/raid1/www/Hosts/bankrupt/TCRLA_Public/240411.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, April 11, 2024, Vol. 25, No. 74
Headlines
A R G E N T I N A
ARGENTINA: Tensions Soar as Sacked State Workers React to Lay-offs
B A H A M A S
FTX GROUP: Owner Prosecutor Says Coder's Cooperation Sped Up Case
B R A Z I L
AMERICANAS SA: Begins Paying About 500 Suppliers
BRAZIL: FDI Dips to Four-Year Low in February 2024
C H I L E
CHILE: Port Workers Stage Protests, Threatening Commodity Exports
P U E R T O R I C O
GRUPO HIMA: Plan Exclusivity Period Extended to April 15
ORENGO AIR: Case Summary & 18 Unsecured Creditors
T R I N I D A D A N D T O B A G O
TRINIDAD CEMENT: Not Scared of Competition
U R U G U A Y
CONSORCIO DEL URUGUAY: Moody's Affirms 'Ba2' CFR, Outlook Stable
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A R G E N T I N A
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ARGENTINA: Tensions Soar as Sacked State Workers React to Lay-offs
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Buenos Aires Times reports tensions soared in Buenos Aires as mass
lay-offs at state firms continued and the government deployed
security forces to block dismissed workers from re-entering their
former workplaces.
Security Minister Patricia Bullrich confirmed she had authorized a
security operation to deploy troops to guard public buildings in
response to industrial action by the ATE State Workers'
Association, which said it would call a strike in response to the
government's latest moves, according to Buenos Aires Times.
President Javier Milei's administration is seeking to mitigate the
scale of the protests being launched by unionised state-workers
against the mass dismissal of employees at public agencies and
firms, the report notes.
Demonstrations and assemblies were held at various sites amid
reports that as many as 15,000 contracted workers had been let go
by President Javier Milei's government as party of its austerity
push, the report discloses.
"The final number of contracts that have not been renewed is around
15,000, as part of the work we are doing to reduce state spending,"
Presidential Spokesman Manuel Adorni confirmed at a press
conference, the report relays.
President Milei said that he plans to cut around 70,000 jobs from
the civil service over the next year, the report notes. According
to the INDEC national statistics bureau, Argentina has more than
332,000 state workers, the report relays.
"Javier Milei is making a mistake, he's not firing 'noquis,' but
workers who come to work every day," complained Matias Reynoso, 35,
an employee at the Labour Secretariat, the report says.
Tensions
Tensions peaked outside the offices of the INADI
anti-discrimination agency and the Labour Secretariat. A series of
conflicts were reported throughout the day at both offices, the
report relays.
At INADI, workers forced their way past police and into the
building that houses the agency, the report notes. Fired staff
said that "nearly 40 dismissals" had been ordered so far, the
report relates.
Most of those made redundant were were notified during the long
Easter weekend, said ATE union, the report discloses.
Underlining the cold nature of the lay-offs and the manner in which
they have taken place, reports began circulating of workers being
told of their dismissals via WhatsApp messages and emails, the
report relas. Some arrived at work unaware they were no longer
employed, the report notes.
Employees at the CONICET scientific research council were forced to
line up in the rain outside the buildings at which they work,
before being told one-by-one if they had a job or not, the report
relays. Scenes of the queue quickly went viral on social media,
the report discloses.
Bullrich's portfolio confirmed to local outlets that the goal of
her operation is to "survey all federal buildings" amid reports
that sacked state workers were attempting to regain entry to their
former workplaces, Buenos Aires Times relays.
"They can't usurp something they no longer have," the
often-controversial minister said in a radio interview. She
defended the special security operation, which involved federal
security forces and officers from the Coast Guard, declaring: "We
will protect all public assets," says the report.
On Wednesday morning, as workers at some state firms arrived to
begin a normal day of work, they were confronted with the sight of
Federal Police officers, the report notes.
Government officials said their deployment was due to recent
protests organised by the ATE, with many of its members staging
"peaceful sit-in" demonstrations at agencies, the report
discloses.
