/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/150108.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 Thursday, January 8, 2015, Vol. 16, No. 005 Headlines A U S T R I A HYPO ALPE-ADRIA: Heta Bonds Drop on Likely Insolvency Filing F R A N C E RENAULT SA: Fitch Corrects November 10 Rating Release G E R M A N Y SCHERER & TRIER: Samvardhana Motherson Buys Assets for EUR36MM N E T H E R L A N D S HALFORDS NETHERLANDS: Inventory Put Up for Auction P O L A N D * POLAND: Almost Half of Credit Unions at Risk of Bankruptcy R O M A N I A HIDROELECTRICA SA: Might Go Public in The First Half of 2015 OLTCHIM SA: Administrators to Present Reorganization Plan in Feb. S L O V E N I A T-2: Si.Mobil Mulls Acquisition U N I T E D K I N G D O M BANCO ESPIRITO: British Regulators Impose Fine on Former Unit CATERHAM FORMULA ONE: Time Running Out for Firm to Find Buyer CHEMICAL RECORDS: Makes Statement on Administration & Closure GLOBAL MOVING: Items Lost as Firm Enters Liquidation VEDANTA RESOURCES: S&P Puts 'BB' CCR on CreditWatch Negative WOODBURY CONSTRUCTION: Owes More Than GBP13 Million YORK CITY SCHOOL: Receivership Appeal to be Ruled on Next Week ********* ============= A U S T R I A ============= HYPO ALPE-ADRIA: Heta Bonds Drop on Likely Insolvency Filing ------------------------------------------------------------ John Glover at Bloomberg News reports that bonds of the company created to sell assets of Hypo Group Alpe Adria AG slumped after Austria's Der Standard newspaper reported the government may consider putting it into insolvency. Hypo Alpe was split into a Balkan banking unit and a "bad bank" known as Heta Asset Resolution AG last year, after the lender collapsed under the weight of soured loans and was nationalized, Bloomberg discloses. Heta has about EUR11 billion (US$13.5 billion) of bonds guaranteed by the Austrian state of Carinthia outstanding, according to the government. Heta's EUR2 billion of 4.375 percent bonds due January 2017 fell almost 10 cents on the euro to 66.75 cents and now yield more than 27 percent. Its 4.25 percent notes maturing in October 2016 also plunged, down 11.8 cents on the euro to a record 65.58 cents. "There's the possibility of early insolvency, which would mean bondholders risk getting a haircut," Robert Montague, a senior analyst at ECM Asset Management in London, which doesn't own the bonds, Bloomberg relays. "For investors, a gradual wind-down was the preferred option and until this weekend that seemed to be what they were doing." Filing for insolvency may be a cheaper option for the Austrian government, who have already had to inject about EUR5.5 billion to prop up the bank, Der Standard reported, citing a person close to bank supervisors it didn't identify, according to Bloomberg. Bloomberg recalls that Hans Joerg Schelling, Austria's finance minister, said Dec. 3 the ministry will revisit its strategy for dealing with Heta when a new asset review is concluded. A spokeswoman for the finance ministry said Dec. 22 the ministry's stance hadn't changed, without providing details, adds Bloomberg. About Hypo Alpe-Adria 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. Hypo Alpe received EUR1.75 billion in aid in emergency capital from the Austrian government. European Union Competition Commissioner Joaquin Almunia said in March 2013 that Hypo Alpe faced possible closure for failing to adequately restructure. The European Commission approved Hypo's recapitalization in December 2013, but made it conditional on the management presenting a thorough plan to overhaul the group. The Austrian finance ministry, which effectively runs Hypo Alpe, submitted a restructuring plan to the Commission on Feb. 5, 2013. On Sept. 3, 2013, the Commission cleared Hypo Alpe's restructuring plan, which includes the sale of the bank's Austrian unit and Balkans banking network and the winding-down of non-viable parts. It also approved additional aid to wind down the bank. As reported in the Troubled Company Reporter-Europe on Nov. 3, 2014, The Wall Street Journal said Austria's nationalized lender Hypo Alpe-Adria-Bank International AG said on Oct. 30 it has split itself between a wind-down unit, called Heta Asset Resolution GmbH, and its southeastern European network of banks. The split is part of the lender's restructuring plan approved by the European Commission, the Journal disclosed. According to the Journal, under the plan, the Austrian government -- Hypo Alpe- Adria's current owner -- must sell off all of the bank's assets or transfer them into a wind-down unit by mid-2015. =========== F R A N C E =========== RENAULT SA: Fitch Corrects November 