TCRLA_Public/180529.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

               Tuesday, May 29, 2018, Vol. 19, No. 105


                            Headlines



B R A Z I L

BANCO MERCANTIL: Moody's Reviews Caa1 Deposit Rating for Downgrade
BRAZIL: Reaches New Deal to End Truck Drivers' Strike
CARTA GOIAS: Moody's Cuts CFR to B3, Outlook Stable


C A Y M A N  I S L A N D S

SHACKLETON 2014-V-4 CLO: Moody's Rates Class E Notes 'Ba3'


C O S T A   R I C A

BANCO DE COSTA RICA: Fitch Maintains bb- Viability Rating on RWN


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Debt No Problem as Long as It's Paid


E C U A D O R

ECUADOR: Former VP Pursues Appeal of Corruption Conviction


J A M A I C A

DIGICEL GROUP: Discloses Plans to Cut Debt


M E X I C O

MEXICO: Posts Moderate Trade Deficit in April


P E R U

PERU: Joins Colombia in Andean Antitrust Leniency Fight


P U E R T O    R I C O

BARRANQUITAS ULTRASOUND: U.S. Trustee Can Appoint PCO
DYNAMIC MRI: DOJ Watchdog Can Appoint PCO
KONA GRILL: Regains Compliance with Nasdaq Listing Requirement
WESTERN HOST: Taps De La Rosa Stella as Accountant
WESTERN HOST: Taps Gratacos Law Firm as Legal Counsel


                            - - - - -


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B R A Z I L
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BANCO MERCANTIL: Moody's Reviews Caa1 Deposit Rating for Downgrade
------------------------------------------------------------------
Moody's Investors Service has downgraded Banco Mercantil do Brasil
S.A.'s (Banco Mercantil) long-term national scale deposit rating
to Caa1.br from B3.br. At the same time, Moody's placed all long-
term ratings of Banco Mercantil on review for downgrade. The
ratings placed on review for downgrade include its long term local
and foreign currency deposit ratings of Caa1, its long-term
foreign-currency senior unsecured medium-term note program rating
of (P)Caa1, as well as its long-term foreign currency subordinated
debt rating of Caa2. The long term national scale deposit ratings
of Caa1.br was also placed on review for further downgrade. Banco
Mercantil's baseline credit assessment (BCA) and adjusted BCA of
caa1, along with its long-term counterparty risk assessments of
B3(cr), were also placed on review for downgrade. Banco
Mercantil's short term ratings were unaffected by this action.

The following rating of Banco Mercantil do Brasil S.A. was
downgraded:

  - Long-term Brazilian national scale deposit rating to Caa1.br
from B3.br;

The following ratings and assessments of Banco Mercantil do Brasil
S.A. were placed on review for downgrade:

  - Long term global local-currency deposit rating of Caa1;

  - Long term global foreign-currency deposit rating to Caa1;

  - Long term foreign-currency senior unsecured medium-term note
program of (P)Caa1

  - Long-term foreign currency subordinated debt rating of Caa2;

  - Baseline credit assessment of caa1;

  - Adjusted baseline credit assessment of caa1;

  - Long-term counterparty risk assessment of B3(cr);

RATINGS RATIONALE

The downgrade of Banco Mercantil's national scale deposit rating
as well as the review for downgrade of its debt and deposit
ratings reflect the heightened challenges the bank faces in
generating sustainable profitability and hence internal capital
generation in order to meet the upcoming requirements of Basel III
implementation in January 2019. The rating review will focus on
Banco Mercantil's ability to improve its profitability and
increase its capital, in light of the Central Bank of Brazil's
recent decision not to approve its proposed capital increase.

Banco Mercantil's 1Q2018 results reported still weak asset quality
and profitability trends, despite a slight improvement over 2017
ratios due to lower funding, provisioning and operating costs. Net
income as a percentage of tangible assets was 0.8% in 1Q2018 and
0.5% over the last twelve months to March 2018. In large part,
Banco Mercantil's profits in 2016 and 2017 were derived from sales
of payroll loans to third parties. However, Banco Mercantil's net
profit from loan sales in 1Q2018 was 84% lower than the previous
period a year before and Moody's expects it will remain limited
going forward. In addition, lower interest rates and increasing
competition for payroll loans will put further pressure on Banco
Mercantil's interest income in 2018 and annual operating costs
will improve only marginally at best.

