260708.mbx

260708.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 Wednesday, July 8, 2026, Vol. 27, No. 135 Headlines A R G E N T I N A YPF SA: Investors Fight Argentina Over Discovery in $16BB Case B E L I Z E BELIZE: IDB OKS US$8MM Loan to Boost Public-Sector Efficiency B R A Z I L BRASKEM SA: Gets US Asset Shield as Brazil Debt Talks Play Out MATO GROSSO: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable C O L O M B I A GEOPARK LIMITED: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable J A M A I C A JAMAICA: Foreign Investment Falls Sharply Over Several Years M E X I C O VINTE VIVIENDAS: S&P Upgrades ICR to 'BB', Outlook Stable P U E R T O R I C O BITCOIN DEPOT: Claims to be Paid from Asset Sale Proceeds BITCOIN DEPOT: Overcomes States' Challenge to Bankruptcy Plan Vote CENTRO DE ENVEJECIENTES: Objections to Government Claims Tossed PUERTO RICO: Oversight Board Pitches $3B Bond Settlement PUERTO RICO: Personal-Capacity Claims Not Discharged by Plan - - - - - ================= A R G E N T I N A ================= YPF SA: Investors Fight Argentina Over Discovery in $16BB Case -------------------------------------------------------------- Caroline Simson at law360.com reports that as investors in Argentine oil and gas exploration company YPF SA gear up for a multibillion-dollar arbitration against Argentina, disputes still remain over exactly what discovery from a parallel proceeding in New York can be used in the arbitration. About YPF SA YPF SA, an energy company, engages in the oil and gas upstream and downstream activities in Argentina. Its upstream operations include the exploration, exploitation, and production of crude oil, and natural gas. The company's downstream operations include petrochemical production and crude oil refining; transportation and distribution of refined and petrochemical products; commercialization of crude oil, petrochemical products, and specialties. As reported in the Troubled Company Reporter-Latin America in June 2026, Fitch Ratings upgraded YPF S.A.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B-' from 'CCC+'. Fitch has also upgraded YPF's outstanding senior unsecured notes to 'B-' from 'CCC+' with a Recovery Rating of 'RR4'. The Rating Outlook is Stable. =========== B E L I Z E =========== BELIZE: IDB OKS US$8MM Loan to Boost Public-Sector Efficiency ------------------------------------------------------------- The Board of Executive Directors of the Inter-American Development Bank (IDB) approved a loan of up to US$8 million to improve the efficiency of the public sector and strengthen fiscal sustainability in Belize, enhancing public employment management and optimizing spending. The program, which will be executed by Belize’s Ministry of Public Service and Disaster Risk Management, aims to strengthen strategic workforce management and promote a more efficient, transparent, and digitally enabled public administration. Belize has made progress in strengthening its fiscal position, but a growing wage bill continues to constrain resources for priority investments. By improving public employment management, the program will help create space for investments in infrastructure, education, and health while supporting sustainable growth. Among the key reforms, the program will introduce an integrated Human Resources Management Information System, strengthen payroll controls, and support workforce planning and compensation reforms. It will also invest in digital infrastructure, data management, and cybersecurity to improve decision-making and operational efficiency across government. “This program will help Belize build a more modern, efficient, and transparent public sector, strengthening its capacity to deliver better services to citizens while supporting fiscal sustainability and long-term development,” said Karla González, IDB Group representative in Belize. The initiative is expected to benefit approximately 16,000 public employees through improved systems, training, and more transparent practices. It will also enhance public sector workforce skills and improve the use of data to guide policy and management decisions across the public sector. The program promotes inclusive public employment practices and supports Belize’s broader digital transformation agenda, contributing to more responsive and citizen-centered service delivery. It aligns with the IDB’s work to strengthen institutions and public management across the region. The total project cost is $9 million, including $8 million financed by the IDB and $1 million in local counterpart funding, with a five-year disbursement period. As reported in the Troubled Company Reporter-Latin America on Oct. 18, 2024, Moody's Ratings has upgraded Government of Belize's foreign- and local currency issuer ratings to Caa1 from Caa2. The outlook remains stable. =========== B R A Z I L =========== BRASKEM SA: Gets US Asset Shield as Brazil Debt Talks Play Out -------------------------------------------------------------- Ben Zigterman at law360.com reports that a New York bankruptcy judge granted provisional Chapter 15 relief to Braskem SA on June 30, allowing the Brazilian petrochemical and plastics company to use bankruptcy's automatic stay to pause creditor actions against its U.S. assets as it seeks to restructure its roughly $11 billion in funded debt. Braskem S.A is a Brazilian petrochemical company headquartered in Sao Paulo. The company is the largest petrochemical company in Latin America and has become a major player in the international petrochemical market. Braskem SA sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 26-11522) on June 26, 2026. Honorable Bankruptcy Judge Michael E. Wiles handles the case. The Debtor is represented by Thomas S. Kessler, Esq. of Cleary Gottlieb Steen & Hamilton LLP. As reported in the Troubled Company Reporter-Latin America on July 2, 2026, Fitch Ratings has downgraded Braskem S.A.'s (Braskem) Issuer Default Ratings (IDRs) to 'C' from 'CC'. Fitch has also downgraded Braskem America Finance Company's senior unsecured rating to 'C' with a Recovery Rating of 'RR4' from 'CC'/'RR4' and Braskem Netherlands Finance B.V.'s senior unsecured rating to 'C'/'RR4' from 'CC'/'RR4'. Fitch affirmed the subordinated rating at 'C'/'RR6'. Fitch has downgraded Braskem's National Scale rating to 'C(bra)' from 'CC(bra)'. MATO GROSSO: Fitch Affirms 'BB' LongTerm IDRs, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed the State of Mato Grosso do Sul's (EMS) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'. The Rating Outlook is Stable. In addition, Fitch has affirmed EMS's Short-Term Foreign and Local Currency IDRs at 'B', its National Long-Term Rating at 'AAA(bra)'/Stable, and its National Short-Term Rating at 'F1+(bra)'. EMS's Standalone Credit Profile (SCP) is assessed at 'b+'. EMS has significant fiscal autonomy, with transfers from the federal government accounting for approximately one-quarter of the state's operating revenues. Tax collection benefits from a diversified economy, although it remains somewhat exposed to gas imports from neighboring Bolivia, where production volumes are on a declining trend. At the same time, the establishment of new industries in the