'Plan of Action'
Other unions have expressed unease at the mass lay-offs, the report
relays. The head of the CTA Argentine Workers' Union, Hugo
'Cachorro' Godoy, said that its members would stage demonstrations
calling for the re-hiring of the dismissed workers, the report
notes.
The report discloses that the Milei government is closely
monitoring the action of ATE workers and its "plan of action"
against mass public dismissals.
Milei had said that the "plan was to reach zero deficit by 2024"
and that he was "convinced to carry out a fiscal adjustment, which
has a lot of chainsaw and a lot of blender," the report relays.
Sources from the Casa Rosada revealed that given the recent
takeover of offices by dismissed workers and allies, the Federal
Police, the Coast Guard and the Gendarmerie (Border Guard), which
have jurisdiction to intervene, will not hesitate to contain them
and report people, the report notes.
Defence minister Luis Petri warned that any workers occupying
offices after being dismissed will have criminal complaints filed
against them, the report relays.
"They should be held responsible, the time has come for those
committing crimes to be responsible. The rule of law applies to
everyone," he said in a TV interview, the report discloses.
Outside the offices of the Labour Ministry, which has been
downgraded to a Secretariat by Milei, protesters called for the
reinstatement of 14 workers who were recently dismissed, the report
relays.
ATE Secretary General Rodolfo Aguiar denounced 11,000 lay-offs so
far this year, the report relays. He promised to challenge each of
them in the courts, the report notes. Government officials insist
the decisions are "valid," the report discloses.
"Over the weekend we counted over 11,000 dismissals. The President
has decided to shake the Argentine legal system at its core, and
both he and his officials could end up in jail," the union leader
claimed in a post on the X social network, the report relays.
The chief of the ATE, which represents blue-collar state workers,
accused the government of delivering "bringing mass dismissals to
the state" and stated that "suppressing people's fundamental rights
is a conduct defined under the Criminal Code," the report adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
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 March 15, 2024, raised its local currency
sovereign credit ratings on Argentina to 'CCC/C' from 'SD/SD' and
its national scale rating to 'raB+' from 'SD'. S&P also raised its
long-term foreign currency sovereign credit rating to 'CCC' from
'CCC-' and affirmed its 'C' short-term foreign currency rating. The
outlook on the long-term ratings is stable. In addition, S&P
revised its transfer and convertibility assessment to 'CCC' from
'CCC-'.
S&P said the stable outlook on the long-term ratings balances the
risks posed by pronounced economic imbalances and policy
uncertainties with the favorable change in near-term debt service
obligations. S&P also expect no further debt exchanges that it
would likely consider to be distressed.
Fitch Ratings 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 A H A M A S
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FTX GROUP: Owner Prosecutor Says Coder's Cooperation Sped Up Case
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Luc Cohen at Reuters reports that U.S. prosecutors were able to
charge FTX founder Sam Bankman-Fried shortly after the
cryptocurrency exchange's collapse in part because they secured the
cooperation of its chief software engineer, one of the prosecutors
said.
Speaking five days after Bankman-Fried was sentenced to 25 years in
prison, Assistant U.S. Attorney Thane Rehn said former FTX Chief
Technology Officer Gary Wang's assistance was key to helping
investigators understand how Bankman-Fried stole $8 billion in
customer funds, according to Reuters.
"Without that, would we have found it? Probably," Rehn said at a
discussion hosted by law firm Wilson Sonsini, the report notes.
"But it would have taken a software expert weeks or even months."
Jurors in Manhattan found Bankman-Fried, 32, guilty last November
on seven counts of fraud and conspiracy, in what prosecutors termed
one of the biggest financial frauds in U.S. history, the report
relays.
Bankman-Fried is expected to appeal his conviction, after
testifying that he made mistakes in managing risk but never
intended to steal funds, the report discloses. He had been
arrested in December 2022, just one month after FTX's collapse and
bankruptcy, the report says.
Rehn's comments highlighted the importance of the government's
three main cooperating witnesses - Wang, former FTX engineering
chief Nishad Singh, and Caroline Ellison, the former chief
executive of Bankman-Fried's Alameda Research hedge fund, the
report notes. Each pleaded guilty to fraud and testified against
their former boss at his month-long trial.
