TCRLA_Public/160922.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

            Thursday, September 22, 2016, Vol. 17, No. 188


                            Headlines



B R A Z I L

BRAZIL: Must Set Limits On Gov't Spending, Finance Minister Says
PETROLEO BRASILEIRO: Cuts Five-Year Investment Plan


C A Y M A N  I S L A N D S

ALPHA-BETA CONTINUUM: Commences Liquidation Proceedings
AVON INSURANCE: Placed Under Voluntary Wind-Up
CLSA SUNRISE: Creditors' Proofs of Debt Due Oct. 3
COIF SPV 3/11: Commences Liquidation Proceedings
GOLDMAN SACHS QUANTITATIVE: Commences Liquidation Proceedings

GUOTAI JUNAN: Creditors' Proofs of Debt Due Oct. 3
MASAMASO GROUP: Creditors' Proofs of Debt Due Oct. 2
MBS INSURANCE: Placed Under Voluntary Wind-Up
PETERSHILL US IM: Commences Liquidation Proceedings
PETERSHILL US (MANLEY): Commences Liquidation Proceedings

TAIWAN BROADBAND: Commences Liquidation Proceedings
U.S. HOUSING RECOVERY: Commences Liquidation Proceedings


C O L O M B I A

EMPRESA DE TELECOM: Moody's Lowers CFR to Ba3; Outlook Negative


D O M I N I C A N   R E P U B L I C

AES ANDRES: Fitch Affirms 'B+' LT FC Issuer Default Rating
DOMINICAN REP: OPETUR Wants Ban on Dollar-Only Payments Repealed
EMPRESA GENERADORA: Fitch Affirms 'B+' LT Issuer Default Ratings


P U E R T O    R I C O

EUROMODAS INC: Oct. 12 Joint Plan & Disclosures Approval Hearing
JOSE LUIS CRESPO: Hearing on Disclosures Set For Oct. 7
LIDA BAUCAGE PEREZ: Unsecureds to Get 10% Under Ch. 11 Plan
PASO GAS: Hires Rivera-Velez & Santiago as Counsel
SAN JUAN OIL: Nov. 18 Disclosure Statement Hearing Set


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Looks to Swap $7 Billion in Upcoming Debt


                            - - - - -


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


BRAZIL: Must Set Limits On Gov't Spending, Finance Minister Says
----------------------------------------------------------------
EFE News reports that limits must be set on government spending in
Brazil, as proposed in a bill sent to Congress, Finance Minister
Henrique Meirelles said.

"Today, there are no spending limits for the state," but outlays
must be cut to avoid tax increases next year, the finance minister
said in a press conference at the Sao Paulo State Federation of
Industries, or Fiesp, according to EFE News.

President Michel Temer's administration has proposed setting legal
limits on annual government spending based on the inflation rate
in the prior year, the report notes.

Congress has not yet debated the bill and Mr. Meirelles urged
lawmakers to speed up the process, the report relays.

"We'll have to change the structural dynamics of public spending,"
a change that will require "intense debate," the report quoted Mr.
Meirelles as saying.

In 1991, according to the finance minister, public spending was
equivalent to 10 percent of the gross domestic product (GDP),
soaring to 19 percent last year, the report notes.

Public spending is on an "unsustainable growth path" in Brazil,
the finance minister said, the report relays.

Mr. Meirelles said the administration was standing by its
projection that Brazil's economy, mired in a deep recession, would
resume growing in 2017, when GDP would expand by 1.6 percent, the
report says.

The finance minister was to travel to New York last Monday, to
join Temer at two gatherings later this week with U.S. investors
and business leaders organized by the Brazilian government during
the U.N. General Assembly, the report adds.

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


PETROLEO BRASILEIRO: Cuts Five-Year Investment Plan
---------------------------------------------------
RJR News reports that Brazil's state-owned energy firm Petrobras
has announced a 25 per cent cut in investment in the next five
years, as it battles to restructure its finances amidst a serious
crisis in the company.

Petrobras will lower investment to US$74 billion, and will stop
producing biofuels and fertilizers as well as selling off US$19.5
billion in assets, according to RJR News.

Petrobras is one of the world's biggest oil companies and
experienced strong growth in the past decade due to high commodity
prices and new discoveries, the report notes.

However, since 2014, the company has been hit by a massive
corruption scandal, low oil prices and high subsidies offered to
petrol consumers in Brazil, the report relays.

As reported in the Troubled Company Reporter - Latin America on
Aug. 1, 2016, S&P Global Ratings affirmed its 'B+' global scale
ratings on Petroleo Brasileiro S.A. - Petrobras (Petrobras),
including its corporate credit ratings and the ratings on the
senior unsecured notes issued through Petrobras International
Finance Co. and Petrobras Global Finance B.V.


