/raid1/www/Hosts/bankrupt/TCRLA_Public/231124.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, November 24, 2023, Vol. 24, No. 236
Headlines
A R G E N T I N A
ARGENTINA: Running Out of Soy Adds to Next Pres.’s Economic Woes
B O L I V I A
BOLIVIA: S&P Lowers Long-Term Sovereign Credit Ratings to 'CCC+'
B R A Z I L
UNIGEL PARTICIPACOES: Closer to Bankruptcy Proceedings
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Signs Deal w/ Jamaica to Improve Exports, Trade
DOMINICAN REPUBLIC: Trade Exchange Grows by 40%
J A M A I C A
TRANSJAMAICAN HIGHWAY: Fitch Affirms 'BB-' Debt Rating, Outlook Pos
P U E R T O R I C O
ESJ TOWERS: March 8 Hearing on Disclosure Statement
PUERTO RICO: PREPA Plan Okayed to Start Voting Process
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A R G E N T I N A
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ARGENTINA: Running Out of Soy Adds to Next Pres.’s Economic Woes
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Buenos Aires Times reports that the road that leads to some of
Argentina's largest ports and soybean processing plants is usually
filled with 2,000 trucks every day at this time of year. Late last
month, there were only a handful, according to Buenos Aires Times.
After the worst drought in six decades left the world's largest
exporter of soy products with the smallest crop in nearly 25 years,
farmers are running out of the very commodity that fuels
Argentina's economy, the report relays.
Soybean factories owned by US trading giants Cargill Inc and Bunge
Global SA, as well as China's Cofco International and local
processor Vicentin are all operating at reduced capacity or have
shut altogether, the report notes. With almost nothing to export,
Argentina is being starved of the dollars it desperately needs,
spelling trouble for the new president set to be elected this
weekend, the report relays.
"The drought situation in Argentina is catastrophic for us,"
Gustavo Idigoras, head of CIARA-CEC, a lobby group representing
some of the country's top soy crushers and crop shippers, said in
an interview in Buenos Aires. "The real impact of the drought for
crushers is from this quarter on."
The situation couldn't be more dire, the report says. The Board of
Trade in the port city of Rosario, which houses most of Argentina's
soybean processing plants, estimates the economic hit from lower
crop exports at US$16 billion - all at a time when a new president
will need as many dollars as possible to shore up an economy
grappling with inflation of 143 percent, the report notes.
Juan Luciano, an Argentine national and chief executive officer of
Chicago-based Archer-Daniels-Midland Co, had already warned farmers
in the country were running out of inventory, the report says. In
a call with analysts at the end of October, he predicted Latin
America's second-largest economy would run out of soybeans this
month.
He was right, the report discloses.
The vast parking lots on the road to the crushing plants -
clustered around Rosario - are pretty much deserted. On any given
day in recent weeks, truck deliveries from the Pampas crop belt
were scant, the report says.
Truck Deliveries
Take the first Friday of November, when just 382 soy cargoes rolled
into the Rosario area, 59 percent fewer than the same day a year
earlier, according to trucking agency AgroEntregas, the report
notes. That was one of the worst days for deliveries recently, the
report says. The drought also curbed arrivals of other crops, the
report relays.
As a result, several soy plants are already bringing forward annual
maintenance, putting production lines out of action earlier than
normal, said Julian Echazarreta, a director at ACA, a major
agriculture cooperative, the report discloses. Idle capacity at
plants could reach as much as 70 percent, according to the Rosario
Board of Trade, the report notes.
Vicentin, once the crown jewel of Argentina's soy processing
industry, shut its San Lorenzo plant for maintenance earlier than
usual, said Estanislao Bougain, a board member at the company, the
report relates. The Ricardone facility, which crushes both soy and
sunflower seeds, is also down, the report notes. While the firm is
in bankruptcy proceedings, it has allowed other exporters to use
its factories to keep some cash flowing in, the report says.
Cargill is running at least one of its processing plants in
Argentina at reduced capacity, Cofco is operating mostly out of its
Timbues facility, and Bunge isn't running the crush plant at its T6
facility, said people familiar with the matter, who asked not to be
identified discussing confidential market information key to
competition, the report notes.
Cargill and Cofco declined to comment. Bunge didn't reply to a
request for comment.
As the soy industry grinds to a halt, neighboring Brazil has
overtaken Argentina as the world's top exporter of soybean meal - a
key ingredient in animal feed - for the first time since 1998, the
report relays.
The economic impact - worsened by an unexpectedly small wheat
harvest that's currently being gathered - is huge, the report
discloses. Exports of all crops including soybeans, wheat and
sunflower seeds are forecast at just US$25.5 billion, 39 percent
less than in the 2021-2022 season, the Rosario exchange estimates,
the report notes.
Farmer Sales
To be sure, farmers still have about 2.5 million metric tons of
soybeans in their hands before the new harvest starts in April, the
report notes. While that's less than half what's usual at this
point in the year, it could help some factories restart should the
new president devalue the peso after the elections, the report
says.
"When we can lock in margins, we'll run," Greg Heckman, CEO of
Bunge, said in an interview in Minneapolis earlier this month,
declining to comment on the current status of its Argentine plants
and terminals, the report discloses.
There will also likely be more imports next quarter from
neighbouring Paraguay, Vicentin's Bougain said, the report notes.
At that point, the company should resume tolling operations, the
report relays. Argentina has also imported record supplies from
Brazil this year, the report says.
For now, it's going to be a long wait for fresh soybeans - which
haven't even been planted yet. And the pain is only going to get
deeper as more factories run out of supplies, the report
discloses.
"For sure the industry will close some production lines," said
Idigoras of Ciara-Cec, 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 will be succeeded by Javier Milei who won
the presidential election on November 19, 2023. Milei is scheduled
to be sworn in as President of Argentina on December 10, 2023.
