TCREUR_Public/170112.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

          Thursday, January 12, 2017, Vol. 18, No. 009


C Z E C H   R E P U B L I C

OKD: Czech State Firm Bids to Take Over Coal Mining Company


BREMER LANDESBANK: Moody's Raises Issuer Rating From Ba1


AVOCA CAPITAL: Fitch Assigns Final 'B-' Rating to Cl. F-R Notes
HARVEST CLO XII: S&P Affirms B- Rating on Class F Notes


INTERBANCA: Moody's Extends Review on B2 Ratings for Downgrade
INTESA SANPAOLO: S&P Assigns B+ Rating to EUR1.25BB Tier 1 Notes


TELEKOM SLOVENIJE: S&P Assigns 'BB+' CCR on Solid Credit Metrics


BANK KHRESCHATYK: Repays UAH190.5MM Debt on NBU Refinancing Loan
PLATINUM BANK: Declared Insolvent by Nat'l Bank of Ukraine

U N I T E D   K I N G D O M

BHS GROUP: DLA Piper Earns GBP3 Million as Advisors, Report Shows
COVPRESS: Liberty House Rescues Business Out of Administration
FORMAL AFFAIR: In Administration; Shuts All Stores for Good
SCHIVO NI: Duff & Phelps Appointed as Administrator
TAL LTD: Enters Administration, 50 Jobs at Risk

* UK: 2,679 Companies in Travel Sector in Significant Distress


C Z E C H   R E P U B L I C

OKD: Czech State Firm Bids to Take Over Coal Mining Company
Chris Johnstone at reports that the Czech state is in
the running to buy up the country's sole hard coal, or coking
coal, company, OKD, which is now under insolvency administration.
A bid of CZK1.0 was submitted by the state company Diamo on Dec.
16, 2016.

That was one of the main takeaways from a press conference by
Minister of Industry and Trade Jan Mladek on Dec. 20 in response
to the demand from OKD for a chunk of state aid, this time
totalling CZK723 million, relates. An operating loan of
CZK700 million was already made in the middle of the year to keep
the mining company going. says Diamo is, apparently, one of around 10 bidders
which has so far expressed interest in taking over OKD to the
insolvency manager, Lee Louda.  According to, the
business daily Hospodarske Noviny reported Dec. 21 that a series
of Czech coal company bosses who previously expressed interest in
a buy out are not among the list of 10 so far.

Minister Mladek, and his stand was echoed by finance minister
Andrej Babis, argued that Diamo's bid for OKD would cover the pay
off costs of miners and the environmental costs of closing mines,
the report says. The Paskov mine will be the first to close at
the end of March this year with the loss of around 1,700 jobs, notes. Any state financing in the meantime would just
worsen Diamo's prospects in a possible takeover and improve the
chances of a private investor, he added. relates that the Czech state is supporting what it
describes as a soft landing for the OKD mines in the far east of
the country. It would like the remainder of them to stay
operating until at least 2020 and hopefully for a few years
longer until 2023 to buy time for the region to adapt to the loss
of its biggest employer with around 12,000 direct jobs at the

According to, OKD outlined in a letter to minister
Mladek that around a third of the sought after CZK723 million is
needed to meet the social costs of closing mines and laying off
workers. The remaining CZK477 million will be needed for shutting
down the mines themselves and avoiding the likelihood of
environment risks and pollution.

A total of CZK30 million is needed to be set aside every year for
the conservation of the Frenstat mine where there are massive
potential reserves of coal but no decision yet to exploit them, discloses. OKD's current management would like to spin
off both the Paskov and Frenstat mines into a separate company so
that their costs would no longer impinge upon the operational
mines, adds

OKD is the only producer of hard coal (bituminous coal) in the
Czech Republic.  Its coal is mined in the southern part of the
Upper-Silesian Coal Basin -- in the Ostrava-Karvina coal
district.  OKD is a subsidiary of New World Resources N.V.

On May 3, 2016, OKD filed an insolvency petition with the Czech
courts after failing to secure a vital cash injection needed to
continue trading and pay its 13,000 workers, The Financial Time


BREMER LANDESBANK: Moody's Raises Issuer Rating From Ba1
Moody's Investors Service has upgraded the ratings of Bremer
Landesbank Kreditanstalt Oldenburg GZ (BremerLB), including the
bank's long-term deposit ratings to Baa1 from Baa3, its long-term
senior unsecured debt and issuer ratings to Baa2 from Ba1, as
well as its short-term debt programme and deposit ratings to P-2
from P-3. Concurrently, the rating agency upgraded BremerLB's
Adjusted Baseline Credit Assessment (Adjusted BCA) to ba2 from
b1. Moody's also upgraded the bank's Counterparty Risk (CR)
Assessment to Baa1(cr)/P-2(cr) from Baa3(cr)/P-3(cr) and its
subordinated medium-term note program rating to (P)Ba3 from
(P)B2. The outlook on the bank's long-term ratings is now
developing. BremerLB's BCA of caa2 was unaffected by today's
rating actions.

These rating actions were prompted by the effective full transfer
of BremerLB's ownership to its parent Norddeutsche Landesbank GZ
(NORD/LB; deposits A3 negative, senior debt Baa1 negative, BCA
ba3), effective January 1, 2017, and by the rating agency's
expectation that a control agreement with NORD/LB will, from 2017
onwards, ensure closer integration of BremerLB into the group, as
well as the absorption of future potential losses of BremerLB by
its parent.



