, including the creation of a technological platform for the collection and payment of benefits, the automation of supervision processes, and the implementation of a new Pension Information System, which will be accessible to all citizens, including people with visual disabilities and neurodiversity. The operation will also finance a communication and pension education strategy, as well as the strengthening of interoperability between system institutions. These measures are expected to directly benefit more than 11 million people affiliated with the Chilean pension system, including around 500,000 employers who will make contributions for approximately 5.9 million workers. The establishment of the social security pension will allow the payment of the benefit for years contributed to approximately 1,000,000 pensioners and the compensation for life expectancy to approximately 750,000 retired women. The IDB loan is results-based, has a disbursement period of four years, and a grace period of five and a half years. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REP: Courts Private Sector for Fiscal Stability & Growth ------------------------------------------------------------------ Dominican Today reports that in a high-profile meeting at the Ministry of Finance's Matias Ramon Mella Hall, Finance and Economy Minister Magin Diaz convened a group of the country's most influential business leaders to push a message of fiscal transparency and to rebuild trust between the state and the private sector. The encounter, part of a broader series of outreach sessions, aimed to surface concrete proposals to strengthen public finances and spur sustainable economic growth. Diaz framed the talks as a practical exercise in consensus-building. "We are committed to maintaining an open and constructive dialogue with the business community, because only by working together can we strengthen confidence, economic stability and sustainable development," he told attendees, according to the ministry's account of the meeting. Business leaders praised the minister's accessibility and signaled readiness to collaborate on measures to shore up fiscal health. The session brought together senior executives from across the economy, including Ligia Bonetti (Grupo SID), Samir Rizek (GME / Alpha Inversiones), Manuel Corripio (Grupo Corripio), Francesca Rainieri (AMCHAMDR / Grupo Puntacana) and René Grullón (Grupo Popular), among others, a roll call that underscored the meeting's political and economic weight. Officials described the gathering as an opportunity to identify targeted actions that could improve competitiveness and public finances without destabilizing growth. Participants highlighted the need for transparent policy processes and predictable regulation as preconditions for attracting investment and expanding credit to productive sectors. While the meeting produced no immediate policy announcements, analysts say its real value lies in rebuilding lines of communication at a time when clear, credible fiscal governance is critical to sustaining investor confidence. Minister Díaz signaled that these consultations will continue, suggesting that further, more technical dialogues with sector representatives are likely as the government refines its fiscal strategy. 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. DOMINICAN REPUBLIC: Unveils 85-Pronged Strategy to Drive Growth --------------------------------------------------------------- Dominican Today reports that President Luis Abinader led a high-level assembly at the National Palace, where representatives from 12 sectoral committees, government officials and business and social leaders prioritized 85 initiatives under the "Meta RD 2036" development plan. At the meeting organized by the National Competitiveness Council, committee coordinators in agriculture, commerce, construction, energy, finance, industry, mining, SMEs, technology, free zones, tourism and cross-sector policy each presented four top proposals, according to Dominican Today. Abinader urged the group to formalize these recommendations into a new National Development Strategy, complete with clear objectives, timelines and designated responsible parties, the report notes. "We must move from words to action," the president said. "This critical path will define what we do, when we do it and who carries it out." Tourism emerged as a cornerstone of the agenda, the report relays. Industry leader Frank Rainieri outlined a strategic plan to diversify offerings, regulate short-term rentals, manage sargassum and upgrade road infrastructure, the report discloses. "We need to organize our artisans so tourists spend more here," Rainieri argued, calling for faster migration procedures at ports and airports and updated training programs, the report says. Other key proposals included a one-stop window for SMEs, expanded digital-innovation centers under the Information Technology Agreement, a strengthened national logistics hub and improved public-private collaboration in the free-zone sector, the report relays. The cross-sector committee recommended STEM scholarships, territorial-planning measures and industrial chain integration, the report notes. Abinader announced follow-up meetings in the coming weeks to categorize actions into short-term measures requiring no extra funding, medium-term projects needing moderate resources or consensus, and long-term initiatives demanding significant investment and structural planning, the report discloses. "Twenty to twenty-five percent of these actions can start