TCREUR_Public/160825.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, August 25, 2016, Vol. 17, No. 168


                            Headlines


A U S T R I A

HETA ASSET: Inquiry Prompts Call for Provincial Insolvency Law


F I N L A N D

STORA ENSO: S&P Affirms 'BB/B' CCRs & Revises Outlook to Positive


G R E E C E

OCEAN RIG: S&P Lowers CCR to 'CCC-' on Potential Debt Restructure


I R E L A N D

DEBENHAMS RETAIL: Exits Examinership, Limerick Store to Stay Open


I T A L Y

ASTALDI SPA: S&P Maintains 'B' CCR on CreditWatch Negative


N E T H E R L A N D S

MAXEDA DIY: S&P Lowers Corporate Credit Rating to 'B-'


R O M A N I A

OLTCHIM SA: Returns to Profit, Creditors Put Business Up for Sale


S P A I N

ABENGOA SA: Sells Five U.S. Ethanol Plants for US$357 Million
CAJA LABORAL: Moody's Withdraws Ba1 Deposit Ratings


U N I T E D   K I N G D O M

FOUR SEASONS: In Talks with Lenders to Resolve Long-Term Future
INNOVIA GROUP: S&P Affirms 'B' CCR & Revises Outlook to Positive
MASCOTT CONSTRUCTION: Gareth Loye Acquires Assets & Equipment
TRAVELPORT LIMITED: Moody's Affirms B2 CFR; Outlook Now Positive


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A U S T R I A
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HETA ASSET: Inquiry Prompts Call for Provincial Insolvency Law
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Alexander Weber at Bloomberg News reports that the Austrian
parliamentary committee digging into the failure of Hypo Alpe-
Adria-Bank International AG is set to call for a law that allows
provinces to go insolvent, saying this would stop regional
governments from running up too much debt or outsize guarantees.

Hypo Alpe, now turned into bad bank Heta Asset Resolution AG, was
nationalized in 2009 after bad loans in the former Yugoslavia
brought it to the brink of collapse, Bloomberg recounts.  Its
wind-down was complicated by the fact that the province of
Carinthia had issued guarantees for Heta's debt that peaked at
more than ten times its annual revenue, Bloomberg notes.

Austria should introduce an insolvency law for provinces and
municipalities to stop misconduct by local authorities and keep
investors from thinking that the tab will ultimately be picked up
by the federal government, according to the commission's draft
final report seen by Bloomberg.  The rules should only be
introduced after Carinthia's Heta obligations have phased out,
Bloomberg relays, citing the 507-page document.

Lawmakers in Vienna questioned more than 120 witnesses including
bankers, politicians and regulators after taxpayers pumped at
least EUR5.5 billion (US$6.2 billion) into Heta, Bloomberg
discloses.  The final report was drafted by the judge who led the
committee's investigation and has yet to be approved by committee
members, Bloomberg states.

According to Bloomberg, the amount of guarantees that provinces
and other local governments are allowed to issue should be kept
at a "justifiable" relation to their economic capacity, according
to the draft recommendations.

Heta Asset Resolution AG is a wind-down company owned by the
Republic of Austria.  Its statutory task is to dispose of the
non-performing portion of Hypo Alpe Adria, nationalized in 2009,
as effectively as possible while preserving value.


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F I N L A N D
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STORA ENSO: S&P Affirms 'BB/B' CCRs & Revises Outlook to Positive
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S&P Global Ratings revised its outlook on Finland-based forest
and paper products company Stora Enso Oyj to positive from
stable.  At the same time, S&P affirmed the 'BB/B' long- and
short-term corporate credit ratings and the 'K-4' short-term
Nordic regional scale rating on the company.

S&P also affirmed its 'BB' issue rating on Stora Enso's senior
unsecured debt.  The '4' recovery rating indicates S&P's
expectation of average recovery (30%-50%; lower half) in the
event of a payment default.

The outlook revision follows a period of improved profitability
and structural changes to Stora Enso's business portfolio that
S&P believes could result in a permanent strengthening of its
business risk profile.  S&P Global Ratings' adjusted EBITDA
margin for Stora Enso over the 12 months ended June 30, 2016, was
15.7%, marking an improvement over the 11.9% annual average seen
in 2010-2014.  The main drivers behind the improvement have been
the introduction of new profitable growth investments, such as
the Montes del Plata pulp mill in Uruguay, and stronger
performance in the paper segment due to cost cutting and the
disposal of low-performing assets.  S&P views positively the
completion of the Beihai paperboard mill in China, which was on
time and on budget and started production in May 2016.  S&P
thinks the mill's ramp-up mitigates concerns around execution and
timing risks, although it will take two years until it is fully
up and running.

"We think that Stora Enso's clear strategy to steer its business
portfolio away from declining paper and toward growing segments
such as consumer paperboard and containerboard makes sense,
because these segments enjoy healthy growth prospects at least in
line with GDP growth in its countries of operation.  We also
consider as a strength Stora Enso's targeting of higher-end
products, as evidenced by the completed conversion of the Varkaus
paper mill into containerboard, the conversion of the Skutskar
pulp mill into fluff pulp, and investments in the sawn timber
division.  We anticipate that these measures, teamed with
continued stringent cost control in the paper segment, could lead
to a business portfolio that is less cyclical and less exposed to
structurally declining segments, while continuing to enjoy solid
growth prospects," S&P noted.

