TCRLA_Public/180112.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Friday, January 12, 2018, Vol. 19, No. 9



HIDROVIAS DO BRASIL: Fitch Assigns 'BB' Long-Term IDR


CHILE: Economy Expected to Grow 3.2% in 2018, Economists Say

D O M I N I C A N   R E P U B L I C

CAP CANA: Denies Towers Violate Zoning
DOMINICAN REP: Retailers Want to Nix Severance Pay, Advance Tax

P U E R T O    R I C O

A'GACI LLC: Files for Chapter 11 to Cut Retail Footprint
AGACI LLC: Case Summary & 20 Largest Unsecured Creditors
LIBERTY CABLEVISION: Bank Debt Trades at 4.08% Off
PUERTO RICO: Gov't Launches Statehood Campaign in Congress
PUERTO RICAN PARADE: Feb. 7 Disclosure Statement Hearing

SEASTAR HOLDINGS: Wants Up to $1.89M DIP Financing From Volant SVI


VENEZUELA: Pays Brazil Half of $540 Million Trade Debt
VENEZUELA: S&P Lowers 2020 Global Bond Rating to 'D'

                            - - - - -


HIDROVIAS DO BRASIL: Fitch Assigns 'BB' Long-Term IDR
Fitch Ratings has assigned a Long-Term Foreign Currency Issuer
Default Rating (IDR) and Long-Term Local Currency IDR of 'BB' to
Hidrovias do Brasil S.A. (HdB), Fitch has also assigned HdB a
National Long-Term rating of 'AA-(bra)'. The Rating Outlook is
Stable. The ratings reflect HdB's stable cash flow generation,
limited business diversification, Low FX exposure, and relative
smaller scale when compared to regional peers. The Stable Outook
reflects Fitch's view that HdB will develop its operations while
reaching net financial leverage around 3.5x and generating
positive FCF during 2018-2019.


Stable Cash Flow Generation Driven by Take-or-Pay Contracts: HdB's
ratings incorporate its stable cash flow generation, which
reflects the majority of its EBITDA being generated under long-
term take-or-pay contracts. These contracts provide cash flow
visibility and contain features that allow for inflation-adjusted
price increases and pass-through of fuel charges. Volume risk
under take-or-pay contracts is essentially passed on to customers
due to their long-term nature. HdB already has approximately 85%
of its total capacity contracted under long-term take-or-pay
agreements for the next 10 years. Fitch expects HdB's annual cash
flow generation, measured as EBITDA, to reach an average of BRL425
million during 2017-2019.

2017 Turning-Point Year, Expanding Scale: HdB consistently
increased its scale of operations through new contracts during
2014-2017, resulting in improved operational performance in 2017.
The company's total annual EBITDA increased to BRL301 million from
BRL20 million in 2015 during the LTM period ended Sept. 30, 2017.
HdB's EBITDA margin increased to 47.6% from 10.3% during the same
period. The company maintains capacity to transport approximately
17 million tonnes via its 325 barges with a total capacity of 712
thousand tonnes, 19 push boats, and 5 auxiliary push boats as well
as its main port terminals Mirituba Transhipment Station, Villa do
Conde TUP, and TGM.

Limited Diversification Counterbalanced by Low Counterparty Risk:
HdB's operations present some concentration risk, which is not
expected to materially change during 2017-2019. In terms of
product, grains, iron ore, and bauxite represent 54%, 30%; and,
12%, respectively, of HdB's total annual EBITDA. In terms of
routes, the Miritituba-Vila do Conde route represents
approximately 50% of the company's total EBITDA. Company
operations result in approximately 62% and 38% of the total EBITDA
being generated in Brazil and Uruguay/Paraguay, respectively.
HdB's main clients are Vale, COFCO, Mitsui, and Alunorte, which
represent 34%, 30%, 16%, and 13%, respectively, of the company's
annual EBITDA. Positively factored into the ratings is the
company's low counterparty risk, as most of its clients are top
players rated investment grade or above.

Low FX Risk: The company exposure to currency risk is moderate, as
mismatches among revenues, cost and debt are anticipated to remain
immaterial over the next several years. HdB maintains
approximately 60% and 70% of its revenues and cost structure,
denominated in U.S. dollars, respectively. The ratings factor in
HdB's financial strategy as to its liability management and plans
to partially hedge its debt structure. After debt-hedging, total
debt is anticipated to maintain a 60%/40% composition between U.S.
dollar and local currency composition.

Credit Metrics Supportive of the Rating, Material Deleveraging:
Fitch views HdB's net leverage as high but saw it consistently
declining during 2017-2019 driven by higher cash flow generation
as new contracted volume ramped up. The company's net leverage -
measured as total net debt/EBITDA - was 10.3x and 6.5x in 2016 and
LTM Sept. 30, 2017, respectively. Fitch expects HdB's net leverage
ratio to be at 4.3x as of Dec. 31, 2017; trending to levels in the
3.5x-3x range during 2019. The company's interest coverage,
measured as EBITDA/interest paid, is expected to be around 3x
during 2017-2019, improving from 0.9x in 2016. Fitch views HdB's
expected 2017-2019 credit metric levels to be in line with the
'BB' rating.

