TCREUR_Public/160909.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, September 9, 2016, Vol. 17, No. 179



O1 PROPERTIES: Moody's Assigns (P)B1 Proposed Debut Notes Rating


DANSK INDUSTRI: To File for Bankruptcy Protection


COMPONENTA CORP: Swedish Units' Bankruptcy Filings Approved


SCHAEFFLER AG: Moody's Withdraws Ba2 Corporate Family Rating


TREASURY HOLDINGS: Spencer Dock Receiver Fees Total EUR12.4MM


* Moody's Simulates Montepaschi-Style Restructuring on Banks


ARD FINANCE: Moody's Assigns Caa2 Rating to PIK Toggle Notes
HC INVESTMENTS: Moody's Puts B2 CFR Under Review for Upgrade


* ROMANIA: Had More Than 100,000 Corp. Insolvencies in 5 Years

U N I T E D   K I N G D O M

ALBEMARLE SHOREHAM: Goes Into Administration
ENQUEST PLC: Explores Additional Funding Options
MELTON RENEWABLE: Moody's Affirms Ba3 CFR; Outlook Now Stable
WILLIAM ANELAY: In Administration, 126 Jobs Affected

* SCOTLAND: Has Lowest Proportion of Business Insolvency Risk
* UK: Late Payment Cause Over 1-in-5 Corporate Insolvencies


* BOOK REVIEW: The First Junk Bond



O1 PROPERTIES: Moody's Assigns (P)B1 Proposed Debut Notes Rating
Moody's Investors Service has assigned a provisional (P)B1 rating
to the proposed debut notes to be issued by O1 Properties Finance
Plc, incorporated under the laws of Cyprus, and guaranteed by the
parent company, O1 Properties Group (O1). The outlook on the
rating is stable.

Moody's issues provisional ratings in advance of the final sale
of securities, and these ratings represent only the rating
agency's preliminary opinion. Upon a conclusive review of the
transaction and associated documentation, Moody's will assign
definitive ratings to the bonds. A final rating may differ from a
provisional rating.


The (P)B1 rating assigned to the proposed notes, in line with
O1's B1 corporate family rating (CFR), reflects its (1) large
high quality office property portfolio; (2) leading position in
the most lucrative and stable segment in Russia of Class A
properties in Moscow's central business district (CBD); (3)
diversified top-tier tenant base; (4) balanced lease terms and
maturities; and (5) conservative development strategy with
current development risk limited to below 5% of its total
portfolio. The company's strong business profile partly mitigates
the risks related to its high geographic concentration in Moscow.
The capital city, while the largest and the most stable market in
Russia, remains vulnerable to the country's economic cycles and
its less developed regulatory, political and legal framework.

However, the rating is constrained by O1's historically leveraged
financial profile, which is further pressured by negative asset
revaluations and declines in rental income on the back of
macroeconomic decline and material local currency depreciation.
Although the adoption of a more conservative financial policy and
some stabilization in the market since Q2 2016 will likely result
in gradual deleveraging in 2016-2017, O1's financial metrics will
still remain fairly weak and subject to the uncertainties related
to economic developments in Russia. The company will also remain
reliant on secured debt funding at its properties level and will
stay exposed to foreign exchange risks with almost all its debt
in US dollars. O1's sound liquidity position partly offsets the
risks related to its elevated level of leverage. The rating also
positively incorporates potential support from its founding


The stable outlook reflects Moody's view that despite the weak
economic climate prevailing in Russia, O1 will continue to
produce healthy cash flows, leveraging its competitive market
position with its high quality office portfolio in prime Moscow
locations, strong tenant base, and balanced lease terms.

Moody's also expects the company to continue to adhere to its
conservative financial and development policy, which will allow
it to improve and maintain its adjusted "effective" leverage
below 75% and adjusted fixed charge coverage at 1.4x or above,
while preserving its historically solid liquidity profile.


Upward pressure on the rating could develop if, on a sustained
basis, adjusted "effective" leverage and adjusted fixed-charge
coverage trend towards 60% and 2.0x respectively, secured
debt/total assets stays below 50%, while O1 preserves its strong
liquidity and operating profile.

O1's rating could come under pressure if the company faced a
material deterioration in its business and financial profile,
with adjusted "effective" leverage exceeding 75% and adjusted
fixed-charge coverage falling below 1.4x on a sustained basis. A
noticeable deterioration of the company's liquidity could also
pressure the rating.


The notes will be issued by O1 Properties Finance Plc, a
financing vehicle established solely for the purpose of the
issuance, and guaranteed by O1 Properties Group. The notes will
be general unsecured and unsubordinated obligations of O1,
ranking pari passu with all of its other unsecured and
unsubordinated indebtedness, and will be subordinated to the
company's property-level secured debt. O1's senior unsecured bond
rating is not notched down from the CFR for subordination, in
line with Moody's notching practices for REITs and commercial
property firms rated at Ba3 or below.

Following the notes issuance, secured debt at the properties
level will constitute around 80% of the company's total debt,
while unsecured bonds at the parent level will represent the
remaining 20%. Although substantially all of O1's property
portfolio is pledged, the indebtedness is generally structured to
have recourse to only the property which is pledged in its
support rather than the entire group.

This situation -- together with the substantial assets value even
after negative revaluations in 2015-1H 2016 -- will provide
adequate financial flexibility in relation to unsecured
creditors. Following the notes issuance, adjusted secured
leverage will fall to approximately 50% of total assets, implying
a comfortable coverage ratio for unsecured debt of more than 2x
with some buffer for fluctuations in asset values.


The principal methodology used in these ratings was Global Rating
Methodology for REITs and Other Commercial Property Firms
published in July 2010.

