/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/161018.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 Tuesday, October 18, 2016, Vol. 17, No. 206 Headlines G E R M A N Y DECO 9: Fitch Lowers Rating on Class D Notes to 'CCsf' DEUTSCHE BANK: Germany Wants Swift Settlement of US Fine Dispute I R E L A N D SCF RAHOITUSPALVELUT II: Fitch Rates Class E Notes 'BB+(EXP)' I T A L Y AC MILAN: Goldman Sachs to Oversee Debt Restructuring MONTE DEI PASCHI: Board Studies Corrado Passera's Rescue Plan N E T H E R L A N D S DCDML 2016-1: Fitch Assigns 'BB-(EXP)' Rating to Cl. E Notes TIKEHAU CLO II: Fitch Assigns 'B-(EXP)' Rating to Class F Notes R U S S I A 1BANK PJSC: Liabilities Exceed Assets, Assessment Shows S P A I N ABENGOA BIOENERGY: Proposes Shell-Led Auction on Nov. 21 T U R K E Y DERINDERE TURIZM: Fitch Affirms 'B' IDR, Outlook Stable TURKCELL FINANSMAN: Fitch Assigns 'BB+' IDR, Outlook Negative U N I T E D K I N G D O M ALPARI UK: Administrators Set October 30 Claims Bar Date FINSBURY SQUARE 2016-2: Fitch Assigns CCC Rating to Cl. E Notes HARVEY HOUSE: Drug Detox Unit to Close Doors HODGES & COLEY: Sole Director Banned for 8 Years LINCS WOODLINES: Owes GBP1.98 Million to 188 Creditors * UK: Scotland's Corporate Insolvency Rate Up 30% in Q3 * UK: 39% of South West Transport Firms at Risk of Insolvency X X X X X X X X * EUROPE: France to Oppose New EU Rules for Failing Banks ********* ============= G E R M A N Y ============= DECO 9: Fitch Lowers Rating on Class D Notes to 'CCsf' ------------------------------------------------------ Fitch Ratings has downgraded DECO 9 Pan Europe 3 plc's class D notes due July 2017 and affirmed the others as: EUR2.5 mil. class B (XS0262561946) affirmed at 'CCCsf'; Recovery Estimate (RE) revised to 100% from 50% EUR37.6 ml. class C (XS0262562753) affirmed at 'CCsf'; RE revised to 70% from 0% EUR15.2 mil. class D (XS0262563215) downgraded to 'CCsf' from 'Csf'; RE0% EUR21.5 mil. class E (XS0262563728) affirmed at 'Csf'; RE0% EUR34.2 mil. class F (XS0262564452) affirmed at 'Csf'; RE0% EUR6.7 mil. class G (XS0262565004) affirmed at 'Csf'; RE0% EUR10 mil. class H (XS0262565939) affirmed at 'Csf'; RE0% EUR4.8 mil. class J (XS0262566234) affirmed at Csf'; RE0% The transaction closed in August 2006 and was originally the securitization of 11 commercial real estate loans secured on collateral located in Germany (eight loans) and Switzerland. In October 2016, only one loan remained. KEY RATING DRIVERS The affirmations and revised REs reflect higher-than-expected recoveries from the defaulted PGREI loan after a full repayment in July 2016 and principal recoveries from the Treveria I loan resulting from ongoing liquidation. The downgrade reflects the short remaining time to legal final maturity in July 2017, which makes it increasingly difficult to achieve sufficient recovery proceeds to fully repay the notes ahead of the deadline. The remaining loan, Treveria I (EUR287.0 mil.), of which 50% each is securitized in DECO 9, was originally secured on 61 commercial assets and has been in special servicing (first with Deutsche Bank AG and later with Situs Asset Management) since 2010. The special servicer has been actively liquidating the portfolio, resulting in 15 property sales in the last 12 months. As a result, 11 properties remain to be sold (eight retail and three warehouses) with three of these having been notarized and the remaining eight assets in various stages of due diligence/ sales negotiations. Overall collateral quality is average to poor and total vacancy is reported to be 55%, although this has fallen from 61% at the last rating action in October 2015. Gross sales prices have on average been at a 23% discount to 2011 market values; however, this has worsened to 41% for the most recent 15 sales. With only nine months remaining the special servicer is likely to face a growing challenge to sell the final assets by July. Fitch expects steep discounts of 40%-60% to be applied, resulting in recoveries well below the reported 2011 asset value of GBP79 mil. Fitch estimates 'Bsf' sustainable value at approximately GBP54 mil. RATING SENSITIVITIES All remaining notes will be downgraded to 'Dsf' at the earlier of bond maturity and the final interest payment date (once all collateral has been sold). DEUTSCHE BANK: Germany Wants Swift Settlement of US Fine Dispute ---------------------------------------------------------------- Birgit Jennen and Patrick Donahue at Bloomberg News, citing officials in Chancellor Angela Merkel's administration, report that Germany wants to see a swift settlement between Deutsche Bank AG and the U.S. government over a fine for mortgage-backed securities so the bank can focus on reshaping its business model. According to Bloomberg, one official said Germany's biggest bank needs to press ahead with measures such as job cuts, a shift to online banking and branch closures as part of a strategy that allows the nation's banks to weather regulatory changes and low interest rates. Another official said settling the U.S. case would create the breathing space to advance the process, Bloomberg relays. "Once Deutsche Bank has settled with the Americans, it can once again concentrate on its tasks at hand," Bloomberg quotes Michael Fuchs, deputy parliamentary leader for Merkel's Christian Democratic-led bloc, as saying in an interview. Mr. Fuchs, as cited by Bloomberg, said consolidation is under way and "the bank's management needs time" to fix mistakes made over "10 years or more," he said. While Merkel's government says it isn't intervening to lower the proposed US$14 billion (EUR12.7 billion) fine in Deutsche Bank's negotiations with the U.S. Justice Department, the comments reflect concern in Berlin that the Frankfurt-based bank may be moving too slowly to restore confidence after the company's stock fell to a record low in September, Bloomberg notes. Talks between Deutsche Bank and the Justice Department are continuing after discussions in Washington failed to produce a settlement, Bloomberg relays, citing people familiar with the situation. Deutsche Bank Chief Executive Officer John Cryan has said he expects the U.S. to scale back the initial request, Bloomberg notes. The bank, which set aside EUR5.5 billion for litigation at the end of June, may face additional penalties in other investigations, including a money-laundering inquiry tied to its Russia operations, Bloomberg states. Analysts at Barclays Plc speculate that could cost Deutsche Bank as much as EUR2 billion, Bloomberg notes. While Merkel's government says it doesn't have a rescue plan, that hasn't quelled concern among some German politicians who say Deutsche Bank, which runs Europe's biggest investment bank and has half of its 101,000 employees in Germany, needs to be pared, Bloomberg relays. "The too-big-to-fail risk isn't resolved," Bloomberg quotes Gerhard Schick, a member of the German parliament's finance committee for the opposition Greens party, as saying. "That bank still is too big and when you look at the risks on its books, it's undercapitalized." Deutsche Bank is a German global banking and financial services company with its headquarters in the Deutsche Bank Twin Towers in Frankfurt. The bank offers financial products and services for corporate and institutional clients along with private and business clients. ============= I R E L A N D ============= SCF RAHOITUSPALVELUT II: Fitch Rates Class E Notes 'BB+(EXP)' ------------------------------------------------------------- Fitch Ratings has assigned SCF Rahoituspalvelut II Designated Activity Company expected ratings as: Class A: 'AAA(EXP)sf'; Outlook Stable Class B: 'AA(EXP)sf'; Outlook Stable Class C: 'A+(EXP)sf'; Outlook Stable Class D: 'A-(EXP)sf'; Outlook Stable Class E: 'BB+(EXP)sf'; Outlook