state, including cellulose producers, should provide additional momentum to economic activity. The federal government has introduced the Program for Full Payment of State Debts (Propag), which offers discounts on debt service for intergovernmental debt in exchange for debt prepayments, investments in strategic sectors, and contributions to a fund to be shared among Brazilian states. Under Propag, EMS's intergovernmental debt will be indexed to the IPCA (Consumer Price Index) and bear a 0% interest rate. Previously, the debt carried the lower of IPCA plus 4% or the Selic policy rate. Although the program will clearly reduce interest payments on intergovernmental debt over the rating horizon, projected coverage metrics remain broadly stable compared with last year, as the state expects a significant increase in debt service on other borrowings linked to new transactions financing capital expenditures. KEY RATING DRIVERS Standalone Credit Profile EMS's SCP is assessed at 'b+', reflecting a combination of a 'Weaker' Risk Profile, an 'a' Financial Profile, and its peer analysis. Risk Profile: 'Weaker' EMS's 'Weaker' risk profile resulted from a mix of 'Midrange' and 'Weaker' assessments of six key risk factors, as outlined below. Revenue Robustness: 'Midrange' Fitch evaluates this factor as 'Midrange' due to the state's fiscal autonomy and low dependence on federal transfers. The Brazilian tax collection framework transfers a large share of responsibility to collect taxes to states and municipalities. Constitutional transfers exist to compensate poorer entities. Fitch considers a high dependence on transfers a weak feature for Brazilian LRGs. The primary metric for revenue robustness is the transfers ratio (transfers to operating revenues). Fitch classifies LRGs reporting a ratio above or equal to 40% as 'Weaker', while others with a ratio below 40% are 'Midrange'. EMS reports substantial fiscal autonomy, supporting this 'midrange' assessment. Transfers accounted for 26.8% of operating revenues on average over 2021-2025. Historically, revenue growth has lagged GDP growth, reflecting the impact of declining gas import volumes from Bolivia. Over 2020-2025, operating revenues grew at a real CAGR of 1.5%, compared with average annual GDP growth of 3.3%. Revenue Adjustability: 'Weaker' Fitch evaluates this factor as 'Weaker' due to Brazilian states' reliance on a small number of taxpayers and the history of federal intervention in state tax policy. Fitch believes Brazilian states and municipalities have low capacity to increase revenue during a downturn. Tax tariffs are close to the constitutional national ceiling, and a small number of taxpayers contribute a large share of tax collection, making additional taxation unaffordable. Brazil also has a history of federal intervention in subnational taxation. In July 2022, the National Congress set a ceiling on the Imposto sobre Circulação de Mercadorias e Serviços (ICMS) tariff on fuels and electricity. This caused revenue losses for states and municipalities, which were only partially reversed later. The most significant tax, the ICMS, has a concentrated taxpayer base. The most important economic sectors for tax collection in EMS are oil and gas, utilities, and beverages. Together, the 10 largest tax payers within these sectors represented 41.9% of total ICMS tax collection in 2025. Expenditure Sustainability: 'Midrange' Fitch evaluates this factor as 'Midrange' due to adequate operating margins during the last few years. Responsibilities for states are moderately countercyclical because they handle healthcare, education and law enforcement. Expenditures grow with revenues due to earmarked revenues. States and municipalities must allocate a share of revenues to health and education, causing procyclical behavior in good times; high revenue growth leads to increased spending. However, the significant weight of personal expenditures and salary rigidity means downturns do not cause similar drops in expenditures despite lower revenues. EMS reports moderate control over expenditure growth, with sound margins. Operating margins averaged 14.2% in the 2021-2025 period, and 11.8% by the end of 2025. The state is current on its payroll bill and has no significant delays for the payment of suppliers. Operating expenditure CAGR was 3.3% in real terms between 2020-2025, above operating revenues CAGR of 1.5%. Expenditure Adjustability: 'Weaker' Brazilian local governments have a fairly rigid cost structure, driving this factor to 'Weaker'. As per the Brazilian Constitution, there is low affordability of expenditure reduction, especially for the payroll bill and pensions. As a result, whenever there is an unpredictable reduction in revenues, operating expenditures do not automatically decrease in parallel. EMS's personal expenditures were 59.3% of total expenditures in 2025. This item has very limited flexibility for adjustments given salary rigidity and limited ability to manage human resources or pensions. Other operating expenditures were 28.5% of total expenditures in 2025 and have some flexibility for adjustments but are still limited by constitutional mandates on health and education. Capex was 10.4% of total expenditures in 2025 and averaged 11.7% between 2021 and 2025. Brazilian LRGs often rely on investment cuts in challenging economic scenarios. Liabilities and Liquidity Robustness: 'Weaker' Access to new loans is restricted because Brazilian LRGs are not allowed to access the market through bond issuances and private banks rarely engage with subnationals. Lenders consist mainly of public commercial and development banks and multilateral organizations. Loans are often guaranteed by the federal government, especially for foreign currency loans. For that reason, the federal government has strict control over new lending to LRGs. There is a moderate national framework for debt and liquidity management since there are prudent borrowing limits and restrictions on loan types. Under the Fiscal Responsibility Law of 2000, Brazilian LRGs must comply with indebtedness limits. Consolidated net debt for states cannot exceed 2x, or 200%, of net current revenue. EMS's debt ratio was 24.96% as of YE 2025. The law also sets limits for guarantees at 22% of net current revenues. EMS had no guarantees as of YE 2025. As of December 2025, external debt was BRL1,393 million, or 14% of direct debt. External debt is largely owed to multilateral organizations and has a federal government guarantee. Debt directly owed to the federal government was 77.6% of EMS's direct debt in December 2025. EMS joined Propag and renegotiated its intergovernmental debt, reducing its cost to IPCA + 0% in exchange for 0% debt prepayment, a 2% annual contribution to the FEF, and 2% annual investments in strategic sectors, both calculated on the debt stock. There is moderate off-balance-sheet risk stemming from the pension system, which is a burden for most Brazilian LRGs, especially for states with a mandate over education and public security. Another contingent liability is the payment of judicial claims or precatorios. EMS has fully amortized the stock of precatorios as of April 2024. The state is now servicing new