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        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

            Thursday, August 11, 2016, Vol. 17, No. 158


                            Headlines



A R G E N T I N A

EMPRESA DISTRIBUIDORA: S&P Affirms 'CCC' ICR, Outlook Developing
METROGAS SA: S&P Affirms 'CCC' ICR & Revises Outlook to Developing
TELECOM ARGENTINA: Discloses 2nd Payment of Dividends


B R A Z I L

OI SA: Seeks Creditor Protection for Unit in Dutch Court


C A Y M A N  I S L A N D S

ASIA PHOENIX: Shareholders' Final Meeting Set for Aug. 23
BALL CAYMAN: Sole Member to Hear Wind-Up Report on Aug. 22
CYRIL SYSTEMATIC: Shareholders' Final Meeting Set for Sept. 15
HARDIN INDEMNITY: Shareholders' Final Meeting Set for Aug. 29
HNC OPPORTUNITIES: Shareholders' Meeting Set for Sept. 15

HNC OPPORTUNITIES MASTER: Shareholders' Meeting Set for Sept. 15
KAIRIS LIMITED: Shareholders' Final Meeting Set for Sept. 1
KAZAR LTD: Shareholders' Final Meeting Set for Aug. 8
KELUSA OFFSHORE: Shareholder to Hear Wind-Up Report on Aug. 23
MILLENNIUM STRATEGIC: Shareholders' Final Meeting Set for Aug. 25

MSN 2441: Shareholders' Final Meeting Set for Aug. 23
SMITH BREEDEN: Shareholders' Final Meeting Set for Aug. 25
STEC TAIWAN: Shareholders' Final Meeting Set for Aug. 29


G U A T E M A L A

CEMENTOS PROGRESO: S&P Affirms 'BB' CCR, Outlook Remains Stable


J A M A I C A

NORANDA JAMAICA: Parent Encounters More Financial Woes


M E X I C O

CERTIFICADOS BURSATILES: Moody's Withdraws Ba2 Sr. Debt Ratings


P A N A M A

BANCO INTERNATIONAL: Moody's Lowers Currency Deposit Rating to B1


P U E R T O    R I C O

AEROPOSTALE INC: In Talks for Sale to Versa Capital
ALLIED FINANCIAL: Plan Confirmation Hearing Set for Sept. 7
CANEJAS SE: Disclosure Statement Hearing Set for Sept. 7
INMOBILIARIA BAFCO: Disclosure Statement Hearing Set for Sept. 7


V E N E Z U E L A

VENEZUELA: Officials Sets Recall Referendum Timetable


                            - - - - -



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A R G E N T I N A
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EMPRESA DISTRIBUIDORA: S&P Affirms 'CCC' ICR, Outlook Developing
----------------------------------------------------------------
S&P Global Ratings affirmed its 'CCC' issuer credit and issue-
level ratings on Argentina-based electric distributor Empresa
Distribuidora y Comercializadora Norte S.A. (Edenor) and revised
its outlook to developing from positive.

The outlook revision follows a federal judge's recent ruling that
rejected the tariff increases granted to the company in late
January.  The ruling reestablished the previously existing tariff
scheme and ordered the company to refund customers for the excess
billing.  Edenor and the government already appealed the ruling,
and now the Supreme Court should make a final ruling, which is
expected within the next two months.

S&P's 'CCC' rating already reflects the company's vulnerability to
nonpayment and its dependency on a new tariff setting mechanism to
meet its financial obligations in the next 12 months.  This is
despite the fact that the company faces no material principal
maturities in the short-term but, depending on the actual tariff
scheme, it could face material operational cash-flow deficits.

The developing outlook on the company reflects the uncertainties
regarding the new tariff implementation, in terms of timing and
amounts.  The outlook also reflects the possibility of a positive
or negative outcome for the company, depending on the Supreme
Court's final ruling.

S&P could revise the outlook to positive or upgrade the ratings,
which is less likely, if the Supreme Court approves the tariff
increases in the short term, and if, in S&P's view, the new rate
scheme improves the company's ability to fund maintenance costs
and committed capital expenditures without jeopardizing its
ability to service future debt.  S&P could also consider upgrading
the company one notch or revising the outlook to positive based on
a successful renegotiation of the liabilities with Compania
Administradora del Mercado Mayorista Electrico S.A. (CAMMESA).