Moody's has upgraded the long-term debt, issuer, and deposit
ratings of BremerLB following the full ownership transfer to
NORD/LB. The upgrade of BremerLB's Adjusted BCA to ba2 from b1
reflects Moody's view that BremerLB now benefits from
"affiliate-backing" by its parent, including any potential
support by the institutional protection scheme of Sparkassen-
Finanzgruppe (Corporate Family Rating Aa2 stable, BCA a2).
Moody's concept of "affiliate-backing" is the strongest form of
affiliate support in the absence of a guarantee. The rating
agency's assessment adds six notches of uplift to BremerLB's
Adjusted BCA from its BCA.

Other rating input factors, i.e., the result of Moody's Advanced
Loss Given Failure (LGF) analysis and government support, remain
unchanged, adding a combined three and four notches,
respectively, to BremerLB's senior unsecured debt and deposit


The developing outlook on BremerLB's long-term debt, issuer, and
deposit ratings reflects the simultaneous presence of both
possible upward and downward ratings pressures during a period of
ongoing restructuring of the entity, aiming at addressing current
solvency risks and a closer integration of the bank into NORD/LB
group. Positive pressure reflects the benefits of this strategy.
However, negative pressure on BremerLB's long-term ratings and
Adjusted BCA are driven by a combination of the negative outlook
on the long-term ratings of its parent and affiliate support
provider NORD/LB as well as uncertainty at this stage how swiftly
BremerLB's intrinsic challenges and a closer integration into the
group can effectively be addressed.


BremerLB's debt and deposit ratings, which carry a developing
outlook, may be upgraded by one notch if the bank's BCA is
upgraded, while the Adjusted BCA of NORD/LB remains at least at
the current level of ba1.

Upward pressure on BremerLB's BCA could result primarily from a
sizable de-risking and/or recapitalisation of the bank that would
minimise the risk of regulatory intervention.


BremerLB's ratings may be downgraded if a recovery of the bank's
standalone credit profile takes longer than currently
anticipated, while NORD/LB's ba3 BCA and ba1 Adjusted BCA were
downgraded by one notch, driven by further declining freight
rates coupled with a lack of progress by NORD/LB in reducing its
shipping exposures towards its medium-term target of EUR12-14

Furthermore, the long-term debt and deposit ratings of NORD/LB
and BremerLB may be downgraded if, at the group level, the amount
of equal-ranking or subordinated debt for an individual debt
class were to decline beyond current expectations, leading to a
less favorable outcome under Moody's Advanced LGF analysis.


Issuer: Bremer Landesbank Kreditanstalt Oldenburg GZ

The following ratings were upgraded:

Adjusted Baseline Credit Assessment, to ba2 from b1

LT Counterparty Risk Assessment, to Baa1(cr) from Baa3(cr)

ST Counterparty Risk Assessment, to P-2(cr) from P-3(cr)

LT Issuer Rating (Foreign), to Baa2 from Ba1, Outlook changed to
Developing from Ratings under Review

LT Bank Deposits (Local & Foreign), to Baa1 from Baa3, Outlook
changed to Developing from Ratings under Review

ST Banks Deposits Rating (Local & Foreign), to P-2 from P-3

Senior Unsecured (Local), to Baa2 from Ba1, Outlook changed to
Developing from Ratings under Review

Senior Unsecured MTN (Local), to (P)Baa2 from (P)Ba1

Subordinate MTN (Local), to (P)Ba3 from (P)B2

Other Short Term (Local), to (P)P-2 from (P)P-3

Commercial Paper (Local), to P-2 from P-3

Outlook action:

Outlook changed to Developing from Ratings Under Review


AVOCA CAPITAL: Fitch Assigns Final 'B-' Rating to Cl. F-R Notes
Fitch Ratings has assigned Avoca Capital CLO X DAC refinanced
notes final ratings, as:

  Class A-R: 'AAAsf'; Outlook Stable
  Class B-R: 'AAsf'; Outlook Stable
  Class C-R: 'Asf'; Outlook Stable
  Class D-R: 'BBBsf'; Outlook Stable
  Class E-R: 'BBsf'; Outlook Stable
  Class F-R: 'B-sf'; Outlook Stable
  Subordinated notes: not rated

The assignment of the final ratings is contingent on the receipt
of final documents conforming to information already reviewed.

Avoca Capital CLO X DAC is a cash flow collateralized loan
obligation (CLO).  The transaction closed in 2013 but was not
rated by Fitch at the time.  The notes were fully redeemed on
Dec. 20, 2016, and on the same date new notes were issued
(refinancing).  The proceeds of this issuance were used to redeem
the old notes.  The refinanced CLO envisages a further four-year
reinvestment period with a new identified portfolio that will
mainly comprise the assets currently in the existing portfolio,
as modified by sales and purchases made by the manager until the
effective date in March 2017.  The portfolio is managed by KKR
Credit Advisors (Ireland).

