/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/150827.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, August 27, 2015, Vol. 16, No. 169 Headlines G R E E C E GREECE: EU Bank Rescue Rules Must Be Flexible, Analysts Say I R E L A N D CAVENDISH SQUARE: Fitch Affirms 'B-sf' Rating on Class C Notes KINTYRE CLO I: S&P Raises Rating on Class E def Notes to B+ K A Z A K H S T A N SAMEK: Almaty Court Accepts Rehabilitation Process L U X E M B O U R G GREIF LUXEMBOURG: Moody's Cuts Rating on EUR200MM Notes to Ba3 PACIFIC DRILLING: Moody's Reviews 'B3' CFR for Downgrade N E T H E R L A N D S NORTH WESTERLY II: S&P Affirms CCC- Ratings on 2 Note Classes R O M A N I A ASTRA: Faces Bankruptcy After Capital-Increase Fails R U S S I A EUROINVEST LLC: Bank of Russia Ends Provisional Administration FONDSERVICEBANK OJSC: Provisional Administration Terminated INVEST-ECOBANK LLC: Provisional Administration Terminated METROBANK JSC: Bank of Russia Halts Provisional Administration RUSSIA: May Need RUR1 Trillion to Prop Up Failing Banks, S&P Says RUSSIAN INSURANCE: Put Under Provisional Administration S W E D E N BRAVIDA HOLDING: Moody's Raises CFR to B1, Outlook Stable U N I T E D K I N G D O M BLU: Edinburgh Site to Close Next Month, 55 Jobs at Risk LIVE MUSIC: Goes Into Liquidation After Hop Farm Axes Event MALCOLM FRASER: Goes Into Liquidation STRABEN DEVELOPMENTS: Office Dev't Placed Into Receivership TELDAFAX GROUP: Bayer Leverkusen Repay Firm's Liquidator ********* =========== G R E E C E =========== GREECE: EU Bank Rescue Rules Must Be Flexible, Analysts Say ----------------------------------------------------------- Huw Jones at Reuters reports that European Union rules to shield taxpayers from having to rescue ailing banks should be applied flexibly because of broader economic imperatives highlighted by the latest Greek rescue package, analysts and lawyers say. That flexibility may mean that European taxpayers cannot be given cast-iron guarantees that they will not be called upon again to bail out banks as during the financial crisis, Reuters says. Euro zone finance ministers this month agreed an EUR86 billion (US$98.6 billion) third aid deal for Greece which includes EUR25 billion for plugging capital gaps at the country's banks, Reuters recounts. The banks' senior bondholders will be "bailed in" -- seeing the value of their investments written down -- but depositors will be protected to avoid harming the wider economy, Reuters notes. It marks a "pick and mix" application of new EU rules that come fully into force in January to ensure that all stakeholders in a bank, from shareholders to creditors and uninsured depositors, contribute to a rescue before public funds can be called on, Reuters states. The risk is that excluding some stakeholders could create a shortfall that taxpayers are once again left to plug, Reuters says. According to Reuters, analysts believe that even if the new EU rules, known as the bank recovery and resolution directive or BRRD, had been in force, euro zone ministers would probably still have chosen to exclude uninsured Greek depositors. The International Capital Market Association, which represents the bond market, warned last month that bail-in complexity may "ultimately impact investor demand and investor behavior, and thereby render bank capital uninvestable", Reuters relays. Lawyers, as cited by Reuters, said that some bank rescues will come down to minimizing the overall economic cost to taxpayers rather than trying to avoid any immediate impact. David Ereira, a banking partner at Linklaters law firm, said there is scope for bank rescues to be conducted on a case-by-case basis rather than rigidly applying the BRRD rules each time to avoid widespread contagion or serious disturbance to the economy, Reuters relates. ============= I R E L A N D ============= CAVENDISH SQUARE: Fitch Affirms 'B-sf' Rating on Class C Notes -------------------------------------------------------------- Fitch Ratings has affirmed Cavendish Square Funding plc's notes, as follows: Class A1 (XS0241540763): affirmed at 'BBBsf'; Outlook Stable Class A2 (XS0241541571): affirmed at 'BBsf'; Outlook revised to Stable from Negative Class B (XS0241542033): affirmed at 'Bsf'; Outlook Negative Class C (XS0241543353): affirmed at 'B-sf'; Outlook Negative Cavendish Square Funding is a cash arbitrage securitization of European structured finance assets, mainly mezzanine RMBS, CMBS and commercial ABS assets of speculative-grade quality. KEY RATING DRIVERS The affirmation reflects adequate credit enhancement (CE) available to the notes to support the current rating stresses. The class A1 notes have continued amortizing, supported by pay- downs mainly from CMBS and RMBS assets in the portfolio, of EUR12.8 million and EUR8.7 million, respectively, between August 2014 and July 2015. As of the July trustee report the outstanding note balance of the class A1 notes was reduced by roughly EUR30 million to 45% of its initial balance The portfolio is highly concentrated in RMBS assets. As per Fitch's calculations RMBS represent 83.7% of the portfolio, up from 75.4% in August 2014, followed by commercial ABS assets at 5.3%. The rest of the portfolio is made up CMBS (4.4%), structured finance CDO (3.22%), consumer ABS (2.9%) and corporate CDO (0.49%). The vast majority of the portfolio consists of mezzanine assets with an original tranche thickness of less than 10%. The portfolio also has significant country concentration. The largest country in the portfolio is the UK with 42.3% of the assets, followed by Spain with 26.4%. Exposure to Greece, Portugal and Spain represents 34.5% of the total portfolio, up from 32% in August 2014 as per Fitch's calculations. Overall, the rating distribution of the portfolio has remained stable. Over the past one year, one asset defaulted, taking current defaults to EUR27.4 million, slightly above the amount reported in August 2014 of EUR24.3 million. The revised Outlook on the class A2 notes to Stable from Negative reflects the increase in credit enhancement available for the notes. RATING SENSITIVITIES In its stress tests, Fitch found that reducing the recovery rate by 25% could lead to the downgrade of the class A2 and C notes by one notch. Increasing the default rate by 25% could lead to the downgrade of the class A2 notes by up to two notches, and the class B and C notes by one notch each. DUE DILIGENCE USAGE No third party due diligence was provided or reviewed in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant Fitch groups and/or other rating agencies to assess the asset portfolio information. Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. KINTYRE CLO I: S&P Raises Rating on Class E def Notes to B+ ----------------------------------------------------------- Standard & Poor's Ratings Services raised its credit ratings on KINTYRE CLO I PLC's class A, B def, C def, D def, and E def notes. The upgrades follow S&P's analysis of the transaction using data from the trustee report dated June 10, 2015, and the application of S&P's relevant criteria. Since S&P's Oct. 14, 2013 review, the class A notes have amortized by 99%. As a result, all of the rated classes of notes have benefited from an increase in par coverage. S&P subjected the capital structure to its cash flow analysis to determine the break-even default rate (BDR) for each class of notes at each rating level. The BDRs represent S&P's estimate of the level of asset defaults that the notes can withstand and still fully pay interest and principal to the noteholders. As a result of the increase in par coverage, S&P believes the rated notes are now able to withstand a larger amount of asset defaults. S&P has estimated future defaults in the portfolio in each rating scenario by applying its corporate collateralized debt obligation (CDO) criteria. S&P's analysis shows that the available credit enhancement for all classes of notes is now commensurate with higher ratings than those previously assigned. Therefore, S&P has raised its ratings on the class A, B def, C def, D def, and E def notes. None of the ratings was capped by the application of S&P's largest obligor or largest industry test (supplemental stress tests that we outline in S&P's corporate CDO criteria). KINTYRE CLO I is a cash flow collateralized loan obligation (CLO) transaction managed by BNP Paribas Asset Management. A portfolio of loans to mainly European speculative-grade corporate firms backs the transaction. KINTYRE CLO I closed in March 2007 and its reinvestment period ended in December 2012. RATINGS LIST KINTYRE CLO I PLC EUR350 mil floating-rate notes Rating Rating Class Identifier To From A XS0290387751 AAA (sf) AA+ (sf) B def XS0290389617 AAA (sf) AA- (sf) C def XS0290389963 AA (sf) A (sf) D def XS0290390110 BBB+ (sf) BB+ (sf) E def XS0290390201 B+ (sf) CCC+ (sf) =================== K A Z A K H S T A N =================== SAMEK: Almaty Court Accepts Rehabilitation Process -------------------------------------------------- Alliance News reports that Max Petroleum PLC on Aug. 25 said its application to conduct a rehabilitation process for Samek, its Kazakhstan-based subsidiary, in order to protect it from its creditors has been accepted by authorities. Toward the end of July, the company said it has started a rehabilitation process under Kazakh law for its Samek International LLP subsidiary, Alliance News relates. The process will provide a framework for Samek to reach an agreement with its creditors on a repayment timetable, Alliance News notes. Max, as cited by Alliance News, said the rehabilitation case has now been opened by the Specialised Inter-District Economic Court of Almaty. Max said all existing court decisions and arbitration awards that have been previously issued against the subsidiary have been suspended and creditors can only claim under the framework established within the rehabilitation process, Alliance News relays. According to Alliance News, Max said outstanding claims that have been suspended include ones sought by trade suppliers and a contractor. "The court will in due course hear the case and decide whether rehabilitation will be approved, thereby commencing the process to agree and implement the rehabilitation plan," Alliance News quotes Max as saying in a statement. The rehabilitation, if approved by the court, will involve a moratorium on creditors' claims, cessation of accrual of penalties and interest on any outstanding debts, as well as suspension of execution of any court and arbitrary judgments, Alliance News discloses. A rehabilitation plan will then be established between the subsidiary and its creditors within three months of a court decision which will set out a fixed timetable for payment of amounts owing to all creditors, Alliance News says. =================== L U X E M B O U R G =================== GREIF LUXEMBOURG: Moody's Cuts Rating on EUR200MM Notes to Ba3 -------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of Greif, Inc. to Ba2 from Ba1. Additional instrument ratings are detailed. Moody's also revised the ratings outlook to negative from stable. Moody's took these rating actions: Greif, Inc.: -- Downgraded Corporate Family Rating to Ba2 from Ba1 -- Downgraded Probability of Default Rating to Ba2-PD from Ba1-PD -- Downgraded US$250 million 7.75% senior unsecured notes due August 2019 to Ba3, LGD5 from Ba2, LGD5 -- Downgraded US$300 million 6.75% senior unsecured notes due February 2017 to Ba3, LGD5 from Ba2, LGD5 -- Affirmed Speculative Grade Liquidity Rating SGL-2 Greif Luxembourg Finance SCA: -- Downgraded EUR200 million 7.375% senior unsecured notes due July 2021 to Ba3, LGD5 from Ba2, LGD5 The ratings outlook is revised to negative from stable. RATINGS RATIONALE