TCRLA_Public/150528.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

            Thursday, May 28, 2015, Vol. 16, No. 104


                            Headlines



B R A Z I L

BRAZIL: Sign Investment Pact, Pledge More Cooperation With Mexico
BRAZIL: Stocks Post World's Worst Drop as Pessimism Takes Hold
JBS SA: Makes Splash With Revived Bond Trade
LUPATECH S.A.: S&P Lowers CCR to 'D' on Reorganization Filing
USJ-ACUCAR: Fitch Lowers IDR to 'CCC' & Removes from Watch Neg.


C A Y M A N  I S L A N D S

COMMON WELL: Shareholders' Final Meeting Set for June 2
FOREST CAYCO: Shareholders' Final Meeting Set for June 4
HEBER HOLDINGS: Shareholders' Final Meeting Set for June 4
NEW LIFE: Shareholders' Final Meeting Set for June 2
PRATT LIMITED: Shareholders' Final Meeting Set for June 2

R-ONE MASTER: Shareholder to Hear Wind-Up Report on June 19
TM BRAZIL: Shareholder to Hear Wind-Up Report on June 5
UBS PRESTIGE: Members' Final Meeting Set for June 3
ZLP INVESTMENTS: Members' Final Meeting Set for June 1


J A M A I C A

DIGICEL GROUP: Denies Blocking What's App Calls


M E X I C O

EMPRESAS ICA: Reports First Quarter 2015 Results


P U E R T O    R I C O

PUERTO RICO ELECTRIC: Citibank Sells $146 Million Loan
PUERTO RICO ELECTRIC: Battles to Restructure Debt


                            - - - - -


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


BRAZIL: Sign Investment Pact, Pledge More Cooperation With Mexico
-----------------------------------------------------------------
Eric Martin and Anna Edgerton at Bloomberg News report that Brazil
President Dilma Rousseff and Mexico President Enrique Pena Nieto
signed an investment cooperation accord and pledged to work
together to boost growth and expand the middle class in Latin
America's two biggest economies.

On President Rousseff's first state visit to Mexico since taking
office in 2011, the countries signed agreements to facilitate
investment, increase air travel and cooperate on tourism,
according to Bloomberg News.

Bloomberg News relates that President Rousseff said that while the
two nations have strengthened ties in recent years, Brazil can do
more to invest in Mexico.

Mexican investment in Brazil is currently about $23 billion a
year, while Brazil invests just $2 billion annually in Mexico,
according to President Rousseff's administration, Bloomberg News
notes.  Both presidents have seen their popularity fall amid
political scandals, weak growth and global oil prices that slumped
to a six-year low in March, Bloomberg News relates.

"This is the beginning of a new stage, as you pointed out madam
president, a new chapter in the friendship between our two
nations," President Nieto said to President Rousseff before they
toasted with Mexican tequila and Brazilian cachaca at a lunch in
the gilded banquet hall of Mexico City's national palace,
Bloomberg News says.  "This is a chance to leverage our strengths,
starting from our similarities," President Niento added.

                    Confronting Challenges

Bloomberg News discloses that after Chinese demand for iron-ore
and rising crude prices made Brazil an investment star in Latin
America for much of the last decade and President Nieto pushed to
open Mexico's oil industry to more private investment, both
presidents are confronting challenges from slumps in commodity
prices.

President Nieto's Institutional Revolutionary Party is also
focused on midterm elections in less than two weeks for control of
the lower house of Congress and governors in nine states,
Bloomberg News relays.

Approval ratings of both leaders have taken a hit as Mexican
citizens protest persistent violence and Brazilian demonstrators
demand President Rousseff's impeachment, Bloomberg News relays.

The last time President Rousseff was in Mexico was June 2012 for a
meeting of the Group of 20 nations in the resort city of Los Cabos
just weeks before Pena Nieto was elected, Bloomberg News
discloses.  President Nieto visited Brazil as president-elect in
2012, Bloomberg News adds.


BRAZIL: Stocks Post World's Worst Drop as Pessimism Takes Hold
--------------------------------------------------------------
Julia Leite at Bloomberg News reports that a drop in Brazil's
consumer confidence to an almost record low added to speculation
Latin America's largest economy will falter, sending the Ibovespa
to the worst slump among major stock benchmarks.

