/raid1/www/Hosts/bankrupt/TCREUR_Public/170119.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 19, 2017, Vol. 18, No. 14
Headlines
G R E E C E
WIND HELLAS: S&P Assigns 'B' CCR to Parent; Outlook Stable
I R E L A N D
ST. PAUL'S CLO III: Fitch Affirms 'B-' Rating on Class F Notes
ST. PAUL'S CLO III: S&P Affirms 'B' Rating on Class F Notes
I T A L Y
DIAPHORA1 FUND: February 15 Bid Submission Deadline Set
PORTO SAN ROCCO: Feb. 16 Bid Submission Deadline for Complex Set
N E T H E R L A N D S
CONISTON CLO: Moody's Affirms B3 Rating on Class F Notes
METINVEST BV: High Court Grants Order to Convene Scheme Meeting
MULTICYCLE: New Owner Found Following Bankruptcy
R U S S I A
INTER RAO: Moody's Raises Corporate Family Rating to Ba1
RUSFINANCE BANK: S&P Affirms 'BB+/B' Counterparty Credit Ratings
T U R K E Y
TURKIYE VAKIFLAR: Fitch Assigns 'BB+' Rating to Tier 2 Notes
U N I T E D K I N G D O M
ALL LEISURE: G Adventures Acquires Just You and Travelsphere
BERNARD MATTHEWS: Lifeboat Fund Submits GBP75MM Pension Claim
FRAMEFREE GLOBAL: February 24 Claims Filing Deadline Set
NEMEAN BIDCO: Moody's Assigns (P)B1 CFR, Outlook Stable
NORTHAMPTONSHIRE COUNTY: Facing Substantial Risk of 'Insolvency'
PROVIDE BLUE 2005-2: Fitch Raises Rating on Cl. E Debt to 'BB-sf'
PROVIDE BLUE 2005-1: Fitch Corrects Jan. 13 Rating Release
TALKTALK TELECOM: Fitch Assigns 'BB-' Rating to GPB400MM Notes
VEDANTA RESOURCES: Moody's Rates Proposed Sr. Unsecured Notes B3
VEDANTA RESOURCES: S&P Assigns 'B+' Rating to Proposed US$ Notes
* UK: Oil, Gas Sector Insolvencies Hit Record High in 2016
*********
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G R E E C E
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WIND HELLAS: S&P Assigns 'B' CCR to Parent; Outlook Stable
----------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term corporate credit
rating to Largo Intermediary Holdings Ltd., the parent of Greek
telecom operator Wind Hellas Telecommunications S.A., and to
Largo's wholly owned financing subsidiary Crystal Almond S.a.r.l.,
which S&P considers a core group entity (together, the group or
Wind Hellas). The outlook on both entities is stable.
At the same time, S&P assigned its 'B' issue rating to the EUR250
million senior secured notes issued by Crystal Almond.
The rating action follows Wind Hellas' issuance of EUR250 million
of senior secured notes. The proceeds, together with a EUR25
million of equity contribution, were used to repay an existing
term loan facility, which amounts to EUR182 million including
interest, and provide additional liquidity for accelerating
investment outlays in coming years. These include network
investment plans in Wind Hellas' fixed-line segment, since it is
considering participating in the bidding process for deployment of
a next generation network (NGN), and the remaining license
payments from the spectrum auction allocated in 2014.
The group's business risk profile is primarily constrained by
S&P's view of very high country risk in Greece, where economic
conditions are challenging, unemployment is very high at about
25%, and capital controls are still in place. S&P sees a
continued risk that the group's credit metrics and liquidity could
materially weaken if the economic situation in Greece were to
deteriorate again.
Wind Hellas is the third-largest player in the fairly small Greek
telecommunication market, offering mobile, landline, and internet
services.
The stable outlook reflects S&P's expectation that Wind Hellas
will continue to stabilize revenues and maintain adequate
liquidity, with modest growth in revenues and EBITDA margins in
2017.
S&P sees rating upside as unlikely over the next 12 months, due to
its expectations of high cash burn. S&P could take a positive
rating action if Wind Hellas' FOCF turns positive and its adjusted
debt to EBITDA reduces to less than 3.5x on a sustainable basis,
thereby improving its profit margins to above 25%. This would
also require a decline of country risk in Greece to moderate from
very high currently, including the lifting of capital controls and
the improvement of economic prospects.
S&P could lower the rating if Wind Hellas does not continue to
further grow revenues and margins in 2017, in line with S&P's base
case, and in turn is not able to reduce its projected negative
free cash flow generation. This could occur if Wind Hellas is not
successful in monetizing its investments and growing its fixed
customer base. In addition, S&P could lower the rating if its
liquidity weakens due to higher cash burn than anticipated.
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I R E L A N D
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ST. PAUL'S CLO III: Fitch Affirms 'B-' Rating on Class F Notes
--------------------------------------------------------------
Fitch Ratings has assigned St. Paul's CLO III Designated Activity
Company's refinancing notes final ratings and affirmed the
transaction's remaining notes:
Class A: rated 'AAAsf'; Outlook Stable
Class B: rated 'AAsf'; Outlook Stable
Class C: rated 'Asf'; Outlook Stable
Class D: rated 'BBBsf'; Outlook Stable
Class E: affirmed at 'BBsf'; Outlook Stable
Class F: affirmed at 'B-sf'; Outlook Stable
St. Paul's CLO III Designated Activity Company is a cash flow
collateralised loan obligation securitising a portfolio of mainly
European leveraged loans and bonds. The portfolio is managed by
Intermediate Capital Managers Limited, a wholly owned subsidiary
of Intermediate Capital Group PLC.
KEY RATING DRIVERS
Note Refinancing
St. Paul's CLO III has issued new notes to refinance part of the
original capital structure. The refinanced notes have been
redeemed in full as a consequence of the refinancing.
