TCRLA_Public/140528.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 28, 2014, Vol. 15, No. 104


                            Headlines



A R G E N T I N A

BUENOS AIRES: S&P Assigns 'CCC+' Rating to $500MM Sr. Unsec. Bonds


B R A Z I L

GOL LINHAS: E&Y to Replace Deloitte as Independent Auditors
HYPERMARCAS SA: Approves Credit Line From Banco do Brasil


C A Y M A N  I S L A N D S

ACI-KOREA: Creditors' Proofs of Debt Due June 16
CONSCIOUS FUND: Creditors' Proofs of Debt Due June 16
EAGLE RIVER: Creditors' Proofs of Debt Due June 19
EXIMIUS CAPITAL: Commences Liquidation Proceedings
GRANITE FINANCE: Commences Liquidation Proceedings

IBERLOAN 2000-1: Commences Liquidation Proceedings
IBERLOAN 2000-3: Commences Liquidation Proceedings
MBF NO.5 INC: Commences Liquidation Proceedings
TRENDHEDGE 2X: Commences Liquidation Proceedings


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Obama Agrees With Concern Over Trade Pact
* DOMINICAN REPUBLIC: Entrepreneurs Seek to Strengthen Trade Ties


N I C A R A G U A

CREDIFACTOR SA: Fitch Affirms LT Issuer Rating at 'BB + (nic)'

V E N E Z U E L A

PETROLEOS DE VENEZUELA: To Receive $2BB Oil Payment From Rosneft


                            - - - - -


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A R G E N T I N A
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BUENOS AIRES: S&P Assigns 'CCC+' Rating to $500MM Sr. Unsec. Bonds
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'CCC+' long-term
issue-level rating to the Province of Buenos Aires' proposed, up
to $500 million senior unsecured bond.  The bond will rank pari
passu with the province's other financial obligations and proceeds
will be used to finance social programs, infrastructure projects,
improve its amortization profile, and pay back past due treasury
debt.

The province reached an operating surplus of Argentine peso (ARP)
232 million in fiscal year 2013 (0.2% of operating revenues)
following several years of deficits.  Its aggressive policy to
increase its primary taxes (gross revenue tax, real estate tax and
automobile tax) together with more effective controls led to a
significant increase in tax collection.  Own-source tax revenues
rose almost 46.6% in 2013 compared to a 30% increase in tax
revenue distribution transfers under the Coparticipation Law, and
S&P estimates inflation in Argentina at 25% in 2013.  Even amid a
challenging economic climate, the province of Buenos Aires has
restricted its operating expenses which increased 26% in 2013.
Deficit after capital revenues and expenditures was ARP1.03
billion in fiscal 2013 (0.7% of total revenues) from ARP8.8
billion in 2012.

S&P's base case for fiscal year 2014 expects a small operating
surplus of less than 1% of operating revenues, and a deficit after
capital revenues and expenses similar to fiscal 2013.  However,
S&P believes increasing pressures from operating expenses will
continue to require the province to maintain effective tax
collection and seek out additional funding sources.

Like the previous three years, the province will benefit from the
national program for provincial debt reduction (Programa Federal
de Desendeudamiento) in 2014, which, if extended until the end of
the year, could lead to total annual savings in debt service of
ARP4.6 billion.  This program was initiated in 2010 and was
recently extended through June 30, 2014.  The province has
budgeted funding needs (fiscal deficit plus principal
amortization) of about ARP14.5 billion in fiscal 2014.  It plans
to continue raising funds in the local market by issuing bonds and
treasury notes.  Proceeds from the up to $500 million
international issuance will help the province close its fiscal gap
for 2014 while extending its amortization profile as debt issued
in the local market generally has a maturity of less than five
years.  With the proposed issuance, total debt will reach 51% of
operating revenues budgeted for 2014 at ARP8.1/$1.

