TCRLA_Public/140627.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 27, 2014, Vol. 15, No. 126


                            Headlines



B R A Z I L

OAS FINANCE: Moody's Rates $400MM Sr. Unsecured Notes 'B1'
OAS FINANCE: S&P Assigns 'BB-' Rating to Proposed Sr. Notes


C A Y M A N  I S L A N D S

CALLIDUS DEBT: Commences Wind-Up Proceedings
DKR WOLF: Creditors' Proofs of Debt Due July 8
DKR WOLF HOLDING: Creditors' Proofs of Debt Due July 8
ELUSTRIA CAPITAL: Creditors' Proofs of Debt Due July 17
EUCLID MASTER: Creditors' Proofs of Debt Due July 8

EUCLID OFFSHORE: Creditors' Proofs of Debt Due July 8
FAIRFIELD WILSHIRE: Shareholders' Final Meeting Set for July 9
VINCI GAS: Creditors' Proofs of Debt Due July 8
VINCI GAS MASTER: Creditors' Proofs of Debt Due July 8
VINCI GAS OFFSHORE: Creditors' Proofs of Debt Due July 8


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Energy Supply 'Seriously Vulnerable'
XSTRATA PLC: Dominican Rep Poised to Dash Glencore's Mine Plan


G U Y A N A

* GUYANA: To Get $37.6MM IDB Loan to Strengthen Electricity System


M E X I C O

CORPOVAEL S.A.: Moody's Assigns Ba3 Rating to MXN300MM Certs.


P E R U

INRETAIL SHOPPING: Moody's Assigns Ba2 Senior Unsecured Rating


P U E R T O   R I C O

CUE & LOPEZ: Oriental Bank Wants to Continue State Court Action
PUERTO RICO: Governor Aims to Revamp Debt of Public Corporations


T R I N I D A D  &  T O B A G O

CARIBBEAN AIRLINES: Share of US Market Plunged Last Year


                            - - - - -


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B R A Z I L
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OAS FINANCE: Moody's Rates $400MM Sr. Unsecured Notes 'B1'
----------------------------------------------------------
Moody's Investors Service has assigned a B1 foreign currency
rating to the proposed USD400 million 7-year senior unsecured
notes to be issued by OAS Finance Limited (OFL), a wholly-owned
finance subsidiary of OAS S.A. (OAS). The notes will be
unconditionally and irrevocably guaranteed by OAS, Construtora OAS
S.A. and OAS Investimentos S.A. The outlook for the rating is
stable.

The proceeds from the note will be primarily used for liability
management at OAS. The rating of the proposed notes assumes that
the final transaction documents will not be materially different
from draft legal documentation reviewed by Moody's to date and
that these agreements are legally valid, binding and enforceable.

Ratings assigned:

Issuer: OAS Finance Limited (OFL)

  USD400 million senior unsecured notes due 2021: B1

Ratings unchanged:

Company: OAS S.A. (OAS)

  Corporate Family Rating: B1

Issuer: OAS Finance Limited (OFL)

  USD500 million Perpetual Notes: B1

Issuer: OAS Investments GmbH (OIG)

  USD875 million senior unsecured notes due 2019: B1

The outlook for all ratings is stable.

Ratings Rationale

OAS's B1 rating reflects the company's good position in the
Brazilian construction market, experienced management team, solid
track record of execution, and strong construction backlog of
BRL20.2 billion that provides visibility for near term revenue
generation. The rating also considers the recent improvement in
the company's liquidity position and evolving corporate governance
practices. The positive prospects for the construction industry in
Brazil, related to significant infrastructure development needs,
further support the rating and stable outlook.

Constraining OAS' rating is its high leverage resulting from the
debt-funded expansion of the concession business and the company's
decision to expand its construction segment internationally in
recent years. While Moody's expect a gradual leverage reduction
over the following years, the rating remains constrained by OAS's
relative small size when compared to its global and local peers,
both in terms of revenues and backlog.

The proposed USD400 million issuance is part of the company's
liability management strategy, as the majority of the net proceeds
will be used to prepay existing banking debt of OAS, comprising
local secured and unsecured debentures and financings issued in
Brazilian reais. Moody's sees no immediate impact on cash flow
generation nor significant change in leverage following the
issuance.

The proposed issuance will contribute to an improvement in OAS
consolidated debt maturity profile and a reduction in its overall
cost of debt. On the other hand, it will increase the amount of
foreign currency debt in the company's capital structure to
approximately 52% of the total outstanding debt , up from 41% by
the end 2013. According to the management, the company will
continue to pursue its hedging strategy for protection of the cash
flow impact of foreign exchange variations over the next 5 years.
Moody's believes that the company is well protected in a scenario
of up to 27% devaluation of the local currency.

The stable outlook is based on Moody's expectations that OAS will
be successful in maintaining its presence and market share both in
the construction and infrastructure businesses. The outlook also
incorporates our expectation that the company's leverage will
decline overtime, with the increased contribution of dividends
from new projects, as well as stronger cash flows at the
construction segment.

