260701.mbx

260701.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, July 1, 2026, Vol. 27, No. 130 Headlines B E R M U D A TRANSOCEAN INT'L: Moody's Raises CFR to B2, On Review for Upgrade B R A Z I L BRASKEM SA: S&P Lowers Issuer Credit Rating to 'D' SANTA CATARINA: S&P Affirms 'BB' ICR, Outlook Remains Stable C O L O M B I A AVIANCA MIDCO 2: Moody's Rates New Senior Secured Global Notes 'B1' E L S A L V A D O R EL SALVADOR: IDB OKs $100MM Financing for Higher Education J A M A I C A JAMAICA: BOJ Pumps Another US$20-Mil. Into Forex Market Last Week JAMAICA: Sharp Fall in Export Earnings for Jan-March, STATIN Says M E X I C O LEISURE INVESTMENTS: Ex-CEO Seeks Dismissal of U.S. Bankr. Case P A R A G U A Y PARAGUAY: Continues to Show Remarkable Resilience, IMF Says P U E R T O R I C O NBG MACHINE: Unsecured Creditors Out of Money in Sale Plan T R I N I D A D A N D T O B A G O CARIBBEAN CREAM: Incurs J$125.8MM Loss During FY Ending Feb. 2026 - - - - - ============= B E R M U D A ============= TRANSOCEAN INT'L: Moody's Raises CFR to B2, On Review for Upgrade ----------------------------------------------------------------- Moody's Ratings upgraded Transocean International Limited's (Transocean) Corporate Family Rating to B2 from B3, Probability of Default Rating to B2-PD from B3-PD, and its senior unsecured notes rating to Caa1 from Caa2. Moody's also upgraded backed senior unsecured ratings to B2 from B3 and to B3 from Caa1. The backed senior secured notes are upgraded to Ba3 from B1 and senior secured revolving credit facility to Ba2 from Ba3. The Speculative Grade Liquidity (SGL) rating was changed to SGL-2 from SGL-3. Transocean Aquila Limited's backed senior secured notes is also upgraded to Ba3 from B1. Transocean's ratings remain on review for further upgrade. The upgrade reflects Transocean's material reduction in debt, improved interest coverage and liquidity, and a solid contract backlog extending through 2027. The rating remains on review for upgrade, reflecting expected leverage improvement following the acquisition of Valaris Limited (Valaris, B1 rating under review for downgrade). In February 2026, Transocean entered into an agreement to acquire Valaris in an all-stock transaction valued at $6.2 billion, including Valaris's debt outstanding as of September 30, 2025, net of cash. The transaction is expected to close in the second half of 2026, subject to regulatory and shareholder approvals, and is expected to accelerate Transocean's deleveraging. Pro forma debt/EBITDA is expected to be in the 3.0x–3.5x range at closing, improving by about 0.5x when considering combined cash balances. Further deleveraging is supported by the combined entity's sizable near-term debt maturities, expected cash balance at closing, and anticipated free cash flow generation through 2027. The combined entity's leading scale as the largest offshore contract driller globally further supports the potential for an upgrade. RATINGS RATIONALE Transocean's B2 CFR is supported by meaningful deleveraging achieved over the past 18 months. Based on debt reduction achieved and what Moody's expects to be retired by the end of 2026, about $2 billion of debt will be reduced bringing leverage (including Moody's standard adjustments) to the low-4.0x range by year-end 2026 from the low-6.0x range at year-end 2024. Deleveraging is expected to reduce interest expense by about $200 million, increasing interest coverage to the low-3.0x range. Moody's expects the company to continue to reduce debt, supported by strengthening offshore market fundamentals, while simplifying its balance sheet. Transocean's high-quality deepwater drilling fleet provides a competitive advantage in the cyclical offshore industry, supported by a substantial $7.1 billion revenue backlog as of May 04, 2026, and healthy dayrates in the mid-$400,000 range. Post-acquisition of Valaris, the combined entity is expected to have about $12 billion in backlog and will be the largest offshore contract driller globally. Transocean's ratings are constrained by its still elevated financial leverage, weak interest coverage relative to higher rated peers, and complex capital structure. As an offshore driller, the company also faces recontracting risk beyond 2027, as well as the cyclical nature of offshore operations and indirect exposure to oil and gas price volatility. Transocean should maintain good liquidity, as reflected in its SGL-2 rating. As of March 31, 2026, the company had $330 million of unrestricted cash, supported by an undrawn $510 million revolving credit facility maturing in June 2028. Moody's expects Transocean to generate about $600 million of free cash flow in 2026 after funding modest capital expenditures and to use it to repay debt. The credit agreement includes several financial covenants, including minimum liquidity of $200 million, maximum debt to capitalization of 60%, a minimum guarantee coverage ratio of 3.0x, and a minimum collateral coverage ratio of 2.1x. The agreement also includes a springing maturity feature triggered if at least $325 million of debt comes due within 91 days and available cash falls below $250 million. Moody's expects the company to remain in compliance with its covenants. Transocean has about $600 million of maturities through 2027, including approximately $200 million of scheduled amortization, which Moody's expects it to repay with free cash flow and existing liquidity. Moody's ongoing ratings review will focus on the resulting capital structure and relative positioning of the combined entity's debt, Moody's assessments of the company's financial policy, its cost structure, and Moody's expectations for the offshore rig demand in 2027 and 2028. Moody's expects to conclude the review after the transaction closes, which is expected in the second half of 2026. