TCRLA_Public/160722.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 22, 2016, Vol. 17, No. 144


                            Headlines



B E R M U D A

ENERGY XXI: Seeks Plan Filing Deadline Extension to Oct. 11


B R A Z I L

MRS LOGISTICA: S&P Affirms 'BB' Ratings; Outlook Remains Negative
ODEBRECHT SERVICOS: Puts Braskem Stake as Collateral for Loans
OI SA: Brazil Recommends 4 Firms for In-Court Administrator Role


C A Y M A N  I S L A N D S

BECA MACRO: Creditors' Proofs of Debt Due Aug. 19
BULOH INVESTMENT: Creditors' Proofs of Debt Due Aug. 15
CALIBE INVESTMENT: Creditors' Proofs of Debt Due Aug. 15
CHESAPEAKE PARTNERS: Commences Liquidation Proceedings
DANVI MANAGEMENT: Creditors' Proofs of Debt Due Aug. 15

FUTURE LTD: Creditors' Proofs of Debt Due Aug. 15
GOLDHORSE FUND: Placed Under Voluntary Wind-Up
KAZAR LIMITED: Commences Liquidation Proceedings
MSN 2441: Commences Liquidation Proceedings
SUPER MPAM: Creditors' Proofs of Debt Due July 30

TOPAZ PROPERTIES: Creditors' Proofs of Debt Due Aug. 10
VSK (CPO): Placed Under Voluntary Wind-Up
WILLOW INVESTMENT: Creditors' Proofs of Debt Due Aug. 15


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Highlands Vegetable Growers Could Go Under


M E X I C O

STATE OF CHIHUAHUA: Moody's Cuts Issuer Ratings to Ba3/Baa1.mx


P U E R T O    R I C O

INSTITUTO MEDICO: Patient Care Ombudsman Issues Monitoring Report
MORGANS HOTEL: Amends Schedule 13E-3 Transaction Statement
PUERTO RICO PUBLIC: S&P Lowers Rating on Series 2011A Bonds to D


T R I N I D A D  &  T O B A G O

TRINIDAD & TOBAGO: Biggest Problems are Corruption & Laundering


V E N E Z U E L A

VENEZUELA: Bonds Propelled by Speculation PDVSA is Eyeing Swap


                            - - - - -


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B E R M U D A
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ENERGY XXI: Seeks Plan Filing Deadline Extension to Oct. 11
-----------------------------------------------------------
BankruptcyData.com reported that Energy XXI filed with the U.S.
Bankruptcy Court a motion to extend the exclusive period during
which the Company can file a Chapter 11 plan and solicit
acceptances thereof through and including October 11, 2016 and
December 11, 2016, respectively.  The motion explains, "The
Debtors are currently on track to achieve their restructuring
goals of eliminating substantially all of their funded
indebtedness on an accelerated basis and emerging from chapter 11
better positioned to weather the challenges facing their offshore
competitors.  The Debtors' Proposed Joint Chapter 11 Plan of
Reorganization provides for a recovery for a number of
stakeholders, including general unsecured creditors.  The Debtors
are scheduled to commence the hearing on the confirmation of the
Plan of Sep. 13, 2016 and expect to have the support of the First
Lien Agent and the Steering Committee, the Ad Hoc Committee of
Second Lien Noteholders, and certain other important stakeholders.
The Debtors are cautiously optimistic that they will also have the
support of the Official Committee of Unsecured Creditors appointed
in these chapter 11 cases by that time and are hopeful they can
reach a global compromise that all parties in interest support.
In an abundance of caution, however, the Debtors seek an extension
of the exclusivity periods in which the Debtors may file and
solicit acceptances of a chapter 11 plan of reorganization.  The
Debtors believe that maintaining the exclusive right to file and
solicit votes on a plan of reorganization is critical to
finalizing the value-maximizing restructuring contemplated by the
Plan. Extending the exclusivity periods will afford the Debtors
and their stakeholders time to confirm the Plan, finalize the
transactions contemplated thereby, and proceed toward emergence
from bankruptcy in an efficient and organized fashion."  The Court
scheduled an Aug. 11, 2016 hearing on the motion.

                      About Energy XXI, Ltd.

Energy XXI Ltd (OTCMKTS: EXXIQ) was incorporated in Bermuda on
July 25, 2005.  With its principal operating subsidiary
headquartered in Houston, Texas, Energy XXI is engaged in the
acquisition, exploration, development and operation of oil and
natural gas properties onshore in Louisiana and Texas and in the
Gulf of Mexico Shelf.

