TCRLA_Public/180516.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, May 16, 2018, Vol. 19, No. 96



ARGENTINA: Unions Mull Strike Against Austerity
PROVINCE OF SALTA: S&P Affirms B Currency Ratings, Outlook Stable


BAHAMAS: Real GDP is Estimated to Have Expanded by 1.3%

C A Y M A N  I S L A N D S

GOLDEN KEY: Dissolution Hearing Set May 28


JAMAICA: Repaying Streetlight Debt
UC RUSAL: Reports Higher First Quarter Net Profit


PLASTIGLAS DE MEXICO: Fitch Rates Parent's USD200MM Notes B+(EXP)

P U E R T O    R I C O

ADELPHIA COMMUNICATIONS: Founders Want to Reopen Deloitte Case
BORDERS GROUP: Supreme Court Won't Review Gift Card Case
HORIZON LINES: Pioneer Global No Longer Owns Class A Shares
SPANISH BROADCASTING: Board Declares Dividend of $26.875 Apiece

                            - - - - -


ARGENTINA: Unions Mull Strike Against Austerity
EFE News reports that Argentine labor leaders called for the
country's unions to convene a strike against economic austerity
measures that are expected to become yet more stringent as Buenos
Aires negotiates with the IMF on a stand-by credit line.

President Mauricio Macri's conservative government turned to the
International Monetary Fund as the Argentine peso continued to
plunge against the dollar despite the central bank's decision to
boost the benchmark interest rate to 40 percent, according to EFE

Ms. Christine Lagarde, Managing Director of the International
Monetary Fund, made following statement in Washington D.C.:

"Argentina is a valued member of the International Monetary Fund.
I very much welcome President Macri's statement and look forward
to our continuing partnership with Argentina.  Discussions have
been initiated on how we can work together to strengthen the
Argentine economy and these will be pursued in short order."

As reported in the Troubled Company Reporter-Latin America on
May 8, 2018, Fitch Ratings has affirmed Argentina's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and revised
the Outlook to Stable from Positive.

On December 4, 2017, Moody's Investors Service has upgraded the
Government of Argentina's local and foreign currency issuer and
senior unsecured ratings to B2 from B3. The senior unsecured
shelves were upgraded to (P)B2 from (P)B3. The outlook on the
ratings is stable.  At the same time, Argentina's short-term
rating was affirmed at Not Prime (NP). The senior unsecured
ratings for unrestructured debt were affirmed at Ca and the
unrestructured senior unsecured shelf affirmed at (P)Ca.

Moody's said the key drivers of the upgrade of the rating to B2
are: (1) a record of macro-economic reforms that are beginning to
address long existing distortions in Argentina's economy; and (2)
the likelihood that reforms will continue and in turn sustain
the recent return to positive economic growth.

The stable outlook on Argentina's B2 ratings balances Argentina's
credit strengths of its large, diverse economy and moderate income
levels against the credit challenges posed by still high fiscal
deficits and a reliance on external financing, which increases its
vulnerability to external event risk, said Moody's.

On Nov. 10, 2017, Fitch Ratings revised Argentina's Outlook to
Positive from Stable and has affirmed its Long Term Foreign-
Currency Issuer Default Rating (IDR) at 'B'.

On Oct. 30, 2017, S&P Global Ratings raised its long-term
sovereign credit ratings on the Republic of Argentina to 'B+' from
'B'. The outlook on the long-term ratings is stable.  S&P also
affirmed its short-term sovereign credit ratings on Argentina at
'B'. At the same time, S&P raised its national scale ratings to
'raAA' from 'raA+'. In addition, S&P raised its transfer and
convertibility assessment to 'BB-' from 'B+', in line with its
assessment of sustained local access to foreign exchange.

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, 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.

PROVINCE OF SALTA: S&P Affirms B Currency Ratings, Outlook Stable
On May 11, 2018, S&P Global Ratings affirmed its 'B' foreign and
local currency ratings on the province of Salta. The outlook
remains stable. S&P also affirmed the 'B' issue-level ratings on
the province's secured and unsecured notes.


S&P said, "The stable outlook on Salta reflects our expectation of
a gradual improvement in its budgetary performance in the next 12-
18 months as the administration implements fiscal adjustment
measures and the economy continues to grow. The outlook also
reflects our expectation that Salta's debt will stay at a moderate
level, while structural limitations stemming from its narrow
budgetary flexibility and low GDP per capita will remain."

Downside scenario

S&P said, "We could downgrade Salta if its fiscal results are
considerably below our expectations, for example, if the
administration can't rein in spending or if Argentina's economic
performance worsens over the next couple of years, eroding the
province's revenue base."

Upside scenario

S&P said, "We could raise our ratings on Salta over the next 12-18
months if its budgetary performance improves beyond our current
expectations, reaching average operating surpluses above 5% of
total revenue, or if it posts surpluses after capital expenditures
(capex). This would indicate a significant improvement in Salta's
financial management through spending controls and fiscal
consolidation. The continued strengthening of Argentina's
institutional framework for local and regional governments (LRGs)
would also favor Salta's creditworthiness, although this alone
would not necessarily lead us to upgrade the province."


