TCRLA_Public/120806.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

             Monday, August 6, 2012, Vol. 13, No. 155


                            Headlines



A R G E N T I N A

AVAL RURAL XVII: Moody's Assigns 'B2' Rating to VRD Securities
TRANSPORTADORA GAS: Fitch Puts Junk Rating on $170.5-Mil. Notes


B E R M U D A

BERMUDA COMMERCIAL: Moody's Cuts Bank Fin'l. Strength Rating to D


B R A Z I L

MINAS GERAIS: Moody's Updates Information on Sr. Debenture Rating


C A Y M A N   I S L A N D S

AUDA ENHANCED: Shareholder to Receive Wind-Up Report on Aug. 17
AUDA GLOBAL: Shareholder to Receive Wind-Up Report on Aug. 17
AUDA STRATEGIC: Shareholder to Receive Wind-Up Report on Aug. 17
BALMORAL INTERNATIONAL: Member to Hear Wind-Up Report on Aug. 17
BBGP MANAGING: Shareholder to Hear Wind-Up Report on Aug. 27

BLUEBIRD LEASING: Member to Hear Wind-Up Report on Aug. 17
CROWN GREEN: Member to Hear Wind-Up Report on Aug. 17
HOWCROFT LIMITED: Member to Hear Wind-Up Report on Aug. 17
TUNSTALL OPPORTUNITIES: Shareholders' Meeting Set for Aug. 17
TURNBERRY INVESTMENTS: Member to Hear Wind-Up Report on Aug. 8


E C U A D O R

* ECUADOR: Gets US$10-Mil. IDB Loan for Financial Services


M E X I C O

HIPOTECARIA SU CASITA: S&P Cuts Ratings on 2 Note Classes to 'D'
MEXICANA AIRLINE: Bancomext Seeks Removal of Bankruptcy Judge


P U E R T O   R I C O

HOTEL AIRPORT: Taps Capital Consulting as Insolvency Advisors
LEHMAN BROTHERS: FirstBank Seeks Reconsideration on Claim Status


X X X X X X X X

* BOND PRICING: For the Week July 30 to Aug. 3, 2012


                            - - - - -


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A R G E N T I N A
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AVAL RURAL XVII: Moody's Assigns 'B2' Rating to VRD Securities
--------------------------------------------------------------
Moody's Latin America rates the VRD securities of Fideicomiso
Financiero Aval Rural XVII, which will be issued by Banco de
Valores acting solely in its capacity as issuer and trustee.

US$7,475,000 in VRD of Fideicomiso Financiero Aval Rural XVII,
rated B2 (Global scale, local currency) and A1.ar (National Scale
Rating)

As of August 2, the securities for this transaction have not yet
been placed in the market. If any assumption or factor Moody's
considers when assigning the ratings change before closing, the
ratings may also change.

Ratings Rationale

The rated securities will be backed by a pool of bills of exchange
signed by agricultural producers in Argentina. The bills of
exchange will be guaranteed by Aval Rural S.G.R., which is a
financial guarantor in Argentina. Aval Rural has a rating of A1.ar
(Argentine National Scale) and of B2 (Global Scale, Local
Currency).

The ratings assigned to this transaction are primarily based on
the rating of Aval Rural. Therefore, any future change in the
rating of the guarantor may lead to a change in the rating
assigned to this transaction.

Banco de Valores S.A. (Issuer and Trustee) will issue one class of
debt securities denominated in US dollars. The rated securities
will bear a 7% annual interest rate.

The rated securities will be repaid from cash flow arising from
the assets of the Trust, comprised among others, of a pool of
fixed rate bills of exchange denominated in US dollars, guaranteed
by Aval Rural S.G.R. The bills of exchange will bear the same
interest rate as the rated securities.

Although the rated securities (and the bills of exchange) are
denominated in US dollars, they are payable in Argentine pesos at
the exchange rate published by Banco de la Nacion Argentina as of
the day prior to the date that the funds are initially deposited
into the Trust account. As a result, the dollar is used as a
currency of reference and not as a mean of payment. For that
reason, the transaction is considered to be denominated in local
currency.

If, eight days before the final maturity date, the funds on
deposit in the trust account are not sufficient to make payments
to investors, the Trustee is obligated to request Aval Rural to
make payment under the bills of exchange. Aval Rural, in turn,
will have five days to make this payment into the trust account.
Under the terms of the transaction documents, the trustee has up
to two days to distribute interest and principal payments to
investors. Interest on the securities will accrue up to the date
on which the funds are initially deposited by either Aval Rural,
the exporter, or the individual producers into the Trust Account.


TRANSPORTADORA GAS: Fitch Puts Junk Rating on $170.5-Mil. Notes
---------------------------------------------------------------
Fitch Ratings has assigned Transportadora Gas del Norte's (TGN)
proposed exchange note offering of up to USD170.45 million seven-
year notes and up to USD56.8 million of claim protection notes an
expected rating of 'CCC(exp)' and a Recovery Rating of 'RR4'.
These new notes have been assigned a long-term national scale
rating of 'CCC(arg)'.  Upon completion of the debt restructuring,
Fitch will assign a local and foreign currency Issuer Default
Ratings (IDRs) of 'CCC'/'CCC (arg)'.