Positive and Increasing FCF: Fitch expects HdB to consistently
reach positive FCF during 2017-2019 driven by expanding revenues,
better cash flow generation; and significantly lower capex levels.
The company completed an important capex plan of approximately
BRL1.7 billion, 45% of whihc was funded with equity injections,
during 2014-2016. HdB plans lower future capex levels, targeting a
total amount of around BRL335 million during 2017-2019. This
combination of increasing EBITDA and lower capex is expected to
result in FCF levels of approximately BRL77 million and BRL150
million in 2018 and 2019, respectively. The ratings incorporate
the expectation the company will not pay dividends during 2017-


The company is well positioned in the 'BB' rating category
relative to transportation/logistics peers, which are generally
rated in the 'BB' to 'BBB' rating categories. On the National
rating scale, HdB's ratings incorporates considerations such as
its track record in operational performance, capital structure,
scale, and expected credit profile during 2017-2019 versus its
Brazilian peers such as MRS Logistics (Long-term Foreign Currency
IDR BB+/Negative; Long-term Local Currency IDR BBB-/Stable;
National Long-term rating AAA(bra)/ Stable), VLI S.A. (National
Long-term rating AA+/Stable); and Rumo S.A. (Long-term Foreign
Currency IDR BB-/Positive; Long-term Local Currency IDR BB-
/Positive; National Long-term rating A(bra)/ Positive). HdB is
starting to build a good track record in terms of profitability,
FCF generation and net leverage metrics based on new take-or-pay
contracts, which offer more stable cash flow generation versus its
main peers. HdB's forecasted 2017-2019 credit metrics are
partially offset by the company's smaller size compared to other
Brazilian peers.

Expected 2017-2019 net leverage metrics are in line with the
average net leverage expected for other rated Brazilian peers in
the transportation/logistics sector. The following rated companies
Rumo S.A., VLI S.A. and MRS Logistics S.A. are forecasted to reach
2017 net leverage ratios of 4.2x, 3x, and 1.7x, respectively.
HdB's ratings factor in the expectation the company's net leverage
ratio trending to around 3.5x by 2019. The company is well
positioned relative to its Brazilian peers in terms of FCF
generation and after completing an intensive capex plan during
2014-2016. HdB is expected to generate positive FCF during 2017-
2019, while Rumo and VLI are anticipated to remain negative FCF
during the same period due to committed capex plans. MRS is
anticipated to continue to be FCF positive during the period.


Fitch's key assumptions within Fitch rating case for the issuer
- Annual EBITDA levels in the BRL400 million-BRL500 million range
   during 2017-2019
- Positive FCF during 2017-2019.
- Interest coverage (EBITDA/paid interest) consistently around 3x
   during 2018-2019
- Net leverage (Net debt/EBITDA) consistently around 3.5x during


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Material improvement in EBITDA and FCF generation over levels
   incorporated in the ratings
- Interest coverage (EBITDA/paid Interest ratio) consistently
   above 4x
- Net leverage (net debt / EBITDA) consistently below 3x

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Decline in EBITDA levels consistently below levels incorporated
   in the ratings
- Negative FCF
- Interest coverage (EBITDA/paid interest) consistently below
   2.5x during 2018-2019
- Net leverage (net debt / EBITDA ratio) consistently above 4x
   during 2018-2019


Fitch expects HdB to consistently maintain positive FCF during
2017-2019 driven by expanding revenues, better cash flow
generation, and significantly lower capex levels. The company
completed an important capex plan of approximately BRL1.7
billion,;45% funded with equity injections, during 2014-2016. HdB
plans lower future capex levels, targeting a total amount in capex
of around BRL 335 million during 2017-2019. This combination of
increasing EBITDA and lower capex is expected to result in s FCF
levels of approximately BRL77 million and BRL150 million in 2018
and 2019, respectively. The ratings incorporate the expectation
the company will not pay dividends during 2017-2019.


Hidrovias do Brasil S.A.

Fitch has assigned the following ratings:

Hidrovias do Brasil S.A.
-- Long-Term Foreign Currency IDR 'BB' ;
-- Long-term Local Currency IDR 'BB' ;
-- National Long-Term Rating 'AA-(bra)'.

The Rating Outlook is Stable


CHILE: Economy Expected to Grow 3.2% in 2018, Economists Say
The Latin American Herald reports that Chile's economy is
projected to grow 3.2 percent this year, the Central Bank said,
citing a survey of economists.

The gross domestic product (GDP), according to economists'
estimates, grew at an annualized rate of 2.9 percent in December,
according to The Latin American Herald.

The growth in December came on the heels of a 3.2 percent
expansion in GDP in November, the report notes.

The GDP estimates come from the Monthly Survey of Economic
Expectations, which polls 58 academic economists, consultants and
bank economists on the state of the national economy, the report

The Central Bank said in its most recent Monetary Policy Report
(IPOM) that it was leaving its 2017 GDP growth estimate unchanged
at 1.4 percent, the report notes.

Chile's economy, according to the IPOM, will grow between 2.5
percent and 3.5 percent in 2018, the report adds.

