TCRLA_Public/180921.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Friday, September 21, 2018, Vol. 19, No. 188


                            Headlines



B O L I V I A

BOLIVIA: Sugar Industry Awaiting Enactment of Biofuels Law


B R A Z I L

OI SA: Shareholders Approve New Board, Capital Raise


D O M I N I C A N   R E P U B L I C

EMPRESA DE TELECOM: Moody's Affirms Ba3 CFR; Outlook Now Stable
EMPRESA GENERADORA: Fitch Affirms BB- IDR, Outlook Stable
DOMINICAN REPUBLIC: Dollar 'Stable' but Peso Slides Toward 50-to-1


M E X I C O

MEXICO: Incoming Economy Sec'y Reaches Out to Private Sector


P U E R T O    R I C O

INSTITUCION AMOR: Plan and Disclosures Hearing Set for Oct. 5
POPULAR INC: Fitch Assigns BB- Rating to $300MM Sr. Unsec. Notes
PUERTO RICO: Bond Restructuring Approved in Initial Vote Tally


T R I N I D A D  &  T O B A G O

CARIBBEAN AIR: Discontinues Montego Bay-Fort Lauderdale Flights


U R U G U A Y

BANQUE HERITAGE: S&P Alters 'B+' GS Rating Outlook to Stable


                            - - - - -


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B O L I V I A
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BOLIVIA: Sugar Industry Awaiting Enactment of Biofuels Law
----------------------------------------------------------
EFE News reports that one of Bolivia's largest sugar refining
mills is awaiting the enactment of a law promoting mass domestic
production of bioethanol, a biofuel product that will serve as a
substitute for imported gasoline and diesel additives.

Mariano Aguilera, the chairman of the board of the Guabira sugar
refining mill, said in a press conference that he was pleased that
the Senate had passed the bill for the production, sale and
blending of vegetable-derived additives, according to EFE News.

The report notes that Mr. Aguilera said he was confident Bolivian
President Evo Morales would sign it into law in the coming days so
that the mill can immediately enter into contracts with state
energy company YPFB and start distributing bioethanol and so
domestic consumers can begin using fuels with the new blend.

YPFB has called on domestic sugar mills to produce some 80 million
liters of bioethanol in the first year, Mr. Aguilera said, adding
that that volume could increase steadily in subsequent years, the
report relays.

He said that revenue would be very welcome for a sugarcane sector
that has been hard hit early in 2018 by heavy rains and later by
drought and cold, the report says.

Numerous public and private stakeholders converge in this project,
since the government will stop importing gasoline and diesel
additives and producers also will be incentivized "with a good
price," the report quoted Mr. Aguilera as saying.

"Everyone wins, and the Bolivian people win because they'll
consume a better quality gasoline with a higher octane rating than
what we have now and not environmentally polluting," he said,
adding that the law will create thousands of jobs and allow the
country to save billions of dollars in the coming years, the
report notes.

Located in Montero, a town in the eastern Bolivian province of
Santa Cruz, Guabira is made up of 1,670 shareholders (sugar cane
entrepreneurs), 1,400 industrial workers and more than 1,526 cane
growers, the report relays.

The report notes that Mr. Aguilera confirmed that the mill plans
to invest $40 million over the next two years to take on the
"great challenge" of bioethanol production.

The mill has already produced more than 6 million liters of
ethanol that is in its warehouses and ready to be delivered to
YPFB when required, he said, the report adds.

As reported in the Troubled Company Reporter-Latin America on
July 5, 2018, Fitch Ratings has affirmed Bolivia's Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'BB-' with a
Stable Outlook.


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B R A Z I L
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OI SA: Shareholders Approve New Board, Capital Raise
----------------------------------------------------
Shareholders in Oi, Brazil's largest fixed-line telecom firm,
approved a slate of new board members and a 4 billion real ($964
million) capital raise seen as key to the firm's restructuring
process.

The shareholders approved Eleazar de Carvalho to serve as new
board chairman at the meeting, an important step in sorting out
the reorganized firm's governance and formalizing the capital
increase.

Creditors in Oi approved a plan in December to swap much of their
debt for equity. The telecoms firm filed for bankruptcy protection
in 2016 after buckling under 65 billion reais of debt.

