TCRLA_Public/160525.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, May 25, 2016, Vol. 17, No. 102


                            Headlines



A N T I G U A  &  B A R B U D A

GRAND BAY CASINO: Unexpectedly Shuts Down, Leaves Workers Unpaid


B A R B A D O S

BARBADOS: Turning Corner But Challenges Remain, IMF Says


B R A Z I L

BRAZIL: Minister Says "Diagnosis" Of Crisis is Top Priority
TRANSMISSORA ALIANCA: S&P Affirms 'BB' CCR; Outlook Remains Neg.
ULTRAPAR PARTICIPACOES: S&P Affirms 'BB+' CCR; Outlook Negative
VALE SA: Brazil Stocks Extend Weekly Drop as Firm's Shares Tumble
VALID S.A.: Fitch Assigns 'BB-' Issuer Default Ratings


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Free Zones' 161,257 Jobs Reveal Robust Sector


J A M A I C A

DIGICEL GROUP: Tests Huawei's XG-PON in Jamaica
DIGICEL GROUP: Fitch Affirms 'B' Issuer Default Rating


P A N A M A

BANCO INTERNACIONAL: Moody's Puts ba2 BCA on Review on Downgrade


P U E R T O    R I C O

AEROPOSTALE INC: Has Interim OK to Tap $100-Mil. in DIP Loans
AEROPOSTALE INC: Shareholder Eyes Claims Against Lender Sycamore
AEROPOSTALE INC: GA, Tiger Capital to Facilitate Store Closures
ALLIED FINANCIAL: Sale of Property Doesn't Have Objections
AMERICAN AGENCIES: 14-Day Extension on CBA Decision Sought

ASOCIACION DE PROPIETARIOS: Seeks OK to Hire Biaggi as Accountant
DORAL FINANCIAL: Settles UMB Claim for $16-Mil.
ESTEBAN BEAUTY: Seeks Approval to Hire Lozada as Legal Counsel
MORGANS HOTEL: Stockholders Elect 9 Directors


T R I N I D A D  &  T O B A G O

REPSOL SA: Wins Block Offshore Barbados
TRINIDAD AND TOBAGO ELECTRICITY: Faces Billions of Debts


V E N E Z U E L A

VENEZUELA: Antigua & Barbuda Consultant Suggests to Cut Ties


X X X X X X X X X

LATAM: Need More Autonomy to Manage Their Own Taxes, IDB Says


                            - - - - -


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A N T I G U A  &  B A R B U D A
===============================


GRAND BAY CASINO: Unexpectedly Shuts Down, Leaves Workers Unpaid
-----------------------------------------------------------------
The Daily Observer reports that the Grand Bay Casino has been
unexpectedly shut down, leaving casino staff without a fortnight's
pay.

An official at the company, who spoke with OBSERVER media on
behalf of the owner, Anthony Velardi, said there is not enough
float to operate the casino, since the investor is unwilling to
devote any more money into the company without first securing his
investments.

The investor reportedly encountered challenges with his management
team, the source said, adding that there were suspicions of theft
with the team from Antigua, according to The Daily Observer.

The report notes that this suspicion, coupled with prior
unforeseen challenges met by the investor, put him in a state of
panic, forcing him to withdraw his money from the casino, the
source said.

Mr. Velardi's action, left casino staff without pay and caused the
building to remain closed, as it could not operate on the float
amount left back, the report notes.

A decision has since been made between Mr. Verladi and the unnamed
investor, to reopen the casino in the summer and remunerate staff,
the report notes.

If operations are resumed as promised, the Grand Bay Casino,
located at Dickenson Bay, will undergo some structural changes, as
the investor tries to keep the business afloat, the report says.

A minimum of US $25,000 float is needed to operate the casino,
notes the report.


===============
B A R B A D O S
===============


BARBADOS: Turning Corner But Challenges Remain, IMF Says
--------------------------------------------------------
Caribbean360.com reports that the International Monetary Fund
(IMF) says the Barbados economy still faces serious challenges
although it appears to have turned the corner.

In a statement issued following a May 9-19 visit for Article IV
Consultations, the Fund said real GDP grew by 0.8 percent last
year buoyed by a surge in tourism arrivals, while employment
increased by two percent, according to Caribbean360.com.

It said inflation is low, reflecting a sharp drop in import
prices, and the financial system is stable with a decline in non-
performing loans, the report notes.

"The current account deficit has narrowed significantly,
reflecting lower oil and other import prices -- despite an
increased volume of oil and intermediate goods imports -- while
exports grew modestly.  Net international reserves fell by US$57
million since the beginning of 2015, reflecting lower foreign
direct investment and debt amortization," the statement said, the
report relays.

Although growth has resumed and short-term prospects are positive,
the Fund said imbalances persist between available resources and
government programs, notes the report.

And while it suggested that favorable external developments have
provided some room for maneuvering, it said the country remains
highly vulnerable and may not realize its potential without deep-
seated reforms to align revenues and expenditures and reduce debt,
the report says.

"Fiscal reforms have yielded less than expected. After significant
consolidation in Financial Year 2014/15, the deficit in Financial
Year 2015/16 remained broadly unchanged, short of government's
objective, due to delayed implementation of June 2015 tax measures
and slow progress with the reform of the state owned enterprises.
Consequently, public sector debt rose to 105.5 percent of GDP from
98 percent at the end of Financial Year 2013/14.  The large cash
requirements of the government are a challenge increasingly met by
the Central Bank," the Washington-based institution said, the
report notes.

The IMF has projected a 2.1 percent increase in growth this year,
which it said reflects higher private and public investment,
mainly in refurbishing and expansion of the tourism stock, the
report discloses.

However, it pointed to de-risking as an area of concern as well as
government financing requirements and possible delays in
government-backed projects, the report relays.

The Fund suggested: "To reverse large increases in debt and place
it on a downward trajectory, the mission recommends fiscal
adjustment of at least 3.5 percent of GDP over the next three
years.  This would be on top of the expected improvement in
performance this year reflecting a full year of the 2015 revenue
measures," notes the report.

It also recommended that government push ahead with measures to
improve public sector efficiency, conduct reforms to increase
labour market flexibility, increase training opportunities and
move forward with a viable and affordable agricultural strategy to
strengthen its links with the tourism sector, the report adds.

As reported in the Troubled Company Reporter-Latin America on
April 5, 2016, Moody's Investors Service downgraded Barbados'
government bond rating and issuer rating to Caa1 and changed the
outlook to stable.


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


BRAZIL: Minister Says "Diagnosis" Of Crisis is Top Priority
-----------------------------------------------------------
EFE News reports that Finance Minister Henrique Meirelles said
that a "diagnosis" of the nation's economic crisis is the "No. 1
challenge" facing acting-President Michel Temer.

"This is a very important moment for Brazil's economy" and, in
that sense, "we'll experience some key moments" that can be
"extremely positive," Mr. Meirelles said in a speech at a forum
organized by Veja magazine in Sao Paulo, according to EFE News.

After taking office as Temer's minister and head of the economic
team, Mr. Meirelles said that a thorough study and understanding
of the economy is the "basic starting point" for straightening out
the country's finances, the report notes.

"We need a diagnosis to identify the source of the problem," Mr.
Meirelles said.

Mr. Meirelles is considered a very important player by Temer, who
took over the presidency last May 12 when President Dilma Rousseff
was suspended from office to face impeachment proceedings for
irregularities in the accounts of her presidency in 2014 and 2015,
the report recalls.

Brazil, whose economy dipped 3.8 percent in 2015 and this year is
set to end with a similar decline, also suffers from high
inflation, which in December reached 10.67 percent, along with
growing unemployment and high interest rates, the report notes.

