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/raid1/www/Hosts/bankrupt/TCRLA_Public/240923.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, September 23, 2024, Vol. 25, No. 191 Headlines B A H A M A S FTX GROUP: Auditor Prager Metis Settles SEC Charges For Negligence B R A Z I L BRASKEM SA: Discloses Temporary Import Tax Increase MUNICIPALITY OF SAO PAULO: Fitch Affirms 'BB' IDRs, Outlook Stable USIMINAS: Court Orders Tenaris to Pay Indemnification P U E R T O R I C O D'PASTRY INC: Taps Carlos Alberto Ruiz as Bankruptcy Counsel NAVIENT CORP: Ink $7.7M Student Loan Forgiveness Deal PUERTO RICO: PREPA's US$188M Deal With Contractor Gets OK X X X X X X X X [*] BOND PRICING: For the Week September 16 to September 20, 2024 - - - - - ============= B A H A M A S ============= FTX GROUP: Auditor Prager Metis Settles SEC Charges For Negligence ------------------------------------------------------------------ Carolina Bolado at law360.com reports that the former auditor of Sam Bankman-Fried's defunct cryptocurrency exchange FTX agreed to pay $1.95 million to resolve allegations by the U.S. Securities and Exchange Commission of misconduct in FTX audits and, in a separate case, violations of auditor independence rules. About FTX FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. SBF agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 billion in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10, 2022, showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The Official Committee of Unsecured Creditors tapped Paul Hastings as counsel, FTI Consulting, Inc., as financial advisor, and Jefferies LLC as the investment banker. Young Conaway Stargatt & Taylor LLP is the Committee's Delaware and conflicts counsel. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. =========== B R A Z I L =========== BRASKEM SA: Discloses Temporary Import Tax Increase --------------------------------------------------- investing.com reports that in a recent development that could significantly impact the Brazilian chemical and petrochemical industry, Braskem S.A. has reported that the Executive Management Committee of the Foreign Trade Chamber has approved a rise in import taxes for certain products the company markets. According to the notification issued by Braskem, the import tax on a list of products including various polyethylene and polypropylene resins, as well as polyvinyl chloride obtained by suspension process, will increase from 12.6% to 20%, the report notes. This adjustment is part of the List of Temporary Tariff Increases due to Conjunctural Trade Imbalances of Camex, according to investing.com. The tax hike is slated to take effect for one year, starting from the date of publication in the Brazilian Federal Official Gazette, the report relays. Braskem anticipates that this measure will have a positive impact on the local industry, fostering a more competitive environment for national producers against foreign imports, the report discloses. Investors and shareholders were informed of this strategic development through Braskem's Investor Relations Department, the report discloses. The company, with its principal executive offices located in Camacari, Bahia, Brazil, has reassured its stakeholders of the potential favorable outcomes expected from this government intervention, the report says. Braskem, which is also listed on the B3 in Brazil and LATIBEX, emphasized that this move is part of broader economic measures and not specific to the company. The information presented is based on a press release statement and does not constitute an offer of securities for sale in Brazil, the report relays. The company's Chief Financial Officer, Pedro van Langendonck Teixeira de Freitas, signed off on the report in accordance with the Securities Exchange Act of 1934, the report recalls. Braskem remains committed to transparency and ongoing communication with its investors and the market regarding any developments that may affect its operations and financial performance, the report notes. In other recent news, Braskem SA (NYSE:BAK) has been the subject of several significant developments, the report discloses. The company is facing a substantial increase in import taxes on certain chemical products, approved by the Executive Management Committee of the Foreign Trade Chamber, the report notes. Analysts from UBS and Citi have upgraded their ratings for Braskem from Neutral to Buy, with UBS raising the price target to $10.00 and Citi adjusting it to R$22.50, the report discloses. Furthermore, Braskem is dealing with a lawsuit estimated at R$5 billion from the Public Defender's Office of the State of Alagoas (DPE-AL) over a geological event in Alagoas, the report says. Despite these challenges, Citi's analysis