/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/160122.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 22, 2016, Vol. 17, No. 015 Headlines A U S T R I A * AUSTRIA: Corporate Insolvencies Down 5% in 2015 B U L G A R I A CORPORATE COMMERCIAL: SSC Suspends Insolvency Proceedings C Z E C H R E P U B L I C NEW WORLD: Taps Moelis & Co. as Debt Restructuring Talks Continue F R A N C E NOVARTEX SAS: S&P Affirms 'CCC+' CCR, Outlook Remains Stable G E R M A N Y PAPERLINX DEUTSCHLAND: Enters Full Insolvency Proceedings WALSUM PAPIER: Regular Insolvency Process to Start on Feb. 1 I T A L Y ILVA: European Commission to Probe EUR2-Bil. Government Aid TIBET CMBS: Fitch Affirms 'BBsf' Rating on EUR60.4MM Class D Debt N O R W A Y EKSPORTFINANS ASA: Moody's Affirms 'Ba3' Sr. Unsec. Debt Ratings P O L A N D BIOMED LUBLIN: Files Arrangement Proceedings Motion P O R T U G A L NOVO BANCO: Central Bank to Partly Compensate Bondholders R U S S I A BALTINVESTBANK: Moody's Cuts Nat'l Scale Rating to Caa1.ru BALTINVESTBANK: Moody's Cuts LT Currency Deposit Ratings to Caa3 CAJAMAR 1: Moody's Assigns Caa1(sf) Rating to Class B Notes MIRAF-BANK JSC: Placed Under Provisional Administration TURBOBANK JSC: Placed Under Provisional Administration U N I T E D K I N G D O M BOLTON WANDERERS: Puts Forward Plan to Escape Administration BRADFORD DEVELOPMENTS: Regeneration Project Hit by Administration G&T PARTNERSHIP: In Liquidation, Golf Course Closes HERITAGE FA: Ordered Into Provisional Liquidation X X X X X X X X * BOOK REVIEW: The Financial Giants In United States History ********* ============= A U S T R I A ============= * AUSTRIA: Corporate Insolvencies Down 5% in 2015 ------------------------------------------------- FriedlNews reports that two out of three big credit protection associations in Austria Alpenlandischer Kreditorenverband (AKV) and Kreditschutzverband (KSV 1870) have published their final insolvency statistics for the past year. FriedlNews says the reported figures differ slightly, but both associations see a drop of 5 percent in the number of all launched and rejected company bankruptcies to about 5,200. According to AKV, this is the lowest figure in the past decade, the report relates. Highest value was recorded in 2009 at 6,883 company bankruptcies. However, the two associations differ on the total value of liabilities by EUR0.5 billion. Whereas AKV reported EUR2.9 billion in total liabilities for 2015, KSV 1870 reported EUR2.4 billion, according to FriedlNews. Both associations declared that they took into consideration only the launched insolvency proceedings and didn't include the rejected petitions for insolvency, FriedlNews relates. =============== B U L G A R I A =============== CORPORATE COMMERCIAL: SSC Suspends Insolvency Proceedings --------------------------------------------------------- Focus Information Agency reports that the Supreme Court of Cassation (SCC) suspended the proceedings for insolvency of the Corporate Commercial Bank (CorpBank) and submitted to the Constitutional Court a request for declaration of unconstitutionality of two norms of the Bank Insolvency Act, the press office of the court announced. The news agency says suspended proceedings of the SCC do not affect the development of the legal proceedings for bankruptcy of Corporate Commercial Bank, which should continue. Corporate Commercial Bank AD is the fourth largest bank in Bulgaria in terms of assets, third in terms of net profit, and first in terms of deposit growth. Bulgaria's central bank placed Corpbank under its administration and suspended shareholders' rights in June 2014 after a run drained the bank of cash to meet client demands. =========================== C Z E C H R E P U B L I C =========================== NEW WORLD: Taps Moelis & Co. as Debt Restructuring Talks Continue ----------------------------------------------------------------- Ladka Bauerova and Luca Casiraghi at Bloomberg News report that New World Resources, the last Czech producer of coking coal, is working with investment bank Moelis & Co. on its second debt restructuring in less than two years. According to Bloomberg, two people familiar with the situation said the miner was set to meet creditors, Moelis and government representatives on Jan. 14 in Prague to discuss its future. They said White & Case is acting as legal adviser, Bloomberg discloses. Most of New World's operations have become unprofitable because a global glut has pushed coal prices to the lowest in at least eight years, Bloomberg says. Government ministers have said the company may become insolvent by the middle of the year, and it will probably shutter all operations by 2022 at the latest, Bloomberg relays. The government has said it won't provide any assistance to New World while billionaire Zdenek Bakala remains the largest shareholder, Bloomberg notes. New World Resources Plc is the largest Czech producer of coking coal. =========== F R A N C E =========== NOVARTEX SAS: S&P Affirms 'CCC+' CCR, Outlook Remains Stable ------------------------------------------------------------ Standard & Poor's Ratings Services said it has affirmed its 'CCC+' long-term corporate credit rating on Novartex S.A.S., the parent company of France-based mass-market apparel and footwear retailer Vivarte Group. The outlook remains stable. At the same time, S&P affirmed its 'CCC+' issue rating on the EUR500 million super senior bonds issued by subsidiary Vivarte. The recovery rating on these notes is '3', reflecting S&P's expectation of meaningful (50%-70%) recovery for creditors in the event of a default. S&P also affirmed its 'CCC-' issue rating on the EUR780 million senior reinstated debt issued by Novarte, another Novartex subsidiary. The recovery rating on these notes is '6', reflecting S&P's expectation of negligible (0%-10%) recovery for creditors in the event of a default. The rating reflects S&P's view that Vivarte Group's business remains dependent on favorable financial and economic conditions to meet its financial commitments. While S&P forecasts that EBITDA will improve compared to last year, it believes the potential for sustained earnings growth and cash flow generation remains uncertain. That said, S&P still views Vivarte Group's capital structure as potentially unsustainable over the next few years. S&P's revision of Vivarte Group's liquidity assessment reflects S&P's view that the company has a very low cushion against adverse