/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/170111.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 Wednesday, January 11, 2017, Vol. 18, No. 008 Headlines B E L G I U M SOBELMAR ANTWERP: Three "Ghost Ships" Remain Unsold F R A N C E VIVARTE: French Nationalist Politicians Criticize Restructuring I T A L Y MONTE DEI PASCHI: Clears "Serious Disturbance" Legal Hurdle L U X E M B O U R G SAPINDA INVEST: Owner Has One Year to Turn Companies Around N E T H E R L A N D S PETROBAS GLOBAL: Moody's Assigns B2 Rating to New Global Notes SEA TRUCKS: Defaults on Interest Payment, Seeks Standstill Deal STORM 2017-I: Moody's Assigns (P)Ba1 Rating to Class E Notes U N I T E D K I N G D O M KING & WOOD: Files Second Notice to Appoint Administrators LIBERTY GLOBAL: Moody's Says European Business to Improve in 2017 TEAM ROCK: Administrators Sell Assets to Future for GBP800,000 ********* ============= B E L G I U M ============= SOBELMAR ANTWERP: Three "Ghost Ships" Remain Unsold --------------------------------------------------- Barbara Hodgson at Journal reports that the infamous Tynemouth "ghost ships" which were a blight on the North East coastline for months could return in the future. The three vessels -- Brasschaat, Vyritsa and Zarechensk -- which were anchored in the North Sea for months after their owner went bankrupt, remain unsold and their situation is unresolved, Journal notes. The company which has been managing them since June says it is possible they could make a reappearance in Tynemouth in the future, Journal discloses. According to Journal, a spokesman for crewing agency Bernhard Schulte Management (BSM) said: "It is unlikely that they will return to Tynemouth but, as ships trade globally, it is always possible that they could return some day." He added: "The ships have not been sold at this point." As BSM is only the manager of the vessels, the company did not know what, if any, sales plans the owners might have, Journal states. The ships' owner Sobelmar Antwerp N.V. filed for bankruptcy in March last year when talks, amid restructuring plans, with German- based lender HSH Nordbank ran into difficulties, Journal recounts. It is reported to have then started what are called "chapter 11" proceedings to give its business some protection, Journal relays. About Sobelmar Antwerp Sobelmar Antwerp N.V., a Belgium corporation provides worldwide seaborne transportation services, operating a fleet of four handysize bulk carriers. The vessels Brasschaat, Vyritsa, Kovdor, and Zarachensk, are owned that are all Marshall Islands corporations. Sobelmar Antwerp N.V. and its affiliates sought Chapter 11 bankruptcy protection (Bankr. D. Conn. Lead Case No. 15-20423) in Hartford, Connecticut, in the United States on March 17, 2015. The Debtors have approximately $66.2 million in assets and $63 million in liabilities as of Dec. 31, 2014. The Debtors tapped Bracewell & Giuliani LLP, in Hartford, Connecticut, as counsel. =========== F R A N C E =========== VIVARTE: French Nationalist Politicians Criticize Restructuring --------------------------------------------------------------- Michael Stothard at The Financial Times reports that the restructuring of private equity-backed French clothing retailer Vivarte has been labelled a "brutal" example of "Anglo-Saxon ultra-liberalism" by nationalist politicians looking to score points ahead of the presidential election in May. The comments by the French far-right National Front party led by Marine Le Pen highlight how corporate activity in France threatens to be affected by national politics this year, the FT notes. Union leaders have also last week met with senior government officials to discuss job losses at Vivarte, the highly-indebted company owned by a number of private equity groups including Alcentra, Babson, Oaktree and GLG Partners, the FT relates. The group, owner of brands such as Kookai, Naf Naf and Chevignon, has been the focus of restructuring efforts since July last year, the FT relays. The emergence of such views in mainstream political debate may pose a particular challenge to international groups -- particular in private equity -- attempting to buy or restructure French groups this year, according to the FT. With just five months until the election, plans by Vivarte's management to sell about 100 shoe stores in a bid to lower the debt level are coming under pressure from politicians as well as union leaders, the FT states. On Jan. 5, union representatives met with French economy minister Christophe Sirugue to convince him to make the company protect jobs, the FT discloses. The government promised to "send a message" to the Vivarte management, the FT