/raid1/www/Hosts/bankrupt/TCRLA_Public/250401.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
Tuesday, April 1, 2025, Vol. 26, No. 65
Headlines
A R G E N T I N A
ARGENTINA: Forges Friendship with France
ARGENTINA: New IMF Deal Includes US$20 Billion, Caputo Says
ARGENTINA: Traders bet on Weaker Peso as Milei's IMF Deal Looms
B R A Z I L
BAZIL: Lula Urges Mercosur-Japan Deal to Counter US Protectionism
GOL LINHAS: BRL5.1BB Loss Signals Tough Road Ahead for Airline
J A M A I C A
JAMAICA: Time for Economy to Focus on Growth
P U E R T O R I C O
SILVER AIRWAYS: Seeks to Hire Damian Valori Culmo as Local Counsel
SILVER AIRWAYS: Seeks to Hire Smith Gambrell & Russell as Attorney
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Forges Friendship with France
----------------------------------------
Buenos Aires Times reports that French President Emmanuel Macron
described Argentina as a "friend" with which France can "build the
economy of the future," after a telephone conversation with his
counterpart Javier Milei.
Macron and Milei "have exchanged views on the economic situation in
Argentina and the challenges to be faced. The Argentine people can
always count on France's support," said the French leader.
"Much more than an ally in key sectors, such as critical metals,
Argentina is a friend with whom we want to build the economy of the
future," said the centrist leader in a post on the X social
network, according to Buenos Aires Times.
Milei responded: "Thank you, President Emmanuel Macron. We deeply
value your support and France's commitment to the Argentine people.
We will continue to work together, as true friends, to face the
challenges and build shared opportunities in key sectors for the
future," the report notes.
The talks between the two G20 leaders comes as Argentina's looks to
build international support for a new financing agreement with the
International Monetary Fund, the report relays.
Congress granted approval for a Milei decree authorizing a new
program with the multilateral lender, which Buenos Aires wants to
include fresh financing, the report relays.
IMF officials will reportedly meet soon to discuss a new deal,
which would restructure payments due from Argentina's existing
US$44.5-billion program, the report discloses.
Macron visited Buenos Aires last year, his second visit to see
Milei, notes the report. The duo met at the Casa Rosada on November
17, 2023, for talks and shared a photograph together on the
presidential balcony overlooking the Plaza de Mayo, the report
adds.
About Argentina
Argentina is a country located mostly in the southern half of South
America. Its capital is Buenos Aires. Javier Milei is the current
president of Argentina after winning the November 19, 2023 general
election. He succeeded Alberto Angel Fernandez in the position.
Argentina has the third largest economy in Latin America. The
country's economy is an upper middle-income economy for fiscal year
2019, according to the World Bank. Historically, however, its
economic performance has been very uneven, with high economic
growth alternating with severe recessions, income maldistribution
and in the recent decades, increasing poverty.
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 Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings 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.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC on November 25, 2024.
The trend on all ratings is Stable.
ARGENTINA: New IMF Deal Includes US$20 Billion, Caputo Says
-----------------------------------------------------------
James Grainger at Buenos Aires Times reports that Economy Minister
Luis Caputo says Argentina will receive US$20 billion in fresh
funding from the International Monetary Fund (IMF) as part of a new
financing programme.
Caputo, speaking at an insurance industry event, also confirmed
that President Javier Milei's government is in talks with the World
Bank, the CAF Latin American development bank and the
Inter-American Development Bank (IDB/BID) over additional
financing, according to Buenos Aires Times.
The minister claimed that all the funds being sought would lift
Argentina's Central Bank gross reserves to US$50 billion, a level
not seen in decades, the report notes.
Caputo's remarks, delivered appropriately enough at the Buenos
Aires Stock Exchange, were an attempt to calm financial markets,
the report relays. A run on the peso drained reserves by more than
US$1.2 billion. In the last six months, the peso has fallen about
10 percent against the US dollar, the report notes.
Argentina's economy minister revealed that during a call with IMF
Managing Director Kristalina Georgieva, he asked her for permission
to disclose the amount of fresh funding under consideration, the
report discloses.
The decision, Caputo said, was made as a final agreement could
still take "several weeks" to be sealed, the report says.
The minister said the IMF loan would "not be used to finance
expenses" but used to recapitalise the Argentine Central Bank, the
report relays.
Argentina has been a serial defaulter in recent decades, leaving it
few options for borrowing cash on international markets, the report
notes.
