TCRLA_Public/170726.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

               Wednesday, July 26, 2017, Vol. 18, No. 147



ARGENTINA: To Enhance Education Coverage With $200MM IDB Loan


BARBADOS: Thousands March Against Gov't Policies in Barbados


ATENTO LUXCO: Fitch Assigns BB Rating to Proposed Notes Due 2022

D O M I N I C A N   R E P U B L I C

BANCO DE RESERVAS: Moody's Hikes LT Deposit Rating From B1


DIGICEL GROUP: Calls for "Level Playing Field" in Digital World


TV AZTECA: Fitch Rates New US$350MM Notes Due 2024 'B+/RR4(EXP)'


PARAGUAY: Private Credit Growth Remains Weak, IMF Says

P U E R T O    R I C O

SHORT BARK: Proposes Postpetition Factoring From LSQ Funding
SHORT BARK: Sets Bid Procedures for All Assets

T R I N I D A D  &  T O B A G O

C&W COMMUNICATIONS: Moves to Cut Staff in T&T
CL FIN'L: Shareholders Score Victory vs. Trinidad Government

                            - - - - -


ARGENTINA: To Enhance Education Coverage With $200MM IDB Loan
Argentina will seek to increase the scope of public services aimed
at promoting the development of physical, language, communication,
cognitive and socio-emotional skills of children age 0-5, with a
$200 million loan approved by the Inter-American Development Bank

The project will seek to strengthen out-of-school interventions
aimed at promoting child development, with a focus on children
between the age of 45 days and 4 years who are in a situation of
social vulnerability, prioritizing children living in Northwestern
and Northeastern provinces and in the outskirts of Buenos Aires

Additionally, the project will seek to increase access to early
childhood education centers that meet adequate quality standards,
and develop analytical tools aimed at increasing the effectiveness
of interventions to improve child-rearing practices in the 200
districts around the country with the largest number of unmet
basic needs.

The project also will finance the expansion and improvement of
education infrastructure, including the construction or expansion
of 98 kindergartens, and the procurement of educational equipment.
Additionally, the project will support the establishment and
implementation of training programs for supervisors, school
directors and teachers in Buenos Aires province, introducing
innovative early-childhood teaching models, and implementing an
evaluation of the quality of learning environments in

This project, prepared jointly with Argentina's Ministry of
Education and Sports, and the Ministry of Social Development, will
tackle the need to close the development gap in the two regions
most affected by poverty in Argentina. It has been estimated that
15 percent of the children between 3-5 years old fail to meet the
level of development expected of their age in the country. This
situation is even worse in households in lower socioeconomic

The IDB loan is for a 25-year term, with a 5.5-year grace period
and an interest rate based on LIBOR.

                            *     *    *

As reported in the Troubled Company Reporter-Latin America on
May 10, 2017, Fitch Ratings affirmed Argentina's Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) at 'B' with a
Stable Outlook. The issue ratings on Argentina's senior unsecured
Foreign and Local Currency bonds are also affirmed at 'B'. The
Country Ceiling is affirmed at 'B' and the Short-Term Foreign and
Local Currency IDRs at 'B'.

On Jan. 30, 2017, the Troubled Company Reporter-Latin America
reported that Moody's Investors Service has assigned a B3 rating
to the Government of Argentina's US$3.25 billion bond due 2022 and
the US$3.75 billion bond due 2027. The outlook on the Government
of Argentina's rating is stable.

As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30-day grace
period on a US$539 million interest payment.  Earlier that day,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago.

On March 30, 2016, after more than 12 hours of debate in the
Senate, Argentina's Congress passed a bill that will allow the
government to repay holders of debt that the South American
country defaulted on in 2001, including a group of litigating
hedge funds that won judgments in a New York court. The bill
passed by a vote of 54-16.


BARBADOS: Thousands March Against Gov't Policies in Barbados
RJR News reports that thousands marched in Barbados in support of
the Barbados Private Sector Association's call to send a strong
message to the government that the country is in dire straits.

The marchers also say there is urgent need for the Government of
Barbados to meet with the other Social Partnership members to
discuss alternatives to the present path chosen by the Freundel
Stuart Administration, according to RJR News.

The march was organized by the island's four main trade unions and
the Barbados Private Sector Association, the report notes.

Several businesses gave employees time off to participate, the
report relays.

Prime Minister Stuart urged Barbadians not to be fooled, as he
warned that the "new-found fellowship" between sections of the
private sector and the island's trade unions would not last, the
report discloses.

Prime Minister Stuart said it would not force his administration
to revise the controversial National Social Responsibility Levy,
the report adds.

As reported in the Troubled Company Reporter-Latin America on
March 7, 2017, S&P Global Ratings lowered its long-term foreign
and local currency sovereign ratings on Barbados to 'CCC+' from
'B-'.  The outlook is negative.  S&P also lowered the short-term
ratings to 'C' from 'B.'  At the same time, S&P lowered its
transfer and convertibility assessment for Barbados to 'CCC+' from


ATENTO LUXCO: Fitch Assigns BB Rating to Proposed Notes Due 2022
Fitch Ratings has assigned a 'BB(EXP)' rating to Atento Luxco 1's
(Atento Luxco; IDR 'BB'/Outlook Stable) proposed senior secured
notes due 2022. Atento Luxco is a direct, wholly owned, subsidiary
of Atento S.A. (Atento; Not Rated). The proposed notes will be
secured by the shares of the subsidiaries in each country Atento

Fitch expects the company to use net proceeds to prepay Atento
Luxco 1's USD300 million notes due 2020, as well as the USD129
million of the Brazilian debentures, due 2019. The guarantee
structure will be enhanced when compared with the current notes,
as the Brazilian and Argentine subsidiaries' shares will be added.


The ratings reflect Atento's business position and scale as the
third-largest player in the global customer relation management
(CRM) industry, with a well-established long-term client
relationship and geographical diversification. This enables the
company to support EBITDAR margins at adequate levels for the
industry and modest positive free cash flow (FCF) generation over
the medium term. However, ratings are tempered by intense
competition amid sluggish economic conditions, and high customer
concentration risk.

Positive FCF

Fitch expects Atento to report positive FCF over the next three
years in the range of USD50 million to USD100 million. As of the
latest 12 months (LTM) ended March 31, 2017, Atento's funds from
operations (FFO) reached USD72 million, which combined with a
working capital inflow of USD83 million, led to a positive cash
flow from operations (CFFO) of USD155 million. LTM CFFO was enough
to cover capex of USD65 million, resulting in positive FCF of
USD91 million. This is an improvement compared to the positive FCF
of USD59 million registered in 2015. Over the next few years,
Fitch forecasts CFFOs of USD130 million to USD170 million covering
capex of USD70 million to USD100 million.