"It's very important to straighten out inflation, but the focus
now should be on calculating the size of the problem and finding
solutions that contemplate factors like taxes," the report qouted
Mr. Meirelles as saying.

In that regard, the minister recalled that between 1991 and 2015
primary expenditure went from 11 percent to 19 percent of GDP, and
in the 2008-2015 period, revenues grew by 14 percent and
expenditures by 51 percent, the report says.

For that reason, he said, "the golden rule" in such a scenario is
"deficit financing, never again," the report notes.

As for the type of measures to be adopted by the government, Mr.
Meirelles declined to give details because they "are being
studied" and will be announced, the report adds.

However, Mr. Meirelles said, "we have to take measures that are
efficient and that really work, because this isn't a time for
mistakes, it's a time to get it right and I'm in a hurry," notes
the report.

As reported in the Troubled Company Reporter-Latin America on
March 29, 2016, severe contraction that was preceded by several
years of below-trend growth has impaired Brazil's (Ba2 negative)
underlying economic strength, despite the country's large and
diversified economy, says Moody's Investors Service.  The
country's credit rating is also coming under pressure from the
government's high level of mandatory spending.


TRANSMISSORA ALIANCA: S&P Affirms 'BB' CCR; Outlook Remains Neg.
----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' global scale and 'brAA-'
national scale corporate credit ratings on Transmissora Alianca de
Energia Eletrica S.A. (TAESA).  S&P also affirmed its 'brAA-'
long-term issue-level rating on the company's debt.  The outlook
remains negative.

The foreign currency ratings on Brazil limit the ratings on TAESA.
This reflects S&P's view of an appreciable likelihood that the
electric utilities would follow the sovereign in a default
scenario because S&P believes that their regulated status exposes
them to the sovereign's potential credit quality deterioration
(i.e. potential tariff controls, revenue collection, and credit
availability would suffer in such scenario).

S&P withdrew its recovery ratings on the company's rated debt
based on S&P's understanding that TAESA, as a regulated electric
utility, isn't subject to Brazil's insolvency regime if it
defaults, unless after the concession expires, according to the
Law 12,767/2012. Despite our view that a debt restructuring could
overall maximize recoveries for the creditors, this law reduces
the predictability in a default scenario for the regulated
electric utilities.  Issue-level ratings on TAESA remain
unchanged, and S&P now uses its traditional issue rating notching
guidelines.

The ratings on TAESA reflect S&P's view of its satisfactory
business risk profile and adequate liquidity.  S&P also
incorporates its expectation that the company will maintain its
solid credit metrics in the next few years in line with an
intermediate financial risk profile.

S&P's business risk profile assessment on TAESA reflects a proven
and favorable regulatory framework in Brazil that supports a
stable and predictable revenue stream, the company's monopoly
rights to exploit Brazil's large electricity transmission assets
(about 9,803 kilometers long), very low counterparty risk, and
efficient operations.


ULTRAPAR PARTICIPACOES: S&P Affirms 'BB+' CCR; Outlook Negative
---------------------------------------------------------------
S&P Global Ratings Services affirmed its 'BB+' global scale and
'brAA+' national scale corporate credit ratings on Ultrapar
Participacoes S.A.  The outlook remains negative.

The affirmation reflects S&P's expectation that Ultrapar's
performance will remain resilient even amid Brazil's economic
slump in the next two years.  The company's strong cash flow
generation, historically prudent financial policy, solid cash
reserves, and projected low leverage reinforce S&P's expectation
thatUltrapar will continue to post strong credit metrics.  The
affirmation also reflects Ultrapar's substantial share of Brazil's
fuel distribution market--including its well-known brand and
advantageous service station locations--and the dominant position
in other business lines through Ultragaz and Oxiteno.  All these
factors underscore S&P's 'bbb' stand-alone credit profile (SACP)
on the company.

The negative outlook on Ultrapar reflects the negative outlook on
Brazil because S&P defines the maximum rating differential between
both at one notch.  This stems from the company's high exposure to
the domestic economy, sensitivity to economic downturns, and from
the still high interest burden and short-term debt concentration.

A downgrade of Ultrapar is more likely to occur if S&P was to take
the same rating action on.  S&P could revise downward the
company's SACP if liquidity deteriorates amid lower operating
efficiency and more restricted access to debt refinancing.  An
aggressive debt-financed growth strategy that weakens
credit metrics to adjusted debt to EBITDA higher than 3.0x and FFO
to debt of less than 35% on a consistent basis could also prompt a
downward revision of the SACP.

Absent any changes to Ultrapar's SACP, a positive rating action on
Brazil could result in a similar action on the company.  Any
significant decoupling of Ultrapar's business from the Brazilian
economy cycles could also result in a higher number of notches
differentiation from the sovereign's ratings.


VALE SA: Brazil Stocks Extend Weekly Drop as Firm's Shares Tumble
-----------------------------------------------------------------
Ney Hayashi Cruz and Vinicius Andrade at Bloomberg News report
that the Ibovespa extended a weekly drop as mining company Vale SA
tumbled and real-estate companies slumped after a report that the
government may cut the number of units to be built under its
housing program.

Vale was among the biggest contributors to the index's slide on
May 20 amid lower metal prices, according to Bloomberg News.  The
BM&FBovespa Real Estate Index of 14 homebuilders posted its sixth
consecutive decline, led by MRV Engenharia e Participacoes SA, the
Bloomberg News notes.

"There's a lot of pressure coming from Vale, which fell quite a
lot," said Paulo Figueiredo, an economist at asset management firm
FN Capital in Petropolis, Brazil.  "And the construction sector is
being affected by news about the housing program," Mr. Figueiredo
added.

Real-estate shares slumped after O Estado de S.Paulo newspaper
said the government was scrapping a plan to build two million
homes by 2018, an initiative sponsored by Dilma Rousseff, who
stepped down from the presidency earlier this month to wait for a
trial that may result in her impeachment, Bloomberg News relays.
Newly-appointed Cities Minister Bruno Araujo issued a statement
denying the report, saying that social programs are a priority for
Acting President Michel Temer, Bloomberg News says.

The Ibovespa lost 0.8 percent to 49,722.75 at the close of trading
on May 21 in Sao Paulo as 33 of its 59 stocks fell. Vale lost 3.8
percent. MRV retreated 4.5 percent, Bloomberg News relays.  The
benchmark index has dropped 4 percent last week following a global
rout on concern that the Federal Reserve may raise interest rates
as early as next month, Bloomberg News notes.  The gauge is
trading at 11.9 times estimated earnings, it's cheapest since
March 2, Bloomberg News adds.

As reported in the Troubled Company Reporter-Latin America on
March 1, 2016, Moody's America Latina downgraded Vale S.A.'s
ratings to Ba3 from Baa3 in the global scale local currency and to
A3.br from Aa1.br in the national scale rating (NSR) and the
ratings assigned to the senior unsecured notes (Debentures de
Infraestrutura) issued by Vale S.A.


VALID S.A.: Fitch Assigns 'BB-' Issuer Default Ratings
------------------------------------------------------
Fitch Ratings has assigned 'BB-' Foreign and Local Currency Long-
Term Issuer Default Ratings (IDRs) and an 'AA-(bra)' Long-Term
National Scale Rating to Valid Solucoes e Servicos de Seguranca em
Meios de Pagamento e Identificacao S.A. (Valid). The Rating
Outlook is Stable. At the same time, the agency has assigned a
Long-Term National Scale Rating of 'AA-(bra)' to Valid's senior
unsecured debentures in the amount of BRL150 million-BRL200
million, due 2019. Issuance proceeds are for short-term debt
refinancing.