The rating could be upgraded if OAS is able to sustain revenue
growth and adequate operating performance, while diversifying its
backlog into countries and regions other than Brazil (currently
representing 66% of total backlog).

Quantitatively, an upgrade of the rating would require leverage,
as measured by gross debt to adjusted EBITDA, to remain below
4.25x (7.8x as of December 31, 2013), and interest coverage, as
measured by adjusted EBITA to interest expense, to increase 2.25x
(1.0x as of December 31, 2013), along with an adequate liquidity
profile.

OAS' ratings could be downgraded if credit metrics or liquidity
deteriorate without expectation of improving in the near term, for
example, due to a deterioration in the operating environment
(stemming from economic slowdown and/or increased competition),
negatively impacting OAS' margins and revenue growth.
Quantitatively, negative pressure could come from funds from
operations to adjusted debt remaining in levels below 5% (7.2% as
of December 31, 2013) for a prolonged period.

The principal methodology used in this rating was Global
Construction Methodology published in November 2010.

Headquartered in Sao Paulo, Brazil, OAS S.A. (OAS) is a major
engineering, construction and infrastructure investment company in
Brazil. The company has presence in 19 countries, with
construction works in 16 countries: Brazil, 10 countries in Latin
America and five countries in Africa. OAS also has 23
infrastructure projects in its portfolio. In 2013, the company
generated consolidated net revenues of about BRL7.9 billion
(USD3.7 billion) and adjusted EBITA of BRL855 million (USD398
million).


OAS FINANCE: S&P Assigns 'BB-' Rating to Proposed Sr. Notes
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' rating to
OAS Finance Limited's proposed senior notes. OAS Finance is a
wholly-owned finance subsidiary of OAS S.A. (OAS).  The notes will
benefit from unconditional guarantee from OAS, Construtora OAS
S.A., and OAS Investimentos S.A.  S&P expects the company to use
the proceeds of this issuance for refinancing activities amid to
reduce its debt cost.

The issue-level rating reflects the credit quality of OAS (BB-
/Negative/--).  Although OAS is a nonoperating holding company
entitled only to the residual net worth of the operating
companies, S&P believes the potential structural subordination is
mitigated by the upstream guarantee from all of its operating
subsidiaries.

S&P's 'BB-' rating on OAS reflects its experience and favorable
track record in the Brazilian engineering and construction
industry.  The group also has more than R$20 billion in backlog as
of March 2014 that, in S&P's view, provides a relatively high
predictability for revenues and cash generation in the next two
years.  The negative outlook is based on group's slower-than
expected debt reduction due to losses in its homebuilding division
and some delays in Brazilian public-sector projects backlog.  The
outlook indicates a one-notch downgrade potential if OAS fails to
improve its credit metrics to levels more consistent with our
"aggressive" financial profile (net debt to EBITDA lower than 5x
and FFO to net debt of about 12%).

RATINGS LIST

OAS S.A.
  Corporate credit rating           BB-/Negative/--

Rating Assigned

OAS Finance Limited
  Senior notes                      BB-


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


CALLIDUS DEBT: Commences Wind-Up Proceedings
--------------------------------------------
At an extraordinary general meeting held on May 27, 2014, the
shareholders of Callidus Debt Partners CDO Fund I, Ltd resolved to
voluntarily wind up the company's operations.

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

The company's liquidator is:

          Commerce Corporate Services Limited
          P.O. Box 694 Grand Cayman
          Cayman Islands
          Telephone: 949 8666
          Facsimile: 949 0626


DKR WOLF: Creditors' Proofs of Debt Due July 8
----------------------------------------------
The creditors of DKR Wolf Point Fund Ltd. are required to file
their proofs of debt by July 8, 2014, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on June 5, 2014.

The company's liquidator is:

          Richard Fear
          c/o Daniel Woolston
          Telephone: (345) 814 7782
          Facsimile: (345) 945 3902
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands


DKR WOLF HOLDING: Creditors' Proofs of Debt Due July 8
------------------------------------------------------
The creditors of DKR WOLF Point Holding Fund Ltd. are required to
file their proofs of debt by July 8, 2014, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on June 5, 2014.

The company's liquidator is:

          Richard Fear
          c/o Daniel Woolston
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands
          Telephone: (345) 814 7782
          Facsimile: (345) 945 3902


ELUSTRIA CAPITAL: Creditors' Proofs of Debt Due July 17
-------------------------------------------------------
The creditors of Elustria Capital Partners Offshore Fund Ltd. are
required to file their proofs of debt by July 17, 2014, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on May 25, 2014.

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


EUCLID MASTER: Creditors' Proofs of Debt Due July 8
---------------------------------------------------
The creditors of Euclid Master Fund Ltd. are required to file
their proofs of debt by July 8, 2014, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on June 3, 2014.