D O M I N I C A N   R E P U B L I C

CAP CANA: Denies Towers Violate Zoning
Dominican Today reports that the Cap Cana resort group affirmed
that it has fully complied with Tourism Ministry zoning on the
construction of maximum floors at beachfronts warning that
changing the rules puts legal security at stake.

In a published statement Cap Cana said they decided on their own
to leave a 100-meter swath of beach beyond the high tide mark,
when the law requires just 60 meters, according to Dominican

"The traditional low-altitude tourism development model is
established based on an approximate percentage of minimum land
occupation of 60%," said Cap Cana, whose east region property is
considered the country's biggest area set aside for hotels,
resorts and golf courses, the report notes.

It said Cap Cana's high-rises aren't on the beach and instead at
an average distance of over 1,200 meters from the high tide mark,
"being the closest to the sea at a distance of more than 1,000
meters and the farthest at a distance of 1,400 linear meters," the
report relays.

"With the understanding that the Ministry of Tourism and its
incumbent Mr. Francisco Javier Garcia, as well as the Environment
Ministry in the hands of Mr. Francisco Dominguez Brito are the
entities that legally have the authority to issue the
corresponding permits, this company has conducted due diligence in
all the technical instances," Cap Cana said, the report says.

It adds that it's unaware that in addition to the ministries
legally designated to issue the permit, it also had to obtain
approval from a private entity or specific business group, warning
that changing the rules puts legal security at stake, the report

DOMINICAN REP: Retailers Want to Nix Severance Pay, Advance Tax
Dominican Today reports that the elimination of the severance pay,
a simpler tax reporting process and the exclusion of the tax
payment in advance, are some of the proposals which the Dominican
Merchants Federation (FDC) seeks this year as part of the
country's labor and fiscal reforms.

FDC president, Ivan Garcia, said the points pose a problem for
MSMEs, which in many cases have to borrow to meet those
commitments, according to Dominican Today.

During a luncheon at the Santo Domingo Country Club, Garcia,
accompanied by other FDC directors, said 95% of the companies
created in the Dominican Republic go bankrupt within three years,
due to tax and social security burdens, the report relays.

"We understand that this country cannot continue charging taxes to
a new small business just as it is charged to a large company that
has been established for several years," the business leader said,
the report adds.

As reported in the Troubled Company Reporter-Latin America on
Nov. 20, 2017, Fitch Ratings has affirmed Dominican Republic's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.

P U E R T O    R I C O

A'GACI LLC: Files for Chapter 11 to Cut Retail Footprint
Following an unsuccessful brick-and-mortar expansion effort,
A'GACI, L.L.C., a teen-apparel retailer, sought bankruptcy
protection with plans to immediately reduce its retail footprint.

Founded in San Antonio, Texas, A'GACI has 76 retail stores, not
including two stores in Puerto Rico that remain closed as a result
of hurricanes during 2017.  The Debtor's stores are located in
fashion retail venues predominately in Texas, Florida, California,
and Illinois.  Additionally, third parties operate two A'GACI
franchise locations in Venezuela. The Debtor's corporate office is
located in San Antonio, Texas.  The Company also has a
direct-to-consumer business comprised of its e-commerce website

For the year to date period ended Nov. 25, 2017, the Debtor's
gross sales were $136,204,241. Of that amount, approximately 9.4%
or $12,829,350 was attributable to the Debtor's e-commerce

Mark Butterbach, CFO of A'GACI, L.L.C., said that A'GACI's
financial performance has been negatively affected by (i)
unsuccessful brick and mortar expansion efforts; (ii) a shift in
consumer preference towards online purchases; (iii) difficulties
with the implementation of the Oracle Retail System; and (iv)
hurricanes that significantly impacted the Debtor's most
profitable locations.

Over the past two years, the Debtor opened 21 new store locations
across Arizona, California, Florida, Nevada, and Puerto Rico.  But
the Debtor's rapid expansion into new markets spread the
organization too thin to effectively respond to the rapidly
changing trends in the retail market.

The combined impact of the events above resulted in a substantial
decrease in the Debtor's sales and earnings.  For example, the
Debtor's EBITDA has declined by approximately $7.2 million over
the past year, from approximately $4.7 million in 2016 to
approximately negative $2.5 million in 2017.  The decrease in
EBITDA has negatively impacted the Debtor's liquidity and its
ability to meet obligations as they come due.  Furthermore, the
Debtor also faces an impending debt maturity -- the first lien
credit facility is scheduled to mature on Jan. 30, 2018.

                 Prepetition Capital Structure

As of Nov. 25, 2017, A'GACI's unaudited balance sheet reflected
total assets of approximately $82 million, total liabilities of
approximately $62 million, and partners' capital of approximately
$20 million.

The Debtor's prepetition debt structure primarily consists of:

   (i) $6.072 million in borrowings outstanding as of the Petition
Date under a senior secured revolving credit facility pursuant to
a Credit Agreement dated as of January 30, 2015 (the "First Lien
Credit Agreement") with JPMorgan Chase Bank, N.A.;

  (ii) $4.266 million in principal amount remained outstanding
under two senior secured term loan facilities pursuant to a Loan
Agreement, dated as of Jan. 19, 2017, with Bank of America, N.A.;

(iii) $800,000 in capital lease obligations; and

  (iv) $61,000,000 in general unsecured debt obligations,
including amounts owed to trade vendors and to landlords.

