TCRLA_Public/130515.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

           Wednesday, May 15, 2013, Vol. 14, No. 95


                            Headlines



B R A Z I L

* BRAZIL: To Receive $200 Million IDB Fund for Education System


C A Y M A N  I S L A N D S

ALLIANCEBERNSTEIN GLOBAL: Creditors' Proofs of Debt Due May 24
CDH LIMITED: Commences Liquidation Proceedings
CHINA MILK: Placed Under Voluntary Wind-Up
CROSS STAFF: Creditors' Proofs of Debt Due May 23
CURLEW LIMITED: Commences Liquidation Proceedings

DDL LIMITED: Commences Liquidation Proceedings
F.V.E. ASSOCIATES: Commences Liquidation Proceedings
GARNET LIMITED: Commences Liquidation Proceedings
HARBER LIMITED: Commences Liquidation Proceedings
INTERNATIONAL TRADING: Placed Under Voluntary Wind-Up

MARINER-AROYA: Creditors' Proofs of Debt Due Today
MARINER-AROYA: Shareholder to Hear Wind-Up Report on May 17
MITSUI MULTI-STRATEGY: Commences Liquidation Proceedings
NEW STAR: Creditors' Proofs of Debt Due May 23
NEW STAR MASTER: Creditors' Proofs of Debt Due May 23

ZAM SPECIALIST: Creditors' Proofs of Debt Due May 23


G U A T E M A L A

BANCO DE LOS TRABAJADORES: Moody's Assigns Ba3 Deposit Ratings


J A M A I C A

OLINT: Glimmer of Hope for Investors


M E X I C O

COZUMEL CARIBE: New York Court Narrows Suit v. Chartis
ULTRAPETROL (BAHAMAS): S&P Affirms 'B-' Corporate Credit Rating
* S&P Raises Rating on 3 Series From 2 MBIA-Insured Transactions


T R I N I D A D  &  T O B A G O

CARIBBEAN AIR: Can Receive US$200 Million Write-off of its Losses


                            - - - - -


===========
B R A Z I L
===========


* BRAZIL: To Receive $200 Million IDB Fund for Education System
---------------------------------------------------------------
The Brazilian state of Para will receive significant support from
the Inter-American Development Bank (IDB) to improve access to
quality basic education, the IDB said.  The Bank has approved a
loan of over $200 million that will fund school construction,
remedial education, teacher training, evaluation and monitoring
systems among other projects.  Hundreds of thousands of students
living in Brazil's second largest state are expected to benefit
from the program financed by this loan.

The Program is the backbone of the recently launched Para
Education Compact (PEC), a state's initiative that brings together
municipalities, civil society and private sector to support the
long term effort needed to improve the quality of basic education
in the state.

Only 31 percent of 19-year-olds in Para have completed secondary
school, a figure that is far inferior to the decidedly low
national average of 50 percent.  Academic underachievement
precipitated by poor quality education is the leading cause of
school dropout in Brazil.  The IDB, in partnership with the
Secretariat of Education of the State of Para (SEDUC), aims to
increase statewide graduation rates by increasing the availability
and quality of secondary and vocational education.

Dangerous and insufficient school infrastructure has also
influenced dropout rates in Para with 40 percent of educational
facilities urgently requiring improvements.  The new IDB loan will
finance the construction of 30 secondary schools and 2 vocational
schools, and the renovation of another 350 schools, opening up
quality educational opportunities to over 42,000 underserved
students in the state.

Learning acceleration and educational reinforcement programs for
students, as well as professional development for teachers, will
be implemented to reduce failure and dropout rates.  In addition
to the academic performance goals set for students, the program is
designed to improve young beneficiaries' self-esteem and socio
emotional skills.  Recent IDB research shows that these skills are
crucial to preparing students for a successful transition from
school to the workforce.  In the coming years, domestic and
foreign investments in mining, transportation and tourism are
expected to create hundreds of thousands of jobs in Para but low
education levels among workers threaten potential economic and
development gains; only 56 percent of the workforce has completed
primary school.

Encompassing 15 percent of the country, Para is Brazil's second
largest state by geographic area.  It has a population of 7.6
million, 70 percent of whom live in urban areas.  Due to its sheer
size and unique geographical features, Para faces logistical
challenges that have compromised education access and quality in
the state.  This program responds to the ambitious objectives of
the recent Brazilian National Educational Plan and complements the
IDB's existing partnership with Brazil intended to promote social
inclusion through the education sector.

