TCREUR_Public/161209.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, December 9, 2016, Vol. 17, No. 244



ATU AUTO-TEILE-UNGER: Store Chain on Brink of Insolvency
PRESTIGEBIDCO GMBH: S&P Assigns Preliminary 'B' CCR
PROGROUP AG: S&P Affirms 'B+' Rating on EUR345MM Fixed-Rate Notes
UNISTER GLOBAL: Back in Profit, Insolvency Administrator Says


ESTIA MORTGAGE: S&P Affirms 'CCC' Ratings on Three Note Classes


BUS EIREANN: Faces Strike Threat as Unions Seek 21pc Wage Hike


CANTARELLI SS71: Launches Tendering Procedure for Business Unit
MERCURY BONDCO: S&P Assigns 'B' Rating to PIK Toggle Notes
MONTE DEI PASCHI: Italy Requests More Time for Rescue Plan
UNICREDIT SPA: To Offload Bank Pekao Stake to Boost Capital


JUBILEE CDO I-R: S&P Affirms B+ Rating on Class E Notes

* NETHERLANDS: Number of Bankruptcies Rises to 461 in November


BAIKALBANK PJSC: Liabilities Exceed Assets, Inspection Shows
RUSCOBANK JSC: Liabilities Exceed Assets, Investigation Shows
RUSSIAN TRUST: Liabilities Exceed Assets, Assessment Shows
VODOKANAL ST. PETERSBURG: S&P Affirms 'BB/B' CCRs, Outlook Stable


TURKIYE SISE: S&P Affirms 'BB/B' CCRs, Outlook Stable

U N I T E D   K I N G D O M

IENERGIZER LIMITED: Moody's Affirms Caa1 Corporate Family Rating

* UK: Brexit Puts 5,000 Restaurants at Risk of Insolvency


* BOOK REVIEW: Risk, Uncertainty and Profit



ATU AUTO-TEILE-UNGER: Store Chain on Brink of Insolvency
Axel Hopner at Handelsblatt Global reports that ATU Auto-Teile-
Unger has gone into administration after months of rescue talks
seemingly ended in failure.

Barring an 11th-hour deal being reached, the company will have
little option but to file for insolvency by the end of the week,
according to industry insiders, Handelsblatt relays.

"It doesn't look at all hopeful," Handelsblatt quotes one
investor as saying.

Handelsblatt says the embattled firm, which employs 10,000 people
at 600 workshops across Germany, has been owned by a group of
hedge funds since 2013 and has been in financial difficulty for

ATU Auto-Teile-Unger is a Germany-based car repair and tire

PRESTIGEBIDCO GMBH: S&P Assigns Preliminary 'B' CCR
S&P Global Ratings said that it assigned its preliminary 'B'
long-term corporate credit rating to PrestigeBidCo GmbH, the
parent of Germany-based off-price apparel retailer Schustermann &
Borenstein (S&B).  The outlook is stable.

At the same time, S&P assigned its preliminary 'B' issue rating
to PrestigeBidCo's proposed EUR260 million senior secured notes.
The recovery rating on the notes is '3', reflecting S&P's
expectation of meaningful (50%-70%) recovery in the event of
default.  S&P also assigned a preliminary 'BB-' issue rating to
Prestige's proposed EUR35 million super senior secured revolving
credit facility (RCF).  The recovery rating on this instrument is
'1', reflecting S&P's expectation of very high (90%-100%)
recovery in the event of default.

The preliminary rating is subject to the successful issuance of
the senior secured notes and the RCF as well as S&P's review of
the final documentation.  If S&P Global Ratings does not receive
the final documentation within a reasonable time frame, or if the
final documentation departs from the materials S&P has already
reviewed, it reserves the right to withdraw or revise its

The long-term rating on S&B primarily reflects the limited scale
of the company and its relatively aggressive financial policy
that underpins the high leverage exceeding 5x, on an S&P Global
Ratings-adjusted basis pro forma the transaction.  S&P views
S&B's track record of earnings growth, its well-established
customer and supplier relationships, and its robust interest
cover metrics as supporting the rating.

S&P considers that the main supports to Germany-based off-price
apparel retailer S&B's business risk profile are its track record
of strong growth through the economic cycle and its solid market
position within the niche off-price fashion market, in particular
in the online segment of the German off-price market.

The company's solid share in German off-price fashion market and
its loyal and affluent invitation-only customer base with above-
average frequency of purchases allow the company access to an
attractive stock mix.  This includes the ability to offer the
current season goods at discounted prices as part of overall
product mix.  S&B benefits from the long-term retail supplier
relationships, mainly in the European off-price market, where the
company sources premium brand products.  In S&P's view, S&B's
offering provides an important channel for premium brand
retailers to reduce their less liquid stocks with limited margin
erosion. S&B's business model also benefits from significant
diversity of supplier brands and therefore lower susceptibility
to earnings shortfall resulting from a poor performance of any
one seasonal collection.

S&P also considers that S&B's unique business model with its
relatively flexible and scalable cost structure, low customer
acquisition costs, strong online presence, and diverse supplier
base will underpin growth at a higher rate than the high-single-
digit compound annual growth rate industry data providers
forecast for the off-price apparel market over the medium term.
S&B's international expansion strategy--with a focus on Austria
and Switzerland--and planned new store openings will contribute
to this growth.

S&P considers that the main constraints on S&B's business risk
profile assessment are the relatively low level of adjusted
EBITDA compared with other companies in the retail sector and its
geographical concentration.  With EUR50.7 million adjusted EBITDA
generated in 2015, even a relatively small shortfall in earnings
could have a material effect on credit metrics, thereby
restricting headroom for any operational setbacks.  In addition,
the company generates 100% of its earnings in an off-price niche
of the apparel market in Western Europe, of which over 85% is in
Germany.  This, in S&P's opinion, could limit S&B's ability to
weather any unfavorable changes in the underlying market

S&P also views S&B's business profile to be limited by a high
seasonality in its earnings, with about 33% of sales generated in
the last quarter of the year.  This is exacerbated by S&B's
comparably high working capital requirements due to the inherent
seasonality of off-price and off-season fashion product
availability on attractive terms.

Following the proposed transaction, S&B's debt, with S&P's
adjustments, will comprise the proposed EUR260 million senior
secured notes and an operating lease adjustment of EUR57.8
million as of Dec. 31, 2015, which is increasing with sales.  S&P
understands that the RCF of EUR35 million will be undrawn at
closing.  S&P excludes from its adjusted debt about EUR420
million of proposed preferred shares due to:

   -- The subordinated status of this instrument;
   -- Its cash-preserving nature; and
   -- S&P's understanding that--in line with the stated financial
      policy--if this instrument were to be refinanced in the
      medium term, it would not lead to weakening of the credit
      metrics from the level S&P anticipates S&B will post in
      2017.  If any future refinancing were to lead to weakening
      of the credit metrics, S&P could revise the treatment of
      the preferred shares.