In his testimony, Wang said Bankman-Fried asked him to change FTX
software code to let Alameda withdraw unlimited funds from the
exchange, the report relays.
The report discloses that Rehn said Wang showed prosecutors code
from his laptop shortly after FTX collapsed.
"This case moved at lightning speed," U.S. Attorney Damian Williams
told reporters after Bankman-Fried's conviction.
Prosecutors are expected to recommend that the trial judge, U.S.
District Judge Lewis Kaplan, take Wang's, Singh's and Ellison's
cooperating into account when sentencing them, the report says.
Wang testified that he hopes to avoid prison. His lawyer, Ilan
Graff, declined to comment.
Bankman-Fried's spokesman Mark Botnick declined to comment.
About FTX Group
FTX is the world's second-largest cryptocurrency firm. FTX is a
cryptocurrency exchange built by traders, for traders. FTX offers
innovative products including industry-first derivatives, options,
volatility products and leveraged tokens.
Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that
FTX paused customer withdrawals after it was hit with roughly $5
billion worth of withdrawal requests.
Faced with liquidity issues, FTX on Nov. 9 struck a deal to sell
itself to its giant rival Binance, but Binance walked away from the
deal amid reports on FTX regarding mishandled customer funds and
alleged US agency investigations.
At 4:30 a.m. on Nov. 11, 2022, Bankman-Fried ultimately agreed to
step aside, and restructuring vet John J. Ray III was quickly named
new CEO.
FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc.
(d/b/a FTX US), Alameda Research Ltd. and certain affiliated
companies then commenced Chapter 11 proceedings (Bankr. D. Del.
Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022.
Additional entities sought Chapter 11 protection on Nov. 14, 2022.
FTX Trading and its affiliates each listed $10 billion to $50
million in assets and liabilities, making FTX the biggest
bankruptcy filer in the US this year.
According to Reuters, SBF shared a document with investors on Nov.
10, 2022, showing FTX had $13.86 billion in liabilities and $14.6
billion in assets. However, only $900 million of those assets were
liquid, leading to the cash crunch that ended with the company
filing for bankruptcy.
The Hon. John T. Dorsey is the case judge.
The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel;
Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal
North America, LLC as financial advisor. Kroll is the claims agent,
maintaining the page https://cases.ra.kroll.com/FTX/Home-Index
The Official Committee of Unsecured Creditors tapped Paul Hastings
as counsel, FTI Consulting, Inc., as financial advisor, and
Jefferies LLC as the investment banker. Young Conaway Stargatt &
Taylor LLP is the Committee's Delaware and conflicts counsel.
Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory
T. Donilon, Edward L. Schnitzer, and David M. Banker, is
representing Sam Bankman-Fried in the Chapter 11 cases.
White-collar crime specialist Mark S. Cohen has reportedly been
hired to represent SBF in litigation. Lawyers at Paul Weiss
previously represented SBF but later renounced representing the
entrepreneur due to a conflict of interest.
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B R A Z I L
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AMERICANAS SA: Begins Paying About 500 Suppliers
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Tais Fuoco of Bloomberg News reports that Americanas started paying
around 500 suppliers on March 14, 2024, Folha de S.Paulo said
without revealing how it obtained the information.
The payment takes place after the company manages to pay off labor
debts and debts owed to micro and small entrepreneurs, according to
the report. The 3 categories make up the first stage of payments
foreseen in the retailer's judicial recovery plan, the amount of
which totals BRL4 billion, Folha de S.Paulo said.
About Americanas SA
Americanas was one of the largest diversified retail chains in
Brazil, with a wide platform of physical stores, robust e-commerce,
fintech, and has just entered into the niche food retail. It is
listed on B3, being indirectly controlled by billionaire Jorge
Paulo Lemann, Carlos Alberto Sicupira and Marcel Telles.
The retailer nosedived in January 2023 after becoming mired in an
accounting scandal. The firm filed for bankruptcy at a court in
Rio de Janeiro on Jan. 19, 2023.
Americanas sought protection under Chapter 15 of the Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 23-10092) on Jan. 25, 2023. White &
Case LLP, led by John K. Cunningham, is the U.S. counsel.