That said, S&P views the operating environment in the coming 12
months as potentially challenging for Stora Enso.  This is based
on our expectation of a sustained period of lower pulp prices and
possible price pressure for paperboard and containerboard in
Europe due to new capacity coming online (including Stora Enso's
kraftliner volumes from its Varkaus mill) causing temporary
overcapacity.  In addition, in light of an uncertain economic
outlook in Europe, S&P sees potential for an accelerated decline
in paper demand and renewed pricing pressure.  Despite these
potential downside scenarios, S&P sees a fair likelihood that
Stora Enso's recent positive momentum could lead S&P to favorably
reassess the company's business risk profile in 2017.

Stora Enso's financial profile has strengthened in tandem with
its operational performance in the past 12 months, with a ratio
of funds from operations (FFO) to debt currently around 25%
versus approximately 20% in 2012-2014.  S&P views positively the
company's clearly stated financial target to maintain reported
net debt to EBITDA below 3.0x (which is equivalent to about 3.8x
including S&P's adjustments) as this limits downside to the
financial risk profile, in S&P's view.  S&P thinks that any
further improvements in credit metrics hinge on Stora Enso's
growth strategy and the extent in which it will enter any new
large scale investments, for example by investing into additional
containerboard capacity at the Ostroleka mill in Poland or by
investing into a large-scale pulp mill next to the paperboard
mill in China.

In S&P's base case, it assumes:

   -- Eurozone GDP growth of 1.7% in 2016, declining to 1.3% in
      2017.  Stronger growth in Eastern Europe, where Stora Enso
      is exposed through its paper packaging operations.  Paper
      volumes to fall by about 10% in 2016 following disposals
      and structural demand decline and continuing to fall in
      2017-2018.  S&P expects a structural demand decline of 3%-
      5% per year in Europe.  S&P assumes a slight price increase
      on average in 2016, followed by stable to slightly
      declining prices and that the company's ability to control
      costs will determine profitability.

   -- Price pressure for pulp to lead to lower sales and earnings
      in the biomaterials business segment but EBITDA margins to
      remain above 24%.  New volumes from the Varkaus
      containerboard mill to boost sales in the packaging
      business but some price pressure to weaken margins.

   -- Possible price pressure in consumer paperboard due to
      temporary overcapacity in Europe.

   -- Overall group sales to weaken slightly in 2016 and increase
      slightly from 2017 and onwards.

   -- EBITDA margins to remain steady in 2016 and improve
      slightly in 2017 following declining paper contribution and
      growth in higher margin businesses.

   -- Lower capital expenditures of about EUR750 million in 2016,
      dropping to EUR650 million per year over 2017-2020 as the
      company is now through its large investment phase.

   -- Dividends to rise in line with dividend policy.

Based on these assumptions, S&P arrives at these credit measures:

   -- FFO to debt to remain at around 25% in 2016, followed by
      slight improvements from 2017.
   -- Adjusted debt to EBITDA of about 3.0x.
   -- Free operating cash flow (FOCF; cash flow after
      investments) to debt of above 10%.

The positive outlook indicates S&P's view of at least a one-in
three likelihood of upgrading Stora Enso to 'BB+' in the coming
12 months if S&P was to assess that its business risk profile has
strengthened sustainably.  S&P expects Stora Enso to maintain a
ratio of FFO to debt of above 20% at all times.

S&P could revise the outlook to stable if Stora Enso's
operational performance weakened, for example due to severe
pricing pressure for pulp and paperboard and the Beihai
paperboard mill not performing in line with expectations due to
slowing economic growth in China.  S&P could also revise the
outlook to stable if Stora Enso's financial risk profile
deteriorated, for example due to large acquisitions or a marked
increase in shareholder remuneration, although S&P sees such a
scenario as unlikely in the coming two to three years.

S&P could raise the rating if Stora Enso establishes a track
record of sustained profitability improvement with group EBITDA
margins of about 15% going forward.  A successful ramp-up of the
Beihai paperboard mill and contained downside risk in the paper
segment are also factors we consider important for an upgrade.
Furthermore, S&P would expect Stora Enso to contain project and
execution risks in future expansion projects compared with recent
large-scale investments.  An upgrade will also hinge on continued
cautious dividend policy and maintenance of its stated leverage
target.


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G R E E C E
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OCEAN RIG: S&P Lowers CCR to 'CCC-' on Potential Debt Restructure
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S&P Global Ratings said that it lowered its long-term corporate
credit rating on Marshall Islands-domiciled drilling company
Ocean Rig UDW Inc. to 'CCC-' from 'CCC+'.  The outlook is
negative.

At the same time, S&P lowered its issue ratings on:

   -- Drillships Ocean Ventures Inc.'s $1.3 billion term loan B
      facility to 'CCC-' from 'CCC+'.  The '3' recovery rating
      reflects recovery expectations in the higher half of the
      50%-70% range.  Drill Rigs Holdings Inc.'s $800 million
      senior secured notes to 'CCC-' from 'CCC+'.  The '3'
      recovery rating is unchanged, with recovery expectations in
      the lower half of the 50%-70% range.

   -- Drillships Financing Holding Inc.'s $1.9 billion term loan
      B1 facility to 'CCC-' from 'CCC+'.  The '3' recovery rating
      reflects recovery expectations in the higher half of the
      50%-70% range.  Ocean Rig's $500 million senior unsecured
      notes due in 2019 to 'CC' from 'CCC-'.  The '6' recovery
      rating is unchanged.

The downgrade follows the company's intention to pursue changes
in the current capital structure.  According to management, the
very weak demand for drilling rigs and the current net debt
position (as of June 30, 2016 the reported net debt was $3.2
billion), rendered the capital structure unsustainable.  S&P
understands that some of the alternatives to reduce the overall
debt level include reorganization under U.S. bankruptcy laws.