The IDB loan is for a 25-year term, with a 5.5-year grace period
and an interest rate based on LIBOR.  Local counterpart funds
total $150.6 million.



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


ALLIANCEBERNSTEIN GLOBAL: Creditors' Proofs of Debt Due May 24
--------------------------------------------------------------
The creditors of Alliancebernstein Global Diversified Strategies
Ltd. - Hedge Fund A are required to file their proofs of debt by
May 24, 2013, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on April 4, 2013.

The company's liquidator is:

          Intertrust Corporate Services (Cayman) Limited
          190 Elgin Avenue
          George Town
          Grand Cayman, KY1-9005
          Cayman Islands
          c/o Kim Charaman
          Telephone: (345) 914 3207


CDH LIMITED: Commences Liquidation Proceedings
----------------------------------------------
On April 10, 2013, the shareholder of CDH Limited passed a
resolution that voluntarily liquidates the company's business.

The company's liquidator is:

          Eagle Holdings Ltd.
          c/o PO Box 487 Grand Cayman
          Cayman Islands
          Telephone: +1 (345) 914 6365


CHINA MILK: Placed Under Voluntary Wind-Up
------------------------------------------
On April 9, 2013, the Grand Court of the Cayman Islands entered an
order to wind up the operations of China Milk Products Group
Limited.

The company's liquidators are:

          Kenneth M. Krys
          KRyS Global
          Governors Square Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          PO Box 31237, Grand Cayman KY1-1205
          Cayman Islands;

          Cosimo Borrelli
          Borrelli Walsh Limited
          Level 17, Tower 1, Admiralty Centre
          18 Harcourt Road
          Hong Kong; and

          Jason Kardachi
          Borrelli Walsh Pte Limited
          14-04 City House, 36 Robinson Road
          Singapore


CROSS STAFF: Creditors' Proofs of Debt Due May 23
-------------------------------------------------
The creditors of Cross Staff Protected Profits Plus Bond Fund Ltd.
are required to file their proofs of debt by May 23, 2013, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on April 8, 2013.

The company's liquidator is:

          Michael Penner
          Grant Hiley
          Deloitte & Touche
          Citrus Grove Building, 4th Floor
          Goring Avenue
          George Town KY1-1109
          Cayman Islands
          Telephone: +1 (345) 814 2353
          Facsimile: +1 (345) 949 8258


CURLEW LIMITED: Commences Liquidation Proceedings
-------------------------------------------------
On April 5, 2013, the shareholders of Curlew Limited passed a
resolution that voluntarily liquidates the company's business.

Only creditors who were able to file their proofs of debt by
May 10, 2013, will be included in the company's dividend
distribution.

The company's liquidator is:

          Charles Gary Hepburn
          c/o Wardour Management Services Limited
          Telephone: (345) 945 3301
          Facsimile: (345) 945 3302
          P O Box 10147, Grand Cayman KY1-1002
          Caymans Islands


DDL LIMITED: Commences Liquidation Proceedings
----------------------------------------------
On April 10, 2013, the shareholder of DDL Limited passed a
resolution that voluntarily liquidates the company's business.

The company's liquidator is:

          Eagle Holdings Ltd.
          c/o PO Box 487 Grand Cayman
          Cayman Islands
          Telephone: +1 (345) 914 6365


F.V.E. ASSOCIATES: Commences Liquidation Proceedings
----------------------------------------------------
On April 2, 2013, the sole shareholder of F.V.E. Associates
(Cayman) passed a resolution that voluntarily liquidates the
company's business.

The company's liquidator is:

          Weerhaan Investments II Limited
          c/o Eric T. Converse
          6893 Sladek Road
          New Hope
          Pennsylvania 18938
          United States of America
          Telephone: +1 (215) 297 8415
          E-mail: Eric.Converse@Nedamcocapital.com


GARNET LIMITED: Commences Liquidation Proceedings
-------------------------------------------------
On April 5, 2013, the shareholders of Garnet Limited passed a
resolution that voluntarily liquidates the company's business.

Only creditors who were able to file their proofs of debt by
May 10, 2013, will be included in the company's dividend
distribution.

The company's liquidator is:

          Charles Gary Hepburn
          c/o Wardour Management Services Limited
          Telephone: (345) 945 3301
          Facsimile: (345) 945 3302
          P O Box 10147, Grand Cayman KY1-1002
          Caymans Islands


HARBER LIMITED: Commences Liquidation Proceedings
-------------------------------------------------
On April 10, 2013, the shareholder of Harber Limited passed a
resolution that voluntarily liquidates the company's business.

