TCRLA_Public/161228.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

         Wednesday, December 28, 2016, Vol. 17, No. 257


                            Headlines



A N T I G U A  &  B A R B U D A

RUBIS CARIBBEAN: Leave If You Want But No Price Hikes, PM Says


B R A Z I L

OI SA: Creditor Group Proposes Debt Swap, $11BB Investment Plan
RIO OIL: Fitch Lowers Series 2014 Notes Rating to CCC
* BRAZIL: Fitch Says Bank Moves Won't Lift Credit in Short Term


C A Y M A N  I S L A N D S

BLUE SKY: Commences Liquidation Proceedings
BLUE SKY (GENERAL PARTNER): Commences Liquidation Proceedings
BREVAN HOWARD: Creditors' Proofs of Debt Due Dec. 29
BREVAN HOWARD MASTER: Creditors' Proofs of Debt Due Dec. 29
DIVINE HORSE: Creditors' Proofs of Debt Due Jan. 3

GALLO INV: Placed Under Voluntary Wind-Up
MAPLEHURST HOLDINGS: Creditors' Proofs of Debt Due Jan. 5
MYO CAPITAL: Commences Liquidation Proceedings
OHA CAPITAL (OFFSHORE): Commences Liquidation Proceedings
OHA CAPITAL (ONSHORE): Commences Liquidation Proceedings

POPHAM LTD: Commences Liquidation Proceedings
ROBUS CAPITAL: Creditors' Proofs of Debt Due Jan. 5
SEMPER ACTIVE: Commences Liquidation Proceedings


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Slumped Purchasing Power Hurt Christmas Sales


M E X I C O

GF SAN MEXICO: Fitch Rates $500MM Perpetual AT1 Notes 'BB(EXP)'
MEXICO: Loosening of Gasoline Prices Draws Heat


P U E R T O    R I C O

CRISTALEX INC: Seeks to Hire Falcon-Sanchez as Accountant
MARJASU CORP: Hearing on Disclosures Set For Feb. 8
MOTEL TROPICAL: IRS to Be Paid in $419 Monthly Payments, at 3.25%
VASSALLO INT'L: Hires Luis Carrasquillo as Financial Consultant
VASSALLO INT'L: Hires Charles Cuprill as Legal Counsel


V E N E Z U E L A

VENEZUELA: Voids Popular Form of Currency, Setting Off Panic


                            - - - - -



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


RUBIS CARIBBEAN: Leave If You Want But No Price Hikes, PM Says
--------------------------------------------------------------
Caribbean360.com reports that amid threats by Rubis to shut down
its operations in Antigua & Barbuda, Prime Minister Gaston Browne
tells the French-owned gas company to leave the island if it wants
but he won't okay price hikes.

Rubis Caribbean has been at odds with the Government since the
Browne administration rejected a move by the company to increase
its profit margins, according to Caribbean360.com.

"If we have investors -- so-called foreign investors -- who are
pursuing their own profit motives at the detriment of our people,
then it is time for them to leave," he said on the state-owned ABS
television, the report notes.

The report relays that the Prime Minister explained Rubis had made
a proposal to increase its wholesale fuel margins in the past, but
he refused to entertain the idea since it would affect consumers
and other local businesses.

"We recognize at the heart of this issue is the fact they have
been pushing my government to increase the margins, and clearly it
will be unacceptable for us to allow them to increase the margins
and then pass it on to consumers and increase petrol prices," Mr.
Browne added, the report notes.

The company is, however, standing its ground. Chief executive
officer of Rubis Caribbean Maurico Nicholls has argued that
margins have been frozen in Antigua and Barbuda for the last 27
years and this was hurting the company's bottom line, the report
relays.

"A business cannot survive on margins that are frozen forever
where the cost of doing business is rising every year," he told
the Antigua Observer.

Adamant that the wholesale margins had not kept pace with
inflation rates or the current margins in neighboring Eastern
Caribbean countries, Nicholls maintains the company's demands were
well justified, the report notes.

"All we are asking the government and have been asking for years
is that the margins are brought in line with the accumulated
inflation with the 27-year period and in line with average
wholesale margins in the rest of the Eastern Caribbean countries,"
the CEO said, the report relays.

The company has since issued letters to gas station owners
indicating it would not be renewing their leases in the New Year,
the report notes.

One operator has filed a legal challenge against Rubis to
renegotiate a contract, the report adds.

Rubis is a France-based international company specialized in the
storage, distribution and sale of petroleum, liquefied petroleum
gas, food and chemical products.



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


OI SA: Creditor Group Proposes Debt Swap, $11BB Investment Plan
---------------------------------------------------------------
Rodrigo Viga Gaier at Reuters reports that a group led by
creditors and Egyptian billionaire Naguib Sawiris unveiled an
alternative restructuring proposal for debt-laden Brazilian phone
carrier Oi SA that contemplates BRL37 billion ($11 billion) in
investments over five years in exchange for a 95 percent stake.