The 'B' ratings and 'b' stand-alone credit profile (SACP) reflect
the province's individual credit profile and the institutional
framework (SACP is a means of assessing the intrinsic
creditworthiness of Salta under the assumption that there's no
rating cap). Like all Argentine LRGs, Salta operates under an
institutional framework that's recently strengthened but remains
very volatile and underfunded, in S&P's view. At the end of 2017,
Salta's administration passed several adjustment measures in order
to comply with fiscal agreements it signed with the national
government. S&P said, "We believe this reflects the
administration's commitment to improve its finances over the next
few years. Recent efforts to strengthen tax collection and cost-
containment measures support our expectation for an improvement in
the province's budgetary performance; we expect a balanced
operating result in 2018, compared with a deficit of 5.2% in 2017.
At the same time, Salta's low GDP per capita still limits our
ratings, because it results in a structurally weak revenue base
and high infrastructure needs in the province." These factors,
together with a rigid spending structure, given that the
provincial payroll and interest payments account for around 65% of
total expenses, underscore Salta's budgetary constraints. On the
other hand, the province's moderate debt burden and very low
contingent liabilities support its creditworthiness.

Recent adjustment measures reflect political consensus and
commitment to fiscal consolidation

S&P said, "We continue to view the institutional framework for
Argentine LRGs as very volatile and underfunded. However, we
believe that there's a positive trend in the predictability of the
outcome of potential reforms and the pace of their implementation
amid an increasing dialogue between LRGs and the national
government to address various fiscal and economic challenges that
we expect to remain in the short to medium term."

Following a somewhat disappointing performance of Salta's ruling
faction of the Peronist party in the October 2017 midterm
elections, governor Juan Manuel Urtubey reshuffled his cabinet by
replacing the chief of staff and five ministers. Salta's Congress
and the administration passed a series of laws and decrees at the
end of the year aimed at reducing the fiscal deficit and complying
with fiscal agreements with the national government. S&P said, "We
believe these measures reflect the province's efforts to achieve
fiscal sustainability in the medium to long term. During the first
few months of 2018, we observed a better fiscal performance
compared to last year, although the impact of all measures won't
be seen until the end of 2018 or 2019. We expect continuity in the
administration's policies until the end of Mr. Urtubey's term in

Salta's low per capita GDP is a key rating constraint. According
to S&P's estimates, it was $4,812 in 2017, which was only around
one-third of the estimated national GDP for the same year
($14,473) and was lower than those of other provinces such as
Cordoba ($8,957) and NeuquÇn ($16,600). Salta's economy represents
only about 1% of the national GDP. According to the latest
available data, the main sectors of Salta's economy are public
services (including education, and social and health services)
that make up 32.0%, agriculture (12.1%), commerce (11.0%), and
construction (10.0%).

Budgetary performance is gradually improving amid moderate debt
level, but liquidity position will remain weak

S&P said, "We expect Salta's finances to recover during 2018 and
2019, following two years of deterioration. We estimate that the
province will post a balanced operating result in 2018, compared
with a deficit of 5.2% of operating revenue in 2017, and post
surpluses in 2019 and 2020. We base this assumption on our
expectations of economic growth and gradual macroeconomic
stabilization in Argentina, as well as recent measures the
province took to comply with the Fiscal Responsibility Law (FRL)
and Fiscal Consensus it signed with the national government."
These include changes in gross receipt tax rates and measures to
rein in spending such as reducing the number of ministries, a
retirement program and hiring freeze to reduce the number of
public employees, and creating a Spending Control Office, among
other initiatives. The economic slump, low investment, and high
inflation reduced Salta's operating surpluses in 2014 and 2015,
and caused operating deficits in 2016 and 2017. Additionally, in
the last couple of years, higher wages for public servants and
current spending related to infrastructure investments like new
schools and hospitals strained the province's finances.

Salta faces budgetary constraints, given that it generates only
around 25% of its total revenue and receives the remainder from
the national government. S&P said, "We expect this to remain the
case in 2018-2020. We believe that the province's spending
flexibility will remain limited because capex levels will likely
average 10.2% of total expenditures in the next three years. If
federal transfers to finance Salta's capital projects decrease
during 2018, this ratio is likely to drop, because we don't expect
the province to issue debt in the market this year. In addition,
payroll and interest payments represent around 65% of Salta's
operating expenditures. Nevertheless, we view recent measures to
rein in spending, and the negotiations with public-sector unions
to limit wage increase to 15% as positive developments."

S&P believes the province's debt will remain moderate, averaging
38% of operating revenue in 2018-2020, as Salta obtains borrowings
from national programs and multilaterals. Salta's debt increased
from 21% of operating revenue at the end of 2015 to 39% after it
issued $350 million in international capital markets in 2016. In
addition, the province received funds from the national government
through trust funds for infrastructure projects, and had a credit
line from the National Social Security Agency fund, FGS. However,
Salta's debt level remains lower than those of other Argentine
provinces such as NeuquÇn (56%) and the province of Buenos Aires
(50%). As of March 2018, 57% of Salta's debt was dollar-
denominated, highlighting potential currency risks. Although this
percentage is lower than that of other provinces such as Cordoba,
steeper-than-expected depreciation in the local currency could
exacerbate this risk.

As of March 2018, Salta's outstanding structured notes totaled
$87.1 million. On March 16, 2012, Salta issued $185 million in the
capital markets for long-term infrastructure investments. The oil
and royalties that the province receives from various oil and gas
producers ("the dedicated concessionaires"), which secure the
notes, represent 12% of the oil and gas production value at the
wellhead of the dedicated concessionaires. S&P rates these notes
as Salta's any other direct, general, unconditional, and
unsubordinated obligations, given that we believe their
creditworthiness is directly linked to that of the province.