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.
The IMF's executive board completed on August 23, 2023, the fifth
and six reviews of Argentina's 30-month Extended Fund Facility
(EFF), and approved a US$7.5-billion disbursement to Argentina as
part of the larger program, which refinances payments Argentina
owes the institution from a previous bailout that failed to
stabilize the economy in 2018. Argentina would receive another IMF
disbursement in November of about US$2.75 billion pending another
staff-level agreement and board approval.
S&P Global Ratings, on June 13, 2023, raised its local currency
sovereign credit ratings on Argentina to 'CCC-/C' from 'SD/SD' and
0its national scale rating to 'raCCC+' from 'SD'. S&P also affirmed
its 'CCC-/C' foreign currency sovereign credit ratings on
Argentina. The outlook on the long-term ratings is negative. S&P's
'CCC-' transfer and convertibility assessment is unchanged. None of
its rated bond issues are affected.
S&P said the negative outlook on the long-term ratings is based on
the risks surrounding pronounced economic imbalances and policy
uncertainties before and after the 2023 national elections.
Divisions within the government coalition, and infighting among the
opposition, constrain the sovereign's ability to implement timely
changes in economic policy.
Fitch Ratings also upgraded on June 13, 2023, Argentina's Long-Term
Foreign Currency (FC) Issuer Default Rating (IDR) to 'CC' from
'C'and affirmed the Long-Term Local Currency (LC) IDR at 'CCC-'.
Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.
The upgrade of the FC IDR reflects that Fitch no longer deems a
default-like process to have begun, as the authorities have not
signaled a clear intention to follow through with an intra-public
debt swap announced in March. The new 'CC' rating signals a default
event of some sort appears probable in the coming years, regardless
of the outcome of upcoming elections. The affirmation of the LC IDR
at 'CCC-' follows the peso debt swap in June that Fitch did not
deem to be a "distressed debt exchange" (DDE).
Moody's Investors Service, in September 2022, affirmed Argentina's
Ca foreign-currency and local-currency long-term issuer and senior
unsecured ratings. The outlook remains stable. The decision to
affirm the Ca ratings balances Argentina's limited market access,
weak governance, and history of recurrent debt restructurings with
recent efforts to marshal fiscal and monetary measures to start
addressing underlying macroeconomic imbalances in the context of
the IMF program that was approved in 2022, according to Moody's.
DBRS, Inc. confirmed Argentina's Long-Term Foreign Currency Issuer
Rating at CCC and downgraded its Long-Term Local Currency Issuer
Rating to CCC from CCC (high) on March 3, 2023.
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B O L I V I A
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BOLIVIA: S&P Lowers Long-Term Sovereign Credit Ratings to 'CCC+'
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On Nov. 22, 2023, S&P Global Ratings lowered its long-term foreign
and local currency sovereign credit ratings on Bolivia to 'CCC+'
from 'B-'. The outlook on the long-term ratings is negative. S&P
also lowered its short-term foreign and local currency sovereign
credit ratings to 'C' from 'B'. At the same time, S&P revised its
transfer and convertibility assessment to 'CCC+' from 'B-'.
Outlook
The negative outlook indicates the risk of further worsening of
external liquidity, which could impair the government's ability to
fully service its debt. Political disagreements, including within
the governing coalition, have weakened the government's ability to
secure external financing and stanch the erosion of its external
profile.
Downside scenario
S&P could lower the ratings over the next 12 months if it sees
greater risk to debt servicing. Continued political stalemate
limits the government's ability to stabilize and reverse the
decline in external liquidity that, if unchecked, could pose risks
to economic and monetary stability. The government's commercial
debt payments are low in the next 12 months, but further erosion in
the availability of foreign exchange could hurt the economy and
undermine the government's capacity to service its debt.
Upside scenario
S&P could raise the ratings in the next 12 months if it sees
decisive policy measures that boost investor confidence and reverse
recent worsening of the country's external profile. Among other
things, this would include steps to gain better and timely access
to external funding and to correct still-large fiscal deficits,
along with greater transparency in key economic data.
Rationale
The downgrade reflects a more fragile external profile that, in
S&P's view, has weakened Bolivia's capacity to meet its debt
service commitments. Higher current account deficits, limited
liquid foreign exchange reserves, and lack of access to external
capital markets have worsened the government's creditworthiness.
Political stalemate, which has impeded the government's ability to
secure timely access to official external funding, has exacerbated
the weakening economic conditions. Political divisions, including
within the governing political party, have delayed Congressional
approval of external borrowing. Moreover, lack of transparency on
international reserves data increases uncertainty.
These risks are partly mitigated by relatively low debt service
requirements on the sovereign's commercial debt in the next year.
Also weighing on our ratings on Bolivia are its limited monetary
policy flexibility arising from exchange rate rigidities, low per
capita GDP, and economic growth that is lower than that of other
countries at a similar level of development. Bolivia also has weak
public finances, with net general government deficits above 5% of
GDP and net general government debt over 60% of GDP.
Institutional and economic profile: Infighting in the ruling party
exacerbates economic challenges
-- A split within the governing Movimiento al Socialismo (MAS) has
weakened the administration's ability to pass laws in Congress,
including approval of external loans.
-- In S&P's assessment, political uncertainty affects timely
policymaking.
-- S&P expects the economy to decelerate to 1.8% growth in 2023,
based in part on weaker exports.
The MAS has dominated Bolivian politics since Evo Morales first was
elected president in 2006. When current President Luis Arce was
elected in 2020, the MAS secured a majority in both chambers of the
legislative.
However, frictions within the party, which were present since the
beginning of the Arce administration, have affected governability.
