TCREUR_Public/160108.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Friday, January 8, 2016, Vol. 16, No. 005



V.O. TRAVEL: Tour Operator Declares Insolvency


ALFA HOLDING: Fitch Assigns 'BB(emr)' Rating on RUB1.8BB Loan
ALLIED IRISH: McConnon Gets 40-Day Extension on Protective Cert.
MAGNI FINANCE: Fitch Assigns BB+ Rating on Classes C & D Notes


LIEPAJAS METALURGS: Insolvency Lawsuit vs Steelmaker Dismissed


TVR: Insolvency Sought by Romanian Football Federation


UKRAINE: DGF Sells Insolvent Banks' Assets Worth UAH1.2BB in 2015

U N I T E D   K I N G D O M

BRADFORD & BINGLEY: Treasury Mulls Sale of GBP17 Billion in Loans
CASH GENIE: Enters Into Solvent Liquidation
FUNDRAISING INITIATIVES: Owes Over GBP3 Million to Creditors
PRINCESS YACHTS: To Cut 350 Jobs in March Amid Weak Economy
RILEY BROTHERS: In Administration, Cuts 144 Jobs

WEST CORNWALL: Co Reins in Losses Following Administration
* UK: Over 100,000 Businesses Owed Money by Insolvent Suppliers


* Low Charter Rates Hit Shipping Companies in Dry Bulk Market
* World Bank Cuts Growth Forecasts for Emerging Markets
* BOOK REVIEW: The First Junk Bond



V.O. TRAVEL: Tour Operator Declares Insolvency
FVW reports that V.O. Travel, the tour operator launched two years
ago by veteran Turkey tourism entrepreneur Vural Oger, has
declared insolvency and stopped trading.

The loss-making company remained behind its targets this year and
bookings for 2016 have therefore started badly, Mr. Oger told FVW.
In addition, Mr. Oger was impacted by EUR16 million worth of debts
owed to his Turkish Hotel Group Hotels Majesty by insolvent
Russian tour operator Teztour and several other Russian firms, the
report says.

FVW relates that in view of the economic situation in Russia and
weak bookings in Germany, Mr. Oger said he did not expect any
improvement this year and the insolvency of V.O. Travel had thus
been unavoidable. Some 16 employees are impacted. So his incoming
agency Holiday plan will close down but the separate tour operator
Oger Turk Tur is not affected and is trading normally, the report

According to the report, Mr. Oger said that some 200 guests are
affected by the insolvency but their return flights to Germany are
not in danger as they have been paid for. Hotel payments will be
covered by the Hamburg-based company's insurer Zurich Insurance.

Vural Oger is best known as the founder of Oger Tours, the Turkey
tour operator he founded more than two decades ago and sold to
Thomas Cook in 2011, the report discloses. In January 2014, he
returned to the German market with the launch of V.O. Travel as a
new specialist tour operator for Turkey holidays.


ALFA HOLDING: Fitch Assigns 'BB(emr)' Rating on RUB1.8BB Loan
Fitch Ratings has assigned Alfa Holding Issuance plc's (AHI)
RUB1.8 billion senior issue of limited recourse loan participation
notes (LPNs) a final 'BB(emr)' rating.

The notes are to be repaid in several installments with the last
one on Aug. 28, 2018.  The coupon is floating, referencing various
market instruments.  Fitch appends a subscript (emr) to the rating
to highlight that the variability of the coupon created by the
embedded market risk is excluded from the rating assigned to the

AHI, an Irish SPV that issued the bonds, immediately on-lent the
proceeds to Cyprus-based ABH Financial Limited (ABHFL,
BB/Negative), as the ultimate borrower under the notes.  The terms
of the loan agreement between AHI and ABHFL mirror those of the
notes, so the notes repayment will be made with proceeds from
respective loan repayments by ABHFL.


The rating of the issue is driven by ABHFL's Long-term Issuer
Default Rating (IDR) of 'BB'.  The issue is not guaranteed by Alfa
Bank (BB+/Negative), the main operating subsidiary of ABHFL.


The rating of the issue is likely to move in tandem with ABHFL's
Long-term IDR, which in turn is currently notched down once from
that of Alfa Bank.  The Negative Outlook on Alfa Bank's Long-term
IDRs mirrors that on the Russian sovereign rating, and reflects
the potential for the bank's Viability Rating (VR), which
indicates standalone strength, to be downgraded due to pressure on
financial metrics from the now recessionary environment.

At the same time, Alfa remains the highest-rated Russian
privately-owned bank, reflecting its sound management and track
record of navigating through past Russian crises, and its
currently strong balance sheet and solid financial metrics.

If ABHFL significantly increases leverage, which is currently not
a base case expectation, both ABHFL's and the issue ratings may be
notched further down from Alfa Bank's rating.