The refinancing notes bear interest at a lower margin over EURIBOR
than the corresponding refinanced notes. The remaining terms and
conditions of the refinancing notes (including name and seniority)
are the same as the refinanced notes.
The final ratings assigned to the refinancing notes reflect
Fitch's view that the credit risk of the refinancing notes is
substantially similar to the refinanced notes.
Stable Performance
The transaction's performance has been stable since the last
rating action in September 2016. Credit quality has remained
little changed, with the weighted average rating factor as
calculated by Fitch standing at 32.84, down from 32.87. Recovery
prospects are similarly stable with Fitch-calculated weighted
average recovery rate (WARR) of 68.77%, down from 70.13%. There
have been no defaults in the portfolio since the September 2016
review.
The transaction failed the weighted average life (WAL) test in
November 2016. The reported WAL stood at 5.05 years compared with
a threshold of 5.01 years. Fitch views the failure of this test
immaterial to the ratings of the notes given the magnitude of the
shortfall.
The portfolio (including reinvestable principal proceeds) stands
at EUR542.7 mil., below the target par amount of EUR549 mil. This
represents a 1.2% par value loss. The par value loss has narrowed
since the last rating action, when it stood at 1.3%. The level of
loss lies well below Fitch's initial expectation for the
transaction.
RATING SENSITIVITIES
As the loss rates for the current portfolios are below those
modeled for the respective stress portfolio, the sensitivities
shown in the new issue reports for the two transactions still
apply.
ST. PAUL'S CLO III: S&P Affirms 'B' Rating on Class F Notes
-----------------------------------------------------------
S&P Global Ratings assigned its credit ratings to the class A-R,
B-R, C-R, and D-R notes from St Paul's CLO III Ltd., a
collateralized loan obligation (CLO) managed by Intermediate
Capital Managers Ltd. At the same time, S&P has affirmed its
'BB (sf)' and 'B (sf)' ratings on the class E and F notes,
respectively. S&P has also withdrawn its ratings on the original
class A, B, C, and D notes.
The replacement notes were issued via a proposed supplemental
trust deed. The replacement notes were issued at a lower spread
over Euro Interbank Offered Rate (EURIBOR) than the original notes
they replace. The cash flow analysis demonstrates, in S&P's view,
that the replacement notes have adequate credit enhancement
available to support higher ratings than those currently assigned.
The transaction has experienced overall stable performance since
S&P's previous rating affirmations in June 2016. The
transaction's reinvestment period will end in January 2018, and
the transaction's principal account balance is approximately
EUR1.8 million. All coverage ratios are well above the minimum
triggers.
Based on the achieved pricing levels, the post-refinance structure
has improved S&P's cash flow results. However, S&P notes that due
to improved scenario default rates (SDRs) the transaction benefits
from improved results even without taking into account the
transaction's proposed refinancing. The tables below show the
improved performance of the transaction at the preliminary rating
level, which is in part attributable to the lower cost of funding.
The refinancing date was Jan. 16, 2017. On refinancing, the
proceeds from the issuance of the replacement notes redeemed the
original notes, upon which S&P withdrew the ratings on the
original notes and assigned ratings to the replacement notes.
S&P's final rating analysis incorporates the final pricing
achieved on the notes and our analysis of any changes to the
transaction's supporting documentation.
The class E and F notes were not refinanced as part of these
changes. However, S&P's analysis shows that they can support
their currently assigned ratings. Accordingly, S&P has affirmed
its 'BB (sf)' and 'B (sf)' ratings on the class E and F notes,
respectively.
CASH FLOW ANALYSIS RESULTS
Current date after refinancing
Class Amount Interest BDR SDR Cushion
(mil. EUR) rate (%) (%) (%) (%)
A-R 326.7 EURIBOR plus 0.99 67.78 61.68 6.10
B-R 64.9 EURIBOR plus 1.72 63.24 54.14 9.10
C-R 32.4 EURIBOR plus 2.50 58.16 48.00 10.16
D-R 26.4 EURIBOR plus 3.87 53.64 42.30 11.34
E 33.0 EURIBOR plus 5.50 43.19 35.45 7.74
F 15.4 EURIBOR plus 6.00 35.31 29.47 5.84
Current date before refinancing
Class Amount Interest BDR SDR Cushion
(mil. EUR) rate (%) (%) (%) (%)
A-R 326.7 EURIBOR plus 1.45 66.34 61.68 4.66
B-R 64.9 EURIBOR plus 2.00 61.77 54.14 7.63
C-R 32.4 EURIBOR plus 3.00 56.34 48.00 8.34
D-R 26.4 EURIBOR plus 4.15 51.61 42.30 9.31
E 33.0 EURIBOR plus 5.50 40.52 35.45 5.07
F 15.4 EURIBOR plus 6.00 32.83 29.47 3.36
BDR--Break-even default rate. SDR--Scenario default rate.
RATINGS LIST
St Paul's CLO III Ltd.
EUR556.5 Million Secured And Secured Deferrable Floating-Rate
Notes And Subordinated Notes
Ratings Assigned
Replacement Rating
Class
A-R AAA (sf)
B-R AA (sf)
C-R A (sf)
D-R BBB (sf)
Ratings Affirmed
Class Rating
E BB (sf)
F B (sf)
Ratings Withdrawn
Original Rating
class To From
A NR AAA (sf)
B NR AA (sf)
C NR A (sf)
D NR BBB (sf)
NR--Not rated.
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I T A L Y
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DIAPHORA1 FUND: February 15 Bid Submission Deadline Set
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Diaphora1 Fund, in liquidation, pursuant to Art. 57 TUF, put up
for sale the following properties:
Lot A1: Pomezia (RM), in "Sughereta", development areas to be
used for the construction of residential buildings. N.L.R. of
Rome: Sheet no. 30, Parcel 959, arable land, Cl. 5, 7,483 m2;
Sheet no. 30, Parcel 1005, arable land, Cl.5, 5,616 m2; Sheet no.
