250926.mbx

250926.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, September 26, 2025, Vol. 26, No. 193 Headlines A R G E N T I N A ARGENTINA: Milei Says Negotiations Advanced for US Treasury Talks B R A Z I L TK HOLDINGS: Court Tosses Claimant's Appeal on Expungement Order D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Senate Raises Public Debt Limit J A M A I C A FIRST ROCK: Hambani Estate Gets Lifeline From Mayberry JAMAICA: FTC Introduces Guidelines to Ensure Fair Business Panels M E X I C O DEL MONTE: Weighs Potential $800MM Equity Offering P E R U PERU: IDB Approves $177 Million Loan to Strengthen Prison System - - - - - ================= A R G E N T I N A ================= ARGENTINA: Milei Says Negotiations Advanced for US Treasury Talks ----------------------------------------------------------------- Manuela Tobias at Bloomberg News reports that Argentina has been working on strategies to ensure it can meet about US$9.5 billion in debt payments due next year, President Javier Milei said when asked whether he expected the US Treasury to come to the rescue of the troubled South American economy. "Those negotiations take time and and we don't make announcements until it's confirmed," Milei said in an interview with a local TV channel without referencing the US Treasury, according to Bloomberg News. "But we are working very hard, we're very advanced, and it's a matter of time too," he added. Local media reported that his comments signalled advanced discussions with the US Treasury, which did not respond to a request for comment. Financial support from Washington would provide relief to policymakers who are trying to reassure investors that Milei can sustain his austerity push after October's midterm elections, Bloomberg News notes. Bloomberg News discloses that investor scepticism has added pressure on the peso. The Central Bank spent about US$1 billion of its reserves in just two days to prevent a devaluation. Milei's press office didn't elaborate on his remarks. The economy ministry declined to comment. Economy Minister Luis Caputo made similar remarks in a podcast, the report relays. "For the past two or three months, we've been working to guarantee the payment of bond maturities," Caputo said. "We haven't announced it because we are still working on it. We announce things once they are finalised," he added. Shortly after his visit to Argentina in April, Treasury Secretary Scott Bessent told a private gathering of investors that the US could consider tapping its Exchange Stabilisation Fund to support its South American ally, Bloomberg News relays. The Treasury hasn't publicly commented on the idea since. 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 R A Z I L =========== TK HOLDINGS: Court Tosses Claimant's Appeal on Expungement Order ---------------------------------------------------------------- In the appeal styled DINA GONZALES, Appellant v. ERIC D. GREEN, trustee of the PSAN PI/WD Trust doing business as Takata Airbag Tort Compensation Trust Fund, No. 24-1604 (3rd Cir.), Judges Stephanos Bibas, Arianna J. Freeman and Richard L. Nygaard of the United States Court of Appeals for the Third Circuit affirmed the judgment of the United States District Court for the District of Delaware that upheld the decision of the United States Bankruptcy Court of Delaware denying pro se litigant Dina Gonzales's motion to reconsider an expungement order in the bankruptcy case of TK Holdings Inc. This appeal stems from Chapter 11 bankruptcy proceedings initiated by TK Holdings Inc. and its affiliated debtors. Takata manufactured airbag inflators that "had the potential to rupture upon airbag deployment, causing death and serious injury to automobile occupants. Those inflators were eventually the subject of the largest product recall in U.S. history. After Takata filed for bankruptcy, Gonzales filed a proof of claim against Takata, alleging injuries stemming from a 2011 accident during which an airbag in her Honda Accord failed to deploy (as opposed to rupturing upon deployment). Her claim was one of many brought against Takata by individuals who alleged injuries based on an airbag's failure to deploy. The Trustee for the Takata Airbag Tort Compensation Trust Fund objected to that group of claims. In October 2020, the Bankruptcy Court disallowed and expunged that group of claims, concluding that the preponderance of the evidence demonstrated that Takata's airbag inflators played no role in airbags' failure to deploy. In March 2023, Gonzales moved the Bankruptcy Court to reconsider the expungement order. The Trustee opposed Gonzales's motion. In June 2023, the Bankruptcy Court denied Gonzales's motion, concluding that: (1) the motion was untimely to the extent that it sought relief under Federal Rule of Civil Procedure 60(b)(2), and (2) to the extent that the motion sought relief based on a showing of excusable neglect, see Fed. R. Civ. P. 60(b)(1), such relief was not warranted. Gonzales subsequently appealed to the District Court, challenging the Bankruptcy Court's June 2023 decision. In March 2024, the District Court affirmed that decision, concluding that the Bankruptcy Court had not abused its discretion in denying reconsideration. Gonzales then timely filed the present appeal, challenging the District Court's judgment. The Circuit Judges agree with the Bankruptcy Court and the District Court that Gonzales's motion for reconsideration was untimely to the extent that it sought relief under Rule 60(b)(2), as it was filed more than one year after the entry of the Bankruptcy Court's expungement order. In this case, the Bankruptcy Court identified the Pioneer factors, and it