/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/240726.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, July 26, 2024, Vol. 25, No. 150 Headlines A R G E N T I N A TRANSPORTADORA DE GAS: Discloses Expiration of 2025 Notes Offer B E R M U D A NABORS INDUSTRIES: Discloses Offering of Senior Guaranteed Notes NABORS INDUSTRIES: Registers Add'l. Shares Under 2016 Stock Plan B R A Z I L AZUL SA: Appoints Grant Thornton as New Auditor C H I L E INVERSIONES LATIN: Moody's Rates $264MM Senior Secured Notes 'B1' D O M I N I C A N R E P U B L I C [*] DOMINICAN REPUBLIC: Expands Airline Industry w/ 281 Connections G U A T E M A L A INGENIO MAGDALENA: Moody's Affirms 'B1' CFR, Outlook Stable M E X I C O AEROPUERTOS DOMINICANOS XXI: S&P Affirms 'BB' ICR, Outlook Stable JUS DOORS: Daniel Bruton Named Subchapter V Trustee JUS DOORS: Seeks to Hire Ivey Mcclellan as Bankruptcy Counsel - - - - - ================= A R G E N T I N A ================= TRANSPORTADORA DE GAS: Discloses Expiration of 2025 Notes Offer --------------------------------------------------------------- Transportadora de Gas del Sur S.A. ("TGS," the "Company" or "we") disclosed the expiration and tender results of the previously-announced offer by the Company to purchase for cash (the "Offer") from each registered holder (each, a "Holder" and, collectively, the "Holders") any and all of its outstanding 6.750% senior notes due 2025 (the "Notes") issued by the Company under the indenture dated as of May 2, 2018 (the "Indenture"). The Offer expired at 5:00 p.m., New York City time, on July 19, 2024 (such date and time, the "Expiration Date"). The Company has been advised that, as of the Expiration Date, U.S.$299,439,000 in aggregate principal amount of Notes, or approximately 63.67% of the Notes outstanding, have been validly tendered and not validly withdrawn pursuant to the Offer. Additionally, U.S.$150,000 in aggregate principal amount of Notes, or approximately 0.03% of the Notes outstanding have been tendered pursuant to guaranteed delivery procedures. The Company has accepted for purchase all of the Notes validly tendered in the Offer and not validly withdrawn on or prior to the Expiration Date. Notes accepted for purchase, including Notes tendered pursuant to guaranteed delivery procedures, will be paid in full by the Company on July 24, 2024 (the "Settlement Date"). The Offer was made by the Company pursuant to the offer to purchase dated July 15, 2024 (the "Offer to Purchase") and the related guaranteed delivery instruction (together with the Offer to Purchase, the "Offer Documents"). The principal purpose of the Offer was to purchase for cash any and all of the outstanding Notes. The Company intends to finance the purchase of the Notes with the proceeds of a concurrent issuance of notes. Holders who had validly tendered and not withdrawn their Notes at or before the Expiration Date are entitled to receive U.S.$1,000 per U.S.$1,000 principal amount of the Notes tendered (the "Offer Consideration"), on the Settlement Date. In addition, Holders whose Notes were purchased in the Offer will receive accrued and unpaid interest from and including the last interest payment date for the Notes up to but not including the Settlement Date. For the avoidance of doubt, accrued interest will cease to accrue on the Settlement Date for all Notes accepted in the Offer, including those tendered by the guaranteed delivery procedures set forth in the Offer to Purchase. The obligation of the Company to pay for Notes validly tendered pursuant to the Offer, or Notes with respect to which a properly completed guaranteed delivery instruction was delivered at or prior to the Expiration Date, is subject to, and conditioned upon, the satisfaction or waiver of certain conditions as set forth in the Offer Documents, in the sole discretion of the Company. The terms and conditions of the Offer are described in the Offer Documents previously distributed to the Holders. The Company has retained Citigroup Global Markets Inc., Itau BBA USA Securities, Inc., J.P. Morgan Securities LLC and Santander US Capital Markets LLC. to serve as the dealer managers for the Offer, and Banco Santander Argentina S.A. and Banco de Galicia y Buenos Aires S.A.U. to act as local information agent in Argentina. Questions regarding the Offer may be directed to Citigroup Global Markets Inc. at (212) 723-6106 (collect) or (800) 558-3785 (toll-free), Itau BBA USA Securities, Inc. at (888) 770-4828 (toll-free), J.P. Morgan Securities LLC at (212) 834-7279 (collect) or at (866) 846-2874 (toll-free) and/or to Santander US Capital Markets LLC at (212) 350-0660 (collect) or at (855) 404-3636 (toll-free). Requests for documents may be directed to Morrow Sodali International LLC, the information and tender agent for the Offer, by e-mail at tgs@investor.morrowsodali.com, or by telephone in Stamford at +1 203 658 9457 or in London at +44 20 4513 6933. Documents relating to the Offer, including the Offer to Purchase and guaranteed delivery instruction, are also