judicial liabilities within the fiscal year or in the following fiscal year, depending on the registry date. Liabilities and Liquidity Flexibility: 'Midrange' A framework exists for the federal government to provide emergency liquidity support by extending the maturity date for the state's federal debt. Fitch assesses the entity's available liquidity, excluding sovereign support, to decide between 'Weaker' and 'Midrange' assessments for liabilities and liquidity flexibility. Fitch's liquidity rate for Brazilian LRGs is defined as the ratio of short-term financial obligations to net cash, as established by the previous version of the CAPAG system by the Brazilian National Treasury. The CAPAG, or Capacidade de Pagamento, assesses which entities qualify for federal government guarantees. Fitch has set a threshold of 100% for the average of the last three years (2023-2025 year-end) and for the last year-end results available (December 2025), which would result in a 'Midrange' assessment for this factor. EMS reported a three-year average liquidity ratio of 40%. As of December 2025, the metric reached 48.5%, supporting the 'Midrange' assessment. Financial Profile: 'a category' EMS's Financial Profile is assessed at 'a'. Fitch's rating case forward-looking scenario indicates that the payback ratio (net adjusted debt to operating balance), the primary metric for the financial profile assessment, will reach an average of 6.0x for the 2028-2030 period, which is aligned with a 'aa' assessment. The actual debt service coverage ratio, the secondary metric, is projected at an average of 1.3x for 2028-2030, aligned with a 'bbb' assessment. Fitch applies an override to the overall financial profile considering that the secondary metric is two categories below the primary metric. Fiscal debt burden is projected at 38% for the same period. EMS financial profile indicates a deterioration of operating margins in Fitch's rating case scenario due to a deceleration in tax collection growth, which results from ongoing structural changes in the state's economic matrix, with gas imports representing a lower share of tax collection. As Fitch monitors EMS fiscal performance, improvements in tax collection prospects could lead to less severe assumptions for revenue growth. EMS joined Propag and renegotiated the terms of its intergovernmental debt, which represented 77.6% of direct debt at end-2025. Although interest payments on intergovernmental debt will decline significantly, the overall debt service profile is not expected to improve relative to last year. The state projects a substantial increase in debt service on other loans used to finance capital expenditures, offsetting the positive impact of Propag. Other Rating Factors EMS's IDRs benefit from a two-notch uplift from its SCP through intergovernmental finance support. Short-Term Ratings EMS's Short-Term Foreign and Local Currency ratings are positioned at 'B' following the Rating Correspondence Table. For the national scale, the correspondence table indicates an 'F1+(bra)' Short-Term rating. National Ratings EMS's National Scale Rating is positioned at 'AAA(bra)', at the top of the correspondence table, considering that its ratings are raised to the sovereign rating through intergovernmental finance support. Peer Analysis Fitch assesses EMS' SCP at 'b+', reflecting a combination of a 'Weaker' risk profile and financial profile assessed in the 'a' category under Fitch's rating case scenario. The SCP also reflects the peer comparison. EMS's 'BB' IDR benefits from a two-notch uplift from its SCP because the federal government is its most significant creditor. EMS closest peer is the State of Alagoas (BB/Stable), which also has an SCP of 'b+' and benefits from a two-notch uplift from intergovernmental finance support. Issuer Profile Fitch classifies EMS as a Type B LRG, which are required to cover debt service from cash flow on an annual basis. EMS's economy is diverse but has traditionally been driven by the agriculture and livestock sectors. It has a population of 2.8 million people. Key Assumptions Risk Profile: 'Weaker' Revenue Robustness: 'Midrange' Revenue Adjustability: 'Weaker' Expenditure Sustainability: 'Midrange' Expenditure Adjustability: 'Weaker' Liabilities and Liquidity Robustness: 'Weaker' Liabilities and Liquidity Flexibility: 'Midrange' Financial Profile: 'a' Asymmetric Risk: 'N/A' Support (Budget Loans): '2' Support (Ad Hoc): 'N/A' Rating Cap (LT IDR): 'N/A' Rating Cap (LT LC IDR) 'N/A' Rating Floor: 'N/A' Quantitative assumptions - Issuer Specific Fitch's rating action is driven by the following assumptions for reference metrics under its 2026-2030 rating case scenario. These include their respective changes since the last review and weights in the rating decision: - Payback ratio: 6.0x; - Actual coverage ratio: 1.3x; - Fiscal debt burden: 38%. Fitch's through-the-cycle rating case incorporates a combination of revenue, cost and financial risk stresses. It is based on 2021-2025 published figures and its expectations for 2026-2030. Quantitative assumptions - Sovereign Related Figures as per Fitch's sovereign actual for 2025 and forecast for 2026-2028, respectively (no weights and changes since the last review are included as none of these assumptions was material to the rating action). Projections are from Fitch's "Global Economic Outlook - June 2026." Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A negative rating action on Brazil's Long-Term IDR would lead to a corresponding rating action on EMS given that its ratings are uplifted to the sovereign level through intergovernmental finance support; - EMS's IDRs would be downgraded if its enhanced payback ratio, after accounting for federal support, is projected above 5x and the coverage ratio is projected below 2x. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A positive rating action on Brazil's Long-Term IDR could lead to a corresponding rating action on EMS given that its ratings are uplifted to the sovereign level through intergovernmental finance support. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for EMS. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Public Ratings with Credit Linkage to other ratings The ratings of EMS are linked to the Brazilian sovereign through intergovernmental finance support. Entity/Debt Rating Prior ----------- ------ ----- Estado de Mato Grosso do Sul LT IDR BB Affirmed BB ST IDR B Affirmed B LC LT IDR BB Affirmed BB LC ST IDR B Affirmed B Natl LT AAA(bra) Affirmed AAA(bra) Natl ST F1+(bra) Affirmed F1+(bra) =============== C O L O M B I A =============== GEOPARK LIMITED: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed GeoPark Limited's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B+'. The Rating Outlook is Stable. Fitch has also affirmed GeoPark's USD500 million notes due 2027 and the USD550 million notes due in 2030 at 'B+' with a Recovery Rating of 'RR4'. GeoPark's ratings reflect its strong financial profile and its low-cost structure, constrained by its small production scale and elevated capex requirements to sustain and grow production in Vaca Muerta. Fitch's estimates GeoPark's production to average 29,000 barrels of oil equivalent