The economic gauge retreated to 85.1 in May from 85.6 in April,
the Getulio Vargas Foundation, an education and research
institution based in Rio de Janeiro, said on its website,
according to Bloomberg News. It approached an all-time low reached
in March.

Bloomberg News relates that separate data from the central bank
showed that the deficit in Brazil's current account, the broadest
measure of trade in goods and services, was wider than forecast
last month.

Even with the real posting the biggest drop among major currencies
this year, the nation's current account gap has hovered near a
record as a percentage of gross domestic product, Bloomberg News
relays.

Bloomberg News says that Finance Minister Joaquim Levy is seeking
to improve fiscal accounts to boost confidence in Brazil.  The
economy is poised for the worst contraction since 1990, a central
bank survey with analysts showed, Bloomberg News discloses.

"The Brazilian outlook is still a big question mark," Ari Santos,
an equity trading manager at H. Commcor in Sao Paulo, told
Bloomberg in a telephone interview.  "There's no good news in
terms of growth, and we're almost halfway through the year," Mr.
Commcor added.

The Ibovespa dropped 1.8 percent to 53,629.78 at the close of
trading in Sao Paulo on May 26, the lowest level since April 2.
Stocks also retreated on speculation the U.S. is moving closer to
raising interest rates, reducing the appeal of emerging-market
assets, Bloomberg News relays.  The real declined for a fourth
day.

                            Bull Market

Bloomberg News discloses that Brazilian shares entered a bull
market last month, after rallying more than 20 percent from their
January low, on prospects for government spending cuts and after
Petroleo Brasileiro SA reported long-delayed earnings.  Since
then, the Ibovespa has fallen 5.2 percent on concern the economy
would slow further amid the fastest inflation in more than a
decade, Bloomberg News notes.

Bloomberg News says that all 10 industries in the MSCI Brazil
Index fell May 26 as consumer discretionary companies sank.
Retailers Lojas Americanas SA and Lojas Renner SA slid at least 2
percent.

Kroton Educacional SA and Estacio Participacoes SA led losses
among educational companies after Brazil said students who apply
for the loan known as Fies will have to present test results from
the national exam called Enem, Bloomberg News notes.

Investors also awaited a Senate vote on three presidential decrees
that limit pension and labor benefits and raise taxes on imports,
Bloomberg News discloses.  Brazil's government has sufficient
support to approve spending cuts in Congress and will pass the key
proposals, Vice-President Michel Temer said, Bloomberg News
relays.

The decrees make up part of Levy's plan to reduce the largest
budget deficit in 16 years, which threatens Brazil's investment-
grade status, Bloomberg News says.  The government has faced
difficulty in garnering support in Congress for austerity measures
as President Dilma Rousseff's popularity hovers at a record low,
Bloomberg News notes.

Trading volume of equities in Sao Paulo was BRL6.9 billion,
according to data compiled by Bloomberg.  That compares with a
daily average of BRL7 billion, according to the exchange,
Bloomberg News adds.


JBS SA: Makes Splash With Revived Bond Trade
-----------------------------------------------
Davide Scigliuzzo at Reuters reports that JBS SA capitalized on a
recent upgrade and improving sentiment towards Brazil to revive a
bond deal and buyback offer that had been postponed in December.

Through its American subsidiary JBS USA, the company launched an
upsized US$900 million 10-year non-call five bond at a final yield
of 5.75%, the tight end of price talk of 5.75%-5.875%, according
to Reuters.

The report notes that the deal enjoyed healthy demand after leads
told investors that they had a US$300m anchor order based on
pricing in the high 5% area, said one account.

Proceeds from the sale will be used to fund a buyback of JBS
Finance II's 8.25% 2018s, effectively shifting some of the
company's debt burden to the US subsidiary, the report relates.

The report relays that the new issue was seen offering a healthy
premium over JBS USA's outstanding 5.875% 2024s, which were
spotted trading on May 20, at a cash price of around 103 or a
yield 5.30%.

