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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, February 6, 2026, Vol. 27, No. 27
Headlines
A N T I G U A A N D B A R B U D A
ANTIGUA AND BARBUDA: Economic Expansion Continued in 2025, IMF Says
A R G E N T I N A
ARGENTINA: Government Declares Emergency Over Patagonia Wildfires
ARGENTINA: JP Morgan Refills Dollar Stash
EDENOR: $93MM Notes Add-on No Impact on Moody's 'B3' CFR
B R A Z I L
AZUL SA: Taps Grant Thornton Auditores Independentes as Auditor
J A M A I C A
JAMAICA: Trade Deficit Widened During 1st 9 Months of 2025
M E X I C O
GOLD RESOURCE: Agrees to US$372MM All-Stock Merger With Goldgroup
P U E R T O R I C O
LINEAS DE PUERTO: Case Summary & Seven Unsecured Creditors
- - - - -
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A N T I G U A A N D B A R B U D A
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ANTIGUA AND BARBUDA: Economic Expansion Continued in 2025, IMF Says
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An International Monetary Fund (IMF) staff team, led by Mr. David
Moore, visited St. John's during January 19–30 to hold
discussions for the 2026 Article IV consultation with the Antigua
and Barbuda authorities. At the end of the visit, Mr. Moore issued
the following statement.
Recent Developments
Antigua and Barbuda's economic expansion continued in 2025,
supported by a pickup in construction, alongside easing
inflationary pressures. The most recent data indicate real GDP
growth of 2 1/2 percent in 2024, reflecting a mix of strong tourist
arrivals and slower construction activity. For 2025, staff
estimates growth at 3 percent, reflecting instead a mix of
rebounding construction activity but flat tourist arrivals.
Inflation, which had averaged 6.2 percent in 2024, moderated to an
estimated 1.2 percent in 2025, in part reflecting substantial
one-off declines in transportation prices.
The public debt burden has eased substantially in recent years, but
significant arrears and financing needs are ongoing challenges. The
debt-to-GDP ratio, which peaked around 100 percent during the
pandemic shock in 2020, has since fallen to an estimated 68 percent
in 2025—narrowing the gap with the Eastern Caribbean Currency
Union (ECCU) benchmark of 60 percent by 2035. Nevertheless,
substantial arrears to Paris Club and domestic creditors, and high
gross financing needs, have persisted. The authorities are
continuing the process of validating the extent of their arrears to
domestic suppliers and are pursuing a liability management
operation with a view to refinancing domestic debt, reducing
arrears, and financing resilience-building projects.
The fiscal position strengthened in 2024–25, reflecting both
improved tax collections and one-off effects. In 2024, the fiscal
primary balance improved to 4 percent of GDP, up 3 1/2 percentage
points from 2023, reflecting a combination of increases in several
indirect taxes and one-off asset forfeiture receipts. In 2025, the
estimated primary balance reached nearly 5 percent of GDP,
underpinned by higher tax revenues, stronger inflows under the
Citizenship by Investment Program (CIP), restraint in current
spending, and a modest (albeit less than budgeted) increase in
capital spending. Tax revenues reached just over 18 percent of GDP
in 2025, an increase of nearly 1 1/2 percentage points from 2024,
albeit largely reflecting one-off collections of tax arrears
(around 1 percent of GDP).
The current account deficit widened in 2025. After narrowing
sharply in 2024 to around 7 1/2 percent of GDP, the current account
deficit in 2025 is estimated to have reverted to around 11 1/2
percent of GDP, due mainly to increased construction-related
imports and flattening tourist arrivals. Foreign direct investment
inflows continued to finance the current account deficit,
supplemented by higher CIP-related capital transfers. The external
position in 2025 is assessed as moderately weaker than implied by
medium-term fundamentals and desirable policies.
The overall financial system remains stable and liquid. Credit
growth has moderated: bank lending to the private sector
decelerated from 12 1/2 percent in the year to end-2024 to just
below 5 percent in the year to November 2025, while credit union
lending growth moderated from 6 percent (over a year earlier) in
2024Q4 to 5 1/4 percent in 2025Q3. Banks' nonperforming loan (NPL)
ratios have remained below the 5 percent prudential threshold since
end-2024, though credit union NPLs remain somewhat higher. The ECCU
regional credit bureau has been launched in Antigua and Barbuda for
banks and two credit unions, with plans to expand coverage to other
credit unions.
Outlook
Staff's baseline is for Antigua and Barbuda's economic expansion to
continue at a stable pace. Staff projects real GDP growth in 2026
of 2.8 percent, converging in the medium term to the estimated
potential growth rate of 2 1/2 percent. This projection assumes a
pickup in visitor arrivals, supported by Antigua and Barbuda's
hosting of events including the Commonwealth Heads of Government
Meeting in November 2026, and expanded room capacity and port
facilities. Staff projects inflation to stabilize at around 2
percent by end-2026, converging to levels in ECCU peers and the
United States. The current account deficit is expected to narrow
modestly from 11 1/2 percent of GDP in 2025 to 10 3/4 percent in
2026 and to continue gradually improving over the medium term.
Staff's baseline envisages a further gradual decline in the public
debt-to-GDP ratio, consistent with meeting the regional debt target
(60 percent of GDP before 2035), but with arrears and high
financing needs yet to be fully addressed.