                        KEY RATING DRIVERS

Sufficient Credit Enhancement:
Available credit enhancement plus excess spread is sufficient to
protect against portfolio default and recovery rate projections
in the relevant rating stress scenario.  For the class D and
class F notes, the cash flow modeling indicates minor shortfalls
in a few scenarios of Fitch's matrix.  However, Fitch deems these

'B+'/'B' Portfolio Credit Quality

Fitch assesses the average credit quality of obligors in the
'B+'/'B' range.  The agency has public ratings or credit opinions
on all the obligors in the identified portfolio (outstanding
portfolio at the latest payment date excluding identified sales
and unidentified purchases before the effective date).  The
weighted average rating factor of the identified portfolio is

High Expected Recoveries
At least 90% of the portfolio will comprise senior secured loans
and bonds.  The weighted average recovery rate of the identified
portfolio is 70.6%.

Payment Frequency Switch
The notes pay quarterly, while the portfolio assets can be reset
to semi-annual from quarterly or monthly.  The transaction has an
interest-smoothing account but no liquidity facility.  A
liquidity stress for the non-deferrable class A and B notes,
stemming from a large proportion of assets potentially resetting
to semi-annual in any one quarter, is addressed by switching the
payment frequency of the notes to semi-annual in such a scenario,
subject to certain conditions.

Limited Interest Rate Risk Exposure
Between 0% and 7.5% of the portfolio can be invested in fixed-
rate assets, while all the liabilities pay a floating-rate
coupon. Fitch modelled both 0% and 7.5% fixed-rate buckets and
found that the rated notes can withstand the interest rate
mismatch associated with each scenario.

At closing the issuer purchased an interest rate cap to hedge the
transaction again rising interest rates.  The notional of the cap
is EUR19 mil. (representing 6.3% of the target par amount) and
the strike rate is 4%.  The cap will expire in January 2023.

Documentation Amendments
The transaction documents may be amended subject to rating agency
confirmation or noteholder approval.  Where rating agency
confirmation relates to risk factors, Fitch will analyze the
proposed change and may provide a rating action commentary if the
change has a negative impact on the ratings.  Such amendments may
delay the repayment of the notes as long as Fitch's analysis
confirms the expected repayment of principal at the legal final

If in the agency's opinion the amendment is risk-neutral from a
rating perspective Fitch may decline to comment.  Noteholders
should be aware that the structure considers the confirmation to
be given if Fitch declines to comment.

                       RATING SENSITIVITIES

A 25% increase in the obligor default probability would lead to a
downgrade of up to two notches for the rated notes.  A 25%
reduction in expected recovery rates would lead to a downgrade of
up to two notches for the rated notes.

HARVEST CLO XII: S&P Affirms B- Rating on Class F Notes
S&P Global Ratings affirmed its credit ratings on Harvest CLO XII
Ltd.'s class A-1, A-2, B-1, B-2, C, D, E, and F notes.

The affirmations follow S&P's assessment of the transaction's
performance using data from the November 2016 trustee report.
S&P performed credit and cash flow analysis and applied its
current counterparty criteria to assess the support that each
participant provides to the transaction.

Taking into account the scheduled end of the reinvestment period,
S&P subjected the capital structure to a cash flow analysis to
determine the break-even default rate (BDR) for each rated class
of notes at each rating level.  The BDR represents S&P's estimate
of the maximum level of gross defaults, based on its stress
assumptions, that a tranche can withstand and still pay interest
and fully repay principal to the noteholders.  In S&P's analysis,
it used the reported portfolio balance that S&P considered to be
performing (EUR402.96 million), the weighted-average spread
(4.79%), and the weighted-average recovery rates for the

In S&P's analysis, it considered the increased credit enhancement
available to the outstanding classes of notes.  S&P's review of
the transaction highlights that the available credit enhancement
for all of the classes of notes has increased marginally since
S&P's 2015 review.

S&P incorporated various cash flow stress scenarios using its
standard default patterns and timings for each rating category
assumed for each class of notes, combined with different interest
stress scenarios as outlined in S&P's corporate cash flow
collateralized debt obligation (CDO) criteria.

Following the application of S&P's structured finance ratings
above the sovereign criteria, it considers the transaction's
exposure to country risk to be limited at the assigned rating
levels, as the exposure to individual sovereigns does not exceed
the diversification thresholds outlined in S&P's criteria.

S&P also applied our supplemental tests, as outlined in its
corporate cash flow CDO criteria, and found that these did not
constrain the modeled rating results for any tranche.  Overall,
the results of S&P's credit and cash flow analysis are
commensurate with the currently assigned ratings.

Harvest CLO XII is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans granted to primarily
speculative-grade corporate firms.  The transaction closed in
August 2015, with the reinvestment period due to end in August


Ratings Affirmed

Harvest CLO XII Ltd.
EUR413 Million Senior Secured Floating- And Fixed-Rate Deferrable

Class          Rating

A-1            AAA (sf)
A-2            AAA (sf)
B-1            AA (sf)
B-2            AA (sf)
C              A (sf)
D              BBB (sf)
E              BB (sf)
F              B- (sf)


INTERBANCA: Moody's Extends Review on B2 Ratings for Downgrade
Moody's Investors Service has extended the review for downgrade
on GE Capital Interbanca S.p.A.'s (Interbanca) B2 long-term
deposit ratings, the review for upgrade of the caa1 baseline
credit assessment (BCA) and adjusted BCA, and the review with
direction uncertain of the bank's B1(cr) long-term Counterparty
Risk Assessment (CR Assessment). The Not Prime short-term deposit
rating, and the Not Prime(cr) short-term CR Assessment are not


Moody's said that, during the extended review, it will continue
analysing Interbanca's credit profile following the acquisition
by Banca IFIS (unrated), which concluded on November 30, 2016. In
particular, the rating agency will need to gather additional
details on the funding structure of Interbanca and Banca IFIS
following the acquisition. Interbanca's funding structure affects
several aspects of Moody's analysis: profitability, affiliate
support, and loss-given-failure analysis.