recounts. According to the FT, Laurent Berger, general secretary of the CFDT union, on Jan. 6 said that the "industrial project" for Vivarte was sound, telling LCI radio that the problem was "impossible financing" laid on by the private equity groups. The unions, which include the CGT, FO, CFTC and CFE-CGC, on Jan. 6 also threatened strike action in the coming weeks and have said that they will present an "alternative [restructuring] project" to the management, the FT relates. Vivarte's debt has doubled over the past two years from EUR800 million in the summer of 2014 to about EUR1.5 billion, the FT says. At the same time, revenue has fallen from EUR2.4 billion in 2015 to EUR2.2 billion in 2016, the FT notes. Vivarte SAS is a French fashion retailer. It owns brands including Kookai and Naf Naf. ========= I T A L Y ========= MONTE DEI PASCHI: Clears "Serious Disturbance" Legal Hurdle ----------------------------------------------------------- Boris Groendahl and Alexander Weber at Bloomberg News report that Italy's bailout of Banca Monte dei Paschi di Siena SpA cleared a first legal hurdle even before the plan was drawn up. European Union law assumes that if a bank needs "extraordinary public financial support," it's failing and should be wound down, Bloomberg notes. An exception is allowed when the aid is required to "remedy a serious disturbance" in a country's economy, but Italy won't have to make that case, Bloomberg states. That's because the European Commission, which rules on state-aid applications, found in mid-2013 that a "crisis situation persists" in the EU, justifying state aid for banks, according to Bloomberg. The commission hasn't revised that assessment in the three and a half years since, meaning Italy has one less thing to worry about as it prepares an EUR8.8 billion (US$9.3 billion) rescue of the world's oldest lender, according to Bloomberg. The government in Rome is planning a so-called precautionary recapitalization of Monte Paschi, the procedure for funneling state aid to a solvent bank without triggering resolution, Bloomberg relates. This will involve imposing losses on junior creditors, in line with the EU's push since the crisis to make investors, not taxpayers, bear the cost when lenders struggle or fail, Bloomberg discloses. Critics of the plan say it risks short-circuiting a system EU lawmakers spent years building to break the link between governments and banks, Bloomberg relays. Even with the "serious disturbance" check off the table, Italy still has to convince Vestager that the bailout meets a number of other conditions in talks expected to take two to three months, Bloomberg notes. The commission, as cited by Bloomberg, said last week that it would work with the Italian authorities to "assess the compatibility of the planned intervention by the Italian authorities with EU rules." 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. =================== L U X E M B O U R G =================== SAPINDA INVEST: Owner Has One Year to Turn Companies Around ----------------------------------------------------------- Luca Casiraghi at Bloomberg News reports that investors have given Lars Windhorst a year's respite to turn his companies around. The German businessman, once a wunderkind, said he sold EUR200 million (US$210 million) of bonds to existing and new investors, Bloomberg relates. The 10% notes maturing on Dec. 21 were issued at a discount of 5 cents to face value to yield more than 15%, according to data compiled by Bloomberg. The new money became more urgent after an Abu Dhabi-based fund, backed by the son of the president of the U.A.E., walked away from more than six-months of talks to provide a EUR1 billion bond guarantee and an equity injection into Windhorst's main investment vehicle, Sapinda Invest, Bloomberg states. The company paid interest late on debt due in June and another of his holdings, Sequa Petroleum NV, delayed interest payments due in October because it hadn't received enough funds from companies related to Sapinda, Bloomberg relates. "A large number of leading institutional investors are backing our strategy," Bloomberg quotes Mr. Windhorst as saying in an e-mailed statement. "With the proceeds of the financing, the Sapinda Group portfolio companies will be able to get the necessary financial support to successfully implement their growth plans." Mr. Windhorst sold the notes through a special-purpose vehicle called Horizon One Finance, Bloomberg data show. As of Dec. 23, Sequa still hadn't paid interest due Oct. 31, Bloomberg relays, citing a company statement. Sapinda Invest is based in Luxembourg. ===================== N E T H E R L A N D S ===================== PETROBAS GLOBAL: Moody's Assigns B2 Rating to New Global Notes -------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to Petrobras Global Finance B.V.'s proposed global notes, which will be unconditionally guaranteed by Petroleo Brasileiro S.A. ("Petrobras", B2 stable). The B2 rating on the proposed notes is based on the rating of Petrobras. The proposed notes are senior unsecured and pari passu with Petrobras Global Finance B.V. and Petrobras' other senior foreign currency debt. Proceeds from the proposed notes issuance will be used for debt refinancing and other general corporate purposes. The outlook on the ratings is stable. RATINGS RATIONALE Petrobras' b3 BCA, which indicates Moody's view of the company's standalone credit strength, considers its high financial leverage, low to negative free cash flow, weak liquidity, local currency volatility risk and operating challenges in a difficult industry and economic environment. Consolidated free cash flow will remain under pressure in the foreseeable future as its upstream business suffers from low oil prices and downstream operations are hurt by low demand, high competition and local currency volatility, at the same time that the company's new pricing policy for fuel is tested. Petrobras' b3 BCA and B2 rating are supported by the company's solid reserve base and dominance in the Brazilian oil industry, and its importance to the Brazilian economy. Furthermore, the ratings reflect the company's sizeable reserves at 10,515.9 Mboe, its renown technological offshore expertise and potential for continued growth in production over the long-term. Petrobras' B2 ratings also consider Moody's joint-default analysis for the company as a government-related issuer. Petrobras' ratings reflect Moody's assumption for a moderate likelihood of timely extraordinary support from the government of Brazil. Despite its stated willingness to stand behind Petrobras, Moody's believes that the government's current fiscal situation tempers its capacity to support Petrobras sufficiently to avoid a default. Moody's continues to assume moderate default dependence between Petrobras and the government. Petrobras' rating incorporates one notch of uplift between Petrobras' BCA and its senior unsecured rating. Petrobras' liquidity risk has declined over 2016 on the back of $13.6 billion in asset sales and around $10 billion in exchanged notes during the third quarter last year, which helped to extend the company's debt maturity profile. However, liquidity risk remains significant. As of September 30, 2016, Petrobras' maturing debt in fiscal years 2017 and 2018 was $7.9 billion and $13.5 billion, respectively, for a total of $21.4 billion in the next 2 years. In addition, the class action lawsuit, the US Securities Exchange Commission (SEC)'s civil investigation and the US Department of Justice (DoJ)'s criminal investigation related to bribery and corruption will negatively affect the company's cash position in an amount yet unclear. Other threats to Petrobras' liquidity, as well as to its operating and financial performance, include tax contingent liabilities, execution risk related to the 2017-21 business plan and potential delays in fully executing its asset sales plan. Petrobras' ratings have a stable outlook, reflecting Moody's expectation that, in the next 12 to 18 months, the company's liquidity and overall credit profile will gradually improve, supported by managerial focus on improvements in operations and capital allocation; further debt refinancing; and additional asset sales, despite the uncertainty around the payment of fines related to the class action lawsuit as well as the SEC and DoJ investigations. Positive rating actions could be considered if the company raises sufficient sums through asset sales or new debt arrangements to refinance its upcoming debt maturities and significantly strengthen its liquidity profile while also improving operating and financial performance. Although current low levels of capex in connection with asset sales would reduce future revenues and cash flow, actions that further strengthen the company's liquidity but also help improve operating margins and prospects of leverage reduction are currently likely to have a greater credit impact than possible reductions in production, revenues and reserve base. Negative actions on Petrobras' ratings could result from deterioration in its liquidity or financial profile. Downgrades could also be prompted if negative developments from the corruption investigations or litigation against the company appear to have the potential to significantly worsen the company's liquidity or financial profile. The