The success of May 20's trade, which started with a US$600 million
size, underscores how much sentiment toward Brazilian credits has
improved, the report notes.

This follows Standard & Poor's decision to upgrade JBS S.A. and
JBS USA to BB+ from BB with a positive outlook, citing stronger
cash flows and lower debt levels.

Back in December, when U.S. Treasury yields were not far off
current levels, JBS SA began testing investor appetite for the new
sale at a much higher yield of 6.125% area for a US$750 million
size, the report discloses.

Hit by plunging oil prices and deteriorating sentiment in Brazil,
JBS had eventually been forced to pull the deal despite cutting
its size to US$500m and hiking the yield to 6.25%, the report
relays.

Bank of America Merrill Lynch was left-lead on the trade, with
Bank of Montreal, Deutsche Bank, Morgan Stanley and Wells Fargo as
joint books.

Elsewhere bonds issued by Pacific Rubiales jumped several points
May 20 on a Financial Times report that Mexican conglomerate Alfa
and Harbour Energy could announce an acquisition of the oil
company, the report relays.

The credit has suffered from several price swings this month,
first rallying on news of acquisition discussions only to sink on
poorer-than-expected results and opposition by stakeholders to the
purchase, the report notes.

Its 2025s were closing at 85.125-86.125, up from the 83.50 seen
two weeks ago, notes Reuters.

                            Pipeline

Brazilian food company BRF has hired BNP Paribas, Bank of America
Merrill Lynch, Citigroup, Deutsche Bank, Morgan Stanley and
Santander GBM to schedule a series of fixed-income investor
meetings in Europe ahead of the potential sale of a euro-
denominated 144A/Reg S Green bond, the report recalls.

The report notes that the meetings were to take place in
Frankfurt, Zurich, Geneva and Paris May 26, and in Amsterdam and
London on May 27.

Goldman Sachs is looking to bundle debt backing three of
Colombia's 4G highway projects and sell it as an up to US$500
million 144A bond in the US markets as early as July, the report
notes.

Mario Alberto Huertas, the local construction company that won the
highway concessions, has appointed Goldman Sachs as global co-
ordinator and lead arranger for the financing efforts, the report
relates.  It has also retained local bank Structure Banca de
Inversion as financial adviser, the report adds.

                    *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 21, 2015, Standard & Poor's Ratings Services raised its global
scale corporate credit and issue-level ratings on JBS S.A. and its
subsidiary, JBS USA, to 'BB+' from 'BB'.  At the same time, S&P
raised its national scale rating to 'brAA+' from 'brAA'.  The
outlook for all corporate ratings remains positive.


LUPATECH S.A.: S&P Lowers CCR to 'D' on Reorganization Filing
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its  global scale
corporate credit rating on Brazil-based oil and gas equipment
provider Lupatech S.A. to 'D' from 'CCC'.  At the same time, S&P
lowered its Brazil national scale rating to 'D' from 'brCCC' on
the company.

The downgrade follows Lupatech's filing for judicial
reorganization on May 25, 2015.  Therefore, the company will
operate under judicial oversight.  After the company completed the
restructuring program in September 2014, it converted its
defaulted bonds to equity and was expecting to sell some non-core
assets and gather new investors to unblock interrupted backlog and
turn around its operations.  Negative trends for oil and gas
companies in Brazil-due to the ongoing corruption investigation at
the national oil company, Petroleo Brasileiro S.A.- Petrobras, and
lower oil prices--have prevented the company from executing its
initial plan.


USJ-ACUCAR: Fitch Lowers IDR to 'CCC' & Removes from Watch Neg.
---------------------------------------------------------------
Fitch Ratings has downgraded the Foreign and Local currency Issuer
Default Ratings (IDRs) of U.S.J. - Acucar e Alcool S.A. (USJ) to
'CCC' from 'B' and the company's USD275 million senior unsecured
notes due 2019 to 'CCC/RR4' from 'B/RR4'.  Fitch has also
downgraded the National Scale Rating to 'CCC(bra)' from
'BBB(bra)'.  In addition, Fitch removes USJ from Negative Watch.

