TCRLA_Public/170630.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

               Friday, June 30, 2017, Vol. 18, No. 129


                            Headlines



B R A Z I L

BANCO ORIGINAL: Fitch Puts B+ LT IDR on Rating Watch Negative
BRAZIL: Gov't Projects Growth of Less Than 0.5% in 2017
GRUPO RBS: S&P Affirms Then Withdraws 'BB' Rating
MRS LOGISTICA: S&P Retains 'BB' Global Scale Rating on Watch Neg.


D O M I N I C A N   R E P U B L I C

DOMINICAN REP: Deadline to Import 5+ Yr Old Autos Expires Today


G U Y A N A

GUYANA: 2016 Non-Financial Public Sector Deficit Widened to 2.9%


M E X I C O

MBIA MEXICO: S&P Affirms 'CCC' Counterparty Credit Rating


P E R U

PERU: Current Juncture a Difficult One, IMF Says


P U E R T O    R I C O

GYMBOREE CORP: Hahn & Hessen to Represent Creditors' Committee
GYMBOREE CORP: No Recovery for Unsecured Creditors Under Plan
PUERTO RICO: Board Lauds 9% Budget Cuts, But Wants $119M Removed
PUERTO RICO: Number of Municipal Defaults May Rise, Moody's Says
ROCK STAR: Hires Landrau Rivera as Attorney


T R I N I D A D  &  T O B A G O

TRINIDAD & TOBAGO: Increased Chances of Dollar weakening


V E N E Z U E L A

VENEZUELA: Chopper Flight Leaves Company Mystified


                            - - - - -


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B R A Z I L
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BANCO ORIGINAL: Fitch Puts B+ LT IDR on Rating Watch Negative
-------------------------------------------------------------
Fitch Ratings has placed Banco Original S.A.'s (Original) Issuer
Default Ratings (IDRs), National Ratings and Viability Rating (VR)
on Rating Watch Negative (RWN).

KEY RATING DRIVERS- IDRS, VR, NATIONAL RATINGS

The RWN reflects the potential risks that Original could face over
the short-and medium-term, as a result of recent and upcoming
developments regarding the ongoing investigations of its related
parties, which could have material negative implications for
Original, although Fitch acknowledges this has not happened so
far. These possibilities could put pressure on the bank's
liquidity over the next few months and gradually increase its
debt-refinancing risk, which continues to be well managed. While
not immediately impacted, continued negative developments from the
investigations at its affiliates could also lead to gradual
pressure on the bank's company profile and business model. The RWN
also highlights downside risks in the event of Original being
involved in the aforementioned investigations, although the bank
has not been officially notified of any misconduct or wrongdoing
thus far.

Despite Original's sound and tested asset-liability management,
currently strong cash position and relative operational
independence from the group's activities, Fitch believes that the
events surrounding its related parties could potentially hamper
its ability to execute its strategic plans and meet its previously
stated business goals, the cornerstone of which is the ramp-up of
its digital retail franchise.

Original is ultimately wholly owned by a holding company named J&F
Investimentos S.A., which also controls its shareholders' other
companies, including JBS S.A. (JBS; Long-Term IDR 'BB'/RWN). Last
month, it was disclosed that some of JBS's executives had signed a
plea bargain with the Brazilian Federal Public Prosecutor's
Office, which included admitting payments of bribes to various
politicians.

Fitch reiterates that Original's liquidity so far has remained
stable and has been adequately managed. The short-term profile of
its loan portfolio, the relatively low proportion of funding with
daily liquidity clauses (less than 10%), and the diversified
retail portion of Original's funding distribution agreements
(covered by FGC) have been critical and sufficient, so far, to
ease potential pressures on Original's financial profile. However,
concentration per broker/distributor remains high, which could add
vulnerability to Original's refinancing ability, if part of these
distributors decides to reduce their exposure to Original, or even
cancel the ongoing agreements. The top-5 largest investors (all
agreements with local securities companies, which, in turn,
distribute Original's funding instruments), represented roughly
57% of the bank's funding base as of December 2016.

Fitch also expects the bank's strategy execution to be further
tested in the future. It is likely that funding costs will
gradually increase and revenue generation could be hurt, as
lending activity should also be cautiously managed until there is
a clearer view of its funding stability.

So far, there has been no major reputational impact of the
affiliates' events on Original's retail brand. Yet, Fitch
understands that the bank could still become increasingly exposed
to the developments of the investigations. Should investor
confidence worsen, the bank's implementation of its initial
business goals and achieving breakeven in 2019 would likely be
delayed.

These additional challenges arose in a moment when the bank was
still aiming to further consolidate its overall franchise, and
improve profitability, which remains weak due to its significant
investments in the digital banking segment. As of December 2016,
the bank's operating loss amounted to BRL331.4 million or -3.6% of
its Risk Weighted Assets (positive 1.1% in 2015), while its
relative capital cushion has continued declining on the back of
sustained growth and weak performance, although still remains
adequate, in Fitch's view.

Support Rating and Support Rating Floor

Original's SR and SRF were affirmed at '5' and 'NF', respectively,
in view of the bank's low systemic importance. In Fitch's view,
external support cannot be relied upon.

RATING SENSITIVITIES
IDRS, VR AND NATIONAL RATINGS

Original's ratings could be downgraded if the current negative
pressures surrounding its business and financial profile drive a
significant weakening of the bank's liquidity and funding profile,
refinancing risk is increases materially very soon, or its
profitability and capital adequacy metrics further weaken
substantially. The direct involvement of the bank in the scope of
the ongoing investigations may also result in a downgrade, a
scenario in which the rating downside potential could eventually
be multi-notch.

The ratings could be affirmed and removed from RWN in the
following months if Fitch is comfortable that refinancing risks
are considerably reduced and that any potentially negative
implications arising from the investigations on its related
parties are comfortably absorbed without material negative
implications for Original. In such a scenario, the resulting
Rating Outlook will depend on Fitch's assessment of the medium-
term prospects for the bank's business and financial profile.

SR and SRF

A potential upgrade of Original's Support Rating and Support
Rating Floor is unlikely in the foreseeable future, since this
would arise from a material gain in systemic importance.

Fitch has placed the following ratings on Rating Watch Negative:

-- Long-Term Foreign and Local Currency IDRs 'B+';
-- Short-Term Foreign and Local Currency IDRs 'B';
-- Viability Rating 'b+';
-- National Long-Term Rating 'BBB+(bra)';
-- National Short-Term Rating 'F2(bra)'.

The following ratings were affirmed:

-- Support Rating at '5';
-- Support Rating Floor at 'NF'.