"Combining the IDB, the World Bank and CAF, we'll have around US$50
billion in gross reserves" at the Central Bank, said Caputo, notes
the report. "The money supply is US$25 billion at the official
exchange rate and US$20 billion at the free exchange rate.
Therefore, we'll have more than double the reserves than the money
supply," he added.
He boasted that the level of reserves had "never been seen before,
not even during [the era of] convertibility [in the 1990s] and,
what's more, with a fiscal surplus," the report relays.
"Although I can't provide details about the rest of the agreement,
I thought it was important to say what amounts we're talking about
and what the new agreement implies," Caputo said, the report
discloses.
The minister specified that the purchase of short-term
non-transferable bonds which the Treasury will make from the
Central Bank with the money it will receive from the IMF will be
made "at market value," with which he calculated "that in the
margin there will be a fall in the gross debt," the report notes.
The new agreement should reduce Argentina's country risk rating,
tracked by JP Morgan, and allow the nation to "return to the
markets to refinance capital for upcoming maturities," the report
says.
Less than an hour after Caputo's remarks, at a press conference in
Washington DC, IMF Spokesperson Julie Kozack refused to confirm the
US$20-billion figure, limiting herself to a declaration that the
new programme would be "sizeablem," the report relays.
At a press conference, Kozack said "discussions on a new
Fund-supported programme are well advanced" and that its size "will
ultimately be determined by our executive board," the report
notes.
According to the IMF spokesperson, there is a shared recognition of
the need to continue to adopt a "consistent set of fiscal,
monetary, and exchange rate policies, while promoting
growth-enhancing reforms," the report relays.
Regarding the modality of disbursements, Kozack said that
"disbursements will be made in tranches over the life of the
programme. However, the exact timing and size of each disbursement
is part of ongoing discussions," the report discloses.
Praising the Milei administration, she stressed that "Argentina has
embarked on a truly impressive stabilisation programme and the
country has demonstrated its determination to put the economy on a
more sustainable path," the report notes.
Kozack remarked that "since the end of 2023 inflation in Argentina
has fallen thanks to a very large fiscal consolidation and measures
to clean up the Central Bank's balance sheet," the report relates.
She added that "economic activity is recovering strongly, real
wages are increasing and poverty is decreasing."
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 Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings 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.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC on November 25, 2024.
The trend on all ratings is Stable.
ARGENTINA: Traders bet on Weaker Peso as Milei's IMF Deal Looms
---------------------------------------------------------------
Ignacio Olivera Doll at Bloomberg News reports that investors see
Argentina's peso on the verge of devaluation again, with the
currency poised to change direction once more after going from one
of the worst in the world in 2023 to among the strongest performers
last year.
The peso took a sharp downward turn in futures markets after
Economy Minister Luis Caputo said he still didn't know the amount
of a new program with the International Monetary Fund, which
Bloomberg News reported could be about US$20 billion, according to
Bloomberg News. In a recent television interview, Caputo also
didn't commit to maintaining his currency policy, leaving the door
open for FX changes soon even as he insists there will be no peso
devaluation with the upcoming IMF deal, Bloomberg News notes.
President Javier Milei pledged in an address to Congress this month
that his administration will lift all currency and capital controls
by the end of this year, Bloomberg News relays. Caputo has echoed
the point, signaling they will be gradually eliminated once certain
conditions are met, such as rebuilding the Central Bank's foreign
reserves, Bloomberg News discloses.
Since March 13, expectations for the official exchange rate at the
end of April have worsened 2.3 percent to 1,132 pesos per dollar
from 1,106, Bloomberg News says. The effect in the parallel market
was worse, with the peso declining nearly five percent to 1,294 per
dollar, Bloomberg News relays.
Greater pressure on the exchange rate could hinder Milei's plans to
use the so-called "crawling peg" as an anchor that allowed him to
curb inflation in his first year in office, discloses the report.
His main challenge is to avoid a politically costly devaluation,
especially ahead of midterm elections in October, Bloomberg News
notes.
"The government has a problem: It can't say much about the deal
until it is announced," said Diego Chameides, chief economist at
Banco Galicia in Buenos Aires, referring to the looming IMF
agreement, Bloomberg News relays. "If uncertainty persists, and
futures rates remain higher than those of peso instruments, the
incentives to sell dollars and go to peso assets are lower and the
peso could remain under pressure."
Investors responded by shifting toward the dollar, the report says.
