/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/140528.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 Wednesday, May 28, 2014, Vol. 15, No. 104 Headlines B U L G A R I A BDZ: To Put Up Railcars & Non-Operating Wages to Repay Debts I R E L A N D IRISH BANK: Ex-Chairman to Exit Bankruptcy Process in June R O M A N I A DINAMO BUCHAREST FC: Files for Insolvency LEONARDO: Mulls Asset Sale to Repay Creditors U N I T E D K I N G D O M BUTLER TANNER: In Administration, 100 Jobs at Risk ENDO INT'L: June 5 Hearing Set for Capital Reduction Petition EVANCE: Ecotricity Buys Firm Out of Administration FALLEN HERO: In Administration, Runs Asset Sale HOBSON & BATES: Bought Out of Administration After Failed CVA MUSTANG MARINE: Investors Buys Firm Out of Administration ORTAK: To Return to High Street After Administration Sale PENTAGON PROTECTION: Lack of Short-Term Financing May Prompt CVA PHARMACY PLUS: In Administration, Cuts 240 Jobs PUNCH TAVERNS: Mulls Debt-for-Equity Swap Under Debt Plan ********* =============== B U L G A R I A =============== BDZ: To Put Up Railcars & Non-Operating Wages to Repay Debts ------------------------------------------------------------ SeeNews reports that BDZ said on Monday creditors will put up for sale railcars and non-operating wagons owned by BDZ to cover overdue payments. "Considering that no final agreement has been reached so far on rescheduling BDZ Holding's second bond loan, the bondholders approved the launch of a procedure for the sale of company assets which have been placed as a collateral on the credit," the company, as cited by SeeNews, said in a press release after an extraordinary meeting of creditor banks on the bond loan. A BDZ press officer told SeeNews that BDZ owes BGN74 million (US$104.6 million/EUR76.7 million) in overdue payments to holders of a EUR120 million bond loan and another BGN74 million to Germany's KfW IPEX-Bank. BDZ's current liabilities amount to BGN605 million, SeeNews discloses. The press officer said that BDZ has placed 25 diesel railcars and over 5,000 wagons as a collateral on the EUR120 million bond loan, SeeNews notes. She said that the company has made no payments on the bond during the 2010-2012 period, SeeNews relays. A transport ministry spokesperson told SeeNews on Monday that BDZ plans to cut its debt by BGN50 million by the end of 2014. Established in 1885, The Bulgarian State Railways, commonly known as BDZ, is Bulgaria's state railway company and the largest railway carrier in the country. The company's headquarters are located in the capital Sofia. ============= I R E L A N D ============= IRISH BANK: Ex-Chairman to Exit Bankruptcy Process in June ---------------------------------------------------------- The Irish Times reports that former Anglo Irish Bank chairman Sean FitzPatrick will exit the bankruptcy process early next month. Mr. FitzPatrick was adjudicated bankrupt by the High Court almost four years ago under laws which meant he could have expected to remain a bankrupt for up to 12 years, The Irish Times notes. According to The Irish Times, under new insolvency laws introduced last December, the duration of bankruptcy has been cut to three years, with the effect that bankrupts such as Mr. FitzPatrick can emerge from bankruptcy once the Official Assignee is satisfied they have fully co-operated with the process. Mr. FitzPatrick is to exit the process in June, The Irish Times discloses. On Monday, when Mr. FitzPatrick's bankruptcy was briefly mentioned in the High Court, Mr. Justice Brian McGovern granted orders allowing an interim payment of EUR1,605,667 out of the estate to the Revenue Commissioners, a preferential creditor, The Irish Times relates. Following his adjudication, Mr. FitzPatrick provided a statement of affairs in 2010 stating he had debts of EUR145 million, mostly owed to financial institutions, including Anglo, and assets of some EUR47 million, The Irish Times relays. About Irish Bank Resolution Irish Bank Resolution Corp., the liquidation vehicle for what was once one of Ireland's largest banks, filed a Chapter 15 petition (Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect U.S. assets of the former Anglo Irish Bank Corp. from being seized by creditors. Irish Bank Resolution sought assistance from the U.S. court in liquidating Anglo Irish Bank Corp. and Irish Nationwide Building Society. The two banks failed and were merged into IBRC in July 2011. IBRC is tasked with winding them down and liquidating their assets. In February, when Irish lawmakers adopted the Irish Bank Resolution Corp., IBRC was placed into a special liquidation in the Irish High Court to complete liquidation and distribution of the two banks' assets. IBRC's principal asset as of June 2012 was a loan portfolio valued at some EUR25 billion (US$33.5 billion). About 70 percent of the loans were to Irish borrowers. Some 5 percent of the portfolio was under U.S. law, according to a court filing. Total liabilities in June 2012 were about EUR50 billion, according to a court filing. Most assets in the U.S. have been sold already. IBRC is involved in lawsuits in the U.S. IBRC