The review on Interbanca's ratings initiated on September 6,
2016, following the announcement of the acquisition of Interbanca
by Banca IFIS.


Interbanca's BCA could be upgraded following a substantial
reduction of the very high stock of problem loans and a return to
a sustainable level of profitability, provided that the bank's
capitalisation were maintained.

The adjusted BCA could be upgraded following an upgrade of the
BCA; the adjusted BCA could also be upgraded if, following the
acquisition by Banca IFIS, Moody's analysis shows that Banca IFIS
has sufficient capacity and willingness to provide support to
Interbanca in case of need.

An upgrade of the long-term deposit ratings is unlikely at the
moment, as indicated by the current review for downgrade.


A downgrade of Interbanca's BCA and adjusted BCA is unlikely, as
indicated by the current review for upgrade.

Interbanca's long-term deposit rating could be downgraded if the
planned liability structure results in increased loss-given-
failure without offsetting factors such as a higher standalone
rating and potential affiliate support from Banca IFIS.


Issuer: GE Capital Interbanca S.p.A.

Review for Downgrade:

Long-term Deposit Ratings, currently B2, ratings under review

Review for Upgrade:

Adjusted Baseline Credit Assessment, currently caa1

Baseline Credit Assessment, currently caa1

Review Direction Uncertain:

Long-term Counterparty Risk Assessment, currently B1(cr)

INTESA SANPAOLO: S&P Assigns B+ Rating to EUR1.25BB Tier 1 Notes
S&P Global Ratings assigned its 'B+' long-term issue rating to
the EUR1.25 billion perpetual additional Tier 1 (AT1) capital
notes to be issued by Intesa Sanpaolo (BBB-/Stable/A-3).

S&P understands from the terms and conditions that the AT1 notes
will comply with the EU's latest capital requirements directive
(CRD IV), which is the EU implementation of Basel III.  S&P also
understands that the notes will rank senior to ordinary shares,
but will be subordinated to more senior debt, including Intesa
Sanpaolo's Tier 2 debt.

In accordance with S&P's methodology for rating hybrid capital,
S&P is assigning the AT1 notes a 'B+' rating, four notches below
the issuer credit rating (ICR) on Intesa Sanpaolo.  S&P usually
derive the hybrid rating for banks based in Italy by notching
down from the bank's stand-alone credit profile (SACP).  In this
case, S&P notches down from the ICR on Intesa Sanpaolo because it
is currently lower than its SACP.

S&P calculates this four-notch difference as:

   -- One notch to reflect subordination risk.
   -- Two additional notches to take into account the risk of
      nonpayment at the full discretion of the issuer and the
      hybrid's likely inclusion in Tier 1 regulatory capital.
   -- One further notch because the instruments allow for full or
      partial temporary write-down.

S&P does not apply any additional notching because it do not
consider the 5.125% mandatory conversion trigger as a going-
concern trigger.

Compliance with the minimum regulatory capital requirements is
necessary to avoid the risk of potential restrictions in the
payment of coupons on AT1 notes.  The minimum regulatory capital
requirement (the aggregate of capital conservation buffers,
Pillar 1 and Pillar 2) in terms of Common Equity Tier 1 (CET1)
for 2017 that the European Central Bank set on Intesa Sanpaolo in
the 2016 Supervisory Review and Evaluation Process (SREP) was
7.25%.  S&P views the risk of this restriction being applied to
Intesa Sanpaolo as limited at this stage.  This is because the
bank's CET1 ratio is well above the SREP level.  As of end-
September 2016, the fully loaded CET1 ratio was 13%, clearing the
SREP requirement of 7.25%.  In addition, the nonpayment risk for
Intesa Sanpaolo is mitigated by S&P's expectation that the bank
will maintain resilient profitability over the next two years.
This will likely allow its capitalization to remain in line with
the current level, despite the high dividends distribution (in
the 80%-90% range).

S&P intends to assign intermediate equity content to the notes,
once the regulator approves them, for inclusion in the bank's
regulatory Tier 1 capital.  The instruments meet the conditions
for intermediate equity content under S&P's criteria as they are
perpetual, with a call date expected to be five or more years
from issuance.  In addition, they do not contain a coupon step up
and have loss-absorption features on a going-concern basis due to
the bank's flexibility to suspend the coupon at any time.


TELEKOM SLOVENIJE: S&P Assigns 'BB+' CCR on Solid Credit Metrics
S&P Global Ratings said that it assigned its 'BB+' long-term
corporate credit rating to Slovenian telecommunications operator
Telekom Slovenije d.d.  The outlook is stable.