conditions, as the company will likely violate the minimum EBITDA covenant under its super senior bonds. S&P expects Vivarte Group will be able to get a waiver for the minimum EBITDA covenant for the next three testing periods, ending in February, May, and August this year. Last year, the company received consent from bondholders to suspend the covenant for a 12-month period. Taking into account that most of the bondholders are company shareholders, it is likely they will agree to the covenant waiver. However, S&P believes that there is more uncertainty surrounding the Vivarte Group's internal cash generation due to the company's lower-than-expected earnings and the challenges it is facing during its turnaround period. These factors lead S&P to believe that the company is unlikely to be able to absorb unexpected declines in operating performance without external financing. S&P calculates total sources of liquidity over fiscal 2015-2016 of about EUR595 million, consisting of: -- Cash and equivalents of EUR527 million at the end of August 2015; and -- Expected proceeds from store sales of EUR66 million. S&P estimates uses of liquidity to reach close to EUR415 million: -- Negative funds from operations of about EUR137 million; -- Negative working capital change of about EUR16 million; -- Seasonal working capital requirements of about EUR150 million; and -- Planned capital expenditures of about EUR109 million. The stable outlook on Vivarte Group reflects S&P's view that, despite its expectation of declining like-for-like sales and a continued weak EBITDA margin over the next 12 months, Vivarte Group's capital structure should be able to bear the effect of negative free cash flows in the short term. At the same time, S&P expects the company will be able to receive a waiver for the minimum EBITDA covenant for the next three testing periods. That said, S&P still views Vivarte Group's capital structure as potentially unsustainable over the next few years. S&P could consider a downgrade if market circumstances or the unsuccessful execution of the turnaround strategy led to further deterioration in revenues, EBITDA, and cash flows. This would lead to a higher short-term risk of a liquidity crisis for Vivarte Group (including not obtaining the waiver for a minimum EBITDA covenant) or debt restructuring, which S&P would likely view as tantamount to default. S&P could raise the ratings if the group's operating performance stabilized and improved over the next 12 months, demonstrating management's success in implementing strategic initiatives and resulting in nominal EBITDA growth and a sustainable reduction in negative FOCF generation, as well as adequate liquidity. ============= G E R M A N Y ============= PAPERLINX DEUTSCHLAND: Enters Full Insolvency Proceedings --------------------------------------------------------- EUWID Pulp and Paper reports that the local court of Darmstadt has opened full insolvency proceedings upon Paperlinx Deutschland and its local parent entity Deutsche Papier Holding on Dec. 29, 2015. The insolvency court appointed Markus Plathner of Brinkmann & Partner as the insolvency administrator, the report discloses. In October 2015, Paperlinx Deutschland and Deutsche Papier had already filed for debtor-in-possession proceedings with the court of Darmstadt, the report recalls. According to the report, Spicers Limited, formerly Paperlinx Limited, said the decision to file for full insolvency proceedings for its German paper merchanting operations was taken as the business continued to trade unprofitably and attempts to sell the business were unsuccessful. EUWID relates that the company's visual technology solutions operation in Germany, Paperlinx VTS Deutschland, is reportedly not affected. WALSUM PAPIER: Regular Insolvency Process to Start on Feb. 1 ------------------------------------------------------------ EUWID Pulp and Paper reports that the provisional insolvency administrator of Walsum Papier has filed an application with the Duisburg District Court to postpone the opening of regular insolvency period. Regular insolvency proceedings are now to begin on Feb. 1, 2016, EUWID relates citing information from the administrator's office. In the meantime, the search for a new potential investor goes on, the report says. After Niederauer Muhle broke off talks about buying the magazine paper mill in Walsum, the provisional administrator is back in exclusive talks with a potential investor about selling and keeping open the mill, EUWID relates. The goal was to transfer operations no later than Feb. 1, 2016. The interested party is reportedly not an established paper supplier and did not wish to be named, EUWID notes. Norske Skog Walsum filed for insolvency in June and changed its name into Walsum Papier, EUWID recounted. The opening of regular insolvency proceeding was originally scheduled for Sept. 1, 2015, and then postponed to December 2015. According to EUWID, the extension period has reportedly worked in favor of the administrators by creating additional space to negotiate with interested parties. ========= I T A L Y ========= ILVA: European Commission to Probe EUR2-Bil. Government Aid ----------------------------------------------------------- Peter Spiegel and James Politi at The Financial Times report that Brussels has waded into the increasingly contentious issue of European steelmakers' inability to fight off low-cost Chinese competition by opening a probe into EUR2 billion in assistance the Italian government provided the country's struggling steelmaker, Ilva. In announcing the move, Margrethe Vestager, the European Commission's competition commissioner, said that while Brussels realised the European industry faces overcapacity and tough competition from abroad, steelmakers cannot be exempt from EU rules barring government subsidies, the FT relates. According to the FT, as part of the decision, Belgium was ordered to recoup EUR211 million in assistance the Walloon government provided to steel companies in the country's depressed industrial southern regions that are part of the Duferco group. The moves come amid mounting lay-offs and shutdowns at steel plants across Europe in the face of stiff Chinese competition, the FT notes. Ilva, the third-largest steel producer in the EU, is a 100 year- old Italian industrial concern whose postwar history has been marked by cycles of expansion, near-bankruptcy, public ownership, privatization and recently