/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/160107.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 7, 2016, Vol. 16, No. 004 Headlines A Z E R B A I J A N AZERBAIJAN RAILWAYS: S&P Withdraws 'BB-' LT Corp. Credit Rating F I N L A N D BELVEDERE MINING: Initiates Voluntary Bankruptcy Proceedings G E R M A N Y DEUTSCHE FORFAIT: Cologne Court Opens Insolvency Proceedings I R E L A N D BANK OF IRELAND: Moody's Lifts Preferred Stock Ratings to B2(hyb) SMURFIT KAPPA: Fitch Affirms 'BB+' LT Issuer Default Rating * IRELAND: Galway Company Insolvencies Down to 38 in 9-Mos. 2015 L I T H U A N I A LITHUANIAN SHIPPING: February 12 Claims Filing Deadline Set R U S S I A TEPLOENERGETIKA: U.S. Cos. Seek to Overturn Arbitration Awards VNESHECONOMBANK: Bailout Cost to Reach US$18 Billion S W I T Z E R L A N D * SWITZERLAND: Jan-Nov. 2015 Company Insolvencies Up 7% to 4,003 U N I T E D K I N G D O M PRIORY GROUP: Fitch Expects to Withdraw B+ Issuer Default Rating RARE RESTAURANTS: Report Lifts Lid on Administration SCHRODERS GLOBAL: Property Trust to be Liquidated TATA STEEL UK: Rescue to Hinge Upon Pension, Pay Overhaul X X X X X X X X * Shipping Companies Face Challenging Dry Bulk Market in 2016 ********* =================== A Z E R B A I J A N =================== AZERBAIJAN RAILWAYS: S&P Withdraws 'BB-' LT Corp. Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it had withdrawn its 'BB-' long-term corporate credit rating on state-owned railway operator Azerbaijan Railways CJSC at the issuer's request. S&P had placed the rating on CreditWatch with negative implications on Dec. 11, 2015. At the time of the withdrawal, the rating remained on CreditWatch with negative implications; there was no change to the rating prior to the withdrawal, owing to insufficient information. ============= F I N L A N D ============= BELVEDERE MINING: Initiates Voluntary Bankruptcy Proceedings ------------------------------------------------------------ Belvedere Resources Ltd. on Dec. 23 disclosed that Belvedere Mining Oy, a 100% owned subsidiary of Belvedere, has decided to initiate voluntary bankruptcy proceedings. Belvedere Mining Oy's main assets include the Hitura nickel mine and processing plant, and the Kopsa gold property. The majority of the gold assets of the group are held by Belvedere Resources Finland Oy. Belvedere management have worked relentlessly over the last 9-12 months in an attempt to secure new funding and negotiate with major creditors and other parties to enable Belvedere Mining Oy to continue to exist through this prolonged downturn in metal prices. These initiatives have all proved unsuccessful and as there is no foreseeable way for the Company to generate revenues in the short term or to re-capitalize; the board of Belvedere Mining Oy has instructed management to initiate proceedings for voluntary bankruptcy immediately. ============= G E R M A N Y ============= DEUTSCHE FORFAIT: Cologne Court Opens Insolvency Proceedings ------------------------------------------------------------ The Cologne local court on Jan. 1 resolved to open the insolvency proceedings for DF Deutsche Forfait AG as planned and ordered that the debtor-in-possession status be retained. On September 29, 2015, DF Deutsche Forfait AG had applied for the opening of a "Schutzschirmverfahren in Eigenverwaltung" (a three- month phase of creditor protection with debtor-in-possession status), which was approved by the court because of the prospect of the company being restructured successfully. In the ensuing months, the Board of Management, together with the provisional insolvency monitor and the creditors' committee, pushed ahead with the restructuring. The fact that the creditors' committee unanimously approved the continuation of the proceedings with the company retaining the debtor-in-possession status clearly reflects the confidence placed by the creditors in the successful restructuring. On this basis, the Board of Management of DF Deutsche Forfait AG will agree the insolvency plan with the creditor groups and submit it to the court as soon as possible. DF Deutsche Forfait AG is German-based company engaged in the non-recourse purchase and sale of receivables -- the forfeiting business -- as well as the acceptance of risks through purchasing commitments. ============= I R E L A N D ============= BANK OF IRELAND: Moody's Lifts Preferred Stock Ratings to B2(hyb) ----------------------------------------------------------------- Moody's Investors Service has corrected the ratings of the non- cumulative preferred stock issued by Bank of Ireland (BOI), which resulted in an upgrade of these ratings to B2(hyb) from B3(hyb). Moody's has also corrected the rating of the backed