TCRLA_Public/120719.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

            Thursday, July 19, 2012, Vol. 13, No. 143


                            Headlines



B A R B A D O S

* BARBADOS: S&P Lowers Sovereign Credit Ratings to 'BB+/B'


C A Y M A N   I S L A N D S

BLACK DIAMOND: Shareholders' Final Meeting Set for Aug. 30
BLACK DIAMOND FUNDING: Shareholders' Meeting Set for Aug. 30
CAPITAL W FUND: Shareholders' Final Meeting Set for Aug. 3
CAPITAL W FUND SPC: Shareholders' Final Meeting Set for Aug. 3
CB INVESTMENTS: Shareholder to Receive Wind-Up Report on Aug. 10

CMT CHINAVALUE: Shareholders' Final Meeting Set for Aug. 3
DB XYLOPHONE: Shareholder to Receive Wind-Up Report on Aug. 3
FFA YACHTING: Members' Final Meeting Set for July 31
ISATIS INVESTMENTS: Shareholders' Final Meeting Set for Aug. 6
KCM GLOBAL: Shareholder to Receive Wind-Up Report on Aug. 16

MA MILLGATE: Shareholders' Final Meeting Set for Aug. 30
MITSUI QATARGAS: Shareholders' Final Meeting Set for July 24
PARSENN PROPERTIES: Members' Final Meeting Set for July 31
PPT (CAYMAN): Members' Final Meeting Set for July 31
WMT HOSPITALITY: Shareholders' Final Meeting Set for Aug. 30


J A M A I C A

DIGICEL GROUP: Judge Explains Refusal to Firm's Request
JAMALCO: Alcoa Incurs US$2 Million Loss in Second Quarter


M E X I C O

GRUPO ELEKTRA: Fitch Affirms 'BB' Rating on $550MM Senior Notes
GRUPO POSADAS: S&P Puts 'CCC+' CCR on Watch Positive
GRUPO TMM: Salles Sainz Raises Going Concern Doubt
VITRO SAB: Order Blocking Bondholders Extended During Appeal
* MUNICIPALITY OF CULIACAN: Moody's Assigns 'Ba1' Loan Rating


                            - - - - -



===============
B A R B A D O S
===============


* BARBADOS: S&P Lowers Sovereign Credit Ratings to 'BB+/B'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term foreign-
and local-currency sovereign credit ratings on Barbados to 'BB+'
from 'BBB-'. Standard & Poor's also said that it lowered the
short-term ratings to 'B' from 'A-3'. The outlook is stable.

"In addition, Standard & Poor's assigned to Barbados's foreign-
currency debt a recovery rating of '3', and it has revised the
transfer and convertibility assessment to 'BBB-' from 'BBB'," S&P
said.

"The downgrade reflects our opinion that Barbados's economic
fundamentals continue to weaken," explained Standard & Poor's
credit analyst Olga Kalinina.

"We believe this weakening stems, in part, from rising competitive
challenges and other structural factors that the government can
address only in the long term."

"In the short to medium terms, the difficult external environment
will hamper the economic and investment outlooks. The resulting
lower economic growth will hurt Barbados's fiscal and external
accounts and will likely lead to further debt accumulation.
Moreover, in our opinion, despite the government's focused efforts
to bring down fiscal deficits, the fiscal stance remains
qualitatively weak, as rising debt, off-budget spending, and
contingent liabilities demonstrate," S&P said.

"Barbados is slowly recovering from the severe impact that the
global downturn had on the country's narrow and open economy.
Results for the first half of 2012 attest to some mild pick-up in
economic activity, and Standard & Poor's projects real GDP per
capita growth of 0.3% for 2012, up marginally from 2011 but
substantially below the growth rates before the 2009 downturn. We
expect slightly higher per capita growth of 0.6% in 2013,
supported by tourism and construction (driven by the private and
public sectors), subsequently moving to about 2%," S&P said.

"With slow recovery, unemployment will likely remain high, peaking
at 11.8% in 2012. The main pillars of the Barbadian economy (the
tourism and financial sectors) are affected by the persistently
difficult external environment. In tourism, we see continued
softness in Barbados's main markets: the U.S. and the U.K.
Nevertheless, some foreign investment in the sector continues, and
new sites are being developed. In international business and
financial services, competition is rising, especially from
jurisdictions that recently secured tax agreements with Canada,"
S&P said.

