TCREUR_Public/140131.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Friday, January 31, 2014, Vol. 15, No. 22



HYPO ALPE-ADRIA: Austrian Finance Minister Opposes Insolvency
HYPO ALPE-ADRIA: Gov't to Set Aside EUR1 Billion in Aid This Year


PROCREDIT BANK: Fitch Cuts LT IDRs to 'B'; Outlook Negative

C Z E C H   R E P U B L I C

CE ENERGY: Fitch Assigns 'B+(EXP)' LT Issuer Default Rating
EP ENERGY: Fitch Affirms 'BB+' LT Issuer Default Rating


* FINLAND: Records Nearly 600 Business Restructurings in 2013


GROHE HOLDING: Moody's Withdraws B2 CFR & B2-PD Default Rating


LUCCHINI SPA: Feb. 10 Submission Deadline Set for Asset Bids


NEW WORLD: S&P Lowers CCR to 'CCC' on Weak Coal Prices


REN-REDES: S&P Affirms 'BB+' Corp. Credit Rating; Outlook Stable


LA SEDA DE BARCELONA: Recuperacions Marcel to Buy PET Plant
ZUCAMI: Big Dutchman Takes Over Insolvent Poultry Equipment Firm

U N I T E D   K I N G D O M

HIBU INC: Yellow Pages Publisher Enters Chapter 15
HSS FINANCING: S&P Assigns Preliminary 'B' CCR; Outlook Stable
LONDON & REGIONAL: Fitch Affirms 'Bsf' Rating on Class C Notes
SAG SOLARSTROM: UK Unit Files For Insolvency Process
STEMCOR HOLDINGS: Lenders Must Vote on Debt Restructuring Plan

* UK: More Than 1,000 Firms Balk at Restructuring Unit Practices


* EMEA 2013 Financial Sector Issuance Hits New Low, Fitch Says
* Moody's Says Investor Shift to Alternative Investments Positive
* BOOK REVIEW: Creating Value through Corporate Restructuring



HYPO ALPE-ADRIA: Austrian Finance Minister Opposes Insolvency
Michael Shields at Reuters reports that letting nationalised
lender Hypo Alpe Adria go bust is not the way to shelter
taxpayers from the bank's woes, Finance Minister Michael
Spindelegger said on January 28, dismissing talk that such a move
may still be an option.

He told parliament the best way forward remained the government's
plan to get commercial banks to support a "bad bank" that would
absorb toxic assets from Hypo, which Austria had to nationalise
in 2009, Reuters relates.

According to the report, Mr. Spindelegger was responding to
requests from the opposition Greens party about his strategy for
handling loss-making Hypo, which has already got EUR4.8 billion
($6.6 billion) in state aid and could get up to 1 billion more in

"Even if you like to keep saying . . . that an insolvency
scenario would solve everything, I can only point to what the
experts have presented to us in this regard: that is not the
case," Reuters quotes Mr. Spindelegger as saying.  "We have to
favor instead a different solution that always aims to produce
what is most favorable for taxpayers."

Reuters notes that the parliamentary leader of the ruling Social
Democrats (SPO) had earlier rejected as "playing with fire"
speculation that the country could let Hypo go bust while
propping up its home province of Carinthia, which has more than
EUR12 billion in guarantees on Hypo debt.

According to Reuters, the Wiener Zeitung paper reported this week
that this scenario was under discussion despite earlier
assurances from the government that this was ruled out.

Andreas Schieder, a former finance ministry state secretary who
now heads the SPO group in parliament, told the Wiener Zeitung
this was too dangerous a path to consider, Reuters relates.

"I see this as playing with fire. There are no contained
bankruptcies. Questions about deposits, guarantees and spillover
effects cannot be answered in a controlled way," he said, echoing
concerns from the central bank and other lenders, Reuters adds.

Hypo Group Alpe Adria -- is an
international financing group with more than 370 banking and
leasing locations in 12 countries (Austria, Italy, Slovenia,
Croatia, Bosnia-Herzegovina, Serbia, Montenegro, Germany,
Hungary, Bulgaria, Macedonia and the Ukraine), which can look
back on a history of more than 110 years.  The principal company
of Hypo Group Alpe Adria is Hypo Alpe-Adria-Bank International
AG, which has its head office in Klagenfurt (Austria).  The Hypo
Group Alpe Adria network currently has over 7,400 employees
serving approximately 1.2 million customers.

HYPO ALPE-ADRIA: Gov't to Set Aside EUR1 Billion in Aid This Year
James Shotter at The Financial Times reports that Austria's new
government has set aside EUR1 billion this year to cover the
needs of Hypo Alpe Adria, one of three midsized Austrian banks
that had to be nationalized during the financial crisis, as it
debates the best way of closing the lender.

In September, the EU said Austria could provide Hypo with up to
EUR5.4 billion in state aid over the next four years, as part of
a plan that would see the bank's viable parts in Austria and the
Balkans sold, and its rump wound down, the FT recounts.

That plan envisaged between EUR400 million and EUR900 million of
state aid for Hypo in 2014, but Michael Spindelegger, Austria's
new finance minister, said on Wednesday he was now budgeting for
EUR1 billion in assistance this year, the FT notes.

Last year, Hypo received EUR1.75 billion in aid, meaning the
government can provide a maximum of a further EUR3.65 billion,
the FT discloses.

According to the FT, the precise amount that the state will have
to come up with depends on whether the government can persuade
Austria's big banks -- Erste Group; Bank Austria, the local
subsidiary of UniCredit; and Raiffeisen Bank International -- to
participate in a so-called "bad bank" that could be set up to
help wind down Hypo.

A bad bank with participation from commercial lenders is the
government's preferred option for winding down Hypo, as a state-
run wind-down vehicle would increase the public debt, while
allowing the bank to go bust could unsettle the capital markets,
the FT says.

The finance ministry hopes a task force set up to determine the
best way to proceed will reach a decision by mid-February, the FT

Hypo Alpe-Adria International AG is a subsidiary of BayernLB.  It
is active in banking and leasing.  In banking, HGAA serves both
corporate and retail customers and offers services ranging from
traditional lending through savings and deposits to complex
investment products and asset management services.


PROCREDIT BANK: Fitch Cuts LT IDRs to 'B'; Outlook Negative
Fitch Ratings has downgraded ProCredit Bank Albania's (PCBA)
Long-Term foreign currency and local currency Issuer Default
Ratings (IDRs) to 'B' and 'B+' respectively and affirmed its
Viability Rating (VR) at 'b'.  The Outlook is Negative.

Key Rating Drivers - IDRS and Support Rating of PCBA

The downgrade of PCBA's Long-term foreign and local currency IDRs
to 'B' and 'B+', respectively, reflects Fitch's assessment of
heightened transfer and convertibility risks in Albania.