                  Restructuring Initiatives

According to Mr. Butterbach, throughout 2017, the Debtor has
undertaken a review of its business to determine how to address
its continuing liquidity constraints.  As part of that review, the
Debtor and its officers and professionals have considered various
operational and strategic options to increase revenue and control
costs.  The review has also involved an analysis of the Debtor's
marketing strategy, relationships with strategic partners, labor
costs, lease expenses, and a number of other components of the
business to identify opportunities to re-direct the Debtor's
business to more financially viable outlets while continuing to
provide valuable goods and services to the Debtor's loyal customer

A central component of the Debtor's review has been a
store-by-store analysis to, among other things, identify certain
unprofitable stores to close and wind down. The Debtor has been
engaged in ongoing negotiations with its landlords in an effort to
allow the Debtor to more closely control fixed costs; however,
negotiations to date have not yielded significant rent

Ultimately, the Debtor determined that shifting its focus to its
more profitable stores and its online sales warranted the closing
of certain store locations.  The Debtor plans to file a motion for
authorization to continue store closing or similar themed sales to
efficiently liquidate the merchandise and owned furniture,
fixtures, and equipment located at such stores.  To maximize the
efficiency and net proceeds of the Store Closing Sales, the Debtor
entered into an agreement with a liquidating agent to facilitate
the Store Closing Sales.

In addition to planning for the Store Closing Sales, the Debtor's
management considered the possibilities of marketing the Debtor's
business for sale either through Section 363 of the Bankruptcy
or a plan process. In January 2018, the Debtor retained SSG
Advisors, LLC to assist with exploring such efforts.

"The Debtor filed this Chapter 11 Case to maximize value for the
benefit of all interested parties by immediately reducing its
retail footprint and conducting the process of soliciting interest
in the acquisition or refinancing of the Debtor. I believe that
Chapter 11 will provide the Debtor with the best opportunity to
preserve its business as a going concern, make necessary changes
to the Debtor's business plan, eliminate costly lease obligations
at unprofitable locations, and thereby preserve value for the
Debtor's estate and its stakeholders," Mr. Butterbach, the CFO,

A copy of the affidavit of First-Day Motions:

                        About A'GACI

Founded in San Antonio, Texas, A'GACI is a fast-fashion retailer
of women's apparel and accessories.  A'GACI attracts young,
fashion-driven consumers through its value-pricing and frequent
introductions of new and trendy merchandise.  It operates
specialty apparel and footwear stores under the A'GACI banner as
well as a direct-to-consumer business comprised of its e-commerce
website As of Jan. 1, 2018, the Debtor
operated 76 retail stores.  A'GACI is a privately held Texas
limited liability company, and its sole members are John Won and
David Won.

A'GACI, L.L.C., sought Chapter 11 protection (Bankr. W.D. Tex.
Case No. 18-50049) on Jan. 9, 2018.  David Won, manager/CMO,
signed the petition.

The Hon. Ronald B. King is the case judge.

Ian T. Peck, Esq., at Haynes And Boone, LLP, in Fort Worth, Texas,
serves as counsel to Debtor.  Berkeley Research Group, LLC, is the
Debtor's financial advisor.  SSG Advisors, LLC, is the investment
banker.  Kurtzman Carson Consultants LLC is the claims agent.

A'GACI, L.L.C., disclosed $82 million in assets and $62 million in
liabilities as of Nov. 25, 2017.

AGACI LLC: Case Summary & 20 Largest Unsecured Creditors
Debtor: A'GACI, L.L.C.
        12460 Network Blvd., Suite 106
        San Antonio, TX 78249

Business Description: Founded in San Antonio, Texas, A'GACI --
             is a
                      fast-fashion retailer of women's apparel and
                      accessories.  A'GACI attracts young,
                      fashion-driven consumers through its value-
                      pricing and frequent introductions of new
                      and trendy merchandise.  The Debtor operates
                      specialty apparel and footwear stores under
                      the A'GACI banner as well as a direct-to-
                      consumer business comprised of its e-
                      commerce website  Stores
                      feature an assortment of tops, dresses,
                      bottoms, jewelry, and accessories sold
                      primarily under the Debtor's exclusive
                      A'GACI label.  In addition, the Debtor
                      sells shoes under its sister brand labels of
                      O'Shoes and Boutique Five.  Boutique Five
                      also comprises a portion of apparel and
                      accessory merchandise.

Chapter 11 Petition Date: January 9, 2018

Case No.: 18-50049

Court: United States Bankruptcy Court
       Western District of Texas (San Antonio)

Judge: Hon. Ronald B. King

Debtor's Counsel: Ian T. Peck, Esq.
                  HAYNES AND BOONE, LLP
                  201 Main Street, Ste. 2200
                  Fort Worth, TX 76102-3125
                  Tel: 817-347-6613
                  Fax: 817-348-2350


Bankers:          SSG ADVISORS, LLC

Noticing &
                  Web site:

Total Assets: $82 million as of Nov. 25, 2017

Total Debt: $62 million as of Nov. 25, 2017

The petition was signed by David Won, manager/CMO.