Risks to the outlook are tilted to the downside amid global
headwinds, but upside risks are significant as well. External risks
include prolonged global uncertainty, deepening geopolitical
fragmentation, and commodity price volatility, which could
potentially dampen financial inflows and growth prospects.
CIP-related inflows are subject to downside risks following recent
U.S. travel policy announcements. Additional downside risks stem
from vulnerabilities related to extreme weather events and capacity
constraints in the construction sector. There are also significant
upside risks, including stronger tourism demand; greater payoffs
from investments in improved air connectivity, development of new
cruise facilities, and hosting of special events; and accelerated
progress in implementing productivity-enhancing structural
reforms.
Public Debt and Fiscal Policy
A comprehensive strategy for addressing persistent arrears and
elevated financing needs remains key to restoring debt
sustainability. Establishing a clear and credible pathway to tackle
these challenges would help create fiscal space and improve access
to external financing. Elements should include: (i) completing the
validation of potential domestic arrears; (ii) developing a
comprehensive arrears clearance strategy covering all creditors,
including Paris Club and domestic creditors; (iii) continuing to
build fiscal buffers, consistent with the authorities’
medium-term fiscal framework, to alleviate pressures from
still-high financing needs; and (iv) strengthening cash management
and expenditure controls, to reduce risks of accumulating new
arrears.
The 2026 Budget envisages improved revenue performance and higher
investment, underpinned by robust economic growth. The 2026 Budget
Statement projects strong gains from the Antigua and Barbuda Sales
Tax (ABST), property tax, and import duties, based on projected
real GDP growth of 5 per The Budget also envisages further
collection of tax arrears, additional efforts to strengthen tax
compliance, and continued CIP inflows. On the spending side, the
Budget projects capital spending to increase to around 3 1/2
percent of GDP, up some 2 percentage points from the estimated 2025
outturn. Using staff's baseline macroeconomic assumptions,
implementation of the 2026 Budget is estimated to imply a primary
surplus of 1.6 percent of GDP, within the target range under the
fiscal resilience guidelines (1 1/2–2 percent of GDP). However,
this estimate does not take into account foregone revenue from the
just-announced temporary reduction in the ABST rate from 17 to 7
percent, as the timing and duration of this measure have not yet
been announced.
Stronger fiscal buffers would place debt on a firmer downward
trajectory, ease financing needs, and help the authorities reach
their medium-term fiscal targets.
Revenue mobilization remains a pressing need. Despite recent
progress, staff assesses that the underlying fiscal position,
excluding temporary factors, has yet to fully align with the
authorities' own objectives—a tax revenue-to-GDP ratio of 20
percent and a primary surplus of 1 1/2–2 percent of GDP. Tax
collections remain well below those of regional peers. In this
context, the announced temporary reduction in the ABST rate will
reduce revenue collection; promptly restoring the ABST rate is
needed for progress towards the authorities’ revenue objective.
Staff encourages continued efforts to broaden the tax base, address
inefficiencies in ABST collections, accelerate implementation of HS
2022 customs and property tax reforms, and further reduce tax
exemptions.
Tax administration reforms should continue. Key priorities include
rolling out a new IT system; introducing an e-filing and e-payment
system and a single-window system at customs to enhance compliance
and efficiency; and establishing a large taxpayer unit. Timely
completion of IT upgrades will be critical to further enhancing
revenue collection and operational efficiency.
Preserving room for capital spending should be accompanied by
restraint in current spending. With overall spending already low as
a share of GDP, staff sees merit in growth-enhancing capital
spending consistent with implementation capacity and fiscal
sustainability. At the same time, current spending should be
contained to preserve fiscal space, reduce financing needs, and
enable rebuilding of fiscal buffers.
The need to reform the social assistance framework remains
pressing. Streamlining fragmented social programs—currently
administered across five ministries—and establishing a
centralized beneficiary database will be essential to improve
targeting, reduce administrative duplication, and strengthen
service delivery. Addressing the barriers to these reforms,
including stepping up cooperation between relevant stakeholders, is
warranted.
The forthcoming actuarial review of the social security fund (SSF)
will assess the long-term financial health of the social security
system. Pending the findings of the review, a range of options for
responding to future shortfalls should be kept under consideration
to ensure long-term solvency of the SSF, mitigate risks, and retain
flexibility for the SSF to adapt to evolving demographic and
economic conditions.
Stronger fiscal institutions and oversight would enhance
accountability, transparency, and policy credibility, while helping
to contain fiscal risks. The recent operationalization of the
Fiscal Resilience Oversight Committee (FROC) and the new
state-owned enterprises (SOEs) oversight function within the
Ministry of Finance (MoF) are welcome steps. In addition, the
authorities tabled the first FROC report in Parliament in December
2025. However, the MoF’s SOE oversight function remains
understaffed, and capacity at the Supreme Audit Institution (SAI)
also appears strained. To improve fiscal transparency, staff
encourages the regular publication of FROC reports, timely
reporting of audited fiscal accounts, and ensuring adequate
resourcing of the SOE oversight function and the SAI. Staff also
encourages regular disclosure of key SOE financial data once
additional capacity is in place.
