TCRLA_Public/160121.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, January 21, 2016, Vol. 17, No. 14


                            Headlines



B R A Z I L

BRAZIL: Recession Deepening With Three Lost Years, IMF Says
PETROLEO BRASILEIRO: Market Cap Down 85.55% Since May 2008


C A Y M A N  I S L A N D S

ADM CREDIT: Placed Under Voluntary Wind-Up
AFRICA EQUITY: Commences Liquidation Proceedings
CA BERLIN: Commences Liquidation Proceedings
CHEYNE MALACCA: Commences Liquidation Proceedings
DOUBLE HAVEN: Commences Liquidation Proceedings

HOLDCO DISTRESSED I: Commences Liquidation Proceedings
HOLDCO DISTRESSED III: Commences Liquidation Proceedings
INFINITY CAPITAL: Commences Liquidation Proceedings
NOMAD INVESTMENT: Placed Under Voluntary Wind-Up
PD GERMANY: Commences Liquidation Proceedings

PRINCETON ASSET: Placed Under Voluntary Wind-Up
PRINCETON ASSET MASTER: Placed Under Voluntary Wind-Up
RV DRESDEN: Commences Liquidation Proceedings
SILVERMORE 2: Commences Liquidation Proceedings
SPK 23 (CAYMAN): Placed Under Voluntary Wind-Up


C H I L E

SMU SA Y FILIALES: S&P Revises Outlook to Pos. & Affirms CCC+ CCR


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Seeks Investors to Look For Oil
POPULAR DOMINICANO: Tourism Sector Gets 47% of Bank Loans


J A M A I C A

FINANCIAL INSTITUTIONS: Builds Up Huge Deficit


M E X I C O

SERVICIOS CORPORATIVOS: Moody's Affirms B2 Rating; Outlook Stable


P U E R T O    R I C O

MORGANS HOTEL: Amends Employment Agreements with COO and EVP


                            - - - - -


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


BRAZIL: Recession Deepening With Three Lost Years, IMF Says
-----------------------------------------------------------
David Biller at Bloomberg News reports that Brazil won't return to
growth until at least 2018 after two years of recession and one of
stagnation, marking the first time in over a century that Latin
America's largest economy fails to expand for that long, the
International Monetary Fund said.

According to Bloomberg News, the IMF cut Brazil's 2017 economic
forecast to stagnation from 2.3 percent growth as it updated its
World Economic Outlook, last published in October.  Gross domestic
product will shrink 3.5 percent this year after contracting 3.8
percent in 2015, it said.  That would be the first time since 1901
that Brazil has back-to-back recessions deeper than 3 percent,
according to data from the government's economic research
institute, known as IPEA.

The estimates mean the Washington-based lender is now more
pessimistic than all but four of the 23 economists surveyed by
Bloomberg, whose median estimate is for Brazil to expand 1 percent
next year.

Confidence has sunk to record lows in Brazil, depressing both
consumption and investment as bottoming prices for commodity
exports provide no relief, Bloomberg News notes.  The fraught
economic scenario has deteriorated amid a probe into bribes at
state-run oil producer Petrobras that has implicated key
politicians and business executives, says the report.

"The recession caused by political uncertainty amid continued
fallout from the Petrobras investigation is proving to be deeper
and more protracted than previously expected," the IMF said in the
report, which didn't provide forecasts beyond 2017, Bloomberg News
relays.

Brazil and other nations undergoing "economic distress" will drag
Latin America and the Caribbean into a 0.3 percent contraction
this year, according to the report, Bloomberg News notes.  The IMF
cited Brazil's recession as a key factor behind its downward
revisions to the global economic outlook this year and next,
Bloomberg News adds.

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2015, Fitch Ratings has downgraded Brazil's ratings:

   -- Long-term foreign and local currency Issuer Default Ratings
      (IDRs) to 'BB+' from 'BBB-', Outlook remains Negative;

   -- Senior unsecured foreign and local currency bonds to 'BB+'
      from 'BBB-';

   -- Short-term foreign currency IDR to 'B' from 'F3'.


PETROLEO BRASILEIRO: Market Cap Down 85.55% Since May 2008
----------------------------------------------------------
EFE News reports that Brazilian state-controlled oil company
Petroleo Brasileiro's market capitalization has plunged 85.55
percent since May 21, 2008, when it hit a record high of BRL510.3
billion (around $126.5 billion at the current exchange rate), an
investment analysis firm said.