indicates a positive outlook for Braskem in the upcoming third quarter, with improved year-over-year results expected due to lower expenses and better performance in the Brazilian operation, the report relays. In conclusion, these are the recent developments surrounding Braskem SA, providing investors with a clear snapshot of the company's current situation and potential future trajectory, based on the analysis of industry experts, the report discloses. InvestingPro Insights In light of Braskem S.A.'s (NYSE:BAK) recent announcement concerning import tax increases on certain products, investors may be evaluating the company's financial health and market position, the report notes. According to real-time data from InvestingPro, Braskem has a market capitalization of approximately $2.89 billion, the report says. Despite a challenging environment indicated by a negative Price-to-Earnings (P/E) ratio of -1.59, the company has demonstrated significant resilience with a strong return over the last month of 14.67%, the report notes. This performance suggests investor confidence may be buoyed by the latest government measures expected to benefit local producers like Braskem, the report discloses. InvestingPro Tips highlight that Braskem operates with a significant debt burden and may have trouble making interest payments, which is critical information for potential investors considering the company's financial obligations, the report relays. Moreover, Braskem is a prominent player in the Chemicals industry, yet analysts do not anticipate the company will be profitable this year, the report notes. These insights, along with 11 additional tips available on InvestingPro, could provide a more comprehensive understanding of the company's prospects and challenges, the report discloses. As investors digest the implications of the import tax increase and its potential positive impact on Braskem, they can leverage these InvestingPro insights to make more informed decisions, the report says. The company's recent performance and strategic positioning within the industry will be key factors to monitor in the coming financial periods, the report notes. MUNICIPALITY OF SAO PAULO: Fitch Affirms 'BB' IDRs, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed the Municipality of Sao Paulo's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'. The Rating Outlook is Stable. Fitch has also affirmed Sao Paulo's Short-Term Foreign and Local Currency IDRs at 'B', National Long-Term rating at 'AAA(bra)'/Stable Outlook, and National Short-Term Rating at 'F1+(bra)'. Fitch lowered Sao Paulo's Standalone Credit Profile (SCP) to 'bbb+' from 'a-'. The Municipality of Sao Paulo's IDRs are capped by Brazil's sovereign IDR (BB/Stable). Per Fitch's criteria, Brazilian local and regional governments (LRGs) do not qualify to be rated above the sovereign due to the regulatory framework. The federal government has strong influence over local governments because of factors like a salary floor for teachers, pre-clearance to enter into foreign credit operations and federal interference on matters of subnational tax policy. Sao Paulo's 'bbb+' SCP reflects its deteriorating Financial Profile, which was revised to 'aa' from 'aaa'. Coverage metrics decreased from the previous annual review due to lower operating margins and plans to incur significant new debt for its capex program. KEY RATING DRIVERS Risk Profile: 'Low Midrange' Sao Paulo's risk profile is assessed at 'Low Midrange' due to a combination of four 'Midrange' (revenue robustness, expenditure sustainability, liabilities and liquidity robustness and flexibility) a two 'Weaker' (revenues and expenditure adjustability) key risk factors. It also considers an implied 'bb' operating environment score, which reflects Fitch's opinion of the country's economic environment, development of the financial market, bankruptcy regime, and information policies for obtaining credit, as well as control and supervision mechanisms. The 'Low Midrange' assessment reflects Fitch's view that there is a moderately high risk of the issuer's ability to cover debt service with the operating balance weakening unexpectedly over the scenario horizon (2024-2028). This is due to lower revenue, higher expenditure or an unexpected rise in liabilities or debt-service requirements. Revenue Robustness: 'Midrange' Brazil's tax collection framework places significant responsibility on states and municipalities. Constitutional transfers exist to support poorer regions. Fitch considers high reliance on these transfers a weak aspect for Brazilian LRGs. The primary metric for the Key Risk Factor revenue robustness is the transfer ratio, measuring transfers/operating revenues. Fitch classifies LRGs with a transfer ratio above or