/raid1/www/Hosts/bankrupt/TCRLA_Public/180221.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, February 21, 2018, Vol. 19, No. 37


                            Headlines



C A Y M A N  I S L A N D S

PLUSFUNDS MANAGER: Scheme of Arrangement Terminated
SPC: Scheme of Arrangement Terminated
SPHINX CONVERTIBLE: Scheme of Arrangement Terminated
SPHINX CONVERTIBLE LTD: Scheme of Arrangement Terminated
SPHINX DISTRESSED LTD: Scheme of Arrangement Terminated

SPHINX DISTRESSED SPC: Scheme of Arrangement Terminated
SPHINX EQUITY LTD: Scheme of Arrangement Terminated
SPHINX EQUITY SPC: Scheme of Arrangement Terminated
SPHINX FIXED LTD: Scheme of Arrangement Terminated
SPHINX FIXED SPC: Scheme of Arrangement Terminated

SPHINX LONG LTD: Scheme of Arrangement Terminated
SPHINX LONG SPC: Scheme of Arrangement Terminated
SPHINX LTD: Scheme of Arrangement Terminated
SPHINX MANAGED FUTURES: Scheme of Arrangement Terminated
SPHINX MACRO LTD: Scheme of Arrangement Terminated

SPHINX MACRO SPC: Scheme of Arrangement Terminated
SPHINX MANAGED: Scheme of Arrangement Terminated
SPHINX MERGER LTD: Scheme of Arrangement Terminated
SPHINX MERGER SPC: Scheme of Arrangement Terminated
SPHINX PLUS: Scheme of Arrangement Terminated

SPHINX SPECIAL LTD: Scheme of Arrangement Terminated
SPHINX SPECIAL SPC: Scheme of Arrangement Terminated
SPHINX STRATEGY: Scheme of Arrangement Terminated


D O M I N I C A N   R E P U B L I C

DOMINCAN REPUBLIC: Inter-Bank Transactions Won't Pay The 1.5% Fee
DOMINCAN REP: Jan. Prices Up Paced by Non-Alcoholic Beverages


M E X I C O

MEXICO: Urges Canada Not to Exclude it From NAFTA Negotiations


N I C A R A G U A

NICARAGUA: S&P Affirms 'B+/B' SCR, Outlook Remains Stable


P U E R T O    R I C O

KONA GRILL: Seyit Ali Gunduz Has 5.8% Stake as of Dec. 27


V E N E Z U E L A

VENEZUELA: Looking for New Oil Markets Amid Threat of US Sanction
VENEZUELA: Military Battles Criminal Gang in Mining Region