per day (boed) in 2026; growing to 42,500 boed in 2028, while maintaining proven reserves (1P) reserve life at seven years. EBITDA leverage is expected to remain at or below 2.0x over the rating horizon. Key Rating Drivers Small Scale: GeoPark's ratings remain constrained to the 'B' category, given its relatively small scale of operations. Production and 1P reserves are below the threshold of the 'BB' category, at 75,000 boed and at least 400 million barrels of oil equivalent (mmboe), respectively. Fitch forecasts GeoPark's daily production at around 29,000 boed in 2026. As of 1Q26, the company reported production of 27,249 boed, 4% lower than the 4Q25 level. Fitch's base case assumes Geopark's production to be 29,000 boed in 2026; and growing to 42,500 in 2028. Fitch expects the reserve life indices (RLI) to remain around five years for proved developed producing (PDP) reserves and seven years for 1P reserves in the coming years. Elevated Capex Requirements: GeoPark's rating is constrained by the need for material investment in Vaca Muerta to sustain production at levels consistent with the 'b+' category. While acreage development is relatively de-risked and there are no binding commitments to invest, continued spending is needed to maintain production above current levels, which are more aligned with a lower rating category. Fitch estimates GeoPark will invest about USD540 million over the next three years in Argentina to add reserves and support production. Under Fitch's capex assumptions, CFO covers annual capex by 0.9x, leading to negative FCF through the rating horizon. Strong Financial Profile: GeoPark's strong financial profile mitigates these investment needs, supported by a favorable debt maturity profile, with 70% of debt due in 2030, USD275 million of cash, USD100 million of undrawn committed credit lines, and USD310 million available under Vitol's prepayment agreement. The recent USD111 million equity investment from Grupo Gilinski, now GeoPark's largest shareholder with a 24% stake, further enhances financial flexibility. Fitch expects the company to fund its capex program through a mix of internal cash flow and debt while retaining adequate liquidity. Low-Cost Producer: Fitch expects Geopark to maintain its cost-efficient production profile. The company's competitive advantages stem from its operations in Colombia's onshore oilfields, which result in lower exploration costs, partly from low transportation costs associated with selling at the wellhead. In 2025, GeoPark's half-cycle cost was estimated at $19.3/boe and the full-cycle cost was $35.0/boe. Lifting costs, excluding transportation, were $14.0/boe. Adequate Leverage: Fitch projects GeoPark's EBITDA leverage to remain at or below 2.0x over the rating horizon, despite growth capex, as GeoPark is expected to fund its 2026-2029 investment plan largely through operating cash flow supported by stable production and disciplined spending. Fitch also projects debt/1P will be at or below USD7/boe, assuming 1P replacement of at least 100%. Fitch's base case assumes that the 2026-2029 capex plan will be about USD1.2 billion. Peer Analysis GeoPark's credit and business profiles are comparable to other small independent oil producers in Latin America. The ratings of SierraCol Energy Limited (B+/Stable), Parex Resources Inc. (B+/Stable) and Gran Tierra Energy Inc. (B+/Stable), are all constrained to the 'B' category by the inherent operational risks associated with the small scale and low diversification of their oil and gas production. Brava Energia S.A.'s (BB-/RWP) gas-focused business and robust reserves differentiate it from the independent producers in Colombia. Fitch expects GeoPark's production to be around 29,000 boed in 2026, which is lower than SierraCol's expected production of 44,000 boed, Parex's 84,000 boed, and Gran Tierra's 45,000 boed. GeoPark's 1P RLI is expected to be at least seven years over the rating horizon, in line with its Colombian peers. GeoPark's half-cycle cost of $19.3/boe and full-cycle cost of $35.0/boe in 2025 are at the lower end of the range for producers in the region. Fitch expects GeoPark, like its Colombian peers, to maintain leverage levels below 3.0x over the next four years. Fitch’s Key Rating-Case Assumptions - Average Brent prices from 2026 to 2029 (USD/bbl): 87, 65, 60, 60; - Average production of 29,000 boed in 2026; - No dividend distributions starting in 3Q26; - Annual average capex of USD300 million between 2026-2029; - Production cost per boe of USD14 in 2026; - SG&A plus selling expenses per boe of USD6.0 in 2026; - EBITDA leverage at or below 2.0x over the rating horizon; - Reserve replenishment ratio annual average of 1P of 100%. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bbb', Lower), sector characteristics ('bb', Moderate), market and competitive positioning ('b', Moderate), diversification and asset quality ('b+', Moderate), company operational characteristics ('b', Higher), profitability ('bb-', Moderate), financial structure ('a+', Lower), and financial flexibility ('bb+', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year 2026, 40% for the forecast year 2027 and 40% for the forecast year 2028. B+ to CC considerations apply in its analysis and has no impact. The governance assessment of 'good' has no impact. The operating environment assessment of 'bb+' has no impact. The SCP is 'b+'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B+'. Recovery Analysis The recovery analysis assumes that GeoPark would be a going concern (GC) in bankruptcy and that it would be reorganized rather than liquidated. GC Approach: - A 10% administrative claim. - The GC EBITDA is estimated at USD300 million. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the valuation of GeoPark. - EV multiple of 5.0x. With these assumptions, Fitch's waterfall generated recovery computation (WGRC) for the senior secured prepayment is in the 'RR1' band and the senior unsecured notes are in the 'RR3' band. However, according to Fitch's Country-Specific Treatment of Recovery Ratings Criteria, the Recovery Rating for corporate issuers in Colombia is capped at 'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Sustainable production falls below 30,000 boed; - Reserve life declines to below 7.0 years on a sustained basis; - A significant deterioration of total debt/EBITDA to 3.0x or more. - Dividend distribution or value extraction mechanisms from the company that pressure leverage and FCF. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Net production rising consistently to 75,000 boed on a sustained basis while maintaining 1P reserves reserve life of at least 10 years, consistently; - Maintenance of a conservative financial profile, with gross leverage of 2.5x or below; - Diversification of operations and improvements in realized oil and gas differentials. Liquidity and Debt Structure GeoPark had cash and equivalents of USD275 million and undrawn committed credit lines of USD100 million and USD310 million under the Vitol's prepayment agreement as of March. 