Stable Class F: Not rated The final ratings are contingent upon the receipt of final documents and legal opinions conforming to the information already received. The transaction is a securitization of auto loan receivables originated to Finnish individuals and companies by Santander Consumer Finance Oy (SCF Oy), a 100% subsidiary of Norway-based Santander Consumer Bank AS (SCB AS, A-/Stable/F2). KEY RATING DRIVERS Receivables' Performance Solid Default rates have improved significantly since SCF Oy started originations in 2007. In Fitch's view, this is due to improved economic conditions and origination practices. Fitch set a default rate assumption of 1.75%, taking into account the continued sound performance of previous comparable transactions from this originator. Fitch has maintained the high stress default multiple of 7.0x for 'AAAsf', which reflects the presence of balloon payments, together with the lower default base case and fairly late default definition. High Recoveries The recoveries achieved by SCF Oy are among the highest for rated European auto ABS. Fitch has used a recovery assumption of 70%, which was stressed with a high recovery haircut of 60% for 'AAAsf'. The high haircut reflects a small used-car market and a reliance on the government vehicle valuation mechanism in determining the value of repossessed vehicles. Liquidity Coverage A liquidity reserve provides adequate liquidity coverage to the class A and B notes. Class C and below do not benefit from the reserve, which means timely payment of interest on the notes may not be achieved in the case of a servicing disruption, constraining their highest achievable rating to 'A+sf'. Stable Asset Outlook Fitch believes the Finnish economic recovery is gathering pace, with investment and consumer spending helping lift GDP growth to an average of 0.8% year-on-year in 1H16. Unemployment, which is considered a key driver of asset performance, peaked at 9.5% in 2015 and is expected to gradually improve in 2016 and 2017. The agency expects stable auto loan performance in Finland. RATING SENSITIVITIES Expected impact on the notes' rating of increased defaults (class A/B/C/D/E): Expected ratings: 'AAAsf'/'AAsf'/'A+sf'/'A-sf'/'BB+sf' Increase default base case by 10%: 'AAAsf'/'AA-sf'/'Asf'/'A- sf'/'BBsf' Increase default base case by 25%: 'AA+sf'/'A+sf'/'A- sf'/'BBB+sf'/'BBsf' Increase default base case by 50%: 'AAsf'/'Asf'/'BBB+sf'/'BBBsf'/'B+sf' Expected impact on the notes' rating of reduced recoveries (class A/B/C/D/E): Expected ratings: 'AAAsf'/'AAsf'/'A+sf'/'A-sf'/'BB+sf' Reduce recovery base case by 10%: 'AAAsf'/'AA-sf'/'Asf'/'A- sf'/'BBsf' Reduce recovery base case by 25%: 'AAAsf'/'A+sf'/'Asf'/'BBB+sf'/'BB-sf' Reduce recovery base case by 50%: 'AA+sf'/'A+sf'/'BBB+sf'/'BBBsf'/'Bsf' Expected impact on the notes' rating of increased defaults and reduced recoveries (class A/B/C/ D/ E): Expected ratings: 'AAAsf'/'AAsf'/'A+sf'/'A-sf'/'BB+sf' Increase default base case by 10%; reduce recovery base case by 10%: 'AAAsf'/'A+sf'/'Asf'/'BBB+sf'/'BBsf' Increase default base case by 25%; reduce recovery base case by 25%: 'AA+sf/Asf/BBB+sf/BBBsf/B+sf Increase default base case by 50%; reduce recovery base case by 50%: 'A+sf'/'BBBsf'/'BB+sf'/'BBsf'/'B-sf' ========= I T A L Y ========= AC MILAN: Goldman Sachs to Oversee Debt Restructuring ----------------------------------------------------- Calciomercato.com reports that Sino-Europe is going to complete AC Milan's takeover by Nov. 15 and new CEO Marco Fassone will be flying to China where he will meet owners and new potential sponsors for the new club's course. However, new owners are not going to intervene in the club's EUR220 million debt, but American investment banking will do it instead, Calciomercato.com relays, citing Sole 24 Ore. Goldman Sachs, Calciomercato.com says, will reportedly manage the shareholding reorganization of Milan. The US bank has been appointed by the head of the Chinese delegation, Li Yonghong, to find bank credit lines to refinance about EUR220 million of the debt currently in Milan mostly to Italian banks, Calciomercato.com discloses. Associazione Calcio Milan, commonly referred to as A.C. Milan or simply Milan, is a professional football club based in Milan, Lombardy, Italy. MONTE DEI PASCHI: Board Studies Corrado Passera's Rescue Plan ------------------------------------------------------------- Rachel Sanderson and Martin Arnold at The Financial Times report that the board of Italy's Banca Monte dei Paschi di Siena is studying a proposal for a EUR5 billion recapitalization of the world's oldest lender presented by veteran banker Corrado Passera with backing from Bob Diamond's investment vehicle. The recapitalization approach from Mr. Passera, the former head of Italy's Intesa Sanpaolo and ex-industry minister, represents a challenge to a JPMorgan-led rescue plan that has stalled recently because of scant investor interest, the FT notes. European regulators have ordered MPS to offload nearly EUR30 billion of bad debts, the FT relates. Senior bankers warn that if neither JPMorgan nor Mr. Passera succeeds in their rescue attempts, MPS's creditors could be bailed in by the end of the year, with potentially damaging political and financial consequences, the FT states. According to the FT, in a statement over the weekend, MPS's board said it had received "a non-binding proposal on a potential capital strengthening of the bank" from Mr. Passera. The board, as cited by the FT, said it had "granted a specific mandate" to chief executive Marco Morelli, a former JPMorgan and Bank of America Merrill Lynch banker who also used to work for Mr. Passera at Intesa, to investigate the proposal. The plan proposed by Mr. Passera involves raising EUR5 billion in new capital through a EUR1 billion share sale to existing investors and a EUR2.5 billion investment from new long-term backers, the FT relays, citing a person with direct knowledge of the plan. According to the FT, another person familiar with the proposal said Mr. Passera has lined up new investors with Atlas Merchant Capital -- the investment vehicle of former Barclays boss Bob Diamond -- among those approached. By contrast, JPMorgan is now looking at a revised plan which would involve MPS raising EUR1 billion to EUR2 billion via a debt-for-equity swap launched in November, said people working on the proposal, the FT notes. About Monte dei Paschi Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is an Italy-based company engaged in the banking sector. It provides traditional banking services, asset management and private banking, including life insurance, pension funds and investment trusts. In addition, it offers investment banking, including project finance, merchant banking and financial advisory services. The Company comprises more than 3,000 branches, and a structure of channels of distribution. Banca Monte dei Paschi di Siena Group has subsidiaries located throughout Italy, Europe, America, Asia and North Africa. It has numerous subsidiaries, including Mps Sim SpA, MPS Capital Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA. ===================== N E T H E R L A N D S ===================== DCDML 2016-1: Fitch Assigns 'BB-(EXP)' Rating to Cl. E Notes ------------------------------------------------------------ Fitch Ratings has assigned DCDML 2016-1 B.V.'s notes expected ratings as: Class A mortgage-backed floating-rate notes: 'AAA(EXP)sf'; Outlook Stable Class B mortgage-backed floating-rate notes: 'AA(EXP)sf'; Outlook Stable Class C mortgage-backed floating-rate notes: 'A+(EXP)sf'; Outlook Stable Class D mortgage-backed floating-rate notes: 'A(EXP)sf'; Outlook Stable Class E mortgage-backed floating-rate notes: 'BB-(EXP)sf'; Outlook Stable Class F mortgage-backed floating-rate notes: not rated