The rating reflects Telekom Slovenije's exposure to what S&P
considers a challenging and highly competitive Slovenian market
for fixed and mobile telecommunications, paired with S&P's
expectations of Telekom Slovenije maintaining relatively solid
credit metrics in 2017-2018.  Telekom Slovenije's revenue has
declined by a mid-single-digit percentage for a number of years
in the domestic mobile segment, where competition is particularly
intense, and fixed-line revenues remain pressured by the
structural decline of classical fixed-line telephony.  S&P
expects any stabilization of market conditions will take place
only very gradually, and, as a result, S&P projects that Telekom
Slovenije's comparatively low S&P Global Ratings-adjusted EBITDA
margins will continue to modestly weaken within the 26%-29% range
in 2016-2018. Telekom Slovenije is attempting to develop new
revenue streams, such as in IT services and the resale of
electricity, but S&P expects that it will not be able to fully
compensate for the EBITDA impact from the loss of high-margin
telecom service revenues in the near term.  S&P thinks that these
operating headwinds are balanced by the company's moderate
adjusted leverage of below 3x in S&P's forecast, and by its
expectation of relatively benign free operating cash flow (FOCF)
of more than 7% of adjusted debt, despite significant investments
in its fiber network in the next two years.

S&P's assessment of Telekom Slovenije's business risk captures
the high level of competition in the market for telecoms services
in Slovenia and S&P's view of the country's regulatory
environment for the sector as fairly restrictive.  In mobile,
Telekom Slovenije competes with two other mobile network
operators as well as mobile virtual network operators.  Since
2013, Telekom Slovenije's mobile average revenue per user (ARPU)
has declined by about 20%, and S&P expects ARPUs will continue to
fall by about 4% annually in 2016 and 2017.  Fixed-line
competition is intense due to the presence of two alternative
high-speed fixed-line networks with meaningful and partly
overlapping coverage -- a feature that distinguishes Slovenia
from many other European markets.  Like Telekom Slovenije, its
main rivals are able to offer a complete portfolio of fixed,
mobile, and TV services, which is increasingly driving
competition based on fixed-and-mobile "convergence" products.  As
an incumbent operator with significant market power, Telekom
Slovenije is subject to a comprehensive set of regulatory
obligations, including the obligation to provide fully unbundled
as well as bitstream access to its copper and fiber-to-the-home
(FTTH) networks.  S&P thinks the current wholesale rates of
EUR13.43 per month for unbundled fiber access are relatively low
and potentially weaken the returns Telekom Slovenije can achieve
on its FTTH-based high-speed services.  In addition, S&P's view
of Telekom Slovenije's business risk is constrained by its
limited scale and geographic diversification, with about 85% of
2015 EBITDA generated in Slovenia, and the remainder mostly in
Kosovo, plus from small operations in Bosnia.

In spite of these challenges, Telekom Slovenije remains the
leading domestic fixed and mobile operator, with a particularly
high mobile subscriber market share of 48%, well ahead of the
second-largest player si.mobil with about 31% and Telemach, which
holds about 15% (all data according to the national regulatory
authority AKOS and as of June 30, 2016).  In fixed broadband,
Telekom Slovenije leads with a share of 34%, followed by cable
operator Telemach with 25%, and it is also the No. 2 player in
the pay TV market with a share of about 27%, after leader
Telemach with 31%-32%.  Furthermore, Telekom Slovenije has made
good progress upgrading its fixed and mobile networks, having
achieved 97% population coverage with fourth-generation mobile
technology as of the third quarter of 2016, and it is able to
serve about 23% of Slovenian households with services based on
FTTH.  As part of its investment program, Telekom Slovenije is
planning to increase FTTH coverage meaningfully in the next few
years.  Although S&P projects this will cause its capital
expenditure (capex) to sales ratio, excluding spectrum license
costs, to soar to 18%-21% in 2016 and 2017 from about 15% in
2015, S&P expects these measures to strengthen its market
position in fixed broadband.

S&P's view of Telekom Slovenije's financial risk profile is
determined by its moderate leverage and good FOCF, partly offset
by high shareholder remuneration under the influence of its 74%
shareholder, the Republic of Slovenia.  Based on S&P's forecast
that Telekom Slovenije will succeed in gradually stabilizing
operating performance, S&P expects relatively solid adjusted debt
to EBITDA of 2x-3x and funds from operations (FFO) to debt well
within the 30%-40% range in the next three years.  S&P
understands that the company wishes to play a role in market
consolidation within the region, but S&P currently do not expect
that potential transactions would cause significant deviations
from S&P's leverage projections.  Although dividends for 2015
were cut by 50% from the previous year, Telekom Slovenije has a
track record of paying out its entire distributable profit, and
S&P expects shareholder remuneration to revert to pre-2015 levels
in the near to medium term.  S&P's assessment also takes into
account what it considers as Telekom Slovenije's good conversion
of EBITDA to operating cash flow, which is boosted by low cash
interest and taxes.

In arriving at Telekom Slovenije's adjusted credit metrics, S&P
treats certain program rights that are capitalized by the company
as an expense, and S&P applies its adjustments for captive
finance operations to Telekom Slovenije's wireless equipment
installment program.  S&P do not publish these adjustments, but
in aggregate they improve S&P's forecast for adjusted debt to
EBITDA by about 0.1x.

