TCRLA_Public/120726.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 26, 2012, Vol. 13, No. 148


                            Headlines


A R G E N T I N A

AERO PENINSULA: Applies for Bankruptcy Protection
CONSTRUCTORA PROYECTOS: Creditors' Proofs of Debt Due Aug. 14
GAS NEA: Requests Opening of Bankruptcy Proceedings
METROGAS SA: YPF SA Plans Takeover From BG Group
PROVINAR SRL: Creditors' Proofs of Debt Due Oct. 5

TERACODE SA: Asks for Bankruptcy Proceedings
* ARGENTINA: GDP to Shrink 1.7% This Year, Citigroup Says


C A Y M A N   I S L A N D S

FERIADO INVESTMENT: Creditors' Proofs of Debt Due Aug. 14
FERIADO INVESTMENT: Shareholders' Final Meeting Set for Aug. 17
GEMINI CAYMAN: Creditors' Proofs of Debt Due Aug. 16
GREENLAKE INVESTMENT: Creditors' Proofs of Debt Due Aug. 16
INJET400 AIRCRAFT: Creditors' Proofs of Debt Due Aug. 16

INJET800 AIRCRAFT: Creditors' Proofs of Debt Due Aug. 16
K SERA SERA: Creditors' Proofs of Debt Due Aug. 31
PILOTROCK OFFSHORE: Creditors' Proofs of Debt Due Aug. 15
SONNEN ENERGIE: Members' Final Meeting Set for Aug. 7
SSO I LTD: Creditors' Proofs of Debt Due Aug. 16

TCP INVESTMENTS: Creditors' Proofs of Debt Due Aug. 27


C O S T A   R I C A

BANCO DE COSTA: Fitch Affirms 'BB+' IDR and Viability Rating
BANCO NACIONAL: Fitch Affirms Rating on IDR and VR at Low-B


E L   S A L V A D O R

* EL SALVADOR: Fitch Affirms Low-B Issuer Default Ratings


P U E R T O  R I C O

ALCO CORP: Aug. 29 Hearing on Amended Disclosure Statement
REITTER CORP: Plan Confirmation Hearing on Oct. 2


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                            - - - - -


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


AERO PENINSULA: Applies for Bankruptcy Protection
-------------------------------------------------
Aero Peninsula SA applied for bankruptcy protection.  The company
defaulted its payments last May 9, 2009.


CONSTRUCTORA PROYECTOS: Creditors' Proofs of Debt Due Aug. 14
-------------------------------------------------------------
Mauricio Leon Zafran, the court-appointed trustee for
Constructora Proyectos SRL's bankruptcy proceedings, will be
verifying creditors' proofs of claim until Aug. 14, 2012.

Mr. Zafran will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 50, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Mauricio Leon Zafran
         Av. Callao 420
         Argentina


GAS NEA: Requests Opening of Bankruptcy Proceedings
---------------------------------------------------
Gas NEA SA requested the opening of bankruptcy proceedings.  The
company defaulted its payments last April.


METROGAS SA: YPF SA Plans Takeover From BG Group
------------------------------------------------
Pablo Gonzalez at Bloomberg News reports that YPF SA is replacing
two board members at its Metrogas SA joint venture with BG Group
Plc (BG/) as it prepares to take over the bankrupt natural-gas
distributor, an executive with knowledge of the plan said.

The replacement of the board members was approved in a
shareholders meeting, the person said, declining to be named
because the plan isn't public, according to Bloomberg News.

Bloomberg News relays that the source said that the new board
members will help prepare the company for a takeover as early as
mid-August.  Anses, the state-owned pension system, is replacing
one board member, the source added, Bloomberg News relates.

Bloomberg News notes that Argentina President Cristina Fernandez
de Kirchner is tightening control over the South American
country's energy industry after price caps discouraged
investments and squeezed profit margins in past years.  Bloomberg
News recalls that in April, the government seized a 51% stake in
YPF from Spain's Repsol SA. (REP)

BG, of the U.K., has sought damage payments from the Argentine
government since 2007 because of losses caused by the price caps,
Bloomberg News relates.  On Jan. 21, a federal judge in
Washington upheld damage claims of US$185 million, Bloomberg News
discloses. BG shut its Buenos Aires office in 2009.