near-collapse, the FT relays. A year ago, Rome took control of the Ilva plant in Taranto after a court sequestered sections of it on the grounds it failed to contain toxic emissions, the FT recounts. The plant employs about 16,000 workers and is Europe's biggest by output capacity, the FT discloses. Federica Guidi, Italy's minister for economic development, as cited by the FT, said it was "important" for the EU to recognize the steel industry was grappling with "global overcapacity", adding she would work with Ms. Vestager to convince her the assistance was proper. TIBET CMBS: Fitch Affirms 'BBsf' Rating on EUR60.4MM Class D Debt ----------------------------------------------------------------- Fitch Ratings has affirmed Tibet CMBS S.r.l., as: EUR103.9 mil. Class A (IT0005082927): affirmed at 'AAsf'; Outlook Stable EUR26.7 mil. Class B (IT0005082976): affirmed at 'Asf'; Outlook Stable EUR9.9 mil. Class C (IT0005082984): affirmed at 'A-sf'; Outlook Stable EUR60.4 mil. Class D (IT0005082992): affirmed at 'BBsf'; Outlook Stable The CMBS transaction is secured by a single loan backed by a prime retail property in Milan. KEY RATING DRIVERS The affirmation reflects the stable performance of the underlying property, which as Fitch expected has reported an improvement in net income and reduction in leverage since the transaction's closing a year ago. The reported interest cover ratio (ICR) has increased to 1.51x, up from 1.37x at the date of issuance, driven by income growth as rental discounts roll off on some of the leases. The market value had risen to EUR320.9 million in July 2015 compared with EUR314.7 million reported in July 2014. Along with scheduled principal repayments of EUR2.1 million, this has led to a decline in the reported LTV to 62.98%, from 64.50% at the issue date. The property's location in Milan's luxury shopping district has supported strong demand for retail space, and we expect this to continue if any space becomes available in the short term. Prime rents in the area have risen sharply over the past 18 months, albeit on the back of relatively little turnover at this end of the market. RATING SENSITIVITIES A significant deterioration in the business model of luxury retailers that reduced their requirement for flagship space could result in a downgrade of the notes. If the Italian sovereign was downgraded, this could also affect the senior notes. Fitch estimates 'Bsf' proceeds of EUR246 million. 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. Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. 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. =========== N O R W A Y =========== EKSPORTFINANS ASA: Moody's Affirms 'Ba3' Sr. Unsec. Debt Ratings ---------------------------------------------------------------- Moody's Investor Service affirmed Eksportfinans ASA's Ba3 issuer and senior unsecured debt ratings, (P)B1 subordinate shelf programme rating and the issuer's Not-Prime short-term ratings. The outlook on all long-term ratings remains stable. RATINGS RATIONALE The affirmation of Eksportfinans's ratings reflects (1) the sound credit quality of the company's loan book that benefits from guarantees by the Norwegian government via export credit agency GIEK and/or highly rated banks; (2) its good capitalization (Tier 1 ratio 30.3% at end-September 2015), which is likely to further improve as the balance sheet continues to deleverage; and (3) improving clarity on liquidity needs taking into account the diminished risk of debt repayment acceleration, following the March 2014 ruling in favor of Eksportfinans by the Tokyo District Court in the claim relating to the company's Samurai bonds. However, the ratings also continue to be constrained by the effects of Eksportfinans's run-off status. These include (1) Eksportfinans's weak earnings, which Moody's expects will further reduce as assets continue to run-off; and (2) the company's still high funding risk that results from its full reliance on market funding, which is only partly mitigated by its still sizeable liquidity reserves (NOK20.1 billion at end-September 2015). Eksportfinans estimates that 76% of its outstanding debt will mature by year-end 2017, thus generating a modest shortfall of NOK0.3 billion in Eksportfinans's cumulative liquidity position. Moody's expects that such temporary liquidity shortfall would be covered, most likely by the USD1 billion (NOK8.9 billion) liquidity facility provided by the company's three largest owner banks DNB Bank ASA (deposits Aa2 Stable; BCA a3), Nordea Bank Norge ASA (Aa3 Stable; a3) and Danske Bank A/S (A2 Stable; baa1). Accordingly, while the ratings do not factor government support uplift, reflecting Eksportfinans's loss of the government- supported export lending business in late 2011, Moody's does recognize the benefit of ongoing support from its major bank shareholders, as illustrated by the committed liquidity facility. The stable outlook on Eksportfinans's long-term ratings reflects Moody's view that a successful continuation of the company's run- off process remains likely, underpinned by the ongoing progress in balance sheet deleveraging and decrease of outstanding structured debt. WHAT COULD CHANGE THE RATING UP/DOWN Upward pressure on Eksportfinans's ratings could primarily arise from increased support from its owners. Downward pressure would be exerted on the ratings should the run off process have any negative implications for Eksportfinans's remaining operations, especially regarding its liquidity. Any increased vulnerability to legal risks and triggers that could escalate debt repayment would exert a downward pressure on Eksportfinans's ratings. List of Affected Ratings Affirmations: -- LT Issuer Rating, Affirmed Ba3 stable -- Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 Stable -- Senior Unsecured MTN, Affirmed (P)Ba3 -- Commercial Paper, Affirmed NP -- Subordinate Shelf, Affirmed (P)B1 -- Senior Unsecured Shelf, Affirmed (P)Ba3 -- Other Short Term, Affirmed (P)NP Outlook Actions: -- Outlook, Remains Stable =========== P O L A N D =========== BIOMED LUBLIN: Files Arrangement Proceedings Motion --------------------------------------------------- Reuters reports that Biomed Lublin Wytwornia Surowic i Szczepionek SA said on Jan. 12 that it filed arrangement proceedings motion under restructuring law to Lublin court, in Poland. Due to prolonged negotiations in securing financing for Mielec plant investment project and maturity