As of March 2014, the province's debt reached ARP85.8 billion
(equivalent to 46.6% of projected 2014 operating revenues) of
which almost 60% is denominated in foreign currency, which will
increase to 62% following the proposed issuance, highlighting an
exchange rate risk amid increasing pressures on the Argentine
peso.  The local currency has depreciated 24% since January, which
pressures provincial debt service. Nonetheless, a significant
amount of its debt (36.6% as of March 2014) is held with the
federal government at relatively favorable terms, significantly
limiting roll-over risk of international market debt.
International bonds made up 48.7% of the province's total debt at
the of end March 2014, which has become significant particularly
since early 2013 because it is denominated in foreign currency and
the peso has steadily depreciated in the past two years.
Meanwhile, the province's $1.05 billion bond in the international
capital markets matures in 2015.

The province will continue facing short-term challenges stemming
from growing political pressure to raise salaries amid relatively
high inflation and decelerating economic activity in Argentina.
Buenos Aires' fiscal performance continues to suffer from
structural issues due to the unfavorable redistribution of federal
resources among provinces in Argentina.  The province contributes
36% of the national GDP but only receives an estimated 22% of the
pool of resources.  This scheme is unlikely to change in the
medium term.  Therefore, S&P expects structural issues will
continue to hamper the province's fiscal performance in 2014 and
2015.

RATINGS LIST

Province of Buenos Aires                    CCC+/Negative/--
$500 mil senior unsecured notes             CCC+


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B R A Z I L
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GOL LINHAS: E&Y to Replace Deloitte as Independent Auditors
-----------------------------------------------------------
GOL Linhas Aereas Inteligentes S.A. disclosed that, in compliance
with the rules governing the mandatory rotation of the Company's
independent auditors set forth in article 31 of CVM Instruction
308/99, the Board of Directors' Meeting of May 13, 2014 resolved
that Ernst & Young Auditores Independentes S.S., would replace
Deloitte Touche Tohmatsu Auditores Independentes as the Company's
independent auditors, as of May 15, 2014.

EY will begin its activities with the review of the financial
statements for the second quarter of 2014.  Deloitte declared its
consent with the reason for its replacement in a joint
communication with the Company to the Brazilian Securities and
Exchange Commission (CVM).

GOL Linhas Aereas Inteligentes S.A. is a low-cost and low-fare
airline in Latin America, offers around 970 daily flights to 65
destinations in 10 countries in South America, Caribbean and the
United States under the GOL and VARIG brands, using a young,
modern fleet of Boeing.

                      *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 21, 2014, Fitch Ratings has affirmed the ratings of Gol
Linhas Aereas Inteligentes S.A.'s Foreign and local currency long-
term Issuer Default Ratings (IDRs) at 'B-'.


HYPERMARCAS SA: Approves Credit Line From Banco do Brasil
---------------------------------------------------------
Reuters reports that the board of directors of Hypermarcas SA
approved a credit line of up to BRL620 million (US$281.8 million)
with state-run Banco do Brasil SA, according to a filing.

The amount may be withdrawn within 18 months and used in up to two
tranches of between BRL100 million and BRL620 million, reports
Reuters.

The financing term is for 48 months, at 111 percent of the rate
banks charge each other for overnight loans, known as DI, the
report notes.

Hypermarcas SA is a maker of consumer products from diapers to
generic drugs.

                      *     *     *

As reported in the Troubled Company Reporter-Latin America on May
15, 2014, Standard & Poor's Ratings Services raised its global
scale corporate credit and debt ratings on Hypermarcas S.A. to
'BB' from 'BB-' and its national scale corporate credit and debt
ratings to 'brAA-' from 'brA'.  The outlook on both scales is
stable.


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


ACI-KOREA: Creditors' Proofs of Debt Due June 16
------------------------------------------------
The creditors of ACI-Korea Real Estate Investment Ltd are required
to file their proofs of debt by June 16, 2014, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on April 22, 2014.

The company's liquidator is:

          Fides Limited
          c/o Clive Gibbons and Michelle McLaughlin
          P.O. Box 10338 Grand Cayman KY1-1003
          Telephone: (345) 949-7232


CONSCIOUS FUND: Creditors' Proofs of Debt Due June 16
-----------------------------------------------------
The creditors of The Conscious Fund Limited are required to file
their proofs of debt by June 16, 2014, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on April 22, 2014.

