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



SOBELMAR ANTWERP: Three "Ghost Ships" Remain Unsold


VIVARTE: French Nationalist Politicians Criticize Restructuring


MONTE DEI PASCHI: Clears "Serious Disturbance" Legal Hurdle


SAPINDA INVEST: Owner Has One Year to Turn Companies Around


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



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

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

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

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.


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.


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 -- 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.


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

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.


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


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

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

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

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

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.


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.


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.


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

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

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

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

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

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  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 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

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