of settlement period for eligible expenditures within grant aid received by the company from the European Union funds, the company applied to the Polish Agency for Enterprise Development (PARP) for extension of the period for the project implementation and expenses settlement, according to Reuters. Reuters relates that on Jan. 11 the company received negative response from PARP and decided to file the motion to the court due to lack of extension of the period to incur eligible expenditures, inability of settling of advanced payments from EU subsidies in the amount of PLN30 million ($7.5 million), as well as due to lack of possibility to recover further PLN6.8 million invested in Mielec. Due to mentioned reasons, company has lost its financial liquidity and was put at risk of insolvency, Reuters relates. Reuters adds that the Company said it will continue to conduct negotiations with potential investors and financial institutions. Biomed Lublin Wytwornia Surowic i Szczepionek SA (WSE:BML) is a Poland-based company engaged in the pharmaceuticals industry. =============== P O R T U G A L =============== NOVO BANCO: Central Bank to Partly Compensate Bondholders --------------------------------------------------------- Martin Arnold and Peter Wise at The Financial Times report that Portugal's central bank has offered to partly compensate Novo Banco bondholders who lost money when their securities were transferred to a "bad bank" last month in a bid to ease tensions with the government and furious international investors. According to the FT, the move is seen as an attempt to repair reputational damage caused by losses suffered on almost EUR2 billion of bonds, which provoked threats of lawsuits. One investor present at a meeting with the central bank of Portugal last week said the offer was "better than nothing" but it would not stop bondholders taking legal action because it would only cover part of their losses, the FT relates. The central bank of Portugal last month moved five out of 52 senior Novo Banco bond issues to the "bad bank" that it had set up to hold the lender's toxic assets after a bailout of Banco Espirito Santo in mid-2014, the FT recounts. Investors who suffered losses on Novo Banco bonds in the final week of 2015 are threatening to sue Portugal's central bank, the FT discloses. They say that it discriminated against them by only imposing losses on certain bondholders and not others, the FT notes. At a meeting with the Portuguese central bank last week, it told investors of plans to set up a fund backed by the country's bank resolution vehicle, the FT relates. This is funded by all the country's banks, to partially cover the losses on the bonds, the FT states. The "no creditor worse off" commitment from the central bank is designed to ensure that an investor's losses are no greater than if BES had been liquidated in 2014, the FT says. The Lisbon authorities have hired Deloitte to calculate a liquidation value of BES, according to the FT. The resolution fund is the controlling shareholder in Novo Banco after injecting EUR4.9 billion to rescue it from the ashes of BES, which collapsed amid allegations of fraud, the FT discloses. Headquartered in Lisbon, Novo Banco, S.A. provides various financial products and services to private, corporate, and institutional customers. * * * As reported in the Troubled Company Reporter-Europe on Jan. 6, 2016, Moody's Investors Service downgraded to Caa1 from B2 the senior debt and long-term deposit ratings of Portugal's Novo Banco, S.A. and its supported entities. This follows the Bank of Portugal's (BoP) announcement on Dec. 29, 2015, that it had approved the recapitalization of Novo Banco by transferring EUR1,985 million of senior debt back to Banco Espirito Santo, S.A. (BES unrated). Moody's said the outlook on Novo Banco's deposit and senior debt ratings is now developing. The rating agency also downgraded to C from B2 (on review for downgrade) the rating on Novo Banco's senior debt securities transferred to BES (ISINs PTBEQBOM0010, PTBENIOM0016, PTBENJOM0015, PTBENKOM0012 and PTBEQKOM0019). Subsequently, Moody's will withdraw the ratings on these senior bonds. The downgrade and withdrawal have been triggered by the transfer of these senior debt instruments to BES, a bank which is being liquidated and for which the BoP has asked the European Central Bank (ECB) to revoke its banking license. At the same time, Moody's downgraded to B2(cr) from B1(cr) Novo Banco's counterparty risk assessment (CRA) and affirmed its short-term deposit and senior debt ratings at Not-Prime and short-term CRA at Not Prime(cr). Novo Banco's baseline credit assessment (BCA) was also confirmed at caa2. This rating action concludes the review for downgrade on Novo Banco's ratings, which was initiated on Nov. 18, 2015. Novo Banco's Ba1 rated senior bonds, which are guaranteed by the Republic of Portugal (Ba1 stable), are unaffected by the rating action. =========== R U S S I A =========== BALTINVESTBANK: Moody's Cuts Nat'l Scale Rating to Caa1.ru ---------------------------------------------------------- Moody's Interfax Rating Agency downgraded to Caa1.ru from B3.ru the national scale long-term deposit rating (NSR) of Baltinvestbank (Russia). The NSRs carry no specific outlooks. RATINGS RATIONALE The conclusion of the review of the bank's ratings follows the Central Bank of Russia's (CBR) announcement that the state Deposit Insurance Agency (DIA) had taken Baltinvestbank into temporary administration with a subsequent financial rehabilitation procedure, which will involve Absolut Bank (rated b1/B1 negative on BCA and deposit ratings) as an investor bank and will be supported by financial facilities provided by the DIA. According to the financial rehabilitation plan, the DIA has already provided Baltinvestbank directly and via Absolut Bank with loan facilities totalling RUB32.3 billion in order to cover the anticipated shortfall in the bank's net assets and to support its liquidity position. Baltinvestbank's rating reflects the bank's very weak standalone credit profile. Since November 2015, the bank has been operating under the regulatory forbearance mode, whereby its statutory core Tier 1 capital adequacy ratio (N1.1) of 3.1% and its total capital adequacy ratio of 3.3% -- reported at December 1, 2015 -- stood below the regulatory minimum requirements of 5% and 10%, respectively. Moody's notes that Baltinvestbank's liquidity profile