cumulative preferred stock issued by Bank of Ireland UK Holdings Plc, upgrading it to B1(hyb) from B3(hyb). RATINGS RATIONALE In the Dec. 17, 2013, and subsequent rating actions, Moody's has rated each of these two instruments four notches below the bank's BCA, instead of three and two notches respectively, which is the typical notching for these non-cumulative and cumulative preferred stock instruments. The error has now been corrected, and is reflected in the rating actions. LIST OF AFFECTED RATINGS Issuer: Bank of Ireland Pref. Stock Non-cumulative, (Local Currency), ISIN IE0000730790, Upgraded to B2(hyb) from B3(hyb) Pref. Stock Non-cumulative, (Foreign Currency), ISIN IE0000730808, Upgraded to B2(hyb) from B3(hyb) Issuer: Bank of Ireland UK Holdings Plc BACKED Pref. Stock (Local Currency), ISIN XS0125611482, Upgraded to B1(hyb) from B3(hyb) PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Banks published in March 2015. SMURFIT KAPPA: Fitch Affirms 'BB+' LT Issuer Default Rating ----------------------------------------------------------- Fitch Ratings has revised Smurfit Kappa Group plc's (SKG) Outlook to Negative from Stable and affirmed its Long-term foreign currency Issuer Default Rating (IDR) and the senior unsecured ratings of Smurfit Kappa Acquisitions and Smurfit Kappa Treasury Funding at 'BB+'. The rating actions follow SKG's acquisition of two Brazilian paper-based packaging businesses, Industria de Embalagens Santana (INPA) and Paema Embalagens (Paema), for a total consideration of EUR186 million. The revision of the Outlook reflects SKG's faster than expected ramp-up of acquisitions and shareholder returns at a time when its financial profile has not yet improved to a level that is commensurate with its 'BB+' rating. Priced at multiples of 6.3x EBITDA (including synergies) and 8.0x EBITDA (excluding synergies), INPA and Paema will result in total acquisitions of over EUR350 million in 2015 according to Fitch's estimates, well in excess of around EUR185m Fitch-calculated (post dividends) free cash flow (FCF) generated in 2014. Fitch forecasts pro-forma funds from operations (FFO) adjusted net leverage of nearly 3.5x at end-2015 reducing to around 3.25x over the next 12 to 18 months. This assumes increasing capex and shareholder returns and a slower pace of acquisitions than in 2015. The affirmation reflects SKG's improving business profile, strong market positions, attractiveness to multinational customers and exposure to fast moving consumer goods, which has contributed to relatively stable, positive cash flow through the cycle. It also recognizes SKG's excellent liquidity and the deleveraging and reduced funding costs management has achieved over the past years. KEY RATING DRIVERS Latam Acquisitions The EUR186 million acquisitions in Brazil are the latest in a string of acquisitions in Latin America, including the Dominican Republic, El Salvador and Costa Rica, with the aim of diversifying from Western Europe. They reinforce the group's position as the largest corrugated packaging supplier in the region and improve its attractiveness to multinational customers. Brazil contributes 40% of Latin American corrugated demand. INPA and Paema benefit from integrated operations that add three recycled containerboard mills and four corrugated box plants to SKG's roster. Management intends to reap synergies resulting in an uplift of around 25% of the targets' current EBITDA. Shift in Strategy Fitch considers management's public commitment to a 'BB+' rating as credit positive, although the strategic focus has shifted towards acquisition- and capex-driven growth and shareholder returns from debt reduction. Fitch will monitor the pace of acquisitions and their successful integration into the group over the next 12 to 18 months. YTD Trading and Cost Cutting Operating performance is solid, with corrugated packaging volumes growing by over 6% in the first nine months of 2015 as result of acquisitions and 2% group organic growth. Fitch forecasts flat earnings for 2015 year-on-year, despite FX headwinds due to the adoption of the Simadi exchange rate in Venezuela, which now accounts for only 1% of group EBITDA. Management's continued commitment to cut EUR75 million in costs and to optimise its asset base by closing four corrugated box plants and a mill in 2015 support sustainable improvements in its cost structure. Leading Positions SKG's ratings are supported by its leading market positions in corrugated containers as the largest European and pan-American packaging company. The group's business profile also benefits from its exposure to fairly stable packaging markets; around 60% of its revenues are generated in fast moving consumer goods. Its