Bloomberg News notes that BG controls Metrogas through a 55%
stake in parent holding company GASA, which defaulted on
US$70 million of debt in 2002.  YPF owns 45% of GASA.

As reported in the Troubled Company Reporter-Latin America on
June 22, 2012, Bloomberg News said that holders of the Metrogas
SA's bonds approved a debt restructuring for the bankrupt gas
distributor.  Investors holding about US$139 million of debt
unanimously approved the terms of the restructuring, the company
said in statements to the Buenos Aires exchange obtained by
Bloomberg News.  The accord includes swapping bonds for new debt
to mature in 2018, and will comprise haircuts of 53% for holders
of class A bonds and 47% for holders of class B bonds, according
to documents posted in February on the company's Web site,
according to Bloomberg News.

                       About Metrogas SA

Buenos Aires, Argentina-based MetroGAS S.A., a gas distribution
company, was incorporated on Nov. 24, 1992, and began operations
on Dec. 29, 1992, when the privatization of Gas del Estado S.E.
("GdE") (an Argentine Government-owned enterprise) was completed.
Through Executive Decree No. 2,459/92 dated Dec. 21, 1992, the
Argentine Government granted MetroGAS an exclusive license to
provide the public service of natural gas distribution in the
area of the Federal Capital and southern and eastern Greater
Buenos Aires, by operating the assets allocated to the Company by
GdE for a 35-year period from the Takeover Date (Dec. 28, 1992).
This period can be extended for an additional 10 year period
under certain conditions.

MetroGAS' controlling shareholder is Gas Argentino S.A., who
holds 70% of the Common Stock of the Company.  The 20%, which was
originally owned by the National Government, was offered in
public offering and the remaining 10% is under the Employee Stock
Ownership Plan ("Programa de Propiedad Participada" or "PPP").

The suspension of the original regime for tariff adjustments and
the inability to generate sufficient cash flows to pay its
financial debt obligations led the Company to file a petition for
a voluntary reorganization proceeding (concurso preventivo) in an
Argentine court on June 17, 2010.

On July 12, 2011, the Company presented a Reorganization Proposal
to all unsecured creditors with proved and admissible claims.
The offer consists of the payment of the unsecured claims, either
proved or admissible, by means of the delivery, in exchange for
and payment of such credits, of negotiable obligations payable in
14 years, in American Dollars, for 45%, measured in American
Dollars, of the unsecured claims verified or declared admissible
-- Negotiable Obligations.

The Negotiable Obligations will be amortized 1% per year from
year 3 to, and including, year 13, and the remaining balance
(89%) will be amortized at the maturity of the Negotiable
Obligations, in year 14.  The Negotiable Obligations will accrue
interest at an annual fixed rate of 4% and will be issued in two
series under substantially the same terms and conditions.  Both
will be offered in public bids.  One of the series will be
offered in exchange to those creditors with unsecured claims who
hold existing negotiable obligations with public offer, and the
other series will be offered to the other unsecured creditors who
are not bondholders.

On Oct. 3, 2011, commercial creditor consents to MetroGAS' offer
were presented before the reorganization procedure court, in such
a number that represents the absolute majority of the verified
creditors.


PROVINAR SRL: Creditors' Proofs of Debt Due Oct. 5
--------------------------------------------------
Maria Rosa Lopez, the court-appointed trustee for Provinar SRL's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until Oct. 5, 2012.

Ms. Lopez will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 11 in Buenos Aires, with the assistance of Clerk No.
21, will determine if the verified claims are admissible, taking
into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Maria Rosa Lopez
         Paraguay 2081


TERACODE SA: Asks for Bankruptcy Proceedings
--------------------------------------------
Teracode SA asked for bankruptcy proceedings.  The company
defaulted its payments last March 23, 2012.


