250815.mbx

250815.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, August 15, 2025, Vol. 26, No. 163 Headlines B A H A M A S FTX GROUP: Customers to Beef Up Case Against Fenwick & West B E R M U D A VALARIS LIMITED: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable B R A Z I L BRAZIL: Economy Starting to See Impact of High Rates JBS SA: To Build 2 Plants in Vietnam UNIGEL PARTICIPACOES: S&P Cuts ICR to 'D' on Missed Debt Payment C H I L E CHILE: Inflation Overshoots Forecasts D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Must Prioritize Local Workers, INFOTEP Says P U E R T O R I C O FIGUEROA TELEPHONE: Unsecureds to Split $1K Over 12 Months UNITED CONSTRUCTION: Seeks to Hire Ana Morales as Accountant - - - - - ============= B A H A M A S ============= FTX GROUP: Customers to Beef Up Case Against Fenwick & West ----------------------------------------------------------- Cointelegraph reports that customers of the bankrupt crypto exchange FTX are looking to update their lawsuit against Fenwick & West, one of the law firms formerly contracted by the company, claiming new information shows it was central to FTX's collapse. The criminal trial of former FTX CEO Sam Bankman-Fried and investigations in the exchange's bankruptcy proceedings "produced specific evidence supporting that Fenwick played a key and crucial role in the most important aspects of why and how the FTX fraud was accomplished," the FTX customers wrote in a court filing to amend their suit on Monday, Aug 11, notes the Cointelegraph. "Simply put, the FTX Fraud was only possible because Fenwick provided 'substantial assistance' by creating and approving the structures that allowed numerous frauds." They accused the law firm of agreeing to create, manage and represent "clearly conflicted companies" such as FTX's sister trading firm Alameda Research and its subsidiary North Dimension, "which purposefully had no safeguards to prevent the billions of dollars that were admittedly stolen," the report notes. The proposed amended complaint claimed that Bankman-Fried's criminal trial last year had uncovered new information about how Fenwick had assisted FTX, the report says. The group claimed in a separate filing that it "has learned many more details on Fenwick's relationship to FTX, based upon the interviews and cooperation of the settled FTX Insiders," the report relates. According to Cointelegraph, the filing claimed that an independent examiner appointed by the court handling FTX's bankruptcy proceedings "reviewed over 200,000 internal documents (many related directly to Fenwick) and concluded that Fenwick specifically was deeply intertwined in nearly every aspect of FTX Group's wrongdoing." According to the group, notes the report, the examiner found Fenwick had "exceptionally close relationships" with FTX's executive team and "facilitated conflicted intercompany transactions that misused customer assets." They also said the examiner accused Fenwick of creating shell companies "to obscure asset movements" and was behind implementing auto-deleting messages sent between FTX executives via the encrypted messaging app Signal. The group accused Fenwick of also implementing "other concealment practices that regulators and prosecutors later cited as obstruction" and claimed the law firm "knew that these actions would mislead investors and regulators." The proposed complaint adds two new state law claims, accusing Fenwick of violating securities laws in Florida and California over the exchange's cryptocurrency, FTX Token, discloses the report. The group accused the law firm of playing "an active role in designing, promoting, and facilitating the sale" of FTT, yield-bearing accounts offered by FTX and "interests in other FTX-controlled instruments," which they claimed were unregistered securities, Cointelegraph states. 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 E R M U D A ============= VALARIS LIMITED: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Valaris Limited's (Valaris) Long-Term Issuer Default Rating (IDR) at 'B+'. The Rating Outlook is Stable. Fitch has also affirmed the second lien secured notes due 2030 co-issued by Valaris and Valaris Finance Company LLC at 'B+' with a Recovery Rating of 'RR4'. Valaris' ratings reflect the company's continued execution on favorable, long-term contracts, growing backlog, positive FCF, sub-2.0x leverage profile and strong liquidity. The company's credit profile benefits from one of the largest fleets of offshore jackups and floaters and strong relationships with leading international and national oil companies (IOCs and NOCs). The company's