S&P could revise the outlook to negative or downgrade the company
if the tariff implementation gets delayed, or if the new rate-
setting policy is below S&P's expectations, weakening its
liquidity prospects for the company.  S&P could also revise the
outlook downward if it don't see a positive impact from tariff
increases in profitability and cash generation during the next few
quarters, or if there is a negative outcome from the liability
negotiation with CAMMESA.


METROGAS SA: S&P Affirms 'CCC' ICR & Revises Outlook to Developing
------------------------------------------------------------------
S&P Global Ratings affirmed its 'CCC' issuer and issue credit
ratings on Argentina-based natural gas distributor Metrogas S.A.
(Metrogas) and revised the outlook to developing from positive.

The outlook revision follows a federal judge's recent ruling that
rejected the tariff increases granted to the company in April.
The ruling reestablished the previously existing tariff scheme and
ordered the company to refund customers for the excess billing.
Metrogas and the government already appealed the ruling, and now
the Supreme Court should make a final ruling, which is expected
within the next two months.

S&P's 'CCC' rating already reflects the company's vulnerability to
nonpayment and its dependency on a new tariff setting mechanism to
meet its financial obligations in the next 12 months.  This is
despite the fact that the company faces no material principal
maturities in the short-term.  Depending on the actual tariff
scheme, it could face material operational cash-flow deficits.

The developing outlook on the company reflects the uncertainties
regarding the new tariff implementation, in terms of timing and
amounts.  The outlook also reflects the possibility of a positive
or negative outcome for the company, depending on the Supreme
Court's final ruling.

S&P could revise the outlook to positive or upgrade the ratings,
which is less likely, if the Supreme Court approves the tariff
increases in the short term, and if, in S&P's view, the new rate
scheme improves the company's ability to fund maintenance costs
and committed capex without jeopardizing its ability to service
future debt.

S&P could revise the outlook to negative or downgrade the company
if the tariff implementation is delayed, or if the new rate-
setting policy is below S&P's expectations, lowering its liquidity
prospects for the company.  S&P could also revise the outlook
downward if it don't see a positive impact from tariff increases
in profitability and cash generation during the next few quarters,
or if there is an unexpected deterioration in the energy policy
that results in insufficient resources to meet the company's debt
obligations in the next 12 months.


TELECOM ARGENTINA: Discloses 2nd Payment of Dividends
-----------------------------------------------------
Telecom Argentina S.A. disclosed that the Management of the
Company, in accordance to the powers delegated by the Board of
Directors in its meeting held on April 29, 2016, resolved that the
distribution of the second payment of cash dividends to
Shareholders for the amount of ARS$1,300,000.000 will start on
August 26, 2016.

The amount to be distributed is equivalent to 134.14% of the
outstanding capital and the nominal value of its representative
shares or P$1.341368329 per outstanding share in circulation or
P$6.71 per ADR, prior to Personal Asset Tax deductions - if
applicable- as described below. Dividends will not be paid to nor
reserved for Treasury shares.

For ADR holders, the Record Date of this second dividend payment
is August 25, 2016 and the Payment Date is September 2, 2016. The
payment to these shareholders will be made through the Depositary
Bank, JP Morgan Chase Bank N.A.

For non-ADR holders, the Record Date of this second dividend
payment is also August 25, 2016 and payment will be available as
from August 26, 2016 (as described below). For these shareholders,
payment will be made through Caja de Valores S.A. in Argentina.

The Company will deduct from the dividend payment the
proportionate value of any amount of Personal Asset Tax paid by
the Company (pursuant to the unnumbered section following section
25 of Law No. 23,966, as amended) for fiscal year 2015. Deductions
of Personal Asset Tax payments will not apply to shareholders who
did not own shares or ADRs on December 31, 2015 and to those who
have reimbursed the Company the amount related to such tax
obligations.

Due to the time required to determine which non-ADR holders are
subject to the referred tax, the effective date of the dividend
distribution through Caja de Valores S.A. will be made within 10
days of the payment date, in accordance with the time period
established in Article 90 of the Buenos Aires Stock Exchange
Listing Rules.

Telecom Argentina is the parent company of a leading
telecommunications group in Argentina, where it offers, either
itself or through its controlled subsidiaries local and long
distance fixed-line telephony, cellular, data transmission and
Internet services, among other services. Additionally, through a
controlled subsidiary, the Telecom Group offers cellular services
in Paraguay. The Company commenced operations on November 8, 1990,
upon the Argentine government's transfer of the telecommunications
system in the northern region of Argentina.