As reported in the Troubled Company Reporter-Latin America on
Sept. 10, 2018, S&P Global Ratings assigned its 'B' issue-level
rating to Oi S.A.'s (global scale: B/Stable/--; national scale:
brA/Stable/--) existing $1.6 billion senior unsecured notes due
2025. S&P also assigned a '4' recovery rating to the notes, which
indicates average recovery expectation of 30%-50% (rounded
estimate 40%) in the event of payment default.

The notes, which Oi issued on July 27, 2018, were part of the
company's reorganization plan. Oi issued the notes to exchange
part of its obligations that were in default. The issue-level
rating on the notes is the same as the global scale issuer credit
rating, given that debt is senior unsecured with around a 40%
recovery expectation.


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


EMPRESA DE TELECOM: Moody's Affirms Ba3 CFR; Outlook Now Stable
---------------------------------------------------------------
Moody's Investors Service changed the outlook on Empresa de
Telecom de Bogota S.A. ESP to stable from negative. At the same
time, Moody's affirmed the company's Ba3 corporate family rating
and the Ba3 rating on its COP 530 billion senior unsecured notes
due 2023. ETB's baseline credit assessment of b1 is unchanged.

RATINGS RATIONALE

The stabilization of the outlook reflects the recovery in ETB's
operating performance and liquidity profile in the past couple of
years. ETB's sales have remained flat in the past several years as
the development of new businesses (pay TV, mobile) offset the
secular decline in fixed telephony, the traditional business of
ETB. However, the implementation of cost efficiencies resulted in
recent improvements in the company's profitability. In addition,
after several years of large capital spending, ETB reduced its
investments in 2016-17, which resulted in a lower cash burn and a
return to an adequate liquidity profile.

ETB's b1 BCA continues to incorporate the company's leading fixed
line and broadband market positions in Bogota, its progress in
gaining market shares in new business segments, and its
comfortable debt maturity profile. Simultaneously, it also
continues to reflect ETB's small scale and geographic
concentration compared to its main competitors which are larger,
more diversified and better capitalized operators. Moody's still
sees high competitive pressures in the telecommunications sector
in Colombia, and ETB has more limited capacity to invest compared
to peers, which could affect its ability to grow.

ETB's Ba3 rating reflects its status as a government-related
issuer (GRI) and is based upon the following inputs: (i) the
company's BCA of b1, which represents Moody's opinion of the GRI's
standalone intrinsic strength; (ii) the Baa2 rating of the
supporting entity, the Capital District of Bogota; (iii) its
estimate of a very high dependence between ETB and the Capital
District of Bogota; and (iv) its estimate of a moderate likelihood
of extraordinary support from the Capital District of Bogota.
These inputs provide a one-notch uplift to ETB's BCA.

The Capital District of Bogota (Bogota, Distrito Capital
(Colombia), Baa2 negative), ETB's majority shareholder, intends to
sell its stake in the company. It launched a sale process, which
was nevertheless halted in May 2017 as part of a legal procedure
launched by some of ETB's syndicates, with no clear date for a
resolution.

ETB was able to materially reduce its cash burn during the course
of 2017. At the end of June 2018, ETB's cash balance amounted to
COP 291 billion and short-term debt was very small at COP 10
billion at the level of a subsidiary. The stabilization of the
company's EBITDA and reduction in capital spending enabled it to
substantially reduce negative free cash flow and get close to
breakeven in 2017. ETB does not have any committed revolving
facility at its disposal, but at the same time does not have any
large debt maturities in the next few years. The company's debt
essentially comprises a COP 530 billion bond maturing in 2023.

The ratings could be upgraded, if ETB is able to weather
competitive pressures, return to revenue growth, and continue to
increase market shares in its new business segments. Specifically,
an upgrade could be considered if adjusted EBITDA margins are
maintained above 30% and free cash flow to adjusted gross debt
improves to above 6%, on a sustainable basis. In order to consider
a positive rating action, Moody's would also need to ascertain
strong shareholder support and the maintenance of an adequate
liquidity profile.

The ratings could be downgraded if ETB's liquidity deteriorates
and the company's cash balance declines again for a prolonged
period of time. Quantitatively, a downgrade would also be
considered if EBITDA margins approach 20% or leverage (adjusted
gross debt / EBITDA) increases above 4.0x, on a sustainable basis.

The methodologies used in these ratings were Telecommunications
Service Providers published in January 2017, and Government-
Related Issuers published in June 2018.