                            - - - - -


==========================
C A Y M A N  I S L A N D S
==========================


PLUSFUNDS MANAGER: Scheme of Arrangement Terminated
---------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for PlusFunds Manager Access Fund has given notice
that the scheme of arrangement, approved by the court on Nov. 8,
2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPC: Scheme of Arrangement Terminated
-------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPC has given notice that the scheme of
arrangement, approved by the court on Nov. 8, 2013, as amended by
an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX CONVERTIBLE: Scheme of Arrangement Terminated
----------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Convertible Arbitrage Fund SPC has given
notice that the scheme of arrangement, approved by the court on
Nov. 8, 2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX CONVERTIBLE LTD: Scheme of Arrangement Terminated
--------------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Convertible Arbitrage Ltd. has given notice
that the scheme of arrangement, approved by the court on Nov. 8,
2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX DISTRESSED LTD: Scheme of Arrangement Terminated
-------------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Distressed Fund Ltd has given notice that
the scheme of arrangement, approved by the court on Nov. 8, 2013,
as amended by an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX DISTRESSED SPC: Scheme of Arrangement Terminated
-------------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Distressed Fund SPC has given notice that
the scheme of arrangement, approved by the court on Nov. 8, 2013,
as amended by an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX EQUITY LTD: Scheme of Arrangement Terminated
---------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Equity Market Neutral Fund Ltd has given
notice that the scheme of arrangement, approved by the court on
Nov. 8, 2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX EQUITY SPC: Scheme of Arrangement Terminated
---------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Equity Market Neutral Fund SPC  has given
notice that the scheme of arrangement, approved by the court on
Nov. 8, 2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX FIXED LTD: Scheme of Arrangement Terminated
--------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Fixed Income Arbitrage Fund Ltd. has given
notice that the scheme of arrangement, approved by the court on
Nov. 8, 2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX FIXED SPC: Scheme of Arrangement Terminated
--------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Fixed Income Arbitrage Fund SPC has given
notice that the scheme of arrangement, approved by the court on
Nov. 8, 2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX LONG LTD: Scheme of Arrangement Terminated
-------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Long/Short Equity Ltd. has given notice
that the scheme of arrangement, approved by the court on Nov. 8,
2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX LONG SPC: Scheme of Arrangement Terminated
-------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Long/Short Equity Fund SPC has given notice
that the scheme of arrangement, approved by the court on Nov. 8,
2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX LTD: Scheme of Arrangement Terminated
--------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Ltd has given notice that the scheme of
arrangement, approved by the court on Nov. 8, 2013, as amended by
an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX MANAGED FUTURES: Scheme of Arrangement Terminated
--------------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Managed Futures Fund has given notice that
the scheme of arrangement, approved by the court on Nov. 8, 2013,
as amended by an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX MACRO LTD: Scheme of Arrangement Terminated
--------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Macro Fund Ltd has given notice that the
scheme of arrangement, approved by the court on Nov. 8, 2013, as
amended by an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX MACRO SPC: Scheme of Arrangement Terminated
--------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Macro SPC has given notice that the scheme
of arrangement, approved by the court on Nov. 8, 2013, as amended
by an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX MANAGED: Scheme of Arrangement Terminated
------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Managed Futures Ltd has given notice that
the scheme of arrangement, approved by the court on Nov. 8, 2013,
as amended by an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX MERGER LTD: Scheme of Arrangement Terminated
---------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Merger Arbitrage Ltd. has given notice that
the scheme of arrangement, approved by the court on Nov. 8, 2013,
as amended by an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky



SPHINX MERGER SPC: Scheme of Arrangement Terminated
---------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Merger Arbitrage SPC has given notice that
the scheme of arrangement, approved by the court on Nov. 8, 2013,
as amended by an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX PLUS: Scheme of Arrangement Terminated
---------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SphinX Plus SPC, Ltd has given notice that the
scheme of arrangement, approved by the court on Nov. 8, 2013, as
amended by an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX SPECIAL LTD: Scheme of Arrangement Terminated
----------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Special Situations Fund Ltd has given
notice that the scheme of arrangement, approved by the court on
Nov. 8, 2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX SPECIAL SPC: Scheme of Arrangement Terminated
----------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Special Situations Fund SPC has given
notice that the scheme of arrangement, approved by the court on
Nov. 8, 2013, as amended by an order on June 10, 2014, has been
terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


SPHINX STRATEGY: Scheme of Arrangement Terminated
-------------------------------------------------
The Grand Court of Cayman Islands disclosed that the scheme
supervisors for SPhinX Strategy Fund Ltd has given notice that the
scheme of arrangement, approved by the court on Nov. 8, 2013, as
amended by an order on June 10, 2014, has been terminated.

The liquidator can be reached at:

          KPMG
          P.O. Box 493 Grand Cayman KY1-1106, Cayman Islands
          Tel: +1 345-949-4800
          Fax: +1 345-949-7164
          E-mail: gijialex@kpmg.ky


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


DOMINCAN REPUBLIC: Inter-Bank Transactions Won't Pay The 1.5% Fee
-----------------------------------------------------------------
Dominican Today reports that as of this week the clients of the
financial system who make inter-bank transactions from account to
account or deposit checks in their own won't have to pay the 1.15%
fee which the banks charge as tax on transactions to the same
person.

The measure will be communicated to all banks of the Dominican
financial system by means of a Banks Superintendence regulation to
be sent to the financial intermediation entities this week, Banks
Superintendent, Luis Armando Asuncion, revealed, according to
Dominican Today.

Banks Superintendence officials provided the information during a
meeting with economic editors, journalists, and other media
representatives, to publicize the financial system in 2017, the
report notes.

The report relays that they said the system is well capitalized
and that they provided the same details to the International
Monetary Fund (IMF) technicians which visited the country two
weeks ago.

They said the new regulation, which could be made retroactive to
January, is already in Internal Taxes (DGII) and was disclosed so
it doesn't charge the 1.15 fee for inter-bank transactions between
accounts of the same person, the report adds.

