TCRLA_Public/150805.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

            Wednesday, August 5, 2015, Vol. 16, No. 153


                            Headlines



A R G E N T I N A

BUENOS AIRES: Moody's Gives Caa1 GS LC Rating to ARS812MM Bonds


B R A Z I L

BRAZIL: Analysts Expect Economy to Contract 1.8%
HSBC BANK BRAZIL: S&P Affirms 'BB+/B' Global Scale Ratings


C A Y M A N  I S L A N D S

AFRICA HORIZONS: Creditors' Proofs of Debt Due Aug. 19
DB GLOBAL: Commences Liquidation Proceedings
DIA MALLORCA: Creditors' Proofs of Debt Due Aug. 18
DRAYTON CAPITAL: Creditors' Proofs of Debt Due Aug. 14
DRIFFIELD LTD: Creditors' Proofs of Debt Due Oct. 2

ENZIAN WACHSTUM: Commences Liquidation Proceedings
GIRANDOLA INVESTMENT: Creditors' Proofs of Debt Due Aug. 17
HAPPYMAR CO: Commences Liquidation Proceedings
MALL A321: Commences Liquidation Proceedings
SAAD INVESTMENTS: Cayman Proceedings Wins US Court Recognition

TN SHIPS 1: Creditors' Proofs of Debt Due Aug. 12


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Customs 1H Revenue Jumps 15.5% to US$113.3MM


M E X I C O

GRUPO KUO: S&P Revises Outlook to Negative & Affirms 'BB' CCR


P A N A M A

AES PANAMA: S&P Affirms 'BB-' CCR; Outlook Remains Stable


P A R A G U A Y

VISION BANCO: S&P Affirms 'BB-' Counterparty Credit Rating


P E R U

TERMINALES PORTUARIOS: S&P Affirms 'BB' Rating on Sr. Sec. Notes


P U E R T O    R I C O

PUERTO RICO: Defaults on Most of $58 Million Debt Payment
PUERTO RICO: Just Defaulted for First Time
PUERTO RICO: S&P Lowers Ratings on 3 PFC Series Bonds to 'D'
DORAL FINANCIAL: Investors' Suit vs. Wakeman, Wahlman Continues
STANDARD REGISTER: Amends Statement of Financial Affairs



                            - - - - -


=================
A R G E N T I N A
=================


BUENOS AIRES: Moody's Gives Caa1 GS LC Rating to ARS812MM Bonds
---------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
assigned a Caa1 -- Global Scale local currency -- and Baa3.ar --on
Argentina's National Scale-- ratings to the Province of Buenos
Aires's Series III Local Market Bonds for ARS812 million. The
ratings are in line with the province's long term local currency
issuer ratings, which carry negative outlook.

RATINGS RATIONALE

The 2015 Local Market Bonds Program has been authorized by the
Governor's Decrees 46 and 546/2015 and by Law 14.652 of the
Province of Buenos Aires (2015 Budget Law). The notes to be issued
under the program constitute direct, general, unconditional,
secured and unsubordinated obligations of the province and the
maximum amount to be issued under the new Series III represents
0.3% of total revenues budgeted for this fiscal year.

The new Series III will be payable in Argentine pesos and sold
entirely in the local capital market. This third Series will bear
28.5% fixed interest rate for the first three coupons, but
variable for the remaining ones, will mature in 18 months and show
bullet amortization.

The assigned ratings are based on preliminary documentation
received by Moody's as of the rating assignment date. Moody's does
not expect changes to the documentation reviewed over this period
or anticipates changes in the main conditions that the notes will
carry. Should issuance conditions and/or final documentation of
any of the series under this program deviate from the original
ones submitted and reviewed by the rating agency, Moody's will
assess the impact that these differences may have on the ratings
and act accordingly.

WHAT COULD CHANGE THE RATING UP/DOWN

Given the negative outlook on the issuer ratings, Moody's does not
expect upward pressures in the Province of Buenos Aires's ratings
in the near to medium term. However, a change in Argentina's
sovereign outlook back to stable could lead to a change in the
outlook back to stable of the Province of Buenos Aires.
Conversely, a sharp deterioration of the Province of Buenos
Aires's financial results, coupled with higher debt levels could
add downward pressure to the assigned ratings. The province of
Buenos Aires could also be downgraded if the negative outlook on
the sovereign rating materializes into a rating downgrade.


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


BRAZIL: Analysts Expect Economy to Contract 1.8%
------------------------------------------------
EFE News reports that Analysts expect Brazil's economy to contract
by 1.8 percent this year, with the inflation rate hitting 9.25
percent, the Central Bank said.

The gross domestic product (GDP) and inflation estimates come from
the Boletin Focus, a weekly Central Bank survey of analysts from
about 100 private financial institutions on the state of the
national economy, according to EFE News.

The report notes that the latest forecast is more pessimistic than
the one released last week, when analysts expected the GDP to
contract by 1.76 percent and inflation to hit 9.23 percent.

Analysts' lack of confidence in Brazil's economy is based on the
continuing drop in the value of the real against the dollar and
the recent increase in the cost of public services, such as water,
electricity and transportation, the report relates.

The Central Bank will likely keep the benchmark interest rate at
14.25 percent to fight inflation, analysts said, the report notes.

The report discloses that the government said in July that it
would not meet the 1.1 percent primary fiscal surplus target it
set for this year and the goal was now to cut public spending by
the equivalent of 0.15 percent of GDP.