KEY RATING DRIVERS
Fitch said, "Valid's ratings incorporate favorable revenue and
cash flow diversification in terms of geographic footprint,
services and clients. It also considers the company's position as
one of the largest credit card producers in Brazil and as a global
supplier of SIM cards. The analysis also considers the company's
track record of financial discipline supported by adequate
liquidity, elongated debt maturity schedule and low leverage.
Fitch expects net adjusted debt/EBITDAR to remain below 2.5x over
the next three years. We have also factored in positive free cash
flow (FCF) from 2017 on."

Fitch said, "ratings concerns are the potentially disruptive
technologies, such as mobile payments and embedded SIM cards that
could lead to a reduction in revenues. Temporary mismatches in
terms of sales price and cost readjustments are also subject of
monitoring. The moderate FX exposure and material participation of
contracts with public clients in revenues were also factored into
our analysis. Exposure to Brazil's adverse macroeconomic
environment which has pressured consolidated results was also
considered. These risks are somewhat mitigated by Valid's
favorable historical operational performance, aided by long-term
relationships with clients and adequate strategy for incorporating
new technologies in its portfolio."

The ongoing growth in international operations as a result of the
latest acquisitions is also positive for Valid's credit profile.
Fitch expects the company to gradually improve its capital
structure driven by expansion of operating margins and the synergy
gains from the recently acquired businesses.

Diversified Service and Client Portfolio
Valid's credit profile benefits from the diverse range of services
it provides and geographical diversification that partially
diminishes the risks from a downturn in a specific market. The
company's diverse client base is also noted as a positive. As of
the LTM ended March 31, 2016, Valid's top five clients represented
20% of revenues, with the largest client contributing with only
7%.

Valid produces magnetic and chip-based credit cards and prints IDs
and drivers' licenses, as well as other documents. It is also the
sixth largest global producer of SIM cards for mobile devices and
provides digital certification. The company has plants in seven
countries serving clients in several nations, accounting for 53%
of revenues generated in Brazil in first quarter 2016 (1Q16). The
company's business volume is subject to macroeconomic volatility
in services such as credit card production and drivers' license
issuance. The SIM card manufacturing segment carries the risks
associated with regulatory changes in the telecom sector.

Low Leverage to Remain
Fitch estimates Valid's net adjusted leverage to remain below 2.5x
over the next three years as the company develops its operations
and benefits from gains in scale and synergies. As of the LTM
ended March 31, 2016, the ratios of total adjusted debt/EBITDAR
and net adjusted debt/EBITDAR reached 3.0x and 2.4x, respectively.
Net adjusted leverage saw only moderate growth compared to 2.2x in
2015 and 1.8x in 2014, due to pressure on margins as a result of
lower volume in Brazil and non-recurring items related to capacity
adjustments and severance payments.

Positive FCF from 2017 On
Fitch believes Valid will report negative FCF in 2016 and positive
FCF from 2017 on supported by moderate capex and revenue
expansion. The company's robust cash flow from operations (CFFO)
should resume its growth trend starting in 2017, after a moderate
reduction in 2016. As of the LTM ended March 2016, Valid reported
CFFO of BRL175 million, pressured by lower volumes in Brazil and
non-recurring items related to capacity adjustments. Nevertheless,
CFFO was enough to cover capex of BRL111 million and dividends of
BRL62 million, leading to FCF of BRL2 million.

Manageable FX Exposure
Fitch considers Valid's international footprint as a mitigant to
FX exposure on its costs and debt. The company has supported its
international expansion since 2012, which reached 53% of total
revenues generated abroad during the 1Q16. At the same time, 59%
of Valid's total debt and 54% of its costs and expenses were U.S.-
dollar denominated. The international expansion has also helped to
partially offset the macroeconomic deceleration in regions such as
Brazil over the past two to three years. Fitch estimates that a
10% depreciation in the BRL would raise Valid's net leverage by
0.1x.

Disruptive Technologies Risks
Fitch sees new technologies as the main threat to Valid's current
businesses. The company's favorable track record in reshaping its
services to clients' demand and in incorporating new technologies
through acquisitions partially mitigates this risk. Valid's
business profile benefits from its proven track record of
successfully acquiring and integrating a myriad of companies since
2007, which has led to business expansion, increased geographic
footprint, and the addition of services-provision capacity to its
portfolio.

Costs and Revenue Mismatch
Fitch sees the timing mismatch of cost and revenue readjustments
as a negative aspect of Valid's important identification business
segment, which represents around 50% of its EBITDA. This specific
business is labor intensive, with collective-wage adjustments with
unions in Brazil typically at the beginning of the year, while
contracts are adjusted throughout the year. Such features could
pressure EBITDAR margins particularly during times of high cost
inflation. In the LTM ended March 2016, net revenues of BRL1.7
billion and EBITDAR of BRL328 million represented an EBITDAR
margin of 19.1%

KEY ASSUMPTIONS
-- Revenue growth of 18% in 2016 and 9% in 2017 mainly driven by
    the incorporation of two acquisitions (Fundamenture and MSC)
    in 2015;
-- EBITDA margins of 15.5% in 2016 and 16.5% in 2017, pressured
    by the economic slowdown in Brazil and the sale of low value-
    added SIM cards by Fundamenture;
-- No additional acquisitions;
-- Dividend pay-out rates slightly above 50%.

RATING SENSITIVITIES
Future developments that may, individually or collectively, lead
to a negative rating action include:
-- Net adjusted leverage consistently above 3x;
-- Loss of important contracts, leading to a cash flow reduction
    and deterioration of liquidity;
-- Disruptive technologies with faster-than-anticipated adoption,
    forcing Valid to discontinue a segment or service;
-- Cash- to short-term coverage ratio sustaining below 1x.

Future developments that may, individually or collectively, lead
to a positive rating action include:
-- Margin improvements and expansion of hard-currency cash flows
    could trigger a positive rating action conditioned to a
    sustained conservative financial profile.

LIQUIDITY
Fitch believes Valid will maintain an adequate liquidity position
over the next three years. On March 31, 2016, the company reported
a cash position of BRL215 million that covered the BRL173 million
short-term debt at 1.2x, which represented a moderate reduction
compared to the 1.5x reported in both 2015 and 2014. The company's
financial flexibility has benefited from the satisfactory debt
maturity schedule that has historically kept short-term loans
below 25% of total debt, evidencing company's commitment to
liability management. Total adjusted debt was BRL988 million at
the end of 1Q16 and incorporates off-balance-sheet debt of BRL270
million related to the opportunity cost of rental expenses.

FULL LIST OF RATING ACTIONS

Fitch has assigned the following ratings:

-- Foreign Currency Long-Term IDR 'BB-';
-- Local Currency Long-Term IDR 'BB-';
-- National Long Term Rating 'AA-(bra)';
-- BRL200 million unsecured debenture issuance due in June 2019
    'AA-(bra)'.

The Rating Outlook for the corporate ratings is Stable.


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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Free Zones' 161,257 Jobs Reveal Robust Sector
-----------------------------------------------------------------
Dominican Today reports that Dominican Republic's free zones
continue being one of the economy's most robust sectors,
accounting for as many as 161,257 direct jobs in 2015.

The National Free Zone Council's (CNZFE) latest report says there
were 5.2% more jobs last year than the 153,342 in 2014, according
to Dominican Today.

CNZFE Director Luisa Fernandez said the report shows that garments
and textiles continue to create the most direct jobs, with 44,744,
or 27.8% of the total, Dominican Today notes.

Ms. Fernandez said tobacco and derivatives follow, with 25,293
(15.7%); services 22,929 (14.2%); medicine and pharmacists 19,942
(12.4%), and footwear and its components, 18,140 (11.2%), the
report relays.

Ms. Fernandez said the sector's exports topped US$5.5 billion
during the analyzed period, or a relative growth of 4.8% compared
with the same period in 2014, the report notes.