High Customer Concentration

Fitch considers client concentration as the main risk for Atento.
The company generates approximately 40% of total revenues from
Telefonica Group (Telefonica S.A.; 'BBB'/Outlook Stable) and 74%
from its 10 largest clients. Positively, Fitch believes that this
risk is partially alleviated by the Master Service Agreement (MSA)
with Telefonica, which guarantees an inflation-adjusted revenue
threshold until 2021 (2023 in Brazil and Spain) amid the ongoing
expansion of non-Telefonica clients. In addition, the company can
boast of well-established long-term relationship with its clients,
as it generates close to 90% of its total revenue from clients who
have contracted Atento for more than five years.

Decreasing Leverage

Fitch forecasts Atento's net adjusted leverage to remain below
3.0x over the medium term driven mainly by the gradual recovery in
EBITDA and modest positive FCF. The downward trend in rental
expenses is positive, leading to a lower level of off-balance-
sheet debt. Fitch forecasts the rental expense to represent less
than 5% of the company's total sales, which compares to 7.9%
during 2010, mainly driven by company's relocation of its
workstations to more attractive areas. At the end of the first
quarter 2017 (1Q17), total adjusted debt was USD937 million, with
USD462 million related to rental expenses. As of the LTM ended
March 31, 2017, Atento's net leverage was 1.3x (2.6x adjusted by
lease-equivalent debt), which are broadly in line with the 1.2x
(2.5x adjusted) at 2016 year-end.

Better Margins as of 2017

Fitch anticipates EBITDAR margins recovering to approximately 15%
in 2017 and 2018, after the adverse macroeconomic conditions seen
in Brazil and Spain in 2016. As of the LTM ended March 31, 2017,
the company reported EBITDAR margins of 16.1%, which favourably
compares with the 15.7% registered in 2016. Including adjustments
for installed capacity, financial discipline in bids, and
continuing expansion of value-added services, Atento is set to
recover margins going forward.

Atento Brasil's Performance is Crucial

The Brazilian subsidiary has a high strategic and operational
importance as it is the most relevant unit of Atento, contributing
48% of consolidated sales and 50% of the EBITDA as of the LTM
ended March 31, 2017. During the same period, Atento Brasil's
EBITDAR margin of 17.6% was above the consolidated figure and its
net adjusted leverage was 2.5x. Fitch will monitor the outcome of
the labour reforms in Brazil and its potential implications to the
company's business, as personal expenses represent around 80% of
its costs.

The prepayment of Atento Brasil's BRL428 million outstanding
debenture will allow this subsidiary to become part of the group
that will guarantee the proposed senior secured notes, which does
not occur with the current USD300 million senior secured notes.
Atento Brasil's dividend distribution is somehow limited by its
own accumulated losses. Positively, this restriction will become
less relevant as Atento Brasil prepays its expensive debentures
and improves its credit profile. This will enable a better flow of
funds to the parent.


Atento Luxco's credit profile is stronger than other CRM and BPO
providers in Latin America, such as Valid Solucoes e Servicos de
Seguranca em Meios de Pagamento e Identificacao S.A. (Valid;
'BB-'). Valid has a similar revenue diversification in terms
geography and services, though has shown more volatility at the
top line and margins than Atento.


Fitch's key assumptions for Atento Luxco's rating case include:

-- Revenue of USD1.8 billion in 2017 and USD1.9 billion in 2019;
-- EBITDAR margins of 14.7% in 2017 and 15.2% in 2018;
-- Rental expenses at 3.8% of net sales;
-- Capex at 4% of revenues;
-- Dividends as of 2018 at a pay-out rate of 25%.


Future developments that may, individually or collectively, lead
to a negative rating action include:

-- Increase in net adjusted leverage above 3.5x on a sustained

-- Readily available cash plus CFFO-to-short-term debt ratio
    below 1.5x;

-- Reduction in volumes leading to persistent single-digit EBITDA

-- Weakening of Telefonica's credit profile.

A positive rating action is unlikely in the short and medium term.
However, there are future developments that may, individually or
collectively, lead to a positive rating action, such as:

-- Reduction of customer concentration, especially from
    Telefonica, without compromising revenues;

-- Increase in value-added solutions that reflect in better
    consolidated margins and higher switching costs.


Fitch believes Atento will maintain robust liquidity over the next
three years. In March 2017, the company's consolidated readily
available cash of USD171 million comfortably covered its short-
term debt of USD66 million 2.6x. In conjunction with the bond
issuance, Atento is placing two revolving credit facilities that
will replace the current EUR50 million undrawn credit line. The
first amounts USD50 million with 4.5 year term and the second
reaches USD55 million and will last one year. The prepayment of
Atento Luxco's current bonds and Atento Brasil's debentures also
adds to the group's financial flexibility as it releases
receivables that service as collateral in both transactions.


Fitch assigns the following rating to Atento Luxco 1:

-- Senior secured notes 'BB(EXP)' due 2022.

Fitch currently rates Atento Luxco 1:

-- Long-Term Foreign Currency Issuer Default Rating (IDR) 'BB';
    Outlook Stable;

-- USD300 million senior secured notes due 2020 'BB'.

Fitch currently rates Atento Brasil S.A.:

-- Long-Term National Scale Rating 'AA-(bra)'; Outlook Stable.

Fitch Ratings has affirmed Odebrecht Engenharia e Construcao's
(OEC) Long-Term Foreign and Local Currency Issuer Default Ratings
(IDR) at 'CC' and Long-Term National Scale Rating at 'CC(bra)'.
Concurrently, Fitch has affirmed the 'CC/RR4' rating of
approximately USD3.1 billion of Odebrecht Finance Ltd. (OFL)
issuance, which OEC unconditionally and irrevocably guarantees.
The 'CC/RR4' rating of OFL's unsecured public debt reflects
average recovery prospects in the event of a default, ranging
between 31%-50% of existing debt.


The rating incorporates the several challenges OEC faces in
attempting to avoid restructuring its coupon payments and
amortizations in 2018. The company needs to settle plea bargain
agreements with countries in Latin America; stop the cash-burn;
collect past-due receivables; stabilize and improve the quality of
its backlog; and rebuild reputation.

Additional Agreements: Fitch's most imminent concern with OEC has
been to settle the plea agreement in 10 countries out of 12, in
which it operates. So far it has signed agreements with Dominican
Republic for USD184 million to be paid in nine years and Ecuador
(fine yet to be defined). Although OEC has not been formally
suspended from participating in bids in most of these countries,
Fitch understands the operating environment, and consequently the
chances OEC wins new contracts could improve once these agreements
are signed. The 2016 results brought additional provisions of USD1
billion just for the fines in these countries that will not be
deducted from the agreement with the Department of Justice (DoJ),
as well as with the Brazilian and Swiss authorities.