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS On a standalone basis, with no impact attributed to the pending acquisition of Valaris, Transocean's ratings could be upgraded if EBITDA/interest coverage rises above 3.0x on a sustained basis, debt/EBITDA approaches 3.0x, and the company simplifies its capital structure. A downgrade is possible if Transocean's liquidity weakens significantly, interest coverage falls below 2.0x, debt/EBITDA rises above 5.0x, or revenue backlog declines materially. Transocean International Limited is a wholly-owned subsidiary of Transocean Ltd., a leading international offshore drilling contractor operating in deepwater, ultra-deepwater and harsh environment basins around the world. The principal methodology used in these ratings was Oilfield Services published in October 2025. Transocean's B2 rating is three notches below the scorecard-indicated outcome of Ba2. The assigned rating reflects the company's high debt levels and low interest coverage, which is given a higher priority than its fleet scale and business profile. =========== B R A Z I L =========== BRASKEM SA: S&P Lowers Issuer Credit Rating to 'D' -------------------------------------------------- S&P Global Ratings lowered its global scale issuer credit rating on Braskem S.A. to 'D' from 'CCC-'. S&P also lowered its issue-level ratings on the company's senior unsecured notes to 'D' from 'CCC-' and on its subordinated notes to 'D' from 'C'. At the same time, S&P withdrew the recovery ratings on the senior unsecured notes. On June 26, 2026, Braskem was granted injunction relief by the Second Bankruptcy and Judicial Reorganization Court of Sao Paulo, suspending for 60 days the of actions by creditors participating in its mediation proceedings, including interest and principal payments. The 'D' ratings reflect S&P's assessment that the injunction relief granted to the company is equivalent to a standstill, as it allows Braskem to cease payment, for the next 60 days, of debt obligations from creditors participating in its mediation proceedings. Braskem's debt service (principal amortization and interest payments) totals US$549 million for this July and US$878 million for the third quarter of 2026, while the estimated cash position as of June is around US$800 million. In S&P's view, Braskem will likely use this 60-day window to advance discussions regarding a possible out-of-court restructuring plan with creditors. SANTA CATARINA: S&P Affirms 'BB' ICR, Outlook Remains Stable ------------------------------------------------------------ On June 26, 2026, S&P Global Ratings affirmed its 'BB' global scale issuer credit rating on the Brazilian state of Santa Catarina. The outlook remains stable. Outlook The stable outlook reflects S&P's expectation that Santa Catarina will maintain balanced fiscal results as it manages public service and infrastructure spending alongside the pace of revenue growth. Its commitment to such spending initiatives reflects a strategic priority to support private investment and satisfy expenditure needs partly resulting from migration. Cash buffers should provide policy room to maneuver amid the expected slowdown in Brazil's economy in the context of rigidities in the fiscal framework for states. Downside scenario S&P said, "We could lower the ratings on Santa Catarina in the next 12 months amid weaker budgetary execution--be it associated with higher spending or weaker-than-expected revenue growth--that erodes cash buffers. We could also lower the ratings on the state of Santa Catarina if we were to lower the sovereign rating." Upside scenario S&P siad, "A sustained track record of prudent fiscal and liquidity policies, such as establishing structural buffers against economic downturns, could strengthen Santa Catarina's financial flexibility and stand-alone credit profile (SACP). However, Brazilian local and regional governments (LRGs) do not meet the conditions for us to rate them above the sovereign. As a result, we could only upgrade Santa Catarina in the next 12 months if we raise our sovereign rating on Brazil as well." Rationale The 'BB' ratings reflect Santa Catarina's commitment to sound financial management, solid budgetary outcomes, and liquidity buffers. Broad political consensus across multiple administrations supports pro-business policies, bolstering local economic activity and expanding the state's revenue base. While the state is increasing infrastructure spending to catalyze further investment, it has successfully managed expenditures and significantly reduced its debt burden over the last five years. Liquidity buffers are vital for Brazilian subnationals to mitigate budgetary vulnerabilities--namely rigidities inherent in the country's highly regulated fiscal framework--which become more challenging to manage in times of economic slowdown. S&P believes that Santa Catarina is well positioned to counterbalance these structural and macroeconomic headwinds through a strong socioeconomic profile, advanced infrastructure, and accumulated cash reserves. Comparably better socioeconomic profile than Brazilian peers and long-term policies to foster investment support the state's economic growth S&P said, "We expect growth in Brazil to slow to 1.8% in 2026 from 2.3% last year amid constraints in consumption from high interest rates and household debt. We forecast a similar trend for the State of Santa Catarina." That said, Santa Catarina's performance could have some upside potential, as evidenced by the recent past. Population growth above the national