"In light of a weak economic performance and outlook, the
government is focusing on more effective fiscal management. Its
efforts are most pronounced on the revenue side. The measures
included raising the value-added tax, eliminating tax-free
allowances for travel and entertainment, increasing the gasoline
excise tax, and hiking other fees. On the spending side, wage
growth in nominal terms has been minimal (and negative in real
terms), and capital spending has been cut. However, efforts in
reducing high transfers and subsidies (especially to statutory
bodies) have been less successful, and this financing was shifted
(in 2011) to the National Insurance Scheme (NIS). The change in
net general government debt (which includes off-budget spending by
NIS) implies a higher deficit of about 7.5% of GDP last year (a
deterioration from 5.8% in 2010), and it is forecasted to come
down to 4% of GDP this year and 2.9% in 2013," S&P said.

"Net general government debt (excluding NIS holding of government
paper, NIS liquid assets, and government liquid assets) is
forecasted to rise to 62% of GDP in 2012, up from 60% in 2011 and
55% in 2010. Assuming a gradual lowering of fiscal deficits, net
general government debt is projected to come down to 58% of GDP by
2015. This trajectory is prone to many downside risks," S&P said.

"Several factors continue to support the ratings on Barbados.
These include the strength of the social contract among the
government, trade unions, and the private sector; political
stability; strong institutions; and the government's ongoing
commitment to reduce fiscal deficits and closely monitor the
fiscal and external risks," S&P said.

"The recovery rating on Barbados's foreign-currency debt is '3',
indicating our view that post-default recovery would likely be
approximately 50%-70%. The recovery analysis assumes a default
stemming from rising difficulties in accessing fiscal and external
funding at a reasonable cost, possibly including a sharp
adjustment in the country's exchange rate," S&P said.

"The stable outlook hinges on our expectations that gradual fiscal
adjustment will continue, stabilizing the government debt burden,
and that foreign direct investment will fund at least 60% of the
current account deficit. Erosion of the external or government
balance sheet could lead to pressure on the currency peg," Ms.
Kalinina said. "If this were to occur, we would consider lowering
our ratings on Barbados again. Conversely, we would likely raise
the ratings if the country's economic prospects strengthen in a
sustainable manner or if fiscal accounts show structural
improvement."



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


BLACK DIAMOND: Shareholders' Final Meeting Set for Aug. 30
----------------------------------------------------------
The shareholders of Black Diamond Capital I, Ltd. will hold their
final meeting on Aug. 30, 2012, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         David Dyer
         Telephone: (345)949-8244
         Facsimile: (345)949-5223
         P.O. Box 1984 Grand Cayman KY1-1104
         Cayman Islands


BLACK DIAMOND FUNDING: Shareholders' Meeting Set for Aug. 30
------------------------------------------------------------
The shareholders of Black Diamond Capital Funding I, Ltd. will
hold their final meeting on Aug. 30, 2012, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         David Dyer
         Telephone: (345)949-8244
         Facsimile: (345)949-5223
         P.O. Box 1984 Grand Cayman KY1-1104
         Cayman Islands


CAPITAL W FUND: Shareholders' Final Meeting Set for Aug. 3
----------------------------------------------------------
The shareholders of Capital W Fund Limited will hold their final
meeting on Aug. 3, 2012, at 1:45 p.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
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


CAPITAL W FUND SPC: Shareholders' Final Meeting Set for Aug. 3
--------------------------------------------------------------
The shareholders of Capital W Fund SPC will hold their final
meeting on Aug. 3, 2012, at 11:30 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
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


CB INVESTMENTS: Shareholder to Receive Wind-Up Report on Aug. 10
----------------------------------------------------------------
The shareholder of CB Investments Ltd. will receive on Aug. 10,
2012, at 9:00 a.m., the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

         Linburgh Martin
         Intertrust (Cayman) Limited
         Harbour Place, Fourth Floor
         P.O. Box 1034 Grand Cayman KYI-1102
         Cayman Islands


CMT CHINAVALUE: Shareholders' Final Meeting Set for Aug. 3
----------------------------------------------------------
The shareholders of CMT Chinavalue Capital Partners Limited will
hold their final meeting on Aug. 3, 2012, at 11:45 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
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


DB XYLOPHONE: Shareholder to Receive Wind-Up Report on Aug. 3
-------------------------------------------------------------
The shareholder of DB Xylophone Holdings Limited will receive on
Aug. 3, 2012, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

         Jeremy Simon Spratt
         c/o Jacqueline Edwards
         Telephone: +44 (0) 20 7311 8563
         Facsimile: +44 (0) 20 7694 3533
         KPMG LLP
         8 Salisbury Square
         London


FFA YACHTING: Members' Final Meeting Set for July 31
----------------------------------------------------
The members of FFA Yachting Ltd. will hold their final meeting on
July 31, 2012, at 12:00 noon, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         MBT Trustees Ltd.
         Telephone: 945-8859
         Facsimile: 949-9793
         P.O. Box 30622 Grand Cayman KY1-1203
         Cayman Islands


