TCRLA_Public/131018.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, October 18, 2013, Vol. 14, No. 207


                            Headlines



B R A Z I L

CAMARGO CORREA: Cimpor to Focus on Exports Amid Shrinking Market
JBS SA: Working With USDA, South Korea to Resolve Beef Ban
JBS SA: Plans to Issue Overseas Bond Next Week
OGX PETROLEO: Dismisses Oil Chief as Bond Default Woes Persist
OGX PETROLEO: Shares Leap After Reports on Talk With Investors

OSX BRASIL: BNDES Agrees to Refinance US$238 Million Loan
SOCIEDAD DE INVERSIONES: S&P Lowers Rating to 'B+'; Outlook Stable


C A Y M A N  I S L A N D S

BTR GLOBAL: Creditors' Proofs of Debt Due Oct. 29
BTR PROSPECTOR: Creditors' Proofs of Debt Due Oct. 29
CHEYNE GLOBAL: Creditors' Proofs of Debt Due Nov. 6
CHEYNE VISTA: Creditors' Proofs of Debt Due Nov. 6
CREP INVESTMENT: Creditors' Proofs of Debt Due Nov. 6

GLOBAL THAI: Creditors' Proofs of Debt Due Nov. 21
GYRE INVESTMENT: Creditors' Proofs of Debt Due Nov. 6
GYRE INVESTMENT II: Creditors' Proofs of Debt Due Nov. 6
GYRE INVESTMENT III: Creditors' Proofs of Debt Due Nov. 6
INVESTMENT YARD: Creditors' Proofs of Debt Due Nov. 6

LE PIN: Creditors' Proofs of Debt Due Nov. 14
MILMAN INVESTMENTS: Creditors' Proofs of Debt Due Nov. 15
TIMBERLAKE INSURANCE: Creditors' Proofs of Debt Due Nov. 13
WITCO LIMITED: Creditors' Proofs of Debt Due Nov. 15


M E X I C O

INVERSIONES ALSACIA: Moody's Downgrades Sr. Sec. Rating to Caa2
MUNICIPALITY OF GUADALAJARA: Moody's Cuts Issuer Rating to Ba2


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Pays Interests to Bondholders


X X X X X X X X X

* US Political Polarization, China Slowdown Main Risks for Latam


                            - - - - -


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


CAMARGO CORREA: Cimpor to Focus on Exports Amid Shrinking Market
----------------------------------------------------------------
The Global Cement News reports that Cimpor Chief Executive Officer
Ricardo Lima said the company wants to focus its Portuguese
operations on exports.

Camargo Correa SA became the majority shareholder of Cimpor in
2012.

The company told Diario Economico newspaper that the cement
producer's market in Portugal is shrinking and its cement
production capacity is increasingly being used for exports,
according to The Global Cement News.

The report discloses that Cimpor has a cement production capacity
of around 9Mt/yr in Portugal but its domestic demand is only
1.5Mt/yr.  Meanwhile, export volumes have doubled since 2011.

The report recalls that through subsequent restructuring, almost
200 employees, mainly administrative staff, left the company.

At present, Cimpor has no plans to shut down plants in Portugal,
the report adds.

                       About Camargo Correa

Camargo Correa SA is one of the largest private industrial
conglomerates in Brazil.  The company is a holding company with
interests in cement, engineering and construction, textiles,
footwear and sportswear manufacturing.  It also owns non-
controlling equity interests in the energy, transportation
(highway concessions) and steel businesses.  During the last 12
months through June 2007, Camargo Correa had net sales of BRL9.2
billion and EBITDA of BRL1.4 billion.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 5, 2010, Standard & Poor's Ratings Services affirmed its
'BB' ratings on Camargo Correa S.A. (Camargo).  At the same time,
S&P affirmed its 'BB' ratings on its cement subsidiaries
InterCement Brasil S.A. (Intercement) and Cimpor Cimentos de
Portugal, S.G.P.S., S.A. (Cimpor) and revised the outlook on all
entities to positive.