Energy XXI Ltd and 25 of its affiliates filed on April 14, 2016,
bankruptcy petitions in the U.S. Bankruptcy Court for the Southern
District of Texas (Bankr. S.D. Tex. Lead Case No. 16-31928). The
petitions were signed by Bruce W. Busmire, the CFO. Judge Karen K.
Brown is assigned to the cases.

Energy XXI Ltd on April 14, 2016, also filed a winding-up petition
commencing an official liquidation proceeding under the laws of
Bermuda before the Supreme Court of Bermuda.

The Debtors sought bankruptcy protection after reaching a deal
With lenders on the filing of a restructuring plan that would
convert $1.45 billion owed to second lien noteholders into equity
of the reorganized company.

The Debtors have hired Vinson & Elkins LLP as counsel, Gray Reed &
McGraw, P.C. as special counsel, Conyers Dill & Pearman as Bermuda
counsel, Locke Lord LLP as regulatory counsel, PJT Partners LP as
investment banker, Opportune LLP as financial advisor, Epiq
Systems, Inc., as notice and claims agent.

Wilmer Cutler Pickering Hale and Dorr LLP represent an ad hoc
group of certain holders and investment advisors and managers for
holders of obligations arising from the 8.25% Senior Notes due
2018 issued pursuant to that certain Indenture, dated as of Feb.
14, 2011, by and among EPL Oil & Gas, Inc., certain of EPL's
subsidiaries, as guarantors, and U.S. Bank National Association,
as trustee.

The Office of the U.S. Trustee on April 26, 2016, appointed five
creditors of Energy XXI Ltd. to serve on the official committee of
unsecured creditors.  The Committee retains Heller, Draper,
Patrick, Horn & Dabney LLC as its co-counsel, Latham & Watkins LLP
as its co-counsel, and FTI Consulting, Inc. as its financial
advisor.



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B R A Z I L
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MRS LOGISTICA: S&P Affirms 'BB' Ratings; Outlook Remains Negative
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' global scale and 'brAA-'
Brazilian national scale ratings on MRS Logistica S.A. (MRS).  S&P
has affirmed its 'brAA-' issue-level ratings on MRS's senior
unsecured debentures.  The outlook on the corporate credit ratings
remains negative.

The recovery ratings on MRS's senior unsecured debt remain
unchanged at '3', reflecting a meaningful recovery of 50%-70% (in
the higher end of the range).

The ratings on MRS reflect the resiliency of its cash flows,
stemming from rising transported volumes over the next several
quarters, despite Brazil's recession.  This, combined with MRS's
sound operating efficiency in the form of above-industry-average
EBITDA margins and strong free operating cash flow (FOCF),
reflects the company's 'bb+' SACP.  S&P continues to cap MRS's
ratings at Brazil's sovereign rating level, given that the company
doesn't pass the sovereign stress test.  This is due to high
short-term maturities and maintenance capex needs, cash flows'
vulnerability to lower volumes and payment delinquency from some
of its main clients, as well as restrictions to access MRS's cash
investments.

S&P continues to view the railroad industry in Brazil as having
high sensitivity to a sovereign default.  This reflects MRS's
revenue generation from domestic clients and that a sovereign
default could squeeze its cash flows from clients with weaker
credit quality, given the lack of credit availability and growing
costs.  This, combined with the company's significant short-term
maturities and maintenance capital expenditures needs, would
likely result in insufficient liquidity in the stress scenario.

The negative outlook on MRS mirrors that of the sovereign of
Brazil and reflects S&P's belief that amid its current capital
structure, it could downgrade the company if S&P was to lower
Brazil's sovereign rating.  This would reflect S&P's view that
under a sovereign stress scenario, MRS's liquidity could be
impaired.  S&P could also lower MRS's SACP either if its financial
metrics weaken significantly, resulting in debt to EBITDA
consistently above 5x and FFO to debt below 12%, or if the
company's liquidity position weakens.  These ratios could result
from weaker operating efficiency and high capex.

An upgrade is unlikely in the near term as the ratings are
currently capped by the foreign currency rating of Brazil.

S&P could upgrade MRS if Brazil's ratings were upgraded and the
company continues to present strong operating performance that
would support S&P's view of stable financial metrics even during
the more challenging market conditions, resulting in debt to
EBITDA remaining close to 3.0x and FFO to debt above 20%.