is heavily supported by the loans provided by the DIA, while without this support the bank's liquidity position would have been fully depleted. Moody's notes that the bank's ratings now incorporate the moderate degree of government support, taking into consideration the substantial magnitude of the financial support channelled from the DIA to the bank, either directly or via Absolut Bank. WHAT COULD MOVE THE RATINGS UP/DOWN Baltinvestbank's national scale deposit rating could be upgraded if the bank recovers to adequate and sustainable capital and liquidity levels, which, however, may be achieved only through a medium-to-long term financial rehabilitation process. Moody's could downgrade Baltinvestbank's rating if the financial rehabilitation plan fails to achieve its objectives and the bank's financial metrics deteriorate further, leading to a risk of revocation of the bank's license. BALTINVESTBANK: Moody's Cuts LT Currency Deposit Ratings to Caa3 ---------------------------------------------------------------- Moody's Investors Service downgraded Baltinvestbank's long-term global local and foreign currency deposit ratings to Caa3 from Caa2 and assigned a positive outlook to these ratings. The rating agency has also affirmed the bank's Not-Prime short-term local and foreign currency deposit ratings. At the same time, Moody's has downgraded the bank's Baseline Credit Assessment (BCA) and Adjusted BCA to ca from caa2. Moody's has also downgraded Baltinvestbank's long-term Counterparty Risk Assessment (CR Assessment) to Caa2(cr) from Caa1(cr) and affirmed the bank's short-term CR Assessment of Not- Prime(cr). RATINGS RATIONALE The conclusion of the review of the bank's ratings follows the Central Bank of Russia's (CBR) announcement that the state Deposit Insurance Agency (DIA) had taken Baltinvestbank into temporary administration with a subsequent financial rehabilitation procedure, which will involve Absolut Bank (rated b1/B1 negative on BCA and deposit ratings) as an investor bank and will be supported by financial facilities provided by the DIA. According to the financial rehabilitation plan, the DIA has already provided Baltinvestbank directly and via Absolut Bank with loan facilities totalling RUB32.3 billion in order to cover the anticipated shortfall in the bank's net assets and to support its liquidity position. Baltinvestbank's BCA and Adjusted BCA of ca reflects the bank's very weak standalone credit profile. Since November 2015, the bank has been operating under the regulatory forbearance mode, whereby its statutory core Tier 1 capital adequacy ratio (N1.1) of 3.1% and its total capital adequacy ratio of 3.3% -- reported at December 1, 2015 -- stood below the regulatory minimum requirements of 5% and 10%, respectively. Moody's notes that Baltinvestbank's liquidity profile is heavily supported by the loans provided by the DIA, while without this support the bank's liquidity position would have been fully depleted. Moody's notes that the bank's global local and foreign currency deposit ratings of Caa3 now incorporate one notch uplift from its BCA. This is a result of the moderate degree of government support incorporated by the rating agency in the bank's ratings, taking into consideration the substantial magnitude of the financial support channelled from the DIA to the bank, either directly or via Absolut Bank, as discussed above. RATING OUTLOOK Positive outlook on the bank's ratings reflects Moody's expectations of integration of Baltinvestbank with Absolut Bank, with the prospects of consolidation of Baltinvestbank into financially stronger Absolut Bank in the medium term. WHAT COULD MOVE THE RATINGS UP/DOWN Baltinvestbank's deposit ratings could be upgraded if the bank recovers to adequate and sustainable capital and liquidity levels, which, however, may be achieved only through a medium-to- long term financial rehabilitation process. Moody's could downgrade Baltinvestbank's ratings if the financial rehabilitation plan fails to achieve its objectives and the bank's financial metrics deteriorate further, leading to a risk of revocation of the bank's license. CAJAMAR 1: Moody's Assigns Caa1(sf) Rating to Class B Notes ----------------------------------------------------------- Moody's Investors Service assigned definitive ratings to two classes of notes issued by IM BCC Cajamar 1, Fondo de Titulizacion: -- EUR615 million Class A Notes, Definitive Rating Assigned A1 (sf) -- EUR135 million Class B Notes, Definitive Rating Assigned Caa1 (sf) The transaction is a securitisation of Spanish prime mortgage loans originated by Cajamar Caja Rural Sociedad Cooperativa de Credito("CAJAMAR") (Not Rated) to obligors located in Spain. CAJAMAR will service all loans. The assets being securitized are all backed by residential properties in Spain. The rating addresses the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal for the Class A notes by the legal final maturity. Moody's ratings only address the credit risk associated with the transaction. Other non credit risks have not been addressed, but may have a significant effect on yield to investors. RATINGS RATIONALE IM BCC Cajamar 1, FT is a securitization of loans granted by Cajamar Caja Rural Sociedad Cooperativa de Credito ("CAJAMAR") (Not Rated) to Spanish individuals. CAJAMAR is acting as Servicer of the loans while InterMoney Titulizacion S.G.F.T., S.A. is the Management Company ("Gestora"). The ratings of the notes take into account the credit quality of the underlying mortgage loan pool, from which Moody's determined the MILAN Credit Enhancement and the portfolio expected loss. The key drivers for the portfolio expected loss of 7.5% are (i) benchmarking with comparable transactions in the Spanish market via analysis of book data provided by the seller and (ii) Moody's outlook on Spanish RMBS in combination with historic recovery data of foreclosures received from the seller. The key drivers for the 25% MILAN Credit Enhancement number, which is in line with other RMBS transactions, are (i) relatively good WA current LTV (68.7% based on original valuations); (ii) good seasoning of 5.29 years; (iii) the potential renegotiations that the loans may incur. According to Moody's, the deal has the following credit strengths: (i) sequential amortization of the notes (ii) a reserve fund fully funded upfront equal to 3% of the Class A and Class B notes to cover potential shortfall in interest on class A. The