Financial Sector Policies
Strengthening financial sector oversight and resilience depends on
both regional and national efforts. At the regional level, the ECCB
is strengthening prudential regulation and supervision, taking
steps towards establishing a deposit insurance scheme, and planning
to harmonize regulation for insurers and private pension funds. At
the national level, a planned shift towards more risk-based
supervision of credit unions deserves support. Efforts by the
national regulator to strengthen provisioning and capital of credit
unions should continue.
Efforts under way to strengthen financial intermediation, while
maintaining financial stability, can help foster inclusive growth.
Businesses continue to identify limited access to finance as a key
challenge, while banks point to a scarcity of bankable projects and
hold a large share of assets abroad. In this context, the recent
launch of the regional credit bureau for banks in Antigua and
Barbuda—and the extension under way to include credit unions - is
a welcome step towards reducing informational asymmetries between
lenders and borrowers and broadening access to credit.
Additionally, addressing government arrears to domestic suppliers
could help improve firms’ financial positions and
creditworthiness. Raising the awareness of the regional partial
credit guarantee scheme could help increase the uptake of the
scheme and unlock lending to underserved sectors. Staff also
welcomes ongoing initiatives to improve financial literacy.
Ensuring strong AML/CFT and CIP frameworks remains key to
safeguarding financial integrity. The National Risk Assessment -
launched in 2025 and expected to be completed in the coming months
- is identifying key risks and will form the basis for a national
action plan. Efforts are underway to further strengthen the AML/CFT
framework in line with the 2025 updates to the FATF standards, in
preparation for the next regional mutual assessment. To enhance
governance of CIPs across the region, an agreement establishing an
independent regulator for the industry has been enacted into law in
Antigua and Barbuda and other ECCU countries with CIPs. Once
operational, the new regulator is expected to enhance transparency
and governance of the CIPs by setting and enforcing uniform
regulatory standards and publishing annual reports on compliance.
Structural Policies
Improving connectivity and competitiveness is crucial for Caribbean
trade performance, economic resilience, and sustainable growth.
Staff analysis identifies shipping and air connectivity as binding
constraints on regional trade and tourism. To ease these
constraints, building on recent and ongoing port and airport
projects, priorities could include modernizing port and digital
infrastructure and reducing red tape in customs procedures.
Aligning customs regulations among regional partners could further
boost competitiveness. Where there is a case for new infrastructure
projects, careful cost-benefit analyses to account for fiscal and
debt implications remain crucial. Over time, enhanced connectivity
and competitiveness could enhance Antigua and Barbuda's potential
growth and resilience to external shocks.
Further reforms to raise business-sector productivity should
address constraints in trade regulations and financial access.
Staff analysis suggests that the largest gains would come from
addressing constraints in customs and trade regulations and access
to finance. Implementing a single electronic window for trade
facilitation would streamline processing, enhance transparency, and
reduce administrative costs. These efforts should be complemented
by continued initiatives to promote financial inclusion.
Addressing persistent skills shortages calls for increased take-up
of skills training aligned with employers' needs. Skills shortages
remain obstacles to firm productivity and economic growth. Analysis
of the 2018 labor force survey finds a positive relationship
between skills training and earnings. Stakeholders should continue
to encourage both firms and workers to invest in skills training
and foster increased awareness of domestic career prospects.
Improving data—through the development of a skills-in-demand
survey and more regular labor force surveys—would support better
monitoring of skills gaps and inform evidence-based policies.
Data Provision
Despite recent improvements in data collection, strengthening
statistical capacity remains crucial to support evidence-based
policymaking. Data gaps include the absence of GDP by expenditure,
outdated CPI weights, and labor force data. The previously
postponed Population and Housing Census is now being conducted. The
ongoing transition to the National Bureau of Statistics is welcome
and, if the Bureau is adequately resourced, is expected to
strengthen statistical capacity and data integrity over the medium
term.
The IMF staff team thanks the authorities and other counterparts
for the productive collaboration and the candid and constructive
policy dialogue.
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A R G E N T I N A
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ARGENTINA: Government Declares Emergency Over Patagonia Wildfires
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Buenos Aires Times reports that President Javier Milei's government
declared an emergency in four provinces in Patagonia, where
wildfires have ripped through vast tracts of forest since the start
of the Southern Hemisphere summer.
In recent days, local governors have appealed for more help from
the government, criticising inaction and demanding increased aid,
according to Buenos Aires Times.
The biggest blazes are in southern Chubut Province, where at least
45,000 hectares of forest have gone up in smoke since mid-January
during the hot southern hemisphere summer, the report notes.
Hundreds of firefighters are trying to prevent the flames reaching
populated areas, the report relays.
Cabinet Chief Manuel Adorni said a state of emergency would take
effect in Chubut, Rio Negro, Neuquén and La Pampa provinces of
Patagonia, the report discloses.
"The Decree of Necessity and Urgency declaring a Fire Emergency in
the provinces . . . . is being signed," he wrote on social media,
the report says.
The report discloses that the Executive Branch justified the use of
the decree by considering that the ordinary legislative process
would delay the adoption of urgent measures.
Los Alerces National Park, a vast reserve of pristine forest and
glacial lakes, has been among the worst-affected areas with some
20,000 hectares burnt, the report says.
In the past few days, colder weather and drizzle have provided some
respite for firefighters, the deputy director of the federal
emergencies agency, Ignacio Cabello, told the local El Chubut FM
radio station, the report notes.
There are about 450 firefighters in the area, supported by 19
aircraft, he added.
