TCRLA_Public/160715.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Friday, July 15, 2016, Vol. 17, No. 139


                            Headlines



A R G E N T I N A

YPF SA: Inks Deal to Explore for Gas in Bolivia


B O L I V I A

BOLIVIA: IDB Okays $158.4MM Loan to Improve Small Farmer's Income


B R A Z I L

BRAZIL: To Formally Enshrine Central Bank's Autonomy
BRAZIL: Stocks in Longest Rally Since March on Political Outlook
CENTRAIS ELETRICAS: Taps New CEO Amid Probe to Win Over Traders
USINAS SIDERURGICAS: Extends Debt-Renegotiation Talks, BNDES Says


C A Y M A N  I S L A N D S

ALTERNATIVE FUND: Shareholders' Final Meeting Set for July 27
ARGO LOCAL: Shareholders' Final Meeting Set for Aug. 8
ARLINGTON INVESTMENTS: Shareholders' Final Meeting Set for Aug. 19
BORF HIGH: Shareholders' Final Meeting Set for July 29
BROAD CORPORATION: Shareholders' Final Meeting Set for July 27

CEP II FREESCALE: Shareholders' Final Meeting Set for July 29
FORMOSA GROUP: Shareholders' Final Meeting Set for Aug. 3
GLOBAL SOLUTIONS: Shareholder to Hear Wind-Up Report on Aug. 2
GOLDENTREE MULTISTRATEGY: Member to Hear Wind-Up Report on Aug. 12
I-MEDIA: Shareholders' Final Meeting Set for Aug. 3

PENDRAGON EVENT: Shareholders' Final Meeting Set for July 27
SAKURA 4 INVESTOR: Shareholder to Hear Wind-Up Report on Aug. 5
WHITE DRAGON: Shareholders' Final Meeting Set for June 21


E C U A D O R

ECUADOR: IMF Approves US$364MM Disbursement Under RFI


P U E R T O    R I C O

PACIFIC SUNWEAR: Hires Deloitte as Tax Service Provider
PUERTO RICO ELECTRIC: Moody's Affirms Caa3 Rating on Revenue Bonds


                            - - - - -



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


YPF SA: Inks Deal to Explore for Gas in Bolivia
-----------------------------------------------
EFE News reports that Argentine state-controlled energy company
YPF SA signed an agreement with Bolivian counterpart YPFB to
explore an area of eastern Bolivia with potential natural gas
reserves totaling 2.7 trillion cubic feet.

YPFB Chief Executive Officer Guillermo Acha and YPF's vice
president for natural gas and energy, Marcos Browne, signed the
deal on the second day of a petroleum congress in this eastern
Bolivian city, according to EFE News.

Mr. Acha told reporters that YPF, which has no prior exploration
operations in the Andean nation, would become a new participant in
Bolivia's hydrocarbons sector, the report notes.

The agreement covers the 99,250-hectare (383-sq.-mile) Charagua
area, which is located in the eastern province of Santa Cruz and
estimated to contain 2.7 trillion feet of natural gas, according
to YPFB, the report relays.

If the exploration work confirms the reserves' existence, YPFB and
the Argentine company will form a joint venture with a view to
investing $1.18 billion, the report says.

In accordance with Bolivian law, Congress still must give the
green light for the Charagua agreement, the report notes.

Mr. Acha also announced that YPFB would sign two other agreements
with YPF covering the exploration of the Abapo and Yunchan areas,
also located in eastern Bolivia, the report notes.

Bolivia's government estimates that its natural gas reserves
currently amount to 11 trillion cubic feet, but it says it is
conducting an exploration campaign to more than double that total
to 23 trillion cubic feet, the report says.

Bolivia exports natural gas to two foreign markets: Argentina and
Brazil, the report adds.

As reported in the Troubled Company Reporter-Latin America on July
5, 2016, Fitch Ratings expects to assign a rating of 'B/RR4' to
YPF S.A.'s proposed senior unsecured bond issuance of up to USD750
million Argentine peso-linked variable rate notes due 2020.  The
proceeds will be used to fund fixed asset investments in Argentina
and working capital requirements.  The notes will rank at least
pari passu in priority of payment with all other YPF senior
unsecured debt.  The notes would be rated the same as all of YPF's
senior unsecured obligations.