The group of bondholders represented by Moelis & Co and Sawiris
told Oi they would also raise $1.25 billion in new capital and
take immediate control of the carrier through a debt-for-equity
swap, according to Reuters.  Oi filed in June for Brazil's largest
ever bankruptcy protection, the report notes.

In a statement, the group said Sawiris and his company Orascom TMT
Investments SARL have already committed to subscribe $250 million
worth of new Oi shares in an offering, with bondholders committing
$750 million, the report notes.  The proposal calls for a debt-
for-equity swap in which BRL24.82 billion worth of bond debt would
be exchanged for a 95 percent stake, the report relays.

The remainder of Oi's bond debt would be exchanged for new
securities.

The proposal has the potential of reigniting a rift between
creditors and shareholders including largest stakeholder Pharol
SGPS SA, because of the high degree of dilution that the debt-for-
equity swap entails, analysts said, the report discloses.

The government has threatened to intervene if the disputes
continue, the report says.

Under terms of the proposal, Oi's existing shareholders would be
given the chance to subscribe up to 50 percent of the new stock on
offer, with retail investors having the chance of taking up to 10
percent of the offering, the report notes.

Bloomberg News first reported terms of the Moelis-Sawiris proposal
on Dec. 14, the report adds.

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.


RIO OIL: Fitch Lowers Series 2014 Notes Rating to CCC
-----------------------------------------------------
Fitch Ratings has downgraded the series 2014 notes issued by Rio
Oil Finance Trust as follows:

-- USD2 billion series 2014-1 notes to 'CCC' from 'B';

-- BRL2.4 billion series 2014-2 special indebtedness to
    'CCCsf(bra)' from 'BB+ sf (bra)';

-- USD1.1 billion series 2014-3 notes to 'CCC' from 'B';

Fitch's ratings on the notes address timely payment of interest
and principal. Interest payments reflect the amended cash flow
distributions and principal payments consider all monthly early
principal amortization payments received during a given quarter.

The issuances are backed by royalty flows and special
participations owed by oil concessionaires, predominantly operated
by Petroleo Brasileiro S.A. (Petrobras), to the government of the
State of Rio de Janeiro (RJS). The State of Rio de Janeiro
assigned 100% of these flows to RioPrevidencia (RP), the state's
pension fund, and RP sold these rights to Rio Oil Finance Trust,
the issuer.

The downgrade of the notes reflects a significant reduction in
special participation cash flows to the transaction in fourth
quarter 2016 (4Q16) resulting from Petrobras' increase in
deductible expenses relating to the balance of exploration
investments. This considerably diminishes special participation
collections for the current collection period, and near-term
liquidity will be stressed, as a large federal debt payment is
expected in 1Q17. Total collections may be insufficient to cover
debt service on the notes as early as April 2017.

KEY RATING DRIVERS

Reduced Collections and Possible Shortfall: Reduced special
participation collections ahead of a large federal debt payment
stress near-term liquidity, and may cause total collections to be
insufficient to cover debt service on the notes.

Potential Reprieve for RJS: An amendment to Law 9496 designed to
offer grace periods for payments due by the states to the federal
government could reduce future payments owed by RJS to the federal
government and increase cash flow available to the transaction to
pay debt service. Timing of a potential reprieve is uncertain.

RATING SENSITIVITIES

Fitch will continue to monitor the potential for ongoing set-offs
and their potential impact on the transaction's ability to meet
timely debt service.

The ratings are capped by the credit quality of Petrobras, the
main obligor generating cash flows to support the transaction, and
to the sovereign rating and country ceiling assigned to Brazil.
The transaction is exposed to oil price and production volume
risks. Declines in prices or production levels significantly below
expectations may trigger downgrades. Additionally, the ratings are
sensitive to the rating of Banco do Brasil as a direct
counterparty to the transaction.


* BRAZIL: Fitch Says Bank Moves Won't Lift Credit in Short Term
----------------------------------------------------------------
Policy measures announced this week by the Brazilian central bank
(BCB) designed to reduce credit costs and improve efficiencies in
the financial system are unlikely to provide a major boost to
credit in the short term, according to Fitch Ratings. However, the
policies may have positive effects in the medium term.

Fitch believes that macroeconomic variables are likely to remain
far more relevant for credit growth and banking sector
profitability, although the proposals signal a commitment to
bolstering institutional capacity and enhancing the regulatory
framework, which could be important steps toward aligning Brazil
to global best practice.

The measures were announced in a press conference by the BCB
president and fell under broad objectives that include reducing
borrowing costs, improving the efficiency of the local financial
system, strengthening legislation pertaining to financial
infrastructure and enhancing financial education. It is difficult
to determine the precise effects of these objectives on individual
banks and the banking system as there has not been significant
detail released on the specific policies that will be part of the
plan. The legislative and policy changes that will be required to
achieve these objectives also remain uncertain and subject to
political initiative.

