TCRLA_Public/160122.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Friday, January 22, 2016, Vol. 17, No. 15


                            Headlines



B R A Z I L

OGX PETROLEO: Chided For Trying to Slip Out Of Arbitration


C A Y M A N  I S L A N D S

BINEC LIMITED: Placed Under Voluntary Wind-Up
CANCALE INVESTMENTS: Placed Under Voluntary Wind-Up
CARNAC LIMITED: Placed Under Voluntary Wind-Up
CHAUSEY LIMITED: Placed Under Voluntary Wind-Up
CHI WAVE: Placed Under Voluntary Wind-Up

ESKE CAPITAL: Placed Under Voluntary Wind-Up
IRONGATE ABSOLUTE: Placed Under Voluntary Wind-Up
MARTINEAU INVESTMENTS: Placed Under Voluntary Wind-Up
OCTIS ASSET: Commences Liquidation Proceedings
PD STAR: Commences Liquidation Proceedings

PRIVATE EQUITY: Placed Under Voluntary Wind-Up
R OVERSEAS: Placed Under Voluntary Wind-Up
SIDERA CAPITAL: Placed Under Voluntary Wind-Up
SNOW PETREL: Placed Under Voluntary Wind-Up
TFO POOLING I: Commences Liquidation Proceedings


C O L O M B I A

PACIFIC EXPLORATION: S&P Lowers LT Corporate Credit Rating to 'D'


C O S T A   R I C A

COSTA RICA: Fitch Affirms 'BB+' IDR; Outlook Negative


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Shippers Debunk Exporters' Gripe of High Costs


J A M A I C A

JAMAICA: Government Calculating Cost of Possible Job Cuts


P U E R T O    R I C O

AMERICAN AGENCIES: Has Until April 15 to Assume Joviri Leases
PUERTO RICO: Financial Situation is Worsening
PUERTO RICO: Ambac Pays Out $10.3 Million on Default
PUERTO RICO ELECTRIC: Says Not Enough Cash for Debt Payments
PUERTO RICO ELECTRIC: Says Ch. 9 Option Would Avert Litigation


                            - - - - -


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


OGX PETROLEO: Chided For Trying to Slip Out Of Arbitration
----------------------------------------------------------
Hannah Sheehan at Law360.com reports that a British High Court
judge upbraided OGX Petroleo e Gas Participacoes S.A., now known
as Oleo e Gas, for omitting evidence in an attempt to escape a
London arbitration proceeding brought by two foreign firms.

Justice Richard Snowden expressed dismay that OGX Petroleo never
revealed that the dispute in arbitration over $78.73 million in
unpaid ship charter fees was not subject to the company's
reorganization plan, which the Fourth Corporate Court of Rio de
Janeiro approved after OGX filed for bankruptcy in Brazil,
according to Law360.com.

The report notes that OGX had applied for and received an order
for recognition in England of the Brazilian plan as a foreign main
proceeding, court documents show.  That recognition meant an
automatic stay of all other legal actions, including the
arbitration, the report relays.  Because an amended charter
agreement between OGX and the leasing company called for the fee
dispute to go to arbitration, the companies that were seeking the
charter fees were temporarily stuck, the report notes.

"When seeking recognition, full and frank disclosure must be made
to the court in relation to the consequences that recognition of
the foreign proceeding may have upon third parties who are not
before the court," the report quoted Justice Snowden as saying.

According to court documents, OGX filed for bankruptcy in Brazil
in October 2013 and asked the Netherlands-based leasing unit of
Brazilian shipbuilding giant OSX Brasil SA to agree to a reduction
in daily charter rates for a production, storage and offloading
vessel, which Norway's Nordic Trustee A.S.A had partially financed
through a $500 million bond, the report notes.

OSX 3 Leasing B.V. reduced the daily rate for the tanker from
$410,837 to $250,000.  In December 2014, OGX obtained an
injunction from the Brazilian bankruptcy court further reducing
the charter rate from $250,000 to $130,000 without providing
notice to Nordic or OSX 3 Leasing, the report recalls.

Nordic and OSX 3 Leasing submitted a request for arbitration in
London on June 22, 2015, alleging unpaid fees, the report notes.
OGX applied for the London order for recognition of the Brazilian
plan as the foreign main proceeding, which the court granted, the
report relates.  The firms immediately appealed the decision and
asked the court to set the order aside to allow the arbitration to
proceed, saying OGX had misled Justice George Mann, the report
notes.

Unbeknownst to the London court, OGX's reorganization plan
explicitly stated that the fee dispute between OGX and OSX 3
Leasing was not subject to the Brazilian reorganization effort,
the report discloses.  In fact, the September 2014 Charter
Amendment Agreement contained an arbitration provision stipulating
that all disputes between the companies should be resolved in the
London Court of Arbitration, the report says.

