TCRLA_Public/130705.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Friday, July 5, 2013, Vol. 14, No. 132


                            Headlines



A R G E N T I N A

TRANSENER SA: Fitch Affirms Ratings on Two Note Classes at 'CCC'
* Moody's Notes Deterioration in Argentine ABS Market in March


B R A Z I L

BR PROPERTIES: S&P Affirms 'BB' Rating & Revises Outlook to Pos.


C A Y M A N  I S L A N D S

ASIA PACIFIC: Creditors' Proofs of Debt Due July 22
ASIA PACIFIC MASTER: Creditors' Proofs of Debt Due July 22
BLACKSTONE EDO: Commences Liquidation Proceedings
CAYMAN CABIUNAS: Creditors' Proofs of Debt Due Aug. 1
CHARLEMAGNE NEW: Commences Liquidation Proceedings

FINISTERRE EQUITY: Commences Liquidation Proceedings
FINISTERRE EQUITY MASTER: Commences Liquidation Proceedings
KY IMAGING: Creditors' Proofs of Debt Due July 23
MAG III: Commences Liquidation Proceedings
MENDIP LIMITED: Commences Liquidation Proceedings

TORO BRAVO: Creditors' Proofs of Debt Due July 24
TORO BRAVO INTERNATIONAL: Creditors' Proofs of Debt Due July 24
VEGAPLUS CAPITAL: Creditors' Proofs of Debt Due July 31


M E X I C O

FIDEICOMISO DE FOMENTO: Moody's Withdraws Ba1 Issuer Rating
GRUPO KUO: Cabot to Acquire Remaining 60 Percent of Joint Venture
GRUPO KUO: S&P Affirms 'BB' Rating; Outlook Stable
MAXCOM TELECOM: To File U.S. Bankruptcy with Ventura-Backed Plan
* EIKE BATISTA: Grupo BTG Cancels Credit Line to Companies

* Mexico's Restructuring of Municipal Debts is a Credit Positive


                            - - - - -


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


TRANSENER SA: Fitch Affirms Ratings on Two Note Classes at 'CCC'
----------------------------------------------------------------
Fitch Ratings has affirmed the following ratings of Transener
S.A.:

-- Long-term Foreign Currency Issuer Default Rating (FC IDR)
   at 'CCC';

-- Long-term Local Currency Issuer Default Rating (LC IDR)
   at 'CCC';

-- 2016 notes at 'CCC'/RR4;

-- 2021 notes at 'CCC'/RR4.

KEY RATING DRIVERS

The rating reflects the weak regulatory environment and law
enforceability. Transener's full-tariff review is pending since
2002. The company operates in an uncertain environment with high
political and regulatory risks. Delays in implementing the
commitments made by the National Government under agreements
reached between the company and the Secretary of Energy continue
to affect the economic and financial situation of Transener. The
disbursements from the Wholesale Electric Market Administrator
(CAMMESA) are uncertain and subject to the discretion of the
regulator and the availability of funds at CAMMESA. The debt
outstanding from CAMMESA reached $152 million.

Transener holds a negative operating profile. Negative EBITDA is
caused by the costs adjustments and the frozen tariff scheme for
the regulated segment. The factors that could revert Transener's
negative trend in its operations are beyond the company's control,
so there is a significant risk that the company will not able to
meet its financial obligations in the next years.

While Transener has a favorable debt amortization schedule with no
major maturities until 2021, the deterioration of its operating
profile has resulted in high leverage levels and weak coverage
ratios. In FY 2012 (ending Dec. 31) the company had $760 million
debt, a negative Debt/EBITDA and FFO/Interest coverage ratio 1.6x.

Fitch considers the positive on going concern. Transener's
business is of vital importance for the country since it handles
almost 95% of the Argentine's energy transportation. Fitch expects
additional financing to cover costs increase and capex to come
from CAMMESA or the National Government.

The majority of Transener's income is denominated in Argentine
pesos, while its debt is fully denominated in U.S. dollars. Thus,
the company is exposed to a high currency exchange loss plus
transfer and convertibility risk.