10 Rating Release ----------------------------------------------------- Fitch Ratings has issued a correction to its November 10, 2014 rating release on Renault SA. Fitch upgraded Renault's Long-term Issuer Default Rating (IDR) and senior unsecured rating to 'BBB-' from 'BB+'. The Outlook on the Long-term IDR is Stable. The upgrade reflects the resilience of Renault's profitability and underlying cash generation in a difficult and adverse environment, notably for volume manufacturers. Group operating margins increased to more than 3% in 2013 and Fitch expects further improvement in the medium term, including a further strengthening of core automotive operations. Fitch believes that Renault's bold restructuring measures have streamlined its cost structure, lowered its breakeven point and made it more resistant to a possible sharp downturn in one or several of its markets. Automotive operating margins and free cash flow (FCF) have remained positive since 2008, including between 2011 and 2013 when revenue and profitability declined. The ratings also reflect Renault's significantly improved liquidity and balance sheet. Adjusted net leverage has declined continuously since end-2009, to less than 0.5x at end-June 2014 and Fitch expects a further improvement towards 0x in the next couple of years. The group's sound liquidity and healthy financial structure provide it with more flexibility to go through the next cyclical downturn or to face potential financial challenges without significantly impairing its key credit ratios. KEY RATING DRIVERS Stronger Credit Metrics Net financial debt has fallen substantially since 2009 as a result of positive FCF and asset sales, while earnings and funds from operations (FFO) rebounded in the same period. Adjusted net leverage has declined continuously since end-2009, from 5.6x, to less than 0.5x at end-June 2014 and this provides the group with more flexibility to go through the sector's next cyclical downturn. Weak but Improving Mix Renault's sales retain a bias towards Europe, in particular to weaker Southern markets such as Spain, Italy and France, where the eurozone debt crisis has had the most impact on new car sales. However, ongoing and successful diversification has led to a growing share of sales outside Europe. Renault also derives the majority of its revenue from the less profitable small- and medium-sized car segments, where competition is fiercest and price pressure is strongest. Entry-Level Models Success The success of the growing entry range is pivotal in compensating for the sales declines of the core Renault models, and also favors geographical diversification. In addition, the profitability of the entry range is higher than the automotive average and therefore bolsters group operating profit. Healthy Liquidity Liquidity is healthy, including EUR10.5 billion of readily available cash and liquid investments for industrial operations at end-2013, according to Fitch's adjustments for minimum operational cash of about EUR1.2 billion and not readily available financial assets. In addition, total committed credit lines of EUR7.4 billion, including EUR4.1 billion at RCI Banque, were undrawn at end-June 2014. RATING SENSITIVITIES Future developments that may, individually or collectively, lead to positive rating action include: -- Further diversification outside of Europe. -- Sustainable improvement in profitability, in particular group operating margin above 5% and auto operating margin above 4%. -- Sustainable improvement in financial metrics, including net adjusted leverage below 0.5x and CFO on total adjusted debt above 50%. -- Successful and profitable introduction of a premium model range. Future developments that may, individually or collectively, lead to negative rating action include: -- Deteriorating profitability, including auto operating margin remaining below 1.5%, group operating margin below 3% and FCF margin below 1%. -- Deterioration of key credit metrics, including net adjusted leverage above 1.5x and CFO/adjusted debt below 35%. ============= G E R M A N Y ============= SCHERER & TRIER: Samvardhana Motherson Buys Assets for EUR36MM -------------------------------------------------------------- Richard Higgs at European Plastics News reports that Indian auto components group Samvardhana Motherson announced it is buying the assets of insolvent Scherer & Trier (S & T). The report relates that the EUR36 million acquisition, that includes the takeover of two S & T manufacturing plants in Michelau, Germany and Puebla in Mexico, will further consolidate "the polymer business of Motherson Sumi Systems Ltd. (MSSL) in