260501.mbx

260501.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, May 1, 2026, Vol. 27, No. 87 Headlines A R G E N T I N A ARGENTINA: Milei Incentives Set to Boost USD12BB Oil Field ARGENTINA: Netherlands Rejects Soy Meal Cargoes Over GMO Issue B A H A M A S FTX GROUP: Del. High Court Affirms Dismissal of Claim Deal Suit B R A Z I L BRAZIL: Aims to Regulate Critical Minerals Without Tax Breaks MINAS GERAIS: Moody's Upgrades Long Term Issuer Rating to Ba3 J A M A I C A JAMAICA: BOJ Says Net Remittances Rose to US$247.6MM in February JAMAICA: Cash Still King to Jamaicans JAMAICA: Paulwell Urges Gov't. to Reach Out to Venezuela Leadership P U E R T O R I C O LINEAS DE PUERTO: Hires Carlo Law Office as Special Counsel PHOENIX FUND: Court Upholds Appointment of Driven as Receiver U R U G U A Y COOPERATIVA DE AHORRO: S&P Affirms 'CCC+' ICR, Outlook Now Stable SANCOR SEGUROS: Fitch Affirms 'BB-' LT IFS Rating, Outlook Stable V E N E Z U E L A CITGO PETROLEUM: Bidder Violating Confidentiality Agreement VENEZUELA: Mercosur to Reconsider Country's Membership, Brazil Says - - - - - ================= A R G E N T I N A ================= ARGENTINA: Milei Incentives Set to Boost USD12BB Oil Field ---------------------------------------------------------- Jonathan Gilbert at Bloomberg News reports that President Javier Milei's marquee investment incentive package is set to bring forward development of a flagship oil field in Argentina's booming Vaca Muerta shale patch. Pluspetrol SA, a privately-owned driller, said it would accelerate production of Bajo del Choique-La Invernada under Milei's so-called RIGI initiative, which was broadened out earlier this year to shale oil wells, according to Bloomberg News. Pluspetrol purchased the acreage from Exxon Mobil Corp. 18 months ago and applied to RIGI, saying it would spend US$12 billion to reach daily output of 100,000 barrels of crude and the equivalent of another 73,000 of gas within about two decades, Bloomberg News relates. Other drillers are also speeding up their Vaca Muerta oil plans under RIGI, but Bajo del Choique-La Invernada is the biggest project yet to seek inclusion, Bloomberg News 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. 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. ARGENTINA: Netherlands Rejects Soy Meal Cargoes Over GMO Issue -------------------------------------------------------------- Hallie Gu at Bloomberg News reports that the Netherlands has rejected at least two Argentinian soybean meal cargoes this month after non-approved genetically modified material was found, threatening to disrupt a major trade flow. Dutch authorities filed two alerts in April involving cargoes originating from Argentina, the world's top exporter of soybean meal, according to Bloomberg News. The April 14 and 17 notifications cited the presence of unauthorised GMO traits, according to the European Commission website, the report notes. The Netherlands is a key gateway for feed imports into the European Union, and disruptions there can ripple across regional supply chains, the report relays. Additional scrutiny of Argentine cargoes could curb demand from the bloc -- the world's largest soymeal importer -- for South American supplies, boosting the appeal of US soybean meal, the report discloses. Chicago soybean meal futures rallied as much as 3.2 percent Monday, April 27, on speculation that the rejection would boost demand for alternative origins, the report says. Prices largely held gains as traders continue to assess the impact of the trade disruption, the report adds. The reports have "triggered some pretty decent buying into meal, (with) meal finishing US$8 to US$9 higher, unwinding the meal oil spread. That spilled over into the soybean complex," Curt Kimmel, hedging strategist at AgMarket.Net, said on Illinois Public Media's Closing Market Report, Bloomberg News notes. The EU imports about 20 million tons of soybean meal a year and typically relies on South America for the bulk of supplies, with Brazil and Argentina as the top two sources, Bloomberg News discloses. Any sustained and unresolved strain on flows could gradually start to alter global trade patterns, given the bloc's strict regulatory standards, Bloomberg News says. 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. ============= B A H A M A S ============= FTX GROUP: Del. High Court Affirms Dismissal of Claim Deal Suit --------------------------------------------------------------- Jarek Rutz at law360.com reports that the Delaware Supreme Court has upheld a lower court's dismissal of a dispute over a failed attempt to purchase a multimillion-dollar claim tied to the collapse of onetime crypto giant FTX Trading Ltd., affirming that the case does not belong in Delaware courts. FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. SBF agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 billion in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10, 2022, showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The Official Committee of Unsecured Creditors tapped Paul Hastings as counsel, FTI Consulting, Inc., as financial advisor, and Jefferies LLC as the investment banker. Young Conaway Stargatt & Taylor LLP is the Committee's Delaware and conflicts counsel. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. =========== B R A Z I L =========== BRAZIL: Aims to Regulate Critical Minerals Without Tax Breaks ------------------------------------------------------------- Reuters reports that Brazil's planned critical ‌minerals rules do not involve fresh tax breaks, Finance Minister Dario Durigan said, adding that their aim was to secure national sovereignty and add value through domestic processing. Durigan, who took charge of the ministry, told Reuters from his new office that critical minerals would be a priority in a May or June auction for the Eco Invest program, which offers blended finance to lure foreign investment, according to the report. Although a small producer, Brazil holds vast reserves ⁠of critical minerals that are key for high-tech industries, the report notes. About Brazil Brazil is the fifth largest country in the world and third largest in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian general election. He was sworn in on January 1, 2023, as the 39th president of Brazil, succeeding Jair Bolsonaro. In October 2024, Moody's Ratings upgraded the Government of Brazil's long-term issuer and senior unsecured bond ratings to Ba1 from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2; and maintained the positive outlook. S&P Global Ratings raised on Dec. 19, 2023, its long-term global scale ratings on Brazil to 'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. DBRS' credit rating for Brazil was last reported at BB with stable outlook at July 2023. MINAS GERAIS: Moody's Upgrades Long Term Issuer Rating to Ba3 ------------------------------------------------------------- Moody's Ratings has upgraded the State of Minas Gerais' (Minas Gerais) baseline credit assessment (BCA) to b3 from caa1, its long-term issuer Rating to Ba3 from B1, and changed the outlook to stable from positive. RATINGS RATIONALE The upgrade of the BCA to b3 follows the state's formal entry into the federal government's state debt repayment program (PROPAG), as defined in the Brazilian complementary Law 212 as of 2025, which allows the states in the country to rebuild their fiscal equilibrium through the reprofiling of obligations with the federal government. Under PROPAG, Minas Gerais reduced the financial cost on its debt with the federal government (representing 92% of the total direct debt), and eased the near-term debt service pressures significantly improving its debt affordability relative to the previous framework of the fiscal recovery regime (RRF). Under the PROPAG program, Minas will pay only inflation (IPCA index) as an interest rate on the debt with the federal government, instead of inflation + 4% paid previously. The debt trajectory will also improve because the state will comply with an extraordinary amortization of 20% of the existing debt (or the equivalent to BRL 36 billion as of December 2025) by offering federal government assets such as real estate, receivables, and stakes in state-owned companies, effectively reducing the debt burden in the medium term. This program also extends the debt maturity schedule for 30 years (to 2055). The b3 BCA also considers the state's fiscal profile, which has improved over the last four years, reflecting its efforts to increase own-source revenue while limiting operating expenses. Minas Gerais' revenue base is somewhat resilient and benefits from the state's large and diversified economy. Moody's views the entry into the PROPAG will limit growth in the spending cap, helping to ease fiscal pressures. Nonetheless, Minas Gerais' high debt burden (187%), large personnel expense structure (operating margin 15% in 2025) and pension obligations (in the amount of BRL 30 billion in 2025), will remain key credit challenges. The upgrade of Minas Gerais Issuer Rating to Ba3 considers Moody's views of a high level of extraordinary support from the government of Brazil (Ba1 stable), which results in a three-notch uplift from the state's assigned b3 BCA. The stable outlook on the State of Minas Gerais' rating reflects the recent improvements towards a reduction in the state's debt burden following the entry into PROPAG and anticipated financial flexibility provided by lower interest burden. It also reflects Moody's views that the state will comply consistently with its renewed commitments with the federal government, but further progress towards establishing a sustainable operating balance and debt structure will take several years to be fully implemented. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A more accelerated reduction in the state's debt burden and material improvements in the fiscal profile and key credit metrics could lead to positive pressure on the BCA. Given the significant uplift provided to Minas Gerais' ratings already by Brazil, an upgrade of Brazil's sovereign ratings would not necessarily lead to an upgrade of Minas Gerais' issuer ratings, although it would exert positive pressure. A deterioration of sovereign credit strength or perceived level of financial support would exert downward pressure on Minas Gerais's ratings. Factors such as fiscal slippage, rapidly rising debt levels, or the emergence of significant liquidity risks could also exert downward pressure on the BCA. Additionally, failure to comply with the rules established under the PROPAG framework would exert significant downward rating pressure. The principal methodology used in these ratings was Regional and Local Governments published in May 2024. Minas Gerais' Ba3 rating reflects a baseline credit assessment (BCA) of b3 along with an assumption of a high likelihood of extraordinary support from the Government of Brazil (Ba1 stable). The assigned b3 BCA is three notches below the BCA Scorecard Indicated Outcome of ba3 to reflect Minas Gerais' ongoing fiscal consolidation measures and recent exit from a standalone default, as the government of Brazil was servicing its debt. ============= J A M A I C A ============= JAMAICA: BOJ Says Net Remittances Rose to US$247.6MM in February ---------------------------------------------------------------- RJR News reports that the Bank of Jamaica says that net remittances, which is the difference between foreign exchange sent back by Jamaicans living and working abroad and that sent out by Jamaicans, rose by 3.8 per cent to US$247.6 million in February of this year. The central bank says this is due to an increase of US$8.8 million in inflows and reduction of US$200,000 in outflows, according to RJR News. The BOJ also stressed that most of the inflows came in through remittance companies, the report notes. The bank also indicated that the total remittance inflows for January and February amounted to US$542 million -- an increase of 4.2 per cent when compared to the same period of last year, the report relays. US Remains on Top The BOJ said the United States remains the main source of remittances flowing into the country, the report notes. According to the central bank, the 68 per cent of funds sent home in February came from the US. Below it, similar shares came from the United Kingdom, Canada and the Cayman Islands, the report discloses. The bank also reports that remittances accounted for a slightly smaller share of the economy last year compared with previous years, the report says. However, these inflows continue to play a major role in supporting the country's import bill, covering nearly half of the goods brought into Jamaica, 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. JAMAICA: Cash Still King to Jamaicans ------------------------------------- RJR News reports that a study conducted by Mastercard recently indicated that Jamaicans still believe that cash is king. The study revealed that 72% of all transactions are done in cash in the formal and informal sectors of the economy although this reduces efficiency and limits the expansion of businesses, according to RJR News. The study also indicated that Jamaica has only 11 point of sale terminals for every 1,000 persons and only 8 per cent of the country's merchants have point of sale machines, the report notes. Mastercard's country manager for Jamaica, Dalton Fowles, says there is a big opportunity to expand the country's digital payments system, the report relays. He also stressed that closing these digital payments gaps would allow businesses to reach more customers and to operate more efficiently, 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. JAMAICA: Paulwell Urges Gov't. to Reach Out to Venezuela Leadership ------------------------------------------------------------------- RJR News reports that Opposition Spokesman on Energy Phillip Paulwell is urging the government of Jamaica to reach out to the government of Venezuela now that there is a change in its leadership and the US is in charge. Speaking in an interview on Real Business, Mr. Paulwell stressed that this move would help the country to deal with the global and local energy crisis caused by the war in the Middle East, according to RJR News. The war also resulted in the blocking of the Strait of Hormuz, through which 20 million barrels of oil used to flow on a daily basis, the report notes. The budget was projected on average crude prices of