JBS SA: Working With USDA, South Korea to Resolve Beef Ban
----------------------------------------------------------
Shruti Date Singh of Bloomberg News reports that JBS SA said it's
working to resolve South Korea's suspension of some imports from
the U.S. after traces of the feed additive zilpaterol were found
in a consignment.

The Ministry of Food and Drug Safety said that the substance,
banned in South Korea, was detected in a 22-ton shipment from
Greeley, Colorado-based Swift Beef Co. on Sept. 24, according to
Bloomberg News.

Bloomberg News relates that Swift is a unit of Sao Paulo-based
JBS, which said it's working with the U.S. Department of
Agriculture and the South Korean government.

"Given the current situation in Washington D.C. and the lack of
official notification from South Korea, we do not have definitive
information at this time. . . . This is not a food safety issue,"
JBS's U.S. unit said in an e-mail obtained by Bloomberg News.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 26, 2013, Moody's Investors Service has confirmed the long-
term ratings for JBS S.A. and its wholly-owned subsidiaries. At
the same time, the outlook for all the ratings have been changed
to negative. The rating review began on June 10, 2013 following
the announcement of the proposed acquisition of Seara Brasil and
Zenda leather operations from Marfrig.


JBS SA: Plans to Issue Overseas Bond Next Week
----------------------------------------------
Rogerio Jelmayer of The Wall Street Journal reports that Brazil's
JBS SA is planning to issue an overseas bond next week, according
to a banker close to the transaction.

JBS SA hired Bradesco BBI, BB Securities, BTG Pactual, J.P. Morgan
and Banco Santander to coordinate a road show across the globe to
measure investors demand for the operation, according to The WSJ.

The report discloses that an unnamed banker said: "The road show
will take place from Oct. 17 until Oct. 22 and the company still
did not set the timetable or the volume to be raised from the
operation."

With signs that the U.S. Federal Reserve will take a very gradual
approach to withdrawing monetary stimulus, Brazilian companies and
banks have seen some renewed appetite among international
investors for their bonds, The WSJ notes.

The report discloses that tapering would likely raise U.S.
interest rates, and make emerging markets issuers look less
attractive, but the Federal Reserve has recently adopted a more
dovish stance.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 26, 2013, Moody's Investors Service has confirmed the long-
term ratings for JBS S.A. and its wholly-owned subsidiaries. At
the same time, the outlook for all the ratings have been changed
to negative. The rating review began on June 10, 2013 following
the announcement of the proposed acquisition of Seara Brasil and
Zenda leather operations from Marfrig.


OGX PETROLEO: Dismisses Oil Chief as Bond Default Woes Persist
--------------------------------------------------------------
Riza Sta. Ana at International Venture Capital Post reports that
former billionaire Eike Batista had fired the chief executive of
his OGX Petroleo e Gas Participacoes SA.

According to a statement, Luiz Carneiro would be replaced by Paulo
Narcelio Simoes Amaral, who is also the company's chief financial
officer, notes the report.

The report says OGX would be having a shareholders meeting on
November 1 to finalize Amaral's appointment and another executive
for the company's legal director position.  The report relates
that OGX is the second biggest oil company in Brazil just after
Petrobas.

The report discloses that Mr. Batista took six of his companies
public since 2006 and been divesting off assets in the hopes of
stumping the devaluation of his net worth.  Mr. Batista's net
worth was reduced to more than US$30 billion since 2012 due to
rising debt and missed targets, the report relays.

The report says that OGX had missed a US$45 million bond payment
due October 1, and had engaged talks with its bondholders.

According to data gathered by Moody's Investors Service, a default
of OGX's U$D3.6 billion international bonds would be the biggest
in all of Brazil, the report adds.

                          About OGX Petroleo

Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes
S.A. is an independent exploration and production company with
operations in Latin America.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e
Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2
and OGX Austria GmbH's senior unsecured notes ratings to Ca from
Caa2.  The rating outlook remains negative.


