TCRLA_Public/160621.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

            Tuesday, June 21, 2016, Vol. 17, No. 121


                            Headlines



B R A Z I L

BRAZIL: Stocks Advance as Brexit Outlook Favors Riskier Assets
HYPERMARCAS SA: S&P Revises Outlook to Pos. & Affirms 'BB+' CCR
HYPERMARCAS SA: Brazil Takes Closer Look at Condom Deal With RB
OI S.A.: Fitch Cuts LT Currency Issuer Default Ratings to 'C'


C A Y M A N  I S L A N D S

BBGP AIRCRAFT: Members' Final Meeting Set for July 14
CARCASSONNE FUND: Members' Final Meeting Set for June 29
CASTLE HILL: Members' Final Meeting Set for July 15
DEIRA ONE: Shareholder to Receive Wind-Up Report on July 15
G & M WORLD: Members' Final Meeting Set for July 21

MARUZEN LTD: Members' Final Meeting Set for July 7
MONEDA ABSOLUTE: Shareholder to Receive Wind-Up Report on June 28
MONIDA LTD: Members' Final Meeting Set for June 29
SADUF SEVEN: Shareholder to Receive Wind-Up Report on July 15
SADUF EIGHT: Shareholder to Receive Wind-Up Report on July 15

SADUF NINE: Shareholder to Receive Wind-Up Report on July 15
SADUF TEN: Shareholder to Receive Wind-Up Report on July 15
VITA CAPITAL: Shareholder to Receive Wind-Up Report on July 8


J A M A I C A

JAMAICA: IMF Again Describes Government's Tax Relief Plan as Bold
JAMAICA: Mining Ministry to Focus on Land Ownership Issues


P A N A M A

* Canal's Challenge After Expansion is to Remain Competitive


P U E R T O    R I C O

FERRETERIA PALOMAS: Taps Orlando Loperena Lopez as Auditor
KOMODIDAD DISTRIBUTORS: Seeks to Access FirstBank's Collateral
SPANISH BROADCASTING: Stockholders Elect Six Directors
SPANISH BROADCASTING: S&P Cuts CCR to 'CCC' on Note Default
SPORTS AUTHORITY: U.S. Trustee Objects to Houlihan Hiring


V E N E Z U E L A

VENEZUELA: Launches Crucial Referendum Phase


                            - - - - -


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B R A Z I L
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BRAZIL: Stocks Advance as Brexit Outlook Favors Riskier Assets
--------------------------------------------------------------
Denyse Godoy at Bloomberg News reported on June 17 that the
Ibovespa rose for a third straight day as investor appetite for
riskier assets climbed amid speculation the odds of the U.K.
leaving the European Union are diminishing.

State-controlled oil producer Petroleo Brasileiro SA contributed
the most to the benchmark gauge's gains, while steelmaker Usinas
Siderurgicas de Minas Gerais SA rallied, according to Bloomberg
News.  Commodity shares account for 21 percent of the index's
weighting.  Crude and metals rose, triggering gains for stocks
from China to London, as campaigning in Britain's referendum was
suspended for a second day following the murder of a lawmaker,
Bloomberg News notes.

With valuations close to the lowest level since February,
Brazilian stocks attracted investors betting on the recovery in
Latin America's biggest economy from its worst recession in a
century, Bloomberg News relays.  As the uncertainty regarding
global growth diminishes, the attention turns back to Acting
President Michel Temer's plan to shore up the budget, Bloomberg
News notes.

"The market is relieved," Raphael Figueredo, an analyst at the
brokerage Clear Corretora, said from Sao Paulo, Bloomberg News
notes.  "That paves the way for bargain-hunting in Brazil, based
on the hope the country will be able to rebound," he added.

The Ibovespa added 0.3 percent to 49,533.84 on June 17 in Sao
Paulo as 27 of its 59 stocks advanced. Petrobras and Usiminas rose
at least 2.4 percent.  The MSCI Brazil energy index rose the most
among 10 industry groups, Bloomberg News notes.  Oil producer QGEP
Participacoes SA had its biggest advance on record.

Pulp producers Suzano Papel e Celulose SA and Fibria Celulose SA
posted the biggest declines in the Ibovespa as a rally in the real
dimmed the outlook for exports, Bloomberg News adds.

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.


HYPERMARCAS SA: S&P Revises Outlook to Pos. & Affirms 'BB+' CCR
---------------------------------------------------------------
S&P Global Ratings Services revised its outlook on Hypermarcas
S.A. to positive from stable.  S&P also affirmed its 'BB+' long-
term corporate credit rating and our 'brAA+' national scale
corporate and debt credit ratings on the company.