In S&P's base case, it assumes:

   -- Revenue growth, excluding revenue from ONE Macedonia in
      2015, of 0%-1% in 2016 and approximately flat revenues in
      2017, excluding the revenue contribution from Antenna TV SL
      which is consolidated from Jan. 1, 2017.  This reflects a
      mix of revenue declines in mobile and fixed telephone
      offset by new revenue streams such as IT services and the
      resale of electricity to residential customers, and in 2016
      also by the first full-year revenue contribution of

   -- Adjusted EBITDA margins of about 28% in 2016, at the same
      level as in 2015, as cost efficiencies from earlier
      restructuring measures are balanced by Telekom Slovenije's
      revenue mix gradually shifting from high-margin telecom
      service revenues to lower-margin revenue sources.  This
      also leads to slight deterioration of EBITDA margins to
      27%-28% in 2017 and 26%-28% in 2018.

   -- Capex as a percentage of sales, excluding spectrum costs,
      of 18%-21% in 2016 and 19%-21% in 2017, as Telekom
      Slovenije makes substantial investments particularly to
      extend fiber coverage, gradually receding to 6%-18% in

   -- S&P also assumes moderate spectrum spending for frequencies
      in Kosovo in 2017 and for the auction of the 700 Mhz
      spectrum in Slovenia, which is planned for 2018.

   -- Dividend payments possibly rising back to historical levels
      of EUR60 million-EUR70 million from 2017, after
      EUR32.5 million in 2016.

   -- Receipt of significant proceeds for the disposal of the 45%
      minority stake in ONE Macedonia, which S&P expects for late

   -- Very low cash taxes due to significant tax loss carry

   -- Some spending on small, bolt-on acquisitions.

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

   -- Adjusted debt to EBITDA of 2.5x-2.6x at the end of 2016,
      after 2.3x in 2015, and 2.2x-2.3x in 2017, temporarily
      lower due to the cash inflow from the sale of the stake in
      ONE Macedonia, before reverting to 2.4x-2.7x in 2018 as a
      result of negative discretionary cash flow coupled with
      broadly flat adjusted EBITDA.

   -- Adjusted FFO to debt of about 35% in 2016, about 40% in
      2017 (thanks to the cash inflow from the ONE Macedonia
      transaction), and 35%-37% in 2018.

   -- Adjusted FOCF to debt of about 9%-10% in 2016 and 2017, and
      8%-12% in 2018, compared with 17% in 2015.

   -- Unadjusted discretionary cash flow between positive
      EUR10 million and negative EUR10 million in 2016, declining
      to below negative EUR10 million in 2017 and 2018.

S&P regards Telekom Slovenije as a government-related entity, as
the Republic of Slovenia directly and indirectly holds about 74%
of the company.  S&P's 'BB+' rating on Telekom Slovenije does not
include any uplift for potential government support, as S&P sees
a low likelihood of timely and sufficient extraordinary support
from the Republic of Slovenia in the event of financial distress.
This is because S&P thinks that, although the most recent attempt
to privatize Telekom Slovenije in mid-2015 was terminated
unsuccessfully, the sale process may resume over the near to
medium term.  S&P also takes into account its perception that
there is no explicit commitment by the Slovenian government to
support Telekom Slovenije in the event of financial distress.

The stable outlook on Telekom Slovenije reflects S&P's
expectation that the company will successfully defend its leading
domestic market position in mobile and fixed broadband, supported
also by the successful implementation of its network investment
plans, and that new revenue streams will enable the company to
avert significant declines of revenue and EBITDA from current
levels.  S&P also expects that shareholder remuneration will
remain high, but will not materially exceed our forecasts.  S&P
thinks this will enable Telekom Slovenije to maintain adjusted
debt to EBITDA between 2x and 3x and generate FOCF of 7%-12% of
adjusted debt in 2017.

S&P could lower the rating if it observed a material
deterioration of Telekom Slovenije's position in the domestic
market as a result of intense competition or a worsening
regulatory environment.  S&P could also lower the rating if
excessive shareholder remuneration, operating underperformance,
debt-funded acquisitions, or material litigation-related payments
caused adjusted debt to EBITDA to exceed 3x or FOCF to fall to
less than 7% of adjusted debt on a sustainable basis.
Furthermore, a downgrade could result from a weakening of Telekom
Slovenije's liquidity situation.

S&P currently considers an upgrade in the next 12 months as
unlikely given competitive conditions, Telekom Slovenije's small
scale, and a track record of high shareholder distributions under
the influence of the Slovenian government.  S&P could, however,
raise the rating if competitive conditions in the Slovenian
telecoms market improved materially, allowing the company to
return to sustainable revenue growth and stronger adjusted EBITDA
margins of about 35%.  Alternatively, an upgrade could be
supported by adjusted debt to EBITDA of less than 2x and FOCF to
debt of at least 15% on a sustainable basis, accompanied by a
credible financial policy that commits to maintain leverage at
this level.


BANK KHRESCHATYK: Repays UAH190.5MM Debt on NBU Refinancing Loan
Interfax-Ukraine reports that Bank Khreschatyk (Kyiv), being
under liquidation, on December 19 under the decision of the
Individuals' Deposit Guarantee Fund repaid a UAH190.457 debt on a
refinancing loan received from the National Bank of Ukraine

According to Interfax-Ukraine, the creditor's claims were
satisfied at the expense of funds received from the repayment of
the Finance Ministry's government domestic loan bonds in foreign
currency, property rights on which were pledged to the NBU for a
refinancing loan on December 8, 2015.