S&P said, "In our view, Salta's liquidity position is weak, given
that its free cash and reserves are insufficient to cover the 2018
projected debt service, which will likely reach ARP3 billion. The
province has invested in low-risk assets with available funds
(ARP2.6 billion as of March 2018), mostly from the international
bond issuance, which it will ultimately use for capital investment
projects. Argentine LRGs have increased their access to external
funding sources after the sovereign default was cured in 2016.
However, we view overall access to external liquidity as still
uncertain because of the country's weak banking system, which our
Banking Industry Country Risk Assessment (BICRA) scores at group
'8'. Our BICRAs, which evaluate and compare global banking
systems, are grouped on a scale from '1' to '10', ranging from the
lowest-risk banking systems [group '1'] to the highest-risk [group
'10']). We also view access as uncertain due to the FRL's
restrictions on the provincial debt issuances, given that
subnational governments are not allowed to use such debt for
operating expenditures and require the national government's
authorization for issuances. Salta's debt service profile is
relatively smooth, so we don't expect much volatility in the debt
service coverage ratio in the next three years.

"We believe Salta's overall exposure to contingent liabilities is
very low. Guarantees to municipalities and government-related
entities (GREs) are included in the province's debt stock.
Therefore, we incorporate these guarantees into our debt burden
assessment. Salta's two largest public companies are the
transportation enterprise, SAETA, and the water and sanitation
company, CoSAySA, neither of which have debt. The province
supports both companies through subsidies to balance their
accounts. Therefore, we consider these two companies as non-self-
supporting. In addition, Salta has other 19 GREs, including public
hospitals, a university, regulatory agencies, and a health
institute, most of which receive support from the province in the
form of transfers, already reflected in the province's budget. To
our knowledge, none of these other GREs have debt or are likely to
issue any."

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.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

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

  Ratings Affirmed

  Salta (Province of)
   Issuer Credit Rating
    Foreign Currency                      B/Stable/--
    Local Currency                        B/Stable/--
   Senior Secured                         B
   Senior Unsecured                       B


BAHAMAS: Real GDP is Estimated to Have Expanded by 1.3%
On May 4, 2018, the Executive Board of the International Monetary
Fund (IMF) concluded the 2018 Article IV consultation with The
Bahamas, on a lapse of time basis.

Real GDP is estimated to have expanded by 1.3 percent in 2017.
Economic activity has been supported by the completion of Baha
Mar, new FDI-financed projects, and post-hurricane reconstruction
activity. However, air tourist arrivals declined 4 percent in
2017, reflecting the impact of Hurricane Matthew on hotel
infrastructure in the Grand Bahama Island. Baha Mar created about
4,000 jobs by March 2018 and helped reduce the unemployment rate
to 10.1 percent in November 2017, from 11.6 percent one year
earlier. Inflation remains low despite higher oil prices. Headline
year-on-year inflation reached 1.8 percent in December 2017, up
from 0.8 percent in December 2016.

After reaching 5.8 percent of GDP in FY2017, the central
government fiscal deficit is declining on the back of lower
spending. Data for the first 7 months of FY2018 show a decline in
the deficit to 1.6 percent of GDP, 1.2 percentage points of GDP
lower than a year earlier, excluding the one-off purchase of
promissory notes issued by Resolve. The government successfully
placed an external bond for US$750 million in November 2017.

Commercial banks remain liquid and well capitalized. As of end
2017, the average capital adequacy ratio stood at 33.3 percent,
well above the regulatory requirement of 17 percent and liquid
assets represented 29.0 percent of total assets, and more than
double the statutory minimum. The stock of nonperforming loans
(NPLs) declined to 9.2 percent of total loans, from 11.4 percent
at end-2016. Despite ample capital and liquidity in the system,
banks remain cautious in making new loans, which has kept credit
to private sector, excluding NPLs, broadly flat. Pressures on
correspondent banking relationships (CBR) have not resulted in
major disruptions so far.

Real GDP growth is projected at 2 1/2 percent in 2018 and 2 1/4
percent in 2019 on the back of stronger growth in the United
States; the phased opening of Baha Mar; and a pickup in foreign
direct investment. Medium-term growth is projected to remain at
1 1/2 percent, reflecting significant structural impediments.

The current account deficit is estimated to have widened to 16.4
percent of GDP in 2017, from 7.7 percent of GDP in 2016. The
increase is due to a surge in imports of goods and services
related to the completion of Baha Mar, the recovery in oil prices,
and lower tourism receipts due to the impact of Hurricane Matthew.
The 2017 cyclically-adjusted current account deficit, after
deducting FDI-related imports, is estimated to be above the level
consistent with fundamentals and desirable policy settings.
Foreign reserves strengthened to US$1.4 billion by end-2017,
equivalent to 3.6 months of imports of goods and services, boosted
by the sovereign external bond placement in November 2017.

                Executive Board Assessment

In concluding the 2018 Article IV Consultation with The Bahamas,
Executive Directors endorsed staff's appraisal as follows:

The Bahamian economy has turned the corner but significant
challenges remain. Near-term economic prospects are improving,
with real GDP growth projected to reach 2 1/2 percent in 2018, on
the back of the phased opening of Baha Mar, a stronger U.S.
economy, and a pickup in FDI. However, significant structural
impediments require bold policy action to unlock medium-term
growth. Public debt ratios have declined on the back of a sizable
upward revision to nominal GDP, but fiscal deficits remain above
debt-stabilizing levels. External reserve buffers have improved;
however, the external position is weaker than the level suggested
by fundamentals and desirable policy settings.