reserve fund will represent 3% of the outstanding balance of the notes. The portfolio mainly contains floating-rate loans linked to 12- month EURIBOR, Fixed rate loans and Indices de Referencia de Prestamos Hipotecarios, conjunto entidades de credito (IRPH), and most of them reset annually; whereas the notes are linked to one- month EURIBOR and reset monthly. There is no interest rate swap in place to cover this interest rate risk. Moody's takes into account the potential interest rate exposure as part of its cash flow analysis when determining the ratings of the notes. Factors that would lead to an upgrade or downgrade of the ratings: Factors that may lead to an upgrade of the ratings include a significantly better than expected performance of the pool, together with an increase in credit enhancement for the notes. Factors that may cause a downgrade of the ratings include significantly different loss assumptions compared with our expectations at close due to either a change in economic conditions from our central scenario forecast or idiosyncratic performance factors would lead to rating actions. Finally, a change in Spain's sovereign risk may also result in subsequent upgrade or downgrade of the notes. Stress Scenarios: Moody's Parameter Sensitivities provide a quantitative/model- indicated calculation of the number of rating notches that a Moody's structured finance security may vary if certain input parameters used in the initial rating process differed. The analysis assumes that the deal has not aged and is not intended to measure how the rating of the security might migrate over time, but rather how the initial rating of the security might have differed if key rating input parameters were varied. Parameter Sensitivities for the typical EMEA RMBS transaction are calculated by stressing key variable inputs in Moody's primary rating model. At the time the rating was assigned, the model output indicated that the Class A notes would have achieved an A1 even if the expected loss was as high as 9.4% and the MILAN CE was 25% and all other factors were constant. The analysis undertaken by Moody's at the initial assignment of ratings for RMBS securities may focus on aspects that become less relevant or typically remain unchanged during the surveillance stage. Please see Moody's Approach to Rating RMBS Using the MILAN Framework for further information on Moody's analysis at the initial rating assignment and the on-going surveillance in RMBS. MIRAF-BANK JSC: Placed Under Provisional Administration ------------------------------------------------------- The Bank of Russia, by its Order No. OD-137 dated January 21, 2016, revoked the banking license of Omsk-based credit institution JSC Miraf-Bank from January 21, 2016. The Bank of Russia took such an extreme measure -- revocation of the banking license -- because of the credit institution's failure to comply with federal banking laws and Bank of Russia regulations, revealed facts of considerable unreliability of the reporting data, repeated violations within a year of the requirements of Articles 6 and 7 (except for Clause 3 of Article 7) of the Federal Law "On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism", inability to meet the creditors' claims on monetary obligations, and application of supervisory measures envisaged by the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)". JSC Miraf-Bank placed funds into low-quality assets and failed to create provisions adequate to the risks assumed. Due to the unsatisfactory quality of assets which failed to generate sufficient cash flows, the credit institution failed to timely meet its obligations to creditors. At the same time, the bank presented to the supervisor considerably unreliable statements which concealed reasons for the revocation of the banking license. Besides, JSC Miraf-Bank did not comply with the requirements of the legislation on anti-money laundering and the financing of terrorism in terms of timely notification of the authorized body about operations subject to obligatory control. The management and owners of the bank did not take measures to normalize its activities. In these circumstances, pursuant to Article 20 of the Federal Law "On Banks and Banking Activities", the Bank of Russia revoked the banking license from JSC Miraf- Bank. By its Order No. OD-138, dated January 21, 2016, the Bank of Russia has appointed a provisional administration to JSC Miraf- Bank for the period until the appointment of a receiver pursuant to the Federal Law "On Insolvency (Bankruptcy)" or a liquidator under Article 23.1 of the Federal Law "On Banks and Banking Activities". In accordance with federal laws, the powers of the credit institution's executive bodies are suspended. JSC Miraf-Bank is a member of the deposit insurance system. The revocation of banking license is an insured event envisaged by Federal Law No. 177-FZ "On Insurance of Household Deposits with Russian Banks" regarding the bank's obligations on deposits of households determined in accordance with the legislation. This Federal Law provides for the payment of insurance indemnity to the bank's depositors, including individual entrepreneurs, in the amount of 100% of their balances but not exceeding the total of 1.4 million rubles per depositor. According to the financial statements, as of January 1, 2016, JSC Miraf-Bank ranked 358th by assets in the Russian banking system. TURBOBANK JSC: Placed Under Provisional Administration ------------------------------------------------------ The Bank of Russia, by its Order No. OD-139 dated January 21, 2016, revoked the banking license of Saint Petersburg-based credit institution JSC JSCB Turbobank from January 21, 2016. The Bank of Russia took such an extreme measure -- revocation of the banking license -- due to the credit institution's failure to comply with federal banking laws and Bank of Russia regulations, repeated violations within one year of Bank of Russia requirements stipulated by Articles 6, 7 (excluding Clause 3 of Article 7) of the Federal Law "On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism", as well as Bank of Russia regulations issued in accordance with the said Federal Law, and application of measures envisaged by the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)". JSC JSCB Turbobank failed to comply with legislation requirements as regards countering the legalization (laundering) of criminally obtained incomes