KEY RATING DRIVERS

Key concerns regarding USJ's liquidity issues have not registered
major developments since the last rating action, while Brazilian
macroeconomic environment deteriorates and default risks in the
sugar & ethanol (S&E) sector continue to intensify.  The
availability of working capital financing has become scarcer for
Brazilian S&E companies and restructuring of other companies in
the sector has increased systemic risk considerably.  While USJ's
unencumbered land properties worth BRL1.1 billion is an advantage
compared to peers, default risks have been increasing at a higher
pace than the company's capacity to monetize part of its land
bank.

The company has presented weakening financial profile due to
negative free cash flow generation (FCF) and increased short-term
debt concentration.  Prices for sugar and ethanol are expected to
remain under pressure despite improvements on the ethanol industry
dynamics in 2015 compared to 2014.  The generation of more robust
operational cash flow in the new season ending March 31, 2016 will
depend largely on higher crushed volumes and maintenance of
favorable weather conditions as seen in early 2015.

KEY ASSUMPTIONS

   -- Crushed volumes of 3.2 million tons in 2015/2016 and gradual
      increases of 5% thereafter;
   -- Mix relatively unchanged at 66% sugar and 34% ethanol for
      the projected period;
   -- Average sugar prices at USD14 cents/pound in 2015/2016,
      USD16 cents/pound in 2016/2017 and USD17 cents/pound
      onwards;
   -- Domestic ethanol prices keeping the historical correlation
      with international sugar prices;
   -- No dividends coming from SJC in 2015/2016;
   -- No land sales have been forecasted.

RATING SENSITIVITIES

USJ's inability to improve its liquidity risk in the coming months
could lead to a negative rating action.  A positive rating could
occur should the company be able to monetize land properties and
improve cash to short-term debt position considerably.

LIQUIDITY

In the last 12 months ended Dec. 31 2014, the company posted cash
flow from operations (CFFO) of BRL156 million, which was not
enough to cover capital expenditures of BRL254 million, leaving
FCF at a negative BRL107 million.  FCF was further pressured by
BRL10 million dividends.  Capex should be reduced to BRL105
million for the fiscal year 2016.  Nevertheless, Fitch expects
USJ's FCF to remain negative in the next two crop years.

Fitch expects USJ to report cash position of BRL195 million and
short term of BRL260 million on March 31 2015, to yield a 0.75x
coverage ratio.  As of March 31, 2014, USJ's cash position of
BRL232 million compared favorably with short-term debt of BRL128
million to yield a 1.81x coverage ratio.

FULL LIST OF RATING ACTIONS

U.S.J. - Acucar e Alcool S.A

   -- Foreign and local currency Issuer Default Ratings (IDRs)
      downgraded to 'CCC' from 'B'.
   -- National Scale Rating downgraded to 'CCC(bra)' from
      'BBB(bra)'
   -- USD275 million senior unsecured notes due 2019 downgraded to
      'CCC/RR4' from 'B/RR4'


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


COMMON WELL: Shareholders' Final Meeting Set for June 2
-------------------------------------------------------
The shareholders of Common Well Management Inc. will hold their
final meeting on June 2, 2015, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Delta FS Limited
          c/o Andrew Edgington
          Telephone: (345) 743 6630
          Harbour Place, 5th Floor
          103 South Church Street
          P.O. Box 11820 Grand Cayman KY1-1009
          Cayman Islands


FOREST CAYCO: Shareholders' Final Meeting Set for June 4
--------------------------------------------------------
The shareholders of Forest Cayco Topco will hold their final
meeting on June 4, 2015, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Anthony Beovich
          The Blackstone Group
          345 Park Avenue, 31st Floor
          New York 10154
          United States of America
          Telephone: +1 (212) 583 5877


HEBER HOLDINGS: Shareholders' Final Meeting Set for June 4
----------------------------------------------------------
The shareholders of Heber Holdings Inc. will hold their final
meeting on June 4, 2015, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Luiz Alves Paes De Barros
          Telephone: 949-8344
          Harbour Place, 4th Floor
          103 South Church Street
          P.O. Box 10240 Grand Cayman KY1-1002
          Cayman Islands