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


EUCLID OFFSHORE: Creditors' Proofs of Debt Due July 8
-----------------------------------------------------
The creditors of Euclid Offshore Feeder Fund Ltd are required to
file their proofs of debt by July 8, 2014, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on June 3, 2014.

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


FAIRFIELD WILSHIRE: Shareholders' Final Meeting Set for July 9
--------------------------------------------------------------
The shareholders of Fairfield Wilshire Portable Alpha Fund, Ltd.
will hold their final meeting on July 9, 2014, at 12:30 p.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company commenced liquidation proceedings on June 5, 2014.

The company's liquidator is:

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


VINCI GAS: Creditors' Proofs of Debt Due July 8
-----------------------------------------------
The creditors of Vinci Gas Discovery Fund are required to file
their proofs of debt by July 8, 2014, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on May 5, 2014.

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


VINCI GAS MASTER: Creditors' Proofs of Debt Due July 8
------------------------------------------------------
The creditors of Vinci Gas Discovery Master Fund are required to
file their proofs of debt by July 8, 2014, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on May 26, 2014.

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


VINCI GAS OFFSHORE: Creditors' Proofs of Debt Due July 8
--------------------------------------------------------
The creditors of Vinci Gas Discovery Offshore Fund are required to
file their proofs of debt by July 8, 2014, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on April 24, 2014.

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


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


DOMINICAN REPUBLIC: Energy Supply 'Seriously Vulnerable'
--------------------------------------------------------
Dominican Today reports that Dominican Republic is "seriously
vulnerable" to the supply of energy since it consumes 140 million
barrels of oil daily, which it has to import.

Energy and Mines Minister Pelegrin Castillo said that the
country's liquid fuel reserves would last only one week; propane
gas for 12 days and 21 of natural gas, according to Dominican
Today.

The report notes that Mr. Castillo said it could be a bit more if
private storage infrastructure is included, "but they never exceed
the critical level, in a region full of risk and volatility."

The report relates that Mr. Castillo also warned against having
the country's energy infrastructure "dangerously stacked along its
southern coastline," between San Pedro in the east and Ocoa Bay in
the west.

The report notes that Mr. Castillo said the State must deal with
energy security through an active policy to explore for oil and
natural gas on land and sea.

Mr. Castillo added that the country will have to diversify its
energy base and cited as an example the conversion to natural gas
of existing power plants and the installation of coal-fired
plants, the report discloses.


XSTRATA PLC: Dominican Rep Poised to Dash Glencore's Mine Plan
--------------------------------------------------------------
Dominican Today reports that Chamber of Deputies president Abel
Martinez said the bill to create Loma Miranda National Park will
not be sent to Commission and would be immediately read as
approved by the Senate, announcement which dashes the planned mine
at the Central Mountain site by Glencore's local operation,
Falcondo.

Mr. Martinez said the full floor adopted the decision despite
calling a "straightjacket" the legislation sent by the Senate,
according to Dominican Today.  "The legislature is coming to an
end (in July) so we in the Chamber of Deputies must be cautious
but above all uphold the spirit of the law to declare Loma Miranda
a National Park which started in the Chamber of Deputies so that
this can become a reality," the report quoted Mr. Martinez as
saying.

The lawmaker said however that the Special Senate Committee report
reveals that the bill was amended in all its parts that makes it a
"straightjacket" for the deputies, the report notes.  "What would
have here is a new law, obviously mounted on a legislative fast
track process which started in the Chamber of Deputies, this for
us constitutes a straitjacket," Mr. Martinez said, the report
discloses.

As reported in the Troubled Company Reporter-Latin America on
Jan. 22, 2014, Dominican Today said that Chief Executive Officer
of Xstrata PLC's Falcondo reiterated that the company's presence
in the country depends on a long term mining, with cheap
electricity available, to produce and compete in world markets.
David Soares said they pin their hopes of extracting nickel at the
controversial site of Loma Miranda, between La Vega and Bonao
(central), for which they expect to get the mining permit,
according to Dominican Today.  But environmental and civil society
groups could keep them from carrying out the project, after the
Chamber of Deputies agreed with the protesters and passed a bill
which declares Loma Miranda a protected area, arguing that much of
the Cibao region's (north) water depends on it, the report
related.

Xstrata PLC is the operator of Falconbridge Dominicana, C. por A.
("Falcondo") with an 85.26% ownership.  Falcondo is a ferronickel
surface mining operation located in the Dominican Republic with
operations dating since 1971.

Headquartered in Zug, Switzerland, Xstrata PLC is a major producer
of coal, copper, nickel, primary vanadium and zinc and the largest
producer of ferrochrome


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G U Y A N A
===========


* GUYANA: To Get $37.6MM IDB Loan to Strengthen Electricity System
------------------------------------------------------------------
The Inter-American Development Bank approved loans totaling
approximately $37.6 million and has also secured non-reimbursable
investment financing from the European Union totaling
approximately $26.9 million to help boost the efficiency and
reliability of Guyana's power system through electricity loss
reduction measures, improvements in the operational capabilities,
and strengthening the management and corporate performance of the
country's utility, Guyana Power and Light, Inc. (GPL).