concluded that a balancing of these factors weighed against Gonzales. It concluded that the length of the delay (without any proffered reason or explanation) and the burden upon the Trust mandate denial of the Motion. The Bankruptcy Court further explained that the Trustee has credibly demonstrated that the Trust will suffer legal prejudice if the Motion for Reconsideration goes forward. It also notes that there is a real prospect of harm to the holders of allowed claims in this proceeding, as the Trustee represents that the administration of this case is nearing its conclusion and the cost and delay of continued legal proceedings places at risk their expected and approved distributions. The panel holds, "Having carefully reviewed the record and the parties' briefing, we cannot say that the Bankruptcy Court abused its discretion in concluding that a balancing of the Pioneer factors weighed in favor of denying Gonzales's motion for reconsideration. Accordingly, we will affirm the District Court's judgment upholding the Bankruptcy Court's denial of reconsideration." A copy of the Court's Opinion dated September 9, 2025, is available at https://urlcurt.com/u?l=kPlfVn About TK Holdings Japan-based Takata Corporation (TYO:7312) -- http://www.takata.com/en/-- develops, manufactures, and sells safety products for automobiles. The Company offers seatbelts, airbags, steering wheels, child seats, and trim parts. Headquartered in Tokyo, Japan, Takata operates 56 plants in 20 countries with approximately 46,000 global employees worldwide. The Company has subsidiaries located in Japan, the United States, Brazil, Germany, Thailand, Philippines, Romania, Singapore, Korea, China, and other countries. Takata Corp. filed for bankruptcy protection in Tokyo and the U.S., amid recall costs and lawsuits over its defective airbags. Takata and its Japanese subsidiaries commenced proceedings under the Civil Rehabilitation Act in Japan in the Tokyo District Court on June 25, 2017. Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S. and Mexican affiliates each filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 17-11375) on June 25, 2017. Together with the bankruptcy filings, Takata announced it has reached a deal to sell all its global assets and operations to Key Safety Systems (KSS) for US$1.588 billion. Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese proceedings. Weil, Gotshal & Manges LLP and Richards, Layton & Finger, P.A., are serving as counsel in the U.S. cases. PricewaterhouseCoopers is serving as financial advisor, and Lazard is serving as investment banker to Takata. Ernst & Young LLP is tax advisor. Prime Clerk is the claims and noticing agent. The Debtors Meunier Carlin & Curfman LLC, as special intellectual property counsel. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal counsel, KPMG is serving as financial advisor, Jefferies LLC is acting as lead financial advisor. UBS Investment Bank also provides financial advice to KSS. On June 28, 2017, TK Holdings, as the foreign representative of the Chapter 11 Debtors, obtained an order of the Ontario Superior Court of Justice (Commercial List) granting, among other things, a stay of proceedings against the Chapter 11 Debtors pursuant to Part IV of the Companies' Creditors Arrangement Act. The Canadian Court appointed FTI Consulting Canada Inc. as information officer. TK Holdings, as the foreign representative, is represented by McCarthy Tetrault LLP. The U.S. Trustee has appointed an Official Committee of Unsecured Trade Creditors and a separate Official Committee of Tort Claimants. The Official Committee of Unsecured Creditors has selected Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F. Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington, Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in Washington, D.C., as its bankruptcy counsel. The Committee has also tapped Chuo Sogo Law Office PC as Japan counsel. The Official Committee of Tort Claimants selected Pachulski Stang Ziehl & Jones LLP as counsel. Gilbert LLP will evaluate the insurance policies. Sakura Kyodo Law Offices is serving as special counsel. Roger Frankel, the legal representative for future personal injury claimants of TK Holdings Inc., et al., tapped Frankel Wyron LLP and Ashby & Geddes PA to serve as co-counsel. Takata Corporation ("TKJP") and affiliates Takata Kyushu Corporation and Takata Services Corporation commenced Chapter 15 cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9, 2017, to seek U.S. recognition of the civil rehabilitation proceedings in Japan. The Hon. Brendan Linehan Shannon oversees the Chapter 15 cases. Young, Conaway, Stargatt & Taylor, LLP, serves as Takata's counsel in the Chapter 15 cases. In February 2018, the U.S. Bankruptcy Court confirmed the Fifth Amended Chapter 11 Plan of Reorganization filed by TK Holdings, Inc. ("TKH"), Takata's main U.S. subsidiary, and certain of TKH's subsidiaries and affiliates. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Senate Raises Public Debt Limit --------------------------------------------------- Dominican Today reports that in an extraordinary session, the Senate urgently approved an amendment to Law 90-24, allowing the Executive Branch to issue and place public debt securities. The amendment raises the debt ceiling from RD$350 billion to RD$361.618 billion, adding over RD$10 billion to the previously authorized limit, according to Dominican Today. Despite intense debate and opposition from Senator Edward Espíritusanto, who criticized the measure as "financial improvisation" and a growing reliance on debt, the bill passed with a majority vote, the report notes. During the session, the Senate also approved other key initiatives. In first reading, a bill regulating the seizure of credits and personal property was passed, limiting each act to a maximum of ten credits, the report relays. The measure was presented by Senators Ricardo de los Santos, Cristóbal Venerado Castillo, and Antonio Taveras Guzmán, the report discloses. Additionally, the Senate approved in second reading a bill granting tax and tariff exemptions for cardiovascular, ophthalmologic, and endocrine medical supplies, promoted by Senator Ginnette Bournigal de Jiménez to improve access to essential health products, the report says. Another approved measure declared the El Seibo Bullfights as Intangible Cultural Heritage, proposed by Senator Santiago José Zorrilla, 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. ============= J A M A I C A ============= FIRST ROCK: Hambani Estate Gets Lifeline From Mayberry ------------------------------------------------------ RJR News reports that Chairman of First Rock Group Ryan Reid says it is looking forward to completing the luxury Hambani Estate, consisting of 12 four-bedroom and five-bedroom townhouses, in coming months. This, after its subsidiary First Rock Real Estate Investment and its subsidiary FCH Jamaica Developers Limmited got a bailout from the Mayberry Group, which agreed to repay the $10 million owed to Sagicor Bank, according to RJR News. Mr. Reid said First Rock continues to look forward to working closely with the Mayberry Group as it completes the project, the report notes. JAMAICA: FTC Introduces Guidelines to Ensure Fair Business Panels ----------------------------------------------------------------- RJR News reports that the Fair Trading Commission (FTC) has published draft guidelines to regulate business 'panels', its approved list of third-party providers, to ensure their activities do not stifle competition. Executive Director David Miller says the new rules require transparency in genuine consumer choice with at least three major providers on each panel, according to RJR News. The guidelines are also aimed at preventing duplication of professional functions and regulations while striking a balance between managing risks and keeping qualified providers in the market, 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. =========== M E X I C O =========== DEL MONTE: Weighs Potential $800MM Equity Offering -------------------------------------------------- Elffie Chew and Cliff Venzon of Bloomberg News report that Del Monte Group is exploring ways to raise up to $800 million in equity to pay down debt, people with knowledge of the discussions said. Working with a financial adviser, the company is considering a rights issue or placement among the potential approaches. The deliberations remain at an initial stage, and no final course of action has been determined, the report states. About Del Monte Foods Corporation II Inc. Del Monte Foods, Inc. produces, distributes, and markets branded plant-based packaged food products in the United States and Mexico. Del Monte Foods Corporation II Inc. and its affiliates filed their voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.N.J. Lead Case No. 25-16984) on July 1, 2025, listing $1,000,000,001 to $10 billion in both assets and liabilities. Judge Michael B Kaplan presides over the case. Michael D. Sirota, Esq. at Cole Schotz P.C. represents the Debtor as counsel. ======= P E R U ======= PERU: IDB Approves $177 Million Loan to Strengthen Prison System ---------------------------------------------------------------- The Inter-American Development Bank (IDB) has approved a loan of up to $177.3 million to help rehabilitate Peru's prison population by modernizing prison system management, professionalizing personnel, and expanding programs for rehabilitation, education, employment, and treatment. The project, Comprehensive Improvement of Social Reintegration Services in Peru, will be led by the Ministry of Justice and Human Rights. It aims to improve prisoners' reentry into society and reduce recidivism, thereby contributing to public security and collective well-being. The project will directly benefit the prison population by increasing individualized treatment programs for rehabilitation. It will also benefit the nearly 4,000 new agents and professionals in the prison system. In addition to positively impacting citizens, especially in Lima and Ancón, the project hopes to reduce the reincarceration rate from 24% to 21% by 2030. Through this loan, the IDB, in collaboration with the Peruvian government and international organizations, reaffirms its commitment to modernizing the state by bolstering institutional capacity and the rule of law, sustainability, and digital transformations. These objectives align with the IDB Group Country Strategy with Peru 2022–2026. Alliance for Security, Justice, and Development This project is part of the IDB's Alliance for Security, Justice, and Development. The Alliance promotes dialogue, cooperation, and collective action to strengthen institutions, protect vulnerable populations and communities, and curb the rapid expansion, growth, and influence of organized crime in Latin America and the Caribbean. The Peru project exemplifies how the Alliance can spur transformation in the prison sector by supporting effective social-rehabilitation models and modernizing justice systems. It is the second project under the Alliance, which was created a year ago, and is the first to emerge from exchanges among member countries and partners. ********* 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. 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 * * *