ALLIED IRISH: McConnon Gets 40-Day Extension on Protective Cert.
Ray Managh at Irish Examiner reports that businessman
Kevin McConnon, joint owner with his wife, Yvonne, of McConnon
Meats Ltd., was on Jan. 5 granted a 40-day extension to a High
Court order protecting him from any action by creditors pending
negotiation of a personal insolvency arrangement.

Barrister Keith Farry, counsel for Mr. McConnon told Mr. Justice
Robert Eagar that a 70-day protective certificate granted by the
High Court in October ran out on Jan. 6, Irish Examiner relates.

Mr. Farry, who appeared with Ashtown Gate Solicitors, said the
extra protection was necessary to allow Mr. McConnon's main
creditor, AIB, consider new proposals put forward by his personal
insolvency practitioner Tara Cheevers, Irish Examiner relates.

According to Irish Examiner, Ms. Cheevers, of Trim, Co Meath-based
ACO Financial and Business Solutions, told the court in an
affidavit the 40-day extension was needed to let AIB review
documents and accounts provided by Mr. McConnon, of Closeland,
Ballybrittas, Co Laois.

She said the new financial details supplied by Mr. McConnon would
allow her further engage with creditors and draft a new proposal
and call a creditors' meeting, Irish Examiner relays.

Mr. McConnon owes his main creditor AIB EUR2.38 million and the
second and only other substantial creditor, Bank of Ireland
EUR469,389 on the couple's dormer bungalow family home mortgage,
Irish Examiner discloses.

Mr. Farry told Judge Eagar that a 70-day protective certificate
had been granted by the court on Oct. 29 last to facilitate
Ms. Cheevers negotiate a personal insolvency arrangement for
Mr. McConnon, Irish Examiner recounts.

While Bank of Ireland had voted for a proposed arrangement put
forward by Ms. Cheevers, AIB had voted against it in the absence
of detailed accounts, Irish Examiner states.

Judge Eagar granted the extension to the existing protective
certificate, Irish Examiner relays.

                     About Allied Irish Banks

Allied Irish Banks, p.l.c. -- is a
major commercial bank based in Ireland.  It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin.  AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).

Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.

As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares.  On
April 8, 2011, the NPRFC converted the total outstanding amount
of CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.

In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.

MAGNI FINANCE: Fitch Assigns BB+ Rating on Classes C & D Notes
Fitch Ratings has assigned Magni Finance Designated Activity
Company's notes ratings as:

   -- GBP122.8 mil. Class A due January 2023: 'A-sf'; Outlook

   -- GBP16.6 mil. Class B due January 2023: 'BBBsf'; Outlook

   -- GBP28 mil. Class C due January 2023: 'BB+sf'; Outlook

   -- GBP17.2 mil. Class D due January 2023: 'BB-sf';
      Outlook Stable

The transaction is a securitization of a GBP185 million commercial
mortgage loan to six cross-collateralized and cross-defaulted
borrowers, ultimately owned by Varde Partners Inc. (Varde, the
sponsor), to acquire a portfolio of 172 predominantly retail and
office assets located throughout the UK.


The collateral constitutes a portfolio of mainly secondary and
tertiary properties purchased (mainly out of receivership) by
Varde.  A significant portion of the portfolio comprises secondary
high street retail properties, which although are largely well-
located within town centres, continue to be affected by the
structural changes of the retail market in the UK.  While investor
demand has recovered from historical lows, national retailers
continue to relocate away from town centres, somehow limiting the
potential occupational uplift.

The sponsor's business plan envisages asset liquidation with
quarterly amortization targets.  Failure to comply with these
targets will result in full cash trap and inability to exercise
the one-year loan extension option after the initial three-year
loan term expires.  In its analysis, Fitch has considered adverse
disposal scenarios, including no disposals, and early default, to
test debt repayment.

With the exception of cash sweep amounts applied to the notes
sequentially, prior to loan default principal is repaid on a pro
rata basis.  As a result, the senior notes may be exposed to
adverse selection risk, if the best performing assets are sold
first and the average collateral quality deteriorates.  The loan
LTV at closing was fairly high at 70%.  Although it does not
benefit from any scheduled amortization, disposal targets, annual
revaluations, robust interest coverage ratio (ICR) and LTV cash
trap/default covenants should enable performance deterioration to
be monitored well before loan default.

The pro-rata pay-down, the absence of a liquidity facility and the
secondary quality of the portfolio, each contribute to a rating
cap at 'Asf'.


Varde acquired through Eurynome LLC, a wholly owned subsidiary,
two portfolios (Titan and Pecan) comprising retail, office and
industrial commercial real estate assets in the UK, which together
form the "Magni portfolio".

The Titan portfolio acquisition, from Aviva Commercial Finance,
was completed in January 2015.  The portfolio was acquired for
approximately GBP250 million, through a competitive receivership
sale process; since then, the sponsor has sold 22 assets.  The
Pecan acquisition was completed in November 2015 as a private sale
of 14 high street retail assets.