Peso assets, such as inflation-linked bonds, sold off, causing
local investors to take significant losses. Argentina's Central
Bank was forced to sell more than US$1 billion in foreign currency
reserves in just six days to support the peso, Bloomberg News
relays.
A debt auction, when the government is facing debt maturities in
pesos, could fuel further demand for dollars, notes the report. The
amount on the table, 9.2 trillion pesos (US$8.6 billion), is one of
the largest in the last two years, Bloomberg News notes. "The
government may have to issue short-term instruments and even
consider a partial roll-off of maturities," said Adrian Yarde
Buller, chief economist at local brokerage Facimex Valores,
Bloomberg News relays.
The implicit devaluation in peso futures is more than 60 percent
per year for the shortest contracts, Bloomberg News notes. That
represents a depreciation five times faster than the government's
current pace.
Investors are betting on a small one-time depreciation between
March and April, which would mark a break from the current
one-percent-per-month crawling peg, Bloomberg News says. That move
would be followed by a quicker rate of depreciation after the
October midterm vote, according to futures contracts data from the
Rofex market compiled by Bloomberg.
Traders expect the official exchange rate to decline from 1,070 to
1,132.5 pesos per dollar - or nearly six percent - before the end
of April, after which the depreciation rate should stabilise at two
percent monthly, Bloomberg News relays. After the midterms, the
market anticipates the pace to quicken to three percent per month.
Caputo also acknowledged that three key conditions for lifting the
country's currency controls have not yet been met, including having
a solid amount of foreign exchange reserves and that monthly
inflation (currently above two percent) goes at the same pace as
the one-percent crawling peg, Bloomberg News notes.
The peso turbulence eased somewhat when Congress approved a
government decree to move forward with the IMF agreement. Caputo
also denied on social media that the government had intervened in
the futures market to ease the pressure, Bloomberg News discloses.
Milei has used the crawling peg as an anchor against inflation
since the beginning of his administration in a country where
producers and consumers are accustomed to setting prices in dollar
terms, Bloomberg News relays. Devaluing the peso or letting it
float could jeopardise his efforts to tame inflation.
A full float would be extremely challenging, according to Ricardo
Arriazu, one of the strongest defenders of the government's current
policies among private-sector economists, Bloomberg News notes.
"When Argentina stops thinking in dollars, floating is possibly the
best system," Arriazu told a business audience this month, notes
the report. "But not for today's Argentina."
A devaluation like the one the market is currently expecting would
leave those betting on the dollar with returns twice as high as on
any asset denominated in pesos, Bloomberg News notes. Analysts see
this dynamic as dangerous because it would likely dissuade dollar
holders from investing in peso instruments.
The violent swings in the peso over the past week inflicted losses
on those who bought peso contracts at exchange rates weaker than
March 25's close, Bloomberg News relays. Those who bought the peso
contract expiring at the end of March, which accounts for a third
of the total market volume, lost a total of US$18 million,
according to data compiled by Bloomberg.
"Many CFOs paid dearly for these hedges," Mateo Reschini, senior
onshore portfolio strategist at Inviu, said in an interview, notes
Bloomberg News. "The next time they hear about devaluation, they're
going to think twice," he added.
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 Feb. 17, 2025, S&P Global Ratings lowered its local currency
sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and
its national scale rating to 'SD' from 'raB+'. At the same time,
S&P affirmed its 'CCC/C' foreign currency sovereign credit ratings
on Argentina. The outlook on the long-term foreign currency rating
remains stable.
On Jan. 8, 2025, Moody's Ratings raised Argentina's local currency
ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1
from Caa3. Moody's said the decision to raise the local and
foreign currency ceilings reflects the increased predictability and
the greater consistency in economic policy that has led to a rapid
reduction in monetary and fiscal imbalances that were stoking very
high inflation.
On Nov. 15, 2024, Fitch Ratings 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.
DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local
Currency Issuer Ratings to B (low) from CCC on November 25, 2024.
The trend on all ratings is Stable.
===========
B R A Z I L
===========
BAZIL: Lula Urges Mercosur-Japan Deal to Counter US Protectionism
-----------------------------------------------------------------
Buenos Aires Times reports that Brazil's President Luiz Inacio Lula
da Silva called for a trade deal between South America's Mercosur
bloc and Japan to counter growing US protectionism.
"I am certain that we need to move forward in signing an Economic
Partnership Agreement between Japan and Mercosur," Lula said during
a multi-day visit to Tokyo, according to Buenos Aires Times.
