/raid1/www/Hosts/bankrupt/TCRLA_Public/220307.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
Monday, March 7, 2022, Vol. 23, No. 41
Headlines
A R G E N T I N A
ARGENTINA: Inks US$45-Billion Staff-Level IMF Deal in Key Step
ARGENTINA: Posts IMF Bill Documents Ahead of Congress Debate
B R A Z I L
REDE D'OR: Acquires Insurer Sulamerica
M E X I C O
CRABI SA: A.M. Best Affirms C+(Marginal) Finc'l. Strength Rating
P U E R T O R I C O
BANCO POPULAR: Enters into Deal to Acquire Key Customer Channels
EMPACADORA Y PROCESADORA: Has Deal on Cash Collateral Access
T R I N I D A D A N D T O B A G O
EDUCATION FACILITIES: 41 Employees Get Termination Letters
X X X X X X X X
[*] BOND PRICING: For the Week Feb. 28 to March 4, 2022
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Inks US$45-Billion Staff-Level IMF Deal in Key Step
--------------------------------------------------------------
Buenos Aires Times reports that Argentina inked an agreement with
the staff of the International Monetary Fund on a new program, a
key step toward finalizing a US$45-billion deal after almost two
years of negotiations.
The staff-level accord, which includes commitments to narrow the
government's fiscal deficit and money-printing while unwinding
energy subsidies, will seek to address the country's "persistent"
high inflation and improve public finances, according to a
statement released by the IMF, according to Buenos Aires Times.
The program will now be sent by the government to Congress for
approval, Argentina's Economy Ministry said in a separate
statement, before reaching the IMF's executive board for final
approval, the report notes.
"Argentina's deep socio-economic challenges have been exacerbated
by the global pandemic," the Washington-based organization said in
the statement, the report discloses. "IMF staff and the Argentine
authorities have reached agreement on a pragmatic and realistic
program, with credible economic policies to strengthen
macroeconomic stability and to address Argentina's deep-rooted
challenges to sustainable growth," the report says.
Economy Minister Martin Guzman, along with other members of his
economic team, are scheduled to present the agreement to Congress
on March 7, the report notes. The government faces not only a
divided ruling coalition but also increasing animosity from the
opposition, making the approval more challenging, the report
relays.
Argentina's short-dated dollar-denominated bonds edged up after the
announcement but ended the day little changed, with the nation's
US$16 billion in securities due 2030 climbing to 31.45 cents on the
dollar, the report says.
As part of the deal, the IMF sees Argentina's economy growing
between 3.5 percent to 4 percent this year and inflation slowing to
between 38 percent to 48 percent from its current level of 51
percent, the report relays. The country is expected to reach a
primary fiscal balance, meaning without counting interest payments,
by 2025, according to IMF officials who spoke to reporters after
the announcement, the report discloses.
Without providing specifics, the officials said the agreement
intends to roll back Argentina's currency controls, which companies
operating in the country often complain about, the report notes.
"The program will also feature a plan for easing controls over
time," said Julie Kozack, the IMF's Western Hemisphere deputy
director who co-led negotiations. "We are aiming to find ways in
the program to improve the framework for currency controls," the
report discloses.
The agreement is the latest chapter in the country's tumultuous
relationship with the IMF, the report relays. Once approved by
Congress and the Fund's board, the deal would effectively
reschedule over US$40 billion in outstanding payments owed by the
Latin American nation to the lender from a record 2018 bailout that
failed to stabilize the crisis-prone economy, the report
discloses.
Talks between Argentina and the IMF gained momentum in the past
weeks as the country nears a late March deadline in which it must
make payments of about US$2.8 billion, the report relays.
President Alberto Fernandez said a deal was already reached, but
added that details were still being worked out, the report notes.
Political Ownership
Fernandez's government passed a law requiring this IMF programme to
be approved through Congress as a way to ensure widespread
political ownership, the report discloses. But before the
staff-level deal was announced, few legislators publicly backed its
broad framework that the government rolled out a month ago, the
report says.
