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260116.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, January 16, 2026, Vol. 27, No. 12 Headlines A R G E N T I N A ARGENTINA: Has 'Fully Repaid' Pre-Election Currency, US Says ARGENTINA: Inflation Hit Eight-Year Low, But Dec. Sent a Warning ARGENTINA: Santander, BBVA and Deutsche Lead US$3-Billion Repo C O L O M B I A COLOMBIA: Consumer Confidence Ends at a High Not Seen Since 2014 M E X I C O STARK MANUFACTURING: Customer Group's Bid for Receiver Denied P A R A G U A Y PARAGUAY: Exports Rose, But Faster Import Surge Widened Trade Gap P E R U PERU: Election Meets Superpower Tug-Of-War, But China Holds Lever V E N E Z U E L A CITGO PETROLEUM: Trump's Oil Strategy Leaves Auction in Limbo - - - - - ================= A R G E N T I N A ================= ARGENTINA: Has 'Fully Repaid' Pre-Election Currency, US Says ------------------------------------------------------------ AFP News reports that US Treasury Secretary Scott Bessent disclosed that Argentina has fully repaid an emergency currency loan that generated "tens of millions" in profit for American taxpayers while stabilising a key regional ally. In a social media post, Bessent praised President Javier Milei's economic reforms and said the successful intervention demonstrated that US President Donald Trump's "Peace Through Economic Strength" policy was at work in Latin America, according to AFP News. Argentina faced a severe liquidity crisis in October with the value of the peso plummeting as investors lost faith in the economy, the report notes. This prompted the United States to provide emergency dollar funding through a currency swap from the US Treasury's Exchange Stabilization Fund that effectively propped up the value of the peso, averting a financial crisis, the report says. "Argentina has successfully re-accessed financial markets and has made encouraging changes to its monetary and exchange rate policy framework," Bessent wrote, the report relays. The US Treasury no longer holds any Argentine pesos, he added. Coming days ahead of a key election, the crisis intervention supported Trump ally Milei, a libertarian economist who took office in December 2023 and has implemented sweeping reforms to address Argentina's chronic budget deficits and hyperinflation, the report discloses. Bessent noted that the Exchange Stabilization Fund "has never lost money" and praised international support for Argentina's reforms, including an existing International Monetary Fund program, the report notes. "Only the United States could act as swiftly as we did in October to preserve market and exchange rate stability," he said. The assistance to Argentina reflects the Trump administration's broader engagement in Latin America, highlighted most dramatically by the recent US removal of Venezuelan president Nicolas Maduro, 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. ARGENTINA: Inflation Hit Eight-Year Low, But Dec. Sent a Warning ---------------------------------------------------------------- Florencia Belen Ruiz at Rio Times Online reports that Argentina finished 2025 with annual inflation of 31.5%, a steep fall from 117.8% at the end of 2024 and the lowest year-end result since 2017, when inflation closed at 24.8%. President Javier Milei celebrated the number as proof that his shock-therapy program is working, praising Economy Minister Luis "Toto" Caputo in a short social-media message that quickly ricocheted across platforms, according to Rio Times Online. Caputo frames the strategy as a stabilization plan with three anchors: a fiscal surplus, strict control of money creation, and a stronger central bank balance sheet, the report relays. The government argues that a tighter budget, restrictive monetary policy, and central bank "capitalization" have squeezed inflation expectations and reduced the need to finance the state by printing pesos, the report says. The official breakdown shows why the victory is real, and why it is fragile, the report notes. Rio Times Online relays that inflation did not fall in a straight line. Through 2025, monthly readings moved from 2.2% in January and 2.4% in February to 3.7% in March, then eased to 2.8% in April and a low of 1.5% in May, the report notes. From there, it rose almost every month: 1.6% in June, 1.9% in July and August, 2.1% in September, 2.3% in October, 2.5% in November, and 2.8% in December, the report says. In other words, the year ended with a clear upward drift, the report notes. The composition matters even more, the report relays. Over 2025, goods prices rose 26.5%, while services rose 43.1%, a gap that tends to hit renters and middle-income families hardest, the report relays. In December, transport rose 4.0% and housing and utilities 3.4%, the report notes. Food and non-alcoholic drinks rose 3.1% and was cited as the main regional driver, the report discloses. Clothing rose 1.1%, and education 