ETB is an incumbent telecommunications service provider offering
fixed and mobile, broadband and pay TV services to Colombia's
capital and surrounding areas. The company has leading fixed line
and broadband market positions in Bogota and, since 2014, has
expanded into the mobile and pay TV sectors. In the 12 months to
June 2018, ETB's revenues reached approximately COP 1,500 billion
(around USD 500 million). The Capital District of Bogota is ETB's
controlling shareholder with 86% of the company's capital stock.
Approximately 12% of the shares are free float, publically traded
on the Colombian stock exchange.


EMPRESA GENERADORA: Fitch Affirms BB- IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed the Long-Term, Foreign- and Local-
Currency Issuer Default Ratings (IDRs) of Empresa Generadora de
Electricidad Itabo S.A. (Itabo) at 'BB-'. The Rating Outlook is
Stable. Additionally, Fitch, has also placed the 'BB-' senior
unsecured notes rating on Rating Watch Negative.

Itabo's IDRs reflect the electricity sector's high dependency on
transfers from the central government to service its financial
obligations, a condition that links the credit quality of the
distribution companies (EDEs) and generation companies to that of
the sovereign. Low collections from end-users, high electricity
losses and subsidies have undermined distribution companies' cash
generation capacity, exacerbating generation companies' dependence
on public funds to cover the gap produced by insufficient payments
received from distribution companies. Itabo's ratings also
consider its low cost generation portfolio, strong balance sheet
and well-structured PPAs, which contribute to strong cash flow
generation and bolster liquidity.

The Negative Rating Watch on the notes reflects the uncertainty
surrounding the near-term financial impacts of a lightning strike
that disabled AES Andres B.V.'s (BB-/Rating Watch Negative)
generation units on Sept. 3, 2018. Itabo's 2026 notes were issued
attached to the AES Andres/Dominican Power Partners (Andres/DPP)
issuance, although there exist no cross-guarantees or cross-
default clauses between the Itabo notes and the Andres/DPP notes.
The attached 2026 issuances consider several detachment events, at
which point the risk profiles of the two issuances would be
assessed separately. Until that time, however, the ratings are
linked. AES Andres maintains insurance for both business
interruption and for property damages. However, until the
technical assessment of the damage is complete, the related costs
and the duration of the plant outage will be unclear. Similarly,
the final determination of the event will be necessary in
establishing AES Andres's liability under its existing PPAs, which
have exceptions for force majeure.

KEY RATING DRIVERS

Sector Dependence on Government Transfers: Energy distribution
losses above 30% in last five years, low levels of collections and
important subsidies for end-users have created a strong dependence
on government transfers. This dependence has been exacerbated by
the country's exposure to fluctuations in fossil-fuel prices and
energy demand growth (3.4% CAGR in 2009-2015). The regular delays
in government transfers pressure working capital needs of
generators and add volatility to their cash flows.

Continued Working Capital Pressure: Instability in the company's
collection periods continues to result in CFO volatility.
Following the quasi-factoring transaction in 3Q15 of USD100
million of accounts receivable, Itabo's days of sales outstanding
have rapidly crept back up to around 100 days through year-end
2017. This is in line with Fitch's previous expectations, and
further working capital outflows are likely absent another
factoring agreement. Historically, Itabo's receivable days
exceeded six months. In general, Fitch anticipates delays of
between three and four months in payment from the state-owned
distribution companies to GenCos.

Low Cost Asset Portfolio: Itabo's ratings incorporate its strong
competitive position as one of the lower cost thermoelectric
generators in the country, ensuring the company's consistent
dispatch of its generation units. The company operates two low-
cost, coal-fired thermal generating units and a third peaking
plant that runs on Fuel Oil #2 and sells electricity to three
distribution companies in the country through long term U.S.-
dollar-denominated PPAs. The company expects to remain as a base
load generator even after a 700MW coal generation project starts
operations by 2017.

Adequate Credit Metrics: Itabo presents strong credit metrics for
the rating category. Gross leverage as of year-end 2017 stood at
1.2x, flat versus December 2016. Similarly, EBITDA remained stable
at USD80 million across both years. Fitch expects gradual
deterioration in prices to negatively affect revenues and EBITDA
through the medium term, resulting in leverage potentially
increasing to above 1.5x after Itabo's current PPAs expire.