However, Fitch believes that the objectives are broadly positive
for improving the institutional capacity of regulators and
development of the financial system. BCB mentioned measures such
as improving credit scoring systems and electronic receivables
controls, allowing for collateralized long-term funding
instruments, segmenting financial institutional regulation based
on size and type of institution, regulation of fintech companies
and adding tools to the central bank to better control liquidity
and monetary transmission. Altogether, these could be important
reforms to providing the banking system with a more robust
operational and legal environment.

The BCB's initiatives are part of a broader plan by the Brazilian
government to reduce interest rate spreads and ease consumer
credit conditions locally. In recent years, this has included
loosening regulations on payroll lending by lengthening maximum
tenors and raising the maximums allowed. This month, the National
Congress approved a provisional measure that would allow private
sector employees to put up to 10% of their balance in a Funds for
Length of Service account (Fundo de Garantia do Tempo de Servico)
as a guarantee for payroll discount loans. Over the past few
years, changes in the legal framework of residential lending
guarantees to enhance lenders' security with 'fiduciary
alienation,' where borrowers only take possession of a property
when they have paid off the loan, is another example of a reform
aimed at increasing banks' appetite for different forms of
consumer lending.

Fitch maintains that these measures could help narrow spreads and
rates on consumer lending over the medium to long term. However,
they are unlikely to have a significant short-term effect on
overall system lending. Also, Fitch believes that material
negative implications on profitability, as well as ratings
implications, are unlikely over the foreseeable future as a result
of these initiatives.

Macroeconomic variables should remain more relevant for banking
sector growth and margins in 2017. Consumer credit demand remains
low while household debt continues to increase. In addition to the
challenging external environment, domestic high unemployment and
protracted low economic growth will continue to weigh on consumer
and investor confidence. There is potential for faster credit
growth following the marked contractions in total credit to GDP
since 2015 and as the economy stabilizes. However, Fitch expects
banks to remain cautious and maintain tight underwriting
standards.

Fitch maintains a negative sector outlook for Brazilian banks in
2017.



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


BLUE SKY: Commences Liquidation Proceedings
-------------------------------------------
On Nov. 23, 2016, the sole shareholder of Blue Sky World Inc
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:

          David Ridley
          c/o Jasmine Amaria
          Walkers
          6 Gracechurch Street
          London EC3V 0AT
          Telephone: +44 2072204970


BLUE SKY (GENERAL PARTNER): Commences Liquidation Proceedings
-------------------------------------------------------------
On Nov. 21, 2016, the sole shareholder of Blue Sky World (General
Partner) Inc. 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:

          David Ridley
          Walkers
          6 Gracechurch Street
          London EC3V 0AT
          Telephone: +44 2072204970


BREVAN HOWARD: Creditors' Proofs of Debt Due Dec. 29
----------------------------------------------------
The creditors of Brevan Howard Multi-Manager Fund Limited are
required to file their proofs of debt by Dec. 29, 2016, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on Nov. 22, 2016.

The company's liquidators are:

          Jane Fleming
          Jean Ebanks
          P.O. Box 30464 Grand Cayman KY1-1202
          Cayman Islands
          Telephone: (345) 945-2187
          Facsimile: (345) 945-2197


BREVAN HOWARD MASTER: Creditors' Proofs of Debt Due Dec. 29
-----------------------------------------------------------
The creditors of Brevan Howard Multi-Manager Master Fund Limited
are required to file their proofs of debt by Dec. 29, 2016, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on Nov. 22, 2016.

The company's liquidators are:

          Jane Fleming
          Jean Ebanks
          P.O. Box 30464 Grand Cayman KY1-1202
          Cayman Islands
          Telephone: (345) 945-2187
          Facsimile: (345) 945-2197


DIVINE HORSE: Creditors' Proofs of Debt Due Jan. 3
--------------------------------------------------
The creditors of Divine Horse Holding Inc. are required to file
their proofs of debt by Jan. 3, 2017, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 23, 2016.

The company's liquidators are:

          Maricorp Services Ltd.
          Roger L. Nelson
          #31 The Strand, 46 Canal Point Drive
          P.O. Box 2075
          Cayman Islands
          Telephone: (345) 949-9710


GALLO INV: Placed Under Voluntary Wind-Up
-----------------------------------------
The sole shareholder of Gallo INV Global Fund, SPC resolved to
voluntarily wind up the company's operations on Nov. 4, 2016.

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

The company's liquidator is:

          Fabiana Brayn
          c/o Ben Gillooly
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9009
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


MAPLEHURST HOLDINGS: Creditors' Proofs of Debt Due Jan. 5
---------------------------------------------------------
The creditors of Maplehurst Holdings Ltd. are required to file
their proofs of debt by Jan. 5, 2017, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 22, 2016.

The company's liquidator is:

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


MYO CAPITAL: Commences Liquidation Proceedings
----------------------------------------------
The sole shareholder of MYO Capital Fund Limited resolved to
voluntarily liquidate the company's business on Nov. 22, 2016.