Cash-Burn: OEC has the challenge of ending cash-burn in operations
and stemming payments to its parent. The company burned almost
USD888 million of cash in 2016 due to difficulties in monetizing
receivables in addition to providing intercompany loans to
Odebrecht S.A. Cash closed the year at BRL4.1 billion, down from
BRL9.9 billion at the end of 2015. Adjusted revenues dropped 56%
to BRL19.1 billion compared with the BRL43.9 billion achieved in
2015, as OEC slows down or suspends the execution of projects that
are not paying invoices on a timely basis. Adjusted EBITDA margins
reached 8.0% from the historical average of 10% as the company did
not manage to entirely dilute fixed costs in light of the
production slowdown. The return of the USD450 million intercompany
loan to OEC remains uncertain. Based on the total adjusted debt of
BRL10.7 billion and the EBITDA of BRL1.5 billion, the ratios total
adjusted debt-to-EBITDA and net adjusted debt-to-EBITDA were 7.0x
and 4.3x, respectively, at the end of 2016.

Decreasing Backlog: Fitch expects OEC's backlog to shrink over the
next two years. The company's backlog declined to USD16.7 billion
in December 2016 from USD28.1 billion a year before. The quality
of its contract portfolio has also deteriorated. As OEC executes
projects with payments performing as expected, and does not win
new contracts, it is being left with projects facing suspended or
late payments. Fitch estimates 39% of the company's backlog, or
USD6.6 billion, falls into this category.

Rebuilding Reputation: OEC's most difficult long-term challenge
may be regaining its corporate reputation. The company has an
arduous task in recovering its former status and convincing
clients and financial institutions that it is a potential
candidate for new public projects. The reputational damage caused
by the company's past practices is expected to weaken its
competiveness and may force OEC to lower its margins. In Fitch's
view, exploring new markets is not a short-term alternative, given
the high costs involved.


OEC's business profile is situated between Andrade Gutierrez
Engenharia S.A (AGE; 'B-'/Outlook Negative) and Construtora
Queiroz Galvao S.A. (CQG; 'C(bra)'). AGE has been efficient in
settling plea agreements and fines which has reduced uncertainties
as to its capacity to access funding and add projects to its
backlog, while OEC is still facing the challenge. The market is
yet to know how much OEC will pay in fines in 11 countries in
Latin America. As for AGE, the company agreed to pay BRL1 billion
in 12 annual installments to Brazilian authorities. Nonetheless,
OEC's credit profile is slightly stronger than CQG's, who has
formally entered in a debt-restructuring process with banks.


Fitch's key assumptions within its ratings case for the issuer

-- Backlog falling 17% in 2017 and 2% in 2018 with execution pace
    slowing down;

-- Net revenues falling 27% in 2017 and stabilizing in 2018 in
    BRL terms;

-- EBITDA margin of 8.2% in 2017 and 8.6% in 2018 pressured by
    severance payments;

-- Capex at 2% of net revenues for both years and no dividends
    distribution in 2017;

-- No cash coming from ODB's intercompany loan and BNDES past-due
    receivables in 2017 and 2018;

-- No dividends paid to ODB in 2017, 2018 and 2019;

-- Payment of BRL200 million in fines per year for the Latin
    American countries.


For issuers with IDRs at 'B+' and below, Fitch performs a recovery
analysis for each class of obligations of the issuer. The issue
ratings are derived from the IDR and the relevant Recovery Rating
(RR) and notching, based on Fitch's recovery analysis that places
a going concern enterprise value of a distressed scenario of
approximately BRL5.4 billion before administrative claims of 10%.

-- OEC's recovery analysis assumes the company continues to burn
   cash to the point where it finds it difficult to service USD100
   million coupons plus a USD156 million bond amortization in the
   first half of 2018, assuming the company does not receive the
   USD450 million intercompany loan from the parent. The post-
   reorganization EBITDA assumes a 25% discount of the 2016
   adjusted figure to better align with Fitch forecasts;

-- Fitch applies property EBITDA multiples of 5.0x, resulting in
   BRL5.4 billion value. The multiples reflect historical averages
   for the building and construction sector;

-- Fitch calculates the recovery prospects for the holders in the
   35%-50% range, which results in OFL's senior unsecured notes
   being rated at 'CC/RR4'. This is in line with OEC's 'CC' IDR.


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
-- Upgrades are unlikely until the company recovers its backlog
    and reputation.

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

-- Beginning of a default or default-like process;
-- The announcement of debt restructuring;
-- Filling for bankruptcy protection.


Fitch forecasts OEC liquidity under pressure over the next three
years. As of Dec. 31, 2016, OEC's cash position of BRL4.1 billion
covered short-term debt of BRL709 million 5.7x. This is broadly in
line with the 5.5x ratio reported in 2015, though materially lower
than the 34.6x of 2014. In USD, OEC's cash position reached
USD1.25 billion at the end of 2016, substantially lower than the
USD2.55 billion a year before, and even lower when compared to the
USD4.4 billion of 2014. OEC has consistently burned cash over the
past quarters, mostly driven by uncollectable receivables and also
due to financial support to the parent. On top of the short-term
debt, the next big amortization is a BRL500 million bond due April
2018, which is likely to challenge the company. BNDES, the
Brazilian development bank, owes USD600 million to OEC, mainly
related to works in Angola, but has suspended all international
contracts since the corruption scandal surfaced.


Fitch has affirmed the following ratings:

Odebrecht Engenharia e Construcao S.A. (OEC)

-- Long-Term Foreign and Local-Currency IDRs at 'CC';
-- National Scale Rating at 'CC(bra)'.

Odebrecht Finance Limited (OFL)

-- BRL500 million senior unsecured notes due 2018 at 'CC/RR4';
-- USD500 million senior unsecured notes due 2020 at 'CC/RR4';
-- USD600 million senior unsecured noted due 2022 at 'CC/RR4';
-- USD800 million senior unsecured notes due 2023 at 'CC/RR4';
-- USD550 million senior unsecured notes due 2025 at 'CC/RR4';
-- USD500 million senior unsecured notes due 2029 at 'CC/RR4';
-- USD850 million senior unsecured notes due 2042 at 'CC/RR4';
-- USD750 million perpetual bonds at 'CC/RR4'.

D O M I N I C A N   R E P U B L I C

BANCO DE RESERVAS: Moody's Hikes LT Deposit Rating From B1
Moody's Investors Service upgraded the long-term local and foreign
currency deposit ratings of Banco de Reservas de la Republica
Dominicana to Ba3 and B1 from B1 and B2 respectively. Moody's also
upgraded Banreservas' long-term counterparty risk assessment to
Ba3(cr) from B1(cr). In addition, Moody's affirmed Banreservas' b3
standalone baseline credit assessment (BCA) and adjusted BCA, as
well as the bank's B2 foreign currency subordinated debt rating.
The outlooks have been revised to stable from positive.

The rating action follows Moody's upgrade of the Dominican
Republic (DR)'s government bond rating to Ba3 from B1. For details
on this rating action please refer to Moody's press release "
Moody's upgrades Dominican Republic's issuer rating to Ba3 from
B1, outlook stable", dated July 20, 2017.