Due to the significant deleveraging Banco Mercantil has
experienced in recent years and a series of capital injections
from its shareholders, the bank's regulatory tier 1 ratio of 8.6%
remains above the current regulatory minimum of 7.875%, including
the capital conservation buffer. However, the regulatory minimum
plus the capital conservation buffer is set to increase to 8.5% by
2019 which will leave the bank with a very small regulatory
cushion given the pressures it faces in generating capital
internally, unless it increases its capital by alternative means.
On May 17, 2018, Banco Mercantil reported that a R$60 million
proposed capital increase was not approved by the Brazilian
Central Bank for documentation reasons.

Banco Mercantil's capitalization as of March 2018, as measured by
Moody's preferred ratio of tangible common equity (TCE) to risk
weighted-assets (RWA), was significantly lower however. The bank's
regulatory capital gives credit to a high volume of deferred tax
assets (DTAs) associated with loan loss provisions, which Moody's
discounts because of uncertainty regarding their loss absorption
capacity.

The bank's asset risk continues to be constrained by delinquencies
in its loans to small and midsized enterprises (SMEs) that remain
vulnerable to a very gradual recovery. Banco Mercantil's SME
delinquencies have averaged 14.3% since 2015 and rose by 240 basis
points in the first quarter of 2018. The quality of the remainder
of Banco Mercantil's loan book, 34% of which consists of unsecured
consumer loans and 48% of payroll loans predominantly to retirees,
has also worsened recently. Consumer delinquencies rose by 50
basis points to 6.8% in the first quarter of 2018 versus December
2017 as the bank's unsecured consumer loans to already indebted
pensioners have seasoned. Consequently, the bank's overall 90 day
delinquency ratio rose to 9.0% as of March 2018, up by 100 basis
points versus December 2017.

In addition, Moody's notes that Banco Mercantil's funding, which
is over 80% deposit based, has been stable yet it is also of short
tenor. However, funding risk is somewhat offset by the bank's
holdings of liquid assets which accounted for 27% of total assets
as of March 2018.

WHAT COULD CHANGE THE RATINGS DOWN

The ratings could be downgraded if Moody's determines that
profitability trends will not likely be sufficient to allow the
bank to meet new capital requirements on a sustainable basis.
Continuing deterioration in asset quality would also pressure
ratings if it leads to rising provisioning costs and lowering
capital generation.

The ratings could be confirmed if Moody's determines that
profitability stabilizes at levels sufficient to enable the bank
to maintain compliance with capital requirements.

The principal methodology used in these ratings was Banks
published in April 2018.


BRAZIL: Reaches New Deal to End Truck Drivers' Strike
-----------------------------------------------------
Luciana Magalhaes at The Wall Street Journal reports that the
Brazilian government reached a new agreement with truck drivers to
end a seven-day strike that left many businesses without vital
supplies and most gas stations in the country without fuel.

The government has agreed to a discount in diesel prices that will
be in place for 60 days and to sign a bill that will allow
truckers not to pay toll on rear axles when not in use, among
other concessions, Brazilian President Michel Temer said during a
televised speech, according to The Wall Street Journal.

This is the second agreement announced by the government in an
attempt to end the strike, the report notes.  Last week, the
government said several truckers' unions had agreed to suspend the
strike, but one of the biggest groups representing drivers, the
Brazilian Association of Truckers (Abcam), rejected the deal, the
report relays.

Brazilian truck drivers began the stoppage on May 21, asking the
government to cut taxes on diesel fuel after a recent spike in
prices, the report discloses.

The government brought in the military to help clear the roads,
but many truckers remained off the job, threatening an already
weak economy, the report says.

Over the weekend, local media reported that armed forces were
escorting fuel trucks to supply some essential services, the
report notes.  But several Brazilian airports are without fuel and
supermarkets are reporting shortage of some fresh products, while
farmers say millions of animals may die in the coming days due to
lack of feed, the report discloses.

As reported in the Troubled Company Reporter-Latin America on
Feb. 28, 2018, Fitch Ratings has downgraded Brazil's Long-Term
Foreign Currency Issuer Default Rating (IDR) to 'BB-' from 'BB'
and revised the Rating Outlook to Stable from Negative.



CARTA GOIAS: Moody's Cuts CFR to B3, Outlook Stable
---------------------------------------------------
Moody's America Latina has downgraded Carta Goias Industria e
Comercio de Papeis S.A. ("Carta Goias")'s corporate family rating
to B3 from B2 (global scale) and to B1.br from Ba1.br (national
scale). The outlook for the ratings is stable.

Ratings downgraded:

Issuer: Carta Goias Industria e Comercio de Papeis S.A.

  - Corporate Family Rating: B3 (from B2) in the global scale and
B1.br (from Ba1.br) in the national scale

The outlook for the ratings is stable.