Under S&P's criteria, it views a distressed exchange offer as
tantamount to default, which will ultimately lead S&P to lower
the rating on Ocean Rig to 'SD' (selective default).  This would
be the case if lenders received less than the original value of
the loan--for example, if the tenor were extended without
appropriate compensation (maybe through an amendment fee or an
adequate interest rate increase), or if the interest or principal
were reduced.

S&P understands that the company has started the discussions with
debt holders.  As a result, S&P views a high probability of it
lowering the rating to 'SD' in the coming quarters.

On the back of the liability management exercise, Ocean Rig
recently concluded an agreement with Korean shipyard, Samsung
Heavy Industry.  Under this agreement, the delivery of the two
new drilling rigs (Ocean Rig Santorini and Ocean Rig Crete) will
be delayed to June 2018 and January 2019 in return for an
immediate payment of about $200 million.  As part of the
agreement, the parent company will not guarantee future payments,
and effectively the delivery of the two drilling rigs would be
subject to future market conditions.  After the agreement, the
company's maintenance will drop to $20 million-$30 million in the
coming 12 months, allowing it to generate positive free operating
cash flows.  In S&P's view, the agreement should allow Ocean Rig
to meet all its financial obligations in the coming 12 months,
supporting S&P's current less-than-adequate liquidity assessment.

S&P has also revised its management and government assessment to
weak, reflecting a number of opportunistic transactions that
diluted Ocean Rig's cash balance over the last few quarters
(including acquiring a rig for $65 million and the buy back of
notes maturing in 2019).

The negative outlook reflects the risk of Ocean Rig defaulting in
the coming months, if it reaches an agreement with its lenders to
restructure its debt or filed for Chapter 11.  S&P understands
that negotiations with some debt holders are undergoing.

Moreover, over the long-term, S&P could also consider the company
to have defaulted if it breaches its financial covenants,
resulting in an acceleration of the debt, or if the company does
not secure new contracts while need to meeting its $530 million
maturity in the second half of 2017.

S&P would likely lower the ratings to 'SD' if Ocean Rig reached
an agreement with the lending banks, resulting in a distressed
exchange offer.

After the completion of such an exchange, S&P would raise the
rating on Ocean Rig, taking into account the improved liquidity
and more comfortable debt maturity.

S&P could take a positive rating action if the outlook for the
drilling sector improved and the company decided to cease the
discussions over its capital structure.  In S&P's view, this
scenario should be supported by an improvement in the liquidity
position, including sufficient headroom under the covenants to
absorb shocks in the market.


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I R E L A N D
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DEBENHAMS RETAIL: Exits Examinership, Limerick Store to Stay Open
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Nick Rabbitts at Limerick Leader reports that Limerick's branch
of Debenhams is set to remain open after its parent company's
exit from examinership was approved by the High Court.

There were fears for dozens of local jobs in May after an interim
examiner was appointed to Debenhams Retail (Ireland), a wholly-
owned subsidiary of Debenhams, Limerick Leader notes.

But now a scheme, put together by examiner Kieran Wallace of KPMG
and agreed by the majority of Debenhams' creditors, was formally
approved by Justice Caroline Costello at the High Court in
Dublin, Limerick Leader relates.

The company was to formally exit examinership Aug. 24, Limerick
Leader discloses.

Debenhams agreed terms with the US fund Marathon Asset
Management, which paved the way for the firm's exit from
examinership, Limerick Leader relays.

Debenhams Retail (Ireland) Ltd. directly employs 1,400 staff.


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I T A L Y
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ASTALDI SPA: S&P Maintains 'B' CCR on CreditWatch Negative
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S&P Global Ratings maintained its CreditWatch with negative
implications on the 'B' long-term corporate credit rating on
incorporated civil engineering and construction company Astaldi
SpA.

The 'B' issue rating on Astaldi's EUR750 million senior unsecured
notes remains on CreditWatch negative.  The recovery rating on
this debt remains unchanged at '4'.

S&P's decision to keep Astaldi's ratings on CreditWatch with
negative implications follows a continued outflow of working
capital in the second quarter of 2016, contrary to S&P's previous
expectations that the position would improve.  In S&P's view,
Astaldi's liquidity remains vulnerable to cash outflows and could
further deteriorate over the short term, unless the working
capital position improves in the third quarter.  At the same
time, S&P notes that in July the company successfully reset its
financial covenants to a more comfortable level.

In the six months to June 2016, net working capital increased by
about EUR320 million, because Astaldi invested in several current
projects -- including the third bridge over Turkey's Bosphorus,
motorways in Russia and Poland, in the absence of higher advance
payments under new contracts.

"We expect the situation will improve in the second half of the
year in line with the seasonal working capital cycle -- a release
of funds usually happens in the third and fourth quarters -- and
due to expected higher advance payments for a railway tunnel
project in Italy.  We also assume that working capital management
will improve on the back of management's effort to enhance
financial discipline and reduce leverage in line with the
medium-term business plan that was presented in May 2016.
Moreover, in the third quarter Astaldi is due to receive the
EUR110 million of cash for the sale of its shares in A4 Holding,
an Italian motorway concessions operator, which it closed in May
2016.  We understand these funds will go toward repaying short-
term debt.  As a result, we estimate that at the end of 2016
gross debt and leverage will remain broadly the same as at end-
2015, at about EUR1.95 billion and with adjusted debt to EBITDA
of about 5.7x," S&P said.

In July, Astaldi agreed with its banks to reset leverage
covenants on its EUR500 million revolving credit facility (RCF)
to higher thresholds until the final maturity of this line in
2019.  S&P forecasts that, at least for the next 12 months,
Astaldi will have adequate headroom under these covenants, which
in S&P's view has somewhat diminished immediate pressure on the
liquidity position.

