/raid1/www/Hosts/bankrupt/TCRLA_Public/241220.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, December 20, 2024, Vol. 25, No. 255
Headlines
A R G E N T I N A
ARGENTINA: Exits Recession as Milei Eyes Growth Before Mid-Terms
ARGENTINA: Gets $60MM IDB Loan to Enhance Public Fin'l. Management
REPUBLIC OF ARGENTINA: DBRS Hikes Issuer Rating to B(low)
B E R M U D A
AFINITI LTD: Represented by Latham & Watkins in Recapitalization
B R A Z I L
BRF SA: S&P Affirms 'BB' Global Scale Rating, Outlook Now Positive
D O M I N I C A N R E P U B L I C
[*] DOMINICAN REPUBLIC: Disburses RD$29,350M for Royalty Payments
G U A T E M A L A
BANCO DE DESARROLLO: Moody's Assigns First Time Ba1 Deposit Rating
J A M A I C A
JAMAICA: Net Profits Climb to $20.54 Billion in November
JAMAICA: Twin Peaks Legislation Needed to Regulate Financial Sector
M E X I C O
PETROLEOS MEXICANOS: Fitch Affirms B+ LongTerm IDR, Outlook Stable
P U E R T O R I C O
ALUMAX INC: Seeks Bankruptcy Protection in Puerto Rico
LUCENA DAIRY: Court Extends Use of Cash Collateral to Jan. 8
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Exits Recession as Milei Eyes Growth Before Mid-Terms
----------------------------------------------------------------
Patrick Gillespie, writing for Bloomberg News, reports that
Argentina emerged from a brutal recession in the third quarter,
boosting the odds that President Javier Milei heads into next
year's mid-term elections with growth on the rebound alongside
cooling inflation.
Gross domestic product expanded 3.9% from July to September
compared to the previous three-month period, better than analysts'
expectations for 3.4% growth, Bloomberg News relates. From a year
ago, South America’s second-largest economy shrank 2.1% in the
third quarter, according to government data. The median estimate of
economists surveyed by Bloomberg was for a contraction of 2.6%,
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.
In March 2022, the International Monetary Fund (IMF) approved a
new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of
monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
On Nov. 15, 2024, Fitch Ratings has upgraded Argentina's
Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC'
from 'CC', and its Long-Term Local-Currency IDR to 'CCC' from
'CCC-'. Argentina's upgrade to 'CCC' from 'CC' reflects
developments that have improved Fitch's confidence in the
authorities' ability to make upcoming foreign-currency bond
payments without seeking relief of some sort.
S&P, in March 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 S&P ratings have
been affirmed as of August 2024. S&P said the stable outlook on
the long-term ratings balances the risks posed by pronounced
economic imbalances and other uncertainties with recent progress
in
making fiscal adjustments, reducing inflation, and undertaking
structural reforms to address long-standing microeconomic
weaknesses that have contributed to poor economic performance for
many years that it would likely consider to be distressed.
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: Gets $60MM IDB Loan to Enhance Public Fin'l. Management
------------------------------------------------------------------
Argentina will enhance its financial management with a $60 million
loan from the Inter-American Development Bank (IDB) to support its
fiscal consolidation measures. This initiative aims to increase the
technical efficiency of Argentina's spending and improve the
quality of public services for its citizens.
The project will strengthen national and provincial processes,
regulations, and systems for public financial management. It will
also upgrade the country's technological infrastructure to improve
the quality, timeliness, and processing of information, thereby
enhancing accountability.
Specifically, the operation will enhance Argentina's budgetary and
financial management model, aligning it with international best
practices. The reforms will strengthen results-based management and
monitoring and evaluation instruments and integrate the budget and
financial management of agencies currently operating outside the
federal public financial management system.
In terms of technology, the program will add big data and business
intelligence capabilities to the federal platform for public
financial management. It will also implement a data storage
platform with a dashboard to generate reports, mine, and analyze
data. Additionally, the country will enhance cybersecurity and
expand interoperability between different systems for managing
government data.
At the provincial level, the operation will provide technical
assistance for designing and implementing reforms, regulations,
processes, and procedures for better financial management. It will
also support provincial governments in modernizing and adjusting
their financial management platforms.
This project complements previous IDB operations aimed at
addressing Argentina's fiscal imbalances. It will enable the
country to improve the quality of public spending within its fiscal
consolidation plan, benefiting citizens and society through more
efficient and transparent use of public resources.
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.
In March 2022, the International Monetary Fund (IMF) approved a
new
30-month arrangement under an Extended Fund Facility for Argentina
in the amount of SDR 31.914 billion (equivalent to US$44 billion,
or 1000 percent of quota). The IMF Executive Board's decision
allowed the authorities an immediate disbursement of an equivalent
of US$9.65 billion in March 2022.
Argentina's IMF-supported program seeks to improve public finances
and start to reduce persistent high inflation through a
multi-pronged strategy, involving a gradual elimination of
monetary
financing of the fiscal deficit and enhancements in the monetary
policy framework.
In June 2024, the IMF Board completed an eighth review of the
Extended Arrangement under the Extended Fund Facility for
Argentina. The IMF Board's decision enabled a disbursement of
around US$800 million to support the authorities' efforts to
entrench the disinflation process, rebuild fiscal and external
buffers, and underpin the recovery.
On Nov. 15, 2024, Fitch Ratings has upgraded Argentina's
Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC'
from 'CC', and its Long-Term Local-Currency IDR to 'CCC' from
'CCC-'. Argentina's upgrade to 'CCC' from 'CC' reflects
developments that have improved Fitch's confidence in the
authorities' ability to make upcoming foreign-currency bond
payments without seeking relief of some sort.
