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250923.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, September 23, 2025, Vol. 26, No. 190 Headlines A R G E N T I N A ARGENTINA: Central Bank Steps Up Defense of Peso as Assets Slide B A H A M A S FTX GROUP: Trust Says Bankruptcy Laws Apply to Binance Founder B R A Z I L AMBIPAR PARTICIPACOES: S&P Puts 'BB-' ICR on Watch Negative BRASKEM SA: S&P Lowers ICR to 'B+', Outlook Negative BRAZIL: Tourism Surge is Real, but Scale Still Trails Rivals WALKER EDISON: U.S. Trustee Appoints Creditors' Committee J A M A I C A JAMAICA: BOJ Pumps Another US$30MM into Forex Market JAMAICA: BOJ to Offer $44BB Fixed-Rate Cert of Deposit M E X I C O MOLIMENTALES DEL NOROESTE: Goldgroup Acquires 52.7% Creditor Stake P U E R T O R I C O SERVICE PROPERTIES: Moody's Cuts CFR to 'Caa1', Outlook Stable - - - - - ================= A R G E N T I N A ================= ARGENTINA: Central Bank Steps Up Defense of Peso as Assets Slide ---------------------------------------------------------------- Ignacio Olivera Doll & Nicolle Yapur at Bloomberg News report that Argentina's Central Bank stepped up its defence of the peso as the country's assets posted some of the worst losses in the world, adding to the growing pressure on President Javier Milei's government. The nation's Central Bank was forced to intervene in the foreign exchange market for a second day, selling a significantly higher amount of dollars to keep the peso within the limit of the trading band agreed with the International Monetary Fund, according to people familiar with the matter, according to Bloomberg News. The intervention is estimated by traders to be close US$350 million, the people said, compared to US$53 million sold the day before, the report notes. Investors had hoped midterm elections next month would boost Milei's support in Congress enough to push his economic reform agenda forward, Bloomberg News relays. But with his disapproval ratings on the rise, the economy contracting and a string of political setbacks — from corruption scandals to pushback from lawmakers — traders began ditching the country's assets, Bloomberg News discloses. As estimates spread through the market, dollar bonds extended an earlier slump, leading losses in emerging markets, Bloomberg News says. Notes maturing in 2035 were down by 4.5 cents on the dollar to trade below 48 cents, their lowest in almost a year, according to indicative pricing data compiled by Bloomberg. Argentina's S&P Merval stock index fell more than five percent, the worst among 92 global equity benchmarks. The sell-off is taking a toll on the currency too, forcing the central bank to step in to prop up the peso for the first time since currency bands were set in April, Bloomberg News relays. The official peso closed at 1,474.5 per dollar on the local market, just below the upper limit, Bloomberg News discloses. "The Central Bank will never have a problem responding when the upper limit of the band is reached," Milei's spokesman Manuel Adorni told journalists at a press conference, Bloomberg News notes. Bloomberg News discloses that trading bands set by Argentine officials in an agreement with the International Monetary Fund in April gradually expand by one percent monthly in both directions, broken evenly into daily increments. The peso's upper limit is 1,474.83, but the nation's official trading system only allows bids in 50-cent increments, so for practical purposes the central bank rounds off the number, Bloomberg News relays. The "double whammy of FX pressure and legislative setback" adds to uncertainty surrounding the government and increases "the risks of a large leakage of reserves to keep the current FX framework or a premature and disorderly abandonment of it," Juan Sola, an analyst at Banctrust & Co, said in a report to investors, Bloomberg News says. Even before the intervention, Argentina had been using other instruments -- such as the Treasury selling dollars or FX futures contracts -- to stabilize the peso. The government also restricted dollar demand from brokers, with the securities regulator reinterpreting an existing rule that limits them from building up their dollar positions, Bloomberg News relays. But institutional bondholders might stick it out despite the situation growing more complicated in the past month, according to Alberto Bernal, chief strategist at XP Investments in Miami, Bloomberg News notes. "They are going to take a risk, hoping that in the national