In conjunction, Fitch has taken the following rating actions:

  -- Foreign and Local Currency IDRs affirmed at 'D';

  -- National long-term rating affirmed at 'D(arg)';

  -- USD250 million notes series A, international scale rating
     downgraded to 'C/RR5' from 'CC/RR5', national scale rating
     affirmed at 'D(arg)';

  -- USD250 million notes series B, international scale rating
     downgraded to 'C/RR5' from 'CC/RR5', national scale rating
     affirmed at 'D(arg)';

  -- Equity national scale rating at 'Level 4'.

Fitch has withdrawn the rating of TGN's USD300 million medium-term
note program as there is no amount outstanding under it.

The new notes are part of TGN's proposal to restructure USD462.2
million of existing debt as of March 2012.  The 'CCC' expected
rating of the new USD170.45 million notes and USD56.8 million
claim protection notes reflect TGN's weak operating performance
and limited ability to generate cash.  The 'RR4' indicates a
recovery prospect of 31% - 50%, based on a liquidation analysis in
the event of a bankruptcy, as the expectation of a negative cash
flow, beginning next year, limits TGN's EBITDA based valuation.
For the purpose of this recovery analysis, Fitch has assumed a
100% acceptance to the exchange offer, and that TGN would
capitalize the maximum possible interest payments; which would
result in a pro forma debt of approximately USD260 million.

Fitch anticipates that TGN's ability to face interest payments on
the new debt will be extremely limited, as the company's ability
to generate cash has been severely affected by a tariff structure
frozen since 1999, inflation, limitation on gas exports and peso
depreciation.  Fitch notes that interests are expected to be
capitalized during the first three years and a portion to be
capitalized in year four.  However, absent a tariff increase, or
any additional source of funds, TGN's EBITDA is expected to be
negative in 2013 and increasing in magnitude over the next years.

TGN's foreign and local currency IDRs, and the national long-term
rating of 'D' / 'D (arg)' reflect the suspension of principal and
interest payments on USD345 million of principal by the company on
Dec. 23, 2008.  The 'C' rating of the 2012 notes reflects
exceptionally high levels of credit risk; the 'RR5' indicates the
expectation of below-average recovery prospects given default.
'RR5' indicates a probability of recovery of 11% - 30% of current
principal and related interest.  For the recovery analysis, Fitch
has performed a liquidation analysis in the event of a bankruptcy,
as this scenario seems more likely if the debt restructuring is
not closed.

Debt Restructuring

Existing creditors have been offered, per US$1000 of principal
amount tendered, a) USD329.45 / USD280.00 in cash, depending on
the time of the tender; b) USD494.2 in new step up notes, and c)
USD164.68 in claim protection notes.

Following the proposed debt restructuring, and assuming the
minimum 88% of acceptance, TGN's total debt is expected to be
reduced by approximately USD212 million to USD255 million, which
will include new step up notes for USD150 million, debt remaining
in default for approximately USD55 million and claim protection
notes for USD50 million.  TGN is expected to have a cash position
of around USD50 million following the proposed debt restructuring.

The new notes will carry a coupon rate that steps-up over the
course of the notes of 3.5% for years one and two, 7% for years
three and four, and 9% for years five through seven.  The interest
payment can be picked during the first three years, and there is a
minimum cash interest payment of 3.5% in year four, with the
option for TGN to capitalize the remainder. Principal will be
amortized in full at its maturity.

The Claim protection notes will be automatically cancelled on the
first anniversary of the debt restructuring settlement, without
any payment from TGN, provided that no event of default has
occurred.  Should they not be extinguished at that time, the claim
protection notes will mature seven years from the final settlement
date.  These notes will constitute a 0% coupon instrument.

The minimum threshold condition for the success of the debt
restructuring proposal is 88%, but TGN has the option to waive
this to 86.5%, without losing the creditors' consent.  The
exchange offer expires on Aug. 8 but could be extended until Aug.
17, without losing the creditors' consent.

TGN is one of the two largest transporters of natural gas in
Argentina, delivering approximately 40% of the country's total gas
consumption.  TGN has an exclusive license to operate the northern
Argentina gas pipeline system for a term of 35 years, which may be
extended for an additional 10-year period.  The Argentine
government has intervened into TGN's administration since December
2008.  The designated government's interventor is responsible for
supervising all actions related to the public service.  TGN's main
shareholders are Gasinvest S.A. (56.35%) and Blue Ridge
Investments LLC (23.53%), while 20% is floating in the market.
Gasinvest S.A. is in turn owned by TecPetrol Internacional SL
(27.2%), Total Gas y Electricidad Argentina S.A (20.6%), Petronas
Argentina S.A (18.3%).  Total Gasandes (6.6%), and Compania
General de Combustibles S.A. (27.2%).