S&P, in March 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 S&P ratings have
been affirmed as of August 2024. S&P said the stable outlook on
the long-term ratings balances the risks posed by pronounced
economic imbalances and other uncertainties with recent progress
in
making fiscal adjustments, reducing inflation, and undertaking
structural reforms to address long-standing microeconomic
weaknesses that have contributed to poor economic performance for
many years that it would likely consider to be distressed.
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.
REPUBLIC OF ARGENTINA: DBRS Hikes Issuer Rating to B(low)
---------------------------------------------------------
DBRS, Inc. upgraded the Republic of Argentina's (Argentina)
Long-Term Foreign and Local Currency -- Issuer Ratings to B (low)
from CCC. At the same time, Morningstar DBRS confirmed Argentina's
Short-Term Foreign and Local Currency -- Issuer Ratings at R-5. The
trend on all ratings is Stable.
KEY CREDIT RATING CONSIDERATIONS
The upgrade reflects Argentina's improving macroeconomic outlook
and the government's strengthening repayment capacity. The Milei
administration has enacted a large fiscal adjustment this year,
which is expected to result in Argentina's first fiscal surplus
since 2008. The scale and front-loaded design of the consolidation
has improved the outlook for public finances, reduced rollover
risks in the local bond market, and acted as an anchor for
macroeconomic stabilization. Monthly inflation declined to 2.7% in
October 2024, sharply down from the start of the year. The
elimination of monetary financing has helped restore price
stability even as the government has cut subsidies that were
distorting relative prices. In addition, President Milei remains
popular despite the deep economic recession in the first half of
2024. Midterm elections in October 2025 will be important to the
outlook, as the President aims to increase his legislative base and
secure the reform agenda. The credit rating action reflects
improvements in the "Fiscal Management and Policy" and "Monetary
Policy and Financial Stability" building blocks.
The B (low) credit ratings reflect the significant economic and
political challenges still facing Argentina. The lack of reserves
is a key vulnerability to the near-term outlook. Without reserves
or access to international markets, Argentina runs the risk of
having insufficient hard currency to make its external debt
payments. The crawling peg exchange rate may also be contributing
to an overvalued peso, which could make it difficult to generate
reserves. While the economy bottomed out in the second quarter of
2024, the pace of recovery is unclear. The IMF forecasts GDP growth
of 5.0% in 2025 and 4.7% in 2026. Morningstar DBRS views the
forecast as a reasonable baseline but believes there are material
downside risks. Furthermore, Argentina's history of macroeconomic
mismanagement and extreme shifts in policy orientation over the
course of the electoral cycle weigh on the credit ratings.
CREDIT RATING DRIVERS
The credit ratings could be upgraded if 1) policy actions
significantly increase reserves and restore market access, and 2)
the political commitment to policies that support macroeconomic
stabilization is sustained through the electoral cycle. Reforms
that improve medium-term growth prospects would also be credit
positive.
The credit ratings could be downgraded if government debt dynamics
or funding conditions deteriorate such that the odds of a
restructuring of bonds held by the private sector materially
increase.
CREDIT RATING RATIONALE
The Milei administration has Implemented a Large and Rapid Fiscal
Adjustment
The fiscal adjustment in 2024 is equal to more than 5% of GDP and
is consistent with running an overall balanced budget for the year.
The consolidation is almost entirely expenditure-based, composed of
lower social security spending, cuts to energy and transport
subsidies, and a decline in capital spending. Budgetary results
through the first ten months of the year are broadly in line with
the zero-deficit target. The consolidation is not only large; it is
front-loaded. Almost all the adjustment takes place in 2024, with
little additional tightening expected during the remaining three
years of the President Milei's 4-year term. As a result, the fiscal
stance presented in the 2025 Budget shifts from highly
contractionary in 2024 to more neutral next year. The government is
targeting another balanced budget. Spending is expected to decline
by 0.5% of GDP next year, reflecting lower subsidies and transfers,
but expenditure cuts will be more than offset by tax cuts.
However, risks to the fiscal outlook remain high, in our view. The
elimination of the PAIS tax on dollar purchases and the one-off
nature of the tax amnesty in 2024 will contribute to lower revenues
in 2025. At the same time, public investment will likely need to
increase from a very low level. While we expect the Milei
administration to take whatever measures are necessary to maintain
a balanced, or close to balanced, budget in 2025, permanent
consolidation measures will eventually be needed to underpin the
durability of the adjustment.
The Fiscal Correction and Elimination of Monetary Financing has
Helped Tame Inflation
The introduction of a crawling peg exchange rate (2% monthly
depreciation relative to USD), the elimination of monetary
financing, and a deep economic recession are helping restore price
stability. When the Milei administration quickly devalued the
currency upon assuming office in December 2023, inflation surged to
25.5% month-over-month. Since then, monthly inflation has declined
sharply, reaching 2.7% in October 2024. The decline in inflation
was achieved even as the Milei administration cut energy and
transportation subsidies that were distorting relative pricing.
Inflation is expected to continue easing, albeit gradually.
According to the central bank's October Market Expectations Survey,
monthly inflation is anticipated to average 2.5% over the next 12
months. President Milei has signaled that if inflation trends
downwards in the coming months, the pace of the crawl' could be
lowered and, eventually, the exchange rate could be allowed to
float and the capital controls could be lifted. Notwithstanding
clear progress, durably reducing inflation continues to present a
significant policy challenge. Monetary policy transmission is weak,
some administered prices still require upward adjustment to achieve
market rates, and wage negotiations across the economy could
reinforce inertial price pressures.
Macroeconomic stabilization and regulatory changes are having a
positive impact on Argentina's banking system. In the absence of
large fiscal deficits to finance, banks are resuming their
traditional role as financial intermediaries to the private sector.
Banks' exposure to the public sector has started to decline from
historically high levels. Credit to the private sector is
increasing at a solid pace, albeit from a very low level. Moreover,
the banking system is weathering the recession relatively well. In
aggregate, banks are highly capitalized, liquid, and hold low
levels of non-performing loans. The shift in the composition of
assets, combined with the elimination of minimum deposit rates, has
also supported banks profitability.
