TCRLA_Public/110826.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, August 26, 2011, Vol. 12, No. 169

                            Headlines



A R G E N T I N A

BANCO HIPOTECARIO: S&P Affirms 'B' Counterparty Credit Rating


B E R M U D A

BLUE SEAS: Creditors' Proofs of Debt Due September 2
BLUE SEAS: Members' Final Meeting Set for September 28
BOSTOCK MEWS: Court to Hear Wind-Up Petition on September 2
BUTTERFIELD LIQUID: Creditors' Proofs of Debt Due August 31
BUTTERFIELD LIQUID: Members' Final Meeting Set for September 22

DIGICEL GROUP: Government to Update Nation on Claro Merger
ITG JAPAN: Members' Final Meeting Set for September 23
STEWARDSHIP CREDIT: To Declare Second Interim Dividend on Sept. 30
TAIWAN CATALYST: Creditors' Proofs of Debt Due September 2
TAIWAN CATALYST: Members' Final Meeting Set for September 22


C A Y M A N   I S L A N D S

HALBERDIER ALIUS: Shareholders' Final Meeting Set for September 2
HALBERDIER ALIUS: Shareholders' Final Meeting Set for September 2


E L   S A L V A D O R

TELEMOVIL EL: Fitch Affirms Rating on US$450MM Sr. Notes at 'BB'


M E X I C O

MAXCOM TELECOMUNICACIONES: S&P Cuts LT Corp. Credit Rating to CCC+


P U E R T O   R I C O

CARIBE MEDIA: Files Restructuring Plan Giving Lenders Equity
MADELINE P CORP: Case Summary & 10 Largest Unsecured Creditors
R&G FINANCIAL: Posts US$23,737 Net Loss in July




                            - - - - -


=================
A R G E N T I N A
=================


BANCO HIPOTECARIO: S&P Affirms 'B' Counterparty Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' ratings,
including the counterparty credit rating, on Banco Hipotecario
S.A. The outlook remains stable.

"The ratings on Banco Hipotecario reflect the risk inherent in
operating in Argentina," said Standard & Poor's credit analyst
Cynthia Cohenfreue.

"They also incorporate the challenges the bank faces in increasing
its market position, and its weak operating efficiency."

"However, Banco Hipotecario's strong capitalization and adequate
liquidity mitigate these weaknesses, in our view," S&P said.

"In accordance with our criteria, we classify Banco Hipotecario as
a government-related entity (GRE) with a low likelihood of
extraordinary government support," S&P related. S&P's assessment
of Banco Hipotecario is based on:

    Limited importance because of the GRE's role as a profit-
    seeking enterprise in a competitive environment. Banco
    Hipotecario is one among other GREs, and/or its activity could
    be undertaken by a private-sector entity or another GRE if it
    ceased to exist.

    A limited link with the government of the Republic of
    Argentina (B/Stable/B) because the government, though a
    majority holder of equity, is a minority in voting rights and
    doesn't interfere more than other minority shareholders do in
    the GRE's strategic decisions and operations.

    "Amid uncertainties about the Argentine economy, we believe
    that the close linkage between the credit quality of Argentina
    and that of the country's financial system directly affect the
    bank's business and prospects, constraining the rating," S&P
    related.

     The stable outlook reflects that on Argentina.


=============
B E R M U D A
=============


BLUE SEAS: Creditors' Proofs of Debt Due September 2
----------------------------------------------------
The creditors of Blue Seas Shipping Limited are required to file
their proofs of debt by September 2, 2011, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on August 11, 2011.

The company's liquidator is:

         Jennifer M. Kelly
         Par La Ville Place, 3rd Floor
         14 Par La Ville Road
         Hamilton
         Bermuda


BLUE SEAS: Members' Final Meeting Set for September 28
------------------------------------------------------
The members of Blue Seas Shipping Limited will hold their final
meeting on September 28, 2011, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on August 11, 2011.

