TCRLA_Public/170725.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

               Tuesday, July 25, 2017, Vol. 18, No. 146


                            Headlines



A R G E N T I N A

GPAT COMPANIA: Moody's Assign B1 Rating to ARS400MM Debt
ROMBO COMPANIA: Moody's Assigns B1 Rating to Class 39 Bond Issue
TOYOTA COMPANIA: Moody's Assigns Ba3 Rating to ARS150MM Debt


B R A Z I L

BRAZIL: Raises Taxes on Fuels
ENERGISA S.A.: S&P Keeps 'BB' Global Scale Rating on Watch Neg.
TONON BIOENERGIA: S&P Suspends 'D' CCR on Lack of Information
TPI TRIUNFO: Clinches $673 Million Restructuring With Banks


D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: Medina Pledges Help for San Pedro Beekeepers


M E X I C O

MEXICO: Unemployment at 11-Year Low in June
MEXICO: Mexican Capital to Burn Waste for Electricity


P E R U

TERMINALES PORTUARIOS: Fitch Affirms BB- Rating on EUR110MM Notes


P U E R T O    R I C O

BAILEY'S EXPRESS: Taps Pullman & Comley as Legal Counsel
ESTEBAN DISTRIBUTOR: Unsecured Priority Claims to be Paid in 60Mos
LA SABANA: Disclosures Approved; Plan Confirmation Hrg on Sept. 20
NOVA TERRA: Taps Ruben Gonzalez Marrero as Legal Counsel
NOVA TERRA: Wants Exclusive Plan Filing Deadline Moved to Jan. 12


V E N E Z U E L A

VENEZUELA: Opposition Names Judges, Government Allies Cry Treason


                            - - - - -


=================
A R G E N T I N A
=================


GPAT COMPANIA: Moody's Assign B1 Rating to ARS400MM Debt
--------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo (MLA) has
assigned a B1 global local currency senior debt rating and an
Aa3.ar national scale local currency debt rating to GPAT Compania
Financiera S.A. (GPAT)'s XXIX series issuance. The notes will be
issued in two tranches, A and B, which will be due in 12 months
and 36 month respectively, for up to ARS400 million. All ratings
assigned to GPAT are on review for downgrade, in line with the
review on other ratings assigned to the entity.

The following ratings were assigned to GPAT Compania Financiera
S.A.:

  ARS400 million Senior Unsecured Debt Issuance: B1 Global Local
  Currency Debt Rating; Rating Under Review for Downgrade

  Aa3.ar Argentina National Scale Local Currency Debt Rating;
  Rating Under Review for Downgrade

RATINGS RATIONALE

The review for downgrade of GPAT's ratings reflects the review of
its parent Banco Patagonia S.A.'s ratings (Patagonia, Ba3 on
review, b3) as GPAT's ratings incorporate the strong links between
the operations of the bank and this subsidiary and the probability
that the company will receive financial support from Banco
Patagonia, in the event of stress. As the finance company of
Patagonia, GPAT is primarily engaged in financing car sales of
General Motors dealers through Patagonia's branch network, while
Patagonia provides funding for dealers' floor plans.

In addition, the ratings also consider Argentina's operating
environment, which remains challenging despite various market-
friendly policy reforms implemented by the new administration that
are expected to result in a return to economic growth and a
continued decline in inflation this year, as well as GPAT's
monoline business model. Although credit costs doubled in 12
months ended in March 2017 due to weak economic conditions in
Argentina, GPAT was still able to post an annualized return on
assets of 8.65% in 1Q17. This ratio is high even by Argentine
standards, which are distorted by the high rate of inflation.

Though they remain moderate, nonperforming loans have gradually
risen over the past five quarters, reaching 1.75% in 1Q17 from
just 1.04% as of year-end 2015. However, the company's high loan
book granularity, the strong collateralization structure of its
portfolio, and loan loss reserves equal to 2% of gross loans in
1Q17 help to mitigate the increase in asset risk.

GPAT's ratings also incorporate risks associated with a liability
structure mainly reliant on market funding, as is the case of
other automobile finance companies.

The Aa3.ar NSR is the lowest of the three alternatives on the
Argentine national scale corresponding to GPAT's B1 global scale
rating, reflecting the review for downgrade of the issuer's global
scale rating.

WHAT COULD CHANGE THE RATING UP/DOWN

GPAT's ratings could face downward pressure if ratings for its
parent, Banco Patagonia, are downgraded or if GPAT's financial
fundamentals deteriorate. Given the review for downgrade, upward
rating pressure is unlikely at this time. However, the ratings
could be confirmed at the current level if and when Patagonia's
ratings are confirmed.

The principal methodology used in these ratings was Finance
Companies published in December 2016.

GPAT Compania Financiera S.A. is headquartered in Buenos Aires,
Argentina, and reported ARS4,763 million of total assets and
ARS864 million of shareholders' equity as of March 2017.


ROMBO COMPANIA: Moody's Assigns B1 Rating to Class 39 Bond Issue
----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A.
assigned a B1 global local currency senior debt rating and Aa2.ar
national scale local currency debt rating to Rombo Compania
Financiera's Class 39 bond issuance, due in 36 months, for up to
of ARS500 million.