The Exchange Rate Regime May Pose Challenges to Reserve
Accumulation
The low level of reserves is a vulnerability given the large FX
obligations coming due over the next few years. With inflation
still outpacing the crawling peg, the real effective exchange rate
(REER) has appreciated and now looks strong relative to historical
levels. The FX spread has declined from its peak in July but is
still around 10%. In this context, the process of reserve
accumulation, which got off to a good start in early 2024, has
stalled over the last five months. Net reserves (gross reserves
minus FX bank reserve requirements, swap lines, and other FX
obligations) were approximately $5 billion in the red in early
November.
Boosting reserves with the current policy settings looks difficult.
The current account shifted from a deficit of 3.2% of GDP to a
modest surplus in the first half of 2024. The shift was due to a
recovery in agricultural exports following a year of drought and
strong import compression. The surplus could diminish in the second
half of the year, especially if the economic recovery accelerates
and an overvalued currency leads to higher imports. At the same
time, dollar inflows through the financial account are limited due
to capital controls and the country's inability to tap
international markets. Argentina's holds a sizable net
international asset position amounting to $81 billion, or 43% of
GDP. However, this largely reflects a lack of confidence in the
local market. From Q2 2019, just before capital controls where
imposed, to Q2 2024, currency and deposits held abroad by Argentine
residents increased by $61 billion, thereby lifting the stock to
$262 billion. Therefore, despite a current account surplus and a
net positive asset position, we see considerable external risks
that warrant a sizable negative adjustment to our assessment of the
Balance of Payments building block.
Medium-Term Debt Sustainability Outlook is Improving But Near-Term
Risks are Elevated
Without reserves or access to international markets, Argentina runs
the risk of having insufficient hard currency to make its external
debt payments. Principal and interest payments on Argentina's
hard-currency bond obligations total $9.2 billion in 2025,
including payments of $4.3 billion in January and July. However,
prospects for repayment appear to be improving. Sovereign bond
yields have declined over the last few months and are approaching
levels that would allow a return to the global bond market. The
government is also seeking other sources of external funding. There
is a possible three-year $2.7 billion repurchase agreement with
several commercial banks. The Milei administration is seeking
official financing from multilateral lenders. The IMF and Argentina
are negotiating a new program, although it is unclear whether the
IMF would agree to any net new financing.
The Milei administration is rebuilding the domestic bond market.
The government's fiscal consolidation, combined with market
operations to extend the maturity profile of local currency bonds,
has reduced financing pressures in the near term. However, rollover
rates have benefited from the maintenance of capital controls.
Rolling domestic debt could be more challenging once capital
controls are lifted, potentially requiring higher real rates to
attract buyers.
Risks to debt sustainability elevated, in Morningstar DBRS' view.
Government debt-to-GDP jumped to 155% in 2023 as the step
devaluation in December led to a sharp decline in nominal GDP in
USD terms. Under the IMF's baseline scenario, the debt-to-GDP will
decline to 91% in 2024 as the overshooting of the real effective
exchange rate reverses. The ratio trends downward - reaching 60% in
2027 - on the back of sizable primary surpluses. However,
uncertainty around the outlook is very high. Risks include
reversals in the fiscal consolidation, tighter global financing
conditions, and potential international court rulings against
Argentina. The considerable risks to debt sustainability combined
with Argentina's weak liquidity position lead us to make a negative
adjustment in the Building Block Assessment for Debt & Liquidity.
Milei Looks to Advance His Agenda With Legislative Gains in the
October 2025 Midterm Elections
President Milei has deftly built congressional alliances to advance
his agenda and used his cross-party appeal to mollify the
opposition. Public confidence in the administration remains high,
despite the pain of the policy adjustment. The administration's
performance in the October 2024 midterm elections will be important
to the economic outlook. Milei's party, La Libertad Avanza (LLA),
only holds 38 seats out of 257 in the lower house and 7 seats of 72
in the Senate. A strong outcome for LLA and allied parties could
reinforce the reform agenda and bolster market confidence. On the
other hand, a strengthened opposition could weaken Milei's reform
momentum and raise governability risks.
Morningstar DBRS views the broader issue of institutional quality
in Argentina as a credit challenge. In many respects, Argentina's
democracy is quite strong: competitive and fair elections are
regularly held, basic civil and political freedoms are protected,
and an active media and civil society is engaged in the democratic
process. According to the Worldwide Governance Indicators,
Argentina scores relatively well compared to regional peers in
terms of Voice & Accountability. However, a key governance
challenge is the Rule of Law. Public confidence in the integrity of
the judiciary and other branches of government is generally low. In
addition, we view policy predictability as weak, with frequent and
significant changes to policy settings and frameworks over the
electoral cycle. The heightened policy-related risks weigh on the
Political Environment Building Block Assessment.
Argentina's Growth Performance has been Poor; Reforms Could
Strengthen the Medium-Term Outlook
Over the last ten years, real GDP per capita in Argentina declined
by 10%. This poor growth performance has been due to macroeconomic
mismanagement, an onerous and costly regulatory environment, and
limited global integration. Investment averaged 17.2% of GDP over
the last decade, one of the lowest rates among emerging markets.
Labor market conditions have also fared poorly. The cumulative
number of salaried private sector jobs created was 355,000 at a
time when the economically active population increased by 3.4
million, implying that jobs increasingly shifted towards public and
informal employment.