"Today, the weather conditions helped," Manuel, a volunteer
firefighter in the Chubut town of Cholila, which is threatened by
flames, confirmed, the report says.
"We are ensuring that the fire doesn't continue to expand," said
the man, who did not wish to give his surname, the report notes.
"I've been a firefighter for 15 years and this is the first time
I've seen a fire burn like this. We can't cope," he added.
The report relays that the National Fire Management Service (SNMF)
has declared a red alert for fire danger in the region until
Friday, with high temperatures and strong winds expected.
Another major fire near the small Andean town of Epuyen was said by
provincial authorities to be "85 percent contained." Around 22,300
hectares between the Patagonian town and nearby Puerto Patriada
have been destroyed, the report notes.
The fires have been fanned by high temperatures and strong winds at
the height of summer, the report discloses.
On Tuesday, the Milei administration allocated an extra 120 billion
pesos (around US$83 million) to various volunteer firefighting
groups, the report adds.
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.
ARGENTINA: JP Morgan Refills Dollar Stash
-----------------------------------------
David Feliba & Hannah Levitt at Bloomberg News report that with
just days to go before Argentina had to pay billions in debt to
bondholders, President Javier Milei turned to a familiar face for
help.
Bankers at JPMorgan Chase & Co ultimately chipped in about US$340
million as part of a multi-bank repurchase agreement that handed
Argentina much-needed cash, according to Bloomberg News. The deal
has brought the bank's total exposure to Argentina to about US$2
billion, its highest level in a decade, according to people
familiar with the matter, Bloomberg News discloses.
Bloomberg News says that it's the third time in less than a year
that JPMorgan has stepped forward to bolster the Latin American
country's dwindling stash of dollars. The series of transactions
shows Argentina – which has reneged on its debt nine times since
its independence in 1816 – is once again drawing the attention of
Wall Street after lenders spent years on the sidelines, Bloomberg
News notes.
With Economy Minister Luis Caputo focused on preparing for
Argentina's return to international bond markets, banks are
jostling for a chance to reap tens of millions of dollars in fees
as the country looks to satisfy the vast investor appetite for
Argentine debt.
"Investment banks see Argentina as a fertile market for the
future," said Miguel Kiguel, Argentina's finance undersecretary
from 1996 to 1999, Bloomberg News recalls. "The repo itself is
business, but the real opportunity comes when Argentina starts
placing bonds," he added.
Bloomberg News says that no-one is rolling out the welcome mat more
than JPMorgan. The company in March will co-host the country's
first-ever Argentina week at its new headquarters in New York City,
a chance for President Javier Milei and his economic team – a
group packed with some of the bank's own alumni – to hobnob with
investors, energy executives and technology leaders, Bloomberg News
notes.
Bloomberg News discloses that though it still hasn't cracked the
top 20 country exposures that JPMorgan details in its quarterly
regulatory filings, Argentina has grown to become a major market
for the Wall Street giant. The firm now employs nearly 4,000
people in Buenos Aires alone – making the capital its largest hub
in Latin America, Bloomberg News says. The company also recently
signed a new lease to take an additional 20 floors of office space
in the city, Bloomberg News notes.
JPMorgan's history in Argentina stretches back to the 19th century,
when one of its predecessor firms subscribed to a loan to the
government, Bloomberg News relays. A different predecessor opened
an office in Buenos Aires in 1929, Bloomberg News recalls.
At the start of this century, Argentina carried out the biggest
sovereign default ever and spent the ensuing decade in a bruising
legal battle with the hedge fund billionaire Paul Singer over
repayment, Bloomberg News notes. During that time, Argentina had
become something of a pariah state, unable to fly its presidential
plane or dock its naval ships in some cities abroad out of fear
they'd be seized by Singer's lawyers, Bloomberg News says.
By 2016, with the Singer saga behind it, Argentina returned to
global markets and JPMorgan was there: The bank co-led the
country's return via a US$16.5-billion debt offering, Bloomberg
News relays.
Bloomberg News says that the bank has a strong alumni network at
some of the highest ranks of Argentina's government. Caputo
himself built his career as a trader at JPMorgan in the 1990s
before moving to Deutsche Bank AG and later entering public
service, Bloomberg News notes. As Caputo's influence within the
administration has grown, his aides – often hailing from JPMorgan
as well – have moved into senior roles across the Treasury, the
Central Bank and the Foreign Ministry, Bloomberg News discloses.
Those ties have put the bank on better footing to win business as
Argentina makes its way back to markets, Bloomberg News says. But
that overlap has drawn criticism from the political opposition,
which argues the government is prioritising financial deals over
the economy, which is still suffering from weak growth, Bloomberg
News notes. And Caputo has even acknowledged that the country
should reduce its dependency on Wall Street over the long run, even
if it still needs to tap those banks for now, Bloomberg News
relays.
"Caputo and his team know their own minds – they don’t need
Wall Street bankers telling them what to do," said Gregory Makoff,
a former banker who has chronicled Argentina’s recent defaults,
Bloomberg News discloses. "For them, banks were just stopping
places," he added.
Bloomberg News says that the libertarian's early move to bring the
fiscal accounts into a primary surplus, along with recent steps to
rebuild foreign-currency reserves, has helped push Argentina's
hard-currency sovereign bond spreads to the lowest level in seven
years – a shift that is increasingly bringing a return to
international borrowing into view.