elections the government will achieve a vote higher than 35-37 percent," he added. For Guillermo Guerrero, head of research at EMFI Securities, valuations will be key after the dust settles, Bloomberg News discloses. "It's definitely been a pretty bad month for Milei, but investors should keep an eye on what the actual scenarios for the next two years are and on the administration's strong willingness to pay," 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 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) -- with an approved immediate disbursement of an equivalent of US$9.65 billion. Argentina's IMF-supported program sought to improve public finances and start to reduce persistent high inflation through a multi-pronged strategy. On April 11, 2025, the IMF further approved a 48-month Extended Fund Facility (EFF) arrangement for Argentina totaling US$20 billion (or 479 percent of quota), with an immediate disbursement of US$12 billion, and a first review planned for June 2025 with an associated disbursement of about US$2 billion. The program is expected to help catalyze additional official multilateral and bilateral support, and a timely re-access to international capital markets. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. The upgrade reflects the launch of a new IMF program, among other things. S&P Global Ratings, in February 2025 lowered its local currency sovereign credit ratings on Argentina to 'SD/SD' from 'CCC/C' and its national scale rating to 'SD' from 'raB+'. Moody's Ratings, in January 2025, raised Argentina's local currency ceiling to B3 from Caa1 and the foreign currency ceiling to Caa1 from Caa3. DBRS, Inc. upgraded Argentina's Long-Term Foreign and Local Currency Issuer Ratings to B (low) from CCC in November 2024. ============= B A H A M A S ============= FTX GROUP: Trust Says Bankruptcy Laws Apply to Binance Founder -------------------------------------------------------------- Vince Sullivan at law360.com reports that the recovery trust created by the Chapter 11 plan of cryptocurrency exchange FTX told a Delaware judge that the bankruptcy court has jurisdiction over Binance and its founder in a $1.76 billion clawback suit, and that bankruptcy laws apply to entities outside the United States. About FTX Group FTX is the world's second-largest cryptocurrency firm. FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products including industry-first derivatives, options, volatility products and leveraged tokens. Then CEO and co-founder Sam Bankman-Fried said Nov. 10, 2022, that FTX paused customer withdrawals after it was hit with roughly $5 billion worth of withdrawal requests. Faced with liquidity issues, FTX on Nov. 9, 2022, struck a deal to sell itself to its giant rival Binance, but Binance walked away from the deal amid reports on FTX regarding mishandled customer funds and alleged US agency investigations. SBF agreed to step aside, and restructuring vet John J. Ray III was quickly named new CEO. FTX Trading Ltd (d/b/a FTX.com), West Realm Shires Services Inc. (d/b/a FTX US), Alameda Research Ltd. and certain affiliated companies then commenced Chapter 11 proceedings (Bankr. D. Del. Lead Case No. 22-11068) on an emergency basis on Nov. 11, 2022. Additional entities sought Chapter 11 protection on Nov. 14, 2022. FTX Trading and its affiliates each listed $10 billion to $50 billion in assets and liabilities, making FTX the biggest bankruptcy filer in the US this year. According to Reuters, SBF shared a document with investors on Nov. 10, 2022, showing FTX had $13.86 billion in liabilities and $14.6 billion in assets. However, only $900 million of those assets were liquid, leading to the cash crunch that ended with the company filing for bankruptcy. The Hon. John T. Dorsey is the case judge. The Debtors tapped Sullivan & Cromwell, LLP as bankruptcy counsel; Landis Rath & Cobb, LLP as local counsel; and Alvarez & Marsal North America, LLC as financial advisor. Kroll is the claims agent, maintaining the page https://cases.ra.kroll.com/FTX/Home-Index The Official Committee of Unsecured Creditors tapped Paul Hastings as counsel, FTI Consulting, Inc., as financial advisor, and Jefferies LLC as the investment banker. Young Conaway Stargatt & Taylor LLP is the Committee's Delaware and conflicts counsel. Montgomery McCracken Walker & Rhoads LLP, led by partners Gregory T. Donilon, Edward L. Schnitzer, and David M. Banker, is representing Sam Bankman-Fried in the Chapter 11 cases. White-collar