* ARGENTINA: GDP to Shrink 1.7% This Year, Citigroup Says
---------------------------------------------------------
Katia Porzecanski at Bloomberg News reports that Argentina's
economy will post its first annual contraction in a decade as
tighter capital and import controls contribute to a drop in
output and confidence, Citigroup Inc. said.

Gross domestic product will shrink 1.7% this year, worse than the
bank's previous forecast for 1% growth, New York-based economist
Joaquin Cottani wrote in a note to clients, according to
Bloomberg News.

Bloomberg News relates that with annual inflation Citigroup
estimates at 25%, the country is experiencing so-called
stagflation, Mr. Cottani said.

Bloomberg News discloses that Argentina President Cristina
Fernandez de Kirchner has stepped up restrictions on dollar
purchases and forced some companies to repatriate export revenue
since her October re-election in a bid to stem capital outflow.

Bloomberg News relays that President Fernandez also restricted
imports as she sought to widen a narrowing trade surplus, and
seized the country's biggest oil company from its Spanish parent
company.

Fernandez's policies have worsened the outlook of Argentines and
international investors, Cottani said. Consumer confidence fell
25% in July from a year earlier, according to a survey released
by Buenos Aires-based Torcuato Di Tella University that was
obtained by the news agency.

Bloomberg News notes that Mr. Cottani said his forecast for an
economic contraction this year is different than what he expects
the government will report.  Mr. Cottani predicts the government
will say growth was 1.5 percent this year, Bloomberg News says.



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


FERIADO INVESTMENT: Creditors' Proofs of Debt Due Aug. 14
---------------------------------------------------------
The creditors of Feriado Investment Company Limited are required
to file their proofs of debt by Aug. 14, 2012, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on June 19, 2012.

The company's liquidator is:

         Dr. Peter C. Klemm
         Telephone: +41 44 715 43 18
         Facsimile: +41 44 715 43 71
         Alte Landstrasse 155
         CH-8802 Kilchberg
         Switzerland


FERIADO INVESTMENT: Shareholders' Final Meeting Set for Aug. 17
---------------------------------------------------------------
The shareholders of Feriado Investment Company Limited will hold
their final general meeting on Aug. 17, 2012, at 9:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         Dr. Peter C. Klemm
         Telephone: +41 44 715 43 18
         Facsimile: +41 44 715 43 71
         Alte Landstrasse 155
         CH-8802 Kilchberg
         Switzerland


GEMINI CAYMAN: Creditors' Proofs of Debt Due Aug. 16
----------------------------------------------------
The creditors of Gemini Cayman Limited are required to file their
proofs of debt by Aug. 16, 2012, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on June 29, 2012.

The company's liquidator is:

         Walkers SPV Limited
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9005
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


GREENLAKE INVESTMENT: Creditors' Proofs of Debt Due Aug. 16
-----------------------------------------------------------
The creditors of Greenlake Investment Management Ltd are required
to file their proofs of debt by Aug. 16, 2012, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on July 2, 2012.

The company's liquidator is:

         Walkers Corporate Services Limited
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9005
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


INJET400 AIRCRAFT: Creditors' Proofs of Debt Due Aug. 16
--------------------------------------------------------
The creditors of Injet400 Aircraft Leasing Co Limited are
required to file their proofs of debt by Aug. 16, 2012, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on June 13, 2012.

The company's liquidator is:

         Walkers Corporate Services Limited
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9005
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


INJET800 AIRCRAFT: Creditors' Proofs of Debt Due Aug. 16
--------------------------------------------------------
The creditors of Injet800 Aircraft Leasing Co Limited are
required to file their proofs of debt by Aug. 16, 2012, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on July 3, 2012.

The company's liquidator is:

         Walkers Corporate Services Limited
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9005
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


K SERA SERA: Creditors' Proofs of Debt Due Aug. 31
--------------------------------------------------
The creditors of K Sera Sera Investments Limited are required to
file their proofs of debt by Aug. 31, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on July 3, 2012.