available at https://projects.morrowsodali.com/tgs. None of the Company, the dealer managers or the information agents make any recommendations as to whether Holders should tender their Notes pursuant to the Offer, and no one has been authorized by any of them to make such recommendations. Holders must make their own decisions as to whether to tender their Notes, and, if so, the principal amount of Notes to tender. This press release is for informational purposes only and is not a recommendation and is not an offer to sell or a solicitation of an offer to buy any security. The Offer is being made solely pursuant to the Offer Documents. The Offer does not constitute, and may not be used in connection with, an offer or solicitation by anyone in any jurisdiction in which such offer or solicitation is not permitted by law or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation. In any jurisdiction where the securities, blue sky or other laws require tender offers to be made by a licensed broker or dealer and in which the dealer managers, or any affiliates thereof, are so licensed, the Offer will be deemed to have been made by any such dealer managers, or such affiliates, on behalf of the Company. As reported in the Troubled Company Reporter-Latin America on July 22, 2024, Fitch Ratings has assigned Transportadora de Gas del Sur S.A.'s (TGS) Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) at 'B-'. The Rating Outlook is Stable. Fitch has also assigned a 'B'/'RR3' rating to TGS's approximately USD480 million in proposed unsecured obligations to be issued the week of July 15. TGS will use the proceeds from the planned issuance to repay its outstanding 2018 bonds, which have a bullet maturity due in May 2025. ============= B E R M U D A ============= NABORS INDUSTRIES: Discloses Offering of Senior Guaranteed Notes ---------------------------------------------------------------- Nabors Industries Ltd. (NYSE: NBR) ("Nabors") disclosed that Nabors Industries, Inc. ("NII"), its indirect wholly-owned subsidiary, has commenced an offering of $550 million aggregate principal amount of senior guaranteed notes due 2031 (the "Notes"). The Notes will be fully and unconditionally guaranteed by Nabors and each of the subsidiaries, other than NII, that guarantee Nabors' 7.50% senior guaranteed notes due 2028. The Notes will be senior unsecured obligations of NII and will rank pari passu in right of payment with all of NII's existing and future senior obligations, including Nabors' 7.50% senior guaranteed notes due 2028. The guarantees of the Notes will be senior unsecured obligations of the guarantors and will rank pari passu in right of payment with all of the guarantors' existing and future senior obligations, including the guarantors' guarantee of the 7.50% senior guaranteed notes due 2028. Nabors intends to use the net proceeds from this offering, along with cash on hand, to redeem all of its 7.25% senior guaranteed notes due 2026. Any excess proceeds will be used for general corporate purposes, including, potentially, repayment of other outstanding indebtedness. The Notes will be offered and sold to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to persons outside the United States in accordance with Regulation S under the Securities Act and applicable exemptions from registration, prospectus or like requirements under the laws and regulations of the relevant jurisdictions outside the United States. The Notes will not be registered under the Securities Act and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes will also not be registered in any jurisdiction outside of the United States and no action or steps will be taken to permit the offer of the Notes in any such jurisdiction where any registration or other action or steps would be required to permit an offer of the Notes. The Notes will not be offered or sold in any such jurisdiction except pursuant to an exemption from, or in a transaction not subject to, the relevant requirements of laws and regulations of such jurisdictions. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities of Nabors or its subsidiaries, nor shall there be any offer, solicitation or sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. The information above includes forward-looking statements within the meaning of the Securities Act and the Securities Exchange Act of 1934, as amended. Such forward-looking statements are subject to certain risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. Nabors does not undertake to update these forward-looking statements. About Nabors Bermuda-based Nabors Industries Ltd. (NYSE: NBR) owns and operates land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. Nabors Industries reported a net loss of $11.8 million for the year ended December 31, 2023, a net loss of $307.22 million in 2022, a net loss $543.69 million in 2021, a net loss of $762.85 million in 2020, a net loss of $680.51 million in 2019, a net loss of $612.73 million in 2018, and a net loss of $540.63 million in 2017. As of