The government plans to slash the budget by BRL8.6 billion ($2.66
billion), a move that will further slow economic activity and
deepen the contraction, the report says.

Brazil's economy grew by just 0.10 percent in 2014, notes the
report.


HSBC BANK BRAZIL: S&P Affirms 'BB+/B' Global Scale Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+/B' global
scale ratings on HSBC Bank Brasil S.A.  The ratings remain on
Credit Watch developing.

Following the announcement on Aug. 3, 2015 that HSBC Holdings Plc
reached an agreement to sell its Brazilian subsidiary HSBC Bank
Brasil S.A. to Banco Bradesco S.A., S&P is changing the group
status on HSBC Brazil to "nonstrategic" from "moderately
strategic"" to HSBC Holdings Plc.  The group status change does
not impact the issuer credit rating on HSBC Brasil because the
bank now incorporates one notch of uplift from its SACP due to its
"moderate" likelihood of support from the government given its
"moderate" systemic importance to the Brazilian financial system.

The CreditWatch Developing on HSBC Bank Brasil S.A. reflects the
potential uplift to the ratings should authorities approve the
transaction.  If this occurs, S&P would then decide which level of
support from Bradesco S&P would incorporate into HSBC Brasil's
SACP.  Alternatively, S&P could lower HSBC Bank Brasil ratings if
the acquisition is not approved by the regulators and the bank's
credit fundamentals deteriorate, particularly its business
position and funding, in turn hurting it SACP.  In this scenario,
it would not be able to count on parent support and S&P would
review its systemic importance.


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


AFRICA HORIZONS: Creditors' Proofs of Debt Due Aug. 19
------------------------------------------------------
On July 7, 2015, the shareholders of Africa Horizons L.P. resolved
to voluntarily liquidate the company's business.

Creditors are required to file their proofs of debt by Aug. 19,
2015, to be included in the company's dividend distribution.

The company's liquidator is:

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


DB GLOBAL: Commences Liquidation Proceedings
--------------------------------------------
On June 25, 2015, the shareholders of DB Global Master (Noetic
Equity Long/Short) Fund Ltd resolved to voluntarily liquidate the
company's business.

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

The company's liquidator is:

          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


DIA MALLORCA: Creditors' Proofs of Debt Due Aug. 18
---------------------------------------------------
The creditors of Dia Mallorca Leasing Ltd. are required to file
their proofs of debt by Aug. 18, 2015, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on July 9, 2015.

The company's liquidators are:

          Benjamin Booker
          Marguerite Britton
          P.O. Box 1043 Grand Cayman KY1-1102
          Cayman Islands
          Telephone: (345) 640-6600


DRAYTON CAPITAL: Creditors' Proofs of Debt Due Aug. 14
------------------------------------------------------
The creditors of Drayton Capital Limited are required to file
their proofs of debt by Aug. 14, 2015, to be included in the
company's dividend distribution.

The company's liquidator is:

          Alric Lindsay
          Telephone: (345) 926-1688
          Artillery Court Shedden Road
          P.O. Box 11371 George Town
          Grand Cayman KY1-1008
          Cayman Islands


DRIFFIELD LTD: Creditors' Proofs of Debt Due Oct. 2
---------------------------------------------------
The creditors of Driffield Ltd. are required to file their proofs
of debt by Oct. 2, 2015, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on July 9, 2015.

The company's liquidator is:

          Westport Services Ltd.
          c/o Dominique Massias
          Telephone: (345) 949 5122
          Facsimile: (345) 949 7920
          P.O. Box 1111 Grand Cayman KY1-1102
          Cayman Islands


ENZIAN WACHSTUM: Commences Liquidation Proceedings
--------------------------------------------------
On July 3, 2015, the shareholder of Enzian Wachstum Aktiv resolved
to voluntarily liquidate the company's business.

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

The company's liquidator is:

          Doran + Minehane
          Telephone: 00353 61 413200
          Facsimile: 00353 61 408613
          Crescent House, 4th Floor
          Hartstonge Street
          Limerick
          Ireland


GIRANDOLA INVESTMENT: Creditors' Proofs of Debt Due Aug. 17
-----------------------------------------------------------
The creditors of Girandola Investment Ltd. are required to file
their proofs of debt by Aug. 17, 2015, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on July 8, 2015.

The company's liquidator is:

          Morval Bank & Trust Cayman Ltd.
          Telephone: +1 (345) 949-9808
          P.O. Box 30622 Grand Cayman KY1-1203
          Cayman Islands


HAPPYMAR CO: Commences Liquidation Proceedings
----------------------------------------------
On July 8, 2015, the shareholders of Happymar Co. Ltd. resolved to
voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
July 31, 2015, will be included in the company's dividend
distribution.

The company's liquidators are:

          Nicholas Quin
          Sarah Turnbull
          CDL Company Ltd.
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands


MALL A321: Commences Liquidation Proceedings
--------------------------------------------
On June 30, 2015, the shareholders of Mall A321 Partners, LDC
resolved to voluntarily liquidate the company's business.

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

The company's liquidator is:

          Macquarie Aircraft Leasing Services (US), Inc.
          Suite 200, Two Embarcadero Center
          San Francisco, CA 94111, USA
          Telephone: +1 (345) 914 6365


SAAD INVESTMENTS: Cayman Proceedings Wins US Court Recognition
--------------------------------------------------------------
The Hon. James L. Garrity, Jr., of the U.S. Bankruptcy Court for
the Southern District of New York approved the request of
recognition of Saad Investments Company Limited's liquidation
proceedings pending before the Grand Court of the Cayman Islands,
Financial Services Division filed by the joint official
liquidators of SICL.