BRAZIL: FDI Dips to Four-Year Low in February 2024
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Richard Mann at Rio Times Online reports that in February 2024,
Brazil saw its Foreign Direct Investment (FDI) fall to $5.0
billion, the lowest February mark since the pandemic's onset in
2020.
This $5.0 billion figure was 30.1% less than the $7.2 billion
recorded in February 2023, according to Rio Times Online.
The breakdown showed $4.5 billion in capital participation and $474
million from intercompany dealings, the report notes.
Despite this slump, the first two months of 2024 together brought
in $13.8 billion in FDI, slightly up by 0.4% from $13.7 billion in
the corresponding period of 2023, the report adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian
general election. He was sworn in on January 1, 2023, as the 39th
president of Brazil, succeeding Jair Bolsonaro.
S&P Global Ratings raised on Dec. 19, 2023, its long-term global
scale ratings on Brazil to 'BB' from 'BB-'. The outlook on the
long-term ratings is stable. S&P affirmed Brazil's global scale
short-term ratings at 'B' and its national scale long-term rating
at 'brAAA'. S&P also raised the transfer and convertibility
assessment on the country to 'BBB-' from 'BB+'. S&P said, "The
stable outlook reflects our expectation that Brazil will maintain
a
strong external position, thanks to strong commodity output and
limited external financing needs. We also believe Brazil's
institutional framework can sustain stable and pragmatic
policymaking based on extensive checks and balances across the
executive, legislative, and judicial branches of government. We
expect a very gradual fiscal correction but anticipate fiscal
deficits will remain large."
Fitch Ratings affirmed on Dec. 15, 2023, Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a Stable
Outlook. Fitch said Brazil's ratings are supported by its large and
diverse economy, high per-capita income, and deep domestic markets
and a large cash cushion that support the sovereign's financing
flexibility and its high local-currency debt share. Strong external
finances support resilience to shocks, underpinned by a flexible
exchange rate, robust international reserves and a sovereign net
external creditor position. The ratings are constrained by weak
economic growth potential, relatively low governance scores, high
and rising government debt/GDP, and budgetary rigidities. A new
fiscal framework introduced this year aims to anchor a gradual
consolidation process and address these fiscal weaknesses, but its
effectiveness is increasingly unclear.
Moody's credit rating for Brazil was last set at Ba2 in 2018 with
stable outlook. Moody's affirmed the Ba2 issuer ratings and
senior unsecured bond ratings in April 2022.
DBRS Inc., on August 15, 2023, upgraded Brazil's Long-Term
Foreign and Local Currency - Issuer Ratings to BB from BB (low).
At the same time, DBRS Morningstar confirmed Brazil's
Short-term Foreign and Local Currency - Issuer Ratings at R-4.
The trend on all ratings is Stable (March 2018).
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C H I L E
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CHILE: Port Workers Stage Protests, Threatening Commodity Exports
-----------------------------------------------------------------
Bloomberg News reports that Chilean port workers staged protests on
Thursday, April 4, disrupting the loading and unloading of ships in
one of the biggest exporters of raw materials from copper and
lithium to pulp and fruit.
A planned 24-hour strike by members of the UPC and FTPC umbrella
unions began around 8 a.m. local time, according to Bloomberg News.
The Ventanas port confirmed activities undertaken by union members
are suspended, the report notes.
Television images showed workers blocking roads near the biggest
port of Valparaiso, the report relays.
Local media reported protests by stevedores in the town of
Talcahuano, the report discloses.
The two unions are pushing authorities to take action over a series
grievances including safety conditions and recent layoffs at
coal-handling facilities associated with the shift away from
thermal power, the report notes.
To be sure, the stoppage was announced earlier, and workers are
scheduled to resume activities, the report relays.
Still, the strike is being touted as a warning, with further
protests possible, the report adds. Copper producers including BHP
Group, Codelco and Anglo American Plc didn't immediately provide
comment on any impact.
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P U E R T O R I C O
=====================
GRUPO HIMA: Plan Exclusivity Period Extended to April 15
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Judge Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for
the District of Puerto Rico extended Grupo Hima San Pablo, Inc.,
and its affiliates' exclusive periods to file a plan of
reorganization and obtain acceptance thereof to April 15 and June
13, 2024, respectively.
