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260604.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 Thursday, June 4, 2026, Vol. 27, No. 111 Headlines A R G E N T I N A AEROLINEAS ARGENTINAS: Cuts World Cup Flights on Fuel Costs D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Central Bank Keeps Interest Rate at 5.25%/Yr J A M A I C A FOSRICH: Incurs Significant First-Quarter Loss JAMAICA: Oil Prices Up More Than Four Per Cent Higher on June 1 M E X I C O PETROLEOS MEXICANOS: Moody's Affirms 'B1' CFR, Outlook Stable P U E R T O R I C O RECOLETA LLC: Seeks to Hire JPC Law Office as Bankruptcy Counsel SPANISH BROADCASTING: Hires Kroll as Claims and Noticing Agent T R I N I D A D A N D T O B A G O TRINIDAD & TOBAGO: Engages Exporters to Double Forex Earnings - - - - - ================= A R G E N T I N A ================= AEROLINEAS ARGENTINAS: Cuts World Cup Flights on Fuel Costs ----------------------------------------------------------- David Feliba at Bloomberg News reports that Argentina's state-owned airline cancelled special flights for the World Cup from three provincial cities to Miami for fans of the reigning champions amid rising fuel costs stemming from the war in Iran and lower demand globally than initially expected. Aerolineas Argentinas SA will no longer operate special flights from the cities of Cordoba, Rosario and Tucuman — which usually don't have direct service to the United States – that had been scheduled for June and July around the 2026 FIFA World Cup, according to Bloomberg News. The services were originally intended to facilitate travel for fans from Argentina's interior seeking to attend the tournament, Bloomberg News relays. As fans worldwide balk at high ticket prices, the canceled flights are notable beyond the global drop in demand since this World Cup will very likely be the last for superstar Lionel Messi, Bloomberg News discloses. Geographically, it's also significantly easier to travel to the US than the last tournament in Qatar, which was flooded with Argentines as Messi led the national squad to a title, Bloomberg News notes. Aerolíneas, as it's known locally, confirmed it scrapped those routes and will instead concentrate operations through Buenos Aires, Bloomberg News says. Officials at the firm said the decision was driven by "strong and sustained increases" in fuel prices which "substantially altered the projected profitability of services" from cities in Argentina's interior, Bloomberg News relays. The carrier said it will focus on expanding connectivity through Ezeiza international airport in the capital, including additional services during key World Cup dates, Bloomberg News notes. Aerolineas currently operates two daily flights between Buenos Aires and Miami and also offers special flights to Dallas and Kansas City, where Argentina is scheduled to play its opening matches of the tournament, Bloomberg News adds. Headquartered in the Torre Bouchard, located in San Nicolas, Buenos Aires, Aerolineas Argentinas, formerly Aerolineas Argentinas S.A., is Argentina's largest domestic and international airline. It is the national airline and carries around 70% of Argentina's domestic traffic and 40% of international flights from Ministro Pistarini International Airport, which is located in Ezeiza, Buenos Aires. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Central Bank Keeps Interest Rate at 5.25%/Yr ---------------------------------------------------------------- Dominican Today reports that the Central Bank of the Dominican Republic (BCRD), in its monetary policy meeting of May 2026, decided to keep its reference interest rate unchanged at 5.25% per annum, as well as the permanent liquidity expansion facility ( 1-day Repos) at 5.75% and the remunerated deposit rate (Overnight) at 4.50%. The decision was based on the gradual recovery of the Dominican economy and the fact that recent inflationary pressures are a response to the supply shock caused by higher international oil prices, according to Dominican Today. The agency emphasized that medium-term inflation expectations remain anchored to the target of 4.0% ± 1.0%, the report notes. Internationally, the US economy maintained year-on-year growth of 2.6% in the first quarter, with unemployment hovering around full employment, the report relays. However, inflation rose to 3.8% in April due to higher energy prices, the report says. In the Eurozone, economic activity slowed, and inflation stood at 3.0%, while in Latin America, average growth remained at 2.0%, with central banks opting to keep interest rates stable, the report notes. Today Nationally, year-on-year inflation reached 5.11% in April, impacted by fuel price adjustments, although core inflation remained within the target range at 4.87%, the report discloses. The Government has implemented partial fuel subsidies and social assistance programs to mitigate the impact of energy prices, the report says. The Central Bank of the Dominican Republic's forecasting system projects that inflation will return to the target range in the fourth quarter of 2026, as the effects of the oil shock dissipate, the report relays. Meanwhile, the economy is showing signs of dynamism: the monthly economic activity indicator (IMAE) grew 4.0% in January-April, driven by construction, free trade zones, and tourism, the report notes. The Dominican peso has