"We forecast that S&B will post S&P Global Ratings-adjusted
EBITDA of EUR60 million-EUR62 million in 2016, compared with
EUR50.7 million in 2015 including the expenses related to the
change in inventory allowances, which amounted to EUR1.3 million
in 2015.  We anticipate that this amount will increase with sales
growth, and could affect intra-year earnings to a higher extent
at the time of seasonal peak in inventory purchases.  At the same
time, we recognize a noncash nature of this expense, and
acknowledge the conservative effect that this accounting
treatment has on profitability," S&P said.

In addition, S&P's adjustments to 2015 EBITDA include:

   -- EUR10.8 million added back on account of operating leases;
   -- EUR3.2 million added back on account of amortization and
      financing expenses related to historical acquisitions; and
   -- EUR3.6 million deducted on account of capitalized
      development costs, largely related to website development.

S&P further forecasts its adjusted EBITDA of EUR65 million-EUR70
million in 2017, leading to S&P's adjusted debt to EBITDA of a
little higher than 5.0x and funds from operations (FFO) to debt
of about 10%. At the same time, we believe S&B will benefit from
robust interest cover metrics with EBITDA interest coverage of 3x
or higher over the 2017-2018 forecast period.

In S&P's base case it forecasts that over the next two years, S&B
will reduce its leverage, mainly due to EBITDA growth, and
generate positive, but relatively low, free operating cash flow
(FOCF) due to the planned expansionary investment in working
capital and capital expenditure (capex).  S&P do, however,
acknowledges the discretionary nature of these growth
investments, with S&B having the flexibility to wind-back growth
expenditure should it encounter operating underperformance.

S&P's base case assumes:

   -- A moderately growing German economy, with S&P's forecast of
      GDP growth of 1.5% in 2017 and 1.4% in 2018, as well as
      private consumption growth of 1.2% and 1.1% for 2017 and
      2018, respectively;

   -- Strong double-digit organic sales growth driven by
      underlying fundamentals of the off-price fashion market and
      S&B's well-established online business tapping successfully
      into larger international markets;

   -- Smooth execution of the store network expansion strategy,
      with two openings planned over the next four years in other
      German cities;

   -- Continuing integration of recently acquired Swiss business
      with positive EBITDA contribution from the last quarter of
      2016 on, which then results in EBITDA margins of about 16%-
      18% on an S&P Global Ratings-adjusted basis;

   -- Capex of about EUR5 million-EUR10 million in 2017 and
      greater than EUR10 million in 2018; and

   -- No shareholder returns or acquisitions over the next two

Based on these assumptions, and following the expected completion
of the refinancing transaction, S&P arrives at these credit
measures over 2017 and 2018:

   -- Adjusted debt to EBITDA of 5.0x-5.2x in 2017, improving to
      4.4x-4.8x in 2018;

   -- FFO to debt of 8%-11% in 2017 and 2018; and

   -- EBITDA to interest coverage of about 3x.

The stable outlook reflects S&P's expectation that S&B will
continue its strong growth over the next 12 months.  This is due
to the contribution of recently acquired Swiss Online Shopping AG
and organic growth underpinned mainly by its well-established
online business in both the home market and internationally.  S&P
considers that the headroom under S&B's rating is limited, with
debt to EBITDA of above 5.0x and FFO to debt at about 10% in the
12 months following the transaction, allowing little cushion for
any operating underperformance.  At the same time, S&P believes
that S&B will benefit from adequate liquidity.

S&P could lower the ratings if management's growth strategy
faltered, resulting in overall lower earnings than S&P
anticipates in its base case.  This could be demonstrated by
deteriorating margins or significantly lower sales, which result
in weakened credit metrics that may include sustainable weakening
of FFO to debt to materially lower than 10%, debt to EBITDA
sustainably exceeding 5x, or FOCF turning negative.

S&P could also lower the rating if S&B faced material
deterioration in its customer base, if, for example, there was a
significant change in customer behavior affecting either churn or
total customer spending on products offered by S&B, without any
offsetting measures to replenish its customer base.  That said,
based on the company's strong track record, S&P do not consider
this likely to occur in the next 12 months.

An upgrade would likely require a successful operating track
record under the new ownership, and S&P's view of financial
policy as supportive of stronger credit metrics over time.

PROGROUP AG: S&P Affirms 'B+' Rating on EUR345MM Fixed-Rate Notes
S&P Global Ratings revised up to '3' from '4' its recovery
ratings on German corrugated board and containerboard producer
Progroup AG's EUR345 million fixed-rate notes and its floating-
rate senior secured notes.  S&P affirmed its issue rating at

At the same time, S&P affirmed the 'B-' issue rating on the
EUR125 million payment in kind (PIK) toggle notes issued by JH-
Holding Finance.  The '6' recovery rating on this debt is

The 'B+' long-term corporate credit rating on Progroup is
unaffected by these actions.  The outlook remains positive as a
result of strong performance.

                         RECOVERY ANALYSIS

Key analytical factors

   -- The recovery ratings on Progroup's senior secured fixed-
      and floating-rate notes were revised upward after the
      company redeemed EUR75 million of the floating-rate notes
      early, reducing the amount of secured debt that would rank
      pari passu at default.  The recovery rating of '3'
      indicates S&P's expectation of meaningful recovery in the
      event of a payment default, in the lower half of the
      50%-70% range.  The issue ratings are unchanged at 'B+'.

   -- The recovery rating on the senior secured notes is
      supported by the company's valuation as a going concern and
      the comprehensive guarantor and security package, but
      constrained by the notes' contractual subordination to
      prior-ranking debt, including the senior secured revolving
      credit facility (RCF), and the amount of equally ranked
      secured debt at default (although this amount is

   -- The issue rating on the EUR125 million PIK toggle notes
      issued by JH-Holding Finance S.A. is unchanged at 'B-', two
      notches below the corporate credit rating.  The recovery
      rating on the PIK notes is unchanged at '6', reflecting
      S&P's expectation of negligible recovery (0%-10%) in the
      event of a payment default.  The recovery rating is
      constrained by the notes' structural subordination to a
      substantial amount of senior debt at Progroup.

   -- The documentation has few covenants and was lately amended
      to reflect the combined heat and power acquisition; the
      RCF's springing net leverage covenant (triggered if the
      outstanding revolver plus letters of credits exceed 30% of
      commitment) threshold was altered to 4.90x, stepping down
      to 4.0x, from 4.75x stepping down to 3.50x over the life of
      the facility.