The Milei administration has steered reforms through Congress that
should strengthen medium-term growth. Measures include labor market
liberalization, widespread deregulation efforts, the privatization
of state-owned firms, and the introduction of an incentive regime
for large investments in strategic sectors (RIGI). The IMF
estimates Argentina's potential growth at 2.4%, which is better
than its historical performance (growth averaged 2.0% over the last
30 years). We see risks around the IMF's medium-term forecast as
balanced. Recent measures could have a bigger than expected impact
on growth. Another source of upside risk to growth comes from the
energy and mining sector, which could rapidly expand if investment
conditions are strengthened. However, absent macroeconomic
stability and structural reforms over time, the Argentine economy
could underperform the baseline growth outlook.
Notes: All figures are in US dollars unless otherwise noted. Public
finance statistics reported on a general government basis unless
specified.
=============
B E R M U D A
=============
AFINITI LTD: Represented by Latham & Watkins in Recapitalization
----------------------------------------------------------------
Afiniti, Ltd., a global customer experience and artificial
intelligence provider, has announced that it has successfully
completed its recapitalization transaction with its secured
lenders, led by Vista Credit Partners, and significant shareholder,
The Resource Group International Limited. The transaction enables
Afiniti to move forward with a stronger financial foundation to
accelerate growth. The transaction was completed following court
approvals in Bermuda and in a Chapter 15 proceeding in the United
States.
Latham & Watkins LLP represented Afiniti in the transaction with a
multidisciplinary team led by Restructuring & Special Situations
partners George Davis, Bruce Bell, David Hammerman, and Jason Gott,
with associates Jonathan Gordon and Meghana Vunnamadala. Advice was
provided on M&A matters by partner Jane Greyf and counsel Ben
Kaplan, with associates Jesse Lake, Jack Katzenstein, and Eric
Rothman; on banking matters by partner Nicole Fanjul and counsel
Shahid Jamil, with associates Diana Duan, Kavi Huded, and Signe
Olsson; on real estate matters by counsel Karen Ritter; on tax
matters by partner Joseph Kronsnoble and counsel William Kessler,
with associate Lukas Kutilek; on securities matters by partners
Greg Rodgers and Benjamin Cohen, with associates James Sullivan and
Ryan Gold; on foreign regulatory matters by partner Cesare Milani
and counsel Ludmilla Le Grand, with associates Edoardo Cassinelli
and James Mathieson; on employee benefits matters by partner
Benjamin Rosemergy, with associate Daniel Bop; on intellectual
property matters by partners Jeffrey
Tochner and Jessica Cohen, with associate Alan Kim; and on
litigation matters by partners Matthew Salerno and Amy Quartarolo.
About Afiniti Ltd.
Afiniti Ltd. provides management consultancy services.
Afiniti Ltd. sought relief under Chapter 15 of the U.S. Bankruptcy
Code (Bankr. D. Del. Case No. 1:24-bk-12539) on Nov. 3, 2024, to
seek U.S. recognition of the liquidation proceedings in Bermuda.
The Debtor tapped Young Conaway Stargatt & Taylor LLP as its U.S.
counsel.
===========
B R A Z I L
===========
BRF SA: S&P Affirms 'BB' Global Scale Rating, Outlook Now Positive
------------------------------------------------------------------
On Dec. 17, 2024, S&P Global Ratings revised the outlook on its
global scale rating on BRF S.A. to positive from stable. S&P also
affirmed its 'BB' global scale and 'brAAA' national scale ratings
on the company, as well as its 'BB' issue rating on its senior
notes. The recovery rating on the notes remains '3' (65%).
The positive outlook reflects S&P's expectation that BRF will be
able to sustain leverage below 2.0x in the next two years despite
higher dividends and capital expenditure, providing more cushion to
face potentially weaker industry conditions.
BRF has improved margins for another consecutive quarter to sustain
record-high EBITDA in 2024, and S&P expects leverage will remain
below 2.0x through 2025. The company has benefited from sustained
adequate product prices in its main markets, coupled with much
lower grain prices, with corn and soybean accumulating declines of
about 22% and 16%, respectively, in 2024. Along with strategic
initiatives, these price trends improved BRF's adjusted margins to
18.6% in the third quarter of 2024 (from 8.9% in the third quarter
of 2023) and 15.5% in the 12 months ended Sept. 30, 2024 (from 6.9%
in the same period last year).
S&P said, "We also expect solid performance in the fourth quarter
of 2024, considering it's historically a strong period for the
company. We now forecast BRF will deliver consolidated nominal
EBITDA of about R$10.3 billion in 2024, with EBITDA margin of
17.1%, while leverage should remain at 1.4x--compared with our
previous forecasts of R$ 7.7 billion, 13.5%, and 2.1x,
respectively. The higher EBITDA and better working capital
management have supported robust cash generation, which BRF has
used partly to reduce its gross debt and interest burden.
"In 2025, we foresee some increase in corn prices, pressuring
costs. However, we expect the competitiveness of poultry in
relation to other proteins and BRF's cost initiatives to sustain
margins around 14% in 2025, with nominal EBITDA close to R$9.4
billion--lower than in 2024 but significantly higher than in past
years--while leverage should remain stable at about 1.5x."
BRF's initiatives toward cost controls and improving the product
mix should provide more cushion for margins amid stress scenarios.
Initially implemented in 2023, the BRF+ program has been the
company's main initiative to structurally improve margins and
lessen volatility, with a focus on simplifying its cost structure,
improving capacity usage in its plants, and revising distribution
and logistics networks. According to management's calculations, the
program has accounted for about 3% of the gains in margins in
2024.
Meanwhile, BRF also continues to invest in its product mix to
increase exposure to processed foods, which historically have
provided higher margins and which S&P estimates account for close
to 45% of the company's revenue. In Brazil, the company continues
to reinforce its market share in the segment with increasing
volumes, leveraging its partnership with Marfrig brands.
Internationally, continued efforts to increase new export
authorizations, coupled with investments in capacity--both
organically and inorganically–and the product portfolio, should
continue to propel BRF's growth in the segment.