Critical Moments
The country has also been helped by the US at critical moments,
Bloomberg News notes. As US President Donald Trump's
administration tried to stem a market sell-off before Argentina's
midterm elections, the bank bought pesos on behalf of the US
Treasury to shore up Milei's currency, Bloomberg News says. The
libertarian's party stormed to victory in the midterm vote,
validating the historic rescue package, Bloomberg News discloses.
The US Treasury also sought to arrange a US$20-billion facility
with Wall Street as part of a lifeline, but plans were shelved as
Milei's win in midterm elections stabilized markets, Bloomberg News
says.
At the time, JPMorgan Chief Executive Officer Jamie Dimon told
Reuters that the full US$20 billion in private-sector financing
"may not be necessary," but added that "we have done special
financing to Argentina in the past; if they need that, we're all
ears," Bloomberg News notes.
In addition to this month's repurchase agreement, JPMorgan has been
involved across multiple parts of Argentina's market reopening,
Bloomberg News relays. For starters, the company is working on
what could become one of the country's largest-ever project finance
transactions, seeking to raise as much as $14 billion for
state-owned oil and gas company YPF SA, Bloomberg News discloses.
The bank was appointed in October to help structure a
debt-for-education exchange, led hard-currency bond issuances for
Argentine corporates in 2024 and was among the top three
underwriters last year, according to data compiled by Bloomberg.
"JPMorgan is very active in the Argentine market," said Marcos
Buscaglia, a co-founder of consulting firm Alberdi Partners. "The
bank has deep ties to the country and to the economic team, along
with a large local back-office operation and senior executives who
happen to be Argentine – factors that, put together, give
JPMorgan strong incentives to stay involved," he added.
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.
EDENOR: $93MM Notes Add-on No Impact on Moody's 'B3' CFR
--------------------------------------------------------
Moody's Ratings said that the B3 Corporate Family Rating and B3
Senior Unsecured (Foreign Currency) debt rating of Empresa
Distribuidora y Comercializadora Norte S.A. (Edenor)'s $385 million
9.75% senior unsecured notes due 2030 are unaffected by the planned
additional issuance of up to $93 million, as an add-on to its
existing 2030 notes. The rating's outlook remains positive.
Net proceeds from Edenor's proposed up to $93 million add-on notes
will be used to strengthen its liquidity position, to support
ongoing liability management initiatives and the company's
investment needs. The notes will amortize in three equal annual
installments in 2028, 2029 and 2030.
Edenor's B3 rating mainly reflects the company's relatively low
financial leverage and strong market position as an essential
provider of electricity distribution services in the northwestern
zone of the greater Buenos Aires metropolitan area and the northern
part of the City of Buenos Aires. The rating is constrained by its
credit links to the Government of Argentina (Caa1 stable) and the
country's regulatory framework with an inconsistent track record on
the sufficiency of tariffs and returns.
The positive rating outlook reflects Moody's expectations that
operating conditions for Edenor will continue to improve over the
next 12 to 18 months. Moody's anticipates that the timeliness and
adequacy of tariff adjustments will support a gradual recovery in
the company's cash flow generation and profitability. These
developments are expected to strengthen the company's financial
profile and reinforce its ability to meet operational and
investment needs.
Empresa Distribuidora y Comercializadora Norte S.A. (Edenor),
headquartered in Buenos Aires, is Argentina's largest electricity
distribution company. It serves about 3.3 million customers within
its exclusive concession area covering the northern part of the
City of Buenos Aires and the northwestern zone of Greater Buenos
Aires. Edenor supplies around 20% of the country's electricity
demand and operates under a regulated monopoly within its license
area.
===========
B R A Z I L
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AZUL SA: Taps Grant Thornton Auditores Independentes as Auditor
---------------------------------------------------------------
Azul S.A. and its affiliates seek approval from the U.S. Bankruptcy
Court for the Southern District of New York to employ Grant
Thornton Auditores Independentes Ltda. as auditor.
The firm's services include:
a. review and revision of the offering memorandum prepared by
Azul S.A. in connection with the Offering;
b. preparation and issuance of comfort letters related to the
review of interim financial statements for the three- and
nine-month periods ended September 30, 2025, in connection
with the offering.
Grant Thornton Brazil intends to charge Azul R$650,000 for the
services performed.
Grant Thornton is a "disinterested person" within the meaning of
section 101(14) of the Bankruptcy Code, according to court
filings.
The firm can be reached through:
Elica Daniela da Silva Martins
Grant Thornton Auditores Independentes Ltda.
Avenida Jose de Souza Campos, 507
Campinas, Sao Paulo, Brazil
Tel: (55) 11 3886-5100
About Azul S.A.
Azul S.A. and affiliates sought protection under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11176) on May 28,
2025, listing up to $10 billion in both assets and liabilities.
Judge Sean H. Lane oversees the case.
The Debtors tapped Davis Polk & Wardwell LLP and Togut, Segal &
Segal LLP as counsel.
On June 13, 2025, the United States Trustee for Region 2 appointed
the Committee under section 1102 of the Bankruptcy Code.
=============
J A M A I C A
=============
JAMAICA: Trade Deficit Widened During 1st 9 Months of 2025
----------------------------------------------------------
RJR News reports that Jamaica's trade deficit widened during the
first nine months of 2025, as the country spent more on imports
while earning less from exports.