Only creditors who were able to file their proofs of debt by
Dec. 27, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Justin John Ferrier
          11B Dublin Road
          Singapore, 239801


OHA CAPITAL (OFFSHORE): Commences Liquidation Proceedings
----------------------------------------------------------
The sole shareholder of Oha Capital Solutions Financing
(Offshore), Ltd. resolved to voluntarily liquidate the company's
business on Nov. 22, 2016.

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


OHA CAPITAL (ONSHORE): Commences Liquidation Proceedings
--------------------------------------------------------
The sole shareholder of OHA Capital Solutions Financing (Onshore),
Ltd. resolved to voluntarily liquidate the company's business on
Nov. 22, 2016.

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


POPHAM LTD: Commences Liquidation Proceedings
---------------------------------------------
The shareholders of Popham, Ltd. resolved to voluntarily liquidate
the company's business on Nov. 18, 2016.

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

The company's liquidator is:

          Shailini Rao
          399 Park Avenue, 10th Floor
          New York, New York 10022
          United States of America
          Telephone: +1 (212) 756 5300


ROBUS CAPITAL: Creditors' Proofs of Debt Due Jan. 5
---------------------------------------------------
The creditors of Robus Capital Management GP, Ltd. are required to
file their proofs of debt by Jan. 5, 2017, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 22, 2016.

The company's liquidator is:

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


SEMPER ACTIVE: Commences Liquidation Proceedings
------------------------------------------------
The sole shareholder of Semper Active MBS Fund, Ltd. resolved to
voluntarily liquidate the company's business on Nov. 15, 2016.

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



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


DOMINICAN REPUBLIC: Slumped Purchasing Power Hurt Christmas Sales
------------------------------------------------------------
Dominican Today reports that Dominican National Retail Council
(ConPer) President Antonio Cruz Rojas said Christmas sales fell
because of the "systematic decline in purchasing power of
families."

Mr. Rojas said since the 2012 tax reform, families have been
losing their ability to meet their needs, having to pay more taxes
and still stagnant wages, the report notes.

Mr. Cruz said despite the many people in the streets, businesses
failed in their the estimated sales, the report relays.  "Most
people used their 13th salary (Christmas bonus) to pay debts and
simply bought the basics to spend Christmas Eve," the report
notes.

The business leader said every year the retail sales decline due
to their losing purchasing power, the report says.  "In 2013 was a
loss of 8%, 11% in 2014, 13% in 2015 and 16% this year," he added.

                        Improvement Expected

As is tradition, retailers voice their complaint of slumping sales
each year, parroting that last year was better, the report notes.

But as it's also a tradition the retailers still hope for more
dynamism in yearend sales, especially toys and other items for
children to mark Three Kings Day (Epiphany), the report adds.

As reported in the Troubled Company Reporter-Latin America on
Nov. 22, 2016, Fitch Ratings has taken the following rating
actions on the Dominican Republic:

   -- Long-Term Foreign Currency Issuer Default Rating (IDR)
      upgraded to 'BB-' from 'B+'; assigned Stable Outlook;

   -- Long-Term Local Currency IDR upgraded to 'BB-' from 'B+';
      assigned Stable Outlook;

   -- Senior unsecured Foreign and Local Currency bonds upgraded
      to 'BB-' from 'B+';

   -- Short-Term Foreign Currency IDR affirmed at 'B';

   -- Short-Term Local Currency IDR affirmed at 'B'.



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


GF SAN MEXICO: Fitch Rates $500MM Perpetual AT1 Notes 'BB(EXP)'
---------------------------------------------------------------
Fitch Ratings has assigned ratings to Grupo Financiero Santander
Mexico S.A.B. de C.V. (GF SAN Mexico) including its Viability
Rating (VR) at 'bbb+', Long-term Foreign Currency Issuer Default
Ratings (IDRs) at 'BBB+', and Short-term Foreign- and Local-
Currency Rating at 'F2'. Fitch has also assigned a Support Rating
of '2' and National Long- and Short-term ratings of
'AAA(mex)/F1+(mex). The Rating Outlook for the long term ratings
is Stable.

At the same time, Fitch assigned GF SAN Mexico's upcoming issue up
to USD500 million perpetual subordinated non-preferred contingent
convertible capital notes an expected long-term rating of
'BB(EXP)'. The final rating is contingent upon the receipt of
final documents conforming to information already received.

GF SAN Mexico will use the proceeds of the offering to acquire
from Banco Santander (Mexico), S.A., Institucion de Banca
Multiple, Grupo Financiero Santander Mexico (SAN Mexico) a
perpetual subordinated non-preferred contingent capital note in
the same principal amount and with substantially the same terms
and conditions.

The notes are perpetual, but can be redeemed at the option of the
issuer on the fifth anniversary of the issue date and every
interest payment date thereafter, if it maintains its capital
ratios in accordance with regulatory requirements and after
receiving regulatory approval. SAN Mexico's ultimate parent,
Spain's Banco Santander, S.A.'s (SAN; 'A-'/Stable Outlook) intends
to buy at least 75% of the issuance.