was granted protection under Chapter 15 of the U.S. Bankruptcy Code in December 2013. Kieran Wallace and Eamonn Richardson of KPMG have been named the special liquidators. ============= R O M A N I A ============= DINAMO BUCHAREST FC: Files for Insolvency ----------------------------------------- Inside Football reports that the Dinamo Bucharest Football Club has filed for insolvency. According to the report, owner Ionut Negoita issued a statement saying: "I searched for all possible solutions and I hoped until the very last moment but a new debt of several million lei came out of nowhere. Our conclusion is that (filing for insolvency) is the only solution at the moment." An administrator is expected to take over management of the club which enjoys the support of an estimated 16.3% of Romanian football fans, the report relates. The report recalls that Dinamo was decimated in 1989 when practically the whole team went abroad following the Romanian revolution. In recent years, Romanian football has been hit by bankruptcies and a recent transfer scandal which has seen numerous officials imprisoned for corruption and tax evasion over the handling of transfer fees from foreign clubs as players are sold with the bulk of the fees ending up in off-shore accounts instead of going to the selling clubs, the report notes. After a long-running prosecution, former executive chairman of Dinamo Cristian Borcea failed in his appeal in March, being sentenced to six years and four months in prison without parole for tax evasion in the transfer of players whilst former Dinamo sponsor Gigi Netoiu was also sentenced to three years and four months, the report relays. Dinamo Bucharest is Romania's second most popular football club. LEONARDO: Mulls Asset Sale to Repay Creditors --------------------------------------------- Ecaterina Craciun at Ziarul Financiar, citing a proposition to change Leonardo's reorganization plan, reports that the company plans to sell some of its assets or shares and to enter new markets to be able to pay off its debts to creditors. The company is currently undergoing insolvency, Ziarul Financiar discloses. Leonardo is a Romanian footwear retailer. =========================== U N I T E D K I N G D O M =========================== BUTLER TANNER: In Administration, 100 Jobs at Risk -------------------------------------------------- Frome Times reports that over 100 members of staff at Frome company Butler Tanner & Dennis have been told by Chief Executive Officer Gerald White that their jobs are at risk after the company went into administration. "After spending months considering the future of the business, various lease options for our existing site and searching for alternative appropriate premises from which to print, we have unfortunately been left with no option but to put Butler Tanner & Dennis Ltd into administration," the report quoted Mr. White as saying. "We very much regret the impact this will have on our loyal staff and customers and the community of Frome. The maps operation will continue to trade while the directors consider the future of that business including where the operation can be sited and as a result, we hope that some jobs will be preserved," Mr. White said, the report notes. The report discloses that the directors of Butler Tanner & Dennis Ltd will now appoint Richard Rones of Thornton Rones as administrator following court approval and will be informing customers, suppliers, creditors, debtors and other third parties shortly of what happens next. Butler Tanner & Dennis is a company on Claxton Road that specialize in the production of color books, fine art printed projects, brochures, high end magazines and marketing literature. ENDO INT'L: June 5 Hearing Set for Capital Reduction Petition ------------------------------------------------------------- The Petition presented to the High Court by Endo International plc on May 27, 2014 for an application seeking the High Court's confirmation of a reduction of the Company's capital pursuant to Sections 72 and 74 of the Companies Act 1963 (by the cancellation from the Company's share premium account the amount of US$11,800,000,000 or such other amount as the High Court may determine so that the reserve resulting from such reduction be treated as profits available for distribution as defined by Section 45 of the Companies (Amendment) Act, 1983), is directed to be heard on Thursday, June 5, 2014 at 11:00 a.m., or at the first opportunity thereafter, before the Irish High Court (Commercial), Four Courts, Inns Quay, Dublin 7, Ireland. Any member of creditor who wishes to attend and be heard at the hearing of the Petition is required to notify the Company's Solicitors, from whom copies of the Petition and grounding Affidavit may be obtained at the specified address, of their intention to do so and file any Affidavit upon which they propose to reply by 5:00 p.m. on Tuesday, June 3, 2014. Copies of the Petition and grounding Affidavit may be obtained at: A&L Goodbody Solicitors International Financial Services Centre North Wall Quay Dublin 1 Ireland EVANCE: Ecotricity Buys Firm Out