/raid1/www/Hosts/bankrupt/TCRLA_Public/240415.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, April 15, 2024, Vol. 25, No. 76
Headlines
A R G E N T I N A
ARGENTINA: Amid Crisis, Locals Queue for Iris Scans
ARGENTINA: Milei Seeks 2nd Chance From Congress with Revised Bill
COMPANIA ARGENTINA: TriLinc Global Marks $12.5MM Loan at 54% Off
GAUCHO GROUP: Unveils Strategic Measures to Streamline Operations
HSBC ARGENTINA: Grupo Financiero Buys Firm for US$550 Million
LA RIOJA: Creditors Gear Up for Battle on Missed Bond Payment
SANCOR COOPERATIVAS: TriLinc Global Marks $5.8MM Loan at 26% Off
B R A Z I L
AMERICANAS SA: Lemann Says He's Trying to Save Firm After Fraud
E C U A D O R
WORLDWIDE INVESTMENT: TriLinc Global Marks $4.2MM Loan at 22% Off
E L S A L V A D O R
EL SALVADOR: S&P Affirms 'B-' Long-Term Sovereign Credit Rating
P A N A M A
AES PANAMA: Fitch Cuts IDR to 'BB+', Outlook Stable
P U E R T O R I C O
ESJ TOWERS: Unsecureds Owed $27M to Get $750K in Plan
X X X X X X X X
[*] BOND PRICING: For the Week April 8 to April 12, 2024
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A R G E N T I N A
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ARGENTINA: Amid Crisis, Locals Queue for Iris Scans
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Tomas Viola at AFP News reports that Argentines eyeing a financial
boost are lining up by the thousands to have their irises scanned
in exchange for a few crypto tokens as part of an online biometrics
project under scrutiny in several countries.
Some three million people worldwide have so far provided their iris
data to Worldcoin, an initiative of OpenAI chief Sam Altman, but
few have embraced the project more fervently than Argentines,
according to AFP News.
Half-a-million people across the country have participated since
Worldcoin launched last July, and queues for scans have grown
longer in recent months of fast-shrinking disposable income, the
report notes.
At a shopping centre in Buenos Aires, Juan Sosa stands before a
silver orb to scan his iris in exchange for cryptocurrency, as has
also been done by hundreds of thousands of Argentines battered by
inflation and fiscal adjustment, the report relays.
"I'm doing it because I don't have one peso left, there's no other
reason," mutters Sosa, a 64-year-old martial arts teacher. "I
didn't mean to do it, but because of my age, nobody will give me
work, and I need the money," AFP News notes.
He stands for just a few seconds in front of a silver sphere with a
built-in camera that looks like something out of a science fiction
film: a circular light beam flashes, and soon he will receive his
tokens, the report discloses.
AFP News says that the project seeks to use these iris scans -
unique to each person on Earth - to develop a digital
identification system, a sort of passport that will guarantee the
holder is a real human being and not a bot, thus securing online
transactions.
Volunteers do not provide any other information such as their name,
address or phone number, the report relays. The personal iris data
is encrypted with "state-of-the-art security features" and,
according to Worldcoin, safe, the report notes.
The company says that the "Worldcoin Foundation and its
collaborator Tools for Humanity have never sold, are not selling,
nor will they ever sell any personal data, including biometric
ones," the report says.
Safety Concerns
Tiago Sada, product manager at Tools for Humanity, the company
behind Worldcoin, said: "We've always had and will always have an
open dialogue with regulators on financial and privacy aspects,"
the report discloses.
He also claimed that investigations in different countries "to
check commitment compliance are perfectly normal," the report
says.
Yet Kenya, Spain and Portugal have ordered it to pause collecting
biometric data on their territories pending investigations by
numerous countries into possible privacy concerns, AFP News
relays.
Argentina's own Agency for Access to Public Information has said it
is verifying Worldcoin's "security measures" with a view to
"protecting the privacy of the users," the report notes.
It has yet to make a ruling and has not suspended data collection,
the report notes.
Yet Worldcoin is all the rage in the country, which is suffering
from inflation exceeding 250 percent and is facing severe austerity
measures under new President Javier Milei, the report says.
"There are people going through very tough times, not being able to
make ends meet, but they do these things," said Miriam Marrero, a
42-year-old supermarket cashier, pointing to the orb that has just
scanned her, the report relays. "Sometimes, to have a roof over
your head, you need to do other things to be able to afford it.
Otherwise, in Argentina today, you can't afford a roof."
For volunteering their data, initial participants receive 10 tokens
each of Worldcoin's own cryptocurrency, the WLD, the report notes.
In Argentina, with its notoriously unstable exchange rate, the
value differs wildly; when Sosa and Marrero received theirs, 10
tokens were worth the equivalent of about US$80, the report says.
'Out of Necessity'
Natalia Zuazo, a technology policy specialist and director of
digital consulting firm Salto Agencia, told AFP that Worldcoin was
attracting most volunteers in "countries in crisis . . . the
poorest countries, because people are more likely to enter into
such transactions."
However, biometric data such as the iris, which is unique in every
human being, are "ultra sensitive," warned Zuazo, the report
relays.
"I don't believe that people do not understand in the least the
implications it has; they just do it out of necessity. And there
is also still a very optimistic and magical thing created by the
orb, curiosity," she said, the report discloses.
Zuazo characterises Worldcoin as a "messianic attempt at digital
identity", and she pointed out that: "If you look at the map,
they're obviously going to countries in a crisis, the poorest
countries, because people are more willing to make these
exchanges," AFP News says.
Student Ulises Herrera, 20, said he would never have undergone a
scan without the economic incentive, the report relays.
"The iris is something that cannot be changed and I don't know who
has that data. That's what scares me," he told AFP.
Others are more laid back about it.
"I've been giving my personal data to a bunch of companies for
years, at least these will give me money," joked Federico
Mastronardi, a 33-year-old musician who has just made an
appointment to scan his iris in Buenos Aires, AFP News notes.
Marrero also laughs it off: "I'm not afraid of there being another
version of me in the future - as long as it is improved," adds the
report.
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.
ARGENTINA: Milei Seeks 2nd Chance From Congress with Revised Bill
-----------------------------------------------------------------
Manuela Tobias at Bloomberg News reports that President Javier
Milei circulated a new, scaled-back version of his sweeping reform
bill to Argentine lawmakers, in his clearest tilt toward political
pragmatism since taking power.
The draft floated splits Milei's plan in parts before he resubmits
it to Congress, according to Bloomberg News.
Since Milei's original bill was torn apart by the lower house
Chamber of Deputies in February, his team has met with
congressional members and provincial governors dozens of times to
pin down a final text, Bloomberg News notes. The drawn-out
revision process illustrates Milei's willingness to listen to
lawmakers' input, a pivot from his previous attempts to ram
hundreds of reforms through without prior consensus, Bloomberg News
relays.
"Today we find ourselves confronted with a second chance. We are
confident we are at another level of maturity," Manuel Adorni,
Milei's spokesman, told reporters in Buenos Aires, Bloomberg News
discloses.
Bloomberg News relays that Milei will expand the tax bracket to
include more earners in one fiscal reform bill, complemented by a
watered-down omnibus bill with 279 articles - less than half the
original version - to privatise or partially privatise over a dozen
public companies, notably excluding oil giant YPF SA.
The bill, a copy of which was seen by Bloomberg, also expands the
president's executive powers on energy, economy and finance for one
year. It allows Milei to intervene in the nation's social security
agency and special-purpose federal government funds worth millions
of dollars, Bloomberg News notes. The proposed elimination of the
latter triggered fierce opposition from even moderate lawmakers,
leading to the original bill's defeat in February, Bloomberg News
says.
