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260220.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, February 20, 2026, Vol. 27, No. 37 Headlines B R A Z I L AZUL SA: Brazil Antitrust Enforcer OKs $100MM United Investment COTY INC: S&P Affirms 'BB+' ICR & Alters Outlook to Negative VAST INFRAESTRUTURA: S&P Withdraws 'BB' Rating on Sr. Secured Debt C H I L E TELEFONICA MOVILES: S&P Puts 'BB' ICR on CreditWatch Developing C O L O M B I A COLOMBIA TELECOMUNICACIONES: S&P Puts 'B+' ICR on CreditWatch D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Chicken & Groceries Drive Up Prices DOMINICAN REPUBLIC: Food Prices Lead January Inflation Rise M E X I C O DEL MONTE: Fresh Del Monte Gets Court OK to Buy Co.'s Food Assets T R I N I D A D A N D T O B A G O CINEMAONE GROUP: After-Tax Loss Widens to $9MM for Year Ended Sept. TRINIDAD & TOBAGO: Energy Head Optimistic on New US OFAC Licenses - - - - - =========== B R A Z I L =========== AZUL SA: Brazil Antitrust Enforcer OKs $100MM United Investment --------------------------------------------------------------- Emily Lever at law360.com reports that Brazil's antitrust regulator has cleared a $100 million investment by United Airlines in Azul SA as part of the Brazilian airline's Chapter 11 reorganization, finding the transaction posed no anticompetitive risk. 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. COTY INC: S&P Affirms 'BB+' ICR & Alters Outlook to Negative ------------------------------------------------------------ S&P Global Ratings revised its outlook to negative on Coty Inc. S&P also affirmed its ratings, including the 'BB+' issuer credit rating and 'BBB-' issue level ratings. The negative outlook reflects the potential for a lower rating over the next 12 months if S&P unfavorably reassesses the company's business risk due to continued underperformance or expect leverage to be sustained above 4x in fiscal 2027. Coty continues to see top line declines despite operating in growing segments of the beauty market, illustrating its execution challenges in the rapidly evolving sector. Both the prestige beauty and mass beauty markets are growing at about 5% amid new entrants and social media driven selling. However, Coty continues to see sales decline in both areas. Prestige organic sales declined 2%. This reflected slower category growth, elevated promotional activity, and aggressive discounts amid softness in key markets like the U.S., Germany, and the U.K. Consumer beauty sales also declined 6% in second quarter after an 11% decline in the first quarter. S&P said, "We expect these trends will continue in the second half of the year. We now forecast total Coty revenue will decline 2% in fiscal 2026 compared to our previous expectation of 0.2% decline. S&P Global Ratings-adjusted leverage for the trailing 12 months ended Dec. 31, 2025 increased to 3.9x from 3.5x in the prior-year period. This was despite more than $1 billion of debt reduction with proceeds from the Wella sale at the end of 2025, mainly due to an EBITDA decline of more than 20%. "We believe leverage could remain over 4x in the longer term without a meaningful turnaround in the business or further asset sales to generate proceeds for additional debt reduction. The company's gross margin declined 260 basis points (bps) in the second quarter after a 100-bps decline in the first quarter. This was due to lower sales and unit volumes, negative mix as key profit regions remain under pressure, a highly promotional environment, and tariff impacts. "We expect these challenges will persist in the third quarter and forecast similar gross margin declines. We now forecast S&P Global Ratings-adjusted EBITDA will decline by 18% for full-year 2026, before increasing by 10% in fiscal 2027. We believe Coty could accelerate deleveraging through modest additional proceeds from a further sale or IPO of Wella after KKR's preferred return has been met. There is also potential for a sale of its Brazil or consumer beauty business. However, we have not factored any of this into our current forecast. "We are closely monitoring efforts under the new CEO to improve performance and manage expiring licenses, including Gucci. Coty's new CEO, Markus Strobel, recently unveiled a strategic framework to revitalize performance. The plan centers on concentrating resources and marketing efforts on high-potential brands like Hugo Boss, Burberry, Marc Jacobs, and Kylie Cosmetics, alongside focusing on key markets. A core element involves portfolio simplification--discontinuing smaller, less impactful projects and streamlining brands, particularly in the mass fragrance segment. This includes potential divestitures, such as the Orveda skincare license, and shifting advertising spending toward direct consumer engagement. Coty also plans to drive procurement savings and prioritize support for core SKUs. "This strategy represents a shift from past approaches, where Coty recently struggled with operational discipline, funding too many projects across its prestige and consumer