Class RS excess spread notes: not rated This is the first securitization of loans by Dynamic Credit Woninghypotheken B.V. (DCW), a new lender in operation since June 2015. The portfolio consists of prime Dutch residential mortgage loans, originated under an umbrella license of Quion. The mortgage loans are distributed and marketed under the Hypotrust label (Quion's multi-lender origination platform) under the product name "Elan mortgage". Quion conducts the underwriting and servicing of the loans while the lending criteria are set by DCW (in consultation with Quion) and follow the Dutch Mortgage Code of Conduct. Credit enhancement (CE) for the class A notes is 10.3% at closing, provided by the subordination of the junior notes and a cash reserve (1.094%), fully funded at closing through part of the proceeds of the class RS notes. Certain features in this deal are atypical for Dutch RMBS. The class A to E notes each have an allocated reserve fund, funded through the RS notes and only the class A allocated reserve fund can amortize, subject to certain conditions. In addition, step- up margins are subordinated to the repayment of the rated notes, interest shortfalls are deferred once there is a principal deficiency recorded on the respective class of notes and interest shortfalls on the most senior notes outstanding can be cleared with principal funds. Fitch's ratings on the class A and B notes address timely payment of interest (excluding the subordinated step-up margins accruing from October 2021) and full repayment of principal by legal final maturity on January 2049. KEY RATING DRIVERS New Originations, High LTV This portfolio contains recent originations without an NHG guarantee. The weighted average (WA) original loan to market value (OLTMV) is 99.1%, higher than market average. However, the WA debt to income (DTI) of 21.3% is low. Of the loans, 69.7% are annuity and linear products, and 30.3% are interest only loans (IO); IO loans are limited to 50% of the property's market value, as per the Dutch mortgage Code of Conduct. Established Origination Channel Although DCW is a new originator in the Dutch market, the origination, underwriting and servicing platforms of Quion support the lending operations, which are deemed to be of a robust standard. While limited performance data was available from DCW-originated collateral, the availability of proxy data, reliance on Quion's underwriting and management experience and the robust regulatory regime in the Netherlands constitute mitigating factors. Unrated Originator and Seller DCW (seller) and Quion (servicer, originator) are not credit-rated and as such may have limited resources to repurchase any loans in the event of a breach of the representations and warranties (RW) given to the issuer. Whilst this is a weakness, there are a number of mitigating factors that make the likelihood of an RW breach sufficiently remote. These mitigants include a satisfactory loan file review and third-party pool audit, as well as the alignment and experience of Quion's origination and servicing practices. Interest Rate Risk Mismatches between the fixed rate loans (99.4%) and the notes (linked to 3M Euribor) are hedged through a swap with BNP Paribas. While the issuer faces the reset risk on the loans, Fitch has taken the interest rate reset policy into account when modelling the loans' all-in reset rate, assuming that the implicit margin over the fixed swap rate payable in respect of the loans that reset covers senior fees and financing costs on the notes at closing. Fitch has therefore assumed that borrowers will revert to an all- in fixed rate maintaining an implicit margin of 1.1% at their reset date, compared to the current post swap margin of 1.6% in the transaction. In low or high interest rate environments, this assumption constitutes a variation from the Criteria Addendum: Netherlands - Residential Mortgage Loss and Cash Flow Assumptions where an assumed compression in fixed rates to 3%-4.5% is stated. For about 60% of the pool, resets occur 20 years from closing. By then scheduled amortization will have improved the risk profile of the rated bonds in a scenario where a substantial number of performing borrowers reset. Sensitivity analysis around the margin assumption at reset has shown that the classes B, D and E could be subject to at least a one notch downgrade if the transaction were not able to maintain higher margins in line with the prescribed interest rate reset policy. RATING SENSITIVITIES A material increase in the frequency of defaults and loss severities experienced on defaulted receivables could produce losses larger than Fitch's base case expectations, which in turn may result in negative rating action on the notes. Fitch's analysis revealed that a 30% increase in the WA foreclosure frequency, along with a 30% decrease in the WA recovery rate, would result in a model-implied-downgrade of the class A notes to 'AA+(EXP)sf', the class B notes to 'A+ (EXP)sf, the class C notes to 'BBB+(EXP)sf', the class D notes to 'BB(EXP)sf', the class E notes to below 'B(EXP)sf'. TIKEHAU CLO II: Fitch Assigns 'B-(EXP)' Rating to Class F Notes --------------------------------------------------------------- Fitch Ratings has assigned Tikehau CLO II B.V.'s notes expected ratings, as: EUR244 mil. class A: 'AAA(EXP)sf'; Outlook Stable EUR46 mil. class B: 'AA(EXP)sf'; Outlook Stable EUR23 mil. class C: 'A(EXP)sf'; Outlook Stable EUR18 mil. class D: 'BBB(EXP)sf'; Outlook Stable EUR28 mil. class E: 'BB(EXP)sf'; Outlook Stable EUR10.5 mil. class F: 'B-(EXP)sf'; Outlook Stable EUR44.7 mil. subordinated notes: not rated Final ratings are contingent on the receipt of final documentation conforming to information already received. Tikehau CLO II B.V., (the issuer) is a cash flow collateralized loan obligation. Net proceeds from the issuance of the notes will be used to purchase a portfolio of EUR400 mil. of mostly European leveraged loans and bonds. The portfolio is actively managed by Tikehau Capital Europe Limited. KEY RATING DRIVERS 'B'/'B-' Portfolio Credit Quality Fitch expects the average credit quality of obligors to be in the 'B' category. Fitch has credit opinions or public ratings on all assets in the identified portfolio. The weighted average rating factor (WARF) of the identified portfolio is 32.6 while the covenanted maximum Fitch WARF for assigning expected ratings is 34.5. High Recovery Expectations At least 90% of the portfolio will comprise senior secured obligations. Recovery prospects for these assets are typically more favorable than for second-lien, unsecured and mezzanine assets. Fitch has assigned Recovery Ratings to all the assets in the identified portfolio. The weighted average recovery rating (WARR) of the identified portfolio is 63.8% while the covenanted minimum Fitch WARR for assigning expected ratings is 66.5%. Diversified Asset Portfolio The transaction contains a covenant that limits the top 10 obligors in the portfolio to 21% of the portfolio balance. This ensures that the asset portfolio will not be exposed to excessive obligor concentration. Partial Interest Rate Hedge Between 0% and 10% of the portfolio can be invested in fixed-rate assets, while all the liabilities are floating rate notes. At closing, the issuer will enter into interest rate caps to hedge the transaction against rising interest rates. The notional of the caps is EUR34.3 mil., representing 8.6% of the target par amount, and the strike rate is fixed at 2%. The caps will expire five years after the closing date. Unhedged Non-Euro Assets Exposure The manager can invest up to 2.5% of the portfolio in unhedged non-euro assets, which are purchased in the primary market. Any unhedged asset in excess of the allowed limits or held for longer than 90 days will