TCRLA_Public/140606.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, June 6, 2014, Vol. 15, No. 111


                            Headlines



B R A Z I L

BV FINANCEIRA: Moody's Cuts Mezzanine Sub. Share Rating to Caa2.br
COMPANHIA DE SANEAMENTO: Posts BRL2.8B Net Operating Revenue in 1Q
LUPATECH SA: June 26 U.S. Hearing on Chapter 15 Recognition


C A Y M A N  I S L A N D S

EAGLE INVESTOR VI: Members' Final Meeting Set for June 11
EAGLE INVESTOR VII: Members' Final Meeting Set for June 11
EAGLE INVESTOR VIII: Members' Final Meeting Set for June 11
EAGLE INVESTOR X: Members' Final Meeting Set for June 11
FORTUNE NEST: Creditors to Hold Meeting on June 10

SETTEMBRINI LIMITED: Members' Final Meeting Set for June 20
SOFAER CAPITAL ASIA: Members' Final Meeting Set for June 11
SOFAER CAPITAL PACIFIC: Members' Final Meeting Set for June 11
SOFAER CAPITAL PRIVATE: Members' Final Meeting Set for June 11
VALINOR CREDIT: Shareholder to Hear Wind-Up Report on June 24


D O M I N I C A N   R E P U B L I C

DOMINICAN REP: Warned Against Dipping Into US$5.8B Pension Fund


E C U A D O R

ECUADOR: Used Gold Reserves for Goldman Sachs Loan Collateral


M E X I C O

CEMEX SAB: EU Regulators to Clear Holcim, Firm Deal in Germany


                            - - - - -


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B R A Z I L
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BV FINANCEIRA: Moody's Cuts Mezzanine Sub. Share Rating to Caa2.br
------------------------------------------------------------------
Moody's America Latina Ltda. has downgraded the ratings on the
mezzanine shares issued by BV Financeira FIDC VI (FIDC BV VI) and
placed the ratings on the senior and mezzanine shares issued by
FIDC BV VI on review for downgrade.

FIDC BV VI is a closed-end transaction, with a legal final
maturity in October 2016. The seller distributed the senior and
mezzanine shares to qualified investors through a restricted
public placement (ICVM 476) and retained all of the junior shares.
The shares are backed by a pool of auto loans originated by BV
Financeira S.A. -- Credito, Financiamento e Investimento (BV
Financeira, not rated).

Issuer: BV Financeira FIDC VI

Senior Shares - A2.br (sf) (National Scale) & Ba3 (sf) (Global
Scale, Local Currency) ratings placed on review for downgrade

Mezzanine Subordinated Shares -- ratings downgraded to Caa2.br
(sf) from B1.br (sf) (National Scale, Local Currency) & to Caa2
(sf) from Caa1 (sf) (Global Scale, Local Currency); ratings placed
on review for further downgrade

Ratings Rationale

Moody's rating action is based mainly on (1) a decline in excess
spread and breach of the excess spread trigger, (2) low
provisioning levels, and (3) weak transaction governance.

As of March 2014, 40% of the FIDC assets were in the form of cash
and cash equivalents and 60% in the form of receivables. Since
September 2013, the 4.5% excess spread trigger has been breached.
As of March 2014 the transaction's excess spread, which is
calculated as the difference between the yield on the assets and
the yield on the shares minus expenses, over the loan portfolio
had declined to 0.4% . The decline in excess spread was due to (1)
the negative carry on the large amount of cash and equivalents the
FIDC holds and (2) the rise in interest rates in Brazil, which are
above the interest rates used in the discount rate at each sale of
receivables, when the seller determined the purchase price for the
assets that the fund purchased.

In addition, in Moody's view, the current provisioning levels will
not cover all of the potential losses in the pool. As per
Brazilian regulation, Votorantim Asset Management (not rated), the
fund's trustee, is responsible for adequate loss provisioning. As
of March 2014, it had provisioned BRL89.3 million, but receivables
180-plus days past due amounted to BRL211.9 million. Further, the
sum of the receivables up to 90 days past due and cash and cash
equivalents was lower than the sum of the outstanding senior and
the mezzanine shares, indicating that the assets available are
likely to be insufficient to cover both senior and mezzanine
shares.