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'.



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J A M A I C A
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DIGICEL GROUP: Tests Huawei's XG-PON in Jamaica
------------------------------------------------
lightwaveonline.com reports that Huawei said it has collaborated
with Digicel Group on a trial of the communications technology
vendor's XG-PON equipment in Jamaica.  The demonstration took
place in Digicel's lab in downtown Kingston and used the
operator's new fiber to the home (FTTH) network, according to
lightwaveonline.com.

The test used Huawei's Multi-Service Single FAN platform.

"This was a very exciting trial, and we were blown away by the
speeds reached and how simple it is to move to these speeds when
the region needs it," said John Suranyi, CEO of Digicel Play
Caribbean and Central America, the report relays.  "This shows how
we can evolve towards multi-gigabit speeds as and when our
customers demand it and not only puts Digicel Jamaica head and
shoulders above all competition, but also places the region
alongside the broadband global power houses such as Singapore and
Korea."

Digicel Group provides communications and entertainment services
in 33 markets in the Caribbean, Central America, and Asia Pacific,
the report relays.  Over the past 15 years, the company says it
has invested more than $5 billion in its infrastructure worldwide,
the report discloses.

"With the direct correlation between broadband penetration and
increased GDP widely accepted, this will help attract inward
direct investment and promote economic growth," Mr. Suranyi
continued, notes lightwaveonline.com.  "To date we have invested
over $100 million in our FTTH fiber program in Jamaica and our
customers are starting to see the real benefits of our
investment."


DIGICEL GROUP: Fitch Affirms 'B' Issuer Default Rating
------------------------------------------------------
Fitch Ratings has affirmed the ratings of Digicel Group Limited
(DGL) and its subsidiaries Digicel Limited (DL) and Digicel
International Finance Limited (DIFL), collectively referred to as
'Digicel' as follows.

DGL
-- Long-Term Issuer Default Rating (IDR) at 'B'; Stable Outlook;
-- $US 2.0 billion 8.25% senior subordinated notes due 2020 at
    'B-/RR5';
-- $US 1 billion 7.125% senior unsecured notes due 2022 at
    'B-/RR5'.

DL
-- Long-Term IDR at 'B'; Stable Outlook;
-- $US 250 million 7% senior notes due 2020 at 'B/RR4';
-- $US 1.3 billion 6% senior notes due 2021 at 'B/RR4';
-- $US 925 million 6.75% senior notes due 2023 at 'B/RR4';

DIFL
-- Long-Term IDR at 'B'; Stable Outlook;
-- Senior secured credit facility at 'B+/RR3'.

The Rating Outlook is Stable.

KEY RATING DRIVERS

Digicel's ratings reflect its well-diversified geographical
operations with leading market positions, strong network quality,
and brand recognition, which have and will continue to enable
stable performance and cash flow generation. The ratings are
tempered by the company's historically aggressive shareholder
returns, high leverage, ongoing FX volatility in some of its key
markets, and business concentration in countries with low ratings.

Under Fitch's approach to rating entities within a corporate group
structure, the IDRs of DGL and its subsidiaries, DL and DIFL, are
equal, based on a consolidated group credit profile given the
strong strategic and financial linkages.

Different rating levels for each entity's debt instruments reflect
varying recovery prospects given default according to seniority of
the claims. Fitch believes that DIFL's secured credit facility has
good recovery prospects under default, reflected in its 'RR3'
Recovery Rating, as it is secured by assets of operating
subsidiaries. DL's senior unsecured notes are legally and
structurally subordinated to DIFL's credit facility, thus it has a
lower Recovery Rating of 'RR4', which indicates average recovery
prospects. DGL's senior notes are the most junior in rankings as
they are subordinated to DL's senior notes, resulting in below-
average recovery prospects. That has resulted in the assignment of
a 'RR5' Recovery Rating.

Stable Performance Beset by FX

Digicel has generated stable operating results on a local-currency
(LC) basis in the first nine months of fiscal 2016 (9MFY16), ended
on March 31, 2016. Fitch expects this trend to continue over the
medium term. During the period, the company's constant-currency-
based service revenue posted stable growth of 4% underpinned by
increasing data revenue supporting average revenue per user
(ARPU), and strong growth in 'Other Markets' and non-mobile
segments. Its high EBITDA margin, measured by EBITDA to total
revenues, remained stable at 41.8%, which compares to 41.4% a year
ago, backed by cost control efforts including subsidies despite
competitive pressures. (Fitch's EBITDA calculation includes staff
costs related to share options.) Subscriber base expansion has
remained slow but stable, with the total subscriber base reaching
13.9 million as of December 2015 from 13.8 million a year ago.

Negatively, this growth has been largely diluted by ongoing FX
volatility in some of its key markets, mainly Haiti, Papua New
Guinea, and French West Indies. As a result, the reported service
revenues in $US during the 9MFY16 contracted by 2% compared to a
year ago. Although the negative FX movement impact in each of the
company's operational geographic areas is immaterial given the
close revenue-cost currency match, continued local-currency
depreciation would weaken the company's ability to service debt
obligation, which is mostly denominated in $US in the absence of
any FX hedging.

Negative FCF to Reverse

Fitch forecasts Digicel's FCF generation to turn positive from
FY17 backed by lower capex in the absence of dividend payments.
Digicel's FCF has remained in negative territory in recent years
mainly due to high capex for fiber network investments. The
company's capex soared to $US552 million and $US649 million in
FY14 and FY15, respectively, from just $US361 million in FY13,
with the capital intensity ratio, measured by capex-to-sales,
rising to above 20% compared to just 13% during the same period.
Capex remained high at $US469 million during the 9MFY16, with the
capital intensity ratio hovering at around 22%, resulting in
continued negative FCF given CFFO of just $US317 million.

This trend is likely to reverse from FY17 and onwards as major
investments for fiber is mostly completed in main markets. As
such, Fitch forecasts Digicel's capex to decline to around $US450
million in FY17 and further down to below $US400 million in FY18,
which is more in line with the previous level before major fiber
deployment. In addition, Fitch believes that the company will
continue to refrain from any sizable shareholder distribution in
the short to medium term to shore up its cash position. This will
enable the company to return to positive FCF generation and help
support modest deleveraging over the medium term.

High Leverage

Digicel's leverage is high, which is incorporated in its 'B'
rating level. The company's leverage has been gradually trending
up driven mainly by a combination of high capex and dividends
while its EBITDA growth has been relatively flat, in part due to
negative FX impact. Digicel's consolidated gross debt amounted to
$US6.4 billion as of Dec. 31, 2015, which unfavorably compares to
$US4.9 billion at end-FY12, while EBITDAR remained at around
$US1.2 billion during those years, resulting in high gross and net
leverage of 5.7x and 5.5x, respectively. Positively, Fitch
forecasts these ratios to gradually fall, backed by positive FCF
generation from FY17.

Positive Revenue Diversification

Ongoing revenue diversification away from traditional mobile voice
is positive as the revenue proportion of mobile voice fell to 56%
during 9MFY16 from 64% a year ago. The contribution from mobile
data should continue to steadily increase over the medium term,
mitigating negative pressures on the voice ARPU, which has
suffered from competitive pressures and reduced mobile termination
rates in some markets. During 9MFY16, data revenues grew by 14%
from a year ago on a local currency basis, accounting for 35% of
mobile service revenues, driven by a steady increase in smartphone
penetration to 41% from 31% a year ago.