US$62 per barrel, but the price is now averaging about US$100 US per barrel, 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. ===================== P U E R T O R I C O ===================== LINEAS DE PUERTO: Hires Carlo Law Office as Special Counsel ----------------------------------------------------------- Lineas de Puerto Rico, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Osvaldo Carlo Linares, Esq. of Carlo Law Office, LLC to serve as special counsel. The professional will provide these services: (a) appearance in all court proceedings; (b) review of discovery material; (c) preparation and filing of dispositive motions; (d) trial preparation; (e) appearance at trial; (f) advising/representing the Debtor with respect to any negotiations; and (g) advising/representing the Debtor with respect to such other matters as may be required and are deemed to be in the interests of the Debtor in the criminal litigation or any related federal civil enforcement action. The terms of compensation agreed between Debtor and Carlo Law is a flat fee of $50,000 which was paid in November of 2025, prior to the filing of this action. However, expenses, such as experts and appeal fees, were not included. Carlo Law Office, LLC is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The firm can be reached at: Osvaldo Carlo Linares, Esq. CARLO LAW OFFICE, LLC 1509 Lopez Landron-PH San Juan, PR 00911 Telephone: (787) 405-3253 (787) 300-6483 E-mail: ocarlo@carlolaw.com About Lineas De Puerto Rico, Inc. 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. Lineas de Puerto Rico Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 26-00298) on January 29, 2026. At the time of the filing, Debtor had estimated assets of between $100,001 to $500,000 and liabilities of between $1,000,001 to $10 million. Judge Enrique S Lamoutte Inclan oversees the case. NELSON ROBLES-DIAZ LAW OFFICES, P.S.C. is the Debtor's legal counsel. PHOENIX FUND: Court Upholds Appointment of Driven as Receiver ------------------------------------------------------------- Judge Enrique S. Lamoutte of the U.S. Bankruptcy Court for the District of Puerto Rico denied the motion for reconsideration filed by The Phoenix Fund LLC (the "Fund" or "Debtor") of the Court's Receivership Order. The motion for stay pending appeal filed by The Phoenix Fund Advisors LLC ("TPF Advisor" or "TPFA") is also denied. On March 11, 2026, the court entered an Opinion and Order finding that Driven is the entity vested with authority to file a bankruptcy petition on behalf of the Fund and act as debtor-in-possession therein, and holding that automatic stay is inapplicable to the Enforcement Action, including the enforcement of the Amended Complaint and Receiver Order, the Consent Order, and the appointment of Driven as Receiver with authority act as debtor-in-possession. On March 25, 2026, the Fund filed the Motion for Reconsideration wherein it asserts that the Office of the Commissioner of Financial Institutions of Puerto Rico ("OCIF") does not have statutory power to appoint a receiver because the receivership order was interim, and what happened is that the Receivership Order was never carried into effect. The Fund argues that the pecuniary purpose test does not apply where the governmental action relates primarily to a pecuniary interest in estate property rather than to matters of public safety; and the public policy test does not apply to proceedings that effectuate public policy but does not extend to proceedings that adjudicate private rights. They also argue that because the Puerto Rico Department of Economic Development and Commerce ("DDEC") revoked the Fund's Act 60 tax decree following entry of this court's Opinion and Order, the Fund is no longer subject to OCIF's regulatory regime or authority. Debtor requests that the court (1) vacate the Opinion and Order or (2) schedule a hearing to discuss all relevant facts and arguments. On March 30, 2026, TPF Advisor filed a Motion for Stay Pending Appeal averring that the Opinion and Order was issued in violation of 11 U.S.C. Secs. 1101(1) and 1104, and Fed. R. Bankr. P. 9001(5); that Driven lacked actual control over the Fund; that the Receivership Order lacks legal or regulatory foundation, and OCIF lacks legal or statutory power to impose an administrative receivership over the Debtor because the Office of the Commissioner of Financial Institutions Act, Act No. 4-1985, strictly limits OCIF's jurisdiction to a taxative list of "financial institutions" and "private capital fund" organized under Act No. 185-2014 or Act No. 60-2019 is not included in that list; that OCIF's jurisdiction is limited to examinations, inspections, and compliance-related measures; that TPF Advisor was not properly brought into the administrative proceeding before OCIF; that the Fund will be irreparably