ODEBRECHT SERVICOS: Puts Braskem Stake as Collateral for Loans
--------------------------------------------------------------
Guillermo Parra-Bernal at Reuters reports that Braskem SA said
controlling shareholder Odebrecht Servicos e Participacoes SA has
placed the entire stake it has in the firm as collateral for
outstanding bank loans, in a sign of Odebrecht's challenging debt
refinancing outlook.

No details on the accord between Odebrecht Serviáos, a subsidiary
of Grupo Odebrecht SA, and lenders were disclosed in a securities
filing by Braskem, according to Reuters.

Odebrecht Serviáos, a unit of Latin America's largest engineering
group, has voting control of Braskem despite having a 38 percent
stake in Latin America's biggest petrochemical firm, the report
notes.

Grupo Odebrecht is selling assets and renegotiating about 35
billion reais ($10.8 billion) in loans, a little more than a year
after being targeted in Brazil's widest ever corruption probe.
Marcelo Odebrecht, the family scion and former chief executive
officer of the namesake group, was sentenced to 19 years in jail
for his role in the corruption scandal known as "Operation Car
Wash," the report relays.

The scandal has undercut Grupo Odebrecht's access to debt
financing, and some of the conglomerate's 15 business units are
currently undertaking separate debt renegotiation and
restructuring efforts. Reuters reported in March that Grupo
Odebrecht was considering exiting Braskem, the report notes.

State-controlled Petroleo Brasileiro SA, Grupo Odebrecht's other
partner in Braskem with a 36 percent stake, decided to exit the
petrochemical firm in January, sources told Reuters at the time.
Petrobras, as the state oil firm is known, is also under
investigation in the Car Wash probe.


OI SA: Brazil Recommends 4 Firms for In-Court Administrator Role
----------------------------------------------------------------
Guillermo Parra-Bernal at Reuters reports that Brazil's
telecommunications industry watchdog Anatel proposed a list of
four candidates to become the in-court administrator of phone
carrier Oi SA, which last month filed for the nation's biggest-
ever reorganization.

Brasilia-based Anatel picked Alvarez & Marsal Holdings LLC, BDO
LLP, Deloitte & Touche LLP and PricewaterhouseCoopers as
candidates for the role, Anatel said in a statement, according to
Reuters.  The list was sent to Fernando Cesar Ferreira Viana, a
Rio de Janeiro judge overseeing Oi's bankruptcy protection
proceedings, the statement said, the report notes.

Anatel asked Mr. Viana to assess whether business relations
between PricewaterhouseCoopers, Deloitte and Oi would present a
conflict of interest, ther eport relays.

Reuters reported on July 8 that Alvarez & Marsal,
PricewaterhouseCoopers and Deloitte were shortlisted for the role.

                             About Oi SA

Headquartered in Rio de Janeiro, and operating almost exclusively
within Brazil, the Oi Group provides services like fixed-line data
transmission and network usage for phones, internet, and cable,
Wi-Fi hot-spots in public areas, and mobile phone and data
services, and employs approximately 142,000 direct and indirect
employees.

Ojas N. Shah filed a Chapter 15 petition for Oi S.A. (Bankr.
S.D.N.Y. Case No. 16-11791), Oi Movel S.A. (Bankr. S.D.N.Y. Case
No. 16-11792), Telemar Norte Leste S.A. (Bankr. S.D.N.Y. Case No.
16-11793), and Oi Brasil Holdings Cooperatief U.A. (Bankr.
S.D.N.Y. Case No. 16-11794) on June 21, 2016.  The case is
assigned to Judge Sean H. Lane.

The Chapter 15 Petitioner is represented by John K. Cunningham,
Esq., and Mark P. Franke, Esq., at White & Case LLP, in New York;
and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and Laura L.
Femino, Esq., at White & Case LLP, in Miami, Florida.



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


BECA MACRO: Creditors' Proofs of Debt Due Aug. 19
-------------------------------------------------
The creditors of Beca Macro Commodities Fund are required to file
their proofs of debt by Aug. 19, 2016, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 15, 2016.