March 31, 2024, the Company had $4.64 billion in total assets, $3.37 billion in total liabilities, and $522.82 million in total stockholders' equity. * * * In September 2023, Egan-Jones Ratings Company upgraded the foreign currency and local currency senior unsecured ratings on debt issued by Nabors Industries, Inc. to CCC+ from CCC-. In March 2024, S&P Global Ratings revised its outlook to stable from positive and affirmed its 'B-' issuer credit rating on Nabors Industries Ltd. At the same time, S&P affirmed its 'B-' issue-level rating on the company's senior priority guaranteed notes with recovery rating of '3' and 'CCC' issue-level rating on the company's priority guaranteed notes with recovery rating of '6'. The stable outlook reflects S&P's expectation for the company's operating performance, industry fundamentals, near-term debt maturity profile, and credit metrics to remain appropriate for the 'B-' issuer credit rating. The outlook revision reflects S&P's expectation of reduced free cash flow generation and lower than anticipated debt reduction. In July 2024, S&P Global Ratings assigned its 'CCC' issue-level rating and '6' recovery rating to Bermuda-based drilling contractor Nabors Industries Ltd.'s proposed $550 million senior guaranteed notes due 2031. The company's subsidiary, Nabors Industries Inc. will issue the notes. The '6' recovery rating indicates its expectation of negligible (0%-10%; rounded estimate: 0%) recovery of principal by creditors in the event of a payment default. NABORS INDUSTRIES: Registers Add'l. Shares Under 2016 Stock Plan ---------------------------------------------------------------- Nabors Industries Ltd filed a Registration Statement on Form S-8 Report filed with the U.S. Securities and Exchange Commission for the purpose of registering an additional 215,000 Common Shares that may be offered and sold pursuant to Amendment No. 3 to the Amended 2016 Stock Plan, which was approved by shareholders on June 4, 2024. Except as otherwise set forth below, the contents of the registration statements on Form S-8 previously filed with the Commission on each of: * July 29, 2016 (File No. 333-212781), * June 6, 2018 (File No. 333-225449), * June 19, 2020 (File No. 333-239325), * June 21, 2021 (File No. 333-257211), and * July 18, 2022 (File No. 333-266201); which registered 160,000, 210,000, 700,000, 175,000, and 175,000 Common Shares for offer and sale under the Amended 2016 Stock Plan, respectively, are incorporated herein by reference and made a part of this Registration Statement as permitted by General Instruction E to Form S-8. A full-text copy of the Registration Statement is available at: https://tinyurl.com/ynbdyzux About Nabors Bermuda-based Nabors Industries Ltd. (NYSE: NBR) owns and operates land-based drilling rig fleets and provides offshore platform rigs in the United States and several international markets. Nabors also provides directional drilling services, tubular services, performance software, and innovative technologies for its own rig fleet and those of third parties. Nabors Industries reported a net loss of $11.8 million for the year ended December 31, 2023, a net loss of $307.22 million in 2022, a net loss $543.69 million in 2021, a net loss of $762.85 million in 2020, a net loss of $680.51 million in 2019, a net loss of $612.73 million in 2018, and a net loss of $540.63 million in 2017. As of March 31, 2024, the Company had $4.64 billion in total assets, $3.37 billion in total liabilities, and $522.82 million in total stockholders' equity. * * * In September 2023, Egan-Jones Ratings Company upgraded the foreign currency and local currency senior unsecured ratings on debt issued by Nabors Industries, Inc. to CCC+ from CCC-. In March 2024, S&P Global Ratings revised its outlook to stable from positive and affirmed its 'B-' issuer credit rating on Nabors Industries Ltd. At the same time, S&P affirmed its 'B-' issue-level rating on the company's senior priority guaranteed notes with recovery rating of '3' and 'CCC' issue-level rating on the company's priority guaranteed notes with recovery rating of '6'. The stable outlook reflects S&P's expectation for the company's operating performance, industry fundamentals, near-term debt maturity profile, and credit metrics to remain appropriate for the 'B-' issuer credit rating. The outlook revision reflects S&P's expectation of reduced free cash flow generation and lower than anticipated debt reduction. In July 2024, S&P Global Ratings assigned its 'CCC' issue-level rating and '6' recovery rating to Bermuda-based drilling contractor Nabors Industries Ltd.'s proposed $550 million senior guaranteed notes due 2031. The company's subsidiary, Nabors Industries Inc. will issue the notes. The '6' recovery rating indicates its expectation of negligible (0%-10%; rounded estimate: 0%) recovery of principal by creditors in the event of a payment default. =========== B R A Z I L =========== AZUL SA: Appoints Grant Thornton as New Auditor ----------------------------------------------- investing.com