ISATIS INVESTMENTS: Shareholders' Final Meeting Set for Aug. 6
--------------------------------------------------------------
The shareholders of Isatis Investments Limited will hold their
final meeting on Aug. 6, 2012, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Raymond E. Whittaker
         FCM Ltd.
         Telephone: 345-946-5125
         Facsimile: 345-946-5126
         PO Box 1982 Grand Cayman KY-1104
         Cayman Islands


KCM GLOBAL: Shareholder to Receive Wind-Up Report on Aug. 16
------------------------------------------------------------
The shareholder of KCM Global Credit Opportunities Master Fund
Ltd. will receive on Aug. 16, 2012, at 9:30 a.m., the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         Ogier
         c/o Kimberly Sheehan
         Telephone: (345) 949-9876
         Facsimile: (345) 949-9877


MA MILLGATE: Shareholders' Final Meeting Set for Aug. 30
--------------------------------------------------------
The shareholders of MA Millgate International Limited will hold
their final meeting on Aug. 30, 2012, to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         David Dyer
         Telephone: (345)949-8244
         Facsimile: (345)949-5223
         P.O. Box 1984 Grand Cayman KY1-1104
         Cayman Islands


MITSUI QATARGAS: Shareholders' Final Meeting Set for July 24
------------------------------------------------------------
The shareholders of Mitsui Qatargas 3 Ltd. will hold their final
meeting on July 24, 2012, at 8:30 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
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


PARSENN PROPERTIES: Members' Final Meeting Set for July 31
----------------------------------------------------------
The members of Parsenn Properties Ltd. will hold their final
meeting on July 31, 2012, at 12:00 noon, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         MBT Trustees Ltd.
         Telephone: 945-8859
         Facsimile: 949-9793
         P.O. Box 30622 Grand Cayman KY1-1203
         Cayman Islands


PPT (CAYMAN): Members' Final Meeting Set for July 31
----------------------------------------------------
The members of PPT (Cayman) Holding Limited will hold their final
meeting on July 31, 2012, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

         Tzyy-Jang Tseng
         c/o Citco Trustees (Cayman) Limited
         P.O. Box 31106 Grand Cayman KY1-1205
         Cayman Islands


WMT HOSPITALITY: Shareholders' Final Meeting Set for Aug. 30
------------------------------------------------------------
The shareholders of WMT Hospitality Investment II, Holdings will
hold their final meeting on Aug. 30, 2012, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         David Dyer
         Telephone: (345)949-8244
         Facsimile: (345)949-5223
         P.O. Box 1984 Grand Cayman KY1-1104
         Cayman Islands



=============
J A M A I C A
=============


DIGICEL GROUP: Judge Explains Refusal to Firm's Request
-------------------------------------------------------
RJR News reports that Supreme Court Judge Ingrid Mangatal, in her
written statement, has given an indication of the reason for her
refusal of a request by Digicel Group Limited to have the court
review the new legislation which it used to reduce mobile
termination rates.

Digicel Group had sought to make a case that in setting the new
interim mobile interconnection rate of JM$5 per minute, it should
have been consulted on the matter, but Justice Mangatal did not
agree, according to RJR News.

The report notes that in her ruling, Justice Mangatal pointed out
that section 37A part 6 of the amended regulation gives the
Utilities Regulation (OUR) power to set interim termination rates
without it being subject to the rules of natural justice or
procedural fairness.  However, the report relates that it is not
the only area on which the judge disagreed with Digicel Group.

RJR News notes that the company in its filing had indicated to the
court that it will suffer revenue loss and reputational damage
from the lower rates.   But Justice Mangatal also did not agree,
the report relates.

Justice Mangatal said Digicel Group "did not establish actual or
likely loss" and merely throws figures at the courts," RJR News
notes.

RJR News discloses that Digicel Group revealed to the court
US$2MM++ or JM$200MM++ per month in likely losses, with a new JM$5
per minute interim termination rate.

However, the report says that Justice Mangatal said she could find
"nothing to suggest that if such losses are experienced, they
would be irreparable", and she supported a point made by one of
the OUR's lawyers that "the alleged losses represent revenue to
which Digicel is not entitled to under law."

As reported in the Troubled Company Reporter-Latin America on
July 18, 2012, RJR News said that lawyers for Digicel Group
Limited will be going back to the Supreme Court.  The company will
seek permission to take their fight against OUR to the Appeal
Court, according to RJR News.  The report noted that Justice
Ingrid Mangatal is to decide whether to give Digicel Group the go
ahead to appeal her decision not to grant it leave to challenge
the OUR's powers before the Judicial Review Court.  RJR News said
that it was a major blow to Digicel Group which had applied to the
court for permission to challenge the OUR's powers under the
recently amended Telecoms Act.  Under the Act, the OUR has been
given the authority to set termination rates in the market.