Collateral Highlights

At the cut-off date (Sept. 30, 2015), the Magni portfolio
consisted of 172 freehold and leasehold properties, valued at
GBP263.7 mil. and let to approximately 453 tenants.  As
highlighted, the portfolio is secondary in nature; however, the
majority of the high street retail units are in favorable
locations (generally in peripheral UK towns).  The portfolio also
benefits from a weighted average (WA) lease length to break of
four years and a sound WA occupancy level of 88.2%, although this
varies widely with 11 properties being entirely vacant.

Fitch property grading reflects the collateral quality, with the
majority of assets scored 4 or below.  The portfolio has been
split into two categories: Tier 1 and Tier 2.  Even though Tier 1
and 2 properties contribute evenly to the portfolio market value,
Tier 1 assets have been distinguished from the rest due to longer
WA lease terms, higher occupancy and better location.  This
distinction in quality is illustrated by the allocated loan amount
(ALA) mechanics, whereby the Tier 1 properties are subject to
higher ALA's (75% as a percentage of an assets market value,
versus 65% of Tier 2) as well as higher release premiums (120%
versus 115%).

The portfolio has good geographic diversity with the largest
aggregate exposures being in the East Midlands (18%) and Yorkshire
& Humberside (14%) with no other single location providing more
than 8% of the portfolio (all by market value (MV)).

The top 20 assets account for around 44% of the portfolio (by MV);
the portfolio is also granular compared with a typical CMBS with
the average property valued at GBP1.5 mil.  Ninety seven of the
172 assets are below GBP1m and only two above GBP10 mil.

Sponsor and Borrower Structure

Varde, a global alternative investment firm, acts through Eurynome
LLC and is the sole shareholder of Cronos Investments Limited (the
Company), which is in turn the sole shareholder of each borrower.
Eurynome LLC is a limited liability company incorporated under the
laws of the State of Delaware, while the company is a private
limited liability company incorporated under the laws of Jersey.

The borrowing special purpose vehicles (SPVs) are 100% direct
subsidiaries of the company.  All the borrowers are incorporated
in Jersey.  Each of the borrowers holds one or more properties.

Key Loan Terms

This transaction is an agency deal with proceeds of the bond
issuance used to purchase the loan to be novated to the issuer for
the Pecan portfolio and to advance funds to the Titan borrowers,
to repay their existing indebtedness.  Both the Titan and the
Pecan debt have been restated under one common facility.

The three-year loan benefits from a one-year extension (subject to
amortisation targets, hedging and "no default" conditions) and
pays interest based on three-month LIBOR rate plus the WA margin
on the notes and senior costs due at the issuer level.

Surplus funds are trapped in a dedicated account if the forward-
looking ICR falls below 2.0x; the LTV is higher than 72.5%; the
outstanding loan is greater than its maximum target amount; or a
loan event of default has occurred (default covenants include ICR
below 1.8x and LTV above 75%).

In order to hedge its fixed assets (rents) with the floating
liabilities under the financing, the borrower has bought an
interest rate cap and intends to enter into a second one if asset
sales lag behind its business plan.  The initial interest rate cap
will pay any excess over a strike rate subject to increases at
various intervals, ranging from 1.25% to 3% by expected maturity.
The notional balance of this cap reduces in line with the
sponsor's disposal plan.  Should this plan not be met, the second
cap, with a strike rate of 5%, will hedge the difference between
loan amount outstanding and the expected amortization profile,
i.e. the sum of the two caps' notional is 100% of the securitized
loan. Given the contingent nature of the second cap, Fitch has
tested scenarios where the loan remains partially unhedged and
subject to rising interest rates.

'Bsf' weighted average (WA) capitalisation (cap) rate: 7.1%
'Bsf' WA structural vacancy: 28.5%
'Bsf' WA rental value decline: 2%

'BBsf' weighted average (WA) capitalisation (cap) rate: 7.4%
'BBsf' WA structural vacancy: 32.6%
'BBsf' WA rental value decline: 4.1%

'BBBsf' WA cap rate: 7.7%
'BBBsf' WA structural vacancy: 36.8%
'BBBsf' WA rental value decline: 6.4%

'Asf' WA cap rate: 8.1%
'Asf' WA structural vacancy: 40.9%
'Asf' WA rental value decline: 16.4%


The change in model output that would apply if the capitalization
rate assumption for each property is increased by a relative
amount is as:

  Current rating- class A/ B/ C/ D: 'A-sf'/ 'BBBsf'/ 'BB+ sf'/

  Increase capitalisation rates by 10% class A/ B/ C/ D:
   'BBB+sf'/'BBB-sf'/ 'BBsf'/ 'Bsf'