BRAZIL: Gov't Projects Growth of Less Than 0.5% in 2017
-------------------------------------------------------
EFE News reports that Brazil's government lowered its 2017 growth
forecast to less than 0.5 percent amid a political crisis that
could force President Michel Temer from office.

President Temer is in legal hot water after the nation's attorney
general Rodrigo Janot, charged him with accepting around $150,000
in bribes from the former chairman of Brazilian meatpacking giant
JBS, Joesley Batista, who leveled the accusations as part of a
plea deal with prosecutors, recalls EFE News.

As reported in the Troubled Company Reporter-Latin America on
May 24, 2017, S&P Global Ratings placed its 'BB' long-term foreign
and local currency sovereign credit ratings on the Federative
Republic of Brazil on CreditWatch with negative implications.  S&P
also affirmed the short-term foreign and local currency ratings at
'B'. The transfer and convertibility assessment is unchanged at
'BBB-'. In addition, S&P placed the 'brAA-' national scale rating
on CreditWatch with negative implications.


GRUPO RBS: S&P Affirms Then Withdraws 'BB' Rating
-------------------------------------------------
S&P Global Ratings said that it has affirmed its 'BB' ratings on
Grupo RBS.  S&P also withdrew the ratings at the company's
request.  At the time of the withdrawal, the ratings were on
CreditWatch with negative implications, mirroring the CreditWatch
on the sovereign.

Before the withdrawal, the ratings on RBS reflected S&P's view of
a weak business risk profile after the sale of operations in the
state of Santa Catarina in 2016, which reduced its scale and
geographic diversification.  S&P expects that the company will
continue posting resilient metrics, with low leverage measured by
debt to EBITDA below 1.0x, and that it will use the proceeds from
the asset sales to reduce debt, which is more aligned with its
smaller scale.

Before the withdrawal, the ratings were capped at the sovereign,
because S&P didn't believe RBS would have sufficient liquidity
sources to cover its short-term needs under a default scenario of
Brazil.


MRS LOGISTICA: S&P Retains 'BB' Global Scale Rating on Watch Neg.
-----------------------------------------------------------------
S&P Global Ratings said that it maintained its 'BB' global scale
and 'brAA-' Brazilian national scale corporate ratings on MRS
Logistica S.A., as well as its 'brAA-' issue-level ratings on MRS'
senior unsecured debentures, on CreditWatch with negative
implications, where they were placed on May 23, 2017, mirroring
that of Brazil.

S&P's recovery ratings on MRS's senior unsecured debt remain
unchanged at '3', reflecting a meaningful expected recovery of
50%-70% (rounded estimate: 65%) following a restructuring post-
default scenario.

"The maintenance of MRS' rating on CreditWatch negative mirrors
that of Brazil.  Despite our view of its SACP being higher than
the sovereign, we still cap MRS ratings at the sovereign level due
to our opinion that the company's liquidity profile would be
constrained and its ability to maintain debt payment would be
limited under a scenario of sovereign default.  This is due to our
scenario of severe restriction to MRS access its cash position,
coupled with its high short-term maturities and maintenance capex
needs.  Also, in our sovereign default scenario, we believe MRS
cash flow generation would be somewhat impacted by lower volumes
and payment delinquency from some of its main clients," said S&P
Global credit analyst Victor Nomiyama.

The CreditWatch negative mirrors that of the sovereign of Brazil
and reflects S&P's belief that there are significant uncertainties
regarding MRS' capacity to service its financial obligations under
a sovereign default.  Although S&P expects MRS to maintain strong
profitability and improve financial metrics slightly in the short
term, S&P could downgrade the company if it was to lower Brazil's
sovereign rating, reflecting S&P's view that under a sovereign
stress scenario, it is likely MRS' liquidity could be impacted.


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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 REP: Deadline to Import 5+ Yr Old Autos Expires Today
---------------------------------------------------------------
Dominican Today reports that the Customs agency said the deadline
to import vehicles with more than 5 years of manufacture expires
June 30, for which the import of autos made prior to 2011 is
banned.

It said ban on the import of vehicles older than five years
complies with several laws, according to Dominican Today.

"All vehicles of the year 2011 that are imported after this date
will be considered as 6 years of manufacture and, therefore, will
be banned from entering the country in accordance with the
aforementioned Law," Customs said in a statement obtained by the
news agency.

As reported in the Troubled Company Reporter-Latin America on
May 1, 2017, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term sovereign credit ratings on the Dominican Republic.
The outlook remains stable.  The transfer and convertibility (T&C)
assessment is unchanged at 'BB+'.


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G U Y A N A
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GUYANA: 2016 Non-Financial Public Sector Deficit Widened to 2.9%
----------------------------------------------------------------
On May 24, 2017, the Executive Board of the International Monetary
Fund (IMF) concluded the Article IV consultation with Guyana.

Real economic activity expanded by 3.3 percent in 2016. Subdued
agricultural commodity prices, adverse weather and delays in
public investment weighed down on activity, while large increases
in gold output helped support growth. Consumer prices increased by
1.5 percent in the twelve months ending in December 2016, as
weather-related shocks to food prices reversed the deflationary
trend. The overall non-financial public sector deficit widened to
2.9 percent of GDP in 2016 from 0.2 percent in 2015. Despite
slower-than-expected economic growth, fiscal revenue increased
owing to improvements in tax administration and higher mining
royalties. Total expenditure increased by 2.8 percentage points of
GDP, but the increase was lower than budgeted due to delays in
capital expenditure. The current account moved from a 5.7 percent
of GDP deficit in 2015 to a 0.4 percent surplus in 2016, driven by
the large increase in gold exports and improved terms of trade.
Gross international reserves stood at 3.6 months of import at end-
2016.

Bank capital adequacy ratios appear comfortable (averaging 25.4
percent as of end-2016). But nonperforming loans remain high, at
12.9 percent of total loans at end-2016 from 11.5 percent at end-
2015 and provisioning remains very low (45.8 percent at end-2016).
Progress in strengthening the financial stability framework was
assessed in detail during this Article IV consultation as part of
the IMF's Financial Sector Assessment Program (FSAP), which
analyzes financial sector soundness and associated policies. The
FSAP's findings are summarized in the accompanying Financial
System Stability Assessment (FSSA).

The macroeconomic outlook is positive for 2017 and the medium-
term. Growth is projected at 3.5 percent in 2017, supported by an
increase in public investment, continued expansion in the
extractive sector, and a recovery in rice production. Twelve-month
inflation is expected to remain low at around 2.6 percent by year-
end. The fiscal deficit is projected to widen to 7.2 percent of
GDP in 2017, due in part to delayed capital spending from 2016.
The shares of current and capital spending in GDP are projected to
increase by 0.6 and 1.8 percent, respectively. Tax revenue is
projected to remain stable at about 21.5 percent of GDP. The
current account deficit is projected at -3 percent of GDP,
financed by investment inflows and donor-supported investment. Net
international reserve cover is projected to remain stable at 3.6
months of imports at end-2017.