The global ratings have positive outlook in line with the positive
outlook on Argentina's B3 Government Bond Rating, while the
national scale ratings have stable outlook.

The following ratings were assigned to Rombo Compania Financiera
S.A.'s expected issuances:

Class 39 up to ARS 500 million:

  B1 Global Local Currency Debt Rating

  Aa2.ar Argentina National Scale Local Currency Debt Rating

RATINGS RATIONALE

Rombo's global scale rating (GSR) is constrained by Argentina's
operating environment, which remains challenging despite various
market-friendly policy reforms implemented by the new
administration that are expected to result in a return to economic
growth and a continued decline in inflation this year. The
environmental challenges outweigh Rombo's sound financial
fundamentals. However, the rating benefit from Moody's assessment
of a moderate probability that Rombo will receive financial
support from its main parent, RCI Banque (Baa1, stable) in case of
stress. Rombo, which is 60% owned by RCI Banque and 40% by BBVA
Banco Frances (unrated) and together with RCI Banque form the
principal financial arm of its ultimate owner, Renault S.A. (Baa3,
stable) in Argentina, is responsible for nearly 50% of Renault's
financed sales in the country. Consequently, the company is one of
the stronger credits in Argentina, as reflected by its Aa2.ar
national scale rating (NSR).

The rating also consider Rombo's monoline business model dedicated
to the financing of Renault vehicles. The company's lack of
revenue diversification can result in high earnings volatility, as
seen in the last 15 months. Net income plummeted to just 0.3% of
averaged managed assets in 1Q17, from 3.1% in calendar year 2016
and 9.5% the previous year. Capitalization also dropped by more
than half since year-end 2014, driven by a 150% increase in total
managed assets during the last two years coupled with the decline
in profitability. Nevertheless, tangible common equity continued
to equal a relatively strong 13.4% of tangible managed assets as
of year-end 2016. While non-performing loans remain low thanks to
the company's focus on middle and high-income individuals,
delinquency levels are likely to rise in the medium term as the
company's risk appetite rises in line with improving economic
conditions. These risks are balanced in part by Rombo's risk
management practices that are aligned to those of its parent
companies. The ratings also include risks associated with a
liability structure mainly reliant on market funds, as is the case
of other automobile finance companies.

While the country's operating environment remains challenging, the
positive outlook on Rombo's GSR reflects the expected impact of
market-friendly policy reforms implemented in by the new
administration, which are expected to result in a return to
economic growth and a continued decline in inflation this year. In
turn, this will create new business opportunities for Rombo that
should help ease its transition into a more competitive, market-
driven operating environment.

Notwithstanding the positive outlook on the global scale ratings,
the outlook on the national scale ratings remains stable to
reflect the likelihood that the correspondence between Argentine
national scale and global scale ratings will be recalibrated if
and when the sovereign is upgraded such that most global scale
ratings will correspond to lower Argentine national scale ratings
than is currently the case. Consequently, even if the global scale
ratings are upgraded, the national scale ratings are not likely to
be affected. Rombo's Aa2.ar NSR is the middle of three national
scale ratings corresponding to its B1 GSR.

WHAT COULD CHANGE THE RATING UP/DOWN

An upgrade of the Argentine sovereign would put upward pressure on
the company's GSR, provided the company continues to demonstrate
sound operating performance. Conversely, a downgrade of the
Argentine sovereign could put downward pressure on the bank's GSR,
but this is unlikely at this time given Argentina's positive
outlook. Both the GSR and the national scale rating could face
upward or downward pressure if the rating of Renault, S.A. were to
be upgraded or downgraded. The ratings could also face downward
pressure if Rombo's profitability does not recover from current
weakened levels and capital continues to decline

The principal methodology used in these ratings was Finance
Companies published in December 2016.


TOYOTA COMPANIA: Moody's Assigns Ba3 Rating to ARS150MM Debt
------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A.
assigned a Ba3 global local currency senior debt rating and a
Aaa.ar national scale local currency debt rating to Toyota
Compania Financiera de Argentina S.A. (TCFA)'s expected class VI
issuance of up to ARS150 million. The issuance, which will be due
in one year, is under Toyota's ARS200 million short term senior
unsecured program.

All ratings have stable outlook.

The following ratings were assigned to Toyota Compania Financiera
de Argentina S.A.:

ARS150 million Senior Unsecured Short Term Debt Issuance:

  Ba3 Global Local Currency Senior Unsecured Debt Rating

  Aaa.ar Argentina National Scale Local Currency Senior Unsecured
  Debt Rating

RATINGS RATIONALE

TCFA's global scale rating (GSR) is constrained by challenges
related to Argentina's operating environment, which remains
challenging despite various market-friendly policy reforms
implemented by the new administration that are expected to result
in a return to economic growth and a continued decline in
inflation this year. These environmental challenges outweigh
TCFA's sound financial fundamentals. However, the Ba3 global local
currency senior debt rating also reflects the very high
probability that Toyota's ultimate parent, Toyota Motor
Corporation (Japan) (Aa3 stable), will support the issuer in
situations of stress. Thanks to parental support, the company is
one of the strongest credits in Argentina, as reflected by its
Aaa.ar national scale rating.