The company's liquidator is:

          Kristoffer Huldt
          IFIT Fund Services AG
          Voltastrasse 61
          P.O. Box 2520 CH-8033, Zurich
          Switzerland
          Telephone: +41 44 366 4016
          Facsimile: +41 44 366 4039
          e-mail: kh@ifit.net


BULOH INVESTMENT: Creditors' Proofs of Debt Due Aug. 15
-------------------------------------------------------
The creditors of Buloh Investment Ltd. are required to file their
proofs of debt by Aug. 15, 2016, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on June 30, 2016.

The company's liquidator is:

          SCTS Capital PTE. Ltd.
          c/o Ian Phillips
          Telephone: (345) 749-3344
          Facsimile: (345) 749-2230
          Suite 4210, 2nd Floor Canella Court
          48 Market Street, Camana Bay
          P.O. Box 32203 Grand Cayman KY1-1208
          Cayman Islands


CALIBE INVESTMENT: Creditors' Proofs of Debt Due Aug. 15
--------------------------------------------------------
The creditors of Calibe Investment Ltd. are required to file their
proofs of debt by Aug. 15, 2016, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on July 6, 2016.

The company's liquidator is:

          Morval Bank & Trust Cayman Ltd.
          Telephone: +1 (345) 949-9808
          P.O. Box 30622 Grand Cayman KY1-1203
          Cayman Islands


CHESAPEAKE PARTNERS: Commences Liquidation Proceedings
------------------------------------------------------
On July 1, 2016, the shareholders of Chesapeake Partners Master
Fund, Ltd. resolved to voluntarily liquidate the company's
business.

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

The company's liquidator is:

          Mark Lerner
          2800 Quarry Lake Drive
          Suite 300 Baltimore
          MD 21209
          United States
          Telephone: 410-602-0195
          e-mail: mlerner@chespartners.com


DANVI MANAGEMENT: Creditors' Proofs of Debt Due Aug. 15
-------------------------------------------------------
The creditors of Edanvi Management Inc. are required to file their
proofs of debt by Aug. 15, 2016, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on July 6, 2016.

The company's liquidator is:

          Morval Bank & Trust Cayman Ltd.
          Telephone: +1 (345) 949-9808
          P.O. Box 30622 Grand Cayman KY1-1203
          Cayman Islands


FUTURE LTD: Creditors' Proofs of Debt Due Aug. 15
-------------------------------------------------
The creditors of The Future Ltd. are required to file their proofs
of debt by Aug. 15, 2016, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on July 6, 2016.

The company's liquidator is:

          Morval Bank & Trust Cayman Ltd.
          Telephone: +1 (345) 949-9808
          P.O. Box 30622 Grand Cayman KY1-1203
          Cayman Islands


GOLDHORSE FUND: Placed Under Voluntary Wind-Up
----------------------------------------------
On July 24, 2016, the sole shareholder of Goldhorse Fund resolved
to voluntarily wind up the company's operations.

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

The company's liquidator is:

          Kai Huang
          c/o David Lin
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9009
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


KAZAR LIMITED: Commences Liquidation Proceedings
------------------------------------------------
At an extraordinary meeting held on June 24, 2016, the sole
shareholder of Kazar Limited resolved to voluntarily liquidate the
company's business.

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

The company's liquidator is:

          Nigel C. Bradley
          Telephone: +41 22 54 48 116
          Rue de Candolle 17
          1205 Geneva
          Switzerland


MSN 2441: Commences Liquidation Proceedings
-------------------------------------------
On July 1, 2016, the sole shareholder of MSN 2441 Leasing Limited
resolved to voluntarily liquidate the company's business.

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

The company's liquidator is:

          Phang Thim Fatt
          8 Shenton Way #18-01
          Singapore 068811


SUPER MPAM: Creditors' Proofs of Debt Due July 30
-------------------------------------------------
The creditors of Super MPAM Cayman Fund Limited are required to
file their proofs of debt by July 30, 2016, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 30, 2016.

The company's liquidator is:

          Christopher Rowland
          c/o Richard Murphy
          Fund Fiduciary Partners Limited
          Harbour Centre, 2nd Floor
          42 North Church Street
          George Town, Grand Cayman
          10 Market Street, #769, Camana Bay
          Grand Cayman KY1-9006
          Cayman Islands
          Telephone: +1 (345) 640 5863
          e-mail: richard.Murphy@fundfidcuiaries.com


TOPAZ PROPERTIES: Creditors' Proofs of Debt Due Aug. 10
-------------------------------------------------------
The creditors of Topaz Properties Limited are required to file
their proofs of debt by Aug. 10, 2016, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 28, 2016.