                   Executive Board Assessment

Executive Directors broadly agreed with the thrust of the staff
appraisal. They welcomed Guyana's continued economic growth, the
improvement in its external position, and its positive medium-term
outlook, which is supported by the expected start of oil
production in 2020. Noting that the economy is vulnerable to
external shocks and domestic challenges remain, Directors
underscored the importance of preserving macroeconomic and
financial stability while making growth more broad based and
inclusive.

Directors welcomed the authorities' plans to establish a
comprehensive framework for managing oil wealth, and stressed the
importance of having a transparent and rules-based framework in
place before oil production starts. Most Directors supported
staff's recommendation for a moderate fiscal consolidation to slow
debt accumulation and safeguard against adverse shocks before the
onset of oil production. A few Directors considered a more gradual
consolidation appropriate in light of the country's development
needs. More generally, Directors recommended moderating the growth
of current expenditures and moving ahead with the reform of public
enterprises, notably the sugar and electricity companies, while
providing a safety net for those affected by these reforms.

Directors concurred that issuance of longer-term domestic debt
instruments could provide a stable source of financing, be used to
settle the government's negative balance at the central bank, and
help develop domestic capital markets. They cautioned, however,
that a significant increase in domestic debt could drive up
borrowing costs. In this regard, Directors commended the
authorities for continuing to refrain from non-concessional
external borrowing. Regarding Guyana's ongoing negotiations with
bilateral non-Paris Club creditors, a few Directors reiterated the
importance of preserving comparability of treatment across
official bilateral creditors.

Directors welcomed the recent increase in exchange rate
flexibility, and encouraged the authorities to allow the exchange
rate to play a stronger automatic stabilizer role going forward.
They noted that a clear communication strategy will be important
in this regard, and encouraged the authorities to auction foreign
exchange when conducting official transactions to help improve
price discovery and transparency in the foreign exchange market.
Directors agreed that the currently accommodative monetary policy
stance is appropriate, but stressed the importance of remaining
vigilant for possible inflationary pressures and being ready to
tighten monetary policy as appropriate.

Directors noted that the banking sector appears resilient to
severe shocks, and welcomed the authorities' plans to continue
bringing the supervisory and regulatory frameworks in line with
the 2016 FSAP recommendations. They encouraged further steps to
reduce the stock of nonperforming loans, and higher provisioning
to account for slow collateral recovery, unrecorded related-party
exposures, and loan misclassifications. Directors also called for
amending the Financial Institutions Act to operationalize the
crisis management framework and establish an emergency liquidity
assistance framework.

Directors commended the authorities for exiting the Financial
Action Task Force follow-up process, and encouraged further
strengthening the anti-money laundering and combating the financing
of terrorism framework, drawing on the recent National Risk
Assessment. They also noted the progress on replacing
correspondent banking relationships, and suggested continued
vigilance of this issue.

Directors underscored that further improvements to the business
climate, diversification efforts, and structural reforms of key
economic sectors are needed to support more broad based and
inclusive growth.

It is expected that the next Article IV consultation with Guyana
will take place on the standard 12-month cycle.


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M E X I C O
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MBIA MEXICO: S&P Affirms 'CCC' Counterparty Credit Rating
---------------------------------------------------------
S&P Global Ratings revised its outlook on MBIA Mexico S.A. de C.V.
to stable from negative.  S&P also affirmed its 'CCC' global scale
counterparty credit and financial strength ratings and its 'mxCCC'
national scale financial strength rating on the company.

Ratings on MBIA Mexico continue to reflect S&P's opinion of its
status as a core subsidiary of MBIA Insurance Corp. (MBIA Corp.;
CCC/Stable/--).  The group status is based on the parent's long-
term commitment of support to the subsidiary through a reinsurance
agreement between the two companies, where the subsidiary cedes
100% of its risks to its parent, and a net worth maintenance
agreement.  This has enabled MBIA Mexico to meet its ongoing
policy obligations despite financial stress at both the subsidiary
and the parent levels.  Therefore, the ratings on the Mexican
subsidiary will move in tandem with its parent's.


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P E R U
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PERU: Current Juncture a Difficult One, IMF Says
-------------------------------------------------
On June 16, 2017, the Executive Board of the International
Monetary Fund (IMF) concluded the Article IV consultation [1] with
Peru.

With average growth of over 5 1/4 percent since 2000, Peru has
significantly reduced unemployment and poverty. Inflation is in
low single digits, the fiscal position has strengthened, and
dollarization has declined markedly. In the context of the
commodity boom, sound macroeconomic management and structural
reforms have played an essential role in this improvement.

The current juncture is, however, a difficult one, given domestic
headwinds and challenging external conditions. The Odebrecht
corruption scandal that broke in December 2016 is weighing on
investment and confidence. And one of the worst flooding and
landslides in over 50 years (related to el Nino) has affected a
significant part of the population, caused widespread
infrastructure damage, and raised domestic food prices. On the
external side, although commodity prices have recovered somewhat
since late 2016, they remain significantly lower than during the
commodity boom.

While slowing in the short term given sizable domestic shocks and
a smaller contribution from new export projects, growth is
expected to remain high relative to the region. In particular, GDP
growth is projected to slow to about 2.7 percent in 2017
(supported by a significant fiscal stimulus) before bouncing back
to over 33/4 percent in 2018, as reconstruction spending filters
through the economy and projects delayed due to the Odebrecht
scandal start to catch-up. Inflation should gradually return to
the target range as weather-related factors abate and food price
inflation declines.

                   Executive Board Assessment

Executive Directors commended the authorities for steadfast
implementation of sound macroeconomic policies and reforms which
have helped Peru achieve high growth and significant improvement
in social indicators over the past two decades. Directors noted,
however, that recent external and domestic challenges, including
those arising from lower commodity prices, the Oderbrecht scandal,
and the devastating floods, are expected to adversely affect the
economy in the near term. They praised the authorities for their
immediate countercyclical response to these shocks, and concurred
that continued sound macroeconomic management and strong
structural reforms are key to sustaining growth and enabling Peru
to reach its goal of high-income status in the long run.