In the first half of 2016, Astaldi continued to grow its backlog
by winning about EUR2 billion in new contracts.  It also
gradually improved profitability by achieving EBITDA margins
somewhat above 2015, and completed several important projects in
Turkey and Italy on time and on budget.  It also signed a bridge
agreement with Nalcor Energy regarding the construction of the
Muskrat Falls hydroelectric plant in Canada, which has recently
experienced some technical difficulties, delays, and cost
overruns.  The agreement will allow Astaldi to continue work on
the project until the end of 2016, when S&P expects the contract
cost and timeframe will be reassessed, and a more permanent
agreement signed between the parties.  S&P don't forecast any
further negative impact on Astaldi's profitability or additional
working capital outflows in respect of this project.

The ratings continue to reflect Astaldi's operations in the
cyclical engineering and construction industry; its moderate size
by global standards; and its exposure to country risks in
emerging markets.  Moreover, the company is subject to operating
and contract risks and potential execution issues stemming from
large projects within its portfolio, as well as from a relatively
high proportion of fixed-price contracts in its construction
business which account for about half of total contracts, and
reduce flexibility.  Nevertheless, S&P's view of Astaldi's
business risk profile is supported by its solid market position
in the transportation infrastructure industry and proven ability
to deliver large and technically complex projects, good
visibility on revenues thanks to a sizable order backlog in
execution (about EUR19 billion in execution as of June 30, 2016),
and relatively sound and stable profit margins.

"We forecast that Astaldi's financial profile will likely remain
highly leveraged over the next couple of years, although we
expect credit metrics will gradually improve following
management's efforts to increase cash flow generation and working
capital discipline and reduce gross debt.  We forecast that 2016
free operating cash flow (FOCF) will still be negative due to
substantial investment in working capital and concession
projects. From 2017, however, we expect it to become at least
break-even. Astaldi is also continuing with its plans to focus on
construction activity and reduce its involvement in the
concession business, which require large capital investment.
Apart from the share in A4 Holding that it sold in May, Astaldi
plans to dispose of other concession assets in Chile, Italy, and
Turkey in 2017-2019 for a total estimated value of about EUR600
million-EUR700 million, and to use the proceeds to repay debt.
We currently do not factor these transactions into our base case
because the exact timing and the amounts are uncertain and, in
our view, remain subject to execution risks," S&P said.

S&P's base-case scenario assumes:

   -- Revenues to increase by about 3.5% in 2016 and 5.0%-5.5%
      per year in 2017-2018, on the back of the existing backlog
      and new order intake;

   -- Adjusted EBITDA margin to gradually improve to about 10.5%
      in 2016-2017, compared with 10.2% in 2015;

   -- A nonseasonal outflow of working capital of about
      EUR110 million in 2016 due to investment into new projects,
      followed by some release of funds in 2017, as the company
      implements its plans to improve working capital management;

   -- Capital expenditure (capex) and investments in concessions
      totaling about EUR110 million-EUR160 million per year;

   -- Dividends of about EUR20 million per year; and

   -- EUR110 million to be received in the second half of 2016
      for the sale of A4 Holding.

Based on these assumptions, S&P arrives at these credit measures:

   -- Negative FOCF in 2016, before breakeven in 2017;
   -- Weighted-average funds from operations (FFO) to debt of
      about 7.5%; and
   -- Adjusted debt to EBITDA of about 5.3x.

The CreditWatch negative placement reflects a one-in-two
probability that S&P may lower the rating by one or more notches
if the company does not restore its working capital position in
the third quarter of 2016.  S&P aims to resolve the CreditWatch
once S&P reviews the third-quarter financial results and reassess
the company's liquidity position.

S&P could lower the rating by one or more notches if the net
working capital position does not improve, leading to a material
deficit of liquidity sources versus uses and increased exposure
to short-term refinancing risks.  Any deterioration in borrowing
terms on the local market, or increasing uncertainty regarding
payments on any of its contracts, especially in the light of
geopolitical risks in Turkey, could also lead S&P to downgrade
Astaldi.

S&P could remove the CreditWatch negative placement and affirm
the rating if S&P observed a cash inflow from collection of due
contract payments and advances on new projects, as well as the
cash-in for the A4 Holding sale.


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MAXEDA DIY: S&P Lowers Corporate Credit Rating to 'B-'
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S&P Global Ratings lowered to 'B-' from 'B' its corporate credit
rating on Netherlands-based do-it-yourself (DIY) retailer Maxeda
DIY B.V., which operates across the Benelux region.

At the same time, S&P also lowered the issue rating to 'B-' from
'B' on Maxeda's senior secured term facilities, which comprise a
EUR20 million revolving credit facility (RCF) and EUR484 million
of term loans.  The recovery rating on the debt is unchanged at
'4', indicating S&P's expectations of recovery prospects in the
higher half of the 30%-50% range.

The downgrades reflect S&P's view that the prospect of Maxeda
experiencing a quick recovery, which S&P had factored into the
previous rating, has diminished due to S&P's expectations of a
more prolonged period of soft operating conditions.  S&P now
expects management's turnaround plan to deliver a slower
recovery, and have therefore revised S&P's assessment of Maxeda's
business risk profile to weak from fair, albeit at the higher end
of the category.

S&P anticipates that Maxeda will maintain its position as the
leading DIY retailer in Belgium and No. 2 in The Netherlands.
That said, S&P expects competition will remain heightened and
will be exacerbated by the continued consumer shift to online.
As a result, S&P expects margins to remain under pressure over
the next two years, during which Maxeda will face continued
additional cash flow pressure from business restructuring costs
and elevated capital expenditure (capex).  At the same time, S&P
do not expect the company to derive the full benefit of the
operational efficiencies created by management's turnaround plan
in the near term.  Maxeda's modest overall scale and limited
diversity also weigh on S&P's assessment of its business risk.