Lawmakers from the more radical-left faction of the president's
broad Frente de Todos coalition already came out against his
negotiation strategy with the IMF, the report discloses. Powerful
Vice-President Cristina Fernandez de Kirchner, who was president
from 2007 to 2015, hasn't commented on the negotiations or
agreement either, the report relays. And some opposition leaders
walked out of the chamber during Fernandez's annual address to
Congress, boosting tensions with the government, the report relays.
It's also uncertain if the deal will have sufficient support from
the IMF's Executive Board, with US officials saying as recently as
January that Argentina needs to put forward a credible economic
plan, the report notes.
Neither Argentina nor the IMF's statements included attachments
outlining the time-lines or specific targets of the deal, beyond
those on spending that had been agreed to in January, the report
notes. Details of the program are expected to be included in the
presentation to Congress, the report adds.
Energy Subsidies
Earlier, government officials announced a new framework within the
agreement over energy subsidies, a hot-button issue in Argentina,
the report relays. The government spent nearly US$11 billion on
these subsidies last year, double the amount from 2019, a level
seen as unsustainable with the Central Bank facing depleted
reserves, the report notes.
The new system plans to segment Argentine residents into three
categories, the report discloses. The wealthiest citizens would
pay full price with no subsidies, the report relays. The second
and third segments of society would see utilities rise according to
a wage index, the report relates.
IMF Managing Director Kristalina Georgieva said last month that the
Fund and Argentina should concentrate on reaching an agreement that
the nation could feasibly implement and that would lead to economic
improvement rather than trying to come up with a plan to solve
every single one of the country's problems, the report notes.
But some former IMF officials criticize the agreement, while others
had already warned it will set a bad precedent, the report relays.
The new program "aims at barely passing a minimal smell test," said
Mark Sobel, a former US Treasury official who also represented the
country at the IMF, the report relays. "The fiscal path is highly
gradual, but may well prove onerous for Argentina. The details are
remarkably murky about the exchange rate. There is little evidence
that Argentina will be able to reduce its very high inflation to
single digits," the report discloses.
Alejandro Werner, a former top IMF official who negotiated
Argentina's last agreement in 2018, warned in a recent Project
Syndicate Op-Ed that the Fund is risking its reputation with a
"very weak" program, adding that "it will generate moral hazard as
other countries will demand similar treatment," the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri 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.
Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8,
2020.
Moody's credit rating for Argentina was last set at Ca on Sept.
28, 2020. Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds. DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.
DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement. Formal negotiations on the new financing
began in November 2020. Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.
ARGENTINA: Posts IMF Bill Documents Ahead of Congress Debate
------------------------------------------------------------
Patrick Gillespie at Bloomberg News reports that Argentina released
the text of a memorandum of understanding and accompanying
documents that are part of the agreement it has reached with
International Monetary Fund staff to restructure its
US$44.5-billion debt with the multilateral lender.
According to the files, Argentina seeks to increase the Central
Bank's reserves by at least US$5.8 billion this year, the report
notes. In addition, the country will aim to eliminate Central Bank
monetary financing from the budget by 2024, according to Bloomberg
News.
The government will also seek to gradually reduce the use of
inflation-linked assets, the report relays.
On the other hand, the memo says that Russia's invasion of Ukraine
presents great uncertainty for the program's underlying
assumptions, adding that policies may need to be "recalibrated" as
necessary, the report relates.
The government also aims to boost infrastructure spending by about
two percent of gross domestic product, while energy subsidies are
expected to be reduced by 0.6 per cent of GDP by 2022, the report
discloses.
In this regard, it is mentioned that the government expects to save
0.06 percent of GDP with its new energy tariff segmentation
program, the report notes.
At the same time, the government will seek local financing from the
private sector of around two percent of GDP until 2024, while it
was noted that Argentina will intervene in the exchange markets
with the aim of increasing reserves, the report relays. The real
effective exchange rate will remain at similar levels this year as
in 2021, the report says.
It was also detailed that the Central Bank will simplify its
reserve requirement system, and that the country's program has a
strategy to gradually relax exchange controls over time, the report
relays. In addition, the government continues to negotiate loan
payments with the Paris Club, the report says.