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



ALPHA-BETA CONTINUUM: Commences Liquidation Proceedings
-------------------------------------------------------
On Aug. 22, 2016, the sole shareholder of Alpha-Beta Continuum SPV
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:

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


AVON INSURANCE: Placed Under Voluntary Wind-Up
----------------------------------------------
On Aug. 23, 2016, the members of Avon Insurance Company, Ltd.
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:

          Peter M. Boruta
          c/o Campbells
          Willow House, Floor 4, Cricket Square
          Grand Cayman KY1-1103
          Cayman Islands
          Telephone: +1 (345) 949 2648
          Facsimile: +1 (345) 949 8613


CLSA SUNRISE: Creditors' Proofs of Debt Due Oct. 3
--------------------------------------------------
The creditors of CLSA Sunrise Management Limited are required to
file their proofs of debt by Oct. 3, 2016, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Aug. 29, 2016.

The company's liquidator is:

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


COIF SPV 3/11: Commences Liquidation Proceedings
------------------------------------------------
On Aug. 22, 2016, the sole shareholder of COIF SPV 3/11, 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:

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


GOLDMAN SACHS QUANTITATIVE: Commences Liquidation Proceedings
-------------------------------------------------------------
On Aug. 22, 2016, the sole shareholder of Goldman Sachs
Quantitative Equity Country Selection Fund Institutional, 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:

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


GUOTAI JUNAN: Creditors' Proofs of Debt Due Oct. 3
--------------------------------------------------
The creditors of Guotai Junan Supreme Fund of Funds are required
to file their proofs of debt by Oct. 3, 2016, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on Aug. 29, 2016.

The company's liquidator is:

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


MASAMASO GROUP: Creditors' Proofs of Debt Due Oct. 2
----------------------------------------------------
The creditors of Masamaso Group Limited are required to file their
proofs of debt by Oct. 2, 2016, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Aug. 30, 2016.

The company's liquidator is:

          Maricorp Services Ltd.
          c/o Roger L. Nelson
          Telephone: (345) 949-9710
          P.O. Box 2075 Grand Cayman KY1-1105
          Cayman Islands


MBS INSURANCE: Placed Under Voluntary Wind-Up
---------------------------------------------
On Aug. 23, 2016, the members of MBS Insurance, Ltd. 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:

          Geoffrey M. Thomas
          c/o Campbells
          Willow House, Floor 4
          Cricket Square
          Grand Cayman KY1-1103
          Cayman Islands
          Telephone: +1 (345) 949 2648
          Facsimile: +1 (345) 949 8613


PETERSHILL US IM: Commences Liquidation Proceedings
---------------------------------------------------
On Aug. 22, 2016, the shareholders of Petershill US IM (Lopez)
Holdings 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:

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


PETERSHILL US (MANLEY): Commences Liquidation Proceedings
---------------------------------------------------------
On Aug. 22, 2016, the shareholders of Petershill US (Manley)
Holdings 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:

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


TAIWAN BROADBAND: Commences Liquidation Proceedings
---------------------------------------------------
On Aug. 25, 2016, the shareholders of Taiwan Broadband Holdings,
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:

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


U.S. HOUSING RECOVERY: Commences Liquidation Proceedings
--------------------------------------------------------
On Aug. 22, 2016, the sole shareholder of U.S. Housing Recovery
Fund Offshore, 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:

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


===============
C O L O M B I A
===============


EMPRESA DE TELECOM: Moody's Lowers CFR to Ba3; Outlook Negative
---------------------------------------------------------------
Moody's Investors Service downgraded Empresa de Telecom de Bogota
S.A. ESP's (ETB) corporate family and senior unsecured ratings to
Ba3 from Ba1.  At the same time, Moody's changed the outlook to
negative, from stable.

                         RATINGS RATIONALE

The ratings downgrade reflects our revision of expectations for
government support for ETB to moderate from strong, as the
Secretary of Finance of the Capital District is actively analyzing
the sale of a majority position in the company to a third-party
(to be determined).  In Moody's view, ETB has become a less
strategic asset for the City of Bogota.  Also incorporated in the
downgrade are ETB's weaker liquidity position and deteriorating
operating performance with limited room for recovery over the next
eighteen months.

Lower than expected revenues from fiber optics broadband and pay
TV business segments amid intense competition in combination with
a heavy investment phase have been weakening ETB's credit profile
since 2014.  Despite lower capital spending beginning in 2016, the
company's operating liquidity and cash position will remain tight
according to Moody's projections, with dependence on external
funding for working capital and capital spending needs.