RATINGS RATIONALE

The downgrade to B3/B1.br reflects Moody's expectation that,
despite an expected recovery in operating performance supported by
the ongoing investments, Carta Goias' liquidity remains tight,
which leads to increasingly reliance on new debt instruments or
refinancing of existing debt. Accordingly, Carta Goias had BRL 53
million in cash balance at the end of December 2017, with about
BRL224 million in debt maturing until the end of 2019 (based on
December 2017 financials).

Carta Goias has been able to secure adequate funding for its
working capital needs, capital expenditures and refinance its debt
in the past few years. However, liquidity risk has increased in
2017 as the company embarked in a large capital expenditure
program, which has increased its total debt to BRL414 million at
the end of 2017, from BRL277 million at the end of 2016, and this
risk is exacerbated by the challenging operating environment of
the company, and the impacts of exchange rate volatility, higher
costs (pulp prices increase by over 40% in the past 18 months) and
still incipient recovery in consumption. Moody's acknowledges the
benefits that these investments will bring to the company by
allowing it to enhance its scale and expand in higher-margin
segments, such as wet wipes, pads and diapers.

In addition to the liquidity risk, constraining the ratings is
Carta Goias small size in Brazil's tissue and personal hygiene
market, with revenues of about USD232 million in 2017, relatively
weak market share in its main products, although Moody's
acknowledges that Carta Goias has expanded its market share in the
Brazilian market of tissue in 2017, including diapers, and limited
client and geographic diversification, since the company operates
only in Brazil.

Carta Goias' ratings continue to reflect the company's adequate
credit metrics and track record of relatively stable margins, even
during Brazil's recent economic recession. Its EBITDA margins have
remained relatively stable between 15%-20% in the past three
years, and adjusted leverage, measured by total adjusted debt to
EBITDA, in the 2x-4x range in the same period. Although the
ratings incorporate the execution risk for expansion projects that
Carta Goias will continue to carry out in the next couple of
years, Moody's expects that these projects, if successfully
executed, will bring a substantial increase in scale and allow the
company to expand its market presence and enhance margins.

The stable outlook reflects Moody's expectations that Carta Goias
will improve its cash flow from operations during 2018 with the
ramp up of the recently-concluded investments, expanding its
profitability and market presence overtime.

The ratings could be upgraded if Carta Goias' liquidity profile
improves, with higher coverage of cash to debt and lower
concentration of debt in the short term. A rating upgrade would
also require greater visibility over the company's financial
policies and corporate governance. Quantitatively, the ratings
could be upgraded if Carta Goias is able to improve its cash flow
generation, with adjusted retained cash flow- capex over debt
(RCF-capex/debt) of at least 2% (-32.5% at the end of 2017). At
the same time, Moody's expects that Carta Goias will improve cash
flow generation while carrying out its expansion projects, which
will allow the company to reduce leverage.

The ratings could be downgraded if Carta Goias' liquidity profile
deteriorates or if its capital structure weakens, with adjusted
Debt to Ebitda above 6.x (3.7 x at the end of 2017) and interest
coverage (measured by adjusted EBITDA to interest expense)
declines to 1.5x or lower during the execution of its expansion
program. Performance falling below Moody's expectations, indicated
by retained cash flow - capex to debt below 1% (-32.5% at the end
of 2017), could also lead to negative rating actions.

The principal methodology used in these ratings was Paper and
Forest Products Industry published in March 2018.

Headquartered in Niteroi, in the State of Rio de Janeiro, Carta
Goias is a Brazilian privately-owned company operating in the
tissue and personal hygiene segments since 1990. Fluminense
Industrial is the controlling shareholder of Carta Fabril SA (100%
of shares). Carta Fabril holds 97.7% of Carta Goias. Carta Goias
reported revenues of USD 232 million in FY 2017.



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C A Y M A N  I S L A N D S
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SHACKLETON 2014-V-4 CLO: Moody's Rates Class E Notes 'Ba3'
----------------------------------------------------------
Moody's Investors Service has assigned ratings to seven classes of
notes issued by Shackleton 2014-V-R CLO, Ltd.:

U.S.$2,000,000 Class X Senior Floating Rate Notes Due 2031 (the
"Class X Notes"), Assigned Aaa (sf)

U.S.$385,000,000 Class A Senior Floating Rate Notes Due 2031 (the
"Class A Notes"), Assigned Aaa (sf)

U.S.$65,500,000 Class B Senior Floating Rate Notes Due 2031 (the
"Class B Notes"), Assigned Aa2 (sf)