As reported in the Troubled Company Reporter on July 2, 2015, the
Joint Official Liquidators -- Hugh Dickson of Grant Thornton
Specialist Services (Cayman) Limited and Stephen Akers and Mark
Byers of Grant Thornton U.K. L.L.P -- are in the midst of a
lengthy and complex liquidation process based in the Cayman
Islands for which they are the sole persons authorized to act on
SICL's behalf.  SICL's multibillion-dollar liquidation is
international in scale and has been in progress for almost six
years.

The Cayman Island Proceeding involves over $9.7 billion in assets
and about $3.754 billion in liabilities, stemming from holdings
and obligations located in multiple jurisdictions in the
Caribbean, Europe, Australia, and Middle East.

Accordingly, in carrying out their duties, the JOLs have already
sought and received recognition of the Cayman Islands Proceeding
as a foreign main proceeding in multiple jurisdictions, including
in England and Australia, and brought various legal proceedings to
recover SICL's assets on behalf of creditors.  To date, they have
recovered over $450 million in assets.

The JOLs seek recognition of the Cayman Islands Proceeding to
efficiently administer SICL's assets and investigate SICL's
affairs in the United States.

There are multiple foreign proceedings related to the Cayman
Islands Proceeding that have already received recognition as
foreign main proceedings in U.S. court.  First is Saad Investments
Finance Company (No. 5) Limited, which is a wholly owned
subsidiary of SICL and also in official liquidation in the Cayman
Islands.  Due to a conflict, Petitioners were not appointed as
Joint Official Liquidators of Saad Investments Finance Company
(No. 5) Limited; instead Mark Longbottom and Nicholas Paul
Matthews of Kinetic Partners were appointed as the entity's Joint
Official Liquidators.

Saad Investments Finance Company (No. 5) Limited's Cayman Islands
insolvency proceeding was recognized as a foreign main proceeding
by order of the Bankruptcy Court for the District of Delaware,
Case No. 09-13985-KG, Docket No. 39, Dec. 4, 2009.

The second related proceeding is Awal Bank, BSC, which is a
foreign banking corporation incorporated in the Kingdom of
Bahrain.  SICL is a 48% shareholder of Awal Bank.  On July 30,
2009, the Central Bank of Bahrain placed Awal Bank into
administration and appointed Charles Russell, a British law firm
with a Bahrain office, as External Administrator. Awal Bank's
Bahrain insolvency proceeding was recognized as a foreign main
proceeding by order of the Bankruptcy Court for the Southern
District of New York, Case No. 09-15923 (ALG), Docket No. 18,
October 28, 2009. Subsequently, Awal Bank filed a voluntary
petition under chapter 11 of the Bankruptcy Code also in the
Bankruptcy Court for the Southern District of New York, Case No.
10-15518 (ALG).

Finally, there is a third set of proceedings for seven of Awal
Bank's subsidiaries -- Awal Master Fund, Awal Finance Company
Limited, Awal Feeder 1 Fund Limited, Awal Finance Company (No. 2)
Limited, Awal Finance Company (No. 3) Limited, Awal Finance
Company (No. 4) Limited, and Awal Finance Company (No. 5) Limited
(collectively, the "Awal Subsidiaries").  Each of the Awal
Subsidiaries has liquidation proceedings in the Cayman Islands.
Chris Johnson, Russell Homer, Bruce Alexander MacKay, and Geoffrey
Lambert Carton-Kelly were appointed as the Joint Official
Liquidators of the Awal Subsidiaries.  The Awal Subsidiaries'
Cayman Islands proceedings were recognized by order of the
Bankruptcy Court for the Southern District of New York, Case No.
15-10652 (MEW), on May 5, 2015.

                     About Saad Investments

Saad Investments Company Limited is the main holding company of a
group of Saad entities.  The Saad Group's Chairman and SICL's
beneficial owner is Maan Al-Sanea of Saudi Arabia.  According to
Forbes magazine, Al-Sanea's net worth was once $7 billion, ranking
him as the world's 62nd richest person. SICL's stated purpose was
to hold and manage Al-Sanea's non-Saudi Arabian assets, including
a portfolio consisting of equities, funds, interest bearing
securities, and real estate.

The joint official liquidators of SICL filed a Chapter 15 petition
(Bankr. S.D.N.Y. Case No. 15-11440) in Manhattan in the United
States on May 29, 2015, to seek recognition of SICL's winding up
proceedings in the Cayman Islands.

The U.S. case is assigned to Judge James L. Garrity Jr.  Randall
Adam Swick, Esq., at Reid Collins & Tsai LLP, serves as counsel in
the U.S. case.


TN SHIPS 1: Creditors' Proofs of Debt Due Aug. 12
-------------------------------------------------
The creditors of TN Ships 1 Limited are required to file their
proofs of debt by Aug. 12, 2015, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on July 9, 2015.

The company's liquidator is:

          Appleby Trust (Cayman) Ltd.
          c/o Richard Gordon
          Telephone: +1 (345) 949 4900
          75 Fort Street
          P.O. Box 1350 Grand Cayman KY1-1108
          Cayman Islands


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


DOMINICAN REPUBLIC: Customs 1H Revenue Jumps 15.5% to US$113.3MM
----------------------------------------------------------------
Dominican Today reports that Dominican Republic Customs Agency
revenue from January to July jumped 15.5% to RD$51.0 billion
(US$113.3 million), or RD$6.8 billion more than the same period a
year ago.