The company's liquidator is:

          Caroline Riou
          Wardour Management Services Limited
          P.O. Box 10147, Grand Cayman KY1-1002
          Cayman Islands
          Telephone: (345) 945-3301
          Facsimile: (345) 945-3302


VSK (CPO): Placed Under Voluntary Wind-Up
-----------------------------------------
On July 5, 2016, the sole shareholder of VSK (CPO) Limited
resolved to voluntarily wind up the company's operations.

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

The company's liquidator is:

          Darren Riley
          c/o Summit Management Limited
          Suite # 4-210
          Governors Square
          23 Lime Tree Bay Avenue
          P.O. Box 32311 Grand Cayman, KY1-1209
          Cayman Islands


WILLOW INVESTMENT: Creditors' Proofs of Debt Due Aug. 15
--------------------------------------------------------
The creditors of Willow Investment Company are required to file
their proofs of debt by Aug. 15, 2016, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on July 6, 2016.

The company's liquidator is:

          Morval Bank & Trust Cayman Ltd.
          Telephone: +1 (345) 949-9808
          P.O. Box 30622 Grand Cayman KY1-1203
          Cayman Islands



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


DOMINICAN REPUBLIC: Highlands Vegetable Growers Could Go Under
--------------------------------------------------------------
Dominican Today reports that the agro producers grouped in the
Unaproda said 63% of Constanza's small and medium vegetable
growers is on the verge of bankruptcy and the remaining 37% will
face serious problems in the coming days, "because the Dominican
Agribusiness Board's (JAD) auctions to import products authorized
by the Agriculture Ministry."

It said the imports saturate the markets and keeps growers from
selling their harvest, according to Dominican Today.

Unaproda Secretary Alexis Suriel said the JAD held an auction to
import garlic in May, "just when local farmers were harvesting the
product, a situation that violates decree 569-12, which states
that auctions cannot be made at harvest time," the report notes.

"The auctions are done when production is scarce, but Dominican
products should be auctioned first and then the imports. The
decree is clear in that regard.  If import any further quantity of
a product is necessary, first check the internal deficit and from
there, study the possibility of importing, respecting the
seasonality of production for each crop," the report quoted Mr.
Suriel as saying.

Mr. Suriel said garlic has always been the target of attack from
many quarters who wager against Constanza, which is the only area
that grows it, and don't even know that it's the crop that
sustains an economy with 100,000 inhabitants, the report notes.
"Of the 667 hectares planted for the 2014-2015 harvest, only 220
were planted for the 2015-2016 harvest, representing 71.66% less,"
the report adds.

As reported in the Troubled Company Reporter-Latin America on
July 1, 2016, Moody's Investors Service has changed the outlook on
the Dominican Republic's long term issuer and debt ratings to
positive from stable. The ratings have been affirmed at B1.



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M E X I C O
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STATE OF CHIHUAHUA: Moody's Cuts Issuer Ratings to Ba3/Baa1.mx
--------------------------------------------------------------
Moody's de Mexico downgraded the issuer ratings of the State of
Chihuahua to Ba3 from Ba2 (Global Scale, local currency) and to
Baa1.mx from A2.mx (Mexico National Scale). At the same time,
Moody's downgraded to Baa2/Aa2.mx from Baa1/Aa1.mx the debt
ratings of the following 8 enhanced loans and placed the ratings
under review for further downgrade:

-- MXN 4,500 million enhanced loan with Interacciones

-- MXN 3,000 million enhanced loan with Multiva

-- MXN 1,716 million enhanced loan with BBVA Bancomer

-- MXN 1,380 million enhanced loan with BBVA Bancomer

-- MXN 2,028 million enhanced loan with BBVA Bancomer

-- MXN 1,995 million enhanced loan with Banorte

-- MXN 10,000 million enhanced loan with Santander

-- MXN 1,320 million enhanced loan with Banorte

The review for further downgrade of the state's issuer ratings
reflects refinancing risks of the state's short term debt
resulting from heightened political risks given the current
transition period.

RATINGS RATIONALE

The downgrade of the issuer ratings reflects a deterioration in
the state's financial position during 2015. The state posted cash
financing requirements of -9.7% of total revenues, which was
higher than expected. This impacted Chihuahua's liquidity position
and prompted an increase in net direct and indirect debt levels.
The downgrade also takes into account Chihuahua's high unfunded
pension liabilities.