OGX PETROLEO: Shares Leap After Reports on Talk With Investors
--------------------------------------------------------------
Jeffrey Lewis at Dow Jones reports that the shares of OGX Petroleo
e Gas Participacoes jumped as much as 50% higher after a report on
Oct. 15, 2013, that the distressed oil company is in talks with
new investors who could inject much-needed cash into the business.

An unnamed source said that investors could put between US$150
million to US$200 million in the firm, allowing it to start
production at its Tubarao Martelo oil field, according to Dow
Jones.  The report relates that OGX shares were 50% higher in
midday trading at BRL0.51 on Oct. 15.

                          About OGX Petroleo

Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes
S.A. is an independent exploration and production company with
operations in Latin America.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e
Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2
and OGX Austria GmbH's senior unsecured notes ratings to Ca from
Caa2.  The rating outlook remains negative.


OSX BRASIL: BNDES Agrees to Refinance US$238 Million Loan
---------------------------------------------------------
Reuters News reports that OSX Brasil SA, the Brazilian shipbuilder
controlled by embattled tycoon Eike Batista, reached an agreement
with Brazil's state development bank BNDES on October 16 to
refinance a BRL518 million (US$238 million) loan for an
undisclosed period.

Currently, OSX is also trying to roll over a 400 million real loan
with state-run Caixa Economica Federal that comes due on October
19, a source told Reuters.

OSX Brasil SA is a shipbuilder controlled by billionaire Eike
Batista.

As reported in the Troubled Company Reporter-Latin America on
June 26, 2013, Reuters said that OSX Brasil denied a report it
failed to make payments on debt held by Spanish infrastructure
group Acciona.  The local Folha da S.Paulo newspaper reported that
Batista's OSX Brasil was struggling to avoid bankruptcy after it
defaulted on some BRL500 million ($222 million) in debt held by
Acciona, according to Reuters.


SOCIEDAD DE INVERSIONES: S&P Lowers Rating to 'B+'; Outlook Stable
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Sociedad
de Inversiones Pampa Calichera S.A. (Pampa) to 'B+' from 'BB-'.
The outlook remains stable.

The downgrade follows a deterioration in Pampa's current and
expected financial performance, based on S&P's expectations of
lower dividends from its subsidiary, Sociedad Quimica y Minera de
Chile S.A. (SQM; BBB/Stable/--), coupled with a higher debt
burden.  Following the recent sharp decline in SQM share prices,
Pampa has less room under some of its financial covenants.  As a
result, S&P' now assess the company's liquidity as "less than
adequate".

In addition, S&P is revising its M&G assessment on Pampa to "weak"
from "fair."  The revision reflects a lack of clarity in the
company's strategy including target leverage and debt allocation
in each of its subsidiaries, although S&P views the recently
approved $120 million capitalization at Sociedad de Inversiones
Oro Blanco S.A. (Oro Blanco; not rated) as positive.  To a lesser
extent, recent investigations by the Chilean securities commission
of several of the company executives may pose additional
uncertainties to S&P's analysis.


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


BTR GLOBAL: Creditors' Proofs of Debt Due Oct. 29
-------------------------------------------------
The creditors of BTR Global Growth Trading Limited are required to
file their proofs of debt by Oct. 29, 2013, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Sept. 26, 2013.

The company's liquidator is:

          Ogier
          c/o Jonathan Turnham
          Telephone: (345) 815 1839
          Facsimile: (345) 949 9877
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands


BTR PROSPECTOR: Creditors' Proofs of Debt Due Oct. 29
-----------------------------------------------------
The creditors of BTR Global Prospector II Trading Limited are
required to file their proofs of debt by Oct. 29, 2013, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on Sept. 26, 2013.

The company's liquidator is:

          Ogier
          c/o Jonathan Turnham
          Telephone: (345) 815 1839
          Facsimile: (345) 949 9877
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands


CHEYNE GLOBAL: Creditors' Proofs of Debt Due Nov. 6
---------------------------------------------------
The creditors of Cheyne Global Catalyst Fund, Inc are required to
file their proofs of debt by Nov. 6, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 26, 2013.