The recovery rating on Hypermarcas's debt remains at '3', which
reflects S&P's expectations of a substantial recovery (50%-70%, in
the higher band of the range).  S&P also withdrew its 'BB+' global
scale credit rating on the senior unsecured notes because the
company fully prepaid them in April 2016.

The outlook revision reflects a possible upgrade if Hypermarcas
maintains a stable EBITDA generation--despite weak consumption in
Brazil--and continues to post strong credit metrics, with very low
leverage and sound FOCF, amid the resilient pharmaceutical market
and the company's more efficient working-capital management.
Since first quarter 2016, the company has reported a net cash
position because it used the proceeds of the sales of its beauty
business to reduce more expensive debt, which boosted cash flow
and lowered interest burden.  Hypermarcas also sold its condom
division, for which it will receive additional R$540 million in
2016.

Hypermarcas disposed a considerable part of its consumer business
to focus on the pharmaceutical and OTC markets.  However, S&P's
view of its business risk as fair remains unchanged thanks to the
company's pharmaceutical segment's higher margins, significant
share in this industry, and its efficient operating performance in
the segment.  In addition, the company has a wide range of
prescription and generic drugs and OTC products, and benefits from
the attractive growth prospects for this market.  Nonetheless,
compared with its global peers, Hypermarcas' competitive position
shrunk due to its limited scale and geographic concentration in
Brazil, in S&P's view.  The company already reports its diapers
division as discontinued operations because it's likely to be sold
along 2016.


HYPERMARCAS SA: Brazil Takes Closer Look at Condom Deal With RB
---------------------------------------------------------------
Yahoo News reports that Brazilian antitrust regulator Cade is
taking a closer look at the proposed sale of Hypermarcas SA's
condom unit to Reckitt Benckiser Group PLC after labeling it a
"complex" operation in the official government gazette.

Cade will investigate production and selling costs along with
possible efficiencies resulting from the sale, according to Yahoo
News.

Brazil's Hypermarcas agreed in January to sell its contraceptive
division to the British group for BRL675 million ($192 million),
with 20 percent paid on signing and the rest transferred when the
deal has closed, the report adds.


OI S.A.: Fitch Cuts LT Currency Issuer Default Ratings to 'C'
-------------------------------------------------------------
Fitch Ratings has downgraded Oi S.A.'s (Oi) Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDR) and its senior
unsecured notes to 'C' from 'CCC'. Fitch has also downgraded the
company's National Long-Term Rating and local debentures rating to
'C(bra)' from 'CCC(bra)'.

KEY RATING DRIVERS

Debt Restructuring Negotiation Underway

The downgrade reflects Oi's ongoing negotiation with its
bondholders' representatives with regards to a potential
restructuring of the company's capital structure, as disclosed on
June 17, 2016. The company made a proposal for potential
restructuring on June 6, 2016, which was countered with revised
terms by the noteholders on June 11, 2016. While the negotiation
continues, Oi has yet to respond or made a counterproposal to the
noteholders' terms.

Material Haircut Proposed

The original proposal made by Oi, and the counter proposal by the
noteholders both indicate a potential sharp cut to the terms of
Oi's notes, resulting in low recovery prospects. The terms of Oi's
proposal indicate 35% recovery for the notes guaranteed by Telemar
Norte Leste, S.A. (Telemar), and 25% recovery for its other senior
unsecured notes, with 50% of the reduced debt principal exchanged
to new secured notes due 2021 and 2023, and the remainder
converted to the company's equity.

The counter proposal by Oi's noteholders also suggests a similar
level of steep haircut, indicating a 50% recovery for Telemar-
guaranteed notes and 17.5% recovery for other senior unsecured
notes, with noteholders taking up 95% of the equity stake in post-
restructuring Oi. It remains unclear if Oi's current shareholders
would agree to such material dilution in its ownership, which
could hinder a progress on the ongoing restructuring negotiation.

Default Unavoidable Absent Restructuring

Oi's current capital structure is unsustainable, and the company
faces an imminent default risk given sizable short-term debt
maturities. Based on the company's liquidity projection, disclosed
on June 17, 2016, the company is forecast to consume most of its
cash to meet its debt service obligation by end-2016, in line with
Fitch's projection. As of March 31, 2016, the company's cash
balance amounted to BRL8.4 billion while its short-term gross debt
maturities were BRL8.1 billion.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for Oi include:

-- Negative FCF generation to remain uncurbed in 2016 due to high
    interest expenses and capex, amid falling EBITDA
-- Oi to deplete its cash balance by end-2016 in the absence of
    debt restructuring

RATING SENSITIVITIES

Fitch believes that a default on the company's debt obligations in
the near term is imminent. Ratings could be further downgraded to
'RD' if the company experiences an uncured payment default on its
material financial obligations, such as its bonds or loans, or
executes a distressed debt exchange.