profile is negatively affected by high volatility in day rates and rig utilization, combined with an asset-heavy business model and high operating leverage. Together, these factors result in considerable swings in EBITDA, depending on the industry cycle. Key Rating Drivers Favorable Long-Term Contracts, Pricing: Fitch views Valaris' newly announced long-term contracts favorably and projects solid EBITDA generation through 2027. In July, the company announced two new 2.5-year contracts with Occidental Petroleum Corp. (OXY) commencing in June 2026 which enhances the medium-term outlook for the company. Fitch projects EBITDA of around $580 million in 2025 and relatively flat EBITDA in 2026 with potential upside in 2027 if market conditions remain benign. Valaris's drillship average daily revenue continued to climb to around 410,000 in 2Q25 from 358,000 in 2Q24 which supports positive FCF generation through the medium-term. Positive FCF; Moderate Capex Spend: Fitch projects FCF of around $125 million in 2025 as Valaris completed a period of elevated capital spending and rig reactivations in 2023 and 2024. Fitch anticipates FCF will remain positive in 2026, despite additional capital expenditures for upgrades to the DS-15 and DS-17 rigs before work begins in the second half of 2026. Excess cash on the balance sheet, together with proceeds from the recently announced sale of the Valaris 247 jackup rig, is likely to be used for opportunistic share repurchases. Near-Term White Space: The offshore drillship market is experiencing some near-term white space in the contract timeline following some pauses in planning and decision-making from IOCs and NOCs. Fitch recognizes that three out of the four Valaris drillships with white space during 2H25 and 1H26 are entering into contracts starting in 2H26, supporting the medium-term outlook for the company. Fitch believes Valaris could find near-term opportunities to fill schedule gaps if they are economically attractive and fit within existing schedule, although management remains primarily focused on pursuing long-term opportunities for its high-spec rigs. Backlog on Growth Trajectory: Valaris secured over $1.0 billion of backlog since April, primarily from the OXY contracts, and around $2.0 billion of backlog for YTD 2025. The company's backlog increased to $4.7 billion in 2Q25 from $4.3 billion in 2Q24, which Fitch views favorably. Fitch believes revenue in 2026 and 2027 may exceed Fitch's expectations if the offshore drilling market remains strong and the global commodities markets remain supportive. Strengthening Jackup Segment: Fitch believes Valaris' jackup business enhances stability of cash flows through the cycle. Jackup day rates have not been as volatile as those for floating rigs, and global jackup utilization fell less dramatically than those for floaters in 2017. Valaris' jackup average daily revenue has been trending upward and reached 142,000 in 2Q25 from 120,000 in 2Q24 and the company has added around $770 million of jackup backlog YTD 2025. Adequate Leverage; Strong Liquidity: Fitch forecasts EBITDA leverage at around 1.9x in 2025 and 2026 and 2.5x at the mid-cycle as its commodity price assumptions decline toward $60/bbl Brent in 2028 and beyond. Valaris also maintains strong liquidity with over $500 million cash on hand and full availability under the $375 million revolver at 2Q25. The company also maintains a clear maturity schedule until its notes are due in 2030. Joint Venture with Saudi Aramco: Valaris has a 50% stake in an equity method-accounted joint venture (JV) with Saudi Aramco called Saudi Aramco Rowan Offshore Drilling Company (ARO). ARO is an offshore drilling company with contracts with Saudi Aramco. Fitch does not forecast any dividends from the JV. Fitch expects the company to fund capex through FCF generation and standalone debt without any cash calls from the partners. Peer Analysis Valaris' peers include Noble Corporation plc (BB-/Stable) and Seadrill Limited (B+/Stable). Valaris generates slightly lower margins than Noble, primarily due to its higher concentration of jackups, but its margins are similar to Seadrill's. Fitch expects Valaris' EBITDA to surpass Seadrill's in 2025 and over the medium term but remain below Noble's. Valaris' leverage profile is similar to Noble's following the Diamond acquisition, although Valaris has higher midcycle EBITDA leverage and a larger amount of gross debt than Seadrill. Key Assumptions - Brent oil price of $70/bbl in 2025, $65/bbl in 2026 and 2027 and $60/bbl thereafter; - $580 million of EBITDA in 2025 followed by Fitch price-linked EBITDA generation thereafter; - EBITDA