Revenue was RD$8.4 billion just in July, a 18.4% increase, or
RD$1.3 billion more than the same month in 2014, according to
Dominican Today.

In a statement released Aug 2, Customs said revenue was 8.6%
higher (RD$660.9 million) than the National Budget estimate of
RD$7.7 billion, the report adds.


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


GRUPO KUO: S&P Revises Outlook to Negative & Affirms 'BB' CCR
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook to negative from stable on Mexico-based consumer goods,
chemicals and auto parts producer Grupo KUO, S.A.B. de C.V. (KUO).
At the same time, S&P affirmed the 'BB' global scale and 'mxA'
national scale corporate credit ratings.

S&P also affirmed the 'BB' global scale and 'mxA' national scale
issue-level rating on the company's senior unsecured notes.  The
'3' recovery rating on the senior unsecured debt remains
unchanged, indicating S&P's expectation for meaningful (upper half
of the 50% to 70% range) recovery in the event of payment default.

S&P subsequently withdrew the ratings on the MXN 700 million
(about $50 million) "KUO10" senior unsecured notes (Certificados
Bursatiles) originally due on November 2015, following the
complete repayment of balance outstanding.  The company repaid the
balance using part of the proceeds from a new credit facility for
MXN 1,000 million (about $65 million) due 2020 granted by Bank of
America, N.A. on July, 20, 2015, which will not rate.

The outlook revision reflects S&P's view that the company's credit
quality has deteriorated as a result of softer macroeconomic
conditions, depressed oil prices and the corresponding impact of
petrochemical products prices, and foreign exchange rate
volatility.  Consequently, the key credit metrics' performance has
been below S&P's previous expectations.  Although S&P anticipates
an improvement in the next two years, it believes that improvement
might be slower or curtailed by heightened foreign exchange
volatility and sluggish oil price recovery.  S&P's negative
outlook reflects the risk that the company might not improve
performance to levels where credit measures will be appropriate
for current ratings and that these could even further deteriorate
if business conditions worsen, leading potentially to lower its
financial risk profile.

The negative outlook reflects S&P's view that if business
conditions continue to weaken, particularly raw materials prices
and foreign exchange volatility, the company's credit metrics
could further deteriorate in 2015 and 2016.

S&P could lower the ratings if KUO's operating performance
declines, weakening its financial performance.  This could stem
from softer economic conditions, or further volatility in raw
materials prices and foreign exchange, driving the company's total
consolidated debt to EBITDA to exceed 4.0x without considering the
recognition of JV results.

S&P could revise the outlook to stable if the company's key credit
metrics perform in line with S&P's projected base case scenario,
evidenced by a total consolidated debt to EBITDA between 3.0x and
3.5x without considering the recognition of JV results on a
consistent basis.


===========
P A N A M A
===========


AES PANAMA: S&P Affirms 'BB-' CCR; Outlook Remains Stable
---------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB-'
corporate credit and issue-level ratings on AES Panama S.R.L.  The
outlook remains stable.

"Our ratings on AES Panama reflect our assessment of its 'b+'
stand-alone credit profile SACP.  The SACP is based on the
company's "fair" business risk profile and "aggressive" financial
risk profile, as our criteria define these terms.  It also
reflects the company's "less than adequate" liquidity," S&P said.

The stable outlook reflects S&P's expectation that AES Panama's
adjusted FFO to debt and adjusted debt to EBITDA will strengthen
through 2015 and 2016 due to increased generation, resulting in
lower purchases in the spot market.  S&P expects FFO to debt to be
7% in 2015 and 16% in 2016 and adjusted debt to EBITDA to be 6.7x
and 3.6x, respectively.

Because AES Panama is a government-related entity, a downgrade is
possible if S&P was to revise its SACP downward by more than one
notch.  This could result from sustained FFO to debt of less than
12%.

An upgrade would require the company's adjusted debt to EBITDA to
remain below 5.0x.  An improvement in the company's liquidity to
S&P's "adequate" assessment could also lead to an upgrade.


===============
P A R A G U A Y
===============


VISION BANCO: S&P Affirms 'BB-' Counterparty Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB-'
long-term counterparty credit rating on Vision Banco S.A.E.C.A.
(Vision).  At the same time, S&P revised the outlook to stable.

The ratings on Vision reflect S&P's view of the bank's "adequate"
business position among banks in Paraguay, its "moderate" capital
and earnings (based on S&P's forecasted RAC ratio), and its
"adequate" risk position, given its asset quality metrics.  S&P
also incorporates its assessment of its "above average" funding
due to its well-diversified and stable deposit base, and its
"adequate" liquidity, with liquidity metrics in line with other
rated banks in the country. The rating on the bank is the same as
the SACP, 'bb-', because S&P do not incorporate notching from
external support (neither from the government nor from the group).

The stable outlook reflects S&P's expectation that the bank will
consolidate its RAC ratios at moderate levels for the next 12-18
months, gradually improve its asset quality metrics, and maintain
its adequate business and funding and liquidity profiles.

S&P could take a negative action on the ratings if improvements in
capital ratios do not materialize as expected, with RAC ratio
before diversification above 5%, and/or if asset quality metrics
significantly deteriorate.

A ratings upside is limited, at this point, by S&P's BICRA on
Paraguay.  S&P would need to see improvements in its assessment on
Paraguay's banking industry, while the bank's credit factors
remain constant, in order to upgrade the ratings.


