TCRLA_Public/170302.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, March 2, 2017, Vol. 18, No. 44


                            Headlines



B R A Z I L

OI SA: Posts Response to the CVM/BM&FBovespa Official Letter
PETROBRAS: Settles Four Investor Lawsuits in New York


C A Y M A N  I S L A N D S

AES OCEAN: Shareholders Receive Wind-Up Report
ALLSEASONSPTL GLOBAL: Shareholders Receive Wind-Up Report
ALLSEASONSPTL GLOBAL MASTER: Shareholders Receive Wind-Up Report
ALLSEASONSPTL LIMITED: Shareholders Receive Wind-Up Report
ASTWIRELESS CORPORATION: Shareholders Receive Wind-Up Report

BLUESHIFT ENERGY: Shareholders Receive Wind-Up Report
CHEM CAPITAL: Shareholders Receive Wind-Up Report
CHESAPEAKE PARTNERS: Shareholders Receive Wind-Up Report
CHESAPEAKE PARTNERS MASTER: Shareholders Receive Wind-Up Report
CONCORDIA API: Shareholder Receives Wind-Up Report


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Free-Trade Zones an Engine for Competitiveness


J A M A I C A

JAMAICA: Mining and Quarrying Sector Registers Decline
JAMAICA: To Benefit From Framework Agreement With China


M E X I C O

MEXICO: Growth Slows in Fourth Quarter
SERVICIOS CORPORATIVOS: S&P Affirms 'BB-' CCR; Outlook Stable


P U E R T O    R I C O

DACCO TRANSMISSION: Non-Crossover 2nd Lien Claimants to Get $8.6MM
FABRICA DE BLOQUES: Seeks to Hire MRO Attorneys as Legal Counsel
PUERTO RICO: Governor Hopes for 'Open Dialogue' With Mnuchin


                            - - - - -


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B R A Z I L
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OI SA: Posts Response to the CVM/BM&FBovespa Official Letter
------------------------------------------------------------
Oi SA posted a notice in response to the CVM/BM&FBovespa Official
Letter.

Attn.: Mr. Fernando Soares Vieira
Superintendent of Corporate Relations
Mr. Guilherme Rocha Lopes
Director of Corporate Monitoring- 2
c/c to
emissores@bvmf.com.br
ccarajoinas@bvmf.com.br
apereira@bvmf.com.br
nortega@bvmf.com.br

Re.: Official Letter No. 78/2017/CVM/SEP/GEA-2
Request for clarification on news published by the media

Dear Sirs,

We refer to Official Letter No. 78/2017/CVM/SEP/GEA-2 ('Official
Letter'), copy attached hereto, which requests that Oi S.A. - In
Judicial Reorganization ('Oi' or 'Company') clarify the
information in the news published on the website Globo Online on
February 20, 2017, with the title 'Judge orders Oi to take a
position on the Moelis proposal in five days,' to explain the
following.

Oi clarifies that the creditor Goldentree Distressed Fund and
other creditors belonging to the group of bondholders served by
Moelis & Company ('Moelis') presented an objection to the judicial
reorganization plan presented by the Company on September 5, 2016,
since they had submitted a proposal of an alternative plan, as
previously disclosed by the Company in a Notice to the Market
dated December 19, 2016.

Oi further clarifies that, pursuant to the terms of the dispatch
from the 7th Corporate Court of Rio de Janeiro on February 14,
2017, it will make a statement, in the normal course of the
judicial reorganization process, about the presentation of the
proposal of the alternative plan by Moelis, which, however, will
not represent a formal position from the Company with respect to
the content of the alternative plan, nor will it represent any
decision with respect to any change in the reorganization plan
presented by the Company.

Oi reiterates once again that it continues to meet regularly with
creditors and other stakeholders with the intention of gathering
impressions and comments about the plan and that it believes that
the results of these discussions will be reflected in a final
proposal of the judicial reorganization plan, to be brought up for
approval by a creditors' meeting in the manner prescribed by law,
which guarantees the Company's operational viability and
sustainability and that serves creditors, shareholders and other
interested parties, allowing the Company to grow stronger at the
end of this process.

Sincerely,
Oi S.A. - In Judicial Reorganization
Ricardo Malavazi Martins
Chief Financial Officer and Investor Relations Officer

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 24, 2017, S&P Global Ratings affirmed its 'D' corporate
credit and issue-level global and national scale ratings on Oi
S.A.  At the same time, S&P withdrew the recovery ratings on the
company's rated debt, until it has an updated capital structure
once Oi emerges from judicial reorganization.