crime specialist Mark S. Cohen has reportedly been hired to represent SBF in litigation. Lawyers at Paul Weiss previously represented SBF but later renounced representing the entrepreneur due to a conflict of interest. =========== B R A Z I L =========== AMBIPAR PARTICIPACOES: S&P Puts 'BB-' ICR on Watch Negative ----------------------------------------------------------- S&P Global Ratings placed its 'BB-' issuer credit rating on Ambipar Participacoes e Empreendimentos S.A. (Ambipar) on CreditWatch with negative implications. At the same time, S&P placed the issue-level ratings on Ambipar Lux S.a.r.l.'s notes due in 2031 and 2033 on CreditWatch negative. The negative CreditWatch placement reflects the possibility of a downgrade in the next 90 days if further regulatory claims or continued management turnover materially erode Ambipar's financial flexibility. This could increase refinancing risks or compromise the predictability of the business profile, weakening the company's liquidity position. The CreditWatch placement with negative implications reflects heightened governance risks. The CreditWatch listing reflects the uncertainties and negative developments around recent investigations and the potential effects on Ambipar's capital structure and liquidity, reducing its financial flexibility. These include investigations by Brazil's security exchange commission (CVM) of Ambipar's purchase of its own shares within its share buyback program, potentially above the authorized limit of 10% of outstanding shares, and the potential need to carry out a public tender offer in the former investigation conducted by CVM of the controller's share increase. S&P said, "We also think there are risks regarding the near-term liquidity of the company's securities, given that a portion of its cash position is invested in instruments that lack immediate liquidity. These issues, along with management and board member turnover, potentially indicate a lack of oversight of the company's capital and governance practices. As a result, and considering the ongoing investigations, we revised our management and governance score to moderately negative from neutral." These negative developments might increase refinancing risks, weighing on Ambipar's creditworthiness, and increase execution risks for the company's growth strategy. If these weaknesses persist or intensify, Ambipar's ability to maintain credit metrics commensurate with the current rating will be compromised, in S&P's view. S&P doesn't see any immediate deterioration in operating cash flow or liquidity. The company has smooth debt maturities, with short-term debt of R$616 million representing only about 5% of its consolidated gross debt, coupled with a sizable cash position of R$4.7 billion. The company is focused on optimizing its capital structure, as evidenced by the recent lengthening of its debt maturity profile. For instance, with the issuance of the 10.875% US$493 million notes due February 2033, the company conducted a partial tender offer of US$200 million of its existing 9.875% seven-year US$750 million notes due February 2031, extending medium-term debt maturities. In addition, in the local market, the company amortized over R$2 billion in debentures since 2023. From an operational standpoint, Ambipar's core operations in environmental services and emergency response continue to show resilient demand and adequate cash generation. After a period of intense acquisitions until 2022, Ambipar has been focusing on its existing assets by enhancing its operating efficiency through the unification of service centers, revising existing contracts, reducing costs, optimizing tax payments, and streamlining its corporate structure. The CreditWatch negative placement reflects the possibility of a downgrade in the next 90 days if additional regulatory claims or ongoing management turnover significantly undermine Ambipar's financial flexibility. This could increase refinancing risks and compromise the predictability of its business profile, ultimately jeopardizing the company's liquidity position. In addition, S&P could also lower the rating if it envisions cash burn while refinancing pressures escalate. S&P could affirm the ratings with a stable outlook on clear evidence of strengthened governance standards, enhanced disclosure, and consistent adherence to practices that support predictable and transparent credit quality, while the company maintains its consistent operational performance and solid liquidity