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260515.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 15, 2026, Vol. 27, No. 97 Headlines A R G E N T I N A ARGENTINA: Economists Cast Doubt on Milei's Green Shoots B A H A M A S FTX GROUP: Trust Says Crypto Hedge Fund Owes $84 Million B R A Z I L BRAZIL: Lula Scraps Tax on Imports Under $50 Before Election BSJI: NY Fed Defeats Appeal Tied to Venezuela-Related Cutoff M E X I C O BRASKEM IDESA: Nears Bankruptcy Loan as Debt Crisis Heads to Court P U E R T O R I C O NBG MACHINE: Seeks Approval to Hire CWLS Certified as Accountant PANADERIA RICA: Taps Homel Antonio Mercado Justiniano as Counsel - - - - - ================= A R G E N T I N A ================= ARGENTINA: Economists Cast Doubt on Milei's Green Shoots -------------------------------------------------------- Ignacio Olivera Doll at Bloomberg News reports that President Javier Milei and leading experts are at odds over whether Argentina's economy has recovered from a recent wobble, highlighting the challenges involved in gauging whether the reformer's shock therapy policies are working as intended. Argentina's economy contracted sharply in February, posting its biggest monthly decline since 2023 as retail and manufacturing continued to struggle, according to Bloomberg News. The turbulence followed a dramatic turnaround during which Milei's administration won over investors with a mix of aggressive fiscal adjustment, deregulation and steps to normalise the country's monetary and exchange-rate regime, Bloomberg News notes. With the dust yet to settle from the bout of early-year weakness, Milei and his administration are pointing to rebounds in sectors like cement, steel and auto production as evidence that the economy is finding its footing and his reformist agenda remains on track, Bloomberg News relates. Two indicators published supported that view. Construction activity grew 4.7 percent in March from the previous month and 12.7 percent from a year earlier, while industrial production rose 3.2 percent and five percent, respectively, according to data from statistics agency INDEC, Bloomberg News says. Economists, on the other hand, have maintained that the government is painting an optimistic picture not yet backed by data, Bloomberg News discloses. Bolstering that view are reports showing weakness in spheres such as domestic activity and consumption – often from the private statistics firms that Milei says focus on the wrong areas of the economy or put a gloomy spin on the economic situation, Bloomberg News says. Bloomberg News relates that the back-and-forth underlines how economic data – always top of mind in Argentina – has become even more front and centre as pressure grows on Milei to show that his ambitious overhaul can deliver the growth he has promised. Milei has staked the future of his Presidency on the success of his programme, which has dramatically cut the country’s endemic inflation while also stoking an uneven economic recovery, Bloomberg News notes. Argentina will hold presidential elections in October 2027, Bloomberg News discloses. "Leading indicators are still sending mixed signals," said Jimena Zuñiga, Argentina economist at Bloomberg Economics. "There has been a strong recovery in exports, imports and car production. But those signs coexist with less encouraging evidence of weakness in consumption and employment." Bloomberg News relays that a recent debate over consumption, seen as an important indicator of where growth may be headed, illustrates the contrast between economists' views and those of Milei and his administration. Scentia, one of the country's main reference firms, reported a 5.1-percent drop in mass consumption in March from the same month a year earlier – a trend echoed in other indicators, Bloomberg News notes. Milei, by contrast, urged economists to focus on a different dataset: earnings reports of e-commerce companies such as MercadoLibre Inc and Temu, which are showing robust consumption, Bloomberg News notes. "Consumption is at a historic peak, guys," he told an audience of business leaders and politicians at a dinner hosted by the Libertad Foundation think tank on April 28. The e-commerce data was more relevant because "the way things are sold has changed," he added. The mercurial leader has lashed out in the past over what he called the mismatch of data highlighted by his government versus statistics cited by business leaders, who he described as "empresaurios" – a made-up insult combining the Spanish words empresarios (businessmen) and dinosaurios (dinosaurs), Bloomberg News says. But analysts including Nicolas Gadano, chief economist at local consultancy Empiria and a former general manager of Argentina’s Central Bank, insist Milei is jumping the gun, Bloomberg News relays. "The economy is growing at a slow pace, with a great deal of sectoral heterogeneity on the supply side and sluggish dynamics in both consumption and investment. There are no signs that this is changing for the better," he said, Bloomberg News notes. For now, both sides have plenty of data to support their case, Bloomberg News notes. A more consistent theme is likely to emerge in coming months, with investors looking to gauge whether Milei can keep a lid on inflation while also reviving the real economy before voters – and investors – run out of patience, Bloomberg News says. While national elections are still 17 months away, for Milei, "obviously, the sooner, the better" Zuniga added. About Argentina Argentina is a country located mostly in the southern half of South America. Its capital is Buenos Aires. Javier Milei is the current president of Argentina after winning the November 19, 2023 general election. He succeeded Alberto Angel Fernandez in the position. Argentina has the third largest economy in Latin America. The country's economy is an upper middle-income economy for fiscal year 2019, according to the World Bank. Historically, however, its economic performance has been very uneven, with high economic growth alternating with severe recessions, income maldistribution and in the recent decades, increasing poverty. In March 2022, the International Monetary Fund (IMF) approved a 30-month arrangement under an Extended Fund Facility for Argentina in the amount of SDR 31.914 billion (equivalent to US$44 billion, or 1000 percent of quota) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. The upgrade reflects Moody's views that the extensive liberalization of exchange and (to a lesser extent) capital controls, alongside a new International Monetary Fund (IMF) program, support the availability of hard currency liquidity and ease pressure on external finances. This reduces the likelihood of a credit event. In January 2025, Moody's raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ============= B A H A M A S ============= FTX GROUP: Trust Says Crypto Hedge Fund Owes $84 Million -------------------------------------------------------- Ben Zigterman at law360.com reports that the recovery trust of defunct cryptocurrency exchange FTX has called a crypto hedge fund's $200 million claim "frivolous," countering that it is the hedge fund that owes the estate $84 million for a line of credit FTX had extended. About FTX 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: Lula Scraps Tax on Imports Under $50 Before Election ------------------------------------------------------------ globalinsolvency.com, citing Reuters, reports that Brazil's President Luiz Inacio Lula da Silva on Tuesday signed an executive order to eliminate federal taxes on foreign purchases worth up to $50, reversing course on a highly ‌unpopular levy as he gears up to seek re-election in October. The move is expected to lower the cost of goods bought on cross-border e-commerce platforms widely used by lower-income Brazilians, according to globalinsolvency.com. 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. BSJI: NY Fed Defeats Appeal Tied to Venezuela-Related Cutoff ------------------------------------------------------------ globalinsolvency.com, citing Reuters, reports that the Federal Reserve Bank of New York defeated an appeal by a Puerto Rican lender ‌whose access to the U.S. central banking system was cut off in a ‌crackdown on lenders with links to Venezuela. In a 3-0 decision, the 2nd U.S. Circuit Court of Appeals in Manhattan rejected Banco San Juan Internacional's (BSJI) claim that the Federal Reserve Act entitled it to a "master account," which lets banks access the Fed's electronic payment system, according to globalinsolvency.com. BSJI ⁠sued in 2023 after learning that its 11-year-old account would be closed over concerns it was not complying with U.S, the report notes. =========== M E X I C O =========== BRASKEM IDESA: Nears Bankruptcy Loan as Debt Crisis Heads to Court ------------------------------------------------------------------ brazilstockguide.com reports that Braskem Idesa, the Mexican joint venture controlled by Braskem, is nearing an agreement with creditors for financing that could support a potential U.S. bankruptcy filing, Bloomberg reported, citing people familiar with