250829.mbx

250829.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 29, 2025, Vol. 26, No. 173 Headlines A R G E N T I N A EMPRESA DISTRIBUIDORA: Fitch Affirms 'B-' Rating on USD184MM Notes B A H A M A S FTX TRADING: SPCP Group v. Svalbard Holdings, et al. Case Tossed B R A Z I L BRAZIL: Trails Mexico and Colombia as Q2 Growth Falters D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: ProConsumidor Denies Chicken Costs DOP125 DOMINICAN REPUBLIC: Promoted as Hub for Japanese Companies J A M A I C A JAMAICA: Total Factor Productivity Below Regional Counterparts M E X I C O ASCEND PERFORMANCE: Recovery for Unsecureds Still to Be Determined P U E R T O R I C O PUERTO RICO: Board Purge May Not Bring Utility Bond Payments PUERTO RICO: Utility Bondholders Say They'll End Reorg Deal T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Sees Less Forex, Lower Tax Revenue, Job Losses - - - - - ================= A R G E N T I N A ================= EMPRESA DISTRIBUIDORA: Fitch Affirms 'B-' Rating on USD184MM Notes ------------------------------------------------------------------ Fitch Ratings has affirmed Empresa Distribuidora y Comercializadora Norte S.A.'s (EDENOR) Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at 'CCC+'. Fitch has also affirmed EDENOR's USD184 million notes at 'B-' with a Recovery Rating of 'RR3'. The ratings reflect the completion of their Integral Tariff Review (RTI) in May 2025. On average the company received a 14.35% increase in Argentine peso in 30 installments (0.42% monthly) until November 2027 on the added distribution value (VAD) and monthly increases considering inflation, as a formula of the Consumer Price Index (33%) and Wholesale Price Index (67%). EDENOR has a strong market position operating a long-term energy distribution concession in the north of the city of Buenos Aires and the northwest part of the Greater Metropolitan area of Buenos Aires, Argentina (CCC+) combined with low leverage. The company operates in a challenging environment, marked by the country's economic issues and regulatory unpredictability, which significantly affect its credit strengths. EDENOR does not receive direct subsidies from the central government, but acts as the collector for the electric sector, retaining about 30% of the final bill, which corresponds to its regulated VAD. Key Rating Drivers Regulatory Update: EDENOR's RTI finalized in May 2025, resulting in a 14.35% increase in the VAD in 30 installments from May 2025 to November 2027 in its concession. The RTI five-year period (2025-2030) includes automatic monthly adjustments relating to inflation based on the consumer and wholesale price indexes, as well as a 0.42% VAD increase monthly until November 2027. Monthly adjustments have averaged 3.5% for the first six months of 2025. Fitch anticipates EBITDA of about ARS440 billion in 2025 incorporating the completion of the RTI and achievement of the regulated weighted average cost of capital (WACC) implementation at 6.5% and assuming no additional debt. The 2025 EBITDA includes a gain due to a positive effect of the regularization agreement with Compania Administradora del Mercado Mayorista Electrico S.A. (CAMMESA) for pending balances, registered in 2Q25. Operating Environment Constrains Ratings: As a regulated utility company, EDENOR's revenues are exclusively generated in Argentina, making the company vulnerable to the country's volatile economy, the risk of abrupt interruptions in financial access, and weak systemic governance. These factors constrained the company and negatively affect its rating. The government's plan centers on an aggressive overall fiscal adjustment, including the reduction of direct electric subsidies to end users. EDENOR retains about 30% of the amount it collects, corresponding to its regulated VAD, and does not receive direct government subsidies. Debt Regularization with CAMMESA: The company currently has three payment plans with CAMMESA, which acts as an agent for represent wholesale market players. On May 21, 2025, the company entered a payment plan to pay outstanding debts consisting of 72 monthly installments and a 12-month grace period. Also, an active payment plan, which was adjusted in accordance with the development of the MWh value in effect, was converted into pesos at the energy price applicable as of October 2024 (ARS30,154MWh), with the same conditions. The combined effect of these two agreements amount to a gain of ARS168,220 million, registered in 2Q2025. Strong Leverage Profile: Fitch anticipates EBITDA leverage below 2.0x over the rated horizon, including the USD80million and ARS20billion local bonds issued in August 2025. The company's EBITDA interest coverage will remain around 6.0x over the rated horizon under these assumptions. Fitch's base case includes expectations of negative FCF over the rating horizon, driven by assumptions of USD250 million in capex implementation annually through