appreciated by 8.0% as of the end of May, and international reserves have reached US$15.9 billion, equivalent to six months of imports, exceeding the IMF’s recommended metrics, the report discloses. The Central Bank reaffirmed that the Dominican economy has solid fundamentals and a stable financial system, the report relays. It reiterated its commitment to act promptly to meet the inflation target and preserve macroeconomic stability in an international environment marked by the crisis in the Middle East, 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 ============= FOSRICH: Incurs Significant First-Quarter Loss ---------------------------------------------- RJR News reports that electrical and solar energy company, FosRich, is reporting a more significant first-quarter loss as revenues declined sharply during the period ending March 31. The company posted a net loss of $178.8 million, more than 160 per cent higher than the corresponding period last year, according to RJR News. Revenue fell by more than 50 per cent to $415.2 million dollars, the report notes. FosRich says its turnover continues to be affected by the significant decline in global solar panel prices, the report relays. The company says uncertainty in the United States market has also had an impact on operations, although global suppliers have offered more favourable credit terms, the report says. FosRich says it is pursuing several turnaround initiatives to return the company to profitability, the report notes. These include a planned sale and lease-back of its real estate properties to raise cash and reduce debt, the opening of a new superstore on Molynes Road by the end of the third quarter, inventory reduction measures and tighter control of administrative expenses, the report adds. JAMAICA: Oil Prices Up More Than Four Per Cent Higher on June 1 --------------------------------------------------------------- RJR News reports that oil prices in Jamaica closed more than four per cent higher on Monday, as fresh tensions involving Iran, the United States, Israel and Hezbollah reignited fears of disruption to key global energy routes. Brent crude futures settled at US$94.98 a barrel, up 4.2%, according to RJR News. US crude futures finished at US$92.16 a barrel, up 5.5%, the report notes. Both benchmarks had climbed by more than six per cent earlier in the session before giving back part of their gains, the report relays. The rally followed a report by Iran's Tasnim news agency that Tehran had stopped indirect message exchanges with Washington, the report discloses. 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. =========== M E X I C O =========== PETROLEOS MEXICANOS: Moody's Affirms 'B1' CFR, Outlook Stable ------------------------------------------------------------- Moody's Ratings affirmed Petroleos Mexicanos' (PEMEX) Baseline Credit Assessment (BCA) of ca, which reflects its standalone credit strength. At the same time, Moody's affirmed at B1 PEMEX's Corporate Family Rating, backed senior unsecured ratings on the company's existing notes, as well as the backed senior unsecured ratings of Pemex Project Funding Master Trust. Moody's also affirmed both entities' (P)B1 backed senior unsecured MTN program. The outlook remains stable. "The affirmation of PEMEX's ratings reflects Moody's expectations that the Government of Mexico will continue to provide very high and timely support to the company, as clearly demonstrated in 2025 and embedded in Moody's forward-looking assumptions under the current administration," said Roxana Muñoz, Vice President – Senior Credit Officer at Moody's Ratings. "However, PEMEX's credit profile remains constrained by persistent operational challenges, which continue to result in negative free cash flow and significant funding needs." RATINGS RATIONALE The rating action follows the downgrade of the Government of Mexico's rating to Baa3 stable from Baa2 negative. Despite the lower sovereign rating, PEMEX's B1 ratings remain supported by Moody's unchanged assumptions of very high government support and very high default correlation, which continue to drive substantial uplift from the company's ca BCA. Given the strong linkages between PEMEX and the Government of Mexico, governance risk remains a relevant consideration in the rating action. The ratings reflect Moody's expectations of continued strong sovereign support, underpinned by PEMEX's strategic importance and the significant financial measures implemented in 2025. Support embedded in the 2026 budget, alongside the potential for additional funding through development banks and policy measures such as the pension reform—which caps high-end benefits across public entities, including PEMEX—reinforces the government's commitment to the company's liquidity and debt servicing capacity. The affirmation of the ca BCA reflects PEMEX's weak standalone credit profile, characterized by persistent negative free cash flow, high leverage and limited internal capacity to fund capital expenditures and debt obligations. This is further evidenced by substantial funding needs, averaging approximately $14.9 billion annually over the 2026–2028 period. While upstream production has recently stabilized, this does not signal a structural reversal of decline, and current development schemes are unlikely to materially increase output. At the same time, downstream