Fiscal consolidation, with a focus on reducing current
expenditure, is critical to maintain market confidence and reverse
the upward trend in the public debt-to-GDP ratio. The FY2018
target is within reach. However, measures still need to be
identified to bring the deficit down to desirable levels while
avoiding an undue compression of capital spending. The authorities
should focus on i) trimming the wage bill; ii) turning SOE's self-
sufficient; and iii) reforming the unsustainable civil servants'
pension system. Addressing also imbalances at the National
Insurance Board (NIB) should reduce fiscal contingent liabilities.
The Bank of The Bahamas has strengthened its capital position, but
it still requires a sustainable business model, free from
political interference, to keep fiscal contingent liabilities

Increased reliance on preparedness and risk reduction policies,
including by setting up a natural disasters savings fund, should
enhance fiscal and economic resilience. The Bahamas should create
a savings fund with a target size between 2-4 percent of GDP, by
setting aside ´ percentage point of GDP annually during non-
disaster years. In addition, insuring public assets and
encouraging the broader use of private insurance, including
through financial literacy training and targeted subsidies, would
reduce fiscal contingent liabilities. Investing in resilient
infrastructure and maintaining up-to-date building codes, land
use, and zoning guidelines are also critical elements of an
adequate disaster risk management strategy.

The planned fiscal responsibility legislation is welcome. The
framework should include a permanent ceiling of 1 percent of GDP
on the fiscal deficit and a cap on the growth rate of current
expenditure equal to the estimated long-run growth of nominal GDP.
To allow space for automatic stabilizers to operate, annual
budgets should target a deficit of ´ percent of GDP. Strong
adherence to these targets over the medium term would keep debt on
a firmly downward trajectory and would allow accumulating savings
into a natural disasters fund. Completing ongoing reforms to the
public financial management system is critical for the
effectiveness of a medium-term fiscal framework.

The authorities should continue strengthening fiscal revenues with
the intention to make the tax system more progressive; protect
infrastructure and social spending; and offset a reduction in
import duties under an eventual WTO accession. Introducing a zero-
rate VAT for some items should be avoided as there can be better-
targeted tools to assist low-income households.

Lifting growth in the medium term requires resolute implementation
of structural reforms. Priorities include advancing energy sector
reforms to improve the reliability of the electricity grid and
reduce costs; streamlining administrative processes to improve the
ease of doing business; expanding vocational and apprenticeship
programs to help reduce skills mismatches and youth unemployment;
and steadfast implementation of the credit bureau to improve
access to credit.

Moving forward with the planned amendments to the central bank law
would bring it closer to international best practices and would
strengthen the peg's credibility. The reduction in central bank
lending to the government is welcome. The planned amendments,
which include provisions to improve central bank governance;
clarify its objectives; and tighten limits to central bank lending
to the government, should lead to a more robust legislation.

Strong compliance with AML/CFT and tax transparency standards
should help mitigate the withdrawal of CBR and safeguard the
integrity of the financial sector. Steps to strengthen the AML/CFT
framework and to comply with tax transparency standards, including
by committing to implement the OECD's international standards on
tax transparency, are welcome. It is critical to work closely with
the CFATF and the FATF to swiftly address the strategic
deficiencies in the AML/CFT regime identified in the 2017 Mutual
Evaluation Report (MER).

C A Y M A N  I S L A N D S

GOLDEN KEY: Dissolution Hearing Set May 28
Golden Key Limited, in liquidation, applied to the Grand Court of
the Cayman Island for an order that the company be dissolved.

A hearing on the application is set for May 28, 2018, 9:00 a.m. at
the Law Court, George Town, Grand Cayman.

         Jeffrey Stower
         PO Box 493, Century Yard, Cricket Square
         Grand Cayman, Cayman Islands, KY-1106


JAMAICA: Repaying Streetlight Debt
RJR News reports that the Government has started to pay the
Jamaica Public Service (JPS) for streetlight debt it incurred last

Director of Corporate Communications at the JPS, Winsome Callum,
told RJR News that she is aware of a payment being made, but she
did not say how much of the debt was paid nor how much is

Earlier this year, it was revealed that the Government owed JPS
more than $7 billion for streetlights, according to RJR News.

Then Minister of Finance, Audley Shaw, said he was considering
options which could be used to pay down the arrears and selling
the Government's shares in the JPS was being considered, the
report notes.

He also said the Government may ask Jamaicans pay more on their
electricity bills to offset any future costs relating to
installing streetlights, the report relays.

The current Finance Minister, Dr. Nigel Clarke told RJR News that
although payments have commenced he believes that selling the
Government's shares in the utility company is still a viable
option being considered, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2018, Fitch Ratings has affirmed Jamaica's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and has
revised the Rating Outlook to Positive from Stable.

UC RUSAL: Reports Higher First Quarter Net Profit
RJR News reports that Windalco's parent company -- Russian
aluminium giant Rusal -- is reporting higher first-quarter net
profit amid stronger aluminum prices, but warned that sanctions
imposed by the US in April could harm its business.