The inadequate provisioning levels increase the likelihood of
losses on the senior shares if the trust continues to make
payments pro-rata to both senior and subordinated shares, as it
has been making to date. Reported subordination as of March 2014
was 27.9%, above the 25% minimum that allows pay down of the
mezzanine shares. However, the amount of the pool represented by
receivables up to 90 days past due plus cash and cash equivalents
continues to decline and currently provides less than 100%
coverage of the senior and the mezzanine shares, at 97% . If
provisioning is inadequate, the senior shares will likely also
incur in losses because the mezzanine shares will continue to be
paid and amortized as long as the 25% subordination is met,
despite the fact that losses and the amount of seriously
delinquent receivables continue to increase. As of March 2014,
15.3% of the FIDC's outstanding receivable pool balance was more
than 180 days past due (having increased from BRL 89.7 million in
March 2013 to BRL 211.9 million as of March 2014). Moody's notes
that installments over 180 days past due (without accounting for
installments on those loans that are not yet due and payable)
reached 2.3% of the net asset value and the annualized loss rate
was 10.1% as of March 2014.

Moody's is also concerned about the transaction's weak governance.
The excess spread trigger has been in breach since September 2013.
While the trustee states to be in conversations with the senior
shareholder, according to the transaction documents the breach
requires that the fund's trustee, Votorantim Asset Management,
call for a shareholders' meeting, but the meeting has yet to be
called. At this meeting investors could decide on early
amortization, which would benefit the senior shares because all
collections would then be applied sequentially to pay down the
senior shares, without any payments to subordinated shares until
senior shares have paid down in full.

During the review period, Moody's will focus on the outcome of any
shareholders' meeting regarding the early amortization of the
transaction, the performance of the collateral, the level of
provisioning and improvements in transaction governance.

Stress Scenarios:

Moody's analyzed the transaction based on a stress scenario
assumption of 15% in the CDI forward rate and annualized losses at
8%.

Factors That Would Lead To An Upgrade Or Downgrade Of The Rating:

Factors that would lead to a downgrade are further deterioration
in collateral performance, persistently low provisioning standards
with payments on a pro-rata basis between senior and mezzanine
shares and weak transaction governance.

Rating Methodology

The principal methodology used in this rating was "Moody's
Approach to Rating Auto Loan-Backed ABS," published in May 2013.



COMPANHIA DE SANEAMENTO: Posts BRL2.8B Net Operating Revenue in 1Q
------------------------------------------------------------------
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP
posted its results for the first quarter 2014.

In first quarter 2014, net operating revenue reached BRL2.8
billion; a 5.6% increase compared to 1Q13.

Costs and expenses, including construction costs, increased 6.1%,
from BRL1.9 billion in 1Q13 to BRL2.0 billion this quarter.

EBIT grew 4.0%, from BRL726.3 million in 1Q13 to BRL755.6 million
in 1Q14.

Adjusted EBITDA increased 10.2%, from BRL921.5 million in 1Q13 to
BRL1,015.8 million in 1Q14.

The adjusted EBITDA margin moved from 34.8% in 1Q13 to 36.4% in
1Q14.  Excluding construction revenues and construction costs, the
adjusted EBITDA margin was 44.5% in 1Q14 (42.4% in 1Q13).

Net income dropped 3.7%, from BRL496.2 million in 1Q13 to BRL477.6
million in 1Q14.

Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP
provides basic and environmental sanitation services; and supplies
treated water on a wholesale basis to residential, commercial,
industrial, and governmental customers in the state of Sao Paulo.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on May
27, 2014, Fitch Ratings has affirmed Companhia de Saneamento
Basico do Estado de Sao Paulo's (Sabesp) foreign currency and
local currency Issuer Default Rating (IDR) at 'BB+' and its
National long-term rating at 'AA(bra)'.  The Rating Outlook has
been revised to Negative from Stable.