Europe and North America", it said. The firm was forced to file for bankruptcy in March 2014, although still attracting orders, after a financing deal failed, the report notes. In administration, S & T continued manufacturing and a new chief executive, Rolf Graf was appointed. The insolvency administrator Joachim Exner has boosted productivity and efficiency after introducing systematic restructuring measures, according to European Plastics News. Meanwhile, the administrator continued to negotiate with potential investors and finally concluded the sale of the company's assets, the report says. European Plastics News relates that the business has seen its financial situation improve in recent weeks, attracting new direct orders worth about EUR110 million and almost EUR200 million in ongoing development contracts. "S & T is a company with strong technological know-how and a well established product line ... the significant synergies between Scherer & Trier's products and SMRP BV. will now allow Motherson to offer a more diversified range of polymer products to its customers," the report quotes the Indian group chairman V.C.Sehgal as saying. SMRP BV., based in the Netherlands, is the MSSL European offshoot making the acquisition for the group, the report discloses. European Plastics News adds that the deal, which is still subject to official antitrust regulatory approvals, is due for completion in January 2015. Michelau-based Scherer & Trier injection moulds, extrudes and finishes vehicle parts and profiles and specialises in co- extrusion and multi-component injection moulding. It supplies interior and exterior components and also integrates metals with plastics to form hybrid parts. S & T, which recorded annual sales of EUR240 million in 2013, manufactures products for global automotive customers including Audi, Daimler, BMW, Ford, Volkswagen and General Motors. ===================== N E T H E R L A N D S ===================== HALFORDS NETHERLANDS: Inventory Put Up for Auction -------------------------------------------------- Jack Oortwijn at Bike Europe reports that the inventory of Halfords Netherlands has been put for auction. According to Bike Europe, the auction was set to start on Jan. 7. The inventory includes the stock in bicycles, e-bikes, P&A for bikes as well as for cars of about 60 closed Halfords stores, Bike Europe discloses. BVA Auctions organizes online auctions for the Halfords stores located in Baarn, The Hague, Helmond, Houten, IJmuiden, Maastricht, Rotterdam, Veenendaal, Weert and Zevenaar, Bike Europe relays. Clearance sales at the Halfords stores in Amsterdam, Veenendaal, Zaandam and Zwijndrecht are taking place inside the stores, Bike Europe relates. Halfords NL operated completely independent from Halfords UK; the biggest bike retailer in the UK. =========== P O L A N D =========== * POLAND: Almost Half of Credit Unions at Risk of Bankruptcy ------------------------------------------------------------ Henry Foy at The Financial Times reports that almost half of Poland's credit unions are close to bankruptcy, as a collapse in the sector's financial health strains the country's banking bailout fund. According to the FT, of the 55 credit unions -- known as SKOKs in Poland -- that were operating 12 months ago, two have been declared bankrupt, two have been bought by banks in fire sales, and two have been forcibly merged. The Polish regulator Komisja Nadzoru Finansowego (KNF) has begun investigations into a further 24 it considers to be bankruptcy risks, the FT relays. While credit unions account for only 1.2% of banking assets in the EU's sixth largest economy, the sector's poor health is a worry for both Polish regulators, which promote the financial industry as one of the most robust in Europe, and traditional banks, which must foot the restructuring bill, the FT notes. The KNF estimates that the capital shortage in the credit union industry stands at about US$420 million, the FT discloses. The sector's two bankruptcies have used up about 25% of Poland's banking guarantee fund, which became responsible for credit unions in November 2013 and relies heavily on contributions from mainstream banks, the FT says. The fund, as cited by the FT, said it expected its reserves to be replenished only by the end of 2015. The KNF has instigated reform procedures at 44 SKOKs to explore potential restructuring or sale to a commercial bank, the FT relates. ============= R O M A N I A ============= HIDROELECTRICA SA: Might Go Public in The First Half of 2015 ------------------------------------------------------------ Balkans.com reports that Hidroelectrica