immediately," he said. "The rest must have deadlines and assigned leaders. It's time to double our economy." The session closed with an official photograph of the president alongside the sector coordinators, sealing their shared commitment to a more competitive Dominican Republic by 2036, 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. ======= P E R U ======= PERU: IDB Supports Stronger Public Policy with $46.7 Million Loan ----------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved $46.7 million loan to Peru to improve and broaden the services of the country's National Strategic Planning Center, which runs the National Strategic Planning System. The program will build the Peruvian government's capacity to plan, coordinate, and evaluate national, regional, and local public policy. It will fund improved strategic planning, multi-level and cross-sector governance, and enhanced data and information and communication technology management. The operation aligns with the IDB Country Strategy with Peru 2022–2026 and will help fill knowledge gaps between system operators, make public policies more efficient, and encourage more civic engagement in designing development plans. "This program is a milestone in the IDB's support for public sector management. It will set an example for countries in the region to follow because of how strategic planning will add value to the government's financial management, especially in public investment systems," explained Juan Cruz Vieyra, Lead Specialist in Modernization of the State at the IDB. The project will directly benefit Peruvian citizens, especially in municipalities that will receive goods and services under strategic plans. It will also build the capacities of multiple groups of civil servants: staff at the National Strategic Planning Center, planning officials at all three levels of government, and those running administrative systems at other government entities. The project will broaden the reach of strategic plans designed using modernized methods. It will make public spending more efficient through coordinated planning with budget and investment systems, mainstream crosscutting approaches to planning instruments, and strengthen the National Strategic Planning Center's technological infrastructure and data management capacities. The project takes a territory-based and multidimensional approach to optimize governance, technical capabilities, procedures, and IT solutions for integration and interoperability with the Integrated Financial Administration System, as recommended by the Organization for Economic Co-operation and Development. The loan is structured as a specific investment and has a 20-year repayment term and an eight-year grace period. A local partner contribution of $10.8 million brings the program's overall funding to $57.5 million. ===================== P U E R T O R I C O ===================== PALMAS ATHLETIC: Case Summary & 12 Unsecured Creditors ------------------------------------------------------ Debtor: Palmas Athletic Club Corp. Country Club Drive 1 Palmas Del Mar Humacao, PR 00791 Business Description: Palmas Athletic Club Corp. owns and operates a 420-acre recreational property within Palmas Del Mar Resort in Humacao, Puerto Rico. The site includes two 18-hole golf courses, a 22,200-square-foot clubhouse, a 5,600-square-foot beach clubhouse, and related facilities. Chapter 11 Petition Date: August 4, 2025 Court: United States Bankruptcy Court District of Puerto Rico Case No.: 25-03489 Debtor's Counsel: Charles A. Cuprill Hernandez, Esq. CHARLES A. CUPRILL, PSC, LAW OFFICES 356 Calle Fortaleza Second Floor San Juan, PR 00901 Tel: 787-977-0515 E-mail: cacuprill@cuprill.com Debtor's Financial Consultant: CPA LUIS R. CARRASQUILLO & CO, PSC Total Assets: $16,793,944 Total Liabilities: $36,514,983 The petition was signed by Hector Rosario as general manager. A full-text copy of the petition, which includes a list of the Debtor's 12 unsecured creditors, is available for free on PacerMonitor at: https://www.pacermonitor.com/view/NQJUL4A/PALMAS_ATHLETIC_CLUB_CORP__prbke-25-03489__0001.0.pdf?mcid=tGE4TAMA POPULAR INC: Moody's Affirms 'Ba1' Senior Unsecured Debt Rating --------------------------------------------------------------- Moody's Ratings has affirmed the ratings and assessments of Popular, Inc. and those of its subsidiaries (collectively referred to as "Popular"). The parent company is rated Ba1 for senior unsecured debt. Its bank subsidiary, Banco Popular de Puerto Rico, has an baa3 baseline credit assessment (BCA), long- and short-term deposits ratings of Baa1/Prime-2, long-term issuer rating at Ba1, long- and short-term Counterparty Risk Ratings of Baa3/Prime-3, and long- and short-term Counterparty Risk Assessments of Baa2(cr)/Prime-2(cr). The outlooks were changed to positive from stable on Popular, Inc.'s senior unsecured debt rating and on Banco Popular de Puerto Rico's long-term issuer and deposit ratings. RATINGS RATIONALE Popular's rating affirmation and positive outlook are supported by its enduring strong capitalization which support its financial resiliency to a geographically-concentrated island economy, as well as continued improvements of the bank's asset quality as the Puerto Rico economy has continued to experience positive developments such as a historical low unemployment rate and stabilized labor force participation since its bankruptcy in 2017. Moody's believes that Puerto Rico's banking operating environment has strengthened in the past decade. The long-term consolidation trend