Lawmakers from moderate blocs say they still need to review the
fine print, however Adorni said the text had won over the most
important stakeholders, Bloomberg News notes. The bills could go
to committee hearings.
Interior Minister Guillermo Francos will meet with the country's
biggest umbrella trade union to discuss a new labor reform, which
was excluded from the new bills, Bloomberg News relays.
Milei tried to overhaul the country's onerous labor laws in a
sprawling December executive decree, but was blocked by the courts
weeks later, Bloomberg News notes. A new bill that includes labour
reforms could come from the moderate Radicales bloc instead, La
Nacion newspaper reported, Bloomberg News adds.
In a Bloomberg News interview, the president said his 4,000 reforms
to deregulate the Argentine state will wait until after next year's
midterm elections if he can't muscle them through now.
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.
COMPANIA ARGENTINA: TriLinc Global Marks $12.5MM Loan at 54% Off
----------------------------------------------------------------
TriLinc Global Impact Fund, LLC has marked its $12,500,000 loan
extended to Compania Argentina de Granos S.A. to market at
$5,723,279 or 46% of the outstanding amount, as of December 31,
2023, according to a disclosure contained in TriLinc Global's Form
10-K for the Fiscal year ended December 31, 2023, filed with the
Securities and Exchange Commission on March 29, 2024.
TriLinc Global is a participant in a Senior Secured Term Loan to
Compania Argentina de Granos S.A. The loan accrues interest at a
rate of 10.45% per annum. The loan was scheduled to mature last
June 30, 2018.
TriLinc Global classified the loan as non-accrual.
TriLinc Global Impact Fund, LLC was organized as a Delaware limited
liability company on April 30, 2012 and formally commenced
operations on June 11, 2013. As a result of the Company's LLC
structure, the Company's unit holders have limited legal and
financial liability for the obligations or debts of the Company.
The Company makes impact investments in Small and Medium
Enterprises, known as SMEs, which the Company defines as those
businesses having less than 500 employees, primarily in developing
economies that provide the opportunity to achieve both competitive
financial returns and positive measurable impact.
The fund is lead by Chief Executive Officer Gloria S. Nelund and
Chief Financial Officer Mark A. Tipton. The fund can be reach
through:
TriLinc Global Impact Fund, LLC
1230 Rosecrans Avenue, Suite 605,
Manhattan Beach, CA 90266
Tel: (310) 997-0580
Compania Argentina de Granos provides planting, logistics,
marketing, and export services to the agricultural sector.
GAUCHO GROUP: Unveils Strategic Measures to Streamline Operations
-----------------------------------------------------------------
Gaucho Group Holdings, Inc. announced a series of strategic
measures to streamline operations and cost efficiencies. These
efforts are expected to yield approximately $1.5 million in expense
savings over the next 12 months, with the anticipation of up to an
additional $1 million in expenses saved in 2025. By eliminating
certain functions and offshoring others to its offices in
Argentina, the Company aims to capitalize on the cost-effective
labor and specialized skills available in the region. Furthermore,
the savings accrued from these strategic initiatives are planned to
be allocated towards marketing expenses, aiming to promote its
portfolio of brands, including Gaucho - Buenos Aires and Maison
Gaucho, Algodon Fine Wines, Algodon Wine Estates, and its
hospitality projects.
This restructuring is not just about cost-saving; it represents a
strategic pivot towards maximizing the potential of Gaucho
Holdings' operations in Argentina, particularly in the realm of
luxury real estate. The Company is poised to recognize revenue
from the deeding of real estate projects in 2025, with a primary
focus on the vineyard estate lots at Algodon Wine Estates in San
Rafael, Mendoza, Argentina. To date, approximately 15% of the
total lots have been sold, leaving significant room for future
sales and development. The potential revenue from these sales,
coupled with interest income from the Company's self-financing
options to buyers, is expected to significantly enhance financial
results in the coming years.
Furthermore, Gaucho Holdings is closely monitoring the evolving
economic landscape in Argentina, particularly the potential
adoption of the USD as the country's primary currency. This shift,
championed by President Milei, could drastically change the
dynamics of the real estate market by enabling leverage through
bank lending, a move that could significantly boost real estate
values across the nation. This transition to a more stable
currency for transactions could unveil substantial growth
opportunities for Gaucho Holdings' real estate assets.
Scott Mathis, CEO and founder of Gaucho Group Holdings, provided
insight into the significance of these developments, stating, "We
anticipate a potential binary event on the horizon that could
markedly enhance Argentina's real estate values: It's a
little-known fact that the Argentine real estate market is
predominantly non-leveraged, a unique characteristic that has
historically shaped its valuation dynamics. The introduction of
leverageâ€"providing the ability for buyers to finance their
purchases with borrowed fundsâ€"could catalyze a significant
boom
in real estate values. This would be a credit to President Milei,
who is pushing to take Argentina away from the peso and use the USD
as its currency. This adoption of the USD could pave the way for
banks to resume their lending activities. Currently, the
volatility and consistent devaluation of the peso deter banks from
lending, as repayments made in a depreciating currency erode the
value of the returned capital. A shift to using the USD could
stabilize the lending environment by offering a more reliable and
sustainable currency for financial transactions. This potential
shift presents an unprecedented opportunity for growth and
investment, underscoring the untapped potential of the market and
positioning our real estate assets for considerable appreciation."
Gaucho Holdings remains committed to its core mission of offering
unparalleled luxury experiences through its diverse portfolio while
fostering sustainable growth and operational excellence. These
strategic initiatives are expected to lay a solid foundation for
the Company's endeavors moving forward, demonstrating a proactive
approach to navigating the challenges and opportunities of the
global market landscape.
About Gaucho Group
Headquartered in New York, NY, Gaucho Group Holdings, Inc.'s
mission has been to source and develop opportunities in Argentina's
undervalued luxury real estate and consumer marketplace. The
Company has positioned itself to take advantage of the continued
and fast growth of global e-commerce across multiple market
sectors, with the goal of becoming a leader in diversified luxury
goods and experiences in sought after lifestyle industries and
retail landscapes. With a concentration on fine wines
(algodonfinewines.com & algodonwines.com.ar), hospitality
(algodonhotels.com), and luxury real estate
(algodonwineestates.com) associated with its proprietary Algodon
brand, as well as the leather goods, ready-to-wear and accessories
of the fashion brand Gaucho - Buenos Aires (gaucho.com), these are
the luxury brands in which Argentina finds its contemporary
expression.
Gaucho reported a net loss of $21.83 million for the year ended
Dec. 31, 2022, compared to a net loss of $2.39 million for the year
ended Dec. 31, 2021. As of Sept. 30, 2023, the Company had $18.91
million in total assets, $11.02 million in total liabilities, and
$7.89 million in total stockholders' equity.
New York, NY-based Marcum LLP, the Company's auditor since 2013,
issued a "going concern" qualification in its report dated April
17, 2023, citing that the Company has a significant working capital
deficiency, has incurred significant losses and needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
The Company's operating needs include the planned costs to operate
its business, including amounts required to fund working capital
and capital expenditures. Based upon projected revenues and
expenses, the Company believes that it may not have sufficient
funds to operate for the next twelve months from the date these
financial statements are made available. Since inception, the
Company's operations have primarily been funded through proceeds
received from equity and debt financings. The Company believes it
has access to capital resources and continues to evaluate
additional financing opportunities. There is no assurance that
the Company will be able to obtain funds on commercially acceptable
terms, if at all. There is also no assurance that the amount of
funds the Company might raise will enable the Company to complete
its development initiatives or attain profitable operations. The
aforementioned factors raise substantial doubt about the Company's
ability to continue as a going concern for a period of one year
from the issuance of these financial statements, according to the
Company's Quarterly Report for the period ended Sept. 30, 2023.