The negative outlook on the ratings reflects ongoing high
execution risks associated with the integration and growth of
ETB's new business segments and the likely need for incremental
debt on a short-term basis in increasing amounts through 2018 to
fund working capital and capital spending needs.  Also, ongoing
negative free cash flow despite lower capital spending and intense
competitive pressures will weigh on performance, limiting
improvements in the company's credit profile over the next
eighteen to twenty-four months.

ETB's ratings reflect the application of Moody's joint default
rating methodology for government-related issuers (GRIs).  ETB's
rating combines: (i) ETB's underlying baseline credit assessment
(BCA) of b1, and (ii) the willingness and ability of the City of
Bogota to provide credit support to ETB in a distress scenario.
Accordingly, the model incorporates the expectation of a very high
default correlation, based on their shared revenue base (mostly
limited to the City of Bogota) and moderate financial and
operational linkage, and a moderate expected level of support by
the City of Bogota in the event of financial stress.

ETB's rating also incorporates the company's leading fixed line
and broadband market positions in the City of Bogota and its
comfortable debt maturity profile.  Simultaneously, it reflects
ETB's small size compared to global peers, limitations associated
with the company's new business model, and intense competition in
the mobile and pay TV segments from larger, better capitalized
operators.  The assessment furthermore integrates negative free
cash flow and weaker credit metrics, as adjusted by Moody's.

ETB's liquidity is tight, as the company is dependent on access to
short-term facilities to meet its operating needs.  As of June 30,
2016, the company had approximately COP 288 billion

(USD99 million) on hand, enough to cover short term debt
obligations totaling COP 46 billion (USD 16 million) over six
times.  Remaining outstanding debt totaling COP 530 billion (USD
182 million) matures until 2023.  Despite a comfortable maturity
profile, the company's cash balance has been decreasing steadily
in line with ongoing negative free cash flow.  While lower capital
spending going forward will support a more stable cash position,
the company has recently started funding ongoing operational and
capital investment needs with short-term debt.  The ratings could
be downgraded if ETB's credit profile or liquidity deteriorates
further.  Specifically, if sustained EBITDA margins approach 20%,
leverage increases above 4.0 times, its ratings could be
downgraded.

A ratings upgrade is unlikely given the company's reduced margins,
higher leverage and ongoing negative free cash flow in combination
with lower government support.  However, if ETB is able to combat
competitive pressures and successfully executes its new business
strategy while growing market shares and profitability, with
adjusted EBITDA margins above 30% and adjusted gross debt to free
cash flow above 6%, as adjusted by Moody's, a ratings upgrade
could be considered.  In order to consider a positive rating
action, Moody's would need to ascertain strong shareholder support
and a commitment to return to a more conservative financial
strategy.

Empresa de Telecomunicaciones de Bogota S.A. ESP ("ETB") is an
incumbent telecommunications service provider offering fixed and
mobile, broadband and pay TV services to Colombia's capital and
surrounding areas.  The company has leading fixed line and
broadband market positions in the City of Bogota, which account
for about 37% and 28% of total revenues, respectively.  In 2014,
the company expanded into the fiber optics broadband, pay TV, and
mobile sectors, which today account for another 19% of sales.
During the last twelve months ended June 30, 2016, ETB's revenues
reached USD 496 million (COP 1,513 billion).

The City of Bogota (Bogota, Distrito Capital - rated Baa2, stable)
is ETB's controlling shareholder with over 87% of the company's
capital stock.  Approximately 12% of the shares are free float,
publically traded on the Colombian stock exchange.  Currently, the
Secretary of Finance of the Capital District is actively analyzing
the sale of its participation in the company to a third-party (to
be determined).



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


AES ANDRES: Fitch Affirms 'B+' LT FC Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has affirmed AES Andres's Long-Term Foreign Currency
Issuer Default Rating (IDR) at 'B+' with a Positive Outlook. This
rating affects USD270 million of notes due 2026 with a rating of
'B+/RR4'. Additionally Fitch has revised the Rating Outlook to
Positive from Stable for the company's National Scale Long-Term
Rating of 'A+(dom)'.

Fitch has withdrawn its ratings on AES Andres Dominicana SPV, as
its debt was called last year and the entity is in the process of
dissolution.

KEY RATING DRIVERS

AES Andres B.V.'s (Andres) ratings reflect the Dominican
Republic's (DR) electricity sector's high dependency on transfers
from the central government to service their financial
obligations, a condition that links the credit quality of the
distribution companies and generation companies to that of the
sovereign. Low collections from end-users, high electricity losses
and subsidies have undermined distribution companies' cash
generation capacity, exacerbating generation companies' dependence
on public funds to cover the gap produced by insufficient payments
received from distribution companies. The ratings also consider
the companies' solid asset portfolio, strong balance sheet, and
well-structured purchase power agreements (PPAs).