S&P said, "We believe these factors provide more cushion to BRF's
profitability and allow it to reduce nominal debt, potentially
limiting drops in margins and other metrics during negative cycles,
such as in 2022 and 2023.
"Our base case assumes controlled leverage, even amid rising cash
outflows. We expect BRF to raise capital expenditure (capex) in
2025 for its strategic projects. We forecast investments will
increase to about R$3.5 billion per year in the next two years,
from our forecast of about R$2.4 billion in 2024, absent other
material expansion projects or mergers and acquisitions. However,
we still expect the company to sustain free operating cash flow
(FOCF) of R$3.0 billion-R$ 4.0 billion per year in 2025 and 2026.
"At the same time, after several years without paying dividends,
BRF recently announced a payout of about R$1.2 billion in 2024. We
assume the company will continue to turn to dividends and share
repurchases in the coming years to return value to its
shareholders, although it has not disclosed any specific payout
guidance.
"Even in this scenario, we expect BRF to maintain leverage below
2.0x. Still, how the company manages its capital allocation and its
ability to take countercyclical measures in periods of distress
will be key to maintaining leverage."
===================================
D O M I N I C A N R E P U B L I C
===================================
[*] DOMINICAN REPUBLIC: Disburses RD$29,350M for Royalty Payments
-----------------------------------------------------------------
Dominican Today reports that the National Treasury has disbursed
99.6% of the RD$29,350 million allocated for public sector
employees as part of the Pascual Royalty payments. Of this amount,
RD$23,767 million was directed to the Central Government and
RD$5,592 million to decentralized entities, according to Dominican
Today. The remaining funds are expected to be paid later,
according to National Treasurer Luis Rafael Delgado Sanchez, the
report notes.
Delgado Sanchez explained that delays in bonus payments for certain
institutions occurred because they did not submit their payrolls on
time, the report relays. Payment priorities included retirees,
followed by members of the Armed Forces and the police force, the
report notes.
Additionally, the National Treasury will receive the NovaGob
Excellence 2024 award in Spain on December 12 for third place in
the Digital Transformation of Government Payments category,
recognizing its Treasury Revenue Collection System (SIRITE), the
report says. The Treasury was also named president of the Forum of
Government Treasuries of Latin America (Fotegal) for 2024-2025
during the XIV Annual Latin American Seminar on Public Treasury
Management in El Salvador, 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.
Standard & Poor's credit rating for Dominican Republic was raised
to 'BB' in December 2022 with stable outlook. Moody's credit
rating for Dominican Republic was last set at Ba3 in August 2023
with the outlook changed to positive. Fitch, in December 2023,
affirmed the Dominican Republic's Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB-' and revised the outlook to positive.
=================
G U A T E M A L A
=================
BANCO DE DESARROLLO: Moody's Assigns First Time Ba1 Deposit Rating
------------------------------------------------------------------
Moody's Ratings has assigned a first-time Ba1 and Not Prime long-
and short-term local and foreign currency deposit ratings; Ba1 and
Not Prime long- and short-term local and foreign currency
counterparty risk ratings; and Ba1(cr) and Not Prime(cr) long- and
short-term counterparty risk assessments to Banco de Desarrollo
Rural, S.A. (Banrural). At the same time, Banrural's baseline
credit assessment (BCA) and adjusted BCA were assigned at ba2. The
outlook on the long-term deposit ratings is assigned stable.
RATINGS RATIONALE
ASSIGNMENT OF BASELINE CREDIT ASSESSMENT
In assigning a BCA of ba2 to Banrural, Moody's acknowledge the
bank's well-established presence in the Guatemalan market, its
leading position in the consumer lending segment, and its extensive
branch network that underpins its social role in providing banking
services, resulting in a steady and granular deposit base. The ba2
standalone BCA also reflects the bank's strong and consistent
earnings structure as well as adequate capitalization metrics.
Banrural's problem loans ratio has deteriorated gradually since
March 2023, with problem loans to gross loans reaching 4.0% in
September 2024, up from 2.8% one year prior, and above the
systemwide average of 2.5%. This deterioration was mainly driven by
cases in the commercial portfolio, which shows a moderate
concentration, as the top 20 commercial loans represent 68% of
Tangible Common Equity (TCE). Consumer and SME lending accounted
for 48% and 18% of the portfolio in September 2024, respectively,
and have been supported by a resilient domestic market and economic
growth perspectives moderately above the historic average. Banrural
maintains ample reserves for loans losses that accounted for 204%
in September 2024, which will help to mitigate rising losses from
the accelerated loan growth, which remains in line with the
market.
Banrural's ba2 BCA also highlights its strong profitability
indicators, including a high net interest margin of 5.9% as of
September 2024, and net income to tangible assets of 2.4%, that
have increased on the back of the expansion of its loan origination
in the past 3 years. This performance has been benefiting from its
focus on higher-yield consumer loan products, a large and low-cost
core deposit base, and high liquidity position largely placed in
government bonds that accounted for 37% of total assets in
September 2024. As loan origination continues to stay in the lower
double-digit range in the coming quarters, Moody's expect a
systemwide increase in loan loss provisions, posing a challenge to
maintaining the profitability levels observed in recent quarters.
In terms of capitalization, Banrural has a robust earnings stream
that provides adequate capital replenishment to support asset
growth, maintaining adequate buffers to loss absorption. In
September 2024, tangible common equity (TCE) to risk weighted
assets (RWAs) ratio stood at 14.1%, up from an average of 12.0%
between 2021 and 2023.
The bank's funding structure is a key credit strength, with core
deposits accounting for almost 80% of total deposits as of
September 2024, which provides significant financial flexibility
and high liquidity cushion, as deposit continue to grow close to 8%
a year. As the second largest bank in Guatemala, with a social
role, Banrural benefits from a high inflow of remittances from the
US. Moody's expect this will continue to indirectly support the
growth of core deposits and reduce the bank's vulnerability to
institutional market fluctuations.