The downgrade primarily reflects the deterioration in free cash flow to debt over the last 12 months, the continued weak EBIT margin and the challenging operating and competitive environment. Greif has not met projected expectations and is not expected to improve metrics to a level commensurate with the Ba1 rating category over the horizon. While most of the company's credit metrics deteriorated over the last 12 months, free cash flow to debt and the EBIT margin are especially weak for the rating category. Leverage and interest coverage remain within the rating category. Free cash flow was largely depressed by Greif's failure to cut the dividend payment as operating results deteriorated. The company has been negatively impacted by economic weakness, operational inefficiencies and competition. Operating results were also negatively impacted by restructuring costs, divestitures and currencies. Greif was also negatively impacted by a reduction in shipping related to the decline in oil prices and various onetime items including the disruption of operations in the company's plant in Turkey. While some improvement in operating results is expected over the next 12 to 18 months as the company benefits from various completed and ongoing initiatives in its transformation plan, the improvement is not expected to be sufficient to maintain the Ba1 corporate family rating. The ratings outlook is revised to negative. The negative rating outlook reflects an expectation that Greif will be challenged to improve its weak free cash flow to debt and EBIT margin to a level commensurate with the Ba2 rating category over the next 12 to 18 months. The company's ambitious transformation plan leaves little room for negative variance and the operating and competitive environment is expected to remain challenging over the horizon. The rating could be downgraded if there is a deterioration in credit metrics or the operating and competitive environment or a large debt-financed acquisition. Specifically, the rating could be downgraded if free cash flow to debt fails to improve to over 7.5%, the EBIT margin fails to improve to over 11%, debt to EBITDA increases to over 4.25 times, and/or EBIT to interest remains below 3.5 times. The rating could be upgraded if the company sustainably improves credit metrics with the context of a stable operating and competitive environment. Specifically, the rating could be upgraded if Greif improves free cash flow to debt to at least 9%, the EBIT margin improves to at least 13%, debt to EBITDA remains below 3.5 times, and/or EBIT to interest improves to at over 3.5 times. The principal methodology used in these ratings was Global Packaging Manufacturers: Metal, Glass, and Plastic Containers published in June 2009. Greif, Inc., headquartered in Delaware, Ohio, is one of the leading global industrial packaging products and services companies. Greif produces steel, plastic, fiber and corrugated and multi-wall containers for a wide range of industries. Greif also provides services, such as container lifecycle management and blending, produces containerboard and manages timber properties in North America. For the 12 months ended April 30, 2015, the company generated almost $4.0 billion in revenue. PACIFIC DRILLING: Moody's Reviews 'B3' CFR for Downgrade -------------------------------------------------------- Moody's Investors Service placed the ratings of eleven offshore drilling companies under review for downgrade. The companies under review include, Diamond Offshore Drilling, Inc. (A3), Ensco plc (Baa1), Noble Corporation (Cayman Island) (rated subsidiaries Baa3), Rowan Companies Inc. (Baa3), Transocean Inc. (Ba1 Corporate Family Rating or CFR), Atwood Oceanics, Inc. (Ba2 CFR), Seadrill Partners LLC (Ba3 CFR), Shelf Drilling Midco, Ltd. (Ba3 CFR), Ocean Rig UDW Inc. (B2 CFR), Paragon Offshore plc (B2 CFR), and Pacific Drilling S.A. (B3 CFR). Moody's also affirmed the P- 2 Commercial Paper Ratings for Diamond Offshore and Ensco plc, respectively. RATINGS RATIONALE "The review reflects Moody's concern that offshore drilling contractors will face an extremely challenging operating environment through at least 2017," said Sajjad Alam, Moody's Analyst. "Sustained weak crude oil prices and a steady supply of newbuild rigs will cause significant credit erosion as contracted backlogs, revenues and cash flows continue to fade. Against this macro backdrop, fewer offshore drilling opportunities will be available, resulting in a potentially prolonged period of lower dayrates and fleet utilization." Moody's review will focus on each drilling company's financial flexibility and liquidity, contracted revenue backlog, fleet quality/capability, customer composition, market position, and newbuild capex commitments and contract exposure. Moody's will also consider industry-specific factors such as global offshore rig demand, newbuild supply, rig retirements and potential dayrates within the context of Moody's assumed commodity prices. Crude oil prices showed renewed weakness in July and benchmark Brent prices are down about 30% to $44/barrel (WTI down ~35% to $39/barrel) after briefly stabilizing around the $60-$65/barrel level during May and June, 2015. Moody's expects oil prices to remain volatile and rise minimally through 2017. Upstream capital spending is likely to continue at low levels as producers re-align their respective cost structures to manage through a low and uncertain commodity price environment. Moody's expects lower E&P capital spending will lead to a protracted downturn for the offshore contract drilling industry, which is already struggling with an overcapacity problem and has experienced sharply lower dayrates in 2015 in the context of limited customer contract awards. The full effect of this downturn on offshore drillers' earnings potential and leverage position hasn't been