Reducing overall electricity losses can improve GPL's financial
performance, while alleviating the government's fiscal commitments
about the energy sector.  Guyana is expecting a significant
increase in electricity consumption during the next decade because
of the growth of its residential and commercial sectors and the
expected return of large customers to the national power grid.

GPL is now facing various challenges in trying to provide
additional electricity on an efficient and reliable basis, which
include high levels of electricity losses.  As Guyana's energy
demand increases, the distribution infrastructure will experience
greater stresses, and in turn, this will challenge GPL's
management and its ability to manage electricity supply.

Previous IDB experience in Guyana and other countries in the Latin
America and Caribbean region have proven the importance of
approaching electricity reduction measures in a way that tackles
both technical and commercial losses, while highlighting the value
of supporting improvements in management practices and operational
systems.

The Power Utility Upgrade Program is designed as a holistic,
integrated approach to support GPL with financing for critical
infrastructure investments and technical support for GPL's key
business areas.  This support should increase GPL's overall
performance, reinforce GPL's operational capabilities, and the
achievement of a sustained trend in overall loss reduction.

The three main components of this loan reflect this approach with
the following expected results:

(1) a sustained trend in overall loss reduction;
(2) an improved and accountable management performance against
consistent Key Performance Indicators and within minimum
international standards; and
(3) more modern, efficient, and reliable operational systems in
GPL.This new program will rehabilitate approximately 830
kilometers of GPL's distribution network by implementing an
integral approach to tackle overall losses while strengthening
GPL's management and technical capabilities.

Under the IDB's new and innovative Grant Leverage Mechanism, the
Guyana Power Utility Upgrade Program will be the first to be co-
financed with IDB resources and those to be provided on a non-
reimbursable basis by the European Union's Caribbean Investment
Facility (CIF).

The total estimated budget is US$64,573,000.  The IDB's financing
will consist of up to US$22,500,000 in credit from Ordinary
Capital loan resources for a 30-year term, a 6-year grace period.
A second IDB credit will total up to US$15,141,750 Ordinary
Capital/Fund for Special Operations "parallel loans" for a 40-year
term with a 40-year grace period.,.  The European Union is
expected to contribute EUR19,375,000 (equivalent to US
$26,931,250) through a Project Specific Grant (PSG), which will be
administered by the IDB.


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


CORPOVAEL S.A.: Moody's Assigns Ba3 Rating to MXN300MM Certs.
-------------------------------------------------------------
Moody's de Mexico has assigned Ba3 global scale and A3.mx national
scale ratings to Corpovael, S.A. de C.V. ("CADU")'s proposed MXN
300 million certificados bursatiles due 2017. In addition, Moody's
affirmed CADU's B1 corporate family rating and the Ba3/A3.mx
rating on its existing certificados burs tiles (CADU 12). The
rating outlook is stable.

The following ratings were assigned:

MXN 300 million proposed Certificados Bursatiles due 2017 . . .
Ba3 / A3.mx

The following ratings were affirmed:

Corpovael, S.A. de C.V. B1 Corporate Family Rating

MXN 300 million Certificados Bursatiles due 2015 (CADU 12). . .
Ba3 / A3.mx

Ratings Rationale

Corpovael's B1 CFR reflects its track record of solid earnings
growth, coupled with efficient operating processes and cost
controls in the midst of a challenging environment for Mexican
homebuilders. These positive factors are offset by the substantial
geographic concentration in the State of Quintana Roo, whose
economy is largely reliant on the tourism sector. Moreover,
mortgages used as take-out financing on the majority of
Corpovael's construction loans are allocated almost exclusively by
Mexican Workers' Housing Fund (INFONAVIT) and there is a relevant
reliance on the Mexican government's support for the housing
sector.

The Ba3 / A3.mx ratings for Corpovael's certificados burs tiles
(Mexican local bonds) consider the partial guarantee provided by
Sociedad Hipotecaria Federal (SHF, A3 stable). The partial
guarantee provides for full recovery on 50% of the instrument's
value in the event of default, while the other 50% is effectively
subordinated to secured debt in the company's capital structure
and at risk for high losses in the event of default. Absent the
partial guarantee, the certificados bursatiles would have been
rated below the B1 CFR, on the global scale.