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B E R M U D A
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BERMUDA COMMERCIAL: Moody's Cuts Bank Fin'l. Strength Rating to D
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of Bermuda
Commercial Bank Limited, including long-term deposits to Ba2 from
Baa3, short-term obligations to Not Prime from Prime-3, and the
standalone bank financial strength/baseline credit assessment to
D/ba2 from D+/baa3. The rating outlook is now stable. These rating
actions conclude the review for downgrade that commenced on
May 30, 2012.

Ratings Rationale

The downgrade reflects the increased risk that BCB has taken in
its asset base. In particular, BCB has built, in a fairly rapid
manner, a significant concentration in a portfolio of securities
with higher risk than its traditional investments. Moody's
believes that this resulted from both its changed ownership and
risk appetite, as well as pressure on profitability because of the
protracted low interest rate environment. Specifically, the
investment portfolio has grown from 5% of total assets at March
31, 2010 to 45% of total assets at March 31, 2012, and was
approximately three times tangible common equity at this date. As
well, a sizeable portion of this portfolio is invested in equities
and unrated or non-investment grade rated debt securities that
provide current revenue and income benefits in excess of BCB's
historical, conservative investments, but that also expose the
firm to considerable risks.

BCB's capital position and liquidity pool are currently quite
healthy. However, its securities portfolio concentration could
lead to unexpected losses that could materially reduce its capital
base and undermine confidence in the bank.

The downgrade also incorporates Moody's view of the firm's risk
governance challenges that result from its ownership by Permanent
Investment Limited (Permanent), as well as the management of its
investment portfolio by ICM Limited, a minority shareholder with
ties to Permanent. In Moody's opinion, this heightens risk that
the bank could take on additional risks to generate higher returns
on capital.

Moody's outlook on BCB is stable at its new rating level,
incorporating the asset and governance risks of the firm as well
as its solid capital and liquidity positions.

Moody's last rating action on Bermuda Commercial Bank Limited was
on May 30, 2012 when Moody's placed all ratings of Bermuda
Commercial Bank Limited on review for downgrade.

The principal methodology used in these ratings was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.

Bermuda Commercial Bank Limited is headquartered in Hamilton,
Bermuda with assets of US$ 535 million at March 31, 2012.



===========
B R A Z I L
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MINAS GERAIS: Moody's Updates Information on Sr. Debenture Rating
-----------------------------------------------------------------
Moody's America Latina announced that on July 31, 2012, it
received updated information from Banco Citibank, the lead
arranger of the senior debentures to be issued by Minas Gerais
Participacoes S.A and backed by reperforming ICMS taxes, regarding
a statement referencing Citibank in the rating agency's
communications related to this transaction.

The pre-sale report and press release dated July 19, 2012 and
July 30, 2012 announcing the ratings for this transaction state:

"Should the State of Minas Gerais (MG) not pay indemnification to
MGI and/or debenture investors, the resulting likely MGI debenture
default would also risk triggering cross default with other
outstanding debt of the State of MG (according to information
received by the arrangers), thereby incentivizing the State of MG
to honor its obligations under indemnification provision and/or
repurchase option of renegotiated assets."

According to the new updated information received by Citibank, no
due diligence on other outstanding debt of the State of Minas
Gerais has been performed to establish this statement as fact.
Also according to Citibank, the scope of analysis included a due
diligence of the Issuer and not the State of Minas Gerais.

Moody's notes that this new information does not have an impact on
the assigned provisional ratings. As described in the pre-sale
report, any new tax renegotiation program leading to actual
renegotiations would trigger mandatory indemnification payment
from the State of Minas Gerais to compensate MGI and/or Debenture
investors for damages as per transaction documents. The financial
strength of the State of MG to honor its financial obligations
such as the indemnification payments is consistent with the rating
assigned on the debentures.

Accordingly, Moody's has removed the above paragraph from the
republished Pre-Sale Report dated August 2, 2012.

On July 19, 2012, Moody's assigned provisional ratings of (P)Ba1
(sf) (Global Scale, Local Currency) and (P)Aa2.br (sf) (Brazilian
National Scale) to the senior debentures to be issued by Minas
Gerais Participacoes S.A., a securitization backed by a pool of
re-performing ICMS taxes owed by obligors to the State of Minas
Gerais.