=============
B O L I V I A
=============


BOLIVIA: IDB Okays $158.4MM Loan to Improve Small Farmer's Income
-----------------------------------------------------------------
The Inter-American Development Bank has approved a loan in the
amount of $158.4 million to improve small farmers' income in
Bolivia's rural areas.

The project, which represents the third stage of Bolivia's
Irrigation Program with a Watersheds Approach (PRONAREC), will
directly benefit more than 20,000 farmers by improving or
increasing the areas under irrigation.  In particular, the program
aims to provide or improve irrigation systems in 25,000 hectares
of farmland using efficient water-use technologies, and to support
the development of local water resource management plans over the
next four years.

The agriculture and livestock industry is the main economic
activity for 77 percent of Bolivia's rural population and accounts
for 13 percent of the country's GDP. Irrigation coverage
improvements can dramatically boost farm productivity. It is
estimated that currently 41 percent of the country's area
experiences water resources deficits.

Eighty-five percent of the loan's total amount is for a 30-year
term, with a 6-year grace period, at a LIBOR-based interest rate.
The remaining 15 percent, from the Bank's Fund for Special
Operations, is for a 40-year term, with a 40-year grace period, at
0.25 percent interest. The loan will be executed by Bolivia's
Environment and Water Ministry over five years.

As reported in the Troubled Company Reporter-Latin America on June
14, 2016, Moody's Investors Service has changed the outlook on
Bolivia's issuer and senior unsecured bond ratings to negative
from stable, and has affirmed the ratings at Ba3.


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


BRAZIL: To Formally Enshrine Central Bank's Autonomy
----------------------------------------------------
Joe Leahy and Samantha Pearson at The Financial Times report that
Brazil's government is formulating a constitutional amendment that
would for the first time formally enshrine the autonomy of the
central bank, the institution's new chief said.

The law would give the central bank license to use whatever
instruments it considered necessary to meet its objectives, which
include financial stability and meeting an inflation target set in
consultation with the government, according to The Financial
Times.

"There is a [bill] that will say explicitly that the central bank
is autonomous: we call it operational autonomy," Ilan Goldfajn,
who became its chief last month, said, the report notes.

The law, which could go to Congress as a constitutional amendment
as early as this year, would aim to strengthen the central bank's
credibility in markets by reducing perceptions that it is
vulnerable to political interference, the report relays.

The report discloses that under president Dilma Rousseff, who has
been suspended from power pending an impeachment process for
allegedly manipulating the government budget, there were
persistent rumours of intervention in monetary policy to meet
political goals.

During her government, interest rates were pushed down to record
lows even as Brazil's arch-enemy, inflation, was resurgent,
undermining confidence in economic policy and culminating in a
deep recession, the report says.

Mr. Goldfajn, who was previously chief economist of Itau Unibanco,
Brazil's biggest private bank, in June took over from Alexandre
Tombini, a career technocrat who ran the central bank under Ms
Rousseff.

An urbane economist who completed his PhD at the Massachusetts
Institute of Technology in the US, Mr. Goldfajn also worked for
the International Monetary Fund during the Asian financial crisis
between 1996 and 1999 and then for the Brazilian central bank
between 2000 and 2003, the report notes.

Mr. Goldfajn said the constitutional amendment would not grant the
central bank complete independence because Brazil's inflation
target would continue to be set by a monetary council, whose
members included the planning and finance ministers, the report
relays.

But it would formalize what he called the central bank's existing
"de facto" autonomy to use monetary policy and other instruments
as it saw fit to meet this target, the report notes.

In other measures, he said the central bank expected to come close
to meeting the center of its inflation target of 4.5 per cent by
the end of next year. Annualized inflation was 8.84 per cent in
June, the report says.

Mr. Goldfajn said the central bank expected inflation to finish
2017 at 4.7 per cent compared with market forecasts for 5.5 per
cent.  "I would say the center of the target next year is
completely within our reach," he added, notes the report.

Once it had met the target, the central bank would begin
considering whether to lower it in the longer term, he said,
hinting that this might happen after 2018, the report relays.