The company's liquidator is:

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Christine Fletcher
          Telephone: +1 (345) 949 4123
          Facsimile: +1 (345) 949 4647; or

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Peter Goulden
          Telephone: +1 (345) 949 4123
          Facsimile: +1 (345) 949 4647
          94 Solaris Avenue Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


CHEYNE VISTA: Creditors' Proofs of Debt Due Nov. 6
--------------------------------------------------
The creditors of Cheyne Vista General Partner Inc. are required to
file their proofs of debt by Nov. 6, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 27, 2013.

The company's liquidator is:

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Christine Fletcher
          Telephone: +1 (345) 949 4123
          Facsimile: +1 (345) 949 4647; or

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Peter Goulden
          Telephone: +1 (345) 949 4123
          Facsimile: +1 (345) 949 4647
          94 Solaris Avenue Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


CREP INVESTMENT: Creditors' Proofs of Debt Due Nov. 6
-----------------------------------------------------
The creditors of Crep Investment W Cayman are required to file
their proofs of debt by Nov. 6, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 26, 2013.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Kim Charaman/Jennifer Chailler
          Telephone: (345) 943 3100


GLOBAL THAI: Creditors' Proofs of Debt Due Nov. 21
--------------------------------------------------
The creditors of Global Thai Dot Com (Cayman) Limited are required
to file their proofs of debt by Nov. 21, 2013, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on Sept. 27, 2013.

The company's liquidator is:

          Krys Global VL Services Limited
          KRyS Global, Governors Square
          Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 31237 Grand Cayman KY1-1205
          c/o Declan Magennis
          Telephone: (345) 947 4700


GYRE INVESTMENT: Creditors' Proofs of Debt Due Nov. 6
-----------------------------------------------------
The creditors of Gyre Investment Funds SPC are required to file
their proofs of debt by Nov. 6, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 26, 2013.

The company's liquidator is:

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Christine Fletcher
          Telephone: +1 (345) 949 4123
          Facsimile: +1 (345) 949 4647; or

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Peter Goulden
          Telephone: +1 (345) 949 4123
          Facsimile: +1 (345) 949 4647
          94 Solaris Avenue Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


GYRE INVESTMENT II: Creditors' Proofs of Debt Due Nov. 6
--------------------------------------------------------
The creditors of Gyre Investment Funds II SPC are required to file
their proofs of debt by Nov. 6, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 26, 2013.

The company's liquidator is:

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Christine Fletcher
          Telephone: +1 (345) 949 4123
          Facsimile: +1 (345) 949 4647; or

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Peter Goulden
          Telephone: +1 (345) 949 4123
          Facsimile: +1 (345) 949 4647
          94 Solaris Avenue Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


GYRE INVESTMENT III: Creditors' Proofs of Debt Due Nov. 6
---------------------------------------------------------
The creditors of Gyre Investment Funds III SPC are required to
file their proofs of debt by Nov. 6, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 26, 2013.

The company's liquidator is:

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Christine Fletcher
          Telephone: +1 (345) 949 4123
          Facsimile: +1 (345) 949 4647; or

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Peter Goulden
          Telephone: +1 (345) 949 4123
          Facsimile: +1 (345) 949 4647
          94 Solaris Avenue Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


INVESTMENT YARD: Creditors' Proofs of Debt Due Nov. 6
-----------------------------------------------------
The creditors of Investment Yard Management Ltd are required to
file their proofs of debt by Nov. 6, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 19, 2013.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Kim Charaman/Jennifer Chailler
          Telephone: (345) 943 3100


LE PIN: Creditors' Proofs of Debt Due Nov. 14
---------------------------------------------
The creditors of Le Pin Limited are required to file their proofs
of debt by Nov. 14, 2013, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Sept. 27, 2013.

The company's liquidator is:

          Buchanan Limited
          c/o Allison Kelly/Ingrid McIntosh
          Telephone: (345) 949 0355
          Facsimile: (345) 949 0360
          P.O. Box 1170 George Town, Grand Cayman
          Cayman Islands KY1-1102


MILMAN INVESTMENTS: Creditors' Proofs of Debt Due Nov. 15
---------------------------------------------------------
The creditors of Milman Investments Limited are required to file
their proofs of debt by Nov. 15, 2013, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Sept. 19, 2013.