As for IMF disbursements from the program, Argentina would receive
seven billion in special drawing rights (US$9.8 billion) upon
approval, the report discloses.
The country will also receive SDR 3 billion after the first and
second reviews, SDR 4.5 billion after the third review, SDR 4
billion after the fourth review, SDR 3 billion after the fifth
review, SDR 2.5 billion after the sixth and seventh reviews, SDR
800 million after the eighth and ninth reviews, and SDR 814 million
after the tenth review, the report relays.
Argentina has US$500 million in arrears to private companies, it
added, the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Alberto Angel Fernandez is
the current president of Argentina after winning the October 2019
general election. He succeeded Mauricio Macri 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.
Standard & Poor's credit rating for Argentina stands at CCC+ with
stable outlook, which was a rating upgrade issued on Sept. 8, 2020.
Moody's credit rating for Argentina was last set at Ca on Sept.
28, 2020. Fitch's credit rating for Argentina was last reported on
Sept. 11, 2020 at CCC, which was a rating upgrade from CC. DBRS'
credit rating for Argentina is CCC, given on Sept. 11, 2020.
As reported by The Troubled Company Reporter - Latin American, DBRS
noted that the recent upgrade in Argentina's ratings (September
2020) follows the closing of two debt restructuring agreements
between the Argentine government and private creditors. The first
restructuring involved $65 billion in foreign-law bonds. The deal
achieved the requisite participation necessary to trigger the
collective action clauses and finalize the restructuring on 99% on
the aggregate principal outstanding of eligible bonds. DBRS added
that the debt restructurings conclude a prolonged default and
provide the government with substantial principal and interest
payment relief over the next four years.
DBRS further relayed that Argentina is also seeking a new agreement
with the International Monetary Fund (IMF) to replace the canceled
2018 Stand-by Agreement. Formal negotiations on the new financing
began in November 2020. Obligations to the IMF amount to $44
billion, with major repayments coming due in 2022 and 2023.
===========
B R A Z I L
===========
REDE D'OR: Acquires Insurer Sulamerica
--------------------------------------
Reuters, citing local newspaper O Globo, reports that Brazil
hospital chain Rede D'or SA (RDOR3.SA) acquired insurer Sulamerica
Seguros in a share swap deal.
The report said that according to the terms of the deal, both
companies will continue to operate independently, according to
Reuters.
As reported in the Troubled Company Reporter-Latin America on March
3, 2022, Fitch Ratings has affirmed Rede D'Or Sao Luiz S.A.'s
Long-Term Foreign Currency Issuer Default Rating (LT FC IDR) at
'BB', Long-Term Local Currency IDR (LT LC IDR) at 'BBB-' and
National Long-Term Rating at 'AAA(bra)'. Fitch has also affirmed
Rede D'Or's National Scale local debentures at 'AAA(bra)' and Rede
D'Or Finance S.a.r.l.'s unsecured bonds issuance at 'BB'. The
Rating Outlook for the LT FC IDR is Negative, while the Outlook for
the LT LC IDR and the National LT Rating are Stable.
===========
M E X I C O
===========
CRABI SA: A.M. Best Affirms C+(Marginal) Finc'l. Strength Rating
----------------------------------------------------------------
AM Best has removed from under review with negative implications
and affirmed the Financial Strength Rating (FSR) of C+ (Marginal),
the Long-Term Issuer Credit Rating (Long-Term ICR) of "b-"
(Marginal) and the Mexico National Scale Rating of "bb.MX" (Fair)
of CRABI, S.A. de C.V. (Crabi) (Mexico City, Mexico). The outlook
assigned to these Credit Ratings (ratings) is negative.
Concurrently. AM Best has withdrawn the ratings as the company has
requested to no longer participate in AM Best's interactive rating
process.
The ratings reflect Crabi's balance sheet strength, which AM Best
assesses as weak, as well as its marginal operating performance,
limited business profile and marginal enterprise risk management
(ERM).
The rating affirmations reflect the vulnerability of Crabi's
risk-adjusted capitalization, as measured by Best's Capital
Adequacy Ratio (BCAR), and significant deviations in its operating
performance metrics with respect to the company's original business
plan. These events also call into question the soundness and
fundamentals of Crabi's ERM program.