"We don't think that 4.5 is the steady state target for Brazil
over the long run," the report quoted Mr. Goldfajn as saying.

An essential part of this, however, would be the implementation of
reforms proposed by the government of interim president Michel
Temer to rein in an explosion in fiscal spending in Brazil, such
as a constitutional amendment capping increases in budgetary
expenditure at zero in real terms, the report notes.

Other necessary reforms would include overhauling the country's
unfunded social security system, the report discloses.

"Even to reach lower inflation next year, it is important to see
some reforms," Mr. Goldfajn said, the report relays.  "What is
relevant for the economy and for us is the perspective of
regaining control of the public accounts."

Mr. Goldfajn said the central bank's other key aim was the full
implementation of a floating exchange rate regime, the report
notes.

Under Ms. Rousseff's former finance minister, Guido Mantega,
Brazil in 2011 fought a currency war in which it sought to weaken
its currency, the real, against the dollar, the report notes.

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.


BRAZIL: Stocks in Longest Rally Since March on Political Outlook
----------------------------------------------------------------
Ney Hayashi Cruz at Bloomberg News report that the Ibovespa gained
for a sixth consecutive session, heading for its longest rally
since March, amid speculation that Brazil's lower house will elect
a speaker who supports Acting President Michel Temer's proposals
to cut Brazil's budget deficit.

Itau Unibanco Holding SA and Banco Bradesco SA, Brazil's largest
banks, contributed the most to the gauge's advance, according to
Bloomberg News.  State-controlled oil producer Petroleo Brasileiro
SA, known as Petrobras, followed crude lower after data showed
U.S. supplies rose, Bloomberg News relays.

With gains of 52 percent in dollar terms this year, Brazil's
Ibovespa is the top performer among the world's major stock
benchmarks on speculation that Temer, who temporarily replaced
Dilma Rousseff as she faces an impeachment trial, will be able to
shore up the country's finances, Bloomberg News notes.  While the
government has announced measures to reduce the budget deficit,
most are still waiting for approval by lawmakers, the report says.
The lower house was scheduled to choose its new leader by the end
of Wednesday, July 13, and there are 14 candidates for the job.

"It looks like most of the candidates in the running for the lower
house will be more or less aligned with Temer," Ignacio Crespo, an
economist at Clear Corretora, told Bloomberg News by phone from
Sao Paulo.  "There's clearly a more favorable situation for Temer,
compared to Dilma, when it comes to power to push measures through
Congress."

On July 13, The Ibovespa gained 0.6 percent to 54,598.29 in Sao
Paulo.  Itau rose 2.1 percent and Bradesco 2.2 percent.  Petrobras
fell 0.2 percent as crude in New York slumped 4 percent to $44.93
a barrel.

Brazil's benchmark equity index is trading at 12.5 times estimated
earnings, which is 11 percent above its five-year average,
Bloomberg News says.  Latin America's biggest economy is forecast
to contract 3.3 percent this year after shrinking 3.8 percent in
2015, according to a weekly survey by the central bank, adds
Bloomberg News.

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.


CENTRAIS ELETRICAS: Taps New CEO Amid Probe to Win Over Traders
---------------------------------------------------------------
Paula Sambo and Vanessadezem at Bloomberg News report that Latin
America's biggest power utility is trying to convince investors
that the rebound in its bonds is far from over as it emerges from
a corruption scandal.

Centrais Eletricas Brasileiras SA, which is controlled by Brazil's
government, has reportedly tapped Wilson Ferreira Jr. to be its
next chief executive officer, replacing a political appointee,
according to Bloomberg News.

Mr. Ferreira, who has a reputation for privatizing assets and
boosting profitability, is credited with turning utility CPFL
Energia SA into the largest integrated energy company in Brazil
during his 18 years there, Bloomberg News notes.

The move is likely to boost bondholder confidence in Eletrobras,
as the company is known, according to Solitaire Aquila Ltd.'s
Patrik Kauffman, Bloomberg News relays.

Bloomberg News discloses that the unprofitable utility, which
meets a third of Brazil's electricity needs, has sought to win
back investor trust since 2014, when prosecutors started alleging
fraud across some of its projects.

