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250818.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 Monday, August 18, 2025, Vol. 26, No. 164 Headlines A R G E N T I N A ARGENTINA: Vontobel, Neuberger See Opportunity in Local Bond Rout B O L I V I A BOLIVIA: With 25% Inflation, Crypto is Starting to Replace Money B R A Z I L BRAZIL: Lula Unveils $5.5BB in Credits for Exporters Hit by Tariffs OI SA: Brazil Court Eases Way for Firm to Seek Chapter 11 SAMARCO MINERACAO: Exits Bankruptcy, Eyes Full Capacity by 2028 C A Y M A N I S L A N D S NEUBERGER BERMAN 41: S&P Rates Replacement Cl. E-R Notes 'BB- (sf)' H A I T I HAITI: IDB OKs $44MM Grant to Support Over 200,000 Youth J A M A I C A JAMAICA: Collects $232.2BB in Revenues and Grants for April to June M E X I C O ASCEND PERFORMANCE: Taps Deloitte as Tax Advisory Provider P U E R T O R I C O PALMAS ATHLETIC: Section 341(a) Meeting of Creditors on Sept 8 - - - - - ================= A R G E N T I N A ================= ARGENTINA: Vontobel, Neuberger See Opportunity in Local Bond Rout ----------------------------------------------------------------- Vinicius Andrade & Maria Elena Vizcaino at Bloomberg News report that money managers are piling into Argentina's local markets, seizing on the steep sell-off in the peso and domestic bonds to increase exposure to the country's assets. Vontobel Asset Management has been buying Boncer bonds - inflation-linked notes issued by the government -- while Neuberger Berman has snapped up non-deliverable forwards and local debt, according to Bloomberg News. At JPMorgan Chase & Co, strategists are urging clients to bet on peso-denominated Bontam bonds maturing in December 2026, Bloomberg News relays. The buying comes after Argentine assets were roiled by the Central Bankk's decision last month to stop rolling over short-term notes known as LEFIs, which left the market awash in pesos, Bloomberg News notes. To stem further currency weakness, policymakers hiked reserve requirements on bank deposits, a step that forced local lenders -- major buyers of local bonds -- to park more pesos at the Central Bank. That, in turn, pushed up yields on local debt, Bloomberg News discloses. "The central bank basically was forced to tighten liquidity," said Carlos de Sousa, a portfolio manager at Vontobel, Bloomberg News relays. "We take the view that this not-so-orderly transition away from LEFIs will eventually be resolved, and local rates should normalise once the market settles," he added. Yields on domestic bonds have spiked, with the interest rate on inflation-linked Boncer notes maturing in December jumping to 16.8 percent at the end of last month from 12.4 percent in late June, Bloomberg News says. The yield has since edged lower to 16.6 percent, notes the report. At the same time, the peso is down more than 10 percent since late June, Bloomberg News discloses. The currency -- also pressured by a seasonal dip in farm exports and investor caution ahead of midterm elections seen as a test of President Javier Milei's support -- is trading at 1,332 per dollar, Bloomberg News says. "The recent adjustment has been significant, improving risk-reward for carry trades," JPMorgan strategist Gisela Brant wrote in a note, Bloomberg News discloses. Brant had recommended "taking a breather" on Argentine peso bonds in late June, citing mounting pressure on external accounts and pre-midterm election uncertainty, recounts Bloomberg News. "Elections continue to pose uncertainty for markets, but at current levels of rates and FX, some of the risk premium appears to be already factored into prices," she said, adding that her expectation is for Milei's party to perform well in the October vote, Bloomberg News relays. Still, the peso could potentially weaken further as it remains some way from the upper bound of Argentina's managed float of 1,456, Bloomberg News discloses. That hasn't stopped Gorky Urquieta, co-head of Neuberger Berman's emerging markets debt team, from adding Argentina exposure following the July sell-off, Bloomberg News notes. "If you enter these levels within the band, even if it goes back to the top, it's still a positive return in USD," Urquieta added, notes the report. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ============= B O L I V I A ============= BOLIVIA: With 25% Inflation, Crypto is Starting to Replace Money ---------------------------------------------------------------- Bloomberg News reports that in Bolivia these days, just about anything seems better than holding the local currency. The buying power of the boliviano has cratered, as trust in the once-dominant socialist government nears all-time lows, inflation hits three-decade highs and dollars are in short supply. That's why more and more people are turning to a risky alternative to do business and protect their hard-earned savings: cryptocurrencies, the report relays. From small coffee shops to large corporations, signs of rapid adoption are everywhere in this landlocked nation of 11 million in South America, the report notes. All told, digital payments have skyrocketed more than fivefold to nearly $300 million in the first six months of 2025, after a decadelong ban was lifted a little more than a year ago, discloses the report. "Among importers, crypto use is high," Bloomberg News quotes said Oswaldo Barriga, a local business leader, as saying. "When they can't access hard currency and need to make urgent payments, crypto becomes a viable alternative." To many, Bolivia is one of the biggest test cases yet for a belief held by many crypto diehards: Digital assets aren't merely for speculation, they're a better way to do commerce, free from the currency debasement of profligate governments and money-printing central banks alike, according to Bloomberg News. Sure, cryptocurrencies still make up a minuscule part of Bolivia's broader economy, but the newfound popularity has been undeniable, the report relates. That has, in large part, been driven by necessity, it adds. Bolivia's finances are in shambles. The government has run budget shortfalls for 11 straight years and is mired in foreign-currency debt equal to a quarter of the size of its economy. Its state-owned natural gas industry has floundered, undermining the country's ability to earn hard currency from one of its biggest exports. All the while, inflation at a 34-year-high of 25% has ravaged Bolivians' savings and purchasing power, and an artificially high fixed rate on the boliviano has made buying everyday goods, much of which are imported, all too costly, Bloomberg News discloses. But the increasing use of digital assets has also been driven by a deep-seated distrust in traditional institutions that have failed to work in the interests of ordinary Bolivians -- an all-too familiar sentiment in Latin America, and increasingly, around the world, the report relates. Since Bolivia's government lifted the crypto ban, it's mostly taken a hands-off approach, notes the report. Making it legal is all it took for many citizens to embrace it. "Foreign companies view Bolivia as the epicenter of the crypto ecosystem in Latin America," said Mauricio Dulon, co-organizer of a recent crypto summit held in La Paz, relays Bloomberg News. That fervor has drawn a bevy of crypto providers into the country, according to Hugo Miranda, digital economy officer at the Bolivia Internet Foundation, which promotes the use of technology, states the report. Meanwhile, local social media influencers are promoting crypto as a path to financial freedom. Local firms are also responding to intense demand, says Bloomberg News. Guido Balcazar, general manager of Red Enlace, a credit card processor in Bolivia, said his company is racing to roll out upgrades that will let retailers accept USDT via point-of-sale terminals and QR codes. "There are generational barriers," the report quotes Balcazar as saying. "But necessity forces adoption." As reported in the Troubled Company Reporter-Latin America on June 27, 2025, S&P Global Ratings lowered its long-term foreign and local currency sovereign credit ratings on Bolivia to 'CCC-' from 'CCC+'. The outlook on the long-term ratings is negative. S&P also affirmed its 'C' short-term foreign and local currency sovereign credit ratings. At the same time, S&P revised its transfer and convertibility assessment to 'CCC-' from 'CCC+'. =========== B R A Z I L =========== BRAZIL: Lula Unveils $5.5BB in Credits for Exporters Hit by Tariffs ------------------------------------------------------------------- Jerry Fisayo-Bambi at The Associated Press reports that Brazil unveiled a plan to support local companies affected by a 50% tariff imposed by US President Donald Trump on several of the country's exports, the report relays. Dubbed "Sovereign Brazil," the plan launched during a signing ceremony at the Planalto presidential