and the financing of terrorism, including but not limited to timely and detailed reporting to the authorized body. Besides, the credit institution was involved in large- value dubious transit operations. The management and owners of the credit institution did not take effective measures to normalize its activities. By its Order No. OD-140, dated January 21, 2016, the Bank of Russia has appointed a provisional administration to JSC JSCB Turbobank for the period until the appointment of a receiver pursuant to the federal law "On the Insolvency (Bankruptcy)" or a liquidator under Article 23.1 of the Federal Law "On Banks and Banking Activities". In accordance with federal laws, the powers of the credit institution's executive body are suspended. JSC JSCB Turbobank is a member of the deposit insurance system. The revocation of the banking license is an insured event envisaged by Federal Law No. 177-FZ "On Insurance of Household Deposits with Russian Banks" regarding the banks' obligations on deposits of households determined in accordance with legislation. This Federal Law provides for the payment of insurance indemnity to the bank's depositors, including individual entrepreneurs, in the amount of 100% of their balances but not exceeding the total of 1.4 million rubles per depositor. According to financial statements, as of January 1, 2016, JSC JSCB Turbobank ranked 662nd by assets in the Russian banking system. =========================== U N I T E D K I N G D O M =========================== BOLTON WANDERERS: Puts Forward Plan to Escape Administration ------------------------------------------------------------ Eleanor Ward at Business Sale Reports says that Bolton Wanderers Football Club are set to put forward their plan to escape administration at the High Court in London on Monday, January 18. Two men from the club will put the business plan forward to demonstrate how the club intends to repay some GBP3 million in debts, according to Business Sale Reports. If the plan is accepted, the club will be able to sell some assets immediately to continue operating in the short term, the report notes. However, if it is rejected, it looks like they will be forced to enter voluntary administration, the report discloses. The club is understandably keen to avoid administration as aside from the business problems its distressed status would bring, it would also mean that they would be hit with an instant 12-point deduction by the Football League, the report relays. Speaking to The Bolton News, manager Neil Lennon said: "We will endeavor to do everything we can to start winning games. That's our job. We believe in ourselves as a backroom team and we will keep going," the report notes. The main creditor to the club is Her Majesty's Revenue and Custom, which is owed GBP2.2 million, while it is thought a mixture of creditors are owed the remaining GBP800,000, the report relays. The paper also reported that the club is expected to tell the court that it is close to concluding its hunt for a new owner, the report notes. However, the official line at the moment is still that the situation is ongoing, the report relays. BRADFORD DEVELOPMENTS: Regeneration Project Hit by Administration ----------------------------------------------------------------- Mark Stanford at Telegraph and Argus reports that the GBP45 million development of more than 700 apartments in Bradford has been hit by a further setback after its developer went into administration. The Citygate scheme, featuring 705 apartments split into six blocks, was seen as a key project to redevelop a run-down site at the bottom of Manchester Road, according to Telegraph and Argus. Now Bradford Developments (Yorkshire) Limited, a subsidiary of York-based developer Skelwith Group, has been placed into administration, according to Companies House, the report relays. It's previous company name was Aspire (Citygate) Limited between June 2010 and August last year. Martin Chambers, director of Bradford Developments (Yorkshire) Limited, also confirmed the administration and the firm held a meeting of its directors, the report relays. Begbies Traynor, based in Leeds, has been appointed as the firm's administrators. The regeneration project was originally announced in 2005, when Bradford Trident held a competition to find a developer, the report notes. The Citygate scheme was resurrected by the Skelwith Group after the previous developer, Asquith Properties, hit financial difficulties in 2008, the report notes. The original plans included a 38-storey glass tower, but this part of the project was scrapped in 2011. Some revisions were made to the first phase plans as Bradford Council planning officers were concerned about the predominance of one-bedroom apartments and insufficient parking, the report says. The new-look project was granted planning permission by Bradford Council in May 2012 to develop the former Reyner House parade of 1960s shops and flats, the report notes. It was to provide contemporary and sustainable homes starting from GBP50,000, the report relays. Councillor Val Slater, Bradford Council's portfolio holder for housing, planning and transport, called on other developers to take on the long-running scheme following the administration announcement, the report discloses. G&T PARTNERSHIP: In Liquidation, Golf Course Closes --------------------------------------------------- The Banbury Guardian reports that a golf course near Banbury has closed after the leaseholders went into voluntary liquidation although it hopes to reopen at a future date under new management. G&T Partnership, the leaseholders of Rye Hill Golf Club, has ceased trading and has temporarily closed the club, ending the employment of its staff, according to The Banbury Guardian. Fieldstead Insolvency, which is based in Aylesbury, has been appointed to oversee the firm's liquidation. A meeting with shareholders and creditors is due to be held on February 1. But staff are currently in talks with the landlord and it is hoped the golf course will reopen with new management to be followed by clubhouse improvements, the report notes. In a letter to members, Greg Heath, managing director of G&T said: "It is with a heavy heart and a great deal of sadness that I have to tell you that G&T Partnership Limited is entering in to voluntary liquidation," the report notes. "May I take this opportunity to thank you all for your support and I am genuinely sorry to have to