of Administration -------------------------------------------------- Wiltshire reports that Britain's leading green energy company Ecotricity has bought small wind firm Evance out of administration -- ensuring vital expertise is retained and green technology comes to market in the next 12 months. Evance have an innovative new windmill design 90% of the way through development and nearing the production stage, following the manufacture and supply of almost 2,000 of smaller windmills -- between 10-20m tall -- to Britain and locations across the globe from the USA and Madagascar over the past decade, according to Wiltshire. However, the report notes that with Government increasing the anti-wind rhetoric ahead of the next election and after cutting Feed-in-Tariffs last month for the second time in the past year, Evance was suddenly placed into administration last month after investors were spooked, Wiltshire relates. The Feed-in-Tariff for small wind turbines 15kW and under received a 20% cut from April 1 this year; a reduction came on top of 37% FiT cut last year that led to an 80% reduction in small wind sales in Britain, the report notes. FALLEN HERO: In Administration, Runs Asset Sale ----------------------------------------------- Scunthorpe Telegraph reports that fashion retailer Fallen Hero's Scunthorpe store has gone into administration. The Cole Street store is currently running a 50 per cent off closing down sale, although further details on its future have not been made public, according to Scunthorpe Telegraph. The company's Gainsborough store closed its doors. Fallen Hero was formerly based on Scunthorpe High Street but moved to its present location in the Parishes shopping center as part of a GBP1 million investment in April 2011, the report notes. The Gainsborough branch opened in the Marshall's Yard shopping complex earlier this year, the report adds. HOBSON & BATES: Bought Out of Administration After Failed CVA ------------------------------------------------------------- John Brazier at Insolvency News reports that Hobson and Bates Shoes Limited has been sold out of administration after a Company Voluntary Arrangement or CVA failed. The company entered administration earlier this month after suffering financial losses as a result of the economic crash, Insolvency News relates. The company also suffered as a result of supplier credit terms being reduced and a general decline in demand for luxury footwear, Insolvency News discloses. Simon Plant and Daniel Plant of SFP Group were appointed as joint administrators to the company on May 8, Insolvency News recounts. Reduced credit terms meant Hobson and Bates was unable to maximize its stock holding, leading to a decline in cash flow, Insolvency News says. A CVA was sought in June 2013, however "ongoing trading conditions" meant the deal could not be achieved, Insolvency News relays. A restructuring of the company was undertaken instead, leading to the closure of one store in Grantham, Insolvency News notes. Hobson and Bates Shoes Limited is a Doncaster-based footwear retailer. MUSTANG MARINE: Investors Buys Firm Out of Administration --------------------------------------------------------- Wales Online reports that the future of Pembroke Dock boat making firm Mustang Marine, which went into administration in March, has been secured after being acquired out of administration by a consortium of individual investors. Joint administrators of Mustang Marine (Wales), Alistair Wardell -- alistair.g.wardell@uk.gt.com -- and Nigel Morris -- nigel.w.arderll@uk.gt.com -- of the Cardiff office of business advisory firm Grant Thornton, have confirmed the sale of the firm's boat building and marine services arms, according to Wales Online. The report notes that the deal secures the future of the 30 staff who were kept on by the administrators after the business was put into administration in March with the loss of 66 jobs. Administrators have also confirmed that they are hopeful of concluding a deal for the dry dock element of the business later this week which would secure a future 10 jobs, the report discloses. The businesses, based at Pembroke Dock, has been purchased by a consortium of nine individuals led by Stewart Graves, the interim managing director put in place to run the company late last year by the Milford Haven Port Authority, the report relates. The consortium will employ the 30 existing staff to continue working on a number of existing projects, including the building of a Tidal Energy Turbine that will be put into service in Ramsey Sound later this year. The value of the deal had not been disclosed. The consortium was advised by the corporate team at Douglas-Jones Mercer and Grant Thornton was advised by Eversheds. Founded in Fishguard in 1984, Mustang Marine (Wales) Limited has been based at Pembroke Dock since 1997 where it has been building and supplying boats for commercial use, including pilot boats, wind farm support vessels, workboats and passenger vessels to customers across the world. ORTAK: To Return to High Street After Administration Sale --------------------------------------------------------- Hanna