position. BRASKEM SA: S&P Lowers ICR to 'B+', Outlook Negative ---------------------------------------------------- S&P Global Ratings lowered its global scale issuer credit rating on Braskem S.A. to 'B+' from 'BB-'. S&P also lowered its issue-level ratings on the company's senior unsecured notes to 'B+' from 'BB-' and on its subordinated notes to 'CCC+' from 'B-'. S&P removed all these ratings from CreditWatch with negative implications, where it had placed them on Aug. 22, 2025. The outlook is negative, reflecting the chances of another downgrade in the coming months if the company doesn't substantially improve its operating and cash flow performance from the first half of the year. While Braskem continues working to improve profitability and preserve liquidity, S&P Global Ratings expects these may not be enough to revert the company's cash burn over the coming quarters. S&P expects very high leverage and reduced financial flexibility that are no longer commensurate with a 'BB-' rating, in its view. S&P said, "We continue to see risks that Braskem's measures to improve its profitability and liquidity won't be enough to mitigate its cash burn in the coming quarters. Braskem is actively pursuing various initiatives, including cost reductions, improvements in working capital efficiency, and potential asset sales. We also anticipate that it will benefit from recently imposed anti-dumping duties on polyethylene imports from the U.S. and Canada. Nonetheless, we expect Braskem's main credit metrics to remain aligned with a lower rating category for the next 12 months, with debt to EBITDA above 7.0x and funds from operations to debt below 7% for 2025 and 2026. "We also think performance could be weaker than we're forecasting in our base-case scenario. This concern stems from the challenging supply and demand dynamics within the petrochemical industry, leading to weak petrochemical spreads and weaker operating rates and margins. We expect persistently high leverage for Braskem in the current and subsequent years--coupled with a weaker liquidity position--which could raise the company's refinancing risk. However, this is not an immediate concern and is mitigated at the current rating level by the company's low short-term debt maturities." Braskem Idesa's engagement of restructuring advisors should not trigger any immediate impact to Braskem. Earlier this month, Braskem disclosed that its subsidiary Braskem Idesa S.A.P.I. (CCC/Watch Neg/--) had retained restructuring advisors, indicating the possibility of a distressed debt restructuring or a potential payment default in the short term. As a result, S&P lowered its ratings on Braskem Idesa. S&P said, "We maintain our view that the ratings on Braskem S.A. and Braskem Idesa are not linked, as we believe the joint venture structure limits the ability of the shareholders--Braskem and Idesa--to unduly influence the strategy and cash flow of Braskem Idesa. Also, all the debt of Braskem Idesa is structured on a nonrecourse basis; therefore, a potential default by Braskem Idesa would not trigger a cross-default on Braskem's existing debt but S&P believes that could reduce the company's financial flexibility in the future. We also don't expect Braskem to contribute any cash to its Mexican subsidiary." The negative outlook reflects chances of another downgrade in the next six months if the company doesn't substantially improve its operating and cash flow from the first half of the year, which would indicate a further deterioration of the company's liquidity and financial flexibility. S&P could lower the ratings in the next six months if: -- The company's financial flexibility and liquidity continue to deteriorate due to high cash burn and the company can't renew its revolving credit line until this December (one year before it matures), or -- S&P was to again revise down our forecasts for revenue and profitability. S&P could revise the outlook to stable if it was to expect material improvements in Braskem's profitability and credit metrics relative to its current base-case scenario. This could include leverage falling below 6x by 2026, potentially through increased tax relief from REIQ and PRESIQ being discussed in Congress (which would reduce the company's costs), and a greater-than-anticipated boost from the recently implemented anti-dumping duties. BRAZIL: Tourism Surge is Real, but Scale Still Trails Rivals ------------------------------------------------------------ Iolanda Fonseca at Rio