A ratings upgrade is considered unlikely prior to the possible
restructuring that may take place.


LIQUIDITY

Oi's liquidity profile is vulnerable given the large upcoming debt
maturities in 2016 and 2017, and the company's limited access to
capital markets. The company held a readily available cash balance
of BRL8.4 billion as of March 31, 2016 which compares to its
short-term debt maturities of BRL8.1 billion. Fitch projects this
cash balance will be quickly eroded given continued negative FCF
generation.

FULL LIST OF RATING ACTIONS

Fitch has downgraded the following ratings:

Oi S.A.
-- Long-Term Foreign-Currency and Local-Currency IDRs to 'C' from
    'CCC';
-- National Long-Term Rating to 'C(bra)' from 'CCC(bra)';
-- Telemar Norte Leste, S.A.'s (Telemar) senior notes, originally
    due 2017, 2019, and 2020, to 'C/RR4' from 'CCC+/RR3';
-- All outstanding foreign-currency senior unsecured notes to
    'C/RR5' from 'CCC/RR4';
-- Local debentures to 'C(bra)' from 'CCC(bra)'.

Oi Brasil Holdings Cooperatief U.A. (Oi Netherlands)
-- EUR600 million senior notes due 2021 to 'C/RR5' from
    'CCC/RR4'.

Telemar's notes, rated 'C/RR4', reflect average recovery prospects
in the event of default, given the company's position as the main
cash flow generator with operating assets. Securities rated 'RR4'
have characteristics consistent with securities historically
recovering 31% - 50% of current principal and related interest,
which is in line with the proposals by Oi and noteholders. The
'RR5' Recovery Rating on Oi's other senior unsecured notes reflect
below-average recovery prospects, in the range of 11% - 30%, in
line with the proposals by Oi and its noteholders.



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


BBGP AIRCRAFT: Members' Final Meeting Set for July 14
-----------------------------------------------------
The members of BBGP Aircraft Holdings Ltd. will hold their final
meeting on July 14, 2016, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Dwight Dube Michael Wheaton
          The Grand Pavilion Commercial Centre, 2nd Floor
          P.O. Box 10338 Grand Cayman
          Cayman Islands KY1-1003
          Telephone: (345) 949 7232


CARCASSONNE FUND: Members' Final Meeting Set for June 29
--------------------------------------------------------
The members of Carcassonne Fund will hold their final meeting on
June 29, 2016, at 9:30 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Andre Slabbert Estera Trust (Cayman) Limited
          c/o James Macfee
          Telephone: +1 (345) 814 2962
          Estera Trust (Cayman) Limited
          Clifton House, 75 Fort Street
          P.O. Box 1350 Grand Cayman KY1-1108
          Cayman Islands


CASTLE HILL: Members' Final Meeting Set for July 15
---------------------------------------------------
The members of Castle Hill III CLO, Limited will hold their final
meeting on July 15, 2016, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


DEIRA ONE: Shareholder to Receive Wind-Up Report on July 15
-----------------------------------------------------------
The shareholder of Deira One Limited will receive on July 15,
2016, at 10:15 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

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


G & M WORLD: Members' Final Meeting Set for July 21
---------------------------------------------------
The members of G & M World Invest and Associates Ltd. will hold
their final meeting on July 21, 2016, at 4:00 p.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


MARUZEN LTD: Members' Final Meeting Set for July 7
--------------------------------------------------
The members of Maruzen Ltd. will hold their final meeting on
July 7, 2016, to hear the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

          CDL Company Ltd.
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands


MONEDA ABSOLUTE: Shareholder to Receive Wind-Up Report on June 28
-----------------------------------------------------------------
The shareholder of Moneda Absolute Return Fund, Ltd. will receive
on June 28, 2016, at 11:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Moneda USA, Inc.
          c/o Ridhiima Kapoor
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949 9877


MONIDA LTD: Members' Final Meeting Set for June 29
--------------------------------------------------
The members of Monida Ltd. will hold their final meeting on
June 29, 2016, at 9:00 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

         James Macfee Estera Trust (Cayman) Limited
         Telephone: +1 (345) 814 2962
         c/o Estera Trust (Cayman) Limited
         Clifton House, 75 Fort Street
         P.O. Box 1350 Grand Cayman KY1-1108
         Cayman Islands