Petrobras, whose current market cap is BRL73.7 billion (around
$18.3 billion), has fallen the most from its peak -- in absolute
terms -- among companies traded on the Sao Paulo Stock Exchange,
according to Sao Paulo-based Economatica, says EFE News.

The report notes that the state-controlled company has been hard
hit by the drop in global oil prices and a massive bribes-for-
inflated-contracts scheme that forced Petrobras to write down
BRL50.8 billion ($12.54 billion at the current exchange rate) last
year due to losses from graft and overvalued assets.

The market capitalization of Brazilian mining giant Vale,
meanwhile, stood at BRL42 billion (some $10.4 billion) on Jan. 18,
down 86.99 percent from its record high on May 16, 2008, the
report says.

The biggest decliner on a percentage basis has been steelmaker
Gerdau Metalurgica, which had a market cap of BRL988 million (some
$244.9 million) on Jan. 18, down 95.77 percent from its record
high on June 9, 2008.

Of the 57 companies that make up the Ibovespa, the Sao Paulo
exchange's benchmark index, 28 have seen their stock price plunge
more than 50 percent from their record highs, Economatica said,
the report adds.

As reported in the Troubled Company Reporter-Latin America on
Jan. 18, 2016, the decision by Petroleo Brasileiro S.A.
(Petrobras, Ba3 RUR) to sharply reduce its capital spending is
positive, as it helps the oil company preserve cash at a time when
it is facing significant refinancing risk. The company's estimates
of a limited decline in its production target for 2020 imply very
low prices for equipment and services as well as continued
operating productivity, says Moody's Investors Service.



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


ADM CREDIT: Placed Under Voluntary Wind-Up
------------------------------------------
On Nov. 19, 2015, the sole shareholder of ADM Credit Investments
Limited resolved to voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Dec. 28, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

          Alexander Shaik
          c/o Suite 1008 ICBC Tower
          3 Garden Road, Central
          Hong Kong
          Telephone: (852) 2536 4567
          Facsimile: (852) 2147 2813


AFRICA EQUITY: Commences Liquidation Proceedings
------------------------------------------------
On Nov. 17, 2015, the members of Africa Equity Growth Fund
resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Dec. 30, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

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


CA BERLIN: Commences Liquidation Proceedings
--------------------------------------------
On Nov. 16, 2015, the members of CA Berlin Project Company, Ltd.
resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Jan. 8, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Christopher Kennedy
          c/o Barry Lynch
          Telephone: (345) 949 7576
          Facsimile: (345) 949 8295
          P.O. Box 897 Grand Cayman KY1-1103
          Windward 1, Regatta Office Park
          Cayman Islands


CHEYNE MALACCA: Commences Liquidation Proceedings
-------------------------------------------------
On Nov. 23, 2015, the sole shareholder of Cheyne Malacca Asia
Equity Fund Inc. resolved to voluntarily liquidate the company's
business.

Only creditors who were able to file their proofs of debt by
Dec. 28, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

          Mourant Ozannes Cayman Liquidators Limited
          c/o Jo-Anne Maher
          Telephone: (345) 814-9255
          Facsimile: (345) 949-4647
          94 Solaris Avenue, Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


DOUBLE HAVEN: Commences Liquidation Proceedings
-----------------------------------------------
On Nov. 24, 2015, the sole shareholder of Double Haven Asia Credit
OC Fund 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:

          Kanwaljit Singh Bahra
          c/o Double Haven Capital (Hong Kong) Limited
          Level 41, 4104-08, 248 Queen's Road East
          Wan Chai
          Hong Kong


HOLDCO DISTRESSED I: Commences Liquidation Proceedings
------------------------------------------------------
On Nov. 24, 2015, the sole shareholder of Holdco Distressed Fund I
resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Dec. 22, 2015, will be included in the company's dividend
distribution.

The company's liquidators are:

          Vikaran Ghei
          Michael Zaitzeff
          c/o Loeb Smith Attorneys
          Zephyr House, 5th Floor, 122 Mary Street
          George Town Grand Cayman KY1-1206
          Cayman Islands
          Dominika Chrachalova
          Telepphone: (345) 749 7493


HOLDCO DISTRESSED III: Commences Liquidation Proceedings
--------------------------------------------------------
On Nov. 24, 2015, the sole shareholder of Holdco Distressed Fund
III resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Dec. 22, 2015, will be included in the company's dividend
distribution.