As shared by Troubled Company Reporter, the Debtors claim that they
require additional time to negotiate a Plan of Reorganization and
prepare adequate information to allow a creditor to determine
whether to accept such Plan. As stated before, upon the conclusion
of ongoing day-to-day healthcare operations of the estate, the
Debtors are required to do some final reconciliations of the
available funds, with their intent to finalize the plan to be
proposed to their creditors.
The Debtors explain that they are in some ultimate negotiations
with the DIP Lenders, pre-petition lenders and the UCC for this to
be possible. These negotiations entail a reconciliation of
administrative expenses and identifying sources of funds that could
be released by lenders to the estate for the payment of
administrative claims and provide for the formulation of a plan of
reorganization.
Accordingly, the Debtors are currently concluding the final
negotiations with the secured creditor and the UCC, which
ultimately will aid and dictate the contents of a plan. Currently,
this has been an ongoing process, and such work requires an
extension of the Debtors' Exclusive Periods.
Attorneys for the Debtors:
Wigberto Lugo Mender, Esq.
Alexis A. Betancourt Vincenty, Esq.
Lugo Mender Group, LLC
100 Carr. 165 Suite 501
Guaynabo, PR 00968-8052
Tel: (787) 707-0404
Fax: (787) 707-0412
Email: wlugo@lugomender.com
About Grupo Hima San Pablo
Grupo HIMA San Pablo, Inc. serves as a diversified healthcare
services holding company pursuant to a corporate reorganization of
several businesses related by common ownership. Through its
subsidiaries and affiliates, Grupo HIMA San Pablo primarily owns
and operates hospital facilities and other healthcare related
businesses. As of August 2023, the HIMA GROUP operates four
hospitals, with over 1,200 licensed beds, including an Oncological
Hospital, a multi-specialty physician practice management company,
Home Care Service (including infusion therapies and wound care), a
free-standing ambulatory center and a 16-ambulance service
company.
Grupo HIMA San Pablo and its affiliates filed Chapter 11 petitions
(Bankr. D. P.R. Lead Case No. 23-02510) on Aug. 15, 2023. In the
petition signed by its chief executive officer, Armando J.
Rodriguez-Benitez, Grupo HIMA San Pablo disclosed $500 million to
$1 billion in assets and $100 million to $500 million in
liabilities.
Judge Enrique S. Lamoutte Inclan oversees the cases.
Wigberto Lugo Mender, Esq., at Lugo Mender Group, LLC and
Pietrantoni Mendez & Alvarez, LLC serve as the Debtors' bankruptcy
counsel and special counsel, respectively.
The U.S. Trustee for Region 21 appointed an official committee of
unsecured creditors on Sept. 7, 2023. Porzio, Bromberg & Newman,
P.C. is the committee's legal counsel.
Edna Diaz De Jesus is the patient care ombudsman appointed in the
Debtors' Chapter 11 cases.
ORENGO AIR: Case Summary & 18 Unsecured Creditors
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Debtor: Orengo Air Corporation
Parcelas Jauca 245, Calle 3
Santa Isabel, PR 00757
Chapter 11 Petition Date: April 9, 2024
Court: United States Bankruptcy Court
District of Puerto Rico
Case No.: 24-01434
Debtor's Counsel: Jose M Prieto Carballo, Esq.
JPC LAW OFFICES
Cesar Gonzalez # 474
urb Roosvelt
San Juan, PR 00918
Tel: (787) 607-2066
Fax: (787) 200-8837
E-mail: jpc@jpclawpr.com
Total Assets: $2,366,403
Total Liabilities: $5,312,448
The petition was signed by Luis D. Torres Orengo as president.
A full-text copy of the petition containing, among other items, a
list of the Debtor's 18 unsecured creditors is available for free
at PacerMonitor.com at:
https://www.pacermonitor.com/view/NTZQGJI/ORENGO_AIR_CORPORATION__prbke-24-01434__0001.0.pdf?mcid=tGE4TAMA
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T R I N I D A D A N D T O B A G O
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TRINIDAD CEMENT: Not Scared of Competition
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Andrea Perez-Sobers at Trinidad and Tobago Guardian reports that a
Trinidad Cement Ltd (TCL) executive said that the Claxton
Bay-headquartered cement producer is not scared of competition, if
the industry opens up to other cement competitors.