Times Online reports that Brazil is on course for a new tourism record in 2025. From January through August, 6.52 million foreign visitors entered the country, a 46.6% jump from the same period last year and already close to 2024's full-year total, according to Rio Times Online. Argentines led arrivals with about 2.6 million visitors, followed by Chile (about 540,000) and the United States (just over 516,000), the report relays. Sao Paulo remained the main gateway, with more than 1.8 million foreign entries, the report discloses. Spending is rising in tandem. In 2024, inbound travel receipts reached the strongest level since 2009, the report recalls. By August 2025, foreign visitors had spent roughly 26.4 billion reais ($5 billion), already surpassing 2024's total of 23.7 billion reais—welcome cash flow for hotels, restaurants, guides, and local transport, the report notes. Prices helped. The real's sharp 2024 depreciation made Brazil cheaper in dollar terms, boosting demand from nearby markets and some long-haul travelers, the report relays. Industry executives also credit more aggressive overseas promotion and a rebuilding international flight network, the report adds. Perspective matters. Mexico received around 11 million international tourists by air in the first half of 2025 alone and typically tops 40 million annually across all modes, the report says. The Dominican Republic passed 8 million visitors by August, and Thailand welcomed more than 35 million in 2024 with strong momentum this year, the report notes. Brazil's rebound is genuine by its own history, but the overall scale still trails leading destinations, the report says. Policy and access could shape what happens next, the report relays. Since April 10, 2025, citizens of the United States, Canada, and Australia again need an electronic visa to enter Brazil—an added step for three key long-haul markets, the report discloses. Connectivity is improving but not seamless; several secondary long-haul routes and cross-border regional links remain thin, and travel between Brazilian cities can still be time-consuming, the report notes. Why this matters: Brazil is winning more visitors and more spending, especially from South America, and that is lifting jobs and local businesses, the report says. To compete head-to-head with the world's biggest tourism hubs, Brazil must keep travel costs competitive and expand direct international links, the report relays. It must also simplify entry where feasible and improve on-the-ground logistics so visitors can move easily beyond the classic Rio–Sao Paulo–Iguaçu circuit, 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. WALKER EDISON: U.S. Trustee Appoints Creditors' Committee --------------------------------------------------------- The U.S. Trustee for Region 3 appointed an official committee to represent unsecured creditors in the Chapter 11 cases of Walker Edison Holdco, LLC and its affiliates. The committee members are: 1. Truong Vinh Company Ltd. Attn: Chung Dieu Kiet National Road 1, Hamlet 1, Xuan Hung Commune Xuan Loc District, Dong Nai Province Vietnam Phone: +84-025-1375 6425 Email: kiettroungvinh@gmail.com 2. Hsien Yang Industries (Vietnam) Co., Ltd Attn: Jerry Lin Lot 1, Tam Phuoc Industries Park Bien Hoa City, Dong Nai 76000 Vietnam Phone: 1-801-518-0048 Email: jerry.lin@hsienyangvn.com 3. Artemobili Moveis Ltda. Attn: Robson Stella and Luciana Cherubini Avenida Imperatriz Leopoldina 727 Distrito Industrial, Nova Prata RS 95320-000 Brazil Phone: +55-54-3242 1890 Email: robson.stella@artemobili.com.br luciana.cherubini@artemobili.com.br. 4. Scan Global Logistics (Shanghai) Co., Ltd. Attn: Bryan Wang Unit 2101-2102, 21/F Shenzhen Kerry Centre 2008 Renminnan Road, Luohu District, 518001 Shenzhen, China Phone: +86-136-3662-5911 Email: brwan@scangl.com 5. Moveis Serraltense LTDA. c/o Lutz Comercial Exportadora-LTDA Attn: Daniel Lutz and Udo Guilherme Lutz 438 Centro Cx. Postal 64 Sao Bento do Sul, SC 89280-484 Brazil Phone: +55-47-3634-1320 Email: daniel@serraltense.com.br udo.lutz@rossonicassi.com.br Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Walker Edison Holdco Walker Edison, a Delaware corporation headquartered in West Jordan, Utah, designs and distributes affordable, ready-to-assemble home furnishings, operating primarily through e-commerce channels rather than traditional retail stores. Its business is managed by Walker Edison Intermediate, LLC and Walker Edison Holdco, LLC, and it owns EW Furniture, LLC, a