In addition, Digicel's recent strategic focus on cable and
broadband should enable further revenue diversification as it
continues to connect more homes on its established networks. The
company's total cable RGUs have increased by 127% during the
period to 152,000 from 67,000 with the segmental revenues
increasing by 200% to $US57 million from $US19 million. Despite
marginal EBITDA contribution in the short to medium term, cable
and broadband should be a meaningful cash generator in the long
term along with business solutions and diaspora segments, of which
revenues grew by 25% and 16% during the 9MFY16 compared to a year
ago.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for Digicel include
-- Low-to-mid single-digit annual revenue growth in FY2017 and
    FY2018;
-- EBITDA margin to fall towards 40% over the medium- to long-
    term;
-- Positive FCF generation from FY2017 with reduced capex;
-- No dividend payments over the medium term;
-- Net leverage to fall to below 5.5x over the medium term.

RATING SENSITIVITIES
A negative rating action could be considered if consolidated
leverage at DGL increases above 6.0x on a sustained basis, due to
a combination of competitive pressures, negative FX movement, high
capex, sizable acquisitions, and aggressive shareholder
distributions. In addition, Digicel's inability to proactively
execute refinancing of sizeable bullet maturities in the medium-
to long-term could also pressure its credit quality.

Conversely, a positive rating action could be considered in the
case of a sustained reduction in consolidated gross leverage to
4.0x or below, and material improvement in FCF generation with
conservative debt maturities management.

LIQUIDITY

Digicel's short-term liquidity profile is adequate as the company
does not face any sizable debt maturity until FY18, when $US210
million of DIFL loan is amortized, while it held readily-
available-cash balance of $US291 million as of December 31, 2015.
However, the company's current cash balance is materially lower
than its historical levels of at least $US500 million or higher
while its debt maturity materially increases to $US629 million in
FY19 as the remainder of DIFL facility becomes due. Digicel's
failure to return to meaningful FCF generation or successful
extension/refinancing of DIFL facility could pressure the ratings
over the medium term.


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


BANCO INTERNACIONAL: Moody's Puts ba2 BCA on Review on Downgrade
----------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
ba2 baseline credit assessment (BCA) of Banco Internacional de
Costa Rica (BICSA).  The bank's Ba2/Not Prime long and short-term
foreign currency deposit ratings, as well as its adjusted BCA and
counterparty risk assessments are unaffected by this announcement.

This assessment was placed on review for downgrade:

Banco Internacional de Costa Rica:
  Baseline Credit Assessment of ba2

RATIONALE FOR THE REVIEW FOR DOWNGRADE ON THE BASELINE CREDIT
ASSESSMENT

The review for downgrade on BICSA's ba2 BCA follows a
deterioration in the bank's liquidity amid inherently high funding
risks.  Liquid assets have declined steadily to just 12.5% of
total assets as of March 2016, from 21.5% a year earlier, as the
bank reduced its holdings of deposits at banks to chiefly grow its
loan book.  At the same time, the quality of liquid assets has
also declined, as cash and bank deposits dropped to just 44% of
liquid assets from 73% during the same period; total corporate
bonds now accounts for near 40% of the overall investment book.

Moody's bank analyst Georges Hatcherian added that "the lower
liquidity cushion leaves the bank more exposed to rollover risk
given its largely short-term and wholesale funding structure,
during a time of heightened market volatility".  Hatcherian added
that "significant deposit concentration adds to potential funding
volatility, with the largest 20 depositors comprising almost half
of total deposits".

In addition, profitability will continue to be pressured by
narrowing net interest margins (NIM), coupled with limited room
for efficiency gains in light of the bank's increased investment
in information technology systems.  BICSA's NIM will continue to
be affected by competition and by higher funding costs as dollar
rates increase in line with the bank's short term funding.  Credit
costs are also likely to increase due to BICSA's growth in the
decelerating economies of South America, besides the bank's
traditional focus on Costa Rica and Panama.

The review on the BCA will focus on BICSA's funding and liquidity
plans for 2016 and 2017.  Moody's will also assess the liquidity
of the bank's investment portfolio in a scenario of stress.

             WHAT COULD CAUSE THE RATINGS TO MOVE DOWN

The bank's BCA will likely be lowered if the level of liquidity
does not appear likely to improve, or if the review of the
investment portfolio indicates that large portions of it are at
risk of becoming illiquid in a stress scenario.  However, the BCA
could be confirmed if the bank presents a credible plan to restore
liquidity to more robust levels and the review of the investment
portfolio concludes that it is likely to remain highly liquid even
in a stress scenario.

Even if the BCA is lowered to ba3, BICSA's Ba2 foreign currency
deposit rating will not be affected given the high likelihood that
Banco de Costa Rica (BCR), BICSA's controlling parent, will
provide support to BICSA if necessary.  However, BICSA's outlook
would be revised to negative in such a scenario, in line with
BCR's negative outlook.

The last rating action on Banco Internacional de Costa Rica was on
June 3, 2015, when Moody's downgraded the bank's deposit rating to
Ba2 from Ba1, while it lowered its adjusted BCA to ba2 from ba1.

Based in Panama City, Panama, Banco Internacional de Costa Rica is
owned by Banco de Costa Rica and Banco Nacional de Costa Rica,
with a 51% and 49% of stake, respectively.  The bank reported
total consolidated assets of about $1.9 billion and shareholders'
equity of $208 million as of March 2016.


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


AEROPOSTALE INC: Has Interim OK to Tap $100-Mil. in DIP Loans
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorizes Aeropostale, Inc., to borrow on an interim basis up to
$55,000,000 at any time outstanding of the revolving credit loans.

The Debtors are also authorized to obtain postpetition financing
of up to $160,000,000, comprising of a $75,000,000 term loan and a
$85,000,000 revolving credit facility.

Pursuant to the Interim DIP Order, the Debtors are allowed to use
up to $100,000,000 of the DIP Facility -- inclusive of an
aggregate amount of approximately $78,000,000 to repay all
outstanding obligations under the Prepetition ABL Credit Agreement
on an interim basis -- consisting of up to $55,000,000 at any time
outstanding of "Revolving Credit Loans," and up to $45,000,000 of
"Term Loans" for the interim period.

Use of Proceeds of the DIP Facility is solely for the purposes set
forth in the DIP Financing Documents including, inter alia, to pay
or fund:

   (a) Certain costs, fees and expenses related to the Chapter 11
Cases.

   (b) The repayment of the Prepetition ABL Obligations.

   (c) The cash collateralization of certain letters of credit as
approved by the DIP Agent and the Required Lenders.

   (d) The cash collateralization of certain outstanding letters
of
credit issued pursuant to the Prepetition ABL Credit Agreement on
the terms set forth in the DIP Credit Agreement.

   (e) An escrow account for payments on account of any contingent
indemnity obligations under the Prepetition ABL Credit Documents,
in an amount not to exceed $350,000.

   (f) The cash collateralization of certain cash management
obligations owed to Bank of America, N.A., under the Prepetition
ABL Credit Documents in an amount not to exceed $250,000.

   (g) The cash collateralization of certain cash management
obligations owed to Wells Fargo Bank, N.A., under the Prepetition
ABL Credit Documents in an amount not to exceed $10,000.

   (h) the cash collateralization of certain bank product
obligations related to credit cards under the Prepetition ABL
Credit Documents in the amount set forth in the DIP Credit
Agreement

The Final Hearing to consider entry of the Final Order and final
approval of the DIP Facility will be held on June 2, 2016.

A full-text copy of the Interim DIP Order dated May 06, 2016, with
Budget is available at https://is.gd/5hazA4

                      About Aeropostale, Inc.

Aeropostale, Inc. is a specialty retailer of casual apparel and
accessories, principally serving young women and men through its
Aeropostale(R) and Aeropostale Factory(TM) stores and website and
4 to 12 year-olds through its P.S. from Aeropostale stores and
website.  The Company provides customers with a focused selection
of high quality fashion and fashion basic merchandise at
compelling values in an exciting and customer friendly store
environment.