S.A. might go public in the first half of 2015, after having had to postpone its initial public offering scheduled for June 2014 due to the relapse into insolvency. Balkans.com notes that the initial public offering of electricity supplier and distributor Electrica which took place this year raised RON1.95 billion (EUR444 million) from selling a 51 percent stake on the capital market. It was the biggest IPO in the history of the Bucharest Stock Exchange (BVB). Other companies in the energy sector, such as Nuclearelectrica and Romgaz, went public in 2013. Balkans.com notes that the hydroelectricity producer reported a RON124 million profit in October. For the first ten months of the year the company, still under an insolvency reorganization plan, posted a profit of RON943 million, up 23.64 percent compared to the same period of 2013. About Hidroelectrica S.A. Hidroelectrica S.A. is a state-run hydropower producer. It entered the insolvency process on June 20, 2012, in order to be re-organized. Euro INSOL was appointed the judicial administrator. On March 31, 2013, Hidroelectrica had some 4,900 employees, down from over 5,200 recorded when the company entered the insolvency process. Hidroelectrica managed to exit insolvency in June 2013. The company re-entered insolvency in March 2014 after several energy traders have won the appeal at the Bucharest Appeal Court against the decision of former trustee company of not recognizing their receivables worth RON1.3 billion, the Troubled Company Reporter-Europe, citing The Diplomat, reported on March 5, 2014. As reported by The Troubled Company Reporter-Europe on May 30, 2014, Reuters related that Remus Borza, Hidroelectrica's manager, said the company will likely exit insolvency in May or June 2015, then carry out a stock market listing in the second half of that year. The company was first forced into insolvency in 2012 by a severe drought and a string of loss-making contracts, under which it sold the bulk of its output below market prices, causing losses of US$1.4 billion over six years, Reuters disclosed. OLTCHIM SA: Administrators to Present Reorganization Plan in Feb. ----------------------------------------------------------------- Ziarul Financiar reports that RomInsolv and BDO Business Restructuring, the administrators of Oltchim SA, will present the insolvent company's reorganization plan in February. According to Ziarul Financiar, the plan will be approved by March 7, excluding a potential bankruptcy. Oltchim SA is a Romanian chemical company. =============== S L O V E N I A =============== T-2: Si.Mobil Mulls Acquisition ------------------------------- TeleGeography reports that Si.Mobil, the second largest mobile network operator in Slovenia, has confirmed that it is interested in acquiring struggling rival T-2. According to TeleGeography, Si.Mobil CEO Jorg Zeddies told local news portal Finance.si that his firm is waiting for a decision on the move from parent company Telekom Austria. T-2 was forced into bankruptcy in September last year after pressure from creditors, TeleGeography recounts. Two months later, however, the ruling was overturned and control was handed back to T-2 shareholders after Ljubljana's Higher Court decided that it had been wrongly placed in receivership, TeleGeography relays. The company has continued to provide services uninterrupted despite its financial struggles, TeleGeography notes. T-2 is a Slovenian mobile and broadband provider. The company operates 3G mobile networks as well as VDSL/fiber-based broadband internet access, IP telephony and IPTV services. =========================== U N I T E D K I N G D O M =========================== BANCO ESPIRITO: British Regulators Impose Fine on Former Unit ------------------------------------------------------------- Chad Bray at The New York Times reports that British regulators have fined the former investment banking business of the troubled Portuguese lender Banco Espirito Santo for failing to disclose the departure of central staff members from one of its capital markets teams in 2013. According to The New York Times, the regulator said Execution Noble & Company, the London arm of Banco Espirito Santo de Investimento, was fined GBP231,000, or about US$352,000. The company has been suspended from acting as a financial sponsor by the regulator since December 2013, The New York Times relates. By agreeing to settle at an early stage of the investigation, Execution Noble qualified for a 30% reduction in its fine, which could have been as high as GBP330,000, The New York Times notes. In a notice, the regulator, as cited by The New York Times, said