receive a zero balance for the calculation of the OC tests. Documentation Amendments The transaction documents may be amended, subject to rating agency confirmation or noteholder approval. Where rating agency confirmation relates to risk factors, Fitch will analyze the proposed change and may provide a rating action commentary if the change has a negative impact on the ratings. Such amendments may delay the repayment of the notes as long as Fitch's analysis confirms the expected repayment of principal at the legal final maturity. If, in the agency's opinion the amendment is risk-neutral from a rating perspective, Fitch may decline to comment. Noteholders should be aware that the structure considers a confirmation to be given if Fitch declines to comment. RATING SENSITIVITIES A 25% increase in the obligor default probability could lead to a downgrade of up to two notches for the rated notes, while a 25% reduction in expected recovery rates could lead to a downgrade of up to four notches for the rated notes. DATA ADEQUACY The majority of the underlying assets have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information. Overall, Fitch's assessment of the asset pool information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. =========== R U S S I A =========== 1BANK PJSC: Liabilities Exceed Assets, Assessment Shows ------------------------------------------------------- The provisional administration of PJSC JSCB 1Bank appointed by virtue of Bank of Russia Order No. OD-905, dated March 17, 2016, following revocation of its banking license established a poor quality of the bank's loan portfolio resulted from extending loans to organizations not involved in real economic activities, according to the press service of the Central Bank of Russia. Besides, the provisional administration revealed the indications of moving out assets through assigning loan claim rights worth over RUB200 million on a deferred-payment basis to organizations which bear the signs of dummy companies. According to estimates by the provisional administration, the asset value of PJSC JSCB 1Bank does not exceed RUB905.9 million, while its liabilities to creditors amount to RUB1,416.1 million. On May 19, 2016, the Court of Arbitration of the Republic of North Ossetia - Alania took a decision to recognize PJSC JSCB 1Bank insolvent (bankrupt) and initiate bankruptcy proceedings with the state corporation Deposit Insurance Agency appointed as a receiver. The Bank of Russia has submitted the information on the financial transactions bearing the evidence of criminal offences conducted by the former management and owners of PJSC JSCB 1Bank to the Prosecutor General's Office of the Russian Federation, the Russian Ministry of Internal Affairs and the Investigative Committee of the Russian Federation for consideration and procedural decision making. ========= S P A I N ========= ABENGOA BIOENERGY: Proposes Shell-Led Auction on Nov. 21 -------------------------------------------------------- Abengoa Bioenergy US Holding, LLC, asks the U.S. Bankruptcy Court for the Eastern District of Missouri to authorize bidding procedures in connection with the sale of substantially all assets to stalking horse purchaser Shell Oil Co. for $26,000,000, subject to overbid. Since the Petition Date, the Debtor and its professionals have undertaken substantial efforts to accomplish two major tasks: (a) assuring smooth transition to operating as debtor in possession in the Chapter 11 Case; and (b) effectuating a marketing process for the Debtor's assets. To that end, the Debtor worked diligently with its advisors to obtain the DIP Financing, and to develop a budget that would enable the Debtor to facilitate the marketing process in order to maximize the value of the Debtor's assets. The Debtor has determined, after the exercise of due diligence and in consultation with its advisors that maximizing the value of the Debtor's estate would best be accomplished through the sale of the Debtor's assets ("Purchased Assets"). To that end, and following a comprehensive marketing process employed by the Debtor's financial advisor and investment banker, Ocean Park Advisors, LLC, the Debtor and the Stalking Horse Purchaser, a Delaware corporation, entered into that certain asset purchase agreement ("Stalking Horse Agreement"), for the sale by the Debtor of the Purchased Assets to the Stalking Horse Purchaser, free and clear of all liens, claims and encumbrances ("Sale"). The Sale, pursuant to the Stalking Horse Agreement, is subject to competitive bidding. Under the Stalking Horse Agreement, the Stalking Horse Purchaser has agreed to purchase the Purchased Assets for the purchase price. The Stalking Horse Purchaser, in making its offer, has relied upon the agreement by the Debtor to seek the Court's approval of reimbursement of the Stalking Horse Purchaser's reasonable fees, costs, disbursements and expenses incurred in connection with the transaction contemplated by the Stalking Horse Agreement through the date of termination, subject to a cap of $100,000 and a break-up fee in an amount equal to 2.5% of the purchase price ("Stalking Horse Protections"), and in reasonable expectation that the Court will enter an order providing such relief. The Debtor, in the exercise of its business judgment, believes that the Stalking Horse Protections are a mandatory component of the Stalking Horse Purchaser's bid and therefore a necessary cost of preserving the value of the Debtor's estate. Accordingly, the Stalking Horse Protections are necessary to establish a "floor" for the sale of the Purchased Assets and ultimately to encourage competitive bidding and realization of the highest value for the Purchased Assets. The Sale of the Purchased Assets pursuant to the procedures and on the timeline proposed presents the best opportunity to maximize the value of the Purchased Assets for all interested parties. In order to ensure that the Debtor receives the maximum value for the Purchased Assets, the Stalking Horse Agreement is subject to higher or better offers, and, as such, the Stalking Horse Agreement will serve as the stalking-horse bid for the Purchased Assets. The Debtor proposes these bidding procedures: a. Qualified Bid: A bid that is greater than or equal to the sum of the value offered under the Stalking Horse Agreement, plus (a) the Stalking Horse Protections, plus (b) $250,000. b. Bid Deadline: Nov. 18, 2016 at 4:00 p.m. (CT) c. Auction: the Debtor will conduct the Auction of the Purchased Assets at 10:00 a.m. (CT) on Nov. 21, 2016 at the offices of Abengoa Bioenergy, 16150 Main Circle Drive, Suite 300, Chesterfield, Missouri. d. Starting Bid: Stalking horse-bid e. Subsequent Bid: At least $250,000 above the prior bid f. Return of Deposits: All good faith deposits will be returned to each bidder not selected by the Debtor as the Successful Bidder or the Back-Up Bidder no later than 5 business following the conclusion of the Auction. The Successful Bidder will not receive its deposit if the Successful Bidder fails to close on the Sale of the Purchased Assets. g. Back-Up Bidder: The Qualified Bidder with the next highest or otherwise best Qualified Bid with respect to the Purchased Assets, as determined by the Debtor in the exercise of its business judgment, will be required to serve as a back-up bidder. h. Stalking Horse Protections: The Stalking Horse Protections will be payable as provided for pursuant to the terms of the Stalking Horse Agreement. i. Sale Hearing: The Debtor will seek entry of an order from the Bankruptcy Court at a hearing within one day following the conclusion of the Auction, to approve and authorize the sale transaction to the Successful Bidder. j. Closing: The closing on the sale of the Purchased Assets will be consummated