margin increases to the mid-to-high 20s in 2025 and relatively flat in 2026, with modest decreases thereafter in line with the price assumptions; - Capex at $395 million in 2025, similar capex in 2026 and falling toward $250 million thereafter; - No dividends; - FCF mostly distributed as share buybacks. Recovery Analysis The recovery analysis assumes Valaris would be reorganized as a going concern (GC) in bankruptcy rather than liquidated. Fitch assumed a 10% administrative claim. Going Concern Approach Valaris' GC EBITDA estimate reflects Fitch's view of sustainable, post-reorganization EBITDA, upon which the agency bases the enterprise valuation. The GC EBITDA assumption for commodity price-sensitive issuers at a cyclical peak reflects the industry's move from top of the cycle commodity prices to midcycle conditions and intensifying competitive dynamics. The GC EBITDA assumption of $175 million equals EBITDA estimates for the midpoint between a distress year and near-term EBITDA expectations. This represents an emergence from a prolonged commodity price decline. Fitch's stress case assumptions for Brent oil prices are $35/bbl in 2025, $45/bbl in 2026 and $48/bbl for the long term. These prices could lead to a marked difference in the company's cash flow generation given the impact a period of prolonged oil prices could have for day rates and rig utilization. The GC EBITDA assumption reflects a loss of customers and lower margins than the near-term forecast, as exploration and production companies cut costs. The EBITDA assumption also incorporates weak offshore drilling market fundamentals and Valaris' charters to Aramco, as well as overall high rig supply but improving demand. The assumption reflects the material decrease in the company's liabilities and the material write down in the value of its property, plant and equipment (PP&E) following the company's debt restructuring. Valaris eliminated $7.1 billion of pre-petition debt from its balance sheet after exiting bankruptcy procedures in 2021. During restructuring, the company also wrote down the book value of its PP&E to approximately $900 million. An enterprise value multiple of 5.0x EBITDA is applied to GC EBITDA to calculate a post-reorganization enterprise value. The choice of this multiple considered the following factors: The historical bankruptcy case study exit multiples for peer energy oilfield service companies have a wide range, with a median of 6.5x. The oilfield service subsector ranges from 2.2x to 17.0x due to the more volatile nature of EBITDA swings in a downturn. Fitch used a multiple of 5.0x to estimate the enterprise value of Valaris due to concerns of a downturn with a longer duration, a high exposure to offshore drilling rigs that may see meaningful volatility in demand and continued capital investment to reactive rigs. Fitch also assumed a $50 million value from its equity stake in ARO and notes payable to Valaris by ARO. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realized in a sale or liquidation process conducted during a bankruptcy or insolvency proceeding and distributed to creditors. Fitch assigns standard discounts to the liquidation value of the company's cash, accounts receivable and inventory. Fitch is using a 20% liquidation value to the company's book value given the deep discounts imbedded in offshore drilling assets valuations during a downturn. The $375 million first-lien secured RCF is assumed to be fully drawn upon default and is the most senior in the waterfall. The allocation of value in the liability waterfall results in recovery corresponding to a Recovery Rating of 'RR4' for the second-lien secured debt of $1.084 billion. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustainably stronger offshore drilling market fundamentals, including high day rates, longer contracts, and growing backlog and rig utilization; - A track record of conservative financial policy that keeps gross debt in check; - Midcycle EBITDA leverage below 2.0x. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deteriorating market fundamentals, such as decreasing day rates and offshore rig utilization; - A significant increase in gross debt; - Weakening liquidity; - Midcycle EBITDA leverage above 3.0x. Liquidity and Debt Structure At 2Q25, Valaris had $503 million of unrestricted cash and full availability under the $375 million long-term committed RCF which expires in 2028. Fitch projects that Valaris will generate around $125 million of FCF in 2025 which further supports the liquidity profile throughout the base case. The agency expects proceeds of approximately $108 million from the company's announced sale of its 247 jackup rig will be utilized for opportunistic share buybacks. The company also has a clear maturity window with no maturities until 2030, which Fitch views favorably. Issuer Profile Valaris provides offshore drilling services to oil and gas companies across the globe. It owns the world's largest fleet of offshore rigs, including jackups and floaters. Valaris is incorporated in Bermuda and headquartered in the U.S. 