"Our countries have more to gain from integration than from
protectionist practices," he said at an economic forum attended by
business and political figures from Brazil and Japan, the report
notes.
Mercosur's four members -- Argentina, Brazil, Paraguay and Uruguay
-- in December struck a free-trade deal with the European Union
although it still faces hurdles before final approval, the report
relays.
Business groups in Japan, the world's fourth-largest economy, have
been pressing the government to also strike an agreement with the
bloc, the report discloses.
The Keidanren business federation "urgently" called in November for
"expedited efforts" towards a Japan-Mercosur Economic Partnership
Agreement (EPA), an accord similar to a free trade deal, the report
says.
"The benefits that a Japan-Mercosur EPA would bring to both parties
are immense," the group said, noting the South American bloc's
population of 300 million people and economic output approaching
US$3 trillion, the report relays.
But an agreement may be politically hard because of fears about the
impact on Japanese farmers of large-scale agricultural imports,
particularly from Brazil and Argentina, the report relays.
Japanese Prime Minister Shigeru Ishiba said that he and Lula will
"strongly push towards more smooth bilateral trade and investment,"
the report notes. "Business circles of both countries have pushed
for early agreement on a Japan-Mercosur EPA. While listening to
these voices, we will continue talks towards strengthening
bilateral and economic ties," he added.
Lula, 79, arrived in Japan accompanied by a 100-strong business
delegation, according to the report.
He and Ishiba were expected to restate their commitment to free
trade -- in light of US President Donald Trump's levies on steel
and other imports -- in a joint statement expected later, the
report relays.
"We cannot go back to relying on protectionism. We do not want a
second Cold War," Lula said, the report relates. "We want free
trade so that we can ensure that democracy, economic growth and
wealth distribution become established in our countries.".
Lula and Ishiba, 68, were also expected to discuss the joint
development of biofuels ahead of November's COP30 UN climate summit
in the Brazilian Amazon, the report adds.
About Brazil
Brazil is the fifth largest country in the world and third largest
in the Americas. Luiz Inacio Lula da Silva won the 2022 Brazilian
general election. He was sworn in on January 1, 2023, as the 39th
president of Brazil, succeeding Jair Bolsonaro.
In October 2024, Moody's Ratings upgraded the Government of
Brazil's long-term issuer and senior unsecured bond ratings to Ba1
from Ba2, the senior unsecured shelf rating to (P)Ba1 from (P)Ba2;
and maintained the positive outlook. S&P Global Ratings raised on
Dec. 19, 2023, its long-term global scale ratings on Brazil to
'BB' from 'BB-'. Fitch Ratings affirmed on Dec. 15, 2023, Brazil's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB' with
a Stable Outlook. DBRS' credit rating for Brazil was last reported
at BB with stable outlook at July 2023.
GOL LINHAS: BRL5.1BB Loss Signals Tough Road Ahead for Airline
--------------------------------------------------------------
Rio Times Online reports that Gol Linhas Aereas Inteligentes S.A.
(GOLL4) shocks investors with a BRL5.1 billion ($895 million) net
loss in Q4 2024, reports the company's latest earnings.
This figure multiplies the BRL1.098 billion ($193 million) loss
from Q4 2023 by 4.7 times, notes the report. Rising financial
expenses and operational costs drive this plunge, exposing the
airline's struggle amid Brazil's economic turbulence.
The carrier faces a brutal reality after filing for Chapter 11
bankruptcy in the U.S. in January 2024, according to Rio Times.
Currency depreciation hammers Gol, with the Brazilian real
averaging BRL5.80–6.00 against the dollar, the report discloses.
This inflates its BRL34.7 billion ($6.09 billion) gross debt, up
73% from last year, fueled by a BRL5.5 billion ($965 million) DIP
Loan, the report relays. Yet, Gol grows its revenue by 9.5%,
hitting BRL5.519 billion ($968 million) in Q4 2024.
Recurrent EBITDA rises 17.2% to BRL1.89 billion ($332 million),
showing operational strength, the report notes. The company boosts
capacity by 6.8%, reaching BRL11.5 billion ($2.02 billion) in
available seat kilometers, reflecting steady demand.
Gol's Financial Strain
Rio Times Online relates that financial strain overshadows these
gains, as Gol's debt-to-EBITDA ratio climbs to 6.1 times. Cash
reserves stand at BRL2.5 billion ($439 million), while total
liquidity, including receivables, reaches BRL5.6 billion ($982
million), the report relays.