0.4%, the report says. For Brazil-based readers, Argentina's path affects trade, prices, and investment sentiment across Mercosur supply chains, the report notes. If discipline holds, the region gains a steadier neighbor, the report relays. If the late-year acceleration hardens, volatility returns fast, the report discloses. A further complication is that CPI methodology updates are expected in 2026, which could shift the optics even if daily costs do not, 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. ARGENTINA: Santander, BBVA and Deutsche Lead US$3-Billion Repo -------------------------------------------------------------- Ignacio Olivera Doll & David Feliba at Bloomberg News report that Argentina secured a US$3-billion loan from a group of international banks to help cover a foreign debt payment and replenish the country's depleted coffers. The Central Bank reached a one-year repurchase agreement – or repo – with the lenders at a rate of 7.4 percent, it said in a statement, according to Bloomberg News. Bloomberg News says that six international banks took part in the deal, according to two people familiar with the matter who asked not to be identified discussing private information. Banco Santander SA, Banco Bilbao Vizcaya Argentaria SA and Deutsche Bank AG put in about US$680 million each, the people said, with US$510 million coming from Goldman Sachs Group Inc, US$340 million from JPMorgan Chase & Co. and about US$100 million from Bank of China Ltd, Bloomberg News notes. Representatives for JPMorgan, Goldman, BBVA and Santander declined to comment. A Deutsche Bank spokesperson didn't immediately comment, while a representative for Bank of China didn't immediately respond to a request. Bloomberg News says that President Javier Milei's administration was looking to cobble together enough dollars to meet a US$4.3-billion payment, while opting against an immediate return to international bond markets for now, Bloomberg News relays. The government put up dollar-denominated local bonds due in 2035 and 2038, known as Bonares, to the banks as collateral, Bloomberg News notes. A discount of 40 percent was set on the bonds, meaning Argentina had to turn over about US$5 billion worth to access US$3 billion in cash, the people said, Bloomberg News discloses. The Economy Mnistry didn't immediately reply to a request for comment. Bloomberg News relays that Argentina's sovereign debt rose across the curve before paring those gains. Global bonds due in 2035, some of the most liquid, climbed as much as 0.4 cent, but were trading flat around 74.5 cents on the dollar at 12.30pm in Buenos Aires, Bloomberg News relays. The yield fell to 9.8 percent. Bloomberg News discloses that Argentina's Treasury bought more than half the proceeds from a US$700-million privatization of hydroelectric power plants, according to a person familiar with the matter. The Central Bank, meanwhile, made its first dollar purchase in nine months, buying US$21 million in the foreign-exchange market, according to an official statement, Bloomberg News notes. It bought another US$83 million. "The government isn't just looking to cover upcoming maturities, but also to bolster reserves and build a roughly US$1.5-billion bridge to get through the peak harvest months," said Ramiro Blazquez, Latin America strategist at StoneX. "That makes sense because, until the harvest comes in, it will be difficult to buy many dollars in the spot market, especially with inflation still running hot and policymakers keen to avoid fuelling it with a weaker peso," Bloomberg News notes. Bloomberg News discloses that Economy Minister Luis Caputo said weeks ago that banks had offered up to US$7 billion in repo funding, among other options on the table. Bloomberg News relays that as part of the preparations, the Economy Ministry carried out a debt swap with the Central Bank. The transaction helps assemble collateral in dollar-denominated sovereign bonds that can be pledged in a repo structure, in line with previous operations involving the Central Bank, Bloomberg News notes. "The 7.4 percent rate is very positive, and the one-year tenor shows the economic team is confident reserve accumulation will gain traction this year," said Walter Stoeppelwerth, chief investment officer at Grit Capital Group, Bloomberg News notes. "The market is really reacting to the Central Bank's recent dollar purchases, which signal a stronger commitment than the repo itself, already priced in," Bloomberg News discloses. Bloomberg News says that the repo deal – which extends beyond the immediate maturities and is short term in nature – also underscores the need for Argentina to reestablish market access this year. In mid-2025, the Milei administration signed a two-year, US$2-billion repo loan with international banks set to mature next year, on top of a similar US$1-billion, two-year deal signed earlier that year, adding to the stock of