Total spending on imports from January to September rose by 3.6
three-point per cent to just over US$5.7 billion, according to RJR
News.
The increase was driven by higher imports of raw material and
intermediate goods, as well as consumer goods, the report notes.
At the same time, export earnings declined by two per cent to about
US$1.34 billion, the report relays.
RJR News discloses that the fall was largely due to lower revenues
from mineral fuels.
The United States remained Jamaica's largest import trading
partner, followed by China, Brazil, Japan and Nigeria, the report
relays. Spending on goods from these countries increased by nearly
seven per cent, the report notes.
On the export side, Jamaica's main markets were the United States,
Russia, Iceland, the Netherlands and Canada, the report adds.
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
===========
GOLD RESOURCE: Agrees to US$372MM All-Stock Merger With Goldgroup
-----------------------------------------------------------------
Gold Resource Corporation disclosed in a regulatory filing that it
entered into an Arrangement Agreement and Plan of Merger with
Goldgroup Mining Inc., a corporation incorporated under the laws of
the Province of British Columbia, and Goldgroup Merger Sub Inc., a
Colorado corporation and direct subsidiary of Goldgroup.
The Arrangement Agreement provides that, among other things and
subject to the terms and conditions of the Arrangement Agreement,
Purchaser Sub will merge with and into the Company, with the
Company surviving and continuing as the surviving corporation as a
direct, wholly owned subsidiary of Goldgroup.
At the Effective Time, each outstanding share of common stock of
the Company, par value $0.001 per share, will be converted into the
right to receive 1.4476 common shares of Goldgroup post-Merger
(adjusted to 0.3619 Resulting Issuer Shares as a result of a
four-for-one share consolidation to be completed by Goldgroup prior
to closing).
Based on the closing price of Goldgroup's common shares on January
23, 2026, the exchange ratio represents a value of US$2.25 per
share of the Company's common stock, reflecting a 39% premium to
the Company's closing price on January 23, 2026. The Transaction
values the Company's common stock at approximately US$372 million
on a fully-diluted in-the-money basis and based on the value of
Goldgroup shares on January 23.
Any stockholder of the Company who would otherwise be entitled to
receive a fraction of a Resulting Issuer Share pursuant to the
Merger (after taking into account all the Company Shares held
immediately prior to the Effective Time by such holder) shall have
their holdings of Resulting Issuer Shares rounded up to the nearest
whole share.
In connection with the entry into the Arrangement Agreement, the
board of directors of the Company unanimously:
(a) determined that the Arrangement Agreement and the
transactions contemplated thereby, including the Merger, are fair
to, and in the best interests of, the Company and its
stockholders;
(b) approved, adopted and declared advisable the Arrangement
Agreement and the transactions contemplated thereby, including the
Merger;
(c) approved the execution, delivery and performance of the
Arrangement Agreement and the consummation of the transactions
contemplated thereby, including the Merger;
(d) resolved to recommend approval and adoption of the
Arrangement Agreement by its stockholders; and
(e) resolved that the Arrangement Agreement be submitted to
the stockholders of the Company.
Treatment of Company Equity Awards:
Pursuant to the Arrangement Agreement, at the Effective Time all
outstanding stock options, deferred share units, and restricted
share units of the Company will be assumed by Goldgroup and
converted into equivalent awards for Resulting Issuer Shares,
adjusted by the Exchange Ratio. Vested DSUs and RSUs subject to
delayed settlement may be paid out if terminated at closing.
Performance share units of the Company will convert into
time-vested RSUs based on performance through the effective date of
the Merger, as determined by the Company Board.
Other Terms; "Non-Solicitation" Restrictions:
The Arrangement Agreement contains customary representations,
warranties and covenants made by each of the Company, Goldgroup and
Purchaser Sub, including, among others, the obligation of the
Company to conduct its business in the ordinary course, consistent
with past practice and to refrain from taking certain specified
actions without the consent of Goldgroup.
In addition, the Arrangement Agreement contains covenants that
require the Company to call and hold a meeting of the stockholders
and use reasonable best efforts to solicit the Company Stockholder
Approval, except to the extent that the Company Board has made a
Company Change of Recommendation (as defined in the Arrangement
Agreement) as permitted by the Arrangement Agreement.
The Company is also subject to customary "non-solicitation"
restrictions on its ability (and the ability of its subsidiaries
and representatives) to:
(i) solicit alternative acquisition proposals from third
parties;
(ii) subject to certain exceptions, engage or participate in
discussions or negotiations regarding alternative
acquisition proposals; or
(iii) subject to certain exceptions, furnish to any person
non-public information in connection with an alternative
acquisition proposal.
Prior to the receipt of the Company Stockholder Approval, the
Company Board may, upon receipt of a Company Superior Proposal (as
defined in the Arrangement Agreement), change its recommendation
that the Company's stockholders approve the Arrangement Agreement
and the Merger, subject to complying with certain notice
requirements and other specified conditions, including giving
Goldgroup the opportunity to propose changes to the Arrangement
Agreement in response to such Company Superior Proposal.