The rating of the notes considers the combined operating assets of
Andres and Dominican Power Partners (DPP), which jointly guarantee
AES Andres's USD270 million notes due 2026. These notes are
attached to Empresa Generadora de Electricidad Itabo's USD100
million notes, also rated 'B+'. The notes were primarily intended
to repay a bridge taken to call similarly structured bonds last
year. Additional funds will be used for small capex projects and
to provide a working capital liquidity cushion. DPP currently
contributes only about 10% of combined Andres/DPP EBITDA. In 2017,
DPP is expected to complete a significant capacity expansion in
the form of conversion to a combined-cycle plant, substantially
increasing its proportional revenue and EBITDA contribution to the
combined results of the Note guarantors.

Sector's Dependence on Government Transfers

High energy distribution losses (above 30% in last five years),
low level of collections and important subsidies for end-users
have created a strong dependence on government transfers. This
dependence has been exacerbated by the country's exposure to
fluctuations in fossil-fuel prices and energy demand growth (3.4%
CAGR in 2009-2015). The regular delays in government transfers
pressure working capital needs of generators and add volatility to
their cash flows. This situation increases the risk of the sector,
especially at a time of rising fiscal vulnerabilities affecting
the Central Government's finances.

High-Quality Asset Base

AES Andres has the DR's most efficient power plant, and ranks
among the lowest-cost electricity generators in the country.
Andres' combined-cycle plant burns natural gas and is expected to
be fully dispatched as a base-load unit as long as the liquefied
natural gas (LNG) price is not more than 15% higher than the price
of imported fuel oil No. 6. Moreover, AES Andres operates the
country's sole LNG port, offering regasification, storage, and
transportation infrastructure. In the medium term, the company is
also looking to expand its transportation network and processing
capacity for its LNG operations. By 2017, the aggregate capacity
of AES Dominicana will increase by approximately 114MW as result
of the development of a combined cycle facility in DPP's power
plant. The construction of this project would start by the end of
the year.

Strong Credit Metrics

The combined credit metrics for Andres and DPP are strong for the
rating category. For LTM as of 1Q16, companies' total gross
leverage was 2.1x, while total net debt-to-EBITDA stood at 1.4x.
EBITDA of USD151 million (compared to USD206 million in 2014)
reflected major maintenance in the first half of 2015 (1H15) and
lower gas prices. Fitch expects that leverage will deteriorate
sharply this year reflecting the full drawdown on DPP's USD260
million credit facility and a USD100 million net debt increase
from Andres's issuance in 2Q16. Additional stoppage time as DPP's
combined cycle plant is brought online, as well as the effect of
lower gas prices on PPA indexation will makes material EBITDA
recovery in the medium term unlikely.

Cash Flow Volatility Persists

LTM Cash Flow from Operations (CFFO) for the two companies was
USD138 million at 1Q16, compared to USD218 million at year-end
2015. Accounts receivable days increased slightly to 52 days from
49 days reflecting some lag from government transfers. Although
these levels are much improved versus 2014 before the company
executed its factoring agreement on receivables, some
deterioration in working capital is in line with Fitch's medium
expectations. Fitch's assumptions factor in a return to 100 day-
level for accounts receivable over the next 12-18 months.
Thereafter, it could increase, barring a factoring agreement
similar to the one the company executed in 3Q15.

KEY ASSUMPTIONS

   -- Lower natural gas prices and revenues related to NG sales in
      the near term;

   -- Approximately 45 days of downtime at DPP in 2016 as the
      cycle is combined, with approximately 100 MW of additional
      capacity effective January 2017;

   -- 100% of net income to be distributed as dividends annually,
      as well as the release of previously retained earnings in
      the form of capital reductions

RATING SENSITIVITIES

A negative rating action to AES Andres would follow if the DR's
sovereign ratings are downgraded, if there is sustained
deterioration in the reliability of government transfers, and
financial performance deteriorates to the point of increasing the
combined Andres/DPP ratio of debt-to-EBITDA to 4.5x for a
sustained period.

A positive rating action could follow if the DR's sovereign
ratings are upgraded or if the electricity sector achieves
financial sustainability through proper policy implementation. On
the national scale, additional clarity about AES Andres's
contractual position after the government's coal-fired plant comes
online could lead to an upgrade.

LIQUIDITY

Andres and DPP have historically reported very strong combined
credit metrics for the rating category. Both companies have
financial profiles characterized by low to moderate leverage and
strong liquidity.