beauty divisions. These efforts will be critical because we note more than 90% of prestige sales come from its top seven brands, including Hugo Boss, Burberry and Gucci. The Gucci beauty and fragrance license rolling off in 2028 could pose a risk if not offset with new business over the next one to two years, given we estimate it represents 8% to 10% of total sales. "The negative outlook reflects the potential for a lower rating over the next 12 months if operating performance does not improve amid heightened competition and operational missteps, resulting in a lower business risk assessment. We currently expect leverage to decline below 4x in fiscal 2027, without factoring in potential asset sales or further restructuring." S&P could lower its rating on Coty if it lower S&P's business risk assessment, which could occur if: -- Core segments experience further market share losses and sales declines, eroding their competitive advantage or scale and diversity; or -- Weakened margins amid continued promotions and tariff pressure lead us to revise S&P's view of operating efficiency. S&P said, "We could also lower the rating if Coty sustains S&P Global Ratings-adjusted leverage above 4x as a worsening macroeconomic environment, higher inflation, or consumer trade down leads to lower demand for the company's products. "We could revise our outlook to stable if the company improves its operating performance such that margins and profitability are maintained at least at current levels and a turnaround is showing sustained progress under the new CEO." This could occur if: -- It successfully launches new products that resonate well with consumers, stabilizing market share across core product categories; -- A streamlining of the portfolio, especially in fragrances, is not offset with a loss of licenses that lowers earnings; and -- Coty continues to prioritize debt reduction and uses all excess cash proceeds from future asset sales and free cash flow generation to deleverage. VAST INFRAESTRUTURA: S&P Withdraws 'BB' Rating on Sr. Secured Debt ------------------------------------------------------------------ S&P Global Ratings withdrew its 'BB' issue-level rating on Vast Infraestrutura S.A.'s (Vast's) senior secured notes at the issuer's request. The outlook was stable at the time of the withdrawal. S&P also withdrew its '2' (85%) recovery rating on Vast's senior secured debt. ========= C H I L E ========= TELEFONICA MOVILES: S&P Puts 'BB' ICR on CreditWatch Developing --------------------------------------------------------------- S&P Global Ratings placed its 'BB' issuer credit and issue level ratings on Telefonica Moviles Chile S.A. [TMC] on CreditWatch with developing implications. S&P expects to resolve the CreditWatch listing once it has greater clarity on new controlling group's shareholder agreements and governance structure, TMC's post-acquisition business plan and financial strategy, and potential support under the new ownership. The CreditWatch placement reflects the change in control at TMC and the resulting uncertainties regarding the new ownership structure and the company's business plan and financial strategy. On Feb. 10, 2026, Inversiones Telefonica International Holding SpA, a wholly owned subsidiary of Telefonica S.A. (BBB-/Stable/A-3), announced that it has transferred 100% of its shares in Chilean subsidiary (Telefonica Moviles Chile S.A. [TMC]) to NJJ Holding SAS and Millicom International Cellular S.A. S&P said, "We need additional information on shareholders' arrangements and the governance structure to understand how the control will be exercised and what will be TMC's medium- to long-term strategy. "Depending on the acquisition's effect on TMC's stand-alone credit profile and on our assessment of its relationship with the new controlling group under our Group Rating Methodology, we can raise, affirm, or lower the ratings on TMC." Luxemburg-based Millicom and NJJ announced the acquisition of TMC through a jointly controlled vehicle. The latter entity is owned by Millicom (49%) and NJJ (51%; the personal investment vehicle of Xavier Niel who currently owns 42% of Millicom through Atlas Investissement). The transaction includes an initial closing payment of $50 million to Telefonica S.A. and a potential additional earn-out of up to $150 million. The earn-out and any obligation of the acquired business, including its existing debt, will be payable from TMC's cash flow and are not guaranteed by Millicom. Millicom will incorporate TMC into its regional operating platform but won't consolidate it. As part of the shareholders' agreement, Millicom holds a call option to acquire NJJ's stake in TCM between the year five and six after the closing of the transaction. During the joint ownership period, Millicom won't consolidate TMC into its financial statements to protect its capital structure. Millicom is a diversified telecom operator with operations in 11 Latin American countries under the Tigo brand. As of September 2025, Millicom reported RTM revenue of about $6 billion and EBITDA of $2.7 billion (excluding leases), with a robust EBITDA margin of about 50%. While the new controlling group has publicly stated its intention to enhance TMC's operational performance and sustain investments in networks and digitalization to strengthen its market positioning, execution risk remain, given Chile's competitive and mature telecom market. Currently, there's limited visibility on shareholders' arrangements and the governance structure following the acquisition. S&P said, "We would require greater clarity regarding how the control will be exercised and how strategic and financial decision-making will be structured under the new ownership to assess whether there could be any impact on TMC's credit quality stemming from the credit profile of the controlling shareholder. Additionally, we would need to understand TMC's financial policy, particularly regarding leverage tolerance, dividend policy, and the investment and capital allocation priorities that may shape the company's financial profile going forward." In parallel, TMC announced a series of related-party transactions aimed at strengthening its capital structure. These include: -- The sale of Telefonica Chile S.A.'s (a subsidiary of TMC) minority stake in Holdco Infraco SpA for CLP299 billion and its 0.06% stake in Telefonica Brasil S.A. for CLP11.9 billion to Telefonica Latinoamerica Holding S.L.U. (a subsidiary of Telefonica); -- A capital infusion from Telefonica S.A. of CLP79 billion to meet certain payments following the acquisition by Millicom; and The repayment of CLP340.9 billion of intercompany debt owed to Telefonica S.A. S&P said, "We believe these measures could enhance TMC's capital structure and reduce adjusted leverage to 3.0x-3.5x in 2026 from 4.3x as of September 2025. However, the credit impact will also depend on the new controlling group's financial policy. "Our CreditWatch developing listing reflects the possibility that we could raise, affirm, or lower our ratings on TMC, as soon as practical once we obtain greater clarity on the new controlling entity's ownership structure, shareholders' agreement, and business plan and financial strategy for the Chilean operations. "We could affirm our ratings on TMC and revise the outlook to stable if, following the ownership change, TMC maintains adjusted leverage between 3x and 4x thanks to financial policy, coupled with EBITDA margin improvement of about 20% on a consistent basis. In this scenario, we don't expect the change in ownership to weaken the company's credit profile. "Conversely, we could lower the ratings if the new controlling group adopts a more aggressive financial policy, including higher shareholder distributions or debt-funded investments, resulting in TMC's leverage exceeding 4x on a sustained basis. Strains could also arise if there is weaker-than-expected operating performance due to intense competition in the Chilean telecom market that could compress EBITDA margin or weaken cash flow to a deeper-than-expected degree. In addition, we would assess any potential rating constraints stemming from the new controlling group under our group methodology. "Although less likely, we could raise the ratings if, following the ownership transaction, TMC maintains adjusted leverage below 3x coupled with EBITDA margins persistently rising by more than 20% and the new controlling group maintains a prudent financial policy and is supportive of the company's credit profile." =============== C O L O M B I A =============== COLOMBIA TELECOMUNICACIONES: S&P Puts 'B+' ICR on CreditWatch ------------------------------------------------------------- S&P Global Ratings, on Feb. 13, 2026, placed its 'B+' issuer and issue-level ratings on telecom operator Colombia Telecomunicaciones S.A. E.S.P. (Coltel) on CreditWatch with developing implications. The CreditWatch placement means S&P could raise, affirm, or lower its ratings on Coltel depending on the impact this acquisition will have on Coltel's stand-alone credit profile and its final assessment on Coltel's strategic importance within the group. On Feb. 5, Luxembourg-based Millicom International Cellular S.A. (not rated) announced it successfully concluded a tender offer for the acquisition of Telefonica's 67.5% controlling equity stake in Colombia Telecomunicaciones S.A. E.S.P. (Coltel) for $214.4 million. S&P needs further clarity regarding Millicom's strategy and integration of Coltel to assess the impact on its rating on the company. Millicom announced that it successfully concluded the acquisition of Coltel. S&P said, "We believe Coltel will benefit from joining a company with more robust telecommunication platform in Colombia, greater geographic diversification operating across 11 countries in Latin America, and enhanced investment capacity for upgrading the network, spectrum, and current technology, as well as accelerating the nationwide rollout of fiber and 5G. However, we require further clarity on Millicom's strategic approach for integrating Coltel into its operations