principal methodology used in this rating was Global Integrated Oil & Gas Industry published in October 2016. Other methodologies used include the Government-Related Issuers methodology published in October 2014. Petrobras is an integrated energy company, with total assets of $247 billion as of September 30, 2016. Petrobras dominates Brazil's oil and natural gas production, as well as downstream refining and marketing. The company also holds a significant stake in petrochemicals and a position in sugar-based ethanol production and distribution. The Brazilian government directly and indirectly owns about 46% of Petrobras' outstanding capital stock and 60.5% of its voting shares. SEA TRUCKS: Defaults on Interest Payment, Seeks Standstill Deal --------------------------------------------------------------- David Foxwell at Offshore Support Journal reports that Sea Trucks Group Limited has missed an interest payment and is asking bondholders to agree to a standstill. According to OSJ, Sea Trucks, which is currently engaged in "ongoing and constructive discussions" with an ad hoc committee of bondholders representing a majority of the outstanding bonds under the US$575 million Senior Secured Bond Issue 2013/2018 with ISIN NO 001 0673734, says that, in light of industry conditions, and following consultation with the bondholder committee, the company determined it would not make an interest payment which was due on December 27, 2016. As part of their discussions, the company and the bondholder committee reached an agreement in principle on the terms of a standstill on action by bondholders against the company, OSJ relates. The standstill would apply to any default arising under the terms of the bond agreement, including any non-payment of interest or scheduled amortization payments, OSJ states. The standstill will become effective if it is approved by holders of a majority of the bonds voting at that meeting, OSJ notes. The company, as cited by OSJ, said it understands the members of the bondholder committee intend to vote in favor of the standstill proposal. Sea Trucks Group Limited provides offshore installation, accommodation, and support services to the oil and gas industry worldwide. It provides offshore accommodation, rigid pipelay installation, offshore construction, surf installation, and marine support services; and marine services to oil and construction companies in shallow and deep-water projects to accommodation hook-up and fabrication activities. The company was founded in 1977 and is based in Lagos, Nigeria. It has offices in Nigeria, Angola, Ghana, Congo, the United Arab Emirates, the Netherlands, the United States, Australia, Singapore, and China. STORM 2017-I: Moody's Assigns (P)Ba1 Rating to Class E Notes ------------------------------------------------------------ Moody's Investors Service has assigned provisional ratings to the following classes of notes to be issued by STORM 2017-I B.V.: EUR[-] million senior class A mortgage-backed notes due 2064, Assigned (P)Aaa (sf) EUR[-] million mezzanine class B mortgage-backed notes due 2064, Assigned (P)Aa1 (sf) EUR[-] million mezzanine class C mortgage-backed notes due 2064, Assigned (P)Aa3 (sf) EUR[-] million junior class D mortgage-backed notes due 2064, Assigned (P)A2 (sf) EUR[-] million subordinated class E notes due 2064, Assigned (P)Ba1 (sf) STORM 2017-I B.V. is a revolving securitisation of Dutch prime residential mortgage loans. Obvion N.V. (not rated) is the originator and servicer of the portfolio. RATINGS RATIONALE The provisional ratings on the notes take into account, among other factors: (1) the performance of the previous transactions launched by Obvion N.V.; (2) the credit quality of the underlying mortgage loan pool; (3) legal considerations; and (4) the initial credit enhancement provided to the senior notes by the junior notes and the reserve fund. The expected portfolio loss of [0.65]% and the MILAN CE of [7.7]% serve as input parameters for Moody's cash flow and tranching model, which is based on a probabilistic lognormal distribution, as described in the report "The Lognormal Method Applied to ABS Analysis", published in July 2000. MILAN CE for this pool is [7.7]%, which is in line with preceding revolving STORM transactions and in line with other prime Dutch RMBS revolving transactions, owing to: (i) the availability of the NHG-guarantee for [30.5]% of the loan parts in the pool, which can reduce during the replenishment period to [25]%, (ii) the replenishment period of 5 years where there is a risk of deteriorating the pool quality through the addition of new loans, although this is mitigated by replenishment criteria, (iii) the