PETROBRAS: Settles Four Investor Lawsuits in New York
-----------------------------------------------------
Your Oil and Gas News reports that Petrobras disclosed that its
Board of Directors approved on Feb. 27 the conclusion of
settlements to end four individual lawsuits filed before the
Federal Court of New York, USA, by New York City Employees
Retirement System (and others), Transamerica Income Shares, Inc.
(and others), Internationale Kapitalanlagegesellschaft mbH, Lord
Abbett Investment Trust - Lord Abbett Short Duration Income Fund
(and others).

Petrobras had already entered into settlements to end other
fifteen individual lawsuits before the Federal Court of New York,
as disclosed on October 21, 2016 and November 23, 2016.

As result of the agreements reached and the stage of negotiations
in progress with other plaintiffs of individual actions, the
Company, currently, expects the total amount of the provision for
2016 to be US$ 372 million, of which US$ 364 million had already
been provisioned on September 30, 2016.

These four individual lawsuits were consolidated for purposes of
judgment with twenty three other individual actions and class
action filed against the Company (and others) before the Federal
Court of New York, USA.  With the Feb. 27 announcement, Petrobras
reaches a settlement in 19 individual actions from a total of 27
that were consolidated with the class action.

At the moment, it is not possible for Petrobras to make a reliable
estimate of the outcome of the class action.

These settlements, the terms of which are confidential, have the
purpose of eliminating uncertainties, burdens and costs associated
with the continuity of such disputes and do not constitute any
acknowledgment of responsibility on the part of Petrobras, which
will continue to firmly defend itself in other ongoing actions.

As reported in the Troubled Company Reporter-Latin America on
Feb. 14, 2017, S&P Global Ratings raised its global scale ratings
on Petroleo Brasileiro S.A. (Petrobras) to 'BB-' from 'B+',
including its corporate credit rating and the ratings on the
senior unsecured notes issued through the company's financing
vehicles (Petrobras International Finance Co. and Petrobras Global
Finance B.V.).


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


AES OCEAN: Shareholders Receive Wind-Up Report
----------------------------------------------
The shareholders of AES Ocean Springs, Ltd. received on, Jan. 25,
2017, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

           Tina Wang
           c/o Maples and Calder
           Attorneys-at-law
           P.O. Box 309, Ugland House
           Grand Cayman KY1-1104
           Cayman Islands


ALLSEASONSPTL GLOBAL: Shareholders Receive Wind-Up Report
---------------------------------------------------------
The shareholders of Allseasonsptl Global Diversified Trends Ltd.
received on, Jan. 26, 2017, the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

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


ALLSEASONSPTL GLOBAL MASTER: Shareholders Receive Wind-Up Report
----------------------------------------------------------------
The shareholders of Allseasonsptl Global Diversified Trends Master
Ltd. received on, Jan. 26, 2017, the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

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


ALLSEASONSPTL LIMITED: Shareholders Receive Wind-Up Report
----------------------------------------------------------
The shareholders of Allseasonsptl Limited received on, Jan. 26,
2017, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

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


ASTWIRELESS CORPORATION: Shareholders Receive Wind-Up Report
------------------------------------------------------------
The shareholders of Astwireless Corporation received on, Jan. 26,
2017, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Chen, Heng-Chen
          No. 1, Dusing 1st Rd.
          Hsinchu Science Park
          Hsinchu City, Taiwan 30078
          Telephone: +886 3 567 0766
          Facsimile: +886 3 579 0942


BLUESHIFT ENERGY: Shareholders Receive Wind-Up Report
-----------------------------------------------------
The shareholders of Blueshift Energy Offshore Fund, Ltd. received
on, Jan. 26, 2017, the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

          Blueshift Capital Group, LP
          416 W 13th Street Suite 205
          New York
          New York 10014
          United States of America
          Telephone: +1 (212) 524 9692


CHEM CAPITAL: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of Chem Capital received on, Jan. 27, 2017, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Sean Tierney
          Lowtax Limited Accountant & Tax Advisers
          Weir Cottage
          2 Laindon Road
          Billericay
          Essex, CM12 9LD
          Telephone: 01268 669100


CHESAPEAKE PARTNERS: Shareholders Receive Wind-Up Report
--------------------------------------------------------
The shareholders of Chesapeake Partners International Ltd.
received on, Jan. 26, 2017, the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

         Chesapeake Partners Management Co., Inc.
         Mark Lerner, Vice President
         2800 Quarry Lake Drive
         Suite 300 Baltimore MD 21209
         United States
         Telephone: 410-602-0195


CHESAPEAKE PARTNERS MASTER: Shareholders Receive Wind-Up Report
---------------------------------------------------------------
The shareholders of Chesapeake Partners Master Fund, Ltd. received
on, Jan. 26, 2017, the liquidator's report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