For the last twelve months (LTM) ended in March 31, 2014,
Corpovael had revenues of USD 197 million, positioning the company
in the bottom of the homebuilders rated universe in terms of
scale. Moreover, Corpovael has a high concentration in Quintana
Roo, with more than 60% of total homes titled in that state for
the same period. Quintana Roo's economy is heavily reliant on the
tourism industry, home to the popular destinations of Cancun and
Playa del Carmen. As a result, the company's clients mainly
consist of workers directly or indirectly affiliated with the
tourism industry. While Cancun and Playa del Carmen have
maintained strong growth in local and foreign investments,
concentration in a region that is dependent on tourism is credit
negative. Mitigating the concentration risk is the fact that the
company has been able to gradually increase its geographic
diversification. In 2012, 95% of its revenues were generated in
the Quintana Roo state as compared to around 70% in 2013 and the
estimated 60% of total revenues in 2014. Moody's would view
further decrease in Quintana Roo's home titles, to around 50%, as
a credit positive for the company.

Corpovael ratings have been supported by its historically solid
credit metrics and operating margins. The company operates under a
fully integrated business model, in which it does not utilize
subcontractors, and has demonstrated therefore better cost
controls. Moreover, the company's leading position in its main
market has also supported performance stability over time.
Nevertheless, Cadu's profitability has been deteriorating over the
last few quarters. For the full year ended in 2013, the company's
EBIT margin was 17.9%, which negatively compares with the 21.7%
reported in the previous year, and came further down to 15.3% for
the LTM ended in March 31, 2014, as a consequence of weak first
quarter results.

According to Cadu, performance in 2013 was affected by the
strategy of increasing its footprint. The learning curve of
entering in new markets resulted in lower operating efficiency,
which should gradually normalize as it gains more experience
operating in the new regions. However, in Moody's view
profitability might not get back to historical levels, considering
the more challenging competitive environment. Moreover, the weak
1Q14 , with revenues 14% below the same quarter of 2013, was
driven by the low inventory levels as a result of a much stronger
than anticipated demand in the 4Q13. Moving forward, Moody's
expect the company to be able to re-build inventories in order to
meet its business plan for 2014.

As a consequence of the recent deterioration in profitability,
Corpovael's leverage and capital structure have weaken. For the
LTM ended in March 31, 2014, the company's debt to total
capitalization ratio was 47%, which negatively compares to 41% in
2012. Interest coverage was also reduced in the LTM to 4.0x from
5.1x in 2012. Although these current credit metrics are still
commensurate with the B1 rating category, they do not provide much
cushion for further softening.

Liquidity is weak mainly due to large debt maturities in the
upcoming years. As of March 31, 2014 Corpovael's short-term debt
represented approximately 42.5% of total debt, which could create
liquidity challenges if not refinanced timely. In April 2014, the
company paid down out of cash MXN 150 million related to a partial
amortization of its CADU 12 local notes. Also, part of the
proceeds from the proposed notes would be directed to refinance
bank debt. Approximately, MXN 70 million maturing in the short
term and MXN 70 million that have amortizations until 2018 and
collateral that will be released after the payment. Although the
recent actions will result in lower liquidity risk, it will still
be pressured by the around MXN 350 million in bank debt maturities
in 2015. These maturities are mainly tied to its development
projects, which amortize as the projects are sold. Mortgage
financing, used for construction loan take-outs, comes mainly from
the Mexican Workers' Housing Fund (INFONAVIT), a potential concern
because if the take-out financing for newly built homes delays,
could create liquidity pressures. Somewhat enhancing Corpovael's
liquidity are the around MXN 1.4 billion construction credit lines
(MXN 1 billion available) signed with Banamex and SHF maturing in
2016 and 2018, respectively. The company's four year land bank
also supports its liquidity position, since it allows for mid-term
growth without major capital commitment needs.

The stable outlook is supported by Moody's expectation that
Corpovael will be able to continue to grow in accordance with its
business plan while at least maintaining interest coverage,
leverage (as measured by Debt / Total Capitalization) and gross
margin ratios at 2013 full year levels. The stable outlook also
reflects Moody's expectation that Corpovael will improve its
liquidity through a timely refinancing of its upcoming debt
maturities and that it will continue to reduce its exposure to
Quintana Roo through expansion into other states in Mexico.

Rating improvements are not envisioned in the medium-term, given
the company's relatively small scale and low geographic
diversification. Moreover, a positive rating action would require
broader access to the capital markets and terming out its short-
term construction financing while moving towards a more unsecured
debt capital structure. Upward movement in the rating would also
require maintenance of its current credit metrics and operating
margins with a decrease in geographic concentration in the State
of Quintana Roo to closer to 50%.

Downward rating pressure would result from substantial missteps in
its growth and geographic diversification strategy, such as
significant postponement of new launches, construction delays and
reduction in new home sales. In addition, downward rating
movements would occur should total debt to total capitalization
levels rise closer to 50%, with gross margins below the mid-20%
range on a sustained basis and interest coverage including
capitalized interests falling consistently below 3.0x. Further
weakening of the company's liquidity profile, due to delays in
refinancing of upcoming debt maturities could also lead to a
negative rating action.