Rivalry between former president Morales and current President Arce
has escalated recently, weakening the administration's ability to
secure approval of new laws. Neither faction of the now divided MAS
controls a majority in Congress, making it difficult to govern.
For example, a change in the gold law, which granted more
flexibility to the central bank to convert gold to dollars and to
purchase gold to boost its reserves, was delayed in Congress for
two years. It was only approved following weeks of sustained
pressure on the currency and on banks' deposits.
However, reaching consensus to approve more controversial
legislation--like changes to taxation or the framework to attract
foreign investment--will be very difficult. Within this political
context, it may prove very tough for the government to gather
enough support to approve laws allowing for external borrowing that
is critical to avoid further loss of external liquidity.
Slowing economic growth poses an added political challenge. Before
the pandemic, Bolivia was growing 4% per year, backed by
expansionary fiscal policies. Indicators such as GDP per capita,
poverty, and income distribution had all improved significantly.
However, fiscal and monetary flexibility has eroded in recent years
owing to both fiscal and current account deficits. Bolivia's
natural gas sector is shrinking, contributing to poor economic
performance and to lower public-sector revenues.
S&P expects GDP to grow 2% on average in 2023-2026, below peers at
a similar level of development. S&P expects GDP per capita to
average $3,700 in 2023-2026, just above its 2019 level.
The Arce administration has indicated its intention to open the
economy and unlock Bolivia's energy potential, especially on the
lithium sector. At the beginning of the year, two foreign companies
signed agreements to explore Bolivia's vast reserves, with expected
investments above $1 billion. That said, political opposition in
some regions of the country may limit progress on these projects.
Foreign direct investment has remained low in recent years.
Flexibility and performance profile: Decreasing gas exports have
worsened the current account deficit
-- S&P projects fiscal deficits to remain elevated over the next
two years as lower hydrocarbon revenues will outweigh the capacity
to adjust government spending.
-- Falling gas exports are affecting current account receipts, and
we expect the current account deficit (CAD) to average 3% of GDP in
2023-2026.
-- Securing new funds from multilateral banks would support
external liquidity over the next 12 months.
Bolivia's CAD is rising, and it has no access to external capital
markets. The fall in foreign exchange reserves, following dollar
outflows in the second quarter of the year, has exacerbated the
situation. S&P expects the CAD to increase to 3% of GDP in
2023-2026 from an almost balanced position in 2022, reflecting
decreasing gas exports and high fuel imports.
The boliviano is de facto linked with the U.S. dollar since 2011.
However, in recent months, the nonofficial exchange rate has
depreciated and is currently 10% above the official exchange rate.
The central bank does not intervene in foreign trade transactions
between private parties. The limited exchange rate flexibility for
the private sector in nonfuel products may alleviate the trade
deficit going forward.
However, the hydrocarbon-trade balance presents a structural
deficit, with falling gas exports (owing to decreasing output,
rising domestic demand, and lower demand for exports to Argentina).
In the first eight months of the year, gas export volume fell 20%
year over year. To address the external imbalance, the
administration has focused on investment in projects that could
produce substitutes for imports. The external deficit persists
despite such projects in recent years.
S&P estimates Bolivia's gross external financing needs at 100% of
current account receipts plus usable reserves for 2024. Its metric
assumes some erosion of reserves since the last reported $3.1
billion in April. Since May, the central bank converted nearly $1
billion in gold reserves to dollars to meet demand for foreign
exchange. Shortcomings in data transparency on international
reserves and central bank assets affect our analysis of external
liquidity.
Bolivia relies on official funding to cover external financing
needs. S&P sid, "We expect official creditors to remain supportive
of Bolivia. We also expect that new government borrowing will
slightly exceed the $800 million in amortization payments due to
multilateral lenders in 2024." However, political factors have
created rigidities in debt management, raising the risk of
inadequate access to external financing, notwithstanding the low
commercial debt payments due next year (commercial debt
amortization rises significantly in 2026). There is currently $450
million in new loans waiting to be approved in Congress.
Falling gas royalties and an inflexible spending structure create
fiscal rigidities. S&P said, "We expect the general government
fiscal deficit to average 5% of GDP in 2023-2026, just below the
5.8% deficit in 2022 (although below the 12.7% peak of 2020). We
expect general government revenues to fall to 24.5% of GDP by 2026,
from 26.3% in 2022 and 31% in 2016. The drop in hydrocarbon tax
revenues would be partially compensated by a reduction in
infrastructure spending, expected to average 3.4% of GDP, from 7%
in 2019-2022." Key to more forceful fiscal adjustment would be
increased taxes or lower fuel subsidies (over 2% of GDP), which is
not our base case.
Large fiscal deficits are accelerating the rise in debt. S&P
expects net general government debt to be 70% of GDP by 2026, up
from 39%, on average, in 2019-2020. Higher debt has pushed interest
spending as a share of government revenue above 5%. The limited
access to external debt has been increasing reliance on domestic
sources of funding--namely local securities purchased by the social
security fund and central bank financing. That said, the debt
burden is exposed to potential adverse swings in the currency,
since over 40% of the total sovereign debt is nominated in foreign
currency.
Stability in the boliviano's link with the U.S. dollar has been key
at keeping inflation low and reducing banking sector exposure to
foreign currency risks. The low exposure to exchange rate risk was
an important factor in mitigating risks to the banking sector's
dollar deposits at the beginning of the year. Nevertheless, the
central bank has limited capacity to provide foreign currency
liquidity to the banking system.