31, 2026. This compares well to short-term debt of USD167 million. As of 1Q26, the outstanding amount of the 2027 senior notes was USD96 million and for the 2030 senior notes was USD448 million. Issuer Profile GeoPark Ltd. is a small but growing oil and gas E&P company with producing operations in Colombia, Ecuador, Brazil and recently acquired working interest in four blocks in the prolific Argentinian basin Vaca Muerta. Summary of Financial Adjustments Under the current prepayment conditions, Fitch has treated amounts drawn under GeoPark's prepayment facility with Vitol as debt and would continue to treat any future drawings as debt. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The Climate.VS at 2035 for GeoPark is 60. The results of its Climate.VS screener is elevated for GeoPark. However, this does not affect the current ratings, given the long time horizon over which the transition is expected to occur. Any potential future rating impact may change over time, reflecting developments in Fitch's assessment of these risks. ESG Considerations GeoPark Limited has an ESG Relevance Score of '4' for GHG Emissions & Air Quality due to the growing importance of the continued development and execution of the company's energy-transition strategy, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- GeoPark Limited LT IDR B+ Affirmed B+ LC LT IDR B+ Affirmed B+ senior unsecured LT B+ Affirmed RR4 B+ ============= J A M A I C A ============= JAMAICA: Foreign Investment Falls Sharply Over Several Years ------------------------------------------------------------ RJR News reports that foreign direct investment inflows to Jamaica have fallen sharply over the last several years, despite a significant improvement in the country's debt position. Data released by the Bank of Jamaica show that FDI inflows declined from almost US$900 million in 2017 to US$283.2 million last year, according to RJR News. The figures indicate a steady downward trend over the period, the report notes. Inflows stood at US$775 million in 2018, before falling to US$265.1 million in 2020, the report relays. There was a slight recovery in the following years before rising to US$429 million in 2023, the report recalls. However, the Bank of Jamaica data show renewed weakness thereafter, with inflows slipping to US$283.2 million last year, the report notes. The decline comes even as Jamaica's debt-to-GDP ratio improved significantly, moving from about 121 per cent in earlier years to around 68 per cent more recently, the report adds. 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 =========== VINTE VIVIENDAS: S&P Upgrades ICR to 'BB', Outlook Stable --------------------------------------------------------- S&P Global Ratings raised its long-term global scale issuer credit rating on Mexican homebuilder Vinte Viviendas Integrales S.A.B. de C.V. (Grupo Vinte) to 'BB' from 'BB-'. S&P said, "The stable outlook reflects our expectation that Grupo Vinte will maintain its flexible business model to adapt its product offerings to the evolving housing market conditions in Mexico. We also expect the company to maintain S&P Global Ratings adjusted debt to EBITDA below 3.0x and solid liquidity over the next 12 months. "Our upgrade of Grupo Vinte underscores its successful integration of Javer and its stronger credit metrics. "In our view, Grupo Vinte has improved its competitive position through the successful integration of Servicios Corporativos Javer S.A.B. de C.V. (Javer; not rated), while its adjusted leverage declined to 2.8x at the end of March 2026. "We expect Grupo Vinte to keep solid operating and financial performance over the next 18 months, benefiting from favorable industry fundamentals and prudent capital allocation. "In our view, Grupo Vinte's effective transition into a more integrated and scalable platform following the Javer acquisition positions the company as the leading Mexican homebuilder in terms of units sold." The company is demonstrating high-quality execution, pairing strong top-line growth and stable EBITDA margins with efficient working capital management and a strengthened balance sheet, including S&P Global Ratings adjusted debt to EBITDA at 2.8x as of the end of March 2026. Moreover, with the Derex integration on track and a more favorable cost of debt and debt maturity profile in place, Vinte is effectively derisking its capital structure. S&P said, "Over the next 12 to 18 months, we anticipate Grupo Vinte to deliver robust operating and financial performance. We expect revenue growth above 10%, solid profitability margins, and efficient inventory management that should translate into S&P Global Ratings adjusted debt to EBITDA near 2.7x. While we expect the company prudently use debt and cash, we forecast negative discretionary cash flow (DCF) to debt of approximately 3.0%-4.0% by year-end 2027. "We believe that the company will continue to reinvest in land purchases, infrastructure, and housing development projects to capture growth opportunities in the markets where it operates. At the same time, we foresee increased dividend payments, although highly discretional, leading to negative net cash flows for the next few years." The rating action also reflects Grupo Vinte's strengthened competitive position within Mexico's highly fragmented housing sector. As the largest Mexican homebuilder by units sold (about 14,900 units projected for 2026), Grupo Vinte participates in the country's most dynamic markets. Its operations span 12 states that collectively account for about 60% of Mexico's GDP, 54% of the population, and about 63% of the formal mortgage-backed housing demand, a footprint that S&P expects will support sustained growth over the next 12 to 18 months. Moreover, Grupo Vinte's diversified product portfolio across residential, middle- and low-income segments provides the operational flexibility needed to capture shifting market demand. S&P said, "We expect this proven agility, coupled with favorable structural industry fundamentals--including demographic expansion, housing deficit, steady formal employment growth, rising minimum real wages, and mortgage financing availability from well-capitalized financial institutions and broadly mortgage rates--to drive sustained top-line expansion. Despite a subdued expectation for domestic GDP growth, we anticipate Grupo Vinte will maintain robust operating performance with revenues exceeding 10% growth over the next two years." S&P said, "We project Grupo Vinte will maintain EBITDA margins above 17% over the next 12 months. This is supported by a favorable product mix and effective cost-pass-through strategies to offset moderate input cost inflation. While persistent labor cost increases and localized labor scarcity pose potential headwinds, we expect Grupo Vinte's larger scale of operation to provide a defensive buffer through enhanced procurement leverage and optimized supplier negotiations. "The stable outlook reflects our expectation that Grupo Vinte will maintain its flexible business model to adapt its product offerings to the evolving housing market conditions in Mexico. In our view, this will help the company to deliver revenue growth and adjusted EBITDA margin above 10% and 17%, respectively, over the next 12 months. "Moreover, we expect Grupo Vinte to maintain prudent financial policies toward the use of debt