reports that Azul SA, the largest airline in Brazil by number of flights and cities served, announced that its Board of Directors has approved the appointment of Grant Thornton Brasil as its independent auditor for the fiscal year ending December 31, 2024. This decision precedes the mandatory auditor rotation required by CVM Instruction 308/99, according to investing.com. The appointment of Grant Thornton is the outcome of a competitive process based on technical and commercial factors, where the firm presented the best proposal, the report notes. Azul's previous auditor, Ernst & Young Auditores Independentes, has been informed and is aware of the change, the report relays. This transition will take effect from the second quarter of 2024, as Grant Thornton will commence its services with the review of the quarterly information (ITRs), the report discloses. The company has not disclosed any disagreements or issues with Ernst & Young that would have led to the change, indicating a standard rotation process, the report says. Azul, recognized for its punctuality and service, operates approximately 1,000 daily flights to over 160 destinations with a fleet of over 180 aircraft and more than 16,000 crew members, the report notes. In recent years, it has garnered significant industry accolades, including being named the most on-time airline by Cirium and receiving the top ranking in TripAdvisor (NASDAQ:TRIP)'s Traveler’s Choice Awards, the report says. In other recent news, Brazilian airline Azul reported a promising start to the year in its first-quarter earnings call, noting a 4.5% increase in operating revenue and a significant 37.4% increase in EBITDA, the report relays. The company achieved a record EBITDA margin of 30.3% and projects improved cash flow and reduced leverage for 2024, the report notes. In other developments, Azul and another local airline, Gol, have entered into a codeshare agreement, which allows the airlines to sell seats on each other's flights and includes their frequent flyer programs, the report discloses. This partnership has sparked discussions about a potential merger, which would require antitrust approval, the report says. Meanwhile, Airbus, a major aircraft supplier for Azul and Gol, maintains a global production capacity of 60 to 65 aircraft per month, with plans to increase this to 75 planes per month by late 2025 or early 2026, the report relays. Despite market challenges in Brazil, such as judicial uncertainty and high fuel prices, Airbus continues to receive orders from the country's airlines, the report discloses. Azul and LATAM, another local airline, have placed orders for over 100 aircraft for the coming years. However, Airbus' executive in Brazil, Gilberto Peralta, voiced concerns about the recent quality crisis at Boeing (NYSE:BA), which has led to delivery delays and market instability, the report adds. These are the recent developments in the aviation industry. InvestingPro Insights The report discloses that as Azul SA navigates through its corporate governance and operational enhancements, real-time data from InvestingPro provides a snapshot into the company's financial health and market performance. With a market capitalization of $582.38 million and a challenging P/E ratio currently at -1.14, Azul's financial metrics reflect the competitive and volatile nature of the airline industry, the report relays. Notably, the company's revenue has grown by 8.83% over the last twelve months as of Q1 2024, indicating a resilient demand for its services despite broader industry headwinds, the report notes. InvestingPro Tips suggest that Azul's valuation implies a strong free cash flow yield, positioning it as a prominent player in the Passenger Airlines industry, the report discloses. However, analysts are not expecting the company to be profitable this year, and the stock price has experienced significant volatility, with a 6-month price total return of -33.94%, the report notes. Additionally, there are concerns as short-term obligations exceed liquid assets, which could impact financial flexibility, the report relays. For investors interested in a deeper dive into Azul's financials and future prospects, there are additional InvestingPro Tips available, the report says. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking access to valuable insights that could inform investment decisions, the report discloses. With 6 more tips awaiting on InvestingPro, investors have the opportunity to gain a comprehensive understanding of Azul's position within the market, the report adds. As reported in the Troubled Company Reporter-Latin America on July 22, 2024, Fitch Ratings has affirmed Azul S.A.'s (Azul) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B-' and its Long-Term National Scale rating at 'BB(bra)'. Fitch has also affirmed Azul Investments LLP's unsecured bonds at 'CCC+'/'RR5', as well as Azul Secured Finance LLP's senior secured notes at 'B-'/'RR4'. The Rating Outlook of Azul's IDRs has been revised to Negative from