operations remain inefficient, while a greater focus on domestic refining reduces hydrocarbon export revenues and limits upside from higher oil prices. In addition, fuel price caps and lower capex execution continue to pressure margins and production sustainability, constraining financial flexibility. Liquidity remains weak and highly dependent on government support and continued access to refinancing, amid significant funding requirements, including debt maturities, supplier obligations and capital expenditures. As of March 31, 2026, PEMEX had approximately $8 billion in cash and $5.7 billion of availability under committed revolving credit facilities to address near-term obligations. Absent a structural improvement in operating performance, Moody's expects PEMEX to continue generating negative free cash flow over the next 12–18 months, and to remain reliant on extraordinary support to meet its financial obligations. The stable outlook reflects Moody's expectations that PEMEX's business strategy and financial profile will remain broadly unchanged over the next 6–12 months, and that government support will continue to be sufficient to meet the company's liquidity needs and debt obligations. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of PEMEX's ratings could arise if the company implements a change in strategy and a sustainable operating framework that result in a meaningful improvement in operating performance and cash flow generation, including the ability to internally fund capital investment, stabilize or increase production, and reduce reliance on external support. Downward pressure on the ratings could emerge from a reduction in the government's willingness or ability to provide timely support or a further downgrade of the Government of Mexico's rating. A further deterioration in PEMEX's operating performance, including declining production or rising costs or an increase in debt levels or liquidity pressures could also trigger downward pressure for PEMEX's ratings. The methodologies used in these ratings were Government-related Issuers published in May 2025. The differential between PEMEX's assigned ratings and the scorecard outcome reflects an adjustment within the Government Policy Factor, which captures the impact of the sovereign's policy framework on the company's credit profile. In PEMEX's case, this adjustment reflects the company's large and persistent cash flow deficits, as well as the government-directed strategy that constrains its financial flexibility and prioritizes policy objectives over credit considerations. In addition, the difference between the scorecard outcome and the assigned ratings reflects that both the BCA and the corporate family rating incorporate very high liquidity risk and Moody's expectations of sustained negative free cash flow over the forecast period. ===================== P U E R T O R I C O ===================== RECOLETA LLC: Seeks to Hire JPC Law Office as Bankruptcy Counsel ---------------------------------------------------------------- Recoleta LLC seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ JPC Law Office as counsel. The firm's services include: (a) advise the Debtor with respect to its duties, powers and responsibilities in this case under the laws of the United States and Puerto Rico in which it conducts its operations, do business, or is involved in litigation; (b) advise the Debtor in connection with a determination whether a reorganization is feasible and, if not, help debtor in the orderly liquidation of its assets; (c) assist the Debtor with respect to negotiations with creditors for the purpose of arranging the orderly liquidation of assets and/or for proposing a viable plan of reorganization; (d) prepare on behalf of the Debtor necessary legal papers or documents; (e) appear before the Bankruptcy Court, or any court in which the Debtor asserts a claim interest or defense directly or indirectly related to this bankruptcy case; (f) perform such other legal services for the Debtor as may be required in these proceedings or in connection with the operation of/and involvement with its business. Jose Prieto Carballo, Esq., the primary attorney in this representation, will be paid at his hourly rate of $200, plus expenses. The firm received a retainer of $8,000 plus a filing fee of $1,738. Mr. Prieto Carballo 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 through: Jose M. Prieto Carballo, Esq. JPC Law Office P.O. Box 363565 San Juan, PR 00936 Telephone: (787) 607-2066 Email: jpc@jpclawpr.com About Recoleta LLC Recoleta LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 26-00749) on Feb. 25, 2026, listing under $1 million in both assets and liabilities. Judge Mildred Caban Flores handles the case. Jose M. Prieto Carballo, Esq., at JPC Law Office serves as the Debtor's counsel. SPANISH BROADCASTING: Hires Kroll as Claims and Noticing Agent -------------------------------------------------------------- Spanish Broadcasting System, Inc. and its affiliates seek approval from the U.S. Bankruptcy Court for the District of Delaware to employ Kroll Restructuring Administration LLC as claims and noticing agent. Kroll will oversee the distribution of notices and will assist in the maintenance, processing, and docketing of proofs of claim filed in the Chapter 11 cases of the Debtors. Prior to the Petition Date, the Debtors