KEY RATING DRIVERS
VR
GF SAN Mexico's VR reflects the financial performance of its main
operating subsidiary, SAN Mexico ('BBB+'/Stable Outlook), in which
it holds a 99.9% equity stake. SAN Mexico's assets represented
99.96% of the group's consolidated assets at the end of September,
2016.

IDRs AND NATIONAL SCALE RATINGS
GF SAN Mexico's 'BBB+' IDRs and 'AAA(mex)/F1+(mex)' National Scale
ratings are driven by its standalone profile as reflected in its
VR. Nevertheless, the group's IDRs are currently at the same level
as would be derived from the institutional support approach, given
that GF SAN Mexico is viewed as a strategically important entity
for SAN.

SUPPORT RATING
GF SAN Mexico's Support Rating of '2' reflects the view that there
is high probability of support to GF SAN Mexico from Spain's SAN,
if needed given the strategic role of the Mexican subsidiary for
its parent.

SUBORDINATED DEBT
The planned notes qualify as additional Tier 1 (AT1) securities
for regulatory capital purposes. Coupon payments may be omitted at
any time at the issuer's full discretion; additionally, interest
due on the notes will be automatically cancelled if the bank's
Common Equity Tier 1 (CET1), Tier 1 and Total Regulatory Capital
Ratios fall below 7%, 8.5% and 10.5%, respectively, plus
additional capital requirements for domestic systemically
important banks (D-SIBs) and countercyclical buffers. The notes
have additional loss absorption features in the form of a
conversion to common equity trigger; partial or full conversion
would occur if, among others, GF SAN Mexico's Common Equity Tier 1
Regulatory Capital Ratio falls to or below, 5.125%.

According to Fitch's criteria, these instruments are typically
rated five notches below the anchor rating, GF SAN Mexico's VR of
'bbb+'. The securities are notched twice for loss severity to
reflect the notes' deep subordination - only ordinary equity ranks
below the notes. The three notches for incremental non-performance
risk reflect the notes' non-cumulative cancellable coupons, which
Fitch views as the most easily activated form of loss absorption.
However, Fitch considers that parental support partially mitigates
non-performance risk and hence the GF SAN Mexico's AT1 securities
are rated at the level that would be assigned to equivalent
securities issued by its parent. Fitch believes that the proposed
changes in the bank's capital structure further enhance the
mitigation effect of Spain's SAN's support toward these
securities.

In May 2016, the local regulator announced SAN Mexico was required
to constitute an additional capital supplement of 1.2% for being a
D-SIB; it also imposed a countercyclical capital supplement that
has not been defined yet. The D-SIB capital supplement will be
required within a four-year period starting Dec. 31, 2016.
Regulatory capital requirements in 2019 are expected to be 8.2%,
9.7% and 11.7% for its CET1, Tier 1 and total regulatory capital
ratios, respectively. At Sept. 30, 2016, these ratios stood at
12.4%, 12.4% and 16%, respectively. Fitch estimates that on a pro
forma basis as of September 2016, its CET1 regulatory capital
ratio after the payment of the dividend would stand at levels that
are consistent with its current rating.

RATING SENSITIVITIES

GF SAN Mexico
VR
GF SAN Mexico's VR could be affected by a potential change in the
ratings of its main subsidiary or if the group's intrinsic
performance importantly deviates from the one of the bank, a
scenario which is not likely at present.

IDRs AND NATIONAL SCALE RATINGS
GF SAN Mexico's IDRs could mirror a potential upgrade of its VR
over the medium term. Alternatively, GF SAN Mexico's IDRs could
benefit from an upgrade of its parent company's ratings, given
that the entity is considered strategically important for SAN;
Fitch believes GF SAN Mexico's IDRs would maintain one-notch
relativity to its parents'.

SUPPORT RATING
The group's Support Rating could be affected if Fitch changes its
view of Spain's SAN's ability or willingness to support its
Mexican subsidiary.

SUBORDINATED DEBT
GF SAN Mexico's AT1 notes rating is sensitive to movements in the
group's VR, together with an assessment of the implications of its
relativity to its parent's VR. This rating could be downgraded as
a result of changes in Fitch's assessment of the notes' non-
performance risk, such as changes in the bank's capital management
that would reduce its flexibility to service the securities or
under unexpected additional regulatory buffer requirements.

Fitch has assigned the following ratings:

-- Long-Term foreign currency IDR at 'BBB+';
-- Viability rating at 'bbb+';
-- Short-Term foreign and local currency IDRs at 'F2';
-- Support Rating at '2';
-- National-scale long-term rating at 'AAA(mex)';
-- National-scale short-term rating at 'F1(mex)';
-- Perpetual subordinated non-preferred contingent convertible
    capital notes expected long-term rating at 'BB(EXP)'.