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



DOMINCAN REP: Jan. Prices Up Paced by Non-Alcoholic Beverages
-------------------------------------------------------------
Dominican Today reports that Dominican Republic's Central Bank
said consumer prices climbed 0.29% in January, compared to
December 2017.

It said year-on-year inflation, from January 2017 to January 2018,
stood at 3.86%, "slightly below the central value of the target
range of 4.0% Ò 1.0% established in the Monetary Program,"
according to Dominican Today.

It said the group with the highest incidence in the analyzed month
was Food and Non-Alcoholic Beverages with a variation of 0.50%
compared to the previous month.

"Interannual core inflation was placed at 2.43% in January 2018.
This indicator measures the inflationary pressures of monetary
origin, isolating the price variations of some volatile
agricultural goods, alcoholic beverages, tobacco, as well as fuels
and some managed services such as electricity and transport, thus
allowing us to extract clearer signals for the conduct of monetary
policy," the Central Bank said in a statement obtained by the news
agency.

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



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


MEXICO: Urges Canada Not to Exclude it From NAFTA Negotiations
--------------------------------------------------------------
EFE News reports that the president of Mexico's Senate urged
Canada not to "fall into the trap" of excluding his country from
the renegotiation of the North American Free Trade Agreement
(NAFTA) among the member countries.

Ernesto Cordero made his remarks amid concerns about the
possibility of Canada reaching a bilateral agreement with the US,
according to EFE News.



=================
N I C A R A G U A
=================


NICARAGUA: S&P Affirms 'B+/B' SCR, Outlook Remains Stable
---------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term local and foreign
currency sovereign credit ratings on the Republic of Nicaragua.
The outlook on the long-term ratings remains stable. At the same
time, S&P affirmed the 'B' short-term local and foreign currency
sovereign credit ratings. In addition, S&P affirmed its transfer
and convertibility (T&C) assessment at 'BB-'.

OUTLOOK

S&P said, "The outlook is stable, based on our expectation that
solid growth prospects and cautious fiscal policies will continue
to facilitate low budget deficits and contain the country's
external financing needs.

"We may raise the ratings within the next two years if we see a
lasting improvement of Nicaragua's external vulnerabilities,
through a sustained reduction of the country's financing needs or
of its indebtedness, along with a further enhancement of the
quality of its external statistics.

"Conversely, we could lower the ratings within the next two years
if we perceive a reversal of the positive trends seen over recent
years in the country's fiscal performance and government debt
burden, coupled with an unexpected decision of the government to
assume private-sector debt owed to Venezuela under the PetroCaribe
program."

RATIONALE

S&P's ratings on Nicaragua are supported by the sovereign's track
record of steady GDP growth and pragmatic economic policies, its
low fiscal deficits, and moderate government debt burden, which
counterbalance its low GDP per capita, weak external position, and
monetary policy rigidities.

Flexibility and performance profile: The debt burden is
decreasing, but large external vulnerabilities remain a
constraint.

-- The country has maintained cautious fiscal policies, allowing
    for a gradual improvement in its moderate debt burden amid
    sustained economic growth.

-- Nicaragua's large current account deficits (CADs) characterize
    its relatively weak external position.

-- A crawling peg exchange rate, along with a high level of
    financial dollarization, limits monetary policy flexibility.

S&P expects the government will remain committed to fiscal
caution, with general government deficits at 1.3% of GDP on
average in 2018-2021. Revenue growth has been solid, and tax
revenues have risen above 10% annually over the past five years,
on the back of steady and impressive GDP growth.

On the expenditure side, the government has gradually included
some social programs previously financed by funding from Venezuela
(under the PetroCaribe program) into its budget. The gradual
absorption of these programs reduces the risk of a potentially
material rise in government spending in the future because of the
local impact of financial difficulties in Venezuela. However,
shortfalls in basic services and physical infrastructure--
principally in the rural areas of the country--continue to weigh
on potential spending in the future. S&P said, "Our projections
assume modest additional decreases in electricity subsidies over
the next two years, in line with recent changes in law. The social
security institute (INSS, in its Spanish acronym), which provides
pensions and other services to workers in the formal sector
(around 25% of the total workforce) has faced consistent deficits
since 2013 because of more beneficiaries. Reforming the parameters
of the social security system to strengthen its own finances would
alleviate future spending pressure on the government. We expect
that the government will undertake measures to strengthen INSS in
the coming years, along with steps to continue improving tax
revenue collection, through the elimination of some value-added
tax exemptions and other measures."