The company's liquidator is:

          Eagle Holdings Ltd.
          c/o PO Box 487 Grand Cayman
          Cayman Islands
          Telephone: +1 (345) 914 6365


INTERNATIONAL TRADING: Placed Under Voluntary Wind-Up
-----------------------------------------------------
On April 8, 2013, the shareholders of International Trading and
Chartering Limited passed a resolution to voluntarily wind up the
company's operations.

Only creditors who were able to file their proofs of debt by
May 13, 2013, will be included in the company's dividend
distribution.

The company's liquidator is:

          Royhaven Secretaries Limited
          c/o Julie Reynolds
          Telephone: 945 4777
          Facsimile: 945 4799
          P O Box 707 Grand Cayman KY1-1107
          Cayman Islands


MARINER-AROYA: Creditors' Proofs of Debt Due Today
--------------------------------------------------
The creditors of Mariner-Aroya Opportunity Master Fund, Ltd. are
required to file their proofs of debt today, May 15, 2013, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on April 9, 2013.

The company's liquidator is:

          Stuarts Walker Hersant
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands


MARINER-AROYA: Shareholder to Hear Wind-Up Report on May 17
-----------------------------------------------------------
The shareholder of Mariner-Aroya Opportunity Master Fund, Ltd.
will receive on May 17, 2013, at 9:00 a.m., the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Stuarts Walker Hersant
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands


MITSUI MULTI-STRATEGY: Commences Liquidation Proceedings
--------------------------------------------------------
On April 11, 2013, the sole shareholder of Mitsui Multi-Strategy
(Japan) Corporation, Ltd passed a resolution that voluntarily
liquidates the company's business.

Only creditors who were able to file their proofs of debt by
May 13, 2013, will be included in the company's dividend
distribution.

The company's liquidator is:

          CDL Company Ltd.
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands


NEW STAR: Creditors' Proofs of Debt Due May 23
----------------------------------------------
The creditors of New Star Multi-Strategy Hedge Fund Limited are
required to file their proofs of debt by May 23, 2013, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on March 28, 2013.

The company's liquidator is:

          Gene Dacosta
          c/o Maree Martin
          Telephone: (345) 814 7376
          Facsimile: (345) 945 3902
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands


NEW STAR MASTER: Creditors' Proofs of Debt Due May 23
-----------------------------------------------------
The creditors of New Star Multi Strategy Master Hedge Fund Limited
are required to file their proofs of debt by May 23, 2013, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on March 28, 2013.

The company's liquidator is:

          Gene Dacosta
          c/o Maree Martin
          Telephone: (345) 814 7376
          Facsimile: (345) 945 3902
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands


ZAM SPECIALIST: Creditors' Proofs of Debt Due May 23
----------------------------------------------------
The creditors of Zam Specialist Opportunity Fund, Ltd are required
to file their proofs of debt by May 23, 2013, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on Jan. 7, 2013.

The company's liquidator is:

          Glen Cremer
          c/o Maree Martin
          Telephone: (345) 814 7376
          Facsimile: (345) 945 3902
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands



=================
G U A T E M A L A
=================


BANCO DE LOS TRABAJADORES: Moody's Assigns Ba3 Deposit Ratings
--------------------------------------------------------------
Moody's Investors Service assigned a standalone bank financial
strength rating (BFSR) of E+ and a baseline credit assessment
(BCA) of b1 to Banco de los Trabajadores (Bantrab).

Moody's has also assigned to Bantrab Ba3 and Not Prime long and
short term local and foreign currency deposit ratings.

The outlook on all ratings is stable.

The following ratings were assigned to Banco de los Trabajadores

Bank financial strength rating: E+, stable outlook
Long term local currency deposit rating: Ba3, stable outlook
Short term local currency deposit rating: Not Prime
Long term foreign currency deposit rating: Ba3, stable outlook
Short term foreign currency deposit rating: Not Prime

Ratings Rationale:

Moody's said that the E+ standalone BFSR and b1 BCA assigned to
Bantrab reflects the bank's franchise as the sixth largest bank in
Guatemala and its niche focus on consumer lending, particularly
payroll-linked lending. The bank has maintained and even grown its
market shares in recent years through organic means and through a
series of local acquisitions. The rating also takes into account
its relatively stable and granular customer-based deposit funding
and therefore a low reliance on less stable sources of funding
such as short term bank borrowings and debt.