that Execution Noble failed to notify the United Kingdom Listing Authority that two-thirds of the 15-person financial sponsors team had left from June to November 2013. The regulator said the listing authority found out about the departures only after inquiring about a news report in November 2013, The New York Times relays. It added that Execution Noble had properly notified the regulator's authorizations department that the individuals had left, but had failed to separately notify its listing arm as required, The New York Times notes. The fine comes less than a month after Haitong Securities of China agreed to acquire Banco Espirito Santo de Investimento for EUR379 million, or about US$453 million, The New York Times states. Portuguese regulators were forced to engineer a rescue of Banco Espirito Santo in August after the bank was undone by its exposure to its struggling corporate parent, Espirito Santo International, The New York Times recounts. About Banco Espirito Santo Banco Espirito Santo is a private Portuguese bank based in Lisbon, Portugal. It is 20% owned by Espirito Santo Financial Group. In August 2014, Banco Espirito Santo had been split into "good" and "bad" banks as part of a EUR4.9 billion rescue of the distressed Portuguese lender that protects taxpayers and senior creditors but leaves shareholders and junior bondholders holding only toxic assets. A total of EUR4.9 billion in fresh capital is being injected into this "good bank", which will subsequently be offered for sale. It has been renamed "Novo Banco", meaning new bank, and will include all BES's branches, workers, deposits and healthy credit portfolios. In August 2014, Espirito Santo Financial Portugal, a unit fully owned by Espirito Santo Financial Group, filed under Portuguese corporate insolvency and recovery code. Also in August 2014, Espirito Santo Financiere SA, another entity of troubled Portuguese conglomerate Espirito Santo International SA, filed for creditor protection in Luxembourg. In July 2014, Portuguese conglomerate Espirito Santo International SA filed for creditor protection in a Luxembourg court, saying it is unable to meet its debt obligations. CATERHAM FORMULA ONE: Time Running Out for Firm to Find Buyer ------------------------------------------------------------- BT Sport reports that the administrator behind the Caterham Formula One racing team believe they have until the end of January to find a buyer if the team is to have any hope of competing in Formula One this year. Negotiations remain ongoing with three credible candidates, although they have been described as "annoyingly slow" by Finbarr O'Connell, administrator at London-based company Smith & Williamson, according to BT Sport. With just four weeks to the first of the three pre-season tests, with Jerez the venue for four days from February 1, and 10 weeks to go ahead of the season-opening grand prix in Australia, time is fast running out, the report notes. Speaking to Press Association Sport, Mr. O'Connell said: "We are in talks with a few people who have the wherewithal if they decided to go ahead, the report relates. "But it's a tough investment decision. Formula One is so expensive and there is not a line of people queueing to get in," the report quoted Mr. O'Connell as saying. "There are only a very limited number of parties who can afford to get into it. One of those interested is a billionaire who would come into F1 for himself and to promote his products, whilst the other two are in the automotive industry," Mr. O'Connell added. Asked whether he remained hopeful a deal could be struck, Mr. O'Connell added: "These people can all do it, and I would like them to move quicker because there is a limited period of time, the report notes. The report relays that Caterham went into administration in October and sat out the races in the United States and Brazil before making all 230 staff redundant. A crowdfunding project that raised GBP2.35 million allowed the team to make the grid at the season-ending race in Abu Dhabi towards the end of November and put themselves back in the shop window, the report notes. With talks still going on between the administrator and potential buyers, creditors for now are playing a patient game whilst they await an outcome, the report adds. CHEMICAL RECORDS: Makes Statement on Administration & Closure ------------------------------------------------------------- Resident Advisor reports that Chemical Records, the former online music and clothing retailer, has revealed the details of its demise, which saw 40 people lose their jobs last March. Chemical Records has published a statement