  Increase capitalisation rates by 20% class A/ B/ C/ D:
   'BBB+sf'/BB+ sf'/'B+ sf'/'B- sf'

The change in model output that would apply if the rental value
decline (RVD) and vacancy assumption for each property is
increased by a relative amount is:

  Increase RVD and vacancy by 10% class A/ B/ C/ D: 'BBB+sf'/
   'BBB-sf'/ 'BB sf' / 'B+sf'
  Increase RVD and vacancy by 20% class A/ B/ C/ D: 'BBBsf'/
   'BBB- sf'/'BB-sf'/ 'Bsf'

The change in model output that would apply if the capitalization
rate, RVD and vacancy assumptions for each property is increased
by a relative amount is:

  Increase in all factors by 10% class A/ B/ C/ D: 'BBBsf'/
   'BBsf'/ 'B+sf'/ 'B-sf'
  Increase in all factors by 20% class A/ B/ C/ D: 'BB+sf'/
   'B+sf'/ 'B-sf'/ 'CCCsf'


No third party due diligence was provided or reviewed in relation
to this rating action.


Fitch reviewed the results of a third party assessment conducted
on the asset portfolio information, which indicated no adverse
findings material to the rating analysis.

Overall, Fitch's assessment of the asset pool information relied
upon for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.


LIEPAJAS METALURGS: Insolvency Lawsuit vs Steelmaker Dismissed
Xinhua News Agency reports that a court in the southwestern
Latvian city of Liepaja on Jan. 5 threw out a request to declare
KVV Liepajas Metalurgs steelmaker insolvent over an outstanding
six-figure debt.

The news agency relates that the insolvency lawsuit had been filed
by Elme Messer Metalurgs, an Estonian-owned producer of industrial
gases, which has been supplying oxygen to KVV Liepajas Metalurgs.

The ruling of the Liepaja City Court can be appealed within 20
days, the report says.

According to Xinhua, KVV Liepajas Metalurgs board member Igor
Talanov said that the ruling was fair and that the company
definitely was solvent even though it had suffered in the metal
industry's crisis.

Justice Maija Jansone dismissed Elme Messer Metalurgs' claim
because the two parties are engaged in an ongoing dispute over
their oxygen supply contract. KVV Liepajas Metalurgs has asked a
court of arbitration to declare the contract invalid, Xinhua

Liepaja City Court heard during an earlier sitting in December
that KVV Liepajas Metalurgs had indebted EUR1.27 million (US$1.36
million) to Elme Messer Metalurgs.

Liepajas Metalurgs was already declared insolvent in November 2013
after it ran into financial trouble. The company was eventually
sold to Ukraine's KVV which re-launched the steel plant in
March 2015, the report discloses.

Based in the southwestern Latvian port city of Liepaja, Liepajas
Metalurgs used to be Latvia's leading metallurgical company and a
major provider of jobs in Liepaja.


TVR: Insolvency Sought by Romanian Football Federation
------------------------------------------------------ reports that the Romanian Football Federation
(FRF) has filed a request in court for the insolvency of the
Romanian national television TVR.

The Federation, relates, also wants to get TVR
to pay penalties related to the broadcasting of the national
team's matches in the qualification to the Euro 2012 campaign,
according to the local Mediafax newswire.

According to the report, the Football Federation has sued the
Romanian Television Company (SRTV), also known as TVR, and the
court file was registered on December 30, 2015. The first court
hearing will take place on February 19. says the Football Federation has asked for the
payment of penalties because the Romanian Television delayed
certain payments related to the broadcasting of the national
team's matches.

Romania's national football team played those matches at home in
2010 and 2011, in the preliminaries for the Euro 2012, the report

Representatives of the Romanian Television and the Football
Federation have talked last year several times to reach an
agreement on the level of penalties, but the negotiations have
failed, the report recalls. FRF proposed several amounts, but TVR
didn't agree with them, relates citing TVR

The Romanian Television, however, can't enter insolvency,
according to the current law. In the past years, several proposals
have been made to change the current legislation so that the
National Television Company could enter insolvency. However, these
proposals haven't led to any change in the law, the report notes.

The Romanian Television posted losses of EUR18 million in 2014.
Its historical debt amounts to over EUR180 million, the report
discloses. In 2015, the Parliament dismissed the company's board
of directors and the general manager Stelian Tanase due to the
poor results. However, the broadcaster's situation hasn't changed
much in the meantime, the report notes.


UKRAINE: DGF Sells Insolvent Banks' Assets Worth UAH1.2BB in 2015
Interfax Ukraine reports that the Individuals' Deposit Guarantee
Fund in 2015 sold the assets of insolvent banks for UAH1.2
billion, according to the website of the fund.

According to the report, in the last week of last year, insolvent
banks' assets that were sold amounted to UAH120 million.

As reported, the Individuals' Deposit Guarantee Fund planned by
the end of 2015 to sell the property of 47 insolvent banks for
UAH2.4 billion.