SADUF SEVEN: Shareholder to Receive Wind-Up Report on July 15
-------------------------------------------------------------
The shareholder of Saduf Seven Limited will receive on July 15,
2016, at 10:30 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

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


SADUF EIGHT: Shareholder to Receive Wind-Up Report on July 15
-------------------------------------------------------------
The shareholder of Saduf Eight Limited will receive on July 15,
2016, at 10:45 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

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


SADUF NINE: Shareholder to Receive Wind-Up Report on July 15
------------------------------------------------------------
The shareholder of Saduf Nine Limited will receive on July 15,
2016, at 11:00 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

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


SADUF TEN: Shareholder to Receive Wind-Up Report on July 15
-----------------------------------------------------------
The shareholder of Saduf Ten Limited will receive on July 15,
2016, at 11:15 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

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


VITA CAPITAL: Shareholder to Receive Wind-Up Report on July 8
-------------------------------------------------------------
The shareholder of Vita Capital V Ltd. will hear on July 8, 2016,
at 11:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Kevin Poole
          James Trundle
          Telephone: 914-2270/ 914-2265/ 949-5263
          Facsimile: 949-6021
          P.O. Box 10233 Grand Cayman
          Cayman Islands


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


JAMAICA: IMF Again Describes Government's Tax Relief Plan as Bold
-----------------------------------------------------------------
RJR News reports that the International Monetary Fund has again
described the Jamaican Government's new tax relief plan, presented
in the FY2016/17 budget as a bold step to shift the tax system
from direct to indirect taxation.

But it noted that proper execution of this reform is critical to
ensure revenue neutrality and safeguard the revenue base,
according to RJR News.

The IMF says it is also mindful of the effects of the policy on
the poor suggesting that the Government strengthen and better
target benefits such as PATH to help mitigate the impact of the
reform on the poor, notes the report.

However, the fund is still not satisfied with the government's
efforts to reduce the wage bill saying concrete reforms are needed
to reduce it as it continues to crowd out priority social and
infrastructure spending.

It called for quick action to divest and outsource certain
government services and implement the human resource management
system, the report says.

The IMF statement comes after its Board completed the Eleventh and
Twelfth Reviews under the Extended Fund Facility for Jamaica, the
report relays.

This resulted in Jamaica getting an US$80 million disbursement,
notes the report.

                               *     *     *

As reported in the Troubled Company Reporter-Latin America on Feb.
15, 2016, Fitch Ratings has upgraded Jamaica's Long-term foreign
and local currency IDRs to 'B' from 'B-' and revised the Rating
Outlooks to Stable from Positive.  In addition, Fitch upgraded
Jamaica's senior unsecured Foreign- and Local-Currency bonds to
'B' from 'B-'.  The Country Ceiling has been affirmed at 'B' and
the Short- Term Foreign-Currency IDR affirmed at 'B'.


JAMAICA: Mining Ministry to Focus on Land Ownership Issues
----------------------------------------------------------
RJR News reports that Mining Minister, Mike Henry, said urgent
focus is to be placed on the issue of land ownership and the use
of reclaimed lands for agriculture in mining communities.

Mr. Henry made the commitment during a meeting with the executive
management team of JAMALCO, according to RJR News.

Mr. Henry said the development of communities on lands which have
been mined, the integration of communities into self-
sustainability and the involvement of the people into that
developmental plan were critical, the report notes.

The Mining Minister said the Government is making more money
available for building houses, which presented greater incentives
for persons owning and using mined lands, the report adds.

                               *     *     *

As reported in the Troubled Company Reporter-Latin America on Feb.
15, 2016, Fitch Ratings has upgraded Jamaica's Long-term foreign
and local currency IDRs to 'B' from 'B-' and revised the Rating
Outlooks to Stable from Positive.  In addition, Fitch upgraded
Jamaica's senior unsecured Foreign- and Local-Currency bonds to
'B' from 'B-'.  The Country Ceiling has been affirmed at 'B' and
the Short- Term Foreign-Currency IDR affirmed at 'B'.


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


* Canal's Challenge After Expansion is to Remain Competitive
------------------------------------------------------------
Giovanna Ferullo at EFE News reports that once completed, the
expansion of the Panama Canal, a "difficult" job that has already
affected maritime transport costs worldwide, the waterway faces
the challenge of remaining competitive in a "volatile" market, its
administrator Jorge Quijano said in an interview.

Amid the "excitement" of having completed, "after so many ups and
downs," the canal's expansion, to be inaugurated June 26 after
nine years in the works, Mr. Quijano, who studied engineering in
Panama and the United States and has been with the Panama Canal
Authority, or ACP, for 40 years, is very clear about what the
future holds, and is very optimistic about it, according to EFE
News.