         Chesapeake Partners Management Co., Inc.
         Mark Lerner, Vice President
         2800 Quarry Lake Drive
         Suite 300 Baltimore MD 21209
         United States
         Telephone: 410-602-0195


CONCORDIA API: Shareholder Receives Wind-Up Report
--------------------------------------------------
The shareholder of Concordia API Fund Limited received on,
Jan. 26, 2017, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          David Griffin
          c/o Anna Morel
          FTI Consulting (Cayman) Ltd.
          Suite 3212, 53 Market Street, Camana Bay
          P.O. Box 30613 Grand Cayman KY1 - 1203
          Cayman Islands
          Telephone: +1 345 743 6839


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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Free-Trade Zones an Engine for Competitiveness
------------------------------------------------------------------
Dominican Today reports that a new report presented by the World
Bank suggests a series of policies designed to strengthen free-
trade zones in the Dominican Republic as a path toward sustainable
and inclusive economic growth, and its effective use in order to
attract foreign direct investment and generate better-qualified
and better-paid jobs.

"The Dominican Republic is one of the global pioneers in the use
of free-trade zones. This diagnosis identifies the three main
challenges on the path to a more competitive and inclusive sector:
the impact of the productive transformation of free-trade-zone in
job creation; the level of attraction for competitive
international providers; and the level of linkages with domestic
companies," said Cecile Fruman, Director of the World Bank's
Global Trade and Competitiveness Practice, according to Dominican
Today.

The report "Free-Trade Zones in the Dominican Republic: Policy
Considerations for a More Competitive and Inclusive Sector"
underscores that, currently, free-trade zones generate 140
thousand direct jobs, most of them low-skilled ones, Dominican
Today relays.  Because of this, and in view of the growth of more
sophisticated industries requiring a more skilled workforce,
priority should be placed on the development of support programs
for labor adjustment, as well as improving workers' capacity,
women in particular, Dominican Today notes.

"Free-Trade Zones in the Dominican Republic have been and continue
to act as growth engines for the country. To support inclusive
growth the consolidation of this model depends essentially  on
facilitating the transfer of knowledge and technology between
free-trade zones companies and the rest of the economy," said
Alessandro Legrottaglie, World Bank Representative in the country,
notes the report.  "This report complements the Policy Notes
published by the World Bank Group in supporting Government efforts
to achieve a sustainable and more inclusive growth by expanding
economic and social opportunities for all Dominicans."

The report highlights that starting in 2009, a certain recovery in
activities has been observed in these zones.  However, in the last
decade a growing dependency on imported inputs can be seen,
Dominican Today relays.  Simultaneously, the resurgence of more
sophisticated manufacturing processes has resulted in more complex
value chains, increasing the amount of production stages present
in the country, Dominican Today says.

Currently, the creation and optimization of backward linkages
among local companies present in free-trade zones is one of the
priority issues, the report discloses.

"Competitiveness is a priority for the country. The IFC believes
that SMEs are key for development, as they are the main generator
of jobs and a great potential for growth. It is important to
improve their capacity in order to incorporate them into Free-
Trade Zone production chains, therefore boosting competitiveness
and the development of the local economy," said Mr. Guillermo
Villanueva, IFC chief in the country, Dominican Today notes.

The country has moved forward through the implementation of pilot
programs aimed at increasing productive linkages since 2015,
Dominican Today relays.  At the same time, an agreement has been
established with six public and private institutions that will
work on designing policies to connect local companies with the
ones located in free-trade zones, the report discloses.  These
efforts are on the right track and must be continued and
strengthened. In the medium term, a rigorous impact evaluation of
backward linkages programs should be implemented, Dominican Today
says.

The report suggests interventions in three areas:

A. Promoting domestic linkages by eliminating barriers restricting
   the capacity of domestic companies to import and the capacity
   of free-trade zones to supply to the national territory;
   providing greater connectivity between domestic suppliers and
   attracting competitive international providers.

B. Development of labor adjustment support programs, including
   training in news skills sought after by free-trade zone
   companies and job search assistance.

C. Improve the general framework for trade and Foreign Direct
   Investment competitiveness with a focus on a national export
   and an export and investment strategy coordinated and approved
   by the various public and private agents involved, along with
   an empowered export promotion agency (CEI-RD).

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'.


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J A M A I C A
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JAMAICA: Mining and Quarrying Sector Registers Decline
------------------------------------------------------
RJR News reports that the October to December quarter was a less
than spectacular one for the local Mining and Quarrying sector.