According to the report, the fund said the assets of insolvent
banks managed by the fund as of September 1 amounted to UAH331.4
billion, of which the amount of assets pledged to the National
Bank amounted to UAH119.6 billion.

The National Bank of Ukraine in 2015 withdrew 33 banks from the
market, while in 2014 to 2015, declared 63 financial institutions
insolvent, the report adds.

U N I T E D   K I N G D O M

BRADFORD & BINGLEY: Treasury Mulls Sale of GBP17 Billion in Loans
Christopher Williams at The Telegraph reports that the UK Treasury
is exploring the sale of GBP17 billion in Bradford & Bingley loans
by UK Asset Resolution (UKAR), the taxpayer-backed "bad bank" set
up in the wake of the financial crisis.

According to The Telegraph, government officials and UKAR are
understood to be in the very early stages of talks with City
advisers that could lead to a sale of the portfolio of mostly buy-
to-let mortgages.

It would be the biggest ever single disposal of UK financial
assets, topping last year's sale of Northern Rock's toxic loan
book, The Telegraph notes.

UKAR acquired the loans in 2010 after Bradford & Bingley was
nationalized and dismantled, The Telegraph relates.  The former
building society was crippled when loose lending combined with the
credit crunch, forcing the Government to step in, The Telegraph

The Treasury has contacted potential advisors on a sale of the
GBP17 billion loan book in the wake of the sale of the GBP13
billion Northern Rock book last year to US private equity firm
Cerberus, The Telegraph discloses.

If a sale process goes ahead it is unlikely to begin for many
months, as the Northern Rock sale is some way off completion, The
Telegraph notes.

Bradford & Bingley plc was a British bank with headquarters in the
West Yorkshire town of Bingley.

CASH GENIE: Enters Into Solvent Liquidation
------------------------------------------- reports that payday lender Cash Genie has
voluntarily entered into a solvent liquidation, six months after
being ordered by the Financial Conduct Authority (FCA) to pay out
GBP20 million in customer redress.

In July 2015, the short term loan provider reached an agreement
with the regulator to pay out redress to 92,000 customers who had
suffered a 'number of serious failings' dating back to Cash
Genie's launch in 2009, according to

According to the FCA, Cash Genie has completed its attempts to
contact all customers due payouts, the report notes.

Cash Genie's liquidation, being handled by RSM Restructuring
Advisory, will not affect further payments of redress, the report

However, the regulator says customers should still pay Cash Genie
if they owe the company money, the report says.

In its initial investigation, the FCA found failings that included
unfair fees, payments to transfer customers to its sister debt
collection firm, despite no additional costs being incurred, and
rolling over or refinancing loans without customers' explicit
request of consent, the report notes.

'Few will mourn the liquidation of this rogue payday lender, which
the FCA rightly took action against in July after uncovering
deeply unfair treatment of customers in financial difficulty,'
said Money Advice Trust Chief Executive Joanna Elson OBE, the
report discloses.

'It is crucial that anyone who has taken a loan from Cash Genie
claim the compensation they may be due.  I would strongly
encourage former customers to contact the phone line that has been
set up as soon as possible,' the report quoted Ms. Elson as

This all follows the City watchdog's efforts to clamp down on
payday lenders, the report notes.

In June 2014, payday lender Wonga agreed to pay GBP2.6 million in
redress to 45,000 clients after an FCA probe, which showed it had
undertaken unfair and misleading debt collection activities, the
report relays.  Later in October 2014, Wonga agreed to write off
330,000 customers' loan balances, the report adds.

FUNDRAISING INITIATIVES: Owes Over GBP3 Million to Creditors
------------------------------------------------------------ reports that Fundraising Initiatives Ltd owed
over GBP3 million to various creditors, including 13 charities,
when it went into administration, according to the statement of
affairs recently filed with Companies House.

The draft estimated statement of affairs, published on Companies
House on December 31, 2015, showed that as of October 30, 2015,
FIL owed over GBP3.3 million to various unsecured creditors,
according to  Among these were 13 different
charities to whom the agency collectively owed over GBP330,000,
the report notes.

The report relays that FIL owed Action for Children GBP71,308,
Battersea Dogs and Cats Home GBP43,005 and the British Red Cross
GBP37,390.  It also owed money to other top 50 charities including
Macmillan Cancer Support, Marie Curie and the British Heart
Foundation, the report says.

The statement also shows that, as of October 30, FIL owed
GBP95,239 to the Redundancy Payment Service.  The joint
administrators also listed 19 former employees as unsecured
creditors, including former directors Gordon Michie and Hamish
Horton, the report discloses.

The report notes that five other companies in the wider
Fundraising Initiatives Group were also listed amongst the former
agency's unsecured creditors, including Global Customer
Acquisitions, to whom over GBP200,000 was owed at the time FIL
went into administration.