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C A Y M A N   I S L A N D S
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AUDA ENHANCED: Shareholder to Receive Wind-Up Report on Aug. 17
---------------------------------------------------------------
The shareholder of Auda Enhanced Fund Ltd. will receive on
Aug. 17, 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:

         Ogier
         c/o Jo-Anne Maher
         Telephone: (345) 815-1762
         Facsimile: (345) 949-9877


AUDA GLOBAL: Shareholder to Receive Wind-Up Report on Aug. 17
-------------------------------------------------------------
The shareholder of Auda Global Ltd. will receive on Aug. 17, 2012,
at 10:10 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         Ogier
         c/o Jo-Anne Maher
         Telephone: (345) 815-1762
         Facsimile: (345) 949-9877


AUDA STRATEGIC: Shareholder to Receive Wind-Up Report on Aug. 17
----------------------------------------------------------------
The shareholder of Auda Strategic Growth Fund Ltd. will receive on
Aug. 17, 2012, at 10:05 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

         Ogier
         c/o Jo-Anne Maher
         Telephone: (345) 815-1762
         Facsimile: (345) 949-9877


BALMORAL INTERNATIONAL: Member to Hear Wind-Up Report on Aug. 17
----------------------------------------------------------------
The member of Balmoral International Ltd will receive on Aug. 17,
2012, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

         Commerce Corporate Services Limited
         Telephone: 949 8666
         Facsimile: 949 0626
         PO Box 694 Grand Cayman
         Cayman Islands


BBGP MANAGING: Shareholder to Hear Wind-Up Report on Aug. 27
------------------------------------------------------------
The shareholder of BBGP Managing General Partner Limited will
receive on Aug. 27, 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:

         K.D. Blake
         c/o Chris Van de Water
         Telephone: 345-815-2645/ 345-949-4800
         Facsimile: 345-949-7164
         P.O. Box 493 Grand Cayman KY1-1106
         Cayman Islands


BLUEBIRD LEASING: Member to Hear Wind-Up Report on Aug. 17
----------------------------------------------------------
The member of Bluebird Leasing Limited will receive on Aug. 17,
2012, at 11:00 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

         Annie Chapman
         69 Dr. Roy's Drive
         PO Box 1043, George Town Grand Cayman KY1-1102
         Cayman Islands


CROWN GREEN: Member to Hear Wind-Up Report on Aug. 17
-----------------------------------------------------
The member of Crown Green Limited will receive on Aug. 17, 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:

         Annie Chapman
         69 Dr. Roy's Drive
         PO Box 1043, George Town Grand Cayman KY1-1102
         Cayman Islands


HOWCROFT LIMITED: Member to Hear Wind-Up Report on Aug. 17
----------------------------------------------------------
The member of Howcroft Limited will receive on Aug. 17, 2012, at
12:00 noon, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         Annie Chapman
         69 Dr. Roy's Drive
         PO Box 1043, George Town Grand Cayman KY1-1102
         Cayman Islands


TUNSTALL OPPORTUNITIES: Shareholders' Meeting Set for Aug. 17
-------------------------------------------------------------
The shareholders of Tunstall Opportunities Fund, Ltd. will hold
their final meeting on Aug. 17, 2012, at 12:45 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


TURNBERRY INVESTMENTS: Member to Hear Wind-Up Report on Aug. 8
--------------------------------------------------------------
The member of Turnberry Investments Limited will receive on
Aug. 8, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         Edward Allanby
         c/o Maples and Calder, Attorneys-at-law
         PO Box 309, Ugland House
         Grand Cayman KY1-1104
         Cayman Islands



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E C U A D O R
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* ECUADOR: Gets US$10-Mil. IDB Loan for Financial Services
----------------------------------------------------------
Low-income Ecuadorians living in remote areas will have access to
better financial services in a project supported by a $10 million
Inter-American Development Bank (IDB) loan.

The project seeks to benefit more than 200,000 new low-income
users of financial services in remote areas.  By 2016 more 2.8
million new financial transactions are expected to be generated by
the strengthening intermediate financial institutions-the Popular
Finance Structures and the National Payment System.  In addition,
the program will reduce average processing time per transaction in
the National Payment System from 300 to 180 minutes.

"Access to financial services plays a critical development role by
promoting economic growth, reducing inequality of incomes, and
improving conditions for families living in poverty," said
Cristina Pailhe, IDB project team leader.  "The objective is to
provide the population with access to a range of low-cost services
such as savings, payments and transfers."

The project will include two components.  The first consists of a
grant fund to support financial inclusion that will be
administered by the Central Bank of Ecuador.  The latter will co-
finance projects for technical assistance, procurement, services,
and activities needed to expand the supply of financial services.

The second component is the implementation of the new National
Payments System, which will strengthen payment infrastructure
through the purchase of hardware, software development and
acquisition, training, and dissemination to financial
institutions.

The IDB loan is for a term of 25 years, a grace period of 12.6
years, and an interest rate based on LIBOR.



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M E X I C O
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HIPOTECARIA SU CASITA: S&P Cuts Ratings on 2 Note Classes to 'D'
----------------------------------------------------------------
Standard & Poor's Rating Services lowered its long-term national
scale rating (CaVal) to 'D (sf)' from 'mxCCC (sf)' on the
subordinated class B notes from Hipotecaria Su Casita-Residential
Mortgage Backed Notes due 2035, a cross-border RMBS transaction
issued by Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R. (Su
Casita) and serviced by Patrimonio, S.A. de C.V. S.F.O.L.
(Patrimonio). "At the same time, we affirmed our global scale 'B
(sf)' rating on the senior class A notes because it received its
full scheduled interest payment due to the swap
agreement provided by Credit Suisse AG (Credit Suisse,
A+/Negative), and to the swap guarantee provided by MBIA Insurance
Corp. (B/Negative/--). We did, however, lower our Standard &
Poor's underlying rating (SPUR) on the class A notes to 'D (sf)'
from 'CCC+ (sf)'," S&P said.