The Recovery Ratings for Transener's capital markets debt
instruments reflect Fitch's expectation that the company's
creditors would have an average recovery constrained by the soft
cap of 'RR4' for bonds issued by corporates domiciled in
Argentina.

As March 31 Transener had $106 million in cash and short-term
marketable securities and $81.8 million in short-term debt. The
cash will be mainly use to cancel salary payments at the beginning
of April. Transener has a restricted financial flexibility. The
main financial source will come from CAMMESA. However, no main
payments are due until 2021.

RATING SENSITIVITIES

Triggers for a negative rating action include a significant
deterioration in the company's liquidity. Triggers for a positive
rating action include a full tariff review that re-adequate the
company's economic equation.


* Moody's Notes Deterioration in Argentine ABS Market in March
--------------------------------------------------------------
The performance of the Argentine asset-backed securities (ABS)
market deteriorated as of the March 2013, according to the new
Argentine ABS Index published by Moody's Investors Service.

The 90-plus delinquency rate of the Argentine ABS index increased
to 3.1% over original balance in March 2013 from 1.9% as of the
same month in 2012. The new index covers 49 ABS transactions rated
by Moody's in Argentina.

Despite higher delinquencies, securitized portfolios have
performed within Moody's original expectations. Moreover, the
credit quality of most Argentine securitizations remains strong
because they benefit from strong structural features such as high
initial subordination levels, high excess spread levels and turbo
sequential payment structures that capture any available excess
spread to repay the rated debt.

Moody's Argentine ABS index will usually be published mid-month on
a periodic basis.


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


BR PROPERTIES: S&P Affirms 'BB' Rating & Revises Outlook to Pos.
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' global scale
and 'brAA' national scale ratings on BR Properties S.A.  At the
same time S&P revised the outlook to positive from stable.

The positive outlook on BR Properties reflects S&P's expectation
that the company's debt metrics will improve while cash flow
generation continues to increase as the company concludes capital
expenditures (capex) and consolidates new properties into its
portfolio.  "The company's stable and predictable cash flows
offset tight interest coverage.  Moreover, it has maintained a
loan-to-value ratio below 50%, which compares satisfactorily to
that of its global peers," said Standard & Poor's credit analyst
Rafaela Vitoria.

On the other hand, the ratings reflect the risks inherent to the
continued expansion through acquisitions and new developments.  As
the real estate investment industry in Brazil is in its early
stages, S&P expects it will go through significant growth and
consolidation.


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


ASIA PACIFIC: Creditors' Proofs of Debt Due July 22
---------------------------------------------------
The creditors of Asia Pacific Haven Fund are required to file
their proofs of debt by July 22, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 14, 2013.

The company's liquidator is:

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


ASIA PACIFIC MASTER: Creditors' Proofs of Debt Due July 22
----------------------------------------------------------
The creditors of Asia Pacific Haven Master Fund are required to
file their proofs of debt by July 22, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 14, 2013.

The company's liquidator is:

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


BLACKSTONE EDO: Commences Liquidation Proceedings
-------------------------------------------------
On June 11, 2013, the sole shareholder of Blackstone Edo Offshore
Fund, Ltd resolved to voluntarily liquidate the company's
business.

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

The company's liquidator is:

          Sean Flynn
          c/o John O'Driscoll
          Walkers
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9001
          Cayman Islands
          Tel: +1 (345) 914 4229


CAYMAN CABIUNAS: Creditors' Proofs of Debt Due Aug. 1
-----------------------------------------------------
The creditors of Cayman Cabiunas Investment Co., Ltd. are required
to file their proofs of debt by Aug. 1, 2013, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on June 3, 2013.

The company's liquidator is:

          Fabio Barreto Lourenco
          Avenida Republica do Chile 65
          10o. Floor, Room 1004
          Centro, Rio de Janeiro
          RJ, Brazil
          Telephone: +55 (21) 3224 3067


CHARLEMAGNE NEW: Commences Liquidation Proceedings
---------------------------------------------------
At an extraordinary meeting held on June 7, 2013, the shareholder
of Charlemagne New Frontiers Fund resolved to voluntarily
liquidate the company's business.