as soon as practicable following the Sale Hearing, but no later than Dec. 8, 2016. The Debtor believes that approval of the Stalking Horse Protections will benefit the estate in creating a competitive bidding process. The Stalking Horse Protections are reasonable under the circumstances and will enable the Debtor to maximize the value for the Purchased Assets. The Debtor also believes that the Bidding Procedures will encourage bidding for the Purchased Assets and are consistent with the relevant standards governing auction proceedings and bidding incentives in bankruptcy proceedings. Accordingly, the proposed Bidding Procedures and Stalking Horse Protections are reasonable, appropriate and within the Debtor's sound business judgment. The Debtor also requests that the Court approve the form of the Procedures Notice. The Debtor will serve a copy of the Procedures Notice on these parties: (a) the U.S. Trustee, (b) the Official Committee of Unsecured Creditors, (c) any parties requesting notices in this case pursuant to Bankruptcy Rule 2002, (d) all known creditors of the Debtor, (e) counsel to the Stalking Horse Purchaser, and (f) all known Potential Bidders ("Procedures Notice Parties"). The Debtor proposes to serve the Procedures Notice within 3 business days following entry of the Bidding Procedures Order. The Debtor submits that the foregoing notice procedures comply fully with Bankruptcy Rule 2002 and are reasonably calculated to provide timely and adequate notice of the Bidding Procedures, Auction and Sale, and Sale Hearing to the Debtor's creditors and other parties in interests. Based on the foregoing, the Debtor respectfully requests that the Court approve these proposed notice procedures. The Debtor seeks to assume and assign certain contracts and leases to be identified on schedules to the Stalking Horse Agreement other than those agreements excluded by the Successful Bidder pursuant to such bidder's asset purchase agreement. The Debtor requests that the Court waive the 14-day stay period under Bankruptcy Rules 6004(h) and 6006(d) or, in the alternative, if an objection to the Sale is filed, reduce the stay period to the minimum amount of time needed by the objecting party to file its appeal. A copy of the Stalking Horse Agreement, the Bidding Procedures, and the list of contracts and leases attached to the Motion is available for free at: http://bankrupt.com/misc/Abengoa_Bioenergy_467_Sales.pdf The Debtor proposes this timeline in connection with the Bidding Procedures: Date ---- Entry of Bidding Procedures Order Oct. 21, 2016 Assumption/Assignment & Cure Objection Deadline Nov. 4, 2016 Sale Objection Deadline Nov. 4, 2016 Bid Deadline Nov. 18, 2016 Auction Nov. 21, 2016 Sale Hearing Nov. 22, 2016 The Purchaser: SHELL OIL PRODUCTS US P.O. Box 2463 Attn: Susan Strelkow Facsimile: (713) 241-5788 E-mail: susan.strelkow@shell.com The Purchaser is represented by: Ryan Manns, Esq. NORTON ROSE FULBRIGHTS US, LLP 2200 Ross Avenue, Suite 3600 Facsimile: (214) 855-8200 E-mail address: ryan.manns@nortonrosefulbright.com About Abengoa Bioenergy US Abengoa Bioenergy is a collection of indirect subsidiaries of Abengoa S.A., a Spanish company founded in 1941. The global headquarters of Abengoa Bioenergy is in Chesterfield, Missouri. With a total investment of $3.3 billion, the United States has become Abengoa S.A.'s largest market in terms of sales volume, particularly from developing solar, bioethanol, and water projects. 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. 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. 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 five affiliated debtors each filed a Chapter 11 voluntary petition in St. Louis, Missouri, disclosing total assets of $1.3 billion and debt of $1.2 billion. The cases are pending before the Honorable Kathy A. Surratt-States and are jointly administered under Bankr. E.D. Mo. Case No. 16-41161. The Debtors have engaged DLA Piper LLP (US) as counsel, Armstrong Teasdale LLP as co-counsel, Alvarez & Marsal North America, LLC as financial advisor, Lazard as investment banker and Prime Clerk LLC as claims and noticing agent. =========== T U R K E Y =========== DERINDERE TURIZM: Fitch Affirms 'B' IDR, Outlook Stable ------------------------------------------------------- Fitch Ratings has affirmed Derindere Turizm Otomotiv Sanayi ve Ticaret A.S.'s (DRD) Long-Term Issuer Default Rating at 'B' and National Long-Term rating at 'BBB(tur)'. The Outlooks are Stable. KEY RATING DRIVERS IDR AND NATIONAL RATING DRD's ratings reflect its leading local franchise and its established and cash generative business model. It also reflects high leverage as well as sizable exposure to foreign exchange (FX) and debt rollover risks. Operational leasing services are a growth market in Turkey and DRD's fleet size has doubled since 2011, to 27,416 vehicles, resulting in a national market share of 9.7%. DRD's wide network across Turkey provides advantages in offering leasing and fleet management solutions to a growing customer base, including individuals. DRD's leverage increased due to portfolio growth in 2015-1H16 amid only modest profitability. The debt/equity ratio increased to 7.0x at end-1H16, which is weak, aggravated by the company's risk profile and volatile operating environment. DRD's profile is marked by volatile earnings, largely due to FX effects. Assets are mainly denominated in Turkish lira, while funding is in foreign currency (FC). The company uses hedge accounting to reflect cash flow hedges from FC-denominated lease receivables (recorded off-balance sheet). This somewhat mitigates foreign exchange risk. However, DRD's reported open currency position, net of the hedge, was still a very high 3.7x equity at end-1H16. FX risk is further mitigated by a natural hedge as the residual value of the leased fleet is booked in lira yet is quite sensitive to exchange rate changes, primarily against the euro, similar to the market for new vehicles. However, DRD's earnings are sensitive to significant movements of the Turkish lira against the euro, despite the cash flow and natural hedges. The company is exclusively wholesale funded, drawing credit lines primarily from local banks. Short-term borrowings represented a high 46% of total debt at end-1H16. Rollover risk stems from the maturity mismatch of assets and liabilities and the concentrated funding profile. However, this risk is mitigated by DRD's strong cash generation capacity in runoff mode, if needed. DRD has demonstrated very low delinquency levels, a function of relatively resilient collateral. DRD retains title over the cars and may quickly repossess them in case of non-payment. Turkey's secondary car market is well established, resulting in sound liquidity of underlying assets. However, the company is exposed to material residual value risk as the market is volatile. The Stable Outlook reflects our view that DRD's strong operating performance and cash generation capacity counterbalance high leverage and significant rollover risks. RATING SENSITIVITIES IDR AND NATIONAL RATING A sustainable reduction in leverage to provide a greater cushion against market and residual value risks could result in an upgrade. TURKCELL FINANSMAN: Fitch Assigns 'BB+' IDR, Outlook Negative ------------------------------------------------------------- Fitch Ratings has assigned Turkcell Finansman A.S 'BB+' Foreign and Local Currency Long-Term Issuer Default Ratings and 'AA(tur)' National Long-Term Rating. The Outlook on the IDRs is Negative while the Outlook on the National Rating is Stable. KEY RATING DRIVERS TFS was created as a separate entity out of the financing department of Turkcell (BBB-/Negative) in 4Q15. There have been no major changes in TFS's operations relative to those