Combined LTM EBITDA as of 1Q16 totaled USD151 million (vs. USD 206
million at year-end 2014), with gross leverage of 2.1x and gross
interest coverage of 9.6x. The companies' strong liquidity
position is further supported by the 2026 bond, which extended
most of their maturities by eight years. Currently, the company
has a credit facility of 260m, of which approximately USD144
million had been drawn upon as of 1Q16. This loan is scheduled to
start amortizing in 4Q17 over nine equal quarterly payments.
However, Fitch also expects this loan to be replaced by long-dated
notes to be place in 4Q16.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

   AES Andres B.V.

   -- Foreign Currency Issuer Default Rating (IDR) at 'B+';

   -- National Scale Long Term Rating at 'A+(dom)';

   -- Senior unsecured notes due 2026 at 'B+/RR4'.

The international scale Rating Outlooks is Positive. The national
scale Outlook has been revised to Positive from Stable.

Fitch has withdrawn the following ratings:

   AES Andres Dominicana SPV

   -- Long-Term Foreign Currency IDR;

   -- Senior unsecured notes due 2020.


DOMINICAN REP: OPETUR Wants Ban on Dollar-Only Payments Repealed
----------------------------------------------------------------
Dominican Today reports that Receptive Tourism Operators
Association (OPETUR) president Elizabeth Tovar asked the Central
Bank to revoke its ban on veryphone terminals to pay only in
foreign currency, mostly dollars.

Ms. Tovar said the measure concerns her sector because she affirms
this raises the cost of tourism products and services offered to
foreigners, and harms the country's competitiveness as a
destination with regional competitors, according to Dominican
Today.  "There's great concern throughout the tourism sector," the
report quoted Ms. Tovar as saying.

Quoted by acento.com.do, Ms. Tovar said payments with cards in
foreign currencies via a veryphone, especially in dollars, are
absolutely transparent and verifiable by Internal Taxes (DGII),
the report relays.

"It's not about tax evasion, we are talking about operations that
are absolutely and transparently accounted because they are under
control of the DGII. It is simply a way to ensure that there isn't
a currency discrepancy between our receipts and payments which we
will have to make to the supplier," the business leader said, the
report notes.  "Such a measure "brings insecurity and less
competitive" tourism, as everywhere quotes and bookings are made
in dollars, not in local currency."

"Tourists traveling between the different national regions or
participate in excursions prefer to make payments in dollars or in
the currency of their country of origin. They also like to pay in
the currency they understand perfectly well and that brings no
additional charges when the charge in their country," Ms. Tovar
added, notes the report.

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.


EMPRESA GENERADORA: Fitch Affirms 'B+' LT Issuer Default Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) of Empresa Generadora de
Electricidad Itabo S.A. at 'B+' with a Positive Outlook. This
affirmation affects USD99.9 million notes due 2026 with a rating
of 'B+/RR4'. Fitch has also withdrawn the rating on the 2020 notes
issued by Itabo Dominicana SPV, which have been paid in full.

KEY RATING DRIVERS

Itabo's ratings reflect the electricity sector's high dependency
on transfers from the central government to service its financial
obligations, a condition that links the credit quality of the
distribution companies (EDEs) and generation companies to that of
the sovereign. Low collections from end-users, high electricity
losses and subsidies have undermined distribution companies' cash
generation capacity, exacerbating generation companies' dependence
on public funds to cover the gap produced by insufficient payments
received from distribution companies. Itabo's ratings also
consider its low cost generation portfolio, strong balance sheet
and well-structured PPAs, which contribute to strong cash flow
generation and bolster liquidity.

Sector's Dependence on Government Transfers

High energy distribution losses (above 30% in the last five
years), low level of collections and important subsidies for end
users have created a strong dependence on government transfers.
This dependence has been exacerbated by country's exposure to
fluctuations in fossil-fuel prices and a robust energy demand
growth (3.8% CAGR in 2009 - 2015). The regular delays in
government transfers pressure working capital needs of generators
and add volatility to their cash flows. This situation increases
the risk of the sector, especially at a time of rising fiscal
vulnerabilities affecting the Central Government's finances.

Working Capital Pressure & Lower Realized Prices

As of LTM ending 1Q16, Itabo generated USD98 million of CFFO,
compared to USD52 million at year-end 2014. In 3Q15, the company
sold USD100 million of accounts receivable through factoring
agreements, bringing receivable days down below one month. Fitch
expects receivable days to gradually return to historical levels
over the medium term. Moreoever, Itabo's PPA expires in the second
half of 2016. The low price environment could expose the company
to both spot sale vulnerability in the short term, and lower
negotiated PPAs through the medium term. The company is currently
preparing its bid for what Fitch expects to be between 200 and 210
MW of capacity contracts.