fully revealed because of the long-term nature of offshore drilling contracts. Leverage is expected to increase sharply by the end of 2017 as current drilling obligations are completed or are replaced with lower price contracts. In light of these adverse industry developments and the likely prolonged nature of this challenging operating environment, there is a substantial risk for ratings downgrades. Moody's will conduct an in-depth analysis of each of the specified rated drillers over the next couple of months and reach a rating conclusion based on our view of each company's projected financial performance and ability to navigate this industry downturn. The principal methodology used in these ratings was Global Oilfield Services Industry Rating Methodology published in December 2014. Ratings Under Review for Downgrade: Issuer: Diamond Offshore Drilling, Inc. Senior Unsecured Rating, A3 Outlook, Under Review Issuer: Ensco plc Senior Unsecured Rating, Baa1 Outlook, Under Review Issuer: Ensco International Incorporated Senior Unsecured Rating, Baa1 Outlook, Under Review Issuer: Pride International, Inc. Senior Unsecured Rating, Baa1 Outlook, Under Review Issuer: Noble Corporation (Cayman Island) Backed Senior Unsecured Commercial Paper Rating P-3 Issuer: Noble Drilling Corporation (debt assumed by Noble Holding (U.S.) Corporation) Backed Senior Unsecured Rating, Baa3 Issuer: Noble Holding International Limited Backed Senior Unsecured Rating, Baa3 Backed Senior Unsecured Shelf Rating, (P)Baa3 Outlook, Under Review Issuer: Rowan Companies Inc Senior Unsecured Rating, Baa3 Outlook, Under Review Issuer: Transocean Inc. Corporate Family Rating, Ba1 Probability of Default Rating, Ba1-PD Senior Unsecured, Ba1(LGD4) Outlook, Under Review Issuer: Atwood Oceanics, Inc. Corporate Family Rating, Ba2 Probability of Default Rating, Ba2-PD Senior Unsecured, Ba3(LGD5) Senior Unsecured Shelf Rating, (P)Ba3 Outlook, Under Review Issuer: Seadrill Partners LLC Corporate Family Rating, Ba3 Probability of Default Rating, Ba3-PD Outlook, Under Review Issuer: Seadrill Operating LP Senior Secured Credit Facility, Baa3 Backed Senior Secured Credit Facility, Ba3(LGD3) Outlook, Under Review Issuer: Ocean Rig UDW Inc. Corporate Family Rating, B2 Probability of Default Rating, B2-PD Senior Unsecured, Caa1(LGD6) Outlook, Under Review Issuer: Drill Rigs Holdings Inc. Backed Senior Secured Notes, B3(LGD4) Outlook, Under Review Issuer: Drillships Financing Holding Inc. Backed Senior Secured Credit Facility, B2(LGD3) Outlook, Under Review Issuer: Drillships Oceans Ventures Inc. Backed Senior Secured Credit Facility, B2(LGD3) Outlook, Under Review Issuer: Shelf Drilling Midco, Ltd. Corporate Family Rating, Ba3 Probability of Default Rating, Ba3-PD Senior Secured Credit Facility, B1(LGD5) Outlook, Under Review Issuer: Shelf Drilling Holdings, Ltd. Senior Secured Second Lien Notes, Ba3(LGD3) Outlook, Under Review Issuer: Paragon Offshore plc Corporate Family Rating, B2 Probability of Default Rating, B2-PD Senior Secured Credit Facility, Ba3(LGD2) Senior Unsecured, Caa1(LGD5) Outlook, Under Review Issuer: Pacific Drilling S.A. Corporate Family Rating, B3 Probability of Default Rating, B3-PD Senior Secured Credit Facility, B3(LGD3) Senior Secured Notes, B3(LGD3) Outlook, Under Review Issuer: Pacific Drilling V Ltd. Backed Senior Secured Notes, Caa1(LGD4) Outlook, Under Review Ratings Affirmed: Issuer: Diamond Offshore Drilling, Inc. Senior Unsecured Commercial Paper at P-2 Issuer: Ensco plc Senior Unsecured Commercial Paper at P-2 ===================== N E T H E R L A N D S ===================== NORTH WESTERLY II: S&P Affirms CCC- Ratings on 2 Note Classes ------------------------------------------------------------- Standard & Poor's Ratings Services took various credit rating actions in North Westerly CLO II B.V. Specifically, S&P has: -- Raised its ratings on the class B-1, B-2, and C notes; -- Affirmed its ratings on the class D-1 and D-2 notes; and -- Withdrawn its ratings on the class Q (Comb) and R (Comb) notes. The rating actions follow S&P's analysis of the transaction using data from the trustee report dated June 30, 2015, and the application of S&P's relevant criteria. Balance Current as of CE balance Feb.2014 Current as of Class (EUR mil.) (EUR mil.) CE (%) Feb.2014(% Interest Def. A - 113.48 - 48 6mE+38bp N B-1 0.77 5.40 100 23 5.39% Y B-2 4.45 31.30 100 23 6mE+130b Y C 14.10 14.10 61 13 6mE+240bp Y D-1 6.16 6.56 0 0 10.79% Y D-2 10.45 11.13 0 0 6mE+675b Y Total 35.93 181.97 Notes: CE = (aggregate amount of performing portfolio + principal cash amount + expected recovery on defaulted assets -- tranche amount (including amount of all senior tranches))/aggregate amount of performing portfolio. Def.--Deferrable. Bp--Basis points. 6mE--Six-month Euro Interbank Offered Rate (EURIBOR) S&P subjected the capital structure to its cash flow analysis to determine the break-even default rate (BDR) for each class of notes at each rating level. The BDRs represent S&P's estimate of the level of asset defaults that the notes can withstand and still fully pay interest and principal to the noteholders. S&P has estimated future defaults in the portfolio in each rating scenario by applying its corporate collateralized debt obligation (CDO) criteria. S&P's analysis shows that the available credit enhancement for the class B-1, B-2, and C notes is now commensurate with higher ratings than those previously assigned. S&P has therefore raised its ratings on the class B-1, B-2, and C notes. Deutsche Bank AG (BBB+/Stable/A-2) is the account bank and custodian for the transaction. Deutsche Bank's rating fell below the documented 'A-1' remedy trigger following our latest rating action on June 9, 2015. S&P expects Deutsche Bank to take remedial action within the timeframe indicated in S&P's current counterparty criteria. Failure to take such