The Brazilian Supreme Court subsequently threw out OGX's push to
unilaterally reduce its daily charter rate, and the company agreed
to allow arbitration of its dispute with Nordic and OSX 3 Leasing
over $78.73 million in unpaid charter fees per the terms of their
amended agreement, the report notes.

Justice Snowden reprimanded OGX for not informing the court of the
potential effects to Nordic and Leasing from an automatic stay of
proceedings, saying the Brazilian firm abused the arbitration
process and caused the firms to incur a "very substantial amount
of costs," the report relays.

"For my part, had the parties not themselves agreed a modification
of the order that permitted the arbitration to continue and
included a provision that OGX would pay Nordic and Leasing's costs
(including a significant sum on account), I would have been
inclined to make an indemnity costs order against OGX,"  Justice
Snowden said, the report says.

Nordic Trustee A.S.A., OSX 3 Leasing B.V. is represented by
Andreas Gledhill QC and Andrew Scott (instructed by Akin Gump
LLP).

OGX Petroleo E Gas S.A. (EM Recuperacao Judicial), Pedro Morales
Borba, Paulo Narcelio Amaral and Julio Alfredo Klein Jr are
represented by Martin Pascoe QC -- martinpascoe@southsquare.com --
and Richard Fisher -- richardfisher@southsquare.com (instructed by
SC Andrews LLP).

The case is In The Matter of OGX Petroleo E Gas S.A. and In The
Matter of The Cross-Border Insolvency Regulations 2006, case
number 5091 of 2015, in the High Court of Justice, Chancery
Division.

                       About OGX Petroleo

Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participacoes
S.A., now known as Oleo e Gas, is an independent exploration and
production company with operations in Latin America.

OGX filed for bankruptcy in a business tribunal in Rio de Janeiro
on Oct. 30, 2013, case number 0377620-56.2013.8.19.0001.  The
bankruptcy filing puts US$3.6 billion of dollar bonds into default
in the largest corporate debt debacle on record in Latin America.
The filing by the oil company that transformed Eike Batista into
Brazil's richest man followed a 16-month decline that wiped out
more than US$30 billion of his personal fortune.

The filing, which in Brazil is called a judicial recovery, follows
months of negotiations to restructure the dollar bonds, in which
OGX sought to convert debt to equity and secure as much as US$500
million in new funds.  OGX said Oct. 29, 2013 that the talks
concluded without an agreement.


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


BINEC LIMITED: Placed Under Voluntary Wind-Up
---------------------------------------------
At an extraordinary general meeting held on Nov. 20, 2015, the
shareholders of Binec Limited resolved to voluntarily wind up the
company's operations.

Only creditors who were able to file their proofs of debt by
Dec. 29, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

          Helier Pirouet
          Ross Collins
          c/o Citron 2004 Limited
          23-25 Broad Street St Helier
          Jersey JE4 8ND
          Telephone: + 44 1534 282276/ 01534 282345
          Facsimile: + 44 1534 282400


CANCALE INVESTMENTS: Placed Under Voluntary Wind-Up
---------------------------------------------------
At an extraordinary general meeting held on Nov. 20, 2015, the
shareholders of Cancale Investments Limited resolved to
voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Dec. 29, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

          Helier Pirouet
          Ross Collins
          c/o Citron 2004 Limited
          23-25 Broad Street St Helier
          Jersey JE4 8ND
          Telephone: + 44 1534 282276/ 01534 282345
          Facsimile: + 44 1534 282400


CARNAC LIMITED: Placed Under Voluntary Wind-Up
----------------------------------------------
At an extraordinary general meeting held on Nov. 20, 2015, the
shareholders of Carnac Limited resolved to voluntarily wind up the
company's operations.

Only creditors who were able to file their proofs of debt by
Dec. 29, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

          Helier Pirouet
          Ross Collins
          c/o Citron 2004 Limited
          23-25 Broad Street St Helier
          Jersey JE4 8ND
          Telephone: + 44 1534 282276/ 01534 282345
          Facsimile: + 44 1534 282400


CHAUSEY LIMITED: Placed Under Voluntary Wind-Up
-----------------------------------------------
At an extraordinary general meeting held on Nov. 20, 2015, the
shareholders of Chausey Limited resolved to voluntarily wind up
the company's operations.

Only creditors who were able to file their proofs of debt by
Dec. 29, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

          Helier Pirouet
          Ross Collins
          c/o Citron 2004 Limited
          23-25 Broad Street St Helier
          Jersey JE4 8ND
          Telephone: + 44 1534 282276/ 01534 282345
          Facsimile: + 44 1534 282400


CHI WAVE: Placed Under Voluntary Wind-Up
----------------------------------------
At an extraordinary general meeting held on Nov. 20, 2015, the
shareholders of Chi Wave Limited resolved to voluntarily wind up
the company's operations.