"We continue to view Maxeda's financial risk profile as highly
leveraged.  In the past 12 months, the company successfully
completed an extension of its senior loan facilities and reset
its financial covenants.  During the period, all subordinated
debt was converted to equity, such that subordinated lenders
became controlling shareholders in Maxeda's indirect parent,
Maxeda DIY Group B.V.  We expect credit measures will improve in
the fiscal year ending Jan. 31, 2017, with adjusted debt to
EBITDA of about 5.5x and funds from operations (FFO) to debt of
about 10%. However, in our view, Maxeda's financial risk profile
will continue to be burdened by negative free operating cash flow
(FOCF) stemming from continued market pressures coupled with cost
inflation, ongoing restructuring costs, and elevated capex," S&P
said.

In addition, S&P forecasts that Maxeda's EBITDAR (EBITDA before
rent costs) coverage will remain at about 1.3x in fiscal 2017,
which places Maxeda at the weaker end of peers with a highly
leveraged financial risk profile.  S&P's base case also
anticipates tightening covenant headroom against step-down
covenants, particularly from June 2017.

S&P's base-case scenario assumes:

   -- Declining GDP growth in both Belgium and the Netherlands,
      with its forecast GDP of 1.4% in 2016 and 1.1% in 2017 for
      Belgium; and 1.8% in 2016 and 1.4% in 2017 for The
      Netherlands;

   -- Relatively flat revenue growth in 2017 and 2018 of 1%-2%,
      supported by selective store expansion in existing markets;

   -- EBITDA margin expansion of 50-100 basis points over the
      next two years, fueled by continued realization of cost
      improvements together with declining restructuring,
      transformation, and exceptional costs; and

   -- Capex of EUR35 million-EUR45 million per year.

Based on these assumptions, and following the expected completion
of the refinancing transaction, S&P arrives at these credit
measures over 2016 and 2017:

   -- FFO to debt of 7%-12%;
   -- Adjusted debt to EBITDA of between 5.0x-5.5x;
   -- EBITDAR coverage (which we use as the key supplementary
      ratio) of 1.2x-1.4x; and
   -- FOCF to remain negative in the near term.

The stable outlook reflects S&P's view that the company will
continue to execute its turnaround plan, albeit over a prolonged
recovery period.  It also reflects S&P's expectation that Maxeda
will appropriately manage tightening covenant headroom and
maintain its current sufficient cash position despite the
challenging trading environment.

S&P could lower the ratings if the company's liquidity were to
deteriorate, which is likely to be reflected in an accelerated
reduction of its cash balance.  This scenario could occur as a
result of a prolonged period of weak trading conditions and could
be evidenced by the company's EBITDAR coverage ratio falling
below 1x.  Any tightening covenant pressure, or if S&P was to
believe the company's capital structure were to become
unsustainable, S&P would also likely place further pressure on
the rating.

For S&P to raise the rating, it would need to see a material
improvement in business conditions that led to sustainably
stronger financial metrics and positive FOCF, with Maxeda
maintaining adequate liquidity.  This could be evidenced by the
strengthening of the EBITDAR coverage ratio toward 1.5x.  A
meaningful reduction in the company's debt would also support the
likelihood of an upgrade.


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OLTCHIM SA: Returns to Profit, Creditors Put Business Up for Sale
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Andrew Noel at Bloomberg News reports that Oltchim SA's creditors
are putting Romania's largest chemical maker up for sale after
the company refinanced debt and returned to profit.

According to Bloomberg, a statement said the company is
forecasting adjusted earnings before interest, taxes,
depreciation and amortization of EUR23.9 million (US$27 million)
this year, compared with EUR17.7 million in 2015.  AT Kearney is
advising on the sale, Bloomberg discloses.

After years of losses and slipping into insolvency in 2013,
Oltchim had to reinvent itself, Bloomberg recounts.  It
mothballed sites for petrochemical and polyvinyl-chloride
plastic, or PVC, and switched to propylene-based chemicals --
used in everything from lubricants and brake fluid to antifreeze
-- where demand and margins are more resilient, Bloomberg relays.

Oltchim ran into financial difficulty in late 2008, when its
source of ethylene abruptly ended with the closure of a nearby
refinery, Bloomberg notes.

"Operating a business under insolvency is not overly attractive
for customers," Bloomberg quotes Joachim von Hoyningen-Huene, who
oversees AT Kearney's chemical practice, as saying in an emailed
response to questions on Aug. 24.  "Under new ownership I see
win-win opportunities to improve the commercial arrangements with
customers with better payment terms at improved margins.  Also I
expect a new strategic owner to quickly identify operational
streamlining opportunities."

According to Bloomberg, people with knowledge of the situation
said on Aug. 23 potential bidders have until Sept. 30 to express
an interest in all or part of the company, and a sale could be
completed by year-end.  Insolvency administrators BDO and
Rominsolv currently help operate the company alongside its
management team, Bloomberg relays.

As well as BASF and Covestro, the asset may attract Asian
competitors and private equity firms looking to further
streamline the company, Bloomberg states.

Oltchim SA is a Romanian chemical producer.  Romania owns 54.8%
of the company.



=========
S P A I N
=========


ABENGOA SA: Sells Five U.S. Ethanol Plants for US$357 Million
-------------------------------------------------------------
Patrick Fitzgerald at The Wall Street Journal reports that
Abengoa SA has sold five of its Midwestern U.S. ethanol plants
for US$357 million as the company looks to stave off what would
be Spain's largest-ever corporate bankruptcy.