A full-text copy of the petition is available for free at:

Debtor's List of 20 Largest Unsecured Creditors:

   Entity                          Nature of Claim    Claim Amount
   ------                          ---------------    ------------
Bank of America                        DC Lien             Unknown
Ray Abbott
100 N Tryon St.
Charlotte, NC 28202

American Express                       Merchant         $1,659,156
Alan Vigil                           Credit Card
Attn: Express Mail Remittance
1200 W 7th St L2 200
Los Angeles, CA 90017

Infogain Corporation                   Expense            $975,094
485 Alberto Way Ste 100
Los Gatos, CA 95032

Ambiance Apparel/Wax Jean              Merchant           $426,007
2415 E 15th Street
Los Angeles, CA 90021

Top Guy Int'l Trading Inc.             Merchant           $385,018
333 Brea Canyon Rd
City of Industry, CA 91789

Elegance Enterprise Corp               Merchant           $378,392
18217 Railroad Street
City of Industry, CA 91748

Oceanarc Capital Partners LLC          Expense            $300,000
Ron Rubick
299 Park Ave
New York, NY 10171

JP Original Corp.                     Merchant            $293,347
19101 E Walnut Drive North
City of Industry, CA 91748

Love Letter Collection                 Merchant           $293,246
C O Rosenthal & Rosenthal Inc.
PO Box 88926
Chicago, IL 60695-1926

Day G                                  Merchant           $241,255

Westfield                              Landlord           $231,359

SDI Industries Inc.                    Expense            $230,104

San Antonio Merchant Shippers          Expense            $173,914

Tovia                                  Merchant           $147,822

Banjul Inc.                            Merchant           $122,600

Privy Inc.                             Merchant           $120,508

Aspire Systems Consulting Pte Ltd      Expense            $120,330

Demandware, Inc.                       Expense            $109,999

Awin Inc.                              Expense            $108,598

Chocolate U.S.A.                       Merchant           $104,049

LIBERTY CABLEVISION: Bank Debt Trades at 4.08% Off
Participations in a syndicated loan under which Liberty
Cablevision of Puerto Rico is a borrower traded in the secondary
market at 95.92 cents-on-the-dollar during the week ended Friday,
December 15, 2017, according to data compiled by LSTA/Thomson
Reuters MTM Pricing.  This represents an increase of 1.23
percentage points from the previous week. Liberty Cablevision of
Puerto Rico pays 350 basis points above LIBOR to borrow under the
$530 million facility.  The bank loan matures on Dec. 25, 2021 and
Moody's B2 rating and Standard & Poor's B rating.  The loan is one
of the biggest gainers and losers among 247 widely quoted
syndicated loans with five or more bids in secondary trading for
the week ended December 15.

PUERTO RICO: Gov't Launches Statehood Campaign in Congress
EFE News reports that Puerto Rico's legislative delegation
launched a campaign in Congress to demand statehood for the

The bipartisan delegation appointed by Gov. Ricardo Rossello,
accompanied by the governor himself and three former governors,
said at a press conference in the US Capitol that Puerto Ricans
have already voted twice in favor of joining the US as its 51st
state and it is "necessary" for them to have the same
opportunities and rights as other Americans, according to EFE

Rep. Jenniffer Gonzalez-Colon, the territory's nonvoting member in
Congress, appeared on the House floor to demand statehood, saying
that "The island overwhelmingly voted for statehood in 2012 by a
margin of 61 percent and 97 percent in June of last year," the
report notes.

However, despite that apparent high level of approval, only 24
percent of Puerto Rican voters went to the polls for the 2017
plebiscite, the report relays.

"It is our moral imperative to demand Congress recognize 3.4
million disenfranchised Americans. It is time to end Puerto
Ricans' second-class citizenship, and statehood is the only
guarantee for that to happen," the report quoted Ms. Rossello as

She said that the effects of Hurricane Maria, which devastated the
island a little over four months ago, had highlighted the fact
that Puerto Ricans are treated as "second-class" citizens, and he
emphasized that the roots of that problem must be found, the
report relays.

In his judgment, the central difficulty is the "lack of political
representation" for the island in the US Congress as a
commonwealth, and he said that this year his administration will
do everything possible to push for a referendum that will provide
the island's residents with their full rights, the report relays.

The delegation's "shadow senators" include former Democratic Gov.
Carlos Romero Barcelo and National Republican Committeewoman of
the Republican Party of Puerto Rico Zoraida Fonalledas, the report

In addition, the shadow House members on the delegation are former
Democratic Gov. Pedro Rossello Gonzalez, former Republican Gov.
Luis Fortuno, former president of the Senate of Puerto Rico and
current State Chair of the Democratic Party of Puerto Rico Charles
Rodriguez, former chief of the US Office of Citizenship Alfonso
Aguilar and baseball Hall of Famer Ivan "Pudge" Rodriguez, who was
not present, the report notes.

The report says that residents of Puerto Rico living on the island
may not vote in US presidential or congressional races, although
they may serve in any branch of the military.

The two powerful hurricanes that struck Puerto Rico this past year
caused local authorities to put the statehood campaign on hold,
but now that most of the island's residents have regained their
water and electricity service the campaign has been resumed, the
report adds.