Directors supported the short term fiscal stimulus plan to address
flood-related reconstruction needs, stressing that such spending
should be underpinned by strong public investment management. They
took note of the transparency gains in the modified structural
balance fiscal rule, and advised the authorities to remain
vigilant given the new rule's potential for procyclicality.
Directors welcomed the authorities' commitment to gradual medium
term fiscal consolidation and supported their plan to establish a
medium term budget framework as a tool to enhance fiscal discipline
and the predictability of the budget process. They encouraged the
authorities to push forward with their efforts to raise the tax-to-
GDP ratio, particularly by strengthening tax administration and
reducing VAT exemptions and economic informality. They also
welcomed the recent reforms to the frameworks for public
investment and public-private partnerships, which would help
address the infrastructure gap.

Directors considered the accommodative monetary policy stance to
be appropriate at the current juncture. They encouraged the
authorities to continue to make decisions depending on data and to
monitor inflation expectations closely. Directors stressed that
clear communication of the temporary nature of existing price
shocks and the inflation outlook would be essential to anchor
inflation expectations. They welcomed the increased exchange rate
flexibility and recommended that future interventions be limited
to cases of disorderly market conditions.

Directors observed that the financial sector remains stable, while
noting the need for continued focus on reducing dollarization to
further mitigate currency mismatches and balance sheet
vulnerabilities. They encouraged further action to formalize the
financial stability council and to broaden the financial
supervisory perimeter. While emphasizing that financial stability
should remain a priority, Directors highlighted the importance of
enhancing financial deepening and inclusion.

Directors emphasized that implementation of strong structural
reforms is critical to raise growth potential and achieve the high-
income status. Along with efforts to close the infrastructure gap,
they called for further efforts to increase labor market
flexibility, reduce economic informality, and improve business
environment and fight corruption. Directors also emphasized the
need for stronger implementation of anti-corruption and AML/CFT
measures.



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P U E R T O    R I C O
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GYMBOREE CORP: Hahn & Hessen to Represent Creditors' Committee
--------------------------------------------------------------
Hahn & Hessen LLP on June 27, 2017, disclosed that its bankruptcy
and restructuring practice group has been selected to represent
the Official Committee of Unsecured Creditors in the Chapter 11
case of The Gymboree Corporation and its subsidiaries.  The
selection is pending the approval of the U.S. Bankruptcy Court for
the Eastern District of Virginia.  Members of the Creditors'
Committee include: Hansoll Textile Ltd., Li & Fung Centennial Pte
Ltd., Simon Property Group, Inc., Preit Services, LLC, Hutchin
Hill Capital Primary Fund, Ltd, GGP, Inc., and Deutsche Bank Trust
Company Americas Trust and Security Services, as Indenture
Trustee.

Gymboree operates approximately 1,300 retail stores specializing
in children's apparel in all 50 states, Canada and Puerto Rico, as
well as international franchise stores in the Middle East, Asia
Pacific and Latin America.  The stores operate under their three
brands of Gymboree, Janie & Jack, and Crazy 8, and had annual
revenues of approximately $1.25 billion in FYE 2016 and reported
in excess of $1.2 billion in debt as of the filing date.

                    About Hahn & Hessen LLP

Founded in 1931, Hahn & Hessen LLP -- http://www.hahnhessen.com--
is a full service commercial firm representing secured lenders,
official and unofficial creditors' committees, equity committees,
employee and retiree committees, investors in distressed
situations, purchasers of assets, debtors and companies,
governmental entities and creditors holding distressed debt in the
negotiation of complex reorganizations.  A core area of the Firm's
practice is representing creditors' committees in chapter 11 cases
involving in a variety of industries throughout the country.

                  About The Gymboree Corp.

The Gymboree Corporation is a children's apparel retailer in North
America, with 1,291 retail stores as of Jan. 28, 2017 operating
under three brands: Gymboree; Janie & Jack (a higher-end offering
launched in 2002); and Crazy 8 (a value-oriented line launched in
2007).  The Company operates online stores at
http://www.gymboree.com/, http://www.janieandjack.com/and
http://www.crazy8.com/

In October 2010, Gymboree was acquired by Bain Capital Private
Equity, LP and certain of its affiliated investment funds or
investment vehicles managed or advised by it -- Sponsor -- for
approximately $1.8 billion.

The Gymboree Corp. and seven affiliates each filed a Chapter 11
voluntary petition (Bankr. E.D. Va. Lead Case No. 17-32986) on
June 11, 2017.  James A. Mesterharm, chief restructuring officer,
signed the petitions.  The cases are pending before the Honorable
Keith L. Phillips.

Gymboree had $755.5 million in assets and $1.36 billion in total
liabilities as of March 14, 2017.

Kirkland & Ellis LLP, is the Debtors' bankruptcy counsel.  Kutak
Rock LLP is the Debtors' local bankruptcy counsel.  Munger, Tolles
& Olson LLP is the Debtors' special counsel.  Lazard Freres & Co.
LLC is the investment banker.  AlixPartners, LLP is the
restructuring advisor.  Prime Clerk LLC is the claims agent.

Counsel to the Term Loan Agent and the DIP Term Loan Agent are
Milbank, Tweed, Hadley & McCloy LLP; and McGuireWoods LLP.
Rothschild & Co. also serves as advisor to the Term Loan Agent.

Bain Capital Partners is represented by Weil Gotshal & Manges LLP.

Counsel to the DIP ABL Administrative Agent are Morgan, Lewis &
Bockius LLP; and Hunton & Williams LLP.

Counsel to the DIP ABL Term Agent are Choate, Hall & Stewart LLP;
and Whiteford Taylor Preston, LLP.

The indenture trustee for the Debtors' senior unsecured notes is
Deutsche Bank Trust Company Americas.

Counsel to the ad hoc group of senior unsecured noteholders is
Akin Gump Strauss Hauer & Feld LLP.

Judy A. Robbins, U.S. Trustee for Region 4, on June 22, 2017,
appointed seven creditors to serve on the official committee of
unsecured creditors in the Chapter 11 case of Gymboree Corp.


GYMBOREE CORP: No Recovery for Unsecured Creditors Under Plan
-------------------------------------------------------------
The Gymboree Corporation and its debtor affiliates filed with the
U.S. Bankruptcy Court for the Eastern District of Virginia a
disclosure statement with respect to their joint chapter 11 plan
of reorganization, dated June 16, 2017.

The Plan provides for the reorganization of the Debtors as a going
concern and will significantly reduce long-term debt and annual
interest payments and preserve the Debtors' existing liquidity,
resulting in a stronger, delivered balance sheet. Specifically,
the Plan contemplates a restructuring of the Debtors through a
debt-for-equity conversion.