This is because the Long-Term IDRs and Support Rating of PCBA are
driven by potential support from its Germany-based parent,
ProCredit Holding AG & Co.  KGaA (PCH, BBB-/Stable), which in
turn is constrained by Fitch's assessment of transfer and
convertibility risks in Albania.

The Negative Outlook on the bank's Long-term IDRs reflects that
the balance of risks remains on the downside given Albanian
country risks, as a result of weak domestic growth and worsened
government finances.

PCH's ratings are based on Fitch's view of the support it could
expect to receive from its core shareholders when needed,
particularly from its international financial institution

Rating Sensitivities - IDRS and Support Rating of PCBA

The ratings are sensitive to changes to Fitch's view of transfer
and convertibility risks in Albania.

A weakening, in Fitch's view, of the support available to PCBA
from PCH would also result in a downgrade to the bank's IDRs and
potentially also the Support Rating, although this is not
expected by Fitch at present.

Key Rating Drivers - PCBA'S VR

PCBA's VR reflects a difficult operating environment and the
ensuing pressures on its asset quality, performance and
capitalization.  PCBA's capitalization is only adequate with a
Fitch Core Capital ratio of 13.7% at end-9M13, in view of the
bank's risk profile, high level (albeit typical for the sector)
of predominantly EUR-denominated loans, moderate coverage of
loans overdue by 90 days (PAR90; end-2013: 85%) and limited
earnings prospects.

However, liquidity is strong, refinancing risk is limited and the
bank's retail funding base is a rating strength. Furthermore,
Fitch expects PCBA's asset quality to stabilize over the medium
term (PAR90; of up to 9%) following efforts to clean up the
portfolio of 'medium-sized' loans (notably loans over EUR1
million) in 2013.

Rating Sensitivities - PCBA'S VR
PCBA's VR could be downgraded if the operating environment
materially worsens and if asset quality further deteriorates to
the extent of eroding profitability and capital.  An upgrade of
PCBM's VR is unlikely given Albanian country risks and Fitch's
current assessment that the balance of risks is on the downside.

The rating actions are as follows:


-- Long-term foreign currency IDR: downgraded to 'B' from 'B+';
    Outlook Negative

-- Short-term foreign currency IDR: affirmed at 'B'

-- Long-term local currency IDR: downgraded to 'B+' from 'BB-';
    Outlook Negative

-- Short-term local currency IDR: affirmed at 'B'

-- Viability Rating: affirmed at 'b'

-- Support Rating: affirmed at '4'

C Z E C H   R E P U B L I C

CE ENERGY: Fitch Assigns 'B+(EXP)' LT Issuer Default Rating
Fitch Ratings expects to assign Czech Republic-based CE Energy
a.s. (CEE) a Long-term Issuer Default Rating (IDR) of 'B+(EXP)'
with Stable Outlook. Fitch has assigned CEE's proposed senior
secured notes a 'B+(EXP)'/'RR4' expected rating.

CEE is a newly established holding company, which owns 100% of
the shares of EP Energy, a.s. (and whose sole activity is related
to additional borrowing through loans and notes.  CEE's expected
ratings reflect its reliance upon dividends from EPE as a single
source of income and debt service, and CEE's bondholders'
subordination to creditors of EPE.

The final ratings are contingent on the proposed refinancing of
CEE taking place and the final terms conforming with those
already received.  Fitch has assumed that EUR500 million is
raised. The proposed refinancing and notes issue proceeds will be
largely used for distributions to CEE's shareholders (repayment
of a subordinated shareholder loan).  The proposed notes terms
include debt incurrence and restricted payments covenants, which
may limit future distributions to CEE's parent.  However, the
tests are not forward looking and do not include cash sweeps or
minimum liquidity provisions and as such do not provide material
rating support.

Key Rating Drivers

Rating Constrained by Subordination

CEE's prospective bondholders have recourse to CEE and a share
pledge over 50% less one share of CEE's shares in EPE, whereas
EPE's secured creditors have a pledge over the remaining shares,
a pledge over certain EPE assets, and benefit from operating
company guarantees.  CEE's bondholders are therefore subordinated
to EPE's creditors.  Additionally, EPE's covenanted financial
structure could limit the dividends it upstreams to CEE if its
net debt/EBITDA ratio reaches 3.0x.  This structural
subordination, providing for ring-fencing protection around EPE,
is reflected in the lower rating for CEE's debt.

Sole Cash Flow Source

CEE represents a simple holding company structure for EPE, solely
reliant on a single cash flow stream of dividends.  Its own debt
service and payments to the parent company Energeticky a
prumyslovy holding, a.s (EPH) are the two main uses for its cash.
No withholding or income taxes are expected to be incurred. CEE's
rating is also constrained by the lack of diversification in
revenue source, no covenanted liquidity, and the leverage
covenant at EPE, which could constrain dividend payments.

High Consolidated Leverage

Fitch forecasts consolidated FFO adjusted net leverage for CEE to
peak at 4.9x at YE15 (assuming deconsolidating Stredoslovenska
energetika, a.s. (SSE) and including only the dividend thereof in
line with Fitch's rating approach for EPE) and dividend cover
ratio (dividend income from EPE/interest expense) to remain over
3.5x.  "We view the expected leverage, together with the
subordination and a single income stream of CEE as the key rating
constraints," Fitch said.

Average Recovery Expectations

Fitch estimates the recovery prospects for the proposed bond to
be average (31%-50%).  This is reflected by the notes' expected
rating being in line with CEE's expected IDR.  The provided
security is a pledge over 50% less one share of EPE and over 100%
shares of CEE.  This compares with EPE's creditors having a
pledge over 50% plus one share of EPE and over other key
subsidiaries and certain assets of EPE, as well as the benefit of
opco guarantees.

Equity-like Shareholder Loan

"We view CEE's liability under its subordinated shareholder loan
as equity-like because it does not increase its probability of
payment default or reduce expected recoveries for its creditors.
The loan is due after the proposed notes' maturity, does not
carry any interest and cannot be accelerated or enforced before
its final maturity.  Optional redemptions of the loans are
possible subject to the restricted payments test in CEE's
proposed notes' terms (net consolidated leverage below 4.0x)."
Fitch said.

Debt Structure And Liquidity

The key debt instruments at EPE are the secured 2018 EUR600
million and 2019 EUR500 million notes (both rated 'BBB-'), a
EUR231 m acquisition loan (connected to SSE) and subsidiary
borrowings of EUR63 million (out of which EUR35 m represent 49%
of loans of SSE). CEE is proposing to replace a bank loan, which
was used to repay shareholder loans of EPH, with EUR500 million
notes, the proceeds of which will be used to repay the term loan
and the remainder upstreamed to EPH.