The US last month disclosed sanctions on Russian billionaire Oleg
Deripaska and several companies in which he is a large shareholder
in response to what it called Russia's malign activities,
according to RJR News.

UC Rusal's recurring net profit for the first quarter of 2018 rose
22.4 per cent to US$531 million from US$434 million the same time
last year, the report notes.

It said its current situation was largely affected by the
sanctions imposed by the US on April 6, and repeated its
assessment that it is highly likely that the impact may be
materially adverse for its business, the report relays.

Meanwhile, Rusal has reportedly asked the London Metal Exchange to
temporarily lift its suspension on its aluminum after an extension
of the deadline for companies to wind down contracts with the
Russian firm under U.S. sanctions, the report notes.

The London Metal Exchange suspended Rusal's aluminum from April 17
after the U.S. Treasury Department imposed the sanctions, the
report relays.

The report discloses that the Treasury has extended its deadline
for U.S. consumers to wind down business with Rusal to October 23
from June 5 and said it would consider lifting sanctions if
Rusal's major shareholder, Russian tycoon Oleg Deripaska, ceded
control of the company.

The extension detailed effectively means aluminum produced and
sold by Rusal until October 23 is free of U.S. sanctions, so long
as the deal to buy was signed before they were imposed on April 6,
the report adds.

West Indies Alumina Company (WINDALCO), formerly Jamalcan, is a
joint venture between the UC Rusal and the Government of Jamaica.

As reported in the Troubled Company Reporter-Latin America on
April 18, 2018, Fitch Ratings revised the Rating Watch on
Russia-based aluminium company United Company Rusal Plc's Long-
Term Issuer Default Rating (IDR) of 'BB-', Short-Term IDR of
'B' as well as Rusal Capital D.A.C.'s senior unsecured rating of
'BB- '/'RR4' to Negative from Evolving. Fitch simultaneously
withdrew all the ratings.


PLASTIGLAS DE MEXICO: Fitch Rates Parent's USD200MM Notes B+(EXP)
Fitch Ratings has assigned an expected 'B+(EXP)'/'RR4' rating to
Unigel Luxembourg S.A's new proposed senior secured USD200 million
in bonds due 2024. The agency has also withdrawn Unigel
Luxembourg's 'B+(EXP)'/'RR4' for the previously proposed USD400
million unsecured notes due 2025, which have been cancelled. The
new issuance will also be unconditionally and irrevocably
guaranteed by Unigel and its operating subsidiaries Acrilonitrila
do Nordeste S.A, Companhia Brasileira de Estireno, Proquigel
Quimica S.A. and Plastiglas de Mexico S.A. de C.V. The notes will
now be secured by fixed assets related to Unigel's Styrenics
Business and will benefit from a second lien over the assets
current pledged to the EPP facility. Proceeds of the bonds will be
used for short-term debt repayment and for general corporate
purposes. Fitch currently rates Unigel Participacoes S.A.
(Unigel)'s long-term, foreign- and local-currency Issuer Default
Ratings (IDR) 'B+'/Outlook Stable.

With the new secured notes issuance, Fitch considers that most
immediate refinancing risks should be addressed, but liquidity,
debt mix and medium term debt amortization profile will be
relatively weaker than previously anticipated but still manageable
for a 'B+' rated entity. Unigel's inability to proceed with the
bond issuance would trigger a rating downgrade of at least one

The ratings continue to reflect Unigel's small business-scale
relative to larger and more diversified global petrochemical
peers, leading the company to be a pricetaker. The ratings also
factored in the cyclical nature of its industry, which means
volatile operating cash flow and a track record of limited
financial flexibility. Partially offsetting these risks are
Unigel's integrated operations in the acrylics and styrenics
businesses, some operational flexibility due to the high
proportion of variable costs, established market position in
Brazil, and a diversified portfolio of customers and key end
markets. The ratings also reflect the stronger capital structure
following a recent non-core asset sale and debt refinancing deal
late in 2017. Fitch's base scenario indicates continued positive
FCF generation for the company alongside its net adjusted
debt/EBITDA ratio of approximately 3.1x during 2018; further
improving to around 2.5x during 2019.


Cyclical Industry; Intermediate Player: The inherently cyclical
nature of the commodity chemicals sector means Unigel is subject
to feedstock and end-product price volatility, driven by
prevailing market conditions and demand/supply drivers. Unigel is
a small business scale chemicals producer operating in the
midstream of the petrochemical industry value chain, which puts
the company in a weaker position against much larger single-
supplier providers and large manufacturing groups. The company's
products are concentrated in the acrylics and styrenics segments
and serve a broad and diverse range of end markets, including
construction, automotive and white goods and durables.

Operational Flexibility: Unigel's credit profile benefits from a
diversified product range under the acrylics and styrenics
segments. Some integration applies along the production value
chain for its key products, which brings greater flexibility in
sales, fewer constraints from raw material supply, and relatively
better margins. Over the last three years, Unigel's gross profit
split has ranged around 42%-58% between the two segments. In the
same period, Unigel's EBITDA margin averaged 12.5%, which is
comparable with small- to medium-size petrochemical peers given
the uptrend of the cycle.

Competition from Imports: Unigel benefits from robust market-share
positions in Brazil and Mexico, the two countries where its
industrial sites are distributed; six in Brazil and two in Mexico.
During 2017, Mexico's revenues represented 17% of the consolidated
revenues. Unigel is the single producer of acrylics in Brazil and
exhibits a good business position in the styrenics segment. The
company's main competitive threats are imports, and most
competitors have a larger scale of business. The company has
benefited from local imports tariffs (10%-14%), and any change to
this framework could be a risk to Unigel. The company's global
capacity share ranges from 1%-2% for its main products and between
35% and 45% in Brazil.