The Plan does not contemplate the substantive consolidation of the
Debtors' estates. Instead, the Plan, although proposed jointly,
constitutes a separate plan for each of the Debtors in these
Chapter 11 Cases. Holders of Allowed Claims or Interests against
each of the Debtors will receive the same recovery provided to
other Holders of Allowed Claims or Interests in the applicable
Class and will be entitled to their share of assets available for
distribution to such Class. Class 5 allowed general unsecured
claimants will neither receive nor retain any consideration under
the Plan.

The feasibility of the Plan is premised upon, among other things,
the Debtors' ability to achieve the goals of its long-range
business plan, make the distributions contemplated under the Plan
and pay certain continuing obligations in the ordinary course of
the Reorganized Debtors' business. Although the Debtors' believe
the projections are reasonable and appropriate, they include a
number of assumptions and are subject to a number of risk factors
and to significant uncertainty. Actual results may differ from the
projections, and the differences may be material.

The Troubled Company Reporter previously reported that Gymboree
will emerge from these Chapter 11 Cases with approximately $800
million less funded debt. Gymboree's pro forma exit capital
structure will consist of (a) a $225 million Exit Revolving
Facility, (b) a $48.5 million Exit ABL Term Loan Replacement
Facility, (c) a $35 million Exit Term Loan Facility, and (d) the
New Gymboree Common Shares.

Specifically, the Plan contemplates the following restructuring
transactions: The Debtors' Prepetition ABL Facility has been
rolled up into the DIP ABL Facility, a $273.5 million asset-based
lending facility consisting of an up to $225 million DIP Revolving
Loan and an up to $48.5 million DIP Term Loan. On the Effective
Date, the DIP ABL Revolver Lenders will either be (a) indefeasibly
repaid in full in cash or (b) if a DIP ABL Revolver Lender
consents, such lender's outstanding DIP ABL Revolving Loan Claims
and commitments under the DIP ABL Facility will convert into
commitments under a replacement asset-based revolving loan
facility.

A full-text copy of the Disclosure Statement is available at:

     http://bankrupt.com/misc/vaeb17-32986-141.pdf

                  About The Gymboree Corp.

The Gymboree Corporation is a children's apparel retailer in North
America, with 1,291 retail stores as of Jan. 28, 2017 operating
under three brands: Gymboree; Janie & Jack (a higher-end offering
launched in 2002); and Crazy 8 (a value-oriented line launched in
2007).  The Company operates online stores at
http://www.gymboree.com/, http://www.janieandjack.com/and
http://www.crazy8.com/

In October 2010, Gymboree was acquired by Bain Capital Private
Equity, LP and certain of its affiliated investment funds or
investment vehicles managed or advised by it -- Sponsor -- for
approximately $1.8 billion.

The Gymboree Corp. and seven affiliates each filed a Chapter 11
voluntary petition (Bankr. E.D. Va. Lead Case No. 17-32986) on
June 11, 2017.  James A. Mesterharm, chief restructuring officer,
signed the petitions.  The cases are pending before the Honorable
Keith L. Phillips.

Gymboree had $755.5 million in assets and $1.36 billion in total
liabilities as of March 14, 2017.

Kirkland & Ellis LLP, is the Debtors' bankruptcy counsel.  Kutak
Rock LLP is the Debtors' local bankruptcy counsel.  Munger, Tolles
& Olson LLP is the Debtors' special counsel.  Lazard Freres & Co.
LLC is the investment banker.  AlixPartners, LLP is the
restructuring advisor.  Prime Clerk LLC is the claims agent.

Counsel to the Term Loan Agent and the DIP Term Loan Agent are
Milbank, Tweed, Hadley & McCloy LLP; and McGuireWoods LLP.
Rothschild & Co. also serves as advisor to the Term Loan Agent.

Bain Capital Partners is represented by Weil Gotshal & Manges LLP.

Counsel to the DIP ABL Administrative Agent are Morgan, Lewis &
Bockius LLP; and Hunton & Williams LLP.

Counsel to the DIP ABL Term Agent are Choate, Hall & Stewart LLP;
and Whiteford Taylor Preston, LLP.

The indenture trustee for the Debtors' senior unsecured notes is
Deutsche Bank Trust Company Americas.

Counsel to the ad hoc group of senior unsecured noteholders is
Akin Gump Strauss Hauer & Feld LLP.

Judy A. Robbins, U.S. Trustee for Region 4, on June 22, 2017,
appointed seven creditors to serve on the official committee of
unsecured creditors in the Chapter 11 case of Gymboree Corp.


PUERTO RICO: Board Lauds 9% Budget Cuts, But Wants $119M Removed
----------------------------------------------------------------
The Financial Oversight and Management Board for Puerto Rico,
which was created by Congress under the bipartisan Puerto Rico
Oversight, Management and Economic Stability Act or PROMESA, said
June 27, 2017, that, after analysis of the Proposed Budget
submitted by the Puerto Rico Legislature, the Oversight Board
determined that "most of the Proposed Budget can be deemed
compliant with the certified Fiscal Plan and reflects great
advancement towards achieving fiscal responsibility" but,
nonetheless, issued a Notice of Violation pursuant to PROMESA Sec.
202(c)(1)(B) because the Proposed Budget "includes spending in
several areas that are inconsistent with the Fiscal Plan and not
compliant with Board guidance."

The Notice, sent to the President of the Senate and the Speaker of
the House, with copy to the Governor of Puerto Rico, includes a
description of necessary corrective actions and provides an
opportunity to correct the violations in accordance with PROMESA.
The Board's analysis of the Proposed Budget and its determination
was based on the four resolutions approved by the Legislature on
June 23, 2017, namely Legislature Resolutions 186, 187, 188 and
189.

"The Proposed Budget takes several important steps to meet [the
Fiscal Plan's] objectives.  A majority of appropriations are
dedicated to education, public safety, healthcare and welfare
needs.  Pensions convert to a pay-as-you-go basis.  Additional
funds are budgeted toward the healthcare system to offset the loss
of Federal funds.  To protect against liquidity shortfalls, budget
reserves are restricted and can only be used after obtaining
approval from the Board.  After adjusting for the need to maintain
pension payments to current retirees, the Proposed Budget reflects
a reduction in spending from FY2017 of $804 million, or more than
9 percent.  This reflects significant progress in closing Puerto
Rico's historical structural budget deficit. Consequently, most of
the Proposed Budget can be deemed compliant with the certified
Fiscal Plan and reflects great advancement towards achieving
fiscal responsibility," said Oversight Board Chair Jose Carrion.

"The Proposed Budget, however, also includes spending in a few
areas that are inconsistent with the Fiscal Plan and are not
compliant with Board guidance. Given the gravity of Puerto Rico's
fiscal and liquidity situation, further adjustments to the
Proposed Budget are needed," he added.