                          About Puerto Rico

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

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

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

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017.  On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

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

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

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

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

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

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

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

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

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

                      Bondholders' Attorneys

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

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

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

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

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


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

PUERTO RICAN PARADE: Feb. 7 Disclosure Statement Hearing
Judge Carol A. Doyle of the U.S. Bankruptcy Court for the Northern
District of Illinois will hold a hearing on February 7, 2018 at
10:30 a.m. to determine the adequacy of Puerto Rican Parade
Committee of Chicago, Inc.'s disclosure statement that was filed
on September 29, 2017.

All objections to the disclosure statement must be filed no later
than January 12, 2018.

A full-text copy of Judge Doyle's order dated December 8, 2017 is
available at:

              About Puerto Rican Parade Committee

Puerto Rican Parade Committee of Chicago, Inc., sought protection
under Chapter 11 of the Bankruptcy Code (Bankr. N.D. Ill. Case No.
17-03480) on Feb. 6, 2017.  The petition was signed by Angel
Medina, president.  The case is assigned to Judge Carol A. Doyle.

At the time of the filing, the Debtor estimated assets of less
than $1 million.

Paul M. Bach, Esq., and Penelope N. Bach, Esq., at the Bach Law
Offices, serve as the Debtor's bankruptcy counsel.

SEASTAR HOLDINGS: Wants Up to $1.89M DIP Financing From Volant SVI
SeaStar Holdings, Inc., and its affiliates ask the U.S. Bankruptcy
Court for the District of Delaware for authorization to obtain
postpetition loans, advances, and other financing accommodations
and to enter into a senior secured, super-priority
debtors-in-possession credit facility and security agreement with
Volant SVI Funding, LLC.

The Debtors have secured a debtors-in-possession credit facility
in a maximum principal amount of up to $10,189,286 through April
7, 2018.  To continue operating in the ordinary course while
formulating and seeking approval of the terms of a sale of
substantially all of the Debtors' assets pursuant to the U.S.
Bankruptcy Code Section 363 during this period, the Debtors need
to access liquidity.  The Debtors will obtain this liquidity from
the DIP Facility.  The use of cash collateral alone would be
insufficient to meet the Debtors' postpetition liquidity needs and
provide the assurances to passengers, suppliers, and employees
during this period.  In fact, without the DIP Facility, the
Debtors would not be able to operate at all for more than a few
days into these Chapter 11 cases.  Therefore, additional financing
is necessary to maintain the value of the Debtors' businesses and,
ultimately, effectuate a successful sale and reorganization

The Debtors' decision to proceed with the DIP Facility comes after
a dedicated and diligent search for other available and better
financing alternatives.  The DIP Facility is the best, and likely
the only, available source of financing and provides the Debtors
with the liquidity it needs to operate during these Chapter 11
Cases.  The DIP Facility was negotiated at arm's length on terms
that are reasonable. Thus, to ensure the Debtors' access to
sufficient liquidity that will provide the foundation for
maximizing value for all stakeholders, the DIP Facility should be

To provide the foundation for maximizing the value of the Debtors
and their assets for all stakeholders, and to take advantage of
preferred financing terms being offered by the DIP Lender, the DIP
Facility should be approved.  The approval is requested on an
interim basis, for funding up to $1,894,999, which the Debtors
require over the next several weeks, and on a final basis, for
funding up to the total $10,189,286, which the Debtors require to
operate through the contemplated conclusion of their proposed sale

The Debtors do not currently have any available cash.  Based on
expected receipts and disbursements in the ordinary course of
business, the Debtors' cash balance will, absent new financing,
drop to near or below zero within a few days.  Accordingly, the
use of cash collateral alone will not be sufficient to fund these
Chapter 11 Cases through a sale process (or, in fact, past the end
of the week), and, without additional cash resources being made
immediately available, the Debtors will be unable to provide
comfort to passengers, suppliers, and employees that might
otherwise discontinue service with the Debtors during the proposed
sale process.

A critical need exists for the Debtors to obtain funds in order to
continue the operation of their business and consummate an orderly
sale of their assets.

The Debtors have requested that the DIP Lender permits the use of
Cash Collateral and makes loans and advances and provide other
financial accommodations to the Debtors.

On an interim basis, and for the balance of the DIP Facility, on a
final basis.  The ability of the Debtors to continue to operate
their business through their proposed sale process, and indeed in
the very immediate future, depends upon the Debtors obtaining
financing.  The DIP Lender is willing to make loans and advances
and provide such other financial accommodations on a priming
secured and super-priority administrative basis, as more
particularly described herein.

Accordingly, the relief requested in this Motion is necessary,
essential, and appropriate for the continued operation of the
Debtors' businesses and the management and preservation of their
assets and properties through the proposed sale process, and is in
the best interests of the Debtors, their estates, and creditors.

The terms of the DIP Facility have been negotiated at arm's length
and in "good faith," as that term is used in Bankruptcy Code
section 364(e), and are in the best interests of the Debtors,
their estates, and creditors.  The DIP Lender is extending
financing to the Debtors in good faith, and the DIP Facility
Secured Parties are entitled to the benefits of the provisions of
Bankruptcy Code Section 364(e).