HSBC ARGENTINA: Grupo Financiero Buys Firm for US$550 Million
-------------------------------------------------------------
Buenos Aires Times reports Global bank HSBC has agreed to sell its
Argentina division to financial services company Grupo Financiero
Galicia for US$550 million as it focuses on core Asia operations,
it confirmed.
The final price is subject to some price adjustments, read a
statement, according to Buenos Aires Times. The deal includes all
of HSBC Argentina's business, which ranges from banking to asset
management and insurance, as well as US$100 million of subordinated
debt, the report notes.
"This transaction is another important step in the execution of our
strategy and enables us to focus our resources on higher value
opportunities across our international network," Chief Executive
Noel Quinn said in a statement obtained by the news agency.
The London-listed lender expects to take a US$1-billion pre-tax
loss on the disposal in the first quarter, while the price is
subject to adjustments depending on the performance of the business
before the deal closes, it added, the report relays.
The report discloses that "HSBC Argentina is largely a domestically
focused business, with limited connectivity to the rest of our
international network," Quinn said.
"Furthermore, given its size, it also generates substantial
earnings volatility for the group when its results are translated
into US dollars. Galicia is better placed to invest in and grow the
business," he added, the report relays.
Argentina's economy is plagued by triple-digit annual inflation
that stands at over 200 percent, and a highly volatile peso
currency, the report relays.
The report notes that HSBC added that following the deal's close,
it would write off US$4.9 billion in historical foreign exchange
losses, partly linked to the sharp devaluation of the peso
announced late last year by President Javier Milei.
The Argentina unit has a network of more than 100 branches and
employs 3,100 people. It has around one million customers and
generated revenues last year totalling US$774 million, the report
relays. It made a profit before tax of US$239 million in 2023, the
report recalls.
The impact of the transaction will be excluded from HSBC's dividend
payout calculation, which remains at 50 percent for 2024, the
report notes. It is expected to complete within the next 12
months, the report says.
The report discloses that Quinn said HSBC remained committed to its
business in Mexico and the United States, and to serving
international clients across its global network.
The bank's latest divestment comes after it concluded the sale last
month of its Canadian operations to Royal Bank of Canada for
US$10.1 billion, in a transaction first announced in late 2022, the
report notes.
In Europe, the lender sold its retail banking operations in France
at the start of the year for an undisclosed amount to My Money
Group, which is controlled by the US private equity fund Cerberus,
the report relays.
The report notes that the lender is also exploring the sale of
various businesses in Germany including its wealth-management,
custody and fund administration units, people familiar with the
matter told Bloomberg earlier this month.
The move is part of HSBC's strategy to simplify and refocus
operations on its major region of Asia, the report says.
HSBC in February posted soaring annual profits thanks to ballooning
global interest rates, but also revealed a massive impairment
charge linked to property-sector woes in China, the report
discloses.
The report relays that its performance was rocked by a US$3-billion
impairment linked to its 19 percent stake in China's Bank of
Communications, which was hit by property loan write-offs.
The Argentina disposal is expected to be completed during the next
12 months, and remains subject to conditions including regulatory
approvals, the report adds.
LA RIOJA: Creditors Gear Up for Battle on Missed Bond Payment
-------------------------------------------------------------
Buenos Aires Times reports creditors of Argentina's La Rioja
Province tapped advisers ahead of potential debt talks as they
quibble with officials over more than US$16 million in bond
payments.
Holders of the notes due in 2028 hired Quinn Emanuel Urquhart &
Sullivan, LLP as counsel and requested La Rioja makes good on its
obligation, according to a statement from a committee of creditors,
notes Buenos Aires Times. A counter-proposal made by the province
was already rejected, a spokesperson for the committee said,
without giving further details.
The cash-strapped province missed a US$15.9-million principal bond
payment on February 24, the report notes. It then paid US$10.4
million in interest in late March - though US$500,000 was retained
by the bond trustee, the report relays. The creditors are
demanding the balances of each, the report notes.
A spokesperson for La Rioja Province's governor didn't respond to a
request for comment. BNY Mellon, the trustee, declined to comment.
Tucked in Argentina's northwest and home to some 385,000
inhabitants, La Rioja is among several provinces that have been
affected by President Javier Milei's cuts in federal aid to state
governments as part of a "shock therapy" process he says is needed
to put the economy back on track after decades of mismanagement,
the report discloses.
His policies have unleashed economic pain as he devalued the peso,
announced plans to terminate 70,000 state jobs and done away with
price controls, the report relays. La Rioja's governor has blamed
Milei's austerity plan for forcing him to freeze civil servants'
salaries, the report says.
The country's economy is seen contracting 3.5 percent in 2024,
according to the Central Bank's monthly survey published, the
report relays.
"As it concerns provinces, some names are better equipped than
others to weather the decline in central government transfers, both
discretionary and funds allocated to public works," said Ramiro
Blazquez, head of research at BancTrust & Co, the report
discloses.
The lack of clarity on money flows has dented the reputation of
provincial bonds as a sort of haven for money managers who want to
invest in the country while avoiding the risk of carrying sovereign
debt that's been marred by myriad defaults, the report relays.
They've largely missed out on the massive rally in Argentina debt
since Milei took office in December, the report relates. La
Rioja's notes due in 2028 dropped about four cents to trade at 54
cents on the dollar over that period, according to indicative
pricing compiled by Bloomberg. Sovereign bonds due 2030, meanwhile,
have soared more than 19 cents during the span, the report adds.
SANCOR COOPERATIVAS: TriLinc Global Marks $5.8MM Loan at 26% Off
----------------------------------------------------------------
TriLinc Global Impact Fund, LLC has marked its $5,802,296 loan
extended to Sancor Cooperativas Unidas Ltda to market at $4,289,181
or 74% of the outstanding amount, as of December 31, 2023,
according to a disclosure contained in TriLinc Global's Form 10-K
for the Fiscal year ended December 31, 2023, filed with the
Securities and Exchange Commission on March 29, 2024.
TriLinc Global is a participant in a Senior Secured Term Loan to
Sancor Cooperativas Unidas Ltda. The loan accrues interest at a
rate of 10.67% per annum. The loan was scheduled to mature in July
2019. TriLinc Global classified the loan as non-accrual.
TriLinc Global Impact Fund, LLC was organized as a Delaware limited
liability company on April 30, 2012 and formally commenced
operations on June 11, 2013. As a result of the Company's LLC
structure, the Company's unit holders have limited legal and
financial liability for the obligations or debts of the Company.
The Company makes impact investments in Small and Medium
Enterprises, known as SMEs, which the Company defines as those
businesses having less than 500 employees, primarily in developing
economies that provide the opportunity to achieve both competitive
financial returns and positive measurable impact.
The fund is lead by Chief Executive Officer Gloria S. Nelund and
Chief Financial Officer Mark A. Tipton.
The fund can be reach through:
TriLinc Global Impact Fund, LLC
1230 Rosecrans Avenue, Suite 605,
Manhattan Beach, CA 90266
Tel: (310) 997-0580
SanCor is one of the leading dairy producers in Argentina. It holds
one fifth of the total production in the country, and 90% of the
Argentine exports of dairy products.
===========
B R A Z I L
===========
AMERICANAS SA: Lemann Says He's Trying to Save Firm After Fraud
---------------------------------------------------------------
Bloomberg News reports that Jorge Paulo Lemann, the billionaire
Brazilian dealmaker, said that together with his long-time
partners, he's trying to save retailer Americanas SA after a
massive $5 billion fraud pushed it into bankruptcy protection.
The trio of investors, that includes Marcel Telles and Carlos
Sicupira, have owned Americanas since the early 1980s and their
stake stood at about 30% when the scandal broke, according to the
report.
Now, in the midst of a debt restructuring and recapitalization,
they'll own about half of the business, the report notes.