Nortel Inversora S.A. ('Nortel'), which acquired the majority of
the Company from the Argentine government, holds 54.74% of Telecom
Argentina's issued common stock. Nortel is a holding company whose
common stock (approximately 78% of capital stock) is owned by
Sofora Telecomunicaciones S.A. Additionally, Nortel capital stock
is comprised of preferred shares that are held by minority
shareholders.

As of August 9, 2016, Telecom Argentina continued to have
984,380,978 shares issued and 969,159,605 shares outstanding.

As reported in the Troubled Company Reporter-Latin America on
April 25, 2016, Moody's hiked Telecom Argentina S.A.'s Corporate
Family Rating to B3 from Caa1 in the global scale.



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B R A Z I L
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OI SA: Seeks Creditor Protection for Unit in Dutch Court
--------------------------------------------------------
Guillermo Parra-Bernal and Ana Mano at Reuters reports that a
Dutch court has accepted a request by Brazilian phone carrier Oi
SA  to put one of its Netherlands-based units under protection
from creditors, two people with direct knowledge of the situation
said, handing creditors a victory as they seek to recoup billions
of dollars in losses.

According to the sources, who requested anonymity since the matter
is confidential, Oi's request for "suspension of payment" in an
Amsterdam bankruptcy court allows for an independent trustee to be
appointed. The suspension creates a standstill for payments to
creditors for companies in the Netherlands, Reuters relays.

One of the sources said the trustee, who will look after the
interests of creditors during the unit's bankruptcy proceedings,
will be lawyer Jasper Berkenbosch of law firm JonesDay, according
to Reuters.  The court's decision is a "huge development because
it forbids Oi's management from representing the company without
the trustee's consent," said the first person.

In recent months, several creditors including Aurelius Capital
Management LP asked the Dutch court to start bankruptcy
proceedings against Oi Brasil Holdings Coîperatief UA, as the Oi
unit is formally known, the report notes.  Under Dutch law, if the
court approves the petition, the trustee will be appointed to
defend the interests of creditors, the report relays.

Oi, Brazil's fourth-largest wireless carrier and the largest
fixed-line operator, filed in June for creditor protection in a
Rio de Janeiro court to restructure BRL65.4 billion ($21 billion)
in debt, the report notes.

The ruling makes it tougher for Oi to protect existing
shareholders from potential heavy dilution by bondholders.  It
also gives more say to bondholders of Oi Brasil Holdings and
Portugal Telecom International Finance Co, both Dutch-based
subsidiaries of Oi, during reorganization talks, said investors
such as Paolo Gorgo, the report discloses.

Both subsidiaries issued a combined $6.33 billion in bonds
outstanding. The ruling means Oi will have to deal with two
different in-court reorganization processes in two different
countries, a setback for the company, the sources said, the report
relays.

Apart from participating in the proceedings, the trustee will
investigate Oi Brasil Holdings' prior and current management teams
and enforce the company's claims against parent Oi and other
affiliates, the court said in June, the report adds.

                        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.



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


ASIA PHOENIX: Shareholders' Final Meeting Set for Aug. 23
---------------------------------------------------------
The shareholders of Asia Phoenix Absolute Return Fund will hold
their final meeting on Aug. 23, 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:

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


BALL CAYMAN: Sole Member to Hear Wind-Up Report on Aug. 22
----------------------------------------------------------
The sole member of Ball Cayman Limited will hear on Aug. 22, 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:

          Gary F. Oakley
          Britannia Corporate Management Ltd
          196 Raleigh Quay
          P.O. Box 1968 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: +1 (345) 949 2700
          Facsimile: +1 (345) 949 0716


CYRIL SYSTEMATIC: Shareholders' Final Meeting Set for Sept. 15
--------------------------------------------------------------
The shareholders of Cyril Systematic USD Fund will hold their
final meeting on Sept. 15, 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.
          c/o Nicola Cowan
          Telephone: (345) 946 7665
          Facsimile: (345) 949 2877
          dms House, 2nd Floor
          P.O. Box 1344 Grand Cayman KY1-1108
          Cayman Islands


HARDIN INDEMNITY: Shareholders' Final Meeting Set for Aug. 29
-------------------------------------------------------------
The shareholders of Hardin Indemnity Ltd. will hold their final
meeting on Aug. 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:

          Ron Sulisz
          Strategic Risk Solutions (Cayman) Limited
          North Building, 2nd Floor, Caribbean Plaza
          878 West Bay Road
          P.O. Box 1159 Grand Cayman KY1-1102
          Cayman Islands
          Telephone: +1 (345) 623 6611
          Facsimile: +1 (345) 946 6612


HNC OPPORTUNITIES: Shareholders' Meeting Set for Sept. 15
---------------------------------------------------------
The shareholders of HNC Opportunities Offshore Fund, SPC will hold
their final meeting on Sept. 15, 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:

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


HNC OPPORTUNITIES MASTER: Shareholders' Meeting Set for Sept. 15
---------------------------------------------------------------
The shareholders of HNC Opportunities Master Fund, SPC will hold
their final meeting on Sept. 15, 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:

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


KAIRIS LIMITED: Shareholders' Final Meeting Set for Sept. 1
-----------------------------------------------------------
The shareholders of Kairis Limited will hold their final meeting
on Sept. 1, 2016, to receive the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Zedra Directors (Cayman) Limited
          FirstCaribbean House, 4th Floor
          P.O. Box 487 Grand Cayman KY1-1106
          Cayman Islands


KAZAR LTD: Shareholders' Final Meeting Set for Aug. 8
-----------------------------------------------------
The shareholders of Kazar Ltd will hold their final meeting on
Aug. 8, 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:

          Nigel C Bradley
          Anne-Deborah Zilber
          TMF Services SA
          Telephone: +41 22 544 81 10
          Facsimile: +41 22 544 81 11
          e-mail : anne-deborah-zilber@tmf-group.com
          Rue de Candolle 17
          1205 Geneva
          Switzerland


KELUSA OFFSHORE: Shareholder to Hear Wind-Up Report on Aug. 23
--------------------------------------------------------------
The shareholder of Kelusa Offshore Fund, Ltd. will hear on
Aug. 23, 2016, at 11:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Kelusa Asia Focus Pte. Ltd.
          Name: Tatiana Collins
          Telephone: +1 (345) 949-9876
          Facsimile: +1 (345) 949-9877


MILLENNIUM STRATEGIC: Shareholders' Final Meeting Set for Aug. 25
-----------------------------------------------------------------
The shareholders of Millennium Strategic Capital, Ltd. will hold
their final meeting on Aug. 25, 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:

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


MSN 2441: Shareholders' Final Meeting Set for Aug. 23
-----------------------------------------------------
The shareholders of MSN 2441 Leasing Limited will hold their final
meeting on Aug. 23, 2016, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Phang Thim Fatt
          c/o BOC Aviation Limited
          8 Shenton Way #18-01
          Singapore 068811
          Telephone: +65 6325-9551


SMITH BREEDEN: Shareholders' Final Meeting Set for Aug. 25
----------------------------------------------------------
The shareholders of Smith Breeden Alpha Strategies Master Ltd.
will hold their final meeting on Aug. 25, 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:

          Amundi Smith Breeden LLC
          c/o Barnaby Gowrie
          Telephone: +1 (345) 914 6365


STEC TAIWAN: Shareholders' Final Meeting Set for Aug. 29
--------------------------------------------------------
The shareholders of STEC Taiwan Holding Limited will hold their
final meeting on Aug. 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:

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



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G U A T E M A L A
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CEMENTOS PROGRESO: S&P Affirms 'BB' CCR, Outlook Remains Stable
---------------------------------------------------------------
S&P Global Ratings Services affirmed its 'BB' corporate credit and
issue-level ratings on Cementos Progreso S.A. (CemPro).  The
outlook on the corporate credit rating remains stable.

The ratings continue to reflect CemPro's leading and stable market
share of about 83% in Guatemala's cement industry, and strong
brand recognition and pricing power.  The company's large
distribution network through its franchise ConstruRed, which
consists of independent distributors with more than 379 sales
points, allows for broad domestic market coverage.  Moreover, the
company's vertical integration and cost-efficient operations-
stemming from its low-cost raw materials because of pozzolan's
abundant availability-result in above-average profitability
compared with those of its global rated industry peers.
Guatemala's geological characteristics, such as vast pozzolan
reserves, significantly limit the company's clinker needs, reduce
its production costs, and accelerate the cement-making process,
which continues to be one of the key rating strengths.

However, S&P believes that these strengths are tempered by the
company's concentration in Guatemala, which has a high country
risk score and limits CemPro's capacity to increase its scale of
operations compared with other global industry peers.