It is estimated to have declined, reflecting contractions in
alumina and crude bauxite production, according to RJR News.

According to the Bank of Jamaica's Quarterly Monetary Policy
Report, the declines largely reflected lower than anticipated
capacity utilization for the sector, the report notes.

This was due to operational challenges such as unplanned
maintenance shutdowns and the change of management at one plant,
the report relays.

As reported in the Troubled Company Reporter-Latin America on
Feb. 9, 2017, Fitch Ratings has affirmed Jamaica's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B'
with a Stable Outlook. The issue ratings on Jamaica's senior
unsecured Foreign and Local Currency bonds are also affirmed at
'B'. The Outlooks on the Long-Term IDRs are Stable. The Country
Ceiling is affirmed at 'B' and the Short-Term Foreign Currency and
Local Currency IDRs at 'B'.


JAMAICA: To Benefit From Framework Agreement With China
-------------------------------------------------------
Alecia Smith at Caribbean News Now reports that Jamaica is to
benefit from increased investments in infrastructural development
and other critical areas, following the signing of an agreement
with China.

Through a framework agreement, both governments will be
collaborating on various production capacity and investment
projects in the areas of construction and infrastructure, cement
manufacturing, resource processing, equipment manufacturing and
light industry, according to Caribbean News Now.

Minister of industry, commerce, agriculture and fisheries, Karl
Samuda, and vice chairman of China's National Development and
Reform Commission, Ning Jizhe, signed the document during a
ceremony at the ministry's New Kingston offices, the report notes.

Welcoming the development, Mr. Samuda said it is "a signal and a
manifestation of our mutual commitment to move forward together in
a very constructive manner," the report relays.

Mr. Samuda noted that the arrangement will assist Jamaica in
expanding its production capacity, unlocking financing
opportunities and promoting investment in critical areas, the
report notes.

Other areas for support under the agreement include the tourism
and agricultural industries, the report discloses.

In his remarks, Mr. Jizhe said Jamaica is regarded as one of
China's most important countries for international co-operation in
investment, commerce and trade, the report relays.

Mr. Jizhe noted that this mutually beneficial agreement will serve
to further deepen the relationship between both countries, and
also represented great potential for future co-operation in a
number of areas, the report relays.

The agreement also seeks to encourage financial institutions in
Jamaica and China to provide services, such as financing, co-
financing and long-term insurance for bilateral cooperation in
building production capacity, the report notes.

A steering committee is to be established to execute the
agreement, including the identification and promotion of priority
areas/projects for investment as well as cooperation on production
capacity, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Feb. 9, 2017, Fitch Ratings has affirmed Jamaica's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B'
with a Stable Outlook. The issue ratings on Jamaica's senior
unsecured Foreign and Local Currency bonds are also affirmed at
'B'. The Outlooks on the Long-Term IDRs are Stable. The Country
Ceiling is affirmed at 'B' and the Short-Term Foreign Currency and
Local Currency IDRs at 'B'.



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


MEXICO: Growth Slows in Fourth Quarter
--------------------------------------
Juan Montes at The Wall Street Journal reports that Mexico's
economy slowed down a bit in the fourth quarter, broadly in line
with expectations, as domestic demand appeared to suffer from the
economic uncertainty caused by the U.S. election last November.

Gross domestic product expanded by a seasonally adjusted 0.7% in
the October-December period, down from 1.1% in the third quarter,
the national statistics agency said, according to The Wall Street
Journal.  That translates into an annualized growth rate of 2.8%.

Services, a key supporter of growth in recent years, ran out of
some steam in the fourth quarter, and the industrial sector
remained stagnant, the report notes.  Oil and mining output
shrank, while manufacturing exports showed resilience amid a
difficult external backdrop, the report relays.

In 2016 as a whole, the economy grew 2.3%, below the previous year
and less than what the government had initially expected at the
beginning of the year, the report notes.

In the first four years of President Enrique Pena Nieto's
administration, the annual average growth has been 2.1% -- a
disappointing result that is far from the 5% growth target
promised by Mr. Pena Nieto, the report discloses.

For this year, the economic outlook is even gloomier, according to
The Journal.  Economists expect Mexico's economy to slow down
further and expand by around 1.6%, the lowest pace of growth since
2013, as higher inflation and rising interest rates will likely
dent households consumption, the report relays.

The report notes that the uncertainty around the trade policies of
U.S. President Donald Trump, who is willing to renegotiate the
North American Free Trade Agreement in the coming months, has also
clouded the outlook for foreign investments and led the peso to
historic lows, which is pressuring inflation by making imports
more expensive.