Green Plains Inc. of Omaha, Neb., which operates 14 plants and
has an ethanol-marketing unit, is paying US$200 million for
Abengoa plants in Mount Vernon, Ind., and Madison, Ill., the
Journal relays, citing papers filed in U.S. Bankruptcy Court in
St. Louis.  Green Plains also topped Houston-based BioUrja
Trading LLC, an ethanol-marketing firm that doesn't have
production operations, for Abengoa's York, Neb. plant with a
$37.4 million bid at bankruptcy auction on Aug. 22, the Journal
discloses.

According to the Journal, an affiliate of plant operator KAAPA
Ethanol LLC of Minden, Neb., is paying US$115 million for
Abengoa's Ravenna, Neb. plant.  And ICM Inc. is picking up
Abengoa's shuttered plant in Colwich, Kan., for US$3.15 million,
the Journal states.

The renewable energy company will seek U.S. court approval of the
sales at an Aug. 29 hearing in St. Louis, the Journal says.

Abengoa has been negotiating with creditors since November to
avoid becoming Spain's largest bankruptcy, the Journal relays.

                       About Abengoa S.A.

Spanish energy giant Abengoa S.A. is an engineering and
clean technology company with operations in more than 50
countries worldwide that provides innovative solutions for a
diverse range of customers in the energy and environmental
sectors.  Abengoa is one of the world's top builders of power
lines transporting energy across Latin America and a top
engineering and construction business, making massive renewable-
energy power plants worldwide.

As of the end of 2015, Abengoa, S.A. was the parent company of
687 other companies around the world, including 577 subsidiaries,
78 associates, 31 joint ventures, and 211 Spanish partnerships.
Additionally, the Abengoa Group held a number of other interests
of less than 20% in other entities.

On Nov. 25, 2015 in Spain, Abengoa S.A. announced its intention
to seek protection under Article 5bis of Spanish insolvency law,
a pre-insolvency statute that permits a company to enter into
negotiations with certain creditors for restricting of its
financial affairs.  The Spanish company is facing a March 28,
2016, deadline to agree on a viability plan or restructuring plan
with its banks and bondholders, without which it could be forced
to declare bankruptcy.

On March 16, 2016, Abengoa presented its Business Plan and
Financial Restructuring Plan in Madrid to all of its
stakeholders.

                        U.S. Bankruptcies

Abengoa, S.A., and 24 of its subsidiaries filed Chapter 15
petitions (Bankr. D. Del. Case Nos. 16-10754 to 16-10778) on
March 28, 2016, to seek U.S. recognition of its restructuring
proceedings in Spain.  Christopher Morris signed the petitions as
foreign representative.  DLA Piper LLP (US) represents the
Debtors as counsel.

Gavilon Grain, LLC, et al., on Feb. 1, 2016, filed an involuntary
Chapter 7 petition for Abengoa Bioenergy of Nebraska, LLC
("ABNE") and on Feb. 11, 2016, filed an involuntary Chapter 7
petition for Abengoa Bioenergy Company, LLC ("ABC").  ABC's
involuntary Chapter 7 case is Bankr. D. Kan. Case No. 16-20178.
ABNE's involuntary case is Bankr. D. Neb. Case No. 16-80141.  An
order for relief has not been entered, and no interim Chapter 7
trustee has been appointed in the Involuntary Cases.  The
petitioning creditors are represented by McGrath, North, Mullin &
Kratz, P.C.

On Feb. 24, 2016, Abengoa Bioenergy US Holding, LLC and 5 five
other U.S. units of Abengoa S.A., which collectively own,
operate, and/or service four ethanol plants in Ravenna, York,
Colwich, and Portales, each filed a voluntary petition for relief
under Chapter 11 of the United States Bankruptcy Code in the
United States Bankruptcy Court for the Eastern District of
Missouri.  The cases are pending before the Honorable Kathy A.
Surratt-States and are jointly administered under Case No. 16-
41161.

Abeinsa Holding Inc., and 12 other affiliates, which are energy,
engineering and environmental companies and indirect subsidiaries
of Abengoa, filed Chapter 11 bankruptcy petitions (Bankr. D. Del.
Proposed Lead Case No. 16-10790) on March 29, 2016.


CAJA LABORAL: Moody's Withdraws Ba1 Deposit Ratings
---------------------------------------------------
Moody's Investors Service has withdrawn the Ba1/Not-Prime long-
term and short-term deposit ratings of Caja Laboral Popular Coop.
de Credito.  At the same time, Moody's has withdrawn: (1) the
bank's baseline credit assessment (BCA) and adjusted BCA of ba1;
and (2) the bank's long-term and short-term counterparty risk
assessment of Baa2(cr)/P-2(cr).  At the time of withdrawal, the
long-term deposit ratings carried a stable outlook.

                         RATINGS RATIONALE

Moody's has withdrawn the rating for its own business reasons.


===========================
U N I T E D   K I N G D O M
===========================


FOUR SEASONS: In Talks with Lenders to Resolve Long-Term Future
---------------------------------------------------------------
Gill Plimmer at The Financial Times reports that Four Seasons,
the troubled private equity-owned care home group, is holding
talks with lenders as it aims to resolve the long-term future of
the business by December.

In its second-quarter results, Britain's biggest care homeowner,
which houses 20,000 mostly elderly residents, said earnings
before interest, tax, and depreciation rose 25% to GBP13.6
million, its best quarterly performance since 2014, the FT
relates.

A pre-tax loss of GBP25 million in the three months to the end of
June narrowed by GBP4 million from the prior quarter, the FT
notes.