provided Kroll an advance payment in the amount of $50,000. Benjamin Steele, a managing director at Kroll, 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 through: Benjamin J. Steele Kroll Restructuring Administration LLC 1 World Trade Center, 31st Floor New York, NY 10007 About Spanish Broadcasting System Spanish Broadcasting System Inc. operates Spanish-language radio stations and media properties serving Hispanic communities across the U.S. and Puerto Rico. The company's business includes radio broadcasting, digital advertising, music programming and live entertainment initiatives. Through its portfolio of stations and online brands, the company delivers music, news, talk and cultural programming tailored to Latino listeners. Spanish Broadcasting System sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 26-10708) on May 11, 2026. In its petition, the Debtor reports estimated assets and liabilities between $100 million and $500 million each. Honorable Bankruptcy Judge Brendan Linehan Shannon handles the case. The Debtor is represented by Robert J. Dehney, Esq. of Morris, Nichols, Arsht & Tunnell. Fried, Frank, Harris, Shriver & Jacobson LLP was retained as general bankruptcy counsel, while GLC Advisors & Company is serving as investment banker. Financial advisory and chief restructuring officer duties are being handled by Riveron Management Services LLC and Jesse York, and Kroll Restructuring Administration LLC is serving as claims agent. ===================================== T R I N I D A D A N D T O B A G O ===================================== TRINIDAD & TOBAGO: Engages Exporters to Double Forex Earnings ------------------------------------------------------------- Andrea Perez-Sobers at Trinidad and Tobago Express reports that Minister of Trade, Investment and Tourism Satyakama Maharaj says the Government is targeting an increase in exports from US$2 billion to US$4 billion as part of efforts to strengthen the non-energy sector and drive economic growth. Speaking at the Ministry's "Driving Economic Growth Beyond Energy – One Year Report" at the Hyatt Regency, Maharaj said the Ministry's role is to create the environment for economic transformation, while the private sector remains the engine of growth, according to Trinidad and Tobago Express. He said one of the Ministry's first observations after taking office was that the private sector operated through fragmented organizations without a unified national structure for strategic engagement, the report notes. That led to efforts to encourage the formation of a national private sector body capable of coordinating non-energy growth initiatives, the report relates. Maharaj pointed to the establishment of the Private Sector Organisation of Trinidad and Tobago Limited (PSOTT) in December 2025, describing it as a major step toward stronger public-private collaboration, the report says. He said the Ministry also identified its core priorities as export growth and foreign exchange generation, investment promotion, tourism development, national quality improvement, and regulatory reform, the report discloses. Maharaj said the Ministry has spent the past year working to improve coordination between agencies and remove longstanding obstacles affecting investment and ease of doing business, the report says. He noted that weekly strategic review meetings involving Ministry executives and PSOTT representatives have strengthened accountability and execution across several areas, the report relays. Speaking with reporters after the event, Maharaj was asked how the Government planned to move exports from US$2 billion to US$4 billion, the report relates. He responded that the Ministry has already identified the country’s top 50 exporters and has been directly engaging them to determine what support they need to expand, the report notes. "We didn't wait for them to come to us. We went to them and asked them, what can we do for you to expand?" Maharaj said, the report says. He described existing exporters as the "lowest hanging fruit" because they already have the infrastructure in place to scale operations quickly, while the Ministry is also targeting new exporters, the report discloses. Asked about tourism growth amid uncertainty in the oil and gas sector, Maharaj said the focus is on attracting high-value visitors, particularly the yachting market, the report says. He said processing times for yacht visitors entering T&T have been reduced from an average of four hours to about 15 minutes following upgrades to port health and immigration facilities, the report relays. Maharaj also confirmed that the Government is facilitating several hotel developments, including the Hilton-branded hotel project in San Fernando, the report notes. When questioned about concerns surrounding crime and its impact on tourism, Maharaj said the issue remains a priority for the Government, the report discloses. "The Government, and we have two very competent ministers that's responsible for that under the leadership of the Prime Minister," Maharaj stated, the report relates. The minister added that improvements are already being seen, although more work remains ahead, the report notes. "We are seeing major improvements, but we still have a long way to go. And we know that, and we're working very hard." ********* 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 * * *