vertical integration into containerboard provides some margin protection against raw material cost inflation. Stable Cash Flow The group's positive free cash flow (FCF) generation through the cycle is credit-supportive. Fitch forecast continued positive (post-dividends) FCF in excess of EUR100 million, supported by healthy current trading and cost-cutting program. This is despite its sizeable and increasing dividends and capex. KEY ASSUMPTIONS -- Capex and M&A-driven revenue growth -- Moderate margin accretion from cost cutting and margin accretive investments. -- Increasing dividends and capex in excess of EUR600 million over the coming years. -- Continued acquisitions of around EUR200m per year. RATING SENSITIVITIES Future developments that could lead to positive rating action include: -- Increased geographic and product diversification. -- FFO adjusted net leverage below 2.0x. -- FCF margin above 2.5%. Future developments that could lead to negative rating action include: -- Evidence of aggressive acquisitions or shareholder returns. -- FFO adjusted net leverage above 3.0x on a sustained basis. -- FCF margin below 1%. LIQUIDITY SKG had liquidity consisting of EUR263 million in cash (of which Fitch considers EUR100 million as tied up for working capital and other operational requirements) and a EUR520 million undrawn revolving credit facility compared with EUR86 million in short- term debt maturities at end 3Q15. Coupled with positive FCF expected for the following 12 months, this should provide ample headroom. * IRELAND: Galway Company Insolvencies Down to 38 in 9-Mos. 2015 ---------------------------------------------------------------- Connacht Tribune reports that the number of companies declared insolvent in Galway City and County in the first nine months of 2015 dropped slightly on the same period in 2014. Statistics compiled for the Connacht Tribune for the first nine months of the 2015 -- the most up-to-date figures available -- shows there were a total of 38 insolvencies recorded in Galway. That figure is down from 44 for the same nine-month period in 2014, Connacht Tribune notes. It's also down from the 46 in the comparative period for 2013; 77 in 2012; 81 in 2011 and 72 in 2010, Connacht Tribune discloses. The total figure includes court liquidations, creditors' voluntary liquidations, receiverships and examinerships, Connacht Tribune states. The statistics were provided to the Connacht Tribune by insolvencyjournal.ie, which is owned by Deloitte, the country's biggest specialist insolvency practice. According to Connacht Tribune, the figures for Galway (the city and county combined) show there were 14 insolvencies in the first quarter; 14 in the second quarter and ten in the third quarter. ================= L I T H U A N I A ================= LITHUANIAN SHIPPING: February 12 Claims Filing Deadline Set ----------------------------------------------------------- Klaipeda County Court on Dec. 14 initiated the enterprise bankruptcy proceedings against PC Lithuanian shipping company. Dalius Volskis was appointed as enterprise bankruptcy administrator. Mr. Volskis shall discharge his duties at: Konstitucijos Ave. 12-322 Vilnius, LT - 09308, Lithuania Tel/Fax: +370 5 2734773 E-mail: dalius.volskis@admini.lt The creditor's claims must be received by February 12, 2016, at: Konstitucijos Ave. 12-322 Vilnius LT - 09308, Lithuania =========== R U S S I A =========== TEPLOENERGETIKA: U.S. Cos. Seek to Overturn Arbitration Awards --------------------------------------------------------------- Hannah Sheehan at Law360 reports that EP International and Worldwide Vision, two U.S.-based companies linked to a power plant project, asked a Virginia federal court on Dec. 31 to overturn foreign arbitration awards against them totaling over US$16 million in a fight over allegedly unpaid loans, saying, bankrupt Russian lender Research and Development Center "Teploenergetika" LLC is trying to pursue claims that have already been put to rest. In a Nov. 18 report, Law360's Matt Sharp disclosed that the awards were issued by the International Commercial Arbitration Court at the Chamber of Commerce and Industry of the Russian Federation over EP and Worldwide's alleged failure to repay loans from Teploenergetika, a consultant and subcontractor during the power plants' construction. "U.S. public policy strongly favors both the settlement of claims by parties outside of court and the final resolution of disputes," Law360 quotes the pair as saying. "Both of these public policies would be violated by the judicial enforcement of foreign arbitration judgments that circumvent and contravene the terms of a mutually bargained-for settlement." According to Law360, EP, Worldwide