                       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 Group has become a leading brand
across its 31 markets worldwide.  Digicel is based in Jamaica.
It 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 June 25, 2012, the company continues to carry Moody's
"Caa1" senior unsecured debt rating.


JAMALCO: Alcoa Incurs US$2 Million Loss in Second Quarter
---------------------------------------------------------
RJR News reports that U.S. aluminum giant Alcoa, which is part
owner of the Alcoa Minerals of Jamaica (Jamalco) plant in Jamaica,
has posted a US$2 million second quarter loss after aluminum
prices slumped to near two-year lows.

Alcoa said revenue declined 9% to US$6 billion as aluminum prices
fell 18% from last year, according to RJR News.

The report notes that the aluminum industry has had to contend
with a slowing global economy.

RJR News says that as European countries slide back into recession
and as economic growth slows in the US and China, some have raised
concerns about demand.

However, RJR News discloses that Alcoa has reaffirmed its forecast
that global aluminum demand will grow 7% in 2012, on top of the
10% growth seen in 2011.

                          About JAMALCO

JAMALCO (Alcoa Minerals of Jamaica) is a wholly owned subsidiary
of Alcoa.  JAMALCO mines bauxite and refines it into alumina
before exporting the alumina from its port at Rocky Point,
Clarendon.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 13, 2009, Radio Jamaica News said Alcoa plans to cut
13,500 jobs or 13% of the work force in Jamaica, because of the
global slowdown.  Alcoa is also selling four business units and
reducing output to save money, the report noted.  Caribbean Net
News said the government is holding talks with potential
purchasers for its 45% stake in the Jamalco refinery in south-
central parish of Clarendon.  Aluminum giant Alcoa holds 55% of
the company, which has a production capacity of 1.4 million tons
of alumina.



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


GRUPO ELEKTRA: Fitch Affirms 'BB' Rating on $550MM Senior Notes
---------------------------------------------------------------
Fitch Ratings has affirmed the following ratings of Grupo Elektra,
S.A.B. de C.V.:

  -- Foreign and Local Currency Issuer Default Rating (IDR) at
     'BB-';

  -- Long-term National Scale Rating at 'A(mex)';

  -- Short-term National Scale Rating at 'F2(mex)';

  -- US$550 million senior notes due 2018 at 'BB-';

  -- MXN$3 billion long-term Certificados Bursatiles issuances
     (ELEKTRA10-2 and ELEKTRA11) at 'A(mex)';

  -- Short and long-term Certificados Bursatiles program for up to
     MXN$5 billion at 'F2(mex)' and 'A(mex)', respectively.

The Rating Outlook is Stable.

Elektra's ratings reflect its operation's geographical
diversification, its market position both in the retail and
finance business, the latter including Banco Azteca (BAZ; rated
'A(mex)' by Fitch), as well as the linkage between both
operations.  On the retail side, the ratings are supported by
strong growth in revenues, same store sales (SSS) and EBITDA, and
by an extensive retail network across Mexico and, increasingly, in
countries such as Guatemala, Honduras, Panama, El Salvador, Peru,
Brazil and Argentina.  Grupo Elektra's retail operations are
linked to those of Banco Azteca because of its retail business
strategy of selling on credit (approximately 60% of sales).  BAZ's
stronger credit quality is supported by its management expertise
in consumer credit, asset quality, strong liquidity and the credit
risk of its portfolio.

The ratings incorporate the company's approach of offering
financial services to low-income retail customers, a retail
division's leverage (retail division's total debt to EBITDA) of
2.5x over the long term.  They also take into consideration the
controlling ownership by the Salinas family and track record of
transactions with related entities.  Additionally, the ratings are
tempered by the higher business risk profile of the recently
acquired payday lending subsidiary, Advance America (formerly
NYSE: AEA).

Fitch believes that the retail operation, by diversifying
geographically across Latin America, somewhat mitigates revenue
concentration (operations in Mexico, both retail and financial,
still generate about 86% of the Group's consolidated revenues).
Fitch expects continued solid sales and EBITDA generation for
2012, based on moderate growth of the Mexican economy.  Over the
last few quarters, Elektra's SSS grew at a broadly similar rate as
the department store segment, as measured by ANTAD, an industry
group.  As of 1Q'12, measured over last 12 months (LTM), retail
sales grew by 10% above previous year's levels.  Operating margins
stayed generally stable, at 21% in 1Q'12 LTM (1Q'11 LTM: 22%).