In accordance with S&P's 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 Ratings Score Snapshot 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
DOWNGRADED
TO FROM
BOLIVIA (PLURINATIONAL STATE OF)
Sovereign Credit Rating CCC+/Negative/C B-/Negative/B
Transfer & Convertibility Assessment
Local Currency CCC+ B-
BOLIVIA (PLURINATIONAL STATE OF)
Senior Unsecured CCC+ B-
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B R A Z I L
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UNIGEL PARTICIPACOES: Closer to Bankruptcy Proceedings
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ICIS reports that Unigel Participacoes would be a step away from
filing for bankruptcy and both credit agencies rating its debt
obligations, Fitch and S&PL Global, have downgraded the company to
the bottom notches of their rating scales.
On October 2, Unigel failed to pay a coupon on a bond due in 2026,
entering a 30-day grace period to negotiate with bondholders,
according to the report.
The company said at the end of the grace period its talks with
creditors were continuing, although fears about it filing for
bankruptcy kept growing, the report notes.
Unigel's operating conditions have sharply deteriorated over the
course of 2023 as high input costs - mostly in its fertilizers
division due to high natural gas prices - and low selling prices
dragged its finances down, the report relates.
As previously reported in the Troubled Company Reporter - Latin
America, Fitch has downgraded Unigel's debt obligations to
restrictive default (RD). This is only a step away from the default
(D) notch, ICIS relays.
"Unigel is still considering a potential debt restructuring in the
midst of challenging market conditions. Without additional funds,
the company will need some combination of asset sales, an equity
injection from its shareholder, or a renegotiation of its natural
gas supply contracts," said Fitch, notes the report.
According to ICIS, the latter option seems now also closed, after
the company announced it was shutting down its Camacari, state of
Bahia, nitrogen fertilizers plant while charging against Brazil's
state-owned energy major Petrobras who, in Unigel's view, would
have not facilitate the continuation of operations with its
"unbearable" natural gas prices.
Moreover, Fitch said the hiring of financial advisors Moelis &
Company in June which, according to Unigel, would help it "improve"
its capital structure, could end up having been counterproductive,
the report relays.
"Fitch believes that the engagement of Moelis, which has been an
advisor for several companies that have restructured debt in
Brazil, materially reduces the creditors' willingness to provide
new financing to the group to cover its 2023 and 2024 funding
needs," it said, notes ICIS.
The TCR-LA also previously reported that S&P Global Ratings has
downgraded Unigel. On this occasion, the agency placed a D on the
firm's debt commitments, taking the bankruptcy practically as a
given, ICIS says.
According to S&P rating scale: "[A D rating shows] Payment default
on a financial commitment or breach of an imputed promise; also
used when a bankruptcy petition has been filed or similar action
taken," it notes.
Unigel had not responded to a request for comment at the time of
writing, ICIS relates.
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D O M I N I C A N R E P U B L I C
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DOMINICAN REPUBLIC: Signs Deal w/ Jamaica to Improve Exports, Trade
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Dominican Today reports that Jamaica's Minister of Foreign Affairs
and Foreign Trade, Kamina Johnson, shared details of her visit to
the Dominican Republic, where she had meetings with President Luis
Abinader and Foreign Minister Roberto Alvarez.
During her visit, Kamina Johnson discussed various aspects,
including the upcoming visit of the Prime Minister of Jamaica,
Andrew Holness, to the Dominican Republic next year, according to
the report. The discussions also covered the cooperation
agreements signed between her and Foreign Minister Roberto Alvarez,
encompassing areas such as agriculture, trade, investment,
logistics, culture, and language exchange, the report notes.
Minister Kamina Johnson expressed her satisfaction with the meeting
with President Abinader and highlighted the importance of planning
the Prime Minister's visit, the report notes. She also emphasized
the achievements of her visit, particularly the signing of new
cooperation agreements aimed at fostering collaboration in
agriculture, culture, and language exchange, and enhancing trade
and investment between the two countries, the report relays.
Kamina Johnson stated, "Jamaica is interested in Dominican
products, but we also seek to increase what we can export to your
great country," the report relays.
Both Foreign Minister Roberto Alvarez and Minister Kamina Johnson
expressed their commitment to leverage the full potential of
diplomatic ties to strengthen trade and investment relations, the
report discloses.
The relations between the Dominican Republic and Jamaica are
currently in an excellent state, with the upcoming celebration of
the 60th anniversary of diplomatic relations between the two
nations next year, the report says.
Minister Kamina Johnson emphasized the importance of open and
honest discussions between good friends, even on challenging
topics, to build stronger relationships, the report notes.
The agreement signed during Kamina Johnson's visit aligns with the
Dominican government's strategy to enhance its ties with Caribbean
countries and diversify its export offerings to Jamaica, the report
relays. Beyond existing exports of cardboard, plastic, fruits,
cement, fertilizers, rods, mattresses, furniture, and edible
materials, the Dominican Republic aims to explore new
opportunities, the report says.
The Dominican ambassador to Jamaica, Angie Shakira Martinez, who
also attended the meetings, has previously described Jamaica as a
strategic partner of the Dominican Republic, the report notes.
Currently, Jamaica represents the Dominican Republic's
second-largest trading partner in the region and the seventh
globally, the report relays.
In 2021, the Dominican Republic exported goods worth $122 million
to Jamaica, marking a 39% growth compared to 2019, the report
recalls.
Notably, last month, the Ministry of Defense of the Dominican
Republic (MIDE) and the Chief of the Defense Forces of Jamaica
signed two collaboration agreements aimed at strengthening
aeronautical and maritime search and rescue operations, as well as
enhancing joint efforts to combat international organized crime in
both countries, 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.
On August 14, 2023, the TCR-LA reported that Moody's Investors
Service has changed the outlook on the Government of Dominican
Republic's ratings to positive from stable and affirmed the local
and foreign-currency long-term issuer and senior unsecured ratings
at Ba3. Moody's said the key drivers for the outlook change to
positive are: (i) sustained high growth rates have enhanced the
scale and wealth levels of the economy; and (ii) a material decline
in the government debt burden coupled with improved fiscal policy
effectiveness will support medium-term debt sustainability.