The company's liquidators are:

          Vikaran Ghei
          Michael Zaitzeff
          c/o Loeb Smith Attorneys
          Zephyr House, 5th Floor, 122 Mary Street
          George Town Grand Cayman KY1-1206
          Cayman Islands
          Dominika Chrachalova
          Telepphone: (345) 749 7493


INFINITY CAPITAL: Commences Liquidation Proceedings
---------------------------------------------------
On Nov. 17, 2015, the shareholders of Infinity Capital resolved to
voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Jan. 6, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

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


NOMAD INVESTMENT: Placed Under Voluntary Wind-Up
------------------------------------------------
On April 30, 2014, the sole shareholder of The Nomad Investment
Company Limited passed a resolution 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:

          Avalon Ltd.
          Reference: GL
          Telephone: +1 (345) 769 4422
          Facsimile: +1 (345) 769 9351
          Landmark Square, 1st Floor, 64 Earth Close
          P.O. Box 715 Grand Cayman KY1-1107
          Cayman Islands


PD GERMANY: Commences Liquidation Proceedings
---------------------------------------------
On Nov. 16, 2015, the members of PD Germany Project Company I,
Ltd. resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Jan. 8, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Christopher Kennedy
          c/o Barry Lynch
          Telephone: (345) 949 7576
          Facsimile: (345) 949 8295
          P.O. Box 897 Grand Cayman KY1-1103
          Windward 1, Regatta Office Park
          Cayman Islands


PRINCETON ASSET: Placed Under Voluntary Wind-Up
-----------------------------------------------
On Nov. 25, 2015, the sole shareholder of Princeton Asset
Management Absolute Return Fund, Ltd. resolved to voluntarily wind
up the company's operations.

Only creditors who were able to file their proofs of debt by
Dec. 28, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

          Priestleys
          c/o Martina de Lima
          Telephone: (345) 946-1577
          Caribbean Plaza, 2nd Floor
          878 West Bay Road
          P.O. Box 30310 Grand Cayman KY1-1202
          Cayman Islands


PRINCETON ASSET MASTER: Placed Under Voluntary Wind-Up
------------------------------------------------------
On Nov. 24, 2015, the sole shareholder of Princeton Asset
Management Absolute Return Master Fund, Ltd. resolved to
voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Dec. 28, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

          Priestleys
          c/o Martina de Lima
          Telephone: (345) 946-1577
          Caribbean Plaza, 2nd Floor
          878 West Bay Road
          P.O. Box 30310 Grand Cayman KY1-1202
          Cayman Islands


RV DRESDEN: Commences Liquidation Proceedings
---------------------------------------------
On Nov. 16, 2015, the members of RV Dresden Project Company, Ltd.
resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Jan. 8, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Christopher Kennedy
          c/o Barry Lynch
          Telephone: (345) 949 7576
          Facsimile: (345) 949 8295
          P.O. Box 897 Grand Cayman KY1-1103
          Windward 1, Regatta Office Park
          Cayman Islands


SILVERMORE 2: Commences Liquidation Proceedings
-----------------------------------------------
On Nov. 20, 2015, the members of Silvermore 2 Ltd. resolved to
voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Dec. 30, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

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


SPK 23 (CAYMAN): Placed Under Voluntary Wind-Up
-----------------------------------------------
On Nov. 24, 2015, the sole member of SPK 23 (Cayman) Inc. 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:

          Sanjeev Dave
          c/o Campbells
          Willow House, Floor 4
          Cricket Square
          Grand Cayman KY1-1103
          Cayman Islands
          Telephone: +1 (345) 949 2648
          Facsimile: +1 (345) 949 8613


=========
C H I L E
=========


SMU SA Y FILIALES: S&P Revises Outlook to Pos. & Affirms CCC+ CCR
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
SMU S.A. y Filiales to positive from stable.  At the same time,
S&P affirmed its 'CCC+' corporate credit and issue-level ratings
on the company.