short-term obligations, Bloomberg News notes. Attention will soon turn to Argentina's potential return to international markets, Bloomberg News says. Officials had signaled that resolving the January maturities was a key step toward further compressing country risk, which is already at a multi-year low, and pave the way for cheaper funding down the line, Bloomberg News relays. New financing from Wall Street adds to Milei's momentum since his party won Argentina's midterm elections in October, pulling off a comeback after a sharp market selloff before the vote spurred a US$20-billion bailout from the Trump administration, Bloomberg News notes. The president's libertarian party has emerged as the largest bloc in Congress, while leadership in the Peronist opposition ranks remains fragmented, Bloomberg News discloses. Milei took advantage of his newfound political strength to pass Argentina's first annual budget of his Presidency in December, anchoring his fiscal surplus, Bloomberg News says. He also passed a tax amnesty law and he's marching forward next month with a labour reform bill that will retest his negotiating skills with powerful governors and centrist blocs he needs, Bloomberg News notes. Bloomberg News discloses that analysts project Argentina's economy will grow 3.4 percent this year after posting an estimated 4.4 percent growth in 2025, according to the Central Bank's most recent survey of economists, Bloomberg News 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. =============== C O L O M B I A =============== COLOMBIA: Consumer Confidence Ends at a High Not Seen Since 2014 ---------------------------------------------------------------- Matias Sebastian Lopez at Rio Times Online reports that there are economic turning points that show up first in markets and statistics. And then there are the quieter ones that show up in kitchens, buses, and checkout lines - when people stop bracing for the next bad surprise, according to Rio Times Online. The report notes that Colombia's latest consumer confidence survey suggests the country may be entering that second kind of moment, the report relays. Fedesarrollo's Consumer Confidence Index reached 19.9% in December 2025, up from 17.0% in November, the report relays. This marks a dramatic turnaround from -3.4% a year earlier, an improvement of 23.3 percentage points over twelve months, the report discloses. In historical context, the reading is back in territory last seen in 2014, when household sentiment was markedly stronger, the report says. The "story behind the story" is what moved the needle, the report relays. Confidence rose mainly because Colombians felt today's economy looked less punishing, the report notes. Colombians Cautiously Regain Spending Confidence The report discloses that the Economic Conditions Index jumped five points in December, while the Expectations Index rose a smaller 1.5 points. In plain terms: people are starting to feel the pressure easing now, even if they are not ready to declare the future secure, the report notes. Several survey details fit that picture, the report says. The balance of respondents expecting their household to be better off a year from now climbed to 46.0, while those saying their household is better than a year ago reached 18.8, the report says. Consumers also stayed positive on whether it is a good time to buy furniture and appliances, at 14.9 - often a sign that families are replacing what they delayed during tighter months, the report notes. Yet caution remains visible: the balance for "good economic times in the next 12 months" fell to 5.5 from 10.0 in November, suggesting optimism is real but guarded, the report notes. The rebound is not evenly distributed, the report says. In confidence levels, Bogota, Cali, Barranquilla, and Bucaramanga were positive in December, while Medellin remained slightly negative, the report notes. Month-to-month changes were choppy - Bogota rose 9.4 points, while Barranquilla fell 11.2, the report says. Crucially, the big commitments are still on a leash. Willingness to buy housing improved but stayed negative at -8.7, and willingness to buy a vehicle remained negative at -16.5, the report discloses. The takeaway for readers abroad is straightforward: Colombia's mood is improving in a way that can precede broader economic stabilization, but households are still acting like risk managers, not carefree spenders, the report adds. =========== M E X I C O =========== STARK MANUFACTURING: Customer Group's Bid for Receiver Denied ------------------------------------------------------------- The Hon. Margaret M. Garnett of the U.S. District Court for the Southern District of New York denied a request by a group of customers of Stark Manufacturing LLC for appointment of a receiver "for the reasons discussed on the record at the conference on January 7, 2026." The request is denied without prejudice to renewal as an