to assess its relevance to the group based on our group rating methodology." Furthermore, Millicom does not yet hold full ownership of Coltel because the Colombian government retains a 32.5% stake in the company, which is expected to be finalized by April 2026. S&P said, "We believe the acquisition by Millicom will enhance Coltel's current financial performance. The company has increased its consolidated debt as a result of higher working capital needs, leases, and spectrum payments. As of Sept. 30, 2025, leverage increased to 4.6x from 3.0x during the same period of last year. Moreover, liquidity has also weakened due to lower cash flow generation and higher short-term obligations. If the integration into the group fails to improve Coltel's financial performance and liquidity, we could consider revising our current assessment on its stand-alone credit profile (SACP) downward. "The developing CreditWatch listing for Coltel reflects our expectation that we could raise the ratings if the company's integration within its new parent, Millicom, results in improved profitability with a consistently higher EBITDA and robust cash generation. We believe that enhanced operations in Colombia, consolidating its position as the second-largest player in the country, will translate into improved credit metrics. We expect to debt to EBITDA to fall toward 3.0x, along with free operating cash flow to debt strengthening to above 10%. We could also upgrade the company if the creditworthiness of the parent is higher than Coltel and we determine that the company will receive significant support from the group. "On the other hand, while we consider it less likely, we could lower the ratings if Coltel fails to strengthen operating cash flows, maintaining a debt to EBITDA above 4.0x and free operating cash flow to debt below 10%. We could also downgrade the company if liquidity pressures continue from short-term debt maturities, cash shortfalls, or higher-than-expected cash expenses, leading the company to rely on higher debt or refinancings, which could suggest weaker financial discipline. "We anticipate resolving the CreditWatch listing once we have sufficient information to form a view on Millicom's credit quality and determine Coltel's strategic importance within the group. Additionally, we expect to receive further details and have more clarity regarding Coltel's final capital structure, financial policy, and liquidity position. We believe we will have enough information to make this assessment within the next 90 days or sooner, at which point we will resolve the CreditWatch placement." =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Chicken & Groceries Drive Up Prices ------------------------------------------------------- Dominican Today reports that Dominicans felt the impact of rising food and basic services costs in January. The Central Bank of the Dominican Republic (BCRD) reported that the Consumer Price Index (CPI) rose 0.40% in January 2026, with increases concentrated mainly in food, restaurants, and education, according to Dominican Today. Although year-on-year inflation stood at 4.98%, within the target range of 4.0% ± 1.0%, the breakdown by groups reveals that some everyday consumer products rose above the overall average, the report notes. Chicken and Groceries Are Driving Inflation The Food and Non-Alcoholic Beverages group increased by 0.68% and was responsible for almost half (45.68%) of the month's inflation, the report notes. The main driver was fresh chicken, one of the most significant items in the average household's shopping basket, whose price rose as demand exceeded available production, the report relays. Also registering increases were coffee, chicken broth, soft drinks, cassava, oranges, sour lemons, and plantains in their various varieties, the report discloses. The Central Bank explained that these increases are partly due to the lagged effects of adverse weather conditions, including rainfall from Tropical Storm Melissa, which affected the production and marketing of agricultural goods at the end of last year, the report says. However, some agricultural products, such as chili peppers, tomatoes, eggplants, lettuce, onions, and green pigeon peas, declined in price, preventing the group’s inflation from rising further, the report notes. Eating out also costs more, the report says. Eating out also became more expensive in January, the report relays. The Restaurants and Hotels group showed a 1.13% increase, driven by higher prices for the daily special, chicken service, and side-dish groceries, the report notes. According to the Central Bank of the Dominican Republic (BCRD), the increase in these services is due to higher costs of basic inputs used in their preparation, which are ultimately passed on to the final consumer, the report says. Education Starts the Year With Price Increases The Education sector saw the largest percentage increase, at 1.79%, due to the start of the first academic term at universities, the report discloses. Increases were