This follows TCL's price increases on February 19 of 6.63 per cent
for Premium Plus and 7.69 per cent for its Eco Cement, according to
Trinidad and Tobago Guardian.
Minister of Trade and Industry Paula Gopee-Scoon announced three
days after the decision that the quota and registration system for
cement had been immediately suspended, the report notes.
She added: "Cement remains on the import negative list and will
continue to be subject to a licensing regime. This regime will be
non-automatic and applications for a licence to import cement must
be submitted to the Minister of Trade and Industry," the report
relays.
She also indicated that imported cement would, in the interim,
continue to be subject to a 20 per cent Common External Tariff
(CET) rate of duty, the report discloses.
Rock Hard Distributors Ltd imported cement for the T&T market but
left in 2021 amid what it said were "challenges" with Government
policy, the report notes.
Speaking exclusively to Guardian media, at the launch of Plasta
Masta a mortar mix product, at Cara Hotel, in Claxton Bay, TCL's
general manager, Guillermo Rojo said the cement company remains
open to competition as CEMEX, which is a Mexican-based company, is
used to operating in a competitive market, the report relays.
"We compete in Guyana, so it is not a problem for the company. We
are ready," a smiling Rojo said, the report says.
Delving deeper into the matter, sales distributor segment manager,
Reshma Gooljar-Singh, said when a competitor enters the market,
CEMEX TCL will have to compete and strategize ways to remain
relevant in the market, the report discloses.
"I cannot say we will lower our price, but I am saying that we have
to do what we have to do, as an organisation to compete. The
cement company is already working assiduously on developing our
product portfolio, we are digitalising our services. The company
is also presenting valuable options to our distributors in leading
the digital charge. CEMEX TCL will have to do what we must do to
compete," Gooljar-Singh explained, the report notes.
About the increases and whether the cement company has seen a dip
in revenue, the TCL's general manager said it has not affected
operations, the report relays.
"We understand the increase we pass to the customer is not even
what our cost increase is, as we have made a lot of valuable
investments. So, we pass to the customer seven per cent, which
honestly has not affected the demand," Rojo said, the report
discloses.
Plasta Masta Enters Market
Rojo at the launch said Plasta Masta, a mortar mix, has been
developed in collaboration with Micro Milling Ltd, the report
relays.
"The concept embodies some of TCL's key strategic priorities
including health, safety, innovation, sustainability and diversity
and inclusion, delivering an all-in-one mortar mix that is safer
and cleaner to use, conserves materials, is better for the
environment and generally makes construction projects simpler for
our customers and other industry stakeholders. In the future
people might move from cement to this product," he highlighted, the
report notes.
Rojo made it clear that the introduction had nothing to do with the
increase in cement prices over a month ago, as this was in the
making for three years, the report says.
Robert de Verteuil, a director of Micro Milling Ltd said that the
Plasta Masta is for convenience and is a consistent product across
the world, the report discloses.
"Instead of the traditional sand and gravel on site, with cement,
mixing up the product on the side of the road, the amount of cement
is not controlled, the amount of sand is not controlled, and it can
lead to a lot of problems with your applications. You can have
hairline cracks, you can have a weaker product. That's where the
Plasta Masta comes in as it applies smoother," de Verteuil added,
the report relays.
Also speaking at the launch was Gooljar-Singh, who said that the
new product was an ideal opportunity to do so as the company
recognised trends in the industry that reflected a need for
products that make construction projects easier and more
convenient, the report notes.
Singh noted that TCL's suggested price to its distributors is $38
VAT inclusive per sack, the report relates.
Packaged in 22.72 kg sacks Plasta Masta will become available at
local hardware stores, the report discloses.
TCL's 2023 Financial Performance
TCL declared audited net income of $170.19 million for its
financial year ended December 31, 2023. That was 195 per cent more
than the $57.80 million the company earned in its 2022 financial
year, the report says.