During the last five years, Chihuahua registered recurrent cash
financing requirements equivalent to -8.2%, on average, of total
revenues. During 2015, Chihuahua posted a sizable cash financing
deficit equivalent to -9.7% of total revenues, higher than the -
4.6% of 2014. The cash financing requirements have resulted from a
structural misalignment between revenue and expenditure growth,
mainly reflecting current expenditures pressures related to
education and public security.

The state has financed part of its cash financing requirements
with short-term lines of credit, long term debt and bond issuances
backed by toll revenues. As such, Chihuahua's debt levels have
increased during the past five years. The ratio of net direct and
indirect debt to total revenues increased to 45.9% in 2015 from a
31.5% in 2011. Nonetheless, the state's debt service (both
principal and interest) continues to be moderate, representing
2.9% of total revenues in 2015.

Although net working capital (current assets minus current
liabilities) at the end of 2015 was still positive, equivalent to
1.2% of total expenditures, it was lower than the 3.0% registered
at the end of 2014. The ratings also incorporate the state's high
unfunded pension liabilities, that represented 199% of total
revenues according to the latest actuarial study, a level above
the median of national peers.

The ratings downgrade of the enhanced loans reflects the downgrade
of Chihuahua's issuer ratings. While the loan enhancements
continue to provide a four-notches uplift from the Global Scale
issuer rating, per Moody's methodology on rating enhanced loans,
the loan ratings are directly linked to the credit quality of the
issuer, which ensures that underlying contract enforcement risks,
economic risks and credit culture risks (for which the issuer
rating acts as a proxy) are embedded in the ratings of the
enhanced loans.

RATIONALE TO PUT THE RATING UNDER REVIEW FOR FURTHER DOWNGRADE

The review for further downgrade reflects Chihuahua's risks of
paying the MXN 2.9 million short-term debt with Banco
Interacciones and heightened political risks as a result of a
change in administration. The current administration has the
intention to refinance this obligation, extend its maturity, and
secure it through toll revenues. The State Congress recently
approved an additional MXN 6 billion debt to refinance Chihuahua's
short term debt and to develop infrastructure projects. If this
scenario materializes, refinancing risk would be mitigated.

In case the loan is not refinanced, the loan is expected to be
amortized in six monthly installments beginning in July. As the
transfer of power changes between the old and new administration
occurs, heightened political risks and recent events suggest some
risk that this debt obligation may not be honored.

Moody's said, "During the review period, Moody's will monitor the
situation regarding the risks of the state's short term loan, when
a new administration will enter office. In case the loan is not
refinanced before that date, we will assess the willingness of the
incoming administration to honor the state's financial
obligations. Moody's plans to close the review within the next
three months.

WHAT COULD CHANGE THE RATING UP/DOWN

"Given the review for further downgrade, an issuer rating upgrade
is unlikely. Additionally, we note that the state's ratings could
be further downgraded if refinancing risk materializes, or if we
lack clarity about the incoming administration's intentions to
honor it as default risk could increase."

A downgrade of the ratings would also be likely if Chihuahua fails
to implement measures for cutting expenditure, which could lead to
higher than expected cash financing requirements, a further
deterioration of its liquidity position or in higher debt levels.

Moody's said, "Given the links between the loans and the credit
quality of the obligor, a downgrade of the State of Chihuahua's
issuer ratings or if debt service coverage levels fall materially
below our expectations would likely result in a downgrade of the
ratings on the loans. Conversely, an upgrade of Chihuahua's issuer
ratings or if Debt Service Coverage of the loans increase
substantially, ratings of the loans could be upgraded.



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P U E R T O    R I C O
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INSTITUTO MEDICO: Patient Care Ombudsman Issues Monitoring Report
-----------------------------------------------------------------
Dr. Francisco J. Parga Miranda, as sub-advocate of the Office of
Puerto Rico's Patient Care Ombudsman, has issued a report to
inform of the quality monitoring as of July 5, 2016.  A copy of
the report, only available in Spanish, can be downloaded at
https://is.gd/GYG8zT

                       About Instituto Medico

Instituto Medico del Norte, Inc. -- aka Centro Medico Wilma N.
Vazquez, aka Hospital Wilma N. Vazquez Skill Nursing Facility of
Centro Medico Wilma N. Vazquez -- sought protection under Chapter
11 of the Bankruptcy Code on Oct. 30, 2013 (Bankr. D.P.R. Case No.
13-08961).  The case is assigned to Judge Mildred Caban Flores.