of the island's banking sector led to higher operating margins and stronger franchise value for remaining banks, and Popular is the largest financial institution in Puerto Rico with deposit market share of 65% as of June 30, 2024. While Puerto Rico continues its restructuring process following its 2017 bankruptcy declaration, Moody's views the banking sector's high consolidation and the sustained flow of federal aid earmarked for development initiatives as key mitigants against the island's vulnerability to natural disasters. Popular's capitalization has remained strong, with tangible common equity to risk-weighted assets (TCE/RWA) of 15.4% as of March 31, 2025, one of the highest among rated U.S banks. This ratio has been above 15% for the past five years as management has been conservative on capital return during periods of heightened macro uncertainties, a credit positive. Popular's strong deposit franchise is driven by its dominant market position in Puerto Rico where it enjoys low deposit beta for its retail deposits as well as offering market-leading pricing power supporting ongoing profitability and liquidity. Asset quality remains a credit challenge, as Puerto Rico's weaker economy, compared to mainland US, is reflected in Popular's high historical problem loan to gross loan ratio. This ratio was 1.8% as of March 31, 2025, exceeding the median of rated U.S peers. However, Moody's expects that asset quality will continue to benefit from the improving local economy. Moody's assessments also incorporates the portfolio diversification provided by Popular's mainland US loan portfolio. The positive outlook is driven by Moody's views that the bank's solid capital and liquidity profile will be sustained over the medium term without any material deterioration in asset quality. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Popular's ratings could be upgraded if Moody's sees sustained improvement in the operating conditions for banks in Puerto Rico that leads to a reduction in problem loans, capitalization as measured by TCE/RWA continues to exceed 14%, and profitability and liquidity are maintained at current level. Given the positive outlook, a downgrade is unlikely in the near-term. Popular's outlook could return to stable if its TCE/RWA declines below 14%, if liquidity weakens from current level, or if asset quality starkly deteriorates. LIST OF AFFECTED RATINGS Issuer: Popular, Inc. Affirmations: Junior Subordinate Shelf (Local Currency), Affirmed (P)Ba2 Subordinate Medium-Term Note Program (Local Currency), Affirmed (P)Ba1 Preferred Stock Non-cumulative (Local Currency), Affirmed Ba3 (hyb) Senior Unsecured Medium-Term Note Program (Local Currency), Affirmed (P)Ba1 Senior Unsecured (Local Currency), Affirmed Ba1 POS from STA Outlook Actions: Outlook, Changed To Positive From Stable Issuer: Banco Popular de Puerto Rico Affirmations: Adjusted Baseline Credit Assessment, Affirmed baa3 Baseline Credit Assessment, Affirmed baa3 ST Counterparty Risk Assessment, Affirmed P-2(cr) LT Counterparty Risk Assessment, Affirmed Baa2(cr) ST Counterparty Risk Rating (Foreign Currency), Affirmed P-3 ST Counterparty Risk Rating (Local Currency), Affirmed P-3 LT Counterparty Risk Rating (Foreign Currency), Affirmed Baa3 LT Counterparty Risk Rating (Local Currency), Affirmed Baa3 LT Issuer Rating, Affirmed Ba1 POS from STA ST Bank Deposits (Local Currency), Affirmed P-2 LT Bank Deposits (Local Currency), Affirmed Baa1 POS from STA Outlook Actions: Outlook, Changed To Positive From Stable Issuer: Popular Capital Trust II Affirmations: Backed Preferred Stock (Local Currency), Affirmed Ba2 (hyb) Backed Preferred Shelf (Local Currency), Affirmed (P)Ba2 Issuer: Popular North America Capital Trust I Affirmations: Backed Preferred Stock (Local Currency), Affirmed Ba2 (hyb) Issuer: Popular North America, Inc. Affirmations: Backed Subordinate Medium-Term Note Program (Local Currency), Affirmed (P)Ba1 Backed Senior Unsecured Medium-Term Note Program (Local Currency), Affirmed (P)Ba1 PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Banks published in November 2024. Popular's "Assigned BCA" of baa3 is set five notches below the "Financial Profile" initial score of a1 to reflect the bank's operation concentration in Puerto Rico, which is susceptible to natural disaster-induced recession. SILVER AIRWAYS: Trustee Taps E-Hounds Inc as Technology Consultant ------------------------------------------------------------------ Soneet Kapila, the trustee appointed in the cases of Silver Airways, LLC and Seaborne Virgin Islands, Inc., seeks approval from the U.S. Bankruptcy Court for the Southern District of Florida to employ E-Hounds, Inc. as technology consultants. The firm will assist the Trustee in connection with electronically stored information (ESI), computer forensics, downloading and accessing files, data recovery and other matters associated therewith. The firm will be paid at its ordinary and usual hourly billing rates plus out-of-pocket expenses incurred. Adam S. Sharp, president of E-Hounds, assured the court that his firm hold or represent any interest adverse to the Debtors or the estates which respect to the matter on which it is to be employed. The firm can be reached through: Adam S. Sharp E-Hounds, Inc. 32815 US Highway 19 North, Suite 100 Palm Harbor, FL 34684 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, PC 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. ********* 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. 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