Banco Azteca's ratings reflect its broad experience and
competitive advantage in consumer finance, an ample stream of
recurring revenues, adequate capitalization, as well as an ample,
stable and diversified base of core customer deposits that allow
the bank to maintain a good operating performance and robust
liquidity.  The ratings also consider the challenges associated in
maintaining asset quality metrics amid a less favorable economic
environment (although impairment levels and reserve coverage
ratios have remained stable during 2011 and early months of 2012),
as well as the weak operating efficiency ratios arising from the
high management costs in the consumer finance business (cost-to-
income ratio of 80.3% in 1Q'12).  Core profitability continues to
improve and most ratios shows some stability, given better
contained credit costs (1Q'12: 63.8% of pre-impairment operating
profits) and a higher contribution of other revenues such as fees
and trading income.  This has allowed Banco Azteca to gradually
rebuild the performance ratios from the very weak metrics reported
in the 2008 period.

BAZ's loan portfolio has gradually diversified, reducing the
relative contribution of consumer loans (65.3% of total as of
1Q'12) and increasing the share of commercial loans, although
these remain highly concentrated by borrower.  Despite the adverse
operating environment in recent years, the bank's management has
successfully contained its impact on overall asset quality.  Past-
due loans as of 1Q'12 were 4.76% of total loans (historical peak
in 2009: 8.28%), although write-off levels are still high.
Borrower concentration is high, although this risk is partially
mitigated by conservative collateral requirements.  Capital ratios
remain reasonable despite material lending resumption in 2010 and
2011 (Fitch core capital accounted for 11.58% of risk weighted
assets as of 1Q'12, while the equivalent Mexican regulatory
capital ratio was 12.42% of risk weighted assets for the same
period).  The securities portfolio had moderate credit and market
risk, but further enhances the bank's sound funding and liquidity
profile.

At the same time, Elektra's recent acquisition of Advance America,
a cash advance provider with operations mainly in the United
States, has lowered creditworthiness.  As previously stated by
Fitch (Feb 16th, 2012), the acquisition of Advance America, which
has a higher business risk profile than Elektra, and the fact that
its acquisition was partially funded with debt, weakens the
company's credit quality within its rating category.  As of 2011,
Advance America generated revenues USD $626 million and EBITDA of
USD $123 million.

For the LTM ended March 31, 2012, consolidated debt to EBITDA
(including bank deposits), has diminished to 8.2x, compared to
9.9x over the same period the previous year.  Nonetheless, with
regards to the retail operation's leverage (which excludes BAZ and
other financial businesses); Fitch estimates that total debt to
EBITDA (1Q12 LTM) is about 2.5x (about 3.4x adjusted debt to
EBITDAR), higher than the same period the previous year. Fitch
also estimates that this ratio is around 2.5x (about 2.3x for
covenant purposes), on a pro forma basis, when Advance America's
operations and debt related to its acquisition are taken into
account.  The ratings incorporate that, over the long term, total
debt to EBITDA, excluding BAZ and other Latin American financial
businesses, should fluctuate around 2.5x.  The prospect of
leverage above 2.5x could pressure the ratings. Fitch also
anticipates that Elektra will not allocate further funds to
Advance America in the future.

As of March 2012, the retail business' total debt (excluding BAZ
and other financial businesses) amounted to MXN$13.9 billion, 26%
above the same period in 2011.  This amount does not take into
account the MXN$2.7 billion Certificados Bursatiles Fiduciarios
issuance (DINEXCB-12) by Intra Mexicana, a subsidiary, which took
place in 2Q12, nor the assorted bank debt totaling MXN$ 1.35
billion which came due in 2Q12.  Debt is made up of bank loans,
debt issuances and structured issuances.  Furthermore, Fitch
estimates off-balance sheet debt related to operating leases at
about MXN$ 13.8 billion, when taking into account Advance
America's leases.  Elektra has paid annual dividends of about MXN
$480 million and Fitch expects that this amount will grow
moderately.

Key Rating Drivers

Positive: Future developments that may, individually or
collectively, lead to positive rating actions include: A sustained
decrease in leverage, as well as a sustained improvement in Banco
Azteca's credit profile.

Negative: Future developments that may, individually or
collectively, lead to negative rating actions include: An
accelerated increase in debt, without a corresponding increase in
EBITDA on the commercial division, a decrease in EBITDA generation
or an increase in debt due to Advance America's operations or
contingencies, as well as deterioration in Banco Azteca's
creditworthiness.