Stable. Fitch has assigned a Negative Outlook to Azul's Long-Term National Scale Rating. ========= C H I L E ========= INVERSIONES LATIN: Moody's Rates $264MM Senior Secured Notes 'B1' ----------------------------------------------------------------- Moody's Ratings has assigned a B1 rating to Inversiones Latin America Power SpA's ("ILAP") $264 million take-back senior secured notes due 2033, following amendments on its debt structure. The outlook on the rating is stable. RATINGS RATIONALE ILAP's B1 rating on its take-back senior secured notes reflects the issuer's emergence from Chapter 11 bankruptcy with a high leverage profile considering the group's adjusted debt, continuing challenging operating environment for renewable projects with regulated power purchase agreements (PPAs) in Chile, and Moody's expectations of some improvement in internal cash generation and the full amortization of the debt via cash sweeps during the life of the notes. Also, considered in the rating are the project finance features embedded in the transaction, the lack of cash reserves and the subordination of the take-back senior secured notes to the $14 million super-priority notes, although partially offset by the requirement to maintain a minimum cash balance of $15 million after super-priority and senior debt repayments via cash sweeps. Governance considerations are a key driver of the rating action given ILAP's emergence from its Chapter 11 filing. The senior secured notes issued in June 2021 were amended in December 2023, to, among other things, reduce and defer the debt service payment schedule and change ILAP's capital structure to match the project's lower expected cash flows. The amendment also increased the interest rate on the senior secured notes and allowed for a portion to be paid in kind ("PIK"). ILAP's debt restructure follows a reorganization plan under Chapter 11 of the US Bankruptcy Code, which was approved by the US Bankruptcy Court for the Southern District of New York on January 3, 2024. The capital structure after restructuring entails very high leverage that compares unfavorable with peers. In addition to the take-back senior secured debt, ILAP's total debt includes $165 million of convertible notes issued by ILAP Holdings LTD., that are unconditionally and irrevocably guaranteed by ILAP and $14 million of super-priority notes provided by some lenders to replenish ILAP's liquidity. The borrower's high leverage results in weak financial metrics under the Moody's Case with expected Project CFO to Total Debt of 4.3% and Total Debt to EBITDA of 10.9x in 2024. On the other hand, the revised debt schedule with interests payable-in-kind and lack of mandatory amortization provides ILAP financial flexibility although at the risk of potentially increasing loss given default if the borrower were to experience sustained credit stress. Additionally, on December 31st, 2025, the convertible notes are designed to convert into equity. As such, Moody's expect the borrower's leverage will drop to an estimated Total Debt to EBITDA of 3.7x by 2026. The Moody's Case also assumes the full amortization of the super-priority notes by December 2024 following the monetization of $21.7 million that the project company held in accounts receivables; and significant cash sweep amortization to the take-back senior secured notes thereafter until full repayment in 2031. Over the next 24 months, ILAP's cash generation will remain volatile due to its exposure to spot prices, improving but still challenging curtailment risks and decoupling costs. Nonetheless, cash generation are expected to exceed historical amounts, given the termination of a loss-making contract in December 2023 and the establishment of the regulated tariff stabilization funds (PEC2 and PEC3). Despite above average hydrology conditions in 2024 that will support more stable price conditions during the next 24 months, cash flows for the life of the transaction remain exposed to climate conditions for the dispatch of hydropower facilities, spot price volatility and persistent transmission bottlenecks in Chile until at least 2029. In the near term, the ILAP's assets could be purchased by another party. On June 28, 2024, Colbun S.A. (Baa2 stable) announced it was acquiring 100% of ILAP's shares for $401 million. The transaction is still pending approval by Chile's antitrust authority ("Fiscalía Nacional Económica") and the authority has a track record of blocking only a few transactions of a similar profile. The transaction is expected to close during the second half of 2024 and should the transaction occur as expected, net proceeds from the sale are expected to fully repay all of ILAP's debt with any excess proceeds distributed to equity. RATING OUTLOOK The stable outlook on the B1 rating considers Moody's view that the company has sufficient cash on hand to operate the business during the next 12-24 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATING A ratings upgrade would be considered with sustained improvement in operating cash