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

The company's liquidator is:

          Jane Davidson Nairn Mcandry
          Huw Lloyd Jones
          c/o Maples and Calder
          Attorneys-at-law
          PO Box 309, Ugland House
          Grand Cayman KY1-1104
          Cayman Islands


FINISTERRE EQUITY: Commences Liquidation Proceedings
----------------------------------------------------
At an extraordinary meeting held on March 21, 2013, the
shareholder of Finisterre Equity Fund resolved to voluntarily
liquidate the company's business.

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

The company's liquidator is:

          Jonathan Nicholson
          Telephone: (345) 516 0210
          P.O. Box 1976 Grand Cayman KY1-1104
          Cayman Islands


FINISTERRE EQUITY MASTER: Commences Liquidation Proceedings
-----------------------------------------------------------
At an extraordinary meeting held on March 21, 2013, the
shareholder of Finisterre Equity Master Fund resolved to
voluntarily liquidate the company's business.

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

The company's liquidator is:

          Jonathan Nicholson
          Telephone: (345) 516 0210
          P.O. Box 1976 Grand Cayman KY1-1104
          Cayman Islands


KY IMAGING: Creditors' Proofs of Debt Due July 23
-------------------------------------------------
The creditors of KY Imaging Ltd. are required to file their proofs
of debt by July 23, 2013, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on June 12, 2012.

The company's liquidator is:

          Priestleys
          c/o Martina de Lima
          Telephone: (345) 946 1577
          c/o Priestleys
          PO Box 30310 Grand Cayman KY1-1202
          Cayman Islands


MAG III: Commences Liquidation Proceedings
------------------------------------------
At an extraordinary meeting held on June 14, 2013, the shareholder
of MAG III Aviation Inc. resolved to voluntarily liquidate the
company's business.

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

The company's liquidator is:

          Mr. Tarek Amer
          c/o P.O. Box 15031
          Amman 1113 Jordan
          Telephone: +1 (345) 914 6365


MENDIP LIMITED: Commences Liquidation Proceedings
-------------------------------------------------
On June 11, 2013, the sole shareholder of Mendip Limited resolved
to voluntarily liquidate the company's business.

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

The company's liquidator is:

          Sonja Zuberbuhler
          Telephone: +4 (158) 450 5811
          Facsimile: +4 (158) 450 5811
          c/o KENDRIS Ltd.
          Muhlemattstrasse 56
          5001 Aarau, Switzerland


TORO BRAVO: Creditors' Proofs of Debt Due July 24
-------------------------------------------------
The creditors of Toro Bravo Fishing Ltd. are required to file
their proofs of debt by July 24, 2013, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Oct. 10, 2012.

The company's liquidator is:

          Wendy L. Curti
          280 Soledad Place
          Coronado, CA 92118
          USA


TORO BRAVO INTERNATIONAL: Creditors' Proofs of Debt Due July 24
---------------------------------------------------------------
The creditors of Toro Bravo Fishing International Ltd. are
required to file their proofs of debt by July 24, 2013, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on Oct. 10, 2012.

The company's liquidator is:

          Wendy L. Curti
          280 Soledad Place
          Coronado, CA 92118
          USA


VEGAPLUS CAPITAL: Creditors' Proofs of Debt Due July 31
-------------------------------------------------------
The creditors of Vegaplus Capital Partners Limited are required to
file their proofs of debt by July 31, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 12, 2013.

The company's liquidator is:

          Peter Anderson
          c/o Omar Grant
          Telephone: (345) 949 7576
          Facsimile: (345) 949 8295
          P.O. Box 897
          Windward 1, Regatta Office Park
          Grand Cayman KY1-1103
          Cayman Islands


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


FIDEICOMISO DE FOMENTO: Moody's Withdraws Ba1 Issuer Rating
-----------------------------------------------------------
Moody's de Mexico has withdrawn Fideicomiso de Fomento Minero's
(Fifomi) ratings including: (i) long and short term global local
currency (GLC) issuer ratings of Ba1 and Not Prime, respectively;
(ii) long and short term Mexican National Scale issuer ratings of
A1.mx and MX-2; (iii) commercial paper global local currency (GLC)
short term debt rating of Not Prime; and (iv) commercial paper
Mexican National Scale short term debt rating of MX-2. The outlook
on all the ratings before the withdrawal was stable.