Although CEE intends to maintain a six-month liquidity reserve
and to build up a further cash balance from 2015 onwards from
retained cash flows, these are not covenanted provisions or ring-
fenced for the creditors.  As such, we consider liquidity

Rating Sensitivities

Positive: Future developments that could lead to positive rating
actions include:

-- A reduction of Fitch's expected consolidated FFO adjusted net
    leverage of CEE (including EPE, but deconsolidating SSE) to
    below 4.75x on a sustained basis combined with sustainable
    dividend cover of CEE in excess of 3.5x.

Negative: Future developments that could lead to negative rating
action include:

-- A sustained drop in dividend cover to below 2.5x and an
    increase in the consolidated FFO adjusted net leverage to
    over 5.5x.

-- Available liquidity falling below six months' debt service.

EP ENERGY: Fitch Affirms 'BB+' LT Issuer Default Rating
Fitch Ratings has affirmed Czech Republic-based EP Energy a.s.'s
(EPE) Long-term Issuer Default Rating (IDR) at 'BB+' with Stable
Outlook, and its EUR1.1 billion senior secured notes at 'BBB-'.

The affirmation reflects Fitch's expectations of increased
dividend payments from EPE to its new holding company, CE Energy
a.s., primarily to service new debt to be issued by CEE. Fitch
expects EPE to pay between 80%-90% of adjusted net income in
dividends to CEE, up from 50% assumed so far.  While this limits
the rating headroom, we forecast EPE's credit metrics will
continue to support the current ratings.

CEE's creditors are solely reliant on dividends from EPE for debt
service, have no direct access to EPE's operational cash flow,
and are structurally subordinated to EPE's creditors.  EPE's
dividends and leverage are limited within its existing restricted
payment and debt incurrence covenants.

Key Rating Drivers

- Cash Flow Visibility

EPE's credit profile is supported by its contracted lignite
mining, low-cost heat supplies, cogeneration power sales as well
as by regional regulated distribution monopolies and long-term
power purchase agreements.  These core divisions represent over
80% of EPE's EBITDA, with the rest derived from power generation,
and supply, making its earnings and cash flows stable and
predictable. EPE also benefits from geographical diversification
and limited exposure to adverse regulation.

- Contracted Lignite Mining

Over 90% of EPE's expected external lignite sales (17 million
tons in 2012) are contracted until 2020 and around 60% until 2039
with high-quality counterparties, comprising efficient base load
power plants in Germany designed to use EPE's lignite.  Sales are
contracted on terms reflecting the cost structure of the mining
operations (and inflation), thus limiting EPE's volume and price
risk.  EPE increased its lignite production to supply its
cogeneration plants in the Czech Republic, which it started to
supply since January 2014, as well as to supply its newly
acquired power plant Buschhaus in Germany.

- Leader in District Heating

EPE is the largest heat supplier in the Czech Republic with an
installed thermal capacity of 4.1 gigawatts (GW), mostly lignite-
fired, and heat supplies of 18.5 peta joules (PJ) in 2012, mostly
to households (57%) and large industrials (20%).  The company
supplies around 360,000 households in Prague and other major
cities, which represent a stable customer base.  It also operates
one of the largest low-cost cogeneration plants in the country.
EPE's heat prices are below the market average and those of
alternative heating.

- Emerging Structure and Integration

Despite some recent improvement, EPE's group structure remains
complex with a number of separate operating and holding companies
in a number of jurisdictions.  Centralized treasury and cash
pooling is still being developed and operational integration is
fairly limited, despite EPE's presence in the entire energy chain
from pit to retail supply.

- Recent M&A Marginally Positive

EPE has continued its efforts on vertical integration by
acquiring Buschhaus, a German coal power plant with a gross
installed capacity of 390MW and a near-exhausted lignite mine,
which allows EPE to make use of spare existing mining capacity at
low marginal cost at EPE's current mining division.  At the same
time, EPE acquired 49% (with management control) of
Stredoslovenska energetika, a.s. (SSE) a Slovak electricity
distributor and supplier with a regulatory asset base (RAB) of
almost EUR500 million, which was added as a fully consolidated
entity (with acquisition debt of EUR240 million) to EPE's balance
sheet in December 2013. Together these two companies represent
around one third of the estimated 2014 EBITDA, assuming full
consolidation of SSE. We consider these acquisitions as mildly
positive for EPE's business profile. Even though leverage
increased, it is still forecast to be within the current rating

- Leverage Above Peers

EPE's leverage is above that of most rated central European
peers, and the recently announced financial structure with
EUR500 million incremental debt at CEE, solely serviced by
upstreamed dividends from EPE will delay EPE's deleveraging.  Its
bond terms allow restricted payments (including dividends)
providing that leverage (net debt to EBITDA) is not higher than
3.0x and also limit further indebtedness after gross debt exceeds
3.25x EBITDA.  On funds from operations (FFO) net adjusted basis
Fitch expects EPE's leverage to reach 3.7x at FYE15, a level
which remains commensurate with the current rating.

Rating Sensitivities

Positive: Future developments that may, individually or
collectively, lead to positive rating action include:

- Longer track record of the current business structure with
   greater vertical integration of operations supporting fuel
   supply self-sufficiency without significant cost implications
   for the group

- Reduction of target to and Fitch's expected leverage remaining
   at a level comparable with regional peers' (FFO adjusted net
   leverage below 3.5x) on a sustained basis

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

- A more aggressive financial policy (including opportunistic
   M&A or higher dividends) that would increase Fitch-expected
   FFO adjusted net leverage to 4.0x or above on a sustained
   basis (this level would likely be in breach of EPE's bond

- A significant deterioration in business fundamentals due to a
   large and sustained increase in carbon dioxide price or
   structural heat demand decline (perhaps as a result of more
   effective insulation and/or higher ambient temperatures)

Liquidity and Debt Structure

Following two bonds issuance in 2012 and 2013 of EUR500 million
and EUR600 million respectively, EPE has moved away from a debt
structure dominated by bank and shareholders loans to a structure
mainly reliant on fixed-rate bonds.  "We view its foreign
exchange risks as manageable due to euro revenues in Germany and
Slovakia and electricity sales being denominated in euro," Fitch

Based on EPE's unaudited statements at end-September 2013, the
company had around EUR254 million of cash and cash equivalents
(assuming a historical exchange rate of CZK25/EUR), of which
EUR167 million was subject to pledges (99% related to security
for bondholders) in favor of senior creditors.  Short-term debt
stood at EUR32 million at end-September 2013.  "We expect free
cash flow to be neutral or slightly negative during 2014-15,
subject to dividends being in line with our expectations and
reflecting increased capex in the period," Fitch said.