Aeropostale maintains control over its proprietary brands by
designing, sourcing, marketing and selling all of its own
merchandise.  As of May 1, 2016 the Company operated 739
Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale
stores in Canada and 25 P.S. from Aeropostale(R) stores in 12
states.  In addition, pursuant to various licensing agreements,
the Company's licensees currently operate 322 Aeropostale(R) and
P.S. from Aeropostale(R) locations in the Middle East, Asia,
Europe, and Latin America.  Since November 2012, Aeropostale, Inc.
has operated GoJane.com, an online women's fashion footwear and
apparel retailer.

Aeropostale, Inc. and 10 of its affiliates each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Lead Case No. 16-11275) on May 4, 2016.  The petitions were signed
by Marc G. Schuback as senior vice president, general counsel and
secretary.

The Debtors listed total assets of $354.38 million and total debts
of $390.02 million as of Jan. 30, 2016.

The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI
Consulting, Inc. as restructuring advisor; Stifel, Nicolaus &
Company, Inc. and Miller Buckfire & Company LLC as investment
bankers; RCS Real Estate Advisors as real estate advisors;  Prime
Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as
Canadian counsel; and Togut, Segal & Segal LLP as conflicts
counsel.

Judge Sean H. Lane is assigned to the cases.


AEROPOSTALE INC: Shareholder Eyes Claims Against Lender Sycamore
----------------------------------------------------------------
Peg Brickley, writing for Daily Bankruptcy Review, reported that
Aeropostale Inc. shareholder Aria Partners GP says claims against
lender Sycamore Partners could be the best shot backers of the
retailer have to make good their losses.

According to the report, Sycamore and Aeropostale have been
trading accusations over who is to blame for Aeropostale's
bankruptcy, a dispute that has dominated the chapter 11 case that
began May 4.

Swamped with hundreds of millions of dollars in debt, Aeropostale
has said it would trim down and survive chapter 11 bankruptcy,
despite the market forces arrayed against it, the report related.
Mall traffic is down, competition from faster fast-fashion rivals
like H&M is up, and Aeropostale is struggling to pay store lease
costs that run about $200 million annually, the report further
related.

If a turnaround is out of the question, Aeropostale hopes to find
a buyer for the apparel chain that, as of the end of January,
numbered 811 stores, the report noted.  More than 150 of those
outlets are slated for closure and more may follow, the report
further noted.

Creditors and shareholders are watching the bankruptcy closely,
hoping the company holds value despite the pressures of operating
in bankruptcy, the report said.  Now a penny stock traded on the
over-the-counter market, Aeropostale shares sold for more than $2
per share a year ago, the report added.

                     About Aeropostale, Inc.

Aeropostale, Inc. is a specialty retailer of casual apparel and
accessories, principally serving young women and men through its
Aeropostale(R) and Aeropostale Factory(TM) stores and website and
4 to 12 year-olds through its P.S. from Aeropostale stores and
website.  The Company provides customers with a focused selection
of high quality fashion and fashion basic merchandise at
compelling values in an exciting and customer friendly store
environment.

Aeropostale maintains control over its proprietary brands by
designing, sourcing, marketing and selling all of its own
merchandise.  As of May 1, 2016 the Company operated 739
Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale
stores in Canada and 25 P.S. from Aeropostale(R) stores in 12
states.  In addition, pursuant to various licensing agreements,
the Company's licensees currently operate 322 Aeropostale(R) and
P.S. from Aeropostale(R) locations in the Middle East, Asia,
Europe, and Latin America.  Since November 2012, Aeropostale, Inc.
has operated GoJane.com, an online women's fashion footwear and
apparel retailer.

Aeropostale, Inc. and 10 of its affiliates each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Lead Case No. 16-11275) on May 4, 2016.  The petitions were signed
by Marc G. Schuback as senior vice president, general counsel and
secretary.

The Debtors listed total assets of $354.38 million and total debts
of $390.02 million as of Jan. 30, 2016.

The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI
Consulting, Inc. as restructuring advisor; Stifel, Nicolaus &
Company, Inc. and Miller Buckfire & Company LLC as investment
bankers; RCS Real Estate Advisors as real estate advisors;  Prime
Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as
Canadian counsel; and Togut, Segal & Segal LLP as conflicts
counsel.

Judge Sean H. Lane is assigned to the cases.


AEROPOSTALE INC: GA, Tiger Capital to Facilitate Store Closures
---------------------------------------------------------------
A joint venture between Great American Group (GA) and Tiger
Capital Group on May 12 disclosed that it has partnered with
Aeropostale, Inc., a mall-based specialty retailer of casual
apparel for young women and men, to facilitate the orderly exit of
113 of its stores and factory outlets across the U.S.  These are
the same closures announced on May 4, 2016, in conjunction with
Aeropostale's voluntary Chapter 11 filings.

As previously disclosed, sales at the 113 closing locations began
on May 7, 2016 and will last only until the respective stores'
merchandise and fixtures have been sold.  A list of the closing
Aeropostale locations in the U.S. is available at
https://brileyfin.leadpages.co/aeropostale-stores/
It continues to be business as usual at all other Aeropostale
locations.

Great American Group is a provider of advisory and valuation
services, asset disposition and auction solutions, and a
subsidiary of B. Riley Financial, Inc.

Tiger Capital Group provides comprehensive valuations, disposition
services, capital infusions, and operational expertise to
companies in times of growth, distress or transition.

"Our deep history of working with specialty apparel retailers such
as Aeropostale has given us the experience to quickly and
efficiently exit these locations, and assist Aeropostale in
optimizing its store footprint," said Scott Carpenter, President
of GA's Retail Solutions division.

"This is a rare opportunity for customers to take advantage of
significant savings on some of their favorite apparel and
accessories," stated Michael McGrail, Chief Operating Officer of
Tiger Capital Group.  "Following this sale process, Aeropostale
shoppers will still find their favorite fashions at over 600
ongoing Aeropostale stores nationwide and at Aeropostale.com."

                      About Aeropostale, Inc.

Aeropostale, Inc. is a specialty retailer of casual apparel and
accessories, principally serving young women and men through its
Aeropostale(R) and Aeropostale Factory(TM) stores and website and
4 to 12 year-olds through its P.S. from Aeropostale stores and
website.  The Company provides customers with a focused selection
of high quality fashion and fashion basic merchandise at
compelling values in an exciting and customer friendly store
environment.

Aeropostale maintains control over its proprietary brands by
designing, sourcing, marketing and selling all of its own
merchandise.  As of May 1, 2016 the Company operated 739
Aeropostale(R) stores in 50 states and Puerto Rico, 41 Aeropostale
stores in Canada and 25 P.S. from Aeropostale(R) stores in 12
states.  In addition, pursuant to various licensing agreements,
the Company's licensees currently operate 322 Aeropostale(R) and
P.S. from Aeropostale(R) locations in the Middle East, Asia,
Europe, and Latin America.  Since November 2012, Aeropostale, Inc.
has operated GoJane.com, an online women's fashion footwear and
apparel retailer.

Aeropostale, Inc. and 10 of its affiliates each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Lead Case No. 16-11275) on May 4, 2016.  The petitions were signed
by Marc G. Schuback as senior vice president, general counsel and
secretary.

The Debtors listed total assets of $354.38 million and total debts
of $390.02 million as of Jan. 30, 2016.

The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI
Consulting, Inc. as restructuring advisor; Stifel, Nicolaus &
Company, Inc. and Miller Buckfire & Company LLC as investment
bankers; RCS Real Estate Advisors as real estate advisors;  Prime
Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as
Canadian counsel; and Togut, Segal & Segal LLP as conflicts
counsel.