Still, the BRL22.6 billion ($3.96 billion) in loans and BRL12.1
billion ($2.12 billion) in lease liabilities loom large, the report
discloses. Brazil's aviation market tests Gol's resilience, with
rivals like Azul and LATAM vying for dominance, the report notes.
Inflation nears 5%, and interest rates hover at 10.5%, squeezing
margins, says the report. Fuel costs, consuming 35–40% of
expenses, rise alongside global oil prices, adding pressure to the
airline's recovery, the report relays.
Gol eyes a turnaround, projecting BRL22.1–22.7 billion
($3.88–3.98 billion) in 2025 revenue. It forecasts EBITDA between
BRL5.7–5.9 billion ($1–1.04 billion), assuming a BRL6.04 dollar
rate, the report says.
The airline pushes fleet optimization with 141 Boeing 737s and
leans on its Smiles loyalty program for extra income, the report
discloses. The Chapter 11 process remains critical, aiming to
slash BRL20 billion ($3.51 billion) in debt, the report relays.
A $1.5 billion capital injection and $2 billion debt refinancing
plan emerge as lifelines, the report notes. However, success
hinges on stabilizing costs and sustaining passenger growth in a
volatile market, Rio Times says.
Gol's story unfolds as a high-stakes gamble for survival and
relevance, the report relays. Investors watch closely as the
airline balances operational wins against a crushing debt load.
The coming months will reveal if Gol can soar again or remain
grounded by its financial burdens, the report discloses.
About GOL Linhas
GOL Linhas Aereas Inteligentes S.A. provides scheduled and
non-scheduled air transportation services for passengers and cargo;
and maintenance services for aircraft and components in Brazil and
internationally. The company offers Smiles, a frequent-flyer
program to approximately 20.5 million members, allowing clients to
accumulate and redeem miles. It operates a fleet of 146 Boeing 737
aircraft with 674 daily flights. The company was founded in 2000
and is headquartered in Sao Paulo, Brazil.
GOL Linhas Aereas Inteligentes S.A. and its affiliates and its
subsidiaries voluntarily filed for Chapter 11 protection (Bankr.
S.D.N.Y. Lead Case No. 24-10118) on Jan. 25, 2024.
GOL Linhas estimated $1 billion to $10 billion in assets as of the
bankruptcy filing.
The Debtors tapped Milbank LLP as counsel, Seabury Securities LLC
as restructuring advisor, financial advisor and investment banker,
Alixpartners, LLP, as financial advisor, and HUGHES Hubbard & Reed
LLP as aviation related counsel. Kroll Restructuring Administration
LLC is the claims agent.
=============
J A M A I C A
=============
JAMAICA: Time for Economy to Focus on Growth
--------------------------------------------
RJR News reports that Bank of Jamaica Governor Richard Byles has
observed that the challenge for the Jamaican economy now is to move
from stability to growth.
Mr Byles, speaking at the recent Caribbean macro-economic
conference, said the country weathered the shocks of the Covid-19
pandemic and Russia/Ukraine war quite well but it is now time to
transition to growth, according to RJR News.
The current projection is for annual average rates of real GDP
growth of one per cent per annum during the four-year period
2025/2026 to 2028/2029, after the economy declined during the third
and fourth quarters of the last calendar 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.
On Feb. 21, 2025, Fitch Ratings affirmed Jamaica's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB-', with a
positive rating outlook. 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 2024, S&P affirmed 'BB-/B' longterm foreign and local
currency sovereign credit ratings on Jamaica and revised outlook to
positive.
=====================
P U E R T O R I C O
=====================
SILVER AIRWAYS: Seeks to Hire Damian Valori Culmo as Local Counsel
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Silver Airways, LLC and Seaborne Virgin Islands, Inc. seeks
approval from the U.S. Bankruptcy Court for the Southern District
of Florida to hire Damian Valori Culmo as local counsel.
The firm will render these services:
(a) give advice to the Debtors with respect to their powers
and duties as debtors in possession and the continued management of
their business operations;
(b) advise the Debtors with respect to their responsibilities
in complying with the U.S. Trustee’s Operating Guidelines
and
Reporting Requirements and with the rules of the Court;
(c) prepare motions, pleadings orders, applications and
adversary proceedings, and other legal documents necessary in the
administration of these jointly administered cases;
(d) protect the interest of the Debtors in matters pending
before the Court; and
(e) represent the Debtors in negotiation with their creditors
in the preparation of a plan.