and Teploenergetika are purportedly linked to Zorlu Enerji Elektrik Uretim Anonim Sirketi, a subsidiary of Turkish industrial conglomerate Zorlu Holding, and Invar International Inc. -- companies at the center of a long-running row over the plants. VNESHECONOMBANK: Bailout Cost to Reach US$18 Billion ---------------------------------------------------- Evgenia Pismennaya at Bloomberg News reports that Vnesheconombank needs a rescue of its own and it could be the Kremlin's costliest yet. For years, Vladimir Putin used VEB to pay for "special projects," from the Sochi Olympics to covert acquisitions in Ukraine to oligarch bailouts, Bloomberg discloses. VEB was supposed to be the financial supercharger of the Russian president's state-directed capitalism, using its government backing to raise billions at low rates on western markets and pumping them into ventures the Kremlin wanted funded, some concealed from public view with code names like "Lily of the Valley", Bloomberg notes. Hit by Western sanctions last year, VEB has stopped new lending, Bloomberg relays. The cost of its bailout could reach RUR1.3 trillion (US$18 billion), several senior government officials, as cited by Bloomberg, said ballooning the budget deficit at a time when plunging oil prices are forcing spending cuts. "The government can't just leave it alone to face the problems caused by the financial and economic situation in the country, speaking directly, by various kinds of sanction pressures," Bloomberg quotes Prime Minister Dmitry Medvedev as saying a VEB board meeting discussing rescue options on Dec. 22. Svetlana Nikitina, an aide to the finance minister, said in Moscow on Dec. 29 the Finance Ministry has submitted proposals to aid VEB in 2016 to the government for approval, with some measures ready to be carried out in the first quarter, Bloomberg recounts. According to Bloomberg, Ms. Nikitina said the plan provides for boosting capital to ensure the bank's ability to pay creditors, as well as supporting liquidity and cleaning up assets. Vnesheconombank operates to enhance competitiveness of the Russian economy, diversify it and stimulate investment activity. It is not a commercial bank, its activity is governed by special Law - 82-FZ which came into force on June 4, 2007. ===================== S W I T Z E R L A N D ===================== * SWITZERLAND: Jan-Nov. 2015 Company Insolvencies Up 7% to 4,003 ---------------------------------------------------------------- According to Bloomberg News' Catherine Bosley, newspaper Neue Luzerner Zeitung, citing data from Bisnode D&B, reported that in Switzerland, 4,003 companies filed for insolvency in Jan.-Nov. period, a rise of 7% from year earlier. Bisnode noted that the rise in insolvencies is particularly strong in north-west and central Switzerland, Bloomberg relates. According to Bloomberg, Bisnode said sectors with higher insolvency risk are construction, hospitality and craftsmen. =========================== U N I T E D K I N G D O M =========================== PRIORY GROUP: Fitch Expects to Withdraw B+ Issuer Default Rating ---------------------------------------------------------------- Fitch Ratings expects to withdraw Priory Group No. 3 plc's (Priory) Issuer Default Rating (IDR) of 'B+' and the 'BB+'/'RR1' ratings on its super senior revolving credit facility (RCF), senior secured notes due 2018 and senior notes due 2019 upon the closing of the proposed acquisition of Priory by Acadia Healthcare Company, Inc. (Acadia), a US-based provider of inpatient behavioral healthcare services. Fitch last affirmed Priory's ratings on December 10, 2015. According to the terms of the purchase agreement announced on January 4, 2016, Acadia will issue an aggregate 5.363 million shares of Acadia common stock to the sellers and pay cash of approximately GBP1.3 billion, which will partially be used to repay Priory's existing debt. The expected repayment of Priory's debt which includes a GBP70 million RCF, GBP386 million senior secured notes and GBP175 million senior notes, is triggered by change of control provisions. Acadia, which Fitch does not rate, expects to finance the acquisition of Priory with a combination of equity and long-term debt. In the absence of further details on the post-closing financing and legal structures, Fitch assumes that the transaction will proceed as per the terms announced and that Priory will become a subsidiary of Acadia such that any significant future debt will be raised by Acadia rather than Priory. Acadia expects the acquisition to complete by 16 February 2016. Fitch views the transaction as a further step in the on-going consolidation of the UK health and social care market, characterized by increasing