The ratings also consider TCFA's monoline business model dedicated
to the financing of Toyota vehicles and the increasing level of
competition within the car-financing industry in Argentina. The
company's profitability during 2016 and in 1Q2017 was relatively
modest by Argentine standards, which are distorted by the high
rate of inflation. While non-performing loans remain low thanks to
the company's focus on middle and high-income individuals,
delinquency levels are likely to rise as the company's risk
appetite increases in line with improving economic conditions.
These risks are balanced in part by the company's solid risk
management policies that are aligned to those of its parent and
its relatively strong capitalization indicators. The ratings also
include risks associated with a liability structure mainly reliant
on market funds, as is the case of other automobile finance
companies.

Moody's assessment of a very high probability of parental support
considers TCFA's key role as the financial agent for Toyota
Corporation in Argentina and its strong commercial and strategic
importance to the corporation.

The stable outlooks considers that the GSR is constrained by
Argentina's local currency debt ceiling. Even if the company's
intrinsic creditworthiness were to deteriorate, its debt ratings
would be unaffected due to parental support.

WHAT COULD CHANGE THE RATING UP/DOWN

An upgrade of the Argentine sovereign and a corresponding increase
in Argentina's debt and deposit ceilings would put upward pressure
on the company's GSR, provided the entity continues to demonstrate
sound operating performance. Conversely, a downgrade of the
Argentine sovereign could put downward pressure on the entity's
GSR, but this is unlikely at this time given Argentina's positive
outlook.

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



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


BRAZIL: Raises Taxes on Fuels
-----------------------------
Jeffrey T. Lewis and Luciana Magalhaes at Bloomberg News, citing
statements from Brazil's finance and planning ministries, reported
that Brazil has doubled some taxes on fuels as the government
struggles to cut its budget deficit.

The increases affect a levy known as PIS/Cofins, a spokeswoman for
the finance ministry said, Bloomberg News notes. The measure will
raise an extra BRL10.4 billion (US$3.3 billion) this year,
according to a note sent by the two ministries. Other taxes levied
on fuels are unaffected, according to Bloomberg News.

President Michel Temer's administration has been forced to cut
spending, and now raise taxes, to try make up for some of the
resulting shortfall in tax proceeds, Bloomberg News relays.

The tax on gasoline will be increased to 79 cents ($0.25) a liter
from 38 cents, and is forecast to raise an extra BRL5.2 billion
this year, Bloomberg News relays.  The tax on diesel fuel will
rise to 46 cents from 25 cents, adding BRL4 billion to government
coffers in 2017, the report adds.

Smaller increases to the PIS/Cofins tax on ethanol will raise an
additional BRL1.3 billion this year, the ministries said,
Bloomberg News cites.  The figures add up to more than 10.4
billion because of rounding, the report adds.

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.


ENERGISA S.A.: S&P Keeps 'BB' Global Scale Rating on Watch Neg.
---------------------------------------------------------------
S&P Global Ratings said its 'BB' global scale and 'brAA-' national
scale ratings on Energisa S.A. and on its subsidiaries, Energisa
Paraiba-Distribuidora de Energia S.A. (Energisa Paraiba) and
Energisa Sergipe-Distribuidora de Energia S.A. (Energisa Sergipe),
remain on CreditWatch negative.

Energisa's operating and financial performance has been slightly
above our expectations over the past few quarters. The company
continues ramping up operations of the distributors that it
acquired from Rede Energia. In addition, during 2016, the group
managed to recover in full its regulatory assets. Its capital
structure also improved, especially after last year's R$1.5
billion public equity offering. S&P expects Energisa to report
adjusted debt to EBITDA of about 3.0x and FFO to adjusted debt of
around 20% over the next few years, while it maintains an adequate
liquidity position, which should allow it to weather Brazil's
current economic woes.

The group's stand-alone credit profile remains unchanged at 'bb+',
but the ratings on Brazil (BB/Watch Neg/B; brAA-/Watch Neg/--)
limit the corporate credit ratings on Energisa and on its
subsidiaries. S&P said, "In our view, the Brazilian electric
sector is highly regulated, especially the distribution and
transmission segments because the regulator (ANEEL) determines the
rates for each company of the sector. We believe Energisa, as
other regulated utilities in Brazil, could be subject to
government intervention in a scenario of sovereign default."


TONON BIOENERGIA: S&P Suspends 'D' CCR on Lack of Information
-------------------------------------------------------------
S&P Global Ratings suspended its 'D' corporate credit rating on
Tonon Bioenergia S.A. S&P said, "At the same time, we suspended
the 'D' issue-level ratings on the company's debts. We are also
suspending our '4' recovery rating on the company's secured debt
and our '6' recovery rating on its unsecured debt.