O1 Properties Group (O1) is Russia's leading real estate
investment company. It manages, develops, and acquires office
properties in Moscow. O1 owns a portfolio of 12 yielding assets
with net rentable area of 484.000 sqm, generating $368 million in
annual rental income. Including two development projects, the
reported gross asset value of its real estate portfolio stood at
$3.7 billion as of 30 June 2016. The company also participates
with a 50%+1 share in a JV for the "Bolshevik" development
project with a total reported gross asset value of $264.5


DANSK INDUSTRI: To File for Bankruptcy Protection
Christian Wienberg at Bloomberg News reports that Dansk Industri
Invest says it's insolvent.

According to Bloomberg, the company says it will file for
bankruptcy protection as soon as possible.

Dansk Industri Invest A/S, formerly known as Dantherm A/S, is a
Denmark-based holding company active in the environmental
services industry.


COMPONENTA CORP: Swedish Units' Bankruptcy Filings Approved
Componenta announced on September 1, 2016, that Componenta
Corporation and Componenta Finland Oy will file for restructuring
in Finland, that Componenta Fraemmestad AB, Componenta Wirsbo AB
and Componenta Arvika AB will file for restructuring in Sweden
and that the Dutch subsidiary Componenta B.V. will file for
bankruptcy.  The filings of the Swedish subsidiaries have been
approved and the restructuring proceedings have started on
September 1, 2016 (Componenta Fraemmestad AB and Componenta
Wirsbo AB) and September 2, 2016 (Componenta Arvika AB).  The
Dutch subsidiary Componenta B.V. has been declared bankrupt on
September 2, 2016.

Componenta Corporation will complement its restructuring filing
with interim accounts June 30, 2016 of Componenta Corporation (as
a separate company) that have been approved onSeptember 7, 2016,
and an auditors statement.  These interim accounts have been
prepared based on the going concern concept but taking into
account the commencement of the restructuring and bankruptcy
proceedings of the subsidiaries.

Due to asset value write offs made in the interim accounts the
equity of Componenta Corporation (as a separate company) has
become negative by approximately 9 Me.  These write offs relate
to receivables from subsidiaries, value of the subsidiary
investments and certain other assets.  When assessing the
valuation of the above mentioned assets the company considered
the restructuring and bankruptcy proceedings of the subsidiaries
described above as well as the prudence principle set out in the
Finnish Accounting Act.  No write offs have been made to the
debts of the company.

Based on this the company will make a filing to the trade
registry pursuant to Chapter 20 Section 23 of the Companies Act
regarding loss of share capital.  It is expected that the equity
of the company will become positive during the restructuring
process. The board of Componenta Corporation will convene a
shareholders' meeting pursuant to Chapter 20 Section 23 of the
Companies Act and the interims accounts will be available for
inspection prior to the meeting pursuant to the provisions of the
Companies Act.

The board of Componenta Corporation has received conversion
notices from certain investors regarding its convertible capital
loan.  The conversion notices relate to in aggregate 5 600 000
shares.  The related equity increase amounts to in aggregate 2
800 000 euros. The new shares will be registered in the trade
registry as soon as possible.

Based in Helsinki, Finland, Componenta is a major casting
solutions provider in Europe.  Componenta personnel comprises of
4,200 people working in several countries.  The Group has
production in Turkey, Finland, the Netherlands and Sweden.


SCHAEFFLER AG: Moody's Withdraws Ba2 Corporate Family Rating
Moody's Investors Service, ("Moody's") has withdrawn Schaeffler
AG's ("SAG") Ba2 corporate family rating (CFR) and Ba2-PD
probability of default rating (PDR) and assigned Baa3 long term
issuer rating for Schaeffler AG in line with the rating agency's
practice for corporates with investment-grade ratings and also
assigned Ba1 CFR and Ba1-PD PDR for Schaeffler Verwaltung Zwei
GmbH (to be renamed to IHO Verwaltungs GmbH, "IHO-V").

Concurrently, Moody's has upgraded the senior secured notes
issued by Schaeffler Finance B.V. to Baa3 from Ba2 and the senior
unsecured notes issued by Schaeffler Finance B.V. to Baa3 from
Ba3. Moody's has also assigned a Ba1 rating to proposed issuance
of senior secured notes issued by IHO-V. Additionally, the rating
agency has upgraded the rating of existing senior secured bonds
issued by Schaeffler Holding Finance B.V. to Ba1 from Ba3, but
Moody's expects that rating to be withdrawn after successful
placement of the new senior secured bonds issued by IHO-V.
Outlook on all ratings is stable.



The rating action effectively splits Schaeffler AG's existing CFR
into two standalone ratings: one for SAG and one for IHO-V.
Previously, the SAG's CFR comprised also debt at holding level,
primarily owing to the existence of cross default language in the
credit facilities at holding level. The cross default language
has fallen away with the refinancing of the credit facilities at
IHO-V. That means that the correlation of probability of default
between debt at SAG level and debt at IHO-V level has declined
further and now allows for the assignment of two different


The upgrade of SAG's rating to Baa3 from strongly positioned Ba2
primarily reflects (1) a material improvement of SAG's leverage;
(2) the fall-away of the cross default language with debt at
holding level that has had somewhat weaker credit quality than
SAG; and (3) SAG's building further track record of solid
operating performance.

The reduction in SAG's leverage is driven by a significant
reduction of debt by around EUR700 million that SAG will receive
from the partial repayment of the loan note that SAG holds
against IHO-V. The rating agency calculates that SAG's pro-forma
Moody's adjusted debt/EBITDA will reduce to around 3.0x from
around 3.4x for 12 months to June 2016 period. Moody's notes that
these calculations already reflect a material increase in pension
underfunding of around EUR400 million between December 2015 and
June 2016, which is mostly driven by decreasing discount rates
and represents an equivalent of around 0.2x Moody's adjusted

Moody's believes that SAG's business profile enjoys investment
grade characteristics, as evidenced by the company's leading
market and technology positions in most of the product categories
globally, translating into profitability consistently well above
the average of the automotive supplier peer group in EMEA
(Moody's adjusted EBITA margin of around 13% currently).