The report says that FIL's crown debt was also substantial as the
statement showed the now defunct agency owed over GBP600,000 to
HMRC, including GBP428,688 in VAT.

The report relays that fundraising Initiatives (Holdings) Ltd, the
wider group's parent company -- is also listed as being an
unsecured creditor, having loaned over GBP1.4 million to FIL at
the time of its going into administration.  Fundraising
Initiatives Ltd was also in turn providing loans to Person to
Person Direct Ltd, another member of the FIL group, which went
into administration on the same day as FIL, the report notes.

The report says that the administrators said that the reason for
the collapse of FIL was that "over time, margins were gradually
decreasing due to increasing fees being charged by professional
fundraising organisations (PFOs) and the market place was changing
such that relationships with charities were deteriorating as PFOs
began liaising with the charities directly".

The administrators also note that the company had been "involved
in two protracted legal battles lasting collectively eleven years"
which resulted in "undisclosed settlements" and FIL "incurring
associated costs accumulating to millions of pounds over the
duration of the cases," the report relays.

Since August 2015, five other face-to-face and telephone
fundraising agencies which made up the wider Fundraising
Initiatives group have gone into administration and/or
liquidation, the report notes.

Fundraising Initiatives (Holdings) Ltd, along with two other
member organisations of the wider group: Premier Contact and Capll
Ltd, are currently listed as being overdue with filing their
accounts on Companies House, but are still seemingly operational,
the report adds.

PRINCESS YACHTS: To Cut 350 Jobs in March Amid Weak Economy
Alan Tovey at The Telegraph reports that Princess Yachts is
cutting hundreds of jobs as the global economy continues to

According to The Telegraph, the business will make 350 of its
2,300 workers redundant, with job losses expected to come in

The news highlights the choppy waters that the business operates
in, with Fairline -- which was once part of Princess -- collapsing
into receivership in December, The Telegraph notes.

Chris Gates, managing director, as cited by The Telegraph, said
the jobs would go as the company had finished a sustained period
of product development, introducing a new class of superyachts, as
well as adding to its mainstream range.

Mr. Gates said that the job cut program, which is likely to result
in costs of up to GBP5 million on the business, will seek
volunteers to leave but some redundancies will be compulsory, The
Telegraph relays.  He added that jobs will go across all parts of
the business, The Telegraph states.

Princess Yachts is Britain's largest boatbuilder.  It is based in

RILEY BROTHERS: In Administration, Cuts 144 Jobs
BBC News reports that Riley Brothers, one of the oldest firms in
East Lancashire, has gone into administration with the loss of
more than 140 jobs.  The Burnley-based company has closed its
wholesale meats and international haulage business.

The 144 staff at the 110-year-old firm have already been made
redundant, according to BBC News.

Administrators KPMG, who are trying to find a buyer for the
business, said the family-run company had been experiencing
"significant cashflow problems" over the past few months, the
report notes.

At its Dunnockshaw site, the company ran an abattoir processing
12,000 sheep a week and a farm with a butcher's shop, three homes,
and 60 acres of agricultural land, the report relays.

                           'White Knight'

Former Burnley MP and now councillor Gordon Birtwistle said he was
deeply shocked by the "absolutely tragic" news, the report

"Three generations of this hard-working family built this company
and it's so sad to see it close.  So many people have been
affected by this and I just hope that their situations can be
resolved as soon as possible," the report quoted Mr. Birtwisle as

"I hope a white knight can be found to save the company."
One of the administrators, Paul Flint, said: "We are assisting the
employees through this difficult time with making claims to the
Redundancy Payments Office for their wages and other associated
redundancy claims," the report adds.

WEST CORNWALL: Co Reins in Losses Following Administration
---------------------------------------------------------- reports that the West Cornwall Pasty Company,
which went into administration almost two years ago before being
sold to a private equity fund backed by the former England
footballer Danny Mills, has narrowed its losses by targeting
sports stadiums and expanding its coffee range.

The Truro-based firm reported a pre-tax loss of GBP195,000 on
turnover of GBP12.5 million in the year to the end of March,
according to accounts filed to Companies House last month,
according to

This compared to pre-tax losses of more than GBP800,000 in the
year before the company was sold in April 2014, the report notes.

The report relays that the company said losses in 2015 were the
result of exceptional one-off costs of GBP621,000 that will not be
repeated this year.  This included fees for the initial
acquisition and redundancy costs at its head office, the report

West Cornwall Pasty Co, which still makes all its pasties in West
Cornwall, has more than 40 outlets across Britain, the report

The report notes that the firm is mainly present in railway
stations but has increasingly targeted sports venues.  Sales at
its site in Twickenham Stadium were boosted by the Rugby World Cup
last year, although the company said the stadium is currently
reviewing its catering arrangements over the next year and it is
not guaranteed to have a presence, the report relays.