The company's liquidator is:

         Lion International Management Limited
         Craigmuir Chambers
         P.O. Box 71 Road Town
         Tortola VG 1110
         British Virgin Islands
         c/o Mr. Philip C Pedro
         HSBC International Trustee Limited
         Compass Point, 9 Bermudiana Road
         Hamilton HM 11
         Bermuda
         Telephone: (441) 299-6482
         Facsimile: (441) 299-6526


PILOTROCK OFFSHORE: Creditors' Proofs of Debt Due Aug. 15
---------------------------------------------------------
The creditors of Pilotrock Offshore Fund, Ltd. are required to
file their proofs of debt by Aug. 15, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 29, 2012.

The company's liquidator is:

         Walkers Corporate Services Limited
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9005
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


SONNEN ENERGIE: Members' Final Meeting Set for Aug. 7
-----------------------------------------------------
The members of Sonnen Energie Limited will hold their final
meeting on Aug. 7, 2012, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170 George Town
         Grand Cayman KY1-1102
         Cayman Islands


SSO I LTD: Creditors' Proofs of Debt Due Aug. 16
------------------------------------------------
The creditors of SSO I Ltd are required to file their proofs of
debt by Aug. 16, 2012, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on July 3, 2012.

The company's liquidator is:

         Walkers Corporate Services Limited
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9005
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


TCP INVESTMENTS: Creditors' Proofs of Debt Due Aug. 27
------------------------------------------------------
The creditors of TCP Investments, SPC are required to file their
proofs of debt by Aug. 27, 2012, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on July 26, 2012.

The company's liquidator is:

         Jonathan Culshaw
         Telephone : + 852 3195 7200
         Facsimile : +852 3195 7210
         Harney Westwood & Riegels
         7502 International Commerce Centre
         One Austin Road West
         Kowloon, Hong Kong



===================
C O S T A   R I C A
===================


BANCO DE COSTA: Fitch Affirms 'BB+' IDR and Viability Rating
------------------------------------------------------------
Fitch Ratings has affirmed Banco de Costa Rica's (BCR) Issuer
Default Ratings (IDRs) at 'BB+' and Viability Rating (VR) at
'bb+'.

BCR's IDRs are driven by the explicit sovereign guarantees for
all its liabilities.  As stated in the Banking Law (Ley Organica
del Sistema Bancario Nacional), all public banks have the
guarantee and full collaboration of the state, which allows the
bank's IDRs to be aligned with Costa Rica's sovereign ratings.
In turn, BCR's VR considers the bank's established track record
of self-sustained profitability, strong franchise, good asset
quality, as well as the bank's challenged efficiency ratios.

The long-term rating's Outlook remains Stable. Changes in the
bank's IDRs are contingent on sovereign rating actions for Costa
Rica.  Given BCR's current financial profile, the potential for
an upgrade of the bank's VR over the medium term is limited.
Though not Fitch's base case scenario, a material deterioration
in efficiency or asset quality that compromise the bank's
profitability or capital position could trigger a downgrade in
BCR's VR.

Similar to other state-owned institutions, BCR's operating
expenses are high and present limited flexibility, given the
bank's extensive branch network and high personnel expenses.  The
current administration has included efficiency among its key
strategic objectives, although material advances in this regard
could only be expected over the medium to long term.  However,
profits have been able to sustain asset growth and maintain
adequate capital ratios.  In addition, in the event of an
increase in expenses or compulsory contributions, Fitch would
expect asset growth to slow down or capital ratios to decrease
slightly.

BCR's growth toward a more balanced portfolio has improved loan
diversification while keeping asset quality ratios under control.
After the impact of the financial crisis on credit quality,
delinquency ratios have been controlled and the bank's reserves
coverage has recovered, though it is still bellow pre-crisis
levels.  Fitch expects BCR's non-performing loans ratios to
remain stable, given the bank's increased participation in retail
segments.