palace in Brasilia provides for a credit lifeline of BRL30 billion ($5.5 billion), among other measures, according to AP News. Brazil's President Luiz Inacio Lula da Silva described the plan, which includes a bill to be sent to Congress, as a first step to help local exporters, the report relays. "We cannot be scared, nervous, and anxious when there is a crisis. A crisis is for us to create new things," Lula said, notes the report. "In this case, what is unpleasant is that the reasons given to impose sanctions against Brazil do not exist," he added. Hours later, US Secretary of State Marco Rubio disclosed new sanctions against at least two Brazilian officials, in a move the South American nation's health minister rebuked, the report discloses. Top congressional leaders attended the ceremony at the presidential palace in Brasilia, a first in months, in a sign of growing political support for Lula in response to Trump, the report relays. What Does the Plan Entail? According to local media, Brazil's measures include postponing tax charges for companies affected by US tariffs and providing BRL5 billion ($930,000) in tax credits to small- and medium-sized companies until the end of 2026, the report relays. It also includes expanding access to insurance against cancelled orders, the report notes. While public purchases of items that could not be exported to the US are also included, Lula's government is also granting a one-year extension of tax credits for companies that import items so they can produce goods for exportation, a mechanism called "drawback," the report relays. Trump has tied the 50% tariff on many imported Brazilian goods to the judicial situation of his embattled ally, former President Jair Bolsonaro, who is currently under house arrest, the report discloses. Trump claims Bolsonaro is a victim of a political witch hunt, claims that Brazil denies and that drew the ire of President Lula, who accused Trump of 'interference,' the report relays. The accusations and trade tariffs against Brasilia have riled up the country's political climate and led to an increase in support and poll numbers for President Lula, the report notes. Lula once again said he and Trump have never spoken and claimed the American president does not want to negotiate, the report adds. 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. OI SA: Brazil Court Eases Way for Firm to Seek Chapter 11 --------------------------------------------------------- Giovanna Bellotti Azevedo at Bloomberg News reports that a Rio de Janeiro court suspended the enforceability of obligations set out in Oi SA's judicial recovery plan in Brazil, opening the way for the company to potentially seek a Chapter 11 filing in the US. The court's decision prevents the imposition of any liens or claims on the troubled Brazilian telecom operator's assets from Aug. 13 to Aug. 31, the filing reads, according to Bloomberg News. It also required the company to present a transition plan to ensure the continuity of its public services, the report notes. As reported in the Troubled Company Reporter-Latin America on Aug. 5, 2025, Bloomberg News said that distressed Brazilian telecom operator Oi SA is preparing a chapter 11 bankruptcy filing in a US court. The company is working with law firm White & Case LLP, the people said, asking not to be named discussing private details, according to the report. The company will probably file as soon as its ongoing chapter 15 process is canceled, the report noted. About Oi SA Oi, formerly known as Telemar, is the largest fixed telephone operator and the fourth mobile telephone operator in Brazil, being the third largest telecommunication company in Latin America. It is headquartered in Rio de Janeiro. As reported by the Troubled Company Reporter-Latin America on June 5, 2025, Fitch Ratings has downgraded Oi S.A.'s Foreign and Local Currency Long-Term Issuer Default Rating (IDR) to 'C' from 'CCC-' and its National Long-Term rating to 'C(bra)' from 'CCC-(bra)'. Fitch has also downgraded Oi's USD655 million super senior secured notes due in June 2027 and USD1.4 billion subordinated secured debt PIK notes due in December 2028 to 'C' with a Recovery Rating of 'RR4' from 'CCC-'/'RR4'. The downgrade reflects Oi's worsening financial situation, highlighted by intensified cash burn beyond Fitch's expectations, according to the report. SAMARCO MINERACAO: Exits Bankruptcy, Eyes Full Capacity by 