the matter. The financing under discussion is known as a debtor-in-possession, or DIP, loan — a credit line commonly used by companies in Chapter 11 to maintain operations, pay suppliers and preserve liquidity while they renegotiate their capital structure, according to brazilstockguide.com. According to Bloomberg, the talks indicate that Braskem Idesa's debt crisis is moving beyond a private restructuring negotiation and closer to a court-supervised process, the report notes. Mexico Pressure Braskem Idesa was created to produce polyethylene in Mexico using ethane, a feedstock that can be more competitive than the naphtha used in much of Brazil's petrochemical industry, the report relates. The problem is that Pemex's ethane supply has for years fallen short of contracted volumes, reducing plant utilization and pressuring cash generation, the report says. Braskem Idesa has mitigated part of the shortage through imports and dedicated infrastructure, but the economics remain strained, the report discloses. Debt Strain The financial pressure had already become visible, the report says. Braskem disclosed that Braskem Idesa failed to make interest payments due in November 2025 and February 2026 on senior secured notes maturing in 2029 and 2032, the report relates. The company also said the subsidiary was evaluating alternatives to reorganize its capital structure and remained in talks with an ad hoc group of creditors, the report notes. That is the sensitive point for Braskem, the report discloses. A Chapter 11 process could give the Mexican unit operational breathing room, but it would also formalize the severity of the crisis, the report relays. The implications for the Brazilian parent will depend on guarantees, support obligations and the final terms of any restructuring, the report says. Contagion Risk The crisis at Braskem Idesa comes at a delicate moment for Braskem, the report relays. The Brazilian petrochemical producer is already dealing with a difficult global industry cycle, high financial expenses, liabilities linked to the Maceio case and broader questions about its own capital structure, the report notes. Recent improvement in petrochemical spreads, supported by tighter supply and geopolitical tensions in the Middle East, may ease some operational pressure, the report says. But better spreads do not erase the balance-sheet problem, the report discloses. The market may have improved, but the debt still needs a solution, the report relays. Governance Test The Braskem Idesa negotiations also test Braskem's new governance phase, the report relays. Petrobras chose not to exercise preemptive rights in the sale of Novonor's stake and signed a new shareholder agreement with Shine I FIP, a vehicle advised by IG4 Capital, the report says. Under the new structure, Petrobras and Shine I are set to share control of Braskem, with relevant decisions requiring consensus, the report notes. That architecture may help if it aligns capital, industrial strategy and financial discipline, the report discloses. But it can also become a pressure point if urgent decisions are needed, the report says. A Braskem Idesa restructuring, especially one involving Chapter 11, requires speed, coordination with creditors and a clear view of how much risk the Brazilian parent is willing to absorb, the report discloses. Bloomberg's report suggests the Mexican unit is moving closer to a formal solution for its debt crisis, the report says. For Braskem, however, the issue is larger than securing a bankruptcy loan, the report relays. The real test will be preventing Braskem Idesa's restructuring from contaminating the already fragile financial equation of the parent company — just as Petrobras and IG4 try to reshape the future of Latin America's largest petrochemical producer, the report adds. ===================== P U E R T O R I C O ===================== NBG MACHINE: Seeks Approval to Hire CWLS Certified as Accountant ---------------------------------------------------------------- NBG Machine Builders & Precision Tooling, Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Carlos W. Lamboy Santiago of CWLS Certified Public Accountants, PSC to serve as accountant for the Debtor in Possession. Mr. Lamboy Santiago will provide these services: (a) close out Debtor's books as of the date of the filing of this case, and to open new books as of the next day thereafter; (b) establish a new bookkeeping system to replace the system heretofore used by the Debtor; (c) prepare the periodic statements of the Debtor in Possession's operations as required