and cash while conducting its operations, translating into adjusted leverage below 3x and slightly negative DCF to debt." S&P could lower the rating in the next 12 months if Grupo Vinte's credit metrics deviate from its expectations, reflecting an unexpected decline in its revenue and EBITDA margin, a higher use of its cash balance, if the company implements a more aggressive debt-financed strategy and higher dividend payouts, or if its liquidity is under pressure. This scenario could occur if: -- Its adjusted debt to EBITDA ratio is above 4x or EBITDA interest coverage is below 3x, consistently; or -- Its sources over uses of liquidity falls below 1.2x over the next 12 months. Although unlikely in the next 12 months, S&P could upgrade Grupo Vinte if it continues to strength its business and credit metrics. An upgrade could occur if the company significantly expands its scale of operations and market share so it is more comparable with global rated peers, including those in the U.S. market, while also posting S&P Global Ratings adjusted debt to EBITDA ratio consistently below 2x. ===================== P U E R T O R I C O ===================== BITCOIN DEPOT: Claims to be Paid from Asset Sale Proceeds --------------------------------------------------------- Bitcoin Depot Inc. filed with the U.S. Bankruptcy Court for the Southern District of Texas a Combined Disclosure Statement and Plan of Liquidation dated June 18, 2026. As of the Petition Date, the Company owned and operated the largest network of Bitcoin ATMs ("BTMs" or "Kiosks") across North America, which enabled customers to buy and sell Bitcoin using cash by providing one-way exchanges of cash-to-Bitcoin. The Company traces its origins to Lux Vending, LLC, a Georgia limited liability company founded by Brandon Mintz and formed on June 7, 2016; Lux was solely owned by BT Assets, Inc., which also served as Lux's sole manager. In July 2021, Lux obtained a controlling interest in BitAccess Inc, a Canadian corporation, via a business combination. In connection with their restructuring and liquidation efforts, the Debtors appointed Alex Holmes and Ivona Smith to the Restructuring Committee and appointed Ms. Smith to the investigation subcommittee thereof ("Investigation Subcommittee"). The Investigation Subcommittee is vested with authority to investigate, evaluate, and advise the Board on whether the Company holds any valuable claims or causes of action, including, without limitation, claims against current or former officers, directors, insiders, or third parties, and to make a final determination of appropriate action with respect to any such claims. The Debtors are conducting a sale process led by Hilco for the sale of substantially all of their Assets. On June 10, 2026, the Bankruptcy Court entered the Bidding Procedures Order, which approved the Bidding Procedures, the form and manner of notice of the sale, any Auction, the Sale Hearing, and the Assumption and Assignment Procedures, and authorized the Debtors to implement and modify the Bidding Procedures, subject to the Bidding Procedures Order. The Bidding Procedures Order also provides that the Debtors will not sell state money-transmitter licenses or Bitcoin ATM customer information without further Court order, except for certain Kutt or ReadyBucks customer information to the extent permitted by applicable law and the Debtors' privacy policies. Class 5 consists of all General Unsecured Claims. Each Holder of an Allowed General Unsecured Claim shall receive on the Effective Date or as soon as reasonably practicable thereafter its Pro Rata share of the Liquidation Trust Interests. Class 5 is Impaired under the Combined Disclosure Statement and Plan. Holders of Claims in Class 5 are entitled to vote to accept or reject the Combined Disclosure Statement and Plan. Class 9 consists of Equity Interests. Holders of Equity Interests will not receive any distribution or property, on account of such Interests, which will be canceled, released, and extinguished as of the Effective Date, and will be of no further force or effect. The Debtors are in the process of selling their Assets pursuant to the Bidding Procedures Order. The Debtors have also sought to abandon certain Assets in connection with the rejection of executory contracts and unexpired leases pursuant to the Rejection Procedures. Unless otherwise specified in this Combined Disclosure Statement and Plan, all Assets not sold pursuant to the Sales Process or abandoned pursuant to the Rejection Procedures Order (other than the Non-Contributed Assets) will be contributed to the Liquidation Trust as part of the Liquidation Trust Assets pursuant to this Combined Disclosure Statement and Plan. The Combined Disclosure Statement and Plan shall constitute a motion to abandon the Non-Contributed Assets. The Confirmation Order shall constitute (i) an authorization of the Bankruptcy Court to abandon the Non-Contributed Assets under section 554 of the Bankruptcy Code and (ii) an order of abandonment of the Non Contributed Assets as of the Effective Date. The Non-Contributed Assets shall not be contributed to the Liquidation Trust, and the Liquidation Trust shall have no ownership interest in the Non Contributed Assets. On or prior to the Effective Date, the Liquidation Trust shall be established in accordance with the Liquidation Trust Agreement for the purpose of liquidating the Liquidation Trust Assets, resolving all Disputed Claims, making all distributions to holders of Allowed Claims in accordance with the terms of this Combined Disclosure Statement and Plan and otherwise implementing this Combined Disclosure Statement and Plan. Except as otherwise provided in the Combined Disclosure Statement and Plan or in any contract, instrument, release, or other agreement or document created pursuant to the Plan or in the Confirmation Order, upon the Effective Date, pursuant to sections 1141(b) and (c) of the Bankruptcy Code, all Liquidation Trust Assets shall immediately, automatically, and irrevocably vest in the Liquidating Trust free and clear of all Claims, Liens, Interests, encumbrances, charges, and other interests, other than the Canadian Charges. All Claims, Liens, Interests, encumbrances, charges, and other interests (other than the Canadian Charges) shall be deemed fully released as of the Effective Date, except as otherwise provided in the Combined Disclosure Statement and Plan or the Confirmation Order. A full-text copy of the Combined Disclosure Statement and Plan dated June 18, 2026 is available at https://urlcurt.com/u?l=gXDXmd from PacerMonitor.com at no charge. Proposed Counsel to the Debtors: VINSON & ELKINS LLP Paul E. Heath, Esq. Sara Zoglman, Esq. 845 Texas Avenue, Suite 4700 Houston, Texas 77002 Tel: 713.758.2222 Fax: 713.758.2346 Email: pheath@velaw.com szoglman@velaw.com David S. Meyer, Esq. Jessica C. Peet, Esq. 1114 Avenue of the Americas, 32nd Floor New York, New York 10036 Tel: 212.237.0000 Fax: 212.237.0100 Email: dmeyer@velaw.com jpeet@velaw.com About Bitcoin Depot Inc. Bitcoin Depot, Inc., is a Delaware corporation with its principal place of business in Georgia that operates the largest cryptocurrency kiosk network in North America, claiming to operate more than 8,400 Bitcoin ATMs across the United States, Canada, and Puerto Rico. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 26-90528) on May 18, 2026. In the petition signed by W. Alexander Holmes, director, the Debtor disclosed up to $50 million in both assets and liabilities. Paul E. Heath, at Vinson & Elkins LLP, represents the Debtor as legal counsel. BITCOIN DEPOT: Overcomes States' Challenge to Bankruptcy Plan Vote ------------------------------------------------------------------ James Nani of Bloomberg Law reports that Bitcoin Depot Inc. cleared an important hurdle in its bankruptcy case after winning permission to solicit votes for its Chapter 11 liquidation plan. Judge Christopher Lopez approved the request during a hearing in Houston, allowing the company to continue pursuing a court-supervised wind-down despite objections from state regulators. The National Association of Attorneys General, representing nine states, argued that creditors lacked sufficient information to make informed decisions about the plan. Regulators pointed to missing financial disclosures and unanswered questions regarding the debtor's financial records and corporate affairs. Although acknowledging the concerns, the court concluded that they did not justify blocking the solicitation effort. Instead, the judge granted conditional approval and left open the possibility of addressing disclosure-related issues later in the bankruptcy process, the report relays. The ruling enables Bitcoin Depot to move ahead with the next phase of its restructuring case. Creditors will now have the opportunity to review the proposed liquidation framework and vote on how the company's remaining assets should be administered and distributed, according to Bloomberg. About Bitcoin Depot Inc. Bitcoin Depot, Inc. is a Delaware corporation with its principal place of business in Georgia that operates the largest cryptocurrency kiosk network in North America, claiming to operate more than 8,400 Bitcoin ATMs across the United States, Canada, and Puerto Rico. The Debtor sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D. Tex. Case No. 26-90528) on May 18, 2026. In the petition signed by W. Alexander Holmes, director, the Debtor disclosed up to $50 million in both assets and liabilities. Paul E. Heath, Esq., at Vinson & Elkins LLP, represent the Debtor as legal counsel. CENTRO DE ENVEJECIENTES: Objections to Government Claims Tossed --------------------------------------------------------------- Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico denied the objections of Centro de Envejecientes Jardin Dorado, Inc. to the Puerto Rico Department of Labor's proofs of claim. The Puerto Rico Department of Labor filed Proof of Claim No. 1 in the amount of $70,670.80 for unemployment insurance with an amount of $31,668.54 classified as a priority, pursuant to 11 U.S.C. Sec. 507(a)(8). The Department of Labor also filed Proof of Claim No. 2 in the amount of $5,949.29 for disability insurance with an amount of $3,632.42 classified as a priority, pursuant to 11 U.S.C. Sec. 507(a)(8). The Debtor filed objections to both claims. In its objection to Claim Number 1, the Debtor challenges the priority status afforded to monies owed for unemployment insurance by alleging that it is not a "tax." This unemployment insurance is a government mandated unemployment insurance program for all employees established by the Act. No. 74 of June 21, 1956. The Debtor does not dispute the amounts asserted in the claim. As to its objection to Claim Number 2, the Debtor challenges the priority status afforded to monies owed for government mandated disability insurance by alleging that it is not a "tax." This disability insurance was established by the Act. No. 139 of June 26, 1968, also known as the Temporary Disability Benefit Act (or "SINOT" by its Spanish acronym). The Debtor does not dispute the amounts asserted in the claim. The Court finds given that both contributions made under the Puerto Rico Employment Act and the Temporary Disability Benefit Act are taxes on wages, pursuant to 29 L.P.R.A, Sec. 708(b) and 11 L.P.R.A. Sec. 208, respectively, they qualify for priority status under Sec. 507(a)(8)(D) of the Bankruptcy Code. Consequently, objections to Proof of Claim Numbers 1 and 2 are denied. A copy of the Court's Opinion and Order dated June 22, 2026, is available at http://urlcurt.com/u?l=NpJjZWfrom PacerMonitor.com. About Centro de Envejecientes Jardin Dorado, Inc. Centro de Envejecientes Jardin Dorado, Inc. filed its voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 25-05865) on December 29, 2025, listing $500,001 to $1 million in assets and $100,001 to $500,000 in liabilities. Jesus E. Batista Sanchez, Esq. at The Batista Law Group, Psc serves as the Debtor's counsel. PUERTO RICO: Oversight Board Pitches $3B Bond Settlement -------------------------------------------------------- Emlyn Cameron at law360.com reports that Puerto Rico's Financial Oversight and Management Board pitched a $3 billion settlement package to bondholders of the Puerto Rico Electric Power Authority, with an eye to finishing the power authority's bankruptcy, according to a news release. PREPA is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies; Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. PUERTO RICO: Personal-Capacity Claims Not Discharged by Plan ------------------------------------------------------------ In the appeal styled JONATHAN HERNÁNDEZ ZORRILLA; YADIRA CARRASQUILLO GONZALEZ, Movants, Appellees, v. THE FINANCIAL OVERSIGHT AND MANAGEMENT BOARD FOR PUERTO RICO, as Representative for the Commonwealth of Puerto Rico, Debtor, Appellant, Judges William J. Kayatta, Jr., Jeffrey R. Howard and Lara E. Montecalvo of the U.S. Court of Appeals for the First Circuit affirm the Title III court's determination that the confirmed Commonwealth Plan does not release personal-capacity claims against certain officials and employees. Congress enacted PROMESA (short for the Puerto Rico Oversight, Management, and Economic Stability Act) in 2016 in response to the "fiscal emergency" in Puerto Rico. PROMESA seeks to facilitate restructuring of the Commonwealth of Puerto Rico's (the "Commonwealth") public debt, ensure its future access to capital markets, and provide for its long-term economic stability. To those ends, PROMESA created a modified version of the municipal bankruptcy code in Title III of its provisions, established the Financial Oversight and Management Board (the "Board"), and authorized the Board to place the Commonwealth and its instrumentalities into bankruptcy proceedings and to develop a plan of adjustment for restructuring the Commonwealth's debts. Beginning in May 2017, the Board commenced Title III restructuring cases on behalf of the Commonwealth and several of its instrumentalities. Upon initiation of those restructuring cases, certain claims against the Commonwealth and its relevant instrumentalities were automatically stayed pending resolution of those proceedings. The events giving rise to appellees' claims occurred a year later, while those restructuring cases were making their way through the Title III court. According to their