average and a strong labor market have supported the state's economic growth. Santa Catarina benefits from better infrastructure and overall socioeconomic indicators than its local peers. S&P expects Santa Catarina's GDP per capita to reach US$15,000, above that of Brazil at US$12,300. Over the last few years, Santa Catarina has prioritized consistent policies across administrations that maintain an investor-friendly environment. These efforts include higher-quality infrastructure, better public safety, and labor incentives, while maintaining a stable tax burden. S&P said, "In our view, this strategy has bolstered and diversified the state's economy. We expect broad policy continuity following elections for governor scheduled for October of this year." Furthermore, the state's financial management has taken proactive steps to mitigate the economic impact from climate-related shocks, such as floods and extratropical cyclones. Infrastructure investments include modernizing its dam and dike systems. The state recently convened a crisis council--comprising the governor, the secretary of civil defense, and representatives from relevant agencies, including local security forces--in anticipation of a potentially intense and damaging El Niño phenomenon later this year. The Brazilian fiscal framework establishes heavy mandatory spending rules for states and limits their financing options. In S&P's view, these factors could challenge states' capacity to implement sustainable fiscal policies, despite predictability and oversight of the system. The complexities of the myriad of regulations embedded in the fiscal federal system have limited the state's capacity to balance revenues and expenses. In the past, this led to pressures on Santa Catarina's liquidity despite its generally proactive policy stance. However, we highlight that strong revenue performance following the pandemic, coupled with Santa Catarina's efforts to curb operating expenditures (including pension reform), have recently improved the state's fiscal fundamentals. Balanced fiscal results will underpin robust liquidity buffers S&P expects fiscal results over the next several years to be broadly in line with those of 2025, with operating surpluses averaging 11.6% of operating revenue and a slight average surplus after capex in 2026-2028. Revenues grew by a robust 30% in real terms over the past five years, driven by strong state economic performance and tax debts recovery programs. These programs contributed the equivalent of 2.9% of operating revenue in 2024. At the same time, the state maintained a policy anchor of avoiding tax increases. S&P believes that robust revenue performance should broadly counterbalance recently granted fiscal benefits and the diesel import subsidies implemented in response to the Middle East war in coordination with the federal government. At roughly 20% of Santa Catarina's operating revenue, federal government transfers are lower compared with other local governments in Brazil. That said, they have supported overall revenue growth over the past five years, and S&P expects them to increase in line with nominal economic growth. S&P's expectation of balanced fiscal results is predicated on the assumption that the state will continue to focus on improving and expanding its public services provision, in a context of migration that has led to higher population growth vis-à-vis the average for Brazil. At the same time, infrastructure investment is a key pillar in the state's strategic vision for promoting private investment and economic diversification. Capex is mostly focused on physical connectivity, through roadworks, tunnels, and ports, and there is also a recent initiative to increase internet services throughout the state. S&P expects capex to remain at 12% of total spending, financed mostly by own source revenues but complemented by loans from multilateral lending institutions as well. S&P expects somewhat higher borrowings compared with the recent past, based on expected disbursements from multilateral and local banks for infrastructure investment, namely BNDES, IBRD, and IADB. The state also has a contracted loan with Banco do Brasil for Brazilian real (R$) 2.6 billion in 2025 available for two years that is not linked to a specific project, but can be used for capex. S&P expects it to be only partially used, depending on fiscal pressure. It would allow the state to maintain capex levels without compromising liquidity. Still, it expects net borrowing will be negative, leading to a decline in Santa Catarina's debt burden to 40% of operating revenue by 2028 from 44% in 2025. This compares with 105% 10 years ago. Most of the debt is owed to the national government (56%), which is indexed to inflation plus 4% real interest rate. This legacy debt will limit the capacity to further decrease the overall debt burden and increase space for other types of lending. The state opted not to participate in the sovereign program Propag (Programa de Pleno Pagamento de Dívidas dos Estados), aimed at improving financial conditions and reducing the debt burden states owe to the federal government. S&P said, "In our opinion, high cash savings partially counterbalance limited access to borrowing. Cash reserves cover more than 100% of Santa Catarina's debt service over the next two years. That said, in the absence of a target for maintaining cash reserves, we believe the coverage ratio could fluctuate. "In accordance with our relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable." At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Rating Component Scores above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List Ratings Affirmed Santa