BCR has a very strong local franchise.  The customer's perception
of the sovereign guarantee, combined with BCR's extensive branch
network and solid deposit base, place it as one of the strongest
competitors in the Costa Rican banking system.  BCR is the second
largest bank, with a market share of 28.8% of total assets.  BCR
has grown toward a universal bank by increasing its participation
in consumer financing along with its traditional corporate
orientation.  The bank complements its services with five
subsidiaries: four wholly owned subsidiaries in regulated non-
credit activities in Costa Rica and a 51% participation in the
Panamanian general licensed bank Banco Internacional de Costa
Rica (BICSA; rated 'BB+' with Stable Outlook by Fitch).

Fitch has affirmed BCR's ratings as follows:

International ratings

  -- Long-term IDR at 'BB+'; Outlook Stable;
  -- Short-term IDR at 'B';
  -- Long-term local currency IDR at 'BB+'; Outlook Stable;
  -- Short-term local currency IDR at 'B';
  -- Viability Rating at 'bb+';
  -- Support Rating at '3';
  -- Support Rating Floor at 'BB+'.

National ratings

  -- Long-term national rating at 'AA+(cri)'; Outlook Stable;
  -- Short-term national rating at 'F1+(cri)';
  -- Long-term senior unsecured bonds at 'AA+(cri)';
  -- Commercial paper at 'F1+(cri)'.

Fitch has assigned the following new ratings:

  -- Programa De Emisiones De Bonos Estandarizados Del Banco De
     Costa Rica 2012: long-term senior unsecured debt programo
     for USD150 million at 'AA+(cri)';
  -- Programa De Emisiones De Papel Comercial Del Banco De Costa
     Rica 2012: Commercial paper issuance program for CRC15.000
     million at 'F1+(cri)'.


BANCO NACIONAL: Fitch Affirms Rating on IDR and VR at Low-B
-----------------------------------------------------------
Fitch Ratings has affirmed Banco Nacional de Costa Rica's (BNCR)
Issuer Default Rating (IDR) at 'BB+' and Viability Rating (VR) at
'bb+'.

BNCR's IDRs are driven by the explicit sovereign guarantees for
all its liabilities.  This benefit, conferred on it by the Ley
Organica del Sistema Bancario Nacional (National Banking System
Law), allows BNCR's IDRs to be aligned to Costa Rica's sovereign
ratings.  In turn, BNCR's VR reflects the bank's strong
franchise, ample funding, sound liquidity, and adequate capital
ratios, while also factoring in weak loan portfolio quality, low
loan loss reserves, and below average efficiency relative to
international peers, though in line with the Costa Rican banking
system.

The Outlook on the long-term rating remains Stable.  As the
bank's main shareholder is the Costa Rican government, changes in
the IDRs are contingent on sovereign rating actions.  While
upgrades in the bank's VR are unlikely in the foreseeable future,
a material deviation of the bank's asset quality from Fitch's
base case scenario could trigger a downgrade in BNCR's VR.

BNCR's loan growth decelerated in 2012 and is below the market
average. Asset quality indicators are weaker than those of
international peers (emerging market commercial banks with a
Viability Rating in the 'bb' category) and compare unfavorably
with those of the Costa Rican banking system.  As of 1H'12, past
due loans accounted for 3.17% of total loans and reserves
coverage declined a historic low of 53%, despite the high loan
loss provision expense and the significant amount of charge-offs
and foreclosed assets observed over the past few years after the
crisis, especially in the real estate and tourism sectors.  In
Fitch's base case scenario loan loss provisions will continue
curbing the bank's profits but credit quality indicators should
stabilize.  However, deterioration of specific credits in high
risk segments is not ruled out, as the performance of some
credits in these sectors is still uncertain.