LUPATECH SA: June 26 U.S. Hearing on Chapter 15 Recognition
-----------------------------------------------------------
In the Chapter 15 cases of Lupatech S.A., and its four affiliates,
U.S. Bankruptcy Judge Stuart M. Bernstein on May 27 entered an
order granting provisional, injunctive and related relief pursuant
to Sections 1519 and 105(a) of the Bankruptcy Code.  The
Provisional Order, among other things, enjoins actions in the U.S.
in contravention of orders of the court in Sao Paulo, Brazil,
where Lupatech's restructuring proceedings are pending, from the
date of entry of the provisional order through and including the
date of the hearing to consider Chapter 15 recognition of the
Brazilian cases.

Also on May 27, Judge Bernstein directed the joint administration
of the Debtors' Chapter 15 cases.

The Court will hold a hearing June 26 at 10:00 a.m (prevailing
Eastern Time) to consider approval of the Chapter 15 petition and
granting recognition of the case as a foreign main proceeding
under Chapter 15.  Responses or objections to the Chapter 15
petition or the Recognition Motion filed by Lupatech's foreign
representative are due June 19.

All holders of Lupatech Finance Limited's 9.875% Guaranteed
Perpetual Bonds are eligible to exchange their unsecured bonds for
new debt and equity securities.  Ricardo Doebell, in his capacity
as the foreign representative, anticipates that unsecured bonds
that are not tendered for exchange into new securities by the
applicable deadline will be extinguished.  Mr. Doebell is
encouraging all holders of the unsecured bonds that have not
already done so to tender their unsecured bonds.

More information or assistance in tendering the unsecured bonds in
exchange for new securities may be obtained at:

     THE GARDEN CITY GROUP INC
     P.O. Box 10024
     Dublin, OH 43017-6624 (by email)
     Tel: 800-203-4910 (domestic telephone call)
          614-763-6114 (international telephone call)

Objections to the Chapter 15 petition or the Recognition Motion
must be served to:

     -- SHEARMAN & STERLING LLP
        Douglas P. Bartner, Esq.
        Robert A. Britton, Esq.
        599 Lexington Avenue
        New York, NY 10022
        E-mail: robert.britton@shearman.com

     -- EMMET MARVIN & MARTIN LLP
        Edward P. Zujkowski, Esq.
        120 Broadway, 32nd Floor
        New York, NY 10271
        E-mail: ezujkowski@emmetmarvin.com

     -- BINGHAM McCUTCHEN LLP
        Timothy B. DeSieno, Esq.
        399 Park Avenue
        New York, NY 10022-4689
        E-mail: tim.desieno@bingham.com

As reported by the Troubled Company Reporter, Lupatech is seeking
U.S. recognition of its restructuring proceedings in Brazil to
implement a joint prepackaged reorganization plan negotiated with
creditors.  Lupatech owes US$302.5 million on unsecured bonds and
US$179.1 million on unsecured debentures that are 92.5 percent-
held by BNDES Participacoes S.A. -- BNDESPAR -- a wholly owned
subsidiary of the Brazilian Development Bank.  The Plan filed in
the Federative Republic of Brazil does not directly affect any of
the Debtors' stakeholders except the bondholders.  The Plan has
been accepted by holders of $237.9 million of the total principal
amount of unsecured bonds, representing 86.52% in principal amount
of the unsecured bonds.

The Plan proposes to give bondholders new notes for 15 percent of
the existing debt.  For the other 85 percent, the noteholders
receive shares in Lupatech's capital stock, or American Depositary
Shares ("ADS").  The ADSs and shares will be issued at an exchange
price equal to R$0.25 per share, and in an aggregate amount equal
to 85% of the outstanding aggregate principal and accrued and
unpaid interest under the unsecured bonds.  Lupatech S.A.'s
existing shareholders hold a right of first refusal over the
issuance of the shares, and may elect to exercise such right to
acquire such shares at face value for cash at the stated exchange
price of R$0.25 per Share.