"We had a crisis in one of our companies, the first company we
bought," Lemann said in reference to Americanas, a bargain price
retailer with stores nationwide, the report relays.
"We have to deal with it. We're dealing with it. It has 30,000
employees so we've got to try to save the company," Lemann added,
notes the report.
The company has cast blame on the previous management team that was
led by Miguel Gutierrez, saying that he misled the board and hid
certain accounts linked to marketing contracts and supply-chain
financing to inflate results, the report discloses. While
Americanas makes up a fraction of Lemann's fortune of some $23
billion, according to the Bloomberg Billionaires Index, the scandal
has been a stain on his long illustrious investing career, the
report adds.
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.
=============
E C U A D O R
=============
WORLDWIDE INVESTMENT: TriLinc Global Marks $4.2MM Loan at 22% Off
-----------------------------------------------------------------
TriLinc Global Impact Fund, LLC has marked its $4,424,931 loan
extended to Worldwide Investments and Representations Winrep S.A.
and Vannapack S.A. to market at $3,470,108 or 78% of the
outstanding amount, as of December 31, 2023, according to a
disclosure contained in TriLinc Global's Form 10-K for the Fiscal
year ended December 31, 2023, filed with the Securities and
Exchange Commission on March 29, 2024.
TriLinc Global is a participant in a Senior Secured Term Loan to
Worldwide Investments and Representations Winrep S.A. and Vannapack
S.A. The loan accrues interest at a rate of 11.75% per annum. The
loan was scheduled to mature last October 25, 2023. TriLinc Global
classified the loan as non-accrual.
TriLinc Global Impact Fund, LLC was organized as a Delaware limited
liability company on April 30, 2012 and formally commenced
operations on June 11, 2013. As a result of the Company's LLC
structure, the Company's unit holders have limited legal and
financial liability for the obligations or debts of the Company.
The Company makes impact investments in Small and Medium
Enterprises, known as SMEs, which the Company defines as those
businesses having less than 500 employees, primarily in developing
economies that provide the opportunity to achieve both competitive
financial returns and positive measurable impact.
The fund is lead by Chief Executive Officer Gloria S. Nelund and
Chief Financial Officer Mark A. Tipton. The fund can be reach
through:
TriLinc Global Impact Fund, LLC
1230 Rosecrans Avenue, Suite 605,
Manhattan Beach, CA 90266
Tel: (310) 997-0580
Worldwide Investments and Representations Winrep S.A. and Vannapack
S.A. are a seafood processing company.
=====================
E L S A L V A D O R
=====================
EL SALVADOR: S&P Affirms 'B-' Long-Term Sovereign Credit Rating
---------------------------------------------------------------
On April 11, 2024, S&P Global Ratings affirmed its 'B-' long-term
and 'B' short-term foreign and local currency sovereign credit
ratings on El Salvador. The outlook on the long-term ratings
remains stable. Our transfer and convertibility assessment remains
'AAA'.
Outlook
The stable outlook indicates S&P's view of balanced risks between
El Salvador's midterm fiscal relief from the debt refinancing
process started in 2022, and persistent fiscal and debt risks as
debt service payments remain high and financing alternatives are
somewhat limited.
Downside scenario
S&P could lower the ratings over the next six to 12 months if it
sees a weakening of the government's ability to secure adequate
funding for its fiscal deficits or of its capacity to undertake the
fiscal adjustment needed to stabilize its very high debt burden.
Upside scenario
S&P could raise the ratings in the next six to 12 months if
comprehensive reforms lead to strong economic performance and
greater clarity about the country's fiscal trajectory, in turn
reducing the financing gap and bolstering the country's debt
payment culture.
Rationale
S&P's affirmation follows the government of El Salvador's
announcement on April 8 of a debt repurchase offer to partially buy
back three sovereign bonds maturing 2025, 2027, and 2029. The bonds
have a total outstanding value of $1.7 billion ($347 million due
2025, $800 million due 2027, and $601 million due 2029).
S&P said, "We consider the transaction an opportunistic debt
reprofiling and akin to a liability management operation. We
continue to expect that the government will meet its debt service
payments over the next 12 months. This is consistent with our
approach toward debt repurchases that El Salvador did in 2022. The
government plans to issue a new international bond up to US$1
billion to obtain funds for the debt repurchase.
In the announcement on April 8, the government offered to buy back
the 2025 bond at 99.125 cents on the dollar and the 2027 and 2029
bonds at 91.0 cents on the dollar--slightly above market prices.
According to the announcement, it will give preference to offers to
tender the 2025 bond first, then the 2027, and finally the 2029.
Although, it can ultimately decide how much it repurchases from
each bond. S&P understands that investors who do not accept the
offer will maintain the right to receive the full payment amount at
each bond's maturity date.
The recently announced tender offer is another step in the broad
debt reprofiling process that began in 2022, with two external debt
repurchases in late 2022, a pension debt exchange in the first half
of 2023, and a short-term debt refinancing strategy started in
October 2023. S&P deemed the pension debt exchange to be a
distressed exchange.
Despite the fiscal relief coming from these measures, the country's
public finances remain fragile, reflecting long-term structural
vulnerabilities. The rating on El Salvador incorporates the
country's institutional weaknesses, as indicated by difficulties in
predicting policy responses amid poor checks and balances, modest
per capita GDP at $5,300, and only moderate GDP growth prospects
due to persistently low investment and productivity.
In addition, the sovereign has a very high debt burden, around 70%
of GDP (including debt with pension funds). It also lacks monetary
flexibility because of full dollarization.
The government remains in talks with the IMF and could enter into a
program during the second half of the year.
===========
P A N A M A
===========
AES PANAMA: Fitch Cuts IDR to 'BB+', Outlook Stable
---------------------------------------------------
Fitch Ratings has downgraded Empresa de Transmision Electrica S.A's
(ETESA) Elektra Noreste, S.A.'s (ENSA) and AES Panama Generation
Holdings, S.R.L.'s (AESPGH) Long-Term Local and Foreign Currency
Issuer Default Ratings (IDR) to 'BB+' from 'BBB-'. The Outlooks are
Stable.
The rating actions follow Fitch's downgrade of Panama's sovereign
IDR to 'BB+' from 'BBB-' on March 28 2024. The sovereign downgrade
reflected evolving governance challenges, large fiscal deficits and
revenue underperformance resulting in increased government debt/GDP
and higher interest/revenues.
KEY RATING DRIVERS
Sovereign-Driven Downgrades: The downgrades reflect Fitch's view of
stronger linkages between each company's credit profile and the
sovereign rating amid a deteriorating operating environment (OE,
assessed at 'bb+') as well as either full or partial corporate
government ownership or the systemic receipt of government
subsidies and financial support.
Panama's 'bb+' OE provides a key asymmetric rating consideration
for regulated utilities in Latin America, and weighs particularly
heavily on companies with direct exposure to a host government and
through wholly domestic operations. Fitch expects that further
deterioration in Panama's OE or further downgrade of the IDR would
likely result in further corporate downgrades.
ETESA's Ratings Downgraded: ETESA's ratings reflect its strong
linkage with Panama due to the government's 100% ownership of the
company and history of financial support through direct lending and
not extracting dividends. As per Fitch's government-related
entities (GRE) criteria, the agency views the decision making and
oversight and precedents of support as very strong, and the
preservation of provision of public service or sovereignty or
strategic assets and contagion risk as strong.
These combined factors result in a GRE assessment score of 40 (45
being the highest achievable), indicating that ETESA's rating is
capped by that of the sovereign. Fitch has also revised the
company's Standalone Credit Profile down to 'bb+' from 'bbb-'.
However, even if to the SCP is further reduced, the ratings would
still be equalized with the sovereign rating up to a maximum
four-notch differential.