action may lead to S&P taking negative rating actions on the class B-1 and B-2 notes. Given the high concentration of the portfolio (eight obligors), the application of S&P's largest obligor test (a supplemental stress test that S&P outlines in its corporate CDO criteria) capped its rating on the class C notes at 'BBB- (sf)'. S&P has therefore raised to 'BBB- (sf)' from 'B+ (sf)' its rating on the class C notes. S&P's analysis shows that the available credit enhancement for the class D-1 and D-2 notes remains commensurate with their currently assigned ratings. Consequently, S&P has affirmed its 'CCC- (sf)' ratings on these classes of notes. S&P has withdrawn its ratings on the class Q (Comb) and R (Comb) notes as they have fully repaid their initial rated balances. The notes will continue to receive distributions from their underlying components. Rated Current balance rated as of balance Feb.2014 Rated Current Class (EUR mil.) (EUR mil.) coupon (%) components EUR0.15 mil. of class B-2, EUR1.59 mil. of class D-1, EUR3.03 mil. of sub. Q (Comb) 0.00 1.35 1 notes EUR0.77 mil. of class B-1 and EUR2.89 mil. of R (Comb) 0.00 4.95 3 class D-1 North Westerly CLO II is a cash flow collateralized loan obligation (CLO) transaction that securitizes loans to European speculative-grade corporate firms, and is managed by NIBC Bank N.V. The transaction closed in September 2004 and its reinvestment period ended in September 2010. RATINGS LIST North Westerly CLO II B.V. EUR413.5 mil secured fixed- and floating-rate deferrable interest and subordinated notes Ratings Class Identifier To From B-1 663323AA1 AAA (sf) BBB+ (sf) B-2 663323AB9 AAA (sf) BBB+ (sf) C XS0199134577 BBB- (sf) B+ (sf) D-1 663323AC7 CCC- (sf) CCC- (sf) D-2 XS0199135624 CCC- (sf) CCC- (sf) Q (Comb) XS0199136606 NR BBB+ (sf) R (Comb) XS0199136861 NR A- (sf) NR--Not rated ============= R O M A N I A ============= ASTRA: Faces Bankruptcy After Capital-Increase Fails ---------------------------------------------------- According to Bloomberg News' Andra Timu, Digi24, citing unidentified officials from financial market regulator ASF, reports that Astra cannot avoid bankruptcy after capital-increase attempt failed, while special administrator couldn't find buyer. The Romanian guarantee fund will pay damages for valid insurance policies held by Astra clients and repay those asking for refunds, Bloomberg discloses. Astra is one of Romania's biggest insurers. =========== R U S S I A =========== EUROINVEST LLC: Bank of Russia Ends Provisional Administration -------------------------------------------------------------- Due to the ruling of the Arbitration court of the city of Moscow on August 4, 2015, on forced liquidation of the credit institution Non-bank credit institution Euroinvest (limited liability company) (Bank of Russia Registration No. 3383-K, date of registration - November 5, 2001) and appointment of a liquidator in compliance with Clause 3 of Article 18927 of the Federal Law "On the Insolvency (Bankruptcy)", the Bank of Russia took a decision (Order No. OD-2257, dated August 25, 2015) to terminate from August 26, 2015, the activity of the provisional administration of the Non-bank credit institution Euroinvest (limited liability company), appointed by Bank of Russia Order No. OD-1296, dated June 10, 2015 "On the Appointment of the Provisional Administration to the Moscow-based Non-bank Credit Institution Euroinvest (limited liability company) or NCI Euroinvest Due to the Revocation of Its Banking Licence". FONDSERVICEBANK OJSC: Provisional Administration Terminated ----------------------------------------------------------- Due to the expiration of the term of fulfilling by the state corporation Deposit Insurance Agency of its functions of the provisional administration of OJSC FONDSERVICEBANK (Bank of Russia Registration No. 2989, date of registration - July 20, 1994), established by Bank of Russia Order No. OD-430, dated February 25, 2015, "On Appointing the State Corporation Deposit Insurance Agency to Perform the Functions of the Provisional Administration of the Moscow-based Open Joint-stock Company FONDSERVICEBANK or OJSC FONDSERVICEBANK", the Bank of Russia took a decision (Order No. OD-2264, dated August 26, 2015) to terminate from August 26, 2015, the functions of the provisional administration of OJSC FONDSERVICEBANK. INVEST-ECOBANK LLC: Provisional Administration Terminated --------------------------------------------------------- Due to the ruling of the Arbitration court of Saint Petersburg and Leningrad Region on August 6, 2015, on forced liquidation of credit institution Commercial Bank Invest-Ecobank, limited liability company (Bank of Russia Registration No. 1956, date of registration - July 10, 1992) and appointment of a liquidator in compliance with Clause 3 of Article 18927 of the Federal Law "On the Insolvency (Bankruptcy)", the Bank of Russia took a decision (Order No. OD-2258, dated August 25, 2015) to terminate from August 26, 2015, the activity of the provisional administration of Invest-Ecobank appointed by Bank of Russia Order No. OD-1298, dated June 10, 2015 "On the Appointment of the Provisional Administration to the Saint Petersburg-based Credit Institution Commercial Bank Invest-Ecobank, Limited Liability Company, or CB Invest-Ecobank LLC Due to the Revocation of Its Banking Licence". METROBANK JSC: Bank of Russia Halts Provisional Administration ------------------------------------------------------------- Due to the ruling of the Arbitration court of the city of Moscow on July 27, 2015, on recognizing insolvent (bankrupt) credit institution joint-stock company METROBANK (Bank of Russia Registration No. 2548, date of registration - October 29, 1993) and appointing a receiver in compliance with Clause 3 of Article 18927 of the Federal Law "On the Insolvency (Bankruptcy)", the Bank of Russia took a