Bantrab's asset quality is adequate, reflecting in part its
preferential creditor status per its Organic Law as well as its
emphasis on payroll-deductible loans, which display relatively
contained loan delinquency levels. However, Moody's also noted
that the bank's high loan growth and expanding activities in
consumer lending and into new customer segments such as commercial
lending point to potential asset quality deterioration in future.

A key constraint to the bank's standalone ratings is its still
weak earnings generation capacity due in part to its focus on
payroll-linked lending and its role to provide loans at a more
advantageous cost to workers. The bank's fee generation to date
has also been limited by this customer focus. Moody's said that
the bank's profitability is also burdened by high operating and
credit costs, expected to continue as the bank expands its
business rapidly into other consumer products and with new
commercial customers.

The bank's limited internal capital generation is also a key risk
factor particularly in light of heavy competition from both larger
players in the Guatemalan banking industry as well as from new
foreign entrants that could threaten its profitability and
franchise development. Management is addressing this issue in part
through its plans to raise an additional GTQ156 million of equity
in 2013 in the form of preferred shares, which will boost its
shareholders' equity as of December 2012 by around 19%.

The lack of an independent board of directors is a further
limitation to Bantrab's standalone ratings, as its board is
comprised solely of shareholders and bank executives. The lack of
board independence increases the bank's risk profile with respect
to asset quality, given the absence of independent oversight over
asset allocation, explained Moody's.

The Ba3 local currency deposit rating assigned to Bantrab is based
on the standalone baseline credit assessment of b1 that is mapped
form the E+ BFSR. The deposit rating incorporates one notch of
uplift due to Moody's assumption of the probability of systemic
support in case of need. This assumption is based on the
importance of the bank's franchise as a lender to Guatemalan
public and private sector workers as well as its relevant deposit
base. The foreign currency deposit rating derives from the local
currency rating and is not constrained by Moody's Ba2 foreign
currency country ceiling for Guatemala.

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

Based in Guatemala City, Bantrab had market shares of around 5%
and reported consolidated assets of approximately $1.2 billion
(GTQ9.6 billion) and total shareholders' equity of $105 million as
of December 31, 2012. Established by Decree Law 383 of January 6,
1966, the bank was originally established to cater to workers and
promote financial inclusion.



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


OLINT: Glimmer of Hope for Investors
------------------------------------
RJR News reports that there is another glimmer of hope that there
could yet be a pay out to investors in the collapsed Ponzi scheme,
Olint Corporation Limited.  A statement from the US Department of
Justice says persons who lost money in Olint and related companies
may be eligible to receive compensation from the United States
Government, according to RJR News reports.

The report relates that it said assets forfeited by David Smith,
who operated Olint, will be returned to investors through a
process called Remission.  In order to be considered, a Petition
for Remission Form must be submitted to the US-based Remission
Administrator, RJR News notes.

The report relays that it must include evidence of relevant
investments and returns, including copies of all required
supporting documentation.  Olint reportedly defrauded investors
across Florida and the Caribbean out of more than US$220 million,
the report says.

In 2011, the report recalls that Mr. Smith was sentenced to 30
years in federal prison in the US after entering a guilty plea.
His Turks and Caicos sentence runs concurrently with that
sentence, the report adds.

It is not clear whether the US Justice Department advisory applies
equally to non Americans or persons living outside of the United
States.

Olint Corporation Limited was an investment club owned by David
Smith.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 31, 2010, RadioJamaica said United States authorities sought
to extradite Mr. Smith from Turks and Caicos Islands for his
involvement in financial fraud cases.  The Jamaica Gleaner said
that Mr. Smith was indicted on 23 charges in the United States.
The report related that the indictment handed down in the U.S.
District Court for the Middle District of Florida, Orlando
Division, charged Mr. Smith with four counts of wire fraud, one
count of conspiracy to commit money laundering and 18 counts of
money laundering to conceal specified unlawful activity.
Caribbean News Now related that Mr. Smith defrauded more than
US$200 million from thousands of investors in Jamaica, the Turks
and Caicos Islands and Florida.



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


COZUMEL CARIBE: New York Court Narrows Suit v. Chartis
------------------------------------------------------
In CT INV. MGT. CO., LLC v. CHARTIS SPECIALTY INS. CO., Judge
Shirley Werner Kornreich of the New York County Supreme Court
granted, in part, and denied, in part, a motion to dismiss the
Complaint pursuant to Civil Practice Law and Rules 3211(a)(1), (5)
& (7).