harmed because it will be liquidated; that OCIF will suffer no harm if the court maintains the status quo pending appeal because the automatic stay does not prevent OCIF from investigating the Fund, issuing findings, imposing fines, revoking licenses, pursuing cease and desist orders, or taking any other regulatory action within its mandate; and, that no state regulator or administrative proceeding may override the Bankruptcy Code or displace a federal bankruptcy court. TPF Advisor also argues that the Enforcement Action violates both tests for the police power exception. Under the pecuniary purpose test, the exception does not apply where the action primarily relates to estate property rather than public safety; and, under the public policy test, the exception applies only where the action effectuates public policy rather than adjudicating private rights. TPF Advisor asserts that the Enforcement Action is a parallel liquidation proceeding operating outside the Bankruptcy Code, which does not establish or enforce regulatory standards. Driven is the entity vested with authority to file a bankruptcy petition on behalf of the Fund and act as debtor-in-possession therein. TPF Advisor has recognized that it was vested with exclusive authority over the management, operation, and control of the Fund prior to the receivership. Driven and OCIF have acknowledged that the Fund's petition for relief was unauthorized. It follows that the Fund is not authorized to file the Motion for Reconsideration or to prosecute it, as argued by both OCIF and Driven. According to the court, irrespective of whether the Fund has standing to pursue reconsideration, the Motion for Reconsideration would still be denied for lack of good cause because it does not support or otherwise meet the requirements for relief under Fed. R. Civ. P. 59 or 60. The Fund argues that newly discovered evidence, that is, the revocation of the Fund's tax decree, warrants reconsideration as OCIF no longer has authority or jurisdiction over the Fund. The forgoing argument should be raised in the Enforcement Action before OCIF, which is the proper forum, not this court. The Fund also argues that this court has made a manifest error of law by overriding 11 U.S.C. Sec. 1104. The forgoing authority, which concerns the post-petition appointment of a trustee or examiner, is inapplicable to whether the police power exception of the automatic stay was and is applicable to the Enforcement Action, and whether a receiver appointed pre-petition by virtue of an administrative proceeding has standing to act as debtor-in-possession. The motion for reconsideration does include additional information and legal support for the Fund's position, but the same does not establish any manifest error of law or fact. Therefore, the the court declines to reconsider its decision that the "automatic stay is inapplicable to the continued prosecution of the Enforcement Action in the OCIF's administrative forum, including the enforcement of the Amended Complaint and Receiver Order, the Consent Order, and the appointment of Driven, P.S.C., as Receiver with authority act as debtor-in-possession, pursuant to 11 U.S.C. Sec. 362(b)(4)." With respect to the issue of stay pending appeal, and irrespective of TPF Advisor's standing, TPF Advisor has not met its burden. The court finds TPF Advisor has failed to show success on the merits; that it will be irreparably harmed absent a stay because its available legal remedies are inadequate; that issuance of a stay pending appeal will not harm other parties; or, that public interest favors a stay. A copy of the Court's Opinion and Order dated April 15, 2026, is available at http://urlcurt.com/u?l=fwXjEdfrom PacerMonitor.com. About The Phoenix Fund LLC The Phoenix Fund LLC is a Puerto Rico based private equity firm formed in 2018 and headquartered in Guaynabo, Puerto Rico. The company focuses on making strategic equity and debt investments in privately held businesses in Puerto Rico and international markets. Phoenix Fund LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 26-00712) on February 23, 2026. Honorable Bankruptcy Judge Enrique S. Lamoutte Inclan handles the case. In its petition, the Debtor reports estimated assets between $500 million and $1 billion and estimated liabilities between $100 million and $500 million. The Debtor is represented by Alexis Fuentes Hernandez, Esq. of Fuentes Law Offices, LLC. ============= U R U G U A Y ============= COOPERATIVA DE AHORRO: S&P Affirms 'CCC+' ICR, Outlook Now Stable ----------------------------------------------------------------- S&P Global Ratings revised the outlook on its ratings on Cooperativa de Ahorro y Credito Fucerep to stable from negative. S&P also affirmed its 'CCC+' global scale issuer credit ratings on the cooperative. Cooperativa de Ahorro