The company's liquidator is:

          Fides Limited
          c/o Clive Gibbons and Michelle McLaughlin
          P.O. Box 10338 Grand Cayman KY1-1003
          Telephone: (345) 949-7232


EAGLE RIVER: Creditors' Proofs of Debt Due June 19
--------------------------------------------------
The creditors of Eagle River Credit and Event Master Fund Ltd. are
required to file their proofs of debt by June 19, 2014, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on May 6, 2014.

The company's liquidator is:

          DMS Corporate Services Ltd.
          c/o Nicola Cowan
          Telephone: (345) 946 7665
          Facsimile: (345) 949 2877
          dms House, 2nd Floor
          P.O. Box 1344 Grand Cayman KY1-1108
          Cayman Islands


EXIMIUS CAPITAL: Commences Liquidation Proceedings
--------------------------------------------------
At an extraordinary meeting held on May 9, 2014, the shareholders
of Eximius Capital Funding, 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:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall
          Cricket Square, 171 Elgin Avenue
          Grand Cayman KY1-1104
          Cayman Islands


GRANITE FINANCE: Commences Liquidation Proceedings
--------------------------------------------------
At an extraordinary meeting held on May 9, 2014, the shareholders
of Granite Finance SPC 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:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall
          Cricket Square, 171 Elgin Avenue
          Grand Cayman KY1-1104
          Cayman Islands


IBERLOAN 2000-1: Commences Liquidation Proceedings
--------------------------------------------------
At an extraordinary meeting held on May 9, 2014, the shareholders
of Iberloan 2000-1 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:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall
          Cricket Square, 171 Elgin Avenue
          Grand Cayman KY1-1104
          Cayman Islands


IBERLOAN 2000-3: Commences Liquidation Proceedings
--------------------------------------------------
At an extraordinary meeting held on May 9, 2014, the shareholders
of Iberloan 2000-3 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:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall
          Cricket Square, 171 Elgin Avenue
          Grand Cayman KY1-1104
          Cayman Islands


MBF NO.5 INC: Commences Liquidation Proceedings
-----------------------------------------------
At an extraordinary meeting held on May 9, 2014, the shareholders
of MBF No.5 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:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall
          Cricket Square, 171 Elgin Avenue
          Grand Cayman KY1-1104
          Cayman Islands


TRENDHEDGE 2X: Commences Liquidation Proceedings
------------------------------------------------
At an extraordinary meeting held on May 9, 2014, the shareholders
of Trendhedge 2X Fund 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:

          David Dyer
          Deutsche Bank (Cayman) Limited
          P.O. Box 1984, Boundary Hall
          Cricket Square, 171 Elgin Avenue
          Grand Cayman KY1-1104
          Cayman Islands


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D O M I N I C A N   R E P U B L I C
===================================


DOMINICAN REPUBLIC: Obama Agrees With Concern Over Trade Pact
-------------------------------------------------------------
Dominican Today reports that United States President Barack Obama
informed Dominican counterpart President Danilo Medina that he
instructed Washington's negotiating team to take into account the
concerns over the negative impact which the Trans-Pacific Economic
Partnership Treaty (TPP) could have on the textile industries of
the nations in the Central America-U.S.-Dominican Republic Free
Trade Agreement (CAFTA-DR).

In an April 1 letter President Obama responds to a missive sent by
Medina on November 27, 2013, noting that if certain special
concessions were agreed to, they "could cause changes in the
direction and values of hemispheric and worldwide trade,"
according to Dominican Today.

"Our DR-CAFTA agreement is important for all our countries.  Our
respective textile and garment industries share a long history of
cooperation and association agreements that have been of mutual
benefit," President Obama said, and adds that the U.S. negotiating
team for the TPP recognizes DR-CAFTA's unique nature on regional
economic integration, the report notes.