CT filed the Complaint on November 13, 2012, asserting claims for
(1) declaratory relief as to its right to recover under an
insurance policy; (2) breach of contract based on an expropriatory
claim; and (3) breach of contract based on a currency claim.

CT Investment Management Co., LLC, through numerous transactions,
is the successor in interest to the companies (such as Bear
Stearns) that originally held the rights to certain contracts.  On
October 3, 2006, non-party LaSalle Bank National Association
loaned $103 million to numerous Mexican entities that own six
hotels in Mexico.  LaSalle and the Mexican Borrowers executed
numerous contracts governing the transfer of the proceeds from the
loan payments, including: (1) a Cash Management Agreement (the
CMA); (2) a Dollar Lockbox Agreement (the DLA); and (3) a Pesos
Lockbox Agreement (the PLA).  The DLA and the PLA governed
accounts located in the United States and Mexico, respectively,
and funds in both accounts were swept into the account governed by
the CMA, which is located in the United States.  Non-parties Pablo
Ignacio Gonzalez Carbonell and Grupo Costamex, S.A. de C.V., both
affiliated with the Mexican Borrowers, entered into a Guaranty
Agreement with LaSalle whereby they guaranteed payment on the loan
in the event of the Mexican Borrowers' bankruptcy.

In conjunction with the loan, LaSalle purchased a political risk
insurance policy from Chartis that was effective through October
11, 2012.  Article I of the Policy sets forth that the Policy
provides coverage for two types of losses: (1) a loss "caused
principally and directly by an Expropriatory Act"; and (2) a loss
"resulting solely and directly from a condition of Currency
Inconvertibility or Non-transfer."

On April 27, 2010, Mr. Carbonell and Costamex as well as non-party
Epsilon Impulsora y Administrativa, S.A. de C.V. (another company
related to the Mexican Borrowers) held a "shareholders' meeting"
of Cozumel Caribe, S.A. de C.V. (one of the Mexican Borrowers),
during which they approved the filing of a petition -- the
Concurso Petition -- for voluntary bankruptcy known in Mexico as
concurso mercantile, under the Mexican Business Reorganization
Act.  The Plaintiff contends that the vote was unauthorized and
that Mr. Carbonell, Costamex, and Epsilon lacked the authority to
commence the bankruptcy proceeding.

On May 21, 2010, Cozumel filed the Concurso Petition in the Third
District Court in the Mexican State of Quintana Roo.  The Concurso
Petition sought injunctive relief barring enforcement of the
Mexican Borrowers' loan and the Guaranty Agreement.  On May 27,
2010, the Quintana Roo District Court issued an ex parte order
granting the requested injunctive relief.  The Plaintiff contends
that the Quintana Roo District Court lacked the statutory
authority to apply the injunction against any party other than the
petitioner (i.e. the other Mexican Borrowers and the guarantors).
The May 2010 Order caused a Scheduled payment to be missed, and a
notice of default was issued on June 25, 2010.

On August 12, 2010, the Plaintiff commenced an amparo action (a
proceeding alleging a constitutional violation) in the Second
District Court of the City of Cancun, seeking a stay of the May
2010 Order.  The Cancun District Court denied the Plaintiff's
motion, which was affirmed by the Second Associate Court of the
Twenty-Seventh Circuit in Mexico, which then dismissed the amparo
action.  On August 30, 2010, the security trustee and majority
shareholder of Cozumel (BAM) voted to adopt a resolution to
withdraw the Concurso Petition, and a Withdrawal Petition seeking
such relief was filed in the Quintana Roo District Court on
September 3, 2010.  On September 7, 2010, the Quintana Roo
District Court denied the Withdrawal Petition.  On September 30,
2010, the Quintana Roo District Court declared Cozumel to be in
concurso mercantil.  On November 11, 2010, non-party Nemias
Estaban Martinez Martinez was appointed as mediator for the
mediation stage of Cozumel's bankruptcy proceeding (similar to a
Chapter 11 proceeding), which commenced on April 1, 2011.  The
mediation stage ended on October 3, 2011, without a reorganization
of Cozumel.  On October 4, 2011, BAM filed a motion in the
Quintana Roo District Court to declare the bankruptcy of Cozumel.
On October 5, 2011, the Quintana Roo District Court refused to
declare the bankruptcy of Cozumel.  Thus, given that the
bankruptcy proceeding appeared to be over without a reorganization
or liquidation, BAM filed further motions to revoke the May 2010
Order, all of which were denied.