Fitch has published the following rating:
-- Long Term local currency IDR at 'BBB+'.

The Outlook for the Long Term Ratings is Stable


MEXICO: Loosening of Gasoline Prices Draws Heat
-----------------------------------------------
Juan Montes at The Wall Street Journal reports that Mexico is
moving to end eight decades of government-controlled gasoline
prices, a step that will lead to a big jump in prices at the pump
and could prompt a backlash against the government's efforts to
liberalize the country's energy market.

Price controls for gasoline will be scrapped in late March in
parts of the country that border the U.S., where motorists are
more accustomed to competition among gasoline stations, regulators
said, according to The Wall Street Journal.

Other regions will gradually follow suit during the year --
including Mexico City in November, the report notes.  The last to
make the switch will be southern areas of the country where a lack
of gasoline stations could lead to price gouging, the report
relays.

Mexico's main gasoline trade group Onexpo is expecting prices to
jump around 15% next year, mainly due to higher oil prices and a
weak peso. Others see increases of more than 20%, the report
notes.

"Twenty-Seventeen will be a year of transition," said Energy
Minister Pedro Joaquin Coldwell, the report notes.  "The model of
controlled prices will gradually die," he added.

Higher gasoline prices could undermine the confidence among
Mexicans in an overhaul of energy laws in 2013 that ended state
oil company Petroleos Mexicanos's monopoly on exploration and
production, refining, and fuel imports, the report relays.

"The government needs to tread lightly.  The price of gasoline is
a very sensitive one, and we cannot rule out social outbreaks in
some poor regions," said Adan Garcia, a public policy expert with
the Center of Economic and Budget Research, a local public policy
advocacy group, the report notes.

The flagship economic overhaul of President Enrique Pena Nieto is
already viewed negatively by 56% of Mexicans, according to a
survey conducted by local pollster Parametria earlier this year,
the report relays.

Without government subsidies, regular gasoline in December would
have cost 11% more than the 13.98 pesos per liter, or $2.60 per
gallon, price set by the government, according to Mexico's
antitrust agency, the report says.

A weaker Mexican peso, which has fallen about 16% against the U.S.
dollar in the past year, adds pressure to the price since Mexico
imports more than half the gasoline it consumes, most of that from
the U.S, the report notes.

Higher gasoline prices may also stir inflation, putting pressure
on the central bank to raise interest rates further, the report
discloses.

Mexicans have started to see the first non-Pemex gasoline stations
in decades, with private operators offering more services like
convenience stores and cleaner restrooms, the report relays.  They
are also advertising the price in dazzling banners alongside the
logos -- a novelty in Mexico, the report notes.

But higher prices at the pump could sour many on the experience.
Mexico is freeing up its prices at a time when international oil
prices are rising, the report dicloses.

"All this could be a good thing if the people see some benefit
when oil prices go down," said Rogelio Ventura, a truck driver in
Mexico City, the report relays.  "If not, this will only be a bad
joke," he added.

There are also concerns the state monopoly could be replaced by
private ones in parts of the country with few gasoline stations,
the report notes.  Earlier this year, the antitrust commission
opened an inquiry into possible monopolistic practices -- such as
dividing up a market among competitors-in gas stations in the
border state of Baja California, the report notes.

Mexico has just around 11,400 gas stations, or nine per 100,000
people compared with 36 per 100,000 in the U.S. About a third of
them are concentrated in the six largest states, the report
discloses.

Authorities said they're confident the freeing of prices will
ultimately benefit consumers through greater competition between
gasoline stations, the report relays.

"Competition won't come by decree," said Alejandra Palacios, the
head of the antitrust commission.  "The country still has to work
on several fronts to have more chance of success in the shift from
a monopolistic, integrated energy sector to one based on
competition," the report notes.

After more than 75 years controlling all upstream and downstream
oil activities, Pemex owns the entire fuel distribution
infrastructure which new suppliers will be able to use at
nondiscriminatory prices to move their gasoline, the report
relays.

But that infrastructure is limited -- Mexican ports have a
combined 10.6 million barrels of fuel storage capacity, less than
that of a single company operating in the port of Houston, Texas-
and that could curb the potential for lower prices at the pump,
the report adds.



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


CRISTALEX INC: Seeks to Hire Falcon-Sanchez as Accountant
---------------------------------------------------------
Cristalex Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Puerto Rico to hire an accountant.

The Debtor proposes to hire Falcon-Sanchez & Associates PSC to
provide general accounting, tax and financial consulting services.

The hourly rates charged by the firm are:

Ismael Falcon Ortega     $200
CPA Supervisor           $125
Senior Accountant        $100
Staff Accountant          $75

Ismael Falcon Ortega, a certified public accountant, disclosed in
a court filing that his firm is a "disinterested party" as defined
in section 101(14) of the Bankruptcy Code.