generation leading to higher than expected cash sweep payments. FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATING A ratings downgrade could result from Moody's perception of a higher risk of default or losses for take-back senior secured notes holders, such that the project company starts to present refinancing risks at maturity due to lower than expected cash sweeps or the incapacity of the project to make cash interest payments. COMPANY PROFILE ILAP is an indirect fully owned subsidiary of Latin America Power S.A., owned by GMR Holding B.V., BTG Pactual Brazil Infrastructure Fund II LP, Patria Infrastructure Fund II LP, Patria Infrastructure Fund II LAP Co-Invest, LP, Patria Infrastructure Fund II LAP Co-Invest, UK LP, PI Fund II (Ontario) LP, PI Fund II (Ontario 1) LP, PI Fund II (Ontario 2) LP. ILAP owns 99.99% of the ownership interest in two wind power generation assets in Chile, "San Juan" and "Totoral", which have achieved full commercial operating date on March 2017 and January 2010, respectively, and have a combined installed capacity of 239.2 megawatt ("MW") North of Santiago. LIST OF AFFECTED RATINGS Issuer: Inversiones Latin America Power SpA Assignments: Backed Senior Secured Regular Bond/Debenture, Assigned B1 Outlook Actions: Outlook, Assigned Stable The principal methodology used in this rating was Power Generation Projects published in June 2023. =================================== D O M I N I C A N R E P U B L I C =================================== [*] DOMINICAN REPUBLIC: Expands Airline Industry w/ 281 Connections ------------------------------------------------------------------- Dominican Today reports that Jose Marte Piantini, president of the Civil Aviation Board (JAC), emphasized the critical role of air connectivity in the Dominican Republic's economic development. From August 2020 to June 2024, a total of 438,836 air operations were conducted, averaging 1,275 flights per week, according to Dominican Today. These operations, involving passenger and cargo movements, generated an estimated $49,807 million in direct and indirect income for the economy, the report notes. Marte Piantini highlighted the significant achievements during President Luis Abinader's first term, the report relays. The JAC authorized 46,002 non-regular or charter air operations and approved 18,940 flights under Special Permits, underscoring the sector's resilience and progress despite challenges, the report notes. In his fourth management report, Marte Piantini detailed the administration's efforts to strengthen civil aviation, resulting in 281 new connections and establishing routes to various global destinations, the report discloses. He stressed the importance of expanding the country's air connectivity network to enable national air operators to access more markets, reflecting President Abinader's commitment to enhancing the national airline industry and promoting trade and investment, the report adds. About Dominican Republic The Dominican Republic is a Caribbean nation that shares the island of Hispaniola with Haiti to the west. Capital city Santo Domingo has Spanish landmarks like the Gothic Catedral Primada de America dating back 5 centuries in its Zona Colonial district. Luis Rodolfo Abinader Corona is the current president of the nation. TCR-LA reported in April 2019 that Juan Del Rosario of the UASD Economic Faculty cited a current economic slowdown for the Dominican Republic and cautioned that if the trend continues, growth would reach only 4% by 2023. Mr. Del Rosario said that if that happens, "we'll face difficulties in meeting international commitments." An ongoing concern in the Dominican Republic is the inability of participants in the electricity sector to establish financial viability for the system. On December 4, 2023, the TCR-LA reported that Fitch Ratings has affirmed Dominican Republic's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-' and revised the Outlook to Positive from Stable. Fitch says the Positive Outlook reflects a trend improvement in governance, and robust growth prospects that should lead to continued gains in per capita income. According to Fitch, growth has decelerated in 2023, but it expects Dominican Republic to recover to high levels during 2024-2025. External liquidity metrics have improved in recent years, and foreign currency share of government debt is on a downward path. In August 2023, Moody's Investors Service changed the outlook on the Government of Dominican Republic's ratings to positive from stable and affirmed the local and foreign-currency long-term issuer and senior unsecured ratings at Ba3. Moody's said the key drivers for the outlook change to positive are: (i) sustained high growth rates have enhanced the scale and wealth levels of the economy; and (ii) a material decline in the government debt burden coupled with improved fiscal policy effectiveness will support medium-term debt sustainability. The affirmation of the Ba3 ratings balances the Dominican Republic's strong economic growth dynamics