"I have instructed my negotiating team to take into account these
considerations in the US' approach in the negotiations for the
TPP.  Since our meeting in Costa Rica in May 2013, the United
States representatives and trade officials has held extensive
talks with all the ambassadors of the CAFTA-DR member countries on
this topic; the Department of State and my staff of the National
Security Council also met with their ambassador to discuss this
issue," President Obama said, the report notes.

The TPP is negotiated by the U.S. with Mexico, Singapore, Peru,
New Zealand, Malaysia, Chile, Brunei, Japan, Viet Nam, Canada, and
Australia.

                     President Medina's Letter

In his letter to President Obama, President Medina states concern
over economic and social instability that could arise in the
region, if the supply chain for textiles and garments is altered,
after it was formulated with great care within the of DR-CAFTA,
the report notes.

"This delicate balance, based largely on the American-manufactured
threads and fabrics, and supplemented by the production of
garments in our region, has been decisive in strengthening and
increasing the competitiveness of the supply chain of garments and
textiles in the region," said President Medina to President Obama,
the report discloses.


* DOMINICAN REPUBLIC: Entrepreneurs Seek to Strengthen Trade Ties
-----------------------------------------------------------------
Dominican Today reports that French and Dominican entrepreneurs,
grouped in the Dominican-French Chamber of Commerce and the
Chamber of Commerce and Production of Santiago, signed a
cooperation agreement aimed at strengthening the promotion of
trade in both nations.

The agreement was signed by Joan Giacinti and Maria Victoria
Menicucci, Chairmen of both houses, who explained that they are
working for France and the Dominican Republic to continue
preserving the friendship ties and the possibilities for
industrial and commercial exchanges that benefit entrepreneurs
from both countries, according to Dominican Today.


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N I C A R A G U A
=================


CREDIFACTOR SA: Fitch Affirms LT Issuer Rating at 'BB + (nic)'
--------------------------------------------------------------
Fitch Ratings has affirmed the National Long-term CrediFactor, SA
(CrediFactor) at 'BB + (nic)'.  The Outlook is Stable.

Ratings Key Factors

CrediFactor ratings reflect the very limited scale of operations,
which results in elevated concentrations portfolio.  At the same
time, the relative size of the entity involves restrictions on
their ability to generate business and diversify revenue.  The
ratings also consider CrediFactor flexibility to modify their
strategy to changes in the environment due to the short maturity
of their operations, as well as high and higher than industry
profitability.

The main risk comes from CrediFactor obligor concentrations and
high paying, since they expose their assets to the eventual
deterioration of any of these.  In March 2014, the 20 largest
debtors and paying presented an exhibition on the heritage of 2.82
and 2.63 times respectively (58.13% and 54.21% of the loan
portfolio).  The current size of CrediFactor indicates that these
concentrations are maintained without material changes to the
rating horizon.

Profitability in 2014 remains high, although lower than their
historical averages.  This product is: credit contraction in the
balance, the reduction in net interest margin (NIM) and the high
volume of operating expenses relative to revenue generation.
Competitive pressures mean lower portfolio yield, although MIN
will remain large on the horizon of the rating.  In the medium
term, the return is subject to a more dynamic placement portfolio
and supplies a controlled spending, which will depend on the
recovery of impaired loans.

On the quality of portfolio, Fitch believes it is appropriate to
the favored having knowledge of good management of your target
market.  Additionally, all operations are performed with credit to
debtors Appeal, which reduces the risk of bad debts, to get 100%
financing guaranteed by the total bill.  Reserve coverage is
solid, and in view of profitability, high margins provide
sufficient performance in provisioning.

Fitch anticipates that the financial position will remain adequate
CrediFactor, with a ratio of equity to assets above 15%. This will
favor a good rate of accumulation of profits, which contrasts with
the decline in assets.

Sensitivity Ratings

The Stable Outlook reflects changes in ratings are not Fitch's
baseline scenario.  A substantial deterioration in the loan
portfolio or performance indicator to reduce the equity to assets
at levels below 13% would result in a reduction in your scores.
Improvement on ratings is unlikely in the short term given the low
turnover and high concentrations of balance.