The company's liquidator is:

         Jennifer M. Kelly
         Par La Ville Place, 3rd Floor
         14 Par La Ville Road
         Hamilton
         Bermuda


BOSTOCK MEWS: Court to Hear Wind-Up Petition on September 2
-----------------------------------------------------------
A petition to wind up the operations of Bostock Mews Limited will
be heard by the Supreme Court of Bermuda on September 2, 2011, at
9:30 a.m.

HSBC Bank Bermuda Limited filed the petition against the company
on August 1, 2011.


BUTTERFIELD LIQUID: Creditors' Proofs of Debt Due August 31
-----------------------------------------------------------
The creditors of Butterfield Liquid Reserve Fund Limited are
required to file their proofs of debt by August 31, 2011, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on August 10, 2011.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, 2 Church Street
         Hamilton HM 11
         Bermuda


BUTTERFIELD LIQUID: Members' Final Meeting Set for September 22
---------------------------------------------------------------
The members of Butterfield Liquid Reserve Fund Limited will hold
their final meeting on September 22, 2011, at 9:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company commenced wind-up proceedings on August 10, 2011.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, 2 Church Street
         Hamilton HM 11
         Bermuda


DIGICEL GROUP: Government to Update Nation on Claro Merger
----------------------------------------------------------
RJR News reports that the Jamaican government will provide an
update on the merger between Digicel Group Limited and Claro.

Daryl Vaz, the Jamaican Minister with responsibility for
Information, told the news agency that the latest on the proposed
deal will be outlined during the weekly post Cabinet press
briefing.

As reported in the Troubled Company Reporter-Latin America on
Aug. 24, 2011, RJR News said Claro dealers are contemplating legal
action after complaining that they have been left in the dark on
the status of the proposed Claro/Digicel Group merger, which was
initially expected to be completed by the end of June. The dealers
are upset that there has been no formal response to a request sent
to Daryl Vaz, the Minister responsible for Information, seeking a
meeting to discuss their concerns about the merger, according to
RJR News.  The report related that Claro dealers claimed they were
racking up debts as they had received little or no goods from the
company to sell and were uncertain about how they would be
affected if the merger with Digicel Group went through.

                        About Digicel Group

Digicel Group Limited -- http://www.digicelgroup.com/-- is
renowned for competitive rates, unbeatable coverage, superior
customer care, a wide variety of products and services and state-
of-the-art handsets.  By offering innovative wireless services and
community support, Digicel has become a leading brand across its
31 markets worldwide.

Digicel is incorporated in Bermuda and now has operations in 31
markets worldwide.  Its Caribbean and Central American markets
comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda,
Bonaire, the British Virgin Islands, the Cayman Islands, Curacao,
Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana,
Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis,
St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad &
Tobago and Turks & Caicos.  The Caribbean company also has
coverage in St. Martin and St. Barts.  Digicel Pacific comprises
Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu.

                         *     *     *

As of Jan. 14, 2010, the company continues to carry Moody's "Caa1"
senior unsecured debt rating.


ITG JAPAN: Members' Final Meeting Set for September 23
------------------------------------------------------
The members of ITG Japan Ltd. will hold their final meeting on
September 23, 2011, at 10:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on August 15, 2011.

Nigel J.S. Chatterjee is the company's liquidator.