30, Parcel 1006, arable land, Cl. 5, 5,616 m2.
Starting price EUR9,684,000.00 in addition to applicable tax
Lot A2: Pomezia (RM) in "Sughereta", building areas to be used
for the construction of residential towers, residential multi-
storey buildings and buildings for business purposes. N.L.R. of
Rome: Sheet no. 30, Parcel 864, arable land, Cl. 5, 8,778 m2;
Sheet no. 30, Parcel 867, arable land, Cl. 5, 4,960 m2; Sheet no.
30, Parcel 1007, arable land, Cl. 5, 2,696 m2; Sheet no. 30,
Parcel 1008, arable land, Cl. 5, 2,786 m2; Sheet no. 30, Parcel
1009, arable land, Cl. 5, 2,786 m2; Sheet no. 30, Parcel 1010,
arable land, Cl. 5, 5,573 m2; Sheet no. 30, Parcel 1011, arable
land, Cl. 5, 2,696 m2; Sheet no. 30, Parcel 1012, arable land, Cl.
5, 3,910 m2; Sheet no. 30, Parcel 1017, country farm. Cl. =, 1,666
m2; Sheet no. 30, Parcel 1013,arable land, Cl. 5, 1912 m2; Sheet
no. 30, Parcel 1018, country farm, Cl. =, 784 m2.
Starting price EUR46,235,000.00 in addition to applicable tax.
Lot A3: Pomezia (RM), in "Sughereta", development areas to be
used for the construction of residential multi-storey buildings
and residential towers. N.L.R. of Rome; Sheet no. 30, Parcel
1000, arable land, Cl. 5, 3,680 m2; Sheet no. 30, Parcel 1001,
arable land, Cl. 5, 1,952 m2; Sheet no. 30, Parcel 999, arable
land, Cl. 5, 2,800 m2.
Starting price EUR9,300,000.00 in addition to applicable tax.
Lot F1: Pomezia (RM), in "Sughereta", building plots, occupied by
partly-built residential towers. N.L.R. of Rome: Sheet no. 30,
Parcel 1014, arable land, Cl. 5, 5,573 m2; Sheet no. 30, Parcel
1015, arable land, Cl. 5, 2,696 m2; Sheet no. 30, Parcel 1016,
arable land, Cl. 5, 2,786 m2.
Starting price EUR25,868,000.00 in addition to applicable tax.
Interested parties have until 12:00 a.m. on February 15, 2017, to
submit their bids to the office of Notary Federico Basile in Viale
Liegi 1, Rome.
The sale will be conducted at 12:00 a.m. on February 16, 2017, at
the Notary's office.
Further information and sale procedures is available at
http://www.liquidagest.it
PORTO SAN ROCCO: Feb. 16 Bid Submission Deadline for Complex Set
----------------------------------------------------------------
Paolo D'Agostini, as official receiver of Bankr. Porto San Rocco
s.r.l., in liquidation, is selling the company's property complex,
in addition to certain fittings, located in Muggia
(Trieste), specifically in the Porto San Rocco area, indicated as
follows: 305 property units -- 117 of which used as dwellings or
tourist accommodations and several of which furnished; 11 business
premises, 22 cellars, 152 roofed parking spaces and 3 unroofed
parking spaces, spread over 13 UMIs (Minimal Units of
Intervention), divided into 7 apartment buildings, named from
letter A to letter H, except for letter E.
The complex is sold in accordance with art. 107 of the bankruptcy
law, using a competitive bidding procedure, through private bids
at the starting price of EUR8,542,295.10, EUR6,989,823.79 of
which relating to the housing units -- tourist
accommodations, EUR1,537,471.30 to the non-residential
property units, and EUR15,000.00 to the existing fittings partly
of the housing units, it being specified that the sale rules out
any possibility of the sale of a company or business unit, as a
whole and not on a per unit of measure basis, all as in fact and
in law, as resulting in the 20-year report drawn up by notary
Alfonso Colucci of Rome, and in the report drawn up by the court-
appointed expert of the Bankruptcy, surveyor Sergio Cruciani.
The complex is sold unencumbered by mortgages and other adverse
entries and registrations, with the charges thereof borne by the
successful bidder.
The bid should be enclosed in a sealed envelope and submitted by
11:00 a.m. on February 16, 2017, at the office of notary Alfonso
Colucci, in Via Emanuele Gianturco no. 1 Rome. The sealed bid
should also include a bank draft/bank drafts made payable to Avv.
Paolo D'Agostini, official receiver of Bankr. Porto San Rocco
s.r.l. (no. 189/15 Court of Rome), equal to 10% of the bid
amount, as a deposit, on pain of nullity. The envelopes shall be
opened on the same day at 12:00 a.m.; should more than one
envelope containing the purchase bid be submitted, the tender
among the bidders shall take place immediately before notary
Alfonso Colucci; in the tender, if any, the minimum bid increment
shall be EUR50,000.00.
The conditions and procedures for the submission of the bids, for
the tender, if any, among the bidders, and for the sale, the
contract of which shall be concluded within 45 days from the final
award by notary Alfonso Colucci, are indicated in the application
filed on October 28, 2016, and approved by the Bankruptcy Judge by
order dated November 8, 2016.
The documents are made available to the interested parties on the
website of the procedure, www.fallportosanrocco.it information
may be requested from the official receiver Paolo D' Agostini,
via Girolamo da Carpi no. 6, Rome, tel. 06-3227850, or
from Claudio Santini, tel 06-80693292.