DERIVATION SUMMARY

Itabo's ratings are linked to and constrained by the ratings of
the government of the Dominican Republic, from whom it indirectly
receives its revenues. As a result, Itabo's capital structure is
strong relative to similarly rated, unconstrained peers. Orazul
Energy Egenor S. en C. por A. (BB/Stable), whose ratings reflects
combined results that include its sister company, Aguaytia Energy
del Peru S.R.L., has similar installed capacity and is expected to
generate around USD100 million in EBITDA annually, with estimated
leverage of approximately 5.0x. Egenor benefits from the stability
conferred by its asset diversification and the flexibility allowed
by its vertical integration. By comparison, Itabo is expected to
generate approximately USD75 million, with leverage below 1.5x
through the medium term.

Fenix Power Peru S.A. (BBB-/Stable) is considered another
operational peer to Itabo. It shows high leverage, similar to
Egenor, but benefits from its strategic linkage to its parent
company, Colbun S.A. (BBB/Stable), resulting in a two-notch uplift
from its standalone credit quality. Additionally, its capital
structure benefits from a steady deleveraging trajectory in the
medium term as its international bond amortizes.

KEY ASSUMPTIONS

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

Fitch's key assumptions within the rating case for the issuer
include:

  -No material unplanned stoppages in 2017; possibility of
continued climatological impacts on an annual basis;

  -Demand growth of approximately 2%;

  -Fuel prices to remain low in the near to medium term;

  -100% of previous year's net income paid as dividends.

RATING SENSITIVITIES

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

  - A positive rating action could follow if the DR's sovereign
ratings are upgraded or if the electricity sector achieves
financial sustainability through proper policy implementation.

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

  - A negative rating action would follow if the Dominican
Republic's sovereign ratings are downgraded, if there is sustained
deterioration in the reliability of government transfers and if
financial performance deteriorates to the point of increasing the
ratio of debt-to-EBITDA to 4.5x for a sustained amount of time.

LIQUIDITY

In May 2016, the company issued attached 10-year notes with its
sister companies AES Andres and DPP to repay existing debt and
extend its maturity profile. The tranche assigned to Itabo totaled
USD99.9 million. Fitch expects that lower coal prices (to which
contract prices are indexed) coinciding with the expiration of its
existing PPAs to limit medium term growth recovery prospects in
Itabo's EBITDA. Nevertheless, the company's conservative capital
structure with total leverage of 1.2x and coverage of 10.0x
confers substantial cushion within its rating category.

The company currently holds approximately two thirds of its cash
(USD44 million as of YE2017) in U.S. dollars.

FULL LIST OF RATING ACTIONS

Empresa Generadora de Electricidad Itabo S.A.

Fitch has affirmed the following ratings:

  -- Long-Term, Foreign-Currency IDR at 'BB-';

  -- Long-Term, Local-Currency IDR at 'BB-'.

The Rating Outlooks are Stable.

Fitch has placed the following ratings on Rating Watch Negative:

  -- Senior unsecured notes due 2026 rated 'BB-'.


DOMINICAN REPUBLIC: Dollar 'Stable' but Peso Slides Toward 50-to-1
------------------------------------------------------------------
Dominican Today reports that Dominican Republic's Central Bank
said the exchange rate of the US dollar continues "stable" against
the Dominican peso.

It said in the country's currency market the dollar costs
RD$49.81, compared with the RD$49.75 pesos which sellers fetch,
according to Dominican Today.

As reported in the Troubled Company Reporter-Latin America on
July 19, 2018, Fitch Ratings assigned a 'BB-' rating to
Dominican Republic's USD1.3 billion bonds, maturing July 2028. The
notes have a coupon of 6%.  Proceeds from the issuance will be
used for general purposes of the government, including the partial
financing of the 2018 budget.


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M E X I C O
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MEXICO: Incoming Economy Sec'y Reaches Out to Private Sector
------------------------------------------------------------
Latinx Today reports that the private sector will be crucial to
enable Mexico to break years of "mediocre growth," Economy
Secretary-designate Graciela Marquez said.

"We seek to turn the Economy Secretariat into a driving force for
industry, for it to be your voice within government," she said in
a speech to the annual Concamin business federation meeting,
according to Latinx Today.

The report notes that Ms. Marquez said while the secretariat has
few resources of its own, it will promote "proactive policies" to
attend to the "needs" of businesses starting on Dec. 1, when
Andres Manuel Lopez Obrador is sworn in as president.