The rating agency also expects that SAG will continue to maintain
a conservative financial policy aimed at further deleveraging and
the retention of an investment grade credit rating. This is
evidenced by SAG remaining committed to repaying EUR750 billion
of debt from operating cash flows between 2016 and 2018. The
outstanding loan note of around EUR1 billion, which SAG holds
against IHO-V and which is not captured in Moody's credit
metrics, provides an additional source for potential
deleveraging. Moody's expects that SAG will engage only in
controlled external growth with acquisitions of up to the low
hundreds of million EUR, refraining from major debt-funded deals.

In terms of ratings of instruments issued by Schaeffler Finance
B.V., given the large distance to default and fairly weak
security package of the secured bonds that essentially consists
of only share pledges in some operating entities that may
eventually fall away, Moody's aligns the senior secured bonds
(previously Ba2) and senior unsecured bonds ratings (previously
Ba3) with the SAG's Baa3 long term issuer rating.

The stable outlook on the ratings reflects Moody's expectations
that in the next 12-18 months SAG will maintain Moody's adjusted
debt/EBITDA below 3.0x, EBITA margin of around 13% and material
positive free cash flow generation.

Moody's could upgrade SAG's ratings if SAG reduces Moody's
adjusted debt/EBITDA further sustainably below 2.5x and improves
Moody's adjusted RCF/net debt towards high twenties in percentage
terms, while maintaining Moody's adjusted EBITA margin at least
around current levels (13%).

Moody's could downgrade SAG's ratings, if (1) its Moody's
adjusted debt/EBITDA remains sustainably above 3.0x; (2) there is
evidence of sustainable decline of Moody's adjusted EBITA margin
towards 10%; (3) SAG starts to generate negative free cash flow
sustainably; or (4) its liquidity deteriorates.


The Ba1 CFR and Ba1-PD PDR for IHO-V are primarily constrained by
(1) a high concentration risk with IHO-V being solely dependent
on dividends received from only two assets largely active in the
cyclical automotive industry, SAG and Continental AG (Baa1
stable); (2) an evolving structure with a limited track record
and a lack of clearly defined financial policies aimed at
preserving a conservative capital structure offsetting the high
concentration risk; and (3) somewhat limited transparency
regarding reporting at IHO-V level.

The ratings however benefit from: (1) fairly low leverage, with
net market value leverage of around 20%, even including the SAG
loan note; (2) healthy interest cover, which will benefit from
substantially improved pricing in today's refinancing and could
move up to around 4.0x Moody's adjusted (FF0+interest
expense)/interest expense in the next 12-18 months; and (3) an
ownership of major stakes in high quality assets, both being
investment grade and listed.

The proposed senior secured bonds issued by IHO-V are rated Ba1,
in line with IHO-V's CFR. This is despite the fact that their
security package is somewhat stronger than that of the loan note
owed to SAG.

The stable outlook reflects the rating agency's expectation that
IHO-V will maintain strong liquidity and credit metrics as
indicated by net market value leverage of around 20% and FFO
interest cover moving towards 4.0x in the next 12-18 months.

An upgrade of IHO-V ratings to Baa3 would require a clearly
formulated financial policy aimed to preserve a conservative
capital structure, as evidenced by maintaining net market value
leverage around 20% and FFO interest cover above 3.0x. The rating
agency could relax those stringent requirements if IHO-V further
diversifies and improves its dividend income streams. An upgrade
would also require building a track record of Moody's adjusted
debt/EBITDA below 2.5x (2.7x for 2015) and Moody's adjusted EBITA
margin around 12% (11.7% in 2015), both based on INA-Holding
Schaeffler GmbH & Co. KG statements that fully consolidate
Schaeffler AG and Continental AG. An upgrade would also require
improved reporting at IHO-V level.

Moody's could downgrade IHO-V's ratings if its (1) net market
value leverage sustainably deteriorates above 30%; (2) FFO
interest cover deteriorates below 3.0x on a sustained basis; (3)
Moody's adjusted debt/EBITDA remains sustainably above 2.5x and
Moody's adjusted EBITA margin starts deteriorating towards 10%,
both based on INA-Holding Schaeffler GmbH & Co. KG statements
that fully consolidate Schaeffler AG and Continental AG; or (4)
liquidity deteriorates.

List of affected ratings:


   Issuer: Schaeffler AG

   -- Issuer Rating, Assigned Baa3

   Issuer: Schaeffler Verwaltung Zwei GmbH

   -- Corporate Family Rating, Assigned Ba1

   -- Probability of Default Rating, Assigned Ba1-PD

   -- Senior Secured Regular Bond/Debenture, Assigned Ba1


   Issuer: Schaeffler Finance B.V.

   -- Backed Senior Secured Regular Bond/Debenture, Upgraded to
      Baa3 from Ba2

   -- Backed Senior Unecured Regular Bond/Debenture, Upgraded to
      Baa3 from Ba3

   Issuer: Schaeffler Holding Finance B.V.

   -- Backed Senior Secured Regular Bond/Debenture, Upgraded to
      Ba1 from Ba3


   Issuer: Schaeffler AG

   -- Corporate Family Rating, Withdrawn , previously rated Ba2

   -- Probability of Default Rating, Withdrawn , previously rated

Outlook Actions:

   Issuer: Schaeffler AG

   -- Outlook, Remains Stable

   Issuer: Schaeffler Finance B.V.

   -- Outlook, Remains Stable

   Issuer: Schaeffler Holding Finance B.V.

   -- Outlook, Remains Stable

   Issuer: Schaeffler Verwaltung Zwei GmbH

   -- Outlook, Changed To Stable From Rating Withdrawn

The principal methodology used in these ratings was Global
Automotive Supplier Industry published in June 2016.