In September 2010, while the bankruptcy proceedings were occurring
in Mexico, the Plaintiff sent Chartis regular updates on the
proceedings.  On February 22, 2012, the Plaintiff formally filed a
claim under the Policy through its insurance broker, Aon Crisis
Management (Aon), which stated that the "Date of Loss" should be
determined as of December 30, 2011 (the date that the final motion
to vacate the May 2010 Order was denied).

On March 26, 2012, Chartis sent a letter to Aon requesting a
formal "proof of loss" within 30 days, which Aon responded to on
April 26, 2012.  On May 3, 2012, Chartis sent Aon a letter denying
coverage for plaintiff's loss.  On June 1, 2012, Aon responded
that the denial of coverage was improper.  On June 22, 2012,
Chartis sent a letter to Aon reasserting its denial of coverage
but requested further documents substantiating plaintiff's claims
so that it could conduct an investigation into the Mexican
proceedings. On September 13, 2012, Chartis sent a letter to Aon
indicating that is was ending its investigation because the policy
was set to expire on October 11, 2012, but reserved its right to
request further information about plaintiff's claims.  The current
action captioned CT INV. MGT. CO., LLC v. CHARTIS SPECIALTY INS.
CO. followed.  This was the third action commenced in New York
relating to the Mexican proceedings.

On January 11, 2012, Judge Sweet extended comity to the May 2010
Order and stayed the Plaintiff's lawsuit to enforce the Guaranty
Agreement that was commenced in the United States District Court
for the Southern District of New York.

On November 14, 2012, Judge Glenn stayed a Chapter 15 adversary
proceeding relating to the funds in the accounts governed by the
CMA and DLA and ordered the parties to seek clarification in the
Quintana Roo District Court on the precise impact of the May 2010
Order.

On May 3, 2013, the New York County Supreme Court followed the
lead of the federal district and bankruptcy courts, stayed CT INV.
MGT. CO., LLC v. CHARTIS SPECIALTY INS. CO., and directed the
parties to conduct an investigation into the status of the
proceedings in the Quintana Roo District Court.

"Discovery in the action is stayed until the parties conduct an
investigation into the status of the proceedings in Mexico," Judge
Kornreich ruled.

Judge Kornreich also said, "After such investigation is conducted,
Chartis may renew its motion to dismiss the Currency Claim if it
can present evidence that Cozumel was actually reorganized or
liquidated.  If so, there would be no coverage, because the
Plaintiff purchased political risk insurance, not bankruptcy
insurance.  If the May 2010 Order is lifted by the Quintana Roo
District Court or vacated by a higher court, plaintiff's claim may
be moot because plaintiff may resume enforcing the loan against
the Mexican Borrowers or their guarantors. In that event, there
would be no loss. Finally, if the May 2010 Order permanently
prevents plaintiff from collecting on the loan and there is no
bankruptcy or liquidation, there may well be a claim."

Chartis' motion to dismiss the Complaint is granted in part, and
the second cause of action (the Expropriatory Claim) is dismissed
without prejudice and the motion is otherwise denied without
prejudice, Judge Kornreich added.

Chartis' motion to dismiss the Currency Claim is denied without
prejudice.

The parties are directed to conduct an investigation into the
Mexican proceedings in accordance with Judge Kornreich's
decision, and discovery is stayed in the interim.

The parties are directed to appear in Part 54, Supreme Court, New
York County, 60 Centre St., rm. 228, New York, NY, for a
preliminary conference on August 27, 2013, at 10:00 in the
forenoon, and, by August 20, 2013, the parties are directed to
submit (by e-filing and fax) a joint report (not to exceed five
double spaced pages) on the status of the Mexican proceedings and
the two federal actions.

The parties are directed to promptly inform the court of any
developments in the Mexican proceedings or the related federal
actions that impact the case.