While Eletrobras's $1.75 billion of notes slumped after the
company was delisted by the New York Stock Exchange last month,
they've rebounded since and are now up 18 percent this year,
Bloomberg News says.

As reported in the Troubled Company Reporter-Latin America on
June 7, 2016, Fitch downgraded the ratings of Centrais Eletricas
Brasileiras S.A.:

-- Long-Term Foreign-Currency IDR downgraded to 'BB-' from 'BB';
    Outlook Negative;
-- Long-Term Local-Currency IDR downgraded to 'BB-' from 'BB';
    Outlook Negative;
-- $US1 billion senior unsecured notes due 2019 downgraded to
    'BB-' from 'BB';
-- $US1.75 billion senior unsecured notes due 2021 downgraded to
    'BB-' from 'BB'.


USINAS SIDERURGICAS: Extends Debt-Renegotiation Talks, BNDES Says
-----------------------------------------------------------------
R.T. Watson at Bloomberg News reports that Brazilian steelmaker
Usinas Siderurgicas de Minas Gerais S.A. (Usiminas) has extended a
120-day credit standstill that was due to expire today, July 15,
state development bank BNDES said.

Usiminas has been granted an additional 60 days to negotiate a
deal, BNDES said in an e-mailed statement, according to Bloomberg
News.

Usinas Siderurgicas de Minas Gerais SA, as the Belo Horizonte-
based company is formally known, has been in the process of
renegotiating about BRL7.4 billion ($2.3 billion) of debt amid
high leverage and slumping domestic demand, Bloomberg News notes.

Its Brazilian creditors -- including Itau Unibanco Holding SA,
Banco Bradesco SA, Banco do Brasil SA and BNDES -- hold more than
half of the outstanding debt, Bloomberg News says.

"The 60-day term was a result of negotiations BNDES had in
conjunction with the other banks while it awaits the results of
the financial restructuring of the company," BNDES said in its
statement, Bloomberg News notes.

                           Capital Increase

Bloomberg News relays that the standstill and all potential debt
renegotiation has been contingent on a 1 billion-real capital
increase that the company has now completed, said two people
familiar with the issue who asked not be named because the talks
are private.

Minority shareholder Cia. Siderurgica Nacional SA had placed
BRL178.8 million in judicial escrow while it disputed the capital
increase, but that money was liberated on July 12, local newspaper
Valor Economico reported, Bloomberg News says.

Usiminas's joint controlling shareholders Techint-Ternium group
and Nippon Steel & Sumitomo Metal Corp. have been engaged in a
long-standing fight over how to manage the company, Bloomberg News
notes.  The two sides have argued over the recent appointment of
Sergio Leite as the company's chief executive officer and how to
deal with mounting losses and evaporating cash reserves amid a
global steel glut exacerbated by Brazil's deepest recession in a
century, Bloomberg News adds.

As reported in the Troubled Company Reporter-Latin America on
April 6, 2016, Moody's America Latina has downgraded Usinas
Siderurgicas de Minas Gerais S.A. corporate family ratings to Ca
from Caa1 (global scale) and to Ca.br from Caa1.br (national
scale).  The outlook for the ratings is stable.



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


ALTERNATIVE FUND: Shareholders' Final Meeting Set for July 27
-------------------------------------------------------------
The shareholders of Alternative Fund LDC will hold their final
meeting on July 27, 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:

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


ARGO LOCAL: Shareholders' Final Meeting Set for Aug. 8
------------------------------------------------------
The shareholders of Argo Local Markets Fund Limited will hold
their final meeting on Aug. 8, 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:

          Kyriakos Rialas
          Telephone: +35722668900


ARLINGTON INVESTMENTS: Shareholders' Final Meeting Set for Aug. 19
------------------------------------------------------------------
The shareholders of Arlington Investments Ltd will hold their
final meeting on Aug. 19, 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


BORF HIGH: Shareholders' Final Meeting Set for July 29
------------------------------------------------------
The shareholders of Borf High Value, Inc. will hold their final
meeting on July 29, 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:

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


BROAD CORPORATION: Shareholders' Final Meeting Set for July 27
--------------------------------------------------------------
The shareholders of Broad Corporation will hold their final
meeting on July 27, 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:

          Susan Lo Yee Har
          Hopewell Centre, Level 54
          183 Queen's Road East
          Hong Kong
          c/o Anthony McKenzie
          Telephone: +1 (345) 749 2001


CEP II FREESCALE: Shareholders' Final Meeting Set for July 29
-------------------------------------------------------------
The shareholders of CEP II Freescale Holdings will hold their
final meeting on July 29, 2016, at 10:40 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Walkers Liquidations Limited
          Cayman Corporate Centre
          27 Hospital Road
          George Town Grand Cayman KY1-9008
          Cayman Islands
          Telephone: +1 (345) 949 0100


FORMOSA GROUP: Shareholders' Final Meeting Set for Aug. 3
---------------------------------------------------------
The shareholders of Formosa Group Investment (Cayman) Limited will
hold their final meeting on Aug. 3, 2016, at 11:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Lin, Jaing-Nan
          5th Floor, No. 14 Ln. 151 Sec. 2
          Jianguo N. Rd. Zhongshan Dist.
          Taipei City 104
          Taiwan Contact
          Telephone: (886) 2-27122211


GLOBAL SOLUTIONS: Shareholder to Hear Wind-Up Report on Aug. 2
--------------------------------------------------------------
The shareholder of Global Solutions FZ-LLC will hear on Aug. 2,
2016, at 10:00 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

          Palmer Law Firm, CHTD
          Daniella Skotnicki
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949 9877


GOLDENTREE MULTISTRATEGY: Member to Hear Wind-Up Report on Aug. 12
------------------------------------------------------------------
The member of Goldentree Multistrategy, Ltd. will hear on Aug. 12,
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
          190 Elgin Avenue, George Town
          Grand Cayman, KY1-9005
          Cayman Islands
          c/o Kim Charaman
          Telephone: (345) 943-3100


I-MEDIA: Shareholders' Final Meeting Set for Aug. 3
---------------------------------------------------
The shareholders of I-Media will hold their final meeting on
Aug. 3, 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:

          Chen Jianzhang
          No. 5 Floor 4 Unit 3, Building 12
          No 164 Jinqin Road Jinniu District
          Chengdu City Sichuan Province RC
          Telephone: 18601370047


PENDRAGON EVENT: Shareholders' Final Meeting Set for July 27
------------------------------------------------------------
The shareholders of Pendragon Event Driven Fund will hold their
final meeting on July 27, 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:

          Stuart Sybersma
          c/o Lillieth McLaughlin
          Deloitte & Touche
          Citrus Grove Building, 4th Floor
          Goring Avenue George Town KY1-1109
          Cayman Islands
          Telephone: +1 (345) 814 3320
          Facsimile: +1 (345) 949 8258


SAKURA 4 INVESTOR: Shareholder to Hear Wind-Up Report on Aug. 5
---------------------------------------------------------------
The shareholder of Sakura 4 Investor will hear on Aug. 5, 2016, at
9:00 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
          190 Elgin Avenue, George Town Grand Cayman KY1-9005
          Cayman Islands
          c/o Susan Craig
          Telephone: (345) 943-3100


WHITE DRAGON: Shareholders' Final Meeting Set for June 21
---------------------------------------------------------
The shareholders of White Dragon Global Macro Fund will hold their
final meeting on June 21, 2016, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Menelaos Sazes
          Telephone: +35725849000
          Harneys Services (Cayman) Limited
          Harbour Place, 4th Floor
          103 South Church Street
          P.O. Box 10240 Grand Cayman KY1-1002
          Cayman Islands


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E C U A D O R
=============


ECUADOR: IMF Approves US$364MM Disbursement Under RFI
-----------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
approved a disbursement of SDR261.63 million (about US$364
million) for Ecuador under the Rapid Financing Instrument (RFI).
This financial support will help the country meet an urgent
balance-of-payments need due to the April 16, 2016 earthquake that
caused significant damages to infrastructure, housing and
agriculture.