The affirmation of the Ba3 ratings balances the Dominican
Republic's strong economic growth dynamics and relatively contained
susceptibility to event risks, with a comparatively weaker fiscal
position, reflecting long-standing credit challenges which include:
(i) a shallow revenue base compared to peers, (ii) weak debt
affordability metrics, and (iii) high exposure to foreign currency
borrowing.
S&P Global Ratings, in December 2022, raised its long-term foreign
and local currency sovereign credit ratings on the Dominican
Republic to 'BB' from 'BB-'. The outlook on the long-term ratings
is stable. S&P affirmed its 'B' short-term sovereign credit
ratings. S&P also revised its transfer and convertibility (T&C)
assessment to 'BBB-' from 'BB+'. The stable outlook reflects S&P's
expectation of continued favorable GDP growth and policy continuity
over the next 12-18 months that will likely stabilize the
government's debt burden.
In February 2023, S&P said its BB ratings reflect the country's
fast-growing and resilient economy. It also incorporates the
country's historical political and social challenges in passing
structural reforms to contain fiscal deficits, despite recent
improvements in the electricity sector. The ratings are constrained
by relatively high debt, a hefty interest burden, and limited
monetary policy flexibility.
Fitch Ratings, in December 2022, affirmed the Dominican Republic's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Rating Outlook.
DOMINICAN REPUBLIC: Trade Exchange Grows by 40%
-----------------------------------------------
Dominican Today reports that since 2022, the country's trade
exchange with the world has grown by 40%, which has generated an
exponential increase in imports and exports.
The information was offered by the Vice Minister of Foreign Trade
of the Ministry of Industry, Commerce and Mipymes (MICM), Vilma
Arbaje, during a conversation with press members entitled "DR-Cafta
beyond 2025," according to Dominican Today.
While participating in this activity, the Minister of Industry,
Commerce, and Mipymes, Victor-Ito-Bisono, referred to the trade
deficit with the United States and pointed out that when talking
about the shortage of one country with another, the size and
conditions of both nations must be taken into account, the report
notes.
In the case of the Dominican Republic, the MICM head held that it
should be evaluated in terms of percentage or by performance, not
by the amount of a balance, the report relays.
"We have to see the progress made by the Dominican Republic; we had
a huge surprise with the growth and export of the orange economy.
When Dona Vilma was talking about the export of cosmetics, we have
grown 300% in the export of cosmetics. As for tobacco, when we came
to the Government, we had 80,000 tareas planted, and today we have
150,000 tareas, growing with a strategy for the productive
chaining," said Bisono, the report notes.
The Vice Minister of Foreign Trade added, "Our imports and exports
have been increasing exponentially; with the United States, our
trade represents almost 50%, and our imports and exports originate
in that country," the report discloses.
He recalled that the country's main markets are the United States
and Haiti. However, there has been a recomposition in recent years,
and Switzerland has been added to the list thanks to gold exports,
Puerto Rico, and the Netherlands, the report says.
The main export products have also been recomposing, mainly gold,
cigars, medical instruments, and electrical components, the report
relays.
Arbaje said that 50% of exports are concentrated in the United
States, and the remaining percentage is divided between China,
Mexico, and Brazil, the report notes.
The official said that in the Dominican Republic, tobacco is an
industry worth more than US$2 billion, 1,600 million in exports,
and 600 million in imports of raw materials, the report says.
During the discussion, both Bisono and Arbaje answered questions
from press members, the report discloses.
The Dacomex RD, Export Potential Map RD, and Market Acces Map RD
platforms were presented at the meeting, as well as three
commercial intelligence tools allowing exporters to expand their
frontiers and make better business decisions, the report relates.
Dacomex RD is the first interactive panel of foreign trade
statistics of the Dominican Republic. At the same time, Potencial
Map RD allows knowing the potential of the Dominican Republic to
the world, the report notes.
Market Acces Map RD allows Dominican Republic to visualize the
possibilities of exporting products to any part of the world, the
report discloses.
The activity was attended by the professor and economist Antonio
Ciriaco and the businessman Bienvenido Rodriguez, owner of the
radio station Z101, the report relays. Also present were the Vice
Minister of Internal Trade, Ramon Perez Fermin, as well as
directors and collaborators of the MICM, 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.
On August 14, 2023, the TCR-LA reported that Moody's Investors
Service has changed the outlook on the Government of Dominican
Republic's ratings to positive from stable and affirmed the local
and foreign-currency long-term issuer and senior unsecured ratings
at Ba3. Moody's said the key drivers for the outlook change to
positive are: (i) sustained high growth rates have enhanced the
scale and wealth levels of the economy; and (ii) a material decline
in the government debt burden coupled with improved fiscal policy
effectiveness will support medium-term debt sustainability.
The affirmation of the Ba3 ratings balances the Dominican
Republic's strong economic growth dynamics and relatively contained
susceptibility to event risks, with a comparatively weaker fiscal
position, reflecting long-standing credit challenges which include:
(i) a shallow revenue base compared to peers, (ii) weak debt
affordability metrics, and (iii) high exposure to foreign currency
borrowing.
S&P Global Ratings, in December 2022, raised its long-term foreign
and local currency sovereign credit ratings on the Dominican
Republic to 'BB' from 'BB-'. The outlook on the long-term ratings
is stable. S&P affirmed its 'B' short-term sovereign credit
ratings. S&P also revised its transfer and convertibility (T&C)
assessment to 'BBB-' from 'BB+'. The stable outlook reflects S&P's
expectation of continued favorable GDP growth and policy continuity
over the next 12-18 months that will likely stabilize the
government's debt burden.