The following ratings were upgraded:

Banco de Reservas de la Republica Dominicana:

Long term local currency deposit rating, to Ba3 from B1, outlook
changed to stable from positive

Long term foreign currency deposit rating, to B1 from B2, outlook
changed to stable from positive

The following rating was affirmed:

Banco de Reservas de la Republica Dominicana:

Foreign currency subordinated debt rating, at B2

The following assessments were affirmed:

Banco de Reservas de la Republica Dominicana:

Baseline credit assessment and adjusted baseline credit
assessment, at b3

The following assessment was upgraded:

Banco de Reservas de la Republica Dominicana:

Long-term counterparty risk assessment, to Ba3(cr) from B1(cr)


Moody's upgrade of Banreservas' local currency deposit rating
considers the government of the Dominican Republic's increased
capacity to provide support to the bank in an event of stress, as
indicated by the upgrade of the government bond rating to Ba3 from
B1. Moody's assumes Banreservas' senior obligations to be
effectively backed by the government given the government's 100%
ownership of the bank, the close financial and business links
between the bank and the government, as well as the importance of
Banreservas' deposit and lending franchise as the country's
largest bank. This results in three notches of ratings uplift from
the bank's standalone credit assessment.

The upgrade of the bank's foreign currency deposit rating
considers the increase in the Dominican Republic's foreign
currency deposit ceiling to B1 from B2, still one notch below the
sovereign rating. The ceiling continues to constrain the bank's
foreign currency deposit rating.

The upgrade in the sovereign rating reflects the country'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. The
sovereign rating action also considers 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.

The affirmation of Banreservas' b3 BCA reflects the bank's good
profitability, supported by low credit costs and a low effective
tax rate, as well as its stable funding and thick liquidity
buffers. Nevertheless, the BCA is constrained by the bank's weak
capitalization, and still material asset risks following a recent
period of very rapid loan growth, amid high borrower
concentrations. The BCA also considers the DR's weak institutional
strength, reflected by its low scores on the World Bank governance
indicators and mixed track record of macroeconomic stability.
These challenges are only partly mitigated by the country's
economic dynamism.

The affirmation of Banreservas' B2 foreign currency subordinated
debt rating is based on the affirmation of the BCA. Moody's
assesses a lower probability of government support for the bank's
subordinated debt than for its deposits as the purpose of this
instrument is to absorb losses.

The stable outlook on the deposit ratings is in line with the
stable outlook on the DR's sovereign bond rating.


Upward rating pressures on deposit ratings is limited at this
juncture as the local currency rating is based on the DR's
government bond rating while the foreign currency deposit rating
is constrained by the sovereign ceiling, respectively. The BCA
could be lifted if Banreservas manages to improve its core
capitalization or reduce borrower concentrations while maintaining
stable profitability. While this would not affect the bank's
deposit ratings, it could put upward pressure on the subordinated
bond rating.

Downward pressures on the bank's deposit ratings could be
triggered by a downgrade of the sovereign rating. The BCA could be
lowered in the case of a sudden and sizeable deterioration in
asset quality, liquidity or capital. While this would not likely
affect the deposit ratings, it could put pressure on the
subordinated bond rating.

The last rating action on Banreservas was on July 1, 2016.

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

Headquartered in Santo Domingo, the Dominican Republic,
Banreservas reported total consolidated assets of DOP435 billion
(about $9 billion) and total shareholders' equity of DOP30.5
billion (around $645 million) as of March 2017.


DIGICEL GROUP: Calls for "Level Playing Field" in Digital World
RJR News reports that Digicel Group Chairman Denis O'Brien has
stressed the need for regulators to create equal opportunities for
all participants in digital businesses, including over-the-top
operators, governments and telecoms providers.

Mr. O'Brien raised the issues while addressing regulators from
more than 60 countries at the recently concluded 17th Global
Symposium for Regulators in The Bahamas, according to RJR News.

During his presentation at the leadership debate segment on
Drivers of Digital Transformation, Mr. O'Brien emphasized that new
developments in artificial intelligence, virtual reality,
algorithms and robots are changing the world in many ways, the
report notes.

He said the unregulated nature of the internet has been credited
with much of this innovation.

As reported in the Troubled Company Reporter-Latin America on
May 26, 2017, Fitch Ratings has affirmed at 'B' the Long-term
Foreign-currency Issuer Default Ratings (IDR) of Digicel Group
Limited (DGL) and its subsidiaries, Digicel Limited (DL) and
Digicel International Finance Limited (DIFL), collectively
referred to as Digicel. The Rating Outlook is Stable. Fitch has
also affirmed all existing issue ratings of Digicel's debt


TV AZTECA: Fitch Rates New US$350MM Notes Due 2024 'B+/RR4(EXP)'
Fitch Ratings has assigned a 'B+/RR4(EXP)' rating to TV Azteca
S.A.B. de C.V.'s (TV Azteca) proposed USD350 million senior
unsecured notes due 2024. The proceeds are expected to be used
mainly for refinancing of its existing notes, and for general
corporate purposes.


TV Azteca's ratings reflect the company's second-largest market
position in the Mexican broadcasting industry and its solid
content production, which should enable relatively stable
operational cash flow generation. The Stable Outlook on the
ratings reflects Fitch's view that the company will maintain
steady FCF generation over the medium term, following its material
performance recovery in 2016, as well as adequate liquidity due to
the sale of spectrum in the US and an improved debt maturities
profile with the notes issuance. TV Azteca's volatile performance
in recent years and the slow growth outlook for the broadcasting
industry with high competition are key credit negatives.

Stable Performance:
Fitch forecasts TV Azteca's stable EBITDA generation to continue
in the short- to medium-term, following its material performance
recovery since 2Q16 backed by cost controls and advertising price
increases. Fitch believes that the company will maintain
disciplined investments into content production, while the
deconsolidation of the loss-making Colombia telecom operation will
also contribute positively to enhanced profitability. This should
enable the company to maintain its EBITDA margins at 25%-26%
during 2017-2018, which is broadly in line with its 2014 level.

TV Azteca managed to recover its EBITDA by 58% to MXN3.2 billion
in 2016 from MXN2 billion in 2015, and the trend continued during
1H17 with EBITDA improving by another 25% on a year-on-year basis
(including Colombia operations in 1H16). The company underwent a
sharp EBITDA deterioration of 39% in 2015, caused by continued
loss from Colombia, as well as high production costs amid stagnant
revenue growth. The company implemented measures to keep
production costs in check, while reducing its labor force since
2015. In addition, TV Azteca has continued to successfully raise
advertising prices, resulting in its advertising revenues
improving by 9% during 1H17 compared to the same period in 2016.

Broadcasting industry growth outlook for TV Azteca should remain
relatively stable in the short- to medium-term, in Fitch's view,
due to free-to-air TV's position as a dominant advertising
platform, despite gradual deterioration in its market share
against other platforms, price increases, and a World Cup impact
in 2018. Negatively, the long-term growth headroom would be
limited given an increasing importance of pay-TV and internet as
alternate advertising platforms, while the entrance of Grupo
Imagen, the new broadcaster which started its operations in 4Q16,
could gradually encroach on TV Azteca' market share.