18. It is in the best interests of the Debtors' estates that they
be allowed to finance their operations under the terms and
conditions set forth herein.  The relief requested by this request
is necessary to avoid harm to the Debtors' estates, and good,
adequate, and sufficient cause has been shown to justify the
granting of the relief requested herein, and the immediate entry
of the Interim Order. The terms of the DIP Facility and the use of
cash collateral are fair and reasonable under the facts and
circumstances of these Chapter 11 Cases, reflect the Debtors'
exercise of prudent business judgment consistent with their
fiduciary duties and constitute reasonably equivalent value and
fair consideration.

The Debtors have been unable to obtain the required funds in the
forms of (i) unsecured credit or debt allowable under Bankruptcy
Code Section 503(bX1), (ii) an administrative expense pursuant to
Bankruptcy Code Section 36a@) or (b), (iii) unsecured debt having
the priority afforded by Bankruptcy Code section 36a(cXl) or (iv)
debt secured only as described in Bankruptcy Code section 36a@)Q)
or (3).

The Debtors say that it is unlikely that any other lender would
provide financing to the Debtors at this stage.  The DIP Facility
is a strictly limited loan for a very short duration (75 days)
intended to provide the Debtors with the minimal cash needed to
proceed with their proposed asset sale.  The DIP Lender, as the
Pre-Petition Lender has a unique interest in allowing the Debtors
to operate through this process.  Based on the Investment Banker's
experience with numerous similar financings, absent the
Pre-Petition Lender's consent to be primed, the Debtors are unable
to secure alternative financing.  Accordingly, it is not
surprising that the DIP Lender is not only the best source of
postpetition financing, but the only source of postpetition
financing for the Debtors, and the terms and conditions of the DIP
Facility are well within the range of commercial reasonableness.

The loan will have an interest rate of ll% per annum.  Default
rate interest is 13% per annum.

A Facility Fee equal to 2% of (i) the Interim Order Amount and
(ii) the Loan Amount minus the sum of (x) the Interim Order Amount
plus (y) the aggregate amount of the Roll-Up Advance, which will
be fully-earned and added to the outstanding principal amount of
the Obligations upon entry of the Final Order.

An Exit Fee equal to 2% of the amount of the Obligations
(exclusive of the Roll-Up Advance) outstanding on the Termination
Date, which amount shall be payable to the Lender in cash upon the
Termination Date.

Reimburse the DIP Lender, in accordance with, inter alia, Section
9 of the DIP Credit Agreement and the provisions of the other
DIP Financing Documents, for all present and future costs and
expenses, including, without limitation, all professional fees,
consultant fees, appraisal fees, and legal fees and expenses paid
or incurred by the DIP Lender in connection with the financing
transactions as provided in the DIP Financing Documents and this
Interim Order.

The loan will mature the earliest of: (i) an Event of Default and
the default is not cured within five (5) business days; (ii) entry
of an order converting any of these Chapter 11 cases to a case
under Chapter 7 of the Bankruptcy Code or dismissing any of these
Chapter 11 cases; (iii).

A copy of the Debtors' request:


                    About SeaStar Holdings

Based in Puerto Rico, SeaStar Holdings, Inc., dba Seaborn
Airlines, serves local passengers within the Caribbean and
connecting traffic to numerous locations within or outside the
United States through code share or interline arrangements with
multiple airline partners.  The Company's fleet consists of seven
34-seat Saab 34088s and one 15-seat Twin Otter Seaplane.  The
majority of the Company's inter-island flights are via the Saab
fleet.  The Seaplane serves as the primary air transportation
between St. Croix and St. Thomas in the U.S. Virgin Islands.

SeaStar Holdings, Inc., along with affiliates Seaborne Virgin
Islands, Inc., and Seaborne Puerto Rico, LLC, sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 18-10039) on Jan. 8,
The Hon. Christopher S. Sontchi is the case judge.

SeaStar Holdings estimated assets of $1 million to $10 million and
debt of $10 million to $50 million as of the bankruptcy filing.

Adam G. Landis, Esq., Kerri K. Mumford, Esq., and Travis J.
Ferguson, Esq., at Landis Rath & Cobb LLP, serve as the Debtors'
bankruptcy counsel.  Sonoran Capital Advisors LLC is the Debtors'
restructuring advisor.  Stinson Leonard Street LLP is the special
regulatory counsel. Seabury Corporate Advisors LLC is the
investment banker.  Rust Consulting/Omni Bankruptcy is the claims
and noticing agent.


VENEZUELA: Pays Brazil Half of $540 Million Trade Debt
The Latin American Herald reports that the Brazil Secretariat for
International Affairs of the Ministry of Finance reports that on
January 5, 2018, the Central Bank of Venezuela (BCV) paid its
debtor balance with Brazil due back in September for the second
four-month period of 2017 under the Agreement on Reciprocal
Payments and Credits (CCR).

The amount paid was US$262.5 million, according to The Latin
American Herald.

Receipt was possible due to a joint initiative between the
Secretariat of International Affairs, the Central Bank of Brazil
and the financing banks, the report relays.