Because of significant creditor support, which satisfies relevant
approval thresholds under the Brazilian Business Recovery Law, and
because to date the Debtors have received no objections to the
Plan in the Brazilian Proceeding, the Debtors anticipate that the
Brazilian Court will homologate the Plan.

The consensual resolution of a significant amount of the Lupatech
Group's debt other than the Unsecured Bonds is a condition
precedent to the effectiveness of the Plan.  Most significantly,
BNDESPAR and, potentially, other holders of the Debentures must
agree to exchange their Debentures into new real denominated
debentures representing 15% of the aggregate outstanding amount of
the Debentures and, if they so elect, Shares in an aggregate
amount equal to 85% of the outstanding aggregate principal amount
and accrued and unpaid interest under the Debentures at the
exchange price of R$0.25 per Share.  BNDESPAR may not hold more
than 33% of Lupatech S.A.'s issued share capital, and the Proposed
Plan provides that it therefore may be issued additional new real
denominated debentures representing its right to additional equity
if the conversion described above would otherwise lead to its
holding more than 33% of Lupatech S.A.'s Shares.

In addition, (a) no less than R$52 million of the Lupatech Group's
secured debt must be restructured by a six-year extension of
maturity, (b) no less than R$15 million of the Lupatech Group's
unsecured debt owed to parties affiliated with the current
shareholders of Lupatech S.A. must be restructured on terms
identical to the restructuring of the Debentures, and (c) no less
than R$192 million of the Lupatech Group's unsecured or partially
secured debt must be exchanged for either (i) debt bearing an
interest rate of 3.00% per annum, with payments commencing four
years from the effective date of the Plan and principal amortized
over a period of eight years commencing with the first payment of
such debt, or (ii) Shares at the exchange price of R$0.25 per
Share.

                       Road to Bankruptcy

According to CEO Ricardo Doebeli, the Lupatech Group's current
financial distress is the result of several factors, including an
aggressive process of more than 20 acquisitions mostly executed
prior to the 2008 global financial crisis, a lack of integration
between units with significant synergy potential, the global
economic crisis that commenced in 2008, intense international
competition, excessive leverage in light of economic conditions,
and changes in the investment plans of Petroleo Brasileiro S.A.,
or Petrobras, Brazil's state-owned oil company and the Lupatech
Group's single largest customer.

Lupatech's operations focused predominantly on manufacturing
operations until 2006.  Following its public offering in 2006,
which increased its financial resources, the Lupatech Group began
to expand its activities through the acquisition of several
companies whose operations were geared toward oil services
operations.  Proceeds from the issuance of the Unsecured Bonds and
the Debentures were also used, in large part, to fund such
acquisitions, which substantially increased the Lupatech Group's
total indebtedness.

The global financial crisis that began in 2008 led to lower than
expected utilization of all of the Lupatech Group's plants,
equipment, and services.  This low utilization rate combined with
increased leverage from debt issuances contributed to a rapid
deterioration of the Lupatech Group's financial position.

Since at least early 2012, the Lupatech Group has been
experiencing serious liquidity shortfalls and, as a result, it has
been unable to make investments necessary to grow its operations
and reduce its backlog.  At the same time, marked appreciation of
the U.S. dollar versus the Brazilian real has significantly
increased costs associated with interest expense on the Unsecured
Bonds in terms of Lupatech's consolidated Brazilian real results.

Lupatech S.A. has been unable to fund any payments on the
Debentures since 2012.  On April 10, 2013, the Lupatech Group
announced publicly that it would be unable to pay interest due on
the Unsecured Bonds.