STEWARDSHIP CREDIT: To Declare Second Interim Dividend on Sept. 30
------------------------------------------------------------------
Stewardship Credit Arbitrage Fund, Ltd. intends to declare second
interim dividend on September 30, 2011.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

         Nigel Chatterjee
         c/o Pricewaterhouse Coopers
         P.O. Box 1171 Hamilton
         HM EX Bermuda


TAIWAN CATALYST: Creditors' Proofs of Debt Due September 2
----------------------------------------------------------
The creditors of Taiwan Catalyst GP Limited are required to file
their proofs of debt by September 2, 2011, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on August 15, 2011.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, 2 Church Street
         Hamilton HM 11
         Bermuda


TAIWAN CATALYST: Members' Final Meeting Set for September 22
------------------------------------------------------------
The members of Taiwan Catalyst GP Limited will hold their final
meeting on September 22, 2011, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company commenced wind-up proceedings on August 15, 2011.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, 2 Church Street
         Hamilton HM 11
         Bermuda


===========================
C A Y M A N   I S L A N D S
===========================


HALBERDIER ALIUS: Shareholders' Final Meeting Set for September 2
-----------------------------------------------------------------
The shareholders of Halberdier Alius Portfolio will hold their
final meeting on September 2, 2011, at 10:45 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Walkers Corporate Services Limited
         Walker House
         87 Mary Street, George Town
         Grand Cayman KY1-9002
         Cayman Islands


HALBERDIER ALIUS: Shareholders' Final Meeting Set for September 2
-----------------------------------------------------------------
The shareholders of Halberdier Alius Fund will hold their final
meeting on September 2, 2011, at 11:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Walkers Corporate Services Limited
         Walker House
         87 Mary Street, George Town
         Grand Cayman KY1-9002
         Cayman Islands


=====================
E L   S A L V A D O R
=====================


TELEMOVIL EL: Fitch Affirms Rating on US$450MM Sr. Notes at 'BB'
----------------------------------------------------------------
Fitch Ratings has affirmed the local and foreign currency issuer
default ratings (IDRs) of Telemovil El Salvador, S.A. and
Telemovil Finance Co. Ltd (TF), including the US$450 million
senior notes due 2017 issued by TF and guaranteed by Telemovil at
'BB'.  The Rating Outlook is Stable.

Telemovil's ratings reflect diversified service offering and
platforms, leading positions in mobile and pay television services
in El Salvador, strong brand recognition, extensive network
coverage, sound financial profile and positive pre-dividend free
cash flow.  Credit quality is tempered by intense competition,
limited geographic diversification and the dependence of the
economy on remittances, which affects demand for
telecommunications services.  The ratings factor in the
relationship with parent company Millicom International Cellular
(Millicom), which fully owns and runs Telemovil and benefit from
synergies related to the larger scale of the parent, expertise in
management but also considers the payment of dividends, loans to
affiliates and Millicom's financial position.  For the 12 months
ended June 30, 2011 Millicom reported approximately US$4.2 billion
in revenues, US$1.8 billion in EBITDA, funds flow from operations
of US$1.3 billion, on balance sheet indebtedness of US$2.3 billion
and cash balances of US$1.0 billion.

Telemovil's mobile operations have performed below expectations;
however operating trends seem to be stabilizing.  A tough
competitive environment has pressured mobile ARPUs during the past
twelve months. Despite the competitive issues, Telemovil has
retain is leading market share at approximately 44% of total
users.  Fitch views the transaction between America Movil and
Digicel, where as part of the transaction America Movil will
receive Digicel's operation in El Salvador, should result in a
more balanced competitive environment in the mobile segment, as
three players will remain.  Once the transaction is closed America
Movil's Claro will increase its market share to approximately 38%
and Telefonica will remain close to 18%.

In Fitch's view, Telemovil's strategy of offering bundled services
along with its strategy of focusing on offering differentiated
mobile services should allow the company to maintain its leading
market position in the medium term.  The acquisitions of Millicom
Cable (formerly AMNET) and Navega took more time that originally
anticipated due to delays from local authorities. Millicom Cable
started being consolidated into Telemovil's financial statements
since May of 2011, while Navega is expected to clear
authorizations and start consolidating into Telemovil by the
fourth quarter of 2011.  Despite this delay, the strategy and
operations of these two companies are managed by Telemovil
resulting in the offering of multiples services to customers.  The
consolidation of these companies does not affect the integration
of operations and service offering to customers as they are
already bundling services. Mobile operations should remain as the
biggest cash flow generator.

