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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, April 17, 2026, Vol. 27, No. 77
Headlines
A R G E N T I N A
ARGENTINA: Will Have Access to USD1 Billion Fund, IMF Says
EMPRESA DISTRIBUIDORA: S&P Rates New Senior Unsecured Notes 'B-'
B R A Z I L
ONCOCLINICAS: To File for Creditor Protection
C H I L E
TELEFONICA MOVILES: S&P Downgrades ICR to 'BB-', Outlook Stable
D O M I N I C A N R E P U B L I C
[] DOMINICAN REPUBLIC: Spain Leads Foreign Investment
J A M A I C A
JAMAICA: Manufacturers, JPS to Discuss Power Weaning
JAMAICAN URBAN: More Drivers Charged in Ongoing Probe
P U E R T O R I C O
BED BATH: Appoints Amy Sullivan as New Company President
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A R G E N T I N A
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ARGENTINA: Will Have Access to USD1 Billion Fund, IMF Says
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International Monetary Fund (IMF) staff and the Argentine
authorities have reached a staff-level agreement on the second
review of Argentina's economic reform program, supported by the
48-month Extended Fund Facility (EFF) arrangement. Subject to
approval by the IMF Executive Board, Argentina would have access to
about US$1 billion (SDR 0.8 billion).
Reform momentum has significantly strengthened in recent months.
The administration has secured congressional approval of the 2026
Budget and critical legislation aimed at formalizing holdings of
financial assets by residents, enhancing labor market flexibility,
ratifying critical trade agreements, and unlocking investments in
mining. Importantly, enhancements to the monetary and FX framework
are leading to an improvement in reserve buffers, with central bank
FX purchases exceeding US$5.5 billion so far this year. Argentina
continues to weather well spillovers from the Middle East war,
given ongoing improvements in its fundamentals and status as a net
energy exporter. This is taking place in a context where corporates
have been able to repatriate dividends for the first time in six
years.
Understandings were reached on a strong policy package to entrench
the impressive stabilization gains and sustained reductions in
poverty levels since end-2023. Macroeconomic and structural
policies will balance disinflation, external stability, and growth
objectives, while supporting Argentina's timely access to capital
markets on more favorable terms. Key elements of the policy package
include:
Fiscal. The zero-cash balance will remain the program’s key
policy anchor, consistent with a primary surplus of 1.4 percent of
GDP this year and underpinned by continued strong expenditure
controls, while providing sufficient space for targeted social
assistance. Over time, well-sequenced reforms to the tax, pension,
and fiscal framework are expected to further enhance the quality
and durability of the fiscal anchor.
Monetary. Monetary operations will continue to be strengthened,
with upfront measures to contain interest rate volatility and
improve monetary policy transmission and credit allocation.
Monetary policy will remain appropriately tight to continue to
support the underlying disinflation process, with widening exchange
rate bands and enhanced transparency via publication of a quarterly
report assessing performance against the monetary program
objectives.
External. The authorities are committed to continue to bolster
Argentina’s ability to manage shocks. Net international reserves
are projected to increase by at least US$8 billion in 2026,
supported by efforts to mobilize FX financing and sustain central
bank FX purchases of at least US$10 billion this year, consistent
with the assumed re-monetization of the economy.
Financing. A multipronged strategy to refinance FX obligations is
being implemented through continued issuances of dollar-denominated
domestic-law debt, sales of state-owned assets, central bank repos,
and external loans, potentially backed by IFIs. Over time, the
strategy is expected to catalyze timely and sustainable access to
international capital markets.
Structural. Building on significant progress in deregulating and
opening the economy, continued reforms will target boosting formal
employment, domestic capital markets, private investment, and
productivity—including to unlock the potential of Argentina's
strategic sectors in agriculture, energy, mining, and the knowledge
economy.
Building on their track record, the authorities remain committed to
ensuring adherence to program objectives, including taking
contingency measures as necessary, while also seeking to
overperform if favorable conditions materialize.