Meanwhile, the market-friendly economic reforms driven by Mr. Pena
Nieto in his first two years in office, such as the opening of the
oil and telecom industries to more competition, have borne some
fruit, but have yet to translate into more growth, the report
says.

According to The Journal, the Bank of Mexico raised rates four
times since September to support the peso and contain inflation.
The economic slowdown is unlikely to deter the central bank from
raising rates further this year, as inflation is expected to raise
beyond 5%-well above the 3% target-and the U.S. Federal Reserve is
on a rate-raising track, the report relays.

During the fourth quarter, Mexico's economy suffered from a
slowdown in the services sector, which expanded 0.8% -- still
healthy growth but well below the previous quarter, the report
says.

A bright spot was manufacturing activity, which accounts for
around 18% of Mexico's total GDP, the report notes.  Manufacturing
grew at a strong 1.1% in the period, a positive performance
considering Mexico's export model is under threat from Mr. Trump's
protectionist rhetoric, the report notes.

Oil and mining output shrank 3% in the quarter.  Crude oil
production plummeted 10% or 220,000 barrels a day in 2016,
dragging into recession several oil states such as Campeche and
Tabasco, in the Gulf of Mexico's southern coast, adds the report.


SERVICIOS CORPORATIVOS: S&P Affirms 'BB-' CCR; Outlook Stable
-------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' corporate credit and issue-
level ratings on Servicios Corporativos Javer S.A.B. de C.V.  The
outlook remains stable.

S&P revised its recovery rating on Javer's $159 million
outstanding senior unsecured notes due 2021 to '4' from '3',
indicating S&P's expectation of average recovery prospects of
about 40% in the event of payment default.

The ratings affirmation reflects S&P's view that despite weaker-
than-expected operating and financial performance in the second
half of 2016, due to the delays of various projects and the
depreciation of the Mexican peso (MXN), S&P expects the company to
gradually improve its credit metrics.  In January 2017, Javer
hedged a large part of its principal on its outstanding
$159 million senior unsecured notes, with a call option, until the
end of April, 2017.  Moreover, S&P expects the company to shortly
refinance its notes with a local currency financing structure and
to remain committed on implementing actions to reduce its exposure
to foreign currency denominated debt, if such refinancing does not
take place in the short term.

S&P's ratings continue to reflect Javer's high concentration in
Mexico's northern region, particularly the state of Nuevo Leon.
Moreover, Javer continues to rely heavily on the government-owned
mortgage lender, Infonavit, and subsidy programs to low-income
homebuyers, although, in recent quarters, the company has
gradually reduced its reliance on such subsidies after various
cuts from the government, and to diversify its sales mix by
offering products towards the middle-income and residential
segments.

S&P believes that Javer's strategy, leading market position in
some states in the highly fragmented homebuilding industry, well-
known brand, effective marketing strategy, adequate land
procurement, and established operating strategy will support its
growth in the next few years.  S&P also incorporates Javer's
improved operating efficiency, which has resulted in better
working capital management and cash flow generation over the past
few years.  Javer's product offering remains in line with the
government's current housing policy.


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P U E R T O    R I C O
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DACCO TRANSMISSION: Non-Crossover 2nd Lien Claimants to Get $8.6MM
------------------------------------------------------------------
DACCO Transmission Parts (NY), Inc., et al., filed with the U.S.
Bankruptcy Court for the Southern District of New York an amended
disclosure statement dated Feb. 21, 2017, referring to the
Debtors' plan of reorganization.

Alex Wolf, writing for Bankruptcy Law360, reports that the Debtors
are proposing to swap $224 million in first-lien lender claims for
common stock in the new company and $60 million in unsecured
convertible notes.

The Amended Disclosure Statement is available at:

           http://bankrupt.com/misc/nysb16-13245-317.pdf

Class 1B consists of any Second Lien Credit Agreement Claim of any
Non-Crossover Second Lien Lender.

Non-Crossover Second Lien Lenders means all persons or entities
who, as of Jan. 8, 2017, (i) did not hold, directly or indirectly,
First Lien Obligations and were not signatories to or were not
bound by the Restructuring Support Agreement, and (ii) held Second
Lien Obligations and were parties to pending trade confirmations
or other similar agreements or arrangements pursuant to which the
persons or entities were entitled to acquire Second Lien
Obligations in accordance with the terms of the trade
confirmations, agreements or arrangements but, for the avoidance
of doubt, Non-Crossover Second Lien Lenders will not include any
persons or entities who, as of Jan. 8, 2017, with respect to all
or that portion of their Second Lien Obligations that were subject
to pending trade confirmations or other similar agreements or
arrangements pursuant to which such persons or entities agreed to
sell the Second Lien Obligations in accordance with the terms of
such trade confirmations, agreements or arrangements.