"We acknowledge that the private sector is the engine of economic
growth," she said, while adding that Mexico will break its period
of "mediocre growth" if businesses "invest and create jobs," Ms.
Marquez added.

The new government will promote new investments by creating
"infrastructure and logistics," decreasing violence, and
simplifying regulations, Ms. Marquez said, the report relays.

"We have common objectives, because promoting the growth of the
private sector also means strengthening the government's
capacities, though this does not mean more government," she said,
the report discloses.

The speech continued a pattern of outreach to the business
community by Lopez Obrador following his landslide victory in the
July 1 election after a campaign that saw public disputes between
the leftist and prominent figures in the Mexican business
community, the report relays.

The administration will aim to boost domestic consumption to make
Mexico's economy less dependent on exports, Mr. Marquez said, the
report adds.



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P U E R T O    R I C O
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INSTITUCION AMOR: Plan and Disclosures Hearing Set for Oct. 5
-------------------------------------------------------------
Bankruptcy Judge Edward A. Godoy conditionally approved
Institucion Amor Real Corporation's amended disclosure statement,
dated Sept. 10, 2018, in support of its chapter 11 plan.

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

Any objection to the final approval of the Disclosure Statement
and/or the confirmation of the Plan must be filed on/or before 14
days prior to the date of the hearing on confirmation of the Plan.

A hearing for the consideration of the final approval of the
Amended Disclosure Statement and the confirmation of the Plan will
be held on Oct. 5, 2018 at 9:30 AM at the United States Bankruptcy
Court, Southwestern Divisional Office, MCS Building, Second Floor,
880 Tito Castro Avenue, Ponce, Puerto Rico.

            About Institucion Amor Real Corp.

Institucion Amor Real Corporation filed a Chapter 11 petition
(Bankr. D. P.R. Case No. 18-01737) on March 29, 2018.  In the
petition signed by Jose A. Santiago, its president, the Debtor
estimated at least $50,000 in assets and $100,000 to $500,000 in
liabilities.  Judge Edward A. Godoy is the case judge.  Nydia
Gonzalez Ortiz, Esq., at Santiago & Gonzalez, is the Debtor's
counsel.


POPULAR INC: Fitch Assigns BB- Rating to $300MM Sr. Unsec. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned a 'BB-' rating to Popular, Inc.'s
(BPOP) issuance of $300 million of 6.125% fixed rate senior
unsecured notes due Sept. 14, 2023.

BPOP expects to use the proceeds towards the redemption of the
company's approximately $450 million of 7.00% outstanding senior
unsecured notes due July 2019.

In May 2018, Fitch affirmed BPOP's Long-Term Issuer Default Rating
(IDR) and Viability Rating (VR) at 'BB-' and 'bb-', respectively,
removed the Rating Watch Negative, and assigned a Stable Rating
Outlook.

KEY RATING DRIVERS

SENIOR DEBT

The rating for the new offering is equivalent to the rating on
BPOP's existing senior unsecured debt as the new notes will rank
equally in the capital structure. The issuance is not expected to
materially alter BPOP's overall funding mix or have a material
impact on its leverage.

BPOP's ratings reflect the company's leading franchise in Puerto
Rico and strong capital levels, offset by a challenging and
uncertain operating environment and poor asset quality relative to
U.S. mainland banks. Hurricanes Irma and Maria in September 2017
have complicated the Commonwealth of Puerto Rico's efforts to
reverse outward migration, generate sustainable economic growth,
and address its fiscal and debt imbalances. Additionally, the
reduction in the federal corporate tax rate in the U.S. makes
Puerto Rico less attractive on a relative basis.

Fitch believes rebuilding efforts and a federal aid package from
the U.S. government could have a positive short- to medium-term
impact on the island's economy. Longer-term prospects for the
island's economy, outside the current Outlook horizon, depend
heavily on the effectiveness of fiscal and structural reforms.

RATING SENSITIVITIES

SENIOR DEBT

The ratings for BPOP's senior unsecured debt are sensitive to any
change in the company's VR.

Fitch has assigned the following rating:

  -- $300 million 6.125% fixed rate senior unsecured notes due
Sept. 14, 2023 'BB-'.

Fitch rates BPOP as follows:

Popular, Inc.

  -- Long-term IDR 'BB-'; Outlook Stable;

  -- Senior unsecured 'BB-';

  -- Short-term IDR 'B';

  -- Short-term Debt 'B'.