ENSA's Ratings Downgraded: ENSA is one of Panama's three
electricity distributor companies and distributes a material 40% of
average annual electricity to 41% of total customers. The company's
ratings reflect strong linkage to Panama's credit quality as it is
a regulated utility with entirely domestic cash flows supported, in
part, by structural government subsidies (5% of ongoing revenues).
ENSA is 51% owned by Empresas Publicas Medellin (EPM, BB+/Rating
Watch Negative) and 49% by the government of Panama.
Fitch rates ENSA on a standalone basis from its controlling parent
due to ENSA's relative financial and operational independence from
EPM. However, their IDRs are now equalized, in part, due to the
100% blended ownership structure of 'BB+'-rated credit quality of
both major shareholders.
Fitch does not currently anticipate changes to the country's
regulatory structure that governs ENSA's tariff-driven revenue
regime, led by independent regulator Autoridad Nacional de los
Servicios Publicos. However, the company is highly exposed to
potential adverse changes that could weaken this structure or
dilute the rate of subsidy receipts in favor of other priorities.
As a distribution company and front-lines service provider, ENSA is
exposed to shifts in customer consumption and payment rates, which
could weaken amid Fitch's perceived deteriorating OE. Fitch
nonetheless estimates yoy improved EBITDA and reduced leverage
attributable to higher consumption from hot weather and a higher
rate of value added from distribution tariff compensation,
currently authorized through 2026.
AESPGH's Ratings Downgraded: AESPGH is the country's largest energy
producer, yielding an annual average almost 40% of national
generation volumes through a diversified and balanced mix of
generation resources. Fitch views exposure to direct governmental
control as heightened amid the sovereign downgrade, given the
government's 51% ownership stake in operating company AES Panama
S.R.L. (hydroelectric assets). Fitch estimates this ownership
amounts to oversight of 20% of company-wide decision making that
affects roughly 58% of revenues (including intercompany sales to
Changuinola) through the government's ability to perform certain
corporate processes.
Per Fitch's understanding, major decisions, such as changes to AES
Panama SRL's articles of association, amendments to by-laws,
approval of mergers, asset sales, and dividend payments, among
others, require unanimous approval from the board, where the
government controls two (of five) board seats. Though AESPGH
(through Global Power Holdings) is a minority shareholder of 49.1%
of Panama SRL, it nonetheless controls three board seats.
Fitch also views inherent linkage to Panama's sovereign credit
quality based on AESGPH's position as a regulated generation
company with domestic cash flows, market dominance and essentiality
and an upstream exposure to government subsidies received by
regulated distribution company off-takers, which account for 79% of
AES Panama and 59% of AES Colon sales.
The company is Panama's sole liquid natural gas (LNG) supplier, and
EBITDA from the growing business of storage, transportation and
sales of LNG account for a strong average 45% portion of the
company's financial structure. LNG customers are largely domestic
clients, but also include vessels and exports.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer
Include
ETESA:
- 30-year Treasury rate will be 3.4% from 2023-2026;
- Fourth transmission line will be built and operated by a third
party and enter into service in 2025;
- 30% annual tax rate;
- Debt issuances post-2022 priced at interest rates of between 8.5%
and 9.0%;
- Negative free cash flow (FCF) in every forecast year due to heavy
average annual capex of USD121 million;
- Year-end cash balances averaging USD78 million annually and no
dividends paid to government through the rating horizon
- Service interruption payments stable at USD3 million per year.
ENSA:
- Energy sales volumes grow at an average of 2.9% between 2023 and
2026, or between 3,600 to 3,900 GWh per year;
- 100% of previous year's net income paid in dividends, with
year-end cash averaging around USD7 million;
- A new tariff effective 2H23-1H26 (delayed one year but
retroactive from 1H22) increases the VAD by a net impact of 18.6%,
including government subsidies;
- All near-term maturing short- and long-term debt will be
refinanced prior to maturity;
- Government subsidies will comprise around 5% of annual revenues;
- Capex of USD200 million between 2024 and 2026, concentrated in
2024-2025.
AESPGH:
- Monomic contract prices through 2026 for each company are
USD100/MWh for AES Panama SRL; USD114/MWh for AES Changuinola; and
USD108/MWh for AES Colon;
- Long-term hydro and renewable purchased power agreement (PPA)
prices have fixed prices where some adjust with inflation and
prices for capacity are fixed with no change over the life of the
contract;
- Expiring large user hydro PPAs will be renewed with similar
terms;
- Thermal PPA prices adjust based on the cost of fuel and capacity
prices are fixed;
- Spot prices to approximate USD100/MWh in 2023 then gradually step
down yoy as new system capacity is added with the onset of the
natural-gas fired Generadora Gatun plant;
- Generadora Gatun, a 670MW LNG fired plant, enters operation in
2H24 and contracts LNG storage with Costa Norte. AESPGH will
purchase energy from the spot market at projected costs to offset
the step-down in production at the AES Colon plant;
- No significant asset sales occur during the rating horizon
without corresponding debt rebalancing;
- Debt amortizes for the AESPGH bond and a USD50 million Costa
Norte term loan;
- Year-end cash estimated approximating USD65 million;
- Net dividends (less shareholder contributions) average USD175
million through 2027. Dividends to government as 51% shareholder in
operating company AES Panama SRL average USD39 million per year, or
an approximate 23% of total company net dividends.
RATING SENSITIVITIES
ETESA
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Due to the company's close relationship with the Panamanian
government, positive sovereign rating action could result in
positive action on the company's rating.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Due to the company's close relationship with the Panamanian
government, negative sovereign rating action could put downward
pressure on the company's rating;
- A deterioration of the SCP to four notches or more below the
sovereign.
ENSA
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improvement of gross leverage to less than 2.5x on a sustained
basis.
- Upgrade of Panama's sovereign rating or greater disassociation
from the government.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Weakening of gross leverage to above 3.5x on a sustained basis;
- Adverse government intervention in the sector that weakens the
regulatory framework;
- Increased reliance on government subsidies coupled with a
downgrade of the sovereign.
AESPGH
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Sustained gross leverage below 3.0x over the medium term.
- A conservative contracting strategy that promotes cash flow
stability and the ability to withstand hydrological shocks to the
system.
- Continued evidence of sustainable spot price stabilization as a
result of asset diversification in the Panamanian electricity
matrix.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Sustained gross leverage above 4.0x and net leverage above 3.5x
over the medium term.
- Adverse government intervention in the sector that weakens the
regulatory framework.
- A downgrade of the sovereign rating.
- Deterioration in the company's ability to mitigate spot-market
risk.
- Payment of dividends coupled with high leverage levels.
LIQUIDITY AND DEBT STRUCTURE
ETESA
Solid Liquidity: The company reported 3Q23 cash balance of USD133.5
million. It has a comfortable debt maturity profile, with its first
major debt maturity of USD75 million coming due in 2026.
ENSA
Well-Managed Liquidity: ENSA's relatively low minimum annual cash
balance of around USD5 million-USD10 million per year is
supplemented by access to over USD300 million in uncommitted credit
lines from multiple financial institutions. At any given time, the
company utilizes only up to around 36% of its available credit.
Long-term financial obligations include a USD80 million bond due
2027, a USD100 million bond due in 2036, and a USD50 million
variable rate loan to the International Development Bank due in
July 2025. Fitch expects the company to refinance all long-term
debt well before maturity and based on optimal market conditions.
The company's USD200 million in short-term debt is broken into
individual loans that will similarly be rolled into either new
short-term or long-term debt pending optimal interest rates. ENSA
pays the majority of its net income in dividends.