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N E T H E R L A N D S
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CONISTON CLO: Moody's Affirms B3 Rating on Class F Notes
--------------------------------------------------------
Moody's Investors Service has upgraded 2 classes of notes issued
by Coniston CLO B.V. and affirmed 4 classes of notes of the same
transaction.
EUR56.7 million (current outstanding balance of EUR31.3M) Class A2
Senior Floating Rate Notes due 2024, Affirmed Aaa (sf); previously
on Jul 14, 2016 Affirmed Aaa (sf)
EUR24.6 million Class B Deferrable Interest Floating Rate Notes
due 2024, Affirmed Aaa (sf); previously on Jul 14, 2016 Affirmed
Aaa (sf)
EUR24 million Class C Deferrable Interest Floating Rate Notes due
2024, Upgraded to Aaa (sf); previously on Jul 14, 2016 Upgraded to
Aa1 (sf)
EUR17.6 million Class D Deferrable Interest Floating Rate Notes
due 2024, Upgraded to A2 (sf); previously on Jul 14, 2016 Upgraded
to A3 (sf)
EUR19.6 million Class E Deferrable Interest Floating Rate Notes
due 2024, Affirmed Ba3 (sf); previously on Jul 14, 2016 Affirmed
Ba3 (sf)
EUR6.4 million (current outstanding balance of EUR3.8M) Class F
Deferrable Interest Floating Rate Notes due 2024, Affirmed B3
(sf); previously on Jul 14, 2016 Affirmed B3 (sf)
RATINGS RATIONALE
The main driver of the rating actions is the continued
deleveraging of the transaction since the last rating action in
July 2016 through paydown of the Class A2 notes following
repayments on the underlying portfolio. In addition, the November
2016 trustee report listed a principal account balance of EUR 9.4
million for distribution to Class A2 noteholders in January 2017.
On the October 2016 payment date, the Class A2 notes paid down by
EUR 15.7 million, as a result of which the overcollateralisation
(OC) ratios of the senior classes of rated notes have increased
significantly. According to the trustee report of 30 November
2016, the Class A, Class B, Class C and Class D OC ratios are
reported at 404.83%, 226.81%, 158.72%, and 130.08% respectively,
compared to May 2016 levels of 276.59%, 192.35%, 148.28% and
126.96%.
The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analysed the underlying collateral pool as having a
performing par and principal proceeds of EUR 125.4 million,
defaults of EUR 13.1 million, a weighted average default
probability of 19.22% (consistent with a WARF of 3018 over a
weighted average life of 3.65 years), a weighted average recovery
rate upon default of 45.16% for a Aaa liability target rating, a
diversity score of 20 and a weighted average spread of 3.61%.
The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. Moody's generally applies recovery rates for CLO
securities as published in "Moody's Approach to Rating SF CDOs".
In some cases, alternative recovery assumptions may be considered
based on the specifics of the analysis of the CLO transaction. In
each case, historical and market performance and a collateral
manager's latitude to trade collateral are also relevant factors.
Moody's incorporates these default and recovery characteristics of
the collateral pool into its cash flow model analysis, subjecting
them to stresses as a function of the target rating of each CLO
liability being analysed.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in October 2016.
Factors that would lead to an upgrade or downgrade of the ratings:
In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate for
the portfolio. Moody's ran a model in which it reduced the
weighted average recovery rate by 5%; the model generated outputs
that were unchanged compared to base-case results for Classes A2,
B and C and within one or two notches of the base-case results for
Classes D, E and F.
This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of uncertainty about credit conditions in the
general economy. CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behaviour and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.
Additional uncertainty about performance is due to the following:
1) Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager or
be delayed by an increase in loan amend-and-extend restructurings.
Fast amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.
2) Recoveries on defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's over-
collateralisation levels. Further, the timing of recoveries and
the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's analysed
defaulted recoveries assuming the lower of the market price or the
recovery rate to account for potential volatility in market
prices. Recoveries higher than Moody's expectations would have a
positive impact on the notes' ratings.
3) Around 12.5% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates. As part of its base case, Moody's has stressed
large concentrations of single obligors bearing a credit estimate
as described in "Updated Approach to the Usage of Credit Estimates
in Rated Transactions," published in October 2009 and available at
http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_120461.
In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.
METINVEST BV: High Court Grants Order to Convene Scheme Meeting
---------------------------------------------------------------
Interfax-Ukraine reports that the High Court of Justice of England
and Wales on Jan. 17 granted an order to convene the proposed
meeting of the holders of the notes of Metinvest B.V. (the
Netherlands), the parent company of Mentinvest Group, and the
proposed meeting of the lenders under the PXF Facilities for the
purposes of considering and, if thought fit, approving the
restructuring scheme, the company has said on the Irish Stock
Exchange (ISE).
The company said that the notes scheme meeting will be held at the
offices of Allen & Overy LLP, One Bishops Square, London on Feb.
6, 2017 commencing at 10.00 a.m. (London time),
Interfax-Ukraine relates.
According to Interfax-Ukraine, the scheme will also be subject to
the approval of the requisite majority of PXF scheme creditors at
the PXF scheme meeting and the subsequent approval of the court.
About Metinvest B.V.
Svitlana Romanova, in her capacity as foreign representative of
Metinvest B.V., filed a Chapter 15 bankruptcy petition in the
U.S. Bankruptcy Court for the District of Delaware (Bankr. D.
Del. Case No. 16-10105) on Jan. 13, 2016, in the United States,
seeking recognition of a scheme of arrangement under part 26 of
the English Companies Act 2006 currently pending before the High
Court of Justice of England and Wales.
The Debtor and its subsidiaries claim to be the largest
vertically integrated mining and steel business in Ukraine.
Joseph M Barry, Esq., at Young Conaway Stargatt & Taylor, LLP,
counsel for the petitioner, said the Metinvest Group has
struggled in recent years in light of the ongoing political
turmoil in Ukraine since the end of 2013, which has negatively
impacted Ukraine's economy and the protracted slump in prices for
steel products, coal, and iron ore throughout much of 2014 and
2015.