"The downgrade of the subordinated class B notes to 'D (sf)'
reflects the missed interest payment on this class on its July 27,
2012, payment date. The class missed the interest payment because
interest collections from mortgage loans were not sufficient to
cover the payment in full. The interest shortfall on class B was
MXN1.249 million," S&P said.

"Class A benefits from a swap agreement. According to the
agreement, the indenture trust pays Mexican peso (MXN) amounts
(indexed to UDIs) to the swap provider, Credit Suisse (through its
Cayman Islands branch) to cover the notional interest and required
principal under the swap agreement. The swap provider converts
these MXN amounts into U.S. dollars and deposits them into the
U.S. distribution trust account to pay debt service on the class A
notes. Class A also benefits from a full financial guarantee
insurance policy from MBIA that has two components: a swap
guarantee, which covers the trust's payments to the swap provider,
and a note guarantee, which covers all the trust's payments to the
class A investors," S&P said.

"On the July 27 payment date, interest collections received were
insufficient to cover the notional interest MXN amounts required
under the swap agreement. Nevertheless, the senior class A
received its full scheduled interest payment due to the swap
agreement from Credit Suisse. It is intended that this shortfall
is covered from next payment date flows, if these are not
sufficient, MBIA, as the swap guarantor, will cover these amounts
to Credit Suisse. While we affirmed our issue rating of 'B (sf)'
on class A due to the financial guarantee provided by MBIA, we
lowered our SPUR to 'D (sf)' because interest collections alone
would have been insufficient to fully cover the interest payment,"
S&P said.

"Under our criteria, the issue rating on an insured bond reflects
the higher of the rating on the bond insurer or the SPUR on the
security. Our SPUR ratings on classes with full bond insurance
reflect the stand-alone capacity of an issue to pay debt service
without giving effect to the external enhancement, in this case,
without the protection given by the bond insurance provided by
MBIA," S&P said.

"The notes were issued on April 2, 2007, in two tranches: class A
was issued for $232.53 million and pays monthly interest at one-
month LIBOR plus 0.23% and class B was issued for MXN226.5
million, indexed to UDIs, and pays monthly interest at 6.47% over
the UDI-indexed balance. In December 2010, Su Casita was replaced
by Patrimonio as primary servicer for the transaction," S&P said.

Ratings Lowered

Hipotecaria Su Casita-Residential Mortgage Backed Notes
           Class      Rating            Outs. amount
Class      type   To        From        (mil.)
B          Sub.   D (sf)    mxCCC (sf)   MXN184.97
A          SPUR   D (sf)    CCC+ (sf)    USD112.76

Rating Affirmed

Hipotecaria Su Casita-Residential Mortgage Backed Notes
         Class                   Outs. amount
Class    type       Rating       (mil.)
A        Senior     B (sf)        USD112.76


MEXICANA AIRLINE: Bancomext Seeks Removal of Bankruptcy Judge
-------------------------------------------------------------
Fox News Latino reports that Mexican state-owned bank Bancomext,
one of the main creditors of bankrupt airline Compania Mexicana de
Aviacion or Mexicana Airlines, said it is seeking the removal of
the judge handling the company's debt-restructuring process.

Bancomext said in a statement that it made the request "due to the
harm the delay in the airline's bankruptcy proceedings represents
for Mexicana de Aviacion's creditors and workers," according to
Fox News Latino.

The report relates that the bank said it filed a complaint with
the Federal Judiciary Council, which oversees Mexico's courts, due
to "delays and lack of fulfillment of certain procedures in
Mexicana de Aviacion's bankruptcy proceedings."

Fox News Latino notes that the complaint also was signed by three
other Mexicana creditors: Aeropuertos y Servicios Auxiliaries, the
state-owned corporation that manages Mexico's airports; Mexico
City's international airport; and Mexico's Federal Consumer
Protection Agency.

Fox News Latino discloses that Bancomext lamented that "the
company's assets continue to deteriorate to the detriment of its
creditors and workers" due to uncertainties stemming from the
delays.

The bank also termed "unacceptable" the lack of results in terms
of "serious and viable financial alternatives to prevent the
liquidation of Mexicana de Aviacion and make possible the
resumption of operations," Fox News Latino relates.

Fox News Latino relays that Bancomext called for a rapid solution
to this problem, which "has gone on too long" and adversely
affected the value of the airline's assets.

Fox News Latino notes that it also described as "timely" the
Mexican government's proposal to replace Mexicana's administrator
and conciliator, noting "the lack of progress in reaching a
creditors' agreement."