IMF staff welcomes the strong and constructive engagement with the
authorities and their continued commitment to the program,
including through the implementation of corrective measures to
address earlier setbacks. Upon completion of pending measures, the
review will be submitted to the IMF Executive Board for
consideration.
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.
S&P Global Ratings on Dec. 17, 2025, raised its local currency
sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'.
S&P
also raised its long-term foreign currency sovereign credit rating
to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign
currency rating. The outlook on the long-term ratings is stable.
In
addition, S&P raised its issue ratings on local currency bonds to
'CCC+' from 'CCC'. S&P's 'B-' transfer and convertibility
assessment is unchanged.
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.
Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term
Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to
'CCC+' from 'CCC'. DBRS, Inc. upgraded Argentina's Long-Term
Foreign and Local Currency Issuer Ratings to B (low) from CCC
in November 2024.
EMPRESA DISTRIBUIDORA: S&P Rates New Senior Unsecured Notes 'B-'
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S&P Global Ratings assigned its 'B-' issue rating to the proposed
senior unsecured notes to be issued by Empresa Distribuidora Y
Comercializadora Norte S.A. (Edenor). The company currently intends
to raise up to $500 million.
At the same time, Edenor will launch a tender offer for its
international notes (Series 7), and potentially refinance other
notes in the local market.
The proposed notes' terms and conditions would be similar to those
on Edenor's recent Series 7 international issuance, including a
soft amortization profile over the final three years and a
seven-year tenor.
The company would use the proceeds from the proposed issuance for
ongoing liability management and to fund strategic growth
acquisitions within the energy sector; it would also use the
proceeds for general corporate purposes. S&P said, "Depending on
the amount raised, we anticipate that the proposed issuance would
result in incremental debt of $200 million-$300 million. But we
also think it won't materially affect the company's
creditworthiness, because our 'B-' issuer credit rating
incorporates sufficient headroom. We will assess the acquisition of
assets and if it has any effects on the business and financial risk
profile following the announcement and closing of the
transaction."
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B R A Z I L
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ONCOCLINICAS: To File for Creditor Protection
---------------------------------------------
Bloomberg News reports that Oncoclinicas is set to file a
precautionary court request seeking protection from creditors after
breaching its debt limits and receiving a going-concern warning
from Deloitte.
The company must also negotiate with physicians, as doctors have
threatened a coordinated resignation over drug shortages that have
already delayed treatment for around 6,000 cancer patients,
according to the report.
Sources added that Porto and Fleury requested an extension of their
exclusivity agreement, which expired on Sunday, April 12, 2026,
though approval appears uncertain, the report notes.
Oncoclínicas&Co is the result of a pioneering initiative in
oncological services management and administration.
Founded by clinical oncologist Bruno Ferrari in 2010, in the city
of Belo Horizonte, in Minas Gerais, Brazil, over the years it has
achieved great milestones in cancer treatments and is now
considered one of the largest and most respected groups in
oncology, hematology, radiotherapy, and genomics in Latin America.
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C H I L E
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TELEFONICA MOVILES: S&P Downgrades ICR to 'BB-', Outlook Stable
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S&P Global Ratings lowered its issuer credit and issue-level
ratings on Telefonica Moviles Chile S.A. (TMC) to 'BB-' from 'BB'.
S&P also removed the ratings from CreditWatch with developing
implications, where it placed them on Feb. 13, 2026.
The stable outlook reflects S&P's expectation that TMC will
maintain leverage above 4x in 2026 but could resume growth and
improve profitability starting in 2027, potentially reducing
leverage to about 3.5x.
In 2025, lower-than-expected EBITDA and higher debt resulted in S&P
Global Ratings-adjusted debt to EBITDA of 5x.
TMC continues to face operational challenges, given competition and
high debt, which will keep leverage above 4x at least until the end
of 2026.
New management is committed to an ambitious turnaround plan,
including aggressive cost cutting and contract renegotiations,
which are expected to improve profitability.