The outlook revision follows SMU's Dec. 30, 2015, announcement
that its board of directors approved a CLP230 billion capital
increase.  SMU plans to use the proceeds to pay subordinated debt
it owes to its major shareholder, local bonds, and for working
capital needs.  While this should partly improve the company's
capital structure, stronger operating results are necessary to
raise cash flow generation in order to reduce company's still high
leverage.

The company continues to improve its operating performance, with
sales growth and stronger EBITDA margin of 6.0%-6.5% in the past
few quarters, what S&P believes can continue in the next few
quarters.  Despite the benefits stemming from the capital
increase, S&P expects SMU's leverage to remain high, with debt to
EBITDA above 7.0x.  Also, the company's exposure to dollar-
denominated debt, which is not hedged, might drag down cash
generation amid higher interest costs if the Chilean peso further
depreciates.

Despite improving operating performance, the high debt burden
undermines SMU's financial flexibility.  Moreover, under the
current scenario, S&P thinks there will be a narrow cushion for
the company's financial covenants with local bondholders, which
SMU needs to comply by December 2016.  Therefore, S&P believes the
company will likely need to renegotiate or obtain a waiver for
them.



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


DOMINICAN REPUBLIC: Seeks Investors to Look For Oil
---------------------------------------------------
Dominican Today reports that Dominican Republic showcased its
energy and oil sector which will soon open opportunities for
private capital to explore for and produce hydrocarbons in its
territory to potential investors and government officials of the
island-nation.

Energy and Mines Minister Antonio Isa spoke at the Energy and
Development Regional Conference held from January 18 to 20 in the
Caribbean country, Dominican Republic's main supplier of natural
gas and propane, according to Dominican Today.

Minister Isa offered unpublished data over the 12,690 linear
kilometers of untapped territory without any concessions which his
country will soon make available to interested investors, the
report notes.

Minister Isa said his agency will soon feature the National
Hydrocarbons Data Base, which is being compiled by a subsidiary of
the international firm Schlumberger-Surenco, which was contracted
by the Dominican government, the report relays.

"We would be very pleased for you to join us in the development of
the emerging energy industry in the Dominican Republic, taking
advantage of the opportunities and the business climate that we
promote for investment," the report quoted Minister Isa as saying.

The official said since May last year his agency has updated,
organized and digitized high-value information to potential
investors that will serve to create hydrocarbon exploration blocks
to be tendered shortly under specific contracts, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'.  The Rating Outlooks on the long-term IDRs are revised to
Positive from Stable. The issue ratings on the Dominican
Republic's senior unsecured foreign and local currency bonds are
affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the
short-term foreign currency IDR at 'B'.


POPULAR DOMINICANO: Tourism Sector Gets 47% of Bank Loans
---------------------------------------------------------
Dominican Today reports that Banco Popular Dominicano public
relations director Jose Marmol said the country's tourism sector
accounts for 47% of that bank's loans, with RD$16.4 billion to
November 2015, from a total of RD$34.82 billion from all local
banks.

Speaking during a breakfast with Banco Popular executives and
Dominican journalists in Madrid, where the International Tourism
Fair (Fitur) 2016, Mr. Marmol said the National Hotels and
Restaurants Association (Asonahores) called Poplar the "tourism
bank," because 20 years ago they began bringing tour leaders,
banks and investors from Spain together, the report notes.

Dominican Today relays that Mr. Marmol said conferences and
seminars were promoted as well in 2014, seeking to develop the
sector, contributing RD$6.8 billion to the country in tax revenue,
and RD$6.0 billion from January to September 2015.

". . . .  the BPD hosts a dinner for the 250 participating
potential or current investors and entrepreneurs of complementary
tourism sectors at the Thyssen-Bornemisza Museum in Madrid,
Spaing," the leader added.



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


FINANCIAL INSTITUTIONS: Builds Up Huge Deficit
----------------------------------------------
RJR News reports that the entity established more than 20 years
ago to manage the assets of  the Blaise and Century financial
entities has racked up a deficit of more than J$300 million.

According to the 2013/2014 audited results of Financial
Institutions Services (FIS), which were tabled in Parliament, the
auditors KPMG, said the continuation of the company as a going
concern is uncertain, the report notes.

FIS had a net deficit of J$328 million and liabilities of J$329
million, according to RJR News.

The auditors said the collection of outstanding damages awarded
against former officers of the Century financial entities is
uncertain, the report relays.