Fitch also rates the following entities:
  -- Banco Azteca de Guatemala, S.A. 'BBB+(gtm)' and 'F2(gtm)';
  -- Banco Azteca (Panama), S.A. 'BBB(pan)' and 'F3(pan)';
  -- MXN $2.7 billion Certificados Bursatiles Fiduciarios issuance
     (DINEXCB-12) by Intra Mexicana, a subsidiary of Grupo
     Elektra, 'AA-(mex)'.


GRUPO POSADAS: S&P Puts 'CCC+' CCR on Watch Positive
----------------------------------------------------
Standard & Poor's Ratings Services placed its 'CCC+' long-term
corporate credit and senior unsecured debt ratings and its 'mxB+'
national scale ratings on Mexican hotel operator Grupo Posadas
S.A.B. de C.V. (Posadas) on CreditWatch with positive
implications.

"On July 16, 2012, Posadas announced an agreement to sell its
South America division to Accor S.A. (BBB-/Stable/A-3) for $275
million (in 2011, this division represented about 15% of Posadas's
total revenues and 17% of total EBITDA). Accor will acquire all of
Posadas's assets in the region, including owned, leased, and
managed. This would strengthen Posadas's liquidity position to
cover its debt amortization payments due in 2012, 2013, and 2014,"
S&P said.

"The positive CreditWatch listing reflects our expectations that
Posadas would use the proceeds of the sale -- which we expect to
close during fourth quarter 2012 subject to customary closing
conditions -- to reduce its debt levels," said Standard & Poor's
credit analyst Sandra Tinoco. "The company would be able to
amortize all its debt due in 2012 (about $27 million as of March
31, 2012), 2013 (about $228 million including the CEBURES), and
2014 (about $13.6 million). After such payments, and considering
payment of the company's bank loan in Brazil of about $8 million,
the remaining debt would be mainly related to the $200 million
notes due in 2015. Therefore, we could raise our ratings on the
company by at least one notch, as the risk of a possible default
in the next 12 months is significantly lowered."

"If the transaction is closed by the end of 2012, we would expect
debt-to-EBITDA, funds from operations-to-debt, and EBITDA interest
coverage ratios of 4.3x, 13.1%, and 2.2x, respectively (7.9x,
3.6%, and 1.7x as of March 31, 2012)," S&P said.

"We will resolve the CreditWatch listing once the transaction is
closed and the company pays down its bank debt due in fourth-
quarter 2012 and 2013, and its CEBURES due in April 2013. We will
also analyze the implications of South America's divestment on the
company's business and financial profile," S&P said.


GRUPO TMM: Salles Sainz Raises Going Concern Doubt
--------------------------------------------------
Salles Sainz - Grant Thornton, S.C., in Mexico City, expressed
substantial doubt about Grupo TMM, S.A.B.'s ability to continue as
a going concern, following the Company's results for the fiscal
year ended Dec. 31, 2011.  The independent auditors noted that the
Company has incurred net losses in recent years, principally as a
result of its comprehensive financing cost.

The Company reported net income of US$16.22 million on
US$269.16 million of revenues for 2011, compared with a net loss
of US$78.92 million on US$305.40 million of revenues for 2010.

"Net financing cost recognized during the year ended Dec. 31,
2011, was a US$13.5 million credit, compared to a US$108.1 million
expense incurred during the year ended Dec. 31, 2010.  The net
financing cost in 2011 included a net exchange gain of
US$93.7 million and in 2010 included a net exchange loss of
US$38.1 million as a result of fluctuations in the relative value
of the peso against the dollar.  Interest expense increased
US$5.6 million in 2011 mainly due to additional amortization
related to the repurchase in May 2011 of all certificates held by
Deutsche Bank AG London and the financial cost associated with an
increase in our Trust Certificates Program of approximately
Ps. 1,500 million.  The decrease was primarily due to the
recognition of a significant currency exchange gain on our Peso-
denominated debt as a result of a 12.6% depreciation of the peso
against the dollar in 2011."

The Company's balance sheet at Dec. 31, 2011, showed
US$952.06 million in total assets, US$843.65 million in total
liabilities, and stockholders' equity of US$108.41 million.

A copy of the Form 20-F is available for free at:

                       http://is.gd/eyykJU

Grupo TMM, S.A.B., is a Mexican company whose principal activity
is providing multimodal transportation and logistics services to
premium customers throughout Mexico.  Grupo TMM provides services
related to dedicated trucking, third-party logistics, offshore
supply shipping, clean oil and chemical products shipping, tug-
boat services, warehouse management, shipping agency, inland and
seaport terminal services, container and railcar maintenance and
repair, and other activities related to the shipping and land
freight transport business.

Due to the geographic location of some of the subsidiaries and the
activities in which they are engaged, Grupo TMM and its
subsidiaries are subject to the laws and ordinances of other
countries, as well as international regulations governing maritime
transportation and the observance of safety and environmental
regulations.