S&P said, "We expect that stable fiscal policy will result in an
annual change in net general government debt averaging 2.2% of GDP
during 2018-2021, exceeding the reported headline fiscal deficit.
We understand that the difference between the annual general
government net borrowing requirements and its reported headline
deficit over the past few years stems mainly from the depreciation
of the local currency and from some budgetary transactions between
the government and the central bank or the government and public-
sector companies.

"We project the general government deficit will continue to be
mainly financed through external borrowing. We expect Nicaragua's
general government net debt burden to exceed 30% of GDP in 2018
and to decline to 28.5% of GDP by 2021 because of good economic
growth and declining domestic debt. External debt currently
accounts for 85% of the total public-sector debt stock, of which
99% is owed to official creditors. All of the general government
debt is denominated in foreign currency, making it vulnerable to
unexpected changes in the exchange rate. We project interest
payments on the debt to remain below 5% of general government
revenues in 2018-2021, assuming that Nicaragua will maintain
access to external financing under favorable conditions. We
believe that the sovereign's contingent liabilities from the
financial sector and nonfinancial public enterprises are limited,
according to our criteria."

Nicaragua's external vulnerabilities remain a rating weakness,
reflected in large CADs. The CAD likely narrowed temporarily to 6%
of GDP in 2017, before likely widening again this year. The lower
deficit in 2017 reflects a recovery in major commodities exports
and low import growth (in turn because of weaker private
consumption).

In recent years, Nicaragua's current account has benefited from
growth of the country's tourism industry as well as from sizable
remittances (which account for 10% of GDP) and a declining oil
import bill. Successful development of renewable energy (now
accounting for 54% of power generation) has reduced oil import
needs. S&P said, "We expect the CAD to stabilize at 8% of GDP for
2018-2021 and to continue to be financed by a combination of
external borrowing and foreign direct investment inflows. Our
assessment of external risks reflects still-sizable shortcomings
in data on the country's balance of payments."

Nicaragua's external indebtedness is relatively high, despite
substantial debt relief in earlier years under various
multilateral initiatives. Private-sector external debt accounts
for 54% of total external debt. All debt owed to Venezuela under
the PetroCaribe program (likely the largest component of private-
sector external debt) is classified as private-sector debt and
does not have a sovereign guarantee.

Official lenders have provided the lion's share of Nicaragua's net
external financing needs in recent years. S&P projects that narrow
net external debt will be around 105% of current account receipts
(CARs) in 2018 and rise modestly to 110% by 2021. Nicaragua's
reliance on external funding, with net external liabilities
projected at 236% of CARs in 2018, reflects the country's
vulnerability to changes in investor and official lender
sentiment.

S&P's assessment of Nicaragua's monetary flexibility reflects the
country's crawling peg exchange rate, high level of dollarization
(deposits and loans denominated in U.S. dollars), and small
domestic capital market which limits the effectiveness of monetary
policy. The country has used the crawling peg since 1991, and we
believe that the government is committed to this arrangement. The
exchange rate is set to depreciate 5% annually against the U.S.
dollar, contributing to stable inflation expectations. We assume
an average inflation rate around 6% during 2018-2021. The high
share of deposits and loans in U.S. dollars--which remain well
above 50% of the total--further impairs the effectiveness of
Nicaragua's monetary policy as it does in several economies across
the region. The central bank has taken measures to strengthen its
liquidity management instruments in recent years in order to
support the development of domestic markets. Financial indicators
that the central bank and the superintendent have published appear
relatively robust.

Institutional and economic profile: S&P expects policy continuity
and steady economic growth.

-- Political decision-making is centralized within the office of
    President Daniel Ortega and his dominant Sandinista political
    party.

-- S&P expects that a continued commitment to pragmatic pro-
    business policies will underpin strong economic performance.

-- S&P expects real GDP to increase on average between 4% and 5%
    per year in 2018-2021 (and 3.5% growth per capita), with
    slowly diversifying sources of economic growth.

President Daniel Ortega, who remains popular according to surveys,
is running the second year of his third consecutive mandate (2016-
2021). Over the past 10 years, the Ortega Administration and the
private sector have established policy cooperation through
official mechanisms for consultation, contributing to continued
consensus on key economic policies.