"If the company provides sufficient information within the next 90
days, we would assess this information to determine the rating
outcome. However, if the level of information remains insufficient
or is not of satisfactory quality to form a rating opinion, we
will withdraw the ratings."


TPI TRIUNFO: Clinches $673 Million Restructuring With Banks
-----------------------------------------------------------
Guillermo Parra-Bernal at Reuters reports that TPI Triunfo
Participacoes & Investimentos SA and a pool of about 20 banks have
agreed on terms to restructure BRL2.113 billion (US$672.6 million)
of debt, giving the Brazilian infrastructure firm a lifeline to
finalize projects and downsize gradually.

The process will take place as an out-of-court workout, in which
companies seek a limit on the influence of some creditors in the
upcoming rounds of their restructuring, said Andre Bucione,
managing director at Alvarez & Marsal Holdings LLC, which advised
Triunfo on the process, according to Reuters.

"Lenders were always satisfied with the company's willingness to
discuss how to honor its debt, facilitating an accord that will be
beneficial to all parties involved," said an executive at one of
Triunfo's creditors, who requested anonymity in discussing terms
of the workout, the report notes.

The report relays that Triunfo borrowed aggressively at the start
of the decade to fuel expansion in toll roads, electricity and
airports. Still, Brazil's worst-ever recession has eroded
profitability at the company and about BRL1 billion of Triunfo's
debt will mature by the end of next year.

Triunfo had about BRL3.5 billion in total borrowings as of March,
the report notes.

While the out-of-court workout does not impose asset sales on
Triunfo, it should accelerate the reshaping of a company that grew
too big, too fast, the same executive said, the report discloses.
A total of 82 percent of Triunfo's creditors adhered to the
workout, Mr. Bucione said, the report relays.

Brazil's state-controlled development bank BNDES, also a Triunfo
shareholder, did not participate in the process, the report says.

Under the agreement, creditors will be offered two options: to be
paid in full in eight years, four of which will have a grace
period and the other four, fully amortized; or to take a reduction
and get paid up to 110 million reais once Triunfo's legal team and
a commercial court validate the restructuring, Mr. Bucione said,
the report notes.

Terms of the deal are similar to those reported by Reuters on June
19, when Triunfo agreed to sell a 50 percent stake in Terminal
Portuario de Navegantes SA for about BRL1.3 billion plus an earn-
out, the report says.

                           Expensive Loan

Since Reuters reported Triunfo's exit from the terminal known as
PortoNave, common shares have jumped 47 percent to BRL4.30, the
report relays.

A successful out-of-court workout could help Triunfo speed up the
sale of stakes in a hydropower dam, a stake in an airport
concession and other businesses, people told Reuters at the time
of the port divestiture, the report notes.

Concern about the pace of negotiations with creditors and a tussle
with creditor and shareholder BNDES [BNDES.UL] had driven the
stock down 42 percent in the two months through mid-June, the
report says.

Triunfo's restructuring is the latest out-of-court workout among
builders and banks in recession-hit Brazil, the report relays.  A
recent one involved the oil drilling unit of Odebrecht SA, a
builder ensnared in a massive corruption scandal that sought to
renegotiate its debt, the report discloses.

The workout was devised to help Triunfo repay an 800 million-real,
foreign-currency denominated loan from hedge fund Farallon Capital
Management LLC, which bore very high interest rates, Mr. Bucione
said. Triunfo secured the money putting a stake in the port as
collateral, the report says.

For banks, the accord will help them avoid setting aside extra
provisions on Triunfo's outstanding borrowings while maintaining
financing for the company's toll road, airport and construction
projects, people involved in the process said, the report notes.

Creditors who seek to be repaid earlier will participate in an
auction that will define the optimal haircut, the report says.
They would be paid BRL50 million upfront and BRL35 million after
court approval, the report relays.  The remaining BRL25 million
would hinge on other conditions and another auction, the report
adds.



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


* DOMINICAN REPUBLIC: Medina Pledges Help for San Pedro Beekeepers
------------------------------------------------------------------
Dominican Today reports that Dominican Republic President Danilo
Medina pledged to help honey producers in the province with an
Agricultural Development Fund loan to buy equipment and improve
production.

The country produces nearly 260,000 gallons of honey per year,
with 3,500 beekeepers and more than 74,000 hives, each with an
individual average output of 3.5 gallons of honey per year,
according to Dominican Today.

The honey harvest starts in September with a moderate yield, but
peaks in April and May the following year, the report notes.

Honey exports in 2016 were around 557.0 metric tons worth US$1.4
million, the report relays.

The announced project includes acquisition of equipment, queen
bees and hives, as well as the construction of a warehouse and
training center for beekeepers to raise production, the report
ads.

As reported in the Troubled Company Reporter-Latin America on July
24, 2017, Moody's Investors Service has upgraded the Dominican
Republic's long term issuer and debt ratings to Ba3 from B1 and
changed the outlook to stable from positive, based on the
following key drivers:

(1) The Dominican Republic's continued robust growth outlook
     compared to rating peers, coupled with a reduction in
     external risks as current account deficits have declined and
     international reserves have increased.