Closing Conditions:
The completion of the Merger is subject to satisfaction or waiver
of certain customary mutual closing conditions, including:
(i) approval by Goldgroup's shareholders and the Company's
stockholders at their respective meetings,
(ii) the absence of any order or law prohibiting consummation
of the Merger,
(iii) receipt of all required regulatory, court, and stock
exchange approvals (including the TSX Venture Exchange and
NYSE American, the Mexican National Antitrust Commission
(Comision Nacional Antimonopolio), and the Supreme Court of
British Columbia) and
(iv) exemption from U.S. registration under Section 3(a)(10) of
the Securities Act of 1933, as amended, or if applicable,
the effectiveness of a registration statement on Form F-4
(or such other registration statement form then available
to Goldgroup) under the Securities Act.
The obligation of each party to consummate the Merger is also
conditioned upon the other party having performed in all material
respects its obligations under the Arrangement Agreement and the
other party's representations and warranties in the Arrangement
Agreement being true and correct (subject to certain materiality
qualifiers).
Termination Rights:
The Arrangement Agreement contains termination rights for each of
the Company and Goldgroup, subject to the additional terms and
conditions set forth in the Arrangement Agreement. The Arrangement
Agreement may be terminated at any time prior to the Effective Time
by:
(i) mutual written consent or
(ii) either party if:
(A) the Effective Time does not occur by July 31, 2026,
unless the party's breach caused the delay;
(B) either party if the required Company Stockholder
Approval and Goldgroup shareholder approval are
not obtained at the respective meetings (unless the
party's breach caused the failure); or
(C) a law or order makes the transaction illegal or
impossible (unless the party's breach caused the
issue).
Goldgroup may terminate if:
(i) the Company Board withdraws or changes its
recommendation,
fails to reaffirm its recommendation upon request, or
recommends a Company Acquisition Proposal;
(ii) the Company breaches the non-solicitation covenant;
(iii) the Company breaches its representations, warranties, or
covenants and such breach is not cured within 15 business
days after notice (provided that willful breaches are
deemed incurable);
(iv) the board of directors of Goldgroup approves a Purchaser
Superior Proposal (as defined in the Arrangement
Agreement);
or
(v) a Company Material Adverse Effect (as defined in the
Arrangement Agreement) occurs and is continuing, which
is incapable of being cured prior to the Outside Date.
The Company may terminate if :
(A) the Goldgroup Board withdraws or changes its
recommendation, fails to reaffirm its recommendation
upon request, or recommends a Purchaser Acquisition
Proposal;
(B) Goldgroup breaches the non-solicitation covenant;
(C) Goldgroup breaches its representations, warranties, or
covenants and such breach is not cured within 15
business days after notice (provided that willful
breaches are deemed incurable);
(D) the Company Board approves a Company Superior Proposal;
(E) a Purchaser Material Adverse Effect (as defined in the
Arrangement Agreement) occurs and is continuing,
which is incapable of being cured prior to the Outside
Date; or
(F) the Default (as defined in the Arrangement Agreement) has
not been removed on before February 24, 2026 on terms
satisfactory to the Company.
Termination Fees:
The Company must pay a termination fee of $5 million if any of the
following occurs:
(i) Goldgroup terminates because the Company Board changes or
withholds its recommendation or the Company signs or recommends a
competing deal;
(ii) Goldgroup terminates due to the Company's material breach
of the non-solicitation covenant;
(iii) either party terminates because:
(a) the Outside Date passes,
(b) the Company stockholder vote fails, or
(c) Goldgroup terminates for a Company breach and, before
termination pursuant to (a), (b) or (c), a competing proposal was
publicly announced and not withdrawn, and within 12 months the
Company signs and later closes, or directly closes, a competing
transaction involving 50% or more of the Company (equity or
assets); or
(iv) the Company terminates to accept a Company Superior
Proposal.
Goldgroup must pay a termination fee of $5 million if any of the
following occurs:
(i) the Company terminates because the Goldgroup Board changes
or withholds its recommendation or Goldgroup signs or recommends a
competing deal;
(ii) the Company terminates due to Goldgroup's material breach
of the non-solicitation covenant;
(iii) either party terminates because:
(a) the Outside Date passes,
(b) the Goldgroup shareholder vote fails, or
(c) the Company terminates for a Goldgroup breach and,
before termination pursuant to (a), (b) or (c), a competing
proposal was publicly announced and not withdrawn, and within 12
months Goldgroup signs and later closes, or directly closes, a
competing transaction involving 50% or more of Goldgroup (equity or
assets); or Goldgroup terminates to accept a Purchaser Superior
Proposal.
Voting and Support Agreements:
Contemporaneously with the execution of the Arrangement Agreement,
each of the directors and officers of the Company entered into a
Voting and Support Agreement, pursuant to which, among other
things, such stockholders agreed to vote in favor of the Merger,
not to transfer its shares (or any securities convertible into
shares) other than in support of the Merger, and not to solicit or
negotiate any alternative acquisition proposal. The Voting
Agreement does not preclude a director, in his or her capacity as
such, from exercising his or her fiduciary duties and electing to
terminate the Arrangement Agreement in the circumstances permitted
in the Arrangement Agreement.
The expected benefits of the Transaction for the Company's
stockholders include:
* Immediate Significant Premium: Premium of 39% based on the
closing price on January 23, 2026.
* Enhanced and Complementary Asset Portfolio: The combined
company's assets will include the Company's producing Don David
Gold Mine and the PEA-stage Back Forty Project, and Goldgroup's
producing Cerro Prieto Mine and recently acquired San Francisco
Mine, creating a robust portfolio of producing assets with
significant exploration and growth potential.