demand for high quality specialist care, a shift towards preventive treatments, as well as outsourcing by the public sector. NASDAQ-listed Acadia has been actively growing its presence in the specialist behavioral healthcare services market, focusing on creating platforms and building critical mass in the US as well as the UK, following the acquisition of select smaller facilities and that of Partnerships in Care in 2014, a main private competitor to Priory in the behavioral space. The UK market for behavioral care remains dominated by the NHS offering close to 70% of mental health beds but the private sector continues to grow due to shifting public funding priorities offering attractive organic growth and consolidation opportunities for private operators. As a result of the Priory transaction, Acadia is expected to become a key partner to the NHS and a leading player in the fragmented UK private health and social care sector with close to 10,000 beds capacity. RARE RESTAURANTS: Report Lifts Lid on Administration ----------------------------------------------------- Laurence Kilgannon at Insider Media Limited reports that declining profitability and sales following a challenging summer in 2015 led to the administration of a well-known Leeds steak restaurant, which had generated national acclaim and hit GBP1 million in turnover during its first two years of operation, before the brand had to be rescued by a new owner. Based on Lower Briggate by Lambert's Yard, Rare champions premium local produce and high-welfare meat, according to Insider Media Limited. Rare Restaurants Ltd was established in 2013 by Matthew Firth, an entrepreneur who is also behind The Riverside in Leeds and a director at White Cloth Bar and Food, the report notes. The business was backed by a Royal Bank of Scotland loan, money from a supplier, and a leasing agreement, the report relays. Rare was also supported by Vektor Investment Management, which provided book keeping services, event management and financial support as well as being the restaurant's landlord through City Fusion, the report discloses. The report notes that after initial difficulties, largely around cost control, the company hit its stride, attracting praise for the quality of its food and earning a positive review in The Times among other publications. Turnover by the end of the financial year to April 28, 2015 had hit GBP1 million, the report says. However, sales and profitability began to decline in the spring of last year, which led to the introduction of a new business model, using the restaurant as a production kitchen for events organized by White Cloth and The Riverside, the report discloses. The model also allowed the company to deploy staff at the connected businesses, which was successful but, according to a report by administrators, was also thought to have led to staff at the restaurant feeling undervalued and the standard of food slipping, the report notes. With sales falling and costs spiraling, a challenging summer heaped more praise on the business and steps were taken to reduce overheads by bringing cleaning in-house, reducing marketing spend and the number of door staff, and sourcing a cheaper butcher, the report relays. When these actions failed to turn performance around adequately, external investment was sought while the business was also put up for sale, the report notes. By October, the situation prompted concern from Vektor and restructuring advice was sought from PKF Geoffrey Martin, the report discloses. A subsequent financial review found Rare Restaurants Ltd to be insolvent and after a going concern sale was ruled out, a pre- pack deal was agreed with Avant Garde Restaurants following the appointment of James Sleight and John Twizell, administrators from PKF Geoffrey Matin, safeguarding the jobs of the workforce, the report says. Despite the GBP80,000 sale, a creditor shortfall of GBP342,000 is expected, the report notes. SCHRODERS GLOBAL: Property Trust to be Liquidated ------------------------------------------------- citywire.co.uk reports that a global property trust managed by Schroders is to be closed, subject to shareholder approval, following a strategic review. Launched in May 2005, the Schroders Global Real Estate Securities is managed by Tom Walker and Hugo Machin. Schroders was hired by the investment company in July 2014 following a strategic review by the board looking at ways to grow the trust, according to citywire.co.uk. This saw a new investment strategy introduced in the September of that year, the report notes. However, the company said while performance has been good in the 18 months since, the fund has struggled to attract backing, the report relays. Assets