=======
P E R U
=======

TERMINALES PORTUARIOS: S&P Affirms 'BB' Rating on Sr. Sec. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' rating on
Terminales Portuarios Euroandinos Paita's senior secured notes due
2037.  The outlook remains stable.

The rating affirmation reflects the port's higher traffic volume
following its expansion.  Therefore, financial performance
continues to be in line with S&P's expectations.

The rating on the bonds continues to reflect the project's
strengths:

   -- A favorable concession agreement with a clear mechanism of
      tariff adjustment, service quality, and mandatory
      investments, with a detailed time schedule and triggers
      properly defined in terms of capacity reached.

   -- No exposure to construction risk because the new berth works
      were completed on time and within budget in the last quarter
      of 2014.

   -- Relatively low operating risk and sound minimum and average
      debt service coverage ratio (DSCR) of 1.3x and 2.3x,
      respectively.

Several weaknesses mitigate these strengths:

   -- The project's exposure to the volatile commodity and
      container trade volumes because potential decreases in
      traffic levels and/or regional production could hinder TPE's
      revenues.

   -- Small scale of operations compared with other ports in the
      region.

   -- Relatively concentrated customer base.  As of December 2014,
      TPE's top 10 clients generated more than 70% of its
      consolidated revenues.

   -- Exposure to climatic factors, such as the El Nino
      phenomenon, which are beyond TPE's control.



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


PUERTO RICO: Defaults on Most of $58 Million Debt Payment
---------------------------------------------------------
Aaron Kuriloff at The Wall Street Journal reports Puerto Rico
missed most of a $58 million bond payment, marking the first
default by the U.S. commonwealth and escalating its attempt to
restructure about $72 billion in debt.

The payment to bondholders is the first skipped since Gov.
Alejandro Garcia Padilla in June said the island's debts were
unsustainable and urged negotiations with creditors, which range
from individuals to hedge funds, according to The WSJ.

The WSJ notes analysts said the missed payment isn't likely to
provoke an acute marketwide reaction from investors, many of which
have been inching away for the commonwealth for years amid dire
economic news.

But the episode is the latest confirmation that Puerto Rico
doesn't have the money to meet all of its coming obligations, said
Emily Raimes, vice president at Moody's Investors Service.

"This is a first in what we believe will be broad defaults on
commonwealth debt," The WSJ quoted Ms. Raimes as saying.

The WSJ notes that the Government Development Bank for Puerto Rico
said the island's legislature didn't set aside money for the
appropriation bonds, a decision that reflects "serious concerns
about the Commonwealth's liquidity" and its need to balance paying
bondholders with maintaining essential services, according to a
news release from the bank.  The bank did pay about $628,000
remaining from prior funds, The WSJ relays.

The nonpayment is another setback for investors in debt from
Puerto Rico, which is struggling with a decade of economic
stagnation and high unemployment, underscoring the commonwealth's
effort to prioritize payments as it attempts to preserve its cash
and avoid a government shutdown, The WSJ relays.

About half of municipal-bond mutual funds in the U.S. have
exposure to Puerto Rico, according to research firm Morningstar
Inc.

The WSJ discloses that those investors have already suffered
losses as the commonwealth's credit ratings fell to junk in recent
years and bond prices plummeted.

Some Puerto Rico bonds sold in 2014 traded Aug. 3 at about 69.25
cents on the dollar, down from about 73 cents in mid-July,
according to Thomson Reuters Municipal Market Data, the report
notes.

The corporation's missed payment suggests how Puerto Rico may
treat different forms of debt going forward, said John Miller, co-
head of fixed income at Nuveen Asset Management LLC in Chicago,
which manages about $100 billion in tax-exempt bonds, says WSJ.
Investors in the appropriation bonds have little recourse because
the bonds are backed only by the legislature's willingness to find
the money for them. Other bonds have greater legal protections.

"It is somewhat meaningful that this is their first monetary
default," Mr. Miller said, WSJ relays. "However, if people have
been paying attention to the plans, this was anticipated, and it
doesn't really change the orchestrated direction that the
government's taking."

The WSJ notes that direction has even some former boosters backing
away.  Monarch Alternative Capital LP, which at one point had
about 5% of its now $5 billion under management invested in the
commonwealth's general-obligation bonds, told investors late last
week that it sold off part of the position in recent weeks.

"We believe that the probability of a default scenario has
significantly increased and could risk extending the timeline for
a resolution to the island's situation," co-founder Michael
Weinstock and other firm executives wrote to investors in a letter
reviewed by WSJ.

In particular, he flagged the firm's discussions with the island's
political leadership.  "We ultimately came to the view that the
sentiment of Puerto Rico's leadership had shifted and that they
would be unwilling to implement the fiscal reform measures needed
to regain the market's confidence and avoid a potential default,"
the letter said, WSJ notes.

A group of Puerto Rico policy makers are working on a
restructuring plan and scheduled to present their findings at the
end of August, says the report.  Creditors, including mutual
funds, hedge funds and other distressed-debt investors, have been
splitting into committees based on which bonds they own.

The WSJ discloses that Puerto Rico has said its debt includes
about $18.6 billion of general-obligation bonds and government-
guaranteed debt, $15.2 billion of sales-tax-backed bonds and $24.1
billion of bonds issued by government agencies, like the Puerto
Rico Electric Power Authority, which is already negotiating a
restructuring with creditors.  Many investors hold bonds across
the different sectors, which could recover different amounts in a
restructuring.