  -- Viability rating 'bb-';

  -- Preferred stock 'B-';

  -- Support '5';

  -- Support floor 'NF'.

Popular North America, Inc.

  -- Long-term IDR 'BB-'; Outlook Stable;

  -- Senior unsecured 'BB-';

  -- Short-term IDR 'B';

  -- Short-term Debt 'B';

  -- Viability rating 'bb-';

  -- Support '5';

  -- Support floor 'NF'.

Popular Bank

  -- Long-term IDR 'BB-'; Outlook Stable;

  -- Long-term deposits 'BB';

  -- Short-term IDR 'B';

  -- Short-term deposits 'B'.

  -- Viability rating 'bb-';

  -- Support '5';

  -- Support floor 'NF'.

Banco Popular de Puerto Rico

  -- Long-term IDR 'BB-'; Outlook Stable;

  -- Short-term IDR 'B';

  -- Short-term deposits 'B';

  -- Viability rating 'bb-';

  -- Support '5';

  -- Support floor 'NF'.

Popular Capital Trust I

  -- Trust preferred 'B-'.

Popular Capital Trust II

  -- Trust preferred 'B-'.

Popular North America Capital Trust I

  -- Trust preferred 'B-'.

Popular Capital Trust III

  -- Trust preferred 'B-'


PUERTO RICO: Bond Restructuring Approved in Initial Vote Tally
--------------------------------------------------------------
Luis Valentin Ortiz at Reuters reports that creditors
overwhelmingly approved a plan to restructure bonds issued by
Puerto Rico's insolvent Government Development Bank (GDB),
according to preliminary voting results disclosed.

The U.S. Commonwealth's Fiscal Agency and Financial Advisory
Authority said final results are expected on or around Sept. 19,
according to Reuters.  The deal would mark the first consensual
debt restructuring under the 2016 federal PROMESA Act, which aimed
to rescue the island overwhelmed by $120 billion in debt and
pension liabilities, the report notes.

The report relays that Puerto Rico has been trying to restructure
its debt since May 2017 through a form of bankruptcy in U.S. court
and has other tentative deals with creditors that combined with
the GDB agreement cover about 40 percent of its bonded debt.

The next step would be final approval by Puerto Rico's federally
appointed financial oversight board and by U.S. Judge Laura Taylor
Swain, who the government expects will issue an order around Nov.
6, the report discloses.

Under the deal, the GDB, which has about $4 billion of debt, would
transfer to a GDB Debt Recovery Authority portions of its loan
portfolios, mostly made to municipalities and public agencies, as
well as its real estate assets and unencumbered cash, the report
says.  The authority would issue new bonds backed by a statutory
lien on those assets in an amount equal to 55 percent of
outstanding debt, the report notes.

The report relays that there is pushback from a group of unsecured
creditors participating in Puerto Rico's Title III bankruptcy case
over the GDB debt restructuring deal.

The unsecured creditor committee, or UCC, seeks to halt the
agreement, arguing it violates the commonwealth's court-ordered
bankruptcy stay and PROMESA, the report notes.  The group also
raised a flag over the deal's release of potential claims against
current and former GDB directors, officers and other
representatives, the report relays.

The report says that the Puerto Rico government and the oversight
board have rejected the committee's arguments and intend to move
forward with the GDB deal.

The report notes that Mr. Swain, who presides over Puerto Rico's
bankruptcy cases, took the arguments made by the UCC under
advisement during a court hearing.

At the hearing, the UCC reminded the court of its concerns over a
tentative deal to restructure Puerto Rico's roughly $16 billion of
sales tax-backed or COFINA bonds, the report relays.

The creditor committee, which represented the commonwealth in
negotiating the COFINA settlement framework, would back out of the
deal if Puerto Rico's fiscal plan fails to update its cash flow
projections in order to accommodate the terms of the deal, warned
Luc Despins of Paul Hastings, the UCC's lead counsel, the report
notes.

The report discloses that the oversight board is expected to
approve a revised version of the commonwealth's fiscal plan later
this month.

Puerto Rico also has a preliminary debt-restructuring deal with a
group of bondholders of its power utility known as PREPA, which
has some $9 billion in debt, the report relays.  Counsel for the
commonwealth's oversight board said it continues to hash out
details with these creditors and that PREPA is pushing forward its
privatization and concession plans for its generation,
distribution and transmission assets, the report notes.