Headquartered in the city of Cancun in the Mexican state of
Quintana Roo, Corpovael, S.A. de C.V. is a privately owned
homebuilding company, controlled by the Vaca Elguero family and
operating through an integrated business model in the Mexican
states of Quintana Roo, Jalisco, Estado de M‚xico, Aguascalientes
and Guanajuato. The company is focused in the low income housing
segment and has a leading market position in the state of Quintana
Roo that will represent around 70% of Corpovael's total titled
houses in 2013. For the LTM ended in March 31, 2014 the company
had revenues of MXN 2,539 million and an EBITDA margin of around
15.6%.

The principal methodology used in this rating was Global
Homebuilding Industry published in March 2009.

The period of time covered in the financial information used to
determine Corpovael, S.A. de C.V.'s rating is between 12/31/2009
and 3/31/2014 (source: Bolsa Mexicana de Valores and the company).


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INRETAIL SHOPPING: Moody's Assigns Ba2 Senior Unsecured Rating
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Moody's Investors Service has assigned a Ba2 senior unsecured
rating to InRetail Shopping Malls, a Peruvian trust (fideicomiso
de titulizacion) that owns certificates of participation granting
rights to the proceeds from shopping malls owned by
Interproperties Holding and Interproperties Holding II.
Interproperties Holding and Interproperties Holding II control
Interproperties Peru, which owns all of the assets. The rating
outlook is stable. This is the first rating assigned to InRetail
Shopping Malls by the rating agency. Concurrently, Moody's has
affirmed the Ba3 senior secured rating of Interproperties Finance
Trust with a stable outlook and will subsequently withdraw it.

Ratings Rationale

InRetail Shopping Malls will issue up to US$300 million of senior
unsecured notes with a seven year maturity. The notes will have a
full and unconditional guarantee from InRetail Real Estate Corp.,
Interproperties Holding, Interproperties Holding II, InRetail
Properties Management S.R.L and Real Plaza S.R.L. The notes will
be pari passu to other existing and future unsecured debt of
InRetail Shopping Malls and the guarantors. Bondholders will have
claims to all assets owned by Interproperties Peru. The proceeds
will be used to redeem a US$185 million secured bond issued by
Interproperties Finance Trust, a subsidiary of InRetail Shopping
Malls, as well as to purchase land for a future development and
capex. The interest and principal payments on the notes are not
hedged. This creates foreign currency risk, which is somewhat
mitigated by InRetail Shopping Malls' collection of approximately
one-third of base rents in US dollars. Also, recent history
supports a stable Peruvian currency and Peru's financial system is
approximately 40% dollarized. However, any substantial currency
movements that would stress InRetail Shopping Malls' ability to
repay the bonds' debt service will place negative pressure on the
rating.

InRetail Shopping Malls' portfolio consists of 19 shopping malls,
of which three are solely managed, totaling approximately 554,000
square meters (m2) located in Lima and other provinces throughout
Peru. Moody's Ba2 senior unsecured rating incorporates the
company's industry leadership in the Peruvian shopping mall
sector, high occupancy, low near-term debt maturities, well-
laddered lease maturity schedule and experienced management team
with a proven track record in retail and development. These
strengths are mitigated by the company's small size in terms of
total assets, weak liquidity profile and high tenant, geographic
and asset concentration.

The stable rating outlook reflects Moody's expectation that
InRetail Shopping Malls will continue to prudently grow its
current portfolio while maintaining stable credit metrics and
adequate liquidity.

Positive ratings movement is unlikely in the intermediate term,
however would be predicated upon fully loaded fixed charge
coverage (interest expense, capitalized interest and principal
amortization) consistently above 3.0x, an increase in unencumbered
asset pool to above 80% of gross assets, secured debt levels below
5% and the development pipeline less than 15% of gross assets on a
sustained basis through real estate cycles. Negative rating
pressure would likely result from any material difficulty with the
execution and lease-up of the development pipeline (specifically
Puruchuco mall), rapid deceleration of tenants sales and increase
in mall vacancies, an inability to show adequate liquidity for the
next 24 months and Net Debt/EBITDA consistently above 5x.

The following rating was assigned with a stable outlook:

InRetail Shopping Malls -- Senior unsecured rating at Ba2

The following rating was affirmed with a stable outlook and will
subsequently be withdrawn:

Interproperties Finance Trust -- Senior secured rating at Ba3

Moody's last rating action with respect to Interproperties Finance
Trust was on November 8, 2011 when Moody's assigned a Ba3 senior
secured rating with a stable outlook.

InRetail Shopping Malls, is a shopping center owner and operator
in Peru with a total owned portfolio of 16 assets, representing
495,000 square meters (m2) of GLA. As of March 31, 2014, InRetail
Shopping Malls had total book assets of US$890 million and
shareholder equity of $578 million.

The principal methodology used in this rating was Global Rating
Methodology for REITs and Other Commercial Property Firms
published in July 2010.