previously undertaken by Turkcell's financing department. TFS's ratings are based on potential support from the parent. Fitch believes Turkcell would have a strong propensity to support TFS given (i) its 100% stake and full operational control; (ii) the close integration of the subsidiary with its parent; and (iii) TFS's role in customer base acquisition for Turkcell. The one-notch difference between the ratings of Turkcell and TFS reflects the subsidiary's focus on a different segment (finance rather than telecom services) and its short operating history. These factors in Fitch's view moderately reduce the reputational risk for the parent or potential negative impact on other parts of Turkcell group in case of TFS's default. TFS provides Turkcell's retail customers with loans for the purchase of mobile devices. TFS's core product is small ticket unsecured loans with 24-36 month tenors. TFS plans to extend its product range but still focus on Turkcell's clientele for the foreseeable future. However, in the longer term Turkcell is considering developing TFS into a financial company providing loans also to non-Turkcell customers. TFS accounted for a small 4% of Turkcell's assets as of end-1H16, but in view of rapid growth (driven by booking of new business on TFS's balance sheet) and customer base potential Fitch expects TFS to exceed 10% of group assets in 2017. TFS sells its products directly via Turkcell branches. The company has countrywide coverage in Turkey with 3,300 sale- points. The business model, with a heavy reliance on digital integration with shops, allows TFS to limit fixed costs. TFS's internal debt/equity (leverage) limit is 10x (significantly more conservative than the regulator's 30x). At end-1H16 leverage was less than 1x, but Fitch expects it to increase to 5x by end-2017 as portfolio growth will far outpace capital generation. TFS expects to upstream dividends, but no concrete plans have been made yet. TFS plans to rely on loans from banks as a core funding source for 2016-2018. TFS's average asset duration is 11-12 months and therefore can be comfortably matched by bank funding. TFS does not plan to attract any parent funding due to tax implications. Given TFS's limited track record, it is not possible to make forecasts in respect to the company's performance. Currently TFS's loan pricing and net interest margin are in line with consumer loans of commercial banks. However, Fitch believes that Turkcell's management might tolerate moderate profitability at TFS given the customer acquisition benefits that it brings for the group. Fitch understands from management that default rates on customer loans issued by Turkcell's finance department have historically been moderate. RATING SENSITIVITIES IDRS, NATIONAL RATINGS AND SUPPORT RATING TFS's ratings are likely to remain linked to Turkcell's ratings, and the Negative Outlook mirrors that of the parent, which in turn is driven by the Negative Outlook on the Turkish sovereign. The Long-Term IDR of Turkcell is at the Turkish sovereign level, and a negative action on the Turkish sovereign rating would likely be mirrored in Turkcell and TFS's ratings respectively. An equalisation of TFS's ratings with those of Turkcell is unlikely unless TFS's role in the Turkcell group strengthens and achieves a longer track record of operations and of support from Turkcell. A weakening of Turkcell's propensity or ability to support TFS may result in a widening of the notching from the parent. The rating actions are: Long Term Issuer Local and Foreign Currency IDRs assigned at 'BB+', Outlook Negative Short Term Local and Foreign Currency IDRs assigned at 'B' National Long Term Rating assigned at 'AA(tur)', Outlook Stable Support Rating assigned at '3' =========================== U N I T E D K I N G D O M =========================== ALPARI UK: Administrators Set October 30 Claims Bar Date -------------------------------------------------------- On September 29, 2016, the English High Court made an Order prescribing a procedure by which client money held by Alpari (UK) Limited (in special administration) ("Alpari") should be distributed to clients. The Order can be viewed and downloaded alongside this notice at www.kpmg.com/uk/alpari Richard Heis, Samantha Bewick and Edward George Boyle of KPMG LLP, the Joint Special Administrators of Alpari (the "Joint Special Administrators"), intend to make a final distribution of client money to clients of Alpari, in accordance with the Order. Clients who have not yet submitted a client money claim, but wish to do so, must provide their claim to the Joint Special Administrators using the contact details at the bottom of this notice. Clients may submit their claims at any point up to and including October 30, 2016, 23:59 (Greenwich Mean Time), being the last date for proving. Alpari intends to distribute all remaining client money. Clients who have not submitted a client money claim to the Joint Special Administrators as set out below by the last date for proving will not be entitled to share in the proposed distribution of client monies. Clients who intend to submit a client money claim should do so within 21 days from the date of this notice, i.e. on or before October 30, 2016, 23:59 (Greenwich Mean Time). The Order permits the Joint Special Administrators to apply a de minimis threshold of US$51.50 in respect of claims where there would be a total distribution of less than US$51.50. The Joint Special Administrators therefore do not intend to make a distribution to clients whose rateable sum for total distribution is less than US$51.50. Once the remaining client money has been distributed, clients who have not submitted a client money claim will no longer be entitled to any distribution from the client money pool. Provision is being made in Alpari's general estate for creditor claims connected with those clients who have not submitted a claim in respect of their client money entitlements. Alpari will assist clients who have not claimed to contact the FSCS in order for those clients to try to make a claim for compensation for their client money entitlement from the FSCS. The Joint Special Administrators intend to make a final distribution to clients by July 24, 2017. THE JOINT SPECIAL ADMINISTRATORS AND ALPARI Richard Heis -- richard.heis@kpmg.co.uk -- and Samantha Rae Bewick -- samantha.bewick@kpmg.co.uk -- were appointed as joint special administrators of Alpari (UK) Limited on January 19, 2015, and Edward George Boyle was appointed as a Joint Special Administrator of Alpari (UK) Limited on July 15, 2016. The Special Administrators' insolvency practitioner numbers are 8618, 8872 and 9077 respectively. The affairs, business and property of Alpari (UK) Limited are being managed by the joint special administrators who contract as agents of Alpari (UK) Limited without personal liability. Alpari (UK) Limited is authorised and regulated by the Financial Conduct Authority. FCA reference number 448002. Registered in England No. 05284142. Pursuant to rule 296(1) of the Investment Bank Special Administration (England and Wales) Rules 2011, if you wish to request a hard copy of this notice, the Joint Special Administrators can be contacted: (a) by emailing alpariukclaims@kpmg.co.uk, (b) by writing to Alpari (UK) Limited (in special administration), 15 Canada Square, London, United Kingdom E14 5GL, or (c) by telephoning +44(0)333 2021397. FINSBURY SQUARE 2016-2: Fitch Assigns CCC Rating to Cl. E Notes --------------------------------------------------------------- Fitch Ratings has assigned Finsbury Square 2016-2 Plc's notes final ratings as: GBP296,700,000 Class A: 'AAAsf', Outlook Stable GBP14,660,000 Class B: 'AA+sf', Outlook Stable GBP15,520,000 Class C: 'A+sf', Outlook Stable GBP7,760,000 Class D: 'Asf', Outlook