In early 2013, the Lupatech Group began to engage in negotiations
with its significant creditor constituencies, including a subset
of the Bondholders led by BroadSpan Capital and BNDESPAR.  During
this period, the Lupatech Group engaged Bank of America Merrill
Lynch Banco Multiplo S.A. as a financial advisor to assist in
negotiations with its significant creditor groups.  Those
negotiations eventually led to the agreements that form the basis
for the commencement of the Brazilian proceeding and the Chapter
15 cases.

                        About Lupatech SA

Lupatech Group is a Brazilian provider of highly technical
components and related specialized services principally within the
oil, gas, and foundry industries in Latin America and throughout
the world.  Lupatech's operations began in 1980 in Brazil and
currently consist of 32 separate business units organized into two
main business segments, divided into three countries in Latin
America -- Brazil, Colombia and Argentina.

Lupatech S.A. and its affiliates filed Chapter 15 bankruptcy
petitions (Bankr. S.D.N.Y. Lead Case No. 14-11559) in Manhattan,
New York on May 23, 2014, so the U.S. court can enforce a debt-
reduction plan nearing approval in Brazil.

Based in Nova Odessa in the State of Sao Paulo, Lupatech owes
US$302.5 million on unsecured bonds and US$179.1 million on
unsecured debentures that are 92.5 percent-held by Brazilian
Development Bank.

Lupatech's total indebtedness at the end of the fourth quarter of
2013 was US$851.1 million.  As of Dec. 31, 2013, the Lupatech
Group reported current assets of US$161.2 million and current
liabilities of US$754.4 million.  For 2013, Lupatech reported
total revenue of US$241.3 million.

Lupatech and its affiliates are seeking joint administration of
their Chapter 15 cases.  Ricardo Doebeli is the CEO and Lupatech
serves as the foreign representative in the U.S.  Lupatech's
counsel in the Chapter 15 case is Douglas P. Bartner, Esq., at
Shearman & Sterling LLP, in New York.  The Garden City Group,
Inc., is the agent under the proposed plan.


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


EAGLE INVESTOR VI: Members' Final Meeting Set for June 11
---------------------------------------------------------
The members of Eagle Investor VI Inc will hold their final general
meeting on June 11, 2014, at 10:50 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Krys Global VL Services Limited
          Governor's Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 21237 Grand Cayman KY1-1205
          Cayman Islands
          Telephone: +1 (345) 947 4700
          Facsimile: +1 (345) 946 6728


EAGLE INVESTOR VII: Members' Final Meeting Set for June 11
----------------------------------------------------------
The members of Eagle Investor VII Inc will hold their final
general meeting on June 11, 2014, at 11:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Krys Global VL Services Limited
          Governor's Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 21237 Grand Cayman KY1-1205
          Cayman Islands
          Telephone: +1 (345) 947 4700
          Facsimile: +1 (345) 946 6728


EAGLE INVESTOR VIII: Members' Final Meeting Set for June 11
-----------------------------------------------------------
The members of Eagle Investor VIII Inc will hold their final
general meeting on June 11, 2014, at 11:10 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Krys Global VL Services Limited
          Governor's Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 21237 Grand Cayman KY1-1205
          Cayman Islands
          Telephone: +1 (345) 947 4700
          Facsimile: +1 (345) 946 6728


EAGLE INVESTOR X: Members' Final Meeting Set for June 11
--------------------------------------------------------
The members of Eagle Investor X Inc will hold their final general
meeting on June 11, 2014, at 11:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Krys Global VL Services Limited
          Governor's Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 21237 Grand Cayman KY1-1205
          Cayman Islands
          Telephone: +1 (345) 947 4700
          Facsimile: +1 (345) 946 6728


FORTUNE NEST: Creditors to Hold Meeting on June 10
--------------------------------------------------
The creditors of Fortune Nest Corporation will convene a meeting
on June 10, 2014, at 10:00 a.m.