Utah-based subsidiary. The company sources most products from suppliers in Asia and Brazil, distributing them through its Ohio and California centers or directly via major e-commerce platforms including Wayfair, Amazon, Walmart, Target, and Home Depot, with gross sales of roughly $124.6 million in 2024. Walker Edison Holdco, LLC and three affiliates filed Chapter 11 petitions (Bankr. D. Del. Lead Case No. 25-11602) on August 28, 2025. At the time of the filing, Walker Edison Holdco listed up to $50,000 in assets and between $100 million and $500 million in liabilities. Judge Thomas M. Horan oversees the cases. The Debtors tapped Morris, Nichols, Arsht & Tunnell, LLP as legal counsel; Lincoln International, LLC as investment banker; MACCO Restructuring Group, LLC as transformation advisor. Epiq Corporate Restructuring, LLC is the Debtors' notice, claims and administrative agent. ============= J A M A I C A ============= JAMAICA: BOJ Pumps Another US$30MM into Forex Market ---------------------------------------------------- RJR News reports that the Bank of Jamaica (BOJ) has again intervened in the foreign exchange market. It pumped another US$30 million into the system - the 19th intervention this year - bringing the total to US$530 million so far, according to RJR News. The National Commercial Bank purchased $6 million; JMMB Securities took $5.6 million; Grace Kennedy Trading Services, $3.7 million; JMMB Bank and First Global $3.4 million each; JN Bank, $2.2 million; and Alliance Financial, $2 million, the report notes. 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. JAMAICA: BOJ to Offer $44BB Fixed-Rate Cert of Deposit ------------------------------------------------------ RJR News reports that the Bank of Jamaica (BOJ) moves to mop up excess liquidity as it will seek to take US$44 billion out of circulation with a new 6% fixed rate certificate of deposit. The offer was set to begin on Sept. 17. Private sector investors will compete for just under US$42 billion, while US$2.2 billion is being set aside for public sector agencies including the Jamaica Mortgage Bank, National Insurance Fund and the Urban Development Corporation, according to RJR News. The minimum purchase is $100,000, with the instrument maturing on October 17, the report notes. Interest will be taxed at 25%, 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. =========== M E X I C O =========== MOLIMENTALES DEL NOROESTE: Goldgroup Acquires 52.7% Creditor Stake ------------------------------------------------------------------ Goldgroup Mining Inc. is pleased to announce that it has acquired approximately 52.7% of the creditors' rights in Molimentales del Noroeste, S.A. de C.V. Concurso Mercantil (restructuring proceeding equivalent to Chapter 11 in the United States). Molimentales' primary asset is the San Francisco Mine concessions, located in Sonora, Mexico. Goldgroup paid approximately US$3.74 million for this acquisition, which includes payments made directly to creditors as well as expenses related to the transaction. The Company anticipates incurring additional costs as it continues acquiring further creditors' rights and works with Molimentales' court appointed liquidator to complete the restructuring under the Concurso Mercantil. By securing majority control of Molimentales' creditors' rights, Goldgroup is now positioned to file a Plan of Arrangement seeking approval of Molimentales' remaining creditors and the Liquidator under the Concurso Mercantil process. The Plan of Arrangement, if successful, together with the settlement of outstanding liabilities owed to the Mexican Government in order to maintain the San Francisco Mine in good standing, will allow Goldgroup to obtain ownership of the San Francisco Mine and its associated assets-including mining concessions, processing plants, and all related infrastructure-free of liens and liabilities. "This acquisition represents Goldgroup's first steps towards acquiring the San Francisco Mine and its associated assets," said Ralph Shearing CEO of Goldgroup Mining. "With majority creditor rights, we now have the legal foundation to move forward and submit a Plan of Arrangement, pursuant to which registered creditors of Molimentales will be offered settlement terms to extinguish the amounts owed to them, and subject to approval of the Liquidator and the Mexican Court having jurisdiction over the Concurso Mercantil, Goldgroup hopes to acquire Molimentales." The San Francisco Mine, historically one of the