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260603.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 Wednesday, June 3, 2026, Vol. 27, No. 110 Headlines A R G E N T I N A ARGENTINA: IDB OKs $280MM Loan to Support Entre Rios' Roads EDEMSA: Moody's Rates New $300MM Sr. Unsecured Notes 'B2' EDEMSA: S&P Rates $300MM Sr. Unsecured Notes Due 2032 'B-' B R A Z I L AZUL SA: Wants Creditors Blocked in Brazil With Ch. 11 Plan D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Dollar Closes May With Key Movements J A M A I C A JAMAICA: Producer Prices Rise in April for Mining & Manufacturing JAMAICA: Push on for Greater Digital Inclusion in Finc'l. Services P U E R T O R I C O CONSEJO DE TITULARES: D. Torres-Cancel Named Subchapter V Trustee PANADERIA RICA: Hires Accounting Services Group as Accountant - - - - - ================= A R G E N T I N A ================= ARGENTINA: IDB OKs $280MM Loan to Support Entre Rios' Roads ----------------------------------------------------------- The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved $280 million in Multiple Works Financing to improve provincial roads and urban access routes in the Argentina's Entre Rios Province, contributing to productive development, trade, and regional connectivity. The project will finance the reconstruction and comprehensive rehabilitation of strategic provincial roads and urban bypasses along segments with heavy truck traffic and will improve access and circulation conditions across the local road network. In addition, the program will strengthen the institutional capacities of the provincial government for road management. This financing is part of the IDB Group's regional South Connection program, designed to improve connectivity, strengthen competitiveness, and promote sustainable growth in South America. Within this program, the IDB supports subnational projects to foster integration by strengthening strategic corridors across the region. "This operation reflects our commitment to promoting more resilient and efficient infrastructure that can support the productive development of Entre Ríos and strengthen regional integration," said Viviana Alva Hart, the IDB Group's representative in Argentina. "Improving roads not only facilitates trade and logistics, but also enhances quality of life and access to opportunities for thousands of people," she added. The IDB-supported investment plan will also finance hydraulic interventions aimed at improving drainage and reducing vulnerability to flooding. The project will also fund the implementation of a Road Asset Management System and an Infrastructure Management System, driving a shift toward data-based network management and long-term planning. This improvement will help generate lasting impacts for efficient public spending in the road sector and sustainability of investments. The IDB financing of $280 million has a repayment term of 21.5 years, a grace period of 9 years, and an interest rate based on SOFR. 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. Fitch Ratings, on May 5, 2026, upgraded Argentina's Long-Term Foreign Currency and Local Currency Issuer Default Rating (IDR) to 'B-' from 'CCC+'. The rating Outlook is Stable. 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'. Its 'B-' transfer and convertibility assessment is unchanged. Moody's Ratings, on July 17, 2025 upgraded the Government of 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 its view 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. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024, and confirmed such ratings in November 2025. EDEMSA: Moody's Rates New $300MM Sr. Unsecured Notes 'B2' --------------------------------------------------------- Moody's Ratings has assigned a B2 rating to the proposed $300 million senior unsecured notes (New Notes) to be issued by Empresa Distribuidora De Electricidad De Mendoza S.A. (EDEMSA), with final maturity date in 2033. At the same time, Moody's affirmed EDEMSA's B2 corporate family rating, b2 baseline credit assessment (BCA), and B2 senior unsecured rating on the existing $150 million 9.75% step-up notes due 2031. The outlook remains stable. The assigned rating to the New Notes is based on preliminary documentation received. Should issuance conditions and/or final documentation of the notes deviate from the original terms submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the ratings and act accordingly. Proceeds from the New Notes will be used to fund a tender offer for the existing $150 million notes (subject to a minimum 80% participation condition), prepay $70 of the outstanding local notes, with the incremental financing directed toward capital expenditures. The proposed notes will have three equal amortizations of $100 million in 2031, 2032, and 2033, extending therefore the company's debt maturity profile. RATINGS RATIONALE The B2 rating assigned to the New Notes is in line with the company's B2 CFR because the proposed $300 million notes are direct, unconditional, unsecured, and unsubordinated obligations of EDEMSA, ranking pari-passu with all other senior unsecured indebtedness, including the existing $150 million notes. In connection with the proposed transaction, EDEMSA is soliciting consent from holders of the existing notes to eliminate most restrictive covenants, including limitations on