Last year, the company generated S&P-adjusted EBITDA CLP278
billion, a 1% year-over-year increase. While some operational
trends are improving--specifically, a slowing subscriber base
decline and falling churn—the fixed and mobile revenue declined
about 4% year over year. This was largely attributed to a 1.6% fall
in equipment sales, stemming from changes in equipment financing
policies, and a 13.3% decrease in the fixed business due to lower
Fiber and pay TV access. Other telephony services also contracted
sharply (75%) due to extraordinary income recognized in 2024 and to
lesser extent in 2025, from the sale of inventory related to the
copper network shutdown. Excluding this effect, total fixed
business revenue decreased 6.1% year over year.
TMC has implemented an efficiency plan aimed at reducing operating
costs, which lowered expenses by 5% year over year. This was
achieved through workforce adjustments and efficiency in network
maintenance and IT services, improving EBITDA margin to 17.8% from
16.9% in fiscal 2024. However, higher-than-expected capital
expenditure (capex) associated with 4G network quality and 5G
deployment, and higher debt resulted in lower-than-expected cash
flow and in adjusted leverage peaking at 5x from 4.4x in fiscal
2024.
The new controlling group's is committed to a turnaround plan, but
S&P believes it could face execution risk. On Feb. 10, 2026,
Inversiones Telefonica International Holding SpA, a wholly-owned
subsidiary of Telefonica S.A., sold 100% of its TMC shares to
Celtel Chile SL, a joint venture between NJJ Cactus SAS and
Millicom Spain S.L. The agreement included a $50 million cash
payment at closing and a contingent consideration of up to $150
million based on structural value creation, and contingent debt
payments to Telefonica S.A. of up to $340 million, which are
nonrecourse to Millicom and will be financed with TMC's cash flow.
Following the acquisition of TMC, Millicom is carrying out a
significant cost base restructuring, including considerable labor
force reduction, lowering brand fees, and undertaking a
comprehensive review and renegotiation of all supplier and vendor
agreements. The company is leveraging its regional footprint to
maximize negotiating power and achieve substantial savings. S&P
said, "Additionally, we expect reinstatement of certain opex and
differed costs during 2026, which could further enhance EBITDA
margins. We expect TMC's EBITDA margins to edge up to about 22% in
2026 and to improve to 25%-27% starting in 2027."
Millicom's management has strong track record of cost focus.
However, Chile's highly competitive telecom market and execution
risks associated with the turnaround plan pose substantial
challenges.
Stiff competition in Chile's telecom market could pose additional
challenges for TMC. TMC continues to face pressure from peers to
retain and grow its subscriber base. In the mobile segment,
sustained promotional intensity, particularly from Claro Chile/VTR
Finance N.V., and to a lower extent from Wom S.A., continues to
weigh on TMC's subscriber base and ARPU. In the fixed business,
while demand remains solid, TMC's growth prospects are downbeat as
key players--including Claro/VTR, Empresa Nacional de
Telecomunicaciones S.A., and TMC--have access to the same neutral
fiber network, limiting differentiation to last-mile execution and
service quality. Furthermore, Mundo Pacifico has grown considerably
in the past few years. S&P said, "We believe the new controlling
group could improve TMC's profitability, but this will also depend
on the company's ability to reverse subscriber losses and raise
revenue. We forecast revenue to remain almost flat in 2026 and to
grow about 2% in 2027."
S&P said, "We expect adjusted leverage will remain at above 4x in
2026 and to decline to about 3.5x in 2027. This is contingent on
continued cost reductions bolstering EBITDA and on the resumption
of revenue growth. In our view, new management will need to focus
not only on cost-efficiency measures but also on reinvesting to
reposition the brand, which would require higher capex. After
several years of capex at 10% of revenue—below those of industry
peers—we believe capex could increase to about 15% of revenue in
the following years, to keep up upgrades to the mobile network,
resume growth of fiber subscribers, and enhance service quality. We
anticipate working capital renegotiations, coupled with lower
interest expenses following the repayment of the former parent's
loan, will generate free operating cash flow (FOCF) in the next two
years, with FOCF to debt at 5%-7%. S&P-adjusted debt to EBITDA
(including contingent payments) is likely to remain at above 4x in
2026 and decline to around 3.5x in 2027."