2028 --------------------------------------------------------------- Bnamericas News reports that Brazilian iron ore pellet producer Samarco, a JV between mining giants Vale and BHP, has concluded its bankruptcy protection process and expects to fully recover production capacity by 2028. Samarco was responsible for one of Brazil's worst environmental mining disasters in 2015, when a tailings dam collapsed, killing 19 people in Mariana municipality, Minas Gerais state, according to Bnamericas News. The company was forced to halt operations until December 2020, which led it to file for bankruptcy protection to restructure its debt, the report notes. "Samarco restructured liabilities exceeding 50bn reais [US$9.2bn] with approximately 10,000 creditors. The successful conclusion represents an important milestone in the company's restructuring journey, enabling economic and financial rebalancing and the consolidation of sustainable foundations for its growth and for fulfilling the obligations set out in the New Rio Doce Agreement," Samarco said in a statement, the report relays. Currently, the company operates at 60% of installed capacity and has around 16,300 direct and contracted employees, the report discloses. Full capacity would represent annual output of 26-27Mt of iron ore pellets and fines, the report says. Last year, Vale and BHP reached a 170bn-real compensation agreement with authorities over the dam collapse, the report adds. As reported in the Troubled Company Reporter – Latin America on March 4, 2025, Moody's Ratings has upgraded Samarco Mineracao S.A. corporate family rating and senior unsecured rating to B2 from B3. The outlook changed to positive from stable. =========================== C A Y M A N I S L A N D S =========================== NEUBERGER BERMAN 41: S&P Rates Replacement Cl. E-R Notes 'BB- (sf)' ------------------------------------------------------------------- S&P Global Ratings assigned its ratings to the replacement class A-R, B-R, C-R, D-R, and E-R debt from Neuberger Berman Loan Advisers CLO 41 Ltd./Neuberger Berman Loan Advisers CLO 41 LLC, a CLO managed by Neuberger Berman Loan Advisers II LLC that was originally issued in April 2021. At the same time, S&P withdrew its ratings on the original class A, B, C, D, and E debt following payment in full on the Aug. 14, 2025, refinancing date. The replacement debt was issued via a supplemental indenture, which outlines the terms of the replacement debt. According to the supplemental indenture: -- The non-call period was extended to April 15, 2026. -- No additional subordinated notes were issued on the refinancing date. -- The transaction is segregating some equity positions as excluded equity securities which will be segregated from the collateral portfolio. -- The transaction is adding the ability to delay optional redemption in the instance of settlement delays. -- The transaction is adding the ability to acquire uptier priming debt. -- The transaction has adopted benchmark replacement language and was updated to conform to current rating agency methodology. S&P said, "On a standalone basis, our cash flow analysis indicated a lower rating on the replacement class E-R debt. There has been some par loss leading to a decline in overcollateralization (O/C) levels, as well as recent increases in 'CCC'/'D' rated assets and overall credit deterioration. Despite those changes, we view the refinancing as an overall positive for the transaction on a standalone basis. As such, we assigned our 'BB- (sf)' rating to the replacement class E-R debt after considering the O/C tests, which are all passing and that the transaction will soon enter its amortization phase. Based on the latter, we expect the credit support available to all rated classes to increase as principal is collected and the senior debt is paid down. However, any further credit deterioration or lack of improvement could lead to potential negative rating actions in the future." Replacement And Original Debt Issuances Replacement debt -- Class A-R, $310.0 million: Three-month CME term SOFR + 1.05% -- Class B-R, $70.0 million: Three-month CME term SOFR + 1.50% -- Class C-R (deferrable), $30.0 million: Three-month CME term SOFR + 1.75% -- Class D-R (deferrable), $30.0 million: Three-month CME term SOFR + 2.80% -- Class E-R (deferrable), $20.0 million: Three-month CME term SOFR + 5.75% Original debt -- Class A, $310.0 million: Three-month CME term