The company's liquidator is:

          Ian Stokoe
          c/o PwC Corporate Finance & Recovery (Cayman) Limited
          P.O. Box 258 Strathvale House
          North Church Street, George Town
          Grand Cayman
          Cayman Islands
          Facsimile: (345) 945 4237


SETTEMBRINI LIMITED: Members' Final Meeting Set for June 20
-----------------------------------------------------------
The members of Settembrini Limited will hold their final general
meeting on June 20, 2014, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

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


SOFAER CAPITAL ASIA: Members' Final Meeting Set for June 11
-----------------------------------------------------------
The members of Sofaer Capital Asia Private Equity Fund will hold
their final general meeting on June 11, 2014, at 6:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Appleby (Cayman) Ltd.
          c/o Sophie Benbow
          Telephone: (345) 949 4900
          P.O. Box 190 Clifton House, 75 Fort Street
          Grand Cayman KY1-1104
          Cayman Islands


SOFAER CAPITAL PACIFIC: Members' Final Meeting Set for June 11
--------------------------------------------------------------
The members of Sofaer Capital Pacific Private Equity Fund will
hold their final general meeting on June 11, 2014, at 6:00 a.m.,
to receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Appleby (Cayman) Ltd.
          c/o Sophie Benbow
          Telephone: (345) 949 4900
          P.O. Box 190 Clifton House, 75 Fort Street
          Grand Cayman KY1-1104
          Cayman Islands


SOFAER CAPITAL PRIVATE: Members' Final Meeting Set for June 11
--------------------------------------------------------------
The members of Sofaer Capital Global Private Equity Fund will hold
their final general meeting on June 11, 2014, at 6:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Appleby (Cayman) Ltd.
          c/o Sophie Benbow
          Telephone: (345) 949 4900
          P.O. Box 190 Clifton House, 75 Fort Street
          Grand Cayman KY1-1104
          Cayman Islands


VALINOR CREDIT: Shareholder to Hear Wind-Up Report on June 24
-------------------------------------------------------------
The sole shareholder of Valinor Credit Partners Offshore, Ltd.
will hear on June 24, 2014, at 10:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Ogier
          c/o Nicosia Lawson
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands
          Telephone: (345) 815 1787
          Facsimile: (345) 949-9877


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D O M I N I C A N   R E P U B L I C
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DOMINICAN REP: Warned Against Dipping Into US$5.8B Pension Fund
---------------------------------------------------------------
Dominican Today reports that the Institutionalism and Justice
Foundation (FINJUS) stated "grave concern" for some aspects of the
bill to transform the National Housing Bank (BNV) into Dominican
Republic's Export Development Bank (BANDEX) because it would
violate the Constitution and "constitute serious institutional
distortions and  injure the country's judicial framework and
economic stability."

Finjus said article 26 of the bill violates articles 217 and 218
of the Constitution and other legislation when it requires
insurance companies and pension funds to invest and deposit 10% of
their funds in the Bandex respectively, according to Dominican
Today.  Articles 217 and 218 state that the country's economic
system is based free enterprise.

Dominican Today relates that the prominent NGO notes that the
Monetary Board should previously study the bill and observe the
recommendations by the Cooperation and Economic Development
Organization (OECD) for State-owned enterprises.

"FINJUS expresses grave concern regarding the content of the bill
that creates the BANDEX, due to its possible negative implications
on the stability of the economic system.  We also consider that it
is extremely healthy for the stability of the economic system that
a bill of this nature is previously studied and approved by the
Monetary Board, which was not noted on this occasion," said the
statement signed by the legal think tank's executive Director
Serbio Tulio Castanos Guzman, the report notes.

Last week the government announced a plan to use part of the
US$5.8 billion pension fund to recapitalize the BNV, one of the
most corruption-plagued agencies in the country, the report adds.


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E C U A D O R
=============


ECUADOR: Used Gold Reserves for Goldman Sachs Loan Collateral
-------------------------------------------------------------
Nathan Gill at Bloomberg News reports that Ecuador President
Rafael Correa said proceeds from a loan obtained from Goldman
Sachs Group Inc. after he offered more than half the country's
gold reserves as collateral will go toward investing in economic
growth.