equal to 40% as 'Weaker' and those with a ratio below 40% as 'Midrange'. Sao Paulo has moderate fiscal autonomy, which supports a 'Midrange' assessment. Transfers represented 27.2% of operating revenue on average in 2019-2023. Historically, revenue growth outperformed GDP growth. During 2019 to 2023, operating revenue had a CAGR of 5.5% in real terms, compared with average annual GDP growth of 1.5%. The robust performance relates to the tax base, which benefits from strong growth in services within digital and financial sectors. Revenue Adjustability: 'Weaker' Fitch believes Brazilian states and municipalities have limited ability to increase revenue during downturns. Tax tariffs are near the constitutional ceiling, making additional taxation less affordable. Consequently, Fitch views this as a 'Weak' factor. In response to revenue shortfalls, Brazilian LRGs are less likely to raise tax rates. Instead, they apply measures to lower tax evasion and introduce tax refinancing programs. The most important municipal tax is the ISS, a tax on services, which represented 55.4% of tax collection in 2023. Another important tax for municipalities is the Imposto Predial e Territorial Urbano, a tax on urban properties, which corresponded to 28.7% of Sao Paulos's tax collection in 2023. Expenditure Sustainability: 'Midrange' Municipalities are mandated to provide basic healthcare and elementary education. They also handle urban infrastructure and social housing, though these responsibilities consume a smaller portion of the municipal budget compared to health and education. Expenditure in municipalities typically grows with revenue due to earmarked revenues. Municipalities must allocate a portion of revenue to health and education, leading to procyclical spending during good times. High revenue growth results in similar expenditure trends. However, because of the substantial personal expenditure and salary rigidity, downturns with lower revenue do not see a corresponding drop in expenditure. Operating margins averaged 11.3% between 2019 and 2023 but deteriorated significantly to 5.9% in 2022-2023. The municipality remains current on its payroll and has no significant delays in supplier payments. Operating expenditure had a CAGR of 6.3% in real terms between 2019 and 2023, slightly higher than the 5.5% CAGR for operating revenue. Fitch assesses that the municipality has demonstrated sound fiscal management over the years. The recent deterioration of operating margins reflects increase spending in several areas: early childhood education, transport subsidies, health, and urban infrastructure maintenance, especially in the last couple of years. Fitch expects OPEX to remain under pressure in 2024 but align with revenue growth in its scenario horizon. This expectation reflects the stabilization of education expenses with less pressure to expand services, normalized public works, and potential tariff increases reducing transport subsidies. Additionally, the municipality has a strong incentive to keep current savings at a minimum of 5% to qualify for federal guarantees for new loans under the CAPAG system. Fitch will continue to monitor the sustainability of Sao Paulo's expenditure trends. Expenditure Adjustability: 'Weaker' Brazilian local governments have fairly rigid cost structures, which Fitch sees as a 'Weaker' factor. Brazil's constitution limits their ability to reduce expenditure, especially for the payroll bill and pensions. Consequently, unpredictable revenue declines do not automatically lead to reduced operating expenditure. For Sao Paulo, personal expenditure represented 37% of total expenditure in 2023. Adjusting this item is very limited due to salary rigidity and constraints on managing human resources and pensions. Other operating expenditure was about 58.9% of total expenditure in 2023. Although somewhat adjustable, it is still limited by constitutional mandates on healthcare and education. Capex represented 9.9% of total expenditure in 2023 and averaged 6.1% between 2019 and 2023. Historically, Brazilian LRGs have often relied on cutting investments during challenging economic conditions. Liabilities & Liquidity Robustness: 'Midrange' Brazil's credit market for subnational governments is limited and highly controlled by the federal government. Often, LRGs will opt for new loans with federal guarantees, which are only granted to subnationals rated 'A' or 'B' under CAPAG criteria. CAPAG assesses three indicators: indebtedness, current savings and liquidity. Despite this limited market, Fitch believes Sao Paulo has relatively easy access to new loans due to its strong economy and sound public finances. The national framework for debt and liquidity management is moderate, given prudential borrowing limits