Despite Millicom's operational involvement, NJJ has the ultimate
control of TMC. TMC is owned by Celtel Chile–-a special purpose
vehicle jointly controlled by Millicom Spain S.L. (49%) and NJJ
Cactus SAS (51%; the personal investment vehicle of Xavier Niel who
currently owns 42% of Millicom through Atlas Investissement). S&P
said, "This structure prevents TMC's consolidation into Millicom's
financial statements, and effective control resides with NJJ, which
we consider a personal investment vehicle. Therefore, we do not
incorporate potential extraordinary group support into the
ratings."
S&P said, "The stable outlook reflects our expectation that TMC
will resume growth and its profitability to improve. We forecast
adjusted debt to EBITDA will remain elevated at above 4x in 2026
and to fall to about 3.5x in 2027, while maintaining FOCF to debt
at about 6%.
"We could lower the ratings on TMC if we forecast adjusted leverage
remains at about 5x for a prolonged period. This could result from
continued customer attrition and a failure to improve ARPUs,
reducing EBITDA margins below 20%. Furthermore, leverage could
increase due to a more aggressive financial policy coming from the
new controlling shareholder, including higher shareholder
distributions or debt-funded investments that could strain FOCF. A
downgrade could also occur if the liquidity position weakens, with
expected liquidity sources falling and remaining below 1.2x uses,
or if TMC's access to credit markets narrows.
"We could raise the ratings if TMC resumes revenue growth, which
coupled with efficiency measures implemented by the new controlling
group, improve profitability. This would enable the company to
maintain adjusted leverage comfortably below 4x and FOCF to debt
improving to 10% or above."
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D O M I N I C A N R E P U B L I C
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[] DOMINICAN REPUBLIC: Spain Leads Foreign Investment
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Dominican Today reports that Spain became the leading source of
foreign direct investment in the Dominican Republic last year,
contributing US$1.086 billion, or 21.5% of total inflows, according
to the Spanish Chamber of Commerce, based on data from the Central
Bank of the Dominican Republic. This places Spain ahead of the
United States, which ranked second with US$1.042 billion, according
to Dominican Today.
Total foreign direct investment reached US$5.03 billion, marking an
11.3% increase compared to the previous year, the report notes.
Authorities and business leaders attribute Spain’s rise to a
sustained strategy of investing in key sectors and strengthening
long-term economic ties between both countries, the report relays.
Spanish investments have been concentrated mainly in tourism and
renewable energy, along with growing activity in real estate,
construction, financial services, and trade, the report discloses.
Other major investors included Italy, Panama, and Mexico, though at
significantly lower levels, highlighting Spain's leading role in
driving economic growth and modernization in the Dominican
Republic, 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.
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J A M A I C A
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JAMAICA: Manufacturers, JPS to Discuss Power Weaning
----------------------------------------------------
RJR News reports that Vice President of the Jamaica Manufacturers
and Exporters Association (JMEA) and Chairman of its Energy
Committee, Cecil Foster, says members of the sector was to meet
with the Jamaica Public Service Company to discuss strategies to
reduce energy costs.
Speaking on Radio Jamaica's Real Business, Mr. Foster said the
talks will focus on power weaning, the generation of electricity in
one location, and its transmission for use in another area, notes
the report.
He noted that this is one of several measures being explored by
manufacturers to manage rising energy costs driven in part by the
ongoing conflict in the Middle East, RJR News says. Mr. Foster
added that companies are also increasing investments in renewable
energy as they seek to improve efficiency and remain competitive.
He called for the Development Bank of Jamaica and commercial banks
to provide more affordable financing to help manufacturers retrofit
their operations, warning that high energy costs pose a serious
threat to the sector's survival, adds the report.
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.