S&P expects demand for cement in Guatemala to continue growing at
a moderate pace for the next two years, mostly due to home
construction (both self-construction and housing projects), and to
a lower extent, infrastructure and commercial development
projects.  CemPro benefits from an installed cement and clinker
capacity of about 3.1 million and 2.6 million metric tons per
year, respectively.  In addition, the San Gabriel cement plant has
been under construction since 2013.  The new plant will increase
the company's installed capacity to about 5 million tons per year,
and its output will partly substitute for that of CemPro's old
plant.  In S&P's view, the new cement plant will provide the
company with additional operating efficiencies given that it will
reduce less efficient production lines and energy costs,
increasing EBITDA margins to about 44% in 2018.  CemPro's spending
on the San Gabriel plant is more than 70% complete, and S&P
expects the new facility to start operating by the end of 2017.

S&P expects CemPro's credit metrics to remain in line with S&P's
significant financial risk profile assessment, despite the high
expected capex in the next two years.



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J A M A I C A
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NORANDA JAMAICA: Parent Encounters More Financial Woes
------------------------------------------------------
RJR News reports that Noranda Jamaica Bauxite's parent company has
encountered more financial woes.

Noranda Aluminum lost nearly US$12 million in June as sales
dipped, increasing its overall losses to more than US$54 million
since it filed for Chapter Eleven federal bankruptcy
reorganization on February 8, according to RJR News.

According to a new court filing, the US-based company said June
sales totaled US$1.5 million less than in May, the report notes.

While June sales fell, the cost of sales rose, to 67.4 million US
dollars from 66.8 million US in May, the report relays.

Noranda is seeking to sell some of its business including the
St.Ann bauxite mining operation in Jamaica, the report adds.



===========
M E X I C O
===========


CERTIFICADOS BURSATILES: Moody's Withdraws Ba2 Sr. Debt Ratings
---------------------------------------------------------------
Moody's de Mexico has withdrawn all debt ratings assigned to the
issuances of Certificados Bursatiles Bancarios (BINTER 15 and
BINTER 16) of Banco Interacciones, S.A. Institucion de Banca
Multiple, Grupo Financiero Interacciones (Interacciones).

The ratings withdrawn include Interacciones's long-term global
local currency senior unsecured debt ratings of Ba2 and long-term
Mexican National Scale senior unsecured debt ratings of A2.mx
assigned to the bank's issuances of Certificados Bursatiles
Bancarios (BINTER 15 and BINTER 16).

                         RATINGS RATIONALE

Moody's has withdrawn the ratings for its own business reasons.

                      LIST OF RATINGS AFFECTED

  Long-term global local currency senior unsecured debt rating of
   Ba2, stable outlook (BINTER 15 and BINTER 16)

  Long-term Mexican National Scale senior unsecured debt rating of
   A2.mx (BINTER 15 and BINTER 16).

The principal methodology used in these ratings was Banks
published in January 2016.

The period of time covered in the financial information used to
determine Banco Interacciones, S.A.'s ratings is between Jan. 1,
2011, and June 30, 2016.

The sources and items of information used to determine the ratings
include the interim financial statements of 2015 as well as those
of March and June 2016 (source: Moody's and Issuer's quarterly
unaudited financial statements); year-end 2015 audited financial
statements (source: Moody's and Issuer's annual audited financial
statements); information on market position (source: Comisi¢n
Nacional Bancaria y de Valores); regulatory capital information
(source: Banco de MÇxico).



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P A N A M A
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BANCO INTERNATIONAL: Moody's Lowers Currency Deposit Rating to B1
-----------------------------------------------------------------
Moody's Investors Service has downgraded the baseline credit
assessment (BCA) of Panama-based Banco International de Costa
Rica, S.A. (BICSA) to b2 from ba2, concluding the review for
downgrade initiated on May 20, 2016.

At the same time, the rating agency downgraded the bank's adjusted
BCA to b1 from ba2.  The foreign currency deposit rating was also
downgraded to B1 from Ba2, with a negative outlook.  Finally,
Moody's downgraded BICSA's long-term counterparty risk assessment
to Ba3(cr) from Ba1(cr).

BICSA is 51% controlled by state-owned Banco de Costa Rica (BCR,
local currency deposits Ba1 negative, BCA of ba2), with the
remaining 49% detained by the also government-owned Banco Nacional
de Costa Rica (BNCR, local currency deposits Ba1 negative, BCA of
ba2).