FY27. Peer Analysis EDENOR is Argentina's largest electricity distribution company based on the number of customers and the volume of electricity sold. It has an exclusive concession to distribute electricity in the northwestern part of the greater Buenos Aires metropolitan area and the northern section of Buenos Aires city, serving about 3.3 million clients. Its business profile compares with regional peers such as Empresa Distribuidora de Electricidad de Mendoza S.A. (EDEMSA; CCC+). EDEMSA operates a long-term energy distribution concession serving 480,000 customers. Over the rating horizon, EDENOR's expected average gross leverage, measured as total gross debt to EBITDA, over the rating horizon is below 2.0x, while EDEMSA expects an average of around 2.0x. Neither company receives direct subsidies from the government. EDENOR has a lower scale of operations compared with European integrated utilities such as Engie S.A. (BBB+/Stable), Enel S.p.A. (BBB+/Stable), e-netz Suedhessen AG (BBB+/Stable) and EDF Energy Holdings Limited (BBB-/Stable). These are all well-diversified utilities operating in energy and natural gas distribution, as well as networks, energy solutions and nuclear assets. Key Assumptions - Monthly .42% tariff adjustment from May 2025 to November 2027 with monthly adjustments per inflation through the rating horizon; - Average annual inflation 43.83% in 2025, 22.55% in 2026 and 16.5% in 2027; - Increase in energy supplied by increase in GDP: 5.07% in 2025, 3.81% in 2026 and 3.48% in 2027; - Five-year tariff review process starting May 2025 reaching the regulated WACC of 6.5%, after taxes; - CAMMESA debt recognition of ARS396,035 as of May 2025; - Energy losses around 15.5%; - Accumulated capex of USD750 million during 2025-2027; - No dividend payments during 2025-2027. Recovery Analysis Key Recovery Rating Assumptions: - EBITDA declines 30% in bankruptcy; - 4.0x EBITDA multiple; - Administrative claims of 10%. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Argentina's sovereign rating; - Improvement in the regulatory framework migrating to a constructive scheme, with low government interference in utility regulations with a clear tariff structure, enabling companies to recover costs of service from end users through tariffs Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Worsening of the regulatory environment, assessed as negative changes to the regulated framework not allowing EDENOR the implementation of the tariff structures eroding the company's liquidity, cash flow and capital structure; - Adverse change of control in EDENOR that modifies the company's business and financial strategy, dividends distribution and cash extraction, as well as changes in corporate governance practices Liquidity and Debt Structure As of June 2025, the company had cash on hand and short-term investments reaching ARS386,623 million (~USD321 million) with short-term debt maturities of ARS126,690 million. EDENOR has debt maturities of approximately USD191 million maturing at the end of 2026 through local bonds. Following that, the company's main debt maturities are at the end of 2028 when their USD184 million international bond starts maturing over three years at 33.33%. As of June 2025, EDENOR had about ARS396,035 million debt in three payment plans with CAMMESA, which has been paid on time with 75 or 72 installments remaining. Issuer Profile EDENOR is the largest electricity distributor in Argentina in terms of the number of customers and electricity sold. The concession area comprises 20 municipalities in the northwest zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires, covering an area of 4,637 square kilometres and a population of approximately nine million inhabitants. EDENOR´s concession is currently set to expire on Aug. 31, 2087, after a term of 95 years, and may be extended for one additional 10-year period if EDENOR requests the extension at least 18 months before expiration. The term of the concession is divided into management periods. Criteria Variation Fitch has applied a variation from its "Country-Specific Treatment of Recovery Ratings Criteria," specifically the section titled "When an Instrument Enters a Distressed or Defaulted State." The criteria allow a Recovery Rating to be assigned above the defined cap for distressed issuers when Fitch has reason to believe that recoveries in an individual case would be consistent with a higher Recovery Rating. Fitch has extended this analytical approach to all Argentine-based corporates rated 'B-', reflecting their highly speculative credit profiles and their operations within the distressed operating environment in Argentina (CCC+). MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Empresa Distribuidora y Comercializadora Norte S.A. (EDENOR) LT IDR CCC+ Affirmed CCC+ LC LT IDR CCC+ Affirmed CCC+ senior unsecured LT B- Affirmed RR3 B- ============= B A H A M A S ============= FTX TRADING: SPCP Group v. Svalbard Holdings, et al. Case Tossed ---------------------------------------------------------------- Vice Chancellor Morgan T. Zurn of the Delaware Chancery Court granted the Svalbard Holdings Limited and Attestor Value Master Fund LP's motion to dismiss the amended complaint in the case captioned as SPCP Group, LLC v. Svalbard Holdings Limited, et al., Case No. 2024-0576-MTZ (Del. Ch.). The amended complaint is dismissed with prejudice for lack of personal jurisdiction. The Court finds Plaintiff failed to establish a prima facie case for personal jurisdiction over Defendants. This case is an offshoot of the bankruptcy of FTX Trading Ltd. and its related entities. An FTX customer had a claim for cryptocurrency and/or other assets held in one or more customer accounts before FTX's bankruptcy; that claim is subject to FTX's pending Chapter 11 bankruptcy proceeding in the United States Bankruptcy Court for the District of Delaware. The claim was held by nonparty Floating Point Group International, LLC ("Seller"). The claim's face value is approximately $10.5 million. In early July 2023, Seller agreed to sell the claim to plaintiff SPCP Group, LLC for pennies on the dollar: $1.36 million. Seller and Plaintiff executed a claims sale agreement. The CSA is governed by New York law and contains an arbitration clause. There is no reason to infer the CSA was negotiated in Delaware. Plaintiff is a Delaware limited liability company. Seller is a Cayman Islands limited liability company. The CSA did not close. Plaintiff alleges it did not close because Seller failed to satisfy a condition precedent, namely providing certain documents the CSA required by July 19, 2023. Later in July, Seller sold the claim to defendant Svalbard Holdings Limited ("Buyer"). Seller and Buyer entered into an Assignment of Claim Agreement on July 27. The ACA gave Buyer immediate ownership of the claim. After Seller sold the claim to Buyer, the claim "skyrocketed in value." The ACA is governed by New York law, and there is no reason to infer it was negotiated in Delaware. Buyer is a corporation incorporated in the Cayman Islands. It has bought over 200 FTX customer claims, and is a member of the Bankruptcy's Ad Hoc Committee of Non-US Customers of FTX.com. During negotiations, Seller was represented by Eversheds Sutherland (US) LLP out of Chicago. Eversheds also represents the Ad Hoc Committee. Buyer did not need to file a notice of transfer to be paid at all, or to own the claim. The ACA took care of all that. The ACA explains Buyer had "an undivided 100% participation interest" in the claim, and gives Buyer the option to file a notice of transfer with the Bankruptcy Court; it does not make a notice of transfer mandatory. Relatedly, the ACA obligates Seller to pay Buyer its distributions from the claim if the estate ever paid Seller instead of Buyer. Buyer caused a notice of transfer to be filed in the Bankruptcy Court. On Nov. 29, defendant Attestor Value Master Fund LP acted as Buyer's agent and filed a "Transfer of Claim Other Than For Security" in the Bankruptcy. Agent is an United Kingdom company, and is Buyer's sole member. Buyer assigned Agent its right to receive payments on the claim. Plaintiff commenced this action on May 30, 2024, asserting claims against Buyer and various Seller affiliates. Those defendants moved to dismiss on July 26, 2024. The Seller entities moved to dismiss in light of the CSA's arbitration clause. On Sept. 6, 2024, Plaintiff voluntarily dismissed the Seller entities and amended its complaint. The Amended Complaint removed the Seller entities and added Agent as a defendant. The Amended Complaint asserts three causes of action: (1) equitable conversion against Buyer and Agent, (2) tortious interference with contract against Buyer, and (3) unjust enrichment against Buyer and Agent. On Oct. 16, 2024, Defendants moved to dismiss the Amended Complaint under Court of Chancery Rule 12(b)(2) for lack of personal jurisdiction and Rule 12(b)(6) for failure to state a claim. Plaintiff asserts this Court has personal jurisdiction over the nonresident Defendants under 10 Del. C. Sec. 3104 because: (1) Buyer, through Agent, filed a notice of transfer in the Bankruptcy; (2) Buyer purchased and tortiously interfered with a "Delaware based asset" that is "subject to the Bankruptcy Case pending in the United States Bankruptcy Court for the District of Delaware"; (3) Buyer, through its assignee, will be paid for the Claim through the Bankruptcy; (4) Buyer is a member of the Ad Hoc Committee; and (5) Buyer is one of the largest creditors in the Bankruptcy. Plaintiff asserts this Court has jurisdiction over Agent because: (1) it filed the notice of transfer on Buyer's behalf; and (2) Buyer assigned the beneficial interest of some of its customer claims to Agent. Vice Chancellor Zurn concludes the notice of transfer lacks the requisite nexus to Plaintiff's claims. According