The petitioner has engaged Young, Conaway, Stargatt & Taylor and
Allen & Overy LLP as her as counsel.
Judge Laurie Selber Silverstein has been assigned the case.
MULTICYCLE: New Owner Found Following Bankruptcy
------------------------------------------------
Bike Europe reports that in an update on the bankruptcy of bicycle
manufacturer Multicycle, the receivers' law firm JPR lawyers
reported to have found a new owner for the company.
Shortly after the bankruptcy last November as Bike Europe
reported, JPR lawyers already reported to have found candidates
for a takeover, but did not want to mention any names. JPR
lawyers expects to be able to reveal the name of the new owner
soon, Bike Europe discloses.
"In the past two months we have been discussing the takeover of
all Multicycle's business activities with a number of interested
parties," Bike Europe quotes JPR lawyers as saying on its website.
"With one of these parties we have reached an agreement which is
subject to a number of conditions." Unfortunately, it is not
mentioned in the statement which conditions are still part of the
negotiations, according to Bike Europe.
The bicycle factory of Multicycle was part of the bankruptcy which
included all activities of the holding company Multicycle
Inventures Group BV, as Bike Europe reported. Whether the bicycle
factory in the town of Ulft will remain operational or not under
the new ownership is still unclear, Bike Europe notes. It is even
unknown if this is one of the conditions for the take-over, Bike
Europe states.
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R U S S I A
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INTER RAO: Moody's Raises Corporate Family Rating to Ba1
--------------------------------------------------------
Moody's Investors Service has upgraded to Ba1 from Ba2 the
corporate family rating (CFR) of Inter RAO, PJSC the Russian state
controlled major electric utility. Concurrently, the probability
of default rating has been upgraded to Ba1-PD from Ba2-PD. The
outlook on the ratings is negative. Inter RAO's CFR is now at the
same level as the Russian sovereign rating of Ba1 with a negative
outlook.
RATINGS RATIONALE
The rating upgrade to Ba1 reflects the company's track record of
reporting strong credit metrics since the beginning of 2015, and
our expectation that the company's credit profile will continue
strengthening in the next 12-24 months. As of June 30, 2016 the
company's adjusted debt/EBITDA reduced to 1.0x (2015: 1.3x) and
it's adjusted fund flow from operations (FFO)/Debt improved to
around 84% (2015: 64%). This is underpinned by ongoing
commissioning of new capacities, built under capacity supply
agreements with the Russian state envisaging a stream of payments
over the next 10 years, provided Inter RAO's plants remain
available, that would enable the company to earn a predictable
return on its recent investments.
This new capacity will generate additional cash flow and enhance
cash flow stability in future years. The strong metrics are also
underpinned by the recent steps taken to improve operating
efficiency, which included decommissioning of inefficient power
generation assets, sales of stakes of less profitable foreign
assets in Armenia and Georgia, and tight cost control.
The strengthening of Inter RAO's financial metrics in the next 12-
18 months will also be underpinned by a reduction in capital
expenditure to maintenance levels following the completion of the
investment cycle. This will reduce the need for new debt which,
coupled with recent debt maturities, will result in a reduction in
Inter RAO's debt/EBITDA below 1.0x. Moody's also expects Inter RAO
to generate positive free cash flow in the next 12-18 months, its
FFO interest coverage ratio to stay above 10x, and its FFO/debt to
stay above 90%.
Nevertheless, Inter RAO's rating remains constrained by the
challenging economic environment in Russia expected in the next
12-18 months, with anemic growth of gross domestic product
expected in this period. This weak environment will constrain
growth in electricity consumption in the country, which Moody's
forecasts at the level of 1% per annum over the next 18 months.
The agency also notes the surplus capacity in the domestic
electricity markets which has a potential to create downward price
pressure.
At the same time, the regulatory framework for the Russian utility
sector is relatively immature with above average risks of
political interference. However, Moody's notes several positive
changes in the structure of the electricity market structure and
regulatory framework in the past 12 months, such as the
introduction of long-term capacity auctions which set prices for
capacity for 3 years. These prices are adjusted annually by the
consumer price index (CPI)-1% to protect against inflation.
More positively, Inter RAO's rating continues to reflect the
company's strong position in Russia's power market and diversified
business profile. With 28.2 gigawatts of installed capacity
(excluding foreign assets) as of September 30th 2016, the company
is the third largest power generation company in Russia with
around 12% of installed capacity and domestic electricity output.
Inter RAO's retail electricity sales business is the largest in
Russia (with a 15% market share). Moody's particularly notes Inter
RAO's effective monopoly of Russia's electricity export and import
operations. Although limited by volumes and volatile, these
operations are important both as a natural hedge for Inter RAO's
foreign-currency debt obligations and as an instrument of the
state's energy policy.
Given its ownership by Russian state-controlled entities, Inter
RAO is a Government Related Issuer. Its CFR reflects a view of its
standalone credit quality, reflected in a baseline credit
assessment of ba1 (upgraded from ba2), and an assumption of
"strong" support being provided by its ultimate owner, the
government of the Russian Federation, should this be required.
RATIONALE FOR THE NEGATIVE OUTLOOK
The negative outlook on Inter RAO's ratings mirrors the negative
outlook of Russia's sovereign rating and reflects the fact that
Moody's does not currently envision that Inter RAO's rating could
be higher than that of the government.
WHAT COULD CHANGE THE RATINGS UP/DOWN
Positive pressure on Inter RAO's ratings is unlikely at present
given the negative outlook on the sovereign rating of Russia and
the company's exposure to the weak domestic macroeconomic
environment.