weighted average loan-to-foreclosure-value (LTFV) of [93.55]%, which is similar to LTFV observed in other Dutch RMBS transactions, (iv) the proportion of interest-only loan parts ([58.3]%) and (v) the weighted average seasoning of [6.75] years. Moody's notes that the unadjusted current LTFV is [92.85]%. The slight difference is due to Moody's treatment of the property values that use valuations provided for tax purposes (the so- called WOZ valuation). The risk of a deteriorating pool quality through the addition of loans is partly mitigated by the replenishment criteria which includes, amongst others, that the weighted average CLTMV of all the mortgage loans, including those to be purchased by the Issuer, does not exceed [87]% and the minimum weighted average seasoning is at least [40] months. Further, no new loans can be added to the pool if there is a PDL outstanding, if loans more than 3 months in arrears exceeds [1.5]% or the cumulative loss exceeds [0.4]%. The key drivers for the portfolio's expected loss of [0.65]%, which is in line with preceding STORM transactions and with other prime Dutch RMBS transactions, are: (1) the availability of the NHG-guarantee for [30.5]% of the loan parts in the pool, which can reduce during the replenishment period to [25]%; (2) the performance of the seller's precedent transactions; (3) benchmarking with comparable transactions in the Dutch RMBS market; and (4) the current economic conditions in the Netherlands in combination with historic recovery data of foreclosures received from the seller. The transaction benefits from a non-amortising reserve fund, funded at [1.02]% of the total class A to D notes' outstanding amount at closing, building up to [1.3]% by trapping available excess spread. The initial total credit enhancement for the Aaa (sf) provisionally rated notes is [8.0]%, [6.98]% through note subordination and the reserve fund amounting to [1.02]%. The transaction also benefits from an excess margin of [50] bps provided through the swap agreement. The swap counterparty is Obvion N.V. and the back-up swap counterparty is Cooperatieve Rabobank U.A. ("Rabobank"; rated Aa2/P-1). Rabobank is obliged to assume the obligations of Obvion N.V. under the swap agreement in case of Obvion N.V.'s default. The transaction also benefits from an amortising cash advance facility of [2.0]% of the outstanding principal amount of the notes (including the class E notes) with a floor of [1.45]% of the outstanding principal amount of the notes (including the class E notes) as of closing. STRESS SCENARIOS: Moody's Parameter Sensitivities: At the time the ratings were assigned, the model output indicated that class A notes would have achieved Aaa (sf), even if MILAN CE was increased to [10.78]% from [7.7]% and the portfolio expected loss was increased to [1.95]% from [0.65]% and all other factors remained the same. Moody's Parameter Sensitivities provide a quantitative/model- indicated calculation of the number of rating notches that a Moody's structured finance security may vary if certain input parameters used in the initial rating process differed. The analysis assumes that the deal has not aged and is not intended to measure how the rating of the security might migrate over time, but rather how the initial rating of the security might have differed if key rating input parameters were varied. Parameter Sensitivities for the typical EMEA RMBS transaction are calculated by stressing key variable inputs in Moody's primary rating model. FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS: Significantly different loss assumptions compared with our expectations at close due to either a change in economic conditions from our central scenario forecast or idiosyncratic performance factors would lead to rating actions. For instance, should economic conditions be worse than forecast, the higher defaults and loss severities resulting from a greater unemployment, worsening household affordability and a weaker housing market could result in a downgrade of the ratings. Downward pressure on the ratings could also stem from (1) deterioration in the notes' available credit enhancement; or (2) counterparty risk, based on a weakening of a counterparty's credit profile, particularly Obvion N.V. and Rabobank, which perform numerous roles in the transaction. Conversely, the ratings could be upgraded: (1) if economic conditions are significantly better than forecasted; or (2) upon deleveraging of the capital structure. The provisional ratings address the expected loss posed to investors by the legal final maturity of the notes. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal with respect to the notes by the legal final maturity. Moody's ratings only address the credit risk associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. =========================== U N I T E D K I N G D O M =========================== KING & WOOD: Files Second Notice to Appoint Administrators ---------------------------------------------------------- Rose Walker and Alex Berry at Legal Week report that King & Wood Mallesons' (KWM) European arm has delayed a move into administration by filing a second intention of notice to appoint administrators. The firm made the filing on Jan. 10 in the High Court, a move that had been expected by multiple partners and sources close to the firm, Legal Week relates. It first filed an intention of notice to appoint administrators on Dec. 22, with AlixPartners named as the proposed administrator, Legal Week recounts. CMS is also advising KWM Europe on the process, Legal Week discloses. KWM Europe now has 10 working days until it must file for administration, giving the firm's China arm more time to finalize efforts to retain parts of the legacy SJ Berwin business, Legal Week says. The firm is in talks to keep a number of European partners, with Legal Week revealing last week that banking partner Vanessa Docherty and corporate partners Joseph Newitt, Greg Stonefield and Wang Lianghau are among those in discussions to join KWM's Chinese arm, along with a 10-lawyer City litigation team. It is thought that KWM China could retain partners in eight out of nine KWM European offices -- London, Paris, Frankfurt, Madrid, Milan, Dubai, Brussels and Luxembourg, Legal Week notes. The firm's Munich office is expected to close this month, according to Legal Week. About King & Wood Mallesons King & Wood Mallesons is a multinational law firm headquartered in Hong Kong. With more than 2,200 lawyers and $1 billion in revenue, King & Wood Mallesons is a product of two large scale mergers: in 2012, China's King & Wood PRC Lawyers merged with Mallesons Stephen Jaques of Australia, and then what became King & Wood Mallesons merged with SJ Berwin of the United Kingdom in 2013. KWM is the first and only global law firm based in Asia and is the largest law firm headquartered outside of the United States or European Union. It is the 6th largest firm in the world by number of lawyers and one of the top thirty by revenue. The firm's Chinese, Australian and UK divisions each maintain separate finance units but operate under a single brand name. European Arm's Woes KWM's European and Middle East (EUME) operation as of November 2016 had 130 partners and more than 500 lawyers altogether. Its offices in Europe and the Middle East are London, Cambridge, Madrid, Brussels, Luxembourg, Milan, Paris, Frankfurt, Munich, Dubai and Riyadh. In 2015, the division accounted for 27 percent of the firm's global revenue. The Australian, Chinese, Hong Kong portions of KWM are financially separate and have different management from the European operations. KWM Europe faced cash flow issues because of a slowdown in business and partner defections. In 2016, it was unable to make timely payments to partners. The firm subsequently announced a plan to inject $18 million of capital by raising it from partners. But the recapitalization plan failed due to a number of partner departures. Among those who jumped ship are managing partner Rob Day and its head of investments practices Michael Halford, left. On Nov. 10, 2016, the firm announced that KWM global managing partner Stuart Fuller would step down and that a process was underway to select a new leader. On Nov. 16, 2016, KWM announced a proposed bail-out, under which the Chinese division agreed to infuse GBP14 million of additional capital to KWM Europe, provided that 60% of partners agree to a 12 month "lock-in" and provide some additional capital. However, insufficient partners committed to the deal. By the end of November 2016, KWM announced that it was considering a range of strategic options, including a merger of the European division. In early December 2016, reports say that KWM Europe was in negotiations to enter pre-packaged administration proceedings in the UK. KWM Europe announced on Dec. 9, 2016, that it has received "a number of indicative purchase offers." LIBERTY GLOBAL: Moody's Says European Business to Improve in 2017 ----------------------------------------------------------------- While Liberty Global plc's (Liberty, Ba3 stable) European businesses will see their earnings improve in 2017, the international cable communications company's aim for a 2015-18 operating cash flow ("OCF", Liberty's measure of profitability) like-for-like growth of 7-9% remains ambitious, says Moody's