(2) The reduction in fiscal deficits over the last four years and
     Moody's expectation that fiscal deficits will remain shy of
     3% of GDP, supported by fiscal restraint and reduced
     transfers to the electricity sector.



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


MEXICO: Unemployment at 11-Year Low in June
-------------------------------------------
Anthony Harrup at The Wall Street Journal reports that Mexico's
jobless rate fell to an 11-year low in June as private-sector
employers continued hiring, although wages lagged behind
inflation.

Seasonally adjusted unemployment was 3.3% last month, down from
3.5% in May and the lowest level since May 2006, the National
Statistics Institute said, according to The Wall Street Journal.
Urban unemployment was unchanged from May at 3.9%, the report
relays.

"Labor market data paints a much brighter picture of the Mexican
economy," PNC Financial Services economist Bill Adams said in a
note, the report notes.

A pickup in Mexican inflation to the current 6.3% has led to
higher nominal wage demands, although increases in collective
bargaining contracts in the first half of the year have been below
inflation, according to Labor Ministry data, the report relays.

"The problem for Mexico has never really been the unemployment
rate, but rather low wages," said Jonathan Heath, an economist at
the Mexican Institute of Finance Executives, the report says.
"The jobs being created are very low paid," the report notes.

Private-sector employers hired 86,000 people in June, and around
808,000 in the past year putting formal employment 4.4% above its
year-earlier level, the report relays.

The large portion of the workforce with low labor skills, and high
poverty levels, means many people lack the resources for long job
searches and will take any job at any price, "because they need to
eat," Mr. Heath said, the report notes.  As a result, unemployment
in Mexico is higher among the more educated than among low
earners, and higher in cities than in rural areas, he added, the
report adds.


MEXICO: Mexican Capital to Burn Waste for Electricity
-----------------------------------------------------
EFE News reports that Mexico's capital has reached a deal to burn
waste for electricity despite the project's environmental risks,
including the possibility that emissions will exceed the range
permitted under federal regulations.

The goal of the contract that the Mexico City government's Urban
Management Agency (AGU) signed with Proactiva Medio Ambiente, a
unit of French group Veolia, is to eliminate 4,500 tons of solid
waste per day -- nearly a third of the city's total -- and
leverage the heat produced in the waste-burning process to
generate 965,000 megawatt-hours of electricity annually, according
to EFE News.

This energy will be used to power the capital's metro system,
which transports more than 5.5 million people daily, the report
relays.

But environmental watchdog Greenpeace opposes the project,
pointing to various red flags in the contract, the report notes.

For example, in the risk section, it is accepted that
contaminating emissions could be above the range permitted under
environmental regulations, the report discloses.

"These could include not only greenhouse gases but also cancer-
causing substances like dioxins and furans that are emitted as a
result of waste incineration and accumulate in the body and the
environment," Greenpeace attorney Carlos Samayoa warned, the
report relays.

The report notes that Mr. Samayoa said the principles of
prevention and precaution established in international agreements
like the 1992 Rio Declaration on Environment and Development
should be applied in this instance.

The Rio Declaration states that "where there are threats of
serious or irreversible damage, lack of full scientific certainty
shall not be used as a reason for postponing cost-effective
measures to prevent environmental degradation," the report relays.

Greenpeace also warned that another clause in the contract for the
thermovalorization plant states that if the amount of waste is not
sufficient to generate the electricity the metro system requires
the AGU will provide additional waste as feedstock, the report
notes.

The thermovalorization plant will be the first of its kind in
Latin America and the first to be built at an altitude of 2,400
meters (7,870 feet) above sea level, the report relays.

Construction is scheduled to begin in late 2018 if the plant is
found to be in compliance with various local and federal
environmental requirements, the report adds.



=======
P E R U
=======


TERMINALES PORTUARIOS: Fitch Affirms BB- Rating on EUR110MM Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed the rating of Terminales Portuarios
Euroandinos Paita's (TPE) EUR110 million secured notes at 'BB-'.
The Rating Outlook has been revised to Positive from Stable.

TPE's Outlook revision to Positive reflects sustained volume and
revenue growth exceeding Fitch's Base Case projections, as well as
the expectation that such trend will continue in the future. It
also incorporates the successful completion of Phase II, as
required by the concession agreement, with only minor penalties
for delay.

KEY RATING DRIVERS

SUMMARY: The rating of 'BB-' reflects a weaker asset with high
concentration of cargo types, business lines, and customers, as
well as limited flexibility to manage toll increases. The rating
also considers the project's obligation to perform capital
investments once certain thresholds are met, leading to pressured
financial ratios, moderate leverage, and potential dependence on
cash reserves in later years when the majority of principal
payments will be due. The Port of Paita depends on some growth in
container volume and is exposed to increases in operating
expenses. In Fitch's Rating Case, the project's Debt/CFADS ratio
of 8.03x and average debt service coverage ratio (DSCR) of 1.76x
could indicate a higher rating, but required investments result in
DSCR coverages below 1.0x in four years, creating dependence on
cash reserves in order to meet debt service obligations.