The government, faced with a budget deficit forecast to hit a
record this year, said last week that it "invested" 466,000 ounces
of gold with Goldman Sachs in return for "instruments of high
security and liquidity," according to Bloomberg News.  The
transaction added to reserves of "monetary gold" and would
generate as much as $20 million in profit, according to a central
bank statement obtained by Bloomberg News.

Bloomberg News notes that the gold reserves "serve as collateral
for a loan," Mr. Correa told reporters at the presidential palace
in Quito.  "With this loan, we can invest in the country,"
Bloomberg News quoted Mr. Correa as saying.

Bloomberg News notes that the deal, amounting to 1,165 gold bars
worth about $580 million at current prices, comes on top of
government attempts to sell about $700 million of bonds this year
in what would be the nation's first foreign debt sale since it
defaulted on $3.2 billion of its notes in 2008 and 2009.

Bloomberg News discloses that Ecuador's government hasn't
sufficiently explained the operation with Goldman Sachs and the
difference between the central bank's original statement and Mr.
Correa's comments, said Luis Fernando Torres, a congressional
representative for Tungurahua province.  The government has
liquidity problems and has begun delaying payments to some public
officials, he said, Bloomberg News relays.

"An investment and a loan are two totally different things," Mr.
Torres said in an interview at the nation's Congress in Quito,
Bloomberg News discloses.  "This operation is baffling," Mr.
Torres added, Bloomberg News notes.

                            $10 Billion

Mr. Correa's administration is also in talks with China to finance
a $10 billion refinery in the coastal province of Manta, Strategic
Sectors Minister Rafael Poveda said at the event in Quito,
Bloomberg News relates.  The government expects to sign a deal for
$2 billion in August, of which $500 million will be for the
government's discretionary use, he said, Bloomberg News notes.

Bloomberg News discloses that the Finance Ministry forecasts the
government will need about $4.94 billion to cover this year's
budget deficit.  The government has said that if it doesn't find
the funds to finance the gap, it will cut spending on budgeted
infrastructure projects, Bloomberg News adds.


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


CEMEX SAB: EU Regulators to Clear Holcim, Firm Deal in Germany
--------------------------------------------------------------
Foo Yun Chee at Reuters reports that cement maker Holcim will win
EU antitrust approval for acquiring the German operations of
Mexican rival CEMEX, S.A.B. de C.V., two people with direct
knowledge of the matter said, as one side of a swap that gives
Cemex assets in Spain.

The European Commission is investigating Holcim's plan to swap its
assets in Spain for Cemex's operations in Germany due to concerns
that the deal may reduce competition and result in higher prices
in both countries, according to Reuters.

Reuters notes that sources said the EU competition authority would
clear the German deal unconditionally.

The Commission is scheduled to decide on the German deal by July 8
and the Spanish case by Sept. 5.  The companies unveiled the asset
swap plan in August last year, Reuters relates.

Reuters notes that the Czech competition agency has already
cleared a third element of the deal under which Cemex purchased
Holcim's Czech business.

Holcim is also preparing to seek clearance for a plan to buy
French rival Lafarge to create the world's biggest cement maker.
The companies intend to sell about EUR5 billion of assets to ease
competition concerns, Reuters adds.

                         About CEMEX SAB

Mexican corporation CEMEX, S.A.B. de C.V., is a holding company
of entities which main activities are oriented to the
construction industry, through the production, marketing,
distribution and sale of cement, ready-mix concrete, aggregates
and other construction materials.  CEMEX is a public stock
corporation with variable capital (S.A.B. de C.V.) organized
under the laws of the United Mexican States, or Mexico.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 27, 2014, Standard & Poor's Ratings Services assigned its
'B+' issue-level rating and a recovery rating of '3' to CEMEX
Finance LLC's proposed 10-year benchmark dollar bonds and EUR300
million senior secured notes due 2021.  The recovery rating of '3'
indicates that bondholders can expect a meaningful (50% to 70%)
recovery in the event of a payment default.


                            ***********


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.

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, 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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