   -- S&P's hypothetical default scenario assumes substantial
      overcapacity in Progroup's markets, combined with weaker
      demand, which would result in downward pressure on prices.
      Furthermore, an increase in the price of raw materials,
      such as recycled paper, would erode the company's operating
      margins, given its limited ability to automatically pass
      these cost increases on to customers.  This would result in
      liquidity shortfalls and a payment default in 2020.

   -- S&P values Progroup as a going concern, underpinned by its
      presence in a profitable product grade and stable end
      markets, its long-standing customer relationships, and its
      relatively new, efficient, and well-invested asset base.

Simulated default assumptions
   -- Year of default: 2020
   -- EBITDA at default: about EUR66 million
   -- Implied enterprise value multiple: 5.5x
   -- Jurisdiction: Germany

Simplified waterfall
   -- Gross enterprise value at default: about EUR360 million
   -- Administrative costs: EUR22 million
   -- Net value available to creditors: EUR339 million
   -- Priority claims: EUR78 million*
   -- Secured debt claims: about EUR453 million*
      -- Recovery expectation: 50%-70% (lower half of the range)
   -- Subordinated debt claims: EUR130 million*
      -- Recovery expectation: 0%-10%

*Priority claims include factoring facilities, finance leases,
and the super senior RCF, which is assumed to be 85% drawn.  All
debt amounts include six months' prepetition interest.


Recovery Ratings Revised; Ratings Affirmed
                                        To                 From
Progroup AG
Senior Secured                         B+                 B+
   Recovery Rating                      3L                 4H

Ratings Affirmed

JH-Holding Finance S.A.
Subordinated                           B-
  Recovery Rating                       6

UNISTER GLOBAL: Back in Profit, Insolvency Administrator Says
fvw reports that Unister Global is "back in profit" with
improving revenues and reduced costs five months after declaring
insolvency, the Leipzig-based group's insolvency administrator
Lucas Flother has announced.

According to fvw, revenues in the tourism business, based around
the Ab-in-den-Urlaub portal, are now "only slightly lower than
last year" despite a major reduction in marketing activities,
while bookings for in-house tour operator Urlaubstours are
increasing. Revenues in the flight sales business, primarily
through the portal, are now on a constant upward path,
he declared, relates.

However, competitors claim that the group's tourism revenues are
still well below last year and estimated that's
revenues are down by 50%, relays fvw.

fvw relates that Mr. Flother also said that there are still a
number of potential investors in Unister's travel business but
emphasised that the group now has "the necessary time" to find
the "best-possible investor solution" thanks to its improving
financial situation. "Our aim is not a sale as quickly as
possible but a sale at the best-possible conditions," he

However, according to fvw information, the planned sale is barely
making any progress, apparently due to excessive price demands by
Mr. Flother. It is unclear whether he is still aiming to sell the
travel business as one unit or the tourism and flight portals
separately, adds fvw.

                           About Unister

Unister Holding GmbH is a German operator of travel, e-commerce
and news websites.  The Leipzig-based company operates more than
40 websites and employs about 1,100 people.

As reported in the Troubled Company Reporter-Europe on July 20,
2016, Bloomberg News said Unister Holding GmbH filed for
preliminary insolvency proceedings after its managing
director died in a plane crash.  According to Bloomberg, the
company said on July 18 in a statement that Unister, known for
hiring celebrities including soccer star Michael Ballack to woo
users to portals such as holiday-booking service ab-in-den-, filed with a Leipzig court.  Lucas Floether has been
appointed as the company's preliminary administrator, Bloomberg

Unister's founder and managing director Thomas Wagner, 38, died
July 14 in Slovenia when his plane crashed en route from Venice
to Leipzig, Bloomberg disclosed.


ESTIA MORTGAGE: S&P Affirms 'CCC' Ratings on Three Note Classes
S&P Global Ratings affirmed its 'CCC (sf)' credit ratings on
Estia Mortgage Finance PLC's class A, B, and C notes.

According to structured finance ratings above the sovereign
criteria (RAS criteria), S&P's ratings in a transaction in a
country with significant adverse country redenomination risk (one
in three or greater likelihood of exiting the currency regime and
where S&P expects the redenomination to have a negative credit
effect on structured finance ratings) are capped at 'B'.  The
rating differential between the foreign currency rating on the
sovereign and the securitization's maximum potential rating will
narrow as the risk of exiting the currency regime increases.
Furthermore, when the likelihood of exiting exceeds one in three,
S&P expects to lower its ratings in structured finance
transactions in that jurisdiction to below the RAS criteria cap.

On July 22, 2016, S&P affirmed its 'B-' foreign currency long-
term sovereign rating on Greece.  The affirmation reflected S&P's
assessment that the Greek government continues to fulfill the
formal conditions attached to its EUR86 billion financial support
program, albeit with delays.  However, the delivery on structural
reforms has been piecemeal, the economy remains fragile, and the
banks distressed.  S&P could lower its ratings on Greece if the
new government 'doesn't implement the reforms it has agreed to
with the European Stability Mechanism (ESM) in their memorandum
of understanding.  Prolonged non-implementation of the ESM
program could lead to a general default on Greek government debt.

In S&P's analysis, it still considers the increased sensitivity
of Greek residential and consumer assets to the Greek economy and
the likely effect on structured finance transactions' rating
volatility.  S&P continues to take into account the increased
likelihood of Greece eventually exiting the eurozone and
defaulting on its commercial debt.  Therefore, the application of
S&P's RAS criteria still caps its ratings in this transaction at
'CCC (sf)' (the level that S&P downgraded the class A, B, and C
notes to in S&P's previous review), in spite of the 'B-' local
and foreign currency long-term ratings on Greece.

Total arrears have been increasing since 2010 and peaked in
September 2015 at 19.22%.  As of September 2016, total arrears
were 11.61%, with 90+ days arrears representing 2.87%.  In
addition, the deal is currently fully collateralized, with the
cash reserve being at its target level.  The available credit
enhancement has increased for all classes of notes (see below).


Class   Sept.   June
        2016    2016

A       32.8    22.5
B       13.3     5.7
C        3.6     0.0

As of September 2016, the cumulative net default ratio was 4.17%
of the total original balance.  The net default ratio has
remained fairly stable since the beginning of 2015, due to the
fact that because of legal limitations in Greece, the servicer
did not classify loans as defaulted over the last two years.  The
transaction has an interest payment deferral mechanism for the
class B and C notes, providing additional protection for the
class A notes.  This mechanism applies if the net cumulative
default ratio exceeds 9.2% for the class B notes, or 5.8% for the
class C notes.