VITRO SAB: Order Blocking Bondholders Extended During Appeal
------------------------------------------------------------
David McLaughlin and Brendan Case at Bloomberg News report that
Vitro, S.A.B. de C.V. bondholders will remain blocked from seizing
assets of the Mexican glassmaker while an appeal over the
company's bankruptcy plan is pending, an appeals court decided.

The stay that a bankruptcy judge in Dallas imposed last month will
"remain in place during the pendency of this appeal or until
further order of this court," the U.S. Court of Appeals in New
Orleans said, according to Bloomberg News.

Bloomberg News notes that Vitro SAB appealed after U.S. Bankruptcy
Judge Harlin DeWayne Hale refused to enforce the company's Mexican
reorganization plan in the U.S. last month, saying it was
"manifestly contrary" to U.S. public policy.

Bloomberg News notes that a Mexican court approved the plan in
February, after more than a year of legal battles between Vitro
SAB and bondholders including Paul Singer's Elliott

The company is pleased the appeals court "extended the temporary
restraining order, thereby providing important clarity and
certainty for Vitro's U.S. customers throughout the appeal
process," said Roberto Riva Palacio, a spokesman for Vitro,
which is based in San Pedro Garza Garcia, Mexico told Bloomberg
News in an interview.

                        About Vitro SAB

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.

Vitro is the largest manufacturer of glass containers and flat
glass in Mexico, with consolidated net sales in 2009 of MXN23,991
million (US$1.837 billion).

Vitro defaulted on its debt in 2009, and sought to restructure
around US$1.5 billion in debt, including US$1.2 billion in notes.
Vitro launched an offer to buy back or swap US$1.2 billion in
debt from bondholders.  The tender offer would be consummated
with a bankruptcy filing in Mexico and Chapter 15 filing in the
United States.  Vitro said noteholders would recover as much as
73% by exchanging existing debt for cash, new debt or convertible
bonds.

            Concurso Mercantil & Chapter 15 Proceedings

Vitro SAB on Dec. 13, 2010, filed its voluntary petition for a
pre-packaged Concurso Plan in the Federal District Court for
Civil and Labor Matters for the State of Nuevo Leon, commencing
its voluntary concurso mercantil proceedings -- the Mexican
equivalent of a prepackaged Chapter 11 reorganization.  Vitro SAB
also commenced parallel proceedings under Chapter 15 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Case No. 10-16619) in Manhattan
on Dec. 13, 2010, to seek U.S. recognition and deference to its
bankruptcy proceedings in Mexico.

Early in January 2011, the Mexican Court dismissed the Concurso
Mercantil proceedings.  But an appellate court in Mexico
reinstated the reorganization in April 2011.  Following the
reinstatement, Vitro SAB on April 14, 2011, re-filed a petition
for recognition of its Mexican reorganization in U.S. Bankruptcy
Court in Manhattan (Bankr. S.D.N.Y. Case No. 11- 11754).

The Vitro parent received sufficient acceptances of its
reorganization by using the US$1.9 billion in debt owing to
subsidiaries to vote down opposition by bondholders.  The holders
of US$1.2 billion in defaulted bonds opposed the Mexican
reorganization plan because shareholders could retain ownership
while bondholders aren't being paid in full.

Vitro announced in March 2012 that it has implemented the
reorganization plan approved by a judge in Monterrey, Mexico.

In the present Chapter 15 case, the Debtor seeks to block any
creditor suits in the U.S. pending the reorganization in Mexico.

                      Chapter 11 Proceedings

A group of noteholders opposed the exchange -- namely Knighthead
Master Fund, L.P., Lord Abbett Bond-Debenture Fund, Inc.,
Davidson Kempner Distressed Opportunities Fund LP, and Brookville
Horizons Fund, L.P.  Together, they held US$75 million, or
approximately 6% of the outstanding bond debt.  The Noteholder
group commenced involuntary bankruptcy cases under Chapter 11 of
the U.S. Bankruptcy Code against Vitro Asset Corp. (Bankr. N.D.
Tex. Case No. 10-47470) and 15 other affiliates on Nov. 17, 2010.

Vitro engaged Susman Godfrey, L.L.P. as U.S. special litigation
counsel to analyze the potential rights that Vitro may exercise
in the United States against the ad hoc group of dissident
bondholders and its advisors.

A larger group of noteholders, known as the Ad Hoc Group of Vitro
Noteholders -- comprised of holders, or investment advisors to
holders, which represent approximately US$650 million of the
Senior Notes due 2012, 2013 and 2017 issued by Vitro -- was not
among the Chapter 11 petitioners, although the group has
expressed concerns over the exchange offer.  The group says the
exchange offer exposes Noteholders who consent to potential
adverse consequences that have not been disclosed by Vitro.  The
group is represented by John Cunningham, Esq., and Richard
Kebrdle, Esq. at White & Case LLP.