Low Cost Asset Portfolio

Itabo's ratings incorporate its strong competitive position as one
of the lower cost thermoelectric generators in the country,
ensuring the company's consistent dispatch of its generation
units. The company operates two low cost coal fired thermal
generating units and a third peaking plant that runs on Fuel Oil
#2 (San Lorenzo) and sells electricity to three distribution
companies in the country through long term U.S. dollar denominated
PPAs. The company expects to remain as a base load generator even
after a 700 MW coal generation project, sponsored by the
government, starts operations by 2017.

Adequate Credit Metrics

The company presents strong credit metrics for the rating
category. LTM leverage as of 1Q16stood at 1.1x from 1.4x at
December 2014, as debt decreased by almost USD50 million y-o-y. In
the same period, EBITDA fell to USD64 million from USD82 million,
while the EBITDA margin fell slightly to 33.7% from 36.9%. The
decrease reflects lower coal prices, to which prices on contract
sales are linked, and lower overall generation. In May 2016, the
company issued USD99.9 million of debt to repay the outstanding
bridge loan used to call the company's earlier bond due in 2020.
Fitch expects continued softness in in EBITDA and the moderate
debt increase to result in leverage of around 1.5x through the
medium term.

KEY ASSUMPTIONS

   -- No material unplanned stoppages in 2016; possibility of
      continued climatological impacts on an annual basis;

   -- Demand growth of approximately 2%;

   -- Fuel prices to remain low in the near to medium term.

RATING SENSITIVITIES

A negative rating action would follow if the Dominican Republic's
sovereign ratings are downgraded, if there is sustained
deterioration in the reliability of government transfers, and if
financial performance deteriorates to the point of increasing the
ratio of Debt-to-EBITDA to 4.5x for a sustained amount of time.

A positive rating action could follow if the Dominican Republic 's
sovereign ratings are upgraded or if the electricity sector
achieves financial sustainability through proper policy
implementation.

LIQUIDITY

As of 1Q16, the company had total debt of approximately USD70
million, roughly matching its 2015 LTM EBTIDA of 69 64 million.
Fitch expects that lower coal prices (to which contract prices are
indexed) coinciding with the expiration of its existing PPAs to
limit medium term growth recovery prospects in Itabo's EBITDA.
Gross leverage was 1.0x1x, an improvement from 1.4x in 2014 that
reflects, reflecting Itabo's overall debt reduction from USD 114
million in 2014. In May 2016, the company issued attached 10-year
notes with its sister companies AES Andres and DPP to repay
existing debt and extend its maturity profile. The tranche
assigned to Itabo totaled USD99.9 million. Fitch expects that
lower coal prices (to which contract prices are indexed)
coinciding with the expiration of its existing PPAs to limit
medium term growth recovery prospects in Itabo's EBITDA.

The company currently holds approximately two thirds of its cash
in USD, and maintains an undrawn USD45 million committed credit
line with Scotiabank, maturing in 1Q17.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

   Empresa Generadora de Electricidad Itabo

   -- Foreign Currency Long-Term IDR at 'B+';

   -- Local Currency Long-Term IDR at 'B+';

   -- Senior unsecured notes due 2026 at 'B+/RR4'.

The Rating Outlook is Positive.

Fitch has withdrawn the following rating:

   Itabo Dominicana SPV

   -- Senior unsecured notes due 2020.


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


EUROMODAS INC: Oct. 12 Joint Plan & Disclosures Approval Hearing
-------------------------------------------------------------
Judge Brian K. Tester of the U.S. Bankruptcy Court for the
District of Puerto Rico on August 31, 2016, conditionally approved
the disclosure statement explaining Euromodas, Inc.'s plan, and
scheduled a hearing to consider final approval of the Disclosure
Statement and confirmation of the Plan and any objections for
October 12, 2016, at 9:00 A.M.

The Troubled Company Reporter previously reported that general
unsecured creditors will get 5% of their claims under the
company's proposed plan to exit Chapter 11 protection.

Under the restructuring plan, holders of general unsecured claims
of $50,000 or less, will be paid 5% of their claims on the
effective date of the plan.  These creditors will receive cash
payments.

Meanwhile, general unsecured creditors with claims over $50,000,
will be paid 5% of their claims through 60 equal consecutive
monthly installments of $467, commencing on the effective date of
the plan and continuing on the 30th day of the subsequent 59
months.

General unsecured creditors assert a total of $1.28 million.

The Debtor will pay creditors from the cash resulting from its
operations, according to the disclosure statement filed with the
U.S. Bankruptcy Court for the District of Puerto Rico.