The restructuring process is uncertain in part because Puerto Rico
is neither a U.S. state nor a sovereign nation, The WSJ says.

The report relays that all states are barred from filing for
bankruptcy, but cities, such as Detroit, can seek protection under
chapter 9 of the U.S. bankruptcy code.  Puerto Rico is lobbying
the U.S. Congress for a law allowing some of its entities to
access chapter 9 protections. Until such a law passes, the
island's leaders must negotiate with creditors without that
process.

Matt Fabian, partner at research firm Municipal Market Analytics,
Concord, Mass., said that while worries about Puerto Rico have had
little impact on the broader market for municipal bonds, a missed
payment could spur new selling in other commonwealth debt, WSJ
adds.

"The Puerto Rico market is huge and diverse," the report quoted
Mr. Fabian as saying.  "You have to presume there will be some
knock-on selling," Mr. Fabian added.

As reported in the Troubled Company Reporter-Latin America on July
3, 2015, Moody's Investors Service has downgraded the Commonwealth
of Puerto Rico's general obligation (GO) and guaranteed bonds as
well as its senior lien Sales Tax Financing Corporation (Sr
COFINA) bonds to Caa3 from Caa2.  Moody's also lowered ratings
assigned to other securities, including bonds of the Puerto Rico
Aqueduct and Sewer Authority, which also were downgraded to Caa3
from Caa2.  Bonds already in the Ca category were affirmed at that
level. In all, about $55.5 billion was affected by these actions.
With the GO rating action, the seventh downgrade in the past five
years, the commonwealth's rating has declined 12 notches since
2011. The outlook for all affected securities remains negative.


PUERTO RICO: Just Defaulted for First Time
------------------------------------------
CNN Money reports that Puerto Rico just went into default for the
first time in its history.

The commonwealth paid a mere $628,000 toward a $58 million debt
bill due Aug. 3 to creditors of its Public Finance Corporation,
according to CNN Money.  This will hurt the island's residents,
not Wall Street.  The debt is mostly owned by ordinary Puerto
Ricans through credit unions, notes the report.

"This was a decision that reflects the serious concerns about the
Commonwealth's liquidity in combination with the balance of
obligations to our creditors and the equally important obligations
to the people of Puerto Rico," Puerto Rico's Government
Development Bank president Melba Acosta Febo said in a statement
obtained by the news agency.

The report relays that the default is a historic moment in Puerto
Rico's economic "death spiral," a term the island's governor,
Alejandro Garcia Padilla, has used.  The island is struggling with
about $70 billion in total outstanding debt, and its economy is in
recession.

The report relays that Mr. Padilla has put together a team to come
up with a plan to restructure Puerto Rico's debt crisis by the end
of the summer.

According to CNN Money, Puerto Ricans are leaving the island in
droves in search of jobs and stability. Unemployment is high, the
economy is shrinking and the future looks shaky.

The report notes that Puerto Rico had to make a monthly debt
payment of $483 million.  Puerto Rico paid all its debt due except
the $58 million due to creditors of its Public Finance
Corporation, the report relays.  The government is strategically
choosing not to pay the PFC debt because the entities that own the
debt, credit unions and ordinary Puerto Ricans, have little legal
power to fight back in court.

"This is a first in what we believe will be broad defaults on
commonwealth debt," said Emily Raimes of Moody's Investors
Service.

The other debt -- some of which is owned by Wall Street hedge
funds and hence has more legal clout -- was paid on Aug. 3, the
report discloses.

Puerto Rico has the same amount of outstanding debt as New York.
Yet its economy -- worth $69 billion -- is just a fraction of the
Empire State's $1.2 trillion, the report relays.

The economy is also in a big mess.  Unemployment is more than
double the rate in the mainland United States, the report relays.

And with Puerto Ricans leaving the island in droves to look for
jobs on the mainland, it only shrinks the tax base further, making
it harder for the island to pay its debts, the report says.

Meanwhile, the report relays that just when you think it can't get
worse, Puerto Rico is going through a bad drought.  The government
is rationing water, adds the report.

As reported in the Troubled Company Reporter-Latin America on July
3, 2015, Moody's Investors Service has downgraded the Commonwealth
of Puerto Rico's general obligation (GO) and guaranteed bonds as
well as its senior lien Sales Tax Financing Corporation (Sr
COFINA) bonds to Caa3 from Caa2.  Moody's also lowered ratings
assigned to other securities, including bonds of the Puerto Rico
Aqueduct and Sewer Authority, which also were downgraded to Caa3
from Caa2.  Bonds already in the Ca category were affirmed at that
level. In all, about $55.5 billion was affected by these actions.
With the GO rating action, the seventh downgrade in the past five
years, the commonwealth's rating has declined 12 notches since
2011. The outlook for all affected securities remains negative.


PUERTO RICO: S&P Lowers Ratings on 3 PFC Series Bonds to 'D'
------------------------------------------------------------
Standard & Poor's Ratings Services has lowered its rating on
$1.0 billion of Puerto Rico Public Finance Corporation (PFC)
series 2011A, 2011B, and 2012A bonds to 'D' from 'CC' following a
payment default on the bonds as of the close of business Aug. 3,
2015, the first business day following the Aug. 1 stated due date,
which fell on a Saturday.  Although a partial payment of $628,000
in interest was made Aug. 3, the amount was far short of the
$58 million of principal and interest due.  S&P assigns a rating
of 'D' to obligations in default of full and timely debt service
on their due date, unless S&P believes that such payments will be
made within five business days.