S&P do not expect the transaction to breach the interest deferral
trigger for the class C notes over the next 12 to 18 months,
while it is possible that it might happen over a longer period of
time. This reflects that the cumulative net default ratio has
remained stable since the beginning of 2015.  Consequently, S&P
has affirmed its 'CCC (sf)' rating on the class C notes,
reflecting the application of S&P's criteria for assigning 'CCC'
ratings.  S&P also believes that it is possible that interest
will be deferred on the class B notes, but in an even longer
period of time.  S&P has therefore affirmed its 'CCC (sf)' rating
on the class B notes.

Despite the significant rise in available credit enhancement for
the class A notes (to 32.8% in September 2016 from 22.5% in June
2016), S&P has affirmed its 'CCC (sf)' rating on this class of
notes following the application of S&P's RAS criteria.

Estia Mortgage Finance is a Greek residential mortgage-backed
securities (RMBS) transaction backed by Greek mortgage loans that
Piraeus Bank S.A. originated.


Class       Rating

Estia Mortgage Finance PLC
EUR750 Million Mortgage-Backed Floating-Rate Notes

Ratings Affirmed

A           CCC (sf)
B           CCC (sf)
C           CCC (sf)


BUS EIREANN: Faces Strike Threat as Unions Seek 21pc Wage Hike

Anne-Marie Walsh and Niall O'Connor at Irish Independent report
that Bus Eireann passengers face a fresh strike threat in the new
year as the company and unions clash over pay.

Irish Independent relates that unions are demanding a 21pc pay
rise as Bus Eireann considers pay cuts that would reduce its
2,600 workers' wages by EUR5 million.

Unions have accused the company of "thumbing its nose" at their
claim for a wage increase, the report says.

According to Irish Independent, Union sources warned they have no
alternative but to consult their members on industrial action
after accusing management of pulling out of a Labour Court
hearing on Dec. 6.

Their fury grew after Transport Minister Shane Ross announced
that Bus Eireann is facing a financial crisis and could be
insolvent in two years, with some claiming the move was
"choreographed," the report relays.

"We have exhausted all processes available to us and there is no
option left but to take industrial action," the report quotes a
senior source as saying.  "We lodged a pay claim 18 months ago
and it is not acceptable for the company to decide at the
eleventh hour that it will not engage and does not have its
restructuring plan ready."

Irish Independent says several Cabinet sources agreed that the
issue is one of the most serious to emerge in the transport
system in some time.

It is understood Mr. Ross met senior figures in Bus Eireann and
the CIE group this week, according to Irish Independent.

Irish Independent reports that Mr. Ross told his Cabinet
colleagues that at least six routes on the Expressway service are
now at immediate risk. He did not name the routes under severe

He also warned the company could be insolvent in two years, adds
Irish Independent.

According to the report, Unions lodged a claim for a pay rise of
21pc, similar to a pay claim lodged at Dublin Bus which was in
turn based on a pay rise won by Luas drivers earlier this year.

They are demanding 5pc a year over three years, plus a 6pc pay
increase due under a previous social partnership agreement, the
report states.

But chief executive Martin Nolan on Dec. 6 insisted that the
company could not afford the increase, Irish Independent relates.

Bus Eireann suffered losses of EUR5.6 million last year and
predicts losses of EUR6 million next year, the report discloses.

One of the most immediate services under threat is the
loss-making Expressway, adds Irish Independent.


CANTARELLI SS71: Launches Tendering Procedure for Business Unit
A tendering procedure has been launched, pursuant to articles 62
et seq. of Legislative Decree no. 270/1999, for the sale of the
business unit owned by Cantarelli SS71 S.p.A. under Extraordinary

This notice calls interested parties to submit a formal non-
binding Expression of Interest, drawn up in written form in
Italian, duly signed in original by a person vested with
representative powers in the case of a legal person, accompanied
by copies of the documents indicated in the Tender
Specifications, all placed in a closed envelope to be delivered
by hand or to be sent by registered mail with return receipt
and/or by courier, bearing on the outside, in addition to the
party's company name and the reference "Confidential", the
wording "Expression of Interest in the CANTARELLI Business Unit"
and the recipient: Cantarelli SS71 S.p.A., addressed to the
Official Receiver Avv. Leonardo Romagnoli in Piazza Massimo
d'Azeglio 18, 50121 Florence.

For details regarding the tendering procedure launched under this
announcement, please refer to the above Tender Specifications and
the annexes thereto, available on the website

MERCURY BONDCO: S&P Assigns 'B' Rating to PIK Toggle Notes
S&P Global Ratings said that it has assigned its 'B' long-term
issue rating to the payment-in-kind (PIK) toggle notes to be
issued by Mercury BondCo PLC.  The notes will be used to finance
part of the acquisition of ISP Processing, Intesa Sanpaolo's
payment processing platform.

In accordance with S&P's methodology on PIK instruments it is
assigning the PIK toggle notes a 'B' rating.  S&P equalizes the
rating on the PIK notes with the counterparty credit rating on
the issuer, Mercury BondCo.  In S&P's view, PIK features do not
require an instrument to be rated below the rating on the issuer.

Mercury BondCo is the issuing vehicle for a wider group, in which
Istituto Centrale delle Banche Popolari Italiane (ICBPI)
constitutes the main operating entity and the biggest part, in
S&P's view.  The group now includes ISP Processing.

"Our 'B' rating on Mercury BondCo is based on our view that it is
an issuing vehicle of a nonoperating holding company (NOHC).  We
usually derive the issuer credit rating for a NOHC by applying
standard notching down from the group's main operating entity.
This is to reflect the reliance of the NOHC on dividend
distributions from the operating company to meet its obligations,
as well as supervisory barriers to payments, potentially
different treatment in a default situation, and the structural
subordination of NOHC obligations to those at the operating
company level.  When the group credit profile (GCP) is lower than
'bbb-', we rate NOHCs at least two notches below operating
companies," S&P said.

S&P's rating on Mercury BondCo incorporates its subordination to
ICBPI, ICBPI's regulated nature, and Mercury BondCo's debt-
servicing ability.  Because ICBPI is a regulated entity, S&P
considers that the Bank of Italy could restrict payment
distribution between ICBPI and the sponsors' holding companies.
Given this subordination, S&P considers that Mercury BondCo
carries more credit risk than ICBPI.  S&P has not widened the gap
beyond the two notches because it considers that its assessment
of the GCP already captures the double leverage the transaction

MONTE DEI PASCHI: Italy Requests More Time for Rescue Plan
Rachel Sanderson, Alex Barker and Claire Jones at The Financial
Times report that Italy is demanding the European Central Bank
give it more time to rescue Monte dei Paschi di Siena and is
preparing to blame the bank for losses imposed on bondholders if
Rome is forced into an urgent state bailout.