Judge Sean H. Lane is assigned to the cases.


ALLIED FINANCIAL: Sale of Property Doesn't Have Objections
----------------------------------------------------------
Allied Financial, Inc., asks the U.S. Bankruptcy Court for the
District of Puerto Rico to approve its motion to sell property as
unopposed.

The Debtor relates that it had served a copy of its Motion
Requesting Order for Sale of Property ("Motion for Sale") to all
creditors and parties in interest, including CRIM.   The Court
gave CRIM 10 days to file an objection, and that no objection has
been filed.

Allied Financial, Inc., is represented by:

          Carmen D. Conde Torres, Esq.
          C. CONDE & ASSOC.
          San Jose Street #254, 5th Floor
          San Juan, PR 00901-1253
          Telephone: (787)729-2900
          Facsimile: (787)729-2203
          E-mail: condecarmen@condelaw.com

                      About Allied Financial

Allied Financial, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. D.P.R. Case No. 16-00180) on Jan. 15, 2016.  The petition
was signed by Rafael Portela, president of the Board of Directors.

The Debtor disclosed total assets of $10.3 million and total debts
of $9.14 million.  C. Conde & Assoc. represents the Debtor as
counsel.  Mildred Caban Flores has been assigned the case.


AMERICAN AGENCIES: 14-Day Extension on CBA Decision Sought
----------------------------------------------------------
American Agencies Co., Inc. and New Steel, Inc. ask the U.S.
Bankruptcy Court for the District of Puerto Rico to extend their
time to assume or reject their collective bargaining agreement
with United Steel Workers, for 14 days.

The Debtors aver that they are still negotiating the terms for the
termination of the collective bargaining agreement and that
additional time is needed in order for the parties to seek an
amicable resolution.

American Agencies Co. and New Steel are represented by:

          Carmen D. Conde Torres, Esq.
          Luisa S. Valle Castro, Esq.
          C. CONDE & ASSOC.
          San Jose Street #254, 5th Floor
          San Juan, PR 00901-1253
          Telephone: (787)729-2900
          Facsimile: (787)729-2203
          E-mail: condecarmen@condelaw.com

                    About American Agencies Co.

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.


ASOCIACION DE PROPIETARIOS: Seeks OK to Hire Biaggi as Accountant
-----------------------------------------------------------------
Asociacion De Propietarios Condominio Radio Centro seeks approval
from the U.S. Bankruptcy Court in Puerto Rico to hire Asdrubal
Delgado Biaggi as its accountant.

The Debtor tapped Mr. Biaggi to:

     (1) assist the Debtor in preparing its monthly reports of
         operation;

     (2) prepare financial statements;

     (3) assist the Debtor in preparing the cash flow projections

         needed for the disclosure statement;

     (4) assist the Debtor in financial accounting in connection
         with the administration of its estate;

     (5) assist the Debtor in the preparation and filing of
         federal, state and municipal tax returns.

Mr. Biaggi will receive $50 per hour and will receive
reimbursement for work-related expenses.

In a court filing, Mr. Biaggi disclosed that he does not hold or
represent any interest adverse to the Debtor's estate.

Mr. Biaggi can be reached through:

     Asdrubal Delgado Biaggi
     3062 Monaco Street
     Cabo Rojo, PR 00623
     Cel: 787-519-1963
     Fax: 787-986-7439
     E-mail: vipblock@hotmail.com

The Debtor can be reached through:

     Gloria Justiniano Irizarry, Esq.
     Justiniano's Law Office
     Ensanche Martinez
     Calle A. Ramirez Silva #8
     Mayaguez, PR 00680-4714
     Email: justinianolaw@gmail.com

               About Asociacion De Propietarios

Asociacion De Propietarios Condominio Radio Centro sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R.
Case No. 16-03291) on April 27, 2016.  The Debtor is represented
by Gloria Justiniano Irizarry, Esq., at Justiniano's Law Office.


DORAL FINANCIAL: Settles UMB Claim for $16-Mil.
-----------------------------------------------
Doral Financial Corp. and the Official Committee of Unsecured
Creditors jointly ask the U.S. Bankruptcy Court for the Southern
District of New York to approve a settlement agreement with UMB
Bank, N.A., in its capacity as indenture trustee.

The Settlement Agreement is the result of a good faith and
arm's-length discussion among the parties and provides for the
resolution of the parties' disputes regarding the amount of the
Claim and UMB's entitlement to prepayment or liquidated damages,
interest, fees, and other expenses.

The Settlement Agreement provides that UMB will have an allowed
claim against the Debtor of $16,000,000 and that the Debtor and
UMB will provide mutual releases.

The Committee and the Debtor believe that the requirements of Rule
9019 are satisfied because the Settlement Agreement, including the
mutual releases therein, are fair, equitable, and reasonable given
the issues involved and the potential burden to the estate
deriving from litigation.

The Debtor's and the Committee's professionals worked together to
assess the Debtor's rights and obligations with respect to the
Claim and the Loan Guaranty. Based on this analysis, the Debtor
and the Committee believe that the benefits to be received in an
immediate settlement via the Settlement Agreement far outweigh the
complexities, uncertainties, and costs of litigating the Claim
with UMB.

And while the Settlement Agreement contemplates the release of the
former and current officers or directors of the Debtor by UMB,
thereby eliminating the risk of indemnification or contribution
claims by such parties against the estate if UMB were to bring
claims against such parties, the Settlement Agreement does not
contemplate any release of the officers or directors by the
Debtor, the estate, or the Committee.

Doral Financial Corp. is represented by:

          Mark I. Bane, Esq.
          ROPES & GRAY LLP
          1211 Avenue of the Americas
          New York, NY 10036-8704
          Telephone: (212) 596-9000
          Facsimile:  (212) 596-9090
          Email: mark.bane@ropesgray.com

             -- and --

          James A. Wright III, Esq.
          Prudential Tower
          800 Boylston Street
          Boston, MA 02199-3600
          Telephone: (617) 951-7000
          Facsimile: (617) 951-7050
          Email: james.wright@ropesgray.com

Official Committee of Unsecured Creditors is represented by:

          Brian D. Pfeiffer
          SCHULTE ROTH & ZABEL LLP
          Taejin Kim
          919 Third Avenue
          New York, NY 10022
          Telephone: (212) 756-2000
          Facsimile: (212) 593-5955
          Email: brian.pfeiffer@srz.com
                 tae.kim@srz.com

                About Doral Financial Corp.

Doral Financial Corp. (the "DFC") 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. The company has three wholly-owned subsidiaries:
Doral Properties, Inc., Doral Insurance Agency, LLC, and 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. It estimated $50 million to $100 million
in assets and $100 million to $500 million in debt as of the
bankruptcy filing.


ESTEBAN BEAUTY: Seeks Approval to Hire Lozada as Legal Counsel
--------------------------------------------------------------
Esteban Beauty Distributor Corp. seeks approval from the U.S.
Bankruptcy Court in Puerto Rico to hire Lozada Law & Associates,
LLC as its legal counsel.

Maria Soledad Lozada-Figueroa, Esq., the primary attorney tasked
to provide the services, will receive $200 per hour and will be
reimbursed by the Debtor for work-related expenses.

Other Lozada professionals will also provide services to the
Debtor as needed.  The hourly rate for partners or associates is
$150 while the hourly rate for paralegals is $75.

In a court filing, Ms. Figueroa disclosed that her firm is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.

The firm can be reached through:

     Mar-a Soledad Lozada-Figueroa
     Lozada Law & Associates, LLC
     PO Box 9023888
     San Juan, P.R. 00902-3888
     Phone: (787) 200-0673
     Cel: (787) 533-1400
     Email: msl@lozadalaw.com

                      About Esteban Beauty

Esteban Beauty Distributor Corp. sought protection under Chapter
11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the
District of Puerto Rico (Case No. 16-03796) on May 11, 2016.