The RFI1 provides rapid and low-access financial assistance to
member countries facing an urgent balance of payments need,
without the need for a full-fledged economic program or reviews.
It can provide support to meet a broad range of urgent needs,
including those arising from commodity price shocks, natural
disasters, conflict and post-conflict situations. Financial
assistance under the RFI is provided in the form of immediate
disbursements.

Following the Executive Board's discussion of Ecuador, Mr. Min
Zhu, Deputy Managing Director and Acting Chair, issued the
following statement:

"The April 16 earthquake that hit Ecuador caused significant
humanitarian losses and damage to infrastructure, housing, and
agriculture. It created new fiscal pressures and an urgent balance
of payments need at a time when Ecuador's economy is still
suffering from the effects of lower oil prices, a strong U.S.
dollar, low international reserves, and limited access to
international financing.

"The authorities quickly responded with an emergency fiscal
package to fund the relief efforts, including a temporary increase
in the VAT rate and a one-time solidarity surcharge tax on wages,
corporate profits, and personal assets. They are committed to re-
prioritize capital spending and halt low-priority projects not
related to earthquake reconstruction, in case of financing
shortfalls. They have also expressed willingness to implement
additional income and expenditure measures if needed to bring the
fiscal position in line with available financing and avoid
increasing the stock of arrears.

"Given the risks facing Ecuador, there is a need for policies to
address short- and medium-term macroeconomic imbalances and
vulnerabilities. In addition to realigning the fiscal position
with available financing, steps are needed to protect financial
stability and ensure sufficient levels of liquidity in the banking
system and improve competitiveness. Over the medium term, fiscal
policy will need to rebuild adequate buffers to create space for
countercyclical policy," Mr. Zhu said.


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


PACIFIC SUNWEAR: Hires Deloitte as Tax Service Provider
-------------------------------------------------------
Pacific Sunwear of California, Inc., et al., seek authority from
the U.S. Bankruptcy Court for the District of Delaware to employ
Deloitte Tax LLP as tax service provider to the Debtors, nunc pro
tunc to June 16, 2016.

Pacific Sunwear requires Deloitte to prepare the Puerto Rico
Corporation Income Tax Return for the year ended January 30, 2016.

Deloitte will be paid $7,000 for the services rendered.

Deloitte will also be reimbursed for reasonable out-of-pocket
expenses incurred.

To the best of the Debtors' knowledge the firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code and does not represent any interest adverse to the
Debtors and their estates.

Deloitte can be reached at:

     Scott Ferguson
     DELOITTE TAX LLP
     555 West 5th Street, Suite 2711
     Los Angeles, CA 90013
     Tel: (213) 688-0800
     Fax: (213) 688-0100

                      About Pacific Sunwear

Founded in 1982 in Newport Beach, California as a surf shop,
Pacific Sunwear of California, Inc. operates in the teen and young
adult retail sector, selling men's and womens apparel,
accessories, and footwear. The Company went public in 1993
(NASDAQ: PSUN), and peaked with 965 stores in 2006. At present,
the Company has approximately 593 retail locations nationwide
under the names "Pacific Sunwear" and "PacSun," which stores are
principally in mall locations. The Company has 2,000 full-time
workers. Through its ecommerce business, the Company operates an
e-commerce site at http://www.pacsun.com/

Pacific Sunwear of California, Inc., and two affiliated debtors
each filed a voluntary petition for relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. D. Del. Lead Case No. 16-10882) on
April 7, 2016.  The cases are pending before the Honorable Laurie
Selber Silverstein.

The Debtors sought Chapter 11 protection with a Chapter 11 plan
that would convert debt into equity.

The Debtors tapped Young Conaway Stargatt & Taylor, LLP, and Klee,
Tuchin, Bogdanoff & Stern LLP as attorneys; FTI Consulting, Inc.,
as financial advisor; Guggenheim Securities, LLC, as investment
banker; and Prime Clerk LLC as claims and noticing agent.

The official committee of unsecured creditors retained Cooley LLP
and Bayard, P.A. as counsel; and Province Inc. as its financial
advisor.