Moody's could change the outlook on the ratings to stable if
Moody's were to change the outlook on Russia's government bond
rating to stable, provided there was no material deterioration in
company-specific factors, including operating and financial
performance, and liquidity.
Downward rating pressure will emerge if Russia's sovereign rating
were to be downgraded. Downward pressure on Inter RAO's rating
could also develop if the company is not able to strengthen its
cash flow generation as planned and/or the company engages in
debt-funded acquisitions or more ambitious capital expenditure
leading to a significantly weaker financial profile.
The methodologies used in these ratings were Unregulated Utilities
and Unregulated Power Companies published in October 2014, and
Government-Related Issuers published in October 2014 .
Inter RAO, PJSC is a Russian major electric utility engaged in
thermal electricity generation and retail electricity sales in
Russia, cross-border electricity trading and electric utility
operations abroad. Inter RAO generated revenue of RUB805.3 billion
($13.1 billion) in 2015. Inter RAO is controlled by the Russian
government through several state-controlled entities who own over
50% of the company as of October 31, 2016.
RUSFINANCE BANK: S&P Affirms 'BB+/B' Counterparty Credit Ratings
----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+/B' long- and short-term
counterparty credit ratings on Rusfinance Bank and its 'ruAA+'
Russia national scale rating. The outlook remains negative.
"We assess Rusfinance's business position as moderate. This is
supported by the bank's specialization in providing car and point-
of-sale (POS) loans in Russia, where it holds the No. 3 and No. 5
market positions, respectively, by loans outstanding. However, it
is counterbalanced by Rusfinance's only modest market share of
about 1% of the Russian retail lending market as of year-end 2016,
which is dominated by Sberbank and VTB. Rusfinance's business
position is also constrained by challenging economic conditions in
Russia, which have weighed on the bank's new business generation,
profitability, and asset quality over the past three years," S&P
said.
With total assets of Russian ruble (RUB) 90 billion (about $1.4
billion) as of Dec. 1, 2016, under Russian accounting standards,
Rusfinance ranks 67th among Russian banks.
S&P assess Rusfinance's capital and earnings as very strong,
reflecting S&P's view of the bank's strong capital and earnings'
structure. This assessment primarily reflects the fact that the
bank's equity is made up of Tier 1 capital. S&P expects the
bank's risk-adjusted capital (RAC) ratio, as calculated by S&P
Global Ratings, to remain comfortably above 15% in the next 12-24
months. It was 16.4% at year-end 2015. In the first nine months
2016, the bank reported RUB1.2 billion profit under International
Financial Reporting Standards, translating into return on assets
(ROA) of 1.7% and return on equity (ROE) of 6.8%.
The long-term counterparty credit rating is three notches higher
than the bank's SACP of 'b+', reflecting S&P's current view of
Rusfinance's strategic importance within Societe Generale.
Despite business contraction in 2014-2016, Russia remains one of
Societe Generale's largest international markets, and the group is
committed to supporting its Russian operations.
The negative outlook on Rusfinance reflects the negative trend for
economic risk in the Russian banking sector and the pressure this
will exert on the bank's capitalization and profitability over the
next 12 months.
S&P would lower the ratings over the next 12 months if its
forecast RAC ratio for Rusfinance falls below 15%. This could
happen due to operating losses caused by contracting loan volumes,
narrowing margins, a significant increase in new loan-loss
provisions, or payment of large dividends.
S&P would also consider a negative rating action if it observed
diminishing strategic interest and support from Societe Generale.
Rusfinance is closely integrated via its parent Rosbank within
Societe Generale and many of the subsidiary's credit strengths
derive from ongoing and extraordinary parental support. There is
a track record of such support being provided, and S&P would
expect such support would be provided in the event of stress.
S&P could revise the outlook to stable over the next 12 months
should operating conditions for the Russian banking sector as a
whole stabilize, notably if the economic risk trend turned stable.
An outlook revision to stable would also depend on Rusfinance
maintaining its business and financial profiles, and Societe
Generale continuing to provide current levels of support.
===========
T U R K E Y
===========
TURKIYE VAKIFLAR: Fitch Assigns 'BB+' Rating to Tier 2 Notes
------------------------------------------------------------
Fitch Ratings has assigned Turkiye Vakiflar Bankasi T.A.O.' s
(Vakifbank; BBB-/Negative/bbb-) planned issue of Basel III-
compliant Tier 2 capital notes an expected rating of 'BB+(EXP)'.
The size of the issue is not yet determined but is likely to be up
to USD650 mil.
The final rating is subject to the receipt of the final
documentation conforming to information already received by Fitch.
The notes are expected to qualify as Basel III-complaint Tier 2
instruments and contain contractual loss absorption features,
which will be triggered at the point of non-viability of the bank.
According to the draft terms, the notes are subject to permanent
partial or full write-down upon the occurrence of a non-viability
event (NVE). There are no equity conversion provisions within the
terms.
An NVE is defined as occurring when the bank has incurred losses
and has become, or is likely to become, non-viable as determined
by the local regulator, the Banking and Regulatory Supervision
Authority (BRSA). The bank will be deemed non-viable when it
reaches the point at which either the BRSA determines that its
operating licence is to be revoked and the bank liquidated, or the
rights of Vakifbank's shareholders (except to dividends), and the
management and supervision of the bank, should be transferred to
the Savings Deposit Insurance Fund on the condition that losses
are deducted from the capital of existing shareholders.
The notes have an expected 10-year maturity and a call option
after five years.
KEY RATING DRIVERS
The notes are rated one notch below Vakifbank's Viability Rating
(VR) of 'bbb-' in accordance with Fitch's "Global Bank Rating
Criteria". The notching includes zero notches for incremental
non-performance risk relative to the VR and one notch for loss
severity. Extraordinary state support is not factored into the
rating as Fitch believes sovereign support cannot be relied upon
to extend to bank junior debt obligations in Turkey.