This first default by Puerto Rico on tax-supported debt represents
a significant departure from Puerto Rico's past practice of timely
funding of debt service.  S&P believes the default signals severe
liquidity distress, whereby Puerto Rico must now choose among
which financial obligations it can honor, and presages other
possible defaults as liquidity becomes further constrained during
the next few months.  The default follows the legislature's
decision not to appropriate debt service for these bonds in its
fiscal 2016 budget.

In S&P's view, Puerto Rico's decision to deliberately miss the PFC
bonds' relatively small $58 million debt service payment, compared
to annual revenues of about $9 billion, indicates that short-term
liquidity distress has taken priority over preserving access to
debt markets.  S&P believes the small, short-term improvement in
liquidity will come at the cost of investors' worsened perception
of Puerto Rico's willingness to pay debt, at a time when Puerto
Rico needs cash flow financing to avoid running out of cash in the
next few months.  Last year Puerto Rico sold $1.2 billion of
fiscal 2015 cash flow notes; the $703 million general fund
operating deficit recently disclosed for the fiscal year ended
June 30, 2015, has likely placed additional liquidity pressure on
the commonwealth.  S&P believes the PFC default may further impede
Puerto Rico's ability to obtain financing for cash flow needs.

S&P believes these bonds may have been selected due to their
limited recourse for PFC bondholders in the event of legislative
non-appropriation; the 2016 budget does appropriate debt service
for other series of bonds.  In addition, the Aug. 1 PFC payment
represented the start of principal repayment for the PFC bonds,
for $36.3 million, and thus an increase in debt service from
previous years' PFC interest-only payments.


DORAL FINANCIAL: Investors' Suit vs. Wakeman, Wahlman Continues
---------------------------------------------------------------
In the case captioned ROBERT BLUE, Individually and on Behalf of
All Others Similarly Situated, Plaintiffs, v. DORAL FINANCIAL
CORPORATION, GLEN R. WAKEMAN, ROBERT E. WAHLMAN, PENKO IVANOV,
DAVID HOOSTON, ENRIQUE R. UBARRI-BARAGANO and CHRISTOPHER C.
POULTON, Defendants, CIVIL NO. 14-1393 (GAG) (D.P.R.), Judge
Gustavo A. Gelpi of the United States District Court for the
District of Puerto Rico granted in part and denied in part a
motion to dismiss, and, subsequently, dismissed the case against
the individual defendants, except for Glen R. Wakeman and Robert
E. Wahlman against whom the case continues.

A putative class action lawsuit was filed on behalf of investors
against the holding company of Doral Bank, Doral Financial
Corporation, and several current and prior company executives.
The complaint alleged that the plaintiffs purchased common stock
of Doral between April 2, 2012, and May 1, 2014, at prices that
were artificially inflated by the defendants' false and misleading
statements.

The defendants moved to dismiss the complaint pursuant to the
Private Securities Litigation Reform Act of 1995 and Federal Rules
of Civil Procedure 9(b) and 12(b)(6), arguing that the plaintiffs
failed to state a single claim under the applicable federal
securities laws upon which relief can be granted.

Judge Gelpi analyzed the motion to dismiss only as to the
individual defendants because the case against Doral was
automatically stayed when it filed a voluntary petition under
Chapter 11 of the Title 11 of the Bankruptcy Code.

Judge Gelpi found that the allegations regarding Wakeman and
Wahlman's participation in the fraudulent scheme by knowingly
manipulating the ALLL and PLLL that was reported in the numerous
SEC filings, conference calls, and press releases are sufficient
to meet the heightened pleading standards for scienter.

However, Judge Gelpi found that with the remaining defendants, the
plaintiffs failed to plead their involvement in the purported
fraudulent scheme with the particularity required under Rule 9(b)
and the Private Securities Litigation Reform Act of 1995.

A full-text copy of Judge Gelpi's July 22, 2015 opinion and order
is available at http://is.gd/gyQmVNfrom Leagle.com.

Robert Blue is represented by:

          Erin W. Boardman, Esq.
          Robert M. Rothman, Esq.
          ROBBINS GELLER RUDMAN & DOWD LLP
          58 South Service Road, Suite 200
          Melville, NY 11747
          Tel: (631) 367-7100
          Fax: (631) 367-1173
          Email: eboardman@rgrdlaw.com
                 rrothman@rgrdlaw.com

             -- and --

          Frank J. Johnson, Esq.
          JOHNSON & WEAVER, LLP
          600 West Broadway, Suite 1540
          San Diego, CA 92101
          Tel: (619) 230-0063
          Fax: (619) 255-1856
          Email: frankj@johnsonandweaver.com

             -- and --

          Andres W. Lopez, Esq.
          THE LAW OFFICES OF ANDRES W. LOPEZ, P.S.C.

John Dalessandro is represented by:

          Erin W. Boardman, Esq.
          ROBBINS GELLER RUDMAN & DOWD LLP
          58 South Service Road, Suite 200
          Melville, NY 11747
          Tel: (631) 367-7100
          Fax: (631) 367-1173

             -- and --

          Francis McConville, Esq.
          Jeremy A. Lieberman, Esq.
          POMERANTZ, LLP
          600 Third Avenue
          New York, NY 10016
          Tel: (212) 661-1100
          Fax: (212) 661-8665
          Email: jalieberman@pomlaw.com

             -- and --

          Frank J. Johnson, Esq.
          JOHNSON & WEAVER, LLP
          600 West Broadway, Suite 1540
          San Diego, CA 92101
          Tel: (619) 230-0063
          Fax: (619) 255-1856

             -- and --

          Jorge E. Perez-Casellas, Esq.
          Andres W. Lopez, Esq.
          THE LAW OFFICES OF ANDRES W. LOPEZ, P.S.C.