U.S.$29,750,000 Class C Mezzanine Deferrable Floating Rate Notes
Due 2031 (the "Class C Notes"), Assigned A2 (sf)

U.S.$33,500,000 Class D Mezzanine Deferrable Floating Rate Notes
Due 2031 (the "Class D Notes"), Assigned Baa3 (sf)

U.S.$31,250,000 Class E Junior Deferrable Floating Rate Notes Due
2031 (the "Class E Notes"), Assigned Ba3 (sf)

U.S.$9,500,000 Class F Junior Deferrable Floating Rate Notes Due
2031 (the "Class F Notes"), Assigned B3 (sf)

The Class X Notes, the Class A Notes, the Class B Notes, the Class
C Notes, the Class D Notes, the Class E Notes and the Class F
Notes are referred to herein, together, as the "Rated Notes."

RATINGS RATIONALE

Moody's ratings of the Rated Notes address the expected losses
posed to noteholders. The ratings reflect the risks due to
defaults on the underlying portfolio of assets, the transaction's
legal structure, and the characteristics of the underlying assets.

Shackleton 2014-V-R is a managed cash flow CLO. The issued notes
will be collateralized primarily by broadly syndicated senior
secured corporate loans. At least 90% of the portfolio must
consist of first lien senior secured loans, cash, and eligible
investments, and up to 10% of the portfolio may consist of second
lien loans, senior unsecured loans and first-lien last-out loans.
The portfolio is approximately 92% ramped as of the closing date.

Alcentra NY, LLC will direct the selection, acquisition and
disposition of the assets on behalf of the Issuer and may engage
in trading activity, including discretionary trading, during the
transaction's five year reinvestment period. Thereafter, the
Manager may reinvest unscheduled principal payments and proceeds
from sales of credit risk assets, subject to certain restrictions.

In addition to the Rated Notes, the Issuer has issued subordinated
notes.

The transaction incorporates interest and par coverage tests
which, if triggered, divert interest and principal proceeds to pay
down the notes in order of seniority.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in August 2017.

Factors that would lead to an upgrade or downgrade of the ratings:

The performance of the Rated Notes is subject to uncertainty. The
performance of the Rated Notes is sensitive to the performance of
the underlying portfolio, which in turn depends on economic and
credit conditions that may change. The Manager's investment
decisions and management of the transaction will also affect the
performance of the Rated Notes.

Loss and Cash Flow Analysis:

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3.2.1
of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in August 2017.

For modeling purposes, Moody's used the following base-case
assumptions:

Par amount: $592,678,000

Diversity Score: 73

Weighted Average Rating Factor (WARF): 2840

Weighted Average Spread (WAS): 3.15%

Weighted Average Recovery Rate (WARR): 48%

Weighted Average Life (WAL): 9 years

Stress Scenarios:

Together with the set of modeling assumptions above, Moody's
conducted an additional sensitivity analysis, which was a
component in determining the ratings assigned to the Rated Notes.
This sensitivity analysis includes increased default probability
relative to the base case.

Below is a summary of the impact of an increase in default
probability (expressed in terms of WARF level) on the Rated Notes
(shown in terms of the number of notch difference versus the
current model output, whereby a negative difference corresponds to
higher expected losses), assuming that all other factors are held
equal:

Percentage Change in WARF -- increase of 15% (from 2840 to 3266)

Rating Impact in Rating Notches

Class X Notes: 0

Class A Notes: -1

Class B Notes: -2

Class C Notes: -2

Class D Notes: -1

Class E Notes: -1

Class F Notes: -3

Percentage Change in WARF -- increase of 30% (from 2840 to 3692)

Rating Impact in Rating Notches

Class X Notes: 0

Class A Notes: -1

Class B Notes: -4

Class C Notes: -4

Class D Notes: -2

Class E Notes: -1

Class F Notes: -5



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C O S T A   R I C A
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BANCO DE COSTA RICA: Fitch Maintains bb- Viability Rating on RWN
----------------------------------------------------------------
Fitch Ratings has maintained Banco de Costa Rica's (BCR) 'bb-'
Viability Rating (VR) on Rating Watch Negative (RWN). Fitch has
also affirmed the bank's national ratings in Costa Rica.

The maintenance of the Negative Watch is due to Fitch's belief
that the challenges posed by corporate governance events and risk
control failures that occurred in 2017 continue to pressure the
bank's performance. Visibility regarding the conclusion of the
investigation is limited; however, the maintenance of a stable
funding profile and evidence of management stability are relevant
for the resolution of the RWN. In turn, in the event that BCR's
financial performance weakens, its VR could be downgraded further.