Although the bank's operating profit to average total assets
ratio improved, it is still below the market average due to high
operating expenses and provisions.  At the same time, the ROAA
and ROAE ratios at 1Q'12 compared favorably with peers and have
exceeded those reported at YE2008, reflecting a tax provision
reversal registered during the first semester.  Fitch expects
these ratios to decline as YE12 net profits will be sensitive to
the amount of foreclosures and loan loss provisions expenses
registered during the year.

BNCR maintains adequate and stable capital ratios.  In Fitch's
opinion, capital levels are crucial for the bank's strategy and
target capital adequacy, especially considering the bank's low
reserves coverage.  In the event of an increase in expenses or
compulsory contributions, Fitch would expect asset growth to slow
down or capital ratios to decrease slightly.

BNCR's dominant market position reflects both its broad
geographic penetration and its solid deposit base.  At 1Q'12, the
bank held a market share of 30.5% of total deposits and 26.5% of
loans, and was the largest bank in the country and the largest
state-owned bank in Central America.

Fitch has affirmed BNCR's ratings as follows:

  -- Long-term IDR at 'BB+'; Outlook Stable;
  -- Short-term IDR at 'B';
  -- Long-term local currency IDR at 'BB+'; Outlook Stable;
  -- Short-term local currency IDR at 'B';
  -- Viability Rating at 'bb+';
  -- Support Rating at '3';
  -- Support Rating Floor at 'BB+';
  -- Long-term national rating at 'AA+(cri)'; Outlook Stable;
  -- Short-term national rating at 'F1+(cri)';
  -- Long-term senior unsecured bonds at 'AA+(cri)';
  -- Commercial Paper at 'F1+(cri)'.



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


* EL SALVADOR: Fitch Affirms Low-B Issuer Default Ratings
---------------------------------------------------------
Fitch Ratings affirms El Salvador's ratings as follows:

  -- Foreign and local currency Issuer Default Ratings (IDRs) at
     'BB';
  -- Short-term IDR at 'B';
  -- Country Ceiling at 'BBB-'.

The Rating Outlook is revised to Negative from Stable.

The Outlook revision reflects El Salvador's sustained economic
growth underperformance relative to peers, which is expected to
continue during the forecast period due to structural impediments
faced by the economy. High fiscal deficits and difficulty in
consolidating fiscal accounts faster have resulted in a debt
burden persistently above 50% of GDP, well above the 'BB' median.
This restricts the government's policy room to respond to
external and domestic shocks. In Fitch's view, global economic
uncertainty poses additional downside risks to the agency's
economic and fiscal projections for El Salvador.

El Salvador's economic growth prospects are weaker than those of
most peers in light of the country's low competitiveness and
investment levels, and high crime rates. Government initiatives
to accelerate growth and to improve the business climate have
been slow to materialize.

Despite the sluggish economy, tax collection continues to grow
supported by tax reforms and administrative measures. However,
the tax burden remains below the median in the 'BB' category.
Spending-overruns have undermined consolidation efforts. The NFPS
deficit reached -3.9% of GDP in 2011, and Fitch expects only a
slow consolidation process in the coming two years due to
continued spending pressures and in the absence of a significant
revenue-enhancing tax reform.

El Salvador's debt burden increased further in 2011 and reached
52% of GDP (compared to 39% for the 'BB' median). Fitch expects
it to remain elevated and above the 'BB' median during the
forecast period. El Salvador's debt profile deteriorated due to a
build up in short-term debt (LETES), exposing the sovereign to
higher roll-over risks. Market access remains good, although
yields in the local market have increased since 2011.

El Salvador has lost access to funds under the IMF's Stand-By
Agreement (SBA) due to non-compliance with fiscal targets. While
the authorities treated this as a strictly precautionary
agreement, it did provide an anchor for the fiscal consolidation
strategy. Fitch notes that negotiations continue with the Fund
and are expected to result in some sort of agreement. The
government intends to maintain a SBA until the end of this
presidential period in June 2014.

Fitch does not expect to see a political gridlock between 2012
and 2014 related to the passage of the 2013 budget and additional
long-term borrowing. However, Fitch notes that that downside
risks are present as no single party has legislative majority and
political polarization remains high ahead of the 2014
Presidential elections.