TREASURY HOLDINGS: Spencer Dock Receiver Fees Total EUR12.4MM
Gordon Deegan at Irish Independent reports that the total amount
paid out in professional, management and receiver fees concerning
the receivership of Treasury Holdings' main Spencer Dock firm now
total EUR12.4 million.

This followed EUR2.77 million being incurred in the latest
six-month period of the receivership that included EUR145,509 in
receivership fees, Irish Independent notes.

David Hughes -- -- and Luke Charleton -- -- of Ernst & Young were appointed by
the National Asset Management Agency as receivers to various
retail units, undeveloped sites and part developed sites owned by
Spencer Dock Development Co Ltd. on January 25, 2012, Irish
Independent recounts.

According to Irish Independent, the total amount paid out to EY
in receivership fees now totals EUR803,888.  The new
documentation shows that Nama received a EUR2 million payment
from the receivership of Treasury Holdings' main Spencer Dock in
the last six-month period, Irish Independent states.

Spencer Dock Development Co. Ltd was placed in receivership with
net liabilities totalling over EUR401 million, Irish Independent
recounts.  Nine months after the main Spencer Dock firm was
placed in receivership, the parent entity, Johnny Ronan and
Richard Barrett's Treasury Holdings, was wound up in October
2012, Irish Independent relays.  The receivership was
unsuccessfully challenged in the High Court by Treasury Holdings,
Irish Independent notes.


* Moody's Simulates Montepaschi-Style Restructuring on Banks
Moody's Investors Service simulated a Montepaschi-style
restructuring plan on the 14 significant European Central Bank
(ECB)-supervised Italian banks in a report published on Sept. 7.

Moody's said that this simulation is not a likely scenario, as,
in particular, the levels of disposals and reserves may be
different as between each banks and the time frame that is
currently contemplated by Banca Monte dei Paschi di Siena S.p.A.
(Montepaschi, B2/B3 review with direction uncertain) is unlikely
to be applied by all banks. Also, regulators may allow different
banks to operate to different timelines. The rating agency notes
that the simulation does not take into account the positive
impact on capital ratios deriving from a reduction of risk-
weighted assets following the deconsolidation of bad loans. This
impact could also differ from bank to bank, depending on their
internal models, or lack thereof, for calculating credit risk
according to the Basel framework.

This simulation, which is a theoretical exercise and does not
constitute an opinion on the financial stability of certain
Italian banks or of the Italian banking system in general,
indicates that, if this model were applied to other Italian
banks, they would likely require significant capital injections.

Moody's estimates in the simulation that the 14 significant ECB-
supervised Italian banks would require EUR23 billion capital to
offload their bad loans while maintaining a common equity tier 1
(CET1) ratio 100 basis points above the Supervisory Review and
Evaluation Process (SREP) ratios set by the ECB. The rating
agency added that this could be generated from less than two
years of aggregate pre-provision profitability.

However, banks with weaker profitability would have to raise
significant capital, in some cases exceeding their current market
capitalizations. To deconsolidate bad loans under the government-
guaranteed securitization scheme, banks would also need to sell
EUR10 billion of mezzanine notes to external investors.

The result of the simulation shows that the main weaknesses are
the greatest at banks to which Moody's assigns the lowest
baseline credit assessments (BCA): Monte dei Paschi di Siena (ca)
and Carige (caa3). At the same time, the banks with the highest
BCAs, Intesa Sanpaolo and Credem (both baa3), are amongst the
most resilient.

Moody's simulation is based on similar levels of disposals and
reserve requirements in line with the restructuring plan that
Montepaschi announced in July.

The model assumes, as per Montepaschi's plan announced on
July 29, 2016: (1) increased coverage on bad loans and on other
problem loans to 67% and 40%, respectively; (2) transfer of
junior notes to shareholders in the same proportion as per
Montepaschi's plan; and (3) a final CET1 ratio for each bank 100
basis points above SREP ratios set by the ECB.

Of the EUR360 billion problem loans on the books of Italian banks
at end-2015, EUR210 billion are classified as "bad loans" and the
remaining EUR150 billion are classified as "unlikely to pay" or
"past due".


ARD FINANCE: Moody's Assigns Caa2 Rating to PIK Toggle Notes
Moody's Investors Service assigned a Caa2 rating to $1,565
million equivalent PIK Toggle Notes due 2023 issued by ARD
Finance S.A., a wholly owned subsidiary of Ardagh Group S.A. the
ultimate parent company of Ardagh Packaging Group Ltd (Ardagh, B2
stable), a leading supplier of glass and metal containers.

All other ratings including the B2 corporate family rating (CFR)
and B2-PD probability of default rating (PDR) of Ardagh Packaging
Group Ltd and existing instrument ratings remain unchanged.

Moody's will withdraw the Caa2 ratings on the EUR 8.375% and USD
8.625% senior unsecured PIK notes due 2019 issued by Ardagh
Finance Holdings S.A. following their redemption.

The outlook on all ratings is stable.


Moody's views negatively the issuance of EUR270 million
additional new PIK Toggle notes over and above the amount
required to repay the existing PIK notes in order to fund the
latest shareholder distribution. Moody's views the shareholder
payout as further evidence of a persistent aggressive financial
policy, which is not in line with the rating agency's expectation
that Ardagh will use cash balances to reduce debt levels.

The announced dividend payment will increase adjusted leverage to
7.4x pro forma for the new financing (which is the same level as
at financial year end December 31, 2015) and up from 7.2x as at
30 June 2016. Moody's views the delay in reducing leverage as a
risk to the business at a time when it is undergoing a major
business integration in addition to ongoing restructuring
operations, particularly in the metals business.

Ardagh's plan to refinance the existing senior unsecured PIK
notes with new PIK Toggle notes is positive as it will extend the
maturity date to 2023 from 2019. In addition, the new PIK Toggle
notes are expected to price lower than EUR8.375%/USD8.625% for
the existing PIK notes. The company plans to pay cash interest on
the new PIK toggle notes, which by eliminating the PIK build up
will result in a small benefit to leverage.