recorded in tuition, registration fees, and monthly payments, as well as higher prices for language learning services, the report says. Housing and Personal Care Also Rise The Miscellaneous Goods and Services group increased by 0.34%, due to higher prices for personal care items and services, the report notes. Meanwhile, Housing rose by 0.26%, mainly due to increases in rent and paint prices, the report says. Transport Lowers And Cushions The Impact In contrast, the Transportation group recorded a 0.28% decline, driven by lower airfares. This decrease helped to moderate the growth of the overall index, although it was partially offset by increases in vehicle repairs and passenger road transport, the report relays. Those Most Affected: Low-Income Households The impact was not the same for everyone, the report relays. The lowest income quintiles (1, 2, and 3) experienced inflation rates of 0.58%, 0.59%, and 0.53%, respectively, due to the greater share of their spending on food, the report says. In contrast, the fifth quintile - the highest income bracket - registered only a 0.09% change, driven by a drop in airfares, which is a more significant factor in that segment, the report discloses. In regional terms, the East region showed the greatest variation (0.75%), while the Ozama region - National District and Santo Domingo province - registered the least (0.25%), the report notes. Signals for Monetary Policy Underlying year-on-year inflation stood at 4.89%, also within the target range, which, according to the Central Bank, provides clearer signals for monetary policy by excluding volatile prices such as fresh food, fuels, and regulated tariffs, 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: Food Prices Lead January Inflation Rise ----------------------------------------------------------- Dominican Today reports that the Dominican Republic recorded monthly inflation of 0.4% in January, pushing the year-on-year rate to 4.98%, according to the Central Bank of the Dominican Republic. The increase was driven mainly by higher food and non-alcoholic beverage prices, which rose 0.68% and accounted for 45.7% of January’s inflation, according to Dominican Today. Additional pressure came from restaurants and hotels (1.13%), education (1.79%), miscellaneous goods and services (0.34%), and housing (0.26%), the report notes. These gains were partly offset by a 0.28% decline in transportation costs, helping to moderate the overall rise in the consumer price index), the report relays. On the monetary front, core inflation—which excludes volatile items such as food, fuels, regulated services, alcohol, and tobacco—stood at 4.89% year-on-year), the report says. Overall inflation closed 2025 at 4.95%, remaining within the central bank’s target range of 4.0% ± 1.0% for the 32nd consecutive month), the report notes. 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. =========== M E X I C O =========== DEL MONTE: Fresh Del Monte Gets Court OK to Buy Co.'s Food Assets ----------------------------------------------------------------- On February 9, 2026, Fresh Del Monte Produce Inc. announced that it has received approval from the U.S. Bankruptcy Court to acquire select assets of Del Monte Foods Corporation II Inc. and its affiliates. The acquisition is being carried out through a court-supervised sale process under Section 363 of the U.S. Bankruptcy Code. The court's approval represents a decisive legal milestone and allows the transaction to move forward into the pre-closing phase. Fresh Del Monte will now complete customary regulatory and procedural steps, including obtaining Hart-Scott-Rodino clearance and fulfilling remaining closing conditions. As previously reported, the transaction includes a purchase price of $285 million, along with the assumption of certain liabilities. The Company stated that additional information regarding the strategic and financial impact of the transaction will be provided following closing. The Company anticipates closing the transaction in the first quarter of 2026. Upon completion, Fresh Del Monte will acquire select prepared and packaged foods operations, including vegetable, tomato, and refrigerated fruit businesses, as well as global ownership of the Del Monte(R) brand, subject to existing regional licensing arrangements. About Del Monte Foods Corporation II Inc. Del Monte Foods, Inc. produces, distributes, and markets branded plant-based packaged food products in the United States and Mexico. Del Monte Foods Corporation II Inc. and its affiliates filed their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-16984) on July 1, 2025, listing $1,000,000,001 to $10 billion in both assets and liabilities. Judge Michael B Kaplan presides over the case. Michael D. Sirota, Esq. at Cole Schotz P.C. represents the Debtor as counsel. The U.S. Trustee for Regions 3 and 9 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Del Monte Foods Corporation II, Inc. and its affiliates. The committee hires Morrison & Foerster LLP as counsel. Province, LLC as