The Debtor scheduled $20,843,692 in total assets and $20,107,642
in total liabilities.  The Debtor, however, said its real property
has a book value of $16,000,000 and personal property is worth
$6,105,979.

The Debtor tapped as counsel Fausto David Godreau Zayas, Esq., and
Rafael A. Gonzalez Valiente, Esq., at Latimer Biaggi Rachid &
Godreau, in San Juan, Puerto Rico.  Luis B. Gonzalez & Co. CPA's
P.S.C. serves as accountant.

The U.S. Trustee for the District of Puerto Rico has appointed Dr.
Carlos Mellado (b/t Lcda Dinorah Collazo Ortiz) as patient care
ombudsman.

                            *    *    *

MCS Advantage, Inc., MCS Life Insurance Company, Medical Card
System, Inc., have filed a motion to convert the bankruptcy case
to a liquidation under Chapter 7.


MORGANS HOTEL: Amends Schedule 13E-3 Transaction Statement
----------------------------------------------------------
Morgans Hotel Group Co. filed with the Securities and Exchange
Commission amendment no. 2 to the Company's Schedule 13E-3 to
reflect the revisions in response to the SEC comment letter dated
July 11, 2016.  It is also being filed with the SEC pursuant to
Section 13(e) of the Securities Exchange Act of 1934, as amended,
jointly by (i) Morgans Hotel, (ii) Trousdale Acquisition Sub,
Inc.("Merger Sub"), (iii) SBEEG Holdings, LLC and (iv) Yucaipa
Hospitality Investments, LLC.

The Transaction Statement relates to the Agreement and Plan of
Merger, dated as of May 9, 2016, by and among the Company, SBE and
Merger Sub.  Pursuant to the Merger Agreement, if the conditions
to the closing of the merger are either satisfied or waived,
Merger Sub will be merged with and into the Company, the separate
corporate existence of Merger Sub will cease and the Company will
continue its corporate existence under Delaware law as the
surviving corporation in the merger, as a direct or indirect
wholly owned subsidiary of a new holding company to be established
by SBE, in which Yucaipa, the members of SBE and certain other
parties will be members ("Purchaser").  Upon completion of the
merger, each share of the Company's common stock, par value $0.01
per share, other than shares owned by the Company and SBE and
holders who have properly demanded and not withdrawn a demand for
appraisal rights, will be converted into the right to receive
$2.25 per share in cash, without interest and less any required
withholding taxes.

Following the completion of the merger, the Common Stock will no
longer be publicly traded, and holders of the Common Stock that
has been converted will cease to have any ownership interest in
the Company.  The Series A preferred securities of the company,
par value $9.01 per share, will be exchanged for a combination of
common and preferred equity interests in Purchaser and certain
restaurants leasehold interests, as more fully described in the
Proxy Statement.  The holder of all of the Series A preferred
securities has entered into a voting agreement with SBE, subject
to the terms and conditions of which it has agreed to consent to
the merger and the exchange of Series A preferred securities.

Concurrently with the filing of this Transaction Statement, the
Company is filing with the SEC a revised preliminary proxy
statement under Regulation 14A of the Exchange Act, pursuant to
which the Company's board of directors is soliciting proxies from
stockholders of the Company in connection with the merger.

A full-text copy of the amendment is available for free at:

                    https://is.gd/nlWWX5

                  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 million in total
assets, $737 million in total liabilities and a total deficit of
$219 million.


PUERTO RICO PUBLIC: S&P Lowers Rating on Series 2011A Bonds to D
----------------------------------------------------------------
S&P Global Ratings has lowered its rating on certain Puerto Rico
Public Buildings Authority's bonds, as well as on the Puerto Rico
Industrial, Tourist, Educational, Medical and Environmental
Control Facilities Financing Authority's series 2011A bonds, to
'D' (default) from 'CC' following a default on payment of debt
service on July 1, 2016.



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


TRINIDAD & TOBAGO: Biggest Problems are Corruption & Laundering
---------------------------------------------------------------
Trinidad Express reports that Trinidad and Tobago's biggest
problems are corruption and money laundering, Attorney General
Faris Al-Rawi said.

Mr. Al-Rawi said so huge is the problems that the country's
national budget can be financed by money that leaks away through
those illegal mechanisms, according to Trinidad Express.