adversarial proceeding with notice to Stark and an opportunity to be heard. Mahle Thermal and Fluid Systems Manufacturing Management Inc.; Mahle Thermal and Fluid Systems Dayton LLC; Mahle Filter Systems North America, Inc.; Volvo Group North America, LLC; Mack Trucks, Inc.; and AM General LLC, filed an emergency ex parte motion with the U.S. District Court for the Southern District of New York, seeking the immediate appointment of Sheldon Stone of Capstone Partners to be the receiver to assume control over Stark Manufacturing, LLC and its assets in both the United States and Mexico, and for related relief. An immediate ex parte appointment of a receiver is essential, Mahle et al. explained, saying Defendant has engaged in misleading conduct that threatens to halt production for both a critical defense contractor and major automotive manufacturers. Capstone is an experienced restructuring professional with specific experience serving as a receiver, in addition to experience in the automotive industry and in Mexico. In breach of multiple contracts, Defendant abruptly shut down manufacturing facilities. Despite repeated offers from the Customer Group to provide funding to restart and avoid a supply chain crisis, Defendant negotiated in bad faith, Mahle et al. allege. Defendant solicited funds from the Customer Group, assuring that the money would be used to effectuate the release of finished parts at the border and restart operations. However, after receiving the funds on January 5, 2026, Defendant brazenly admitted that the funds were used for other purposes, including retaining bankruptcy counsel. Mahle et al. assert that ex parte relief is imperative because any advance notice to Defendant will almost certainly result in Defendant immediately filing for bankruptcy; a tactic Defendant has repeatedly threatened to use to keep the Customer Group hostage. Mahle et al. also argue that a bankruptcy filing would not benefit Defendant or its creditors; instead, it could prevent any restart of operations, leave the Customer Group and numerous unpaid vendors with no meaningful recovery, and inflict monumental harm on the entire supply chain. The Customer Group will run out of parts manufactured by Defendant within days if operations are not restarted, causing shutdowns, plant or line idling, layoffs, and significant loss of reputation and goodwill throughout the supply chain, including for entities operating in both the automotive and defense sectors. The ex parte appointment of a receiver is appropriate where notice would enable the defendant to frustrate the court's jurisdiction or dissipate assets, and where less drastic remedies are inadequate. As such, the Customer Group requests that entry of the proposed order to show cause, on an ex parte basis, is appropriate here, pending a full hearing, on notice to the Defendant, at a later date. Stark Manufacturing specializes in manufacturing precision fluid handling assemblies for the North American market, including fluid-handling and tubular assemblies, as well as other component parts for various industries, including the Customer Group. The Defendant's contractual relationship with each of the members of the Customer Group, memorialized in supply agreements which obligated the Defendant to manufacture the Component Parts, is highly specialized because the Component Parts the Defendant manufactures and supplies to the Customer Group are unique; they are specially manufactured and custom-made by Stark Manufacturing to meet the individual and specific requirements of each member of the Customer Group and their customers. The Component Parts undergo extensive testing and validation to comply with the strict technical, regulatory, and safety standards applicable in the automotive and defense industries. In turn, certain members of the Customer Group supply directly to separate automaker customers, known as Original Equipment Manufacturers (OEMs), for inclusion in completed vehicles sold to the public for individual and commercial purposes. In the case of at least one member of the Customer Group, AMG, the Component Parts are included in the vehicles it sells to the U.S. Military and the militaries of certain allied countries of the United States. The Defendant has committed numerous detrimental breaches to its contracts with the Customer Group, which, if not immediately addressed, will not only have a catastrophic impact on the Customer Group and their businesses, but it will also negatively impact the industries in which they operate. Despite the Defendant's breaches and bad acts, the Customer Group proposed a resolution, at their own expense, to the Defendant, which the Defendant flatly rejected. The Customer Group, without any obligation, offered to satisfy the Defendant's disclosed outstanding vendor payables and to fund its ongoing operational costs necessary to restart production in Mexico. Mahle et al. further