Only creditors who were able to file their proofs of debt by
Dec. 29, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

          Helier Pirouet
          Ross Collins
          c/o Citron 2004 Limited
          23-25 Broad Street St Helier
          Jersey JE4 8ND
          Telephone: + 44 1534 282276/ 01534 282345
          Facsimile: + 44 1534 282400


ESKE CAPITAL: Placed Under Voluntary Wind-Up
--------------------------------------------
On Nov. 24, 2015, the sole shareholder of Eske Capital Ltd
resolved to voluntarily wind up the company's operations.

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

The company's liquidator is:

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


IRONGATE ABSOLUTE: Placed Under Voluntary Wind-Up
-------------------------------------------------
On Nov. 25, 2015, the sole shareholder of Irongate Absolute
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:

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


MARTINEAU INVESTMENTS: Placed Under Voluntary Wind-Up
-----------------------------------------------------
At an extraordinary general meeting held on Nov. 20, 2015, the
shareholders of Martineau Investments Company Ltd resolved to
voluntarily wind up the company's operations.

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

The company's liquidator is:

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


OCTIS ASSET: Commences Liquidation Proceedings
----------------------------------------------
On Nov. 17, 2015, the sole member of Octis Asset Management Cayman
Limited 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:

          Richard Fear
          c/o Ryan Charles
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands
          Telephone: (345) 814 7364
          Facsimile: (345) 945 3902


PD STAR: Commences Liquidation Proceedings
------------------------------------------
On Nov. 17, 2015, the members of PD Star 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
          Telephone: +1 (345) 949 4900
          75 Fort Street
          P.O. Box 1350 Grand Cayman KY1-1108
          Cayman Islands


PRIVATE EQUITY: Placed Under Voluntary Wind-Up
----------------------------------------------
At an extraordinary general meeting held on Nov. 20, 2015, the
shareholders of Private Equity Holding Cayman 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:

          Trident Liquidators (Cayman) Ltd.
          c/o Lisa Thoppil
          Telephone: (345) 949 0880
          Facsimile: (345) 949 0881
          One Capital Place, 4th Floor
          P.O. Box 847, George Town Grand Cayman KY1-1103
          Cayman Islands


R OVERSEAS: Placed Under Voluntary Wind-Up
------------------------------------------
On Nov. 24, 2015, the sole shareholder of R Overseas Ltd. resolved
to voluntarily wind up the company's operations.

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

The company's liquidator is:

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


SIDERA CAPITAL: Placed Under Voluntary Wind-Up
----------------------------------------------
On Nov. 24, 2015, the sole shareholder of Sidera Capital LLC
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:

          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


SNOW PETREL: Placed Under Voluntary Wind-Up
-------------------------------------------
At an extraordinary general meeting held on Nov. 20, 2015, the
shareholders of Snow Petrel Limited resolved to voluntarily wind
up the company's operations.

Only creditors who were able to file their proofs of debt by
Dec. 29, 2015, will be included in the company's dividend
distribution.

The company's liquidator is:

          Helier Pirouet
          Ross Collins
          c/o Citron 2004 Limited
          23-25 Broad Street St Helier
          Jersey JE4 8ND
          Telephone: + 44 1534 282276/ 01534 282345
          Facsimile: + 44 1534 282400


TFO POOLING I: Commences Liquidation Proceedings
------------------------------------------------
On Nov. 24, 2015, the sole shareholder of TFO Pooling I, Ltd.
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
          TFO Manager Limited
          Jo-Anne Maher
          Telephone: (345) 814-9255
          Facsimile: (345) 949-4647
          c/o Mourant Ozannes, Attorneys-at-law
          94 Solaris Avenue, Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


===============
C O L O M B I A
===============


PACIFIC EXPLORATION: S&P Lowers LT Corporate Credit Rating to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit and issue-level ratings on Pacific Exploration and
Production Corp (Pacific) to 'D' from 'CC'.

The downgrade reflects Pacific's failure to make the $31.3 million
interest payment on its 5.625% notes on Jan. 19, 2016.  A payment
default hasn't occurred according to the legal provisions of the
notes because of the 30-day grace period in which to cure interest
payment defaults.  However, S&P considers a default to have
occurred because it don't believe the payment will be made within
the stated grace period, given Pacific's announcement that it has
elected to use the 30 day grace period rather than make the
interest payments due Jan. 19, 2016, and Jan. 26, 2016, of about
$65 million.  Therefore, S&P expects Pacific to enter into a
general default and that it will fail to pay all or substantially
all of its obligations as they come due.

Pacific Exploration & Production Corporation engages in the
exploration, development, and production of natural gas and crude
oil in Colombia, Peru, Guatemala, Brazil, Guyana, Belize, and
Papua New Guinea.