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


VENEZUELA: Bonds Propelled by Speculation PDVSA is Eyeing Swap
--------------------------------------------------------------
Christine Jenkins and Nathan Crooks at Bloomberg News report that
Venezuela's bonds are soaring on speculation the government may be
looking to strike a deal to push back looming debt maturities, a
move that would give the cash-strapped nation desperately needed
breathing room.

State-owned oil producer Petroleos de Venezuela SA has seen its $3
billion of bonds due in April jump 5.3 cents this week to 69 cents
on the dollar, the highest September 2014, according to Bloomberg
News.  Investors are buying amid rumors that the company known as
PDVSA is pursuing a swap that will allow it to reduce debt service
in 2017, said Daniel Urdaneta, a strategist at Knossos Asset
Management in Caracas, Bloomberg News notes.  The struggling oil
producer faces interest and principal payments of almost $7.5
billion next year.

But to Nomura Holdings Inc.'s Siobhan Morden, bond investors may
be getting ahead of themselves.

"The catalyst was an investor call from an investment bank that
appeared more like a reverse inquiry to solicit business than any
firm mandate for an official exchange," Morden, the head of Latin
America fixed-income strategy at Nomura, said in a report,
Bloomberg News discloses.  "There was nothing of substance to
suggest any imminent launch of a formal offer, especially
considering the delayed secondary buying," he added.

PDVSA's finance department didn't immediately respond to a request
for comment.

Oil Minister and PDVSA President Eulogio Del Pino warned said that
he had bad news for those waiting for the company to fail and that
the next few days would bring important announcements from
different parts of the industry, Bloomberg News relays.  He also
said PDVSA was working with drillers and service suppliers on a
plan to convert commercial debt into financial debt, which would
allow companies to continue operating in the country, according to
a July 16 statement posted on PDVSA's website, Bloomberg News
notes.

The company's revenue from oil sales slumped 46 percent in 2015 to
$55.3 billion as crude prices collapsed, fueling speculation the
producer may not have the cash to stay current on its debt,
Bloomberg News discloses.  The company has interest payments
totaling $212 million in August, with larger payments of $1.4
billion and $2.8 billion coming in October and November,
respectively, according to data compiled by Bloomberg.

Still, trading in credit-default swaps show that investors
continue to reduce short-term default expectations, with the
implied probability that it happens over the next 12 months
falling to 51 percent from 60 percent just a month ago and 82
percent earlier this year, Bloomberg News says.  The probability
of a default in the next five years is 90 percent, according to
credit-default swaps, Bloomberg News relays.

The timing of a debt deal may be complicated by rising tensions
between the opposition-controlled National Assembly and the
Supreme Court that backs President Nicolas Maduro, which risks
worsening a political crisis in a country already reeling from
mounting economic turmoil, Bloomberg News notes.

"An important implication for investors comes from the legal
uncertainty associated with the validity of decisions of the
legislative and judiciary from now on," Francisco Rodriguez, chief
economist at Torino Capital in New York, said in a research note,
Bloomberg News discloses.  "The validity of future sovereign debt
operations could thus be thrown into question if there is doubt
about the authority of either the judiciary or the legislative to
decide on these issues," he added.

And while a deal could benefit PDVSA amid falling revenue and
Venezuela's dwindling foreign reserves, the company would have to
offer more attractive pricing to convince bondholders to accept a
debt swap after the rally, which could make the deal expensive,
Mr. Rodriguez said in an interview with Bloomberg News.

The country's international reserves fell to a 13-year low of
$11.9 billion on July 7, according to data compiled by Bloomberg.
"It's a little late to do this," Mr. Rodriguez said, Bloomberg
News notes.  "Ideally the government should have considered this
transaction in January or February, when the prices were
favorable.  Now, those bonds have risen in price and the problem
is going to be expensive," he added.

As reported in the Troubled Company Reporter-Latin America on
July 5, 2016, Fitch Ratings affirmed Venezuela's Long-Term
Foreign-and Local-Currency Issuer Default Ratings (LT FC/LC IDR)
at 'CCC'. Fitch has also affirmed the sovereign's Short-Term
Foreign Currency (ST FC) IDR at 'C' and country ceiling at 'CCC'.


                            ***********


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
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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
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Information contained herein is obtained from sources believed to
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The TCR Latin America subscription rate is US$775 per half-year,
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
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202-362-8552.


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