El Salvador's ratings are supported by its macroeconomic
stability underpinned by dollarization, its adequately
capitalized financial system, and solid repayment record. At the
same time, the government has a strong track record in
implementing various tax reforms despite the low economic growth
environment.

Continued economic underperformance relative to peers, inability
to decisively cut debt burden over the forecast period, and
evidence of financing constraints could undermine
creditworthiness. On the other hand, ratings could stabilize if
growth performance improves and government debt burden is
reduced.



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


ALCO CORP: Aug. 29 Hearing on Amended Disclosure Statement
----------------------------------------------------------
U.S. Bankruptcy Judge Mildred Caban Flores will convene a hearing
Aug. 29, 2012 at 9:00 a.m. to consider the adequacy of the
disclosure statement in explaining the terms of Alco
Corporation's Chapter 11 plan.  Objections, if any, are due 14
days prior to the hearing.

A June 20 hearing was previously scheduled with respect to the
original version of the Disclosure Statement.

According to the First Amended Disclosure Statement dated
June 26, 2012, the Plan considers the full payment of all
administrative, secured creditors and priority claims and a 50%
dividend to the general unsecured creditors on monthly
installments within 5 years from the effective date.

The liquidation analysis shows that in a liquidation scenario,
the estimated dividend for the unsecured creditors is 21%
considering full liability to Mapfre.  In the event Mapfre's
claim is not owed, the 21% dividend will increase to 34%.  In
contrast, the Plan proposes that holders of general unsecured
claims estimated to aggregate $5.81 million will receive 50% of
their claims on monthly installments during a five-year term.

Mapfre claims to have a security interest over some of the
Debtor's assets as a consequence of an indemnity agreement.  The
Disclosure Statement says that the any liability to Mapfre is
"contingent and undetermined."  Any amounts owed to Mapfre will
be paid in full under the Plan with interest at the prime rate
existing on confirmation date or upon the sale of any collateral
that may guarantee the claim.

The Debtor listed Banco Popular de Puerto Rico as a secured
creditor owed $874,000.  The Debtor has paid BPPR $295,000 from
the proceeds of the sale of the asphalt plant located at Toa
Alta, Puerto Rico.  The parties are currently reconciling the
amounts owed by the Debtor.  The allowed claim, which is impaired
under the Plan, will be paid under an amortization table of 15
years at the prime rate existing at confirmation date, with
payments not less than $4,734 per month.

The owner -- LRG Investment Corp. -- will retain its equity
interest in the Debtor.

A copy of the Disclosure Statement dated June 26, 2012, is
available at http://bankrupt.com/misc/Alco_Corp_Amended_DS.pdf

                         About Alco Corp.

Alco Corporation in Dorado, Puerto Rico, filed for Chapter 11
bankruptcy (Bankr. D. P.R. Case No. 12-00139) on Jan. 12, 2012.
Carmen D. Conde Torres, Esq., and C. Conde & Associates represent
the Debtor in its restructuring effort.  Alco tapped Jimenez
Vasquez & Associates, PSC, as accountants.  The Debtor scheduled
$11.2 million in assets and $7.76 million in debts.  The petition
was signed by Alfonso Rodriguez, president.


REITTER CORP: Plan Confirmation Hearing on Oct. 2
-------------------------------------------------
Judge Enrique S. Lamoutte Inclan will convene a hearing on Oct. 2
at 10:00 a.m. in Old San Juan, Puerto Rico, to consider
confirmation of the Chapter 11 Plan of Reitter Corp.

The judge entered an order approving the explanatory disclosure
statement on July 12 and said confirmation objections are due 21
days prior to the hearing.

As reported by the Troubled Company Reporter, the Debtor on
March 27 filed an Amended Plan that will prevent the loss of over
300 direct and indirect jobs, and will result in the creation of
additional direct and indirect jobs while it will enable the
Debtor to continue providing healthcare services as successfully
as in the past.  The Plan's projected growth includes an increase
in jobs as well as beds.