on its Web site that details how the company twice fell into administration before its closure in March 2014, according to Resident Advisor. The music and clothing retailer made the statement on December 21, 2014. Chris Ramsay, a former director of Chemical Records, said that, after a successful decade in online business, the company's growth stalled in 2010, the report notes. Three years on, in May 2013, a dispute with their landlord led to the company entering voluntary administration for the first time, the report relays. Though Mr. Ramsay said he and his directors "screwed up" by moving to new and bigger premises at a time when growth was stalling, he said the blame lies with the two companies handling the administration period, accountancy firm RSM Tenon and Barclays bank. The report notes that Mr. Ramsay said when the company emerged from administration in September 2013, they "realized the extent of what RSM Tenon and Barclays had done." A missed payment in February 2014 saw Chemical Records enter administration for a second time. A month later, Mr. Ramsay said, "all of the staff were informed that they no longer had jobs and the company was closed." This meant 40 people lost their jobs. Mr. Ramsay said Barclays and Baker Tilly, the accountancy firm that bought RSM Tenon in 2013, are currently "trying to pursue us into bankruptcy to claim back the money that they would have been paid by now," the report notes. A full text copy of the company's statement is available at: http://is.gd/SkbtZx GLOBAL MOVING: Items Lost as Firm Enters Liquidation ---------------------------------------------------- Nicholas Jones at The New Zealand Herald reports that a Hamilton family has lost valuable belongings after Global Moving Systems (GMS), an international moving company, hit the wall. Repeated phone calls and inquiries by Deirdre Hearmon, 47, have returned no clues as to where her family's 50 boxes of items might be, the report says. The Herald relates that Mrs. Hearmon moved with her husband, Doug, and son Alistair, 11, to New Zealand from the United Kingdom about 10 years ago. She and Alistair went back to England last year to care for her mother, who died from cancer in May, aged 72. When Alistair broke from school in July, they arranged for items to be shipped home to New Zealand by GMS. After landing in August, they paid the rest of the 1,300 ($2600) cost to GMS and were told their belongings would be shipped on September 22, and would arrive in about five weeks. After that, they heard nothing. The GMS website was taken down, and Mrs. Hearmon was alerted to media on the company's impending liquidation, and other customers' missing items, according to the Herald. GMS representatives could not be reached by the Herald but last month, managing director James Wood told Britain's Daily Telegraph the company would be put into liquidation. According to the Herald, the British Association of Removers and third-party shipping companies have arranged for some customers to have goods delivered, but they've had to pay those companies again to release their belongings and then chase up GMS representatives for a refund. Mrs. Hearmon, a primary school teacher who lives in Tamahere on Hamilton's outskirts, has contacted GB Liners, who have taken over many of the deliveries, but it has no confirmed record of her own shipment, the Herald relates. "Their feeling is it's probably in New Zealand but no one has [told] us," the report quotes Mrs. Hearmon as saying. Mrs Hearmon is trying to contact all shipping companies to try and trace the belongings, which include things her late mother set aside for her to keep, the report adds. Global Moving Systems Ltd is an international moving company based in East Sussex, England. VEDANTA RESOURCES: S&P Puts 'BB' CCR on CreditWatch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services placed its 'BB' foreign currency long-term corporate credit rating on Vedanta Resources PLC and its 'BB' long-term issue ratings on the company's guaranteed notes and loans on CreditWatch with negative implications. Vedanta is a London-headquartered oil and metals company with most of its operations in India. "We placed the ratings on CreditWatch because Vedanta's cash flows are likely to be weaker in fiscals 2016 (year ending March 31) and 2017 than we previously expected because of falling oil prices," said Standard & poor's credit analyst Mehul Sukkawala. Standard & Poor's recently lowered its assumptions for Brent crude oil price to US$70-US$75 a barrel for 2015-2016. S&P believes the recovery of Vedanta's weak financial ratios could therefore be materially