y Credito Fucerep has increased its capital buffer well above the minimum regulatory requirements over the two past years due to narrower losses and a contraction in its credit portfolio stemming from more prudent origination. The increased capital buffer has lowered the risk of regulatory intervention. Nevertheless, the business still faces sustainability challenges and continues to report losses, although these are partly offset by contributions from cooperative members. Consequently, S&P revised its outlook on the ratings on Fucerep to stable from negative and affirmed the 'CCC+' global scale issuer credit ratings. The stable outlook reflects S&P's expectation that the entity will maintain its regulatory capitalization above the minimum requirements with no imminent regulatory intervention risk. Fucerep has stabilized its regulatory capital, which has consistently stayed above the minimum requirements for the past two years, lowering regulatory intervention risk. This improvement is primarily attributed to reduced losses resulting from more conservative loan portfolio management during 2024 and 2025, and to the contributions of its members. At the end of 2025, the regulatory capitalization ratio reached 18.7%, up from 15.4% in 2024 and 14.6% in 2023. This comfortably exceeds the regulatory minimum of 12%, despite the cooperative's consistent negative performance. S&P said, "We believe Fucerep's business faces long-term sustainability challenges. Exposure to riskier segments and still high administrative expenses will continue to be a burden for Fucerep's results. Its cost-to-income ratio will be around 117% given an inflexible cost structure because 58% of expenses are comprised of employee salaries and benefits. As a result, we believe Fucerep remains vulnerable to and dependent on favorable business, financial, and economic conditions to meet its financial objectives. "Although results will remain negative, we expect recurring losses to decline, driven by credit growth of about 4%, lower bad debt charges, and improved loan recoveries. More conservative origination will keep cost of risk manageable. Credit cards and leases to small and midsize enterprises will primarily support loan growth. However, the cooperative will remain a relatively small player in the financial system in Uruguay, with about 0.1% of market share, which weakens business stability. "Although the cooperative's asset quality metrics remain considerably weaker than the industry average, we anticipate some improvement in 2026. Nonperforming loans (NPLs, more than 60 days past due) were 17.4% of total loans in 2025, compared to 19.0% in 2024 and 26.0% in 2023. We expect NPLs to be about 15% in 2026, fully covered by reserves. This decrease is due to a more conservative lending policy and improvements in collection mechanisms, especially in the consumer loan portfolio without payroll deductions. "The stable outlook for the next 12 months reflects our expectation that the entity will maintain its regulatory capitalization ratio above the minimum requirements, with no imminent intervention risk. Member contributions will continue to primarily support capital, offsetting persistent weakness in profitability and structural difficulties in sustaining its business model. "Although operational efficiency and portfolio quality have historically been poor, we expect Fucerep to continue to gradually improve its financial indicators, mainly from more conservative origination standards, lower losses, and progress in risk management. However, we think these indicators will remain well below industry standards and will keep posing a challenge to the entity's sustainability. "We could lower the ratings within the next 12 months if the company experiences significantly higher losses than we expect, materially exceeding contributions from cooperative members, while funding sources diminish. Such a scenario could lead to a decrease in Fucerep's regulatory capitalization indicators and raise the risk of a regulatory intervention. "We could raise the rating if Fucerep consistently improves its profitability and margins while enhancing its risk controls and collection mechanisms." SANCOR SEGUROS: Fitch Affirms 'BB-' LT IFS Rating, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Sancor Seguros S.A.'s (Sancor) Long-Term Insurer Financial Strength (IFS) rating at 'BB-'. The Rating Outlook is Stable. The affirmation of Sancor is based on the stability of its main rating factors, incorporating the maintenance of positive and favorable results for the rating, stable leverage ratios despite higher dividend payouts, as well as the less favorable evaluation of the business profile mainly due to its limited operating scale in accordance with Fitch's guidelines. Key Rating Drivers Solid Performance Maintenance: In 