Ratings Rationale:

Moody's has withdrawn Fifomi's ratings for its own business
reasons.

Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for Mexico.

Fifomi is headquartered in Mexico City, Mexico and reported a loan
portfolio of Mx$3.5 billion out of its Mx$7.6 billion in assets as
of March 2013.

The period of time covered in the financial information used to
determine Fifomi's rating was January 1, 2008 to March 31, 2013
(source: Moody's and entity's financial statements).

The following ratings assigned to Fifomi were withdrawn:

Long term local currency issuer rating of Ba1
Short term local currency issuer rating of Not Prime
Long term National Scale issuer rating of A1.mx
Short term National Scale issuer rating of MX-2

Commercial Paper local currency short term debt rating of Not
Prime

Commercial Paper National Scale short term debt rating of MX-2


GRUPO KUO: Cabot to Acquire Remaining 60 Percent of Joint Venture
-----------------------------------------------------------------
RubberNews.com reports that Cabot Corp. has entered into an
agreement with Grupo Kuo S.A.B. de C.V. to buy the remaining 60
percent interest in its Mexican joint venture, NHUMO S.A. de C.V.
for $105 million.

NHUMO is a leading carbon black producer in Mexico, and the
company said the purchase will strengthen Cabot's overall carbon
black business significantly.

The acquisition not only improves Cabot's base in North America,
said Patrick Prevost, company president and chief executive
officer, "but solidifies our global leadership position in the
carbon black industry," according to the report.

The report notes that once Cabot receives approval from regulatory
agencies and it closes the deal, the company will have 19 plants
globally and capacity in excess of 2 million tons.  The firm has
owned about 40 percent of NHUMO since 1990, the report relates.


GRUPO KUO: S&P Affirms 'BB' Rating; Outlook Stable
--------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' global scale
and 'mxA' national scale corporate credit ratings Grupo KUO S.A.B.
de C.V.  The recovery rating remains unchanged at '3', indicating
S&P's expectation of a meaningful recovery (50%-70%) in the event
of a payment default.  The outlook remains stable.  The rating
affirmation follows S&P's ordinary annual review.

The ratings on KUO continue to reflect S&P's assessment of its
business risk profile as "fair" and its financial risk profile as
"significant."

"We expect KUO to maintain its current business risk profile,
which reflects its strategic focus on investing in profitable and
value-added businesses, diversification of its portfolio through
joint ventures that match its core businesses--consumer goods,
chemicals, and auto parts--and resilient nature of its food
business.  In our view, KUO will likely maintain its "fair"
business risk profile over the next several years thanks to the
full integration of acquired assets and strong market shares.  In
addition, we expect the company to maintain "adequate" liquidity
and comfortable debt maturity profile," S&P said.

"In our view, the constraining rating factors are KUO's single-
digit operating margins, 75% of its sales generated in the NAFTA
region, the cyclicality in some of its core businesses
(particularly chemicals and auto parts), foreign-exchange
fluctuations, and its exposure to volatile raw material prices.
KUO's chemicals business is exposed to fluctuating costs in oil-
derivative products such as conversion oil, natural gas,
butadiene, acrylonitrile, and styrene; its consumer goods division
to corn and soybean; and its auto parts division to steel and
aluminum," S&P noted.


MAXCOM TELECOM: To File U.S. Bankruptcy with Ventura-Backed Plan
----------------------------------------------------------------
Maxcom Telecomunicaciones, S.A.B. de C.V. on July 3 disclosed that
it has negotiated the terms of a comprehensive recapitalization
and debt restructuring that is expected to significantly reduce
Maxcom's debt service expense and position Maxcom for growth with
a US$45 million capital infusion.

