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251223.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, December 23, 2025, Vol. 26, No. 255 Headlines A R G E N T I N A ARGENTINA: Gives in to IMF Pressure; Opens Door to Inflation Risk B R A Z I L PETRO-VICTORY ENERGY: Issues 575,000 Bonus Warrants in Forbearance D O M I N I C A N R E P U B L I C DOMINICAN REP: Minister Defends Transparency in Tourism Funds Mgmt. DOMINICAN REP: RD$401.7BB Public Debt Issue for 2026 Budget Gets OK J A M A I C A JAMAICA: Inflation Surged in November, STATIN Says M E X I C O ASCEND PERFORMANCE: Plan Approval Paves Way for Year-End Exit X X X X X X X X AZUL SA: Opt-Out Releases in Chapter 11 Appropriate, Judge Finds - - - - - ================= A R G E N T I N A ================= ARGENTINA: Gives in to IMF Pressure; Opens Door to Inflation Risk ----------------------------------------------------------------- Eugenia Muzio at Buenos Aires Times reports that after two years of prioritizing "a cheap dollar" as an anchor to show falling inflation figures, President Javier Milei's government has yielded to pressure from Washington to strengthen Argentina's international reserves. The announcement of an update to the peso's exchange-rate trading bands, indexing them to inflation as from January, confirms a pragmatic shift: Milei's economic team is sacrificing the slowing of inflation in an attempt to improve Argentina's credit profile and push down a country risk premium that, even after testing the Bonar 2029 bond, has struggled to drop below the 600 basis-point threshold, according to Buenos Aires Times. The market's more nuanced reading is that the "remonetisation" scheme unveiled by the Central Bank (BCRA) is designed to give the monetary authority some breathing space to buy foreign currency, while allowing the exchange rate to rise without intervention, the report notes. The cost of that "flexibility," however, is a higher floor for prices, the report relays. One former head of the Central Bank, speaking off-the-record to Perfil, explained one of the biggest challenges posed by the new framework: "An acceleration in devaluation will set a floor for inflationary inertia unless the recession deepens," the report discloses. The logic is that by indexing the upper limit of the band to past CPI figures, expectations become self-reinforcing, the report says. To prevent the "remonetised" pesos from being turned into dollars, the source argued, "they need high interest rates in pesos, or on local dollar instruments, to prevent capital flight." At a press conference, BCRA Governor Santiago Bausili insisted that "the new exchange-rate regime is consistent with the downward path of inflation" and described the measure as "a contribution to reducing uncertainty," the report notes. Some market voices argue the opposite effect will occur. Just a month ago, Economy Minister Luis Caputo told the Fundacion FIEL that the bands were "well calibrated," defending the rigidity of the exchange-rate ceiling, the report relays. The report notes that when questioned by the press about the shift, Bausili maintained that even with changes, this remains "the best regime," and that inflation index-linking does not imply a "higher or lower" peso-dollar exchange rate, but rather "a greater degree of flexibility." In financial jargon, that flexibility is read as a correction forced by the scarcity of foreign currency, the report discloses. Beyond inflation, the biggest question concerns the financial viability of the Milei administration's reserve accumulation plan. Economist Pablo Moldovan quantified the challenge facing the government next year; according to his analysis, the BCRA is setting two conditions for buying reserves: an increase in demand for pesos and sufficient supply of dollars, the report says. "The first condition looks easier. If the economy grows, demand for pesos grows. The second condition looks much more difficult," Moldovan warned, the report relays. External sector figures for 2026 are stretched to the limit, the report discloses. To prevent public debt from absorbing the reserves the Central Bank promises to accumulate, Argentina's Treasury would need to refinance ("roll over") maturities worth around US$14 billion in the voluntary market. "A very ambitious target for the first year back on the markets," Moldovan concluded, the report relays. The private sector would also have to play its part, the report relays. To balance the foreign exchange market and cover a current account deficit, companies would need to increase their net external debt by another US$14 billion, the report notes. This would imply average monthly private capital inflows of US$1.7 billion -- a level that, according to historical data, has only