The report discloses that the firm has also launched its own-brand
coffee range to encourage customers to spend more during each

Enact, the new owners of West Cornwall Pasty Co, is a fund
controlled by the private equity house Endless, the report notes
notes.  As well as Mr. Mills, its backers include Wayne Bowser, a
former HSBC banker.

West Cornwall Pasty Co was previously owned by private equity
outfit Gresham, which blamed the decision to put the firm into
administration on the Government's decision to impose VAT on
pasties in 2012.

* UK: Over 100,000 Businesses Owed Money by Insolvent Suppliers
Over 100,000 UK businesses were owed money by suppliers or
customers entering an insolvency procedure during the last year,
according to research by insolvency trade body R3.

In total, 113,000 businesses, about 6% of all UK businesses, were
creditors in an insolvency procedure in 2015, according to the

Medium-sized businesses, those employing 51 to 250 people, were
most likely to have been exposed to another firm or individual's
insolvency, with one-in-seven (14%) of these businesses owed money
by an insolvent individual or company.

Phillip Sykes, R3 president says: "Growing businesses encounter
two classic problems: going for growth by taking on new customers
without properly checking their creditworthiness; and a lack of
controls to monitor their exposure."

"This leaves growing businesses, particularly medium-sized ones,
as the most at risk of being exposed to others' insolvencies."

"Although the UK insolvency regime is ranked as one of the best in
the world, it is often the case that those owed money in
insolvencies won't see all of their money back.  This can have a
serious impact on their own finances."

"Businesses need to take preventative measures and properly asses
risks before trading with individuals or other firms.  Doing so
will minimize the chance of being exposed to others' insolvencies
in the first place."

The research, from R3's Business Distress Index, a long-running
survey of the financial health of 500 UK businesses, also found
that only 4% of large businesses (250+ employees) have been a
creditor in the last year.

By comparison, between 5-7% of businesses employing between 1 and
50 people were a creditor in an insolvency process last year.

The research also showed that 4% of businesses employing between 2
and 5 people were a creditor in over five insolvencies last year
(23,000 businesses) -- the highest proportion of any business size
in this situation.  On average, all businesses should be a
creditor in one insolvency procedure every five years.

Mr. Sykes says: "Credit control can be a real problem for smaller
businesses.  They might be selling goods or services, but it can
be difficult for a small or growing business to make sure it
actually collects what it is owed."

"When you have a small company exposed to more than five different
insolvencies, there is a cause for concern.  There could be real
cash flow issues there."

"Businesses need to be savvy about who they trade with.  If a
business isn't paid up-front or on delivery, or pays in advance
for its own supplies, it is essentially lending money to those
with whom it is trading.  This sort of 'lending' doesn't have the
same protection in insolvency situations that secured lending,
like a mortgage, enjoys."

Debts are repaid in insolvencies according to a strict hierarchy
set out by the government.  Secured loans are at the top of the
hierarchy, while those with unsecured loans, like trade creditors,
are towards the bottom.

Mr. Sykes adds: "Creditors in an insolvency process need to engage
with the insolvency practitioner or Official Receiver involved as
soon as possible once the insolvency begins.  Those in this
position are accountable to creditors and will represent their
interests.  The more communication there is, the higher the chance
of a better return."

An online guide for creditors to the insolvency process, produced
by R3, is available at


* Low Charter Rates Hit Shipping Companies in Dry Bulk Market
Robert Wright at The Financial Times reports that China's slowing
growth and a glut of ships have hit earnings for vessels carrying
coal and other dry bulk commodities so hard that owners face
forced sales, emergency capital raisings and possible bankruptcy.

According to the FT, charter fees are not covering vessels'
operating costs, let alone their financing, in the latest bad news
for the many private equity firms that have invested in the

Short-term charter rates for Capesize ships -- the largest kind,
were as low as $4,897 a day on December 23, down from more than
$20,000 a day in August, the FT discloses.  Vessels typically cost
around $13,000 a day to operate and finance, the FT notes.

Basil Karatzas, a New York-based shipping consultant, said the
market was "murder -- a big mess", the FT relates.

"There has been no improvement whatsoever in trading," the FT
quotes Mr. Karatzas as saying.

The impact of the fleet's growth has been all the more severe
because China's slowdown has reduced an expected increase in trade
in dry bulk commodities from 5-6 per cent over 2015 to zero, the
FT states.

"As you combine that with the supply problem we already knew
about, you get the worst conditions we've seen ever," one senior
industry figure, as cited by the FT, said.

The crisis has been made worse by the low oil price, the FT says.
As the price of fuel has fallen, charterers have ordered many
shipowners to speed ships up instead of operating them slowly to
save fuel, the FT notes.

Michael Bodouroglou, chief executive of Paragon Shipping, an
Athens-based, New York-listed dry bulk shipowner, said operators
were burning through significant amounts of cash because rates
were not meeting their costs, the FT relates.