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P U E R T O   R I C O
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CUE & LOPEZ: Oriental Bank Wants to Continue State Court Action
---------------------------------------------------------------
Oriental Bank and Trust asks the Bankruptcy Court to enter
judgment granting the continuance of a state court action against
Cue & Lopez Construction, Inc., et al.'s guarantors.

On March 20, 2013, Oriental filed a complaint against the Debtors,
contractors and co-defendants, as guarantors, with the Court of
First Instance of Puerto Rico, San Juan Section.

The State Court Action has been stayed against Cue & Lopez as a
result of its Chapter 11 filing.

The co-defendants are:

   * Frank Cue Garcia;
   * Frank Cue Fernandez;
   * Mario R. Lopez Bernal;
   * Mario R. Lopez Reinante, his spouse Juana Bernal Quintana and
     their conjugal partnership;
   * Jose M. Lopez Bernal his spouse Miriam Sanchez Salgado and
     their conjugal partnership;
   * Jesus O. Lopez Bernal, his spouse Myrna Toro Torres and their
     conjugal partnership.

The complaint in the State Court Action is for the collection of
money, foreclosure of pledge and mortgage and movable lien, with
six causes of action based on loans to Cue & Lopez for the
principal amount of $3,975,000 for a line of credit, evidenced by
promissory notes guaranteed by first mortgages over the Debtor's
realty, consisting of residential penthouse apartment 515,
Hillsview Plaza Condominium, Los Frailes Ward, Guaynabo, Puerto
Rico; lot 23 of Grand Palm II Development, Sabana Ward, Vega Alta,
Puerto Rico; apartment number 633 in Las Vistas of Gurabo
Condominium, Navarro Ward, Gurabo, Puerto Rico; and a second
mortgage on lots at Cupey Ward consisting of 450 square meters,
1,492 square meters; guaranteed by the co-defendants.

The outstanding principal amount of $3,975,000 is also secured by
the retainages relative to the Casa Maggiore construction project
up to $311,587.

Oriental Bank and Trust is represented by:

         William Santiago Sastre, Esq.
         DE DIEGO LAW OFFICES, PSC
         P.O. Box 79552
         Carolina, PR 00984-9552

                         About Cue & Lopez

San Juan, Puerto Rico-based Cue & Lopez Construction, Inc., sought
protection under Chapter 11 of the Bankruptcy Code on Oct. 4, 2013
(Case No. 13-08297, Bankr. D.P.R.).  The case is assigned to Judge
Brian K. Tester.

Cue & Lopez Contractors, Inc., filed a separate Chapter 11
petition (Case No. 13-08299) on the same date.

The Debtors are represented by Charles Alfred Cuprill, Esq., at
Charles A. Curpill, PSC Law Office, in San Juan, Puerto Rico.  CPA
Luis R. Carrasquillo & Co., P.S.C., serves as accountant.

Cue & Lopez Construction scheduled $13,334,151 in total assets and
$17,520,089 in total liabilities.  The Chapter 11 petitions were
signed by Frank F. Cue Garcia, president.


PUERTO RICO: Governor Aims to Revamp Debt of Public Corporations
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Michael Corkery, writing for The New York Times' DealBook,
reported that Puerto Rico's governor, signaling worsening
financial trouble for the island, proposed a legal means to revamp
the debt of some its largest public corporations, which provide
vital services like electricity.

According to the report, the new law is meant to quell concerns
that Puerto Rico's inability to file for federal bankruptcy
protection would set off a chaotic scramble among creditors in the
case of a default.  The proposal made by Gov. Alejandro Garcia
Padilla raises the specter that one of Puerto Rico's agencies
could falter soon, the DealBook said, citing investors.

"The absence of an orderly process would threaten the Puerto Rico
government's capacity to safeguard the public and promote the
general welfare of the people," the report quoted David H. Chafey
Jr., chairman of the Government Development Bank for Puerto Rico,
the island's fiscal agent, as saying.

The bill comes as one of the island's most indebted public
corporations -- Puerto Rico Electric Power Authority -- faces
increasingly tense talks with its lenders, the DealBook related,
citing people briefed on the matter.  Failure to renew credit
lines from its banks could hinder the authority's ability to buy
oil to generate electricity for the island's 3.6 million people,
these people said, the report further related.  The authority also
has a bank loan that it is hoping to extend in August, one of the
people said, the report added.

In a call with reporters, the report said, Mr. Chafey did not
indicate that a default was imminent but noted that many public
corporations were facing "financial difficulty."

The report related that Puerto Rico continues to struggle with
chronically high unemployment and a sluggish economy, while
shouldering one of the highest debt loads of any municipal
borrower.  Regulators on the mainland United States worry that a
missed debt payment by Puerto Rico or one of its public
corporations would set off losses in the municipal market because
the island's bonds are held widely by investors.

In a speech, William Dudley, president of the Federal Reserve Bank
of New York, said that Puerto Rico's persistent budget gaps and
increasing debt load had "led to serious concerns about whether
the island's fiscal position is sustainable," the DealBook said.