Mexico's Communications and Transportation Secretariat proposed
replacing the administrator and conciliator in Mexicana's
bankruptcy proceedings, Gerardo Badin, due to the lack of
agreements with creditors in a process dating back two years, Fox
News Latino adds.

                    About Mexicana Airlines

Compania Mexicana de Aviacion or Mexicana Airlines --
http://www.mexicana.com/--is a privately held airline and a
subsidiary of Nuevo Grupo Aeronautico.  Founded in 1921, Mexicana
is the oldest commercial carrier in North America.  Charles
Lindbergh piloted the first trip for Mexicana between
Brownsville, Texas, and Mexico City.

Grupo Mexicana de Aviacion is the parent of Compania Mexicana.
Two other units are Aerovias Caribe S.A. de C.V. (Mexicana Click)
and Mexicana Inter S.A. de C.V. (Mexicana Link).

Compania Mexicana de Aviacion or Mexicana Airlines, Mexico's
largest airline, filed for bankruptcy in the U.S. and Mexico on
Aug. 2, 2010.  In the U.S., the company filed in the U.S.
Bankruptcy Court in Manhattan for Chapter 15 bankruptcy
protection (case no. 10-14182), and in Mexico, it filed for the
equivalent of Chapter 11.

Maru E. Johansen, foreign representative of Compania Mexicana,
estimated in the Chapter 15 petition that the company has assets
of US$500 million to US$1 billion and debts of more than US$1
billion.  William C. Heuer, Esq., at Duane Morris LLP, serves as
counsel to Ms. Johansen.

Mexicana de Aviacion stated that despite its bankruptcy filing,
it expects to continue to operate normally, and that such filings
did not affect the operations of Click Mexicana and Mexicana
Link, which are independent companies from Mexicana de Aviacion.



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P U E R T O   R I C O
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HOTEL AIRPORT: Taps Capital Consulting as Insolvency Advisors
-------------------------------------------------------------
Hotel Airport, Inc., asks the U.S. Bankruptcy Court for the
District of Puerto Rico for permission to employ Javier Hernandez
Scimeca, CPA, CIRA, and the accounting firm of Capital Consulting
& Associates, PSC., as its insolvency and restructuring advisors.
The Debtor tells the Court that Capital Consulting and its
Consulting Director, Javier Hernandez Scimeca, will assist the
Debtor in the areas of Plan Development, Liquidation Analysis,
Claims Administration, Feasibility, Negotiations, Investment,
Financing in connection with its Chapter 11 proceedings.

The Debtor believes that Capital Consulting & Associates, PSC, and
Mr. Scimeca do not hold or represent any interest adverse to its
estate and are a disinterested party as required by 11 U.S.C.
327(a).

The rates that will be used by Debtor to compensate Capital
Consulting will be those approved by Debtor and the Court of
interim and/or final applications for services under 11 U.S.C.,
Sections 330 and 331, and applicable Local Bankruptcy Rules 2016.
A deposit of $2,000 has been agreed as a retainer.

                       About Hotel Airport

Hotel Airport Inc., in San Juan, Puerto Rico, filed for Chapter 11
bankruptcy (Bankr. D. P.R. Case No. 11-06620) on Aug. 5, 2011.
Judge Enrique S. Lamoutte Inclan oversees the case.  Edgardo
Munoz, PSC, in San Juan, P.R., serves as bankruptcy counsel.
Francisco J. Garrido Molina serves as its accountant, and RS&
Associates as external auditors to perform auditing services.  The
Debtor disclosed US$8,547,993 in assets and US$171,169,392 in
liabilities as of the Chapter 11 filing.  The petition was signed
by David Tirri, its president.

The Debtor's plan provides that holders of administrative expense
claims and priority claims will be paid in full on the Plan's
effective date.

The Plan will be substantially funded by the Debtor's assets and
income from the operation of business.  The Plan proposes a merger
between the Debtor/HAI and and its parent, CAF, whereby a single
entity -- CAF -- will emerge.


LEHMAN BROTHERS: FirstBank Seeks Reconsideration on Claim Status
----------------------------------------------------------------
FirstBank Puerto Rico asked the U.S. Bankruptcy Court in
Manhattan to reconsider the decision by Lehman Brothers Inc.'s
trustee denying customer status to the bank's claim.

Earlier, James Giddens, the trustee appointed to liquidate the
brokerage, denied FirstBank's claim, arguing it was a duplicate
or an amendment of another claim filed by Lehman Brothers
Holdings Inc. and its affiliated debtors.

FirstBank asserts a claim against the Lehman brokerage for
approximately $61.5 million.  The claim is based on government
securities, which the bank entrusted to the brokerage for
safekeeping and for use as collateral for swap deals with the
Lehman Brothers Special Financing Inc.

FirstBank's lawyer said the bank has a "valid customer" claim
against the brokerage because it entrusted the securities to the
brokerage for safekeeping and for use as collateral.