MORGANS HOTEL: Stockholders Elect 9 Directors
---------------------------------------------
Morgans Hotel Group Co. held its 2016 annual meeting of
stockholders on May 12, 2016, at which the stockholders:

  (a) elected Andrew Broad, Kenneth E. Cruse, John J. Dougherty,
      Jason T. Kalisman, Howard M. Lorber, Bradford B. Nugent,
      Michael E. Olshan, Michelle S. Russo and Adam Stein as
      directors for one-year terms expiring when their successors
      are duly elected and qualified;

  (b) ratified the appointment of BDO USA, LLP as the Company's
      independent registered public accounting firm for the fiscal

      year ending Dec. 31, 2016; and

  (c) approved, by a non-binding, advisory vote, the compensation
      paid to the Company's named executive officers.

                   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 net income attributable to common
stockholders of $5.45 million on $220 million of total revenues
for the year ended Dec. 31, 2015, compared to a net loss
attributable to common stockholders of $66.6 million on $234
million of total revenues for the year ended Dec. 31, 2014.

As of March 31, 2016, Morgans Hotel had $518.02 million in total
assets, $736.75 million in total liabilities and a total deficit
of $218.73 million.


================================
T R I N I D A D  &  T O B A G O
================================


REPSOL SA: Wins Block Offshore Barbados
---------------------------------------
Trinidad Express reports that a second multinational oil and gas
producer with major operations in Trinidad and Tobago has secured
an offshore block for exploration and production in neighbouring
Barbados.

Out of Barbados' 2015 offshore licensing bid round, Spain's Repsol
SA emerged winner of the Black Belly Offshore Block, according to
a May 10 Barbados government statement, reports Trinidad Express.
Australia's BHP Billiton was awarded two offshore blocks, Carlisle
Bay and Bimshire in April last year, the report notes.

The Black Belly block, near the island's maritime border with St
Vincent and the Grenadines and St Lucia, covers an area of 2,479
square kilometres (sq km) off Barbados' northwest coast, the
report relays.

Prime Minister Freundel Stuart said the award of the Black Belly
Offshore Block to Repsol SA, represents "another bold step'" in
Barbados' journey towards realising its offshore petroleum
potential, the report discloses.

As reported in the Troubled Company Reporter-Europe on May 3,
2016, Egan-Jones Ratings Agency downgraded the local currency and
foreign currency senior unsecured ratings on debt issued by
Repsol SA to B+ from BB- on April 29, 2016.



TRINIDAD AND TOBAGO ELECTRICITY: Faces Billions of Debts
--------------------------------------------------------
Trinidad Express reports that Trinidad and Tobago Electricity
Commission (T&TEC), the sole power distribution company in the
country, has been mired in debt with no way of extricating itself
except by Government handouts.

Permanent Secretary in the Ministry of Public Utilities, Vishnu
Dhanpaul, told Parliament's Public Administration and
Appropriations Committee (PAAC) that T&TEC owed some TT$8 billion
to, among others, Government (TT$2.5 billion in "advances"), the
National Gas Company (NGC--$2.4 billion for supply of natural gas)
and TT$1.6 billion to Trinidad Generation Unlimited (TGU-for power
purchased under the take-or-pay agreement), according to Trinidad
Express.


=================
V E N E Z U E L A
=================


VENEZUELA: Antigua & Barbuda Consultant Suggests to Cut Ties
------------------------------------------------------------
The Daily Observer reports that a management and development
consultant has suggested that it is time for the region to sever
ties with Venezuela.

Melanius Alphonse said the current political unrest in Venezuela
will have dire economic consequences on the chain of islands that
make up the Caribbean, according to The Daily Observer.

"If is better if we can cut our losses right now," the report
quoted Mr. Alphonse as saying.

According to the social commentator, the social, political and
economic demise of Venezuela has already happened and the
Caribbean could "find itself in a lot of trouble" if it does not
cut loose now, the report notes.

Over the past few years, Venezuela has stretched its hands out to
provide various forms of assistance to many countries in the
region, the report relays.

Antigua & Barbuda is tied to that country through the Petro Caribe
Agreement, as well as other pledges to help the twin island state
with housing and other infrastructure, the report says.

Venezuela has also invested in the West Indies Oil Company Limited
(WIOC), the report notes.

Mr. Alphonse also noted unless the prices of oil increases over
the next year or so funding for many of these social program in
the region will dry up, the report relays.

"Where is the money going to come from? Venezuela is broke.  They
hardly have the money for food, How are they going to give us
2,000 houses in five years? How are they going to pay for our
oil," Mr. Alphonse queried, adds the report.

As reported in the Troubled Company Reporter-Latin America on
March 8, 2016, Moody's Investors Service has affirmed Venezuela's
Caa3 issuer and government bond ratings and changed the outlook to
negative from stable.  The government's senior secured and senior
unsecured government bond ratings were affirmed at Caa3, as were
the senior unsecured shelf and MTN program ratings at (P)Caa3.


=================
X X X X X X X X X
=================


LATAM: Need More Autonomy to Manage Their Own Taxes, IDB Says
-------------------------------------------------------------
Giving state and city governments in Latin America more autonomy
to manage their own sources of tax revenue could promote greater
local development and efficiency, according to a new study by the
Inter-American Development Bank (IDB).

The study, Decentralizing Revenue in Latin America: Why and How,
shows that Latin American countries lag other emerging economies
and members of the Organization for Economic Co-operation and
Development (OECD) in terms of tax revenue decentralization.

Local revenues cover only about 30 percent of total spending among
sub-national governments in Latin America, compared with about 60
percent for OECD countries and 75 percent for emerging economies
in Asia.

Currently, Latin American sub-national governments rely heavily on
central government transfers to finance their spending. Such
transfers can vary widely and unpredictably, undermining local
authorities' ability to prepare more stable and realistic budgets.

"By giving local authorities more autonomy to manage their tax
revenues, countries could increase the availability of resources
to finance investments that actually improve people's lives," said
Vicente Fretes Cibils, IDB Division Chief of Fiscal and Municipal
Management.

The study analyzed seven countries -- Argentina, Bolivia, Brazil,
Colombia, Mexico, Peru and Venezuela -- finding that several
factors hold back fiscal decentralization. Among the main ones are
a lack of local institutional capacity to manage taxes properly
and political constraints that prompt central governments to
exercise greater control over local authorities.

"Central governments are often the biggest obstacle to
decentralization because they fear they will lose fiscal control,
political bargaining power and bureaucratic influence," Fretes
Cibils said. "While this may be true in many situations, it is
critical for countries to recognize the positive impact revenue
decentralization can have on the quality of public goods and
services."

According to Fretes Cibils, "greater fiscal decentralization would
allow state and municipal governments to better allocate resources
to meet local needs while making governors and mayors more
accountable for their spending because taxpayers can more easily
track what they are doing".

The study advises countries to consider a range of policies to
increase the ability of local governments to manage and generate
their own sources of tax revenue and reduce their reliance on
central government transfers:

Allow sub-national governments to implement surcharges to already
existing national taxes, such as on value added or retail sales
taxes.

Support initiatives to help local governments to increase property
tax revenue.

Create incentives for sub-national governments to seek local
sources of fiscal revenue, while weighing the political impact of
imposing heavier tax burdens.

Implement reforms to improve transfers to ensure they align with
local needs and the capacity by sub-national governments to raise
their own taxes.

Implement policy and administrative reforms to give sub-national
government greater autonomy to manage their tax revenue.


                            ***********


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 comillionercial 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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