A bankruptcy judge in Fort Worth, Texas, denied involuntary
Chapter 11 petitions filed against four U.S. subsidiaries.  On
April 6, 2011, Vitro SAB agreed to put Vitro units -- Vitro
America LLC and three other U.S. subsidiaries -- that were
subject to the involuntary petitions into voluntary Chapter 11.
The Texas Court on April 21 denied involuntary petitions against
the eight U.S. subsidiaries that didn't consent to being in
Chapter 11.

Kurtzman Carson Consultants is the claims and notice agent to
Vitro America, et al.  Alvarez & Marsal North America LLC, is the
Debtors' operations and financial advisor.

The official committee of unsecured creditors appointed in the
Chapter 11 cases of Vitro America, et al., has selected Sarah
Link Schultz, Esq., at Akin Gump Strauss Hauer & Feld LLP, in
Dallas, Texas, and Michael S. Stamer, Esq., Abid Qureshi, Esq.,
and Alexis Freeman, Esq., at Akin Gump Strauss Hauer & Feld LLP,
in New York, as counsel.  Blackstone Advisory Partners L.P.
serves as financial advisor to the Committee.

The U.S. Vitro companies sold their assets to American Glass
Enterprises LLC, an affiliate of Sun Capital Partners Inc., for
US$55 million.

U.S. subsidiaries of Vitro SAB are having their cases converted
to liquidations in Chapter 7, court records in January 2012 show.
In December, the U.S. Trustee in Dallas filed a motion to convert
the subsidiaries' cases to liquidations in Chapter 7.  The
Justice Department's bankruptcy watchdog said US$5.1 million in
bills were run up in bankruptcy and hadn't been paid.

On June 13, 2012, U.S. Bankruptcy Judge Harlin "Cooter" Hale in
Dallas entered a ruling that precluded Vitro from enforcing
its Mexican reorganization plan in the U.S.  The judge ruled that
the Mexican reorganization was "manifestly contrary" to U.S.
public policy because it bars the bondholders from holding Vitro
operating subsidiaries liable to pay on their guarantees of the
bonds.  The Mexican plan reduced the debt of subsidiaries on $1.2
billion in defaulted bonds even though they weren't in bankruptcy
in any country.


* MUNICIPALITY OF CULIACAN: Moody's Assigns 'Ba1' Loan Rating
-------------------------------------------------------------
Moody's de M‚xico has assigned debt ratings of A1.mx (National
Scale) and Ba1 Global Scale, local currency) to a MXN 498 million
enhanced loan from Banorte to the Municipality of Culiacan.

The loan has a maturity of 20 years with 8 months of grace period
for principal payments. The loan is payable through a master trust
(Ixe as trustee), to which the Municipality has pledged the flows
and rights to 32% of its federal participation revenues (Ramo 28).
The loan will pay an interest rate composed of the 28-day Mexican
Interbank Interest Rate (TIIE in Spanish) plus a spread.

Ratings Rationale

The Ba1/A1.mx ratings assigned to the MXN498 enhanced loan reflect
the underlying creditworthiness of the Municipality of Culiac n
(Ba3/Baa1.mx, stable outlook) supported by the following legal and
credit enhancements embedded in the loan:

1. Validity of the legal authorization of the transaction, which
authorizes the trust to be used as a mechanism for debt service
payment.

2. Trust structure based on an irrevocable instruction to the
State of Sinaloa to transfer participation revenues to the
trustee.

3. Estimated cash flows generate strong debt service coverage
ratios. Under a Moody's base case scenario, cash flows within the
trust are projected to provide 2.9x debt service coverage at the
lowest point over the life of the loan. Under a stress case
scenario, estimated cash flows are projected to provide 2.7x debt
service coverage at the lowest point.

4. Moderate level of reserves within the master trust that
represent 2.0x debt service coverage under a stress case scenario
and provide enough cushion against payment delays.

What Could Change The Ratings Up/Down

Given the links between the loan and the credit quality of the
obligor, an upgrade of the Municipality of Culiacan's issuer
ratings would likely result in an upgrade of the ratings on the
loan. Conversely, a downgrade of the Municipality of Culiacan's
issuer ratings could also exert downward pressure on debt ratings
for the loan. The ratings could also face downward pressure if
debt service coverage levels fall materially below Moody's
expectations.


                            ***********


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, Ivy B. Magdadaro, Frauline S.
Abangan, and Peter A. Chapman, Editors.

Copyright 2012.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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