The negative outlooks indicate further pressure on Crabi's ratings
and the heightened execution risk of its business plan considering
the uncertainty of future capital contributions to support the
operation and its ability to comply with regulatory capital
requirements.
Crabi is a startup company in Mexico that is authorized to
underwrite property/casualty insurance in the auto line of
business, which began operations in May 2019. It is 99.9% owned by
Crabi, L.P., whose sole purpose is to be an investment vehicle for
Crabi, with the remainder owned by the company's CEO, Javier
Orozco. Due to the lack of audited financial statements for the
holding company, certain investments are treated as capital
contributions based on management's representation.
In June 2021, Crabi's risk-adjusted capitalization was pressured
downward to a very weak level due to a delay in the expected
capital infusion, coupled with the shortfall in the regulatory
minimum paid capital. With this additional capital contribution of
MXN 44.4 million, the company's Best's Capital Adequacy Ratio
(BCAR) returned to strongest level as of December 2021, which is in
line with the projections previously provided by the company.
However, given the inherent uncertainty with respect to the timing
of the next round, and the possible inability of the company to
correct the shortfalls and replenish its capital base, the balance
sheet of the company remains vulnerable.
As of December 2021, Crabi's operating performance metrics stood
below the projected levels due to a higher-than-projected level of
claims and acquisition costs. The company is addressing these
issues, but the implementation of these adjustments remains a
challenge within a very competitive auto segment. Additional
negative development of operating performance trends will
potentially erode the already pressured capital base further.
=====================
P U E R T O R I C O
=====================
BANCO POPULAR: Enters into Deal to Acquire Key Customer Channels
----------------------------------------------------------------
Popular, Inc. ("Popular" or the "Corporation") (NASDAQ: BPOP)
announced its entry, along with its wholly owned subsidiary, Banco
Popular de Puerto Rico ("BPPR"), into a definitive agreement with
Evertec, Inc. ("Evertec") and Evertec Group, LLC, a wholly owned
subsidiary of Evertec, to acquire assets and assume liabilities
used by Evertec to service certain BPPR channels. Popular expects
the acquisition will accelerate the Corporation's ongoing digital
transformation and continue improving the experience of its
clients.
In connection with the closing of the acquisition, Popular and BPPR
will also amend and extend important service agreements pursuant to
which Evertec provides, among other services, information
technology and payment processing services. The amendments of these
contracts will eliminate service exclusivities and are projected to
reduce service costs as a result of discounted pricing and lowered
caps on contractual pricing escalators tied to the Consumer Price
Index. The amendments are also expected to improve Popular's
ability to meet its customer needs in a timely manner and increase
optionality to develop and enhance technology platforms and select
service vendors.
In addition, at the closing of the acquisition, BPPR also will
amend and extend the agreement that governs its merchant acquiring
relationship with Evertec. The new agreement will provide BPPR with
revenue sharing, strengthening BPPR's relationship with Evertec in
payments.
At or after closing, Popular anticipates adding approximately 175
employees and contractors that support the servicing of the key
channels, strengthening and deepening Popular's in-house technology
bench.
The total consideration to be paid for the transaction will be
$196.6 million, to be paid by delivering 4,588,955 shares of
Evertec common stock held by Popular and valued at $42.84 per
share. After the completion of the transaction, Popular's ownership
stake in Evertec is expected to be approximately 10.5%. In
connection with the transaction, Popular has also agreed to reduce
its voting interest in Evertec below 4.5%, whether through selling
shares of Evertec common stock or a conversion of such shares into
non-voting preferred stock. Popular expects to sell down its stake
in Evertec below 4.5% following the closing and intends to return
to shareholders, via common stock repurchases, the after-tax gains
resulting from such sale, subject to the receipt of regulatory
approvals.
The use of Evertec shares as consideration for the transaction,
assuming a share price of $41.13 (its closing price on February 23,
2022), would result in an after-tax gain of approximately $135
million. In addition, the effect of the expected subsequent
sell-down or conversion of shares to reduce Popular's participation
in Evertec below 4.5% is estimated to be $215 million in after-tax
gains, assuming the same value per share.