"Now the project is done, we'll see how we nail down the market"
of container ships, which represent "almost 50 percent of the
canal's revenues," the burgeoning segments of liquid natural gas
and liquid gas from petroleum, and other sectors in the diverse
portfolio of the ACP, considering that "the market is so
volatile," the report quoted Mr. Quijano as saying.

That instability is linked to fuel and shipping costs, now very
low, and leads shipping companies to avoid going through the
Panama or Suez Canals and instead sail around Africa's Cape of
Good Hope, which adds 15 days to their trip, he said, the report
notes.

Meanwhile, the Panama Canal seeks different ways to remain
competitive, including reminding clients that this is "a greener
route," the report relays.

Going around the Cape of Good Hope adds "15 days of contamination.
We believe that has some value to shippers who are truly committed
to protecting our planet . . . . using the Panama Canal means
taking responsibility for our environment," Mr. Quijano said, the
report discloses.

The Panama Canal chiefly serves the Asia-U.S. East Coast trade.
The principal user of that route, with almost 70 percent of what
comes and goes, is the United States, followed by China, notes the
report.

Mr. Quijano did not hide his optimism over the new expanded canal,
which is expected to generate some $400 million-$500 million
annually in additional revenues for the state, which has received
from the ACP around $9.6 billion from the United States since the
U.S. handed it over to Panama on Dec. 31, 1999, the report adds.


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


FERRETERIA PALOMAS: Taps Orlando Loperena Lopez as Auditor
----------------------------------------------------------
Ferreteria Palomas Inc. seeks permission from the U.S. Bankruptcy
Court for the District of Puerto Rico to employ Orlando Loperena
Lopez as external auditor and business consultant.

The Accountant will:

      a. assist the Debtor in preparing the Monthly Reports of
         Operation;

      b. prepare the necessary financial statements;

      c. assist the Debtor in preparing the cash flow projections
         and or any other projection needed for the Disclosure
         Statement;

      d. assist the Debtor in any or all financial and accounting
         pertaining to, or in connection with the administration
         of the estate;

      e. assist the Debtor in the preparation and filing of
         federal, state and municipal tax returns; and

      f. assist the Debtor in any other assignment that might be
         properly delegated by management.

The Accountant will be paid at these hourly rates:

         Orlando Loperena Lopez         $125
         Associates                      $30

The Accountant assures the Court that the firm doesn't hold nor
represent any interest adverse to the estate of the Debtor, and is
a "disinterested person" as that term is defined in 11 U.S.C.
Section 101(14).

The Accountant can be reached at:

         Orlando Loperena Lopez, M.B.A.
         Calle 3-329 Ext. Marbella
         Aguadilla, PR 00603
         Tel: (787) 891-4218 & 891-5231

Ferreteria Palomas Inc. filed for Chapter 11 bankruptcy protection
(Bankr. D. P.R. Case No. 16-03644) on May 5, 2016.  Gloria M.
Justiniano, Esq., Ensanche Martinez, Esq., and Calle A. Ramirez
Silva, Esq., at Justiniano Law Offices serve as the Debtor's
bankruptcy counsel.


KOMODIDAD DISTRIBUTORS: Seeks to Access FirstBank's Collateral
--------------------------------------------------------------
Komodidad Distibutors, Inc., and its affiliates seek authority
from the U.S. Bankruptcy Court to use cash collateral in the
ordinary course of business in an amount necessary to pay basic
expenses and critical operational expenses.

The Debtors also seek a judicial determination that FirstBank
Puerto Rico is adequately protected due to the substantial equity
cushion the Debtors holds on account of the value of the real
property, the value of the rents received from the real estate
properties, inventory and accounts receivables, or in the
alternative, that it enters an order granting replacement liens in
the form of rental proceeds received each month subsequently,
which replenishes the bank's collateral and prevents a diminution
of value.

In addition, the Debtors ask the Court to compel FirstBank to
disburse the amounts held at the bank accounts in favor of the
Debtors and make available to the Debtors the cash collateral
funds existing at the petition date in all the accounts it
controls and any postpetition collections of the Debtors' rental
proceeds, as well as to return the amounts of $447,321 held at the
bank as a result from the unilateral application since February
24, 2016, of daily 10% claw backs on all deposits made into the
Cash Concentration Account by the Debtors.