Non-Crossover Second Lien Credit Agreement Claims Distribution
means cash in the amount of $8.6 million.  On the Effective Date,
each holder of a Non-Crossover Second Lien Credit Agreement Claim
will receive its pro rata share of the Non-Crossover Second Lien
Credit Agreement Claims Distribution.  For the avoidance of doubt,
holders of Second Lien Credit Agreement Claims other than
Non-Crossover Second Lien Credit Agreement Claims will be deemed
to have waived the claims pursuant to the Restructuring Support
Agreement and will not receive any recovery under the Plan on
account of the claims.

The Non-Crossover Second Lien Credit Agreement Claims Distribution
will be made to the Second Lien Credit Facility Agent on the
Effective Date, and the Second Lien Credit Facility Agent will
first pay the Second Lien Fees from the Non-Crossover Second Lien
Credit Agreement Claims Distribution and then distribute the
remainder of the distribution solely to Non-Crossover Second Lien
Lenders on a Pro Rata basis.  To the extent that any Non-Crossover
Second Lien Lender is party to a pending trade confirmation or
other similar agreement or arrangement pursuant to which the
person or entity was entitled to acquire Second Lien Obligations
as of Jan. 8, 2017, distributions will be made by the Second Lien
Credit Facility Agent directly to such Non-Crossover Second Lien
Lender on account of the Second Lien Obligations to be acquired
pursuant to the pending trade confirmation, agreement or
arrangement in accordance with the terms thereof.

As a condition to the receipt of the distribution, each
Non-Crossover Second Lien Lender will execute and deliver to the
Second Lien Agent and the Debtors a Non-Crossover Second Lien
Lender Certification representing and warranting: (a) the total
amount of Second Lien Obligations held by the Non-Crossover Second
Lien Lender as of Jan. 8, 2017, plus any Second Lien Obligations
subject to any pending trade confirmations or other similar
agreements or arrangements to which such Non-Crossover Second Lien
Lender was party as of Jan. 8, 2017, and pursuant to which such
Non-Crossover Second Lien Lender was to acquire Second Lien
Obligations; (b) that, as of Jan. 8, 2017, the Non-Crossover
Second Lien Lender did not hold, directly or indirectly, First
Lien Obligations and was not a signatory to or bound by the
Restructuring Support Agreement; and (c) the Non-Crossover Second
Lien Lender (i) was not, as of Jan. 8, 2017, party to any pending
trade confirmation or other similar agreement or arrangement
pursuant to which the person or entity was the seller of Second
Lien Obligations or (ii) to the extent the person or entity was
party to a pending trade confirmation or other similar agreement
or arrangement as of the date, the identity of the buyer under the
trade confirmation, agreement or arrangement and the amount of
Second Lien Obligations to be transferred thereunder.

The failure by any Non-Crossover Second Lien Lender to represent
and warrant to the foregoing within 30 days of the Effective Date
will result in the forfeiture of the person's or entity's pro rata
allocation of the Non-Crossover Second Lien Credit Agreement
Claims Distribution, with the forfeited amount to be
redistributed, on a pro rata basis to each other Non-Crossover
Second Lien Lender in compliance with the terms of the Plan.

Any Second Lien Lender that disputes the accuracy of the
Non-Crossover Second Lien Schedule will provide notice to the
Second Lien Credit Facility Agent no later than 15 days following
the entry of the Confirmation Order and provide documentation
supporting such Second Lien Lender's position, and the portion of
the Non-Crossover Second Lien Credit Agreement Claims Distribution
subject to the dispute will be escrowed pending resolution of the
dispute.  The Court will retain jurisdiction to resolve any
dispute regarding the accuracy and completeness of the Non-
Crossover Second Lien Schedule.

Class 1B is impaired by the Plan.  Under the Original Plan,
Non-Crossover Second Lien Credit Agreement Claims were included in
the class of General Unsecured Claims (Class 4) that was deemed to
have voted to reject the Plan.  On Feb. 10, 2017, the Debtors
filed the Vote Modification Motion asking the Court to establish a
date by which Non-Crossover Second Lien Lenders may change their
deemed vote rejecting the Plan.

As of the Effective Date, Reorganized Speedstar will authorize and
issue the New Common Stock, which will be distributed to the First
Lien Lenders on account of the First Lien Credit Agreement Claims
and the Senior Exit Facility Lenders under the Senior Exit
Facility.  The New Common Stock shall represent 100% of the common
stock of Reorganized Speedstar outstanding on the Effective Date,
subject to dilution by the Management Incentive Plan and the
Senior Exit Facility Distribution.