SOFR + 1.02% + CSA(i) -- Class B, $70.0 million: Three-month CME term SOFR + 1.55% + CSA(i) -- Class C (deferrable), $30.0 million: Three-month CME term SOFR + 1.70% + CSA(i) -- Class D (deferrable), $30.0 million: Three-month CME term SOFR + 2.68% + CSA(i) -- Class E (deferrable), $20.0 million: Three-month CME term SOFR + 6.50% + CSA(i) (i)The CSA is 0.26161%. CSA--Credit spread adjustment. S&P said, "Our review of this transaction included a cash flow analysis, based on the portfolio and transaction data in the trustee report, to estimate future performance. In line with our criteria, our cash flow scenarios applied forward-looking assumptions on the expected timing and pattern of defaults and the recoveries upon default under various interest rate and macroeconomic scenarios. Our analysis also considered the transaction's ability to pay timely interest and/or ultimate principal to each of the rated tranches. The results of the cash flow analysis (and other qualitative factors, as applicable) demonstrated, in our view, that the outstanding rated classes all have adequate credit enhancement available at the rating levels associated with the rating actions. "We will continue to review whether, in our view, the ratings assigned to the debt remain consistent with the credit enhancement available to support them and take rating actions as we deem necessary." Ratings Assigned Neuberger Berman Loan Advisers CLO 41 Ltd./ Neuberger Berman Loan Advisers CLO 41 LLC Class A-R, $310.0 million: AAA (sf) Class B-R, $70.0 million: AA (sf) Class C-R (deferrable), $30.0 million: A (sf) Class D-R (deferrable), $30.0 million: BBB- (sf) Class E-R (deferrable), $20.0 million: BB- (sf) Ratings Withdrawn Neuberger Berman Loan Advisers CLO 41 Ltd./ Neuberger Berman Loan Advisers CLO 41 LLC Class A to NR from 'AAA (sf)' Class B to NR from 'AA (sf)' Class C (deferrable) to NR from 'A (sf)' Class D (deferrable) to NR from 'BBB- (sf)' Class E (deferrable) to NR from 'BB- (sf)' Other Debt Neuberger Berman Loan Advisers CLO 41 Ltd./ Neuberger Berman Loan Advisers CLO 41 LLC Subordinated notes, $50.0 million: NR NR--Not rated. ========= H A I T I ========= HAITI: IDB OKs $44MM Grant to Support Over 200,000 Youth -------------------------------------------------------- The Inter-American Development Bank (IDB) approved a $43.9 million grant to expand support for over 200,000 vulnerable youth between the ages of 15 and 35, with a focus on young returnees and those not in education, employment, or training (NEET). The program is designed to reduce the risk of violence and exclusion by creating jobs and pathways to reintegration. The program combines paid community work with on-the-job training, digital literacy, and entrepreneurship support. It also helps returnees reintegrate through vocational programs, creates safe spaces for youth, and expands access to mental health and gender-based-violence services – key tools to help youth regain stability and stay out of violence. Approximately 8,600 youth will participate in the Cash-for-Work Plus modality, engaging in small-scale infrastructure projects. Some 10,000 returnees will benefit from reintegration support, including vocational and entrepreneurship training. Ten multipurpose youth centers will be rehabilitated and activated across the country, providing digital literacy, socioemotional training, and recreational activities to an estimated 114,000 youth. An additional 70,000 young people will also gain access to healthcare screenings, mental health services, and support for survivors of gender-based violence. The project will also strengthen the capacity of Haiti's Social and Economic Assistance Fund (FAES) through training in project management, procurement, monitoring and evaluation. It supports the implementation of Haiti's National Social Protection and Social Promotion Policy (PNPPS) in coordination with state and non-state stakeholders. ============= J A M A I C A ============= JAMAICA: Collects $232.2BB in Revenues and Grants for April to June ------------------------------------------------------------------- RJR News reports that the Ministry of Finance & The Public Service says the government collected $232.2 billion in revenues and grants for April to June this fiscal year -- in line with the budgeted target. However, tax revenues totaled $213.3 billion, which is $1.5 billion, or 0.7 percent, below the projection of $214.8 billion, according