significant gold producers in Sonora, has substantial existing infrastructure and potential for future exploration, development, expansion and production. Securing control of this asset is aligned with Goldgroup's vision of becoming a leading Mexican-focused mining company with operational expertise and a strong commitment to responsible mining practices. Cautionary Statement: While the acquisition of the 52.7% of the creditors rights represents an important milestone toward resolving long-standing conflicts and advancing the recovery of the San Francisco Mine, there is no assurance that Goldgroup will obtain the necessary approvals required under the Concurso Mercantil process (including Liquidator and Mexican Court approvals and satisfactory settlement of outstanding concession fees, taxes and labour related expenses) to vest Molimentales in Goldgroup's control. Further, there remain inherent risks and uncertainties associated with taking full control of the project. These include, but are not limited to, the approval of the proposed Plan of Arrangement, potential challenges within the Concurso Mercantil process, regulatory approvals, and the operational and financial requirements needed to successfully restart and operate the mine. The completion of the Plan of Arrangement and proposed acquisition of Molimentales is subject to the prior approval of the TSX Venture Exchange. The Company will provide further updates as the Concurso Mercantil process unfolds. About Goldgroup Goldgroup is a Canadian-based mining Company with two high-growth gold assets in Mexico. The Company has a 100% interest in the producing Cerro Prieto heap-leach gold mine located in the State of Sonora. An optimization and exploration program is underway at Cierro Prieto to significantly increase existing production and resources. In addition, the Company holds a 100% interest in the Pinos underground gold development project in Zacatecas State. Pinos is an advanced PEA level development project. Formerly a producing mine, the Company is commissioning an updated PEA with a view to re-starting mining operations. Goldgroup is led by a team of highly successful and seasoned individuals with extensive expertise in mine development, corporate finance, and exploration in Mexico. For further information on Goldgroup, please visit www.goldgroupmining.com ===================== P U E R T O R I C O ===================== SERVICE PROPERTIES: Moody's Cuts CFR to 'Caa1', Outlook Stable -------------------------------------------------------------- Moody's Ratings downgraded Service Properties Trust's ("SVC") corporate family rating to Caa1 from B3, and the guaranteed and non-guaranteed senior unsecured ratings to Caa1 and Caa2 from B3 and Caa1, respectively. In addition, Moody's downgraded the senior secured rating to Caa1 from B3. The speculative grade liquidity rating remains unchanged at SGL-4. The outlook was revised to stable from negative. The downgrade of SVC's ratings reflects the REIT's weak operating performance and deteriorating cash flow trends, which are impacting its key credit metrics. SVC's leverage is very high and Moody's views its capital structure as unsustainable, even considering the pro forma impact of $920 million of hotel asset sales under binding agreement. Additional credit concerns include the REIT's low interest coverage and large upcoming refinancing needs. The aforementioned asset sales proceeds will help SVC address its 2026 debt maturities, but it has limited financial flexibility as it seeks to refinance the $1 billion of debt that comes due in 2027. Moody's believes SVC faces high execution risk as it will be reliant on further asset sales and secured financing alternatives as it seeks to strengthen its financial profile. The stable outlook reflects Moody's expectations that SVC has sufficient liquidity to meet its 2026 debt obligations which provides some flexibility as it sees to reduce leverage. RATINGS RATIONALE SVC's Caa1 CFR reflects its weak operating performance, particularly within its hotel portfolio, which comprised about 35% of its EBITDA for the first half of 2025. The REIT's hotels posted modest revenue gains, as indicated by revenue per available room (RevPAR) improving 1.5% during 1H25 versus the prior year period. However, it still experienced a 15% decline in EBITDA during this period, driven by high labor and repair expenses, as well as disruptions associated with renovations. Pro forma for asset sales under agreement, the