A full-text copy of the Cash Collateral Motion dated May 30, 2016
is available at http://tinyurl.com/jx2hl9v

FirstBank complain that the Debtors commenced these Cases and
remained silent while using FirstBank's cash/cash collateral
without Court authorization or FirstBank consent. Even after
FirstBank filed the its Motion to Limit Interim Cash Collateral
Use, the Debtors unilaterally removed funds from the operating
account historically maintained at FirstBank" funds that the
Debtors had no authority to use.

FirstBank further complains that the Debtors seek approval of an
interim cash collateral arrangement (a) with no meaningful lender
oversight, (b) under a vague budget that appears to exceed
payments, (c) by claiming an equity cushion based on conjecture
and no evidence, (d) by proposing a replacement lien on
postpetition rents and nothing more " ignoring the Court's holding
that such a replacement lien is not adequate protection when the
same rents are consumed postpetition " and despite apparently
overdue rents and expired/expiring leases, and (e) by asserting,
in the face of the Debtors' historically declining revenues,
increasing losses, missed projections, and diminishing business,
that FirstBank's cash collateral is appreciating.

Accordingly, to the extent the Court is inclined to approve any
interim short-term cash usage pending a final hearing, FirstBank
asks the Court to condition any use upon, among other things, (a)
the grant of the relief requested in the FirstBank Motion --
segregating and maintaining all postpetition rent and receivable
payments in accounts at FirstBank, and an accounting of the
Debtors' use of cash since the Petition Date, (b) restricting
disbursements exclusively to those actually necessary to avoid
irreparable harm and a budget acceptable to FirstBank, (c)
prohibition during the interim period on any and all disbursements
or transfers of cash or inventory to any insider or non-Debtor
affiliate, and (d) monitoring, reporting, and collateral access
acceptable to FirstBank -- to ensure the Debtor's accountability
and to protect FirstBank's interests, avoiding irreparable harm
pending a final hearing.

On the contrary, the Debtors maintain that their liabilities of
all three term loans of FirstBank, sum up to only $44,695,912,
while the assets from all of Debtors' properties sum up to
$69,517,277, and as such, there is sufficient equity cushion in
order to adequately protect FirstBank from any loss in the value
of its collateral.

Furthermore, the Debtors tell the Court that the properties
encumbered by Firstbank are fully protected with insurance
policies which are up to date and protect the lender in any
natural disaster or event which could affect its value.

As can be evinced by the schedules submitted in the bankruptcy
docket, there are more than $9.2 million in assets which
adequately protect Firstbank, without any mention of the
investments or accounts receivables of the Debtors' Venezuelan
interests, and according to the Debtors' latest balance of
Firstbank's loans, the line of credit had a balance of $6,550,000
and assets without counting Debtors quantifiable interests in
Venezuela add up to more than $9.2 million dollars.

Therefore, the Debtors point out, Firstbank's interest in the
mortgages is adequately protected by an equity cushion of
approximately $5 million, as well as Firstbank's interest over the
rents because the unencumbered properties yield more than $4.2
million in rents as compared to the approximately $350,000
encumbered rents.

Komodidad Distibutors, Inc. and its affiliates are represented by:

       Javier Vilarino, Esq.
       VILARINO & ASSOCIATES LLC
       P.O. Box 9022515
       San Juan, PR 00902-2515
       Telephone: 787-565-9894
       Email: jvilarino@vilarinolaw.com

Attorneys for FirstBank Puerto Rico:

       Zachary H. Smith, Esq.
       MOORE & VAN ALLEN, PLLC
       100 North Tryon Street
       Suite 4700, Charlotte
       North Carolina, 28202
       Telephone: (704) 331-1046
       Email: zacharysmith@mvalaw.com

       -- and --

       Antonio A. Arias, Esq.
       Lina M. Soler-Rosario, Esq.
       MCCONNELL VALDES, LLC
       P.O. Box 364225
       San Juan, Puerto Rico 00936-4225
       Telephone: (787) 250-5604
       Email: aaa@mcvpr.com
              lms@mcvpr.com

                 About Komodidad Distributors

Komodidad Distributors, Inc. filed for Chapter 11 bankruptcy
protection (Bankr. D.P.R. Case No. 16-04161) on May 25, 2016. The
petition was signed by Jorge Galliano, president. The Hon. Enrique
S. Lamoutte Inclan presides over the case.

The Debtor estimated assets of $50 million to $100 million and
estimated debts of $10 million to $50 million.

Komodidad Distributors Inc. retails clothing, accessories, and
fragrances. The Company sells various brands of apparel including
men's and women's shirts, pants, slacks, shorts, skirts, dresses,
jackets, sweaters, and sleepwear, as well as handbags, belts,
earrings, necklaces, bracelets, watches, and rings. Komodidad
Distributors provides fashion products in Puerto Rico and
Venezuela.