Under the Second Amended Plan, the Debtor intends to make these
payments to creditors:

     1. Payment of all administrative expenses on the later of
        the Effective Date and the date the Administrative Claims
        become allowed.

     2. Secured Creditor Banco Popular Puerto Rico (BPPR) will be
        paid by Debtor and its claim treated pursuant to a Plan
        Settlement.

     3. Priority Secured Creditor will be paid by Debtor in
        full within 37 months from the Effective Date, plus
        the statutory interest rate.

     4. Payment of 100% of all allowed priority tax claims in
        monthly payments to be made within the sixth year of the
        date of assessment of each particular claim.

     5. Payment of 100% of all claims from holders of Executory
        contracts that are being assumed by Debtor within 36
        months from the Effective Date.

     6. Payment of approximately 1% of allowed unsecured claims
        in 36 monthly payments, without interest, to begin on the
        Effective Date or 30 days after the claim is allowed by a
        final order.

The Plan will be funded from the Operating Margin being generated
by the ongoing operation which, since the bankruptcy filing, has
improved to the point where all payroll taxes are being paid on
time, and the operating budget submitted to the bank is running
ahead of projections.  Furthermore, capital contributions from
Debtor's shareholders of at least $250,000 annually will be made
during the three years of the plan of reorganization in order to
fund the plan.

The classes and treatment of claims under the plan are:

     A. Class I consists of administrative expense claims
        amounting to approximately $113,254, will be paid in cash
        and in full on the later of the Effective Date or as soon
        as feasible after the claim becomes allowed.

     B. Class II consists of priority claims totaling $4,756,950
        will receive 100% of the allowed amount of the claim in
        in monthly payments within the sixth year of the date of
        assessment of each claim.

     C. Class III consists of The BPPR Allowed Secured Claim in
        the total amount of $9,955,887.67, and secured by
        substantially all of Debtor's assets, will be paid
        pursuant to a settlement agreement.

     D. Class IV consists of priority secured claim of the IRS in
        the total estimated amount of $959,292 and secured by
        Debtor's accounts receivable and equipment, will be paid
        in full as per the IRS Plan Settlement.

     E. Class V consists of unsecured creditors holders of
        executory contracts, which as of the Effective Date will
        only include Infomedika with claims totaling
        approximately $80,389.96.  The Infomedika contract is
        being assumed by the Debtor.  The claim will be paid
        arrears in 36 monthly payments concurrently with their
        monthly payment.

     F. Class VI consists of unsecured creditors with no
        executory contracts and claims totaling approximately
        $16,818,996.  Unsecured claims will be paid
        approximately 1% of their claim in 36 monthly payments
        beginning on the Effective Date of the Plan.

     G. Class VII consists of interests of common shareholders,
        who will retain their interest.

A full text copy of the Second Amended Disclosure Statement is
available for free at:

  http://bankrupt.com/misc/REITTER_CORPORATION_ds_2ndamended.pdf

                   About Reitter Corporation

San Juan, Puerto Rico-based Reitter Corporation dba Hospital San
Gerardo filed for Chapter 11 protection (Bankr. D. P.R. Case No.
10-07152) on Aug. 6, 2010.  In its schedules, the Debtor
disclosed US$20,440,765 in total assets and US$17,250,033 in
total debts.  Alexis Fuentes-Hernandez, Esq., at Fuentes Law
Offices, in San Juan, P.R., represents the Debtor as counsel.



===============
X X X X X X X X
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* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Md.
Contact:     1-703-739-0800
http://www.abiworld.org/

November 1-3, 2012
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Westin Copley Place, Boston, Mass.
Contact: http://www.turnaround.org/

Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
Contact:     1-703-739-0800
http://www.abiworld.org/

April 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott Chicago, Chicago, Ill.
Contact: http://www.turnaround.org/

October 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/



                            ***********


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
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 Peter Chapman at 240/629-3300.


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