decision (Order No. OD-2256, dated August 25, 2015) to terminate from August 26, 2015, the activity of the provisional administration of JSC METROBANK, appointed by Bank of Russia Order No. OD-1211, dated June 1, 2015, "On the Appointment of the Provisional Administration to the Moscow-based Joint-stock Company METROBANK or JSC METROBANK Due to the Revocation of Its Banking Licence". RUSSIA: May Need RUR1 Trillion to Prop Up Failing Banks, S&P Says ----------------------------------------------------------------- According to The Financial Times' Nathalie Thomas, the Russian government's bill for propping up failing banks may stand at RUR1 trillion (US$14.4 billion) by the end of this year. The ratings agency believes that there will be a number of other bank failures both this year and next, the FT says. As a result, the Central Bank of Russia and the state-backed Deposit Insurance Agency will likely have to extend a program started in 2008 to rehabilitate the country's ailing financial system by encouraging healthier banks to take over their weaker peers, the FT discloses. S&P sees "some significant risks" in the plan to get healthier banks to buy the failing ones, the FT notes. "The biggest concerns, in our opinion, stem from the limited time available for rescuers to perform due diligence on troubled banks and their assets before taking charge of their rehabilitation. This, in turn, introduces the potential for underestimating the problems hidden in the troubled banks' balance sheets -- perhaps significantly," the FT quotes S&P as saying in its report on Russian banks as saying. S&P says Russia's banks are struggling against high costs and limited access to international capital markets, the FT relays. RUSSIAN INSURANCE: Put Under Provisional Administration ------------------------------------------------------- The Bank of Russia, by its Order No. OD-2253 dated August 25, 2015, took a decision to appoint provisional administration to Moscow-based insurance public joint-stock company Russian Insurance Centre. The decision to appoint a provisional administration was taken due to the suspension of the Company's insurance license (Bank of Russia Order No. OD-2014, dated August 6, 2015). The powers of the executive bodies of the Company are suspended. Evgeny Zhelnin has been appointed as a head of the provisional administration. =========== S W E D E N =========== BRAVIDA HOLDING: Moody's Raises CFR to B1, Outlook Stable --------------------------------------------------------- Moody's Investors Service upgraded Bravida Holding AB's corporate family rating (CFR) to B1 from B2 and probability of default rating (PDR) to B1-PD from B2-PD. Concurrently, Moody's has upgraded the rating on the senior secured notes due 2019 to B1 from B2 and the rating on super senior revolving credit facility due 2019 to Ba1 from Ba2. The rating outlook is stable. The rating action concludes the review for upgrade initiated on June 16, 2015 after Moody's announced a revised methodology for the capitalization of operating leases. The rating action also follows Moody's review of the most recent performance and prospects of the business. The upgrade reflects a reduction in Moody's adjusted leverage to 4.0x in 2014 from 5.7x in 2013. The reduction in leverage of 1.7x is driven by the lower amount (0.9x) of capitalized operating leases under Moody's revised methodology representing a significant amount of Moody's adjusted debt and by the positive impact (0.8x) from Bravida's good operational performance in 2014 and in the first half of 2015. RATINGS RATIONALE The B1 Corporate Family Rating (CFR) assigned to Bravida primarily reflects (i) the strong competition in the fragmented multi-technical activities market in Scandinavia and the risk of price pressure arising from the fragmented structure of the industry; (ii) the company's limited geographical and product diversification (albeit improved after Bravida has entered a new market in Finland via two acquisitions), with the majority of its revenues generated in Sweden. Bravida's CFR is also constrained by its low EBITA-to-Interest Expense and RCF-to-Net Debt ratios due to dividend distributions and interest on the PIK Toggle Notes (outside the restricted group). Positively, the B1 CFR assigned to Bravida factors in the group's leading position in the Scandinavian multi-technical activities market, supported by high brand recognition and a dense local branch network. Additionally, Bravida's vulnerability to volatile demand patterns is to some extent mitigated by (i) the high proportion of its total revenues that is driven by renovation demand, which tends to be more stable than new construction demand; (ii) around 50% of revenue being generated by its service business, which also tends to be less volatile and offers higher margins than its installation business; and (iii) the group's diversified customer and contracts structure, with a high proportion of repeat business. Bravida's liquidity profile is good, despite the SEK277 million cash dividend paid in April 2015. As of June 30, 2015, Bravida's liquidity consisted of SEK715 million cash on balance sheet and SEK450 million availability for cash drawdowns under the SEK550 million super senior revolving credit facility (RCF). The RCF is subject to a single Super Senior Leverage covenant ratio, tested quarterly on a rolling basis should the RCF be drawn. The group's liquidity should be sufficient to support its operations, although we note significant intra-year fluctuations in internal cash generation. This is due primarily to working capital seasonality (despite structurally negative working capital), with January and February being the strongest months for payments collections, and to a smaller extent due to sales seasonality linked to public holidays (leading to lower activity levels and less invoicing). Moody's