NEW LIFE: Shareholders' Final Meeting Set for June 2
----------------------------------------------------
The shareholders of New Life 50 Ltd will hold their final meeting
on June 2, 2015, at 10:00 a.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Delta FS Limited
          c/o Andrew Edgington
          Telephone: (345) 743 6630
          Harbour Place, 5th Floor
          103 South Church Street
          P.O. Box 11820 Grand Cayman KY1-1009
          Cayman Islands


PRATT LIMITED: Shareholders' Final Meeting Set for June 2
---------------------------------------------------------
The shareholders of Pratt Limited will hold their final meeting on
June 2, 2015, at 10:00 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Delta FS Limited
          c/o Andrew Edgington
          Telephone: (345) 743 6630
          Harbour Place, 5th Floor
          103 South Church Street
          P.O. Box 11820 Grand Cayman KY1-1009
          Cayman Islands


R-ONE MASTER: Shareholder to Hear Wind-Up Report on June 19
-----------------------------------------------------------
The shareholder of R-One Master Holdings will hear on June 19,
2015, at 10:30 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

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


TM BRAZIL: Shareholder to Hear Wind-Up Report on June 5
-------------------------------------------------------
The shareholder of TM Brazil Inc. will hear on June 5, 2015, at
11:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Tractmanager Cayman GP Inc.
          c/o Jonathan Turnham
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949 9877


UBS PRESTIGE: Members' Final Meeting Set for June 3
---------------------------------------------------
The members of UBS Prestige Fund Limited will hold their final
meeting on June 3, 2015, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Stuart Sybersma
          c/o Marcin Czarnocki
          Deloitte & Touche
          Citrus Grove Building, 4th Floor
          Goring Avenue, George Town KY1-1109
          Telephone: +1 (345) 814 2228
          Facsimile: +1 (345) 949 8258


ZLP INVESTMENTS: Members' Final Meeting Set for June 1
------------------------------------------------------
The members of ZLP Investments Master Fund, Ltd. will hold their
final meeting on June 1, 2015, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Stuart Sybersma
          c/o Marcin Czarnocki
          Deloitte & Touche
          Citrus Grove Building, 4th Floor
          Goring Avenue, George Town KY1-1109
          Telephone: +1(345) 814 2228


=============
J A M A I C A
=============


DIGICEL GROUP: Denies Blocking What's App Calls
-----------------------------------------------
The Daily Observer reports that Digicel Group Limited is pointing
the finger at WhatsApp in response to reports that it is blocking
calls on the messenger app over its network.

Several Digicel customers have reported that attempted calls over
the service result in a message advising them that the calls have
been blocked by their service provider, according to the Daily
Observer.

But in response to questions posed by Observer Media Digicel's PRO
Gillan Power suggested the problem may lie with the app itself
over which he says Digicel has no control, the report notes.

Last November, Digicel was found to be in breach of the principle
of Internet Neutrality as a result of its move to restrict Over
the Top Services, in particular Viber to residents across the
Caribbean the Eastern Caribbean Telecommunications Authority
(ECTEL) accused Digicel of the violation, the report relates.

Digicel last year announced its intention to restrict the use of
OTT services, particularly Viber, indicating that it is approved
of Viber's use of its network to deliver Internet telephony to
Digicel customers at no cost and that its efforts at securing a
commercial contract with Viber for use of its network had failed,
the report adds.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 25, 2015, Fitch Ratings has affirmed the ratings of Digicel
Group Limited (DGL) and its subsidiaries Digicel Limited (DL) and
Digicel International Finance Limited (DIFL), collectively
referred to as 'Digicel' as follows.

DGL
  -- Long-term Issuer Default Rating (IDR) at 'B' with a Stable
     Outlook;
  -- USD 2.5 billion 8.25% senior subordinated notes due 2020 at
     'B-/RR5';
  -- USD 1 billion 7.125% senior unsecured notes due 2022 at 'B
     -/RR5'.