Catarina (State of) Issuer Credit Rating BB/Stable/-- =============== C O L O M B I A =============== AVIANCA MIDCO 2: Moody's Rates New Senior Secured Global Notes 'B1' ------------------------------------------------------------------- Moody's Ratings has assigned a B1 rating to the proposed backed senior secured global notes of benchmark size to be issued by Avianca MidCo 2 PLC, a fully owned subsidiary of Avianca Group International Limited ("Avianca"). Avianca's B1 corporate family rating and the B1 ratings on the existing backed senior secured notes issued by Avianca Midco 2 PLC remain unchanged. The outlook is stable. The proposed issuance is consistent with Avianca's liability management strategy. Proceeds will be used to fully redeem its 9.000% Senior Secured Notes due 2028 and its Tranche A-1 Senior Notes due 2028, with any remaining funds allocated to general corporate purposes, including the repayment of additional outstanding debt. This move will mitigate refinancing risk by extending maturities, hence improving its debt profile and will be largely debt neutral. Following the refinancing, Avianca's notes will share terms aligned with its existing 2030 Notes, resulting in consistency across its capital structure. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by us to date and assumes that these agreements are legally valid, binding and enforceable. RATINGS RATIONALE The proposed notes will benefit from a first-priority lien on the assets of LifeMiles, which, along with recent appraisal value of the collateral package, result in strong collateral coverage of the rated debt. Recently performed appraisals estimate the collateral value at $6.8 billion, well above the $2.2 billion secured debt as of March 31, 2026. In a liquidation scenario, its value could be lower, given its reliance on assets that are more difficult to value, such as intangibles and LifeMiles' ties with the airline. However, liquidation risk is lower, given Avianca's strong credit profile. Avianca's B1 rating reflects continued operational and financial improvements, robust liquidity, and successful execution of its business strategy, alongside a supportive operating environment in the broader airline sector, particularly in its core markets: Colombia (Government of Colombia, Baa3 stable), Ecuador (Government of Ecuador, Caa1 stable), El Salvador (Government of El Salvador, B3 positive), Costa Rica (Government of Costa Rica, Ba2 stable), and Guatemala (Government of Guatemala, Ba1 stable). The rating also reflects Avianca's leading position in the Latin American passenger airline industry and its favorable cost structure. Conversely, the rating is constrained by competitive pressures that, despite current market rationality, could intensify and strain airfares, as well as the inherent volatility of the airline industry and macroeconomic risks in key Latin American markets. Since emerging from bankruptcy, Avianca has executed its business plan effectively. For the 12 months ended March 31, Moody's-adjusted EBITDA was $1.5 billion with a 25% margin, maintaining leverage at 3.6x since 2025. Since 2025, when the company operated a full year with expanded capacity, load factor has remained at around 83%. Combined with a competitive cost structure from fleet modernization and cost controls, Avianca should sustain strong profitability, despite recent increased fuel price pressures. Moody's projects EBIT margin (Moody's-adjusted) to remain in the 10–15% range with positive cash flow through 2027. The proposed transaction is largely debt-neutral, supporting continued leverage improvement below 3.5x over the next two years. The stable outlook reflects Moody's views that Avianca's financial flexibility will continue to support its business strategy, allowing for further improvements to its credit profile through 2027. The company is likely to maintain adequate financial policies and strong liquidity, with internal sources and cash generation comfortably covering requirements through 2027. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING An upgrade of Avianca's rating would result from a sustained increase in passenger demand, allowing the company to maintain revenue growth and improve credit metrics as planned. Quantitatively, an upgrade would require adjusted leverage (measured by total debt/EBITDA) to remain below 3.5x and interest coverage — measured by (funds from operations [FFO] + interest expense)/interest expense — to remain above 3.5x, both on a sustained basis. The maintenance of an adequate liquidity profile would also be required for an upgrade. The rating could be downgraded if recovery in credit metrics falls behind Moody's expectations, with adjusted leverage remaining above 4.5x and interest coverage (FFO + interest/interest) remaining below 2.5x on a sustained basis. A deterioration in the company's liquidity, or additional shocks to demand or profitability that lead to cash burn could also result in a rating downgrade. The principal methodology used in this rating was Passenger Airlines published in December 2025. ===================== E L S A L V A D O R ===================== EL SALVADOR: IDB OKs $100MM Financing for Higher Education ---------------------------------------------------------- The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved up to $100 million in financing for the Program for Academic and Community Integration of Youth in El Salvador to expand the opportunities for youth from vulnerable communities to continue their education and access jobs. The IDB loan will be supplemented by $4 million in grant funding and $10 million in local counterpart funding, for a total of $114 million for