Colombia Deconsolidation Positive; No Material Contribution from
TV Azteca's deconsolidation of its telecom operation in Colombia
is positive, as it leads to improved profitability and cash flow
generation. This also indicates the company's strategy to focus
its resources on the core content business in Mexico. On Dec. 26,
2016, TV Azteca's shareholders agreed to inject USD60 million into
the company's fiber-optic telecom business in Colombia, resulting
in the company's reduced stake to 40% from 100%. TV Azteca will no
longer be required to inject additional cash into Colombia, with
deconsolidation of this loss-making business. The company's EBITDA
loss from Colombia was MXN364 million in 2015 and another MXN420
million in 2016.

Fitch does not foresee any positive cash flow contribution from
Peru at least for the short- to medium-term, following the
completed construction of networks in 2016. Without any additional
construction profit as in 2016, it would be challenging for the
company to generate any meaningful EBITDA from the operation of
the fiber networks in Peru.

Positive FCF Generation; Leverage Improvement

Fitch forecasts TV Azteca's FCF generation to remain broadly
positive in the short- to medium-term, driven by stable EBITDA
generation. The company's capex is expected to remain light at
about USD30 million without any cash contribution to Colombia. TV
Azteca's FCF generation turned positive in 2016 to MXN790 million,
which compares favorably to negative FCF generation of MXN1.5
billion in 2015 amid operational struggles, and Fitch forecasts a
low-single-digits FCF margin during 2017-2018. TV Azteca's
positive FCF generation, combined with USD156 million of sales
proceeds from the spectrum sales in the US, should enable gradual
deleveraging to around 3.0x over the medium term, which compares
favorably to 4.3x at end-2016 and 6.0x at end-2015.

Enhanced Financial Flexibility:

Fitch believes that TV Azteca's financial flexibility and debt
maturity schedule will improve in 2017 mainly due to its stable
cash flow generation and spectrum sales, which have and will
continue to be used to prepay its existing notes, and the proposed
notes issuance for refinancing. Fitch expects the company to be
able to fully redeem a remaining USD197 million portion of the
2018 senior notes during 2H17, and to use most of the USD350
million notes issuance to reduce the outstanding amount of its
USD500 million 2020 notes. This will help TV Azteca retain
adequate liquidity over the medium term.


TV Azteca's credit quality is well positioned in the 'B' rating
category. The company's leverage is considered moderate for the
rating level, and its market position and cash flow generation are
stronger and more stable than its peer, Grupo Bandeirantes in
Brazil, which is rated 'CCC'. The company's small operational
scale, as well as the volatility exhibited in recent years, are
key weaknesses compared to other industry peers: Grupo Televisa in
Mexico and Globo in Brazil, both of which are rated 'BBB+'. There
is no parent/subsidiary linkage, and country ceiling and operating
environment influences were not in effect for TV Azteca's ratings.


Fitch's key assumptions within the rating case for TV Azteca

-- Low- to mid-single digits domestic advertising revenue growth
    in 2017 and 2018;
-- EBITDA margin of 25%-26% in 2017 and 2018;
-- Capex to sales ratio of about 5% over the medium term;
-- Net leverage to remain stable at around 3.0x over the medium

The recovery analysis assumes that TV Azteca would be considered a
going-concern in bankruptcy and that the company would be
reorganized rather than liquidated. Fitch has assumed a 10%
administrative claim.

Going-Concern Approach

-- The going-concern EBITDA estimate reflects Fitch's view of a
   sustainable, post-reorganization EBITDA level upon which Fitch
   base the valuation of the company.

-- Fitch assumes that any potential distress that provoked TV
   Azteca's default could occur due to weak economic factors,
   dampened advertising demand for free-to-air TV, and its
   unpopular content amid high production costs. The post-
   reorganization EBITDA assumption is MXN1.9 billion, which
   should be sufficient to cover its interest expenses and
   maintenance capex. An EV multiple of 5x is used to calculate a
   post-reorganization valuation and reflects a mid-cycle

-- Fitch calculates the recovery prospects for the senior
   unsecured debtholders in the 31%-50% range based on a waterfall
   approach after covering the company's loan from American Tower
   Corporation and available credit facility. This level of
   recovery results in the senior unsecured notes being rated in
   line with its IDR at 'B+/RR4'.


Future developments that may, individually or collectively, lead
to negative rating action:

-- Net leverage increasing to above 4.0x with negative FCF
    generation on a sustained basis;
-- Weak advertising industry growth coupled with the company's
    gradual market share loss;
-- Continued weak financial flexibility and the company's
    inability to proactively manage its upcoming debt maturities.

Future developments that may, individually or collectively, lead
to positive rating action:

-- Positive FCF generation with net leverage comfortably below
    3.0x on a sustained basis;
-- Consistent track record of disciplined production costs with
    an ability to improve audience/revenue market shares.


TV Azteca's liquidity is deemed adequate. The company held a cash
balance of MXN3 billion as of June 30, 2017, which together with
USD156 million in proceeds to be received during 2H17, will help
manage its upcoming maturity of USD197.5 million in 2018. The
company does not face any debt maturity until 2020, when its
USD500 million notes become due. The proposed USD350 million notes
will be used to prepay the USD500 million notes.


Fitch currently rates TV Azteca's.

TV Azteca S.A.B. de C.V.

-- Long-Term Foreign- and Local-Currency IDRs at 'B+'; Stable
-- Senior unsecured notes at 'B+/RR4';

Fitch has assigned the following rating:

-- Proposed USD350 million due 2024 senior unsecured notes


PARAGUAY: Private Credit Growth Remains Weak, IMF Says
The Executive Board of the International Monetary Fund (IMF), on
July 24, 2017, concluded the Article IV consultation with
Paraguay, and considered and endorsed the staff appraisal without
a meeting.


Despite a more challenging external environment, Paraguay has
grown robustly. The economy gained momentum towards the end of
2016 and expanded by 6 1/2 percent (y/y) during the first quarter
of 2017. The ongoing economic expansion appears to be broadening
across sectors, though private credit growth remains weak. On the
supply side, robust growth reflects a record soy harvest, booming
construction activity, and a rebound in the maquila industry. On
the demand side, private investment and consumption have
strengthened, alongside public investment. Inflation remains below
the newly lowered target of 4 percent, though underlying
inflationary pressures are rising.

Monetary policy remains accommodative, following two policy rate
cuts in mid-2016, given well-anchored inflation expectations and
sluggish credit growth. Fiscal policy has been characterized by
restraint in current expenditures and a shift towards capital
spending. The fiscal deficit outturn of 1.4 percent of GDP last
year complied with the Fiscal Responsibility Law (FRL), implying a
policy tightening.