However, the group remains weighed down by loan repayments after
net debt grew from GBP510 million in the last quarter to GBP527.2
million in June, the FT states.  According to the FT, the group
has annual interest payments of GBP50 million, meaning it is
making less money than it needs to service bondholders after
being bought in a debt-fuelled GBP825 million deal by Guy Hands'
Terra Firma in 2012.  The interest is due in two tranches in June
and December, the FT discloses.

Despite the operational improvements, Nick Hood, analyst at
consultancy Opus, as cited by the FT, said it was hard to see how
Four Seasons could "avoid ending up in the hands of its lenders".

"This is a business that is drowning in debt, nowhere near
covering the interest burden and will need the mother of all
restructurings very soon," the FT quotes Mr. Hood as saying.

Robbie Barr, chairman of Four Seasons, said the group continues
to have "sufficient financing for the medium term", the FT
relates.  But the company is in negotiations with "stakeholders,
noteholders and landlords" to resolve the long-term future of the
business, he added, and hopes to reach an agreement by the "end
of the calendar year", the FT notes.


INNOVIA GROUP: S&P Affirms 'B' CCR & Revises Outlook to Positive
----------------------------------------------------------------
S&P Global Ratings said it has revised the outlook on U.K.-based
polymer film and banknote substrate manufacturer Innovia Group
(Holding 3) Ltd. to positive from stable.  At the same time, S&P
affirmed its 'B' long-term corporate credit rating and 'B' issue
rating on the group's senior secured notes, with the recovery
rating unchanged at '4'.

The outlook revision follows Innovia's announcement that it is
redeeming EUR80 million of its senior secured notes, which is
expected to be completed on Aug. 26, 2016.  The redemption was
triggered by the sale of its cellophane business for
EUR75 million.  S&P views the decision to use the proceeds to
repay debt as positive with regards to financial policy, given
the limited take-up of the mandatory notes offer.  S&P also views
the sale of the cellophane business as broadly positive for
business risk because, following the sale, S&P forecasts that
fully S&P Global Ratings-adjusted EBITDA margins will markedly
improve to about 19% from 12% in 2015 and, to a more limited
extent, improved cash flow generation.

Further supporting S&P's rating is the very strong performance
the group recorded in the first half of 2016.  While S&P
forecasts slightly lower earnings in the second half of the year
as seasonality and raw material pass-through mechanisms have an
impact, S&P has nevertheless revised upward its earnings
forecasts.  Looking further forward, S&P expects the utilization
of recent new capacity additions, as well as new banknote
contracts to provide further incremental earnings, while reduced
one-off costs and capital expenditure (capex) should contribute
to a steady improvement in credit metrics.  As a result, S&P now
forecasts S&P Global Ratings-adjusted leverage to drop toward
4.4x over the next 12-24 months from 6.7x in 2015, with further
improvements thereafter.

S&P sees the evolution of both financial policy and operating
performance as important contributing factors to the potential
for an upgrade over the next few quarters.  S&P views the
decision to pre-emptively pay down debt as positive with regards
to financial policy, and recent comments made during the
company's second quarter results about targeting further
deleveraging provide S&P with some testament that the risk of
releveraging over 5x could be low.  Nevertheless, in the absence
of a clearly communicated financial policy target, S&P would look
toward some track record of maintaining lower leverage in order
to raise the ratings.

Any potential upgrade would also require evidence that recent
improvements in operating performance and credit metrics can be
sustained.  Innovia's earnings profile to date has been
characterized by a relatively high degree of volatility due to
the group's small absolute size, the lumpy nature of banknote
contracts, volatile input costs, and lags in being able to pass
these costs onto customers.  That said, management argues that a
healthy order book and operational improvements should result in
a reduced level of volatility going forward, of which there is
some evidence in recent quarters.

Innovia's fair business risk profile continues to reflect the
group's relatively volatile profitability in polymer film
products, and limited size compared to its rated peers -- with
revenues of about EUR400 million following the sale of its
cellophane business.  Innovia's strong competitive positions in
niche, fragmented markets, and relatively stable end markets,
partly mitigate these weaknesses.  A high proportion of the
group's contracts with its end users include clauses that enable
it to pass through any increase in the cost of raw materials,
providing it with some protection from volatile input costs.  S&P
also recognizes Innovia's relatively strong product and
geographic diversity as the group is present in over 100
countries.

In S&P's base case, it assumes:

   -- Revenues reducing by 10%-13% in 2016 and 2017, due
      predominantly to the sale of the cellophane business on
      June 30, 2016, and lower raw material costs that are
      expected to be passed through via reduced prices.  S&P
      forecasts underlying organic volume growth in low-single
      digits until significant new security contracts ramp up in
      2018.

   -- Significant improvements in margins as a result of
      operating improvements, fewer one-off costs, and the sale
      of the low margin (4.6%) cellophane division.  S&P
      forecasts adjusted EBITDA margins to be sustained at about
      19% going forward.

   -- Capex reducing to EUR15 million-EUR20 million per year from
      EUR42 million in 2015 following the completion of capacity
      expansion projects.

Based on these assumptions, S&P arrives at these credit measures:

   -- Adjusted leverage to drop to about 4.4x over the next 12-24
      months from 6.7x in 2015.

   -- Funds from operations (FFO) to debt improving to about 16%
      in 2016 and 2017, up from 7.1% in 2015.

The positive outlook reflects S&P's view that S&P could raise the
ratings by one notch over the next 6-12 months if S&P believes
that Innovia will maintain permanently reduced leverage, and that
the risk of releveraging is low.

S&P could upgrade Innovia to 'B+' if the company is able to
demonstrate sustainably reduced leverage at comfortably less than
5x, and an FFO-to-debt ratio of above 12% -- through improved
operating performance and reduced earnings volatility -- while
supported by less aggressive financial policies that target
further deleveraging.