* FINLAND: Records Nearly 600 Business Restructurings in 2013
Yle Uutiset reports that data from Statistics Finland tell a grim
tale of hard times for many Finnish residents in 2013.

According to Yle Uutiset, the numbers show some 3,800 filings for
personal debt restructuring, 3,100 bankruptcies, and nearly 600
business restructuring applications -- all representing an
increase over the previous year.


GROHE HOLDING: Moody's Withdraws B2 CFR & B2-PD Default Rating
Moody's Investors Service has withdrawn the B2 corporate family
rating and B2-PD probability of default rating of Grohe Holding

Ratings Rationale

Moody's has withdrawn the ratings following the closing of the
acquisition of Grohe by Lixil Corporation and Development Bank of
Japan Inc. (Aa3, stable), and subsequent repayment of all
outstanding debt.

Grohe Holding GmbH is one of the world's leading single-brand
manufacturers and suppliers of sanitary fittings, offering a
broad range of products for delivering water to bathrooms and


LUCCHINI SPA: Feb. 10 Submission Deadline Set for Asset Bids
The Extraordinary Receiver of Lucchini S.p.A. in a.s.
("Lucchini") and Lucchini Servizi S.r.l. in a.s. ("Lucchini
Services") who had issued previous announcements for expression
of interest for the purchase:




announces that the Ministry of Economic Development, the Ministry
of Environment, Protection of the Territory and Sea, the Ministry
of Infrastructures and Transportation, the Region of Tuscany, the
Province of Livorno, the City of Piombino and the Port Authority
of Piombino, on January 16, 2014, signed a "Memorandum of
Understanding" ("Protocollo d'Intesa") regarding the definition
of the Government support package for requalification and
reconversion of the industrial area of Piombino.

In view of this new and important element that could be of
further appreciation, the Extraordinary Receiver, Dr. Piero
Nardi, announces that the deadline January 20, 2014, for
submitting Expressions of Interest regarding the sale process is
extended to February 10, 2014.

Any expressions of interest for (i) ALL OR PART OF THE BUSINESS
INI S.P.A.'S SHARE CAPITAL must be sent to Lucchini S.p.A. in
a.s., by Certified Electronic Mail (PEC) at the following
address: specifying the
object(s) of interest, also consistent with the options shown in
the previous notice, and the e-mail must also indicate the name,
phone number and e-mail address of interested party's legal

Expressions of interest on behalf of subjects yet to be appointed
will not be considered.  The Extraordinary Receiver reserves the
right to admit the interested parties to the following phases by
sending (i) a Confidentiality Agreement, and (ii) the
Tender Regulations, both to be signed for acceptance by the
interested party.

This announcement is a call for expressions of interest and not
an invitation to offer or an offer to the public.  The
publication of the announcement and the expressions of interest
do not imply any obligation on the Extraordinary Receiver to
admit any of the interested parties to the tender procedure
and/or negotiate on the sale and/or sell to the interested
parties, and do not entitle these parties to receive any service
from Lucchini's Extraordinary Receiver.

Any final decision with regard to the sale is subject to
authorization by the Ministry of Economic Development, upon
consultation with the Supervisory Committee (Comitato di

The Extraordinary Commissioner also notes that a copy of the
Government Agreement ("Protocollod'Intesa") signed on
January 16, 2014, can be viewed and downloaded from the website
of the procedure:

Any inquiries can be sent via email to

Piombino, 20/01/2014
The Extraordinary Receiver
Dr. Piero Nardi


NEW WORLD: S&P Lowers CCR to 'CCC' on Weak Coal Prices
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Netherlands-headquartered coal miner
New World Resources N.V. (NWR) to 'CCC' from 'B-'.  The outlook
is negative.

In addition, S&P lowered its issue rating on NWR's senior secured
notes to 'CCC' from 'B-' and its issue ratings on NWR's senior
unsecured notes to 'CC' from 'CCC'.

The downgrades follow the recent drop in the price of coking coal
and NWR's agreement on thermal coal prices for 2014.  These
prices may result in NWR generating material negative free cash
flow in 2014, consuming most of the company's current outstanding
cash.  S&P believes that a default or the introduction of a
distressed exchange offer are therefore possible later this year.
Consequently, S&P has also revised its assessment of NWR's
liquidity to "weak" from "less than adequate."

In the fourth quarter of 2013, the company completed the
divestment of its coke facility for about EUR95 million and
signed a covenant waiver for its export credit agency (ECA)
facility.  As a result, S&P estimates that NWR's cash balances
remain substantial, at about EUR200 million at the end of 2013,
but this is unlikely to be sufficient to weather prolonged
depressed coal prices.

Hard coking coal Australian reference spot prices have been lower
than S&P previously expected, and it now assumes prices of
US$140 per ton in 2014 (US$10 per ton below S&P's previous
assumptions; the current price is US$125 per ton).  Moreover, the
company has signed agreements to sell 80% of its thermal coal
production for EUR54 per ton (down from the already-low price of
EUR56 per ton in 2013).  S&P now assumes EBITDA in the range of
zero to negative EUR50 million in 2014.  After deducting interest
charges of about EUR70 million and maintenance expenditure of
about EUR90 million, negative free operating cash flow could be
between EUR160 million and EUR210 million -- compared with
estimated outstanding cash of about EUR200 million as of Dec. 31,
2013.  S&P also understands that, according to the amended ECA
facility, NWR needs to keep minimum liquidity of about EUR80
million in the coming three quarters and return to the original
financial covenant ratios by the end of the year.

S&P understands that the company is discussing alternatives to
stabilize its capital structure.  In a recent press release, the
main shareholder, investment group BXR, confirmed its continued
support for the company and its business strategy.  BXR indicated
that it is prepared to invest new equity capital into a revised
and satisfactory capital structure.  In S&P's view, a
restructuring could include debt conversion as well as an equity
injection.  Under S&P's criteria, it could treat a distressed
exchange offer below the debt's par value as a default.

S&P's analysis does not include assumptions of the restructuring
and asset retirement costs related to the closure of the Paskov
mine, located near Ostrava in the Czech Republic.  The company is
currently discussing the possibility of operating the mine to the
end of 2016 and then handing it over to the Czech government.  If
NWR decides to shut down the mine, it may face additional cash
expenses of at least EUR30 million to be spread over several
years, starting from 2015.

S&P assess NWR's liquidity as "weak" under its criteria.  S&P
estimates that the company's ratio of sources to uses of
liquidity will be below 1.0x in the next 12 months.

The liquidity assessment is underpinned by the material negative
cash flow in 2014 and the potential breach of the covenant under
the amended ECA facility by the second half of 2014 (which
requires minimum liquidity of about EUR80 million).  In the
current environment for coal prices, S&P also assumes that bank
support for NWR has weakened and therefore it has not factored in
a renewal of NWR's revolving credit facility (RCF), which expires
in early February.