According to the FT, four people close to the process said the
board of MPS, which has the Italian Treasury as its largest
shareholder, is asking the ECB's supervisory arm to give it until
mid-January to pull off a EUR5 billion equity injection and try
to avoid forcing losses on some debtholders as required under new
EU bailout rules.  These people said that in a letter to the ECB,
MPS says political instability unleashed by the resignation of
prime minister Matteo Renzi following his defeat in the Dec. 4
referendum has made it impossible to get the deal done until a
new government is formed, the FT notes.

If the ECB fails to approve the extension, MPS could be heading
for a recapitalization by the Italian state in the next few days,
the FT relays, citing a person close to the issue.  At stake is
the stability of the Italian banking system and the potential
wider repercussions on Europe's financial system, which continues
to struggle to recover from the eurozone debt crisis of 2010, the
FT states.

The people, as cited by the FT, said a so-called precautionary
recapitalization would involve imposing losses on subordinated
debtholders and the indemnification of retail bondholders.

                     About Monte dei Paschi

Banca Monte dei Paschi di Siena SpA -- 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.

UNICREDIT SPA: To Offload Bank Pekao Stake to Boost Capital
Ben Martin at The Telegraph reports that UniCredit is offloading
a stake in Poland's second largest bank for GBP2.1 billion as the
troubled lender scrambles to boost its capital position amid
mounting fears about the stability of Italy's financial system.

Italy's biggest lender is selling a 33% shareholding in Bank
Pekao to Polish insurer PZU and Polski Fundusz Rozwoju, a state
development fund, for PLN10.6 billion, The Telegraph discloses.
According to The Telegraph, the deal will lift UniCredit's common
equity tier one ratio -- a key measure of the bank's capital
buffer -- by 55 basis points and forms part of a broader plan by
boss Jean Pierre Mustier to reinforce its balance sheet.

As well as selling shares in Pekao, UniCredit will on Dec. 12
unveil a raft of measures to strengthen its capital position,
which are thought to include tapping investors for a share sale
to raise as much as EUR13 billion (GBP11.07 billion), The
Telegraph states.

There is growing concern that Italy's fragile banking system will
be crippled by EUR360 billion of non-performing loans, worries
that have been exacerbated by the country's constitutional
referendum at the weekend that sparked the resignation of Matteo
Renzi, the prime minister, The Telegraph notes.

Headquartered in Milan, Italy, UniCredit S.p.A. operates as a
commercial bank in Europe.  The company primarily operates
through Commercial Banking Italy, Commercial Banking Germany,
Commercial Banking Austria, Poland, Central and Eastern Europe,
Corporate & Investment Banking, Asset Management, Asset
Gathering, and Non-core segments.


JUBILEE CDO I-R: S&P Affirms B+ Rating on Class E Notes
S&P Global Ratings raised its credit ratings on Jubilee CDO I-R
B.V.'s class A and B notes.  At the same time, S&P has affirmed
its ratings on the class C, D, and E notes.

The rating actions follow S&P's review of the transaction's
latest performance.  S&P performed a credit and cash flow
analysis and assessed the support that each participant provides
to the transaction by applying S&P's criteria for rating
corporate collateralized debt obligation (CDO) transactions and
S&P's current counterparty criteria.  In S&P's analysis, it used
data from the latest available trustee report.

"We subjected the capital structure to a cash flow analysis to
determine the break-even default rate for each rated class of
notes at each rating level.  In our analysis, we used the
reported portfolio balance that we considered to be performing
(EUR395.6 million, down from EUR638.2 million at our previous
review), the weighted-average spread, and the weighted-average
recovery rates for the performing portfolio.  We applied various
cash flow stress scenarios, using our standard default patterns
in conjunction with different interest stress scenarios for each
liability rating category," S&P said.

Non-euro-denominated assets comprise 13.53% of the aggregate
collateral balance, down from 15.60% at our previous review, and
are hedged by cross-currency swap agreements.  In S&P's opinion,
the documentation for the cross-currency swap agreement does not
fully reflect S&P's current counterparty criteria.  In S&P's cash
flow analysis, for ratings above the issuer credit rating plus
one notch on the swap counterparty, S&P considered scenarios
where the counterparty does not perform, and where the
transaction is therefore exposed to changes in currency rates.

S&P's corporate CDO criteria incorporate supplemental tests
intended to address both event risk and model risk that may be
present in rated transactions, consisting of both a "largest
obligor default test" and "largest industry test."  Both tests
allow the loss amounts calculated for the largest obligor default
test to be run through our cash flow model to take into account
excess spread and to ensure that the tranche subject to the test
receives timely interest and ultimate principal in S&P's
analysis. S&P's supplemental tests do not constrain the ratings
on any tranche.

Repayments in the transaction have, in S&P's view, increased the
available credit enhancement for all of the rated classes of
notes apart from the class E notes, whose available credit
enhancement has fallen due to defaults in the transaction.

S&P's credit and cash flow analysis indicates that the available
credit enhancement for the class A and B notes is commensurate
with higher ratings than those currently assigned.  Therefore,
S&P has raised its ratings on the class A and B notes.

S&P's credit and cash flow analysis also indicates that the
available credit enhancement for the class C, D, and E notes is
commensurate with the currently assigned ratings.  Therefore, S&P
has affirmed its ratings on these classes of notes.

Jubilee CDO I-R is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans granted to primarily
European speculative-grade corporate firms. Alcentra Ltd. manages
the transaction.  The transaction closed in May 2007 and entered
its amortization period in July 2014.


Class                Rating
             To                From

Jubilee CDO I-R B.V.
EUR900 Million Senior Secured Fixed- And/Or Floating-Rate And
Subordinated Notes

Ratings Raised

A            AAA (sf)          AA+ (sf)
B            AA+ (sf)          AA (sf)

Ratings Affirmed

C            A+ (sf)
D            BBB- (sf)
E            B+ (sf)

* NETHERLANDS: Number of Bankruptcies Rises to 461 in November
Statistics Netherlands reports that the number of bankruptcies
rose substantially in November, by 106 relative to October.  This
rise is largely due to the bankruptcy of one particular company
existing of dozens of entities, all of which were declared
bankrupt separately, Statistics Netherlands says.

In October, the number of bankruptcies remained more or less at
the same level, Statistics Netherlands states.  Statistics
Netherlands reports that most bankruptcies in November were filed
in the financial services sector.

If the number of court session days is not taken into account,
461 businesses and institutions (excluding one-man businesses)
were declared bankrupt in November 2016, Statistics Netherlands

With a total of 117, the financial services sector was hit the
hardest, Statistics Netherlands discloses.  In the trade sector,
76 bankruptcies were filed, Statistics Netherlands notes.