S&P could revise the outlook to stable if it is no longer
convinced that Innovia's shareholders are targeting a less
aggressive capital structure, or if weaker or more volatile
earnings resulted in credit metrics returning to those consistent
with a highly leveraged financial risk profile.


MASCOTT CONSTRUCTION: Gareth Loye Acquires Assets & Equipment
-------------------------------------------------------------
Margaret Canning at Belfast Telegraph reports that entrepreneur
Gareth Loye has snapped up the assets and equipment of insolvent
building firm Mascott Construction Ltd.

It's understood his firm, M&M Contractors, paid a "substantial"
sum to buy parts of the Belfast-based Mascott business, which
went into administration earlier this month with the loss of
around 30 jobs, Belfast Telegraph relates.

M&M, based in Belfast, offers telecommunication and electrical
infrastructures in civil engineering and construction projects,
Belfast Telegraph discloses.

Mascott Construction remains in administration, with the deal
relating only to assets and equipment, Belfast Telegraph states.

Mr. Loye had set up new company, Mascott Construction Europe, in
the days after administrators EY were appointed by a lender to
run the firm -- suggesting the name could be revived under his
ownership, Belfast Telegraph relays.

According to Belfast Telegraph, a spokesman for M&M said on
Aug. 23 it had bought "a portion of Mascott Construction Ltd's
assets and equipment".

"The company is also pleased to have secured the assignment of
some of the company's existing contracts and looks forward to
completing these projects in the coming months/years," Belfast
Telegraph quotes the spokesman as saying.

But the firm would not say which contracts had been assigned,
Belfast Telegraph notes.

Mascott Construction was set up in 1998.


TRAVELPORT LIMITED: Moody's Affirms B2 CFR; Outlook Now Positive
----------------------------------------------------------------
Moody's Investors Service has changed the outlook on the ratings
of UK-based travel commerce platform business Travelport Limited
to positive from stable.

The change in outlook takes into account these factors:

   -- Financial policies targeting debt reduction
   -- Substantial deleveraging in 2016 and expectations that
      Moody's-adjusted leverage will reduce towards 5x in the
      next 12-18 months
   -- Growth momentum driven by a stable air travel base and
      growth from airline merchandising solutions, hotel and
      other travel and payments services
   -- Solid cash generation

At the same time, Moody's has affirmed Travelport's corporate
family rating (CFR) of B2, and the B2 instrument ratings on the
USD2.3 billion senior secured term loan maturing in 2021 and
USD125 million senior secured revolving credit facility maturing
in 2019, issued by Travelport Finance (Luxembourg) S.a.r.l.  In
addition Moody's has affirmed Travelport's probability of default
rating (PDR) of B3-PD.

                         RATINGS RATIONALE

Travelport operates a global distribution system (GDS) for the
travel industry and is the third largest of the main three global
operators measured by share of global air bookings, alongside
Amadeus IT Holding, S.A. (Amadeus - Baa2, stable) and Sabre
Holdings Corporation (Sabre - Ba2, stable).  Whilst its core
business is in air travel this provides a solid platform for the
sale of merchandising solutions, hotels and other travel
inventory and other services to travel providers, through which
the company has a solid track record of revenue growth.  Recent
trading is strong as the effect of adverse changes in the legacy
Orbitz contract unwinds and the underlying business demonstrates
solid growth momentum.  In addition the company has a financial
policy in place focused on deleveraging with limited acquisitions
and no material deviations in historical dividend distributions
levels are expected.  As a result Moody's expects leverage to
reduce towards 5.0x on a Moody's-adjusted basis within the next
12-18 months.

Counter-balancing these positive characteristics, Travelport
operates in a competitive market and it has gradually lost market
share in air travel, principally to Amadeus.  More recently this
has been due mainly to the multi-GDS renewal of a previously
sole-source legacy agreement with Orbitz Worldwide in 2014.  This
has affected market share in the United States, whilst non-US air
share, representing over 70% of travel commerce platform
revenues, has remained more stable.  Travelport does not have the
same high level of resilient airline technology services revenues
as Sabre or Amadeus and relies to a greater extent on its ability
to upsell additional products and services.  In addition the
industry is at risk of disintermediation through new technologies
or through travellers' use of airlines' own websites.  However
the pace of market change has been slow with high airline
retention rates and Travelport has maintained broadly flat air
travel volumes as gradual market share declines are offset by
underlying market growth.

Rating Outlook

The positive outlook reflects Moody's expectations that
Travelport will continue to grow its revenues and EBITDA, with
positive cash generation and debt repayments, leading to
continued deleveraging.

What Could Change the Rating - Up

The rating could be upgraded if Travelport succeeds in bringing
leverage down sustainably below 5.0x Moody's-adjusted
debt/EBITDA, whilst generating positive free cash flow.

What Could Change the Rating - Down

Negative pressure would likely be exerted on the rating should
leverage increase sustainably above 6.0x debt/EBITDA on a
Moody's-adjusted basis, if cash flows were to trend towards zero
or if any liquidity concerns arise.

List of affected ratings:
Affirmations:

Issuer: Travelport Limited
  Corporate Family Rating, Affirmed B2
  Probability of Default Rating, Affirmed B3-PD

Issuer: Travelport Finance (Luxembourg) S.a.r.l.
  BACKED Senior Secured Bank Credit Facility, Affirmed B2

Outlook Actions:

Issuer: Travelport Limited
  Outlook, Changed To Positive From Stable

Issuer: Travelport Finance (Luxembourg) S.a.r.l.
  Outlook, Changed To Positive From Stable

The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.


                            *********

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,
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Peter A. Chapman, Editors.

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

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