Excluding these gains, the financial benefits of the transaction
during the first full year are expected to be offset as a result of
the elimination of Popular's earnings from its equity investment in
Evertec and the subsequent further reduction in Popular's voting
ownership stake. However, the financial effect of the transaction
is expected to be accretive during future years due to, among other
things, incremental merchant acquiring revenue sharing income and
future price reductions in continuing services.
"The financial technology space is evolving rapidly. The increased
expectations to digitize and improve our customer experience
requires that we constantly assess and invest in our capabilities.
This transaction will enhance our client experience and allow us
greater flexibility to meet our customer demands. Evertec will
continue to be a key strategic partner and we look forward to
working together to build on our payments strategy," said Ignacio
Alvarez, President and Chief Executive Officer of Popular, Inc.
Mac Schuessler, Evertec's President and Chief Executive Officer
said, "This transaction represents the next step in a multi-year
strategy that started back in 2015 of repositioning Evertec as a
premier payment player in the region and an essential partner to
Banco Popular solidifying our relationship with our largest
client."
The transaction, which is expected to close on or about June 30,
2022, is subject to certain closing conditions.
J.P. Morgan Securities LLC is serving as financial advisor to
Popular, with Sullivan and Cromwell LLP, Pillsbury Winthrop Shaw
Pittman LLP and Pietrantoni Méndez & Alvarez LLC acting as legal
advisors.
Popular is filing an investor presentation to provide supplemental
information regarding the transaction. The investor presentation is
available at Popular, Inc.'s website (www.popular.com).
About Popular, Inc.
Popular, Inc. (NASDAQ: BPOP) is the leading financial institution
in Puerto Rico, by both assets and deposits, and ranks among the
top 50 U.S. bank holding companies by assets. Founded in 1893,
Banco Popular de Puerto Rico, Popular's principal subsidiary,
provides retail, mortgage and commercial banking services in Puerto
Rico and the U.S. Virgin Islands. Popular also offers in Puerto
Rico auto and equipment leasing and financing, investment banking,
broker-dealer and insurance services through specialized
subsidiaries. In the mainland United States, Popular provides
retail, mortgage and commercial banking services through its New
York-chartered banking subsidiary, Popular Bank, which has branches
located in New York, New Jersey and Florida.
As reported in the Troubled Company Reporter-Latin America on
Jan. 9, 2020, S&P Global Ratings said it withdrew its 'B'
short-term issuer credit rating on Banco Popular de Puerto Rico at
the company's request. The 'BB+' long-term issuer credit rating on
Banco Popular de Puerto Rico is unchanged.
The outlook on the long-term rating remains positive.
EMPACADORA Y PROCESADORA: Has Deal on Cash Collateral Access
------------------------------------------------------------
Empacadora y Procesadora del Sur, Inc. and Banco Popular de Puerto
Rico have advised the U.S. Bankruptcy Court for the District of
Puerto Rico that they have reached an agreement regarding the
Debtor's use of cash collateral and now desire to memorialize the
terms of this agreement into an agreed order.
The Debtor requires the use of cash collateral in the ordinary
cause of business to continue their operations to preserve the
going concern value pending reorganization.
BPPR consents to the Debtor's limited use of certain income from,
among other things, the sale of inventory, collection of accounts
receivable, and related proceeds, to satisfy certain operating
expenses solely under and pursuant to the terms of the Stipulation
and the adequate protection provided.
The Debtor may use cash collateral and post-petition income,
commencing on February 15, 2022, until May 14, 2022, so that the
Parties can explore the possibility of a potential consensual
resolution during this period and preserve the going concern value
of the Debtor.
On April 27, 2016, BPPR and the Debtor entered into a Credit
Agreement, as amended on February 7, 2017, August 29, 2017, June
11, 2019, and on November 4, 2021. Banco Popular granted two
credit facilities to the Debtor, consisting of a revolving loan
facility in the principal amount of $2,500,000 and a term loan in
the principal amount of $3,500,000, which Loans were for an
aggregate sum in excess of $6,000,000.