Real GDP growth is projected to reach 4.2 percent in 2017,
reflecting a more moderate pace of activity in the second half of
the year. Investment will likely be a crucial driver of growth, as
major infrastructure projects are undertaken. Consumption growth
should also strengthen further. Given stronger domestic demand,
the current account surplus is expected to narrow this year to 1.2
percent of GDP from 1.7 percent last year, despite solid export
growth. Over the medium term, real GDP growth is expected to
remain near potential of just below 4 percent. Risks around the
outlook are to the downside, especially from heightened political
uncertainty in Brazil.

                   Executive Board Assessment

Despite a more challenging external environment, Paraguay has
grown faster than others in the region and momentum is broadening.
Above-potential growth around 4 percent in 2016 and this year is
well above main trading partners in the region and the Latin-
American average. Part of this growth is also due to catch-up with
levels of income per capita in other emerging markets and owes to
a continued improvement in productive capacity, diversification of
markets and strengthening of institutions. In addition, more
recently, some positive supply shocks, mostly related to climate
worked as tailwinds in agriculture and electricity, but signs are
that economic momentum is broadening to other sectors as well as
domestic demand.

The policy mix has been adequate and broadly supportive of
activity but monetary accommodation should be gradually removed.
Fiscal policy is expected to be neutral this year, maintaining the
compositional shift towards capital spending and adhering to the
FRL on the basis of budget outturns. Monetary policy has been
appropriately accommodative to support the recovery towards the
end of last year. However, as underlying inflation pressures rise
and bank credit growth resumes, monetary policy accommodation
should be gradually removed to maintain low inflation. The
external position is now assessed to be stronger than implied by
fundamentals and desirable policies. Draining excess liquidity
through additional issuance of BCP paper (IRMs) and selling dollar
reserves would help better align targeted policy rates with
interbank rates.

The authorities have strived to comply with the FRL, but there is
room for further fiscal reforms. The 2017 budget culminated in an
unprecedented presidential veto, highlighting the need to
strengthen the budget process and to reform the Public Financial
Management (PFM) framework. To enhance the credibility of the
fiscal anchor, it would be desirable to modify the assessment of
FRL compliance to include the execution stage as well as the
budget approval stage. The pension and health system also faces
near- and longer-term imbalances and needs to be reformed.

Regarding monetary policy, the IT framework is serving Paraguay
well but can be further strengthened. In addition to tighter
operation of the policy corridor, predictability of foreign
exchange operations could also be strengthened, given that dollar
sales have not always been implemented as announced. Discretionary
interventions in the foreign exchange market should continue to be
limited to exceptional circumstances such as disorderly market
conditions. In addition, high credit dollarization continues to
limit the BCP's ability to affect market interest rates. Finally,
greater use of forward-looking policy guidance in public
statements could enhance central bank communications and improve
predictability of monetary policy.

The financial sector appears sound, though banks need to continue
strengthening their balance sheets after a decade of rapid credit
growth. The banking system remains profitable and reported capital
ratios appear comfortable but the ongoing adjustment in bank
balance sheets will take more time to complete. Broad-based
measures of loan quality deteriorated over the year and remain at
elevated levels. In response, banks have increased provisioning
and NPLs remain manageable. There are signs that credit from
unregulated non-traditional lenders is growing, but this remains a
small fraction of credit.

The authorities have made important progress on introducing risk-
based bank supervision, ratifying a new banking law in December
2016. However, the law is only part of a broader agenda to
strengthen financial sector oversight that needs to advance.
Authorities should make additional progress in crucial initiatives
including: (i) revisions to the BCP organic charter; (ii)
establishment of a financial stability council; (iii)
implementation of deposit insurance for savings and loan
cooperatives; and (iv) integrating financial information through a
single credit bureau. Furthermore, approving legislation regarding
the Sociedades Anonimas and bearer securities in line with
international standards should enhance entity transparency and
could help safeguard correspondent banking relationships.

The authorities have advanced their structural reform agenda but
further progress is needed. Progress has been achieved in several
areas of the National Development Plan (NDP) with strategic
infrastructure projects underway. Transparency and tax
administration have been strengthened in several dimensions.
However, additional effort should be made in removing
institutional barriers in combating tax evasion and stepping up
investment in transportation as well as electricity transmission
and distribution, given large infrastructure gaps. In addition, to
secure gains in terms of reduced inequality in the past decade,
stronger implementation of the NDP priorities in education,
training and expansion of conditional cash transfers will be
needed. A tax reform that rebalances away from indirect taxation
and maintains low income tax rates but limits deductions could
improve progressivity and help finance these initiatives to
promote more inclusive growth.

Data for surveillance is being strengthened. Paraguay recently
implemented an enhanced general data dissemination (e-GDDS) system
to make essential macroeconomic data available. Executive
Directors encouraged the authorities to complete the remaining few
steps to satisfy the higher special data dissemination or SDDS

P U E R T O    R I C O

SHORT BARK: Proposes Postpetition Factoring From LSQ Funding
Short Bark Industries, Inc., et al., ask for permission from the
U.S. Bankruptcy Court for the District of Delaware to obtain
secured post-petition factoring and other financial
accommodations, consisting of the purchase by LSQ Funding Group,
LLC, as purchaser, and use cash collateral for, inter alia: (i)
the working capital needs of the Debtors, (ii) the satisfaction of
interest, fees and costs due under the DIP Documents, and (iii)
permitted payment of costs of administration of the Chapter 11

The Debtors propose to grant LSQ the Replacement Liens and
Pre-Petition Superpriority Claims to the extent of any Pre-
Petition Diminution in value of LSQ's interest in the Pre-Petition
Collateral as adequate protection for the granting of the DIP
Liens to LSQ, the use of cash collateral, and for the imposition
of the automatic stay.

Since the Petition Date, the Debtors and LSQ have negotiated the
terms of a DIP Facility that would enable the Debtors to have the
necessary liquidity to continue business operations and to proceed
with a competitive auction and sale process in the Court.

While the negotiations involved a longer term facility for these
cases, the Debtors needed emergency liquidity during the week of
July 10, 2017, in order pay critical operational expenses, like
payroll obligations.  After the Debtors and LSQ worked out the
terms of a consensual emergency DIP order, on July 13, 2017, after
a hearing on the matter, the Court entered the corrected emergency
interim order authorizing Debtors to obtain secured postpetition
factoring and financing, which simply provided the Debtors with
the critical funding necessary for the first week of these cases.
As such, the Debtors and LSQ negotiated a more traditional DIP
facility, which culminated in the entry of the Ratification and
Amendment Agreement and the filing of the DIP Motion.  The DIP
Facility will provide the necessary funding for the Debtors to
remain in operations and continue on the path to a competitive
auction and sale process in these bankruptcy cases.