The case is CT INVESTMENT MANAGEMENT CO., LLC, AS SPECIAL SERVICER
and ATTORNEY-IN-FACT OF THE REGISTERED HOLDERS OF MERRILL LYNCH
FLOATING RATE TRUST PASS-THROUGH CERTIFICATES, SERIES 2006-1, and
ON BEHALF OF THE INSURED U.S. BANK, NATIONAL ASSOCIATION AS
SUCCESSOR TO BEAR STEARNS COMMERCIAL MORTGAGE, INC. and BEAR
STEARNS & CO., INC., Plaintiff, v. CHARTIS SPECIALTY INSURANCE
COMPANY, FORMERLY KNOWN AS AMERICAN INTERNATIONAL SPECIALTY LINES
INSURANCE COMPANY, Defendant, 653896/2012.

Dickstein Shapiro LLP represented the Plaintiff.

Cahill Gordon & Reindel LLP represented Chartis.

A copy of the Court's May 3, 2013 ruling is available at
http://is.gd/lW6rJKfrom Leagle.com.

                        About Cozumel Caribe

Cozumel Caribe SA de CV, a Mexican provider of tourism services at
a beachfront hotel in Cozumel, sought protection from creditors
under Chapter 15 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case
No. 10-13913) in Manhattan New York on July 20, 2010.  Cozumel
filed for Chapter 15 to seek recognition of its Mexican insolvency
proceedings commenced a few months before the U.S. filing.
Cozumel Caribe reported more than US$100 million in debts and
assets of more than US$10 million in its bankruptcy petition.


ULTRAPETROL (BAHAMAS): S&P Affirms 'B-' Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on
Ultrapetrol (Bahamas) Ltd., including the 'B-' corporate credit
rating.  At the same time, S&P removed the ratings from
CreditWatch developing where it placed them on Dec. 3, 2012.  The
outlook is positive.

The rating actions reflect S&P's expectation that Ultrapetrol will
benefit from stronger contracted position, with higher rates and
cost pass-through clauses, and from improved market conditions,
leading to stronger credit metrics.  Furthermore, S&P expects the
company to continue to strengthen its liquidity, as the company
repays the $180 million bond due 2014.

The company's "highly leveraged" financial risk profile reflects
its aggressive capital expenditures in recent years and poor
consolidated operating results, which led to weak cash-flow
protection measures.  However, after Southern Cross Group's
$220 million capital injection in December 2012, Ultrapetrol's
capital structure and financial flexibility improved, especially
after the tender offer for the $80 million convertible bonds was
concluded, significantly reducing short-term obligations.  S&P
expects the company's financial risk profile to continue
improving, as Ultrapetrol focuses on extending its debt maturity
profile and reducing interest expenses, which will result in a
higher cash-flow generation.


* S&P Raises Rating on 3 Series From 2 MBIA-Insured Transactions
----------------------------------------------------------------
Standard & Poor's Rating Services raised its long-term global
scale rating on the senior class A residential mortgage-backed
notes due 2035 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) to 'B (sf)' from 'CCC (sf)'.  The
securitization is a cross-border residential mortgage-backed
securities (RMBS) transaction.  At the same time, S&P raised its
global and national scale ratings on senior series BRHCCB 07U and
BRHCCB 07-2U from another RMBS transaction issued by Su Casita
(Hipotecaria Su Casita - Bursatilizaciones de Hipotecas
Residenciales III) and serviced by Patrimonio to 'B (sf)' and
'mxBB+ (sf)' from 'CCC (sf)' and 'mxCCC (sf)', respectively.

The upgrades on the senior class A notes and senior series BRHCCB
07U and BRHCCB 07-2U follow the May 8, 2013, raising of S&P's
insurer financial enhancement rating on MBIA Insurance Corp.
(MBIA) to 'B' from 'CCC' and S&P's ratings on MBIA Mexico S.A. de
C.V. (MBIA Mexico) to 'B' and 'mxBB+' from 'CCC' and 'mxCCC',
respectively.

Under S&P's criteria, the issue rating on an insured bond reflects
the higher of the rating on the bond insurer or the Standard &
Poor's underlying rating (SPUR) on the security.  S&P's SPUR
ratings on classes with full bond insurance reflect an issue's
stand-alone capacity to pay debt service without giving effect to
the external enhancement, or in this case, without the MBIA bond
insurance's protection.

Therefore, S&P's 'B (sf)' rating on the senior class A notes
reflects the swap guarantee and the full financial guarantee
provided by MBIA.  S&P's 'B (sf)' global scale ratings and 'mxBB+
(sf)' national scale ratings on senior series BRHCCB 07U and
BRHCCB 07-2U reflect MBIA Mexico's full financial guarantee.