On April 27, 2016, BPPR and the Debtor entered into a Security
Agreement, amended on February 7, 2017, and June 11, 2019, whereby
the Debtor assigned and pledged to BPPR a continuing first priority
security interest in, all of Debtor's rights, title and interest in
the collateral.
As adequate protection for BPPR, the Debtor grants to BPPR a
replacement lien and a post-petition security interest on all of
the assets and Collateral acquired by the Debtor on and after the
Petition Date. The Replacement Liens will be deemed effective and
perfected as of the Petition Date without the need of the execution
or filing by the Debtor or BPPR of any additional security
agreements, pledge agreements, financing statements or other
agreements.
During the Stipulation Period, the Debtor will make three adequate
protection payments, the first of which will be for the amount of
$14,500 and the second and third for the amount of $23,907, to
BPPR, on or before the 15th day of each month during the
Stipulation Period, for a total of three Adequate Protection
Payments during such period.
As additional adequate protection, BPPR is granted a super-priority
claim in an amount equal to any diminution in value of the
prepetition cash collateral, resulting from the Debtor's use of the
cash collateral and the imposition of the automatic stay, having
priority over all administrative expenses specified in Sections
503(b) and 507 of the Bankruptcy Code.
A copy of the stipulation is available at https://bit.ly/3svGBeS
from PacerMonitor.com.
About Empacadora Y Procesadora Del Sur, Inc.
Empacadora Y Procesadora Del Sur, Inc. is engaged in the business
of packaging and manufacturing meats and chicken, and its income is
derived essentially from amounts collected from sales of such
inventories to business clients in Puerto Rico and the U.S.
mainland.
Empacadora Y Procesadora Del Sur sought protection under Chapter 11
of the U.S. Bankruptcy Code (Bankr. D.P.R. Case No. 22-00354) on
February 15, 2022. In the petition signed by Carlos C. Rodriguez
Alonso, president, the Debtor disclosed $11,604,565 in assets and
$10,598,204 in liabilities.
Alexis Fuentes Hernandez, Esq., at Fuentes Law Office represents
the Debtor as counsel.
=====================================
T R I N I D A D A N D T O B A G O
=====================================
EDUCATION FACILITIES: 41 Employees Get Termination Letters
----------------------------------------------------------
Kimoy Leon Singat Trinidad Express reports that some 41 employees
of the Education Facilities Company Ltd (EFCL) have found
themselves on the breadline after receiving termination letters.
For some, the termination represented an end of one misery and the
beginning of another unemployment, according to Trinidad Express.
EFCL staff told the Express they were called into a meeting at 9
a.m. where EFCL management did not say much before they got
termination notices signed by EFCL chairman Savitree Seepersad.
The termination notice dated February 28, 2022 states: "The company
has for some time now been unable to meet its monthly operational
expenses, including the payment of salaries to employees, and to
pay debts as they fall due. The company has been inundated with
litigation which has caused an additional strain on its resources
and frozen its bank accounts. The company is unable to carry on
the business for which it was established and has decided to close
down its undertaking and go out of business," the report relays.
The move comes just days after EFCL was ordered by the court to pay
$18 million in compensation to a contractor over a terminated
contract for the construction of a South school, the report
discloses.
The company has been embroiled in litigation by several
contractors, who have filed similar lawsuits against the State
company.
The notice went further to state that EFCL staff would be
terminated and paid their outstanding salaries for the period
October 1, 2021 to March 31, 2022, the report relays.
Staff told the Express they felt blind-sided by the abrupt
dismissal and felt the company could have given them more notice
before they were sent home indefinitely, the report notes.
Employees Feel Abandoned
Last year, frustrated EFCL employees clamored to get their
outstanding wages from the company, the report notes.
According to staff, the company had tried to regulate its
operations due to mounting expenses, but they were not successful,
the report relays.
"Rent had not been paid. The company cell phones were disconnected.
They were on the verge of losing Internet and landline phones as
well as electricity, and yet, EFCL management insisted staff report
physically to the office on their assigned days. We were constantly
fielding calls from persons and companies wanting their money,
while management remained silent. Now we have been abandoned," an
employee said, the report says.