Trade and financial services are among the sectors with the
highest number of businesses, Statistics Netherlands relays.  In
November, the number of bankruptcies was relatively high in the
sector transport and storage, according to Statistics


BAIKALBANK PJSC: Liabilities Exceed Assets, Inspection Shows
The management of BaikalBank PJSC failed to provide original
credit contracts worth approximately RUR1.4 billion to the
provisional administration appointed by virtue of Bank of Russia
Order No. OD-2676, dated August 18, 2016, following the
revocation of the banking license, according to the press service
of the Central Bank of Russia.

During the inspection of the bank's financial standing, the
provisional administration has also revealed the operations
conducted by its management, owners and officials, which bear
evidence of moving out liquid assets in the amount of over RUR4.2

According to the provisional administration estimates, the value
of BaikalBank PJSC assets does not exceed RUR2 billion, while its
liabilities to creditors amount to RUR8.2 billion, of which
RUR7.1 billion are liabilities to individuals.

On October 24, 2016, the Court of Arbitration of the Republic of
Buryatia made a ruling to recognize BaikalBank PJSC as bankrupt
with the state corporation Deposit Insurance Agency appointed as
a receiver.

The Bank of Russia submitted the information on financial
operations bearing evidence of criminal offences of the bank's
former management and owners 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.

RUSCOBANK JSC: Liabilities Exceed Assets, Investigation Shows
During the inspection of the financial standing of JSC Ruscobank,
its provisional administration appointed by virtue of Bank of
Russia Order No. OD-1913, dated June 21, 2016, following the
revocation of the banking license, has revealed that the main
part of the bank's loan portfolio worth over 3 billion rubles is
represented by claims to insolvent companies and shell companies,
according to the press service of the Central Bank of Russia.

The provisional administration has also revealed that prior to
the revocation of the license, the bank conducted operations
related to the sale of assets worth about RUR1.8 billion,
allowing payment delays to counterparties with dubious solvency.

According to the initial estimates by provisional administration,
the value of JSC Ruscobank assets does not exceed RUR3 billion,
while its liabilities to creditors amount to RUR7.4 billion, of
which RUR6.1 billion are liabilities to individuals.

On August 1, 2016, the Bank of Russia submitted a petition to the
Court of Arbitration of the city of Saint Petersburg and the
Leningrad Region to recognize JSC Ruscobank as insolvent
(bankrupt) and initiate bankruptcy proceedings.  The hearing of
the case was scheduled for 9 December 9, 2016.

The Bank of Russia submitted the information on financial
operations bearing evidence of criminal offences of JSC Ruscobank
former management and owners 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.

RUSSIAN TRUST: Liabilities Exceed Assets, Assessment Shows
During the inspection of the financial standing of JSCB Russian
Trust Bank (JSC), its provisional administration appointed by
virtue of Bank of Russia Order No. OD-2637, dated August 16,
2016, following the revocation of the banking license, has
revealed operations, conducted by the bank's former management
and owners and bearing evidence of moving out assets worth over
RUR3 billion through providing loans to shell companies,
according to the press service of the Central Bank of Russia.

Moreover, the inspection revealed the operations related to
moving out liquid assets through reassignment of claims on
existing loans of legal entities and individuals.

According to the provisional administration estimates, the value
of JSCB Russian Trust Bank (JSC) assets does not exceed RUR1,004
million, while its liabilities to creditors amount to RUR4,456
million, of which RUR3,729 million are liabilities to

On November 2, 2016, the Court of Arbitration of the city of
Moscow made a ruling to recognize JSCB Russian Trust Bank (JSC)
as insolvent (bankrupt) and initiate bankruptcy proceedings with
the state corporation Deposit Insurance Agency appointed as a

The Bank of Russia submitted the information on financial
operations bearing evidence of criminal offences of JSCB Russian
Trust Bank (JSC) former management and owners 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-

VODOKANAL ST. PETERSBURG: S&P Affirms 'BB/B' CCRs, Outlook Stable
S&P Global Ratings said that it had affirmed its long- and short-
term corporate credit ratings on Russian regional water utility
Vodokanal St. Petersburg (VKSPB) at 'BB/B'.  The outlook is

S&P also affirmed the 'BB' issue ratings on the company's senior
unsecured debt and the 'ruAA' Russia national scale rating on

The affirmation reflects S&P's view of VKSPB's improved stand-
alone credit profile (SACP), as well as S&P's unchanged
expectation of a very high likelihood that the utility would
receive timely and sufficient extraordinary support from the city
of St. Petersburg, if needed.  Given the current level of the
SACP, S&P no longer includes uplift from the 'bb' SACP in the
rating on VKSPB.

S&P continues to believe that there is a very high likelihood of
extraordinary government support based on S&P's assessment of
VKSPB's very important role for and very strong link with the
city's government.

S&P has reassessed its view of the company's financial risk
profile to modest from intermediate.  This reflects S&P's view of
less volatile revenues and operating cash flows.  Although the
general regulatory framework remains weak, nontransparent, and
politicized, the regulator has approved tariffs for the entire
five-year period starting 2016, whereas previously, the tariff
horizon was limited to one year.  The company has a track record
of comfortable financial metrics.  S&P therefore anticipates the
volatility of future operating cash flows will reduce and believe
that the 10% annual tariff increases partly mitigate the risk of
still significant investment program the city has mandated.  This
should allow VKSPB to maintain comfortable financial metrics of
debt to EBITDA below 1.5x and funds from operations to debt above
60% at least in the next two years.

S&P expects that high investments will lead to moderately
negative discretionary cash flow in 2016, which is likely to be
covered by new bank debt, in S&P's view.  Still, despite water
consumption gradually decreasing, by 1%-2% annually, S&P
forecasts VKSPB to maintain an EBITDA margin about 40% in
2016-2018, thanks to the favorable tariff increases.  At 10%
annually, they are higher than average uplifts for utilities,
which are usually capped at the level of the consumer price
index.  S&P also thinks the company's currently relatively low
leverage is not fully representative of its financial policy
framework, which allows taking a more leveraged position than S&P
currently forecasts; for example, St. Petersburg could require
the company to undertake unanticipated high investments, without
supporting those investments with timely funding.

VKSPB's business risk profile remains constrained by a relatively
aged asset base and resulting sizable medium-term investment
needs, a politicized and nontransparent regulation regime
(although in December 2015 the regulator approved tariffs for a
five-year period, they could nevertheless be revised at any time
during this period), operating risk stemming from deteriorating
water quality, and exposure to Russian country risk, which S&P
assess as high.  These weaknesses are partly offset by utility's
monopoly position in its service area, fairly stable earnings and
cash flows derived primarily from regulated activities, a diverse
customer base, and improving operating efficiency.