===================
C O S T A   R I C A
===================


COSTA RICA: Fitch Affirms 'BB+' IDR; Outlook Negative
-----------------------------------------------------
Fitch Ratings has affirmed Costa Rica's Long-term foreign- and
local-currency IDRs at 'BB+'.  The Rating Outlook is Negative.
The issue ratings on Costa Rica's senior unsecured foreign- and
local-currency bonds have been affirmed at 'BB+'.  The Short-term
foreign-currency IDR has been affirmed at 'B' and the Country
Ceiling at 'BBB-'.

KEY RATING DRIVERS

Costa Rica's ratings are underpinned by its strong structural
features relative to peers in terms of high per-capita income,
social development indicators and governance, as well as the
continued success of its economic model centered around high
value-added service and manufacturing activities, which are
boosted by strong foreign direct investment inflows.  Costa Rica
also benefits from favorable U.S. demand growth and low oil
prices.

The Negative Outlook reflects adverse public debt dynamics, driven
by large fiscal deficits, and legislative gridlock preventing
progress on reforms to correct fiscal imbalances in a timely
manner.

The central government deficit inched upward to an estimated 5.9%
of GDP in 2015, driven by higher interest costs as efforts to
improve tax collections and contain salaries and discretionary
spending helped arrest growth in the primary deficit.  The 2016
budget envisions a higher deficit of 6.9% of GDP, although budget
under-execution could bring it closer to 6%.  A growing interest
bill and rigid spending commitments on salaries and legally-
protected social transfers will maintain pressure on public
finances.

The administration has outlined a series of fiscal reforms to
produce 3pp of GDP in savings over a three-year period, but
progress on these initiatives has been slow in a highly fragmented
congress.  Some less controversial tax administration bills have
advanced, but the outlook is less certain for two key reforms to
hike direct and indirect taxes.  There is greater willingness
among political actors to address fiscal imbalances, but consensus
over the sequencing and relative weight of tax-enhancing versus
spending-side reforms could be difficult to achieve.  Political
and procedural obstacles could block or delay reforms, or dilute
their yields, as evidenced by multiple unsuccessful fiscal reform
attempts under past administrations.

Fitch's baseline forecast assumes some progress on revenue-
enhancing measures to narrow the deficit, but fiscal consolidation
will be insufficient to stabilize the debt-to-GDP ratio.  General
government debt-to-GDP has risen nearly 15pp since 2010 to nearly
40% of GDP in 2015, and officials estimate a fiscal adjustment of
3.8% of GDP is necessary to stabilize debt by 2018.  The ratio of
interest payments to fiscal revenues is high relative to 'BB'
peers.

A captive local investor base dominated by publicly-administered
funds has supported fiscal financing flexibility.  However,
financing challenges could increase in 2016 given the absence of
congressional authorization for Eurobond issuance or an
alternative external financing source.  Additional sovereign
reliance on the local debt market could put upward pressure on
borrowing costs.  While recent policy rate cuts have helped hold
down borrowing costs, the trend could revert as favorable
inflation dynamics unwind.

Fitch estimates that growth slowed to 2.8% in 2015 from an average
of 4.3% during 2010-14 as the country absorbed the effects of two
shocks to the export sector (closure of a microchip plant and the
impact of El Nino on agricultural output), while domestic demand
has been strong.  Fitch expects growth will recover to 3.6% in
2016 and 4% in 2017, supported by diversified investment in high
value-added service and manufacturing activities, lower oil
prices, and firm US economic activity.

Lower oil prices have represented a favorable external shock for
Costa Rica, bringing the current account deficit below 4% of GDP
in 2015 compared to 5% on average during 2011 - 2013, and
supporting the accumulation of official reserves.  A well-
diversified export base and strong foreign direct investment
inflows support the economy's capacity to absorb external shocks
in the context of limited exchange rate flexibility given
financial dollarization.

Inflation fell sharply in 2015 due to the impact of lower energy
prices and the relative strength of the local currency, while
inflation expectations have moderated to the official target.
This has prompted substantial cuts in the policy rate by the
central bank, as well as a reduction in the inflation target from
4% to 3% (+/-1pp) in early 2016.  The impact on deposit and
lending rates has been somewhat muted, however, and the
authorities have unveiled changes in the calculation of a key
interest rate benchmark aimed at improving monetary transmission
channels.  High fiscal deficits, limited exchange rate
flexibility, financial dollarization and quasi-fiscal losses at
the central bank continue to constrain monetary policy.

The dollarization of credit remains an important source of risk in
the financial system, and growth in foreign-currency borrowing
gained speed in 2015 on an attractive interest rate differential
and the perceived stability in the exchange rate.  Banks maintain
a long FX position, but are exposed to credit risk from the high
shares of foreign-currency loans that are extended to borrowers
without foreign-currency earnings and with variable rates linked
to US benchmarks.