The Debtors believe that the DIP Facility is the best, and only,
financing available to the Debtors under the circumstances and
will enable the Debtors, among other things, to continue to
operate their assets as a going concern during an orderly
marketing and competitive sale process and to otherwise preserve
and maximize the value of the Debtors' estates.  If immediate
liquidity provided in the DIP facility is not obtained in
accordance with the terms of the interim court order and the DIP
documents, the Debtors and their estates will suffer immediate and
irreparable harm.

A copy of the request is available at:


                   About Short Bark Industries

Short Bark Industries, Inc. --
provides military apparels for the Department of Defense, law
enforcement industry.  The Company's current or previously
manufactured items in the military category include but are not
limited to military MOLLE, medium and large rucksacks, assault
packs, IWCS, ACU, ABU, BDU, helmet covers, FROG, A2CU and more.
The Company offers men and boys suits, over garments, bag, and
coats.  Short Bark Industries holds over 120,000+ square feet of
manufacturing capacity with operations in Florida, Puerto Rico and

The Company and 1 other affiliates sought bankruptcy protection on
July 10, 2017 (Bankr. D. Del., Case No. 17-11501 and Case No.
17-11502).  The petition was signed by Phil Williams, CEO and

The Debtors listed total assets of $10 million to $50 million and
total liabilities of $10 million to $50 million.

Bielli & Klauder, LLC serves as lead bankruptcy counsel to the

SHORT BARK: Sets Bid Procedures for All Assets
Short Bark Industries, Inc., and EXO SBI, LLC, ask the U.S.
Bankruptcy Court for the District of Delaware to authorize the
bidding procedures in connection with the sale of substantially
all assets at auction.

A hearing on the Motion is set for July 31, 2017 at 10:00 a.m.
(ET).  Objection deadline is July 27, 2017 at 4:00 p.m. (PET).

Concurrently with the Motion, the Debtors are filing their Motion
to Shorten Notice seeking to shorten the notice period for a
hearing on the Motion.

Prior to and on the Petition Date, the Debtors were exploring
options to sell their business.  They hired SSG Advisors, LLC and
Young America Capital, LLC ("Advisors") as their investment
bankers to market their assets and business with the hope that
value-maximizing transaction could be achieved promptly.  A
marketing process for SBI's assets began in March 2016.

From March 2016 through February 2017, the Advisors contacted over
200 parties, including lenders and strategic buyers, in an effort
to market the Debtors as a ripe investment.  During this period,
there were a number of potential transactions with certain parties
to purchase either the assets of Debtor SBI, or would purchase the
debt position of LSQ.  For various reasons, those transactions
were not consummated.

The Debtors filed these chapter 11 cases to continue the
operations of their business, to avoid any interruption in the
manufacturing process, and to ensure a robust action process.  On
July 13, 2017, the Court held the First Day Hearings where it
became clear that the Debtors and the DIP financing source, LSQ
Funding Group, LLC all supported a potential sale to an interested
purchaser.  The Debtors believe that the best way of maximizing
the value of their assets is to conduct a sale and auction
process, attempt to maximize the potential recovery to the
approximately 50 general unsecured creditors, and allow the
businesses to operate in the ordinary course until the sale

The Debtors believe that the solicitation of bids and a sale of
substantially all of their assets on the timeline proposed allow
them to maximize value for all stakeholders while minimizing
administrative expenses.

The salient terms of the Bidding Procedures are:

    a. Minimum Deposit: 5% of the proposed purchase price

    b. Bid Deadline: Aug. 25, 2017 at 5:00 p.m. (PET)

    c. Sale Objection Deadline and Cure/Assignment Objection
       Deadline: Aug. 25, 2017 at 4:00 p.m. (PET)

    d. Auction: Aug. 29, 2017 at 4:00 p.m. (PET)

    e. Starting Qualified Bid: The Debtors, with the consent of
       LSQ will determine which Qualified Bid or combination of
       Qualified Bids represent the then-highest or otherwise best
       bid for the Assets.

    f. Bidding Increments: The Auction will commence with the
       Starting Qualified Bid and then proceed in minimum
       increments to be announced at the Auction.

    g. Closing with Alternative Backup Bidders:  Prior to the
       entry of the Sale Order, the Debtors will announce the
       identity of the Qualified Bidder or combination of
       Qualified Bidders who submitted the Successful Bid at the

    h. Sale Hearing: Aug. 30, 2017 at (TBD) (PET)

The Debtors asks authority to sell the assets free and clear of
all liens, claims, encumbrances, and other interest.

A copy of the Bidding Procedures attached to the Motion is
available for free at:

The Debtors propose that the hearing to approve the Bidding
Procedures be held on July 31, 2017 at 10:00 a.m., with objections
to the Bidding Procedures, if any, to be filed no later than July
27, 2017 at 4:00 p.m. (PET).  They ask authority to select, with
the consent of LSQ, a Stalking Horse Bidder, and to provide the
Stalking Horse Bidder with customary bid, including a breakup fee
and expense reimbursement.

In order to facilitate the sale of the Debtors' assets and the
assumption, assignment, and/or transfer of the Executory Contracts
and Unexpired Leases to the Successful Bidder contemplated
thereunder, within three business days of entry of the Bidding
Procedures Order, they will serve copies of the Bidding Procedures
Order and the Notice of Assumption and Assignment upon all Sale
Notice Parties.  If the Debtors or Successful Bidder identifies
additional executory contracts or unexpired leases that might be
assumed by the Debtors and assigned to the Successful Bidder or
that were not set forth in the original Notice of Assumption and
Assignment, the Debtors will promptly send a Supplemental Notice
of Assumption and Assignment to the applicable counterparties to
such additional executory contracts and unexpired leases.  The
Cure Amount/Assignment Objection deadline is Aug. 25, 2017 at 5:00
p.m. (PET).

It is essential the Debtors consummate a value-maximizing sale of
their assets expeditiously.  Any delays will lead to unnecessary
expense that will, in turn, frustrate their attempt to maximize
value.  If there is a delay, and LSQ is no longer ready, willing,
and/or able to finance their operations, then they will be unable
to meet payroll and other obligations, and it is highly likely
that their business will shut down, over 500 employees will be
terminated and their assets will be liquidated piecemeal.
However, approving the relief requested in the Motion near the
outset of these chapter 11 cases will maximize value for their
estates, minimize the administrative expenses incurred in the
cases and save jobs.  Accordingly, the Debtors ask the Court to
approve the relief sought.

In order to maximize the value of the assets and minimize the
estates' unnecessary administrative expenses, the Debtors ask the
Court to waive the 14-day stay imposed by Bankruptcy Rules 6004(h)
and 6006(d), to the extent that they apply.