been reached in six months over the past 23 years, the report says. The scheme presented by Bausili contains a paradox: if the economy rebounds and consumption rises, demand for imports -- and therefore for dollars -- will increase, putting pressure on the upper limit of the band. In addition, outbound tourism threatens to continue exerting pressure if the real exchange rate appreciates or is perceived as cheap, the report notes. The conclusion circulating on trading desks is that unless external financing appears in record volumes, the scheme only works with a recession that flattens import demand and consumption to avoid pressure on the dollar, the report relays. "They need to buy US$14 billion to meet Treasury maturities and US$10 billion to remonetise the economy. It's a lot," summarized the former Central Bank consulted by this outlet, 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 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. S&P Global Ratings on Dec. 17, 2025, raised its local currency sovereign credit ratings on Argentina to 'CCC+/C' from 'SD/SD'. S&P also raised its long-term foreign currency sovereign credit rating to 'CCC+' from 'CCC' and affirmed its 'C' short-term foreign currency rating. The outlook on the long-term ratings is stable. In addition, S&P raised its issue ratings on local currency bonds to 'CCC+' from 'CCC'. S&P's 'B-' transfer and convertibility assessment is unchanged. Moody's Ratings on July 17, 2025, upgraded Argentina's long-term foreign currency and local currency issuer ratings to Caa1 from Caa3 and changed the outlook to stable from positive. Fitch Ratings, on May 12, 2025, upgraded Argentina's Long-Term Foreign-Currency and Local-Currency Issuer Default Rating (IDR) to 'CCC+' from 'CCC'. 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 =========== PETRO-VICTORY ENERGY: Issues 575,000 Bonus Warrants in Forbearance ------------------------------------------------------------------ Petro-Victory Energy Corp. announced on Dec. 10, 2025, that the Company has issued 575,000 bonus warrants to PPF 13, LLC in consideration for the forbearance and extension of the principal payment on the previously announced loan from the Lender to the Company. The Bonus Warrants are exercisable at CAD$0.75 on or before August 25, 2026. The issuance of the Bonus Warrants remains subject to TSXV final acceptance. The Bonus Warrants replace the existing 475,000 bonus warrants that were previously issued to the Lender that were exercisable at CAD$2.03 on or before August 25, 2026. 375,000 of the Existing Warrants were issued in consideration for the Loan and the remaining 100,000 of the Existing Warrants were issued on August 23, 2024 in consideration for a previous forbearance and extension of Loan. About Petro-Victory Energy Corp. Petro-Victory Energy Corp. is an oil and gas company engaged in the acquisition, development, and production of crude oil and natural gas in Brazil. The total portfolio under management as of the date of this filing includes 49 concession contracts with 276,755 acres, net to Petro-Victory, plus an additional 6 concessions and 19,074 acres owned jointly with BlueOak in Capixaba Energia. Through disciplined investments in high-impact, low-risk assets, Petro-Victory is focused on delivering sustainable shareholder value. The Company's common shares trade on the TSX Venture Exchange under the ticker symbol VRY. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REP: Minister Defends Transparency in Tourism Funds Mgmt. ------------------------------------------------------------------- Dominican Today reports that Tourism Minister David Collado reaffirmed that public funds allocated to the tourism sector are managed with full integrity and transparency, underscoring the government's commitment to responsible administration. He emphasized that both the Ministry of Tourism (MITUR) and the Tourism Infrastructure Committee (CEIZTUR) operate under strict oversight, with transparency as a core principle of the current administration, according to Dominican Today. Collado stated that the government has taken a clear departure from past practices, placing accountability at the center of its tourism policy, the report relays. He also highlighted the recovery of abandoned tourism infrastructure as part of a broader strategy aimed not only at boosting visitor arrivals, but also at restoring dignity and economic opportunities in local communities, the report relays. The minister stressed that the post-pandemic recovery of tourism was the result of deliberate and timely government decisions, not chance, the report discloses. He recalled that the Dominican Republic opted to reopen its borders while other countries remained closed, simultaneously strengthening tourism infrastructure, a strategy that positioned the country as one of the leading tourism recovery success stories in the region, the report says. 