and restrictions on loan types. Sao Paulo does not have maturity concentration and has moderate market access. As of YE 2023, external debt totaled BRL730 million, with no relevant maturity concentration. Fitch expects external debt to increase significantly as Sao Paulo enters into new lending transactions with multilateral agencies. External loans must be approved by the federal government and require a federal guarantee. The municipality has no direct debt owed to the federal government, following a debt write-off of August 2022. Under the Fiscal Responsibility Law of 2000, Brazilian LRGs must comply with indebtedness limits. Consolidated net debt for municipalities cannot exceed 120% of net current revenue. As of year-end 2023, Sao Paulo reported a debt ratio of -3.75%, reflecting unrestricted cash higher than direct debt, according to National Treasury calculations. According to Resolution 43 of 2001 of the Federal Senate, there is also a limit of 22% of net current revenue for guarantees. Sao Paulo reported no guarantees towards government related entities in 2023. São Paulo faces some off-balance-sheet risk from its pension system, but this risk is lower than that of Brazilian states since municipalities do not bear the burden of public security pensions. The municipality transfers additional resources annually to cover the pension deficit. Another contingent liability is the payment of judicial claims, known as "precatorios". The National Congress has mandated that subnational governments must fully amortize such liabilities until 2029. Liabilities & Liquidity Flexibility: 'Midrange' A framework exists for the federal government to provide emergency liquidity support by extending the maturity of federal debt. Fitch uses the entity's available liquidity to differentiate between 'Weaker' and 'Midrange' for liabilities and liquidity flexibility. The Brazilian National Treasury analyses the liquidity rate for LRGs to assess which entities qualify for federal government guarantees (Capacidade de Pagamento or CAPAG), which is measured by the LRGs' short-term financial obligation to net cash. The federal government's threshold to rate this ratio 'A' is 100%. Fitch has set a threshold of 100% for the average of the last three years (2021-2023 YE) and for the last YE results available (December 2023), which would result in a 'Midrange' assessment for this factor. Sao Paulo reported a three-year average liquidity ratio of 19.5%, and at YE 2023, the metric reached 22.8%, corroborating the 'Midrange' assessment. Financial Profile: 'aa category' Fitch assess Sao Paulo Financial Profile at 'aa'. The assessment considers an override to primary metric given that the secondary metric is positioned two categories below the primary metric. Fitch's rating case forward-looking scenario indicates that the payback ratio, measured as net direct risk to operating balance, the primary metric of the Financial Profile, will average 0.4x in 2026-2028, which aligns with the 'aaa' category. The actual debt service coverage ratio, the secondary metric, is projected to average 1.7x for 2026-2028, placing it within the 'a' category. The fiscal debt burden is projected at 1% for this period. Sao Paulo's Financial Profile deteriorated to 'aa' from 'aaa' in the previous annual review. The municipality increased its loan projections to BRL 13.2 billion for 2024-2028, up from BRL9.4 billion for 2023-2027 (previous annual review of September 2023). The municipality plans to pursue a mixed strategy, with foreign and domestic loans. Higher debt, combined with ongoing but pressured opex growth in 2024, has led to a deterioration in coverage metrics. Fitch's debt service coverage metric, defined as debt service to operating balance, does not consider available cash. The payback ratio remains strong due to the municipality's significant cash position as of 2023 and per Fitch's projections. Derivation Summary Sao Paulo's ratings reflect the combination of a 'Low Midrange' risk profile and 'aa' Financial Profile under Fitch rating case scenario. The 'bbb+' SCP factors in the comparison with national and international peers. Sao Paulo's 'BB' IDRs are capped by the sovereign ratings. Key Assumptions Risk Profile: 'Low Midrange' Revenue Robustness: 'Midrange' Revenue Adjustability: 'Weaker' Expenditure Sustainability: 'Midrange' Expenditure Adjustability: 'Weaker' Liabilities and Liquidity Robustness: 'Midrange' Liabilities and Liquidity Flexibility: 'Midrange' Financial Profile: 'aa' Asymmetric Risk: 'N/A' Support (Budget Loans): 'N/A' Support (Ad Hoc): 'N/A' Rating Cap (LT IDR): 'BB' Rating Cap (LT LC IDR) 'BB' Rating Floor: 'N/A' Quantitative assumptions - Issuer Specific Fitch's rating case is a "through-the-cycle" scenario, which incorporates