"LBI clearly agreed to this tri-party custodial relationship, by
accepting the transfer of FirstBank's securities and by serving
as the custodian, bank account holder and back office for all of
LBSF's swap transactions," said Richard Miller, Esq., at K&L
Gates LLP, in New York.

Mr. Miller said custodial relationships with broker-dealers have
been recognized as subject to the customer protection rules and
customer status.

"The tri-party custodial relationship at issue here is entitled
to the same protection," Mr. Miller said in court papers.  "A
secured swap that involves the entrustment of government
securities to a registered broker-dealer, as the client's own
property, clearly is a fiduciary customer relationship under
federal and state securities laws."

A court hearing is scheduled for August 15.  Objections are due
by August 8.

                       About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was
the fourth largest investment bank in the United States.  For
more than 150 years, Lehman Brothers has been a leader in the
global financial markets by serving the financial needs of
corporations, governmental units, institutional clients and
individuals worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy Sept. 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy
petition disclosed US$639 billion in assets and US$613 billion in
debts, effectively making the firm's bankruptcy filing the
largest in U.S. history.  Several other affiliates followed
thereafter.

Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset
LLC sought for bankruptcy protection in December 2009.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at
Weil, Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.

On Sept. 19, 2008, the Honorable Gerard E. Lynch of the U.S.
District Court for the Southern District of New York, entered an
order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.

The Bankruptcy Court approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion.  Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for US$2 plus the
retention of most of employees.  Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.

Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history.  Lehman is set to make its first payment to creditors
under its $65 billion payout plan on April 17, 2012.

               International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers
International (Europe) on Sept. 15, 2008.  The joint
administrators have been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan
Inc. filed for bankruptcy in the Tokyo District Court on
Sept. 16.  Lehman Brothers Japan Inc. reported about JPY3.4
trillion (US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates.  (http://bankrupt.com/newsstand/or 215/945-700)



===============
X X X X X X X X
===============


* BOND PRICING: For the Week July 30 to Aug. 3, 2012
----------------------------------------------------

Issuer              Coupon       Maturity    Currency     Price
------              ------      --------     --------     -----

ARGENTINA
---------

ARGENT-$DIS              8.28   12/31/2033    USD          58.99
ARGENT-$DIS              8.28   12/31/2033    USD             64
ARGENT-$DIS              8.28   12/31/2033    USD             66
ARGENT-PAR               1.18   12/31/2038    ARS          39.22
ARGENT- DIS              7.82   12/31/2033    EUR          53.25
ARGENT- DIS              7.82   12/31/2033    EUR             53
ARGENT- DIS              7.82   12/31/2033    EUR           52.5
ARGENT- DIS              4.33   12/31/2033    JPY             42
ARGENT- PAR              0.45   12/31/2038    JPY             15
ARGENT- PAR&GDP          0.45   12/31/2038    JPY              8
ARGNT-BOCON PRE9            2   3/15/2014     ARS           63.5
BANCO MACRO SA           9.75   12/18/2036    USD             69
BANCO MACRO SA           9.75   12/18/2036    USD          68.75
BANCO MACRO SA           9.75   12/18/2036    USD             60
BONAR X                     7   4/17/2017     USD           74.5
CAPEX SA                   10   3/10/2018     USD           61.2
CAPEX SA                   10   3/10/2018     USD          59.38
CHUBUT RGLS HIDR         7.75   7/1/2020      USD          74.05
EMP DISTRIB NORT         9.75   10/25/2022    USD             35
EMP DISTRIB NORT         9.75   10/25/2022    USD          34.75
EMP DISTRIB NORT         10.5   10/9/2017     USD          42.54
PROV BUENOS AIRE        9.625   4/18/2028     USD          52.15
PROV BUENOS AIRE        9.625   4/18/2028     USD          52.25
PROV BUENOS AIRE        9.375   9/14/2018     USD          57.42
PROV BUENOS AIRE       10.875   1/26/2021     USD          58.59
PROV BUENOS AIRE        9.375   9/14/2018     USD          56.88
PROV BUENOS AIRE       10.875   1/26/2021     USD          58.07
PROV BUENOS AIRE        11.75   10/5/2015     USD          73.75
PROV BUENOS AIRE         9.25   4/15/2017     USD          75.45
PROV BUENOS AIRE        11.75   10/5/2015     USD          74.45
PROV BUENOS AIRE         9.25   4/15/2017     USD           74.5
PROV DE CORDOBA        12.375   8/17/2017     USD          66.02
PROV DE CORDOBA        12.375   8/17/2017     USD          65.83
PROV DE FORMOSA             5   2/27/2022     USD          60.38
PROV DE MENDOZA           5.5   9/4/2018      USD          70.51
PROV DE MENDOZA           5.5   9/4/2018      USD          71.88
PROV DEL CHACO              4   12/4/2026     USD             27
PROV DEL CHACO              4   11/4/2023     USD             53
RAGHSA CONSTRUCC          8.5   2/16/2017     USD             80
TRANSENER                9.75   8/15/2021     USD             45
TRANSENER                9.75   8/15/2021     USD          35.88
TRANSPORT DE GAS        7.875   5/14/2017     USD           73.5