2025, Sancor continued to report solid results, with a profit of UYU146 million, a 12% increase compared to the profit in 2024. Performance measured by ROAE was 20.9%, slightly better than the 20.3% reported in 2024 and above the average of the last three years of 17.4%. The combined ratio reached 98.1% at the end of 2025, lower than the 100.5% recorded at the end of 2024. The ratio benefited from an improvement in the net loss ratio, which reached 41.7% and was lower than the previous year's indicator (42.2%). The net expense ratio also improved slightly compared to the end of 2024 (58.3%), reaching 56.5%. The company continues to make significant efforts to implement technology that will allow it to improve its expense indicators in the medium term and, consequently, its operational indicators. Improved Profitability Offset Higher Dividends: The improved results of the insurer, combined with greater stability in the growth of both premiums and reserves, sustained the maintenance of capitalization and leverage indicators within the current credit factor ranges and offset the higher dividend distribution in the last cycle. While gross written premiums grew by 8% and net income grew by approximately 12%, equity grew by only 4.1%, which put slight pressure on the capitalization and leverage indicators. At the end of 2025, Sancor reported a gross written premiums to equity ratio of 3.1x, a net leverage of 4.9x and a gross leverage of 5.8x, slightly above the indicators reported in the previous year. However, those were in line with the average of the last three years. Moderate Business Profile: Sancor's rating reflects a moderate business profile based on a moderate market position, and its business risk profile and diversification align with the Uruguayan industry. The business profile is limited by a small operating scale (according to Fitch's guidelines), which is affected by the Uruguayan market's size and the concentration of the state-owned company, Banco de Seguros del Estado (BSE) (market share at December 2025: 71%), which limits growth for all private insurers in the country. Sovereign Ratings Influence Investment Risk: The investment risk remains limited due to the wide concentration in sovereign instruments linked to sovereign risk. Ownership Negative for the Rating: Sancor has reduced its dependence on its Argentine parent, Sancor Cooperativa. This separation is noticeable at the system and process levels, and mainly for capital requirements. Sancor's performance has improved over the last four years and generated positive results. Accumulated losses have decreased, strengthening the equity base. Despite this, Fitch maintains a negative assessment of the property in the final rating derived from the credit opinion held on Sancor Cooperativa, an opinion strongly influenced by Argentina's sovereign rating (CCC+), while the entity's individual results and solvency indicators remain favorable. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration of capitalization reflected in bigger leverage indicators, with gross written premium to equity steadily above 3.5x and a Prism score in the lower part of the 'Weak' category; - Significant deterioration in the technical performance indicators, with a combined ratio increasingly above 110% and a ROE lower than 4%; - Changes in in Fitch's credit view and relationship with its parent, particularly pressures on financial flexibility. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A significant improvement in terms of operating scale or increase on net written premium, resulting in an increase in market share that could have a positive impact on the business profile; - Strengthening of the leverage indicators, including the result of the evaluation of Fitch's Prism factor-based capital model, maintaining a score within the upper mid-range of the 'Somewhat Weak' category; - Positives changes in Fitch's view regarding Sancor Cooperativa's credit profile. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Sancor Seguros S.A. LT IFS BB- Affirmed BB- ================= V E N E Z U E L A ================= CITGO PETROLEUM: Bidder Violating Confidentiality Agreement ----------------------------------------------------------- Caroline Simson at law360.com reports that counsel for the oil giant Citgo has accused an affiliate of hedge fund Elliott Investment Management LP of improperly revealing and distorting its confidential information as the parties inch closer toward ending a long-running saga aimed at satisfying billions of dollars' worth of Venezuelan debt. Citgo Petroleum Corporation is a United States-based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. Based in Houston, Texas, Citgo is majority-owned by PDVSA, a state-owned company of the Venezuelan government (although due to U.S. sanctions, in 2019, they