indebtedness, liens, restricted payments, and asset sales, among others. While the new $300 million notes will include most key covenant protections, certain thresholds have been recalibrated. Most notably with higher leverage tolerance (3.75x versus 3.5x/3.0x under the original indenture) and reduced restricted payment capacity (25% versus 50% of cumulative consolidated net income) resulting in a more flexible covenant framework. These modifications indicate a more aggressive financial strategy, leaving existing noteholders in a less favorable position and weighing Moody's assessment of management's financial policy discipline. Mitigating this risk is the extended amortization profile of the new notes and projected financial metrics that remain consistent with the current rating category. EDEMSA's B2 rating reflects the company's strong market position as the primary electricity distributor in the Province of Mendoza (Mendoza, B3 stable), Argentina, with a long-term concession extending through 2048 that covers approximately 73% of the province's territory and services 74% of its population. Given the province's 39% ownership of the company and the operational and financial credit links between EDEMSA and Mendoza, Moody's considers the company a government-related issuer (GRI). EDEMSA's B2 ratings reflect the application of Moody's joint default analysis (JDA) framework for GRIs, which takes into account the combination of: i) a baseline credit assessment (BCA) of b2 as a measure for the rated entity's standalone creditworthiness; ii) the B3 rating of the Province of Mendoza as the support provider, as well as iii) Moody's assumptions of a moderate degree of implied government support in the case of financial distress and iv) a very high default dependence between EDEMSA and the province. Supporting the rating is EDEMSA's positive operating track record and relatively strong financial metrics for the rating category. On a forward-looking basis, the new issuance will result in an average ratio of CFO pre-WC to debt of approximately 20% and interest coverage (CFO pre-WC + interest expense / interest expense) of 3.1x over the next 12 to 18 months. Although the increase in leverage is meaningful relative to the company's historically low debt levels, financial metrics will remain adequate for its rating category. Constraining the rating are the company's credit links with the Province of Mendoza and the Government of Argentina (Caa1 stable), given the country's tough regulatory framework and historically difficult operating environment, with frequent delays in tariff adjustments. Moody's further acknowledge the significant increase in foreign-exchange exposure resulting from the proposed notes issuance, as the company generates its revenue in Argentine pesos while its debt will be predominantly denominated in US dollars. Additionally, nontechnical energy losses have remained consistently high, averaging 16.5% of total energy sold in the 2020–2025 period, and the successful execution of EDEMSA's investment and commercial strategy will be crucial to improve profitability and internal cash generation. RATING OUTLOOK The stable outlook reflects Moody's assumptions that investors' recovery will remain consistent with the company's B2 rating over the next 12–18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of the company's rating will be subject to the rating's position relative to the Government of Argentina's rating. An upgrade would further require EDEMSA to demonstrate an improvement in both operating and financial results. A downgrade of Argentina's foreign-currency country ceiling, a deterioration in the operating environment, or a shift in policies or regulations that reduce its ability to improve cash generation and increase liquidity needs would lead to pressure on the rating. COMPANY PROFILE EDEMSA was established in 1998 and has been the primary electricity distributor in the Province of Mendoza (B3 stable) for over 25 years. According to the terms of the company's concession, it has the monopoly to distribute electricity within its license area and has the strongest market position in the province in terms of number of clients and electricity consumption. The ownership structure is divided between SODEMSA (Sociedad de Inversión para el Desarrollo Eléctrico de Mendoza S.A.) (51%), the Mendoza Government (39%) and a Participated Ownership Program (PPP) (10%). LIST OF AFFECTED RATINGS Issuer: Empresa Distrib. De Electricidad De Mendoza Assignments: Senior Unsecured, Assigned B2 Affirmations: Baseline Credit Assessment, Affirmed b2 LT Corporate Family Rating, Affirmed B2 Senior Unsecured, Affirmed B2 Outlook Actions: Outlook, Remains Stable The methodologies used in these ratings were Government-related Issuers published in May 2025. EDEMSA's b2 BCA is four notches below the scorecard-indicated outcome of Ba1, reflecting Moody's expectations that leverage metrics will weaken after the planned notes issuance, as well as the credit links with the Province of Mendoza and the Government of Argentina because of the highly regulated nature of its business and its exposure to domestic revenues. EDEMSA's b2 BCA is currently capped at the Government of Argentina foreign currency country ceiling of B2, and one-notch above the Province of Mendoza issuer rating of B3. EDEMSA: S&P Rates $300MM Sr. Unsecured