BRAZIL
------

BANCO BONSUCESSO         9.25   11/3/2020     USD           67.5
BANCO BONSUCESSO         9.25   11/3/2020     USD          65.25
BANCO CRUZEIRO          8.875   9/22/2020     USD          39.75
BANCO CRUZEIRO          8.875   9/22/2020     USD          39.63
BANCO CRUZEIRO            8.5   2/20/2015     USD           56.5
BANCO CRUZEIRO          7.625   4/21/2014     USD             58
BANCO CRUZEIRO              7   7/8/2013      USD           56.5
BANCO CRUZEIRO           8.25   1/20/2016     USD             58
BANCO CRUZEIRO            8.5   2/20/2015     USD           56.5
BANCO CRUZEIRO           8.25   1/20/2016     USD             58
BANCO CRUZEIRO              8   9/17/2012     USD          69.62
CESP                     9.75   1/15/2015     BRL          72.27
REDE EMPRESAS          11.125                 USD           47.5
REDE EMPRESAS          11.125                 USD             47
REDE EMPRESAS          11.125                 USD             47


CAYMAN ISLAND
-------------

BANCO BPI (CI)           4.15   11/14/2035    EUR          57.63
BCP FINANCE BANK         5.01   3/31/2024     EUR          54.75
BCP FINANCE BANK         5.31   12/10/2023    EUR          57.38
BCP FINANCE CO          5.543                 EUR          25.02
BCP FINANCE CO          4.239                 EUR          25.02
BES FINANCE LTD          5.58                 EUR          38.67
BES FINANCE LTD           4.5                 EUR          50.17
CAM GLOBAL FIN           6.08   12/22/2030    EUR           55.5
CHINA FORESTRY          10.25   11/17/2015    USD          58.38
CHINA FORESTRY          10.25   11/17/2015    USD           58.2
CHINA SUNERGY            4.75   6/15/2013     USD             74
EFG HELLAS CAYMA            9   6/8/2019      EUR          52.38
EFG ORA FUNDING           1.7   10/29/2014    EUR           51.1
ESFG INTERNATION        5.753                 EUR          33.13
GOL FINANCE              8.75                 USD          72.75
GOL FINANCE              8.75                 USD          71.38
JINKOSOLAR HOLD             4   5/15/2016     USD          42.81
LDK SOLAR CO LTD         4.75   4/15/2013     USD           49.5
LDK SOLAR CO LTD         4.75   4/15/2013     USD           65.1
LUPATECH FINANCE        9.875                 USD           63.5
LUPATECH FINANCE        9.875                 USD           66.5
MARFRIG OVERSEAS          9.5   5/4/2020      USD             77
RENHE COMMERCIAL           13   3/10/2016     USD           59.5
RENHE COMMERCIAL           13   3/10/2016     USD          50.88
RENHE COMMERCIAL        11.75   5/18/2015     USD          52.99
RENHE COMMERCIAL        11.75   5/18/2015     USD          52.75
SHINSEI FIN CAYM        6.418                 USD          73.75
SHINSEI FIN CAYM        6.418                 USD          73.75
SHINSEI FINANCE          7.16                 USD          73.75
SHINSEI FINANCE          7.16                 USD          73.75
SOLARFUN POWER H          3.5   1/15/2018     USD          72.25
SOLARFUN POWER H          3.5   1/15/2018     USD          72.12
SUNTECH POWER               3   3/15/2013     USD          69.44
SUNTECH POWER               3   3/15/2013     USD             69


CHILE
-----

CGE DISTRIBUCION         3.25   12/1/2012     CLP          9.984
COLBUN SA                 3.2   5/1/2013      CLP          49.73
QUINENCO SA               3.5   7/21/2013     CLP          12.41


PUERTO RICO
-----------

PUERTO RICO CONS          6.2   5/1/2017      USD             63
PUERTO RICO CONS          6.5   4/1/2016      USD          65.63


VENEZUELA
---------

ELEC DE CARACAS           8.5   4/10/2018     USD          71.75
PETROLEOS DE VEN          5.5   4/12/2037     USD          57.15
PETROLEOS DE VEN        5.375   4/12/2027     USD           58.1
PETROLEOS DE VEN         9.75   5/17/2035     USD          70.54
PETROLEOS DE VEN         5.25   4/12/2017     USD          72.26
PETROLEOS DE VEN        5.125   10/28/2016    USD          73.93
PETROLEOS DE VEN            9   11/17/2021    USD          76.25
VENEZUELA                   7   3/31/2038     USD          64.27
VENEZUELA                   7   3/31/2038     USD           66.5
VENEZUELA                   6   12/9/2020     USD          68.25
VENEZUELA                7.65   4/21/2025     USD           70.5
VENEZUELA                8.25   10/13/2024    USD           74.5



                            ***********


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.


                   * * * End of Transmission * * *