Under S&P's base-case scenario, NWR's principal liquidity sources
from Oct. 1, 2013, to Dec. 31, 2014, are:

   -- EUR148 million of estimated surplus cash, excluding
      EUR40 million that S&P estimates is tied to operations; and

   -- EUR95 million from the divestment of the coke facility in
      late 2014.

S&P estimates that NWR's principal liquidity uses in the period

   -- Negative funds from operations of about EUR30 million in
      the fourth quarter of 2013 and about EUR70 million-
      EUR120 million in 2014;

   -- Capital expenditure of EUR90 million-100 million per year,
      most of which is maintenance;

   -- No dividend distributions;

   -- A potential early repayment of the ECA facility in the
      second half of 2014, if the covenants are breached and a
      second waiver is not arranged.

   -- As of Sept. 30, 2013, the outstanding facility was
      EUR71 million, of which the company has since repaid a
      portion; and

   -- Potential investment in working capital, if the current
      receivables factoring facility terminates.

The negative outlook reflects S&P's view that NWR's negative free
cash flow and weakening liquidity may lead to further downgrades
in the coming months, and possibly to a default if very low coal
prices persist.

S&P could lower the rating in the event of one of the following:

   -- NWR initiates a distressed exchange offer regarding the
      outstanding debt.

   -- Adverse business conditions result in a cash shortfall by
      September 2014, meaning that NWR breaches the covenants
      under the amended ECA facility.

S&P could revise the outlook to stable if NWR presents a plan
that it considers to be achievable, including a build-up of
sufficient cash to bridge the next 12 months.  However, S&P
believes that the challenging market conditions mean that the
success of such a plan would be uncertain.


REN-REDES: S&P Affirms 'BB+' Corp. Credit Rating; Outlook Stable
Standard & Poor's Ratings Services said that it had affirmed its
'BB+/B' long- and short-term corporate credit ratings on
Portuguese utility REN-Redes Energeticas Nacionais, SGPS, S.A.
(REN).  The outlook is stable.

At the same time, the 'BB+' issue rating on REN's senior
unsecured debt was affirmed.  The '3' recovery ratings on the
rated issues is unchanged.

The long-term and issue ratings were removed from CreditWatch,
where they were placed with negative implications on Sept. 20,

The affirmation of the ratings and removal of the long-term and
issue ratings from CreditWatch follows S&P's similar outlook
revision on Portugal.  The outlook on REN is no longer
constrained by the outlook on Portugal and, at stable, now
reflects S&P's expectation that REN's credit profile will remain
unchanged over the next two years.

The CreditWatch on REN previously mirrored that on Portugal,
which indicated a possible multinotch downgrade.  The current
negative outlook on Portugal is no longer a constraint on S&P's
rating on REN, however, because under its revised criteria, a
nonsovereign entity with "high" country risk exposure can be
rated two notches above a sovereign rated 'B' or higher.

Based on S&P's stress-test of the long-term rating on REN, it
concluded that there is a measureable likelihood that the issuer
would withstand a sovereign default.  S&P therefore believes the
utility's ability to service and repay debt is superior to that
of the sovereign.

The ratings continue to be based on S&P's view of REN's business
risk profile as "strong" and S&P's assessment of REN's financial
risk profile as "aggressive."  The stable outlook reflects S&P's
expectation that REN's business risk and financial risk profiles
will remain resilient to the relatively uncertain and adverse
economic and fiscal conditions in Portugal.  S&P anticipates that
regulatory conditions for REN's transmission activities will
remain unchanged and that the company's core credit metrics will
remain stable and consistent with the rating.

The stable outlook also reflects that a one-notch downgrade of
Portugal would leave the rating on REN unchanged, all else being

S&P could upgrade REN should its financial risk profile
strengthen sustainably.  This may result from the combination of
lower capital expenditures, stronger recovery in tariff
deviation, or lower taxes and interest than anticipated.  S&P
sees adjusted FFO to debt recurrently in excess of 14% as being
commensurate with a higher rating, assuming no unexpected
weakening of the regulatory, fiscal, or economic environment in

Ratings upside is, however, limited to one notch, as long as the
rating on Portugal remains unchanged, because S&P assess REN's
exposure to Portuguese country risk as "high."

S&P could downgrade REN if REN's international expansion or an
unexpected and far-reaching regulation overhaul in Portugal
significantly diluted the company's business risk profile.  A
downgrade would also likely result if S&P believed that REN would
struggle to achieve and maintain a ratio of adjusted FFO to debt
exceeding 10%.  This could result from the combination of a
costly acquisition, larger capital expenditures, or increasing
tax and interest charges.

A downgrade of Portugal to 'B+' or lower would automatically
trigger a downgrade of REN.


LA SEDA DE BARCELONA: Recuperacions Marcel to Buy PET Plant
Richard Higgs at Platics & Rubber Weekly reports that
Recuperacions Marcel Navarro i Fills, located in Llagostera near
Girona, has agreed to acquire the production plant of PET
recycler Artenius Green at Balaguer, Spain, as part of the
liquidation process of insolvent PET group La Seda de Barcelona.

According to PRW, LSB said the buyer will not be liable for
outstanding Artenius Green tax, labor and other debts.

The 18,800 tpa PET bottle recycling facility in Balaguer was due
to close down with the loss of up to 37 jobs as subsidiary
businesses of Barcelona-based LSB are sold off to pay the group's
debts, PRW discloses.

But now the buyer has agreed to resume and boost production at
the plant, retaining a workforce of 23, PRW says, citing Catalan
media reports.

Earlier reports estimated that the likely value of the Artenius
Green assets at around EUR150,000 (GBP123,000), PRW notes.

La Seda de Barcelona is a Spanish plastics bottle maker.  The
Catalonia-based company makes bottles in Europe, Turkey and North

ZUCAMI: Big Dutchman Takes Over Insolvent Poultry Equipment Firm
ThePoultrySite News Desk reports that the Big Dutchman group
based in Vechta-Calveslage (Germany) is taking over the Spanish
poultry equipment supplier Zucami. The company with its
headquarters in Beriain, near Pamplona, recently became
insolvent, the report says.

"As a result of the bidding procedure, the insolvency court
accepted our concept presented in December," the report quotes
Bernd Meerpohl, Chairman of the Big Dutchman AG board of
management, as saying.  ThePoultrySite relates that this concept
intends for Big Dutchman to purchase the assets of the competitor
from Northern Spain while maintaining its headquarters and saving
approximately half of the 120 jobs. Business will continue under
the new name Zucami Poultry Equipment S.L.