AESPGH
Solid Liquidity: Fitch expects the combined company to generate
strong free cash flow (FCF) of an average annual USD55 million in
years 2023-2025, after capex and conservative dividend distribution
assumptions. FCF will be nearly sufficient to support ongoing
near-term annual debt amortizations, and remain supportive of an
overall solid yoy liquidity position that Fitch assumes should be
sustained at around USD65 million or above per year. The combined
companies held a robust USD152 million in readily-available cash
and equivalents as of Sept. 30, 2023. The majority of the company's
debt is long term, with just over USD1.2 billion due in 2030.
ISSUER PROFILE
ETESA is a 100% state-owned electricity transmission company with a
monopoly on the transmission, dispatch, control and demand planning
for Panama's interconnected electricity generation system. ETESA is
responsible for processing and awarding bids for energy purchases
on behalf of the electricity distributors.
ENSA is one of Panama's three electricity distribution companies.
Its concession area covers 39% of the country, spanning parts of
Panama City and the provinces north and east of the capital. It
serves 41% of the country's customers and commands 40% of total
national annual energy sales.
AESPGH is indirectly owned by The AES Corporation to finance
operations in Panama and is the issuer of USD1.38 billion
amortizing notes. AESPGH owns and operates the largest portfolio of
electricity generation and LNG assets in Panama. Its operating
assets include AES Panama S.R.L., Changuinola S.R.L and AES Colon,
comprised of Gas Natural Atlantico and Costa Norte LNG Terminal
S.R.L.
ESG CONSIDERATIONS
ETESA, ENSA and AESPGH each have an ESG risk score of '4' for
Governance Structure, due to their partial and/or majority
government-owned corporate structure, and the inherent governance
risk that arises with a material or dominant state shareholder,
which has a negative impact on the credit profile, and is relevant
to the ratings in conjunction with other factors.
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
----------- ------ -----
AES Panama Generation
Holdings, S.R.L. LT IDR BB+ Downgrade BBB-
LC LT IDR BB+ Downgrade BBB-
senior secured LT BB+ Downgrade BBB-
Elektra Noreste, S.A. LT IDR BB+ Downgrade BBB-
LC LT IDR BB+ Downgrade BBB-
senior unsecured LT BB+ Downgrade BBB-
Empresa de
Transmision
Electrica S.A. LT IDR BB+ Downgrade BBB-
LC LT IDR BB+ Downgrade BBB-
senior unsecured LT BB+ Downgrade BBB-
=====================
P U E R T O R I C O
=====================
ESJ TOWERS: Unsecureds Owed $27M to Get $750K in Plan
-----------------------------------------------------
ESJ Towers, Inc., d/b/a Mare St. Clair Hotel, filed a Second
Amended Plan as Supplemented under Section 1121 of Title 11 of the
United States Code.
Under the Plan, Class 6 Allowed General Unsecured Claims total
$26,898,382. From the proceeds of the sale of Debtor's assets,
Debtor will carve out $750,000 to be distributed on the Effective
Date, pro-rata, among the Holders of Allowed General Unsecured
Claims, including the claims of BMF Capital, LLC, Green Capital
Funding and High-Speed Capital, and any deficiency claim, of
Parliament High Yield Fund, LLC, Acrecent, Colebrook, and
Oriental.
In addition on behalf of Holders of Allowed General Unsecured
Claims Debtor's Claims and Causes of Action, including those under
Chapter 5 of the Bankruptcy Code, Sections 542, 544, 545, 458, 549,
550 and 553, subject to any liens thereon, collection of money
actions will be transferred to the Committee for the benefit of the
Holders of Allowed General Unsecured Claims any net proceeds
arising therefrom to be distributed pro rata to the members of
Class 6. If for any reason the Committee is not reconstituted by
April 30, 2024, Debtor will prosecute such Claims and Causes of
Action on behalf and for the benefit of Holders of Allowed General
Unsecured Claims. If Debtor does not prevail on any pending
Objection to Claims, those Allowed Claims will be included in this
Class, and will receive, their pro-rata share of the $750,000 carve
out. Class 6 is impaired.
The Plan is supported and funded by the proceeds of the sale of
substantially all of Debtor's assets. After payment of
Administrative Expense Claims, Priority Claims and Priority Tax
Claims, and those in Classes 1 through 7, as applicable and set
forth above, Debtor shall transfer the its Claims and Causes of
Actions to the Litigation Trust for the Administrator to use any
proceeds arising therefrom as an additional pro-rata dividend to
Holders of Allowed General Unsecured Claims, after paying the
Administrator, and the Committee's personnel, including
professionals.
Counsel for the Debtor:
CHARLES A. CUPRILL P.S.C.
LAW OFFICES
356 Fortaleza Street
Second Floor
San Juan, PR 00901
Tel.: (787) 977-0515
Fax: (787) 977-0518
Eâ€"mail: ccuprill@cuprill.com
A copy of the Second Amended Plan dated March 27, 2024, is
available at https://tinyurl.ph/ybpqC from PacerMonitor.com.
About ESJ Towers
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 U.S. 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.
The Debtor filed its Chapter 11 plan of reorganization and
disclosure statement on June 1, 2023.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week April 8 to April 12, 2024
--------------------------------------------------------
Issuer Name Cpn Price Maturity
Cntry Curr
---------- --- ----- --------
----- ----
Aeropuerto de Tocumen 5.1 69.7 8/11/2061 PA USD