A copy of the disclosure statement is available for free at
https://is.gd/b0fCkK

Acceptances or rejections of the Plan may be filed in writing by
the holders of all claims on/or before 10 days prior to the date
of the hearing on confirmation of the Plan.  Any objection to the
final approval of the Disclosure Statement and/or the confirmation
of the Plan shall be filed on/or before 10 days prior to the date
of the hearing on confirmation of the Plan.

At the confirmation hearing the Court will conclude the estimated
date for "substantial consummation" of the Plan as defined in
Section 1101(2) of the Bankruptcy Code. The debtor in possession
or moving party must submit to the Court the information necessary
to enter a final decree.

                 About Euromodas Inc.

Euromodas, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. P.R. Case No. 15-09174) on November 19,
2015.  The petition was signed by Juan Carlos Castiel Diaz,
president.

At the time of the filing, the Debtor estimated its assets at
$100,000 to $500,000 and debts at $1 million to $10 million.

The Debtor is represented by Enrique M. Almeida-Bernal, Esq., at
Almeida & Davila, PSC, in San Juan, Puerto Rico.


JOSE LUIS CRESPO: Hearing on Disclosures Set For Oct. 7
-------------------------------------------------------
The Hon. Edward A. Godoy of the U.S. Bankruptcy Court for the
District of Puerto Rico has scheduled for Oct. 7, 2016, at 9:30
a.m. the hearing to consider Jose Luis Crespo Lorenzo's disclosure
statement describing the Debtor's Chapter 11 plan.

Objections to the Disclosure Statement must be filed not less than
14 days prior to the hearing.

Jose Luis Crespo Lorenzo filed for Chapter 11 bankruptcy
protection (Bankr. D.P.R. Case No. 14-04720).  The Debtor is
represented by Jose Ramon Cintron.


LIDA BAUCAGE PEREZ: Unsecureds to Get 10% Under Ch. 11 Plan
-------------------------------------------------------
Lida Baucage Perez filed a disclosure statement proposing 10%
recovery for holders of general unsecured claims.

Under the Plan, at the effective date holders of Class 3 - General
Unsecured Claims will receive a lump-sum payment in the amount of
$10,702.38.  The Debtor will pay $600.00 monthly pro-rata basis
for a five-year period among Class 3 and Class 4 - General
Unsecured Claim (initially intended to be secured).  With the
current claims and allowed amounts by the Plan, the Class 3 will
receive $128.11 monthly for the general unsecured creditors in a 5
year period.

Based on the current allowed amounts, each claim holder in Class 3
will receive approximately 10% of the allowed amount.

Class 4 will receive a lump-sum payment in the amount of
$39,421.36. With the current claims and allowed amounts by the
Plan, the Class 4 will receive $471.89 monthly for the general
unsecured creditors in a five-year period.  The claim holder under
this class will receive approximately 10% of the allowed amount.

Payments and distributions under the Plan will be funded by the
cash flow from future income of the Debtor and from the proceeds
of the sale of a real property.

A full-text copy of the Disclosure Statement dated Aug. 31, 2016,
is available at http://bankrupt.com/misc/15-04099-122.pdf

Lida Baucage Perez, a general physician practitioner, initially
filed a Chapter 13 petition (Bankr. D.P.R. Case No. 15-04099), but
was forced to file for conversion to a Chapter 11 case since the
amount of unsecured debts surpassed the limits set forth by
Section 109(e) of the Bankruptcy Code.

The Debtor is represented by Carlos Alberto Ruiz Law Office, CSP.


PASO GAS: Hires Rivera-Velez & Santiago as Counsel
--------------------------------------------------
Paso Gas Corp. seeks authorization from the U.S. Bankruptcy for
District of Puerto Rico to employ Rivera-Velez & Santiago, LLC as
counsel.

The Debtor has retained Rivera-Velez & Santiago as its counsel in
these proceedings subject to the approval of the Bankruptcy Court
in accordance to Rule 2014 of the Federal Rules of Bankruptcy
Procedure, and the Arrangement was on the basis of a $8,000
retainer.

Rivera-Velez & Santiago will be paid at these hourly rates:

       Manolo R. Santiago Lopez      $150
       William Rivera Velez          $150
       Paralegal                     $75

Rivera-Velez & Santiago will also be reimbursed for reasonable
out-of-pocket expenses incurred.

Manolo R. Santiago Lopez, partner of Rivera-Velez & Santiago,
assured the Court that 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 Debtor and its estates.