RATING SENSITIVITIES

These risk factors individually, or collectively, could trigger a
negative rating action:

   -- Inadequate progress on fiscal reforms that support a
      reduction in the primary deficit consistent with improvement
      in the debt trajectory;
   -- Evidence of sovereign financing constraints;
   -- A deterioration in prospects for foreign investment and
      growth.

The Outlook is Negative. Consequently, Fitch's sensitivity
analysis does not currently anticipate developments with a high
likelihood of leading to a positive rating change.  Future
developments that could individually, or collectively, result in a
stabilization of the Outlook include:

   -- Progress on a fiscal consolidation strategy that improves
      the prospects for debt stabilization;
   -- Higher growth that improves fiscal and government debt
      dynamics.

KEY ASSUMPTIONS

Fitch assumes that in the absence of authorization for a Eurobond
issuance, Costa Rica will be able to meet high deficit financing
needs in 2016 - 2017 through alternative external financing
sources and/or reliance on the local market.

Fitch forecasts that US growth and persistence of lower fuel
prices will be supportive of economic growth in Costa Rica in
2016 - 2017.


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


DOMINICAN REPUBLIC: Shippers Debunk Exporters' Gripe of High Costs
------------------------------------------------------------------
Dominican Today reports that Dominican Republic's shipping
companies grouped in the ANRD said the cost to ship Dominican
products to the US and other countries by sea have dropped up to
30%.

The shippers' statement responds to a complaint voiced by the
exporters grouped in Adoexpo, who say Dominican shipping companies
fail to cut freight costs to the main export destinations, despite
that international maritime freight fees from China to the
Caribbean have fallen 70%, according to Dominican Today.

The shippers said lower freight rates for containers from China
and the East to the US and mainly Europe over the last year, and
therefore the rest of the world, stem from the current global glut
in transport capacity, the report notes.

"The Chinese economy hasn't grown at double-digit percentages as
expected, but international shipping companies had ships built
with that growth in mind, creating an overcapacity estimated at
30%," the ARD said in a statement obtained by the news agency.

It adds that for these routes the shipping companies ordered
oversized ships capable of carrying up to 20,000, 20-foot
containers taking into account that those boats consume
considerably less fuel per transport unit than the current ones,
the report relays.

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'.


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


JAMAICA: Government Calculating Cost of Possible Job Cuts
---------------------------------------------------------
RJR News reports that Richard Byles, Co-Chairman of Jamaica's
Economic Program Oversight Committee (EPOC) has revealed that the
Government is now trying to assess the cost of possible public
sector job cuts.

Mr. Byles disclosed that the Government will be offering voluntary
separation and early retirement to employees, to reduce the wage
bill which reached J$168 billion this year, according to RJR News.

Acknowledging that "there are costs that are associated with (job)
separation," Mr. Byles said Administration was now paying
attention to all those cost implications, the report notes.

"So, I believe they are exploring ways to fund that, and they have
to do that in association with the IMF team," he explained, the
report relays.

Mr. Byles observed that if nothing is done to reduce the size of
the public sector, the wage-to-GDP ratio will soon reach 9.6%, the
report notes.

The Government, in keeping with a commitment to the IMF, is
targeting a wage-to-GDP rate of nine per cent next year, the
report discloses.

Mr. Byles stressed, however, that this was not a mandatory target,
but one that he believed the Government should seek to achieve it,
the report adds.

                            *     *     *

As reported in Troubled Company Reporter-Latin America on July 29,
2015, Standard & Poor's Ratings Services assigned its 'B' issue
rating on Jamaica's up to US$2 billion in bonds issued in two
tranches.  The first tranche is for up to US$1,350 million due in
2028.  The second tranche is for up to US$650 million due in 2045.
The government will use the proceeds to purchase debt that Jamaica
owes to Venezuela as well as to finance the government's 2015/2016
budget.


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


AMERICAN AGENCIES: Has Until April 15 to Assume Joviri Leases
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Puerto Rico has
given American Agencies Co. Inc. until April 15, 2016, to assume
its two nonresidential leases with Joviri Inc.

The company needs additional time in order to finalize its
negotiations with the landlord of the terms governing the
assumption of the leases, according to its lawyer, Luisa Valle
Castro, Esq., at C. Conde & Assoc., in Old San Juan, Puerto Rico.

                      About American Agencies

Puerto Rico-based American Agencies Co., Inc., founded in 1956 by
Eng. Jorge A. Rivera Cardona sells and installs steel fabricated
structures, along with the sale of doors and hardware.  American
Agencies operates from leased facilities in Rio Piedras, Puerto
Rico.  New Steel, Inc., fabricates steel structures that American
Agencies sells and installs.

American Agencies and New Steel filed Chapter 11 bankruptcy
petitions (Bankr. D.P.R. Case Nos. 15-07088 and 15-07090,
respectively) on Sept. 15, 2015.  The petitions were signed by
Omir Mendez, the president.  The Debtors cases are substantive
consolidated under Lead Case 15-07088.