If completed, the COFINA, PREPA and the GDB deals will enable
Puerto Rico to restructure 40 percent of its bonded debt, said
Martin Bienenstock from Proskauer, the board's lead counsel, the
report adds.

                        About Puerto Rico

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

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

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

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

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

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

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

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

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

Prime Clerk LLC is the claims and noticing agent.  Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico

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

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

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

                    Bondholders' Attorneys

Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet,
Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund
Group, comprised of mutual funds managed by Oppenheimer Funds,
Inc., and the First Puerto Rico Family of Funds, which
collectively hold over $4.4 billion of GO Bonds, COFINA Bonds, and
other bonds issued by Puerto Rico and other instrumentalities.

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

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch
Alternative Capital LP.

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

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

                          Committees

The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth.
The Retiree Committee tapped Jenner & Block LLP and Bennazar,
Garcia & Milian, C.S.P., as its attorneys.  The Creditors
Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as
counsel.


================================
T R I N I D A D  &  T O B A G O
================================


CARIBBEAN AIR: Discontinues Montego Bay-Fort Lauderdale Flights
---------------------------------------------------------------
RJR News reports that Caribbean Airlines (CAL) Limited will
consolidate its daily operations between Jamaica and Fort
Lauderdale to its Kingston hub, effective January 8, 2019.

The airline will maintain its daily service between Norman Manley
International in Kingston and Hollywood International Airport in
Fort Lauderdale, Florida, but will discontinue service between
Sangster International in Montego Bay and Fort Lauderdale,
according to RJR News.

Flights from Montego Bay to Fort Lauderdale will operate as
scheduled until January 7, the report notes.

Passengers booked after January 8 have been offered a full refund
or have been reallocated to other services, the report adds.

Caribbean Airlines Limited -- http://www.caribbean-airlines.com/
-- provides passenger airline services in the Caribbean, South
America, and North America.  The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods.  In addition, it operates a duty
free store in Trinidad.  Caribbean Airlines Limited was founded in
2006 and is based in Piarco, Trinidad and Tobago.

As reported in the Troubled Company Reporter-Latin America on
November 2, 2015, RJR News said that Michael DiLollo, Chief
Executive Officer of Caribbean Airlines Limited has quit after
just 17 months on the job. The 48-year-old Canadian national,
citing personal reasons, resigned with immediate effect.  His
resignation was accepted by the airline's board of directors. Mr.
DiLollo was appointed Caribbean Airlines CEO in May 2014,
following the sudden resignation of Robert Corbie in September
2013.

In early February 2015, Larry Howai, then Finance Minister, told
Parliament that unaudited accounts for 2014 showed the airline
made a loss of US$60 million, inclusive of its Air Jamaica
operations, and the airline planned to break even by 2017.
Mr. Howai told the Parliament that a five-year strategic plan had
been completed and was in the process of being approved for
implementation.

In an interview with the Trinidad & Tobago Guardian in early
November 2015, Mr. DiLollo said CAL did not need a bailout just
yet. Mr. DiLollo said the airline had benefited from extremely
patient shareholders for years and he believed the airline was
strategically positioned to break even in three years.


=============
U R U G U A Y
=============


BANQUE HERITAGE: S&P Alters 'B+' GS Rating Outlook to Stable
------------------------------------------------------------
S&P Global Ratings revised its global scale rating outlook on
Banque Heritage (Uruguay) SA to stable from negative. S&P said,
"We also affirmed the rating at 'B+'. Additionally, we raised our
national scale rating on the bank to 'uyBBB' from 'uyBBB-'. The
outlook on this rating is now stable. The upgrade on the national
scale follows the implementation of our new national scale
criteria, in conjunction with the revised global scale outlook on
the bank."

S&P said, "The outlook revision reflects our belief that Banque
Heritage Uruguay's operations during the last quarter of 2018 will
normalize and be in line with our base-case expectations. In
addition, the revision reflects our expectation that the bank will
be able to shift its focus back to its lending and investment
banking activities, while maintaining its current business
stability and position. Banque Heritage Uruguay was able to
maintain stable operations during the first half of 2018 while the
bank was resolving the fraud incident. Additionally, we expect the
bank's results to benefit from a higher-than-expected depreciation
of the Uruguayan peso, given revenues dollars while costs are
mainly in domestic currency."


                            ***********


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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