Fitch believes the competitive position of Telemovil will improve
due to the offering of bundles with multiple services and expense
synergies. However, currently the customers with quadruple play
bundles are very limited.  Millicom Cable is the leading CATV
provider in El Salvador with approximately 316.6 thousand revenue
generating units (RGUs) as of June 30, 2011.  Millicom Cable
network has close to 80% of bidirectional capability and covers
approximately 600,000 homes passed.  Navega provides
communications services to enterprises and carriers that require
broad range of services that demand higher bandwidth.

Considering Millicom Cable and Navega and despite posting weaker
results in the mobile segment, Telemovil has a sound financial
profile. On a proforma basis, total debt to EBITDA and net debt to
EBITDA should be close to 2.3 times(x) and 1.5x, respectively.
Assuming the loan to the Colombian operation (described below) is
collected and expected dividend payments during the year, proforma
net debt to EBITDA should approximate to 1.0x. Going forward,
Fitch expects that mobile operations should continue stabilizing
resulting in stable credit metrics.  Excess cash flow from
operations after capital expenditures is expected to be used for
dividend payments.

Telemovil has a strong liquidity position. As of June 30, 2011
total debt was composed of the US$450 million senior notes due
2017 issued by TF and had cash balances of US$155 million of which
approximately US$55 million should be used for a dividend payment
during the present year.  In addition in 2006, the company lent
funds to a related party that owns 50% plus one share of Colombia
Movil.  The amount outstanding of this loan is US$155 million as
of the end to the second quarter of 2011 and is due in October of
2011.  It is not clear if this loan will be refinanced to a
maturity that is closer to the maturity of the 2017 senior notes;
but in the event that Telemovil receives the payment approximately
US$120 million should remain in cash at Telemovil due to the
indenture of the senior notes, further supporting liquidity.


===========
M E X I C O
===========


MAXCOM TELECOMUNICACIONES: S&P Cuts LT Corp. Credit Rating to CCC+
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit and senior secured ratings on Mexican telecommunications
provider Maxcom Telecomunicaciones S.A.B. de C.V. to 'CCC+' from
'B-'.  The outlook is negative.  The '3' recovery rating on the
company's senior secured debt is unchanged.

"The downgrade reflects Maxcom's lower revenue generation,
continued negative free operating cash flow, and a cash position
that restricts the company's financial flexibility," said Standard
& Poor's credit analyst Marcela Duenas.  "Furthermore, the
downgrade reflects our ongoing concerns regarding Maxcom's limited
liquidity, particularly its ability to refinance its bond maturity
in 2014."

"Our rating reflects the company's highly leveraged financial
profile and its vulnerable business profile; declining revenues
and industry position due to the strong competition from land
line, mobile telephony, and cable operators; and negative FOCF due
to a capital-intensive industry.  In addition, frequent management
changes continue to be a rating factor," S&P said.

Maxcom's telecom service offerings, including quadruple-play
bundled packages at very competitive prices, and expertise in
managing customer credit partially mitigate the weaknesses.


=====================
P U E R T O   R I C O
=====================


CARIBE MEDIA: Files Restructuring Plan Giving Lenders Equity
------------------------------------------------------------
Michael Bathon at Bloomberg News reports that Caribe Media Inc.
filed a reorganization plan that would give control of the company
to its lenders.  Senior secured lenders, owed about US$127
million, would get all of the reorganized company's equity and
share in a US$55 million exit loan, for a projected recovery of
79% to 95%, according to the plan.  Subordinated noteholders owed
about US$58.5 million won't receive any recovery under the plan.