a combination of revenue, cost and financial risk stresses. It is based on 2019-2023 figures and 2024-2028 projected ratios. The key assumptions for the scenario include: - Yoy 5.7% increase in operating revenue on average in 2024-2028, which results of a combination of growth assumptions for taxes, transfers linked to nominal GDP for 2024-2028, and other operating revenues (as projected by the government in 2024 and then tracks inflation in 2025-2028); - Yoy 7.1% increase in tax revenue on average in 2024-2028. For 2024, Fitch considers the actual performance as per June 2024 with some moderation towards the end of the year. For 2025-2028, taxes are projected to track inflation plus spread; - Yoy 6.1% increase in operating expenditure on average in 2024-2028. For 2024, Fitch considers the actual performance as per June 2024. For 2025-2028, OPEX is projected to track inflation plus spread; - Net capital balance of BRL 10,145 million on average in 2024-2028, reflecting government projections for capex. The sizeable debt write-off of August 2022 is expected to translate into a significant increase in capex compared to the historical performance; - Long-term debt considers new loans disbursements as projected by the government. - Cost of debt: 8.3% on average in 2024-2028, reflecting government projections for debt service payments and average debt cost of new loans. For the rating case, Fitch applies a 50bps shock to apparent cost of debt. Quantitative assumptions - Sovereign Related The values above reflect Fitch's projections for sovereign ratings in 2023 and with estimates for 2024-2026, respectively (weights and changes since the last review were not included, as none of these assumptions were material to the rating action). Liquidity and Debt Structure Net adjusted debt includes BRL1.4 billion of direct debt and unrestricted cash of BRL12.6 billion at YE 2023. Issuer Profile Fitch classifies the Municipality of Sao Paulo, Brazil as a Type B LRG, which is required to cover debt service with cash flow on an annual basis. Sao Paulo is Brazil's economic and financial capital and is host to a relatively skilled population, with well-developed logistics and infrastructure. Its economy represents around 9.2 of Brazil's GDP. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A negative rating action on Brazil's IDR would lead to a negative rating action on Sao Paulo, given its ratings are currently capped by the sovereign; - Sao Paulo's IDRs would be downgraded if its payback ratio is projected above 9.0x and its actual debt service coverage ratio is projected below 1.5x in Fitch's rating case, which Fitch views as unlikely. - Sao Paulo's SCP could be downgraded under a perception of unsustainable expenditure trend, which would lead to a deterioration of its Risk Profile. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A positive rating action on Brazil's IDR would lead to a positive rating action on Sao Paulo, given its ratings are currently capped by the sovereign. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Public Ratings with Credit Linkage to other ratings Sao Paulo's ratings are capped by the sovereign's rating. Entity/Debt Rating Prior ----------- ------ ----- Sao Paulo, Municipality of LT IDR BB Affirmed BB ST IDR B Affirmed B LC LT IDR BB Affirmed BB LC ST IDR B Affirmed B Natl LT AAA(bra) Affirmed AAA(bra) Natl ST F1+(bra) Affirmed F1+(bra) USIMINAS: Court Orders Tenaris to Pay Indemnification ----------------------------------------------------- Tenaris S.A. disclosed that the Brazilian Superior Court of Justice (SCJ) resolved that Tenaris's subsidiary Confab and certain subsidiaries of Tenaris's affiliate Ternium, all of which compose the T/T Group under the Usiminas shareholders agreement, should pay Companhia Siderurgica Nacional, or CSN, an indemnification in connection with the acquisition by the T/T Group of a participation in Usiminas in January 2012. CSN and various entities affiliated with CSN had filed a lawsuit in Brazil against the T/T Group, alleging that, under applicable Brazilian laws and rules, the acquirers were required to launch a tag-along tender offer to all non-controlling holders of Usiminas ordinary shares for a price per share equal to 80% of the price per share paid in such acquisition. On September 23, 2013, the first instance court dismissed the CSN lawsuit, and on February 8, 2017, the court of appeals upheld the first instance court decision. On March 7, 2023, the SCJ rejected CSN's appeal by majority vote. The composition of the SCJ panel in charge of the case subsequently changed and CSN made several submissions in connection with the SCJ decision, including a motion for clarification with the SCJ that challenged the merits of its earlier