S&P assumes that the government's commitment to pragmatic pro-
investment policies, in tandem with good relations with official
creditors, will support growth and macroeconomic stability in the
coming years. Nevertheless, Nicaragua's institutional and
governance effectiveness continues to be constrained by weak
political checks and balances, as well as by shortfalls in
transparency. Political power is highly centralized in the
presidency and the governing Frente Sandinista de Liberaci¢n
Nacional (FSLN). The FSLN controls 71 out of the 92 seats in
Congress and faces a weak and divided political opposition.

Criticism over the conduct of national elections held in November
2016 (including the disqualification of some opposition candidates
by the country's electoral authority) led the government to ask
the Organization of American States (OAS) to observe municipal
elections held in November 2017. The FSLN's position was further
strengthened by winning 135 of 153 municipal governments.
Opposition groups again raised concerns over irregularities in the
electoral process.

Electoral controversies have led some members of the U.S. Congress
to promote legislation to limit multilateral lending to Nicaragua.
The U.S. House of Representatives recently passed the Nicaraguan
Investment Conditionality Act, which, if eventually approved by
the Senate and signed by the president, would direct the U.S.
government to oppose loans (other than for humanitarian purposes)
to Nicaragua from multilateral institutions where the U.S. is a
member country (including the World Bank and the Inter-American
Development Bank). If the act is approved, we assume that it will
likely have a limited impact on external funding, affecting only a
minor share of such inflows.

Continued GDP growth and expanding public services have led to a
steady increase in per capita income and living standards in
recent years. We expect real GDP per capita to be $2,200 in 2018,
compared with $1,470 10 years ago. The poverty rate is around 25%
(from nearly 46% in 2011), and the extreme poverty rate is 7%
(from 15%).

S&P projects Nicaragua's economic growth will stabilize around
4.6% in real terms between 2018 and 2021 (3.5% in per capita
terms), assuming continued growth in the U.S. and stable domestic
economic and political conditions. Growing economic
diversification (agriculture, manufacturing, and expanding
tourism) and public investment in infrastructure should sustain
GDP growth in the coming years. A new cross-country highway that
now connects the Pacific and Caribbean coasts will integrate
isolated areas and help develop tourism and port activities.
Moreover, the country's business environment benefits from low
violence compared with other Central American countries.
Nicaragua's success in containing crime through innovative
policing strategies should continue to support private-sector
activity and investment.

In the long term, the government faces the challenge of improving
the business environment to boost both domestic and foreign
investment. Inadequate worker skills, poor infrastructure, and
constraints related to land registration are among the most
pressing issues that the government needs to tackle, according to
the private sector. Exports remain vulnerable to weaker demand
from the U.S., to weather conditions, and to potentially lower
commodity prices.

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 agreed that the fiscal and debt assessments had
improved. All other key rating factors were unchanged.

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

RATINGS LIST

  Ratings Affirmed

  Nicaragua
   Sovereign Credit Rating                    B+/Stable/B
   Transfer & Convertibility Assessment       BB-


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


KONA GRILL: Seyit Ali Gunduz Has 5.8% Stake as of Dec. 27
---------------------------------------------------------
In a Schedule 13G filed with the Securities and Exchange
Commission, Seyit Ali Gunduz disclosed that as of Dec. 27, 2017 he
beneficially owns 583,842 shares of common stock of Kona Grill,
Inc., constituting 5.8 percent (based upon the Issuer's most
recently filed Form 10-Q, the Issuer has 10,104,980 shares
outstanding as of Oct. 31, 2017.)  A full-text copy of the
regulatory filing is available for free at:

                       https://is.gd/1s0YQr

                        About Kona Grill

Kona Grill, Inc., headquartered in Scottsdale, Arizona, Kona
Grill, Inc. -- http://www.konagrill.com/-- currently owns and
operates 45 upscale casual restaurants in 23 states and Puerto
Rico.  The Company's restaurants offer freshly prepared food,
attentive service, and an upscale contemporary ambiance.  The
Company's high-volume upscale casual restaurants feature a global
menu of contemporary American favorites, sushi and specialty
cocktails.

Its menu items are prepared from scratch at each restaurant
location and incorporate over 40 signature sauces and dressings,
creating memorable flavor profiles that appeal to a diverse group
of customers.  Its diverse menu is complemented by a full service
bar offering a broad assortment of wines, specialty cocktails, and
beers.