hotel portfolio still experienced a 13% EBITDA decline. Positively, SVC has invested substantial capital into many of these hotels over the past few years, however its ability to realize sustained cash flow improvements from these assets remains uncertain amidst a slowing macroeconomic environment. SVC's ratings also reflect its very high leverage, with net debt to EBITDA at 10.4x for last twelve months (LTM) 2Q25, up from 9.8x in the prior year period. Moody's expects leverage will decline to the mid-9x range following forthcoming asset sales, as the REIT has $920 million of hotel properties under binding sales agreements expected to close by year-end 2025. However, Moody's believes these leverage levels are unsustainable, particularly given the REIT's weak operating outlook and low weighted average debt maturity of 3.7 years. SVC's low interest coverage is an additional credit challenge, particularly as the REIT is not in compliance with the debt service coverage covenant on its bonds and therefore unable to incur additional debt. In July 2025, SVC drew remaining capacity on its $650 million secured revolver to preserve liquidity in anticipation of not meeting its covenant compliance test. SVC's ratings are supported by the company's meaningful scale and portfolio mix, including hotels and net lease service and necessity-based retail properties, which provide diversification to cash flows. In particular, the REIT's net lease investments with TravelCenters of America Inc. (29% of total investments, as of 2Q25) which have rent payments guaranteed by BP Corporation North America Inc. (A2 stable), are high quality and lend stability to cash flows. The ratings also reflect the REIT's still sizable unencumbered asset pool, which includes some high-quality assets that can be leveraged to manage future capital needs. SVC's SGL-4 rating reflects its weak liquidity profile given expected capital needs over the next 12-18 months. The REIT held approximately $670 million of cash as of August 06, 2025 following the full draw-down of its $650 million secured credit revolver that expires in June 2027 plus two six-month extension options. Moody's expects that SVC will use existing cash balances and proceeds from near-term asset sales to repay $800 million of maturities that come due in 2026. However, the REIT will still need to address $850 million of bonds the come due in 2027. Likely refinancing sources for these debt repayments include additional asset sales and secured financings, which could weaken the size and quality of its unencumbered asset pool. The SGL-4 also reflects the REIT's inability to comply with the debt service coverage covenant in its bonds. SVC is unable to incur additional debt as long as it is beneath this covenant's required minimum threshold. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS SVC's ratings could be downgraded should the REIT's liquidity weaken further or if it fails to address ongoing refinancing risks well in advance of maturities. Ratings could also be downgraded if the company pursues a transaction that Moody's considers to be a distressed exchange and hence a default under Moody's definitions. SVC's ratings could be upgraded if the REIT were to resume compliance and maintain cushion with all bank and bond covenants and address refinancing needs in a manner that lengthen its weighted average debt profile. Reducing leverage and sustained improvements in operating performance would also support a ratings upgrade. Service Properties Trust is a real estate investment trust (REIT) which owns a diverse portfolio of hotels and net lease service retail (businesses that sell non-physical goods and services) and necessity-based retail properties across the United States and in Puerto Rico and Canada. SVC is managed by the operating subsidiary of The RMR Group Inc., an alternative asset management company headquartered in Newton, MA. The principal methodology used in these ratings was REITs and Other Commercial Real Estate Firms published in May 2025. Service Properties Trust's Caa1 rating is two notches below the scorecard-indicated outcome of B2, reflecting high refinancing risk related to the REIT's short-dated debt profile. The difference is also explained by execution risk with respect to repositioning its hotel portfolio. ********* 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 2025. 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. 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