Leverage to Improve: Fitch forecasts Unigel's net leverage to
decline to 3.1x during 2018 and move toward 2.5x by year-end (YE)
2019, from 3.4x at YE 2017 and an average of 7.1x between 2013 and
2016. This expected low to moderate leverage compared with issuers
with the same IDR is offset by the cyclical nature of the
industry, the size of the company and limited financial
flexibility. Over the last few years, Unigel has faced financial
stress and was able to access secured debt only at very high
interest rates. During November 2017, the company completed a
debt-refinancing plan associated with an asset sale (BRL585
million) that significantly improved its capital structure. On a
pro-forma basis, considering the proposed bonds, Unigel's debt
profile will be 97% denominated in U.S. dollars, from 75%,
currently, but the company will carry some hedge protections in
order to mitigate FX risks.

Positive FCF: Fitch expects Unigel's cash flow from operations
(CFFO) to grow in the medium term as a result of operational
improvements, better working capital management and lower interest
burden following the debt-refinancing plan. Cost saving
improvements related to logistics and a greater focus on SG&A
expenses should favor CFFO generation. Fitch forecasts CFFO to
average BRL245 million in the next two years and FCF to remain
positive in the range of BRL40 million to BRL80 million. Fitch's
base case assumptions include average capex of BRL120 million and
minimum dividend distributions of 25% pre-tax net income.


Despite Unigel's solid market share in Latin America, the company
is a pricetaker and is relatively small relative to the global
chemical industry, with EBITDA generation of approximately USD100
million. Product diversification and some business integration
help to reduce profit margin volatility, although cash generation
is still affected by commodity price movements and any change in
the supply/demand dynamics of its end-products.

Compared with other Latin America petrochemical peers, Unigel is
smaller and has a weaker financial profile when compared with
Cydsa S.A. (BB+/Stable), Braskem S.A (BBB-/Stable) and Mexichem,
S.A.B. de C.V. (BBB/Negative). Unigel is well positioned in terms
of leverage ratios when compared with other Latin American peers
in the 'B' category.


Fitch's Key Assumptions Within its Rating Case for the Issuer

  -- Low-single-digit increase in volumes;

  -- Supportive petrochemical spreads in the next two years;

  -- Average capex of BRL120 million;

  -- Dividend payout at 25% of net profits;

  -- USD200 million bond issuance with the majority of proceeds to
prepay short-term debt.


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

  --Given Unigel's business scale and industry cyclicality, an
upgrade in the medium term is unlikely.

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

  --Failure to proceed with the bond issuance could trigger a
rating downgrade of at least one notch;

  --Change in import tariffs in Brazil that could allow increased

  --Operating EBITDA margin below 10% on a sustained basis;

  --Maintenance of poor liquidity, leading to recurring
refinancing risks;

  --Net debt/EBITDA ratio moving above 4.0x on sustainable basis.


Fitch considers Unigel's ability to issue the proposed bonds as
crucial to improving its current poor liquidity and high
refinancing risk. The company has recently renegotiated part of
its debt with several large banks in Brazil, which should limit
its ability to raise cash in Brazil. At year-end 2017, Unigel
reported total debt of BRL1.2 billion, BRL497 million of which was
short-term debt, and a readily available cash position of BRL35
million. Short-term debt coverage, as measured by cash/short-term
debt, averaged only 0.1x over the last five years, but should
improve as 80% of the seven-year bonds will be used to repay
existing debt. Around 78% of Unigel's debt is secured by fixed
assets and the remainder has receivables or letter of guarantees
as collateral.


Fitch Currently Rates Unigel as follows:

Unigel Participacoes S.A

  --Long-term, foreign- and local-currency IDRs at 'B+';

  --National scale long-term rating at 'A-(bra)'.The Rating
Outlook is Stable.

Unigel Luxembourg S.A.:

  -- The 'B+(EXP)'/'RR4' for the USD400 million senior unsecured
notes due to 2025 has been withdrawn.

  -- A new Expected Rating of 'B+(EXP)'/'RR4' for its USD200
million senior secured notes due to 2024 has been assigned.

P U E R T O    R I C O

ADELPHIA COMMUNICATIONS: Founders Want to Reopen Deloitte Case
Dan Packel, writing for Bankruptcy Law360, reports that Adelphia
Communications Corp. founder John Rigas, other members of his
family, and a series of family-controlled businesses are asking a
Pennsylvania appeals court to revive a lawsuit valued in the tens
of millions of dollars over Deloitte & Touche LLP's alleged
responsibility for the financial misdealings that led to the
Company's 2002 collapse.

At its core, Law360 cites, the lawsuit asserted that Deloitte
contributed to Adelphia's collapse by providing flawed financial
advice and botching an audit. Deloitte ultimately paid a $50
million settlement to the U.S. Securities and Exchange Commission
in the matter, Law360 relates.

The cases are Island Partners et al. v. Deloitte & Touche LLP,
case numbers 1311 EDA 2016 through 1319 EDA 2016, in the Superior
Court of the State of Pennsylvania.