                  About Short Bark Industries

Short Bark Industries, Inc. --
provides military apparels for the Department of Defense, law
enforcement industry.  The Company's current or previously
manufactured items in the military category include but are not
limited to military MOLLE, medium and large rucksacks, assault
packs, IWCS, ACU, ABU, BDU, helmet covers, FROG, A2CU and more.
The Company offers men and boys suits, over garments, bag, and
coats.  Short Bark Industries holds over 120,000+ square feet of
manufacturing capacity with operations in Florida, Puerto Rico and

The Company and one other affiliate sought bankruptcy protection
On July 10, 2017 (Bankr. D. Del., Case No. 17-11501 and Case No.
17-11502).  The petition was signed by Phil Williams, CEO and

The Debtors estimated total assets of $10 million to $50 million
and total liabilities of $10 million to $50 million.

Bielli & Klauder, LLC, serves as lead bankruptcy counsel to the

On Dec. 12, 2016, SSG Advisors, LLC and Young Americak Capital,
LLC, as investment bankers and advisors.

T R I N I D A D  &  T O B A G O

C&W COMMUNICATIONS: Moves to Cut Staff in T&T
--------------------------------------------- reports that C&W Communications in Trinidad and
Tobago is downsizing its operations.

The company offered an undisclosed number of workers voluntary
separation packages, a month after executives reportedly informed
workers of possible layoffs, according to

In a statement, the company that operates Flow and C&W Business
explained that the offer was part of a program aimed at
streamlining its operations and ensuring business viability in the
medium to long term, the report notes.

Managing director of Flow Trinidad Ian Serrao told the Trinidad
Guardian that in recent months, the company had made a deliberate
attempt to rein in its operational costs in an effort to save
jobs, the report relays.

However, it apparently fell short of its objectives, with Mr.
Serrao saying the company "had to make the difficult decision of
reducing head count," the report says.

Mr. Serrao stressed that workers who opted to take the package
would not be disadvantaged and would be treated "fairly and
respectfully," the report discloses.

Mr. Serrao added that the company would put all in place to
support the employees who opt to transition out of the business,
the report relays.

CL FIN'L: Shareholders Score Victory vs. Trinidad Government
------------------------------------------------------------ reports that CL Financial Limited shareholders
have vowed to pay back a TT$15 billion (US$2.2 billion) debt to
the Trinidad Government after scoring what it called a "major
legal victory" against the Keith Rowley administration.

The Trinidad Government went to the High Court with a petition to
have the company liquidated, according to
Finance Minister Colm Imbert had explained then that the move was
in response to attempts by the company's shareholders to take
control of the board, the report notes.

However, after a near seven-hour hearing, High Court Judge Kevin
Ramcharan sided with the company shareholders, ruling that the
action by the Government was premature, the report notes.

Judge Ramcharan said the Government had no real evidence that
shareholders were seeking to dispose the company's assets in the
event they regained control of the conglomerate's board during a
special general meeting carded, the report discloses.

"In fact, the evidence suggests that they (the shareholders) are
intent in repaying their creditors," the report quoted Judge
Ramcharan as saying.

Representative for CL Financial shareholders Carlton Reis told
reporters the Government's action amounted to much ado about
nothing, since the company had no intention of reneging on its
debt, the report notes.

"We will form a team to negotiate with the Government to repay the
taxpayers, which is what we always wanted to do.  I don't know why
the Government went through all this stress about, but we always
insisted we wanted to pay back the Government and we are going to
do it," Mr. Reis said, the report relays.

CL Financial has only paid the Government about TT$7.5 billion
(US$1.1 billion) after it received approximately TT$23 billion
(US$3.4 billion), the report says.

According to Imbert, under the original agreement between the
Government and CL Financial, the bailout was supposed to have been
completed after three years, and the assets of CL Financial and
its subsidiary CLICO should have been disposed of by 2012 in order
to repay the Government, the report notes.

The report relays that Mr. Imbert had expressed concern that there
was reluctance on the part of the other shareholders to continue
the original agreement and to sign another extension to the
shareholders' agreement.

During next special general meeting, shareholders will table
proposals to have two additional members on the board, effectively
giving them control, the report says.

Under the original agreement, the Government holds the majority
stake in the board. CL Financial has four directors, and there are
three directors from the United Shareholders Limited, which
represents all other shareholders, the report adds.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on Aug.
6, 2015, Trinidad Express related that that the Constitution
Reform Forum (CRF) has called on Finance Minister Larry Howai to
refrain from embarking on an "unnecessary drain on the Treasury"
by appealing the decision of a High Court judge, who ordered that
the Minister fulfil a request by president of the Joint
Consultative Council (JCC) Afra Raymond for financial details
relating to the bailout of CL Financial Limited.  The CRF issued a
release stating that if the decision is appealed, not only will it
be a waste of finance but such a course of action will also
demonstrate a "lack of commitment by the Government to the spirit
and intent of the Freedom of Information Act FOIA", under which
the request was made, according to Trinidad Express.

On July 7, 2014, Trinidad Express said the Central Bank has placed
the responsibility of voluntary separation package (VSEP)
negotiations for workers at insurance giant Colonial Life
Insurance Company Ltd. (CLICO) with the company's board, after
which it will review accordingly, the bank said in a statement.
The bank's statement follows protest action by CLICO workers,
supported by their union, the Banking, Insurance and General
Workers' Union (BIGWU), outside the Central Bank in Port of Spain,
according to Trinidad Express.

In a separate TCRLA report on June 26, 2014, said
the Trinidad and Tobago government has welcomed an Appeal Court
ruling that the Attorney General Anand Ramlogan saved the country
from paying out more than TT$1 billion (TT$1 = US$0.16 cents) to
policyholders of the cash-strapped CLICO.  The Appeal Court
overturned the ruling of a High Court that ruled members of the
United Policyholders Group (UPG) were entitled to be paid the
full sums of their polices. CLICO financially caved in on itself
at the end of 2008 after the investment instruments of major
policyholders matured and they wanted hundreds of millions of
dollars they were owed.

On Aug. 6, 2013, the TCR-LA, citing, said that
over TT$8 billion worth of CLICO's profitable business will be
transferred to Atruis, a new company that will be owned by the
state.  The Trinidad Express said that the Cabinet approved the
transfer as the Finance and General Purposes Committee continues
to discuss a letter of intent hammered out by the Ministry of
Finance and CL Financial's 400 shareholders, which envisions
taxpayers will recover the more than TT$20 billion Government has
injected since 2009 to keep CL subsidiary CLICO and other
companies afloat.

At its annual general meeting in Sept. 2013, CL Financial
shareholders voted to extend the agreement with Government until
August 25, 2014, while Cabinet decides on a new framework accord
to recover the debt owed to Government through divestment of CL
subsidiaries, including Methanol Holdings, Republic Bank,
Angostura Holdings, CL World Brands and Home Construction Ltd., related.  Proceeds from the divestment of these
assets will go toward Government's recovery of the billions it
pumped into CLICO.

TCRLA reported on Sep 22, 2011, Caribbean News Now, citing
Reuters, said that the cost of the Trinidad and Tobago
government bailout of CL Financial Limited is likely to rise to
more than TT$3 billion.


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


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

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