After staff received five months of outstanding salaries last May,
the workers faced non-payment of wages yet again in 2022, the
report relays.
"This situation is hard on all of us. Ninety per cent of the staff
have children, and due to the non-payment of wages and poor working
conditions at EFCL, many of the workers are in debt. The little
money the company owes us will go towards paying back what we
borrowed from the bank and loved ones just trying to make ends
meet," one employee said, the report discloses.
Some workers at EFCL who have been employed with the company for
more than ten years said there was no mention by management
regarding severance, the report says. They told the Express they
had no idea what to do or how they would support their families.
Others said they were relieved because they no longer had to suffer
from the poor working conditions and inconsistent wages.
About EFCL
EFCL was established in 2005 primarily as a project management
organisation to deliver, repair, and maintain educational
institutions from the Early Childhood Care and Education level to
primary and secondary levels across Trinidad and Tobago.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week Feb. 28 to March 4, 2022
-------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
YPF SA 16.5 67.3 5/9/2022 AR ARS
Fospar S/A 6.5 1.2 5/15/2026 BR BRL
Metrogas SA/Chile 6.0 41.6 8/1/2024 CL CLP
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Provincia del Chubut A 4.5 2208 3/30/2021 AR USD
Argentine Republic Gov 4.3 70.0 12/31/2033 AR JPY
KrisEnergy Ltd 4.0 40.4 6/9/2022 SG SGD
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Argentine Republic Gov 7.1 75.7 6/28/2117 AR USD
Provincia del Chaco Ar 9.4 74.8 8/18/2024 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Polarcus Ltd 5.6 71.8 7/1/2022 AE USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
Provincia del Chaco Ar 4.0 0.0 12/4/2026 AR USD
Cia Latinoamericana de 9.5 74.3 7/20/2023 AR USD
Sylph Ltd 2.4 65.1 9/25/2036 KY USD
Banco Macro SA 17.5 65.2 5/8/2022 AR ARS
Noble Holding Internat 6.2 62.2 8/1/2040 KY USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Esval SA 3.5 49.9 2/15/2026 CL CLP
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Province of Santa Fe 6.9 75.2 11/1/2027 AR USD
Provincia de Rio Negro 7.8 70.3 12/7/2025 AR USD
Argentine Republic Gov 0.5 27.6 12/31/2038 AR JPY
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Odebrecht Finance Ltd 6.0 16.4 4/5/2023 KY USD
Provincia de Cordoba 7.1 74.7 8/1/2027 AR USD
YPF SA 16.5 67.3 5/9/2022 AR ARS
Argentine Republic Gov 8.3 74.5 12/31/2033 AR USD
AES Tiete Energia SA 6.8 1.2 4/15/2024 BR BRL
Enel Americas SA 5.8 32.7 6/15/2022 CL CLP
Cia Latinoamericana de 9.5 73.9 7/20/2023 AR USD
Argentine Republic Gov 6.3 74.1 11/9/2047 AR EUR
Argentina Bonar Bonds 7.6 74.4 4/18/2037 AR USD
Avadel Finance Cayman 4.5 55.0 2/1/2023 US USD
Provincia de Rio Negro 7.8 70.4 12/7/2025 AR USD
Noble Holding Internat 5.3 60.5 3/15/2042 KY USD
Provincia de Cordoba 7.1 72.7 8/1/2027 AR USD
Provincia de Buenos Ai 7.9 75.3 6/15/2027 AR USD
Province of Santa Fe 6.9 74.7 11/1/2027 AR USD
City of Cordoba Argent 7.9 73.1 9/29/2024 AR USD
Argentine Republic Gov 6.9 75.2 1/11/2048 AR USD
Argentina Bonar Bonds 5.8 75.2 4/18/2025 AR USD
Noble Holding Internat 6.1 62.0 3/1/2041 KY USD
Automotores Gildemeist 6.8 54.9 1/15/2023 CL USD
Argentine Republic Gov 8.3 72.9 12/31/2033 AR USD
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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 2022. All rights reserved. ISSN 1529-2746.
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