the program. The program will allow more vulnerable Salvadoran youth to pursue a high school and post-high-school education by strengthening their academic, social, and emotional skills; providing scholarships and financial aid; and developing institutional capacity to track educational progress. The initiative will benefit approximately 60,000 young people over five years, including students in the public school system, young women, people with disabilities, and nearly 1,000 returning migrants. The program aims to close educational gaps that limit young people’s access to and completion of higher education, as well as to improve opportunities for formal employment. The financing will expand access to higher education through scholarships and cash transfers, strengthen academic support and career guidance in high school, and enable the implementation of tracking and early warning systems to prevent dropouts. The program will also improve young people’s access to formal employment and support the reintegration of returning youth. This is the first loan under a Conditional Credit Line for Investment Projects (CCLIP) of up to $300 million to help vulnerable youth continue their post-secondary education and transition into formal employment. The operation is part of the IDB's efforts to support human capital development in El Salvador and is aligned with the 2025–2029 Country Strategy. ============= J A M A I C A ============= JAMAICA: BOJ Pumps Another US$20-Mil. Into Forex Market Last Week ----------------------------------------------------------------- RJR News reports the Bank of Jamaica injected a further US$20 million in the foreign exchange market on June 26 in an effort to meet continued demand for foreign currency. The additional intervention came after the central bank sold US$30 million when commercial banks and cambios sought a total US$83 million, leaving an unmet demand of US$53 million, according to RJR News. Among the institutions making the largest purchasers of foreign currency are National Commercial Bank, JMMB Securities and JMMB Bank, the report notes. 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: Sharp Fall in Export Earnings for Jan-March, STATIN Says ----------------------------------------------------------------- RJR News reports Jamaica spent nearly US$1.9 billion on imports during the first quarter of 2026 while earning less than US$400 million from exports. New data from the Statistical Institute of Jamaica - STATIN - show that total imports from January to March were valued at US$1,869.8 billion, according to RJR News. That represents a one-point-three per cent decline from the same period in 2025, the report notes. STATIN noted that the reduction was mainly due to lower spending on consumer goods and fuels & lubricants, which declined by 2.4% and 10% respectively, the report relays. Jamaica's export earnings fell sharply during the review period, with the country earning US$376.6 million from exports for January to March, 2026, down 22.3 per cent, compared with the corresponding period last year, the report says. STATIN says the decline was largely driven by a 48.7 per cent fall in the value of crude materials, excluding fuels, 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. =========== M E X I C O =========== LEISURE INVESTMENTS: Ex-CEO Seeks Dismissal of U.S. Bankr. Case --------------------------------------------------------------- James Nani of Bloomberg Law reports that the former CEO of The Dolphin Company has moved to dismiss its U.S. bankruptcy case after a Mexican court reinstated him to a leadership role at the company's parent entity. The case highlights an escalating cross-border dispute over corporate governance and control. In a filing with the U.S. Bankruptcy Court in Delaware, Eduardo de Martin Albor Villanueva argued that Mexican judicial authorities overturned the resolutions that led to his removal and the initiation of Chapter 11 proceedings. He said he has been reinstated as president of the board of Controladora Dolphin S.A. de C.V. The bankruptcy was filed by U.S. affiliate Leisure Investments Holdings LLC, but Albor contends the filing lacks proper authorization. The court will now weigh whether the Chapter 11 case should remain in place amid the competing international rulings, the report states. About Leisure Investments Holdings Leisure Investments Holdings LLC and affiliates are operating under the name "The Dolphin Company," manage over 30 attractions, including dolphin habitats, marinas, water parks, and adventure parks, located in eight countries across three continents. Their primary operations are based in Mexico, the United States, and the Caribbean, with locations in Jamaica, the Cayman Islands, the Dominican Republic, and St. Kitts. These attractions are home to approximately 2,400 animals from more than 80 species of marine life, including a variety of marine mammals such as dolphins, sea lions, manatees, and seals, as well as birds and reptiles. As of 2023, the marine mammal population at the Debtors' parks includes roughly 295 dolphins, 51 sea lions, 18 manatees, and 18 seals. Leisure Investments Holdings LLC sought relief under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case 25-10606) on March 31, 2025. In its petition, the Debtor reported estimated assets and liabilities between $100 million and $500 million each. Honorable Bankruptcy Judge Laurie Selber Silverstein handles the case. The Debtors tapped Robert S. Brady, Esq., Sean T. Greecher, Esq., Allison S. Mielke, Esq., and Jared W. Kochenash, Esq. as counsels. The Debtors' restructuring advisor is RIVERON MANAGEMENT SERVICES, LLC. The Debtors' Claims & Noticing