Exposure to Cargo Volume (Revenue Risk - Volume: Weaker): The Port
of Paita is a secondary port of call with considerable
concentration in cargo types, business lines, and customers.
Profitability has been improving given the operator's strategic
emphasis on special services. The port is exposed to cargo
volatility as contractual agreements with shipping lines are
limited, and weak overland transportation infrastructure limits
the service area mostly to commodity exports. The region is
exposed to material volatility of fishing-related exports due to
the area's exposure to climatic effects related to El Nino.

Limited Pricing Flexibility (Revenue Risk - Price: Weaker): Port
tariffs and fees were initially established in the concession
agreement, and are subject to regulatory modifications every five
years, beginning in 2019, reflecting limited flexibility to adjust
for increasing costs. A minimum revenue guarantee (MRG) was
granted by the Government of Peru; however, the amount of the
guarantee and the complex, extensive process of executing the
guarantee does not adequately protect the project from its
obligations.

Defined Capital Program (Infrastructure Development & Renewal:
Midrange): The concession agreement established a well-defined
capital improvement, planning, and funding process, composed of
four phases, and includes mandatory and optional investments.
Phase I included the majority of investments and was finalized in
2014 with Phase II being completed in 2016. Subsequent phases are
triggered by defined volume levels, and are funded by special,
separate reserves. Phase III is expected to commence in 2022.

Adequate Structural Protections (Debt Structure: Midrange): The
project's financial flexibility is sustained by adequate liquidity
reserves, available for debt service payments and construction
costs. The structure incorporates a strong distribution test in
order to trap cash to prefund future investment costs. A five-year
principal repayment grace period provides flexibility in the
initial years; however, the amortization schedule results in
significant back-loading, since half of the debt is expected to be
repaid in the last six years of the debt's 25-year term.

Metrics: Fitch's Rating Case Debt/CFADS is 8.03x, reflecting
dependence on volume growth to maintain healthy financial ratios.
The concession agreement allows for adequate cash flow generation.
However, required investments for Phases III and IV (additional
investments), significantly reduces the project's financial
flexibility and its dependence on reserves, with DSCR averaging
1.76x but with four years below 1.0x coverage.

Peers: The Port of Paita is most comparable to Commonwealth Ports
Authority (CPA; 'BB-'/Stable Outlook. Both are classified as small
ports and have weaker volume and price risk attributes with CPA
having nearly a 100% import-based cargo operation. Paita is
considered an Operator Port, while CPA operates under a "Landlord"
scheme, although Fitch's criteria does not directly favor one type
over the other. Under Fitch's Rating Cases CPA has an average DSCR
of 1.91x through 2021 and Paita has 1.76x; however, the former has
considerably lower leverage, becoming negative in 2020 in
comparison to Paita's 8.03x.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action:

-- Regardless of the reason that may cause it, performance
    materially below the initial base case projections, which
    would reduce cash available and pressure financial metrics.

-- Escalation of operating costs coupled with declining cargo
    volume and revenues.

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action:

-- Sustained over-performance with controlled expenses that
    results in less dependence on cash reserves and future volume
    growth in order to meet mandatory investments and debt service
    obligations.



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


BAILEY'S EXPRESS: Taps Pullman & Comley as Legal Counsel
--------------------------------------------------------
Bailey's Express, Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Connecticut to hire legal counsel in
connection with its Chapter 11 case.

The Debtor proposes to hire Pullman & Comley, LLC to, among other
things, give legal advice regarding its duties under the
Bankruptcy Code, and assist in the preparation of a bankruptcy
plan.

The standard rates charged by the firm range from $215 per hour
for associates to $700 per hour for senior partners.  The hourly
rates for paralegal services range from $190 to $315.

Elizabeth Austin, Esq., and Jessica Grossarth Kennedy, Esq., the
attorneys who will be handling the case, will charge $510 per hour
and $385 per hour, respectively.

The firm will receive a retainer in the amount of $100,000.

Pullman & Comley is a "disinterested person" as defined in section
101(14) of the Bankruptcy Code, according to court filings.

The firm can be reached through:

     Elizabeth J. Austin, Esq.
     Jessica Grossarth Kennedy, Esq.
     Pullman & Comley, LLC
     850 Main Street, P.O. Box 7006
     Bridgeport, CT 06601-7006
     Phone: 203-330-2000
     Email: eaustin@pullcom.com
     Email: jgrossarth@pullcom.com

                      About Bailey's Express

Headquartered in Middletown, Connecticut, Bailey's Express --
http://www.baileysxpress.com/-- is a less than truckload carrier.
It provides service across the nation and is dedicated in helping
Connecticut, Massachusetts and Rhode Island companies market their
products throughout the U.S. including Hawaii and Alaska.  It has
distribution points in Charlotte, Dallas, Denver, Easton, Fontana,
Indianapolis, Jacksonville, Memphis, Neenah, Phoenix, Salt Lake
City and Toledo.  It also provides service to Mexico, Puerto Rico
& Canada.

Bailey's Express filed for Chapter 11 bankruptcy protection
(Bankr. D. Conn. Case No. 17-31042) on July 13, 2017, estimating
its assets and liabilities at between $1 million and $10 million.
The petition was signed by David Allen, chief financial officer.