These ratings and assessments were downgraded:

Banco Internacional de Costa Rica:

  Baseline Credit Assessment, to b2 from ba2

  Adjusted Baseline Credit Assessment, to b1 from ba2

  Long-term foreign currency deposit rating, to B1 from Ba2,
   negative outlook.

  Long-term counterparty risk assessment, to Ba3(cr) from Ba1(cr)

                         RATINGS RATIONALE

The lowering of BICSA's baseline credit assessment (BCA) to b2
from ba2 reflects heightened corporate governance concerns
following the announcement on 4 August 2016 that three of the
bank's board members, representing a third of the board, had
resigned.  Moody's views the weakness of BICSA's governance
structure as exacerbating the risk that the bank's confidence-
sensitive short-term wholesale funding and its already weak
liquidity will deteriorate and reduce profitability.

The resignation of board members appointed by BICSA's minority
shareholder, Banco Nacional de Costa Rica, occurred amid apparent
shareholders' disagreement regarding the long-term strategy and
management for their Panamanian subsidiary.  This lack of
consensus also echoes the unclear roles of both shareholders,
which limit the optimal coordination of their business generation
and overall risk management practices with those of BICSA.  As a
result, BICSA has not fully leveraged its ownership to secure more
long-term funding that would support the swift development of its
regional corporate lending franchise.

BICSA's reliance on wholesale funding has already impaired its
profitability.  The bank's deposit costs were 61% higher as of
June 2016 than the same period of 2015, which in part contributed
to a 40% drop in its net income.  Funding outlays may rise further
as headline risks increase until new directors are appointed.  At
the same time, heightened competition has prevented the bank from
quickly re-pricing its loan book in line with the rise in funding
costs.  Profitability gains are also likely to be affected by
BICSA's ongoing investments in upgrading its information
technology capabilities.  BICSA's liquidity remains weak, and its
declining trend led Moody's to place BICSA's ratings on review for
downgrade in May 2016, as management used its liquid assets to
grow its loan book.  After a modest rebound during Q2 16, liquid
assets were about 16% of total assets, still below the 22% posted
in March 2015.

Moody's bank analyst Georges Hatcherian said that "the low
liquidity cushion leaves the bank more exposed to rollover risk in
light of its largely short-term, wholesale funding structure,
during a time of heightened market volatility, and which is
compounded by reputational risks in the Panamanian financial
system".  Hatcherian added that "significant deposit concentration
at BICSA also adds to potential funding volatility".

The downgrade of BICSA's long-term foreign currency deposit rating
to B1 from Ba2, reflects the lowering of the bank's BCA to b2 from
ba2.  The bank's deposit rating continues to benefit from one
notch uplift from the BCA, incorporating Moody's assessment of a
"high" probability of extraordinary affiliate support from BCR
should it be needed.  The assessment is based on BICSA's relevance
to BCR's international strategy, as well as its earnings retention
policy.

The negative outlook on BICSA's deposit rating reflects Moody's
concerns that headline risks may undermine the bank's already
weakened funding and liquidity profile as its governance structure
and strategic direction are revisited.  Moody's expects its
management to focus on protecting the bank's funding and
liquidity, rather than expanding its business.

              WHAT COULD CAUSE THE RATINGS TO MOVE DOWN

BICSA's ratings will likely be lowered if the uncertainties
persist around governance structure, the long-term business plan
for BICSA and a well-defined strategy to strengthen the bank's
funding profile.  The ratings will also face downward pressure if
liquidity does not improve materially.  Upward pressure on the
ratings is limited at this juncture, in light of the current
negative outlook.

The last rating action on Banco Internacional de Costa Rica was on
May 20, 2016, when Moody's placed BICSA's BCA on review for
downgrade.

Based in Panama City, Panama, BICSA reported total consolidated
assets of about $1.9 billion and shareholders' equity of
$212 million as of June 2016.



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


AEROPOSTALE INC: In Talks for Sale to Versa Capital
---------------------------------------------------
Lillian Rizzo, writing for The Wall Street Journal, reported that
distressed private-equity investor Versa Capital is considering
making a play for Aeropostale Inc., according to the teen apparel
retailer.

According to the report, in papers filed in Aeropostale's
bankruptcy case, the retailer said it has been in discussions with
Versa regarding a possible stalking horse, or lead, bid for the
company at a coming auction.