Agent is KURTZMAN CARSON CONSULTANTS, LLC d/b/a VERITA GLOBAL. =============== P A R A G U A Y =============== PARAGUAY: Continues to Show Remarkable Resilience, IMF Says ----------------------------------------------------------- An International Monetary Fund (IMF) team led by Fabian Valencia conducted discussions with Paraguayan authorities in the context of the 2026 Article IV consultation and engaged with private sector, civil society, and development partners during June 15–26, 2026. IMF says, Paraguay continues to show remarkable resilience. Growth has been robust, supported by a credible inflation-targeting regime with a flexible exchange rate, strong external buffers, and a gradual restoration of fiscal discipline. Sovereign spreads have declined to among the lowest levels in the region, supported by the attainment of investment-grade (IG) rating from two major rating agencies. A wide range of ongoing structural reforms is supporting private investment, job creation, climate resilience, governance, civil service and tax administration efficiency, pension sustainability, capital market development, inclusion and poverty reduction. Alongside these achievements, completing the structural reform agenda, addressing high informality, strengthening public financial management, and completing the fiscal consolidation plan are key policy challenges on the 2026 Article IV consultation's agenda. Outlook and Risks Real GDP growth is projected to remain robust while inflation converges to target in 2026, with balanced risks. Growth is projected at 4.4 percent in 2026 and to average 3.8 percent over the medium term, underpinned by strong private consumption and investment. Paraguay’s growth has been largely insulated from the effects of the war in the Middle East, owing to its fully renewable electricity generation and favorable soybean production and price developments. The current account deficit is projected to narrow gradually over the medium term as new export capacity comes online. FDownside risks stem mainly from weather shocks, a prolonged war in the Middle East that could keep energy and fertilizer prices elevated; and medium- to long-term fiscal contingent liabilities, including from the pension system. Upside risks include stronger agricultural and meat exports, including through access to new markets; larger investment flows, supported by the investment-grade rating and opportunities in renewable energy and artificial intelligence; and productivity gains from ongoing structural reforms and large-scale investments that could boost potential growth above baseline projections. Fiscal Policy Publicly disclosing a strategy to clear domestic arrears and strengthening public financial management are critical to preserving fiscal policy credibility. Settling these claims in a timely manner, recording and reporting them transparently in fiscal statistics would reinforce the hard-won credibility of fiscal policy. To prevent the re-emergence of arrears, closer alignment between the budget and cash-flow planning, together with stronger expenditure monitoring and controls, is needed. This should include completing the rollout and ensuring full enforcement of the Ministry of Economy and Finance’s integrated system for the management of goods and services (SIGEBYS), as well as advancing with its interoperability with expenditure planning and control systems across line ministries. Further progress towards accrual-based recording of expenditure to reduce the lag between the delivery of goods and services and their recognition in the fiscal deficit would enhance transparency. The IMF stands ready to support the authorities’ efforts through capacity development. Fiscal consolidation should remain anchored on restoring compliance with the Fiscal Responsibility Law (FRL) in the near term while avoiding an undue compression of essential spending. The clearance of domestic arrears will add to recorded expenditure as these obligations are recognized in fiscal statistics. US$220 million in total reported arrears to construction companies and about half of the US$1000 owed to pharmaceutical companies is projected to be cleared in 2026, pending the outcome of the factoring operations. Under these prospects, the 2026 fiscal deficit would stand above the initially envisaged target, mainly reflecting the impact of the regularization of accumulated obligations with suppliers, in the context of the authorities’ priority to honor pending commitments and strengthen the integrity and comprehensiveness of fiscal recording. The fiscal outcome for the year would also reflect a less dynamic evolution of tax revenues related to external trade, partly affected by the appreciation of the guaraní. In this context, the authorities project a gradual fiscal consolidation path aimed at resuming compliance with the FRL and converging toward a deficit equivalent to 1.5 percent of GDP in 2028. Sustained efforts to enhance expenditure efficiency and mobilize additional revenue are needed to complete the fiscal consolidation plan and create space for development spending. The authorities should continue improving tax administration efficiency and broadening the tax base, including through the further expansion of electronic invoicing, stronger compliance enforcement, and promoting economic formalization. A review of the tax regime, with a view to rationalizing tax expenditures, would further support revenue mobilization. Options include better targeting tax incentives for electric vehicles, narrowing deductions under the personal income tax, and revisiting reduced VAT rates for selected goods, while protecting vulnerable households through targeted