In February 2023, S&P said its BB ratings reflect the country's
fast-growing and resilient economy. It also incorporates the
country's historical political and social challenges in passing
structural reforms to contain fiscal deficits, despite recent
improvements in the electricity sector. The ratings are constrained
by relatively high debt, a hefty interest burden, and limited
monetary policy flexibility.
Fitch Ratings, in December 2022, affirmed the Dominican Republic's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Rating Outlook.
=============
J A M A I C A
=============
TRANSJAMAICAN HIGHWAY: Fitch Affirms 'BB-' Debt Rating, Outlook Pos
-------------------------------------------------------------------
Fitch Ratings has affirmed TransJamaican Highway Limited's (TJH)
senior secured notes at 'BB-'. The Rating Outlook is Positive.
RATING RATIONALE
The rating reflects the stability and resiliency of a commuting
asset strategically located in the outskirts of Kingston, Jamaica's
capital city. The rating is also supported by a satisfactory
rate-setting mechanism, which allows tariffs to be adjusted
annually by U.S. inflation and the variations in foreign exchange
(FX) rate between the Jamaican dollar (JMD) and the U.S. dollar
(USD). Debt is senior secured, with typical project finance
features that include limitations on additional indebtedness.
Rating case minimum and average debt service coverage ratio (DSCR)
are at 1.7x in 2035 and 2.2x, respectively, which are viewed as
strong for the rating category according to applicable criteria.
The transaction presents robust break-even values for its most
important variables and no dependency on traffic growth in order to
repay the rated debt. Furthermore, even though the credit profile
withstands domestic economic shocks beyond those observed between
2008-2014 when the Jamaican economy deeply deteriorated, the
transaction is ultimately capped at Jamaica's Country Ceiling of
'BB-' because of transfer and convertibility risk.
TJH's Positive Outlook mirrors the Positive Outlook of Jamaica's
'B+', given the Rating Outlook revision of the Jamaican sovereign
rating in March 2023 reduced the concerns of higher risk of
controls on convertibility and the transfer of foreign currency to
serve the debt.
KEY RATING DRIVERS
Strategically Located Essential Asset [Revenue Risk - Volume:
Midrange]:
The toll road is the main link between the capital city of Jamaica,
Kingston, and other populated urban and industrial centers
including the cities of Portmore and May Pen. The asset is
currently the only high-speed roadway serving the western part of
Kingston's metropolitan area, with an estimated population of 1.4
million people along the corridor. Growth prospects in the long
term are underpinned by its position as a strategic asset for the
country, along with the fact that motorization rates in Jamaica are
still low, so there is potential to increase.
Adequate Rate Adjustment Mechanism [Revenue Risk - Price:
Midrange]:
Toll rates are adjusted annually using an escalation formula based
on the U.S. CPI and the FX rate (USD/JMD) evolution, plus an
additional 1% until the foreign debt is repaid in full, in
accordance with the maximum capped toll level of that period, with
additional increases if USD/JMD exchange rate depreciates by more
than 10% intra-period. TJH is allowed to annually increase toll
rates, but any change needs to be authorized by the roll regulator.
If the toll regulator does not authorize such toll rates, the
concessionaire would need to be compensated for the lost revenue.
Fitch believes it is unlikely that the regulator would choose to
cut prices given the toll rates' updated track record since 2009.
Fully Operational Asset [Infrastructure Development & Renewal:
Midrange]:
The toll road has been fully operational, with its four toll
plazas, since 2012. It benefits from oversight from an independent
engineer who provides financial annual reviews of the budget and
the O&M plan and a commentary of the six succeeding semesters. The
structure holds a six-month operations and maintenance reserve
account, as well as a major maintenance reserve account funded with
100% of the costs to be carried out in the next 12 months, 50% in
the next 13 to 24 months and 25% in the next 25 to 36 months. The
assessment on this attribute is somewhat limited by the hand back
requirements as included in the concession, which oblige the
concessionaire to return the project to the grantor in a good and
operable condition.
TJH has executed an amendment to the concession agreement in which
the tenor could be renewed, at any time during 2034, at TJH's
request for an additional 35 years. With this updated agreement,
the hand back requirements will fall after the maturity of the
notes. Nonetheless, Fitch's financial projections assume such
expenses will be made in 2035-2036, given the concession currently
ends in 2036.
Typical Debt Structure [Debt Structure: Midrange]:
The notes are senior, fully amortizing, fixed-rate and with typical
project finance covenants. There is a six-month debt service
reserve account and a lock-up trigger at a 1.25x backward- and
forward-looking debt service coverage ratio (DSCR). No FX risk is
anticipated given the formula for toll rates increase captures
movements in the JMD/USD exchange rate.
Financial Profile
Fitch's Base Case, the project yields a minimum and average DSCR of
2.3x in 2024 and 2.5x. Fitch's Rating Case, the project yields a
minimum and average DSCR of 1.7x in 2035 and 2.2x, respectively,
which is strong for the rating category under the indicative
thresholds of the applicable Fitch criteria, but ultimately
constrained by Jamaica's Country Ceiling because of transfer and
convertibility risk.
PEER GROUP
The closest project in the region is Autopistas del Sol, S.A. (AdS;
B/Stable) in Costa Rica. AdS and TJH are similar, as both are
strong commuting assets within their respective country's capital
cities. They also share all attributes at the Midrange level, but
the difference in ratings comes from AdS's lower metrics (average
DSCR of 1.2x versus 2.2x of TJH under Fitch's rating case).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Negative rating action on Jamaica's Country Ceiling;
- Nil or negative traffic growth rate for a sustained period.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Positive rating action on Jamaica's Country Ceiling.