While Moody's favorably views the progress Ardagh continues to
make integrating the assets acquired from Ball Corporation (Ba1
stable) which is reflected in positive trading performance,
Ardagh's rating remains constrained by the high level of adjusted
leverage, which Moody's now expects will remain above 7.0x
through 2016 and into 2017. Given that Ardagh is currently weakly
placed in the B2 rating category, any material deterioration in
the operating environment of the business, in particular relating
to the macro-economic outlook of faster-growing markets in which
Ardagh operates, expected volatility in raw material prices, or
weakening of operating margins due to competitive pressures may
result in negative rating pressure.


The rating outlook is stable reflecting Moody's expectation that
Ardagh will not enter into further debt-financed acquisitions
that would result in an increase in leverage, or fund further
dividend payments until operational stability has been achieved
with the Ball/Rexam assets being integrated into the overall
business. The stable outlook also incorporates Moody's
expectation that Ardagh will gradually deleverage over the next
12-18 months and that the anticipated build-up of cash will be
used to reduce debt.


Given Ardagh's current weak positioning in the B2 category, near-
term upward pressure on the company's ratings is unlikely.
However, the ratings could come under positive pressure should
Ardagh be able to reduce adjusted debt/EBITDA sustainably below
5.5x and maintain free cash flow to debt above 5%.

The ratings could come under negative pressure should the company
fail to meet the conditions for a stable outlook, or if adjusted
debt/EBITDA fails to reduce below 7.0x in the next 12-18 months.



   Issuer: ARD Finance S.A.

   -- Senior Unsecured Regular Bond/Debenture (Local Currency),
      Assigned Caa2 (LGD 6)

   -- Senior Unsecured Regular Bond/Debenture (Foreign Currency),
      Assigned Caa2 (LGD 6)

Outlook Actions:

   Issuer: ARD Finance S.A.

   -- Outlook, Assigned Stable


The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass, and Plastic Containers published in
September 2015.

Ardagh Packaging Group Ltd, registered in Luxembourg, is a
leading supplier of glass and metal containers. Pro forma for the
acquisition of the Ball/Rexam assets, the company generated sales
of approximately EUR7.8 billion in 2015.

HC INVESTMENTS: Moody's Puts B2 CFR Under Review for Upgrade
Moody's Investors Service placed the B2 Corporate Family Rating
('CFR') and B2-PD probability of default rating ("PDR") of HC
Investments S.a.r.l. ("Quironsalud") under review for upgrade.

The rating action follows the announcement, on September 5, 2016,
that Quironsalud has entered into an agreement to be acquired by
Fresenius SE & Co. KGaA ("Fresenius" - Baa3 stable).

Concurrently, the B1 ratings of the Senior Secured Term Loan A,
Senior Secured Term Loan B and the Revolving Credit Facility, and
the Caa1 rating of the Second Lien Term Loan, all issued at
Desarrollos Empresariales Piera, S.L.U. (previously IDCSalud,
S.L.U.), have also been placed under review for upgrade.


The rating review was prompted by Quironsalud's announcement that
it has entered into an agreement to be acquired by Fresenius.
Fresenius is to acquire 100% of the share capital of Quironsalud
in a transaction that values the company at EUR5.76 billion on a
cash and debt free basis. Purchase consideration is to be
comprised of a new issue of c.6.1 million of Fresenius shares,
valued at EUR400 million, to Victor Madera (the founder and CEO
of Quironsalud, who has agreed to a two year lock-up period),
with the remaining consideration to be debt-financed in a process
that is expected to repay existing Desarrollos Empresariales
Piera, S.L.U. debt. The transaction is subject to regulatory
approval and is expected to close in Q4 2016 or Q1 2017.

Moody's views the outlined transaction as positive for
Quironsalud. The new parent's financial flexibility,
complementary service provision and geographic footprint are
expected to support significant growth opportunities and the
delivery of further cost synergies, while also creating a
European leader in hospital management.

Given that a successful conclusion to the acquisition would
trigger change of control provisions included within
Quironsalud's existing financing arrangements and the expectation
that its Senior Secured and Second Lien facilities will be repaid
as part of the transaction proposed, Moody's expects that it will
withdraw Quironsalud's instrument ratings upon a successful
closing of the acquisition. However, should any indebtedness at
the Desarrollos Empresariales Piera, S.L.U. level survive the
transaction, which Moody's does not anticipate, then an upgrade
of several notches could apply.

Moody's expects the review to be completed shortly after
completion of the transaction, which, as detailed, is expected to
be in Q4 2016 or Q1 2017, subject to regulatory approval and
closing conditions.


Prior to placing the ratings on review, Moody's stated that
positive rating pressure would be considered if the leverage
metric, including the shareholder loan, were to fall to below
6.0x, which Moody's believes would have likely depended on the
company's financial policies. At the same time, Moody's stated
that downgrade pressure would likely occur if synergies
anticipated from acquisitions made were not to materialize,
resulting in weaker than expected operating performance such that
the Moody's gross leverage metric, including the shareholder
loan, were to remain at above 7.0x, or on concerns surrounding

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

Headquartered in Madrid, Quironsalud is the leading private
operator of hospitals in Spain with pro-forma revenues of EUR2.15
billion in 2015 and expected revenues of around EUR2.50 billion
in 2016. With a staff of c. 35,000 employees it manages a network
of 43 hospitals, 39 outpatient centers and around 300
occupational risk prevention centers throughout Spain, with a
presence in cities including Madrid, Barcelona, Valencia,
Sevilla, Zaragoza, Palma de Mallorca and Malaga.


* ROMANIA: Had More Than 100,000 Corp. Insolvencies in 5 Years
ACT Media reports that Romania would have seen an economic growth
of more than 5% in 2011 - 2015, had the number of insolvencies
been in line with that elsewhere in Central and Eastern European
countries instead of being four times higher, as it was, showed a
survey by Coface Romania.