contend that appointing an independent receiver to assume complete control of the Defendant and its assets in both the United States and Mexico would largely ameliorate the problems caused by the Defendant. By utilizing the Defendant's management and operational teams in Mexico, the receiver could implement an appropriate strategy to maximize the value of the business and to resume operations to avoid the imminent disruption to the supply chain that the Defendant's abrupt cessation of operations has caused. With a receiver appointed, the Customer Group is willing to fund the necessary costs and expenses to resume and continue the Defendant's operations, up to $3 million in accordance with an agreed-upon budget, to recover the Component Parts already produced and provide sufficient lead time to allow the members of the Customer Group to transition to a new supplier or suppliers. The Customer Group says the proposed receiver, Sheldon Stone, is a seasoned restructuring professional with over thirty-five (35) years of experience as a financial advisor, consultant, and corporate executive. Mr. Stone has specific experience in the automotive industry and leads his firm's automotive team. He has conducted more than 60 strategic plans for Tier 1 and 2 suppliers and has served as a financial advisor to Tier 1 and Tier 2 suppliers, including having served as Chief Restructuring Officer and engaged in numerous special M&A transactions. Mr. Stone has also previously served as a receiver. In 2025, he has experience in managing, operating, and eventually selling an underperforming automotive plant in Mexico, the locus of the facility, with the remaining operations in which the Defendant has an interest. Mr. Stone is well qualified to manage the Defendant's assets and affairs and to preserve the Defendant's operations and its relationship with the Customer Group, among others. He has shown a strong interest in assuming the role of the receiver here, if the Court appoints him. Clearly, the Defendant and its owners can no longer be trusted to operate the business in a manner that will not cause imminent and catastrophic harm to the Customer Group, and potentially others, as well as the other critical components of the supply chain in the automotive and defense industries. MAHLE Thermal and Fluid Systems Manufacturing Management, Inc. is a Delaware corporation that maintains its principal place of business in Michigan. The company is therefore a citizen of Delaware and Michigan. MAHLE Thermal and Fluid Systems Dayton L.L.C. is a Delaware limited liability company. Its sole member is MAHLE Thermal and Fluid Systems Holding USA Inc., a Delaware corporation with its principal place of business in Michigan. It is also a citizen of Delaware and Michigan. MAHLE Filter Systems North America is a Delaware corporation that maintains its principal place of business in Michigan. It is therefore a citizen of Delaware and Michigan. Volvo Group North America, LLC is a Delaware limited liability company that maintains its principal place of business in Greensboro, North Carolina. Its sole member is Mack Trucks, Inc., which is a Pennsylvania corporation. It is also a citizen of Delaware and North Carolina. Mack Trucks, Inc. is a Pennsylvania corporation that maintains its principal place of business in Greensboro, North Carolina. It is therefore a citizen of Pennsylvania and North Carolina. AM General LLC ("AMG") is a Delaware limited liability company with its principal place of business in Indiana. Its sole member is PM General Purchaser LLC, whose sole member is PM General Midco LLC. PM General Midco LLC's sole member is PM General Topco, Inc., a Delaware corporation with its principal place of business in Indiana. Accordingly, AMG is a citizen of Delaware and Indiana. The Plaintiffs further request that the Court issue a stay, preventing all other persons and entities from commencing or continuing any action or proceeding against, or taking any action to establish or enforce any claim, right, or interest for, against, on behalf of, in, or in the name of, Defendant. Mahle et al. contend the Court should exercise its broad equitable powers to grant similar relief. A stay would prevent duplicative litigation or claims by other customers and creditors who seek to collect on their claims against the Defendant or otherwise to enforce litigation claims against it. Mahle et al. also assert that the requested relief should extend to the ability of the Defendant, anyone acting on behalf of the Defendant, or any other creditors, from filing a voluntary or involuntary bankruptcy petition for or against the Defendant. A receiver, protected by an injunction, would be able to maintain the status quo and to ensure that the Defendant's business continues to operate while also satisfying the Defendant's existing and ongoing obligations. * * * On January 9, District Court Judge Margaret M. Garnett