PUERTO RICO ELECTRIC: Moody's Affirms Caa3 Rating on Revenue Bonds
------------------------------------------------------------------
Moody's Investors Service has revised the outlook on the Puerto
Rico Electric Power Authority (PREPA) to developing from negative,
while affirming the Caa3 rating on PREPA's approximately $8.3
billion of Power Revenue Bonds.

Summary Rating Rationale

The change in outlook to developing from negative and the rating
affirmation are driven by recent events that suggest that positive
momentum should continue among PREPA and its creditors towards
reaching a consensual debt restructuring, all of which could
strengthen recovery prospects for creditors following an organized
debt restructuring. Of particular note is the degree of
legislative and regulatory support received by PREPA in support of
the debt restructuring. Notwithstanding this notable progress, the
developing rating outlook also captures the execution risk that
remains in completing the debt restructuring, including the
possibility that failure to achieve key milestones necessary to
complete the debt restructuring could lead to a delay or revisions
to the restructuring transaction.

Moody's said, "Specific key positive developments include the June
2016 approval by the Energy Commission of Puerto Rico of a new
separate charge on customers' electricity bills of 3.1 cents per
kilowatt hour (kWh) to be used to pay debt service on new
securitization bonds to be issued as part of PREPA's proposed debt
restructuring. This 3.1 cents/kWh is a non-bypassable charge
separate from PREPA's rates. The new charge was approved along
with the elements of the rate calculation methodology, including
the mechanism to adjust the new charge periodically to maintain a
dependable revenue stream that will satisfy debt service payments
on the new securitization bonds. The 3.1 cents/kWh charge is
subject to a validation process before Puerto Rico courts that is
currently underway in which interveners and other interested
parties can contest the surcharge. This process is expected to
take several months, and any order can be appealed to the Puerto
Rico courts. In addition, the Energy Commission, also in June
2016, approved a temporary 1.299 cents/kWh base rate increase for
PREPA, which is the first such base rate increase since 1989. The
Energy Commission is currently evaluating PREPA's parallel
requests for a permanent rate increase in a similar amount and to
modernize aspects of PREPA's rate design, and we understand that
their review is not expected to be completed before the end of
November. Together, these two rate approvals, if adopted, would
increase rates by about 4.4 cents/kWh and would signal significant
regulatory support for PREPA's restructuring plans.

"These two regulatory decisions follow the February 2016 passage
by the Puerto Rico government of the PREPA Revitalization Act,
which provides for enabling legislation necessary to complete the
above-referenced securitization financing. Moreover, on June 30,
2016, the US government enacted the Puerto Rico Oversight,
Management, and Economic Stability Act (PROMESA), which calls for
the establishment of an oversight board to approve eventual debt
restructuring plans and allows PREPA to implement its
restructuring plans as part of a Pre-existing Voluntary Agreement.
PROMESA will help to expedite the restructuring transactions by
providing a mechanism for voluntary agreements to adjust debts
through Title VI of the Act (Creditor Collective Action). Under
PROMESA, there is also a provision under Title III that allows for
in-court adjustments of debts similar to Chapter 9. While we
understand that it is PREPA's intention to avail itself of Title
VI, the utility could utilize Title III in the unexpected scenario
that negotiations with creditors break down."

Rating Outlook

The developing outlook recognizes the significant amount of
progress that has been made towards completing a debt
restructuring, which includes numerous pieces of regulatory and
legislative support. The developing outlook, however, recognizes
that execution risk remains, and that the restructuring plans
could unravel. Recovery prospects for bondholders, which are
largely incorporated in the Caa3 rating, will become clearer as
the oversight board is formed and takes its first actions, and as
progress on other elements of the restructuring continues.
Moreover, prospects for bondholder recovery will begin to
crystallize as restructuring milestones are reached, including the
base rate becoming permanent and the Puerto Rico courts issuing a
final order validating the securitization surcharge.

WHAT COULD CHANGE THE RATING - UP

There could be stabilizing and upward pressure on the rating if
the restructuring is implemented as contemplated and the ensuing
prospects for recovery end up being higher than the Caa3 rating
would suggest.

WHAT COULD CHANGE THE RATING - DOWN

The rating could be pressured downward if the restructuring plans
collapse and/or the prospects for recovery worsen.

                            ***********


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

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

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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,
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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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