Judge Ann M. Nevins presides over the case.

Elizabeth J. Austin, Esq., and Jessica Grossarth Kennedy, Esq., at
Pullman & Comley, LLC, serves as the Debtor's bankruptcy counsel.


ESTEBAN DISTRIBUTOR: Unsecured Priority Claims to be Paid in 60Mos
------------------------------------------------------------------
Esteban Distributor Inc. filed with the U.S. Bankruptcy Court for
the District of Puerto Rico a small business disclosure statement
and plan of reorganization dated July 14, 2017.

The plan proposes that Class 2 unsecured priority claims will be
paid in full from the Debtor's on going sales operations within 60
months in years 1 and 2 of the plan.

The previous version of the plan did not specify a time period for
the payment. It only stated that Class 2 unsecured priority claims
will be paid in full from the Debtor's on going sales operations
in years 1 and 2 of the plan.

The hearing on final approval of the Disclosure Statement and to
consider the confirmation of this plan is on August 18, 2017, at
9:30 a.m.

A full-text copy of the Latest Disclosure Statement is available
at http://bankrupt.com/misc/prb16-03799-11-134.pdf

                   About Esteban Beauty

Esteban Beauty Distributor Corp. sought protection under Chapter
11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the
District of Puerto Rico (Case No. 16-03796) on May 11, 2016.

Esteban Distributor Inc.'s bankruptcy case is Case no. 16-03799.


LA SABANA: Disclosures Approved; Plan Confirmation Hrg on Sept. 20
------------------------------------------------------------------
Judge Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico has approved La Sabana Development LLC's
disclosure statement explaining the Debtor's Chapter 11 Plan dated
May 24, 2017.

Acceptances or rejections of the Plan may be filed in writing
on/or before 14 days prior to the date of the hearing on
confirmation of the Plan.

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

A hearing for the consideration of confirmation of the Plan will
be held on Sept. 20, 2017, at 9:00 A.M. at the Jose V. Toledo
Federal Building and US Courthouse, 300 Recinto Sur Street,
Courtroom 3, Third Floor, San Juan, Puerto Rico.

The Plan provides that Class 3 general unsecured creditors will
receive no distribution.  The Plan will be funded with proceeds
from the sale of its real estate property, as per the 363 motion
filed on May 17, 2017. All of the proceeds received from said sale
will be paid to secured creditor PRCI LOAN, LLC, who consented to
the sale.

A copy of the Fifth Amended Disclosure Statement is available at:

            http://bankrupt.com/misc/prb15-08743-143.pdf

                     About La Sabana Development

La Sabana Development LLC is a limited liability corporation, duly
registered and authorized to do business in the Commonwealth of
Puerto Rico.  The Debtor is engaged in the business of developing
residential units.

The Debtor filed a Chapter 11 petition (Bankr. D.P.R. Case No.
15-08743), on Nov. 4, 2015.  The case is assigned to Judge Mildred
Caban Flores.  The Debtor's counsel is Hector Eduardo Pedrosa
Luna, Esq., The Law Offices of Hector Eduardo Pedrosa Luna, PO Box
9023963, San Juan, Puerto Rico.  At the time of filing, the Debtor
had estimated both assets and liabilities ranging from $10 million
to $50 million each.  The petition was signed by Cleofe
Rubi-Gonzalez, president.


NOVA TERRA: Taps Ruben Gonzalez Marrero as Legal Counsel
--------------------------------------------------------
Nova Terra, Inc. seeks approval from the U.S. Bankruptcy Court for
the District of Puerto Rico to hire legal counsel.

The Debtor proposes to hire Ruben Gonzalez Marrero & Associates to
give legal advice regarding its duties under the Bankruptcy Code,
and provide other legal services related to its Chapter 11 case.

Ruben Gonzalez Marrero, Esq., will charge an hourly rate of $250
for his services.

Mr. Marrero disclosed in a court filing that his firm is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.

The firm can be reached through:

     Ruben Gonzalez Marrero, Esq.
     Ruben Gonzalez Marrero & Associates
     Carr. 174, Bloque 21-24,
     Urb. Santa Rosa
     Bayamon, PR 00959
     Tel: (787) 798-8600
     Email: rgmattorney1@hotmail.com
     Email: rgm@microjuris.com

                      About Nova Terra Inc.

Based in Arecibo, Puerto Rico, Nova Terra, Inc. sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No.
17-01968) on March 23, 2017.  The case is assigned to Judge Edward
A. Godoy.


NOVA TERRA: Wants Exclusive Plan Filing Deadline Moved to Jan. 12
-----------------------------------------------------------------
Nova Terra, Inc., asks the U.S. Bankruptcy Court for the District
of Puerto Rico to extend the exclusivity periods during which only
it may file and solicit votes to accept a Chapter 11 plan from
July 20, 2017, and Sept. 18, 2017, respectively, through and
including Jan. 12, 2018, respectively.