On and as of the Effective Date, Reorganized Speedstar will enter
into and deliver the New Stockholders Agreement to each entity
that is intended to be a party thereto and the agreement will be
deemed to be valid, binding and enforceable in accordance with its
terms, and each party thereto will be bound thereby, in each case
without the need for execution by any party thereto other than
Reorganized Speedstar.

The property of each estate will vest in the applicable
Reorganized Debtor, free and clear of all claims, liens,
encumbrances, charges and other Interests, except as provided in
the Plan, the First Lien Credit Agreement Amendment, the Senior
Exit Facility Credit Agreement, the New Intercreditor Agreement,
the other Plan Documents or the confirmation court order.  The
Reorganized Debtors may operate their businesses and may use,
acquire and dispose of property free of any restrictions of the
Bankruptcy Code or the Bankruptcy Rules and in all respects as if
there were no pending case under any chapter or provision of the
Bankruptcy Code.

The distributions to be made in cash under the terms of the Plan
shall be funded from the Debtors' cash on hand as of the Effective
Date and the proceeds of the Senior Exit Facility.

As reported by the Troubled Company Reporter on Dec. 6, 2016, the
Debtors filed with the Court a disclosure statement referring to
the Debtors' prepackaged plan, which proposed that Class 4 General
Unsecured Claims -- estimated at $192,400,000 -- are impaired, and
that after the Effective Date, all holders of General Unsecured
Claims will receive their pro rata share of $500,000.

              About DACCO Transmission Parts (NY)

Headquartered in Cleveland, Ohio, Transtar Holding
Company manufactures and distributes aftermarket driveline
Replacement parts and components to the transmission repair and
remanufacturing market. It also supplies autobody refinishing
products and manufactures air conditioning, cooling and power
steering assemblies and components.

Founded in 1975, Transtar maintains over 70 local branch
locations, four manufacturing and production facilities (in Alma,
Michigan; Brighton, Michigan; Cookeville, Tennessee; and Ferris,
Texas), and four regional distribution centers throughout the
United States, Canada and Puerto Rico.

On Dec. 21, 2010, the Company was acquired from Linsalata
Capital Partners by current majority equity holder Friedman
Fleischer & Lowe LLC. The acquisition was financed with $425
million of senior secured credit facilities.

As of the Petition Date, the Company employs approximately
2,000 full-time and 50 part-time employees in the United States,
and approximately 100 full-time employees in Canada and Puerto
Rico.

DACCO Transmission Parts (NY), Inc. and 46 affiliated
debtors, including Transtar Holding Company, filed chapter 11
petitions (Bankr. S.D.N.Y. Case Nos. 16-13245 to 16-13291) on
Nov. 20, 2016.  The petitions were signed by Joseph Santangelo,
authorized signatory. The cases are pending before Judge Mary
Kay Vyskocil, and the Debtors have requested that their cases be
jointly administered under Case No.16-13245.

The Debtors estimated assets and liabilities at $500 million
to $1 billion at the time of the filing.

The Debtors tapped Rachel C. Strickland, Esq., Christopher
S. Koenig, Esq., Debra C. McElligott, Esq., and Jennifer J.
Hardy, Esq., at Willkie Farr & Gallagher LLP as attorneys.
Citing potential conflicts, DACCO Transmission has hired
Jones Day as its new legal counsel to replace Willkie Farr.
The Debtors also have hired FTI Consulting, Inc., as
restructuring and financial advisors, Ducera Partners LLC
as financial advisors and investment banker and Prime
Clerk LLC as claims, noticing and solicitation agent.


FABRICA DE BLOQUES: Seeks to Hire MRO Attorneys as Legal Counsel
----------------------------------------------------------------
Fabrica De Bloques Vega Baja Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire legal
counsel.

The Debtor proposes to hire MRO Attorneys at Law, LLC to give
legal advice regarding its duties under the Bankruptcy Code, and
provide other legal services related to its Chapter 11 case.

Myrna Ruiz-Olmo, Esq., the attorney designated to represent the
Debtor, will charge an hourly rate of $200.

Ms. Ruiz-Olmo disclosed in a court filing that she does not
represent any interest adverse to the Debtor or its bankruptcy
estate.

The firm can be reached through:

     Myrna L. Ruiz Olmo, Esq.
     MRO Attorneys at Law, LLC
     P.O. Box 367819
     San Juan, PR 00936-7819
     Phone: (787) 237-7440
     Email: mro@prbankruptcy.com

               About Fabrica De Bloques Vega Baja

Fabrica De Bloques Vega Baja, Inc. sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 17-00965) on
February 15, 2017.  The petition was signed by Rafael Ivan
Casanova Tirado.