Timothy Stump and are represented by:

          Francis McConville, Esq.
          POMERANTZ, LLP

Mordechai Hakim represented by:

          Eric M. Quetglas-Jordan, Esq.
          QUETGLAS LAW OFFICE
          #1021 Ashford Ave., 2nd Floor
          Condado, PR 00908
          Tel: (787) 722-0635
          Fax: (787) 725-3970

             -- and --

          Kara M. Wolke, Esq.
          Leanne E. Heine-Solish, Esq.
          Lionel Z. Glancy, Esq.
          Peter A. Binkow, Esq.
          GLANCY PRONGAY & MURRAY LLP
          1925 Century Park East Suite 2100
          Los Angeles, CA 90067
          Tel: (310) 201-9150
          Fax: (310) 432-1495
          Email: kwolke@glancylaw.com
                 lheine@glancylaw.com
                 lglancy@glancylaw.com
                 pbinkow@glancylaw.com

             -- and --

          Robert M. Rothman, Esq.
          ROBBINS GELLER RUDMAN & DOWD LLP
          58 South Service Road, Suite 200
          Melville, NY 11747
          Tel: (631) 367-7100
          Fax: (631) 367-1173
          Email: rrothman@rgrdlaw.com

Doral Financial Corporation, Glenn R. Wakeman, Robert E. Wahlman,
Penko Ivanov, David Hooston, Enrique R. Ubarri-Baragano, and
Christopher C. Poulton are  represented by:

          Anthony Antonelli, Esq.
          Kevin P. Broughel, Esq.
          Kevin C. Logue, Esq.
          Shahzeb Lari, Esq.
          PAUL HASTINGS LLP
          75 East 55th Street
          New York, NY 10022
          Tel: (212) 318-6000
          Fax: (212) 319-4090
          Email: anthonyantonelli@paulhastings.com
                 kevinbroughel@paulhastings.com
                 shahzeblari@paulhastings.com

          Jose A. Acosta-Grubb, Esq.
          Jose L. Ramirez-Coll, Esq.
          FIDDLER GONZALEZ & RODRIGUEZ, P.S.C.
          254 Munoz Rivera Ave. 6th floor
          Hato Rey, PR 00918
          Tel: (787) 753-3113
          Email: jacosta@fgrlaw.com
                 jramirez@fgrlaw.com

                  About Doral Financial

Doral Financial Corporation is a holding company whose primary
operating asset was equity in Doral Bank. DFC maintains offices
in New York City, Coral Gables, Florida and San Juan, Puerto Rico.

DFC has three wholly-owned subsidiaries: (i) Doral Properties,
Inc., (ii) Doral Insurance Agency, LLC ("Doral Insurance"), and
(iii) Doral Recovery, Inc.

On Feb. 27, 2015, regulators placed Doral Bank into receivership
and named the Federal Deposit  Insurance Corp. as
receiver. Doral Bank served customers through 26 branches
located in New York,
Florida, and Puerto Rico.

DFC sought Chapter 11 protection (Bankr. S.D.N.Y. Case No.
15-10573) in Manhattan on March 11, 2015. The case is assigned
to Judge Shelley C. Chapman.

DFC estimated $50 million to $100 million in assets and $100
million to $500 million in debt as of the bankruptcy filing.

The Debtor tapped Ropes & Gray LLP as counsel.

The Debtor's Chapter 11 plan and Disclosure Statement are due July
9, 2015.  The initial case conference is set for April 10, 2015.

The U.S. trustee overseeing the Chapter 11 case of Doral Financial
Corp. appointed five creditors of the company to serve on the
official committee of unsecured creditors.


STANDARD REGISTER: Amends Statement of Financial Affairs
--------------------------------------------------------
Standard Register Co. filed with the U.S. Bankruptcy Court for the
District of Delaware an amended statement of financial affairs.  A
full-text copy of the amended statement is available for free at
http://is.gd/DBfVfq

                     About Standard Register

Standard Register provides market-specific insights and a
compelling portfolio of workflow, content and analytics solutions
to address the changing business landscape in healthcare,
financial
services, manufacturing and retail markets.  The Company has
operations in all U.S. states and Puerto Rico, and currently
employs 3,500 full-time employees and 16 part-time employees.

The Standard Register Company and 10 affiliated debtors sought
Chapter 11 protection in Delaware on March 12, 2015, with plans to
launch a sale process where its largest secured lender would serve
as stalking horse bidder in an auction.

The cases are pending before the Honorable Judge Brendan L.
Shannon
and are jointly administered under Case No. 15-10541.

The Debtors have tapped Gibson, Dunn & Crutcher LLP and Young
Conaway Stargatt & Taylor LLP as counsel; McKinsey Recovery &
Transformation Services U.S., LLC, as restructuring advisors; and
Prime Clerk LLC as claims agent.

The Official Committee of Unsecured Creditors tapped Lowenstein
Sandler LLP as its counsel and Jefferies LLC as its exclusive
investment banker.


                            ***********


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 * * *