The assigned ratings also incorporate Banrural's environmental,
social and government (ESG) considerations, as per Moody's General
Principles for Assessing Environmental, Social and Governance
Risks. Moody's view Banrural's exposure to governance risks as
moderate, reflected in a Governance Issuer profile Score (IPS) of
G-3, largely stemming from its public-private ownership, which
could pose challenges in maintaining shareholder agreements and
implementing efficient conflict resolution mechanisms. However,
these risks are mitigated by Banrural's consistent corporate
governance practices, checks and balances in the board of
directors, and its track record of achieving steady earnings and
strategic goals.
ASSIGNMENT OF DEPOSIT RATINGS
Banrural's Ba1 long-term deposit ratings reflects its BCA of ba2,
plus the incorporation of a one-notch uplift from government
support based on Moody's assessment of a very high likelihood of
support from the Government of Guatemala (Ba1 stable). This
assessment is based on Banrural's systemic importance as the second
largest bank in the system, holding a 23.4% deposit market share as
of September 2024, rather than on the government's participation in
its shareholder structure.
OUTLOOK
The stable outlook on the long-term deposit ratings reflects
Moody's expectation that the bank's solvency and liquidity will
remain broadly stable over the next 12 to 18 months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Banrural's BCA could be upgraded if the bank reports a significant
and sustained improvement in asset quality and profitability
metrics, which could also imply in a consistently higher
capitalization ratio supporting its solvency during a period of
high growth. An upgrade of the Government of Guatemala's sovereign
bond rating would likely result in a corresponding change in the
bank's deposit ratings as a result of government support
incorporation.
Conversely, downward pressure to Banrural's deposit ratings would
likely come from a downgrade of the Government of Guatemala's bond
rating. While negative pressure of its ba2 BCA could arise from
further and consistent deterioration in asset quality indicators,
causing a significant reduction in profitability and capital
position.
The principal methodology used in these ratings was Banks published
in November 2024.
=============
J A M A I C A
=============
JAMAICA: Net Profits Climb to $20.54 Billion in November
--------------------------------------------------------
RJR News reports that the Bank of Jamaica is reporting that its net
profits climbed to $20.54 billion as at the end of November this
year.
Its assets for the period increased to $1.15 trillion, according to
RJR News.
This was due to the surge in its foreign assets to $863.34 billion
last month, up from $733.2 billion in November 2023, the report
notes.
The bank's local assets for the period dipped from $295.1 billion
last November to $279.56 billion this year, the report adds.
About Jamaica
Jamaica is an island country situated in the Caribbean Sea. Jamaica
is an upper-middle income country with an economy heavily dependent
on tourism. Other major sectors of the Jamaican economy include
agriculture, mining, manufacturing, petroleum refining, financial
and insurance services.
In October 2023, Moody's upgraded the Government of Jamaica's
long-term issuer and senior unsecured ratings to B1 from B2, and
senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has
been changed to positive from stable.
In September 2023, S&P Global Ratings raised its long-term foreign
and local currency sovereign credit ratings on Jamaica to 'BB-'
from 'B+', and affirmed its short-term foreign and local currency
sovereign credit ratings at 'B', with a stable outlook. In
September 2024, S&P affirmed 'BB-/B' sovereign ratings on Jamaica
and revised outlook to positive.
In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook
is Stable.
JAMAICA: Twin Peaks Legislation Needed to Regulate Financial Sector
-------------------------------------------------------------------
RJR News reports that Bank of Jamaica Governor Richard Byles said
the central bank needs the Twin Peaks legislation in order to force
the members of the local financial sector to provide better
customer service.
Speaking at a meeting of the Standing Finance Committee in
Parliament, Mr. Byles said the existing legislation does not
provide the central bank with the tools necessary to hold the
sector accountable, according to RJR News.
Under the Twin Peaks Model, which was announced in 2023 by former
Finance Minister Dr. Nigel Clarke, the BOJ will assume full
responsibility for prudential supervision of all bank and non-bank
financial institutions from the Financial Services Commission
(FSC), the report notes.
The FSC will be transformed into a new regulatory entity that
supervises these institutions from the perspective of market
conduct and protection of consumers of financial services, the
report adds.
About Jamaica
Jamaica is an island country situated in the Caribbean Sea. Jamaica
is an upper-middle income country with an economy heavily dependent
on tourism. Other major sectors of the Jamaican economy include
agriculture, mining, manufacturing, petroleum refining, financial
and insurance services.
In October 2023, Moody's upgraded the Government of Jamaica's
long-term issuer and senior unsecured ratings to B1 from B2, and
senior unsecured shelf rating to (P)B1 from (P)B2. The outlook has
been changed to positive from stable.
In September 2023, S&P Global Ratings raised its long-term foreign
and local currency sovereign credit ratings on Jamaica to 'BB-'
from 'B+', and affirmed its short-term foreign and local currency
sovereign credit ratings at 'B', with a stable outlook. In
September 2024, S&P affirmed 'BB-/B' sovereign ratings on Jamaica
and revised outlook to positive.
In March 2022, Fitch Ratings affirmed Jamaica's Long-Term Foreign
Currency Issuer Default Rating (IDR) at 'B+'. The Rating Outlook
is Stable.
===========
M E X I C O
===========
PETROLEOS MEXICANOS: Fitch Affirms B+ LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Petroleos Mexicanos' (PEMEX) Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B+'
with a stable outlook. Additionally, Fitch has affirmed the rating
of approximately USD80 billion of PEMEX's international notes
outstanding at 'B+' with a Recovery Rating of 'RR4'.
PEMEX's ratings are four notches below the sovereign reflecting
Fitch's view that PEMEX remains financially vulnerable and its ESG
track record further impairs its ability to raise capital.