Fitch has applied zero notches for incremental non-performance
risk, as the agency believes that write-down of the notes will
only occur once the point of non-viability is reached and there is
no coupon flexibility prior to non-viability.
The one notch for loss severity reflects Fitch's view of below-
average recovery prospects for the notes in case of an NVE. Fitch
has applied one notch, rather than two, for loss severity, as
partial, and not solely full, write-down of the notes is possible.
In Fitch's view, there is some uncertainty as to the extent of
losses the notes would face in case of an NVE, given that this
would be dependent on the size of the operating losses incurred by
the bank and any measures taken by the authorities to help restore
the bank's viability.
RATING SENSITIVITIES
As the notes are notched down from Vakifbank's VR, their rating is
primarily sensitive to a change in the VR. The notes' rating is
also sensitive to a change in notching due to a revision in
Fitch's assessment of the probability of the notes' non-
performance risk relative to the risk captured in Vakifbank's VR,
or in its assessment of loss severity in case of non-performance.
The Negative Outlooks on the Long-Term Issuer Default Ratings
(IDRs) reflect the potential both for Vakifbank's VR to be
downgraded in case of a significant weakening of the operating
environment and for the Support Rating Floor to be revised
downwards if the sovereign is downgraded.
Vakifbank's ratings are:
Long-Term Foreign and Local Currency IDRs: 'BBB-'; Negative
Outlook
Short-Term Foreign and Local Currency IDRs: 'F3'
National Long-Term Rating: 'AAA(tur)'; Stable Outlook
Viability Rating: 'bbb-'
Support Rating: '2'
Support Rating Floor: 'BBB-'
Long-term senior unsecured rating: 'BBB-'
Short-term senior unsecured rating: 'F3'
Subordinated debt rating: 'BB+'
T2 capital notes rating: 'BB+(EXP)'
===========================
U N I T E D K I N G D O M
===========================
ALL LEISURE: G Adventures Acquires Just You and Travelsphere
------------------------------------------------------------
TravelWeekly reports that G Adventures has confirmed it has
acquired All Leisure brands Travelsphere and Just You.
TravelWeekly relates that a spokesman for Travelsphere and Just
You said the two tour operators were bought from Grant Thornton,
which had been brought in as administrators.
According to the report, the deal was described as a 'pre-pack'
which are done to save insolvent businesses but which can be
controversial when it is used to sell to existing directors.
The deal means 200 jobs at the company's Market Harborough head
offices had been saved. G Adventures has agreed to retain the
offices for a year, the report says.
Staff were told on Jan. 3 about the deal as speculation mounted
over the future of All Leisure after it emerged Travelsphere and
Just You were operating under the G Adventures Atol, according to
TravelWeekly.
TravelWeekly says the news came after it was announced that All
Leisure Group had ceased trading with 13,000 passengers booked on
its Voyages of Discovery and Swan Hellenic cruises.
"Travelsphere and Just You are both leaders in their fields and we
are all really excited that they have become part of the G
Adventures family. We are now able to offer an even wider range
of escorted tours right across the world and to suit all age
ranges," the report quotes Bruce Poon Tip, founder of G
Adventures, as saying. "We will be working hard to ensure that the
loyal customers of Just You and Travelsphere continue to enjoy the
award-winning tours that both brands organise.
"The future looks exceptionally bright and we look forward to
expanding the range of tours for both Just You and Travelsphere."
G Adventures' acquisition of Travelsphere and Just You opens up an
affluent, older market for a brand that has to date been more
associated with younger clientele, TravelWeekly notes.
About All Leisure
UK-based All Leisure Holidays Ltd is engaged in cruise ship
operation and tour operating. The Company operates through two
segments: Cruising (including the Voyages of Discovery, Swan
Hellenic and Hebridean Island Cruises brands) and Tour Operating
(including the Travelsphere, Just You and Discover Egypt brands).
The Company's Travelsphere and Just You brands offered escorted
tours to a range of destinations across the world. The Company's
Hebridean Island Cruises brand operates five star cruise vessel
Hebridean Princess. Its Voyages of Discovery brand operates in the
United Kingdom, the United States, Canada, Australia, New Zealand
and South Africa. The Company's Voyages of Discovery, Swan
Hellenic and Hebridean brands offer destination-led cruises to a
range of countries. Discover Egypt brand offers package holidays
to Egypt, including cruises and excursions on the River Nile.
All Leisure Holidays Ltd., a subsidiary of All Leisure Group PLC,
entered into Administration on Jan. 4, 2017. Grant Thornton UK LLP
has been appointed as the Administrator.
BERNARD MATTHEWS: Lifeboat Fund Submits GBP75MM Pension Claim
-------------------------------------------------------------
Josephine Cumbo and Leila Haddou at The Financial Times report
that the pensions lifeboat is pushing to recover GBP75 million
from the administrators of Bernard Matthews, or nearly four times
the pension deficit first flagged at the turkey producer.
Bernard Matthews was sold in September to Ranjit Boparan, owner of
the 2 Sisters Food Group, under a "pre-pack" administration deal
where a company's assets, but not liabilities, are passed to new
owners, the FT says.
The FT relates that around 2,000 jobs were saved as part of the
"pre-pack", which is the subject of a competition probe. But 700
Bernard Matthews' employees now face cuts to their retirement
income as a consequence of its pension scheme passing to the
lifeboat fund, according to the FT.
In October, administrators for Bernard Matthews estimated the
funding shortfall in the company's defined benefit pension scheme
at around GBP20 million, the report notes.
But the Pension Protection Fund, the industry-backed body that
acts as a safety net for the pensions of insolvent companies, is
to lodge a claim for GBP75 million, says the FT. This is the
"buyout" deficit, or what an insurer might expect to charge to
take over paying the pensions in full, not at the reduced PPF
rate.