                  About Adelphia Communications

Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation was once the fifth-biggest cable company.  Adelphia
served customers in 30 states and Puerto Rico, and offered analog
and digital video services, Internet access and other advanced
services over its broadband networks.

Adelphia collapsed in 2002 after disclosing that founder John
Rigas and his family owed $2.3 billion in off-balance-sheet debt
on bank loans taken jointly with the company.  Mr. Rigas was
sentenced to 12 years in prison, while son Timothy 15 years.

Adelphia Communications and its more than 200 affiliates filed for
Chapter 11 protection (Bankr. S.D.N.Y. Lead Case No. 02-41729) on
June 25, 2002.  Willkie Farr & Gallagher represented the Debtors
in their restructuring effort.  PricewaterhouseCoopers served as
the Debtors' financial advisor.  Kasowitz, Benson, Torres &
Friedman LLP and Klee, Tuchin, Bogdanoff & Stern LLP represented
the Official Committee of Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas-Managed Entities, were
entities that were previously held or controlled by members of the
Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision LLC.  The RME Debtors filed for Chapter 11 protection
(Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642) on March 31,
2006.  Their cases were jointly administered under Adelphia
Communications and its debtor-affiliates' Chapter 11 cases.

The Bankruptcy Court confirmed the Debtors' Joint Chapter 11 Plan
of Reorganization on Jan. 5, 2007.  The Plan became effective on
Feb. 13, 2007.

The Adelphia Recovery Trust, a Delaware Statutory Trust, was
formed pursuant to the Plan.  The Trust holds certain litigation
claims transferred pursuant to the Plan against various third
parties and exists to prosecute the causes of action transferred
to it for the benefit of holders of Trust interests.  Lawyers at
Kasowitz, Benson, Torres & Friedman, LLP (NYC), represent the
Adelphia Recovery Trust.

BORDERS GROUP: Supreme Court Won't Review Gift Card Case
Sara Randazzo, writing for The Wall Street Journal, reported that
any shoppers still holding on to Borders gift cards can finally
toss them in the trash as the U.S. Supreme Court said it won't
take up a case that could have given holders of the defunct book
seller's gift cards a chance to turn the languishing plastic into

Borders Group customers who missed out on $210 million in gift
cards after the company went bankrupt, lost their bid on Oct. 5,
2015, to revive the dispute after the U.S. Supreme Court denied
their petition to consider the suit, Dani Meyer at Bankruptcy
Law360 reported.

The high court shot down the customers' June petition arguing that
11 circuit courts have 11 different rule sets governing when to
dismiss a bankruptcy claim appeal and that the Supreme Court
should step in, instead siding with the liquidating trust.

According to the report, plaintiff's lawyer Clinton Krislov has
been fighting on behalf of the gift card holders for years,
arguing the Borders bankruptcy estate didn't do enough to notify
shoppers that they risked losing the value on their credits.
Before the Supreme Court denial, lower courts found the gift card
holders waited too long to raise their claims once Borders went
into bankruptcy in 2011, the report said.

As previously reported by The Troubled Company Reporter, the Mr.
Krislov filed a petition with the Supreme Court, making a last-
ditch effort to recover some value for holders of the Borders gift
cards.  The petition is the last chapter in a long-running fight
over whether the gift-card holders waited too long to try to turn
their credits into cash.  The TCR, citing The Wall Street Journal,
pointed out that the defunct retailer estimates customers never
redeemed 17.7 million gift cards worth $210.5 million by the time
it shut its doors in September 2011.

The U.S. Court of Appeals for the Second Circuit, in November
2014, sided with two lower courts and ruled that a group of
Borders customers waited too long to raise their claims for the
unused gift cards.

                        About Borders Group

Borders Group operated book, music and movie superstores and mall
based bookstores under the Borders, Waldenbooks, Borders Express
and Borders Outlet names, as well as Borders-branded airport
stores in the United States.  At Jan. 29, 2011, the Company
operated 639 stores in the United States and 3 in Puerto Rico.
The Company also operated a proprietary e-commerce Web site -- launched in May 2008, which included
both in-store and online e-commerce components.  As of Feb. 11,
2011, Borders employed a total of 6,100 full-time employees,
11,400 part-time employees, and roughly 600 contingent employees.

Borders Group Inc. and its affiliates filed for Chapter 11
protection (Bankr. S.D.N.Y. Case No. Lead Case No. 11-10614) in
Manhattan on Feb. 16, 2011.  David M. Friedman, Esq., David S.
Rosner, Esq., Andrew K. Glenn, Esq., and Jeffrey R. Gleit, Esq.,
at Kasowitz, Benson, Torres & Friedman LLP, in New York, served as
counsel to the Debtors.  Jefferies & Company's Inc. served as the
financial advisor.  DJM Property Management is the lease and real
estate services provider.  AP Services LLC served as the interim
management and restructuring services provider.  The Garden City
Group, Inc., acted as the claims and notice agent.

Attorneys at Morgan, Lewis & Bockius LLP, and Riemer & Braunstein
LLP, served as counsel to the DIP Agents.  Lowenstein Sandler
represented the official unsecured creditors committee for Borders

The Debtor disclosed $1.28 billion in assets and $1.29 billion in
liabilities as of Dec. 25, 2010.

Borders selected proposals by Hilco and Gordon Brothers to conduct
going out of business sales for all stores after no going concern
offers of higher value were submitted by the deadline.