While nothing is set in stone, court papers show a potential Versa
bid could include a cash payment for Aeropostale's inventory, the
assumption of more than 500 existing and modified store leases,
and "continued employment for thousands of store-level and
corporate employees," the report related.

A condition of Versa's bid, however, is a demand that Aeropostale
reimburse the private-equity company's expenses, up to $500,000,
the report further related.  That condition was approved by Judge
Sean Lane of the U.S. Bankruptcy Court in New York, the report
said.

Bids for Aeropostale are due Aug. 18, the report added.  If
needed, an auction will be held Aug. 22, with the winning bid set
for court review at an Aug. 24 hearing, the report said.

                 About Aeropostale Inc.

Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of
casual apparel and accessories, principally serving young women
and men through its Aeropostale(R) and Aeropostale Factory(TM)
stores and website and 4 to 12 year-olds through its P.S. from
Aeropostale stores and website.  The Company provides customers
with a focused selection of high quality fashion and fashion basic
merchandise at compelling values in an exciting and customer
friendly store environment.  Aeropostale maintains control over
its proprietary brands by designing, sourcing, marketing and
selling all of its own merchandise.  As of May 1, 2016 the Company
operated 739 Aeropostale(R) stores in 50 states and Puerto Rico,
41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R)
stores in 12 states.  In addition, pursuant to various licensing
agreements, the Company's licensees currently operate 322
Aeropostale(R) and P.S. from Aeropostale(R) locations in the
Middle East, Asia, Europe, and Latin America.  Since November
2012, Aeropostale, Inc. has operated GoJane.com, an online women's
fashion footwear and  apparel retailer.

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

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

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

Judge Sean H. Lane is assigned to the cases.

The U.S. trustee for Region 2 on May 11 appointed seven creditors
of Aeropostale Inc. to serve on the official committee of
unsecured creditors.  The Committee hired Pachulski Stang Ziehl &
Jones LLP as counsel.


ALLIED FINANCIAL: Plan Confirmation Hearing Set for Sept. 7
-----------------------------------------------------------
The Hon. Mildred Caban Flores approved the disclosure statement
explaining the Chapter 11 Plan of Allied Financial, Inc.,
permitting the debtor and parties-in-interest to solicit
acceptances or rejections of the debtor's Plan of Reorganization,
pursuant to 11 U.S.C. Sec. 1125.

A hearing for the consideration of confirmation of the Plan and of
objections as may be made to the confirmation of the Plan will be
held Sept. 7, 2016, at 9:00 a.m. at the Jose V. Toledo Federal
Building and US Courthouse, 300 Recinto Sur Street, Courtroom 3,
Third Floor, San Juan, Puerto Rico.

The Plan documents were filed May 12, 2016.

Any objection to confirmation of the Plan shall be filed on or
before 14 days prior to the date of the hearing on confirmation of
the Plan.

Objections to claims must be filed prior to the hearing on
confirmation.  The Debtor will include in its objection to claim a
notice that if no response to the objection is filed within 30
days, the motion will be considered and decided without the actual
hearing.  If a written response or opposition to the objection to
claim is timely filed, the contested matter will be heard on the
date that the hearing on confirmation has been scheduled.

                      About Allied Financial

Allied Financial, Inc. filed a Chapter 11 bankruptcy petition
(Bankr. D.P.R. Case No. 16-00180) on Jan. 15, 2016.  The petition
was signed by Rafael Portela, president of the Board of Directors.
The Debtor disclosed total assets of $10.3 million and total debt
of $9.14 million.  C. Conde & Assoc. is counsel to the Debtor.
Judge Mildred Caban Flores presides over the case.


CANEJAS SE: Disclosure Statement Hearing Set for Sept. 7
--------------------------------------------------------
The Hon. Mildred Caban Flores scheduled a hearing to approve the
disclosure statement explaining the Chapter 11 Plan for Canejas
S.E. for Sept. 7, 2016 at 9:00 a.m.

Objections to the form and content of the disclosure statement are
due 14 days prior to the hearing.  Objections not timely filed and
served will be deemed waived.

As reported by the Troubled Company Reporter on July 25, 2016,
Canejas S.E. proposes to pay all its creditors in full, according
to a Chapter 11 plan of reorganization it filed with the U.S.
Bankruptcy Court for the District of Puerto Rico.  The
restructuring plan filed on July 19, 2016, provides for a 100%
payment to all creditors of Canejas, including its general
unsecured creditors in Class 5 which, together, assert $79,590 in
claims.