SPANISH BROADCASTING: Stockholders Elect Six Directors
------------------------------------------------------
Spanish Broadcasting System, Inc., held its annual meeting of
stockholders on June 8, 2016, at which the stockholders:

   (a) elected Raul Alarcon, Joseph A. Garcia, Manuel E. Machado,
       Jason L. Shrinsky, Jose A. Villamil and Mitchell A. Yelen
       as directors to hold office until such time as their
       respective successors have been duly elected and qualified;

       and

   (b) approved, on an advisory basis, the compensation of the
       Company's named executive officers.

Alan Miller and Gary Stone, the two directors elected by the
holders of the Series B Preferred Stock at the 2014 annual
meeting,
were not subject to election at this year's annual meeting and
continue to serve as directors.

                   About Spanish Broadcasting

Headquartered in Coconut Grove, Florida, Spanish Broadcasting
System, Inc. -- http://www.spanishbroadcasting.com/-- owns and
operates 21 radio stations targeting the Hispanic audience.  The
Company also owns and operates Mega TV, a television operation
with over-the-air, cable and satellite distribution and affiliates
throughout the U.S. and Puerto Rico.  Its revenue for the twelve
months ended Sept. 30, 2010, was approximately $140 million.

As of March 31, 2016, Spanish Broadcasting had $452 million in
total assets, $561 million in total liabilities, and a total
stockholders' deficit of $109 million.

                           *     *     *

In November 2010, Moody's Investors Service upgraded the corporate
family and probability of default ratings for Spanish Broadcasting
System, Inc., to 'Caa1' from 'Caa3' based on improved free cash
flow prospects due to better than anticipated cost cutting and the
expiration of an unprofitable interest rate swap agreement.
Moody's said Spanish Broadcasting's 'Caa1' corporate family rating
incorporates its weak capital structure, operational pressure in
the still cyclically weak economic climate, generally narrow
growth prospects (though Spanish language is the strongest growth
prospect) given the maturity and competitive pressures in the
radio industry, and the June 2012 maturity of its term loan
magnify this challenge.

As reported by the TCR on May 25, 2016, S&P Global Ratings said
that it lowered its corporate credit rating on U.S.
Spanish-language broadcaster Spanish Broadcasting System Inc.
(SBS) to 'CCC' from 'CCC+'.


SPANISH BROADCASTING: S&P Cuts CCR to 'CCC' on Note Default
-----------------------------------------------------------
S&P Global Ratings said that it lowered its corporate credit
rating on U.S. Spanish-language broadcaster Spanish Broadcasting
System Inc. (SBS) to 'CCC' from 'CCC+'.  The rating outlook is
negative.

At the same time, S&P lowered its issue-level ratings on the
company's 12.5% senior secured notes due 2017 to 'CCC' from
'CCC+'.  The '3' recovery rating remains unchanged, indicating
S&P's expectation for meaningful recovery (50%-70%; upper half of
the range) of principal in the event of a payment default.

"The downgrade reflects our view that SBS will not be able to
repay its 12.5% notes due April 2017, given its inability to incur
new debt due to debt incurrence limitations from its preferred
stock," said S&P Global Ratings credit analyst Jawad Hussain.  The
limitation occurred after the company failed to repurchase the
preferred stock in 2013 when it was were required to do so.  If
the company is unable to amend this restriction and refinance its
12.5% notes or generate enough spectrum sale proceeds to repay the
notes, S&P believes it will face a payment default in April 2017
when the notes are due.  S&P's 'CCC' corporate credit rating
reflects the significant refinancing risk and tightening liquidity
the company faces.

"The negative rating outlook reflects the potential for a
downgrade if SBS is unable to successfully change the preferred
stock terms to allow for additional debt incurrence, or if it's
unable to raise enough proceeds in the spectrum auction to repay
the notes maturing in April 2017," said Mr. Hussain.

S&P could downgrade the company if it is unable to refinance or
repay the note due in April 2017 by the end of this year.  S&P
could also lower the corporate credit rating if the company
doesn't generate enough proceeds in the spectrum auction to allow
it to either repay its outstanding notes or come to an agreement
with its preferred stockholders to incur additional debt to
refinance the 2017 notes.

S&P could revise the outlook to stable or upgrade SBS if the
company is able to generate enough proceeds in the spectrum
auction to allow it to either repay its outstanding notes or if it
reaches an agreement with its preferred stockholders to incur
additional debt to refinance its 2017 notes, which would eliminate
the likelihood of default over the following 12 months.