In January 2012, Borders' First Amended Joint Chapter 11 Plan of
Liquidation became effective, and the Company emerged from Chapter
11 protection.  The Court confirmed the Plan filed by the Debtors
and the Official Committee of Unsecured Creditors at a Dec. 20,
2011 hearing.

The Debtors have been renamed BGI Inc.

Curtis R. Smith has been appointed as Liquidating Trustee of the
BGI Creditors' Liquidating Trust.  He is represented by Bruce
Buechler, Esq., Bruce S. Nathan, Esq., and Andrew Behlmann, Esq.,
at Lowenstein Sandler LLP.

HORIZON LINES: Pioneer Global No Longer Owns Class A Shares
Pioneer Global Asset Management S.p.A. and Pioneer Investment
Management, Inc. disclosed in an amended Schedule 13G filed with
the Securities and Exchange Commission that as of June 30, 2015,
they ceased to beneficially own shares Class A common stock of
Horizon Lines, Inc.  Pioneer Global Asset Management previously
held 9,761,932 Class A shares as of Dec. 31, 2014.

A copy of the regulatory filing is available at:


                        About Horizon Lines

Horizon Lines, Inc., is a domestic ocean shipping company and the
only ocean cargo carrier serving all three noncontiguous domestic
markets of Alaska, Hawaii and Puerto Rico from the continental
United States.  The company owns a fleet of 13 fully Jones Act
qualified vessels and operates five port terminals in Alaska,
Hawaii and Puerto Rico.  A trusted partner for many of the
nation's leading retailers, manufacturers and U.S. government
agencies, Horizon Lines provides reliable transportation services
that leverage its unique combination of ocean transportation and
inland distribution capabilities to deliver goods that are vital
to the prosperity of the markets it serves.  The company is based
in Charlotte, NC, and its stock trades on the over-the-counter
market under the symbol HRZL.

Horizon Lines reported a net loss of $94.6 million for the year
ended Dec. 21, 2014, compared to a net loss of $31.9 million for
the year ended Dec. 22, 2013.

As of March 22, 2015, the Company had $542 million in total
assets, $711 million in total liabilities, and a $169 million
total stockholders' deficiency.

                           *     *     *

As reported by the TCR on June 8, 2015, Moody's Investors Service
has withdrawn the ratings it had assigned to Horizon Lines, Inc.,
including the Caa2 Corporate Family, the Caa2-PD Probability of
Default and SGL-4 Speculative Grade Liquidity ratings.
The rating withdrawals follow the completion of the previously
announced sale of Horizon to Matson, Inc. (not rated) valued at
$469 million.  Matson repaid all of the outstanding debt of
Horizon concurrently with the closing of the acquisition.

SPANISH BROADCASTING: Board Declares Dividend of $26.875 Apiece
The Board of Directors of Spanish Broadcasting System, Inc.,
declared a cash dividend for the dividend due April 15, 2011, to
the holders of the Company's 10 3/4% Series B Cumulative
Exchangeable Redeemable Preferred Stock of record as of April 1,
2011. The cash dividend of $26.875 per share is payable in cash
on April 15, 2011.

                    About Spanish Broadcasting

Based in Miami, Florida, Spanish Broadcasting System, Inc.
Spanish-language media and entertainment company with radio and/or
television stations in the top U.S. Hispanic markets, including
Puerto Rico.  The Company's owned and operated radio stations
serve markets representing approximately 35% of the U.S. Hispanic
population, and its television operations serve markets
representing over 3.5 million Hispanic households.  The Company
produces and distributes Spanish-language content, including radio
programs, television shows, music and live entertainment through
its radio stations and its television group, MegaTV, which
produces over 70 hours of original programming per week.  MegaTV
broadcasts via its owned and operated stations in South Florida,
Houston, and Puerto Rico and through programming and/or
distribution agreements with other stations, as well as various
cable and satellite providers.

Crowe Horwath LLP, in Fort Lauderdale, Florida, issued a "going
concern" qualification on the consolidated financial statements
for the year ended Dec. 31, 2016, stating that the 12.5% Senior
Secured Notes had a maturity date of April 15, 2017.  Cash from
operations or the sale of assets was not sufficient to repay the
notes and other short term obligations when they became due, which
resulted in significant liquidity requirements on the Company that
raise substantial doubt about its ability to continue as a going

As of Sept. 30, 2017, Spanish Broadcasting had $434.5 million in
total assets, $563.7 million in total liabilities and a total
stockholders' deficit of $129.2 million.  Spanish Broadcasting
reported a net loss of $16.34 million for the year ended Dec. 31,
2016, compared with a net loss of $26.95 million in 2015.

                          *     *     *

In May 2017, S&P Global Ratings withdrew its 'D' corporate credit
rating and issue-level ratings on Spanish Broadcasting System.
"We withdrew the ratings because we were unlikely to raise them
from 'D', based on SBS' ongoing plans to restructure its debt,"
said S&P Global Ratings' credit analyst Scott Zari.  S&P had
downgraded SBS to 'D' on April 21, 2017, following the company's
announcement that it didn't repay its $275 million 12.5% senior
secured notes that were due April 15, 2017, as reported by the TCR
on May 25, 2017.

In April 2017, Moody's Investors Service downgraded SBS's
corporate family rating to 'Ca' from 'Caa2'.  SBS's 'Ca' corporate
family rating reflects an elevated expected loss rate following
the recently announced default under the company's 12.5% senior
secured notes due April 2017.


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, 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 * * *