The company's 2023 revenue of $2.22 billion was 8.16 per cent more
than the $2.06 billion it generated in 2022, the report adds.
About Trinidad Cement Ltd
As reported by the Troubled Company Reporter-Latin America in
March 2023, Trinidad Express noted that President-General of the
Oilfields Workers' Trade Union (OWTU) Ancel Roget is calling for
workers at the Trinidad Cement Ltd (TCL) to be paid outstanding
monies in relation to collective agreements dated back to 2015.
Should this continue to be unpaid, the workers will continue to
protest and strike action is also not off the cards, according to
Trinidad Express. Speaking outside the TCL compound in Claxton Bay
during protest action by retirees and present employees, Roget said
that the outstanding monies include the Cost of Living Allowance
(COLA) and profit sharing over three collective bargaining periods
from 2015 to 2024, the report noted.
=============
U R U G U A Y
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CONSORCIO DEL URUGUAY: Moody's Affirms 'Ba2' CFR, Outlook Stable
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Moody's Ratings has affirmed Consorcio del Uruguay S.A.'s long-term
Corporate Family Rating of Ba2. The outlook remains stable.
RATINGS RATIONALE
The affirmation of Consorcio's Ba2 CFR reflects the resilience of
the company's Financial Profile to changes in the country's
economic conditions, which offsets its small business size and
monoline franchise that could weigh on profitability in times of
low economic activity. Consorcio's financial performance displays
consistently low problem loans, an adequate capital position and a
stable funding structure, which is underpinned by its very narrow
and niche business model - as the only company specialized in
administering savings plans in Uruguay. The dip in profitability
for 2023 will largely be addressed with the on-steaming of new
groups of savings plans, while the historically low level of
inflation and robust labor market will strengthen households' debt
repayment capacity during 2024, supporting Consorcio's good asset
quality metrics.
Consorcio provides specialized credit and savings services to low-
and middle-income class individuals. Local regulations preclude the
company from offering additional products and services. The company
has a steady and predictable access to funding in the form of
savings plans, which are then used by the company to provide
financial resources, which compete with bank loans, to its
customers. The stable nature of the company's funding structure
stems from internal operating guidelines that preclude clients from
withdrawing savings unless they are awarded the financial
resources. As a result, Consorcio faces very low liquidity risk.
In September 2023, Consorcio reported good levels of asset quality
in the last 12 months, with a problem loans to gross loans ratio,
as calculated by Moody's, of 0.56% down from 0.92% one year prior.
The high volume of collateral that clients are required to post in
order to gain access to cash awards is an important credit risk
mitigant behind the structure of this operation. In addition, the
company's mutualized lending framework reduces risk of default in
payments by clients. Clients' validation of income sources to
support the payment of savings plans installments works as
additional protection against delinquencies. In addition, Consorcio
lends predominantly in local currency, therefore, reducing risks of
currency mismatches that are common among Uruguayan banks.
In terms of capitalization, when measured by Moody's preferred
ratio of tangible common-equity (TCE) to total assets, Consorcio's
capital stood at 14.83% in September 2023, almost flat from the
previous year, which reflects prudent internal policies implemented
by shareholders. Consorcio is regulated by the Uruguayan Central
Bank, which also sets conservative capital requirements for the
entity.
Administrative fees are the company's main source of income and are
deducted from clients' payments of savings plans installments. The
company's ratio of net income to average managed assets declined to
0.55% as of September 2023, from the 2.46% average between
2020-2022. This reduction reflected the lag effect related to the
costs for the creation of a new group of savings plan and the
initial inflow of administrative fees on the new group.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
Consorcio's rating could face upward pressure if there is a
significant improvement in the operating environment associated
with its niche industry, also including a meaningful increase of
Consorcio's market share in the Uruguayan financial system, while
not showing consistent and relevant deterioration in profitability,
asset quality and capital metrics.
Negative pressure on Consorcio's rating could emerge from a
substantial deterioration in its earnings generation capacity,
asset quality and capitalization, or in the operating environment.
The principal methodology used in this rating was Finance Companies
Methodology published in November 2019.
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