"Due to the payment by the Central Bank of Venezuela, on January
9, 2018, the Central Bank of Brazil transferred the amounts owed
to the Authorized Financial Institutions with export operations
registered in the four-month period, paying the internal Brazilian
debts in the process," reports the Finance Ministry, notes The
Latin American Herald.

The report discloses that the funds went to pay BNDES, Credit
Suisse and the Bank of China for financing operations of Brazilian
exports to Venezuela.

If Venezuela hadn't paid, Brazil's export guarantee fund FGE would
have had to take the money from the Brazilian treasury to pay the
installments, a situation that is also happening because of
Mozambique's failure to pay for its Brazilian imports, the report

The transaction took place based on the Special Drawing Rights of
the International Monetary Fund, "as the debtor indicated
operational problems to repay debt in US dollars," the report,
citing the Brazil Finance Ministry, notes.

Brazil also reports that Venezuela did not honor its commitments
to the CCR scheduled for January 2018 of US$274.6 million, the
report says.

"The Brazilian government will adopt measures to seek settlement
of those payments," reports the Ministry, the report relays.

Venezuela has burned through its $3.7 billion of Special Drawing
Rights at the IMF and the remaining IMF SDR funds are not enough
to settle the remaining Brazilian debts, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2017, Moody's Investors Service has withdrawn the Caa3
rating of the US$5 billion, 6.5% Government of Venezuela bond due
on Dec.29, 2036 (ISIN USP97475AQ39).

On Nov. 16, 2017, S&P Global Ratings lowered on Nov. 13, 2017, its
long- and short-term foreign currency sovereign credit ratings on
the Bolivarian Republic of Venezuela to 'SD/D' from 'CC/C'. The
long- and short-term local currency sovereign credit ratings
remain at 'CCC-/C' and are still on CreditWatch with negative
implications. S&P said, "At the same time, we lowered our issue
ratings on Venezuela's global bonds due 2019 and 2024 to 'D' from
'CC'. Our issue ratings on the remainder of Venezuela's foreign
currency senior unsecured debt remain at 'CC'. Finally, we
affirmed our transfer and convertibility assessment on the
sovereign at 'CC'."

VENEZUELA: S&P Lowers 2020 Global Bond Rating to 'D'
S&P Global Ratings lowered its issue rating on the Bolivarian
Republic of Venezuela's global bond due 2020 to 'D' from 'CC'. S&P
said, "At the same time, we affirmed our long- and short-term
foreign currency sovereign issuer credit ratings at 'SD/D'. The
long- and short-term local currency sovereign credit ratings
remain at 'CCC-/C' and are still on CreditWatch with negative
implications, where we placed them on Nov. 3, 2017. Other foreign
currency senior unsecured debt issues not currently rated 'D' are
rated 'CC'."


S&P said, "Our CreditWatch negative listing reflects our opinion
that there is a one-in-two chance that Venezuela could default
again within the next three months. We could lower specific issue
ratings to default ('D') if Venezuela doesn't make its overdue
coupon payments before the stated grace period expires, or upon
the execution of the announced debt restructuring.

"If the sovereign cures its default on the overdue coupon payments
and remains timely on other coupon payments before the
restructuring debt operation is completed, we would raise our
long-term foreign currency sovereign issuer credit and issue
ratings to 'CC'.

"If the sovereign completes any potential restructuring operation,
we would lower all of our foreign currency ratings on Venezuela to
default and subsequently raise them to the 'CCC' or 'B' category."


On Jan. 8, 30 calendar days had passed since coupon payment was
due for Venezuela's global bond due 2020, and Venezuela had not
paid $45 million due to bondholders (or the bondholders had not
received funds by that date). In accordance with S&P's criteria,
"Methodology: Timeliness of Payments: Grace Periods, Guarantees,
And Use of 'D' And 'SD' Ratings," we have lowered the issue
ratings to 'D' (default) for this bond.

Overdue coupons now include the following eight issues:

-- US$2.496 billion 7.75% bonds due Oct. 13, 2019
-- US$2.496 billion 8.25% bonds due Oct. 13, 2024
-- US$1.6 billion 7.65% bonds due April 25, 2025
-- US$3 billion 11.75% bonds due Oct. 21, 2026
-- US$2 billion 9.00% bonds due May 7, 2023
-- US$2 billion 9.25% bonds due May 7, 2028
-- US$1 billion 7.00% bonds due Dec. 1, 2018
-- US$1.5 billion 6% bonds due Dec. 9, 2020

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

All other key rating factors were unchanged.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating

  Downgraded; Off CreditWatch
                                         To     From
  Venezuela (Bolivarian Republic of)
   Senior Unsecured
      US$1.5 bil 6% bonds due 2020        D     CC/Watch Neg

  Ratings Affirmed

  Venezuela (Bolivarian Republic of)
   Sovereign Credit Rating
    Foreign Currency                      SD/--/D
   Transfer & Convertibility Assessment   CC
   Senior Unsecured                       D

  Ratings Remain On CreditWatch

  Venezuela (Bolivarian Republic of)
   Sovereign Credit Rating
    Local Currency                        CCC-/Watch Neg/C
   Senior Unsecured                       CC/Watch Neg


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

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

Copyright 2018.  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.

                   * * * End of Transmission * * *