Bank Khreschatyk is based in Kyiv.  The bank ranked 18th among
123 operating banks as of October 1, 2015, in terms of total
assets worth UAH10.09 billion, according to the NBU.

The Individuals' Deposit Guarantee Fund on the basis of NBU
decision No. 46-RSh dated June 2, 2016 on revoking the banking
license and liquidating insolvent Bank Khreschatyk started the
procedure of liquidation of the financial institution.

The procedure of liquidation was started on June 6 and will last
until June 5, 2018.

Interfax-Ukraine says the National Bank and Kyiv authorities said
the main reason for the bank's insolvency was the reluctance of
other shareholders to invest in its recapitalization, which was
estimated at UAH1.25 billion until June 2017, including UAH600
million until May 1 this year.

PLATINUM BANK: Declared Insolvent by Nat'l Bank of Ukraine
Interfax-Ukraine reports that the Board of the National Bank of
Ukraine (NBU) on Jan. 10 issued decision No. 14-rsh/BT on placing
the PJSC Platinum Bank on the list of insolvent banks.

"As of January 1, 2017, the bank did not reach the positive value
of capital," Interfax-Ukraine quotes the regulator as saying.

The NBU said as the result of banks stress testing in the first
half of 2016, in June 2016 the necessary amount of additional
capitalization was approved for all banks in the second twenty in
order for them to reach the positive value of regulatory capital
by January 1, 2017, Interfax-Ukraine relates.

According to Interfax-Ukraine, the NBU said Platinum Bank
submitted to the National Bank its restructuring plan, which
included the implementation of a number of activities with the
aim of additional capitalization of the bank.

The National Bank said that 97% (197,000 people) of all the
depositors of the Platinum Bank will get back their deposits in
full, because their volume doesn't exceed UAH200,000 -- the
maximum amount of individual deposits guaranteed by the
Individual Deposit Guarantee Fund, Interfax-Ukraine discloses.
All in all, the Fund will ensure payments of guaranteed amount of
deposits to the tune of UAH4.8 billion, Interfax-Ukraine states.

Kyiv-base dPlatinum Bank was established in 2005.  According to
the NBU, as of October 1, 2016, the bank ranked 22nd in terms of
its assets (UAH7.277 billion) among 100 operating banks.

U N I T E D   K I N G D O M

BHS GROUP: DLA Piper Earns GBP3 Million as Advisors, Report Shows
Chris Johnson at The Am Law Daily reports that DLA Piper
continues to profit from its role advising the administrators on
the collapse of British high street retailer BHS, with a leaked
document revealing that professional advisors racked up another
million pounds in fees in less than six weeks.

According to The Am Law Daily, the latest report by joint
administrators Duff & Phelps and FRP Advisory, which was
circulated to creditors and seen by Sky News, showed that
professional advisors earned an additional GBP1.125 million
(US$1.39 million) between October 25 and December 2, bringing the
total cost of BHS' administration to almost GBP3 million (US$3.7

BHS was put into administration in April in one of the U.K.'s
largest ever corporate failures, The Am Law Daily recounts.  More
than 11,000 jobs were lost and 20,000 pensions (the U.K.
equivalent of a 401k) put at risk after it emerged that the
company, which had more than 160 stores across the U.K., had a
pension deficit of GBP571 million (US$703 million), The Am Law
Daily discloses.

Sir Philip Green, a retail magnate with a net worth of more than
US$5 billion, has been heavily criticized for his role in the
collapse of BHS, The Am Law Daily relays.  Mr. Green and other
shareholders had taken around GBP580 million (US$714 million) out
of the business before selling it for just GBP1 (US$1.23), The Am
Law Daily notes.

Linklaters acted for Green's Arcadia Group on the sale of the
company to Retail Acquisitions, which was advised by London-based
technology, media and telecoms specialist Olswang, The Am Law
Daily states.

Weil Gotshal & Manges and DLA then took the lead roles on the
administration, acting for the company and administrators,
respectively, while Jones Day was appointed by the administrators
to investigate the actions of the company's former directors, The
Am Law Daily relates.

An earlier administrators' report, produced in November, revealed
that Green's Arcadia Group, BHS's biggest secured creditor, has a
GBP35 million (US$43 million) floating charge over the defunct
company's assets, The Am Law Daily recounts.  The money was
transferred by Duff & Phelps to Linklaters, which held it in an
escrow account, The Am Law Daily says, citing Sky News.
According to The Am Law Daily, Sky News said the funds were
returned to Duff & Phelps and subsequently transferred to FRP
after Jones Day raised concerns over whether Arcadia is a
so-called connected party and therefore may have to forfeit its
sole right to the charge.

The administrators have told BHS' 7,500 unsecured creditors, who
have claims totaling GBP1.3 billion (US$1.6 billion), that they
can expect returns of just 2-8%, The Am Law Daily discloses.

COVPRESS: Liberty House Rescues Business Out of Administration
Michael Pooler at The Financial Times reports that more than 700
manufacturing jobs have been saved in the West Midlands after
Liberty House, the industrials group, took car parts supplier
CovPress out of administration in a boost for a key sector of the
region's economy.