The stable outlook on VKSPB reflects S&P's view of stable trends
in St. Petersburg's creditworthiness and S&P's expectations of
the company's stable operating and financing performance.  S&P
also factors in its belief that financial risks associated with
VKSPB's ambitious investment program will continue to be
mitigated by its monopoly position as the water service provider
in St. Petersburg, as well as strong ongoing support from the
city government, including cofinancing of capital expenditures.

S&P could take a positive rating action on VKSPB if S&P sees
improvements in St. Petersburg's credit quality, all else being
equal.  Rating upside could also result from an improved SACP on
the back of, for example, substantial improvements in the
regulatory framework, which S&P views as unlikely in the medium

Downward rating pressure might stem from deteriorating credit
quality of St. Petersburg.

On the stand-alone level, rating downside could stem from
deteriorating liquidity or maturity profiles that are not offset
by city government support.  To trigger a downgrade, S&P would
have to revise its view of VKSPB's SACP down by two notches,
which could happen because of aggressive debt accumulation and
weak financial and operational results, although S&P sees this as
unlikely in the next two years because of the significant cushion
of safety in VKSPB's current credit measures.


TURKIYE SISE: S&P Affirms 'BB/B' CCRs, Outlook Stable
S&P Global Ratings said that it revised the outlook on
Turkey-based glass producer Turkiye Sise ve Cam Fabrikalari A.S.
(Sisecam) to stable from negative.  At the same time, S&P
affirmed the long- and short-term corporate credit ratings at
'BB/B'.  The outlook is stable.

At the same time, S&P affirmed the issue ratings on Sisecam's
$500 million unsecured notes at 'BB'.  The recovery rating
remains unchanged at '3' indicating recovery expectations of 50%-
70% (at the higher end of the range).

S&P's outlook revision on Sisecam reflects the action on the
parent, Turkiye Is Bankasi (Isbank) on Nov. 8, 2016, which in
turn reflects the stable outlook on Turkey.  S&P believes that
Turkish banks' financial profiles and performance will remain
highly correlated with sovereign creditworthiness at the current
rating level, owing to the banks' significant holdings of
government securities and exposure to the domestic environment.

Although S&P views the stand-alone credit profile of Sisecam as
higher than the rating on its parent Isbank, S&P's ratings on
Sisecam cannot exceed those on Isbank because the group is 67%-
owned by Isbank and, in S&P's opinion, would not be insulated if
the parent were distressed.

Although S&P continues to view Sisecam's business risk profile as
fair, S&P is also mindful that rising country risk in Turkey
could lead to lower domestic demand, volatility in export
volumes, rising input prices, and pressure on profitability.  The
heightened political and economic risks in Turkey may exacerbate
this trend over our 12-month rating horizon.

S&P's base case assumes:

   -- Revenues increasing to more than Turkish lira (TRY) 8.2
      billion by the end of the year ending Dec. 31, 2016, and
      more than TRY9 billion by the end of 2017.
   -- Adjusted EBITDA margin of 21%-23%.
   -- Adjusted funds from operations (FFO) of about TRY1.4
      billion-TRY1.6 billion, continuing a trend of robust cash
      flow generation.
   -- Capital expenditure (capex) of up to TRY1.4 billion.
   -- No major acquisitions or divestitures.

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

   -- FFO to debt of more than 65%; and
   -- Debt to EBITDA of 1.0x-1.5x.

The stable outlook on Sisecam reflects that on the parent Isbank,
which in turn reflects the stable outlook on Turkey.  S&P'
believes that Turkish banks' financial profiles and performance
will remain highly correlated with sovereign creditworthiness at
the current rating level, owing to the banks' significant
holdings of government securities and exposure to the domestic
environment. On a stand-alone basis, S&P anticipates that Sisecam
will maintain its leading market position in Turkey and that its
ambitious global expansion plans will continue to support its
credit metrics -- specifically, S&P Global Ratings-adjusted FFO
to debt above 45% and adjusted debt to EBITDA of less than 1.5x.

S&P would lower the rating if it downgraded Isbank.  S&P could
also lower the ratings on Sisecam if its FFO to debt sustainably
fell to less than 45%.  This could occur as a result of inflated
raw material or energy costs, a significant weakening in demand,
or the unsuccessful execution of the group's sizable capacity
expansion plans that result in ratios weakening to a level that
S&P views as commensurate with an intermediate financial risk

S&P believes that the potential for a positive rating action is
limited at this stage because the ratings on Sisecam are capped
in line with those on Isbank.

U N I T E D   K I N G D O M

IENERGIZER LIMITED: Moody's Affirms Caa1 Corporate Family Rating
Moody's Investors Service has affirmed iEnergizer Limited's Caa1
corporate family and senior secured bank credit facility ratings.

At the same time, Moody's has changed the outlook on both ratings
to stable from negative.


"The stable outlook reflects our expectation that iEnergizer will
sustain its improved earnings performance, which will result in a
wider headroom under its covenants," says Kaustubh Chaubal, a
Moody's Vice President and Senior Analyst.

For the 12 months ended 30 September 2016, iEnergizer reported
EBITDA of USD34.3 million compared to USD25.5 million for the
financial year ended 31 March 2015 (FY2015). The improved
performance was driven by higher revenue from its real-time
processing and back office services businesses, as well as the
company's continuing cost savings initiatives.

These improvements helped boost the company's EBITA margins to
22% from 16%, despite the otherwise modest revenue growth.

As a result, the company's leverage improved to 2.58x in
September 2016 versus the covenanted limit of 2.85x.

As to the company's EBITDA/interest covenant of 3.5x, the actual
ratio was a solid 4.6x, indicating a wide headroom.

"Stability in revenues, improving earnings and reduced debt
levels will drive a further improvement in iEnergizer's credit
metrics, such that the covenant headroom will further widen,"
adds Chaubal, who is also the lead analyst for iEnergizer.

Moody's points out that the company continues to generate
consistent positive free cash flows, as it does not make dividend
payments and has limited capital expenditure requirements due to
the asset-light nature of its operations. The available cash
flows are applied towards scheduled debt repayments of around
USD3.4 million per quarter that iEnergizer has to make under the
terms of its loan agreement.

The change in outlook to stable also reflects the stability in
the company's senior management following several departures in
FY2015 and FY2016.

In February 2016, the company's board re-designated its founder
and former CEO, Mr. Anil Aggarwal, as CEO and executive director,
filling the position that had been vacant for 14 months. It also
appointed Mr. Richard Day as CFO, a position that had been vacant
for 7 months.

The CEO and CFO office positions continue to be held by Mr.
Aggarwal and Mr. Day respectively. In Moody's view, continued
stability in senior management will support the company's revenue
and earnings growth and drive its improving trajectory.

That said, Moody's believes the company remains exposed to key
man risk due to the continued dependence on Mr. Aggarwal to
generate new business.