also expects significant cash flow leakage from the restricted group to service the semi-annual interest payments under the SEK1,720 million PIK toggle notes (SEK920 million issued in March 2014 and SEK800 million issued in December 2014) by using its capacity under the permitted payment test as defined under the terms of the senior secured notes. If paid in cash, the interest on the notes would amount to around SEK154.8 million per annum, increasing in line with the PIK toggle notes' principal amount. The cash payment of the PIK toggle notes' interest is subject to maintaining minimum SEK250 million liquidity under the PIK notes' indenture. Moody's expects that the company will use the capacity built up under the restricted payment basket defined in the senior secured notes to distribute dividends in excess of the PIK toggle notes' debt service obligation to the holding company. Moody's expects the company to continue generating positive free cash flow, even after taking into account the interest payments for the PIK toggle notes, and will maintain good liquidity supported by market improvement, positive effects from ongoing restructuring in Norway and order backlog growth. Bravida's structure comprises SEK3.377 billion equivalent Senior Secured Floating Rate Notes due June 15, 2019, issued by Bravida Holding AB in two tranches of EUR225 million and SEK1,300 million respectively, as well as a SEK550 million super senior RCF expiring on March 15, 2019. According to the Intercreditor Agreement, the notes and bank facilities rank pari passu and share the same guarantors and first-priority security package, however the RCF ranks ahead of the notes in the enforcement payment waterfall. The probability of default (PDR) of B1-PD assumes a recovery rate of 50%, reflecting a capital structure that contains both bank debt and bonds. The notes and the RCF share the same security package (including security on essentially all assets) and guarantees. Operating entities of Bravida group provide guarantees, together representing at least 85% of consolidated EBITDA and 85% of the aggregate turnover of the group. The B1 rating on the secured notes reflects their contractual subordination to the RCF (rated Ba1) via the intercreditor agreement in enforcement payment waterfall. In March 2014, Bravissima Holding AB, parent company of Bravida, issued privately placed SEK920 million PIK toggle notes due 31 January 2020 to partially refinance existing shareholder loans. In December 2014, Bravissima Holding AB issued additional SEK800 million PIK toggle notes under the same indenture. The PIK toggle notes are issued outside of the existing restricted group, of which Bravida Holding AB is the top entity. The PIK toggle Notes are not guaranteed by, do not cross-default with, and do not have any creditor claim on the restricted group. The stable outlook reflects Moody's expectation that Bravida will be able to maintain stable operating margins, supporting steady cash flow generation and gradual deleveraging. The stable rating outlook does not factor in any material debt-financed acquisitions. WHAT COULD CHANGE THE RATING UP Positive rating pressure could arise over time if the company: (i) delevers its balance sheet leading to Moody's adjusted gross debt-to-EBITDA ratio trending towards 3.0x, (ii) improves its EBITA-to-Interest Expense ratio above 3x; (iii) improves its RCF- to-Net Debt ratio above 15%, and (iv) maintains positive Free Cash Flow. WHAT COULD CHANGE THE RATING DOWN Conversely, downward pressure might occur as a result of underperformance leading to: (i) Moody's adjusted debt-to-EBITDA ratio trending towards 4.5x; (ii) EBITA-to-Interest Expense ratio below 2x; (iii) RCF-to-Net Debt ratio below 7%; or (iv) Free Cash Flow turning negative. Further shareholder-friendly actions could also put downward pressure on the ratings. PRINCIPAL METHODOLOGIES The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Sweden, Bravida Holding AB (Bravida) is a leading independent multi-technical services provider in Scandinavia. In 2014, Bravida operated across 150 locations and generated sales of SEK12 billion with 62% of sales in its domestic market (Sweden) and the remaining sales split between Norway (23%) and Denmark (15%). Bravida's main activities comprised the provision of electrical (44% of sales), heating and plumbing (26%), heating/ventilation/air-conditioning (HVAC, 16%) and other specialist services (4%). Installation activities (building and redevelopment) accounted for 53% of sales and service (operation and maintenance) accounted for 47%. In July 2012, private-equity company Bain Capital acquired Bravida from private-equity company Triton, valuing the company at SEK6.2 billion implying c.9.5x LTM Mar-12 PF Adjusted EBITDA. =========================== U N I T E D K I N G D O M =========================== BLU: Edinburgh Site to Close Next Month, 55 Jobs at Risk -------------------------------------------------------- Gareth Mackie at The Scotsman reports that Imperial Tobacco on Aug. 26 said its e-cigarette brand Blu is to close its Edinburgh site next month, putting 55 jobs at risk. The firm said the decision follows the introduction of a new global operating model designed to secure the long-term success of its Fontem Ventures subsidiary by transferring operations to the Netherlands the US, The Scotsman relates. Imperial took control of the Blu business -- previously called Skycig -- when it acquired a raft of brands from US tobacco rival Lorillard earlier this year, The Scotsman recounts. Blu's operations in Edinburgh will cease over a phased period starting Sept. 30 and ending on Dec. 30, The Scotsman discloses. LIVE MUSIC: Goes Into Liquidation After Hop Farm Axes Event ----------------------------------------------------------- Kent Online reports that Live Music Events Limited, the firm behind