The deal offers a future for CovPress, a metal stamping and
assembly specialist based in the Canley area of Coventry, with a
history dating back over a century, the FT says.

Funding problems led to the collapse of CovPress in September,
three years after it was bought out by a Chinese-British
consortium for GBP30 million, the FT recounts.  The business
employs 740 workers and makes components such as panels and fuel
tank protectors, with customers including Jaguar Land Rover,
Renault and GM, the FT discloses.

CovPress was taken over by Shandong Yongtai of China and
Shropshire's TIA Treadsetters in 2013, the FT relays.  Its
turnover doubled to roughly GBP100 million but significant
investments in new machinery and a further UK acquisition by
Yongtai led to cash flow problems, according to administrator
documents, the FT notes.

As part of the rescue deal, Liberty will retain responsibility
for the company's retirement fund -- preventing it falling into
the industry-backed safety net for the pensions of insolvent
companies, which results in cuts for members yet to retire, the
FT states.

According to the FT, administrators at Grant Thornton said this
was the first time that such an outcome had been achieved for a
business in administration.

No value was disclosed for the transaction, for which ABN Amro is
providing finance, according to the FT.  Consultants at Lane
Clark & Peacock advised on pensions, the FT discloses.

FORMAL AFFAIR: In Administration; Shuts All Stores for Good
Sutton Coldfield Observer reports that Formal Affair, a
longstanding wedding hire shop in Sutton Coldfield, has closed
along with the firm's eight other branches after the business has
gone into administration.

Wedding dress and men's suit hire specialist Formal Affair
Weddings Limited, which had a shop in Birmingham Road in the
Royal Town ceased trading on December 20, and entered
administration in the New Year, having closed all branches with
39 staff being made redundant, the report discloses.

"Despite working so hard to restructure and support the business
over the last couple of years, to make it competitive in light of
changing consumer purchasing habits, it is with deep regret that
I have had to make the unavoidable decision of closing all stores
and making the staff redundant," the report quotes Director of
Formal Affair Weddings Limited, Richard Cook, as saying.

"I would like to take this opportunity to thank all staff members
for their great service over the years as well as all of our
brides and grooms for their valued custom."

Sutton Coldfield Observer notes that the company, which was
previously bought out of administration in 2014, following a
winding-up petition being issued by HMRC, has struggled in recent
times due to changing purchasing habits of customers regarding
wedding fashions.

Formal Affair has filed a notice to appoint administrators with
partners Dean Nelson and Nick Lee of Midlands based Smith Cooper.

Sutton Coldfield Observer quotes Mr. Nelson as saying that: "The
management of Formal Affair Weddings Limited have continuously
attempted to reduce costs and restructure the business in light
of current fashion and purchasing trends, however this has proven
challenging with the formal and wedding attire market changing
considerably over the last couple of years.

"We are currently in the process of assisting the company
repatriate its stock to the head office with a view to a closing
down sale being instigated in the New Year. Once appointed
administrators, we will be in contact with creditors regarding
the financial position of the company and dividend prospects."

Headquartered in Tamworth, Formal Affair Weddings Limited
specialised in formal wear for men and bridal ware and operated
across nine branches, predominantly in the Midlands, with in
addition to Sutton, branches in Tamworth, Newport, Birmingham,
Solihull, Leicester, Nottingham, Chesterfield and Sheffield. All
outlets have now been closed down by the company, the report

SCHIVO NI: Duff & Phelps Appointed as Administrator
Belfast Telegraph reports that Duff & Phelps has been appointed
administrator of Schivo NI after the company became insolvent.

Schivo NI has not filed full accounts but in January last year, a
charge on its building and premises was registered by Allied
Irish Banks (AIB), the report says.

Belfast Telegraph relates that speaking in July 2015 when Schivo
acquired Maydown Precision Engineering, its chief executive
Seamus Kilgannon said the deal showed that it was "willing to
invest in the long-term future of the company".

Schivo NI makes precision components for aerospace giants such as
Airbus and Boeing. It employs 83 people.  The parent company of
Schivo is based in Waterford in the Republic.

TAL LTD: Enters Administration, 50 Jobs at Risk
Julian O'Neill at BBC News reports that TAL Ltd. has gone into

Lisburn-based TAL Ltd, which was established in 1981, employs
about 50 people directly, with other jobs linked to sub-
contractors, BBC discloses.

It hopes the posts can be saved as negotiations start into the
future of the business, BBC relates.

TAL Ltd carries out work in both the private and public sectors,
BBC notes.

TAL Ltd. is a County Antrim building firm with an annual turnover
of about GBP20 million.

* UK: 2,679 Companies in Travel Sector in Significant Distress
Chris Johnson at reports that law firms in the U.K. could
soon face a glut of insolvency and restructuring work, with data
suggesting that thousands of companies in the travel sector are
at risk of going bust.

According to, insolvency consulting firm Begbies Traynor
says that 2,679 U.K. travel industry businesses are in
significant distress -- a rise of 10% over the past three months.
More than a quarter of all U.K. travel agents and tour operators
are currently listed as being at risk of insolvency by Company
Watch, which assesses the financial health of companies,

Companies are struggling due to rising costs and increased
terrorism fears, which is causing travelers to stay away from
traditionally popular vacation areas such as Egypt and Turkey, relays, citing City A.M.


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

                 * * * End of Transmission * * *