and relatively contained susceptibility to event risks, with a comparatively weaker fiscal position, reflecting long-standing credit challenges which include: (i) a shallow revenue base compared to peers, (ii) weak debt affordability metrics, and (iii) high exposure to foreign currency borrowing. S&P Global Ratings, in December 2022, raised its long-term foreign and local currency sovereign credit ratings on the Dominican Republic to 'BB' from 'BB-'. The outlook on the long-term ratings is stable. S&P affirmed its 'B' short-term sovereign credit ratings. S&P also revised its transfer and convertibility (T&C) assessment to 'BBB-' from 'BB+'. The stable outlook reflects S&P's expectation of continued favorable GDP growth and policy continuity over the next 12-18 months that will likely stabilize the government's debt burden. In February 2023, S&P said its BB ratings reflect the country's fast-growing and resilient economy. It also incorporates the country's historical political and social challenges in passing structural reforms to contain fiscal deficits, despite recent improvements in the electricity sector. The ratings are constrained by relatively high debt, a hefty interest burden, and limited monetary policy flexibility. ================= G U A T E M A L A ================= INGENIO MAGDALENA: Moody's Affirms 'B1' CFR, Outlook Stable ----------------------------------------------------------- Moody's Ratings has affirmed Ingenio Magdalena S.A.'s B1 Corporate Family Rating. The outlook is stable. RATINGS RATIONALE Magdalena's B1 rating is supported by its competitive position as the largest sugarcane producer in Guatemala (Government of Guatemala, Ba1 stable), which is the fifth-largest exporter of sugar globally; the large scale of Magdalena's mills with an annual crushing capacity of 6.9 million tons; a stable production and price environment in Guatemala, with annual production quotas for the local market and stable local wholesale prices; its high percentage of energy sales with long-term contracts; its export focus on the higher priced refined white sugar; and efficiency of its operations with high agricultural yields and efficient logistics assets. The rating is constrained by Magdalena's small size on a global scale, although the company is a local leader in sugarcane crushing with 25% market share in Guatemala. The rating is constrained by the concentration in a single production site and in a single geographical region, which leaves the company highly exposed to event risks, be it weather, disease or even political risk, logistical and trade asymmetries. Exposure to the inherent volatility of the sugar business, coupled with a high share of own production, leads to high fixed costs of the agricultural activities, although it also allows for higher yield control and sugarcane availability. Magdalena is expected to continue generating positive free cash flow and actively refinancing its short-term debt in order to avoid liquidity pressures. Yearly debt amortizations are expected to remain at around USD24 million for the syndicated loans which represent the bulk of its indebtedness. The company also has a revolving credit facility in Quetzal equivalent to USD80 million which has been fully withdrawn. The facility is due in 2026 but the outstanding amounts have to be repaid annually. The company relies on its creditor banks for refinancing. Leverage should stay at around 3.5x or lower as EBITDA picks up in 2024 and 2025. Leverage metrics will improve even if Magdalena invests in new debt funded projects. Announced projects include solar farms in Guatemala with 92 MW. The stable outlook incorporates that Magdalena will maintain an adequate gross leverage through the commodity price cycles and investment cycles; liquidity will remain adequate. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING A rating upgrade would require Magdalena to maintain a robust liquidity profile, represented by a cash position consistently above short-term debt levels, and stable margins through the harvest and through commodity price cycles, with an adequate debt maturity profile and a reduction in gross leverage. Quantitatively, an upgrade would require its total Moody's adjusted Debt/EBITDA to remain consistently below 3.5x and Cash Flow from Operations/Debt consistently above 15%. A rating downgrade could result from Magdalena's inability to maintain an adequate debt maturity schedule and liquidity profile. An increase in leverage, deterioration of credit metrics and liquidity could pose negative pressure on the rating. Quantitatively, a downgrade would happen if total adjusted Debt/EBITDA remains above 4.5x and Cash Flow from Operations/Debt expected to remain below 10%. COMPANY PROFILE Magdalena's main activity is the production and sale of sugar in local and international markets, exporting mainly white refined sugar, as well as the sale of electricity, alcohol and other products derived from its production process. Magdalena is fully owned by the Leal family, with five