Rivera-Velez & Santiago can be reached at:

       Manolo R. Santiago Lopez, Esq.
       RIVERA-VELEZ & SANTIAGO, LLC
       Vela St. # 9, Suite 100
       San Juan, PR 00918
       Tel: (787) 691-5903
       E-mail: lcdo.santiago@tuquiebrapr.com

                      About Paso Gas Corporation

Paso Gas Corporation, based in Manati, P.R., filed a Chapter 11
petition (Bankr. D.P.R. Case No. 16-06843) on August 29, 2016.
Manolo R Santiago, Esq., at Rivera-Velez & Santiago LLC, serves as
bankruptcy counsel.

In its petition, the Debtor indicated $480,489 in assets and $1.29
million in liabilities. The petition was signed by Nestor Algarin
Lopez, president.


SAN JUAN OIL: Nov. 18 Disclosure Statement Hearing Set
------------------------------------------------------
A hearing on approval of the disclosure statement explaining San
Juan Oil Company, Inc.'s plan is scheduled for November 18, 2016
at 9:30 A.M., before Judge Edward A. Godoy of the U.S. Bankruptcy
Court for the District of Puerto Rico.

Objections to the form and content of the disclosure statement
should be in writing and filed with the court and served upon
parties in interest at their address of record not less than 14
days prior to the hearing. Objections not timely filed and served
will be deemed waived.

San Juan Oil Company Inc. filed a Chapter 11 petition (Bankr.
D.P.R. Case No. 15-09593) on December 1, 2015, and is represented
by Wigberto Lugo Mender, Esq., in Guaynabo, Puerto Rico.  At the
time of filing, the Debtor had estimated assets of $1 million to
$10 million and estimated liabilities of $10 million to $50
million.  The petition was signed by Nestor del Castillo-
Hernandez, president.  A list of the Debtor's 12 largest unsecured
creditors is available for free at http://bankrupt.com/misc/prb15-
09593.pdf


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


PETROLEOS DE VENEZUELA: Looks to Swap $7 Billion in Upcoming Debt
-----------------------------------------------------------------
Kejal Vyas at The Wall Street Journal reports that Petroleos de
Venezuela SA announced a debt-swap proposal seeking to push back
$7 billion in upcoming bond payments as the cash-strapped state
oil company reels amid a debilitating economic crisis.

PdVSA, which is the lifeblood of Venezuela's economy, wants
investors to exchange bonds coming due in October and November of
this year as well as April and November 2017, for bonds maturing
in 2020, Oil Minister Eulogio del Pino said in comments carried on
state television, according to The Wall Street Journal.

The new securities will have annual payments and will be
guaranteed by shares of PdVSA's U.S.-based unit, Citgo Petroleum
Corp., the minister said, calling the proposal "quite attractive,"
the report notes.

The deal, however, is likely to be a tough sell to debt markets,
where investors already charge Venezuela the highest borrowing
rates in the developing world -- well above war-torn Ukraine and
Iraq, the report relays.

Default fears have risen as Venezuela's oil-dependent economy
grapples with low crude prices and state finances that were left
in shambles after more than a decade of profligate spending under
the ruling Socialist Party, WSJ says.

Short on hard currency, President Nicolas Maduro's administration
is struggling to pay for imports of basics like food and medicine
while crude output has also fallen sharply this year due to
PdVSA's inability to finance industry upkeep, the report notes.
The government has been lobbying fellow members of the
Organization of the Petroleum Exporting Countries to work together
to boost prices, the report relays.

"While that happens we're looking for financial relief from the
burden of those bond payments," Mr. del Pino, who doubles as
PdVSA's chief executive, said, the report relays.

The debt swap has positive ratings from credit-ratings firms, said
Mr. del Pino, urging bondholders to participate in the voluntary
exchange, the report notes.

Despite a severe political and social crisis in recent years,
Venezuela has so far honored its bond payments. Nevertheless, the
country's financial situation continues to deteriorate with
international dollar reserves at less than $12 billion, a 13-year
low, the report says.

Given the perceived risks, some of Venezuela's bonds trade at
yields north of 30%, according to J.P. Morgan's Emerging Market
Bond Index Global, the report relays.

The key question "is whether investors would be motivated to
extend maturity into the illiquidity and insolvency stress of the
Maduro administration," Siobhan Morden, Latin American debt
strategist at Nomura Securities, said in a recent note to clients,
the report notes.

Debt swaps are typically only successful when a country's
creditworthiness is improving, she noted.

As reported in the Troubled Company Reporter-Latin America on
March 10, 2016, Moody's Investors Service changed the outlook on
Petroleos de Venezuela (PDVSA)'s ratings to negative from stable.
Moody's also affirmed PDVSA's Caa3 issuer rating and lowered the
company's baseline credit assessment (BCA) to caa3 from caa1.
These rating actions follow Moody's decision on March 4, 2016, to
change the outlook on the Government of Venezuela's bond ratings
to negative from stable.


                            ***********


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 commercial 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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