Maxcom, private equity firm Ventura Capital Privado, S.A. de C.V.,
an ad hoc group holding an aggregate amount of approximately US$84
million of Maxcom's 11% Senior Notes due 2014, and certain of its
current equity holders have reached agreement on the terms of a
restructuring and support agreement, a recapitalization agreement,
and agreements to tender.  In connection with the
recapitalization, Maxcom has entered into a recapitalization
agreement with Ventura and certain related parties, pursuant to
which the Purchasers have agreed to make a capital contribution of
US$45.0 million dollars and conduct a tender offer to acquire for
cash, at a price equal to Ps.$2.90 (two pesos and 90/100) per CPO,
up to 100% (one hundred percent) of the issued and outstanding
shares of Maxcom, subject to the terms of the recapitalization
agreement.  The Purchasers' obligation to consummate the tender
offer and make the capital contribution is subject to a number of
conditions, including: receiving legal and regulatory approvals
from the Mexican Banking and Securities Commission (Comision
Nacional Bancaria y de Valores), the Mexican Ministry of
Communications and Transportation (Secretaria de Comunicaciones y
Transportes) and the Mexican Antitrust Commission (Comision
Federal de Competencia), the absence of certain material adverse
effects, the entry of an acceptable bankruptcy court confirmation
order consistent with the terms of the restructuring and support
agreement and the recapitalization agreement and such order
becoming final.

Pursuant to the terms of the Chapter 11 plan that have been agreed
by and among Maxcom, the Purchasers and the Ad Hoc Group, all
classes of creditors are unimpaired and will be paid in full in
the ordinary course, except for the Senior Notes claims, which
will receive (1) the step-up senior notes (which include the
capitalized interest amount for unpaid interest accrued on the
Senior Notes from (and including) April 15, 2013 through (and
excluding) June 15, 2013, at the rate of 11% per annum), (2) cash
in the amount of unpaid interest accrued on the Senior Notes (A)
from (and including) December 15, 2012 through (and excluding)
April 15, 2013, at the rate of 11% per annum, and (B) from (and
including) June 15, 2013 through (and excluding) the effective
date of the Plan at the rate of 6% per annum, and (3) rights to
purchase equity that is unsubscribed by the Company's current
equity holders pursuant to the terms of the Plan.  The step-up
senior notes will: (a) be issued in an aggregate principal amount
of US$200 million, minus the amount of Senior Notes held in
treasury by the Company, plus the capitalized interest amount; (b)
bear interest (i) from the date of issuance until June 14, 2016,
at the annual rate of 6% per annum, (ii) from June 15, 2016 until
June 14, 2018, at the annual rate of 7% per annum, and (iii) from
June 15, 2018 until the maturity date, at the annual rate of 8%
per annum; (c) have a maturity date of June 15, 2020; (d) be
secured by the same collateral that currently secures the Senior
Notes; and (e) be unconditionally guaranteed, jointly and
severally and on a senior unsecured basis, by all of Maxcom's
direct and indirect subsidiaries, excluding Fundacion Maxcom, A.C.

Maxcom's recapitalization and debt restructuring will be
implemented through a voluntary, prepackaged Chapter 11 filing
under the U.S. Bankruptcy Code and an equity tender offer in
accordance with U.S. and Mexican securities laws.  Maxcom
commenced solicitation of votes from holders of the Senior Notes
on July 3, 2013.

The Company intends to operate in the ordinary course of business
during the implementation of its recapitalization and debt
restructuring and continue to provide a high level of
responsiveness to its customers, vendors and business partners.

No assurances can be given that a proposed recapitalization and
debt restructuring will be successful or that holders of Maxcom's
debt obligations and/or relevant stakeholders will reach an
agreement.  If a consensual, pre-packaged Chapter 11 restructuring
cannot be implemented, Maxcom may be forced to file for bankruptcy
or concurso mercantil without the support of a significant portion
of its creditors.  A failure to complete a restructuring, through
a pre-packaged Chapter 11 filing or otherwise, could have a
material adverse effect on the business or the interests of
holders of Maxcom's debt and equity securities.