DL

  -- Long-term IDR at 'B' with a Stable Outlook;
  -- USD 250 million 7% senior notes due 2020 at 'B/RR4';
  -- USD 1.3 billion 6% senior notes due 2021 at 'B/RR4';
  -- USD 925 million 6.75% senior notes due 2023 at 'B/RR4';

DIFL

  -- Long-term IDR at 'B' with a Stable Outlook;
  -- Senior secured credit facility at 'B+/RR3'.


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


EMPRESAS ICA: Reports First Quarter 2015 Results
------------------------------------------------
Empresas ICA, S.A.B. de C.V. disclosed its unaudited results for
the first quarter 2015, which have been prepared in accordance
with International Financial Reporting Standards.

Consolidated revenues increased 11%, led by growth in the
Construction and Airports segments.  Concessions revenues were
unchanged compared to the prior year period.  Consolidated
operating income and Adjusted EBITDA increased 7% and 6%,
respectively, compared to 1Q14. The Adjusted EBITDA margin reached
19%. Backlog was MXN62,203 million, including mining services
contracts and contracts of affiliates and joint ventures,
essentially unchanged from December 2014 levels.

A full text copy of the company's financial report is available
free at:

                   http://is.gd/n20ZWo

                     *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 25, 2015, Standard & Poor's Ratings Services lowered its
global scale corporate credit rating on Empresas ICA S.A.B. de
C.V. (ICA) to 'B' from 'B+'.  At the same time, S&P lowered its
global scale issue-level rating on the company's senior unsecured
notes to 'B-' from 'B'.  The recovery rating of '5' on the notes,
indicating expectation of modest (10% to 30%) recovery in the
event of a payment default, remains unchanged.  S&P also affirmed
its 'mxBBB-' national scale corporate credit rating on ICA and
revised the outlook on it to stable from negative.  The outlook on
both scales is stable.


======================
P U E R T O    R I C O
======================


PUERTO RICO ELECTRIC: Citibank Sells $146 Million Loan
------------------------------------------------------
Nick Brown and Edward Krudy at Reuters report that on May 7
Citibank has sold a $146 million loan it had with the Puerto Rico
Electric Power Authority (PREPA) to a distressed debt investment
firm, two sources said, in a sign of the growing uncertainty over
the utility's finances.

PREPA's bank lenders and other bondholders are disputing who has
priority in loan repayments, said one of the sources, who are
familiar with the utility's ongoing, private debt restructuring
talks and requested anonymity, according to Reuters.

The report notes that Citi sold its loan to Solus Alternative
Asset Management, the sources said.  Solus replaced Citi in an
April 30 forbearance agreement with PREPA's lenders posted on the
website of Puerto Rico's Government Development Bank (GDB), the
report relates.

The report discloses that PREPA is trying to restructure $9
billion in debt, held largely by bondholders who resist taking any
write-down in their investments, and are pushing for other cost
saving measures, like higher electricity rates.

Citi's $146 million loan was part of a larger credit line of
around $700 million, which PREPA uses to buy oil, the report
notes.  Another $525 million is held by a consortium led by
Scotiabank, the report says.  One member of that consortium,
Oriental Bank, put its $200 million portion on a non-accrual
status in April and took a $24 million provision, the report
discloses.

The utility is scheduled to make a payment of around $400 million
on July 1.

The agreements, which prevent creditors from calling a default,
are also posted on the GDB website, the report relays.

Repairing PREPA is a key component in fixing Puerto Rico's broken
economy and cutting its more than $70 billion debt load, notes the
report.

Ongoing unpredictability at PREPA is proving to be an obstacle in
Puerto Rico's broader efforts to raise about $3 billion to stave
off steep budget cuts and a possible government shutdown around
the end of June, the report relays.

Solus has been active in the bankruptcy realm, most recently in
LightSquared, where it made a play for control of the bankrupt
wireless venture, acquiring its loan debt and then pursuing an
ultimately unsuccessful restructuring that would have given it a
big equity stake, the report discloses.

Solus was also part of a group of lenders that wound up owning
shipping company Genco after it reached a deal to emerge from
bankruptcy last year, the report adds.

                       *     *     *

The Troubled Company Reporter on Feb. 4, 2015 reported that
Standard & Poor's Ratings Services said it maintained its
'CCC' rating on the Puerto Rico Electric Power Authority's (PREPA)
power revenue bonds on CreditWatch with negative implications.
S&P originally placed the rating on CreditWatch on June 18, 2014.