TRANSACTION SUMMARY
TJH's concession stretches for 49.9km, connecting Kingston with May
Pen, and is divided in two fully operational corridors. The first
corridor stretches between Kingston and May Pen, with three toll
plazas: Spanish Town, Vineyards and May Pen. The other corridor,
also called the Portmore Causeway, begins on Marcus Garvey Drive in
Kingston and end on Dyke Road in Portmore. TJH issued senior
secured debt for USD225 million through a fully amortizing bond
maturing in 2036 with a fixed 5.75% coupon rate.
CREDIT UPDATE
In 2022, annual average daily traffic (AADT) was 70,923 vehicles,
representing a 13.0% annual growth from 2021, a 107% recovery from
2019 levels and in line with Fitch's base case expectation of
70,578 vehicles. Looking at each of the toll plazas, Portmore and
Vineyards had the highest growth, while Spanish Town and May Pen
were below them but, in general, they all had high growth rates.
As of June 2023, AADT performance has been strong reflected in a
111% recovery from first half 2019 and above both its base and
rating case expectations of 105% and 102% respectively for the same
period. AADT for the January to June 2023 period was 73,708
vehicles. According to the concessionaire, this performance is
explained by the national economy recovery, as traffic is closely
related to GDP, which has been accelerating after the COVID
pandemic normalized. During January to June 2023, Portmore had a
2.1% traffic reduction compared to same period in 2022, while the
other tranches had growth between 4% and 12%. Portmore has
different traffic dynamics than the rest of tranches as it has a
competing road, its affected by base effect from 2022, and
according to concessionaire these dynamics are normal in Portmore
after pandemic recovery.
Tariff increases were dully applied by the end June of 2023
resulting in a weighted average annual increase of 6.43%, above
Fitch's rating and base case of 3.77%. In terms of revenue, the
project collected USD65.7 million during 2022, 24.8% more than the
previous year, and in line with Fitch's base case expectations of
USD66.2 million. From January to June 2023, toll revenue was
USD13.09 million, 22.1% compared to the same period of 2022.
During 2022, overall O&M expenses were USD24.1 million, around 30%
above both Fitch cases projections and was mainly explained by
Operator fees and Concessionaire costs, which were higher than
expected as previous formula was escalating quickly according to
concessionaire and also there was an impact by legal and
professional fees related to subsidiary acquisition. Regarding
capex, during 2022, it reached USD3.05 million, below both Fitch
cases, as some of capex was deferred to 2023.
In 2022, TJH completed a process to acquire its operator, Jamaican
Infrastructure Operator Limited (JIO) and to amend the O&M contract
in order to reduce the overall operator fees paid by the project.
If the intended cost reductions are achieved, there could be a
positive effect on project cash Fitch has not amended its
projections to reflect such savings at this moment, but will do
that once the cost reductions are actually observed and it is
demonstrated that the operator can still comply with its
contractual obligations under the new contract fees. Also, given
TJH's rating is currently capped to Jamaica's country ceiling, this
change in its projections and its potentially positive impact would
be neutral for the rating.
Finally, during 2022, the effect of higher than expected O&M
expenses resulted in lower CFADS and a DSCR of 2.0x, below Fitch
rating case expectations of 2.2x.
FINANCIAL ANALYSIS
Fitch's base case assumes a traffic CAGR from 2023 to 2027 of 2.1%.
The cost profile assumed is in line with the sponsor's original
assumptions plus a 5% increase. U.S. inflation was assumed at 4.2%
in 2023, 2.8% in 2024, 2.6% in 2025, and 2.5% from 2026 and
onwards. Jamaican inflation was assumed at 6.5% in 2023, 4.9% in
2024, 4.9% in 2025, and 4.0% from 2026 and onwards. Under this
scenario, the minimum and average DSCR are 2.3x and 2.5x,
respectively.
Fitch's rating case assumes a traffic CAGR of 1.1% from 2023 to
2036. Operating, general and administrative, and maintenance
budgeted expenses are increased by 7.5% throughout the tenor of the
debt. Inflation assumptions are as in the base case. Under this
scenario, the minimum and average DSCR are 1.7x and 2.2x,
respectively.
The transaction presents robust break-even values for its most
important variables and little dependency on traffic growth in
order to repay the rated debt, supporting the project rating above
the sovereign rating.
SECURITY
An onshore all assets debenture providing for (subject to certain
exceptions and limitations) a first priority security interest in
all present and after-acquired personal property of the Issuer
including all Project documents to which it is party, including the
Concession Agreement, and the local accounts, and further providing
for an assignment of the benefit of the Concession Agreement and
the other project documents; an assignment of the concession
agreement providing for a collateral assignment of the Issuer's
interest in the Concession Agreement; an onshore security trust
deed providing for the appointment of the local trustee and for the
transaction security to be held on trust for the Secured Parties;
the offshore accounts under the Indenture Trustee.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
TransJamaican
Highway Limited
TransJamaican
Highway Limited/
Toll Revenues –
First Lien/1 LT LT BB- Affirmed BB-
=====================
P U E R T O R I C O
=====================
ESJ TOWERS: March 8 Hearing on Disclosure Statement
---------------------------------------------------
Judge Enrique S. Lamoutte has entered an order that the hearing on
approval of amended disclosure statement of ESJ Towers Inc. is
scheduled for March 8, 2024 at 10:00 AM.
Objections will be filed and served not less than 14 days prior to
the hearing.
ESJ Towers, Inc., filed a motion to extend its Sept. 13, 2023
deadline to file its Amended Plan of Reorganization and Disclosure
Statement by 45 days.
The Debtor is in the process of drafting and filing a motion for
the entry of a sale order for substantially all of its assets, to
be shared with its principal secured creditor, Oriental Bank, for
the purpose of exploring for its filing to be of a consensual
nature, which motion not only will alter the course of the
captioned case but will require a different Plan and Disclosure
Statement from those previously in process.