* Creation of a Multi-Mine Producer: An asset portfolio with
multiple mines reduces the reliance on any one mine's operation and
could significantly enhance cash generation of the combined company
through increased production.
* Creation of a Leading, Mexico-Focused Junior Producer: The
combination creates a larger, more diversified mining company with
a strong focus on Mexico, one of the leading venues for mineral
potential and production, with an extensive history of mining.
* Revitalization of a silver-focused vehicle: Pro forma
revenues are expected to be predominantly silver, driven by
production at the Don David Gold Mine benefiting from a strong
silver price momentum.
* Significant Synergy Potential: Expected operational, general
and administrative synergies from combining operations and
leveraging shared expertise and infrastructure.
* Strengthened Financial Position: The combined entity is
expected to have a stronger balance sheet and increased financial
flexibility to fund growth projects and exploration initiatives.
* Increased Market Presence and Shareholder Value: The larger
scale and enhanced profile of the combined company are expected to
attract a broader institutional investor base and drive long-term
value for all shareholders.
"Having successfully executed a turnaround at the Don David Gold
Mine, the Company is positioned to expand production through the
proposed transaction," stated Allen Palmiere, the Company's
President and CEO. "The addition of the San Francisco Mine and the
Cerro Prieto mine is expected to increase gold exposure and
materially enhance cash generation through higher overall output."
Advisors and Counsel:
Cormark Securities Inc. is acting as a financial advisor to the
Company and provided a fairness opinion to the Company in
connection with the Transaction. Davis Graham & Stubbs LLP is
acting as the Company's U.S. legal counsel, Cassels Brock &
Blackwell LLP is acting as the Company's Canadian legal counsel,
and Sanchez Mejorada, Velasco y Ribe, S.C. is acting as the
Company's Mexican legal counsel.
A full text copy of the Arrangement Agreement and Plan of Merger is
available at https://tinyurl.com/mtajexnc
About Goldgroup
Goldgroup is a Canadian-based mining company with two high-growth
gold assets in Mexico. The company has a 100% interest in the
producing Cerro Prieto heap-leach gold mine located in the State of
Sonora and, subject to final approval from the TSX Venture
Exchange, has recently acquired Molimentales del Noroeste, S.A. de
C.V., which owns the concessions comprising the formerly producing
San Francisco gold mine, located in Sonora State, Mexico. For
further information on Goldgroup, please visit
www.goldgroupmining.com.
Gold Resource Corporation may be reached at
Allen Palmiere
Chief Executive Officer
Gold Resource Corporation
Email: Allen.Palmiere@GRC-USA.com
About Gold Resource Corporation
Gold Resource Corporation -- http://www.goldresourcecorp.com-- is
a mining company focused on the development of precious and base
metal projects that have the potential for high returns and limited
development capital requirements. DDGM is the Company's cornerstone
operating asset, comprised of six contiguous land parcels. The
Company's focus is unlocking the significant upside potential of
DDGM through optimization of the current operations, growing the
existing mineral resource by investing in exploration drilling, and
identifying new opportunities near existing infrastructure. The
primary mineral production comes from the Arista and Switchback
underground mining areas, along with the recently added Three
Sisters vein system. The mine and its processing facilities can
produce gold and silver dore, as well as concentrates of copper,
lead, and zinc.
As of September 30, 2025, the Company had $164.3 million in total
assets, $138.4 million in total liabilities, and $26 million in
total stockholders' deficit.
Although the Company has significantly improved its financial
position year to date, the lower production and grades from the
mine through the third quarter of 2025 raise substantial doubt
about the Company's ability to continue as a going concern, as
reflected by the year-to-date net losses of $24.5 million and the
cash used in operations of $2.5 million.
=====================
P U E R T O R I C O
=====================
LINEAS DE PUERTO: Case Summary & Seven Unsecured Creditors
----------------------------------------------------------
Debtor: Lineas de Puerto Rico, Inc.
352 Ave San Claudio PMB 318 Suite 1
San Juan, PR 00926
Business Description: Lineas de Puerto Rico, Inc. provides
highway, street, and bridge construction services in Puerto Rico,
operating as a construction contractor focused on public
infrastructure projects. The Company undertakes roadway-related
construction and related contracting activities and serves
government and other clients across the island.
Chapter 11 Petition Date: January 29, 2026
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 26-00298
Debtor's Counsel: Nelson Robles Diaz, Esq.
NELSON ROBLES-DIAZ LAW OFFICES, PSC
PO Box 192302
San Juan, PR 00919-2301
Tel: 787 254-9518
Email: nroblesdiaz@gmail.com
Debtor's
Insolvency &
Restructuring
Advisor: MONGE ROBERTIN ADVISORS, LLC
Estimated Assets: $100,000 to $500,000
Estimated Liabilities: $1 million to $10 million
The petition was signed by Hiram Firpi Cruz as president.
A full-text copy of the petition, which includes a list of the
Debtor's seven unsecured creditors, is available for free on
PacerMonitor at:
https://www.pacermonitor.com/view/7MOBKPY/Nelson_Lineas_de_Puerto_Rico_Inc__prbke-26-00298__0001.0.pdf?mcid=tGE4TAMA
*********
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 2026. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
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* * * End of Transmission * * *