Investors Service in a report published Jan. 9, 2017. After achieving an OCF growth of 3.3% (normalized for acquisitions, disposals and foreign currency movements and excluding Ziggo Group Holding B.V.) in Europe in the first nine months of 2016, a meaningful acceleration in growth trends is necessary from Q4 2016 onwards. Moody's report is titled "Liberty Global Plc Relative Comparison: Expected Performance of Liberty Global & Its European Businesses In 2017". In this report, Moody's has discussed the relative rating positioning of the credits and compared the future evolution of their business profiles and credit metrics. Moody's subscribers can access this report via the link provided at the end of this press release. "Liberty's profit growth target for its European businesses in 2017 appears ambitious in the light of intense competition across markets. Moreover, elevated capex commitments on the back of significant network expansion plans in Europe mean the group's free cash flow generation is unlikely to improve in 2017," says Gunjan Dixit, a Moody's Vice President - Senior Analyst and author of the report. Moody's expects UK-based Virgin Media Inc. (Ba3 stable) and UPC Holding B.V. (UPC, Ba3 stable; present in seven other European countries) to see meaningfully stronger OCF growth in 2017 helped by the execution of the strategic growth initiatives. While the acquisition of mobile operations is somewhat dilutive for margins, OCF at Telenet Group Holding NV (Telenet, B1 positive) in Belgium and Netherlands-based Ziggo Group Holding B.V. (Ziggo, Ba3 negative) will benefit from some operational synergies due to the integration of BASE and Vodafone Netherlands, respectively. Most of Liberty's European businesses will see improved or steady revenue growth (normalized for acquisitions, disposals and foreign currency movements) in 2017 compared to 2016. That said, Telenet will grow only modestly by around 2% as it remains in the middle of integrating BASE. Ziggo will continue to be the weakest performer in 2017 having consistently lost customers to rival Koninklijke KPN N.V. (Baa3, stable) in 2016. Nevertheless, Ziggo will be de-consolidated from Liberty's accounts given its new joint venture status with Vodafone Netherlands. Moody's expects property and equipment additions to sales to increase to around 27%-30% in Europe in 2017 as Liberty continues with the new build activity. While cash flow from operations will remain steady, free cash flow will be impacted across most European businesses by the elevated capex levels. Moody's adjusted leverage is high for Ziggo following the joint venture compared with the ratio guidance defined for its Ba3 corporate family rating. UPC's leverage (Moody's adjusted) is also high but the agency expects it to reduce in 2017 with the acquisition of Multimedia Polska provided there is limited (if any) debt incurrence. On the other hand, leverage at Telenet is lower than the upward ratings trigger, which is captured in its positive outlook. Liberty has a long-standing target of managing group leverage between 4.0x-5.0x reported debt/operating cash flow. However, it has been operating at the peak of its range, translating into a high Moody's adjusted group leverage. Liquidity for all Liberty's European businesses is adequate. There are no material near-term debt maturities. At the closing of the Ziggo joint venture transaction in December 2016, Liberty received around EUR2.2 billion of cash from Ziggo funded via debt recapitalization at the joint venture and proceeds from Vodafone Netherlands. Liberty is aiming to conduct a total of USD4 billion in share buybacks for its European businesses by 2017 of which USD1.6 billion had been completed as of Q3 2016. TEAM ROCK: Administrators Sell Assets to Future for GBP800,000 -------------------------------------------------------------- Gareth Mackie at The Scotsman reports that the administrators of Team Rock, a collapsed Glasgow rock music media business, have sold a raft of its assets in an GBP800,000 deal. Team Rock called in administrators from FRP Advisory last month after battling losses for some time, in a move that saw 73 staff lose their jobs just before Christmas, The Scotsman relates. According to The Scotsman, FRP said on Jan. 9 that international media group Future, owner of the Guitarist and PC Gamer titles, has now acquired the magazines, domain names, events, radio license and websites of Classic Rock, Metal Hammer, Prog, Blues -- along with the Golden Gods event operation -- for GBP800,000. ********* 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 2017. 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 * * *