The firm can be reached through:

     Ismael Falcon Ortega
     Falcon-Sanchez & Associates PSC
     P.O. Box 366397
     San Juan, PR 00936-6397
     Tel: (787) 273-7979
     Fax: (787) 273-9797
     Email: ifalcon@falcon-sanchez.com

                    About Cristalex Inc.

Cristalex, Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 16-06385) on August 11,
2016.  The petition was signed by Marta Pagan Batista, president.

At the time of the filing, the Debtor estimated assets of less
than $500,000 and liabilities of $500,001 to $1 million.


MARJASU CORP: Hearing on Disclosures Set For Feb. 8
---------------------------------------------------
The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico has scheduled for Feb. 8, 2017, at 9:00
a.m. the hearing to consider the approval of Marjasu Corp's
disclosure statement referring to the Debtor's plan of
reorganization.

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

Marjasu Corp filed a Chapter 11 bankruptcy petition (Bankr. D.P.R.
Case No. 14-07793) on Sept. 22, 2014.


MOTEL TROPICAL: IRS to Be Paid in $419 Monthly Payments, at 3.25%
-----------------------------------------------------------------
Motel Tropical Inc. filed with the U.S. Bankruptcy Court for the
District of Puerto Rico an amended disclosure statement referring
to the Debtor's plan of reorganization.

The Debtor will commence payments to Class 2 (a) Internal Revenue
Service upon the confirmation of the Plan and will be paid in full
in monthly installments of not less than $419.17 including
interest at the rate of 3.25%.

The funds required to implement the Plan will come from income
derived by Debtor from its continued motel business operation.

The Amended Disclosure Statement is available at:

            http://bankrupt.com/misc/prb16-00966-80.pdf

As reported by the Troubled Company Reporter on Oct. 6, 2016, the
Debtor filed a first amended disclosure statement, dated Sept. 26,
2016.  The Debtor stated in the First Amended Disclosure Statement
that the Plan, as submitted, contemplated a 10% dividend to
unsecured claims, yet upon futher evaluation of the real
postpetition experience regarding the actual proceeds generated
postpetition, the Debtor has recalculate the dividend to unsecured
creditor.  The projections as amended contemplate a 1% dividend,
which is still more that if the business is liquidated under a
Chapter 7 scenario.

                    About Motel Tropical

Motel Tropical Inc. sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 16-00966) on Feb. 11,
2016, disclosing under $1 million in both assets and liabilities.
The Debtor is represented by Isabel M. Fullana, Esq., at
Garcia-Arregui & Fullanan PSC.

The Debtor manages a motel business located at Carr 2.KM 110.7
Ave. Militar, Isabel Puerto Rico. The property on which the Debtor
operates is leased to Manuel Gonzalez Valeting.

No official committee of unsecured creditors has been appointed in
the case.


VASSALLO INT'L: Hires Luis Carrasquillo as Financial Consultant
---------------------------------------------------------------
Vassallo International Group, Inc. seeks authorization from the
U.S. Bankruptcy Court for the District of Puerto Rico to employ
Luis R. Carrasquillo & Co., P.S.C. as financial consultant.

The Debtor requires the financial consultant to provide business
reorganizations, consulting services related to reorganization,
audit, review, and compilation, tax services and accounting and
bookkeeping.

The firm will be paid at these hourly rates:

       Luis R. Carrasquillo, Partner     $175
       Marcelo Gutierrez, Sr. CPA        $125
       Other CPAs                        $90-$125
       Lionel Rodriguez Perez            $90
       Carmen Callejas Echevarria        $85
       Alfredo J. Segarra                $80
       Janet Marrero                     $45
       Iris L. Franqui                   $45

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

Luis R. Carrasquillo Ruiz 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 estate.

The firm can be reached at:

       Luis R. Carrasquillo Ruiz
       Luis R. Carrasquillo & Co., P.S.C.
       28th Street, # TI-26
       Turabo Gardens Avenue
       Caguas, PR  00725
       Tel: (787) 746-4555
       Fax: (787) 746-4564
       E-mail: luis@cpacarrasquillo.com

Vassallo International Group Inc., filed a Chapter 11 petition
(Bankr. D. P.R. Case No. 16-09093) on November 16, 2016.  The
petition was signed by Rafael V. Vassallo Collazo, president.  The
Debtor is represented by Charles Alfred Cuprill-Hernandez, Esq.

The Debtor disclosed $0 million in assets and $8.4 million in
liabilities.

A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/prb16-09093.pdf


VASSALLO INT'L: Hires Charles Cuprill as Legal Counsel
------------------------------------------------------
Vassallo International Group, Inc. seeks authorization from the
U.S. Bankruptcy Court for the District of Puerto Rico to employ
Charles A. Cuprill, P.S.C., Law Offices as legal counsel.

The firm will be paid at these hourly rates:

       Charles A. Cuprill-Hernandez     $350
       Associates                       $250
       Paralegals                       $85

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

The firm received a $15,000 retainer from the Debtor.

Charles A. Cuprill-Hernandez 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 estate.