granted in part and denied in part the MAHLE Plaintiffs' request for a temporary restraining order requiring Stark to immediately release to MAHLE certain component parts held by Stark's custom broker, P&P Global Logistics LLC; and maintain the current state of specialty tools and component parts belonging to the MAHLE Plaintiffs. Specifically, Judge Garnett directed Stark and its agents to "preserve and take reasonable steps necessary to prevent any damage, harm, alteration, or loss to the specialty tooling equipment owed by MAHLE Plaintiffs." Stark is also enjoined from selling or otherwise disposing of the Tooling. Stark and its agents are also directed to preserve and take reasonable steps necessary to prevent damage, harm, alteration, or loss to the Component Parts manufactured for MAHLE Plaintiffs and paid-for by them, including the Component Parts currently being held by P&PG in Texas. Stark is also enjoined from selling or otherwise disposing of the Component Parts, other than releasing them to the custody of the MAHLE Plaintiffs. Judge Garnett directed all parties to appear before the Court for a preliminary injunction hearing on Jan. 14, 2026. About Stark Manufacturing, LLC Stark Manufacturing, LLC, is a New York limited liability company with two members: Neal Cohen and CoBe Equities, LLC. It specializes in manufacturing precision fluid handling assemblies for the North American market, including fluid-handling and tubular assemblies, as well as other component parts for various industries, including the Customer Group. Stark is facing a receivership case captioned as MAHLE Thermal and Fluid Systems Manufacturing Management Inc.; MAHLE Thermal and Fluid Systems Dayton LLC; MAHLE Filter Systems North America, Inc.; Volvo Group North America, LLC; Mack Trucks, Inc.; and AM General LLC v. Stark Manufacturing, LLC, Case No. 1:26-cv-00083 (S.D.N.Y.), before the Hon. Margaret M. Garnett. The case was filed on Jan. 6, 2026. Counsel to Plaintiffs: Tracy L. Klestadt, Esq. Kathleen Aiello, Esq. Klestadt Winters Jureller Southard & Stevens, LLP 200 West 41st Street, 17th Floor New York, NY 10036 Tel: (212) 972-3000 Fax: (212) 972-2245 Email: tklestadt@klestadt.com kaiello@klestadt.com =============== P A R A G U A Y =============== PARAGUAY: Exports Rose, But Faster Import Surge Widened Trade Gap ----------------------------------------------------------------- Juan Martinez at Rio Times Online reports three key points regarding Paraguay: * Paraguay's exports climbed to $16.7203 billion in 2025, but imports jumped to $18.1111 billion, leaving a $1.3907 billion goods-trade deficit. * The export mix mattered: registered exports grew slowly, re-exports surged, and maquila shipments advanced, pointing to both hub activity and industrial upgrading. * The import bill was driven by machinery and parts, suggesting investment and demand strength, but also a bigger need for hard-currency discipline. Paraguay closed 2025 with a trade story that looks stronger and riskier at the same time, Rio Times relays. Total exports reached $16.7203 billion, up 5.8% from 2024, the report says. Yet imports expanded even faster, rising 10.6% to $18.1111 billion, the report says. That pushed the country's goods-trade balance to a deficit of about $1.3907 billion, more than double the shortfall recorded the year before, the report notes. The composition of exports explains why the top-line gain can be misleading, the report says. The report discloses that registered exports, the core measure tied to domestic production, totaled $11.0821 billion, up just 1.5%. The bigger jump came from re-exports, which surged 17.2% to $4.5847 billion, underscoring Paraguay's role as a regional trading platform, the report notes. "Other exports" added $1.0535 billion, up 7.7%, rounding out a picture of an economy that earns foreign currency through multiple channels, not only commodities, the report says. Sector-by-sector, soy remained the single largest export line at $2.354 billion, even after a sharp annual drop, the report notes. Beef and beef offal moved the other way, climbing 21.9% to about $2.1732 billion, the report discloses. Electricity exports generated roughly $1.2212 billion, up 2.8%p, the report says. Corn exports reached around $596 million, soybean oil about $612 million, and industrial items such as wires and electrical conductors brought in roughly $405 millionp, the report says. Maquila Exports Rise, Imports Shift Patterns The maquila regime offered a clearer sign of production upgrading: maquila exports hit about $1.2367 billion, up 10%, reflecting the steady expansion of export-oriented manufacturing, the report notes. Imports tell the second half of the story. Electrical machinery and parts led the surge at roughly $3.3017 billion, up 24.2%, while fuel and lubricants fell 12.9% to about $1.7752 billion, the report says. Imports for internal use totaled about $14.5675 billion, and