Notes Due 2032 'B-' ---------------------------------------------------------- S&P Global Ratings assigned its 'B-' issue rating to Empresa Distribuidora de Electricidad de Mendoza S.A.'s (Edemsa) proposed seven-year $300 million senior unsecured notes due 2032. On May 20, 2026, the company launched a tender offering for its $150 million senior unsecured notes; this tender is subject to the closing of the new notes offering. The tender includes a market premium and a provision stating that if more than 50% of the aggregate outstanding amount of the current notes is tendered, the covenants of the new notes will apply to all existing noteholders, regardless of whether they participate in the tender. The new notes will feature improved conditions for Edemsa, including eased covenants, specifically lower leverage restrictions, and a fixed rate compared to the previous step-up coupon (that ranged from 9.75% to 11.75%). The issuance will have a seven-year tenor and include a soft amortization profile over the final three years. Edemsa will use the proceeds to refinance the existing $150 million senior unsecured notes due 2031, to fund capital expenditures, and for general corporate purposes. S&P said, "We anticipate that the proposed issuance will increase the company's debt by approximately $150 million; however, it also will extend the maturity of Edemsa's capital structure and reduce interest costs. Furthermore, we do not expect the issuance to affect our view of Edemsa's financial risk because the local currency notes that matured in April 2026 totaled almost $70 million, providing the company with capacity for additional debt under the current rating threshold." =========== B R A Z I L =========== AZUL SA: Wants Creditors Blocked in Brazil With Ch. 11 Plan ----------------------------------------------------------- Emlyn Cameron at law360.com reports that reorganized debtor airline Azul SA asked a New York bankruptcy judge to shut down collection efforts in Brazil by two of its creditors, saying their claims were discharged under the Chapter 11 plan approved last year. About Azul S.A. Headquartered in Barueri near the City of Sao Paulo, Brazil, Azul S.A. is a Brazilian airline founded by David Neeleman in 2008.Â The company is the largest airline in Brazil by number of cities covered and departures, serving more than 160 destinations with an operating fleet of 168 aircraft and operating more than 900 flights daily. Azul S.A. and affiliates sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 25-11176) on May 28, 2025, listing up to $10 billion in both assets and liabilities. Judge Sean H. Lane oversees the case. The Debtors tapped Davis Polk & Wardwell LLP and Togut, Segal & Segal LLP as counsel. On June 13, 2025, the United States Trustee for Region 2 appointed the Committee under section 1102 of the Bankruptcy Code. On December 19, 2025, Judge Lane entered an order confirming the company's overwhelmingly consensual plan of reorganization. On February 20, 2026, Azul completed its restructuring and emerged from bankruptcy. As reported in the Troubled Company Reporter-Latin America on March 17, 2026, Fitch Ratings has assigned Azul a final 'B-' Foreign and Local Currency Issuer Default Ratings (IDRs) and National Long-Term Rating of 'BBB-(bra)'. The Rating Outlook is Stable. Fitch has also assigned Azul Secured Finance LLP's senior secured USD1.375 billion exit finance notes a final 'B-' rating with a Recovery Rating of 'RR4'. These actions follow the completion of Azul's Chapter 11 process. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Dollar Closes May With Key Movements -------------------------------------------------------- Dominican Today reports that the Central Bank of the Dominican Republic reported that, as of the close of business on May 29, 2026, the official exchange rate for buying the US dollar was RD$57.83 per unit, while the selling rate was RD$58.70. These figures, which will serve as a reference until June 1, reflect the weighted average of transactions carried out in the spot market, including cash, transfers, and checks, but excluding financial derivatives transactions, according to Dominican Today. For the Dominican economy, these variations have direct effects on import costs, fuel prices, and household financial planning, the report notes. The Central Bank reiterated that, according to the Monetary Board's resolution of August 14, 2003, the spot market purchase rate is used for the daily revaluation of assets and liabilities in foreign currency, the report relays. This means that companies and financial institutions adjust their balance sheets based on this reference rate, which influences the stability of the economic system, the report discloses. For consumers, a stronger dollar can translate into higher costs for imported products, from food to technology, while for those who receive remittances, it represents a benefit, since each dollar sent from abroad buys more Dominican pesos, the report notes. The end of May confirms that the dollar remains a barometer of the national and global economy. Its behavior directly affects citizens’ finances and their investment and consumption decisions, making it crucial to closely monitor its evolution to anticipate challenges in the second half of the year, 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. ============= J