The Notice of Violation noted that the Proposed Budget includes
overspending and ineligible expenditures in three categories that
total approximately $119 million.  It therefore calls for
corrective actions to reduce the Legislature's aggregate spending
to $131 million, completely eliminate the additional spending of
$78 million in non-legislative expenditures added to the Proposed
Budget as part of the Legislature Resolutions and achieve
additional savings totaling $25 million on certain appropriations
to subsidize various industries, mayoral associations, marathons,
and festivals, among others.

The Notice of Violation also notes that the Proposed Budget does
not adequately provide for at least $200 million in specific
reforms required to implement the rightsizing requirement in the
certified Fiscal Plan.  It notes that consistent with the Fiscal
Plan, the Proposed Budget included savings of $440 million
generated from personnel and non-personnel government rightsizing
targets.  Of that amount, however, at least $200 million of
potential savings lacked specific implementation plans that
demonstrate the types of agency level operational and structural
reforms needed to reduce the size of the government and eliminate
non-critical services.

The Notice outlines several alternatives to correct the $319
million deficiency. "The first, and preferred, alternative is for
the government to reduce spending in accordance with the
guidelines provided in this notice of violation. This must be
supplemented with specific agency level operational and structural
rightsizing reforms to reduce the size of government and eliminate
non-critical services," noted Carrion.

Should the shortfall not be addressed appropriately, additional
measures, such as furloughs and the reduction or elimination of
the Christmas bonus, as well as commensurate savings from the
Legislature's appropriations, will need to be considered prior to
the Board's certification of the Proposed Budget.

The Notice of Violation cites that the Board will reserve its
right to review progress of the rightsizing measures in 60 days to
determine which measures still have not been validated and to
finalize the level of furlough and Christmas bonus
reductions/eliminations that are required to make the budget
compliant with the Fiscal Plan.

The deadline to comply with the Notice of Violation is 5:00 pm on
Thursday, June 29.  Failure to comply will result in the Board
certifying its own budget that will be deemed compliant with the
Fiscal Plan.

                     Necessary Corrective Action

In its letter to Senator Thomas River Schatz and House Speaker
Carlos J. Mendez Nunez, the Oversight Board said the Proposed
Budget includes overspending and ineligible expenditures in three
categories that total approximately $119 million.  Inability to
reduce spending in these areas would, regrettably, increase the
size of alternative corrective actions that would need to be
considered to offset the additional expenditures.

  (1) Additional legislative expenditures. The Proposed Budget
increases appropriations for the legislative branch significantly
beyond the level in the government's original budget submission.
Legislative spending increased from $131 million to $147 million
between the initial submission and the final Proposed Budget.  The
additional $16 million in legislative expenditures were added to
the Proposed Budget without the same rigor or review as other
components of the Proposed Budget, and, in some cases, appear
duplicative of other expenses already allocated to the legislative
branch.  The aggregate appropriations to the legislative branch
should be reduced to $131 million.

  (2) Additional non-legislative expenditures.  Additional
spending of $78 million in non-legislative expenditures were also
added to the Proposed Budget.  This includes, among other
appropriations, additional spending on payroll, operating
expenses, subsidies to municipalities, sports activity spending,
and appropriations for entities previously funded by other
sources. Spending in these areas is a violation as it depends on
inappropriate sources of savings, including the elimination of the
mandatory 1% required budgetary reserve, to fund these incremental
appropriations.  This additional spending should be eliminated in
its entirety.

   (3) Savings on earmarks and special expenditures.  Previous
Board guidance to the Governor and Legislature conveyed that
spending on certain earmarks and special expenditure
appropriations be reviewed and reduced by at least 33 percent, for
a targeted reduction of $30 million.  These included reductions in
appropriations to subsidize various industries, associations,
museums, foundations, choirs, ballets, operas, marathons,
festivals, municipalities, scholarships, and professional
athletes, among others, that are otherwise not subject to the
rightsizing adjustments imposed on other agencies.  The objective
for this request was to ensure consistency and equal treatment
amongst all appropriations in the Proposed Budget.  While many
smaller earmarks and special expenditures were reduced or
eliminated during the budget review process, the final savings
from this category of spending totaled less than $5 million.
Additional reductions totaling $25 million are warranted on these
earmarks and special expenditures.  The Oversight Board added that
the Proposed Budget does not adequately provide for at least $200
million in specific reforms required to implement the rightsizing
requirement in the certified Fiscal Plan.

  (4) Insufficient rightsizing measures.  Consistent with the
Fiscal Plan, the Proposed Budget included savings of $440 million
generated from personnel and non-personnel government rightsizing
targets.  Of that amount, however, at least $200 million of
potential savings lacked specific implementation plans that
demonstrate the types of agency level operational and structural
reforms needed to reduce the size of the government and eliminate
non-critical services.  Specific implementation plans must be
submitted to give the Board confidence those savings will be
achieved.  Without the identification of specific sources of
savings and adequate implementation plans to achieve such savings,
alternative corrective actions will be needed to improve
confidence that the appropriate level of rightsizing savings will
be met.

                        About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ("PROMESA").

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21.

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.  The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, management of other pretrial proceedings.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq.,
at O'Neill & Borges are onboard as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets
Inc. is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at:

           https://cases.primeclerk.com/puertorico

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.

                      Bondholders' Attorneys

Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin
Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc.,
Franklin Advisers, Inc., and the First Puerto Rico Family of
Funds, which collectively hold over $3.5 billion in COFINA Bonds
and over $2.9 billion in other bonds issued by Puerto Rico and
other instrumentalities, including over $1.8 billion of Puerto
Rico general obligation bonds ("GO Bonds").

White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual
Advisers LLC, Monarch Alternative Capital LP, Senator Investment
Group LP, and Stone Lion Capital Partners L.P.

Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.

Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).

                            Committees

The U.S. Trustee formed a nine-member Official Committee of
Retirees and a seven-member Official Committee of Unsecured
Creditors of the Commonwealth.  The Retiree Committee tapped
Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its
attorneys.   The Creditors Committee tapped Paul Hastings  LLP and
O'Neill & Gilmore LLC as counsel.


PUERTO RICO: Number of Municipal Defaults May Rise, Moody's Says
----------------------------------------------------------------
While all four Moody's-rated municipal defaults in 2016 were
related to the Commonwealth of Puerto Rico (Caa3 negative), that
number could more than double in 2017 as additional Puerto Rico
credits are restructured or default, according to Moody's
Investors Service in its annual default study.

The total default volume for 2016 was $22.6 billion, the highest
by a significant margin in the 47-year study period, according to
the report, "US Municipal Bond Defaults and Recoveries, 1970-
2016." This year's report also divides the municipal market into
three categories -- general governments, municipal utilities, and
competitive enterprises -- to better distinguish and assess
inherent credit distinctions and ratings movements in municipal
finance.