The stable outlook reflects Moody's expectation that iEnergizer
will maintain its improved operating performance. Moody's also
expects positive free cash flow generation and reduced debt
levels to drive further improvements in leverage and covenant

iEnergizer's credit metrics are strong for its current rating.
Continued stability in its senior management team while the
company further grows its earnings and the maintenance of a solid
liquidity position will remain key for Moody's to consider a
rating in the single-B category.

Specifically, Moody's could upgrade the CFR if the company
further improves its operating performance by securing new
contracts, such that EBITDA remains above USD35 million on a
sustained basis, and if it continues to generate positive free
cash flow in excess of its scheduled debt maturities of around
USD13.5 million a year.

The ratings could be downgraded if the company (1) loses any
existing contract and/or is unable to replace such contracts; (2)
experiences a weakening operating performance such that its
EBITDA falls below USD28-30 million; or (3) sees a decline in
cash and cash equivalents from current levels.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

iEnergizer Limited is an international business process
outsourcing (BPO) company, incorporated in Guernsey, and was
listed on the Alternative Investment Market (AIM) of the London
Stock Exchange on September 14, 2010.

iEnergizer is primarily engaged in call center operations, BPO
services, content delivery services and back office services
(legacy operations). Following the acquisition of Aptara Inc. in
2012, for USD150 million, iEnergizer expanded its business
services to the provision of content process outsourcing
solutions, delivering a comprehensive offering for the
transformation and management of content such as text, audio,
video and graphic files.

As of March 31, 2016, the company had more than 13,000 employees
-- including subcontracted staff -- working from 11 delivery
centers located in India, the US, UK, Mauritius, Australia and
France. iEnergizer reported revenues totaling USD143 million in
the 12 months ended September 30, 2016 and EBITDA of USD34

* UK: Brexit Puts 5,000 Restaurants at Risk of Insolvency
AccountancyAge reports that cost increases following the Brexit
vote have put more than 5,000 restaurant companies are at risk of

A total of 5,570 restaurant companies have at least a 30% chance
of going insolvent within the next three years, said Moore
Stephens, the top ten accountancy firm, AccountancyAge relates.
Higher costs and stagnating incomes have put a strain on
businesses, and the sharp fall in sterling since the Brexit vote
has added to the pressure, according to the report.

"It's been a tough year for many restaurants in the face of
rising costs and fierce competition. It is unrealistic to expect
UK restaurant groups to avoid the impact of the fall in the pound
by substituting for UK produce," AccountancyAge quotes Mike
Finch, restructuring partner at Moore Stephens, as saying.

The firm's Moore Data service analysed licensed restaurants
registered as limited companies to the year ending Nov. 24, 2016,
the report notes.

AccountancyAge says the UK imports 48% of its food and the fall
in sterling has put pressure on the sector by increasing the cost
of imports for restaurants.

As well as higher raw material costs, restaurant companies have
also seen the cost of labour increase, AccountancyAge relates.
According to the report, the government raised the National
Minimum Wage to GBP7.20 from GBP6.70 earlier this year which has
put added strain on restaurants already struggling to remain
profitable. The government has announced that it intends to raise
the National Minimum Wage to GBP7.50 in April next year.

"Restaurants have to make tough decisions as to how much they try
to pass on to consumers. All this comes at a time when many
consumers are likely to be very price conscious. The high number
of potential insolvencies over the next year shows just how
fragile finances can be in this sector. There may be further
challenges to come as the UK's trading agreements with Europe
remain uncertain," Mr. Finch, as cited by AccountancyAge, added.


* BOOK REVIEW: Risk, Uncertainty and Profit
Author: Frank H. Knight
Publisher: Beard Books
Softcover: 381 pages
List Price: $34.95
Review by Gail Owens Hoelscher
Order your personal copy today at

The tenets Frank H. Knight sets out in this, his first book,
have become an integral part of modern economic theory. Still
readable today, it was included as a classic in the 1998 Forbes
reading list. The book grew out of Knight's 1917 Cornell
University doctoral thesis, which took second prize in an essay
contest that year sponsored by Hart, Schaffner and Marx. In it,
he examined the relationship between knowledge on the part of
entrepreneurs and changes in the economy. He, quite famously,
distinguished between two types of change, risk and uncertainty,
defining risk as randomness with knowable probabilities and
uncertainty as randomness with unknowable probabilities. Risk,
he said, arises from repeated changes for which probabilities
can be calculated and insured against, such as the risk of fire.
Uncertainty arises from unpredictable changes in an economy,
such as resources, preferences, and knowledge, changes that
cannot be insured against. Uncertainty, he said "is one of the
fundamental facts of life."

One of the larger issues of Knight's time was how the
entrepreneur, the central figure in a free enterprise system,
earns profits in the face of competition. It was thought that
competition would reduce profits to zero across a sector because
any profits would attract more entrepreneurs into the sector and
increase supply, which would drive prices down, resulting in
competitive equilibrium and zero profit.

Knight argued that uncertainty itself may allow some
entrepreneurs to earn profits despite this equilibrium.
Entrepreneurs, he said, are forced to guess at their expected
total receipts. They cannot foresee the number of products they
will sell because of the unpredictability of consumer
preferences. Still, they must purchase product inputs, so they
base these purchases on the number of products they guess they
will sell. Finally, they have to guess the price at which their
products will sell. These factors are all uncertain and
impossible to know. Profits are earned when uncertainty yields
higher total receipts than forecasted total receipts. Thus,
Knight postulated, profits are merely due to luck. Such
entrepreneurs who "get lucky" will try to reproduce their
success, but will be unable to because their luck will eventually

At the time, some theorists were saying that when this luck runs
out, entrepreneurs will then rely on and substitute improved
decision making and management for their original
entrepreneurship, and the profits will return. Knight saw
entrepreneurs as poor managers, however, who will in time fail
against new and lucky entrepreneurs. He concluded that economic
change is a result of this constant interplay between new
entrepreneurial action and existing businesses hedging against
uncertainty by improving their internal organization.
Frank H. Knight has been called "among the most broad-ranging
and influential economists of the twentieth century" and "one of
the most eclectic economists and perhaps the deepest thinker and
scholar American economics has produced." He stands among the
giants of American economists that include Schumpeter and Viner.
His students included Nobel Laureates Milton Friedman, George
Stigler and James Buchanan, as well as Paul Samuelson. At the
University of Chicago, Knight specialized in the history of
economic thought. He revolutionized the economics department
there, becoming one the leaders of what has become known as the
Chicago School of Economics. Under his tutelage and guidance,
the University of Chicago became the bulwark against the more
interventionist and anti-market approaches followed elsewhere in
American economic thought. He died in 1972.


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

                 * * * End of Transmission * * *