SPORTS AUTHORITY: U.S. Trustee Objects to Houlihan Hiring
---------------------------------------------------------
Andrew R. Vara, the Acting United States Trustee for Region 3,
objects to the application of the Official Committee of Unsecured
Creditors of Sports Authority Holdings, Inc., et al., to retain
Houlihan Lokey Capital, Inc. as investment banker.

According to the U.S. Trustee, the Committee has not shown how the
retention of Houlihan will benefit the unsecured creditors and the
bankruptcy estate.  It avers taht the Committee has not shown that
Rothschild is not performing competently, or that it is not
marketing the Debtors' assets to the best of its ability.  The
Committee, the U.S. Trustee points out, has also not provided any
evidence that Houlihan has participated in the Debtors' sale
process, has contributed to the process, has brought a buyer
willing to offer a higher or better price to the table, or has
otherwise enhanced the sale process in any way.  "Rather, it
appears that the Committee proposes to pay Houlihan more than a
million dollars in two weeks, when the Debtors' sale of
substantially all of its assets (or whatever portion of those
assets are the subject of purchase offers) is approved by the
Court.  This is not reasonable," the U.S. Trustee states.

"Further, at least one creditor, the Debtors' term loan lender,
has objected to Houlihan's retention.  Its objection is similar -
that Houlihan cannot demonstrate that its engagement will provide
a "tangible, identifiable, and material benefit to the sale
process beyond that which is already being provided by [the
Debtors' and Committee's other] professionals."  Based on the lack
of benefit to the estates, the harm to the very constituency
seeking to hire Houlihan, and the multiple professionals already
involved in the sale process, Houlihan's retention is unnecessary
and should not be approved."

The U.S. Trustee is represented by:

         Hannah Mufson McCollum, Esq.
         United States Department of Justice
         Office of the United States Trustee
         J. Caleb Boggs Federal Building
         844 N. King Street, Room 2207
         Wilmington, DE 19801
         Tel: (302) 573-6491

                     About Sports Authority

Sports Authority Holdings, et al., are sporting goods retailers
with roots dating back to 1928.  The Debtors currently operate 464
stores and five distribution centers across 40 U.S. states and
Puerto Rico.  The Debtors offer a broad selection of goods from a
wide array of household and specialty brands, including Adidas,
Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and
Fitness, Nike, The North Face, and Under Armour, in addition to
their own private label brands.  The Debtors employ 13,000 people.

Sports Authority and six of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to
16-10533) on March 2, 2016.  The petitions were signed by Michael
E. Foss as chairman & chief executive officer.

The Debtors have engaged Gibson, Dunn & Crutcher LLP as general
counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel,
Rothschild Inc. as investment banker, FTI Consulting, Inc., as
financial advisor and Kurtzman Carson Consultants LLC as notice,
claims, solicitation, balloting and tabulation agent.

Andrew Vara, Acting U.S. trustee for Region 3, appointed seven
creditors of Sports Authority Holdings Inc. to serve on the
official committee of unsecured creditors.  Lawyers at Pachulski
Stang Ziehl & Jones LLP represent the Official Committee of
Unsecured Creditors.


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


VENEZUELA: Launches Crucial Referendum Phase
--------------------------------------------
Jamaica Observer reports that Venezuelans seeking to oust
President Nicolas Maduro amid a food crisis launched a crucial
stage of their drive for a referendum on his rule.

Those who signed an initial petition calling for a recall
referendum must submit their fingerprints to the electoral
authorities in order to authenticate their signatures, according
to Jamaica Observer.

Crowds of citizens holding their identity cards queued up first
thing morning to have their prints taken at the National Electoral
Council in Caracas, the report notes.  Other collection points
were set up around the country.

Of the 1.3 million signatures recorded by the electoral board in
the initial petition, at least 200,000 must be authenticated to
pass to the next phase, the report relays.

The next step will require yet more signatures to be collected.
Venezuela is suffering an economic crisis worsened by the plunge
in prices for its crucial oil exports, the report says.

Citizens are suffering shortages of basic foods and goods.

The opposition says Maduro's economic management is also to blame,
and denounce the jailing of his political opponents, the report
notes.

Maduro is resisting efforts for a referendum, notes Jamaica
Observer.  He has alleged irregularities in the signature process.

His government said the signatures collected included those of
prisoners ineligible to vote, the report says.

The country's food crisis erupted into deadly looting. Authorities
said at least five people were killed and more than 400 arrested,
the report notes.

The president has warned he may decree emergency measures if
confronted with violence, the report notes.

Such measures could prevent the recall referendum from taking
place, the report adds.

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.


                            ***********


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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