The firm will charge $625 per hour for its services.
Damian received a $25,000 retainer.
Kristopher E. Pearson, Esq.
DAMIAN | VALORI | CULMO
1010 Brickel Avenue, Suite 1020
Miami, FL 33131
Telephone: (305) 371-3960
Email: kpearson@dvcattorneys.com
About Silver Airways
Silver Airways, LLC is a regional U.S. airline operating flights
between gateways in Florida, the Southeast and The Bahamas. The
Silver Airways fleet is comprised of modern, state of the art
aircraft with reliable, fuel-efficient turbo-prop engines.
In the summer of 2018, Silver completed the acquisition of Seaborne
Airlines, a San Juan, Puerto Rico-based air carrier serving
destinations throughout Puerto Rico, the U.S. Virgin Islands, and
other countries in the Caribbean. Seaborne provides connections
throughout the Caribbean via the carrier's hub in San Juan, while
also serving as the most critical link between St. Croix and St.
Thomas with the carrier's seaplane operation.
Silver Airways and Seaborne Virgin Islands, Inc. filed Chapter 11
petitions (Bankr. S.D. Fla. Lead Case No. 24-23623) on December 30,
2024. At the time of the filing, Silver Airways reported $100
million to $500 million in assets and liabilities while Seaborne
reported $1 million to $10 million in assets and liabilities.
Judge Peter D. Russin oversees the cases.
Brian P. Hall, Esq., at Smith, Gambrell & Russell, LLP is the
Debtors' legal counsel.
SILVER AIRWAYS: Seeks to Hire Smith Gambrell & Russell as Attorney
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Silver Airways, LLC and Seaborne Virgin Islands, Inc. seeks
approval from the U.S. Bankruptcy Court for the Southern District
of Florida to hire Smith Gambrell & Russell LLP as attorneys.
The firm will render these services:
(a) give advice to the Debtors with respect to the Debtors'
powers and duties as a debtors-in-possession and the continued
management of the Debtors' business operations;
(b) advise the Debtors with respect to the Debtors'
responsibilities in complying with the U.S. Trustee's Operating
Guidelines and Reporting Requirements and with the rules of the
Court;
(c) prepare motions, pleadings, orders, applications,
adversary proceedings, and other legal documents necessary in the
administration of the Debtors' cases;
(d) protect the interests of the Debtors in all matters
pending before the Court; and
(e) represent the Debtors in negotiation with their creditors
in the preparation of a plan.
The firm will be paid at these rates:
Brian P. Hall $725 per hour
Michael F. Holbein $650 per hour
Maureen McAneny $350 per hour
Smith Gambrell received a $150,000 retainer from the Debtors.
As disclosed in court filings, Smith Gambrell & Russell is a
"disinterested person" pursuant to Section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Brian P. Hall, Esq.
Michael F. Holbein, Esq.
SMITH, GAMBRELL & RUSSELL, LLP
1105 W. Peachtree Street NE, Suite 1000
Atlanta, GA 30309
Telephone: (404) 815-3537
Facsimile: (404) 685-6837
Email: bhall@sgrlaw.com
Email: mholbein@sgrlaw.com
About Silver Airways
Silver Airways, LLC is a regional U.S. airline operating flights
between gateways in Florida, the Southeast and The Bahamas. The
Silver Airways fleet is comprised of modern, state of the art
aircraft with reliable, fuel-efficient turbo-prop engines.
In the summer of 2018, Silver completed the acquisition of Seaborne
Airlines, a San Juan, Puerto Rico-based air carrier serving
destinations throughout Puerto Rico, the U.S. Virgin Islands, and
other countries in the Caribbean. Seaborne provides connections
throughout the Caribbean via the carrier's hub in San Juan, while
also serving as the most critical link between St. Croix and St.
Thomas with the carrier's seaplane operation.
Silver Airways and Seaborne Virgin Islands, Inc. filed Chapter 11
petitions (Bankr. S.D. Fla. Lead Case No. 24-23623) on December 30,
2024. At the time of the filing, Silver Airways reported $100
million to $500 million in assets and liabilities while Seaborne
reported $1 million to $10 million in assets and liabilities.
Judge Peter D. Russin oversees the cases.
Brian P. Hall, Esq., at Smith, Gambrell & Russell, LLP is the
Debtors' legal counsel.
*********
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