KEY RATING DRIVERS

VR

On Oct. 19, 2017 Fitch downgraded BCR's VR to 'bb-' from 'bb' and
placed it on RWN to reflect a reassessment of the bank's
management and risk appetite, after a group of senior managers and
members of the board of directors were imprisoned for peculation
charges related to the approval of a troubled loan. In Fitch's
view, the weaknesses in the bank's governance framework have
tested the quality of its risk controls and challenged execution
of its strategy. Since then, interim directors and managers have
been appointed and BCR has operated normally while sustaining
deposit stability. However, appointments are temporary and
investigations are still ongoing.

Upside potential for BCR's VR is limited. In Fitch's view, the
losses resulting from the troubled loan and the risk control
failures that occurred in 2017 have affected the bank's core
metrics to a level that is consistent with its current rating
level. As of December 2017, profitability decreased as a result of
higher credit costs. Fitch expects profitability metrics to
recover their historic trend in the medium term; however,
increases in profitability may be delayed as a result of the low
economic and credit growth rates.

BCR has also announced a potential merger with the state owned
bank Banco Credito Agricola de Cartago. The terms and conditions
for the merger have not been finalized and will be included in
legislation that requires congressional approval to allow the
banks to merge. Once the details of the transaction are disclosed,
the agency will evaluate the effect, if any, on the ratings of
Banco de Costa Rica.

Asset quality has weakened as a result of the deterioration of
large credits and reserves coverage for past due loans have
decreased. As of march 2018, the impaired loans ratio increased to
2.61% and reserves coverage for past due loans decreased to 60%,
comparing below similarly rated peers'.

Funding and liquidity are generally stable and does not show a
material impact from the 2017 events, favoured by the explicit
sovereign guarantee for all the bank's obligations. However, in
the Fitch's view, this aspect of the bank's financial profile
remains most sensitive to the impact of any negative outcome in
the ongoing investigation.

Favourably, BCR's Fitch Core Capital ratio maintains a positive
trend, increasing to 13.02% as of March 2018 as a result low
assets growth and full profits retention.

NATIONAL RATINGS

The national ratings in Costa Rica are driven by the potential
support of the Costa Rican government (BB/Negative). As stated in
the National Banking System Law, all senior liabilities of the
Costa Rican state-owned banks' have the guarantee of the state and
the government is required to collaborate with the entity.

RATING SENSITIVITIES

VR

The VR could be downgraded due to a material weakening of the
bank's credit fundamentals related to additional developments from
the corporate governance events. Specifically, material weakening
of the bank's profitability, in terms of a ratio of operating
profits to risk weighted assets consistently below 1.25% could
result in a downgrade of its VR, but this is not Fitch's baseline
scenario.

BCR's VR could be affirmed and removed from Negative Watch if the
bank continues to maintain a stable financial profile and
demonstrates stability in management through the board of
directors' transition period and the ongoing investigation process
of bank officers and directors.

NATIONAL RATINGS

The national ratings of BCR are subject to changes in the capacity
of the sovereign to support the bank. Changes in the sovereign
rating will not necessarily affect BCR's national ratings, as
these reflect the relative strength of the sovereign compared to
other issuers rated in Costa Rica.

The maintains the following on Rating Watch Negative

Banco de Costa Rica

  --Viability Rating 'bb-'.

Fitch has affirmed the following:

  --Long-term National Rating at 'AA+(cri)'; Outlook Stable;

  --Short-term National Rating at 'F1+(cri)';

  --Programa de Emisiones de Bonos Estandarizados del Banco de
Costa Rica 2012 at 'AA+(cri)';

  --Programa de Emisiones de Bonos Estandarizados Dolares-BCR 2016
at 'AA+(cri)';

  --Programa de Emisiones de Bonos Estandarizados Colones-BCR 2016
at 'AA+(cri)';

  --Programa de Emisiones de Papel Comercial Dolares-BCR 2016 at
'F1+(cri)';

  --Programa de Emisiones de Papel Comercial Colones-BCR 2016 at
'F1+(cri)'.


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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Debt No Problem as Long as It's Paid
--------------------------------------------------------
Dominican Today reports that the UN Development Program (UNDP)
local representative, Lorenzo Jimenez, said indebtedness isn't a
problem for countries as long as they show their ability to pay.

He said that in Dominican Republic's case, "it is evident that its
economy is sufficiently solvent and that nobody should doubt it,"
according to Dominican Today.

"I would say that debt is not a problem as long as it can be paid,
that's where the key is, there is not a single country in the
world that is not in debt, the problem is whether it can be paid
or not and it seems that no one in their right mind today would
question Dominican Republic's financial solvency," UNDP official
said, the report notes.