The company's liquidator is:

          Eagle Holdings Ltd.
          c/o Barclays Private Bank & Trust (Cayman) Limited
          FirstCaribbean House, 4th Floor
          P.O. Box 487 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: (345) 949 7128


TIMBERLAKE INSURANCE: Creditors' Proofs of Debt Due Nov. 13
-----------------------------------------------------------
The creditors of Timberlake Insurance SPC Ltd. are required to
file their proofs of debt by Nov. 13, 2013, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Sept. 23, 2013.

The company's liquidators are:

          Owen Dinnall
          Dena Thompson
          P.O. Box 10233 171 Elgin Avenue, Willow House
          Grand Cayman
          Cayman Islands
          Telephone: 914 2255/ 949-5263
          Facsimile: 949 6021


WITCO LIMITED: Creditors' Proofs of Debt Due Nov. 15
----------------------------------------------------
The creditors of Witco Limited are required to file their proofs
of debt by Nov. 15, 2013, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Sept. 19, 2013.

The company's liquidator is:

          Eagle Holdings Ltd.
          c/o Barclays Private Bank & Trust (Cayman) Limited
          FirstCaribbean House, 4th Floor
          P.O. Box 487 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: (345) 949 7128


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


INVERSIONES ALSACIA: Moody's Downgrades Sr. Sec. Rating to Caa2
---------------------------------------------------------------
Moody's Investors Service has downgraded the senior secured rating
of Inversiones Alsacia S.A. to Caa2 from B2. The rating continues
on review for possible downgrade. The downgrade reflects the
project's greater likelihood of default in the near to medium term
as evidenced by the project's: a) breach of covenants pertaining
to minimum debt service coverage ratios and maintenance of
required balances in O&M and Overhaul Accounts, which could
trigger early amortization or an event of default, b) underfunded
debt service reserve account which is expected to be depleted on
the next coupon payment due February 2014, increasingly exposing
the transaction to a default, c) increasing dependence on
compensation for concession amendments and for lower passenger
demand to meet debt service payments, and d) extremely tight
expected cash flows available for debt service payments going
forward. The rating also incorporates the fact that the offer of
the sponsor (Grupo GPS, unrated) to contribute funds to the
project either via an equity contribution or subordinated debt to
partially fund the upcoming debt service payment is conditioned
upon consent by bondholders to a recent waiver request and is very
limited in amount.

Ratings Rationale:

The Caa2 rating reflects the weak credit quality of Inversiones
Alsacia, stemming from continued deterioration of its financial
condition, incurred covenant defaults that require waivers,
uncertainty regarding the ability of the project to earn certain
elements of concession compensation dependent on operational
performance requirements, and uncertainty about the amount/timing
of sponsor contributions. Increased revenue volatility as a
consequence of the 2012 concession amendment, decreased bus
passenger demand, sustained fare evasion, and significantly larger
than projected maintenance and overhaul costs led to the
deterioration of Alsacia's key credit metrics and liquidity.

The poor performance caused Alsacia to breach two of its Indenture
covenants for the six-month period ended July 31. First, the
issuer failed to maintain a minimum Debt Service Coverage Ratio
(DSCR) of 1.1x, which constitutes an Early Amortization Event.
This gives the bondholders the right to trigger an Early
Amortization Period, during which on every scheduled debt service
payment date the remaining cash flows after the coupon payment,
are used to pay down debt. In addition, the issuer has not
maintained balances in the O&M accounts equal to the full amounts
required by the Indenture (two transfer periods, or approximately
one month), which also gives the bondholders the right to trigger
an Event of Default. Moody's understands that neither an Early
Amortization Period or Event of Default has been triggered by the
bondholders.