delayed. The weaker performance of Vedanta's oil business is likely to offset the benefits from an improvement in the company's aluminum business, higher zinc volumes and prices, and the company's better conversion margins in its copper business. S&P expects the oil business under Vedanta's indirect subsidiary Cairn India Ltd. to remain the largest EBITDA contributor (at about 40%) to the group. The improvement in Vedanta's aluminum business can be significantly more than S&P's expectation if the company receives statutory approval, and improves access to coal for its power plants and to power for its smelters. The company could then ramp up aluminum production and benefit from higher prices for physical delivery of the metal than prices on the London Metals Exchange. Vedanta could also benefit from the Indian government's proposed auction of coal mines. S&P believes Vedanta's ratio of funds from operations to debt will fail to meet S&P's expectation of more than 12% in fiscal 2016 and 15% in fiscal 2017, from about 10% in fiscal 2014, unless prospects for the company's aluminum business improve significantly. "We aim to resolve the CreditWatch within the next 90 days after we meet management to review Vedanta's plans to address the adverse impact on cash flows from falling oil prices," said Mr. Sukkawala. "We will also review the status of the statutory approval for Vedanta and the company's success in the coal mine auction in India." Statutory approval and Vedanta's success in the coal auctions have the potential to significantly improve the company's aluminum business over the next one to two years and offset the impact of weaker oil prices. This could therefore be a key determinant on whether S&P lowers or affirms the rating. WOODBURY CONSTRUCTION: Owes More Than GBP13 Million --------------------------------------------------- John Campbell at BBC News reports that Woodbury Construction, which was put into administration by investment firm Cerberus, had debts of more than GBP13 million and assets of less than GBP2 million. The details are in a statement of affairs filed by Irvinestown- based Woodbury Construction's directors, BBC notes. According to BBC, Woodbury Construction's assets are listed as land and property in Omagh, Dunmurry, Belfast and Irvinestown. Cerberus took control of its loans as part of a GBP1 billion deal to buy Nama's NI loan portfolio in 2014, BBC recounts. The statement of affairs indicates that Cerberus is managing the Northern Ireland loans through a firm called Promontoria Eagle, BBC discloses. Woodbury Construction is a housebuilding firm. YORK CITY SCHOOL: Receivership Appeal to be Ruled on Next Week -------------------------------------------------------------- Mollie Durkin at York Dispatch reports that a court ruling on the York City School District's appeal of receivership will have to wait until next week. York County President Judge Stephen P. Linebaugh held a hearing on the appeal Jan. 6, a week and a half after granting the state Department of Education's petition to appoint David Meckley as the school district's receiver, according to York Dispatch. The report notes that Mr. Meckley has served as the district's chief recovery officer for about two years. For several months, he has been advocated for a full conversion of the district's eight schools to operation by Charter Schools USA, a for-profit charter company, the report relates. The appeal has been filed by Marc Tarlow, an attorney representing the district, challenging Mr. Linebaugh's decision and is pushing for a stay that would prevent Mr. Meckley from officially becoming the receiver until the appeals process is finished, the report says. Clyde Vedder, attorney for the state Department of Education, however has argued that the district has no authority to appeal and that only the directors of the school board may file appeals, York Dispatch discloses. "Which, as we pointed out in our motion, they have not done," the report quoted Mr. Vedder as saying. The report relays that Mr. Linebaugh said he is "somewhat troubled" by the assertion that an entity affected by a decision has no right to appeal. Mr. Linebaugh has instructed the attorneys to turn in any additional memorandums by Friday, January 9, and said he will rule on the motions early next week. That process could lead to an evidentiary hearing, where evidence would be presented to the court in order to reach a decision, Mr. Linebaugh added. ********* 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 2015. 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 202-362-8552. * * * End of Transmission * * *