"Even as part of the Big Dutchman group, Zucami will remain an
independent brand on the international market," Mr. Meerpohl, as
cited by ThePoultrySite, said. "Management and distribution will
not be affected substantially. We are also happy that the
shareholders of the company are still available as consultants."

According to the report, Mr. Meerpohl said the Spanish company
had earned an outstanding reputation in the industry and a very
impressive presence in some regions. In addition, Zucami's
product line is designed in a very different but interesting way
compared to Big Dutchman's products, thus ideally complementing
the group's product range.

Big Dutchman is the world's leading equipment supplier for modern
pig and poultry production. The independent, family-owned company
based in Vechta-Calveslage offers its products in more than 100
countries and achieved a turnover of EUR732 million in the past
business year, ThePoultrySite discloses.

Zucami distributes housing equipment worldwide and is considered
a leading supplier of equipment for laying hens in Spain and
South America. In 2012, the company's turnover still amounted to
approx. EUR110 million. However, this figure took a nosedive in
the last year of crisis, 2013, the report notes.

U N I T E D   K I N G D O M

HIBU INC: Yellow Pages Publisher Enters Chapter 15
Patrick Holohan, writing for The Deal, reported that Yellow Pages
publisher and website creator Hibu Inc. has sought Chapter 15
protection as it attempts to win approval of a U.K. restructuring
that would reduce its debt by about GBP800 million ($1.29

According to the report, the Uniondale, N.Y., company and five
affiliates on Jan. 28 submitted petitions in the U.S. Bankruptcy
Court for the Eastern District of New York in Central Islip.

Hibu seeks a Feb. 27 hearing on its motion to recognize its
scheme of arrangement in the U.K. as a foreign nonmain proceeding
under Chapter 15, the report related.

The debtors and affiliates print Yellowbook in the U.S., Yellow
Pages in the U.K.and Paginas Amarillas in Spain, as well as white
pages directories in Argentina and Chile, the report said.
Hibu's digital products include online directories, and, as well as mobile
applications and website creator Hibu Business.

Hibu said its debt structure "remains a significant burden [that]
coupled with the continuing pressures faced by the print and
digital directory business" forced it to restructure, the report
further related.

HSS FINANCING: S&P Assigns Preliminary 'B' CCR; Outlook Stable
Standard & Poor's Ratings Services said that it assigned its
preliminary 'B' long-term corporate credit rating to U.K.-based
equipment rental services provider HSS Financing PLC. (trading as
HSS Hire; HSS).  The outlook is stable.

At the same time, S&P assigned its preliminary 'B' issue rating
to the proposed GBP200 million senior secured fixed-rate notes
due 2019, to be issued by HSS.  The recovery rating on these
notes is '3', indicating S&P's expectation of meaningful (50%-
70%) recovery in the event of a payment default.

The ratings on HSS reflect S&P's assessment of the group's
financial risk profile as "highly leveraged" and business risk
profile as "weak," as S&P's criteria define these terms.

HSS is planning to issue GBP200 million of new senior secured
fixed-rate notes, and to use the proceeds to repay
GBP163.6 million of existing term debt and GBP29 million of
existing shareholder loans and accrued payment-in-kind (PIK)

After the refinancing and partial repayment of shareholder loans
and accrued interest, the group's capital structure will include
GBP62.2 million of shareholder loans that accrue PIK interest at
what S&P considers to be an aggressive rate of 10%.  S&P views
these loans as debt under its criteria.

HSS' "weak" business risk profile reflects the fact that the
group's geographical footprint is highly concentrated, with
virtually all revenues generated in the U.K., and more than one-
third of group revenues generated in London and the South East of
England.  HSS is the No. 2 equipment rental provider in a
business-to-business market that is well penetrated and highly
competitive.  The players in this market price aggressively and
differentiate themselves on speed and quality of service.

"In our view, the slow growth environment that currently benefits
the equipment rental services industry should continue through
2014.  We forecast that HSS will be able to grow its revenues and
slightly improve its margins over the rating horizon of 12
months, while investing heavily in new equipment to meet demand.
We anticipate that the group's adjusted debt to EBITDA should be
about 5x in 2014, with good cash interest coverage of more than
3x.  However, we note that the group will have negative free
operating cash flow due to its sizable capital expenditure
(capex) plan.  HSS will likely draw on its new revolving credit
facility to fund capex, resulting in slightly higher debt and
weaker leverage metrics," S&P said.

S&P could lower the ratings if HSS were to experience severe
margin pressure, or poorer cash flows, leading to weaker credit
metrics.  This could occur if the company did not curtail its
capex in time to reduce debt prior to a potential drop in
earnings.  Downward rating pressure may also stem from debt-
funded acquisitions and/or increased shareholder returns.

S&P believes that rating upside is limited at this stage, because
of HSS' high tolerance for aggressive financial policies and high
leverage.  The 'FS-6' financial policy score effectively caps
HSS' financial risk profile at "highly leveraged," due to the
high uncertainty over the potential for future releveraging,
aggressive shareholder returns, and changes to the group's
acquisition and disposal strategy.

LONDON & REGIONAL: Fitch Affirms 'Bsf' Rating on Class C Notes
Fitch Ratings has affirmed London & Regional Debt Securitization
No. 2 plc's (LoRDS 2) commercial mortgage-backed floating-rate
notes due 2018 notes, as follows:

-- GBP162 million class A (XS0262542565): affirmed at 'BBBsf';
    Outlook Negative

-- GBP14.9 million class B (XS0262544348): affirmed at 'BBB-sf';
    Outlook Negative

-- GBP46.4 million class C (XS0262545402): affirmed at 'Bsf';
    Outlook revised to Stable

Key Rating Drivers

The affirmation reflects the neutral to positive impact of the
December 2013 restructuring on the notes. The Negative Outlooks
on the senior notes reflect that their investment grade ratings
are predicated on the borrower's adherence to the published
business plan.  However, the Outlook on the class C notes has
been revised to Stable as full repayment of the securitized loan
is expected in a 'Bsf' stress (even in an enforcement scenario).

The proposed loan and bond restructure was passed by noteholders'
extraordinary resolution in December 2013.  Asset management
initiatives and a borrower-led sell down of the secured assets
should result in loan repayment over the next three years.
Noteholders considered this more favorable than the potentially
more problematic scenario of a trustee-led portfolio liquidation
via an enforcement of security.

The restructure includes the maturity extension of the loan and
notes to October 2014 and October 2018, respectively.  Two one-
year loan extension options are also envisaged, providing sales
targets are met (GBP33.2 million by October 2014 and a further
GBP75 million by October 2015) and the loan is not in default.
Noteholders will also benefit from a full cash sweep (100% of
surplus rent and sales proceeds), enhanced by lower financing
costs and suspension of subordinated debt payments until senior
loan repayment, in exchange for a payment in kind coupon.  All
principal will be allocated sequentially.