A judgement was handed down by the Privy Council in November 2005,
upholding the decision of  the Supreme Court in 1999 which awarded
repayment to FIS of J$3 billion plus interest by former principals
and shareholders of Century Financial, the report notes.

Various pieces of real estate, estimated at $250 million, owned by
the former principal director, were identified to be applied
against this judgement debt, the report says.

FIS said efforts are still being made to identify other assets
that may be sold, the report adds.


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


SERVICIOS CORPORATIVOS: Moody's Affirms B2 Rating; Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service has affirmed the B2 senior unsecured
rating of Servicios Corporativos Javer.  The outlook is stable.

RATINGS RATIONALE

The affirmation of Javer's ratings follows the completion of its
initial public offering (IPO).  "The IPO is credit positive as it
is a step forward in the company's plan to de-lever and reduce
foreign currency exposure in its capital structure", said Sandra
Beltran, a Moody's AVP -- Analyst.  However, Javer ratings remain
unchanged as there are some milestones that the company needs to
achieve to complete its refinancing plan, while maintaining
operating performance and margins at current levels.

Javer's B2 senior unsecured rating reflects its leading presence
in relevant markets such as the states of Nuevo Leon and Jalisco,
which include Mexico's second and third-largest metropolitan area.
The rating also considers the company's solid operating
performance in recent years, which were particularly challenging
for the industry in Mexico during 2013.  Balancing these credit
positives are Javer's small size and weak credit metrics for the
rating category, mainly due to the still high amount of debt.  The
B2 rating also reflects its high reliance on Infonavit for takeout
financing and federal subsidies for its low and middle income
segments.

On Jan. 13, 2016, Javer closed an IPO for 34% of its stake,
currently listed in the Mexican Stock Exchange.  Through the IPO
the company was able to raise MXN 1.8 billion, which will be used
to fund a partial repurchase of its USD 295 million senior notes
due 2021.  Moody's views the transaction as positive not only in
terms of debt reduction, but because it will also reduce the
company's capital structure exposure to foreign currency debt.
The bulk of Javer's debt are its USD denominated global notes,
impacted by the 17% depreciation of the Mexican Peso in 2015.

After the repurchase of the notes, we estimate that Javer's
leverage, measured as Debt / Capitalization, will be reduced to
approximately 48% from 77% as of September 2015.  However,
leverage will still be commensurate with the B2 ratings and the
company will still be exposed -- although on a lesser extent - to
the depreciation of the peso.

Javer's operating performance has been resilient even during the
2012/2013 sector's crisis.  However, recently there have been
signs of deterioration.  For example, for the last twelve months
(LTM ) ended in September 2015, revenue growth was only 2.2% when
compared to the 11.7% growth rate of 2014.  Profitability has also
deteriorated with LTM gross margin at 27.8%, below the 29.2%
posted in 2013, when the sector's crisis was at its peak and the
housing policy changed.  Although Javer is currently the market
leader in terms of Infonavit mortgage loans, we think that its
focus on attractive markets in Mexico with positive housing
dynamics could result in intensified competition that could
further pressure profitability.

The stable outlook reflects our view that the company will be able
to maintain solid operating performance despite a challenging
macroeconomic environment given the flexibility it has maintained
in its operations through a focus in working capital, a diverse
product portfolio and presence in several regions in Mexico with
positive dynamics.  In addition, the outlook incorporates Moody's
expectation that the company will continue to take actions in
order to reduce leverage and exposure to foreign currency.
Moody's also anticipates that Javer will be able to meet its sales
target particularly now that is entering in new markets with
strong competition from regional players.

Positive rating pressure would require further steps in Javer's
plan to reduce debt and exposure to foreign currency.  An upgrade
of the rating would be predicated upon the company maintaining
EBITDA margin above 15% and Debt to Capitalization trending
towards 40% while continuing to grow its revenue base.  Finally,
for an upgrade to be considered, Javer would need to maintain a
conservative land bank strategy.

A downgrade will occur should Javer encounter further challenges
in reaching titling and sales targets or due to missteps in its
acquisition or land bank strategy which result in a weakening of
credit metrics from current levels such that EBITDA margins fall
closer to 12% and/or debt/capitalization approaches 55% without
prospects to de-lever.