by the rules of this court; (d) prepare and file Debtor's state and federal tax return for the fiscal year which ended in the semester prior to the date of the filing of this case; (e) prepare General Ledger and Disbursements Register; (f) reconcile the account; (g) prepare Certified Interim Financial Statements as needed; (h) prepare annual Financial Statements and Returns; (i) tax and management counseling; and (j) within a separate agreement, represent in taxes investigations. Mr. Lamboy Santiago will bill based on a flat fee monthly payment of $500, and additional fees, if necessary, according to contract and upon approval of the Court. Mr. Carlos W. Lamboy Santiago and CWLS Certified Public Accountants, PSC are "disinterested persons" within the meaning of Section 101(14) of the Bankruptcy Code, according to court filings. The accountant can be reached at: Carlos W. Lamboy Santiago, CPA CWLS CERTIFIED PUBLIC ACCOUNTANTS, PSC PO Box 764 Hwy 100 Km 5.8 Cabo Rojo, PR 00623 Telephone: (787) 255-2004 Facsimile: (787) 255-2003 E-mail: cpalamboypsc@yahoo.com Icdocarloslamboy@gmail.com About NBG Machine Builder & Precision Tooling NBG Machine Builders & Precision Tooling, Inc., a company based in Sabana Grande, Puerto Rico, delivers precision machining and custom tooling solutions for industrial clients. Its operations include manufacturing precision parts for the pharmaceutical sector and general manufacturing, repairing and maintaining critical production components, and providing technical support for automated systems and industrial equipment. Founded in 2006 and led by President Welderman Matos Alemany, the company employs a few staff. NBG filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No. 26-01087) on March 13, 2026, with $1,060,708 in assets and $862,799 in liabilities. Welderman Matos Alemany, president of NBG, signed the petition. Judge Maria De Los Angeles Gonzalez oversees the case. The Debtor is represented by: Juan C. Bigas, Esq. Juan C. Bigas Law PO Box 7011 Ponce, PR 00732-7011 Telephone: (787) 259-1000 E-mail: cortequiebra@yahoo.com PANADERIA RICA: Taps Homel Antonio Mercado Justiniano as Counsel ---------------------------------------------------------------- Panaderia Rica Dona Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to hire Homel Antonio Mercado Justiniano, a professional practicing law, to serve as counsel in its Chapter 11 case. Mr. Mercado Justiniano will provide these services: (a) examine documents of the Debtor and other necessary information to submit Schedules and Statement of Financial Affairs; (b) prepare the Disclosure Statement, Plan of Reorganization, records and reports as required by the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure; (c) prepare Applications and proposed orders to be submitted to the Court; (d) identify and prosecute claims and causes of action assertable by the Debtor-in-possession on behalf of the estate; (e) examine proof of claims filed and to be filed in the case and possible objections to certain claims; (f) advise the Debtor-in-possession and prepare documents in connection with the ongoing operation of the Debtor's business; (g) advise the Debtor-in-possession and prepare documents in connection with the liquidation of estate assets, if needed, including analysis and collection of outstanding receivables and possible motions for sale or post-petition loans; and (h) assist and advise the Debtor-in-possession in the discharge of duties imposed by the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. Mr. Mercado Justiniano will receive an hourly rate of $250. Associates and paralegals will be paid hourly rates of $125 and $50, respectively, plus reimbursement of expenses. Court filings state that counsel received a $4,000 retainer, with a total agreed retainer of $7,000. Mr. Mercado Justiniano 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: Homel Antonio Mercado Justiniano, Esq. Calle Ramirez Silva #8 Ensanche Martinez Mayagüez, PR 00680-4714 Telephone: (787) 831-2577 (787) 805-2945 Facsimile: (787) 805-7350 E-mail: hmjlaw2@gmail.com About Panaderia Rica Dona Inc. Panaderia Rica Dona Inc. sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Puerto Rico Case No. 26-02074-MCF11) on May 6, 2026. At the time of the filing, Debtor had estimated assets of between $50,001 and $100,000 and liabilities of between $500,001 and $1 million. Homel Antonio Mercado Justiniano, Esq. is Debtor's legal counsel. ********* 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. 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