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 Valaris Limited has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to the risk that a possible offshore oil spill may affect the company, which has a negative impact on the credit profile, and is relevant to the rating[s] 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 ----------- ------ -------- ----- Valaris Limited LT IDR B+ Affirmed B+ Senior Secured 2nd Lien LT B+ Affirmed RR4 B+ Valaris Finance Company LLC Senior Secured 2nd Lien LT B+ Affirmed RR4 B+ =========== B R A Z I L =========== BRAZIL: Economy Starting to See Impact of High Rates ---------------------------------------------------- Reuters reports that Brazil's government believes the economy is starting to feel the effects of high interest rates and will closely monitor data to see if those impacts are "wider than initially expected," Economic Policy Secretary Guilherme Mello said. Brazil's central bank held its benchmark rate at 15%, the highest in almost two decades, pausing an aggressive tightening cycle after seven consecutive hikes aimed at fighting sticky inflation, which should cool down economic activity, according to the report. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. JBS SA: To Build 2 Plants in Vietnam ------------------------------------ Hai Yen at theinvestor.vn reports that JBS S.A. will invest in two export-oriented food processing plants in Vietnam following a plan first announced in March. The investment plan was confirmed at a meeting between Au Anh Tuan, deputy director of the Vietnam Customs, and JBS's investment director Fabio Maia de Oliveira in Hanoi, according to theinvestor.vn. The Brazilian meatpacker will start with a facility in the northern port city of Hai Phong, followed by a second plant in Ho Chi Minh City, the report relays. The plan builds on remarks by Brazilian President Luiz Inacio Lula da Silva during his visit to Vietnam in March, when he revealed that a Brazilian company would invest $100 million in beef processing manufacturing in the country, the report discloses. Reuters later identified the investor as JBS, one of the world's largest meat producers, the report says. At the meeting, the JBS executive asked for information on customs regulations for importing meat, offal, and meat by-products from Brazil into Vietnam for processing and then re-export to China and other markets, the report notes. Tuan, in reply, stressed that Vietnam Customs pledged maximum support in terms of customs procedures, while also reminding JBS to comply with veterinary inspection regulations and other sector-specific requirements, the report relays. Highlighting that Vietnam is a member of 17 free trade agreements, the Vietnamese official also encouraged JBS to explore preferential tariffs for its import and export activities, the report discloses. The planned investment is expected to strengthen Vietnam's position as a manufacturing and distribution hub for JBS in Asia, while creating significant job opportunities for the local workforce in the coming years, the report adds. About JBS SA JBS S.A. is a Brazilian company that is a large meat processing enterprise, producing factory processed beef, chicken, salmon, pork, and also selling by-products from the processing of these meats. It is headquartered in Sao Paulo. It was founded in 1953 in Anapolis, Goias. As reported in the Troubled Company Reporter-Latin America in August 2021, S&P Global Ratings revised the global scale outlook on JBS S.A. (JBS) and its fully owned subsidiary JBS USA Lux S.A. (JBS USA) to positive from stable and affirmed its 'BB+' issuer credit rating. The recovery expectations remain unchanged, and S&P affirmed the 'BB+' ratings on the senior unsecured notes and the 'BBB' ratings on the secured term loans. UNIGEL PARTICIPACOES: S&P Cuts ICR to 'D' on Missed Debt Payment ---------------------------------------------------------------- On Aug. 13, 2025, S&P Global Ratings lowered its global scale and national scale issuer credit ratings on Brazil-based petrochemical company Unigel Participacoes S.A. to 'D' from 'CC' and 'brCC', respectively. The downgrade to 'D' reflects that Unigel has