American Agencies disclosed $6,810,695 in assets and $9,738,804 in
debt in its schedules.  New Steel disclosed $8,429,855 in assets
and $12,182,464 in debt in its schedules.  Banco Popular de Puerto
Rico is the largest secured creditor.

The Debtors tapped C. Conde & Associates as counsel; Doris Barroso
Vicens, CPA, at RSM ROC & Company, as accountant; Xavier A. Curret
from Landa Umpierre, P.S., as external auditor; Moises
Avila-Sanchez, Esq., from Avila, Martinez & Hernandez, P.S.C., as
special counsel relating to collective bargaining agreements; Jose
Julian Alvarez-Maldonado Esq., from the firm Fiddler, Gonzalez &
Rodriguez, P.S.C., as special counsel to provide special services
in corporate and contractual matters; and Ismael Isern Suarez from
I.S. Appraiser Group, P.S.C., as appraiser.


PUERTO RICO: Financial Situation is Worsening
---------------------------------------------
Michelle Kaske at Bloomberg News reports that Puerto Rico said the
island's financial situation is worsening and it increased
estimates of how much the commonwealth will fall short of being
able to make debt payments over the next decade to $23.9 billion.

Revenue will fall short of covering principal and interest
payments each year through 2025, according to an updated fiscal
and economic growth plan released by Governor Alejandro Garcia
Padilla's administration, Bloomberg News notes.  The payment
deficit over the next five years has widened to an estimated
$16.06 billion, up from a $14 billion forecast in September,
according to Bloomberg News.  Creditors asked Puerto Rico to
extend the plan to 10 from five years, the administration said.

Bloomberg News discloses that the swelling gap is based in part on
lower than anticipated revenue collections for this fiscal year,
the report said.   The update was made as Puerto Rico engages in
talks with bondholders to reduce the island's $70 billion debt
burden, Bloomberg News relays.  Without a debt restructuring,
there will be widespread defaults throughout the commonwealth's
debt stack, a senior Puerto Rico official reiterated in a phone
call with reporters.

"The information contained in the updated plan makes all the more
clear that actions must be taken before the commonwealth runs out
of options to pay its debt and provide essential services to the
people of Puerto Rico," Melba Acosta, president of the Government
Development Bank, said in an e-mailed statement obtained by
Bloomberg News.

The revenue estimates were revised before U.S. Treasury Secretary
Jacob J. Lew travels to San Juan on Jan. 20 to discuss Puerto
Rico's financial challenges with Garcia Padilla and other island
lawmakers.  A commonwealth agency defaulted on a $35.9 million
interest payment Jan. 4 after the administration redirected
revenue that's normally used to repay agency debt to instead cover
general-obligation payments, Bloomberg News relays.

As reported in the Troubled Company Reporter-Latin America on
Dec. 28, 2015, Moody's Investors Service has downgraded $1.09
billion of Puerto Rico appropriation bonds issued by the Public
Finance Corporation (PFC) to C from Ca, while maintaining other
ratings assigned to the US territory's debt.


PUERTO RICO: Ambac Pays Out $10.3 Million on Default
----------------------------------------------------
Nick Brown at Reuters reports that Puerto Rico's latest default
meant a $10.3 million hit for Ambac Financial, which insures some
of the debt the island's infrastructure authority PRIFA failed to
pay on Jan. 4.

Ambac had exposure to $10.3 million of PRIFA debt due on Jan. 4,
according to a Nov. 30 company report, Reuters notes.  An Ambac
spokeswoman confirmed the insurer paid the full amount.

PRIFA owed a roughly $36 million payment Jan. 4 but, according to
a public filing by the trustee for the PRIFA bonds, failed to
transfer funds to make the payment, Reuters relates.

Reuters says that the move was expected after Puerto Rico's
Governor Alejandro Garcia Padilla announced that PRIFA would miss
the payment.  The strategic defaults are meant to help Puerto Rico
combat an ongoing $70 billion debt crisis, Reuters discloses.

The trustee paid bondholders through a combination of cash on hand
and payouts from Ambac, the filing said, the report relays.

Standard & Poor's Ratings Services downgraded the PRIFA bonds to
'D', signifying default, from 'CC'.

Ambac insures a face value of more than $500 million of PRIFA
debt, according to public filings, the report relays.  In
December, Garcia Padilla said he would redirect revenues earmarked
to pay debt at PRIFA and other agencies, in order to pay Puerto
Rico's public debt, backed by its constitution, says Reuters.

Garcia Padilla said he had clawed back $163 million from those
agencies to pay about $329 million of public debt, Reuters notes.
While some of those agencies still had reserves to pay their own
debt, PRIFA did not, leading to its default, the report relays.

The report notes that Puerto Rico's Public Finance Corp is also
expected to default on a $1.4 million debt payment that was due.