Headquartered in the city of Monterrey, Mexico, Servicios
Corporativos Javer S.A.B. de C.V. is one of the country's largest
house developers, specializing in the construction of low and
middle income housing.  The company is privately owned and
operates in the states of Nuevo Leon, Aguascalientes, Tamaulipas,
Jalisco, Queretaro, Quintana Roo and State of Mexico.  Javer is
the largest supplier of Mexican Workers' Housing Fund (Infonavit)
homes in the country and in the states of Nuevo Leon, Jalisco and
Queretaro.  For the last twelve months ended on September 30,
2015, Javer reported revenues of around MXN 6,177 million with an
EBITDA margin as adjusted by Moody's of 13.8%.


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


MORGANS HOTEL: Amends Employment Agreements with COO and EVP
-------------------------------------------------------------
Morgans Hotel Group Co. entered into amended and restated
employment agreements with Joshua Fluhr, the Company's chief
operating officer, and Meredith L. Deutsch, the Company's
executive vice president, general counsel and corporate secretary
on Jan. 14, 2016.  The Agreements replace in their entirety the
prior agreements the Company had entered into with each of Mr.
Fluhr and Ms. Deutsch.

The Agreements are generally consistent with the executives'
previous employment agreements with the Company, and the
Agreements
also:

   (i) reflect the executives' titles the executives' previously-
       agreed (and current) base salaries and target bonuses,
       which are $400,000 per annum and 50% of base salary for
       each of the named executives;

  (ii) do not have any fixed contract term;

(iii) increase each executive's cash severance payments from six
       to 12 months of base salary continuation in the event of a
       termination of the executive's employment by the Company
       without cause or by the executive for good reason, each as
       defined in the Agreements, with a corresponding increase in
       Ms. Deutsch's health care continuation payment;

  (iv) provide that the named executives will be entitled to a
       pro-rata annual discretionary bonus for the year of
       termination upon a severance-entitling termination;

   (v) provide for (x) accelerated vesting of all unvested equity
       granted to Mr. Fluhr and Ms. Deutsch prior to the date of
       the Agreements, and, solely with respect to Mr. Fluhr, any
       restricted stock units granted to him as part of his annual
       bonus upon a severance-entitling termination, and (y) pro-
       rata vesting of all other outstanding equity awards upon a
       severance-entitling termination or a termination of the
       executive's employment due to death or disability (as
       defined in the Agreements) (except in the case of a
       severance-entitling termination within 12 months of a
       change of control, upon which all unvested equity
       outstanding at the time of the change in control will vest
       upon termination in accordance with the Company's equity
       plan);

  (vi) provide that the named executives will be entitled to six
       months of salary continuation payments upon a termination
       due to death; and

(vii) solely with respect to Mr. Fluhr, in addition to the other

       post-employment covenants in his prior agreement, clarifies
       that he will only be subject to his post-employment
       noncompetition covenant upon a voluntary resignation by him
       without "good reason" upon continued payment of his base
       salary by the Company during the six-month post-employment
       non-competition period.

                     About Morgans Hotel Group

Based in New York, Morgans Hotel Group Co. (Nasdaq: MHGC) --
http://www.morganshotelgroup.com/-- is widely credited as the
creator of the first "boutique" hotel and a continuing leader of
the hotel industry's boutique sector.  Morgans Hotel Group
operates and owns, or has an ownership interest in, Morgans,
Royalton and Hudson in New York, Delano and Shore Club in South
Beach, Mondrian in Los Angeles and South Beach, Clift in San
Francisco, Ames in Boston, and Sanderson and St Martins Lane in
London.  Morgans Hotel Group and an equity partner also own the
Hard Rock Hotel & Casino in Las Vegas and related assets.  Morgans
Hotel Group also manages hotels in Isla Verde, Puerto Rico and
Playa del Carmen, Mexico.  Morgans Hotel Group has other property
transactions in various stages of completion, including projects
in SoHo, New York and Palm Springs, California.

Morgans Hotel reported a net loss attributable to common
stockholders of $66.6 million on $235 million of total revenues
for the year ended Dec. 31, 2014, compared with a net loss
attributable to common stockholders of $58.5 million on $236
million of total revenues during the prior year.

As of Sept. 30, 2015, the Company had $515 million in total
assets, $774 million in total liabilities and a $259 million total
deficit.


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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.

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 2016.  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.


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