no longer economically benefit from Citgo.) As reported in the Troubled Company Reporter-Latin America in September 2025, Fitch Ratings affirmed the Long-Term Issuer Default Rating (IDR) of CITGO Petroleum Corp. (CITGO, or Opco) at 'B' with a Stable Outlook and CITGO Holding, Inc. (Holdco) at 'CCC+'. Fitch also affirmed Opco's existing senior secured notes and industrial revenue bonds at 'BB' with a Recovery Rating of 'RR1'. VENEZUELA: Mercosur to Reconsider Country's Membership, Brazil Says ------------------------------------------------------------------- Martha Beck at Bloomberg News reports that Mercosur is set to discuss Venezuela's possible return to the South American trade bloc as countries warm to Caracas following the ouster of Nicolas Maduro by US forces earlier this year. Brazil's Vice-President Geraldo Alckmin said the group could revisit Venezuela's suspension as the country enters a "different moment," signalling a potential shift in regional dynamics after years of isolation, according to Bloomberg News. "Venezuela joined Mercosur, was suspended, and as it moves into a different moment, that will be rediscussed," Alckmin told reporters in Brasilia, Bloomberg News notes. Venezuela's re-engagement with Western institutions has gathered pace since Delcy Rodriguez became acting president and moved to rebuild ties with the United States, Bloomberg News relays. The International Monetary Fund said it would resume formal contact, opening the door to eventual access to multilateral financing, Bloomberg News says. Caracas is also seeking foreign investment in its energy and mining sectors with US backing, as global supply concerns intensify, Bloomberg News notes. Donald Trump has moved to ease sanctions on key financial entities and granted new licences for US oil companies to expand operations in the country, the report discloses. Venezuela was suspended from Mercosur in 2017 for breaching the bloc's democratic clause and failing to meet economic commitments, Bloomberg News says. Rejoining would require consensus among member states and a reassessment of whether it meets those standards, Bloomberg News relates. The debate comes as Mercosur pushes ahead with a broader reset, including the provisional implementation of a long-delayed trade agreement with the European Union on May 1, Bloomberg News says. Brazil estimates the deal could lift its exports to the EU by about 13 percent, Bloomberg News notes. Alckmin, who also served as Brazil's industry and trade minister, pointed to expansion efforts as part of Mercosur's strategic agenda, Bloomberg News discloses. Bolivia is adopting the bloc's legal and trade rules after being accepted as a full member in 2024, while Colombia is seeking full membership, Bloomberg News notes. Mercosur's founding members are Brazil, Argentina, Paraguay and Uruguay. "It's very important to deepen Latin American integration," Alckmin said, adding that intraregional trade accounts for less than 30 percent of total commerce, compared with about 50 percent in North America, nearly 60 percent in Europe and close to 70 percent in Southeast Asia's Asean, he added. About Venzuela Venezuela, officially the Bolivarian Republic of Venezuela, is a country on the northern coast of South America, consisting of a continental landmass and a large number of small islands and islets in the Caribbean sea, according to globalinsolvency.com. The capital is the city of Caracas, the report notes. Hugo Chavez was president to Venezuela from 1999 to 2013. The Chavez presidency was plagued with challenges, which included a 2002 coup d'etat, a 2002 national strike and a 2004 recall referendum. Nicolas Maduro was elected president in 2013 after the death of Chavez. Maduro won a second term at the May 2018 Venezuela elections, but this result has been challenged by countries including Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States who deemed it fraudulent and moved to recognize Juan Guaido as president. The presidencies of Chavez and Maduro have challenged Venezuela with a socioeconomic and political crisis. It is marked by hyperinflation, climbing hunger, poverty, disease, crime and death rates, social unrest, corruption and emigration from the country. Moody's has withdrawn its 'C' local currency and foreign currency ceilings for Venezuela in September 2022. Standard & Poors has also withdrawn its 'SD/D' foreign currency sovereign credit ratings and 'CCC-/C' local currency ratings on Venezuela in September 2021 due to lack of sufficient information. Fitch withdrew its own 'RD/C' Issuer Default Ratings on Venezuela in June 2019 due to the imposition of U.S. sanctions on the country's government. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members 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. . * * * End of Transmission * * *