decision. At the session, the SCJ completed its voting on CSN's motion for clarification and reversed, by majority vote, its March 7, 2023 decision, and granted CSN an indemnification, with CSN being allowed to retain ownership of the Usiminas ordinary shares it currently owns. Depending on how the indemnification is calculated by other courts, and assuming monetary adjustment and interest through May 31, 2024, the potential aggregate indemnification payable by Confab could reach up to BRL942 million (approximately $180 million). The Company continues to believe that all of CSN's claims and allegations are groundless and without merit, as confirmed by several opinions of Brazilian legal counsel, two decisions issued by the Brazilian securities regulator in February 2012 and December 2016, the first and second instance court decisions and the March 7, 2023 SCJ decision referred to above. The Company also believes that SCJ decision on CSN's motion for clarification is contrary to applicable substantive and procedural law. Accordingly, once the SCJ written votes are made available, Confab will file all available motions and appeals against the SCJ decision. As reported in the Troubled Company Reporter-Latin America on Sept. 17, 2024, Fitch Ratings has affirmed Usinas Siderurgicas de Minas Gerais S.A.'s (USIMINAS) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB' and National Scale rating at 'AA+(bra)'. Fitch has also affirmed the 'BB' rating for the senior unsecured notes due in 2026 issued by Usiminas International S.a r.l. and guaranteed by Usiminas. The Rating Outlook is Stable. ===================== P U E R T O R I C O ===================== D'PASTRY INC: Taps Carlos Alberto Ruiz as Bankruptcy Counsel ------------------------------------------------------------ D'Pastry Inc. seeks approval from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Licenciado Carlos Alberto Ruiz, LLC to handle its Chapter 11 case. The firm will be paid at an hourly rate of $295, plus expenses. Carlos Alberto Ruiz, Esq., an attorney at Licenciado Carlos Alberto Ruiz, disclosed in a court filing that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Carlos A. Ruiz Rodriguez, Esq. Licenciado Carlos Alberto Ruiz, LLC P.O. Box 1298 Caguas, PR 00726 Telephone: (787) 286-9775 Email: carloalbertoruizquiebras@gmail.com About D'Pastry Inc. D'Pastry Inc. filed a petition under Chapter 11, Subchapter V of the Bankruptcy Code (Bankr. D.P.R. Case No. 24-03678) on Aug. 30, 2024, listing under $1 million in both assets and liabilities. Licenciado Carlos Alberto Ruiz, LLC represents the Debtor as legal counsel. NAVIENT CORP: Ink $7.7M Student Loan Forgiveness Deal ----------------------------------------------------- Sydney Price at law360.com reports that Navient Corp. has reached an agreement with Puerto Rico's attorney general to forgive at least $7.7 million in private student loans after being accused of past predatory lending to student borrowers and pervasive loan servicing failures. Navient Corporation (Nasdaq:NAVI) is an American student loan servicer based in Wilmington, Delaware. Managing nearly $300 billion in student loans for more than 12 million debtors, the company was formed in 2014 by the split of Sallie Mae into two distinct entities: Sallie Mae Bank and Navient. PUERTO RICO: PREPA's US$188M Deal With Contractor Gets OK --------------------------------------------------------- law360.com reports that U.S. District Judge Laura Taylor Swain approved a roughly US$188 million settlement between the Puerto Rico Electric Power Authority (PREPA) and Cobra Acquisitions LLC to end claims against the utility for work stemming from Hurricane Maria. The Puerto Rico Fiscal Agency & Financial Advisory Authority and the Puerto Rico Electric Power Authority are represented by John J. Rapisardi of O'Melveny & Myers LLP, according to law360.com. About Puerto Rico Puerto Rico is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act ("PROMESA"). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico's PROMESA petition is available at http://bankrupt.com/misc/17-01578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies -- Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) -- commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Website https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. =============== X X X X X X X X =============== [*] BOND PRICING: For the Week September 16 to September 20, 2024 ----------------------------------------------------------------- Issuer Name Cpn Price Maturity Cntry Curr ---------- --- ----- -------- ----- ---- AMTD IDEA Group 1.5 7.5 KY USD AMTD IDEA Group 4.5 55.3 KY SGD 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. 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