Counsel for the Debtor:
Charles A. Cuprill-Hernandez, Esq.
CHARLES A. CUPRILL, P.S.C. LAW OFFICES
356 Fortaleza St., Second Fl.
San Juan, PR 00901
Tel: (787) 977-0515
Fax: (787) 977-0518
E-mail: ccuprill@cuprill.com
About ESJ Towers, Inc.
ESJ Towers, Inc. owns the ESJ Towers in Carolina, P.R. The luxury
apartments and condo units at ESJ Towers have direct access to Isla
Verde Beach, widely considered one of the best in Puerto Rico.
ESJ sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. D.P.R. Case No. 22-01676) on June 10, 2022, with as much as
50 million in both assets and liabilities. ESJ President Keith St.
Clair signed the petition.
Judge Enrique S. Lamoutte Inclan oversees the case.
The Debtor tapped Charles A. Cuprill, Esq., at Charles A. Cuprill,
PSC Law Offices as bankruptcy counsel; Ramon Luis Nieves, Esq., at
RL Legal Consulting Services, LLC and Luis Daniel Muniz, Esq., as
special counsels; Dage Consulting CPAS, PSC as financial advisor;
CPA Luis R. Carrasquillo & Co., P.S.C. as financial consultant; and
De Angel & Compania, PA, LLC as auditor.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Sept. 12, 2022. The committee tapped the
Law Office of Jonathan A. Backman as lead bankruptcy counsel; Julio
Cesar Alejandro Serrano, Esq., at JCAS Law as local counsel; and
Dage Consulting CPAS, PSC as financial advisor.
PUERTO RICO: PREPA Plan Okayed to Start Voting Process
------------------------------------------------------
Michelle Kaske of Bloomberg News reports that US District Court
Judge Laura Taylor Swain ruled a debt plan for Puerto Rico's
bankrupt power utility that would slash $10 billion of claims by
about 75% can move forward, subject to certain modifications.
Judge Swain determined that Puerto Rico Electric Power Authority's
most up-to-date disclosure statement for the plan provides enough
information for bondholders to weigh in on it, although the
island's financial oversight board, which is managing the
bankruptcy, will need to make some adjustments, she said.
On March 1, 2023, the Puerto Rico Electric Power Authority filed
its Plan of Adjustment and the Disclosure Statement related
thereto. On March 3, 2023, the Title III Court entered an order
approving the adequacy of the information contained in the
Disclosure Statement. On November 16, 2023, the Puerto Rico
Electric Power Authority filed its amended Plan of Adjustment and
the Supplemental Disclosure Statement related thereto
The Court on Nov. 17, 2023, granted a motion by PREPA, by and
through the Financial Oversight and Management Board for Puerto
Rico, for an order: (i) approving the proposed Supplemental
Disclosure Statement, (ii) fixing a Voting Record Date for voting
on the Fifth Modified Third Amended Plan, (iii) approving the
Confirmation Hearing Notice, (iv) approving the proposed contents
of the Solicitation Package and procedures for distribution
thereof, (v) approving the forms of ballots and election notice,
and establishing solicitation, voting, election, and balloting
procedures, (vi) approving the form and manner of notice of
non-voting status, (vii) fixing a Voting Deadline and Election
Deadline, (viii) approving procedures for tabulating creditor
votes, and (ix) related relief.
The Plan confirmation hearing will be held on March 4-15, 2024,
at 9:30 a.m. (Atlantic Standard Time). Objections to confirmation
and the ballots are due January 26, 2024 at 5:00 p.m. (Atlantic
Standard Time).
Ballots to vote to accept or reject the Fifth Modified Third
Amended Plan are to be provided to:
a. Assured Guaranty Corp. and Assured Guaranty Municipal Corp.
on account of Assured Insured Bonds & Interest Rate Swap Secured
Claims in Class 4 and Assured Insured Bonds & Interest Rate Swap
Unsecured Claims in Class 5;
b. Syncora Guarantee Inc. on account of Syncora Insured Bonds
Secured Claims in Class 6 and Syncora Insured Bonds Unsecured
Claims in Class 7;
c. National Public Finance Guarantee Corporation on account of
National Insured Bonds Secured Claims in Class 8 and National
Insured Bonds Unsecured Claims in Class 9; and
d. Holders of Claims in Class 1 (First Settlement Bondholder
Claims), Class 2 (Uninsured Bondholder Secured Claims), Class 3
(Uninsured Bondholder Unsecured Claims), Class 10 (Pension
Claim),6
Class 11 (Fuel Line Loan Claims), Class 12 (General Unsecured
Claims), Class 13 (Vitol Claims), and Class 16 (Federal Claims).
Ballots won't be provided to the Holders of Claims in Class 14
(Ordinary Course Customer Claims), Class 15 (Eminent
Domain/Inverse
Condemnation Claims), and Class 17 (Convenience Claims), because
the Holders of these Claims are unimpaired. Ballots also won't be
provided to the Holders of Claims in Class 18 (Section 510(b)
Subordinated Claims), because such Holders will receive no
distributions pursuant to the Fifth Modified Third Amended Plan and
are deemed to reject the Plan.
About Puerto Rico
Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats.
In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.
The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii)
David A. Skeel Jr.
On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's
PROMESA petition is available at
http://bankrupt.com/misc/17-01578-00001.pdf
On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the Title
III cases.
On May 21, 2017, two more agencies -- Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) -- commenced Title III cases.
U.S. Chief Justice John Roberts named U.S. District Judge Laura
Taylor Swain to preside over the Title III cases.
The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.
Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.
Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains the case Website https://cases.primeclerk.com/puertorico
Jones Day is serving as counsel to certain ERS bondholders.
Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.
*********
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 2023. 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 * * *