Key Rating Drivers
Linkage to Sovereign Rating: The inclusion of PEMEX in Mexico's
annual budget, for the second year in a row is credit positive,
signaling increased visibility on timing and magnitude of
government support. The approved budget included USD6.7 billion of
support for PEMEX in 2025, covering most of its USD8.9 billion of
debt maturities for the year. Although still unclear, it is likely
that the balance will be covered with tax reductions and deferrals,
and possibly refinancing of some sort. Additional support is needed
to address the company's USD18.2 billion of short-term debt
reported in 3Q24.
Fitch believes continuing inclusion of PEMEX in the annual budget
will make further support easier. Fitch estimates PEMEX will need
to address a USD75 billion cash shortfall between 2025 and 2027, in
addition to USD20 billion in maturities between 2025 and 2027,
assuming no capital injections and no contribution from the
government past 2025. A continuing trend of support and enhanced
visibility could prompt a reassessment of the linkage score, which
could, in turn and per Fitch's Government-Related Entity Criteria,
trigger a change in the approach to notching to PEMEX's rating.
Cash Flow Generation: Fitch forecasts negative FFO margins through
2027, due to rising interest expenses potentially surpassing EBITDA
if debt issuances continue at current rates. Assumptions include a
USD 6.7 billion government contribution in 2025, with no further
contributions. Expected EBITDA compression is due to lower crude
prices through 2027, and losses in the downstream business. PEMEX
will need additional government support to cover capex, estimated
at USD 12 billion annually. PEMEX had fires at critical assets in
2023 and 2024, remaining vulnerable to operational disruptions.
Persisting Elevated Leverage: PEMEX's indebtedness remains a key
factor in its financial deterioration. As of September 30, 2024,
PEMEX reported USD 97 billion in debt. Fitch estimates PEMEX's 2024
interest expense at USD 8.3 billion, over half of the expected
EBITDA. On a per barrel basis, PEMEX pays roughly USD 9/boe in
interest, compared to USD 2-3/boe for regional peers. Expected
leverage is 8.8x, placing its standalone credit profile in the
lower range of the corporate rating scale. Debt to 1P reserves
exceeds USD 14/boe, underperforming against Petrobras and
Ecopetrol, who are below USD 10/boe.
Operational Track Record: Fitch believes the multiple fires at
critical assets and infrastructure that resulted in injuries and
fatalities to employees and contractors raise operational
management concerns and the lack of maintenance capex. High debt
service and need for the government to cover cash deficit are key
reasons for under investment. The message of the new administration
regarding a cap to upstream production and intensified efforts in
the downstream poses a threat on liquidity unless more tangible and
timely government support is provided to address capex and debt
service.
PEMEX's track record regarding GHG emissions, hazardous materials
management and ecological impacts is an ESG concern. PEMEX
experienced multiple fires at critical assets, which will likely
have impacts on the local communities and environment. Fitch
believes operational management and the lack of maintenance capex
in core assets and infrastructure will further challenge PEMEX's
financial profile. This was a key consideration in the 'B+' rating,
as PEMEX's ESG track record can further impair its ability to raise
capital.
Employee Wellbeing is also an ESG concern when assessing PEMEX's
credit profile. Several incidents stemming from underinvestment in
critical assets have caused injuries and fatalities of employees
and contractors. Many of these have also had damaging environmental
impacts, that are likely to affect the company from a financial and
reputational standpoint.
Derivation Summary
PEMEX's link to the sovereign is weaker compared to Petroleo
Brasileiro S.A. (Petrobras) (BB/Stable), Ecopetrol S.A.
(BB+/Stable), and Empresa Nacional del Petroleo (A-/Stable), which
benefit from strong government support. However, PEMEX compares
favorably to Petroperu (CCC+), as Peru's government only meets
Petroleos del Peru's immediate needs without improving its capital
structure. Petroperu's market share drop from 45% to 25% caused
minimal disruptions due to alternative fuel imports. Fitch believes
regional governments, except for Mexico and Peru, have taken steps
to ensure their national oil and gas companies' SCPs remain viable
long-term.
Fitch views PEMEX's SCP as commensurate with the 'ccc-' level,
which is 10 notches below Petrobras's SCP 'bbb' and 9 notches below
Ecopetrol's of 'bbb-'. The differences are primarily due to PEMEX's
weaker capital structure and increasing debt. PEMEX's SCP reflects
the company's large transfers to Mexico's federal government, large
and increasing financial debt balance when compared with 1P
reserves and elevated EBITDA-adjusted leverage. Comparatively,
Ecopetrol and Petrobras significantly strengthened their capital
structures and maintained stable operating profiles.
Key Assumptions
- Average West Texas Intermediate crude prices of USD75/bbl in
2024, USD65bbl in 2025, USD60bbl in 2026, and USD57bbl for the
mid-cycle;
- Henry Hub prices of, USD2.25/mcf in 2024, USD2.25/mcf in 2025,
USD3.0/mcf in 2026 and thereafter;
- Oil Production stays flat at 1.75mmboed;
- Annual capex average of USD12 billion;
- Government take to average 60% of EBITDA per annum;
- All short-term debt and debt maturities are refinanced at 11%;
- PEMEX will receive necessary support from the government to
ensure adequate liquidity and debt service payments;
- Refined product volumes growth moves aligned with Fitch's Real
GDP growth forecasts of 1.5% in 2024, 1,4% in 2025, and 2.0%
thereafter.
Recovery Analysis
PEMEX receives preferential treatment under Mexican bankruptcy law.
The company cannot technically default under the current code.
Still, the company has USD97 billion in debt of which USD80 billion
is in international bonds, which translates into an implied
recovery using the liquidation approach of 40%. Company assets are
predominately in Mexico, with the exception of its Deer Park
refinery in Texas and senior unsecured debt.