According to this year's update, the US municipal sector, while
broadly stable and highly rated, is fundamentally evolving.
Defaults and bankruptcies remain rare overall, but have become
more common in the last decade as credit distress has grown and
defaults have extended to general governments.

"There is a new normal of uneven economic recovery, tepid growth,
rising deferred maintenance and changing demographics affecting
the sector," says Alfred Medioli, a senior vice president at
Moody's.
"A small, but growing minority of municipal issuers now have
reduced resilience and will be in a weakened position when the
next recession arrives."

The dominant headwind in the sector is the growth in general
government leverage and increasing fixed cost burdens on
operations. While direct debt has increased a manageable 25% since
2004, state and local government leverage has grown substantially
due to pension debt. Unfunded municipal pension liabilities were
negligible 15 years ago, but reached a Moody's-estimated $5
trillion in 2016.

Puerto Rico is an extreme example of correlated risk within a
single credit family that not only includes GO bonds but extends
to lease and revenue debt. The four defaults in 2016 were from the
Puerto Rico Infrastructure Finance Authority (PRIFA), the
Government Development Bank (GDB), the Highways and Transportation
Authority, and Puerto Rico's general GO-backed debt.

Competitive enterprises, such as housing and healthcare, account
for the most rated default incidence over the long run, while
municipal utilities have led in terms of default volume. However,
most of these defaults occurred before 2007, and by dollar volume
these projects were relatively small. Many of the housing defaults
in this period have recovered with the strengthening of the renter
sector.

"Conversely, 45 of the 103 municipal defaults in Moody's study
occurred since 2007 and increasingly include general governments,"
said Medioli. "The amount of affected debt in these defaults has
also been notably higher than defaults in municipal utilities and
competitive enterprises."

Despite the record year, the five-year municipal default rate
since 2007 was only 0.15%, compared to 6.92% for corporates
(albeit a sector with lower ratings on average) over the same
period. Dating back to 1970, the extent of the study, the five-
year municipal default rate was 0.07%. "The vast majority of
municipal ratings remain firmly in investment grade, but there are
now proportionally fewer Aaa ratings and more A2 and A3 ratings,"
said Medioli.


ROCK STAR: Hires Landrau Rivera as Attorney
-------------------------------------------
Rock Star Chef Corporation, seeks authority from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Landrau
Rivera & Assoc., as attorney to the Debtor.

Rock Star requires Landrau Rivera to:

   a. advise the Debtor-in-Possession with respect to its duties,
      powers and responsibilities in the bankruptcy case under
      the laws of the U.S. and Puerto Rico in which the Debtor-
      in-Possession conducts its business, or is involved in
      litigation;

   b. advise the Debtor-in-Possession in connection with a
      determination whether a reorganization is feasible and, if
      not, aid the Debtor in the orderly liquidation of its
      assets;

   c. assist the Debtor-in-Possession with respect to
      negotiations with creditors for the purpose of proposing a
      viable plan of reorganization;

   d. prepare on behalf of the Debtor-in-Possession the necessary
      complaints, answers, orders, reports, memoranda of law and
      any other legal papers or documents;

   e. appear before the Bankruptcy Court, or any court in which
      the Debtor as Debtor-in-Possession asserts a claim interest
      or defense directly or indirectly related to the bankruptcy
      case;

   f. perform such other legal services for the Debtor as may be
      required in the bankruptcy proceedings or in connection
      with the operation and involvement with the Debtor's
      business, including but not limited to notarial services;
      and

   g. employ other professional services as necessary to complete
      the Debtor's financial reorganization with Chapter 11 of
      the Bankruptcy Code.

Landrau Rivera will be paid at these hourly rates:

     Attorney                  $175-$200
     Legal Assistant           $75

Landrau Rivera will be paid a retainer in the amount of $5,000.

Landrau Rivera will also be reimbursed for reasonable out-of-
pocket expenses incurred.

Noemi Landrau Rivera, member of Landrau Rivera & Assoc., assured
the Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estates.

Landrau Rivera can be reached at:

     Noemi Landrau Rivera, Esq.
     LANDRAU RIVERA & ASSOC.
     1423 Fraser Street, Urb. Reparto Landrau
     San Juan, PR 00927-0219
     Tel: (787) 774-0224
     Fax: (787) 793-1004

                   About Rock Star Chef Corporation

Rock Star Chef Corporation, filed a Chapter 11 bankruptcy petition
(Bankr. D.P.R. Case No. 17-03998) on June 2, 2017, disclosing
under $1 million in both assets and liabilities. The Debtor is
represented by Noemi Landrau Rivera, Esq., at Landrau Rivera &
Assoc.



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


TRINIDAD & TOBAGO: Increased Chances of Dollar weakening
----------------------------------------------------------
Aleem Khan at Trinidad Express reports that the Trinidad and
Tobago dollar will continue to depreciate, a Bank of Nova Scotia
vice president in Canada has said.

Brett House, who is also the bank's deputy chief economist, made
the forecast on June 20 in a Country Briefing from the bank's
Toronto head office, according to Trinidad Express.

The last forecast from the Scotiabank Economics team was accurate,
the report relays.

On September 1, 2016, Scotiabank analyst Erika Cain said the
country's US dollar (USD) reserves would dwindle if government did
not allow the TT dollar to depreciate further than it already had
at the time, the report notes.

The report relays that Mr. House said: "The Trinidadian economy is
heavily dependent on the health of its domestic energy industry
and global oil and gas prices: the energy sector accounts for more
than 80 per cent of Trinidadian exports and about a third of
government revenue.

Reductions in gas output and exports over the past three years
have generated significant pressure on the country's fiscal
accounts, balance of payments, and international reserves-all of
which have materially increased the chances of a substantial
further weakening in the TTD despite the government's recent Mid-
Year Budget Review promise that, 'There will be no drastic or
sudden depreciation of the currency'," the report adds.


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


VENEZUELA: Chopper Flight Leaves Company Mystified
--------------------------------------------------
Anatoly Kurmanaev and Kejal Vyas at The Wall Street Journal report
that the government's account of what caused it to put this
capital city under military control sounded like an action-movie
plot: Police commando Oscar Perez hijacks a police chopper, flies
around the capital promoting rebellion and dropping explosives,
then lands and disappears into thin air.

The narrative would be fitting for Mr. Perez, a part-time action
actor, according to The Wall Street Journal.  But Caracas
residents have been glued to social media, looking for any clues
that would explain the bizarre events of that night, the report
relays.