to the Court, the ACA, not the notice of transfer, dictated ownership and rights to distribution. Vice Chancellor Zurn explains, "While the notice of transfer provided Defendants with notice of bankruptcy filings and direct distribution, those benefits are unrelated to Plaintiff's lost right to be paid on the claim, Defendants' alleged wrongful interference with that right, and Defendants' resultant ability to be paid." "Plaintiff's tortious interference and unjust enrichment claims are based on the two contracts to purchase the customer claim, which lack any Delaware ties. Defendants' administrative filing with the Bankruptcy Court months after allegedly busting Plaintiff's agreement to buy the claim lacks the requisite nexus to its claims based on busting that agreement." A copy of the Court's Opinion dated August 15, 2025, is available at https://urlcurt.com/u?l=FYcZDM About FTX Trading Ltd. 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 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. At 4:30 a.m. on Nov. 11, Bankman-Fried ultimately 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 million 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 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 bankruptcy counsel; Young Conaway Stargatt & Taylor, LLP as Delaware and conflicts counsel; FTI Consulting, Inc. as financial advisor; and Jefferies, LLC as investment banker. 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 =========== BRAZIL: Trails Mexico and Colombia as Q2 Growth Falters ------------------------------------------------------- The Rio Times Online reports that Brazil's Central Bank reported that the economy grew only 0.3 percent in the second quarter of 2025, after a 1.4 percent gain in the first quarter. The bank's IBC-Br index, a proxy for GDP, shows the slowest pace since 2023, with services growing 0.7 percent, industry nearly flat at 0.1 percent, and agriculture shrinking 3.1 percent, according to The Rio Times Online. The slowdown reflects the impact of Brazil's policy rate, the Selic, held at 15 percent, its highest level in almost two decades, the report notes. The Central Bank confirmed that rates will remain elevated for a "prolonged period," limiting borrowing and investment, the report discloses. Inflation has eased to 5.23 percent in July, but it remains above the official 3 percent target, the report relays. Financial markets expect Brazil's economy to expand 2.21 percent in 2025, well below the 3.4 percent achieved in 2024, the report says. The bank itself projects 2.1 percent growth. In June, activity fell 0.1 percent after a 0.7 percent drop in May, showing how tight financial conditions weigh on momentum, the report relates. The latest figures also reflect structural pressures, the report relays. A new 20 percent import tax on small cross-border e-commerce purchases and a higher state-level tax on these goods increase prices for consumers, the report notes. At the same time, Brazil secured greater flexibility within Mercosur to exclude up to 150 items from the common external tariff, a move designed to ease input costs for domestic industries, the report discloses. Brazil's Growth Slows Amid Tariffs and High Rates The government also extended 25 percent tariffs on steel imports, shielding producers while raising costs for manufacturers that depend on the material, the report notes. Regional comparisons underline Brazil's position. Mexico's economy grew 0.7 percent in the same quarter, with inflation at 3.5 percent and interest rates at 7.75 percent, the report discloses. Colombia expanded 0.5 percent, with inflation at 4.9 percent and rates at 9.25 percent, the report says. Argentina recorded a 5 percent annual increase in May activity, although monthly numbers stagnated, and inflation still exceeds 36 percent annually, the report relays. Brazil therefore continues to grow, but at a pace that lags regional peers, the report discloses. Services provide the main support, while agriculture reverses earlier gains, the report says. High rates anchor inflation expectations but limit stronger expansion, the report relays. The balance between protecting industries with tariffs and containing consumer costs remains fragile, the report notes. The official GDP report for the second quarter will be released by the Brazilian Institute of Geography and Statistics on September 2, the report relates. Until then, the IBC-Br results give the clearest view of an economy adjusting to high interest rates, trade barriers, and slowing momentum, while still managing modest but positive growth, 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. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: ProConsumidor Denies Chicken Costs DOP125 ------------------------------------------------------------- Dominican Today reports that following the recent statements by former President Leonel Fernandez about the increase in chicken prices, the executive director of the National Institute for the Protection of Consumer Rights (Pro Consumidor), Eddy Alcantara, insisted that this statement does not correspond to the facts reflected in the national market. "It's not true that chicken has reached RD$125 in markets or supermarkets. It's not true, and I'm going to tell you this in every way possible. I invite him, and it's not a challenge, and I invite his economists to go live with cameras to the markets," he emphasized, asserting that if this were true, he would resign from his state position, according to Dominican Today. His comment is based on the moment when President Luis Abinader offered the leader of the Fuerza del Pueblo (FP) a trip to the Food and Agriculture Organization of the United Nations (FAO) to analyze the Government's food programs; Abinader responded that just because chicken costs 125 pesos, it wasn't necessary to travel so far, the report notes. Alcantara criticized Fernandez for promoting merchants with such comments, leading consumers to believe this is a reality, and for selling things at high prices that hurt consumers' wallets, the report relays. He clarified that during the market discussions, he stated that the pound is traded at RD$64 and RD$68, whereas in supermarkets, the highest cost is listed at RD$87, the report relays. However, he did not rule out the possibility that some distant grocery store that purchased the product through various links in the chain might have a higher price, the report notes. "Now, when you talk about RD$125 in the market, it's because you don't know the marketing mechanism," he said, explaining that chicken maintains the price it had three months ago because, even though 30% of chickens die on farms during high temperatures, Abinader anticipated this and froze two million chicken units to cover this loss, the report discloses. "The price now is the same as it was, except for some fluctuations up and down. It's the same as it was in May," he reiterated, also alleging the existence of excessive inflation caused by exogenous factors that are affecting all global economies, including the Dominican Republic, the report notes. He urged the former president not to misinform the Dominican population to gain followers in the 2028 elections, the report says. Likewise, the Minister of Industry, Commerce, and MSMEs, Víctor "Ito" Bisono, stated that throughout the year, it is normal for certain products to fluctuate over time due to factors such as weather, phytosanitary conditions, and specific demand, the report relays. Regarding this particular issue, he stated that high temperatures affect the price of this food, creating temporary fluctuations that eventually return to normal, the report discloses. "Prices can fluctuate one way or another," he told the press, arguing that when prices rise due to shortages, the fluctuation will last as long as it takes for the chicken to grow for consumption, usually two or three months, the report notes. Regarding possible import plans for this product, he replied that when necessary, it is done, as it is part of the supply and price table that they review to provide stability and peace of mind, 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. DOMINICAN REPUBLIC: Promoted as Hub for Japanese Companies ---------------------------------------------------------- Dominican Today reports that the Dominican Republic strengthened economic and commercial ties with Japan through an official mission organized by the Dominican Embassy in Japan, Jetro, and ProDominicana. The forum highlighted the country as a strategic destination for Japanese investment, citing its location, macroeconomic stability, skilled workforce, and incentives in sectors such as free trade zones, tourism, renewable energy, real estate, automotive, aeronautical, technology, biomedical, semiconductor, and mining industries, according to Dominican Today. Trade between the two countries reached US$2.71 billion from 2019 to 2024, with Dominican exports to Japan rising 90.5% in 2024 alone, the report notes. Significant growth was seen in medical instruments (135.5%), cocoa beans (121.7%), optical instruments, cocoa products, and pharmaceuticals, the report notes. Minister of the Presidency Jose Ignacio Paliza emphasized the Dominican Republic as a reliable and strategic partner with a favorable investment climate, the report relays. The delegation, including Minister of Culture Roberto Angel Salcedo, Vice Minister Hugo Rivera, and Ambassador Edward Perez Reyes, visited key Japanese companies such as Yazaki, JOIN, and ShinMaywa, and participated in Keindaren, Japan's main business council, the report relays. They also promoted tourism to the Asian market, reinforcing the Dominican Republic's strategy to diversify international partnerships and position itself as an attractive destination for investment and trade, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. Standard & Poor's credit rating for Dominican Republic was raised to 'BB' in December 2022 with stable outlook. Moody's credit rating for Dominican Republic was last set at Ba3 in August 2023 with the outlook changed to positive. Fitch, in December 2023, affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the outlook to positive. ============= J A M A I C A ============= JAMAICA: Total Factor Productivity Below Regional Counterparts -------------------------------------------------------------- RJR News reports that Mikhail Urquhart, Senior Director of Research at the Jamaica Productivity Centre, has observed that Jamaica's total factor productivity remains below that of its regional and international counterparts. She says boosting productivity will require lowering energy costs, improving labour force training, and developing a proper public transportation system, including upgrades to the rural road network, according to RJR News. Ms Urquhart also stressed the need for greater application of science, technology, and research in the agriculture sector, which she noted has the lowest productivity levels in the country despite employing the largest share of the workforce, 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: Recovery for Unsecureds Still to Be Determined ------------------------------------------------------------------ Ascend Performance Materials Holdings Inc. and affiliates filed with the U.S. Bankruptcy Court for the Southern District of Texas a Disclosure Statement for Joint Plan of Reorganization dated August 12, 2025. Ascend is one of the world's largest, fully integrated producers of nylon, a plastic used in everyday essentials, like apparel, carpets, and toothbrushes, as well as new technologies, including electric vehicles and solar energy systems. Since the Petition Date, the Debtors have engaged in extensive negotiations with vendors, customers, and Sale-Leaseback counterparties to ensure a smooth transition into chapter 11 and streamline the Debtors' operations. Among other things, as of the date hereof, the Debtors have executed trade agreements with over one hundred of their key vendors, representing over ten percent of the Company's vendor base and resulting in the resolution of approximately forty percent of the vendor claims against the Debtors. These trade agreements ensured continued operational stability with suppliers of critical materials and services that are necessary for the Debtors' operations. The Debtors, with the assistance of Hilco, Kirkland, and PJT, are also engaging in extensive negotiations with Sale-Leaseback counterparties to improve agreement terms and strengthen the Debtors' balance sheet and cost structure. Pursuant to Articles II.B and III.B, of the Plan, Holders of Allowed Claims shall receive the following treatment in full and final satisfaction, settlement, release, and discharge of their Claims and Interests: * Each Holder of an Allowed DIP ABL Claim shall (a) receive payment in full in Cash of such Claim or (b) at such Holder's election, roll such Claim into the Exit ABL Facility in a cashless dollar-for-dollar exchange, and (c) receive payment in full in Cash of accrued interest and fees due under the DIP ABL Facility prior to the effectiveness and conversion of any such Claim into the Exit ABL Facility pursuant to the foregoing clause (b). * Each Holder of an Allowed DIP Term Loan Claim shall receive its Pro Rata share of: (a) the DIP Equity Recovery; and (b) at the election of each Holder of an Allowed DIP Term Loan Claim, the right to participate up to their Pro Rata share of either or both of the following: (i) the Equity Subscription Rights; and/or (ii) the Debt Subscription Rights. * Each Holder of an Allowed Other Secured Claim shall receive, at the Debtors' or the Reorganized Debtors' option, with the [reasonable consent] of the Required DIP Term Loan Lenders, either (i) in full and final satisfaction of such Allowed Other Secured Claim, payment in full in Cash of its Allowed Other Secured Claim, (ii) in full and final satisfaction of such Allowed Other Secured Claim, the collateral securing its Allowed Other Secured Claim, (iii) Reinstatement of its Allowed Other Secured Claim, or (iv) such other treatment rendering its Allowed Other Secured Claim Unimpaired in accordance with section 1124 of the Bankruptcy Code. * Each Holder of an Allowed Other Priority Claim shall receive such treatment consistent with section 1129(a)(9) of the Bankruptcy Code. * Each Holder of an Allowed Term Loan Claim shall receive its Pro Rata share of the Term Loan Equity Distribution. * Each Holder of an Allowed Asset Financing Agreement Claim shall receive its Pro Rata share of the applicable Asset Financing Takeback Debt. * All Allowed General Unsecured Claims shall be canceled, released, and extinguished and will be of no further force or effect, and Holders of Allowed General Unsecured