While Fitch believes that full repayment of the securitized debt
could also be achieved by the enforcement route, as evidenced by
the reported A-note loan-to-value (LTV) ratio of 75.9%,
noteholders are compensated for the maturity extension with an
increase in margin.  Therefore Fitch does not consider the
restructure to be a coercive or distressed debt exchange.

Asset management initiatives include a GBP29 million subordinated
loan available for capital expenditure (provided by the borrower
and repayable after the secured debt), lease re-gearing and asset
re-positioning prior to the marketing phase.  Fitch regards the
business plan as a credible pathway to enhancing portfolio
values. While this is of most benefit to junior lenders, it
should improve the marketability of the assets for a more timely
sell down.

The credit quality of the loan is upheld by several high value
assets located in central London, which are expected to generate
sufficient proceeds (either via refinancing or sale) to repay at
least the senior notes.

Rating Sensitivities

A material driver for the ratings will be the borrower's ability
to avoid default by meeting repayment hurdles.  Failing to do so
may warrant negative rating action, especially on the senior

Estimated 'Bsf' recoveries are GBP237.7 million.

SAG SOLARSTROM: UK Unit Files For Insolvency Process
---------------------------------------------------- reports that a major creditor of S.A.G. Solar UK
Ltd., a wholly owned subsidiary of S.A.G. Solarstrom AG
(Freiburg, Germany), requested the High Court of Justice,
Chancery Division, Companies Court on Jan. 21, 2014 to make an
administration order in relation to S.A.G. Solar UK Ltd.  The
company received the application on Jan. 28, 2014, S.A.G.
Solarstrom AG said in an ad hoc announcement.

A hearing to appoint an administrator is scheduled for Jan. 29,
2014. Once an administrator is appointed, insolvency proceedings
can be initiated according to English law, says

For S.A.G. Solarstrom AG, this could mean the loss of
receivables, the loss of future potential earnings and a risk
that claims will be made on guarantees that have been granted,
the report relates.

According to, delayed accreditation by the
responsible authority Ofgem led to the situation that to date, it
has not been possible to close the sale of a completed solar
photovoltaic (PV) project and thus liquidity inflow could not be
realized, S.A.G. Solarstrom notes in the ad hoc announcement.

Founded in 1998, SAG Solarstrom is a German company that builds
and operates solar power plants.

As reported in the Troubled Company Reporter-Europe on Dec. 17,
2013, The Wall Street Journal said S.A.G. Solarstrom AG has filed
for insolvency, making it the latest in a string of photovoltaic
companies to buckle under intense international competition.
Delayed cash inflows left the company in a liquidity squeeze,
S.A.G. Solarstrom said and talks with banks, financial services
providers and other creditors have been unable to secure the
liquidity needed to guarantee the timely payment of liabilities,
the Journal related.

STEMCOR HOLDINGS: Lenders Must Vote on Debt Restructuring Plan
Stephen Morris at Bloomberg News reports that a U.K. judge
ordered lenders to Stemcor Holdings Ltd. to vote on a debt
restructuring plan as the steel trader seeks to extend more than
US$1 billion of loans and raise new debt.

Justice Vivien Rose on Wednesday ruled creditors must vote
Feb. 19 on a plan that includes converting existing debt into
US$1.1 billion of term loans maturing at the end of 2015.

The company faces insolvency if the proposal isn't approved,
Bloomberg says, citing a company filing presented to the judge.

Stemcor failed to repay an US$850 million credit line last year
after reporting a loss in 2012 amid lower demand for steel,
Bloomberg recounts.  It was then given more time by lenders to
repay the debt as it replaced chairman Ralph Oppenheimer with
restructuring specialist John Soden and sought to sell assets in
India, Bloomberg relays.

According to Bloomberg, the document said that more than 80% of
lenders to the US$850 million loan, as well as a US$225 million
facility for its Singapore-based unit, have indicated their
support for the deal.  The restructuring plan is part of a U.K.
legal process known as a "scheme of arrangement," which typically
requires the backing of 75% of creditors, Bloomberg notes.

The filing shows that Stemcor's creditors have also been asked to
provide a new US$1.15 billion loan to enable it to continue
operations, Bloomberg states.

If the restructuring completes Stemcor will be able to repay debt
using cash as well as proceeds from disposals, including its
operations in India, Bloomberg says, citing the document.

Headquartered in London, Stemcor Holdings Limited trades steel
and steel-making raw materials worldwide.

* UK: More Than 1,000 Firms Balk at Restructuring Unit Practices
Lianna Brinded at International Business Times reports that more
than a 1,000 companies have made accusations about practices
carried on at RBS's Global Restructuring Group (GRG), government
advisor Lawrence Tomlinson has told a Treasury Select Committee.

Mr. Tomlinson, who is an adviser to Britain's business secretary
Vince Cable, said his dossier of cases against RBS's
restructuring unit had "continued to grow" since he published his
independent report into bank, IB relates.  According to IBT, his
report claimed that the 81% government-owned lender profited from
struggling businesses which were pushed into default after being
moved into the controversial unit.  Mr. Tomlinson claimed that by
moving businesses into GRG, this can create more revenue for the
bank through higher fees and margins, IBT discloses.

He added that it can also result in the purchase of devalued
assets by its property division, West Register, IBT notes.

Mr. Tomlinson told the committee that he was ready to hand the
dossier over to the Financial Conduct Authority (FCA), in order
for the watchdog to investigate, as the evidence he has collected
revealed "morally wrong" practices, IBT relays.

However, he did add that there was no evidence of criminal
misconduct, IBT states.


* EMEA 2013 Financial Sector Issuance Hits New Low, Fitch Says
EMEA non-financial corporate bond issuance rose to a new high of
EUR383.3 billion in 2013, while financial-sector issuance hit a
new post-crisis low as covered bond volumes dropped sharply,
according to Fitch Ratings' calculations.

Non-financial corporate issuance in 2013 was 4% higher than the
previous year's record level.  The growth came as companies took
advantage of tight spreads and low yields to refinance and extend
debt maturities.  It also reflects continued disintermediation in
the region as corporates tap markets directly to replace bank
loans.  Issuance was particularly strong in the energy sector,
which accounted for 17% of corporate issuance compared with 12% a
year earlier.  This increase was spurred by high upstream capital
expenditure as high oil prices make it economical to extract oil
from more technically challenging formations and geographies.
The telecom and automotive sectors also saw a slight increase in
their share of the corporate bond market.