Given the government ownership and strategic importance of these
assets, it is highly unlikely that creditors will have claims to
assets. Further, on a going concern basis, the company's equity
value is negative and going concern EBITDA does not properly
reflect cash flow available for debt service, given the high
government take, which makes FFO negative.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A downgrade of Mexico's sovereign rating;
- Weakened ability and/or willingness of the government to
meaningfully support PEMEX;
- Inaccessibility of financing and/or material increase in interest
expense;
- Cash balance falling below USD3.0 billion on sustained basis;
- An inability to successfully manage supplier liability.
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- An irrevocable guarantee from Mexico's government to sustainably
cover more than 75% of PEMEX's debt;
- A material change in PEMEX's debt structure or material
capitalization, coupled with continued track record of support in
the way of budgetary considerations to provide liquidity for debt
service;
- Further reduction of taxes, with a business plan that results in
neutral to positive FCF through the cycle, while implementing
sustainable upstream capex that is sufficient to replace 100% of
reserves and stabilize production profitably.
Liquidity and Debt Structure
PEMEX's liquidity position remains weak as a result of negative
FCF, which resulted in a relatively low cash position and reduced
availability of its lines of credit. The company reported total
cash and equivalents of around MXN93 billion as of 3Q24 and
reported MXN1.910 trillion of total debt with MXN359 billion in
short-term debt.
Issuer Profile
PEMEX, Mexico's state oil and gas company, is the nation's largest
company and ranks among the world's largest vertically integrated
petroleum enterprises.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
Petroleos Mexicanos has an ESG Relevance Score of '5' for Waste &
Hazardous Materials Management; Ecological Impacts due to numerous
fires at its operating facilities that are expected to increase its
carbon footprint and risks to polluting the environment and its
impact on local communities, which has a negative impact on the
credit profile, and is highly relevant to the rating, resulting in
an implicitly lower rating.
Petroleos Mexicanos has an ESG Relevance Score of '5' for
Management Strategy due to the confluence of the company's ESG
track record and its financial distress, which is expected to
further complicate management's ability to execute on its strategy,
which has a negative impact on the credit profile, and is highly
relevant to the rating, resulting in an implicitly lower.
Petroleos Mexicanos has an ESG Relevance Score of '5' for GHG
Emissions & Air Quality due to the numerous incidents at its
operating facilities that are expected to increase its carbon
footprint and risks to polluting the environment and its impact on
local communities, which has a negative impact on the credit
profile, and is highly relevant to the rating, resulting in an
implicitly lower rating.
Petroleos Mexicanos has an ESG Relevance Score of '5' for Employee
Wellbeing due to multiple fires that occurred in 2023 and 2024 that
resulted in numerous reported injuries and fatalities of its
employees. Fitch is concerned regarding the management of its
operations, and the regulatory oversight to ensure PEMEX and other
operators in the country are meeting industry standards pertaining
to safety and employee wellbeing, which has a negative impact on
the credit profile, and is highly relevant to the rating, resulting
in an implicitly lower.
Petroleos Mexicanos has an ESG Relevance Score of '4' for
Governance Structure due to resulting from its nature as a majority
government-owned entity and the inherent governance risk that
arises with a 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 Recovery Prior
----------- ------ -------- -----
Petroleos Mexicanos
(PEMEX) LT IDR B+ Affirmed B+
LC LT IDR B+ Affirmed B+
senior unsecured LT B+ Affirmed RR4 B+
=====================
P U E R T O R I C O
=====================
ALUMAX INC: Seeks Bankruptcy Protection in Puerto Rico
------------------------------------------------------
On December 6, 2024, Alumax Inc. filed Chapter 11 protection in the
District of Puerto Rico. According to court filings, the Debtor
reports $2,954,034 in debt owed to 1 and 49 creditors. The petition
states funds will not be available to unsecured creditors.
A meeting of creditors under Sec. 341(a) to be held on January 10,
2025 at 9:00 AM via Telephonic Conference Information for
AUST/Trial Attys.
About Alumax Inc.
Alumax Inc. manufactures aluminum doors and windows with its
manufacturing infrastructure located in San Sebastian, Anasco,
Ponce and San Domingo.
Alumax Inc. sought relief under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. D. P.R. Case No. 24-05312) on December 6, 2024. In
the petition filed by Frank J. Jimenez, Cruz as president, the
Debtor reports total assets of $416,851 and total liabilities of
$2,954,034.
The Debtor is represented by:
Javier Vilarino, Esq.
VILARINO AND ASSOCIATES, LLC
PO Box 9022515
San Juan, PR 00902
Tel: (787) 565-9894
Email: jvilarino@vilarinolaw.com
LUCENA DAIRY: Court Extends Use of Cash Collateral to Jan. 8
------------------------------------------------------------
Lucena Dairy, Inc. and Luna Dairy, Inc. obtained interim order from
the U.S. Bankruptcy Court for the District of Puerto Rico,
extending the use of cash collateral until Jan. 8 next year.
The extension allows the companies to continue operating during
their Chapter 11 bankruptcy process.
In consideration of such extension, the companies agree to make an
additional payment to Condado in the amount of $20,000 by Dec. 27.
The hearing to consider permanent use of cash collateral has been
rescheduled to Jan. 8.
About Lucena Dairy Inc.
Lucena Dairy Inc. is engaged in the production of cows' milk and
other dairy products and in raising dairy heifer replacements.
The Debtor sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. D. P.R. Case No. 23-02835) on September 8,
2023. In the petition signed by Jorge Lucena Betancourt, president,
the Debtor disclosed $1,905,560 in assets and $11,464,130 in
liabilities.
Judge Edward A. Godoy oversees the case.
Carmen D. Conde Torres, Esq., at C. Conde & Associates, represents
the Debtor as legal 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.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000.
.
* * * End of Transmission * * *