High Definition festival, goes into liquidation after Hop Farm axes event. Festival-goers face uncertainty over refunds after the firm behind a high profile music event went into liquidation, according to Kent Online. The report notes that the Hop Farm disclosed it had axed High Definition last week over licensing issues, just three weeks before it was due to go ahead. But now fans have been dealt another blow, after the organizers announced they had taken the decision to cancel all future events, the report relays. The report notes that originally they had announced they would be looking for alternative premises. The directors have also begun the process of liquidating the business behind HD, Live Music Events Limited, the report discloses. The report relays that a statement from High Definition, received, said: "Due to the actions of The Hop Farm, it is with great regret that the directors have taken the decision to cancel all future events. "The decision is beyond their control due to the action of third parties and the impending insolvency of the company. If tickets have been purchased on cards, we recommend contacting your card issuer for further instructions on how to possibly receive a chargeback," the statement said, the report notes. "Alternatively, we have managed to secure some ticket swap options for our customers given the circumstances. Everyone at High Definition sends a heartfelt apology for the situation it and its fans have been placed in," the statement added. Among the options for tickets swaps are The Social in Maidstone on September 12, Arcadia in Bristol on September 4, and Mint Festival at Wetherby Racecourse on Sunday, September 20, the report adds. MALCOLM FRASER: Goes Into Liquidation ------------------------------------- Richard Waite at architectsjournal.co.uk reports that award- winning, Edinburgh-based practice Malcolm Fraser Architects has ceased trading. Studio founder Malcolm Fraser said the firm, which was set up in 1993, had been unable to make its 'beautiful and important' output profitable, according to architectsjournal.co.uk. The report notes that a statement on the firm's Web site confirmed it had shut its doors after 22 years. It is understood all 15 staff based at the company's office in North Bridge have lost their jobs, the report relates. According to the company's latest accounts, the practice had assets of GBP350,942 but liabilities of GBP379,248 and net a worth of just GBP12,607, the report notes. The practice won eight RIBA Awards and was shortlisted for the Stirling Prize in 2002 for its DanceBase in Edinburgh -- a scheme which went on to win the inaugural RIAS Doolan Award, the report discloses. The report relays that Mr. Fraser, a supporter of Scottish independence who recently led the Scottish Government's Town Centre Review, said: "The work we did is beautiful and important. However we have been unable to make it profitable." The practice built most of its schemes in Edinburgh -- including the Arcadia Nursery -- where it won six Edinburgh Architectural Association Building of the Year Awards, the report notes. In recent months, the firm completed a civic hub in Stromness, in Orkney, and a hotel and museum for the Western Isles at Lews Castle, in Stornoway, the report adds. STRABEN DEVELOPMENTS: Office Dev't Placed Into Receivership ----------------------------------------------------------- John Campbell at BBC News reports that a major office development in Belfast city center has been placed into receivership by Ulster Bank. The Adelaide Exchange scheme was owned by Straben Developments. Tenants in the building include Belfast City Council, according to BBC News. The report notes that the receivers report shows that the bank was acting with the US fund Lone Star which bought a portfolio of Ulster Bank loans in 2014. The receivers report also discloses that Straben are challenging the receivership with a court hearing due in September. Straben is a joint venture between Stranmillis Investments, which is owned by trusts related to the family of businessman James McGeown, and Benmore Developments (NI), which is owned by Kevin McKay. The joint venture also owned Longbridge House in Belfast's Cathedral Quarter and it too is in receivership, the report discloses. In May, Ulster Bank presented Straben with a demand to repay more than GBP28 million and appointed the receivers shortly after, the report notes. The receivers report states that a Lone Star company acquired "the economic interest" in the Ulster Bank loan in November 2014, the report discloses. Lone Star is one of many US funds, which have bought Northern Ireland property loans, the report relays. Earlier this year, it sold a number of office buildings to the NI Executive, the report adds. TELDAFAX GROUP: Bayer Leverkusen Repay Firm's Liquidator -------------------------------------------------------- ESPN FC reports that Bayer Leverkusen are repaying EUR10.9 million plus interest in a settlement with a former sponsor's liquidator after the company declared bankruptcy in 2011. Leverkusen say they have accepted the proposal from Cologne's court of appeal to repay part of the EUR16 million sponsorship it received from the Teldafax group, main sponsor of the club from August 2007 to June 2011, according to ESPN FC. The report notes that the liquidator argued that Leverkusen must have been aware of the discount energy supply company's insolvency at the time. Leverkusen Chief Executive Michael Schade said the club accepted the settlement to end the years-long dispute and prevent more costs and interest building up, the report notes. Mr. Schade adds, "Now instead of litigation, we want to concentrate on our core business, namely football games," the report relays. ********* 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. 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