Aeropuerto de Tocumen 4.0 70.9 8/11/2041 PA USD
Aeropuerto de Tocumen 5.1 69.7 8/11/2061 PA USD
Aeropuerto de Tocumen 4.0 70.3 8/11/2041 PA USD
AES Tiete Energia SA 6.8 0.7 4/15/2024 BR BRL
Agile Group Holdings 5.8 16.3 1/2/2025 KY USD
Agile Group Holdings 6.1 13.4 10/13/2025 KY USD
Agile Group Holdings 5.5 13.0 5/17/2026 KY USD
Agile Group Holdings 7.9 3.3 KY USD
Agile Group Holdings 5.5 15.0 4/21/2025 KY USD
Agile Group Holdings 7.8 3.3 KY USD
Alfa Desarrollo SpA 4.6 74.5 9/27/2051 CL USD
Alfa Desarrollo SpA 4.6 74.7 9/27/2051 CL USD
Alibaba Group Holding 3.2 65.4 2/9/2051 KY USD
Alibaba Group Holding 2.7 68.6 2/9/2041 KY USD
Alibaba Group Holding 3.3 62.9 2/9/2061 KY USD
AMTD IDEA Group 1.5 7.5 KY USD
AMTD IDEA Group 4.5 55.3 KY SGD
Amwaj 6.4 71.6 KY USD
Amwaj 4.5 50.9 KY USD
Argentina Bonar Bonds 1.0 43.7 7/9/2029 AR USD
Argentina Treasury Dual 3.3 45.8 4/30/2024 AR USD
Argentine Bonos del Tesoro 15.5 40.3 10/17/2026 AR ARS
Argentine Gov't Int'l Bond 1.0 47.5 7/9/2029 AR USD
Argentine Gov't Int'l Bond 0.5 41.9 7/9/2029 AR EUR
Argentine Gov't Int'l Bond 0.1 42.5 7/9/2030 AR EUR
Ascent Finance 1.2 61.0 7/12/2047 KY EUR
Ascent Finance 3.4 66.6 2/6/2043 KY AUD
Ascent Finance 3.8 67.9 6/28/2047 KY AUD
Astra Cumulative 2019 1.5 62.1 11/1/2029 KY USD
At Home Cayman 11.5 69.3 5/12/2028 KY USD
At Home Cayman 11.5 70.6 5/12/2028 KY USD
AYC Finance 3.9 63.2 KY USD
Banco Davivienda SA 6.7 65.8 CO USD
Banco Davivienda SA 6.7 70.3 CO USD
Banco de Chile 2.7 75.1 3/9/2035 CL AUD
Banco del Estado de Chile 3.1 71.2 2/21/2040 CL AUD
Banco del Estado de Chile 2.8 67.7 3/13/2040 CL AUD
Banco Nacional de Panama 2.5 75.4 8/11/2030 PA USD
Banco Nacional de Panama 2.5 75.2 8/11/2030 PA USD
Banco Santander Chile 3.1 71.2 2/28/2039 CL AUD
Banco Santander Chile 1.3 73.9 11/29/2034 CL EUR
Banda de Couro Energetica 8.0 55.1 1/15/2027 BR BRL
Baraunas II Energetica S/A 8.0 12.5 1/15/2027 BR BRL
Bishopsgate Asset Finance 4.8 66.9 8/14/2044 KY GBP
Bolivian Gov'tInt'l Bond 4.5 58.3 3/20/2028 BO USD
Bolivian Gov'tInt'l Bond 7.5 59.4 3/2/2030 BO USD
Bolivian Gov'tInt'l Bond 4.5 58.5 3/20/2028 BO USD
Bolivian Gov'tInt'l Bond 7.5 59.5 3/2/2030 BO USD
Bonos Para La Reconstruccion 5.0 63.6 10/31/2027 AR USD
Bonos Para La Reconstruccion 3.0 60.5 5/31/2026 AR USD
Bonos Para La Reconstruccion 5.0 51.9 10/31/2027 AR USD
Brazilian Gov't Int'l Bond 4.8 74.1 1/14/2050 BR USD
BRF SA 5.8 78.1 9/21/2050 BR USD
BRF SA 5.8 78.1 9/21/2050 BR USD
Caja de Compensacion 2.4 49.6 4/5/2025 CL CLP
Camposol SA 6.0 72.3 2/3/2027 PE USD
Camposol SA 6.0 72.6 2/3/2027 PE USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.4 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.9 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.8 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.2 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.5 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.9 1/31/2031 KY USD
CFLD Cayman Investment 2.5 3.5 1/31/2031 KY USD
CFLD Cayman Investment 2.5 2.2 1/31/2031 KY USD
Chile Gov'tInt'l Bond 3.5 72.7 1/25/2050 CL USD
Chile Gov'tInt'l Bond 3.1 73.6 5/7/2041 CL USD
Chile Gov'tInt'l Bond 3.1 62.8 1/22/2061 CL USD
Chile Gov'tInt'l Bond 3.5 72.3 4/15/2053 CL USD
Chile Gov'tInt'l Bond 1.3 67.4 1/29/2040 CL EUR
Chile Gov'tInt'l Bond 1.3 54.0 1/22/2051 CL EUR
Chile Gov'tInt'l Bond 3.3 62.9 9/21/2071 CL USD
Chile Gov'tInt'l Bond 1.3 74.4 7/26/2036 CL EUR
China Yuhua Education Corp 0.9 65.1 12/27/2024 KY HKD
CK HutchisonInt'l 19 II 3.4 74.4 9/6/2049 KY USD
CK HutchisonInt'l 19 II 3.4 74.4 9/6/2049 KY USD
CK HutchisonInt'l 20 3.4 74.1 5/8/2050 KY USD
CK HutchisonInt'l 20 3.4 74.1 5/8/2050 KY USD
Colombia Gov't Int'l Bond 4.1 61.2 5/15/2051 CO USD
Colombia Gov't Int'l Bond 3.9 57.2 2/15/2061 CO USD
Colombia Gov't Int'l Bond 5.2 72.4 5/15/2049 CO USD
Colombia Gov't Int'l Bond 4.1 66.7 2/22/2042 CO USD
Colombia Gov't Int'l Bond 7.3 71.1 10/26/2050 CO COP
Colombia Gov't Int'l Bond 6.3 73.3 7/9/2036 CO COP
Colombia Gov't Int'l Bond 7.3 71.1 10/26/2050 CO COP
Colombia Gov't Int'l Bond 5.0 71.6 6/15/2045 CO USD
Colombia Gov't Int'l Bond 6.3 73.3 7/9/2036 CO COP
Colombia Telecomunicaciones 5.0 67.5 7/17/2030 CO USD
Colombia Telecomunicaciones 5.0 67.5 7/17/2030 CO USD
Colombian TES 7.3 70.9 10/26/2050 CO COP
Colombian TES 6.3 73.1 7/9/2036 CO COP
Coopeucha 4.6 38.3 6/1/2029 CL CLP
CODELCO 3.7 67.4 1/30/2050 CL USD
CODELCO 3.2 61.0 1/15/2051 CL USD
CODELCO 3.7 67.3 1/30/2050 CL USD
CODELCO 3.2 61.0 1/15/2051 CL USD
CODELCO 3.6 74.7 7/22/2039 CL AUD
Earls Eight 0.1 64.5 12/20/2031 KY AUD
Earls Eight 1.7 72.4 6/20/2032 KY AUD
Ecopetrol SA 5.9 73.6 5/28/2045 CO USD
Ecopetrol SA 5.9 70.5 11/2/2051 CO USD
El Salvador Gov'tInt'l Bond 7.1 68.3 1/20/2050 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.0 9/21/2034 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.8 2/1/2041 SV USD
El Salvador Gov'tInt'l Bond 5.9 65.1 1/30/2025 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.6 9/21/2034 SV USD
El Salvador Gov'tInt'l Bond 7.1 68.4 1/20/2050 SV USD
El Salvador Gov'tInt'l Bond 7.6 72.9 2/1/2041 SV USD
Embotelladora Andina SA 6.5 23.2 6/1/2026 CL CLP
EFE 3.8 65.7 9/14/2061 CL USD
EFE 3.1 59.8 8/18/2050 CL USD
EFE 3.1 59.8 8/18/2050 CL USD
EFE 3.8 65.8 9/14/2061 CL USD
EFE 6.5 11.1 1/1/2026 CL CLP
ETESA 5.1 71.5 5/2/2049 PA USD
ETESA 5.1 72.2 5/2/2049 PA USD
Metro SA 3.7 65.1 9/13/2061 CL USD
Metro SA 3.7 65.0 9/13/2061 CL USD
Metro SA 5.5 50.1 7/15/2027 CL CLP
Metro SA 5.0 63.8 5/11/2025 AR USD
ENAP 4.5 73.2 9/14/2047 CL USD