The company issued a consent solicitation statement requesting
bondholders to waive their right to trigger an Event of Default or
an Early Amortization period related to the breached covenants.
The proposed consent would allow Alsacia to a) record lower DSCR,
b) hold lower O&M and Overhaul balances, c) fund the company's
overhaul program with US 11 million senior unsecured deferred
vendor financing, d) allow equity contributions or subordinated
indebtedness if needed for debt service payments. As per the last
consent solicitation statement, the project has set a deadline of
October 18 for bondholders to provide responses.

Given that cash flows net of costs have not been enough to service
its debt, Alsacia has relied on the Debt Service Reserve Account
(DSRA) to pay the two most recent coupon payments . In February
2013 the issuer made the semi-annual debt service payment of US$47
million, requiring draws from the DSRA in the amount of
approximately US 14 million. For the August coupon payment Alsacia
withdrew roughly US 9.5 million on the already underfunded DSRA,
leaving in the account balance approximately US 9.7 million. In
order to meet the coupon payment due on February 2014 of US 50.9
million, Alsacia will likely draw most of the remaining funds of
the DSRA.

According to Moody's expectations, Alsacia will also depend on two
elements of concession compensation from the Government of Chile
(Aa3/Stable)- through the Ministry of Transportation and
Telecommunications (MTT) - in order to meet the coupon payment in
February 2014. First, Alsacia will be relying on the compensation
of US 15 million from the MTT scheduled for the end of January
2014 representing compensation for the amendment of the original
concession contract. This payment is subject to adequate
operational performance in the fourth quarter of 2013. If the
performance metrics are not met the payment would be postponed,
exposing Alsacia to a potential default in the context of lower
than expected cash flows over the next six months and the
underfunded DSRA. Second, Alsacia expects to receive a one-time
payment of approximately U.S.$2 million (representing a
retroactive adjustment of the payment per passenger since December
14, 2012) upon effectiveness of the Concession Amendment, which is
expected to occur in late 2013 or early 2014. The timing of the
payment depends on the formal approval from the General
Comptroller of the Republic of Chile, which is expected in
December. In addition, deviations on key assumptions for
projections such as passenger demand, fare evasion, costs, or
exchange rate could exert further pressure on the cash flows and
potentially lead to a default.

The review will focus on whether the consent solicitation is
accepted, the approval and timing of the effectiveness of the new
Concession Amendment, the amount and timeliness of the sponsor's
support, and how these translate into cash flows available for
debt service. Thus, Moody's does not expect upward pressure on the
ratings in the near to medium term. The review could, however,
conclude with the confirmation of the rating if these events occur
and the projected cash flows are in line with expectations that
support the rating.

If the consent solicitation is not accepted as expected, if there
is a material delay on the effectiveness of the concession
amendment, or poor financial performance continues leading to a
default, the review could conclude with a further downgrade if
Moody's assesses that the loss given default is not captured by
the assigned rating.


MUNICIPALITY OF GUADALAJARA: Moody's Cuts Issuer Rating to Ba2
--------------------------------------------------------------
Moody's de Mexico downgraded the issuer ratings of the
municipality of Guadalajara to A2.mx (Mexico National Scale) and
to Ba2 (Global Scale, local currency) from A1.mx and Ba1
respectively. The outlook remains negative.

Ratings Rationale:

The Ba2/A2.mx ratings reflect the deterioration of Guadalajara's
gross operating balances and the recording of cash financing
requirements, which have led to high debt levels and a negative
liquidity position. According to 2012 results, expenditure growth
continues to outpace revenue growth.

In 2012, the municipality's gross operating balance was equivalent
to 4.7% of operating revenues, compared to 12.5% in 2010. The drop
in this key indicator was mainly because of a decrease in
operating revenues. Moody's notes that the municipality has
undertaken measures to increase revenues and cut expenditures that
could improve Guadalajara's gross operating balance in 2013.

A weakening operating performance coupled with high capital
expenditure levels, resulted in a sizable cash financing deficit
of -20.8% of consolidated revenues in 2012 from -10.2% in 2011.
Both deficits reflect the increase in capital expenditures.