Profile

CrediFactor is the largest of the three entities that specialize
in factoring operations and financial discount; although it is one
of the smallest in the national financial industry.  CrediFactor
provides credit to SMEs operations through short-term financing
based on the value of the discounted bill. Companies that finances
are providers of recognized companies in Nicaragua.  Besides
factoring CrediFactor provides collection services to
international clients and financial services to micro, developed
in conjunction with the Inter-American Development Bank (IDB)
program.

Fitch has affirmed the following ratings CrediFactor, SA:

- Issuer rating Long-term 'BB + (nic)', Outlook Stable;
- issuer rating Short-term 'B (nic)';
- National Rating Standardized Fixed Income Long-term 'BB +
  (nic)';
- National Standardized Rate Fixed Income Short-term 'B (nic)'.


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


PETROLEOS DE VENEZUELA: To Receive $2BB Oil Payment From Rosneft
----------------------------------------------------------------
Jose Orozco and Pietro D. Pitts at Bloomberg News report that
Petroleos de Venezuela SA will receive a US$2 billion pre-payment
for oil and fuel supplied to OAO Rosneft (ROSN) as South America's
biggest crude exporter seeks funds amid domestic shortages and the
world's fastest inflation.

Rosneft will make the payment to Venezuela's state oil producer
PDVSA in exchange for more than 1.6 million tons of oil and 7.5
million tons of oil products during a five-year period, Rosneft
said in a statement posted on its website May 24, according to
Bloomberg News.  On March 7, Bloomberg News recalls, Venezuela
signed a memorandum of understanding with Rosneft for US$2 billion
in financing for oil projects in Venezuela.

"This agreement represents a new phase of partnership between
Rosneft and PDVSA," Bloomberg News quoted Rosneft Chief Executive
Officer Igor Sechin as saying.  "Following the partnership in the
upstream sphere, our companies start to cooperate in the sphere of
trading."

For Venezuela, the arrangement may help combat shortages of
everything from car parts to pregnancy tests in a country with
strict currency controls, 59 percent inflation and the world's
biggest oil reserves, Bloomberg News discloses.

Russia may be looking to strengthen ties with countries outside of
the U.S.'s influence after President Vladimir Putin's incursion
into the Crimea region, Roger Tissot, a consultant with Tissot
Associates, said, Bloomberg News relates.

"The deal could have materialized for two reasons: first, Russia
desperately needs to gain friends and secondly Venezuela needs the
money more than ever," Mr. Tissot said told Bloomberg in a
telephone interview.

                           Payments Due

Rosneft has five joint ventures in Venezuela with PDVSA.

The Caracas-based company faces US$4.3 billion in bond payments
this year, while the government is scheduled to pay US$3.3
billion, according to data compiled by Bloomberg.

Venezuela's state energy company will sell as much as US$5 billion
of dollar bonds due in 2024 to state banks, with an interest rate
of 6 percent, it said May 14, Bloomberg News discloses.  Banks
probably will sell the notes to importers, who will raise dollars
by selling them to overseas investors, according to Tamara
Herrera, chief economist at financial research firm Sintesis
Financiera, Bloomberg News relays.

Controls imposed under late-President Hugo Chavez have left
importers unable to access foreign currency, with the resulting
shortages spurring three months of protests against President
Nicolas Maduro's government that left 42 people dead, Bloomberg
News notes.

Venezuela may have foreign-currency arrears to importers of as
much as US$13 billion, up from US$9 billion at the end of 2013,
Morgan Stanley said in a note on May 9, Bloomberg News relays.

Bloomberg News relates that the country allowed the bolivar to
plunge 88 percent in March in a new market known as Sicad II.
State banks are allowed to sell dollar-denominated bonds under the
system to companies and individuals, who can then obtain hard
currency by turning to the secondary bond market, Bloomberg News
adds.


                            ***********


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.

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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, and Peter A.
Chapman, Editors.

Copyright 2014.  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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