Stable GBP10,360,000 Class E: 'CCCsf', Outlook Stable GBP10,350,000 Class X: 'BB+sf', Outlook Stable GBP6,900,000 Class Z: Not rated This transaction is a securitization of owner-occupied and buy- to-let mortgages originated in the UK by Kensington Mortgage Company Limited. The ratings are based on Fitch's assessment of the underlying collateral, available credit enhancement (CE), Kensington Mortgage Company Limited's origination and underwriting procedures, and the transaction's financial and legal structure. KEY RATING DRIVERS Near Prime Mortgages Fitch believes Kensington's underwriting practices are robust and the lending criteria do not allow for any adverse credit 24 months before application. Kensington has a manual approach to underwriting, focusing on borrowers with some form of adverse credit or complex income. Historical book-level performance data displays robust performance, although data is limited, especially for buy-to-let (BTL) originations. Fitch assigned default probabilities using the prime default matrix while applying an upward lender adjustment. Split Between Owner-occupied and BTL In contrast to recent transactions with Kensington originations (Gemgarto 2015-1 and 2015-2), the securitized pool consists of a split of owner-occupied (OO) and BTL originations. The proportion of BTL originations in the provisional portfolio is 14.9%. Product Switches Permitted Borrowers are permitted to make one product switch during the mortgage term; in the event that a loan were to make a second product switch that loan would need to be repurchased by Kensington. While there are restrictions around the type and volume of product switches permissible, these loans earn less margins than the reversionary interest rates under their original terms. Fitch has analyzed the effect of product switches by assuming the weakest pool available under the product switch restrictions within the transaction documents. Unrated Originator and Seller The originator and seller are unrated entities and so may have limited resources to repurchase mortgages if there is a breach of the representations and warranties (RW). This is however mitigated by a low incidence of previous breaches of the RW,a file review performed by Fitch and a third-party agreed upon procedures (AUP) report provided indicating no adverse findings material to the rating analysis. RATING SENSITIVITIES Material increases in the frequency of defaults and loss severity on defaulted receivables producing losses greater than Fitch's base case expectations may result in negative rating actions on the notes. Fitch's analysis revealed that a 30% increase in the weighted average (WA) foreclosure frequency, along with a 30% decrease in the WA recovery rate, would imply a downgrade of the class A notes to 'AA-sf' from 'AAAsf'. HARVEY HOUSE: Drug Detox Unit to Close Doors -------------------------------------------- The Visitor reports that a unit in Lancaster which provides drug and alcohol detox services is to close. Harvey House, in Ashton Road, was run by four shareholders. But it has now been announced that the unit will close imminently, and staff were told on Oct. 10 that the redundancy process was to begin. "It is with regret and reluctance that the shareholders of Harvey House Social Enterprises Ltd (HHSE) have decided to close Harvey House and instruct a prompt and orderly wind down of all services," the report quotes a spokesman as saying. "The shareholders have also commenced formal insolvency proceedings of the company and appointed a licensed insolvency practitioner, Marshall Peters, to assist with this." "Since opening in 2011, HHSE has provided safe and effective treatment and care for more than 1,200 vulnerable adults from right across the north of England, and beyond. Every member of our professional and dedicated team has worked tirelessly to ensure that the clinical, care and support services provided are amongst the best in the country. It is a testament to their hard work that HHSE has built an enviable track record in achieving excellent results and high levels of client satisfaction. However, and at the same time, the underlying business has struggled and, despite considerable investment over a period of time, has been unable to demonstrate viability. It is these sustained and increasing financial pressures that have led the business to close," the spokesman adds, notes the report. Harvey House took in clients from across the north west, usually for seven to 10 days of treatment, the report notes. HODGES & COLEY: Sole Director Banned for 8 Years ------------------------------------------------ Anthony Hodges, an IT consultant, signed a disqualification undertaking preventing him from acting as a company director for 8 years. Mr. Hodges was the sole director of Hodges & Coley Ltd. The Insolvency Service's investigation found Mr. Hodges failed to ensure Hodges & Coley Ltd paid its tax liabilities from January 2011 until January 2014, when the company went into liquidation. This resulted in a liability to HM Revenue and Customs (HMRC) of GBP191,136 at the date of liquidation. In that period Mr. Hodges paid GBP3,100 to HMRC and at least GBP423,024 to himself and his family. The total deficiency to creditors at the date of liquidation was GBP223,424. Of the GBP423,024 paid to Mr. Hodges and his family, GBP41,471 was paid on or after Oct. 23, 2013, at a time when H&C was insolvent and Mr. Hodges had informed his accountant of his intention to liquidate the company. The disqualification, which follows an investigation by the Insolvency Service, means that Mr. Hodges cannot control or manage a limited company without leave of the court. Robert Clarke, Head of Insolvent Investigations North at the Insolvency Service, said: "Company directors have a duty to ensure businesses meet their legal obligations, including paying taxes and must not benefit themselves at the expense of creditors. Neglect of tax affairs is not a victimless action as it deprives the taxpayer of the funds needed to operate public services. "The Insolvency Service will take action against directors who do not take their obligations seriously and abuse their position." Mr. Hodges' date of birth is April 2, 1960, and he resides in Basingstoke. Hodges & Coley Ltd was incorporated on Aug. 3, 2010 and latterly traded from 51 Majestic Road, Hatch Warren, Basingstoke, RG22 4XD. Mr. Hodges was a director from Aug. 3, 2010 until the company went into liquidation on Jan. 27, 2014.The estimated deficiency at the date of Liquidation was GBP223,424. On Oct. 3, 2016, the Secretary of State accepted a Disqualification Undertaking from Anthony Hodges, effective from Oct. 24, 2016, for 8 years. The matters of unfitness, which Mr. Hodges did not dispute in the Disqualification Undertaking, were that: -- he caused Hodges & Coley Ltd (H&C) to provide himself and his family with remuneration and benefits as the sole director of H&C which were excessive in that they represented the majority of H&C's trading income and deprived it represented the majority of H&C's trading income and deprived it of funds to cover its current liabilities, notably its liabilities to HM Revenue & Customs (HMRC) in respect of Value Added Tax (VAT) between Jan. 7, 2011 when the VAT liability for the quarter ended Nov. 30, 2010 was due for payment and Jan. 27, 2014, the date of liquidation and in respect of Corporation Tax (CT) between June 1, 2012, when the CT liability for year ended Aug. 31, 2011 was due for payment and Jan. 27, 2014, by paying at least GBP423,024 to himself and his family while making payments totalling GBP3,100 to HMRC. He also failed to comply with his statutory duties to make returns and payments to HMRC in respect of VAT and CT as and when due -- between Oct. 23, 