social programs, a more efficient instrument than broad-based tax relief. Once consolidation goals have been achieved, a review of the fiscal framework should ensure it remains aligned with Paraguay’s evolving economic fundamentals and development financing needs. The 2013 FRL has historically served Paraguay well by providing an anchor for fiscal policy. However, a comprehensive review of the fiscal framework, including tax regimes, should ensure it remains adequate. Areas for consideration include introducing a debt anchor and calibrating operational deficit targets to ensure that public debt remains below that anchor with high probability. Monetary and Financial Sector Policies The monetary policy stance remains appropriately slightly above neutral. Medium-term inflation expectations remain well anchored at the Central Bank of Paraguay’s target of 3.5 percent despite the energy shock. There would be scope for gradual further easing if the energy shock proves temporary, inflation expectations remain anchored, and growth moderates as projected. However, given elevated uncertainty and the risk of a protracted energy shock, monetary policy decisions should continue to be guided by incoming data. Paraguay’s credible inflation targeting regime with a flexible exchange rate has served the economy well. The exchange rate should continue to play a key role in absorbing external shocks, with foreign exchange intervention limited to addressing disorderly market conditions. Systemic risk appears contained but rapid consumer credit growth warrants continued vigilance. Financial soundness indicators and the authorities’ stress tests continue to point to a sound and resilient banking system. However, the sustained rapid expansion of consumer credit warrants close monitoring and readiness to act if signs of weaker underwriting standards emerge. Developing a macroprudential toolkit, especially of borrower-based tools aimed at promoting sustainable household indebtedness, such as debt-service-to-income limits, would strengthen the authorities’ ability to contain vulnerabilities. Further strengthening the Anti-Money Laundering and Countering the Financing of Terrorism framework remains important, including through the approval of the updated National Risk Assessment and timely addressing any gaps it identified. Efforts to deepen domestic capital markets should continue. Developing a reliable local-currency yield curve would facilitate the pricing of longer-term financial instruments, including mortgages, and strengthen monetary policy transmission. This would require a gradual increase in government bond issuance in the domestic market, coordinated with the Central Bank of Paraguay to avoid overlapping maturities, as well as measures to broaden the investor base. In this regard, easing legal restrictions on pension funds’ investments in government securities would be an important step. The establishment of the Pension Funds Superintendency, which is now operational, marks an important milestone. Ensuring it is adequately resourced will be critical for sustaining the implementation process of this important reform. Structural Issues Sustaining progress on formalization and social protection is essential for achieving lasting and inclusive growth, as informality remains high and broad‑based. Recent efforts to modernize and integrate social program administration have improved the efficiency, transparency, and effectiveness of benefit delivery. Building on this progress, reforms to reduce informality should seek to lower the costs of formal participation and improve incentives at the margin. In this context, options include adjusting the design of taxes and social contributions to avoid sharp increases in liabilities at low-income levels and easing cliff effects in benefit systems. Such measures—if carefully designed to be broadly revenue‑neutral—could support a gradual transition into formality while preserving medium‑term fiscal and human capital development objectives. Further strengthening governance and anti-corruption institutions should continue. It is important to sustain momentum in implementing the National Regime for Integrity, Transparency and Prevention of Corruption. In this regard, the launch of the information-exchange system to cross-check public officials’ asset declarations—one initiative under the anticorruption agenda—is a welcome step. The National Unified Registry became operational in 2026, marking an important step in strengthening property rights. "The IMF team is grateful to the Paraguayan authorities and counterparts for the productive discussions." ===================== P U E R T O R I C O ===================== NBG MACHINE: Unsecured Creditors Out of Money in Sale Plan ---------------------------------------------------------- NBG Machine Builders & Precision Tooling, Inc., filed with the U.S. Bankruptcy Court for the District of Puerto Rico a Small Business Plan of Reorganization under Subchapter V dated June 11, 2026. The Debtor is a corporation incorporated under the laws of the Commonwealth of Puerto Rico on April 11th, 2006, with its principal place of business at Carretera 117, KM 11.4, Barrio Rayo Plata, Sabana Grande, Puerto Rico. The Debtor was organized for the purpose of offering industrial machining services, manufacturing precision parts for the pharmaceutical industry, general manufacturing, repair, maintenance, and manufacture of critical components for production processes, and providing technical support for automated systems and industrial equipment. The Debtor filed this Chapter 11 Sub-chapter V petition on March 13, 2026, to halt foreclosure proceedings initiated by its secured