financial advisor. Kelley Drye & Warren LLP as co-counsel. Stifel, Nicolaus & Co., Inc. ("Miller Buckfire") as investment banker. About Fresh Del Monte Fresh Del Monte Produce Inc. is a globally recognized producer and distributor of high-quality fresh and fresh-cut fruits and vegetables, supported by a vertically integrated operating model and sales in more than 80 countries. The company is also a leading supplier of prepared foods in Europe, Africa, and the Middle East. Fresh Del Monte's global portfolio is marketed under the DEL MONTE(R) brand, a long-standing emblem of product quality, innovation, and dependability for more than 135 years. ===================================== T R I N I D A D A N D T O B A G O ===================================== CINEMAONE GROUP: After-Tax Loss Widens to $9MM for Year Ended Sept. ------------------------------------------------------------------- Trinidad and Tobago Express reports that the CinemaOne Group is pursuing a deal that could reshape the company, moving beyond its traditional business and into the wider Telecommunications, Media and Technology sector through a transaction now in advanced discussions, its chairman Brian Jahra has said. Jahra made the statement as CINE1 released its 2025 annual report, according to Trinidad and Tobago Express. "In FY 2025, the CINE1 Group embarked on a strategic diversification initiative which leverages executive management's expertise in the broader Telecommunications, Media and Technology (TMT) sector. At present, Management is successfully advancing a transformative merger and acquisition (M&A) transaction in collaboration with regional development finance institutions," he stated, the report notes. "The planned M&A transaction has the potential to not only diversify but to also significantly scale up the Group's operations. The Group expects to announce and outline the proposed transaction in the first half of 2026," Jahra stated, the report relates. For the year ended September 30, 2025, CINE1 reported an after-tax loss of $9.23 million, widening from a $7.4 million loss a year earlier, the report says. "The consolidated results of the CinemaOne Group, which include CineCentral Ltd as a subsidiary for the second full year of its operations, were as follows: Gross Revenue increased by 3% to $20.5 million (FY 2024: $20 million). Gross Profit similarly increased by 3% to $12.7m (FY 2024: $12.4m). However, despite expense management of variable cost elements, the Group recorded 27% higher (International Financial Reporting Standards (IFRS) IFRS 16 lease depreciation of $1.5 million (FY 2024: $1.2 million) which contributed to overall expense growth of 4% resulting in no improvement in the Operating Loss of $1.6 million (FY 2024: $1.4 million)," Jahra stated, the report relays. "Increased front loading of lease interest costs associated with IFRS 16 adjustments for newly leased properties resulted in finance costs increase of 28% to $6.7 million versus the prior year (FY 2024: $5.3 million). When coupled with a deferred tax loss adjustment of $1 million, the Net Loss increased to $9.2 million (FY 2024: $7.4 million). It should be noted that the combined impact of IFRS 16 depreciation and interest expense for newly leased properties resulted in the front loading of lease costs associated with new properties equating to a non-cash, accounting expenditure of $2 million above the contracted annual lease costs. However, the CinemaONE Group still managed a 6% growth in (Earnings Before Interest, Taxes, Depreciation, and Amortisation) EBITDA to $5.7 million (FY 2023 $5.3m)," he stated, the report discloses. Jahra said that despite steady revenue growth and a rebound in EBITDA, the Group continued to face liquidity pressures in FY2025, the report says. He pointed to a negative working capital position, worsened by the company's failure as of September 30, 2025, to restructure its borrowing obligations with Guardian Group Trust Ltd, which required the full reclassification of those borrowings as current liabilities under IAS 1, the report notes. "The Group is actively involved in planning and discussions to rectify same in the first half of FY 2026. The Group is also actively engaged with landlords for space rationalisation designed to re-align its lease costs with reduced growth expectations for the industry in the near term," Jahra stated, the report says. Jahra said amid a continued challenging operating environment, punctuated by cautious consumer spending, the CinemaONE Group delivered another year of mixed results for the 2025 financial year, the report discloses. "On a consolidated basis, the CinemaONE Group delivered marginal 3% growth in top line movie admissions and Gross Revenue for all three sites combined: One Woodbrook Place, Port of Spain, Gulf City Mall, San Fernando and Price Plaza, Chaguanas," he stated, the report notes. "However, the very modest revenue growth again did not outpace a more aggressive discounting strategy and higher operating expenses particularly related to