2013, when he was aware that H&C was insolvent and had informed H&C's accountant of his intention to liquidate H&C and Jan. 10, 2014, Mr. Hodges caused H&C to enter into transactions to the detriment of creditors, specifically HMRC, totalling GBP41,471 A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot: -- act as a director of a company -- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership be a receiver of a company's property In addition that person cannot act as an insolvency practitioner and there are many other restrictions are placed on disqualified directors by other regulations. LINCS WOODLINES: Owes GBP1.98 Million to 188 Creditors ------------------------------------------------------ Simon Leonard at Scunthorpe Telegraph reports that a Scunthorpe businessman who left customers thousands of pounds out of pocket and owes nearly GBP2-million revealed about how his life has been destroyed. The Scunthorpe Telegraph has obtained an official Insolvency Service document, which shows Mark Beighton -- the sole trader of now defunct firm Lincs Woodlines -- has debts totalling GBP1.98 million. The Scunthorpe Telegraph relates that the Insolvency Service said Mr. Beighton owes money to 188 creditors. Scunthorpe MP Nic Dakin, who took up the case in August after being contacted by concerned customers, has written to the Government asking them to look into the legislation around businesses that go bankrupt, the report says. As reported, bosses at Lincs Woodlines in Moorwell Road, Bottesford, said they were "devastated" the business closed in July with the loss of 25 staff. And, on Oct. 14, Mr. Beighton apologises to his customers, the report relates. Since then the Scunthorpe Telegraph has been contacted by nine customers saying they are awaiting orders. Between them, the customers claim they are owed nearly GBP65,000. Mark Beighton is the sole trader of the business, which specialised in bespoke products such as sheds, summer houses and specialist conservatories, the report discloses. * UK: Scotland's Corporate Insolvency Rate Up 30% in Q3 ------------------------------------------------------- Scott McCulloch at Daily Record reports that figures compiled by KPMG show total corporate insolvency appointments in Scotland rose to 230 in the three months to September 30, which was up 30% year-on-year but down 14% on the previous quarter. Daily Record relates that the rate of business failure in Scotland rose 30% year on year in the three months to September 30, figures from KPMG suggest. According to Daily Record, the total number of corporate insolvency appointments in three months rose from 177 last year to 230 though the total number of insolvency appointments was down 14% on the 269 reported the previous quarter. Administration appointments in the third quarter, which usually involve larger businesses, rose from 19 last year to 27 and rose by three on the 24 recorded in Q2, Daily Record discloses. Liquidation appointments, which tend to affect smaller businesses, increased from 158 to 203 in Q3, which was down 17% on the 245 reported in Q2. Edinburgh Gazette figures show the number of insolvencies instigated by HM Revenue and Customs in the three month to September 30 dipped more than 20%to 103 from 130 in Q3 of 2015 and against 112 reported in Q2 of this year, according to Daily Record. Daily Record quotes Blair Nimmo, head of restructuring for KPMG, as saying that: "Business failures continue to rise amidst well- documented challenges facing the oil and gas sector and as a result of sustained uncertainty caused by the EU referendum. "While it would be easy to blame an immediate post-Brexit rise in insolvencies directly on the result of the vote in June, in reality the statistics are more reflective of the long-term impact uncertainty has had on the economy in the past 12 months or so. "This is evidenced by the fact total corporate appointments from July to September actually fell in comparison to the quarter immediately prior to the referendum. "A similar trend was seen in the lead up to and following the Scottish independence referendum in September 2014." * UK: 39% of South West Transport Firms at Risk of Insolvency ------------------------------------------------------------- Insider Media reports that more than one third of transport and haulage companies in the South West are at heightened risk of insolvency in the next 12 months, according to business recovery trade body R3. Insider Media relates that the organization found that 39% of the region's businesses in the sector were at risk. This is on a par with the UK average for the industry of 40% but is considerably higher than the South West average of all businesses at risk at 23%, Insider Media reports. "It's not unusual for transport and haulage to be at the top end of the insolvency risk spectrum. The instability in the sector here in the South West is replicated nationally. Businesses in the sector tend to work to tight margins, so managing cash-flow is particularly important. Costs may be increasing as oil prices rebound from their records lows of earlier this year," Insider Media quotes Alan Bennett, regional chairman of R3 in the South West and partner at Ashfords, as saying. "The sector may be have added concerns in light of the decision by the UK to leave the European Union, particularly due to doubt around future trade restrictions and potential changes to border controls." R3 uses research compiled from Bureau van Dijk's 'Fame' database of company information to track the number of businesses in key regional sectors that have a heightened risk of entering insolvency in the next year, the report notes. =============== X X X X X X X X =============== * EUROPE: France to Oppose New EU Rules for Failing Banks --------------------------------------------------------- Jim Brunsden and Thomas Hale at The Financial Times report that France is preparing to mount a campaign against the way Europe introduces rules that make it easier to wind down failing banks, driven by fears in Paris that its lenders will be disproportionately targeted. According to the FT, the European Commission is planning to publish proposals in the coming weeks. They seek to stop major banks being too-big-to-fail by forcing them to issue more debt that can be easily wiped out if they get into distress, the FT discloses. It is estimated that banks will have to issue billions in new securities to meet the standard, the FT notes. France is preparing to fight the plans over what it says is their overly narrow scope, the FT says, citing people briefed on the matter. As drafted, the rule would cover a total of 13 EU lenders, including BNP Paribas, Societe Generale, Credit Agricole and Groupe BPCE from France -- more than from any other nation other than the UK, the FT states. Other banks set to be covered include Deutsche Bank in Germany, UniCredit in Italy and Banco Santander in Spain, according to the FT. Elke Koenig, the chairwoman of the Single Resolution Board, the euro area agency tasked with handling failed banks in the future, has also suggested that a wider range of banks should be covered, the FT relays. She recently said there was a case to be made for applying TLAC "to a larger pool -- it could be all significant banks", the FT notes. The clash has echoes of a French pushback during the past two years against EU plans for breaking up big banks, with Paris concerned that it could become the prime target, the FT states. Work on those proposals has ground to a halt because of splits within the European Parliament, including over how many banks should be covered, the FT relays. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, 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 202-362-8552. * * * End of Transmission * * *