JAMAICAN URBAN: More Drivers Charged in Ongoing Probe
-----------------------------------------------------
RJR News reports that more drivers employed to Jamaica Urban
Transit Company have been implicated in the ongoing investigation
into financial irregularities at the state run bus company.
Detectives assigned to the National Strategic Anti-Gang Division,
within the Specialised Investigation Branch, say four drivers were
recently charged with embezzlement and failing to issue tickets,
according to RJR News.
This brings the number of drivers charged to 13, the report
discloses.
It's alleged that during the period March 10 to April 2, the
employees collected bus fares without issuing receipts, the report
notes. The matter was reported to the police, prompting an
investigation, says the report.
Senior Superintendent of Police Christopher Brown, head of the
Specialised Investigation Branch, has credited the arrests to the
diligence of his team, the report relays.
About Jamaica Urban Transit Company
Jamaica Urban Transit Company was established in 1998 to provide
a centrally managed state-of-the-art public bus service. The
government invested US6 billion aiming to have an efficient
transport system and for the Jamaican people.
As reported in the Troubled Company Reporter-Latin America in May
2025, RJR News relayed that the Jamaica Urban Transit Company's
losses and subsidies are currently running at J$20 billion, or
0.66 % of GDP, while the amount of money collected from tickets
or the fare box is $1.5 billion, compared with $3 billion in
2016. The company deploys about 200 buses per day, compared
with 400 per day in 2016 but its operating expenses remain the
same, according to RJR News.
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P U E R T O R I C O
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BED BATH: Appoints Amy Sullivan as New Company President
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Susanne Barton of Bloomberg Law reports that Bed Bath & Beyond
announced that it has appointed Amy Sullivan as president,
effective immediately, as it looks to accelerate growth
initiatives. The company said the move is aimed at strengthening
leadership across its operations.
Sullivan will be responsible for overseeing the company's business
across all pillars, with a focus on aligning brand messaging,
product offerings, and customer experience. Her role is expected
to drive consistency and execution across the platform, the report
states.
The appointment reflects the company's ongoing efforts to rebuild
and expand following a period of restructuring and shifting
consumer trends. Management highlighted the importance of
integrated leadership in achieving long-term growth, according to
Bloomberg.
The leadership change follows the company’s agreement
to acquire
The Container Store, a move that signals continued investment in
its retail and organizational strategy, the report relays.
About Bed Bath & Beyond
Bed Bath & Beyond Inc., together with its subsidiaries, is an
omnichannel retailer selling a wide assortment of merchandise in
the Home, Baby, Beauty & Wellness markets and operates under the
names Bed Bath & Beyond, buybuy BABY, and Harmon, Harmon Face
Values. The Company also operates Decorist, an online interior
design platform that provides personalized home design services.
At its peak, Bed Bath & Beyond operated the largest home furnishing
retailer in the United States with over 970 stores across all 50
states, consistently at the forefront of major home and bath
trends. Operating stores spanning the United States, Canada,
Mexico, and Puerto Rico, Bed Bath & Beyond offers everything from
bed linens to cookware to electric appliances, home organization,
baby care, and more.
Bed Bath & Beyond closed over 430 locations across the United
States and Canada before filing Chapter 11 cases, implementing
full-scale wind-downs of their Canadian business and the Harmon
branded stores.
Left with 360 Bed Bath & Beyond, and 120 buybuy BABY stores, Bed
Bath & Beyond Inc. and 73 affiliated debtors on April 23, 2023,
each filed a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code to pursue a wind-down of operations.
The cases are pending before the Honorable Vincent F. Papalia and
requested joint administration of the cases under Bankr. D.N.J.
Lead Case No. 23-13359.
Kirkland & Ellis LLP and Cole Schotz P.C. are serving as legal
counsel, Lazard Frares & Co. LLC is serving as investment banker,
and AlixPartners LLP is serving as financial advisor. Bed Bath &
Beyond Inc. has retained Hilco Merchant Resources LLC to assist
with inventory sales. Kroll LLC is the claims agent.
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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
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Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.
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