announced it initiated a mediation process and filed for Urgent Cautious Protection. The process suspends lawsuits, enforcement actions, and asset seizures against Unigel by creditors for an initial period of 60 days. S&P said, "We consider that the company is not current on some of its obligations because it started negotiations with creditors over a month ago. We also expect that Unigel will fail to pay all or substantially all its interest and principal as they come due over the next several months under the original terms of the financial contracts, while negotiations with creditors evolve." The recent announcements reflect the company's efforts to preserve liquidity, which continues facing pressure from challenging industry conditions and Unigel's heavy capital structure. ========= C H I L E ========= CHILE: Inflation Overshoots Forecasts ------------------------------------- Reuters reports that consumer prices in Chile rose 0.9% in July from the previous month, data from statistics agency INE showed, above the 0.6% increase expected by economists in a Reuters poll. Annual inflation in the world's largest copper producer hit 4.3%, INE added, accelerating from the 4.1% registered in the previous month, says Reuters. The Chilean central bank has an inflation target range of 2% to 4%. According to the report, the monthly rise was driven by higher costs of housing, amid higher electricity prices, and food and non-alcoholic beverages, the agency said. The only group of the 13 surveyed that posted a monthly price decrease was insurance and financial services, it added. The higher-than-expected figure for July followed a 0.4% drop in consumer prices in June, the report relates. Chile's central bank two weeks ago cut its benchmark interest rate by 25 basis points to 4.75%, but said future moves would depend on the evolution of the macroeconomic scenario and its implications for inflation's convergence to its target, adds the report. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Must Prioritize Local Workers, INFOTEP Says --------------------------------------------------------------- Dominican Today reports that Rafael Santos Badia, the general director of the National Institute for Technical-Professional Training (INFOTEP), highlighted the institution's historic expansion over the past five years during an interview on the program Hoy Mismo. He announced that INFOTEP has trained more than 3.4 million people and implemented "fourth industrial revolution" (4.0) training programs and strategic partnerships to boost youth employment. Santos Badia credited President Luis Abinader for his strong support, which he said allowed INFOTEP to modernize and expand its programs to meet the demands of the digital economy and a changing labor market, notes the report. Among the key achievements, he mentioned training in high-demand fields such as electronics repair, medical device manufacturing, and skills related to the Internet of Things (IoT). He also praised the success of INFOTEP's dual training program, which boasts a 95% employment rate for apprentices who combine classroom training with on-the-job experience, the report relates. In a major policy proposal, Santos Badia called for "Dominicanizing" the construction workforce, notes Dominican Today. He argued that young Dominicans have the interest and capacity for these jobs, provided they are offered fair wages and real opportunities. He also proposed a collaboration with the Ministry of Education to integrate technical training into the school curriculum. This would allow students to graduate with both a high school diploma and a technical certification, a strategy he believes would significantly reduce youth unemployment and social frustration. "If we can get academic education and technical training to go hand-in-hand, we can decrease social frustration and increase national productivity," he stated, the report relays. Santos Badia also shared that INFOTEP is collaborating with social programs like Superate, training thousands of beneficiaries to help them transition from government subsidies to dignified employment. He concluded by saying that through these initiatives, INFOTEP will continue to be a driver of labor transformation and a promoter of Dominican talent, 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 U E R T O R I C O ===================== FIGUEROA TELEPHONE: Unsecureds to Split $1K Over 12 Months ---------------------------------------------------------- Figueroa Telephone Construction Inc. filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Plan of Reorganization for Small Business dated July 29, 