The proposed plan will be funded through Canejas' assets,
surrendering to Banco Popular de Puerto Rico the "Edificio Mars"
located in Guaynabo, Puerto Rico, which guarantees its debt to the
bank.

A copy of the plan outline is available for free at
https://is.gd/wWzBOZ

                       About Canejas S.E.

Canejas, S.E., a single asset real estate, filed a Chapter 11
bankruptcy petition (Bankr. D.P.R. Case No. 16-02644) on April 4,
2016.  The petition was signed by Diego Chevere as managing
partner.  The Debtor listed total assets of $11.1 million and
total debts of $8.55 million.  C. Conde & Assoc. represents the
Debtor as counsel.  Judge Mildred Caban Flores is assigned to the
case.


INMOBILIARIA BAFCO: Disclosure Statement Hearing Set for Sept. 7
----------------------------------------------------------------
The Hon. Mildred Caban Flores scheduled a hearing for Sept. 7,
2016, at 9:00 a.m., to consider approval of the disclosure
statement explaining the Chapter 11 plan of Inmobiliaria Bafco,
Inc.  Objections to the form and content of the disclosure
statement are due 14 days prior to the hearing.  Objections not
timely filed and served will be deemed waived.

As reported by the Troubled Company Reporter on July 25, 2016,
Inmobiliaria Bafco's Chapter 11 plan of reorganization proposes to
pay all its creditors in full.  The plan filed on July 19 with the
U.S. Bankruptcy Court for the District of Puerto Rico provides for
a 100% payment to all creditors of Inmobiliaria, including its
general unsecured creditors in Class 5, which hold $97,830 in
claims.  The proposed plan will be funded through Inmobiliaria's
assets, surrendering to Banco Popular de Puerto Rico the Parkside
Office Building located in Pueblo Viejo Ward, Guaynabo, Puerto
Rico.  The property guarantees the loan, which the bank provided
to the company.

A copy of the plan outline is available for free at
https://is.gd/kayuzK

                   About Inmobiliaria Bafco

Inmobiliaria Bafco, Inc., a single asset real estate, filed a
Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-02642)
On April 4, 2016.   Fernando Batlle, president, signed the
petition.  The Debtor listed total assets of $13.4 million and
total debt of $12.05 million.  Judge Mildred Caban Flores is
assigned to the case.



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


VENEZUELA: Officials Sets Recall Referendum Timetable
-----------------------------------------------------
BBC News reports that Venezuelan officials have set out the
timetable for a recall referendum on whether President Nicolas
Maduro should remain in power.

The Venezuelan opposition reacted angrily when they heard they
would only be allowed to collect more petition signatures in late
October, according to BBC News.

Opposition leader Henrique Capriles said an opposition march would
go ahead in September, the report notes.

A referendum defeat for Mr. Maduro this year would trigger a
presidential poll.

But a recall vote next year would see Mr. Maduro replaced by his
vice-president, meaning the Socialist party would remain in power.

The National Electoral Council (CNE) president, Tibisay Lucena,
said the opposition would be authorized in late October to try to
collect petition signatures from the 20% of the country's voters,
or 4 million people, needed to start a recall referendum, on
condition that "all the regulatory requirements are fulfilled,"
the report relays.

If the opposition was successful in gathering these signatures,
the CNE would have a month to verify them, the report says.

Ms. Lucena said electoral officials would then have 90 days to
schedule a referendum.

Constitutional experts say this appears to make it unlikely a
referendum would be held in January as demanded by the opposition,
the report notes.

The timing is crucial because according to the constitution, a
vote to recall Mr. Maduro this year would trigger a presidential
election that polls indicate the opposition is likely to win, the
report says.  But if the president is defeated in a vote next
year, the vice-president would replace Mr. Maduro and the
Socialists would thus remain in power, the report relates.

Election officials have already been accused of stretching out the
first phase of the recall referendum where the opposition had to
collect signatures from 1% of voters, the report discloses.

The opposition accuses the government of dragging its feet while
not totally rejecting the recall referendum process.

Venezuela is suffering a severe economic crisis which the
opposition blames on President Maduro, the report notes.

He says the economic crisis and efforts to get rid of him are a
capitalist conspiracy, the report discloses.

Mr. Maduro has launched legal challenges against the referendum
drive and has vowed there will be no referendum this year, the
report adds.

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
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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