The Debtor asserts that without an extension, the Exclusive
Periods will expire in the midst of its plan confirmation process,
presenting a risk of undue interference and disruption to the
confirmation process. After the Commencement Date, the Debtor has
reached an agreement with Banco Popular De Puerto Rico concerning
the moneys garnished and withheld by BPPR, which has facilitated
Debtor's move and vacancy from PRIDCO'S properties to new
facilities, which was concluded on late June 2017.  Furthermore,
the Debtor has been complying with its financial obligations and
fiscal duties since the commencement of the case.

The Debtor adds that extension of the Exclusive Periods will
permit it to confirm the Plan that has been developed with the
input and cooperation of the Debtor's major constituencies without
unwarranted interference from any dissident party attempting to
derail the restructuring process.

                      About Nova Terra Inc.

Based in Arecibo, Puerto Rico, Nova Terra, Inc., sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No.
17-01968) on March 23, 2017.  The case is assigned to Judge Edward
A. Godoy.  Ruben Gonzalez Marrero, Esq., at Ruben Gonzalez Marrero
& Associates serves as the Debtor's legal counsel.



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


VENEZUELA: Opposition Names Judges, Government Allies Cry Treason
-----------------------------------------------------------------
Anatoly Kurmanaev at The Wall Street Journal report that the
opposition-held congress swore in 13 new Supreme Court judges
Friday, July 21, as replacements for pro-government justices, in a
bid to undermine the government's plan to have a special assembly
draft a new constitution.

Moments after the appointments, the top judge in the
constitutional chamber, Juan Jose Mendoza, accused those the
congress named of treason and asked police to take "coercive
action," according to The Wall Street Journal.  He declined to
provide details.

"Justice will take care of any usurpers," Diosdado Cabello, a
close ally of President Nicolas Maduro and vice president of the
ruling socialist party, said Fin the western city of Merida during
a speech to rally support for the constituent assembly, according
to The Wall Street Journal.

The court's constitutional chamber earlier said any such a move by
the opposition would constitute a crime and a usurpation of its
powers, the report notes.  The court, which has a total of 32
justices, has been unerringly allied with Mr. Maduro, the report
relays.

The move by Mr. Maduro's adversaries was the latest in a series of
recent actions to challenge the government and rally international
support, the report says.  They said they had the two-thirds
majority in congress needed to appoint new judges, as laid out in
the constitution the government wants to shelve, the report
relays.

"Venezuela is going to have judges who don't receive orders from
anyone, judges who serve justice and are not employees of the
president," opposition Congressman Carlos Berrizbeitia said, the
report discloses.

One of the jurists appointed on Friday, Alejandro Rebolledo, told
reporters the new justices wouldn't be intimidated, the report
notes.  "What Venezuela wants are judges who have courage and
firmness," he said when asked about the possibility of going to
jail, the report relays.

Human-rights groups and government adversaries say Venezuela's
supreme court has become a potent tool wielded by the government
against opponents, particularly as Mr. Maduro's support has
withered during Venezuela's dire economic crisis, the report
relays.  Since the opposition won a supermajority of congressional
seats in December 2015, the court has issued dozens of rulings
that stripped powers from lawmakers, prompting criticism from
rights organizations and governments, including the U.S, the
report discloses.

As the conflict between Mr. Maduro and the opposition intensifies,
each side appears to be crafting new institutions to gain the
upper hand in a struggle for power in this oil-rich but crumbling
country, the report relays.  Mr. Maduro intends to stage an
election on July 30 to choose a so-called constituent assembly
charged with writing a new constitution, one opponents say will
strip away the country's remaining democratic levers, the report
says.

The opposition called a 24-hour national strike that saw
businesses grind to a standstill in cities across Venezuela, the
report notes.  At least four people were killed in antigovernment
demonstrations throughout the day, the report notes. That brought
to nearly 100 the deaths tallied in more than three months of
protests ignited when the Supreme Court moved to dissolve the
congress -- an initiative that was later reversed, the report
discloses.

The opposition also staged what its leaders called a "popular
consultation" -- a plebiscite in which more than 7.5 million
Venezuelans at home and abroad cast ballots saying they opposed
the constituent assembly and called for democratic norms to be
respected, the report relays.  Government officials ridiculed the
exercise and said the results weren't binding, the report notes.

Mr. Maduro faces increasing pressure from abroad for his
unyielding stance, the report relays.  U.S. President Donald Trump
said Venezuela faced "strong and swift" actions should it move
forward with the assembly. U.S. officials said economic sanctions
were among the options being considered, the report adds.

As reported on Troubled Company Reporter-Latin America on July 13,
2017, S&P Global Ratings lowered its long-term foreign and local
currency sovereign credit ratings on the Bolivarian Republic of
Venezuela to 'CCC-' from 'CCC'. The outlook on the long-term
ratings is negative. S&P said, "We affirmed our 'C' short-term
foreign and local currency sovereign ratings. In addition, we
lowered our transfer and convertibility assessment on the
sovereign to 'CCC-' from 'CCC'."


                            ***********


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com


                            ***********


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

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, 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.


                   * * * End of Transmission * * *