At the time of the filing, the Debtor estimated assets and
liabilities of less than $50,000.


PUERTO RICO: Governor Hopes for 'Open Dialogue' With Mnuchin
------------------------------------------------------------
Nick Brown at Reuters reports that Puerto Rico Governor Ricardo
Rossello said he was "committed to establishing a working
relationship" and fostering "open dialogue" with U.S. Treasury
Secretary Steven Mnuchin, after the two met in Washington.

Mr. Rossello, who took office on Jan. 2, met with Mnuchin to
discuss his efforts to "put Puerto Rico's financial house in
order," a statement from the governor's office said, according to
Reuters.

The report notes that Mr. Rossello has signed more than 20 bills
and executive orders aimed at cutting spending and fostering
economic growth, but Puerto Rico faces a long haul out of an
economic crisis characterized by a 45 percent poverty rate, near-
insolvent public pensions and healthcare systems, and almost $70
billion in debt.

Under former President Barack Obama, the Treasury took a hands-on
approach in Puerto Rico, working with federal lawmakers on
legislation aimed at giving the U.S. territory a way to cut debt,
the report relays.

President Donald Trump has given little indication of how his
administration may handle Puerto Rico.

The report notes that the island's finances are under the
supervision of a federally appointed board.  The report relays
that Mr. Rossello is scheduled to present the board with a 10-year
blueprint for the island's fiscal turnaround.

The board has said the plan should find $4.5 billion a year in
savings and revenue, including a 10 percent reduction in pension
benefits and $1 billion in annual savings on healthcare spending,
the report notes.

In an interview with Reuters, Mr. Rossello said his plan will
generally meet the board's criteria, with some exceptions,
particularly on healthcare spending, the report notes.

"A $1 billion reduction in healthcare would not only severely
hamper the people of Puerto Rico, it would also cripple what is a
healthy industry, the healthcare industry," the report quoted Mr.
Rossello as saying.

Puerto Rico's Medicare system is on the brink of insolvency, in
part because, as a U.S. territory, it receives proportionately
less federal reimbursement than states, the report relays.

Mr. Rossello has said he will lobby the federal government to
increase such funding, but the board has said the turnaround plan
should not assume any funding changes or help from Washington, the
report adds.

                             *     *     *

The Troubled Company Reporter-Latin America reported on June 15,
2016, that the U.S. Supreme Court struck down a Puerto Rico law
that would have let its public utilities restructure their debt
over the objection of creditors leaving it to Congress to help the
island resolve its fiscal crisis.  Siding with bondholders
challenging the law, the court ruled 5-2 that the measure was
barred under federal bankruptcy law.

Puerto Rico is struggling with $72 billion in debt and has argued
that it needs to restructure at least some of it under Chapter 9,
the part of the bankruptcy code for insolvent local governments.
But Puerto Rico is not permitted to do so, because Chapter 9
specifically excludes it.

The federal law, Justice Thomas wrote, "bars Puerto Rico from
enacting its own municipal bankruptcy scheme to restructure the
debt of its insolvent public utilities." Chief Justice John G.
Roberts Jr. and Justices Anthony M. Kennedy, Stephen G. Breyer and
Elena Kagan joined him.

Consequently, Puerto Rico opted to default on $911 million in
constitutionally guaranteed debt, or roughly half of the $2
billion in principal and interest that came due July 1, EFE News
reported.

The reported further noted that Puerto Rico enacted a debt
moratorium due to liquidity restraints -- a move that coincided
with a new U.S. law signed by President Obama that installs a
financial control board to restructure the island's debt and
provides a retroactive stay on lawsuits by bondholders.

On July 11, 2016, the TCR-LA reported that S&P Global Ratings
downgraded the Commonwealth of Puerto Rico's general obligation
secured debt to 'D' (default) from 'CC' following the
commonwealth's default.

On July 7, 2016, Fitch Ratings has downgraded the Commonwealth of
Puerto Rico's Long-Term Issuer Default Rating (IDR) to 'RD' from
'C' and general obligation (GO) bond rating to 'D' from 'C'
following the payment default on certain GO bonds on July 1, 2016.

The Fiscal Agency and Financial Advisory Authority of Puerto Rico
has selected Dentons US as its legal advisor on all aspects of its
restructuring and revitalization efforts, including development
and implementation of the Fiscal Plan, restructuring and
renegotiation of municipal bond debt, communications with
creditors and with the PROMESA Oversight Board, among others.



                            ***********


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, Ivy B.
Magdadaro, and Peter A. Chapman, Editors.

Copyright 2017.  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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