"In the past five years, Romania had more than 100,000 corporate
insolvencies, with an incidence per 1,000 active companies four
times above the Central and Eastern European average and a 3%
successful reorganization rate, which is ten times below the
average in EU developed countries. The very high number of
insolvent companies has capped economic growth at an average of
3% compared to 5.25% as it would have been, had Romania's
insolvency rate been in line with the region average," ACT Media
quotes Coface Romania Services Director Iancu Guda as saying.

Thus, had the number of Romania's insolvencies been similar to
that in neighboring countries, the country's potential GDP would
have been 75% higher in the analyzed five-year span, argue Coface
representatives, according to ACT Media.

Moreover, tax revenue losses could have financed approximately
one third of the budget deficit, given that the companies that
entered insolvency in 2011 - 2015 had 451, 956 employees,
accounting for 11% of the total jobs reported by all active
companies, ACT Media discloses.

At the same time, lenders to the economy had record-high losses
of RON127 billion, with private providers standing to lose the
most, as they accounted for 47% of the total debts reported by
insolvency firms, Guda, as cited by ACT Media, added. Financial
institutions are ranked second by the amount of losses with 28%
of the total debt, and state bodies are third with 20%.

On the other hand, the survey showed that 2,933 of the companies
that entered insolvency during the said period had a turnover in
excess of one million euros, while the average number of active
companies in this revenue segment was 23,455, ACT Media relays.
"The Romanian business environment has lost in the past five
years about 13% of high revenue companies," Coface said.

According to ACT Media, Coface officials said that in comparison
with other countries in the region, insolvency was misused in
Romania, as financially troubled companies exploited a weak legal
framework that was overprotective of debtors.

"Moreover, the share of insolvent companies for which the
insolvency procedure was initiated at the debtor's request
increased from approximately 30% in 2008 (the level before the
financial crisis) to almost 55% in 2015," the Coface study
showed, ACT Media relays.

However, after the coming into force of a new Insolvency Code,
the number of newly opened insolvencies decreased steadily
beginning with 2014 by 28% in 2014 and 50% in 2015, with Coface
estimating a further decline by yet another 25% in 2016, adds ACT

U N I T E D   K I N G D O M

ALBEMARLE SHOREHAM: Goes Into Administration
Juice Brighton reports that Albemarle Shoreham Ltd., the head
lease holder for Brighton City Airport, has entered

The company bought the airport in 2008 having taken over from
Erinaceous Group plc who themselves went into administration,
Juice Brighton relates.

According to Juice Brighton, the operator has confirmed receivers
Simon Underwood -- -- and
David Thurgood -- -- of Menzies LLP have
been called in to deal with finances.

ENQUEST PLC: Explores Additional Funding Options
Charles Daly at Bloomberg News reports that EnQuest said in a
statement the company is exploring a number of additional funding
options "to ensure adequate liquidity continues to be available".

According to Bloomberg, Enquest is in discussions with its main
debt and credit providers to amend structure, covenants, interest
payment obligations, maturities and other aspects of its debt.

RCF lenders "continue to be supportive and have provided waivers
when required", Bloomberg relays.

The company remained in compliance with financial covenants under
its debt facilities throughout the reporting period, Bloomberg

The company says there are no significant debt maturities until
October 2017, when amortization of its RCF is due to commence,
Bloomberg relates.

Net debt increased to US$1.68 billion at June 30 from US$1.55
billion at the end of 2015, Bloomberg discloses.

EnQuest is a North Sea explorer.

MELTON RENEWABLE: Moody's Affirms Ba3 CFR; Outlook Now Stable
Moody's Investors Service, ("Moody's") has changed to stable from
negative the outlook on Melton Renewable Energy UK PLC (Melton).
Concurrently, Moody's has affirmed Melton's Ba3 corporate family
rating (CFR), the Ba2-PD probability of default rating (PDR) and
the Ba3 rating on the GBP152 million of outstanding senior
secured notes due 2020.



"The stable outlook reflects (1) the recent rebound in wholesale
power prices which will improve operating cash flows; (2) Moody's
expectation that wholesale power prices will remain at or
slightly below current levels over the next five years; (3) the
reduced refinancing risk of the senior secured notes following
the debt repayment in June 2016; and (4) continued strong
operational performance" said Phil Cope, an analyst at Moody's
and lead analyst for Melton.

In the twelve months ending March 31, 2016, around 69% of
Melton's output was generated from biomass and 31% from landfill
gas. Approximately 99% of the total output in the twelve months
ending March 2016 was sold under two long-term power purchase
agreements (PPAs) with British Gas. The fixed electricity prices
received under the PPAs for biomass and landfill gas output are
next reset on October 1, 2016, and will apply for six and twelve
months for landfill gas and biomass output sold respectively,
based on prevailing season(s) ahead market power prices during
the summer months of 2016 for both business streams.
Consequently, with the recovery in wholesale power prices in
recent months the applicable net price for biomass from 1 October
2016 (cGBP39/MWh) is over GBP5/MWh higher than when Melton's
ratings were lowered in February 2016, with a similar increase
for landfill gas. Moody's estimates that a GBP1/MWh change in
wholesale power prices translates into a GBP0.95-1.0 million
change in group EBITDA (c2% of group EBITDA in the twelve months
ending 31 March 2016) due to Melton's generation being mainly
fixed cost in nature.

Almost 90% of Melton's revenues come from a renewable energy
support mechanism (around 50%), the Renewables Obligation, that
runs until 2027, with subsidy levels indexed to inflation, and
wholesale electricity prices (around 40%). Since Moody's expects
UK power prices to remain depressed at or slightly below current
levels, with average power prices in the range of GBP36-41/MWh in
the five years to 2021, the rating agency projects Melton's Funds
From Operations (FFO) to be relatively stable in the GBP20-25
million range over FY2017-20.