ENAP 4.5 73.2 9/14/2047 CL USD
ENA Master Trust 4.0 70.5 5/19/2048 PA USD
ENA Master Trust 4.0 70.9 5/19/2048 PA USD
Enel Generacion Chile SA 6.2 29.2 10/15/2028 CL CLP
Equatorial Energia 10.9 1.1 10/15/2029 BR BRL
Equatorial Energia 10.8 1.0 5/15/2028 BR BRL
Esval SA 3.5 13.1 2/15/2026 CL CLP
Farfetch 3.8 4.3 5/1/2027 KY USD
Fospar S/A 6.5 1.4 5/15/2026 BR BRL
GDM Argentina SA 2.5 0.0 9/8/2024 AR USD
GDS Holdings 4.5 67.7 1/31/2030 KY USD
Generacion Mediterranea SA 4.6 0.0 11/12/2024 AR ARS
General Shopping Finance 10.0 66.2 KY USD
General Shopping Finance 10.0 65.0 KY USD
Genneia SA 2.0 56.9 7/14/2028 AR USD
Greenland Hong Kong 10.2 13.4 KY USD
Guacolda Energia SA 4.6 70.5 4/30/2025 CL USD
Guacolda Energia SA 10.0 70.1 12/30/2030 CL USD
Guacolda Energia SA 4.6 71.8 4/30/2025 CL USD
Guacolda Energia SA 10.0 70.1 12/30/2030 CL USD
Hector A Bertone SA 1.9 0.0 4/7/2024 AR USD
Hilong Holding 9.8 68.7 11/18/2024 KY USD
Hilong Holding 9.8 69.7 11/18/2024 KY USD
Hilong Holding 9.8 69.4 11/18/2024 KY USD
Multiplo SA 3.3 59.5 BR USD
Itau Unibanco SA/Nassau 5.8 20.2 5/20/2027 BR BRL
Jamaica Gov't Bond 6.3 67.8 7/11/2048 JM JMD
Jamaica Gov't Bond 8.5 73.0 12/21/2061 JM JMD
Lani Finance 1.7 63.5 3/14/2049 KY EUR
Lani Finance 1.9 66.9 10/19/2048 KY EUR
Lani Finance 3.1 66.1 10/19/2048 KY AUD
Lani Finance 1.9 65.8 9/20/2048 KY EUR
Link Finance Cayman 2009 2.2 70.0 10/27/2038 KY HKD
LIPSA Srl 1.0 0.0 8/23/2024 AR USD
Logan Group Co 7.0 5.1 KY USD
Longfor Group Holdings 4.0 43.3 9/16/2029 KY USD
Longfor Group Holdings 3.4 56.1 4/13/2027 KY USD
Longfor Group Holdings 3.9 38.4 1/13/2032 KY USD
Longfor Group Holdings 4.5 53.1 1/16/2028 KY USD
Luminis III 2.3 41.8 9/22/2048 KY USD
Luminis III 2.4 55.3 9/22/2048 KY AUD
Luminis IV 3.2 70.4 1/22/2042 KY AUD
Luminis 2.3 54.8 9/22/2048 KY AUD
Lunar Funding I 1.7 8/11/2056 KY GBP
MTR Corp CI 2.8 73.3 9/6/2047 KY HKD
MTR Corp CI 3.0 73.1 3/11/2051 KY HKD
MTR Corp CI 3.0 75.4 4/26/2047 KY HKD
MTR Corp CI 3.2 73.7 2/5/2055 KY HKD
MTR Corp CI 3.0 73.1 3/11/2051 KY HKD
NIO Inc 4.6 73.1 10/15/2030 KY USD
Panama Gov'tInt'l Bond 4.5 63.1 4/1/2056 PA USD
Panama Gov'tInt'l Bond 2.3 70.2 9/29/2032 PA USD
Panama Gov'tInt'l Bond 3.9 55.8 7/23/2060 PA USD
Panama Gov'tInt'l Bond 4.5 64.9 4/16/2050 PA USD
Panama Gov'tInt'l Bond 4.5 62.0 1/19/2063 PA USD
Panama Gov'tInt'l Bond 4.5 66.6 5/15/2047 PA USD
Panama Gov'tInt'l Bond 4.3 62.6 4/29/2053 PA USD
Peruvian Gov'tInt'l Bond 3.6 71.8 3/10/2051 PE USD
Peruvian Gov'tInt'l Bond 2.8 57.3 12/1/2060 PE USD
Peruvian Gov'tInt'l Bond 3.2 57.3 7/28/2121 PE USD
Peruvian Gov'tInt'l Bond 3.6 65.7 1/15/2072 PE USD
Peruvian Gov'tInt'l Bond 3.3 74.3 3/11/2041 PE USD
Petroleos del Peru SA 5.6 68.3 6/19/2047 PE USD
Petroleos del Peru SA 5.6 68.3 6/19/2047 PE USD
Powerlong Real Estate 6.3 10.3 8/10/2024 KY USD
Provincia de Cordoba 7.1 39.6 10/27/2026 AR USD
Provincia de la Rioja 7.5 45.9 7/20/2032 AR USD
Provincia de la Rioja 4.5 51.8 1/20/2027 AR USD
Chaco Argentina 4.0 0.0 12/4/2026 AR USD
QNB Finance 13.5 63.1 10/6/2025 KY TRY
QNB Finance 11.5 71.7 1/30/2025 KY TRY
QNB Finance 2.9 74.2 9/16/2035 KY AUD
QNB Finance 2.9 72.9 12/4/2035 KY AUD
QNB Finance 3.0 75.4 2/14/2035 KY AUD
QNB Finance 3.4 72.0 10/21/2039 KY AUD
Radiance Holdings Group 7.8 49.6 3/20/2024 KY USD
Rio Alto Energias Renovaveis 7.0 29.1 7/15/2027 BR BRL
Santander Consumer Chile SA 2.9 72.7 11/27/2034 CL AUD
Seazen Group 6.0 75.2 8/12/2024 KY USD
Seazen Group 4.5 34.1 7/13/2025 KY USD
Shui On Development Holding 5.5 61.2 6/29/2026 KY USD
Shui On Development Holding 5.5 73.0 3/3/2025 KY USD
Silk Road Investments 2.9 66.8 1/23/2042 KY AUD
Skylark 1.8 59.0 4/4/2039 KY GBP
Autopista Central 5.3 37.2 12/15/2026 CL CLP
Autopista Central 5.3 50.6 12/15/2028 CL CLP
SQM 3.5 65.5 9/10/2051 CL USD
SQM 3.5 65.5 9/10/2051 CL USD
Southern Water Service 3.0 70.8 5/28/2037 KY GBP
SPE Saneamento RIO 1 7.2 10.8 1/15/2042 BR BRL
SPE Saneamento RIO 1 SA 6.9 10.5 1/15/2034 BR BRL
SPE Saneamento Rio 4 SA 7.2 10.2 1/15/2042 BR BRL
SPE Saneamento Rio 4 SA 6.9 10.2 1/15/2034 BR BRL
Spica 2.0 74.9 3/24/2033 KY AUD
Spirit Loyalty Cayman 8.0 72.2 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 73.0 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 70.3 9/20/2025 KY USD
Spirit Loyalty Cayman 8.0 72.5 9/20/2025 KY USD
Sylph 2.7 68.5 3/25/2036 KY USD
Sylph 3.1 74.7 9/25/2035 KY USD
Sylph 2.4 64.2 9/25/2036 KY USD
Sylph 2.9 74.5 6/24/2036 KY AUD
Telecom Argentina SA 1.0 74.0 3/9/2027 AR USD
Telecom Argentina SA 1.0 66.1 2/10/2028 AR USD
Telefonica Moviles Chile SA 3.5 74.4 11/18/2031 CL USD
Telefonica Moviles Chile SA 3.5 74.4 11/18/2031 CL USD
Tencent Holdings 3.2 67.9 6/3/2050 KY USD
Tencent Holdings 3.3 64.0 6/3/2060 KY USD
Tencent Holdings 3.9 73.9 4/22/2061 KY USD
Tencent Holdings 3.8 75.4 4/22/2051 KY USD
Tencent Holdings 3.2 67.6 6/3/2050 KY USD
Tencent Holdings 3.9 73.9 4/22/2061 KY USD
Tencent Holdings 3.3 64.1 6/3/2060 KY USD
Three Gorges Finance 3.2 71.6 10/16/2049 KY USD
Grupo Travessia 9.0 1.6 1/20/2032 BR BRL
Volcan Cia Minera SAA 4.4 62.2 2/11/2026 PE USD
Volcan Cia Minera SAA 4.4 62.0 2/11/2026 PE USD
VTR Comunicaciones SpA 5.1 61.6 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 60.8 4/15/2029 CL USD
VTR Comunicaciones SpA 5.1 61.9 1/15/2028 CL USD
VTR Comunicaciones SpA 4.4 60.6 4/15/2029 CL USD
YPF SA 7.0 72.6 12/15/2047 AR USD
YPF SA 1.0 66.8 4/25/2027 AR USD
*********
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 2024. All rights reserved. ISSN 1529-2746.
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