Kona Grill reported a net loss of $21.62 million for the year
ended Dec. 31, 2016, following a net loss of $4.49 million for the
year ended Dec. 31, 2015.  As of Sept. 30, 2017, Kona Grill had
$103.59 million in total assets, $85.61 million in total
liabilities and $17.97 million in total stockholders' equity.

"The Company has incurred losses resulting in an accumulated
deficit of $67.3 million, has a net working capital deficit of
$6.9 million and outstanding debt of $38.0 million as of September
30, 2017.  These conditions together with recent debt covenant
violations and subsequent debt covenant waivers and debt
amendments, raise substantial doubt about the Company's ability to
continue as a going concern.  The ability to continue as a going
concern is dependent upon the Company generating profitable
operations, improving liquidity and reducing costs to meet its
obligations and repay its liabilities arising from normal business
operations when they become due.  While the Company believes that
its existing cash and cash equivalents as of September 30, 2017,
coupled with its anticipated cash flow generated from operations,
will be sufficient to meet its anticipated cash requirements,
there can be no assurance that the Company will be successful in
its plans to increase profitability or to obtain alternative
financing on acceptable terms, when required or if at all," the
Company stated in its quarterly report for the period ended Sept.
30, 2017.



=================
V E N E Z U E L A
=================


VENEZUELA: Looking for New Oil Markets Amid Threat of US Sanction
-----------------------------------------------------------------
RJR News reports that Venezuela President Nicolas Maduro said
Venezuela is going to shop around for other buyers of its crude
oil, should the United States make good on its threat to impose an
oil embargo on the troubled Latin American country.

Those comments come after U.S. Secretary of State Rex Tillerson's
Latin American tour that was supposed to garner support for the
United States' stance on Maduro's oppressive regime, according to
RJR News.

Mr. Maduro said if the US puts an oil embargo on Venezuela, they
will take their business somewhere else, the report notes.

While in Argentina, Tillerson sought support for a full embargo
from Argentinian leadership, the report relays.

As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2018 S&P Global Ratings affirmed its long- and short-
term foreign currency sovereign issuer credit ratings on Venezuela
at 'SD/D'. S&P said, "At the same time, we lowered seven issue
ratings on Venezuela's global bonds to 'D' from 'CC'. Our long-
and short-term local currency sovereign credit ratings remain at
'CCC-/C' and are still on CreditWatch with negative implications.
In addition, we affirmed our 'CC' transfer and convertibility
assessment."


VENEZUELA: Military Battles Criminal Gang in Mining Region
----------------------------------------------------------
Associated Press reports that at least 18 people were killed at an
illegal gold mine in southern Venezuela during clashes with
security forces looking to take control of the area, an official
said.

The confrontation was confirmed to the Associated Press by an army
officer who spoke on the condition of anonymity because he wasn't
allowed to discuss the operation, according to Associated Press.

He said it broke out when the army traveled to the Cicapra mine
after receiving information that an armed gang was threatening
wildcat miners in the remote area, the report notes.  Four assault
weapons, grenades and several light firearms were seized, the
report relays.

Details of the incident weren't released, though officials said no
soldiers were among those killed, the report discloses.

The officer said none of the dead carried identification, but that
one of those killed is believed to be a woman known locally as
"the boss" who is suspected of taking control of the area
following the murder last year of her brother, Anderson Rodriguez,
an alleged gang leader known for his ruthless treatment of miners,
the report relays.

It was the most violent incident at a mine in Bolivar state since
the bodies of 17 wildcat miners were found in a mass grave in 2016
after allegedly being killed by a criminal gang, the report notes.

Violence has been on the rise in Bolivar as Venezuela's cash-
strapped government looks to open the resource-rich area to
foreign investment amid a continuing turf war in the lawless area
between criminal gangs and the military, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2018 S&P Global Ratings affirmed its long- and short-
term foreign currency sovereign issuer credit ratings on Venezuela
at 'SD/D'. S&P said, "At the same time, we lowered seven issue
ratings on Venezuela's global bonds to 'D' from 'CC'. Our long-
and short-term local currency sovereign credit ratings remain at
'CCC-/C' and are still on CreditWatch with negative implications.
In addition, we affirmed our 'CC' transfer and convertibility
assessment."


                            ***********


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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