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. DOMINICAN REP: RD$401.7BB Public Debt Issue for 2026 Budget Gets OK ------------------------------------------------------------------- Dominican Today reports that the Chamber of Deputies approved a bill authorizing the issuance of public debt securities of up to RD$401.7 billion, a request made by the Executive Branch to finance the General State Budget for 2026 and ensure the continuity of key public spending commitments. Lawmakers explained that the approved amount will help cover the projected fiscal deficit of 3.2% of Gross Domestic Product (GDP), supplement expected revenues, and guarantee funding for social programs, infrastructure projects, and essential public services outlined in the 2026 budget, according to Dominican Today. Government-aligned deputies emphasized that the bond issuance does not represent new or additional debt beyond what has already been approved, but rather the implementation of a financing strategy established under the budget law for the upcoming fiscal year, the report relays. They added that the measure provides a transparent and orderly legal framework for accessing financing without resorting to extraordinary fiscal measures, the report notes. The legislation authorizes the Ministry of Finance to issue bonds in Dominican pesos or foreign currency and place them in local or international markets under the most favorable financial conditions, the report says. It also allows debt management operations such as swaps, buybacks, and conversions to improve debt maturity profiles, reduce short-term payment pressures, and mitigate exchange rate risks, the report discloses. The bill will now be sent to the Senate for further consideration, 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 ============= JAMAICA: Inflation Surged in November, STATIN Says -------------------------------------------------- RJR News reports that inflation surged sharply in November, as the impact of Hurricane Melissa pushed consumer prices to their highest monthly increase in more than a decade. The Statistical Institute of Jamaica (STATIN) says the All-Jamaica Consumer Price Index rose by 2.4 per cent in November 2025, according to RJR News. The main driver of the increase was the price of food, the report relays. The 'Food and Non-Alcoholic Beverages' division jumped by six per cent, led by steep increases in produce, the report discloses. Prices for vegetables, tubers, plantains and pulses climbed by more than 19 per cent, with tomatoes, pumpkins, sweet peppers, hot peppers and cucumbers among the hardest hit, the report says. Fruit prices also rose sharply, with the 'Fruit and Nuts' category up 8.8 per cent, reflecting higher prices for papaya, watermelon and ackee, the report relays. Ready-made foods and other food products increased by 16.4 per cent, driven mainly by a rise in the price of escallion, the report notes. Meanwhile, housing-related costs provided some relief, the report discloses. The index for 'Housing, Water, Electricity, Gas and Other Fuels' fell by 1.3 per cent, largely due to lower electricity rates, the report says. Transport costs were unchanged for the month, 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 =========== ASCEND PERFORMANCE: Plan Approval Paves Way for Year-End Exit ------------------------------------------------------------- Ascend Performance Materials, a leading producer of high-performance and durable engineered materials for everyday essentials and new technologies, disclosed that the United States Bankruptcy Court for the Southern District of Texas has confirmed the Company's Plan of Reorganization. This milestone clears the path for Ascend to successfully emerge from Chapter 11 in the coming weeks with significantly less debt and a stronger capital structure for future growth. "We are excited to have reached this milestone," said Phil McDivitt, President and Chief Executive Officer of Ascend. "Since beginning this process, our people have worked hard to strengthen the business and ensure that Ascend is well positioned to accelerate profitable growth while maintaining its commitments to safety, quality, and performance. I am grateful to our talented employees for their efforts, our customers and vendors for their partnership, and our lenders who supported the Plan. We look forward to completing this process very soon and advancing our leadership in high-performance materials." The Company will complete its financial restructuring and emerge from Chapter 11 after the transactions contemplated by the Plan have been finalized, which is