Sharpe at business-sale.com reports that over a year after entering administration, Scottish jewellery brand Ortak is set to return to the high streets, following the disposal of its assets. Ortak was placed into administration in March last year, and has now recently been sold by the administrators at BDO, after marketing by intellectual property firm Metis Partners, according to business-sale.com. The sale to five partners including Mike Gardens, Alison Firth and her husband Grant, comprises the trademarks, a customer database with 25,000 records, over 10,000 designs, domain names and an e-commerce website, the report notes. The report notes that before entering administration, which was due to financial difficulties relating to the rise in raw materials prices and the recession, Ortak employed 155 people across Scotland. All of the shops closed in the wake of the administration with all staff made redundant, the report relates. To start with the business will take on 14 staff. Founded in 1967, the business grew to 15 branded retail stores in the UK. Its list of wholesale clients includes Amazon, H Samuel and Argos. Numerous stars have helped to promote the business over the years including Myleene Klass and TV presenter Carol Smillie. PENTAGON PROTECTION: Lack of Short-Term Financing May Prompt CVA ---------------------------------------------------------------- StockMarketWire.com reports that Pentagon Protection said following the disposal of SDS Group Ltd. it continues to seek additional short-term financing while also considering potential offers for certain assets or operations of the resultant Group. "Without sufficient additional short-term financing being obtained, or an acceptable offer being received, the Board will likely seek to issue a proposal for a Company Voluntary Arrangement within the next 6 business days," StockMarketWire.com quotes the company as saying in a statement. Cantor Fitzgerald Europe has resigned with immediate effect as the Company's Nominated Adviser and further, Allenby Capital, has resigned with immediate effect as the Company's broker, StockMarketWire.com relates. Shares in the Company will continue to be suspended from trading on AIM until further notice, StockMarketWire.com notes. London-based Pentagon Protection provides Window Film installation and Commercial Window Film Project Management services anywhere in the world. PHARMACY PLUS: In Administration, Cuts 240 Jobs ----------------------------------------------- Health Investor reports that care home and NHS drug supplier Pharmacy Plus, which Elysian Capital has a minority stake in, has gone into administration. Ryan Grant -- rgrant@zolfocooper.eu ; Anne O'Keefe -- aokeefe@zolfocooper.eu ; and Lee Causer -- lcauser@zolfocooper.eu -- of restructuring firm Zolfo Cooper have been appointed joint administrators of the company. The report notes that 240 employees have lost their jobs. "It is with regret that we have had to close the business. A reduction in trading volumes and supplier pressure were at the root of the problem," the report quoted Mr. Grant as saying. "We are working closely with the NHS to seek to ensure minimal disruption to the company's care home customers and to enable them to obtain patient prescriptions from alternative sources," Mr. Grant said, the report relates. Pharmacy Plus was founded by Tariq Muhammad. In December 2013, Muhammad sold a minority stake in the company to private equity house Elysian Capital. Mr. Muhammad retained a 72.5% stake but allowed Elysian to run Pharmacy Plus. PUNCH TAVERNS: Mulls Debt-for-Equity Swap Under Debt Plan --------------------------------------------------------- Tom Freke at Bloomberg News reports that Punch Taverns Plc told shareholders it's considering a debt-for-equity swap as part of a revised plan to restructure about GBP2.3 billion (US$3.9 billion) of bonds. Punch Taverns said in a statement it is also proposing a rights offering that would help reduce borrowings by GBP600 million, Bloomberg relates. According to Bloomberg, the company said that the new plans are backed by creditors that own 34% of the Burton-on-Trent, England- based company's bonds and more than half of its shares. Punch Taverns has 16 classes of notes across two securitizations, known as Punch A and Punch B, operated by independent boards, Bloomberg discloses. Punch Taverns plc is a United Kingdom-based pub company. The Company is engaged in the operation of public houses under either the leased model or as directly managed by the Company. The Company operates in two business segments: punch partnerships, a leased estate and punch pub company, a managed estate. ********* 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. 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 Amazon.com. Go to http://www.bankrupt.com/booksto 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, Editors. Copyright 2014. All rights reserved. ISSN 1529-2754. 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 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 202-241-8200. * * * End of Transmission * * *