The cash financing deficits in 2011 and 2012 have driven
Guadalajara's net direct and indirect debt to 54% of operating
revenues, one of the highest levels among Moody's rated
municipalities, up from 34.9% in 2010. Debt service costs reached
3.3% of total revenues in 2012, a level that is still manageable,
as reflected in the Ba2 rating.

Moreover, the deficit recorded in 2012 was partially financed with
an increase in suppliers. As such, net working capital
deteriorated to -19.7% of total expenditures, down from a positive
4.5% in 2011. The current administration has taken several
measures to improve its liquidity position and Moody's anticipates
an improvement in Guadalajara's net working capital position to be
reflected in the 2013 year-end numbers.

The negative outlook on the ratings reflects Moody's view that
there is a significant risk that the deterioration of key credit
factors could continue in 2013 and reach levels that are no longer
consistent with Guadalajara's current Ba2/A2.mx ratings.

What Could Move the Ratings Up/Down:

Although Moody's does not expect upward pressure in the short
term, the recording of strong gross operating balances and roughly
balanced cash financing results could put upward pressure on the
issuer ratings if it led to: a) a progressive reduction in net
direct and indirect debt metrics and, b) positive liquidity
position.

Given the current high debt levels, failure to cut operating
expenditures and increase tax/revenue collection, leading to lower
gross operating balances along with the generation of additional
cash financing requirements could exert downward pressure on the
ratings. Continued deterioration of the municipality's liquidity
position, could also affect the ratings.

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.


=================
V E N E Z U E L A
=================


PETROLEOS DE VENEZUELA: Pays Interests to Bondholders
-----------------------------------------------------
4-traders.com reports that Petroleos de Venezuela, S.A. informed
all holders of PDVSA bonds maturing April 2017, 2027 and 2037 that
according to the preset conditions in the papers issued on
April 12, 2007, and given that the issuing of these bonds is ruled
by international laws and that October 14 was an international
holiday, that the payment of interests was conducted since
Tuesday, October 15, 2013, corresponding to the semester which
ends October 2013.

In that regard, all holders of PDVSA bonds 2017, 2027 and 2037
should go to the custodian bank or the institution where they
acquired such bonds to learn about the status and form of payment,
according to 4-traders.com.

Thus, PDVSA honors the commitment acquired with the people and all
the investors of the bonds issued by the Company, the report
relays.  This confirms the financial strength of the main industry
of all Venezuelans, the report adds.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 20, 2013, Standard & Poor's Ratings Services lowered its
long-term corporate credit and senior unsecured debt ratings on
Petroleos de Venezuela S.A. (PDVSA) to 'B' from 'B+'.  The outlook
remains negative.


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


* US Political Polarization, China Slowdown Main Risks for Latam
----------------------------------------------------------------
Slow growth stemming from US political polarization and sluggish
growth in China are the main risks facing Latin America's larger
economies, according to Fitch Ratings' LatAm Risk Radar.

"The risks associated with the US political stalemate and the
slowdown in China are affecting economies around the world - not
just Latin America," said Peter Shaw, Regional Credit Officer for
Latin America.

"Continued wrangling over the debt ceiling and other fiscal issues
risks derailing the modest recovery in the US, and the scenario of
a material slowdown in China has become somewhat more urgent given
Latin America's reliance on commodity trade."

Foreign funding risks have been highlighted by the recent increase
in risk aversion and volatility in international capital markets
in light of the prospect of tapering of asset purchases by
developed central banks and the accompanying risk of policy
mistakes.

Credit growth remains in double digits in many of Latin America's
economies, though it slowed in 2013, matching slower economic
growth. Sustained credit growth has resulted in a steady rise in
consumer indebtedness, although debt service pressures are a bit
less largely due to lower interest rates and longer tenors.

Inflation risk has abated in most of the region, except Brazil.
Monetary easing has already occurred in some countries and
counter-cyclical policies can be employed to varying degrees if
external conditions deteriorate and the deceleration in regional
economies gathers pace.

Government interference continues to muddy the outlook and
operating environment in several lowly rated countries, most
notably in Argentina and Venezuela and, to a lesser extent,
Brazil.


                            ***********


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.


                   * * * End of Transmission * * *