to RJR News. The ministry also reports spending $270.4 billion during the period -- 18.7 billion, or almost 7 percent, less than planned, the report notes. Meanwhile, the fiscal deficit -- the gap between revenue and expenditure -- was $38.3 billion, which is $18.7 billion, or 33 per cent, lower than projected, the report relays. The primary surplus -- the amount set aside to service the debt -- was $1.2 billion, which was $17.7 billion, or 93 per cent, below the budgeted amount, the report notes. About Jamaica Jamaica is an island country situated in the Caribbean Sea. Jamaica is an upper-middle income country with an economy heavily dependent on tourism. Other major sectors of the Jamaican economy include agriculture, mining, manufacturing, petroleum refining, financial and insurance services. On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a positive rating outlook. In October 2023, Moody's upgraded the Government of Jamaica's long-term issuer and senior unsecured ratings to B1 from B2, and senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has been changed to positive from stable. In September 2024, S&P affirmed 'BB-/B' longterm foreign and local currency sovereign credit ratings on Jamaica and revised outlook to positive. =========== M E X I C O =========== ASCEND PERFORMANCE: Taps Deloitte as Tax Advisory Provider ---------------------------------------------------------- Ascend Performance Materials Holdings Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the Southern District of Texas to employ Deloitte Tax LLP as tax advisory services provider. The firm will render these services: (a) provide services to the Debtors in connection with their debt restructuring; (b) (i) prepare the global tax returns for tax years 2022, 2023, and 2024, (ii) assist in calculating estimated tax payments to the Global Compliance Services SOW, and (ii) perform consulting services, as requested by the Debtors and agreed to by Deloitte Tax; (c) prepare the 2022-2024 federal and state income tax returns and assist in calculating the amounts of extension payments and preparing extension requests for the aforementioned tax returns; (d) provide tax advisory services for the Debtors as they undertake an assessment of the Internal Revenue Code (IRC) Section 48C qualifying advanced energy project credit for their select proposed project at their U.S. facility, which will be mutually agreed upon between Deloitte Tax and the Debtors; (e) provide tax orientations, federal and state tax return preparation and other tax services to current and former employees and contractors considering international assignments or other relocations, as identified by the Debtors, for the 2023 and 2024 tax years; (f) assist in documenting certain intercompany transactions between the Debtors and their affiliates during fiscal year 2024 and analyzing such transactions subject to IRC Section 482 and based on certain standards related to transfer pricing; and (h) will assist the Debtors with the restructuring of their European operations. Tax Restructuring Statement of Work (SOW) fees rates per hour: Washington National Tax/Specialist $948 Partner/Principal/Managing Director $900 Senior Manager $848 Manager $796 Senior Staff $680 Staff $596 Global Compliance Services SOW fees rates per hour: Washington National Tax/Specialist $1,100 Washington National Tax Managing Director $810 Partner/Principal/Managing Director $610 Senior Manager $485 Manager $390 Senior Staff $300 Staff $230 Tax Compliance SOW fixed fee for tax years: (a) Tax Year 2022 $268,875 (b) Tax Year 2023 $275,500 (c) Tax Year 2024 $282,000 If additional tax returns are required, or other unanticipated out of scope services are requested by the Debtors, Deloitte Tax will bill the Debtors based on the amount of professional time required and the experience level of the professionals involved, as follows: Washington National Tax/Specialist $1,100 Washington National Tax Managing Director $810 Partner/Principal/Managing Director $610 Senior Manager $485 Manager $390 Senior Staff $300 Staff $230 Pursuant to the terms of the IRC Section 48C SOW, Deloitte Tax will bill the Debtors based on the amount of professional time required and the experience level of the professionals involved, as follows: Phase I - Preliminary Analysis and Concept Paper $60,000 Phase II - Application and Certification Assistance $175,000 $250,000 Phase III - Documentation Assistance $75,000 - $250,000 Phase IV - Ad Hoc Tax Consulting: Partner/Principal/Managing Director $830 Senior Manager $689 Manager $647 Senior Staff $510 Staff $410 Pursuant to the terms of the Second IRC Section 48C SOW, Deloitte Tax will bill the Debtors on a fixed fee basis, as follows: Phase I - Concept Paper $45,000 - $60,000 Phase II - Application Assistance $175,000 - $250,000 Pursuant to the terms of the GES Services SOW, Deloitte Tax will bill the Debtors on a fixed fee basis in the aggregate amount of approximately $58,241. Pursuant to the terms of the Transfer Pricing SOW, Deloitte Tax will bill the Debtors on a fixed fee basis for the tax services performed, as follows: (a) Transfer Pricing Documentation Reports - $51,750: (i) Ascend-U.S. (ii) Ascend-U.S. Branch (b) Transfer Pricing Documentation Reports - $45,000: (i) Ascend-Netherlands (Local Review) (ii) Ascendd-Belgium (iii) Ascend-France (iv) Ascend-Singapore (c) Transfer Pricing Services - $37,615: (i) Ascend-India (ii) Ascend-Italy (c) OECD Master File - $15,000 (i) Ascend Group (d) Global Benchmarking Memorandum - $35,000 (i) Ascend Group Pursuant to the terms of the Project Lambert SOW, Deloitte Tax estimates that it will bill the Debtors as follows based on estimates of hours and hourly rates: Feasibility Analysis - $160,000 Detailed Step Plan Design - $325,000 Implementation Assistance - $325,000 Post-Implementation Assistance - $50,000 In addition, the firm will seek reimbursement from the expenses incurred. Prior to the petition date, the firm received three retainer payments totaling $900,000. Rupesh Vadapalli, a partner at Deloitte Tax, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Rupesh R. Vadapalli Deloitte Tax LLP 1111 Bagby Street, Suite 4500 Houston, TX 77002 About Ascend Performance Materials Ascend Performance Materials Holdings Inc. and its affiliates are one of the largest, fully-integrated producers of nylon, a plastic that is used in everyday essentials like apparel, carpets, and tires, as well as new technologies like electric vehicles and solar energy systems. Ascend's business primarily revolves around the production and sale of nylon 6,6 (PA66), along with the chemical intermediates and downstream products derived from it. Common applications of PA66 include heating and cooling systems, air bags, batteries, and athletic apparel. Headquartered in Houston, Texas, Ascend has a global workforce of approximately 2,200 employees and operates 11 manufacturing facilities that span the United States, Mexico, Europe, and Asia. Ascend and its affiliates filed petitions under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90127) on April 21, 2025, with $1 billion to $10 billion in both assets and liabilities. Robert Del Genio, chief restructuring officer, signed the petitions. Judge Christopher M. Lopez presides over the cases. The Debtors tapped Bracewell, LLP, Kirkland & Ellis, LLP and Kirkland & Ellis International, LLP as bankruptcy counsel; PJT Partners, Inc. as investment banker; FTI Consulting, Inc. as restructuring advisor; and Deloitte Tax LLP as tax advisory services provider. The U.S. Trustee for Region 7 appointed an official committee to represent unsecured creditors in the Debtors' Chapter 11 cases. ===================== P U E R T O R I C O ===================== PALMAS ATHLETIC: Section 341(a) Meeting of Creditors on Sept 8 -------------------------------------------------------------- On August 4, 2025, Palmas Athletic Club Corp. filed Chapter 11 protection in the District of Puerto Rico. According to court filing, the Debtor reports $36,514,983 in debt owed to 1 and 49 creditors. The petition states funds will be available to unsecured creditors. A meeting of creditors under Section 341(a) to be held on September 8, 2025 at 10:00 AM via Telephonic Conference. About Palmas Athletic Club Corp. 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. Palmas Athletic Club Corp. sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 25-03489) on August 4, 2025. In its petition, the Debtor reports total assets of $16,793,944 and total liabilities of $36,514,983. The Debtor is represented by Charles A. Cuprill Hernandez, Esq. at CHARLES A. CUPRILL, PSC, LAW OFFICES. The Debtor's Financial Consultant is CPA LUIS R. CARRASQUILLO & CO, PSC. ********* 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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