Mr. Perez had suddenly become the country's most-wanted man.
President Nicolas Maduro ordered the National Guard to deploy
around the Supreme Court building and other sensitive sites, the
report discloses.  In a late-night televised address to the
nation, he called the flight a "terror attack" aimed at
destabilizing the government, the report relays.  "The person who
took that aircraft launched a coup and took up arms against the
republic," the report quoted Mr. Maduro as saying.

No one was killed or injured in the incident that capped a
dramatic day in Venezuela, in which Mr. Maduro threatened civil
war, congress was overrun by national guards, and Attorney General
Luisa Ortega, who has become a fierce critic of Mr. Maduro, was
shorn of more of her powers, the report relays.  She was barred
from leaving the country and had her bank account frozen, the
report relays.

The president's fiery speech and rapid military response only
fueled suspicions among his opponents and ordinary Venezuelans
that Mr. Perez's flight was no act of resistance, but rather a
stunt staged by the unpopular government to justify further
consolidating its authority, the report notes.

"What happened doesn't make much sense," said Luis Manuel Esculpi,
a retired lawmaker and defense expert who said he was puzzled by
how a rogue helicopter could fly over the nation's capital without
setting off its air-defense system, the report discloses.

Efforts to reach Mr. Perez for comment were unsuccessful.

Shortly before taking off from a military air base in the capital,
Mr. Perez announced a rebellion against Mr. Maduro's "tyranny" in
a series of videos published on his social-media account, the
report relays.

"This fight is against the hunger, against lack of health care,"
he said, as four men with balaclavas and automatic weapons stood
behind him, the report notes.  "We have to reconnect with our
armed forces so that together we can recover our Venezuela."

It wasn't the first time Mr. Perez fixed his penetrating blue eyes
on an audience to deliver a dramatic speech, the report discloses.
In 2015 he starred in a Venezuelan action movie, "Suspended
Death," in which he pilots police helicopters, jumps out with a
parachute and shoots down Colombian gangsters, the report recalls.

Mr. Perez trained for two weeks as an actor before starring in the
movie, said the film's director, Oscar Rivas, the report notes.
He said the two became friends in recent years as Mr. Perez looked
to make short films showcasing the professionalism of the
country's police, which most Venezuelans revile for corruption and
indifference to rampant crime, the report relays.

"He's a pilot, he dives, he's very talented. He is splendid," Mr.
Rivas said, the report adds.

Mr. Perez's Instagram profile brings to mind spoofs like
"Zoolander" or the latest hit from Dwayne "The Rock" Johnson,
mixing photos of daring action exploits with amateur modeling
poses, the report says.  In some 900 photos and videos posted, Mr.
Perez is often featured in fatigues and holding a rifle posing
next to the logo of his employer, CICPC, Venezuela's FBI, the
report notes.

In one post he fires a handgun over his shoulder at a mannequin
behind him, aiming with a hand-held mirror, the report relays. In
another he is scuba diving and testing a gun underwater, the
report discloses.  One features him skydiving with a German
shepherd strapped to him, the report notes.

The government said Mr. Perez's plot was a real one, hatched by
the U.S. Central Intelligence Agency with the help of retired Gen.
Miguel Rodriguez Torres, a former top ruling-party official who
broke with Mr. Maduro earlier this year, the report notes.
Officials didn't provide any evidence, the report relays.  The
U.S. government has called Mr. Maduro's frequent assertions of
American involvement in antigovernment plots absurd and false, the
report notes.

Gen. Rodr°guez Torres dismissed the attack as "a stupid montage,"
the report notes.

They "attack with grenades, and none explode; attack with bullets
and no one is injured," he wrote in a text message in response to
questions, the report says.

Gen. Rodr°guez Torres, who headed Venezuela's intelligence agency
for 12 years, also questioned how a hostile helicopter could buzz
around the city freely without encountering any resistance for
more than half an hour, the report discloses.  He said the
Venezuelan military's Sukhoi jets frequently patrol over the
capital and that helicopters are permanently on duty to respond
within minutes to any attack, the report notes.

Mr. Maduro and his predecessor spent billions of dollars on
Russian jet fighters and antiaircraft missiles, the report relays.
"No one will be able to touch a centimeter of our fatherland," Mr.
Maduro said in 2013 after installing the latest-generation Russian
air-defense system, the report relays.  Just hours before the
incident, jet fighters flew over the capital in preparation for a
military parade planned for next month, the report adds.

Many Venezuelans are also wondering how Mr. Perez could remain at
large after apparently landing on a residential apartment building
in daylight, the report discloses.  The country's vice president
said that the missing helicopter had been found in the jungle
about 20 miles east of Caracas, the report notes.

Members of Venezuela's opposition have publicly played down the
incident, saying they need to know more before commenting, the
report relays.  In private, opposition leaders say they fear Mr.
Maduro will use the alleged chopper attack to further crackdown on
dissent, the report notes.  More than 80 people have died in the
last three months in clashes between protesters and security
forces, the report relays.

The report discloses that hours before Mr. Perez took off from the
air base, soldiers carried boxes of unidentified equipment into
the opposition-controlled congress, an action that engendered
clashes with lawmakers.  Congressmen say the move was a prelude to
a government takeover of the building ahead of Mr. Maduro's plan
to rewrite the constitution in August, the report relays.

Mr. Perez's alleged hijacking came as the government-controlled
court published a decision granting investigative powers to the
human-rights ombudsman, a close ally of the president, the report
notes.  That usurps the powers of the attorney general, Ms.
Ortega, who said she would ignore the ruling. "This is state
terrorism," she told reporters, the report relays.  "These
decisions don't have force because they aren't based on the
constitution," she added.  The court subsequently barred her from
leaving the country and froze her bank account, the report notes.

The report discloses that the decision to hand Ms. Ortega's powers
to the ombudsman could also compromise about 800 cases the
prosecutors have pending against police and military officials
accused of human-rights abuses during three months of protests by
making sensitive evidence available to the presidential ally, said
Nizar El Fakih, a lawyer and head of legal watchdog group
Proiuris.

"That thesis that the government is using smokescreens I feel
could be applied almost everyday," the report quoted Mr. El Fakih
as saying.

As reported by The Troubled Company Reporter-Latin America,
S&P Global Ratings, on Feb. 28, 2017, affirmed its 'CCC' long-term
foreign and local currency sovereign credit ratings on the
Bolivarian Republic of Venezuela.  The outlook on both long-term
ratings remains negative.  S&P also affirmed its 'C' short-term
foreign and local currency sovereign ratings.  In addition, S&P
affirmed its 'CCC' transfer and convertibility assessment on the
sovereign.


                            ***********


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


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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, 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 Joseph Cardillo at
856-381-8268.


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