                          Central Bank

In that regard, Central banker Hector Valdez Albizu said official
data show that the public sector consolidated debt represented
54.97% of GDP to February, the report relays.

Various political and economic sectors have expressed concern over
the country's debt level and warn of a possible crisis as a
result, the report adds.

As reported in the Troubled Company Reporter-Latin America on
April 23, 2018, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term sovereign credit ratings on the Dominican Republic.
The outlook remains stable.



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E C U A D O R
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ECUADOR: Former VP Pursues Appeal of Corruption Conviction
----------------------------------------------------------
Alianza News reports that an Ecuadorian former vice president
appeared before the National Court of Justice in a bid to have his
six-year prison sentence for corruption overturned.

Before entering the courthouse, Jorge Glas greeted dozens of
supporters of leftist ex-head of state Rafael Correa, who had
urged people via Twitter to gather outside the building and show
their support for a "political prisoner" and "innocent man,"
according to Alianza News.

The report notes that the National Court's criminal chamber found
Mr. Glas guilty last December of receiving bribes totaling $13.5
million from Odebrecht in return for helping the Brazilian
engineering giant secure five construction contracts between 2012
and 2016.

But former Foreign Minister Ricardo Patino and lawmaker Sofia
Espin testified at the hearing that Mr. Glas -- the ex-right hand
man of Mr. Correa, Ecuador's president from 2007 to 2017 -- was
innocent of the charges and the victim of political and media
persecution, the report notes.

The report relays that Mr. Glas was placed in pre-trial detention
on Oct. 2 as part of the corruption probe and was constitutionally
stripped of his position as vice president in early January after
being absent from his post for more than three months.

After serving as Correa's vice president from May 2013 until the
latter left office four years later, Mr. Glas continued to be the
country's No. 2 official under current President Lenin Moreno, the
report relays.

President Moreno also once served as Correa's vice president and
was the latter's hand-picked successor, the report notes.

But President Moreno, who was elected in February 2017 and took
office three months later, distanced himself from Correa in July
of last year, saying the country had greater equality but that he
had inherited a "critical" financial situation due to high levels
of public debt, the report discloses.

President Moreno then stripped Mr. Glas of his official duties
last August after the latter accused the president of having
provided false economic data aimed at tarnishing the legacy of
Mr. Correa's Citizens' Revolution, the report relays.

Mr. Correa has been living in his wife's homeland of Belgium since
leaving office, the report notes.

In a settlement in late 2016 with authorities in the United
States, Brazil and Switzerland, Odebrecht and petrochemical unit
Braskem pleaded guilty and agreed to pay at least $3.5 billion to
resolve charges arising out of bid-rigging schemes that began as
early as 2001 and involved the payment of hundreds of millions of
dollars in bribes to officials in more than a dozen countries, the
report recalls.

As reported in the Troubled Company Reporter-Latin America on
Jan. 24, 2018, Fitch Ratings has assigned a 'B' rating to
Ecuador's USD3 billion notes maturing Jan. 23, 2028. The notes
have a coupon of 7.875%.


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J A M A I C A
=============


DIGICEL GROUP: Discloses Plans to Cut Debt
------------------------------------------
RJR News reports that it's being reported that the Digicel Group
has told bondholders of its plans to cut debt through a mixture of
earnings growth and so-called inorganic measures.

According to the sources, quoted by the Irish Times newspaper,
Digicel aims to reduce borrowings to about 5.7 times earnings in
the fiscal year 2019 from around 6.7 times in the preceding year,
the report notes.

Capital expenditure will be reduced to between US$330 million and
US$350 million, a drop of about 30 per cent, according to RJR
News.

The company is meeting investors in a so-called "non-deal
roadshow" as the yield on its 2020 bonds rises as high as 20 per
cent, more than doubling in the last three months, the report
says.

Digicel told bondholders that it's on track to meet its earnings
guidance of just over US$1-billion this fiscal year, the report
adds.

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


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


MEXICO: Posts Moderate Trade Deficit in April
---------------------------------------------
Anthony Harrup at The Wall Street Journal reports that Mexico ran
up a moderate $289 million trade deficit in April as both imports
and exports posted double-digit growth from a year earlier,
unfazed by negotiations to redraw a pact with the country's main
trading partner.

Exports expanded 17% from April of 2017 to $37.2 billion,
including a 54% jump in oil exports and a 15% rise in shipments of
factory-made goods, the National Statistics Institute said,
according to The Wall Street Journal.