While the ratings on the affected series reflect the rating on the
respective bond insurer's financial enhancement, the recent
upgrades on MBIA and MBIA Mexico did not affect the SPURS on these
series.  Additionally, S&P's ratings on the subordinated series
class B and BRHCCB 07-3U remain unchanged.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:

            http://standardandpoorsdisclosure-17g7.com

RATINGS RAISED

Hipotecaria Su Casita - Residential Mortgage-Backed Notes
                          Rating              Outs. amount
Class         Type     To          From             (mil.)
A             Senior   B (sf)      CCC (sf)      US$102.31

Hipotecaria Su Casita - Bursatilizaciones de Hipotecas
Residenciales III
                          Rating              Outs. amount
Class         Type     To          From             (mil.)
BRHCCB 07U    Senior   B (sf)      CCC (sf)     12.28 UDIs
BRHCCB 07U    Senior   mxBB+ (sf)  mxCCC (sf)   12.28 UDIs
BRHCCB 07-2U  Senior   B (sf)      CCC (sf)    425.20 UDIs
BRHCCB 07-2U  Senior   mxBB+ (Sf)  mxCCC (sf)  425.20 UDIs

OTHER OUTSTANDING RATINGS
Hipotecaria Su Casita - Residential Mortgage-Backed Notes

Class         Type     Rating                 Outs. amount
                                                    (mil.)
A             SPUR     CC (sf)                   US$102.31
B             Sub      mxCC (sf)                 MXN184.97

Hipotecaria Su Casita - Bursatilizaciones de Hipotecas
Residenciales III
Class         Type     Rating                 Outs. amount
                                                    (mil.)
BRHCCB 07U    SPUR     CC (sf)                  12.28 UDIs
BRHCCB 07-2U  SPUR     CC (sf)                 425.20 UDIs
BRHCCB 07-3U  Sub      D (sf)                   64.85 UDIs

UDI--Mexican Unidad de Inversion, an inflation link unit used in
Mexico.
SPUR--Standard & Poor's underlying rating. MXN--Mexican peso.



===============================
T R I N I D A D  &  T O B A G O
===============================


CARIBBEAN AIR: Can Receive US$200 Million Write-off of its Losses
-----------------------------------------------------------------
RJR News reports that Caribbean Airlines Limited Caribbean
Airlines could receive a US$200 million write-off of its losses,
including US$60 million incurred from credit card fraud related to
ticket purchases.

More than US$100 million has already had to be written off from
the airline's cargo department, according to RJR News.

The report relates that a report submitted to CAL's board of
directors states that the losses were incurred because there were
no policies in place to ensure the airline received its earnings.

RJR News notes that the Trinidad Express newspaper has obtained a
series of e-mails and documents which point to questionable
actions by CAL's management with regard to several multi-million
dollar transactions which have handicapped the airline
financially.

CAL's board has asked an independent company to conduct an audit
of the multi-million dollar cargo losses and has instructed the
management to fix the credit card issues related to ticket
purchases, RJR News says.

                      About Caribbean Airlines

Caribbean Airlines Limited -- http://http://www.caribbean-
airlines.com/ -- provides passenger airline services.  It also
specializes in the shipment of fresh cut flowers and packaged
meats, hatching eggs, chocolates, fruits and vegetables, frozen
and chilled fish, vaccines, newspapers, and magazines within the
Caribbean, as well as to North America and Europe.

In 2010, Port of Spain and Kingston agreed to a deal that allowed
the Jamaica government to own 16% of CAL as part of the conditions
for CAL taking over the lucrative routes of Air Jamaica.  The deal
also allows for Trinidad and Tobago agreeing to a US$300 million
transition plan for CAL to acquire and operate six Air Jamaica
aircraft and eight of its routes.

                         *     *     *

As reported in the Troubled Company Reporter on March 21, 2012,
RJR News said that Caribbean Airlines Limited owes nearly
US$30 million to Trinidad and Tobago's fuel provider National
Petroleum.  Trinidad Express said CAL enjoys a seven-day credit
facility for aviation fuel from the company, according to RJR
News.  However, the report related that the airline has not been
able to pay the full amount when invoiced and instead has been
issuing partial payments to sustain the account.  RJR News noted
that Trinidad Express reported that the arrears were built up
as no payments have been made despite an attractive fuel subsidy
which the airline has enjoyed since it began operations in
January.

                            ***********


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., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, Frauline S.
Abangan, and Peter A. Chapman, Editors.

Copyright 2013.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000 or Nina Novak at
202-241-8200.


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