under management stand at just GBP64.4 million. In a statement to the market, the investment company said: "Since the appointment of Schroder Real Estate Investment Management Limited as the company's manager and the adoption of a new investment strategy in September 2014 the company has performed well both in absolute and relative terms and the directors continue to believe in the investment proposition," the report discloses. "However, they also recognize the difficulties of attracting long term demand for a closed-ended vehicle which is perceived to lack sufficient critical mass, impacting upon liquidity in the company's shares and the discount at which they trade, the company said," the report notes. "Notwithstanding extensive marketing efforts, the directors conclude that their aspirations to grow the company are not realisable in current market conditions," the company added. Investors are likely to be given the option to transfer into one of Schroders' open-ended property trust, or receive cash, should they back its liquidation, the report relays. TATA STEEL UK: Rescue to Hinge Upon Pension, Pay Overhaul --------------------------------------------------------- Alan Tovey and Ben Marlow at Bloomberg News report that a deal to rescue Tata Steel's struggling Scunthorpe plant and secure thousands of jobs in Britain's beleaguered steel industry may hinge upon radical plans to reform pensions and pay. According to Bloomberg, turnaround specialist Greybull is in exclusive talks about buying Tata's so-called "long products" unit in the Lincolnshire town. However, an agreement to sell parts of Tata's loss-making European business could run into trouble over Greybull's plans for a far-reaching restructuring to get the long products division back on its feet, Bloomberg relates. Greybull, Bloomberg says, is understood to want to scrap the final-salary pension scheme, as well as introduce comprehensive changes to overtime pay and bonuses, in return for an immediate cash injection of up to GBP400 million. But last summer, Tata staff threatened to strike over a planned shake-up of the pension scheme, which was in deficit by GBP2 billion, Bloomberg relays. It could have seen the end of its final-salary structure and workers having to work an extra five years before they were able to retire, Bloomberg notes. Greybull, a Chelsea-based investment office, is convinced that it can return the long products business to health if given a free hand, Bloomberg discloses. This could mean up to 500 redundancies, Bloomberg states. "The long products business has been significantly loss-making. To ensure a viable future, there will by default need to be some changes implemented. The trade unions involved are aware of the difficult situation and have to date been most constructive. Their strong support is paramount for the transaction to succeed," Bloomberg quotes Greybull spokesman as saying. Tata Steel is the UK's biggest steel company. =============== X X X X X X X X =============== * Shipping Companies Face Challenging Dry Bulk Market in 2016 ------------------------------------------------------------- Jonathan Saul at Reuters reports that shipping companies that transport commodities such as coal, iron ore and grain face a painful year ahead, with only the strongest expected to weather a deepening crisis caused by tepid demand and a surplus of vessels for hire. According to Reuters, the predicament facing firms that ship commodities in large unpackaged amounts -- known as dry bulk -- is partly the result of slower coal and iron ore demand from leading global importer China in the second half of 2015. Symeon Pariaros, chief administrative officer of Athens-run and New York-listed shipping firm Euroseas, said the outlook for the dry bulk market was "very challenging", Reuters relates. "Demand fundamentals are so weak. The Chinese economy, which is the main driver of dry bulk, is way below expectations," Reuters quotes Mr. Pariaros as saying. "Only companies with very strong balance sheets will get through this storm." The dry bulk shipping downturn began in 2008, after the onset of the financial crisis, and has worsened significantly this year as the Chinese economy has slowed, Reuters relays. "The state of the dry bulk market especially indicates that economies worldwide are likely to stay weak, much to the disappointment of central banks . . . FX traders, miners, steel makers, trading houses, and commodity economies," Basil Karatzas, head of New York consultancy and brokerage Karatzas Marine Advisors & Co., as cited by Reuters, said. ********* 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 2016. 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 * * *