On Dec. 15, 2014, TCRLA reported that Fitch is maintaining the
$8.6 billion of Puerto Rico Electric Power Authority (PREPA) power
revenue bonds on Negative Rating Watch.  The bonds are currently
rated 'CC'.

As reported in the Troubled Company Reporter on Sept. 19, 2014,
Moody's Investors Service has downgraded the rating for Puerto
Rico Electric Power Authority's (PREPA) $8.8 billion of Power
Revenue Bonds to Caa3 from Caa2.  This rating action concludes the
rating review that Moody's initiated on July 1, 2014.  PREPA's
rating outlook is negative.


PUERTO RICO ELECTRIC: Battles to Restructure Debt
-------------------------------------------------
Katie Kuehner-Hebert at cfo.com, citing Reuters, reports that the
Puerto Rico Electric Power Authority (PREPA) is seeking to
restructure roughly $9 billion in debt, and is asking the U.S.
courts for help.

PREPA asked the U.S. Court of Appeals for the First Circuit (which
covers Puerto Rico) to reverse a federal judge's February decision
to reject the utility company's proposal to restructure its debt
under court supervision, similar to what is typically done in
bankruptcy cases, according to cfo.com.

The report notes that PREPA is arguing that the recently enacted
Puerto Rico Public Corporation Debt Enforcement and Recovery Act
gives the utility company authority to restructure, considering
that it can't charge its dwindling population even higher rates
than it already does to help repay its debt.  Reuters said PREPA's
rates are about two times higher than what mainland U.S. utilities
charge, cfo.com relays.

"There's just not a pot of money there to raise rates," PREPA
attorney Lewis Liman reportedly told the appeals court.  The
absence of restructuring alternatives is "a euphemism for a stick
up, a euphemism for pay me or else," according to Reuters, the
report discloses.

However, attorneys representing the interests of the U.S. funds
that hold the debt and the insurance companies that guarantee
PREPA's debt argued that Puerto Rico's recovery act would undercut
the rights of bondholders, the report notes.

"Congress' intention was not to give them carte blanche," Matthew
McGill, an attorney for BlueMountain Capital Management,
reportedly told the court, adding that a section of the U.S.
bankruptcy code prevents states and territories such as Puerto
Rico from passing their own bankruptcy laws, the report relays.

"Uniformity, lawyers for investors argue, is essential for the
smooth operation of the $3.7 trillion municipal bond market,"
attorneys representing the bond funds reportedly told the court,
the report says.

The report relays that the appeals court did not make a ruling in
the case, giving no indication of when a decision might be made,
Reuters said.

Puerto Rico warned of a possible national cash crunch this year.
In a securities filing, it said it could not meet all of its debt
repayment obligations in 2015, the report notes.

Bond insurers back an estimated $14 billion out of the $72 billion
in debt outstanding by the commonwealth's government, utilities,
and other agencies, according to The Wall Street Journal, the
report adds.

                         *     *     *

The Troubled Company Reporter on Feb. 4, 2015 reported that
Standard & Poor's Ratings Services said it maintained its
'CCC' rating on the Puerto Rico Electric Power Authority's (PREPA)
power revenue bonds on CreditWatch with negative implications.
S&P originally placed the rating on CreditWatch on June 18, 2014.

On Dec. 15, 2014, TCRLA reported that Fitch is maintaining the
$8.6 billion of Puerto Rico Electric Power Authority (PREPA) power
revenue bonds on Negative Rating Watch.  The bonds are currently
rated 'CC'.

As reported in the Troubled Company Reporter on Sept. 19, 2014,
Moody's Investors Service has downgraded the rating for Puerto
Rico Electric Power Authority's (PREPA) $8.8 billion of Power
Revenue Bonds to Caa3 from Caa2.  This rating action concludes the
rating review that Moody's initiated on July 1, 2014.  PREPA's
rating outlook is negative.


                            ***********


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 2015.  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
202-362-8552.


                   * * * End of Transmission * * *