complaints, on May 1, 2018, appellees Hernandez Zorrilla and Carrasquillo Gonzalez attended a demonstration in San Juan, Puerto Rico. There, they allege, members of the Puerto Rico Police Bureau (PRPB) used "physical aggression, threats and assault" against them, including tear gas and, in the case of Hernandez Zorrilla, rubber bullets or "similar ammunition." In April 2019, appellees each filed suit in the U.S. District Court for the District of Puerto Rico, alleging that the PRPB officers' conduct and certain policies of the PRPB violated their rights under the First, Fourth, and Fourteenth Amendments to the U.S. Constitution and various sections of the Puerto Rico Constitution and Puerto Rico Civil Code. The suits named as defendants the then-Governor of Puerto Rico and other officials and employees of the Commonwealth, including employees of the PRPB. In addition to seeking declaratory and injunctive relief, the suits sought monetary damages from defendants in their personal capacities. The suits were consolidated in 2021. According to the Board, the Commonwealth assumed financial responsibility for defending these suits under a Commonwealth law known as Law 9. Law 9 allows certain employees and officials sued in their personal capacities to ask the Commonwealth to provide them with legal representation, and to subsequently assume the payment of any judgment entered against them. The Board concedes that, subject to limited exceptions, the decisions to defend and to indemnify under Law 9 are both discretionary. The Commonwealth's agreement to defend an employee or official does not necessarily mean it will also indemnify that employee or official; rather, the Commonwealth makes its indemnification decision only after considering the findings of the court or which arise from the evidence presented in the case. Back in the Title III court, in January 2022 -- after years of mediation and negotiation -- the court confirmed a Plan of Adjustment for the Commonwealth and two of its instrumentalities (the "Commonwealth Plan" or the "Plan"). The confirmed Commonwealth Plan went into effect on March 15, 2022, discharging certain claims against the Commonwealth and enjoining the pursuit of discharged claims. The district court stayed appellees' case pending a determination by the Title III court as to whether the confirmed Commonwealth Plan discharged their claims and thus left them subject to the injunction barring the pursuit of discharged claims. On September 30, 2025, the Title III court issued an Opinion and Order concluding that appellees' personal-capacity claims against Commonwealth officials and employees are not barred by the confirmed Commonwealth Plan and that appellees were therefore free to proceed with their suit. The Board timely appealed. The issue raised in this appeal is whether that discharge and injunction apply to claims against officers or employees of the Commonwealth in their personal capacities. The Board asserts that the Title III court erred in finding that the confirmed Commonwealth Plan does not discharge or call for enjoining proceedings against Commonwealth employees or officials in their personal capacities. According to the Board, this was error because, under this court's decision in Victor J. Salgado & Associates Inc. v. Cestero-Lopategui, 34 F.4th 49 (1st Cir. 2022), the personal-capacity claims are "indirect claims" against the Commonwealth. In the Board's view, the only relevant question is whether these personal-capacity claims function as claims against the Commonwealth. If they do, the Board argues, then they have been discharged. The panel disagrees. According to the panel, "The question is not simply whether these suits press claims against the Commonwealth. The question is whether these particular claims fall within the subset of claims discharged by the confirmed Commonwealth Plan." The panel finds even assuming appellees' suits do function as indirect claims against the Commonwealth, these suits -- as maintained against officers or employees in their personal capacities -- are not within that group of claims that the Commonwealth Plan discharges. Since the parties and the Title III court all agree that the confirmed Commonwealth Plan does not contain non-consensual third-party releases, that Plan cannot release these personal-capacity claims against Commonwealth employees and officials. The panel agrees with the Title III court that the Commonwealth's discharge does not apply to personal-capacity claims and that such claims are therefore not subject to any injunction impeding their prosecution. A copy of the Court's Opinion is available at http://urlcurt.com/u?l=96XQPP About the Commonwealth of Puerto Rico; Puerto Rico Electric Power Authority (PREPA) PREPA is a self-governing commonwealth in association with the United States. The chief of state is the President of the United States of America. The head of government is an elected Governor. There are two legislative chambers: the House of Representatives, 51 seats, and the Senate, 27 seats. The governor-elect is Ricardo Antonio Rossello Nevares, the son of former governor Pedro Rossello. In 2016, the U.S. Congress passed PROMESA, which, among other things, created the Financial Oversight and Management Board and imposed an automatic stay on creditor lawsuits against the government, which expired May 1, 2017. The members of the oversight board are: (i) Andrew G. Biggs, (ii) Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J. Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and (vii) David A. Skeel Jr. On May 3, 2017, the Commonwealth of Puerto Rico filed a petition for relief under Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA). The case is pending in the United States District Court for the District of Puerto Rico under case number 17-cv-01578. A copy of Puerto Rico PROMESA petition is available at http://bankrupt.com/misc/1701578-00001.pdf On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation (COFINA) commenced a case under Title III of PROMESA (D.P.R. Case No. 17-01599). Joint administration has been sought for the Title III cases. On May 21, 2017, two more agencies; Employees Retirement System of the Government of the Commonwealth of Puerto Rico and Puerto Rico Highways and Transportation Authority (Case Nos. 17-01685 and 17-01686) commenced Title III cases. U.S. Chief Justice John Roberts named U.S. District Judge Laura Taylor Swain to preside over the Title III cases. The Oversight Board has hired as advisors, Proskauer Rose LLP and Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic consultant, Citigroup Global Markets as municipal investment banker, and Ernst & Young, as financial advisor. Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M. Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq., at O'Neill & Borges LLC are onboard as attorneys. Prime Clerk LLC is the claims and noticing agent. Prime Clerk maintains the case Web site https://cases.primeclerk.com/puertorico Jones Day is serving as counsel to certain ERS bondholders. Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General Obligation Bondholders. ********* 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 * * *