Paragon is one of at least four New York-listed companies --
alongside DryShips, Scorpio Bulkers and Star Bulk -- that were
forced in late November and early December to announce sales of
vessels to bring in cash, the FT discloses.

* World Bank Cuts Growth Forecasts for Emerging Markets
Ian Talley at The Wall Street Journal reports that souring
prospects in the world's largest emerging markets are darkening an
already cloudy outlook for the global economy, the World Bank said
on Jan. 6, as it cut growth forecasts for the third straight year.

According to the Journal, deeper contractions than expected in
Brazil and Russia and weaker output in most of the world's biggest
economies, including the U.S. and China, led the international
development institution to downgrade its forecast for global
growth in 2016 by 0.4 percentage point to 2.9%.  That is up
slightly from last year's downward-revised growth rate of 2.6%,
the Journal notes.

Recoveries in the U.S. and Europe were weaker than hoped as a
strong dollar weighed on U.S. exports, while slowing trade in
general muffled meager expansions in the eurozone and Japan, the
Journal discloses.

"There are severe fault lines beneath the surface," the Journal
quotes Kaushik Basu, the bank's chief economist, as saying.  "The
global economy, and in particular the emerging economies, could
hit a severe road bump."

* BOOK REVIEW: The First Junk Bond
Author: Harlan D. Platt
Publisher: Beard Books
Softcover: 236 pages
List Price: $34.95
Review by Gail Owens Hoelscher
Order your personal copy today and one for a colleague at
Only one in ten failed businesses is equal to the task of
reorganizing itself and satisfying its prior debts in some
fashion. This engrossing book follows the extraordinary journey
of Texas International, Inc (known by its New York Stock
Exchange stock symbol, TEI), through its corporate growth and
decline, debt exchange offers, and corporate renaissance as
Phoenix Resource Companies, Inc. As Harlan Platt puts it, TEI
"flourished for a brief luminous moment but then crashed to
earth and was consumed." TEI's story features attention-grabbing
characters, petroleum exploration innovations, financial
innovations, and lots of risk taking.

The First Junk Bond was originally published in 1994 and
received solidly favorable reviews. The then-managing director
of High Yield Securities Research and Economics for Merrill
Lynch said that the book "is a richly detailed case study. Platt
integrates corporate history, industry fundamentals, financial
analysis and bankruptcy law on a scale that has rarely, if ever,
been attempted." A retired U.S. Bankruptcy Court judge noted,
"(i)t should appeal as supplementary reading to students in both
business schools and law schools. Even those who the
areas of business law, accounting and investments can obtain a
greater understanding and perspective of their professional

"TEI's saga is noteworthy because of the company's resilience
and ingenuity in coping with the changing environment of the
1980s, its execution of innovative corporate strategies that
were widely imitated and its extraordinary trading history,"
says the author. TEI issued the first junk bond. In 1986 it
achieved the largest percentage gain on the NYSE, and in 1987
suffered the largest percentage loss. It issued one of the first
bonds secured by a physical commodity and then later issued one
of the first PIK (payment in kind) bonds. It was one of the
first vulture investors, to be targeted by vulture investors
later on. Its president was involved in an insider trading
scandal. It innovated strip financing. It engaged in several
workouts to sell off operations and raise cash to reduce debt.
It completed three exchange offers that converted debt in to

In 1977, TEI, primarily an oil production outfit, had had a
reprieve from bankruptcy through Michael Milken's first ever
junk bond. The fresh capital had allowed TEI to acquire a
controlling interest of Phoenix Resources Company, a part of
King Resources Company. TEI purchased creditors' claims against
King that were subsequently converted into stock under the terms
of King's reorganization plan. Only two years later, cash
deficiencies forced Phoenix to sell off its nonenergy
businesses. Vulture investors tried to buy up outstanding TEI
stock. TEI sold off its own nonenergy businesses, and focused on
oil and gas exploration. An enormous oil discovery in Egypt made
the future look grand. The value of TEI stock soared. Somehow,
however, less than two years later, TEI was in bankruptcy. What
a ride!

All told, the book has 63 tables and 32 figures on all aspects
of TEI's rise, fall, and renaissance. Businesspeople will find
especially absorbing the details of how the company's bankruptcy
filing affected various stakeholders, the bankruptcy negotiation
process, and the alternative post-bankruptcy financial
structures that were considered. Those interested in the oil and
gas industry will find the book a primer on the subject, with an
appendix devoted to exploration and drilling, and another on oil
and gas accounting.

Harlan Platt is professor of Finance at Northeastern University.
He is president of 911RISK, Inc., which specializes in
developing analytical models to predict corporate distress.


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  Go to order any title today.


S U B S C R I P T I O N   I N F O R M A T I O N

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

Copyright 2016.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
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