In December, Ambac and Financial Guaranty Insurance Co penned a
letter to Garcia Padilla challenging the legality of the
clawbacks, and some analysts expect litigation to follow, the
report recalls.

"I think within a week of Ambac having to make that payment, they
will file a lawsuit," said Ed Groshans, an analyst with Height
Securities, following Puerto Rico, notes Reuters.

The $10.3 million payment on its own is small for Ambac, but with
more than $2 billion total par exposure to Puerto Rico debt, the
company could be in trouble if defaults continue, the report
discloses.

A key issue for Ambac, Groshans said, is its $809 million par
exposure to Puerto Rico's so-called COFINA debt, backed by sales
tax revenue whose structure could be attacked in court as Puerto
Rico's creditors battle for slices of a limited pie, the report
adds.

As reported in the Troubled Company Reporter-Latin America on
Dec. 28, 2015, Moody's Investors Service has downgraded $1.09
billion of Puerto Rico appropriation bonds issued by the Public
Finance Corporation (PFC) to C from Ca, while maintaining other
ratings assigned to the US territory's debt.


PUERTO RICO ELECTRIC: Says Not Enough Cash for Debt Payments
------------------------------------------------------------
Romy Varghese and Kasia Klimasinska at Bloomberg News report that
Puerto Rico's main electricity provider can't pay $1.13 billion
due to creditors between now and July 1 without approval of an
unprecedented debt-restructuring agreement that was reached at the
end of December, Lisa Donahue, the agency's chief restructuring
officer, told a committee of U.S. lawmakers.

The obligations are more than twice the amount of cash that the
Puerto Rico Electric Power Authority, known as Prepa, has on hand,
she said in testimony to a panel of the House Natural Resources
Committee, according to Bloomberg News.

"Prepa will not be able to make up the difference with revenue
from operations during this period," said Ms. Donahue, who is a
managing director with restructuring adviser AlixPartners,
Bloomberg News relays.

The committee examined the electricity system of the U.S.
territory, whose government defaulted on $37 million of bond
payments this month, Bloomberg News notes.  It didn't delve into
the broader fiscal crisis gripping the Caribbean Island that's
struggling to repay $70 billion of debt left from years of
borrowing to pay bills, Bloomberg News says.

The utility last month struck a deal with insurance companies and
bondholders to restructure its $8.2 billion of debt, Bloomberg
News discloses.  Puerto Rico lawmakers must approve it this month.

Bloomberg News says that Ms. Donahue said U.S. legislation giving
Puerto Rico legal ability to restructure its debts would help
persuade investors with about $2.7 billion of Prepa debt to sign
on to the deal cut with other creditors.  Prepa needs additional
investors with at least $2 billion to opt in for it to be
concluded, she said, Bloomberg News notes.

The hearing wasn't called to consider any specific legislation and
lawmakers didn't take any action, Bloomberg News relays.  The
committee doesn't have authority over whether to extend municipal
bankruptcy protection to the island, which is one of Puerto Rico's
top legislative priorities, Bloomberg News notes.

Rep. Raul Grijalva, the highest-ranking Democrat on the panel,
said the island needs such legal tools to cut its debt before it
can address its energy issues, Bloomberg News says.

"They can't repair their economy until they deal with the debt
problem," Bloomberg News quoted Mr. Grijalva as saying. "They
can't provide cost-effective energy until they raise billions of
dollars to upgrade their old and dysfunctional power generation
and distribution infrastructure," Mr. Grijalva added.

                             Bankruptcy Push

The Obama administration and Congressional Democrats have proposed
legislation that would allow Prepa and other agencies to file for
bankruptcy in federal court, just like U.S. cities and publicly
owned corporations can, Bloomberg News notes.  Some Republicans,
who control both chambers of Congress, oppose it, saying it would
be unfair to investors who bought Puerto Rico bonds with the
assurance that it wasn't an option, Bloomberg News says.

House Speaker Paul Ryan urged lawmakers to find a way to help the
territory by the end of the quarter, Bloomberg News discloses.

Rep. Rob Bishop, the Republican who leads the committee, said the
hearing was one step toward getting a handle on Puerto Rico's
problems so lawmakers can find a way to help, Bloomberg News
relays.

"It would be totally irresponsible to try to go through this
process without looking at the root causes," Rep. Bishop said,
relays Bloomberg News.

Talking to reporters after the hearing, Rep. Bishop said he sees
giving Puerto Rico access to bankruptcy as part of the solution,
though his committee doesn't have jurisdiction over the issue,
Bloomberg News says.

Prepa won't get a possible loan guarantee from U.S. Energy Dept.
to finance an offshore natural gas port until Prepa's financial
situation is steadied, Ms. Donahue said, Bloomberg News notes.
Prepa faces bills of $700 million under fuel lines of credit and
$428 million in principal and interest on its bonds between now
and July, she said.