Claims shall not receive any distribution, property, or other value under the Plan on account of such Allowed General Unsecured Claims. * Each Interest in Ascend Parent and APM Disc shall be canceled, released, discharged, and extinguished without any distribution and will be of no further force or effect, and each Holder of an Interest in Ascend Parent and/or APM Disc shall not receive or retain any distribution, property, or other value on account of its Interest in Ascend Parent and/or APM Disc. Pursuant to Article IV.D of the Plan, the Plan also provides for a $[100] million Equity Rights Offering and a $[100] million Debt Rights Offering, which will recapitalize the Company on the Effective Date and position the Company to meet its financial and operational obligations as they come due. The Plan addresses the Asset Financing Agreement Claims and all of the Asset Financing Takeback Debt. The Plan contemplates a recapitalization of the Debtors, through which the Debtors will issue the New Interests to the Holders of Term Loan Claims, implement both an Equity Rights Offering and a Debt Rights Offering, enter into the Exit ABL Facility and the Exit Holdco Loan Facility, and adopt a Management Incentive Plan. New Interests will also be issued in satisfaction of DIP Term Loan Claims, while DIP ABL Claims will be paid down in full in Cash or, solely at the election of each DIP ABL Lender, rolled into the Exit ABL Facility. Class 5 consists of General Unsecured Claims. All Allowed General Unsecured Claims shall be canceled, released, and extinguished and will be of no further force or effect, and Holders of Allowed General Unsecured Claims shall not receive any distribution, property, or other value under the Plan on account of such Allowed General Unsecured Claims. The Disclosure Statement still has blanks as to the estimated allowed amount and percentage recovery for holders of unsecured claims. The Debtors and the Reorganized Debtors, as applicable, shall fund distributions under the Plan with: (1) Cash on hand, including Cash from operations, the DIP Facilities, and the proceeds of the Equity Rights Offering and the Debt Rights Offering; (2) the Equity Subscription Rights; (3) the Debt Subscription Rights; (4) the New Interests; (5) the Exit ABL Facility; (6) the Exit Holdco Loan Facility, as applicable; and (7) the Asset Financing Takeback Debt. A full-text copy of the Disclosure Statement dated August 12, 2025 is available at https://urlcurt.com/u?l=Sxu7dk from Epiq Corporate Restructuring, LLC, claims agent. Co-Counsel to the Debtors: Jason G. Cohen, Esq. Jonathan L. Lozano, Esq. BRACEWELL LLP 711 Louisiana Street, Suite 2300 Houston, Texas 77002 Tel: (713) 223-2300 Fax: (800) 404-3970 Email: jason.cohen@bracewell.com jonathan.lozano@bracewell.com Co-Counsel to the Debtors: Christopher Marcus, P.C. Derek I. Hunter, Esq. KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, New York 10022 Tel: (212) 446-4800 Fax: (212) 446-4900 Email: cmarcus@kirkland.com derek.hunter@kirkland.com About Ascend Performance Materials Holdings The Debtors, together with their non-Debtor 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 eleven manufacturing facilities that span the United States, Mexico, Europe, and Asia. Ascend Performance Materials Holdings Inc. and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90127) on April 21, 2025. In the petitions signed by Robert Del Genio, chief restructuring officer, the Debtors disclosed $1 billion to $10 billion in both estimated assets and liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Bracewell LLP and Kirkland & Ellis LLP as counsel; PJT Partners, Inc. as investment banker; FTI Consulting, Inc. as restructuring advisor; and Deloitte LLP as tax advisor. Epiq Corporate Restructuring LLC is the Debtors' claims, noticing, and solicitation agent. ===================== P U E R T O R I C O ===================== PUERTO RICO: Board Purge May Not Bring Utility Bond Payments ------------------------------------------------------------ Rick Archer at law360.com reports that President Donald Trump's dismissal of nearly the entire board overseeing Puerto Rico's debt restructuring may result in a body that is more friendly to the island's electric utility bondholders, but their hopes for full payment will likely remain out of reach, experts said. Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agenciesÃƒÆ'Ã‚Â¢ÃƒÂ¢Ã¢â‚¬Å¡Ã‚Â¬Ãƒâ€¦Ã‚Â¡ Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. PUERTO RICO: Utility Bondholders Say They'll End Reorg Deal ----------------------------------------------------------- Rick Archer at law360.com reports that a group of Puerto Rican electric utility bondholders have told a New York federal judge they will pull out of a three-year-old deal to support the utility's proposed restructuring plan if it is not confirmed by October. Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agenciesÃ¢â‚¬Å¡ Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Sees Less Forex, Lower Tax Revenue, Job Losses ----------------------------------------------------------------- Andrea Perez-Sobers at Trinidad and Tobago Guardian reports that Republic Bank economist, Garvin Joefield, is warning of far-reaching implications for the domestic economy of the revelation that T&T stands to lose US$291.9 million in potential annual export revenue following the imposition of a 15 per cent tariff on its exports to the United States. The revelation came in a Business Guardian exclusive report of analysis conducted by the Caricom Private Sector Organization (CPSO), according to Trinidad and Tobago Guardian. Joefield said that beyond the immediate figure lies a host of deeper consequences for the country, the report notes. "Behind those figures US$291 million is the loss of foreign exchange earnings, a potential decline in government tax revenue, and sadly, job losses and income reductions for many households," he noted, the report relays. "The broader impact could be a tightening of the already constrained foreign exchange market, which would have a knock-on effect on overall business activity in Trinidad and Tobago," Joefield added. While key commodities such as crude oil and liquefied natural gas (LNG), are currently exempt from the tariff, the new measure is expected to reduce demand for other local exports, placing pressure on manufacturers and exporters to reassess their strategies, the report discloses. Joefield, though cautious, suggested that the country could treat this setback as an opportunity to re-evaluate and pivot, the report relays. "I always say adversity comes with opportunity," he said, adding, "This is a chance for companies at the micro level and for the Government and broader sectors at the macro level to rethink how we've been approaching export markets," he added. He emphasized the importance of diversifying export destinations, something that has long been on the national agenda, the report notes. "Yes, looking for new export markets is critical. It has been critical for years, and hopefully, this development will accelerate the push. We need to deepen our trade relationships within Caricom, including markets we haven't fully penetrated. Latin America offers promising avenues, as does Africa where we already have ties with countries like Ghana. There is also Asia, particularly India," the report discloses. Joefield urged stakeholders across sectors to see this as a turning point, the report says. "If there was ever a time to act on diversifying our export base, it is now. The challenge is clear, but so too is the opportunity." For international relations expert Dr Anthony Gonzales, the estimate of the almost US$300 million loss remains speculative without a detailed breakdown of trade flows and tariff structures. What is clear, he said, is that the sectors likely to be hardest hit include chemicals, metal exports, and non-energy manufactured goods, the report relays. "We've benefited significantly from the Caribbean Basin Initiative, which granted many of our products duty-free access to the US. If that window is narrowing, then the adjustment could be painful, especially for smaller exporters," the report notes. Gonzales noted that small and medium-sized manufacturers in the food and beverage space, particularly those servicing diaspora markets in the US, could face a steep climb to remain competitive, the report says. He said these businesses rely heavily on predictable access to US buyers and a 15 per cent increase in landed costs could be the difference between maintaining contracts or being priced out," the report notes. The issue, Gonzales stated, is compounded by uncertainty over whether the tariff changes are uniformly applied, as in the case of Russia, for instance, tariffs have reportedly been raised to less than 15 per cent on certain exports, the report discloses. "The structure is not consistent across all countries. That makes it even harder to plan," he explained. The international expert indicated that one of the few viable short-term responses available to exporters may be the exploration of alternative markets, the report relays. "We need to act swiftly to identify regional opportunities, possibly in Guyana or Suriname, where demand is rising," the source said, notes the report. "That would soften the blow, but such pivots take time, logistics and government support," he added. Gonzales took note of the current lack of concrete data on which to build a precise forecast, the report notes. "I haven't had the time to dig into the granular trade and tariff statistics, and without that work, it's difficult to confirm or dispute the US$300 million loss figure. But what's undeniable is that we face a significant challenge," the report adds. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. 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