2025. The Plan Proponent believes that the Debtor will have enough cash on hand on the effective date of the Plan to pay all the claims and expenses that are entitled to be paid on that date. Class 7 consists of General Unsecured Non-priority Creditors. This classification is composed of eleven general unsecured non priority creditors, either by filed proof of claim or as scheduled in the debtor's bankruptcy petition. The aggregate amount owed to creditors in this class is $187,630.58. Pursuant to the Plan, the debtor shall pay to the entire class, a total of $1,000.00, without interest, to be distributed pro rata among all creditors in this class. Beginning on January 31, 2026, and continuing through December 31, 2026, or for a period of one year from the estimated effective date (which is thirty days after the entry of the order confirming the Plan, approximately December 31, 2025), the debtor shall make twelve monthly payments of $83.33 through the end of the year, for a total of $1,000.00. Payments shall be distributed pro rata based on each creditor's respective share of the total general unsecured debt. This class is impaired under the terms of the Plan. Class 8 is composed of the equity interest holders of the Debtor. In this case, the Debtor is a corporation, and the sole equity interest holder is Mr. Elías De Jesús Figueroa, who possesses one hundred percent of the issued and outstanding shares of stock. Although equity holders are entitled to retain their ownership interest in the reorganized Debtor, they will not receive any monetary distribution or cash dividend under this Plan. Furthermore, any benefit or payment on behalf of the equity holder shall be fully subordinated to the payment in full of all allowed claims, as provided for in this Plan. Notwithstanding the absence of a financial recovery, the equity security holder will retain his ownership interest in the reorganized Debtor, by receiving a distribution of common stock in the reorganized entity equivalent to his prepetition shareholding. The Plan shall be implemented pursuant to Section 1123(a)(5) of the Bankruptcy Code through the ongoing operations of the Debtor's business and its resulting operating cash flows. The Debtor will retain property of the estate to continue business operations and generate the funds necessary to perform under the Plan. A full-text copy of the Plan of Reorganization dated July 29, 2025 is available at https://urlcurt.com/u?l=xzXrWD from PacerMonitor.com at no charge. Counsel to the Debtor: Jaime Rodriguez-Perez, Esq. Hatillo Law Office, PSC P.O. Box 678 Hatillo, PR 00659 Telephone: (787) 262-4848 E-mail: hatillolawoffice@yahoo.com About Figueroa Telephone Construction Figueroa Telephone Construction Inc. specializes in the construction and maintenance of telecommunication systems, including both aerial and underground installations. The Company's services encompass fusion and splicing of fiber optic networks, as well as the construction and installation of handholes and manholes for cables. Figueroa Telephone Construction sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-01506) on April 2, 2025. In its petition, the Debtor reports total assets of $499,203 and total liabilities of $1,131,802. The Debtor tapped Jaime Rodriguez Perez, Esq. at Hatillo Law Office, PSC, as counsel and Ramon Trabal Rios & Asociados LLC, CPA as accountant. UNITED CONSTRUCTION: Seeks to Hire Ana Morales as Accountant ------------------------------------------------------------ United Construction LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Ana Morales, an accountant practicing in Caguas, P.R. Ms. Morales will assist the Debtor with tax return filing, and accounting and reporting matters. As compensation, Ms. Morales will receive $100 per hour for her services, plus reimbursement of actual out of pocket expenses. The accountant has received a retainer of $5,000. Ms. Morales disclosed in a court filing that she is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. Ms. Morales can be reached through: Ana Morales Colon #160 Flamboyan Street, La Serrania Caguas, PR 00725 Office: (787) 636-5155 Mobile: (787) 787-308-0423 Email: jmconsultingserv@yahoo.com About United Construction LLC United Construction LLC sought protection for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 25-02726) on June 17, 2025, listing $100,001 to $500,000 in assets and $500,001 to $1 million in liabilities. Noemi Landrau Rivera, Esq., at Landrau Rivera & Assoc. serves as the Debtor's counsel. ********* 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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