The restructuring pact gave Prepa temporary relief from its
obligations, and without it, the agency "would already have run
out of money," Ms. Donahue said, Bloomberg News adds.

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2015, Standard & Poor's Ratings Services maintained its
'CC' long-term and underlying ratings (SPURs) on Puerto Rico
Electric Power Authority's (PREPA) electric revenue bonds.
However, the ratings remain on CreditWatch, where they were
originally placed with negative implications on June 18, 2014.

As of June 30, 2015, PREPA had about $8.44 billion of long-term
debt outstanding, and an additional $730 million due to
noteholders.


PUERTO RICO ELECTRIC: Says Ch. 9 Option Would Avert Litigation
--------------------------------------------------------------
Aaron Pelc at Law360.com reports that giving Puerto Rico's heavily
indebted utility the ability to restructure its finances through
the U.S. court system would expedite an existing deal with
stakeholders to reduce its debt by more than $1 billion and avert
potential litigation with holdout creditors, the utility's chief
restructuring officer told a congressional panel.

The Puerto Rico Electric Power Authority's Lisa Donahue, who has
been leading PREPA's turnaround efforts for more than a year, told
a House subcommittee that giving Puerto Rico an option to enter
bankruptcy would give the energy provider greater leverage in its
negotiations with creditors, according to Law360.com.  The hearing
is the latest Congress has convened over the last several months
as lawmakers deliberate what role the federal government should
play in addressing Puerto Rico's burgeoning debt crisis,
Law360.com notes.

Questions over Puerto Rico's political status related to its
treatment under U.S. laws emerged throughout the hearing, the
report relates.  Unlike states and municipalities, Puerto Rico
does not have access to Chapter 9 of the U.S. Bankruptcy Code,
which has allowed cities like Detroit to restructure debt through
the courts, the report says.  Meanwhile, the commonwealth's
attempts to establish a separate restructuring regime have been
blocked by the courts, Law360.com notes.

Law360.com relays that Ms. Donahue said a restructuring deal PREPA
reached last year with creditors that hold about 70 percent of the
utility's $9 billion debt is the key to its financial
restructuring regardless of whether Puerto Rico eventually is
given a bankruptcy option.  However, Ms. Donahue said, Chapter 9
would speed up PREPA's restructuring process and prevent holdout
bondholders from obstructing a deal, the report notes.

Holistically, the biggest advantage to Chapter 9 is that it would
force all of PREPA's stakeholders to the negotiating table and
allow a federal judge to enforce a restructuring deal on all of
the utility's creditors, Ms. Donahue said, the report relates.
Without that legal tool, creditors -- and funds that purchase debt
on the secondary market -- could hold out for a better deal and
frustrate restructuring efforts, she added.

"Where a Chapter 9 would make sense for PREPA is to facilitate the
deal very quickly," the report quoted Ms. Donahue as saying.  "It
would pull in the holdouts, to the extent that there are holdouts,
so we don't have an Argentina," Ms. Donahue added.

The report relays that Argentina has for years been locked in U.S.
litigation with private equity firms that hold billions of dollars
in defaulted debt and judgments against the country.  Ms. Donahue
and representatives from Puerto Rico said at the hearing that
without Chapter 9, PREPA will face similar litigation, and more of
it, because it is likely to default on its debts early this year,
the report notes.

PREPA's financial woes are the result of decades of fiscal
mismanagement, Ms. Donahue said, the report discloses.  When
administrations changed, Puerto Rico's political leaders switched
out PREPA's leadership, making long-term planning impossible, Ms.
Donahue said.

Currently, PREPA's infrastructure is badly outdated, having not
undergone a substantial update since the 1970s, officials said at
the hearing, the report relays.  As a result, the electricity
delivery systems are inefficient and create environmental problems
not present at modern utilities, they said, the report notes.

Though Puerto Rico residents on average pay higher electricity
rates than in the states, PREPA still operates at a loss of about
8 cents per kilowatt-hour, Ms. Donahue said, the report notes.

The financial problems, which have been building for years, have
hindered Puerto Rico's economy and pushed the island to the brink
of a humanitarian crisis. Congressional Republicans, however, have
so far expressed an unwillingness to provide Puerto Rico with a
bankruptcy option, expressing concern for bondholders' contractual
rights, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2015, Standard & Poor's Ratings Services maintained its
'CC' long-term and underlying ratings (SPURs) on Puerto Rico
Electric Power Authority's (PREPA) electric revenue bonds.
However, the ratings remain on CreditWatch, where they were
originally placed with negative implications on June 18, 2014.

As of June 30, 2015, PREPA had about $8.44 billion of long-term
debt outstanding, and an additional $730 million due to
noteholders.


                            ***********


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

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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
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Information contained herein is obtained from sources believed to
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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,
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202-362-8552.


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