expected to occur by year's end. The Company is operating as usual as it takes these final steps towards emergence and continues to manufacture and produce high-performance materials that improve the quality of life today and inspire a better tomorrow. About Ascend Performance Materials Holdings The Debtors, together with their non-Debtor affiliates, are one of the largest, fully-integrated producers of nylon, a plastic that is used in everyday essentials, like apparel, carpets, and tires, as well as new technologies, like electric vehicles and solar energy systems. Ascend's business primarily revolves around the production and sale of nylon 6,6 (PA66), along with the chemical intermediates and downstream products derived from it. Common applications of PA66 include heating and cooling systems, air bags, batteries, and athletic apparel. Headquartered in Houston, Texas, Ascend has a global workforce of approximately 2,200 employees and operates eleven manufacturing facilities that span the United States, Mexico, Europe, and Asia. Ascend Performance Materials Holdings Inc. and its affiliates filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 25-90127) on April 21, 2025. In the petitions signed by Robert Del Genio, chief restructuring officer, the Debtors disclosed $1 billion to $10 billion in both estimated assets and liabilities. Judge Christopher M. Lopez oversees the cases. The Debtors tapped Bracewell LLP and Kirkland & Ellis LLP as counsel; PJT Partners, Inc. as investment banker; FTI Consulting, Inc. as restructuring advisor; and Deloitte LLP as tax advisor. Epiq Corporate Restructuring LLC is the Debtors' claims, noticing, and solicitation agent. =============== X X X X X X X X =============== AZUL SA: Opt-Out Releases in Chapter 11 Appropriate, Judge Finds ---------------------------------------------------------------- Prior to the Court's confirmation of Brazilian airline Azul's Chapter 11 plan, Alex Wittenberg of Law360 reported that the New York bankruptcy judge said December 12, 2025, he would overrule an objection raised by the U.S. Trustee's Office to Azul's proposed third-party releases, removing a major obstacle to confirmation of the carrier's Plan. The ruling clears the way for Azul to slash more than $2 billion in debt through a restructuring that the airline says is essential to stabilizing its balance sheet and exiting bankruptcy. The judge indicated that the releases, which protect certain non-debtors from liability tied to the restructuring, were appropriately tailored and supported by the record, rejecting arguments that they went too far, the report states. About Azul S.A. Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of flight departures and cities served, offers 900 daily flights to over 150 destinations. With an operating fleet of over 200 aircrafts and more than 15,000 Crewmembers, the Company has a network of 300 non-stop routes. Azul was named by Cirium (leading aviation data analysis company) as the most on-time airline in the world in 2023. In 2020, Azul was awarded best airline in the world by TripAdvisor, the first time a Brazilian flag carrier earned the number one ranking in the Traveler's Choice Awards. On the Web: http://www.voeazul.com.br/imprensa On May 28, 2025, Azul S.A. and 19 affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 25-11176). The cases are pending before Judge Sean H. Lane. The Company is supported by Davis Polk & Wardwell LLP, White & Case LLP, and Pinheiro Neto Advogados as legal counsel; FTI Consulting as financial advisor; Guggenheim Securities, LLC as investment banker; SkyWorks Capital LLC as fleet advisor; and FTI Consulting, C Street Advisory Group, and MassMedia as strategic communications advisors. Stretto is the claims agent. The Participating Lenders are supported by Cleary Gottlieb Steen & Hamilton LLP and Mattos Filho as legal counsel and PJT Partners as investment banker. United Airlines is supported by Hughes Hubbard & Reed LLP and Sidley Austin LLP as legal counsel and Barclays Investment Bank as investment banker. American Airlines is supported by Latham & Watkins LLP as legal counsel. AerCap is supported by Pillsbury Winthrop Shaw Pittman LLP as legal counsel. The U.S. Trustee for Region 2 appointed an official committee to represent unsecured creditors in the Chapter 11 cases. The Committee retained Willkie Farr & Gallagher LLP as its counsel, Alvarez & Marsal North America, LLC, as its financial advisor, Houlihan Lokey Capital, Inc., as its investment banker. The Backstop Commitment Parties are represented by Cleary Gottlieb Steen & Hamilton and Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados. The Subscription Agent is Stretto. ********* 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 * * *