By contrast, financial-sector issuance dropped by 27%, largely
reflecting deleveraging of banks' balance sheets.  The headline
figure was driven by a 47% fall in covered bond issuance,
particularly from Italian and Spanish banks in the first nine
months of the year.  This fall highlights the deleveraging at
banks in both countries, but also indicates steadily healing
market conditions over the course of the year.  The proportion of
covered bonds as a total of financial-sector new issuance fell
back to around one-third from more than 45% in the last two

The divergent trends mean non-financial corporates also snared a
record share of EMEA issuance in 2013, with 41% of the region's
total corporate issuance compared with 33% in 2012 and more than
double the pre-crisis levels of 2006 and 2007.  However sentiment
towards financial sector issuers improved towards the end of the
year, with strong Q4 issuance and spreads trading within 20bp of
their non-financial counterparts -- the tightest since
February 2008.

"We expect issuance from developed-market EMEA non-financial
corporates to remain strong in 2014, supported by a modest
increase in capex and the continuing favorable market conditions
and relatively low interest rates.  Emerging-market issuance will
probably face increasing headwinds from slowing growth and
weakening fund flows on the back of the Federal Reserve's
tapering program," Fitch said.

"We will publish more details on this data in our quarterly
report "EMEA Corporate Bonds: Rating and Issuance Trends" in
early February," Fitch said.

* Moody's Says Investor Shift to Alternative Investments Positive
The structural shift among investors toward greater asset
allocation to alternative investments will benefit asset managers
with expertise in alternative asset classes. Well-established
alternative asset managers with proven track records such as
Blackstone, KKR, Oaktree and Carlyle will clearly benefit from
this marked trend. However, traditional asset managers that have
begun building their capabilities in alternative assets, such as
BlackRock, Inc. (A1), Invesco Ltd. (A3), Clipper Acquisitions
Corp (Ba1), Neuberger Berman Group LLC (Ba1), Franklin Resources,
Inc. (A1) and Legg Mason, Inc. (Baa1), will also benefit, says
Moody's Investors Service in a new report published.

Assets under management (AUM) will see incremental growth, and
management fees will be higher for alternative asset classes --
real estate, private equity, direct lending and absolute-return
driven strategies -- compared with traditional asset classes, as
stocks and bonds.

The new report, entitled "Asset Managers Stand to Benefit from
Investor Shift to Alternative Investments", is now available on Moody's subscribers can access this report via
the link provided at the end of this press release.

Moody's says that increased allocations to alternatives will
likely continue as investors, notably pension funds, search for
higher returns. This structural shift by pension funds toward
greater alternative investments is a credit positive development
for skilled alternative asset managers that can mitigate the
typically greater risks associated with alternative investments.

"Pension funds are increasingly moving towards alternative
investments, which offer higher portfolio returns and better
protection against inflation and price volatility, says
Soo Shin-Kobberstad, a senior analyst at Moody's and the author
of the report. "In addition, asset classes such as real estate
and infrastructure offer long-term asset duration and cash flows
that match the profile of pension funds' long-term liabilities."

In response to the shift towards alternative AUM, some
traditional fund managers have been acquiring alternative asset-
management expertise. In Moody's view, this gives them a
strategic advantage, as building alternative asset-management
expertise organically takes a long time, given the illiquid
nature of and longer holding periods for alternative investments.

Moody's also notes that investment management fees are
significantly higher for alternative asset classes compared to
traditional asset classes. In addition, alternative investment
products offer asset managers performance-based fees while
traditional asset classes do not.

* BOOK REVIEW: Creating Value through Corporate Restructuring
Author: Stuart C. Gilson
Publisher: Wiley
Hardcover: 516 pages
List Price: $79.95
Review by David M. Henderson

Most business books fall into two categories. The first is very
important. It is like that stuff you have to drink before you
have a colonoscopy. You keep telling yourself, this is very
good for me, while you would rather be at the beach reading
Liar's Poker or Barbarians at the Gate.

Stuart Gilson, of the Harvard Business School, has managed to
write a book important to everybody in the distressed market
that is also quite enjoyable. His prose is fluid and succinct
and a pleasure to read. But don't take my word for it. The
dust jacket endorsements come from Jay Alix, Martin Fridson,
Harvey Miller, Arthur Newman, and Sanford Sigoloff. At a
collective gazillion dollars a billing hour, that's a lot of

Be advised that this is designed as a text book. The case study
format might be off-putting to some. The effect can be jarring
as you read the narrative history of the case and suddenly
confront the financial statements without any further clue as to
what to do, but this must be what it is like for the turnaround
manager. Even after reading several of the cases, when I got to
the financials I had that sinking feeling of, what do I do now?
If you read carefully, clues to the solutions are in the

The book is divided into three "modules", bizspeek for sections:
Restructuring Creditors' Claims,. Restructuring Shareholders'
Claims, and Restructuring Employees' Claims. The text covers 13
corporate restructurings focusing on debt workouts, vulture
investing, equity spinoffs, tracking stock, assete divestitures,
employee layoffs, corporate downsizing, M & A, HLTs, wage
givebacks, employee stock buyouts, and the restructuring of
employee benefit plans. That's a pretty comprehensive survey,
wouldn't you say?

Dr. Gilson's chapter on "Investing in Distressed Situations" is
an excellent summary of the distressed market and a good
touchstone even for seasoned vultures.

Even in the two appendices on technical analysis, this book is
marvelously free of those charts and graphs that purport to show
some general ROI of distressed investing. Those are cute,
aren't they? As Judy Mencher has famously said, "You can buy
the paper at 50 thinking it's going to 70, but it can just as
easily go to 30 if you are not willing to act on it." Therein
lies the rub and the weakness, if inevitable, of this or any
book on corporate restructurings. As Dr. Gilson notes, no two
are alike, and the outcome is highly subjective, in our out of
Court, but especially in Chapter 11. Is the Judge enthralled by
Jack Butler as Debtor's Counsel or intimidated by Harvey Miller
as Debtor's Counsel? Are you holding "secured" paper only to
discover that when it was issued the bond counsel forgot to
notify the Indenture Trustee of the most Senior debt? Is
somebody holding Junior paper that you think is out of the money
only to have Hugh Ray read the fine print and discover that the
"Junior" paper is secured? This is the stuff of corporate
reorganizations that is virtually impossible to codify into a

That said, this is an especially valuable text for anybody
working in the distressed market. As a Duke grad, I tend to be
disdainful of all things Harvard, but having read Dr. Gilson's
book, I am enticed to encamp by the dirty waters of the Charles
long enough to take his course, appropriately entitled,
"Creating Value Through Corporate Restructuring."


Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR 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 constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  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.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through  Go to order any title today.


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-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, Ivy B. Magdadaro, and Peter A. Chapman,

Copyright 2014.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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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 Europe 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 Chapman at 215-945-7000 or Nina Novak at

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