Moody's views as a credit positive the June 2016 decision by
Melton to exercise the option to repay a further 10% (GBP19
million) of the original amount outstanding of the bonds to
mitigate the higher refinancing risk at maturity of the senior
secured notes associated with the expected reduction in earnings.
The company has been impacted by the discontinuation of the
Climate Change Levy from August 2015, resulting in a GBP3.3
million (c8%) reduction in EBITDA for the 12 months ending March
2016, and the significant reduction in wholesale market prices to
February 2016 which will only be fully reflected in FY2017 due to
the PPAs' electricity price setting mechanisms.

Melton's operational performance continues to remain strong.
Availability, load factors and output for the biomass business
all increased in the twelve months ending March 2016. For
landfill gas operations there was high engine availability across
the portfolio and the reduction in year-on-year output was in
line with expectations due to the proportion of closed sites.
With robust cost control and contract negotiations, reflected in
lower cost of sales despite higher output, and Moody's
expectation that capex will be very limited, low single digit
million per annum once the re-powering of the Ovenden Moor wind
farm is complete (expected by end 2016), the rating agency
projects the business to be highly free cash flow generative.


The affirmation of Melton's Ba3 ratings reflect the factors cited
above for the change of outlook to stable. The Ba3 ratings
further take into account (1) the relatively stable and
predictable nature of the group's principal renewable energy
support mechanism, controlled by the UK government and under
which all of the group's assets operate, that accounts for around
half of the company's revenues; (2) Melton's low marginal cost
generating fleet, which provides consistent load factors; and (3)
a commercial contracting structure including fuel procurement,
access to landfill gas and sale of power and associated benefits,
which reduces the impact of lower power prices on operating cash

However, the rating is constrained by (1) the group's small
scale, relative to the rated universe under Moody's Unregulated
Utilities and Unregulated Power Companies rating methodology, and
asset concentration risk, which will increase over time as the
landfill gas portfolio declines; (2) reduced predictability about
some elements of future revenues, in particular a subset of
embedded benefits (Triads), that follows the removal last year by
the government of another revenue source (LECs); (3) the high
level of leverage (net debt to EBITDA of over 3.5x at March 2016;
and (4) price setting arrangements that provide only short term
protection against further falls in power prices.


Given the high level of leverage (over 3.5x on a net debt to
EBITDA basis at March 2016) and the limited track record on
financial policy by the shareholders (funds managed by Octopus
Investments who acquired the business in October 2015), Moody's
considers that upward pressure on the rating is unlikely to arise
in the next one to two years. However, over the medium term
upward pressure for the rating would develop if 1) Melton
exhibited, on a consistent basis, FFO to Debt in the mid-to-high
teens and RCF to Debt in the low teens, both in percentage terms;
and 2) took steps to substantially mitigate refinancing risk.

Conversely, downward rating pressure would arise if the group
failed to meet the current ratio guidance, FFO / Debt comfortably
in the low double digits and RCF / Debt in the high single digits
(both in percentage terms). This could result from (1) a material
deterioration in the operational performance and/or technical
availability of the generation portfolio or the landfill gas
yield; (2) a further fall back in average wholesale power prices;
(3) a more aggressive financial policy in respect of dividend
distributions and/or growth capex; or (4) further reductions or
removal of revenue streams that the company receives by way of
support, for example embedded benefits.

The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in October

Melton Renewable Energy UK PLC (Melton), based near Woodbridge,
UK, is a holding company of two renewable electricity generation
businesses, Energy Power Resources Limited (EPRL) and CLP
Envirogas (CLP), which generate electricity from biomass and
landfill gas. As at June 30, 2016, the group had approximately
174 megawatts (MW) of generation capacity. The biomass accounts
for 111MW (64%) while the landfill gas business accounts for 63MW

WILLIAM ANELAY: In Administration, 126 Jobs Affected
Andrew Hitchon at The Press reports that 126 employees have been
made redundant as administrators were called in at William Anelay
Ltd., a York heritage building company which has been in business
since 1747.

Julian Pitts -- -- and Bob
Maxwell of Begbies Traynor have been appointed as joint
administrators of the company, one of Britain's longest-
established construction and heritage restoration companies,
following the failure of moves to rescue the business by securing
a deal with creditors, The Press relates.

According to The Press, following cash flow difficulties, the
business sought a company voluntary arrangement (CVA) with
creditors, but has been placed into administration because the
proposed CVA proved unviable.

The administrators are currently assessing the situation in order
to maximize value for creditors as well as liaising with the 140-
strong workforce, The Press discloses.

The company has now ceased trading, The Press relays.

Andrew Walker -- -- and
Doug Robertson -- -- from Irwin
Mitchell in Leeds are advising the administrators, The Press

* SCOTLAND: Has Lowest Proportion of Business Insolvency Risk
heraldscotland, citing a research published by insolvency and
restructuring trade body R3, reports that Scotland has a lower
proportion of businesses considered to have a higher-than-normal
risk of falling into insolvency in the next year than any other
part of the UK.

Overall, 20.6% of Scottish businesses are considered to have a
heightened risk of insolvency, compared with a UK average of
23.8%, heraldscotland relates.

London has the greatest proportion, with 24.8% of its businesses
viewed as having a greater-than-normal risk of insolvency,
heraldscotland says.

In all but one of 10 sectors tracked by R3, using Bureau van
Dijk's 'Fame' database, Scotland performed better than the UK
average, according to heraldscotland. Manufacturing was the only
sector in which Scotland had a greater proportion of businesses
with a heightened risk of insolvency than the UK average,
heraldscotland says.

heraldscotland notes that the R3 tracker measures companies'
balances sheets, director track records and other information to
work out their likelihood of survival over the next 12 months

Across Scotland, agriculture was the sector with the lowest
proportion of businesses at heightened risk, at 17.7%. Technology
and IT had the highest, at 33.3%, reports heraldscotland.