The report stated that such concerns have driven down the price of
Puerto Rico bonds, attracting hedge funds and other opportunistic
investors.  On June 25, the report said, Puerto Rico's most
recently issued general obligation bond was trading at a yield of
9.3 percent, up from 8.6 percent when it was sold to investors in
March, according to Thomson Reuters Municipal Market Data.  Those
yields, which move in the opposite direction from the price, are
roughly three times higher than a benchmark of top-rated general
obligation bonds.

According to DealBook, the new law intends to create an organized
process through which some debt can be cut or reduced.  It would
apply to at least $22 billion of debt owed by public corporations
including the electric authority, the aqueduct and sewerage
authority and the highway authority.  The legislation does not
apply to Puerto Rico's general obligation debt, which officials
say carries constitutional protections that bondholders must be
repaid. Despite those repeated assurances, some investors worry
that the new law signals that Puerto Rico officials are willing to
change the ground rules when facing severe financial stress, the
report related.

"What is at stake is the commonwealth's credibility given past
statements regarding the island's sanctity of debt," the report
quoted Robert Donahue, managing director at Municipal Market
Advisors, a research firm, as saying.

Still, the report noted that some investors say they were
heartened somewhat by the government's efforts to prevent a free-
for-all in the case of a default.  Others worried that the law
could accelerate restructurings by troubled public corporations.

Some hedge funds have bought the electric authority's bonds,
hoping that the agency would be privatized, people briefed on the
investments said, the report disclosed.  The idea is that private
operators could run the power plants more efficiently than the
government authority, ultimately increasing the value of the hedge
funds' debt.

But the proposed law could complicate such arbitrage because one
of its provisions says that if creditors cannot agree on
restructuring terms during a nine-month period, the matter goes
before a judge in Puerto Rico, the report said.  Analysts say a
local judge would be more likely to side with government officials
seeking to keep control of a public utility than with Wall Street
investors, the report added.

Mr. Chafey said he expected the Legislature to pass the bill soon.
But the proposal could draw the political ire of public sector
unions, DealBook said.  The public corporations employ thousands
of people who could face pay cuts in a restructuring, the report
further disclosed.

Even if it passes, analysts say, the law could face court
challenges because it would allow the government to alter legally
protected contracts, the report said.


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T R I N I D A D  &  T O B A G O
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CARIBBEAN AIRLINES: Share of US Market Plunged Last Year
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Jamaica Observer reports that Caribbean Airlines Limited saw its
share of the US-Jamaica market plunge 27 per cent in 2013.

It meant that the Trinidad-based airline fell from the number two
carrier of passengers to Jamaica, from the US, to number four,
according to Jamaica Observer.

The report relates that Delta Airlines, with its 14.6 per cent
market share, carried just 700, or three per cent less passengers
than Caribbean.

The Atlanta-based carrier saw its passenger count grow by 29 per
cent, or over 50,000 persons, the report notes.  It increased the
number of flights to the island by 31 per cent, particularly as it
ramped up service to New York (from 40 flights in 2012 to 360 last
year), the report discloses.

With the introduction of new Kingston flights in 2014, Delta
likely surpassed Caribbean this year, the report says.

Caribbean cut the number of flights to New York by 30 per cent
last year, along with a 35 per cent reduction in flights from Fort
Lauderdale, the report notes.  It also shed the Miami and
Philadelphia routes from its service, the report discloses.

The reduction in flights allowed the Trinidad-based airline to
improve its load factor (the percentage of seats filled) from 70.2
per cent in 2012 to 76.8 per cent last year, the report says.  But
it still remained well below the average of 82.8 per cent for
airlines traversing the US-Jamaica routes in 2013, the report
relays.

American Airlines independently maintained its number one spot
with 330,000 passengers, or 21.7 per cent of travellers to and
from the US, as it held on to its dominance over the Miami-Jamaica
market, the report notes.

Its merger with US Airways pushes the combined entity's passenger
count over 560,000, or 37 per cent of the travellers to and from
the US, the report relates.  But US Airways held the number three
spot on its own, the report notes.

JetBlue, which has been expanding its share of the New York and
Fort Lauderdale markets, held the number two spot last year, the
report adds.

Caribbean Airlines Limited -- http://www.caribbean-airlines.com/
-- provides passenger airline services in the Caribbean, South
America, and North America.  The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods.  In addition, it operates a duty
free store in Trinidad.  Caribbean Airlines Limited was founded in
2006 and is based in Piarco, Trinidad and Tobago.

As reported in the Troubled Company Reporter-Latin America on May
20, 2013, Caribbean360.com said Trinidad and Tobago Finance
Minister Larry Howai said Caribbean Airlines Limited recorded
losses estimated at US$70 million in 2012.  In 2011, CAL had
recorded losses of US43.7 million.


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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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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.

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