creditor, FirstBank Puerto Rico, and by Mr. Ernesto Riopedre Abreu, over the Debtor's commercial real property, and to propose an orderly liquidation of its assets for the benefit of creditors. Prior to filing, the Debtor attempted to negotiate feasible repayment alternatives with its secured creditors, but the options offered were not viable given the Debtor's inability to re establish business operations and recruit the necessary employees following natural disasters and changes in the economy. This Plan is a purely liquidating plan. The Debtor will not continue operations. Its sole purpose is to sell all of the Debtor's assets the Commercial Property and the business Equipment through an orderly, privately marketed sale process managed by a licensed commercial equipment and real estate realtor, to maximize creditor recovery, and to distribute the net proceeds in the order of priority established by the Bankruptcy Code. The Debtor's only significant assets are: (a) the commercial real property located at Carretera 117, KM 11.4, Barrio Rayo Plata, Sabana Grande, Puerto Rico (the "Commercial Property"), which is the same premises from which the Debtor operated its business; and (b) the Debtor's machinery, equipment, and inventory (the "Equipment") located therein. The Debtor has been unable to re-establish business operations and has no income stream from which to fund plan payments. Accordingly, all distributions under this Plan will be funded exclusively from the proceeds of the private sale of the Commercial Property and the Equipment. This Liquidating Plan of Reorganization under Chapter 11, Sub-chapter V, proposes to pay the Debtor's creditors from the net proceeds of the combined private sale of the Commercial Property and the Equipment, to be consummated within twenty-four months of the entry of the Confirmation Order, and from monthly adequate protection payments to FirstBank Puerto Rico commencing July 1, 2026. The Debtor will not continue operations. All assets will be liquidated and the case closed upon completion of all distributions and remaining ministerial acts. Class 4 consists of General Unsecured Claims. All holders of allowed general unsecured claims will receive $0.00 under this Plan. The estate is projected to be fully exhausted after payment of CRIM's secured claim, FirstBank's secured claim, and all allowed administrative expense claims. The anticipated dividend to general unsecured creditors is $0.00. Class 5 consists of Equity Interest Holders. There are no equity interest holders to be paid under this Plan. The exclusive means of implementing this Plan and funding all distributions to creditors is the combined private sale of the Debtor's Commercial Property, Finca No. 15778, Karibe System, San Germán Registry, and the Debtor's machinery, equipment, and inventory, to the highest and best bidder through an arms-length, open-market transaction managed by a licensed commercial equipment and real estate realtor in Puerto Rico, free and clear of all liens, claims, encumbrances, and interests pursuant to Section 363(f), with all valid liens attaching to the net sale proceeds in order of their respective priority as set forth herein. A full-text copy of the Subchapter V Plan dated June 11, 2026 is available at https://urlcurt.com/u?l=aNlGDI from PacerMonitor.com at no charge. 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 Law. ===================================== T R I N I D A D A N D T O B A G O ===================================== CARIBBEAN CREAM: Incurs J$125.8MM Loss During FY Ending Feb. 2026 ----------------------------------------------------------------- RJR News reports that Caribbean Cream, which produces Kremi ice cream, slipped into a loss position during the financial year ending February 2026, as Hurricane Melissa and higher operating costs weighed on the company's performance. The company reported a net loss before tax of J$125.8 million, compared with a pre-tax profit of $18.5 million a year earlier, according to RJR News. Revenue was largely unchanged at $2.9 billion, the report notes. On the other hand, Caribbean Cream says sales had been running about nine per cent ahead of the previous year before Hurricane Melissa disrupted operations, the report says. The company says the storm forced the temporary closure of distribution facilities and caused extensive damage to its Montego Bay depot, which remained out of operation throughout November, reducing sales during the review period, the report notes. Although the reopening of the depot helped the company recover lost business and return revenue to levels similar to the previous year, higher production costs affected profitability, the report adds. About Caribbean Cement Caribbean Cement Company Limited, together with its subsidiaries, manufactures and sells cement and clinker in Jamaica and other Caribbean countries. The company was incorporated in 1947 and is based in Kingston, Jamaica. As reported in the Troubled Company Reporter-Latin America on Aug 10, 2023, Jamaica Observer said that high cost attributed to a scheduled annual maintenance exercise done during the first quarter sent operational earnings and six months profit falling for cement manufacturer Carib Cement at the end of June. For the reporting period, net profit, which amounted to $2.4 billion, was approximately 20 per cent below the $3 billion earned for the half-year mark in 2022, according to Jamaica Observer. Operating earnings for the period also fell by about 24 per cent to total $3.6 billion when compared to the $4.8 billion seen for last year's period, the report noted. ********* 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 * * *