                         About Caribe Media

Caribe Media Inc. owns publication rights for certain print and
Internet directories in the Dominican Republic and Puerto Rico.
Caribe Media owns 60% of Axesa Servicios de Informacion, S. en C.,
a Yellow Pages publisher in Puerto Rico and the official publisher
of all telephone directories for Puerto Rico Telephone Company,
Inc., the largest local exchange carrier in Puerto Rico, and
US$100% of Caribe Servicios de Informacion Dominicana, S.A., the
sole directory publisher in the Dominican Republic with the
exclusive right to publish under the brand of Codetel, the largest
telecom operator in the Dominican Republic.  Caribe Media is
wholly owned by CII Acquisition Holding Inc.  They are affiliates
of Local Insight Media Holdings, Inc.

Caribe Media and CII filed for Chapter 11 bankruptcy protection
(Bankr. D. Del. Case Nos. 11-11387 and 11-11388) on May 3, 2011.
Caribe Media is being represented by lawyers at Kirkland & Ellis
LLP and Pachulski Stang Ziehl & Jones LLP as bankruptcy counsel.
Lawyers at Curtis, Mallet-Prevost, Colt & Mosle LLP serve as
conflicts counsel.

Local Insight Media is also a debtor in its own Chapter 11 pending
in Delaware.  Local Insight Media filed in 2010.  It is also being
represented by lawyers at Kirkland and Pachulski.


MADELINE P CORP: Case Summary & 10 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Madeline P. Corp.
        Paseo San Juan
        G-22 Calle Adoquines
        San Juan, PR 00926

Bankruptcy Case No.: 11-07058

Chapter 11 Petition Date: August 20, 2011

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Debtor's Counsel: Wigberto Lugo Mender, Esq.
                  LUGO MENDER & CO
                  Centro Internacional De Mercadeo
                  Carr 165 Torre 1, Suite 501
                  Guaynabo, PR 00968
                  Tel: (787) 707-0404
                  E-mail: wlugo@lugomender.com

Estimated Assets: US$50,001 to US$100,000

Estimated Debts: US$1,000,001 to US$10,000,000

Debtor-affiliate filing for Chapter 11:

                                         Petition
  Debtor                Case No.           Date
  ------                --------           ----
Ramoni Inc.             11-07059        08/20/2011

  Assets: US$1,000,001 to US$10,000,000
  Debts: US$1,000,001 to US$10,000,000

The petitions were signed by Ramon Portela-Fernandez, president.

A list of Madeline P. Corp.'s 10 largest unsecured creditors filed
together with the petition is available for free at
http://bankrupt.com/misc/prb11-07058.pdf

A list of Ramoni's 11 largest unsecured creditors filed together
with the petition is available for free at
http://bankrupt.com/misc/prb11-07059.pdf


R&G FINANCIAL: Posts US$23,737 Net Loss in July
-----------------------------------------------
BankruptcyData.com reports that R&G Financial Corporation filed
with the U.S. Bankruptcy Court a monthly operating report for July
2011.  For the period, the Company reported a net loss of
US$23,737 on zero revenue.

                       About R&G Financial

San Juan, Puerto Rico-based R&G Financial Corporation was the
direct parent of R-G Premier Bank of Puerto Rico, a state-
chartered nonmember bank, through which RGFC primarily conducted
its business.  The Company filed for Chapter 11 bankruptcy
protection (Bankr. D. P.R. Case No. 10-04124) on May 14, 2010.
Brent R. McIlwain, Esq., Robert W. Jones, Esq., Esq., at Patton
Boggs LLP, in Dallas; and Jorge I. Peirats, Esq., at Pietrantoni,
Mendez & Alvarez, in Hato Rey, P.R., serve as the Debtor's
bankruptcy counsel.  The Debtor disclosed US$40,213,356 in assets
and US$420,687,694 in debts as of the Petition Date.


                            ***********


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com


                            ***********


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., Frederick,
Maryland USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Psyche A. Castillon, Ivy B.
Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors.

Copyright 2011.  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$625 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 Christopher Beard at 240/629-3300.


                   * * * End of Transmission * * *