ultimate beneficial owners. In 2023, Magdalena posted $583 million in net sales and $189 million in Moody's-adjusted EBITDA, including Moody's standard adjustments, with a 32.4% EBITDA margin. The principal methodology used in this rating was Protein and Agriculture published in November 2021. =========== M E X I C O =========== AEROPUERTOS DOMINICANOS XXI: S&P Affirms 'BB' ICR, Outlook Stable ----------------------------------------------------------------- S&P Global Ratings affirmed its 'BB' issuer credit rating on the airport operator Aeropuertos Dominicanos Siglo XXI S.A. (Aerodom) and withdrew its 'BB' issue rating on the redeemed $317 million notes. S&P said, "The stable outlook on Aerodom reflects our expectation that passenger volume will grow about 10% in 2024 and 5% in 2025. We also forecast Aerodom's debt to EBITDA at about 1.5x, funds from operations (FFO) to net debt at around 40%, and FFO cash interest coverage at about 5x for the next 12 months." In 2023, Aerodom extended the concession to operate its six airports in the Dominican Republic until 2060. The renewal included a fee of $775 million. As a result, the company issued a $500 million senior secured bond due 2034 and the term loan for $400 million to redeem the outstanding 6.75% senior secured notes due 2029, partly fund the fee, and make a one-time payment to the sponsor. The company has been operating six of the country's 14 airports since 1999 under a concession agreement with the government. Although the concession was set to expire in November 2030, Aerodom extended it on Nov. 18, 2023, for additional 30 years until 2060. As part of the extension, the company agreed to pay a concession fee of $775 million to the government, related to the extension of the operating rights, which was already cancelled and will be deductible from its income taxes. JUS DOORS: Daniel Bruton Named Subchapter V Trustee --------------------------------------------------- John Paul Cournoyer, the U.S. Bankruptcy Administrator for the Middle District of North Carolina, appointed Daniel Bruton as Subchapter V trustee for JUS Doors, Inc. Mr. Bruton will be paid an hourly fee of $375 for his services as Subchapter V trustee and will be reimbursed for work-related expenses incurred. Mr. Bruton declared that he is a disinterested person according to Section 101(14) of the Bankruptcy Code. About JUS Doors JUS Doors, Inc. offers full design, fabrication, installation, service and maintenance of four fold doors, hangar doors, and custom doors across the U.S., Canada, and Mexico. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-10432) on July 12, 2024, with $2,394,917 in assets and $1,822,045 in liabilities. Michael Peters, president, signed the petition. Dirk W. Siegmund, Esq., at Ivey, McClellan, Siegmund, Brumbaugh & McDonough, LLP represents the Debtor as legal counsel. JUS DOORS: Seeks to Hire Ivey Mcclellan as Bankruptcy Counsel ------------------------------------------------------------- JUS Doors, Inc. seeks approval from the U.S. Bankruptcy Court for the Middle District of North Carolina to hire Ivey, Mcclellan, Siegmund, Brumbaugh & Mcdonough, LLP as its counsel. The firm's services include: a. representing the Debtor in a Chapter 11 bankruptcy to include assisting in investigating and examining contracts, leases, financing statements and other related documents to determine the validity of such, to determine the rights and priorities of lienholders, if any; and b. providing advice in preserving the Debtor's properties and assets, and generally assisting the Debtor in administering the estate. The firm will be paid at these rates: Samantha K. Brumbaugh $400 per hour Dirk W. Siegmund $400 per hour Charles M. Ivey, III $550 per hour Darren McDonough $400 per hour John M. Blust $300 per hour Melissa Murrell $125 per hour Tabitha Coltrane $125 per hour Janice Childers $100 per hour The firm will also be reimbursed for reasonable out-of-pocket expenses incurred. The retainer is $2,500. Dirk W. Siegmund, Esq., a partner at Ivey, McClellan, Siegmund, Brumbaugh & McDonough, LLP, disclosed in court filings that her firm is a "disinterested person" pursuant to Section 101(14) of the Bankruptcy Code. The firm can be reached through: Dirk W. Siegmund, Esq. McClellan, Siegmund, Brumbaugh & McDonough, LLP PO Box 3324 Greensboro, NC 27402 Tel: (336) 274-4658 Email: skb@iveymcclellan.com About JUS Doors, Inc. JUS Doors offers full design, fabrication, installation, service & maintenance of four fold doors, hangar doors, and custom doors across the U.S., Canada, and Mexico. JUS Doors, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. M.D.N.C. Case No. 24-10432) on July 12, 2024, listing $2,394,917 in assets and $1,822,045 in liabilities. The petition was signed by Michael Peters as president. Dirk W. Siegmund, Esq. at Ivey, Mcclellan, Siegmund, Brumbaugh & Mcdonough, LLP represents the Debtor as counsel. ********* 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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