Imports rose 21% to $37.5 billion, with Mexico bringing in more
petroleum products, equipment and machinery, and producer goods
such as components for manufacturing, the agency said, the report
notes.

The increases in imports and exports from a year before were
positively affected by the shift in the Easter holiday week to
March this year, which meant April had more working days than in
2017, the report relays.

The country's overall trade continues expanding from last year's
record $829 billion, unaffected by occasionally contentious talks
between Mexico, the U.S. and Canada to rewrite the North American
Free Trade Agreement, the report says.

The WSJ notes that exports in the first four months of 2018 rose
12.6% to $142.4 billion and imports were up 12.6% at $144.5
billion.

"The existing Nafta is still working, our exports are growing. Of
course there's uncertainty, which is what we want to combat,"
Economy Minister Ildefonso Guajardo told the Televisa network, the
report relays.

Mr. Guajardo said he thinks there is a 40% chance an agreement can
be reached before Mexico's presidential election on July 1, and an
80% chance of getting a deal done before the U.S. midterm
elections in November, the report discloses.

Nafta negotiations have recently been bogged down over rules of
origin in the auto sector and U.S. demands such as a so-called
sunset clause that would allow the pact to expire after five years
unless explicitly renewed and the elimination of certain
mechanisms for settling disputes, the report notes.

The report discloses that vehicles and auto parts, which account
for a third of Mexico's manufacturing exports, are at the center
of the Nafta negotiations where the U.S. is demanding greater
regional and U.S. content.

Energy trade is less controversial for the U.S., as Mexico imports
most of its gasoline and natural gas from its northern neighbor,
the report relays.  Mexico ran up a $6.5 billion petroleum trade
deficit in the January-April period, partly offset by a $4.4
billion surplus in non-petroleum trade, the report adds.


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


PERU: Joins Colombia in Andean Antitrust Leniency Fight
-------------------------------------------------------
Latin Lawyer reports that Peru's competition authority has joined
Colombia's in opposing two Andean regional bodies that may punish
companies that had been granted leniency in those bodies' member
countries.



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


BARRANQUITAS ULTRASOUND: U.S. Trustee Can Appoint PCO
-----------------------------------------------------
The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the
District of Puerto Rico has directed the U.S. Trustee appoint a
patient care ombudsman in the case of Barranquitas Ultrasound and
Mammography Center, Inc. or inform the Court in writing why the
appointment of an ombudsman is not necessary for the protection of
the patients.

              About Barranquitas Ultrasound and
                   Mammography Center, Inc.

Barranquitas Ultrasound and Mammography Center, Inc., filed a
Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 18-02225)
on
April 25, 2018. In the petition signed by its president Miriam
Alicea Aponte, the Debtor estimated assets and liabilities of less
than $500,000 each. The Debtor hired Carmen D. Conde Torres, Esq.,
at C. Conde & Assoc.


DYNAMIC MRI: DOJ Watchdog Can Appoint PCO
-----------------------------------------
The Hon. Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court
for the District of Puerto Rico has directed the U.S. Trustee to
appoint a patient care ombudsman in the case of Dynamic MRI & 3D
CT CSP or inform the Court in writing why the appointment of an
ombudsman is not necessary for the protection of the patients.

                   About Dynamic MRI & 3D CT CSP

Dynamic MRI & 3D CT CSP sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. P.R. Case No. 18-02525) on May 7, 2018.
In the petition signed by its president, Manuel R. Prats, the
Debtor estimated assets of less than $1 million and liabilities of
less than $1 million.  Judge Enrique S. Lamoutte Inclan presides
over the case. The Debtor is represented by Carmen D. Conde
Torres, Esq. of C. Conde & Associates.


KONA GRILL: Regains Compliance with Nasdaq Listing Requirement
--------------------------------------------------------------
Kona Grill, Inc., received a letter from The Nasdaq Stock Market
on May 21, 2018, stating that for the last 10 consecutive trading
days, from May 7 to 18, 2018, the Company's minimum market value
of publicly held shares has been $15,000,0000 or greater.

On May 3, 2018, Kona Grill received a deficiency notice from
Nasdaq for failure to meet Nasdaq's $15,000,000 minimum market
value of publicly held shares continued listing standard, as
required by Nasdaq Listing Rule 5450(b)(2)(C).  As provided in the
Nasdaq rules, the Company has 180 calendar days, or until Oct. 30,
2018, to regain compliance with the continued listing standard.

The Company has regained compliance with the Rule and the matter
is now closed.