exit in this way," Mr. Heath added. HERITAGE FA: Ordered Into Provisional Liquidation ------------------------------------------------- wired-gov.net reports that Heritage FA Limited has been ordered into provisional liquidation following a petition presented by the Secretary of State for Business, Innovation & Skills to wind up the company on grounds of public interest. The petition was issued following confidential enquiries carried out by Company Investigations, part of the Insolvency Service, under section 447 of the Companies Act 1985, as amended, according to wired-gov.net. The report notes that the court has appointed the Official Receiver provisional liquidator of the company, on the application of the Secretary of State, without notice to the company. The role of the Official Receiver is to protect the assets and financial records of the company pending determination of the petition, the report relays. The provisional liquidator also has the power to investigate the affairs of the company insofar as it is necessary to protect its assets including any third party or trust monies or assets in the possession of or under the control of the company, the report notes. Chris Mayhew, Company Investigations Supervisor, said: "As the matter is before the Court no further information will be made available about the case until the petition is determined by the Court. The petition is listed for first hearing on March 9, 2016." Heritage FA Limited is based in the City of London. It is selling colored diamonds to the public for investment. =============== X X X X X X X X =============== * BOOK REVIEW: The Financial Giants In United States History ------------------------------------------------------------ Author: Meade Minnigerode Publisher: Beard Books Softcover: 260 pages List Price: $34.95 Order your personal copy today at http://is.gd/tJWvs2 The financial giants were Stephen Girard, John Jacob Astor, Jay Cooke, Daniel Drew, Cornelius Vanderbilt, Jay Gould, and Jim Fisk. The accomplishments of some have made them household names today. But all were active in the mid 1800s. This was a time when the United States, having freed itself from Great Britain only a few decades earlier, was gaining its stride as an independent nation. The country was expanding westward, starting to engage in significant international trade, and laying the foundations for becoming a major industrial power. Astor, Vanderbilt, Gould, and the others played major parts in all these areas. During the Civil War in the first half of the 1860s, some became leading suppliers of goods or financiers to the Federal government. Minnigerode's focus is the highlights of the life of each of the seven. Along with this, he identifies each one's prime characteristics contributing to his road to fortune and how his life turned out in the end. Not all of the men managed to keep and pass on the fortunes they amassed. They are seen a "financial giants" not only because they made fortunes in the early days of American business and industry, but also for their place in laying out the groundwork for American business enterprise, innovation, and leadership, and for the notoriety they had in their day. Minnigerode summarizes the style or achievement of each man in a single word or short phrase. Stephan Girard is "The Merchant Banker"; Cornelius Vanderbilt, "The Commodore." "The Old Man of the Street" summarizes Daniel Drew"; with "The Wizard of Wall Street" summarizing Jay Gould. Jim Fisk is "The Mountebank." Jay Cooke, "The Tycoon," was to be "known throughout the country for his astonishingly successful handling of the great Federal loans which financed the Civil War." After the War, one of the leaders of the Confederacy remarked that the South was really defeated in the Federal Treasury Department thus, even on the enemy side, giving recognition to Cooke's invaluable work of enabling the Federal government to meet the huge costs of the War. After the War, having earned the reputation as "the foremost financier in the country," Cooke became involved in many large financial ventures, including the building of a railroad to link the East and West coasts of America. In this railroad venture, however, Cooke and his banking firm made a fatal misstep in investing in the Northern Pacific railway. The Northern Pacific turned out to be a house of cards. When Cooke's firm was unable to meet interest payments it owed because of money it had put into the Northern Pacific, the firm went bankrupt; and this caused alarm in the stock market and financial circles. The roads to wealth of the "financial giants" were not smooth. Like others amassing great wealth, they had to take risks. The tales Minnigerode tells are not only instructive on how individuals have historically made fortunes in business and the characteristics they had for this, but are also cautionary tales on the contingency of great wealth in some circumstances. Jim Fisk, for instance, a larger-than life character "jovial and quick witted [who was also] a swindler and a bandit, a destroyer of law and an apostle of fraud," was presumably killed by a former business partner. Unlike Cooke and Fisk, Cornelius Vanderbilt and John Jacob Astor built fortunes that lasted generations. Vanderbilt - nicknamed Commodore - starting in the New York City area, built ships and established domestic and international merchant and passenger lines. With the government coming to depend on these with the rapid growth of commerce of the period and the Civil War for a time, Vanderbilt practically had monopolistic control of private shipping in the U.S. Astor made his fortune by developing trade and other business in the upper Midwest, which was at the time the sparsely-populated frontier of America, rich in natural resources and other potential with the Great Lakes and regional rivers as a means for transportation. Although the social and business conditions in the early and mid 1800s when the U.S. was in the early stages of its development were unique to that period, by concentrating on the characteristics, personalities, strategies, and activities of the seven outstanding businessmen of this period, Minnigerode highlights business traits and acumen that are timeless. His sharply-focused, short biographies are colorful and memorable. This author has written many other books and worked in the military and government. ********* 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 * * *