The firm can be reached at:

       Charles A. Cuprill-Hernandez, Esq.
       CHARLES A. CUPRILL, P.S.C., LAW OFFICES
       356 Fortaleza Street, Second Floor
       San Juan, PR  00901
       Tel: (787) 977-0515
       Fax: (787) 977-0518
       E-mail: ccuprill@cuprill.com

Vassallo International Group Inc., filed a Chapter 11 petition
(Bankr. D. P.R. Case No. 16-09093) on November 16, 2016.  The
petition was signed by Rafael V. Vassallo Collazo, president.  The
Debtor is represented by Charles Alfred Cuprill-Hernandez, Esq.

The Debtor disclosed $0 million in assets and $8.4 million in
liabilities.

A copy of the Debtor's list of 20 largest unsecured creditors is
available for free at http://bankrupt.com/misc/prb16-09093.pdf



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


VENEZUELA: Voids Popular Form of Currency, Setting Off Panic
------------------------------------------------------------
Ana Vanessa Herrero and Nicholas Casey at The New York Times
report that Carrying trash bags and backpacks filled with cash,
Venezuelans fretfully lined up outside banks across the country to
exchange currency that President Nicolas Maduro said would soon be
void.

Mr. Maduro's decision that all VRB100 notes must be exchanged has
caused panic, partly because the deadline keeps shifting and many
banks and businesses are already refusing to accept them. For many
people without bank accounts, the bills, which have long been the
country's highest-denomination note, are their primary means of
saving money, according to The New York Times.

"Like all Venezuelans, I'm trying to get this problem resolved,"
said Maritza Sosa, 65, a retiree who had waited for hours at a
bank here to exchange VEB2,000 in VEB100 bills, the report notes.

The problem has long been that the notes are nearly worthless.

The report relays that a ruinous economic crisis punctuated by
inflation and a collapse in Venezuela's currency had left 100-
bolĀ°var notes trading on the country's black market at about 4
cents, up from about 2 cents only a week ago.  Early this month,
the government announced that it would introduce six new bills to
replace the old ones, ranging from VEB500 to VEB20,000, the report
notes.

That news came as a relief to many Venezuelans who had become
accustomed to carrying around small bags even for the most basic
transactions, the report notes.  Lunch in Caracas, for example,
could cost VEB10,000, requiring carrying 100 bills that might be
counted in machines at the register, the report relays.

But Mr. Maduro made a second announcement: The VEB100 notes would
be taken out of circulation almost immediately as a move to combat
organized crime groups that he said were hoarding them, the report
notes.  The president also announced that he would temporarily
close the border with Colombia, where he said the bills were being
traded on the black market for dollars, the report discloses.

Venezuelan news media said the lines had resulted in chaotic
scenes in several cities in the country, including El Callao and
Puerto La Cruz, where there had been protests and outbreaks of
looting, the report relays.

There were also confused scenes at banks like the Banesco branch
in the El Hatillo neighborhood here, the report says.  It had been
flooded by hundreds of people demanding to make deposits, the
report notes.  The bank, which was out of money to make exchanges,
was nearly empty, the report discloses.  Mario Rafael Pina, a
teller, said the bank had no idea when it would receive the
higher-denomination bills, the report says.

Maria Eugenia Cepeda, 52, a real estate agent, feared she would
soon run out of money for food if she could not get new currency.
A.T.M.s throughout the neighborhood were dispensing only VEB100
notes, she said, and the tellers had told her they did not have
any money available to cash a smaller check for her, the report
relays.

The uncertainty, in some ways, had echoes of the recent cash
crisis in India touched off after the government said it would
scrap two of its most widely circulated bills to crack down on
undeclared hoards of cash, the report notes.  Indians, however,
have until year's end to exchange their bills.

Elias Matta, an opposition congressman who has sat on finance
committees, criticized the government's moves for coming at the
holiday season, when Venezuelans are making Christmas purchases,
the report says.  He estimates that about 30 percent of
Venezuelans rely on cash because they have no bank accounts, the
report relays.  "No one is prepared, not the banks, not the
government, not the people," he said. "Now we are paying the
consequences for this nonsense," the report adds.

As reported in the Troubled Company Reporter-Latin America on
Nov. 22, 2016, Fitch Ratings has taken the following rating
actions on the Dominican Republic:

   -- Long-Term Foreign Currency Issuer Default Rating (IDR)
      upgraded to 'BB-' from 'B+'; assigned Stable Outlook;

   -- Long-Term Local Currency IDR upgraded to 'BB-' from 'B+';
      assigned Stable Outlook;

   -- Senior unsecured Foreign and Local Currency bonds upgraded
      to 'BB-' from 'B+';

   -- Short-Term Foreign Currency IDR affirmed at 'B';

   -- Short-Term Local Currency IDR affirmed at 'B'.


                            ***********


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, Ivy B. Magdadaro, 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.


                   * * * End of Transmission * * *