As previously disclosed, the Company has engaged Lazard Freres &
Co. LLC and its alliance partner Alfaro, Davila y Rios, S.C. as
its financial advisor and Kirkland & Ellis LLP and Santamarina y
Steta, S.C. as its U.S. and Mexican legal advisors in connection
with its restructuring proceedings and potential Chapter 11 case.
The Ad Hoc Group has retained Cleary Gottlieb Steen & Hamilton LLP
and Cervantes Sainz, S.C., as its U.S. and Mexican legal advisors.
Ventura has retained VACE Partners as its financial advisor, and
Paul Hastings LLP and Jones Day as its U.S. and Mexican legal
advisors, respectively.

                           About Maxcom

Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory.  Maxcom launched commercial
operations in May 1999 and is currently offering local, long
distance, data, value-added, paid TV and IP-based services on a
full basis in greater metropolitan Mexico City, Puebla, Tehuacan,
San Luis, and Queretaro, and on a selected basis in several cities
in Mexico.

                           *    *     *

Maxcom carries a 'CC' corporate credit rating from Standard &
Poor's Ratings Services and a "Caa1" from Moody's Investors
Service.


* EIKE BATISTA: Grupo BTG Cancels Credit Line to Companies
----------------------------------------------------------
Francisco Marcelino and Rodrigo Orihuela at Bloomberg News report
that Grupo BTG Pactual, the investment bank controlled by
billionaire Andre Esteves, canceled a $1 billion line of credit to
Eike Batista's companies that was part of a strategic agreement
announced in March, said a person with direct knowledge of the
transaction.

The source said that BTG, based in Sao Paulo, made the decision
after a review of the arrangement, according to Bloomberg News.

Bloomberg News notes that under the initial agreement, BTG would
provide financial advice and Esteves would co-run a strategic and
financial management committee for Batista's six publicly traded
companies.  BTG provided Batista's holding company, EBX Group Co.,
with a $1 billion line of credit as part of the deal, a person
with direct knowledge of the accord said on March 7, Bloomberg
News relates.

Bloomberg News says that since the BTG-EBX agreement was
announced, shares in Batista's flagship company OGX Petroleo & Gas
Participacoes SA have tumbled 87 percent to a record low 39
centavos after the oil producer failed to meet operational
targets.  The sell-off intensified after OGX scrapped offshore
projects and warned it may stop producing oil next year, Bloomberg
News relays.

Bloomberg News discloses that Mr. Batista has seen his fortune
plummet by more than $30 billion since March 2012.

Standard & Poor's cut its rating on OGX to CCC from B-, citing
concern that the company won't be able to meet its debt
commitments.


* Mexico's Restructuring of Municipal Debts is a Credit Positive
----------------------------------------------------------------
The State of Mexico's new financing and debt restructuring program
for its municipalities is credit positive for those municipalities
that participate because it will contribute to reduce their debt
service, improve their liquidity, and strengthen their governance
and management practices, says Moody's Investors Service in the
report "State of Mexico Launches Municipal Debt Restructuring
Program, A Credit Positive."

The program is intended to make it easier for the municipalities
to access bank financing.

"Debt service reduction should be obtained under the program as
the financial terms of the new loans will be negotiated and
approved by a technical committee under the guidance of the
state's finance ministry and the state congress," says Maria del
Carmen Martinez-Richa, Moody's Assistant Vice President -- Analyst
and author of the report.

The program will also improve the liquidity of the participating
municipalities as it will enable them to restructure and refinance
their debts but also pay accounts payable related to capital
expenditures, says Moody's.

Municipalities that participate also enter into an adjustment
program to control their operating expenditures and increase their
own source revenues, strengthening their governance and management
practices.

Moody's says some of the challenges the program will have to
overcome include broad definitions of the key indicators that will
be used to measure a participant's fiscal adjustment and the lack
of clear penalties for failing to comply with the targets set by
the program.

According to information from the State of Mexico, currently 80%
of its municipalities will access the program. Some municipalities
in the State of Mexico have posted severe financial imbalances,
and two have defaulted on their short-term obligations.

The state's congress also authorized the use of the State's
Support Fund for Municipalities (FEFOM), a MXN 2.1 billion (budget
2013) earmarked state transfer to the municipalities, which they
can use as an additional pledge on the loans or to cover
restructuring costs.


                            ***********


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
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