purchases under the tourism regime about $3.1544 billion, tying the import cycle to both domestic demand and cross-border commerce, the report notes. Brazil remained the top export destination at about $3.434 billion, while China led imports by share, with Brazil second and the United States third, the report discloses. The challenge for 2026 is straightforward: keep expanding competitive exports and investment-linked manufacturing, while preventing an import boom from becoming a long-term external vulnerability, the report adds. ======= P E R U ======= PERU: Election Meets Superpower Tug-Of-War, But China Holds Lever ----------------------------------------------------------------- Matias Sebastian Lopez at Rio Times Online reports that Trump's Latin America posture has revived an old question with a new twist: can Washington still steer outcomes in a region where China now finances, builds, and buys at scale? Peru is the cleanest test, according to Rio Times Online. On April 12, 2026, voters choose a president and, for the first time in more than three decades, a bicameral Congress - 60 senators and 130 deputies, the report notes. The ballot is crowded, with roughly 35 presidential tickets, and a June runoff looks likely, the report relays. The mood is brittle: electoral authorities have even discussed protective equipment for candidates after threats and attacks, a sign that security, not diplomacy, sits at the center of public anxiety, the report says. In that landscape, U.S. influence is mostly political theater - sharp statements, public signals, and occasional financial muscle elsewhere in the region, the report discloses. But Peru's external dependence is increasingly economic, and it points across the Pacific, the report relays. Rio Times Online discloses that China's footprint is hard infrastructure. The Chancay megaport, developed with state-owned COSCO, has been pitched as a direct Pacific gateway that can connect to Shanghai in about 23 days, the report notes. Investment figures around the project hover near $3.5 billion, with ambitions measured in million-TEU container capacity, bulk cargo volumes, and dedicated vehicle handling, supported by a tunnel link meant to speed freight to the Pan-American Highway, the report relays. China's Leverage Shapes Peru's Politics The report notes that China's reach also runs through Lima's lights. Since recent acquisitions, Chinese state-linked groups effectively control all of the capital's electricity distribution, split roughly between two operators, the report discloses. That is the kind of leverage voters rarely debate - but businesses and households feel, the report says. Mining completes the triangle. Las Bambas, one of the world's largest copper operations, is Chinese-controlled and has suffered repeated stoppages tied to local conflict - disruptions that ripple into global supply chains, the report notes. Trade numbers underline the imbalance: China is Peru's top partner by a wide margin, while the United States remains important but secondary, the report relays. The likely outcome is less dramatic than the slogans, the report notes. Foreign pressure may move elites and headlines, the report relays. Peru's election will still hinge on who looks toughest on disorder, most credible on growth, and least compromised by the country's perpetual scandals. ================= V E N E Z U E L A ================= CITGO PETROLEUM: Trump's Oil Strategy Leaves Auction in Limbo ------------------------------------------------------------- globalinsolvency.com, citing Reuters, reports that as U.S. President Donald Trump moves quickly to put together a $100 billion effort to revive Venezuela's oil industry, the administration has yet to finalize the fate of the crown jewel of the country's foreign assets, U.S. refining company Citgo Petroleum. Houston-based Citgo has been tied up in the lengthy auction of its parent, PDV Holding, organized by a Delaware court to pay billions of dollars to creditors for ‌debt defaults and expropriations in Venezuela, according to globalinsolvency.com. About CITGO Citgo Petroleum Corporation is a United States-based refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. Based in Houston, Texas, Citgo is majority-owned by PDVSA, a state-owned company of the Venezuelan government (although due to U.S. sanctions, in 2019, they no longer economically benefit from Citgo.) As reported in the Troubled Company Reporter-Latin America in September 2025, Fitch Ratings affirmed the Long-Term Issuer Default Rating (IDR) of CITGO Petroleum Corp. (CITGO, or Opco) at 'B' with a Stable Outlook and CITGO Holding, Inc. (Holdco) at 'CCC+'. Fitch also affirmed Opco's existing senior secured notes and industrial revenue bonds at 'BB' with a Recovery Rating of 'RR1'. ********* 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 2026. 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 * * *