                       About Kona Grill

Kona Grill, Inc., headquartered in Scottsdale, Arizona, Kona
Grill, Inc. -- http://www.konagrill.com/-- currently owns and
operates 46 restaurants in 23 states and Puerto Rico.  The
Company's restaurants offer freshly prepared food, attentive
service, and an upscale contemporary ambiance.  Additionally, Kona
Grill has three restaurants that operate under a franchise
agreement in Dubai, United Arab Emirates; Vaughan, Canada and
Monterrey, Mexico.

Kona Grill incurred a net loss of $23.43 million in 2017 and a net
loss of $21.62 million in 2016.  As of March 31, 2018, Kona Grill
had $87.01 million in total assets, $83.84 million in total
liabilities and $3.16 million in total stockholders' equity.

The Company has incurred losses resulting in an accumulated
deficit of $79.7 million, has a net working capital deficit of
$7.6 million and outstanding debt of $37.8 million as of Dec. 31,
2017.  The Company said in its 2017 Annual Report that these
conditions together with recent debt covenant violations and
subsequent debt covenant waivers and debt amendments, raise
substantial doubt about its ability to continue as a going
concern.


WESTERN HOST: Taps De La Rosa Stella as Accountant
--------------------------------------------------
Western Host Associates, Inc., seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire De La
Rosa Stella LLC as its accountant.

The firm will review the financial situation of the Debtor and
current circumstances to develop a reorganization strategy; assist
in the formulation of a plan of reorganization; prepare cash flow
projections of the Debtor under the proposed plan; review monthly
and quarterly operation reports; assist the Debtor's legal
counsel; and provide other accounting services.

The firm will charge these hourly rates:

     Marie Olga De La Rosa Stella     $200
     Certified Public Accountant      $150
     MBA in Accounting or Taxes       $125
     Senior Accountant                 $75
     Technical Support                 $75

Marie Olga De La Rosa, president of De La Rosa Stella LLC,
disclosed in a court filing that she is a "disinterested person"
as defined in section 101(14) of the Bankruptcy Code.

The firm can be reached through:

     Marie Olga De La Rosa
     De La Rosa Stella LLC
     P.O. Box 625
     Caguas, PR 00726
     Tel: 939-262-3367
     Fax: 787-453-5365
     Email: delarosacpa@gmail.com
     Email: delarosacpallc@gmail.com

                About Western Host Associates Inc.

Western Host Associates, Inc., owns a four-story commercial hotel
building located at 202 San Jose Street, Old San Juan, Puerto
Rico.

The hotel is currently non-operational and is valued by the
company at $1.35 million.  The company previously sought
bankruptcy protection on Nov. 14, 2012 (Bankr. D.P.R. Case No. 12-
09093) and on May 19, 2011 (Bankr. D.P.R. Case No. 11-04152).

Western Host Associates sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-02696) on May 15, 2018.
In the petition signed by Luis Alvarez, president, the Debtor
disclosed $1.36 million in assets and $4.82 million in
liabilities.  Judge Brian K. Tester presides over the case.


WESTERN HOST: Taps Gratacos Law Firm as Legal Counsel
-----------------------------------------------------
Western Host Associates Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire Gratacos
Law Firm, PSC as its legal counsel.

The firm will advise the Debtor regarding its duties under the
Bankruptcy Code; negotiate with creditors to prepare a plan of
reorganization or arrange an orderly liquidation of its assets;
and provide other legal services related to its Chapter 11 case.

Gratacos received $1,283 as payment for attorney's fees and $1,717
for the filing fees.

Victor Gratacos Diaz, Esq., at Gratacos, disclosed in a court
filing that his firm is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code.

The firm can be reached through:

     Victor Gratacos Diaz, Esq.
     Gratacos Law Firm, PSC
     P.O. Box 7571
     Caguas, PR 00726
     Phone: (787) 746-4772
     Fax: (787) 746-3633
     Email: bankruptcy@gratacoslaw.com

                 About Western Host Associates

Western Host Associates, Inc., owns a four-story commercial hotel
building located at 202 San Jose Street, Old San Juan, Puerto
Rico.

The hotel is currently non-operational and is valued by the
company at $1.35 million.  The company previously sought
bankruptcy protection on Nov. 14, 2012 (Bankr. D.P.R. Case No. 12-
09093) and on May 19, 2011 (Bankr. D.P.R. Case No. 11-04152).

Western Host Associates sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-02696) on May 15, 2018.
In the petition signed by Luis Alvarez, president, the Debtor
disclosed $1.36 million in assets and $4.82 million in
liabilities.  Judge Brian K. Tester presides over the case.


                            ***********


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

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

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


                            ***********


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

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

Copyright 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.
.


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