A M A I C A ============= JAMAICA: Producer Prices Rise in April for Mining & Manufacturing ----------------------------------------------------------------- RJR News reports that the Statistical Institute of Jamaica (STATIN) says producer prices increased in both the mining and quarrying and manufacturing industries in April this year. According to STATIN, the producer price index for the mining and quarrying industry rose 0.6 per cent during the month, the report notes. The increase was mainly due to a 0.7 per cent rise in the index for bauxite mining and alumina processing, the report relays. Meanwhile, the producer price index for the manufacturing industry increased by 2.6 per cent in April, the report notes. STATIN says that movement was largely driven by increases in the major groups, Food, Beverages and Tobacco, as well as Refined Petroleum Products, according to RJR News. The index for Refined Petroleum Products recorded the sharpest monthly increase, climbing 11.7 per cent, the report says. 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: Push on for Greater Digital Inclusion in Finc'l. Services ------------------------------------------------------------------ RJR News reports that as Jamaica pushes for greater digital inclusion, stakeholders say more needs to be done to ensure small businesses and underserved communities are not left behind. This call follows the release of a new MasterCard study on the state of digitalization and financial inclusion in Jamaica, which found that, while the country has a strong foundation for digital payments, significant barriers to merchant acceptance remain, according to RJR News. Country Manager of Mastercard, Dalton Falls says the study reveals that only eight per cent of small merchants have point-of-sale systems in Jamaica, the report notes. "It requires three key focus. On one hand, we need to make sure that we're bringing low-cost acceptance solutions to the market, and this is where, for example, technologies such as tap-on-phone plays a significant role. It also requires digital onboarding. So again, the technology does exist. So it's important, for example, that as you think about how do we drive financial inclusion, how do you make that small merchants? How do you make it easy for him to get solutions like these?" The report relays that he explained that this is "a highly regulated space, so it means that you have to have strong KYCs, but the technology now exists to drive that digital onboarding where you capture the KYC information. The technology also exists that allows you to control and monitor the fraud risk that comes with it, for example. And then of course, contactless plays a significant role there as well." The study was conducted in February of this year. 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 ===================== CONSEJO DE TITULARES: D. Torres-Cancel Named Subchapter V Trustee ----------------------------------------------------------------- The U.S. Trustee for Region 21 appointed Diana Torres-Cancel as Subchapter V trustee for Consejo de Titulares del Condominio Touchvision Plaza. Ms. Torres-Cancel will be paid an hourly fee of $150 for her services as Subchapter V trustee and will be reimbursed for work related expenses incurred. A retainer of $2,000 is requested. Ms. Torres-Cancel declared that she is a disinterested person according to Section 101(14) of the Bankruptcy Code. About Consejo de Titulares del Condominio Consejo de Titulares del Condominio Touchvision Plaza sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Puerto Rico Case No. 26-02205) on May 14, 2026, with $0 to $50,000 in assets and $100,001 to $500,000 in liabilities. Nelson Robles Diaz, Esq. at Nelson Robles Diaz Law Offices Psc represents the Debtor as bankruptcy counsel. PANADERIA RICA: Hires Accounting Services Group as Accountant ------------------------------------------------------------- Panaderia Rica Dona Inc seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Suzette Morera of Accounting Services Group as accountant. The firm will provide these services: a. provide assistance to the Debtor in preparing the Monthly Reports of Operation. b. prepare the necessary financial statements. c. assist the Debtor in preparing the cash flow projections and or any other projection needed for the Disclosure statements; d. assist debtor in any/ all financial and accounting pertaining to, or in connection with the administration of the estate; e. assist debtor in the preparation and filing of federal, state, and municipal tax returns; f. assist debtor in any other assignment that might be properly delegated. g. assist the Debtor in general accounting services, tax returns preparations and making deposits for taxes. The firm will be paid at these rates: Accounting Services $500 per month Payroll preparation/ Accounts payable processing, and bank account management services $400 per week Preparation of reports $75 per hour Ms. Morera disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached at: Suzette Morera Accounting Services Group PO Box 8892 Carolina, PR 00988-8892 Tel: (787) 791-5641 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) 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 the 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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