Asked about Scotland's lower proportion of businesses with
heightened risk of insolvency, in the context of tough times for
its economy, R3 chairman in Scotland Tim Cooper observed many
firms in, and reliant on, the north-east oil and gas sector had
built up strong balance sheets during the good years, according
to heraldscotland.

"If you look at oil and gas, you would expect there to be higher
risk in terms of signs of distress there, but balance sheets have
historically been pretty strong," heraldscotland quotes
Mr. Cooper, as cited by a partner at law firm HBJ Gateley in
Edinburgh, as saying. "It has been an industry and an economic
region, with other businesses like leisure, hotels, discretionary
spend businesses, cars, automotive, all of the things that exist
around Aberdeen - because there has been so much money floating
around so long, their balance sheets have been strong."

"They have been able to weather the storm with these balance
sheets," he added, notes heraldscotland.

According to heraldscotland, Mr. Cooper highlighted the
importance of businesses managing their finances carefully in the
"unfamiliar territory" in which they found themselves following
the UK electorate's June 23 vote to leave the European Union.

* UK: Late Payment Cause Over 1-in-5 Corporate Insolvencies
At least one fifth of UK corporate insolvencies in the past year
were caused by late payment or the insolvency of another company,
according to new research by insolvency and restructuring trade
body R3.

A survey of the insolvency profession reveals that late payment
for goods or services was a primary or major cause of 23% of
insolvencies in the last twelve months, while the failure of a
supplier or customer was the primary or major factor in 20% of

Andrew Tate, R3 president, says: "A business can have a great
product and great staff, but if it doesn't get paid for what it
sells, or if it is over-reliant on one supplier or customer,
things can go wrong very quickly.

"On the surface, late payment or the failure of another company
can seem like factors outside a business' control, but there are
plenty of steps a business can take to reduce the risks posed by
its supply chain and customer base.

"Businesses must not be complacent when it comes to checking who
they are trading with. If a business is not paid upfront it is
essentially acting as a lender - albeit without the protections a
secured lender enjoys. Keeping track of invoices and getting paid
is vital."

The latest research reveals the extent of the problem hasn't
improved since 2014, when a previous survey of the insolvency
profession found that late payment was a primary or major factor
in 20% of corporate insolvencies.

Andrew Tate continues: "The serious implications of late payment
is recognised by the high profile the issue now commands.
Unfortunately, government promises and other initiatives don't
appear to have yet made any real impact on the scale of the

Over half (57%) of insolvency practitioners identified
construction as the sector with the worst track record for late
payment, in line with findings from a previous member survey in
2014 (59%).

Andrew Tate adds: "Construction is considered to have the worst
late payment problem and it comes as no surprise that it's
consistently the sector with the highest number of corporate
insolvencies. Late payment problems and relatively high
insolvency rates are not a coincidence. If the sector could
diminish the extent of this issue it would see an improvement in
its business survival rate."

Previous research conducted by R3 found that 6% of UK businesses,
equivalent to 113,000 companies, were creditors in an insolvency
last year.

Andrew Tate says: "The failure of one company can have a serious
knock-on effect. The loss of a major contract or supplier can
quickly interrupt a business' cash-flow. It is possible to take
precautions to minimise the risk other insolvencies pose to your
business. One option could be to make sure terms and conditions
include an effective 'Retention of Title' clause - checked by a
lawyer - to ensure the retrieval of goods from an insolvent
customer if they have not been paid for.

"Both late payment and the 'domino effect' have been identified
as leading causes of insolvency by the profession so more needs
to be done to prevent needless financial concerns for businesses.
In this time of uncertainty following the EU referendum, we
should be doing everything we can to mitigate problems for the
business community, making it easier for UK companies to carry


* BOOK REVIEW: The First Junk Bond
Author: Harlan D. Platt
Publisher: Beard Books
Softcover: 236 pages
List Price: $34.95
Review by Gail Owens Hoelscher

Order your personal copy today and one for a colleague at
Only one in ten failed businesses is equal to the task of
reorganizing itself and satisfying its prior debts in some
fashion. This engrossing book follows the extraordinary journey
of Texas International, Inc (known by its New York Stock
Exchange stock symbol, TEI), through its corporate growth and
decline, debt exchange offers, and corporate renaissance as
Phoenix Resource Companies, Inc. As Harlan Platt puts it, TEI
"flourished for a brief luminous moment but then crashed to
earth and was consumed." TEI's story features attention-grabbing
characters, petroleum exploration innovations, financial
innovations, and lots of risk taking.

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

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

In 1977, TEI, primarily an oil production outfit, had had a
reprieve from bankruptcy through Michael Milken's first ever
junk bond. The fresh capital had allowed TEI to acquire a
controlling interest of Phoenix Resources Company, a part of
King Resources Company. TEI purchased creditors' claims against
King that were subsequently converted into stock under the terms
of King's reorganization plan. Only two years later, cash
deficiencies forced Phoenix to sell off its nonenergy
businesses. Vulture investors tried to buy up outstanding TEI
stock. TEI sold off its own nonenergy businesses, and focused on
oil and gas exploration. An enormous oil discovery in Egypt made
the future look grand. The value of TEI stock soared. Somehow,
however, less than two years later, TEI was in bankruptcy. What
a ride! All told, the book has 63 tables and 32 figures on all
aspects of TEI's rise, fall, and renaissance. Businesspeople will
find especially absorbing the details of how the company's
bankruptcy filing affected various stakeholders, the bankruptcy
negotiation process, and the alternative post-bankruptcy
financial structures that were considered. Those interested in
the oil and gas industry will find the book a primer on the
subject, with an appendix devoted to exploration and drilling,
and another on oil and gas accounting.

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


Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look
like the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets.  A company may establish reserves on its
balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through  Go to order any title today.


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

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

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