theatre leases. In the wake of headwinds which also included intermittent hysteria at the end of financial year triggered by a major US military build-up in the southern Caribbean, the CinemaONE Group delivered a moderate growth in EBITDA but financial losses," Jahra stated, the report relays. Jahra stated that in 2025, the global cinema exhibition industry registered only tepid growth, the report discloses. "While there was no major disruptive event such as the Covid-19 pandemic or the Hollywood strikes, the indirect impact of these events such as changing consumer behaviour and industry consolidation lingered. The result was a tapering of the growth trajectory which had characterised the immediate post Covid-19 period and a general acknowledgement of an industry in transition," he stated, the report notes. Jahra stated that despite ongoing challenges, the global box office generated US$33.6 billion in 2025, an increase of roughly 6% over 2024 in current U.S. dollar terms, but still 21% below 2019 levels, the industry's pre-pandemic benchmark, the report relates. TRINIDAD & TOBAGO: Energy Head Optimistic on New US OFAC Licenses ----------------------------------------------------------------- Trinidad Express reports that the Ministry of Energy in Trinidad and Tobago will continue proactive engagement with all relevant partners to ensure the country responsibly capitalises on opportunities arising from two new licences issued under the US Office of Foreign Assets Control (OFAC) General Licence, Energy Minister Dr Roodal Moonilal said. "We remain committed to safeguarding our national interests, strengthening regional energy cooperation, and ensuring that our country benefits from secure, sustainable, and internationally compliant access to natural gas. I was always confident that our strategies and energy diplomacy will triumph to secure our economic advancement," Moonilal said, according to Trinidad Express. The report notes that Mr. Moonilal made the statement in response to the US Department of the Treasury's issuance of General Licences 49 and 50, which allow specified energy firms to resume oil and gas operations in Venezuela under defined legal and financial conditions. General Licence 49 allows companies around the world to enter into contracts with Venezuela's state-owned oil company, Petroleos de Venezuela, SA (PdVSA), to negotiate new investments in Venezuelan oil and gas, provided the performance of any such contract remains subject to separate approval from the US Treasury, the report relays. The authorisations, however, do not permit transactions with companies or individuals located in or controlled by entities from Russia, Iran or China, or with entities owned or controlled by joint ventures involving persons from those countries, the report relays. Meanwhile, General Licence 50 allows major global energy companies such as Chevron, BP, Eni, Shell and Repsol to resume oil and gas operations in Venezuela under defined conditions, the report discloses. Licence 50 requires that Venezuelan royalty and tax payments be routed through a US-controlled Foreign Government Deposit Fund, and sets strict compliance rules for contracts governed under US law, the report says. "We welcome the US government's decision to issue general licenses, which we believe support our efforts to move forward with the cross-border natural gas projects," Moonilal said, the report relates. Shell holds an interest in the Dragon gas field in Venezuelan waters, while BP has an interest in the Manakin-Cocuina cross-border gas field, the report notes. The report notes that Moonilal said the two new licences were the result of an "enormous amount of work since April 2025 by the incoming United National Congress (UNC) administration and the unrelenting advocacy of The Honourable Prime Minister Kamla Persad Bissesar SC, MP within Trinidad and Tobago and abroad." "We congratulate the Honourable Prime Minister for her steadfast and determined leadership. We also express gratitude to the Minister and the Ministry of Foreign and Caricom Affairs and the Office of the Attorney General for the pivotal roles played to achieve this path breaking moment of success," he added. "While the former energy minister was mouthing off inanities each day, we were working smartly and planning," Moonilal said, the report relays. Moonilal said the two new licences are a 'significant development' for this country's national energy landscape, the report discloses. "The activities enabled under General Licence 50 support progress on cross-border gas initiatives that will allow gas from Venezuelan fields to be transported through our upstream infrastructure, into Trinidad and Tobago's energy system. This creates a pathway for additional gas supply to reach Atlantic LNG and the petrochemical sector, bolstering long-term energy security and supporting economic stability," he stated, the report relays. ********* 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. 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