"In the case of the insolvency of an employer of a qualifying
scheme, the PPF will always make a claim for the full Section 75
debt," the PPF, as cited by the FT, said. "This is standard
practice as in many cases, at the time of insolvency, the amount
of money that could be recovered is still unknown."
The FT says the development came as a report prepared for MPs in
October on the deal warned the rescue plan for Bernard Matthews
was "carefully crafted" to benefit secured creditors and company
controllers to the detriment of the pension scheme.
Under the terms of the administration, sale proceeds would be used
to make a full payment of GBP46.4 million to lenders Wells Fargo
Capital Finance and PNC Financial Services, the report notes.
Rutland Partners, the former owners of Bernard Matthews, were also
likely to receive GBP39 million from the sale, the FT discloses.
The pension scheme has a secured debt claim of GBP17.5 million but
won't recover any money under this security, said Deloitte, the
administrators, the FT relays.
The FT relates that the scheme is at best expected to receive 1p
in the pound, said Prem Sikka, a professor of accounting at the
Essex university, in the report to MPs.
In November, the UK's competition watchdog announced it was
investigating the sale to see whether the deal may have led to a
"substantial" lessening of competition in the UK, the FT adds.
Bernard Matthews is Europe's biggest turkey producer.
FRAMEFREE GLOBAL: February 24 Claims Filing Deadline Set
--------------------------------------------------------
An Extraordinary General Meeting of the Members of Framefree
Global Limited was held on January 3, 2017, at which a Special
Resolution was passed that the Company be subject to a creditors'
winding up. At a duly convened meeting of the creditors called
under Article 160 of the Companies (Jersey) Law 1991 Alan John
Roberts and James Robert Toynton of Grant Thornton Limited, Third
Floor, Kensington Chambers, 46/50 Kensington Place, St. Helier,
JE1 1ET were appointed Joint liquidators by the creditors under
Article 161 thereof.
All creditors of the Company are required on or before February
24, 2017, to send their names and addressed and particulars of
their claims to the Joint Liquidators together with supporting
documentation, and all persons indebted to the Company are
required to settle with the Joint Liquidators by the said date.
NEMEAN BIDCO: Moody's Assigns (P)B1 CFR, Outlook Stable
-------------------------------------------------------
Moody's Investors Service assigned a provisional (P)B1 Corporate
Family Rating (CFR) to Nemean BidCo Limited. Moody's has also
assigned a (P)B1 rating to the proposed GBP425 million long-term,
senior secured bonds, to be issued by Nemean BondCo plc (BondCo),
which is backed by the parent, Nemean BidCo Limited. The outlook
is stable for both issuers. This is the first time that Moody's
has rated Nemean and Nemean BondCo plc.
Moody's issues provisional ratings in advance of the final sale of
securities and these ratings reflect Moody's preliminary credit
opinion regarding the transaction only. Upon a conclusive review
of the final versions of all the documents and legal opinions,
Moody's will endeavour to assign definitive corporate family and
senior secured ratings. A definitive rating may differ from a
provisional rating. The provisional ratings and the stable outlook
assigned to Nemean assume a successful issuance of the bond.
These ratings are contingent upon Nemean's successful completion
of a proposed GBP425 million senior secured notes offering,
whereby Nemean will use the proceeds from the bond issuance to
partially fund the acquisition of NewDay Group Holding S.a.r.l,
the parent company of NewDay Group (NewDay). Nemean will enter
into a new GBP30 million super senior revolving credit facility,
maturing in October 2022.
RATINGS RATIONALE
Established in 2001, NewDay is a consumer finance provider,
specialising in the credit card market and exclusively operating
in the UK. NewDay focuses on two core market segments. The first
segment is near-prime customers, who are served with own-brand
credit cards marketed directly to consumers that find it difficult
to open a credit card account with a mainstream provider either
because they lack a credit history, are on a low income, are self-
employed or are trying to restore their credit score. The second
segment is made of prime customers who are served with co-branded
credit cards for which NewDay partners with high street and online
retailers including some of the UK's biggest names.
The CFR of (P)B1 is supported by NewDay's defendable franchise and
modest market share in the credit card sector, adequate corporate
governance and management quality, solid risk management practices
as well as strong earnings generation capacity. Moody's also sees
constraints to the rating resulting from the firm's monoline
business model, its negative tangible common equity (TCE) on
tangible managed assets (TMA) ratio, material key relationship
concentration in the co-brand business, full reliance on wholesale
funding and weak asset quality metrics reflecting its focus on the
near prime segment.
With approximately 2.3% market share in the UK credit card market
(7.2% and 26% in the near-prime and co-brand segment
respectively), NewDay can be considered a marginal player. However
Moody's believes that the company has a defendable position in the
co-brand credit and store cards segment and a long track record in
the near-prime sector. These elements, combined with the high
barriers to entry that characterize the sector, should help the
company to maintain its position in the market.
NewDay's success depends on the ability to correctly price the
risks it takes, since its lending is not collateralized. As such,
a robust risk management system is necessary. Moody's believes
that the company has satisfactory risk management and monitoring
practices that have further improved over the last two years and
the agency takes comfort from the Financial Conduct Authority's
supervision.
NewDay has the ability to generate strong profits over the next
couple of years owing to a strengthening of its organizational
structure over the past years, improved contractual terms in the
co-brand segment and relatively low funding costs. Moody's expects
NewDay to increase its focus on the near-prime segment over the
next years, owing to exiting or reducing business levels by its
main competitors and favourable market conditions and operating
environment. This strategy should further support profitability.
These factors are partly offset by the following risks. First,
NewDay is a monoline and as such is characterized by significant
earnings concentration. Should for any reason its lending business
be disrupted, the company's prospects could deteriorate. Secondly,
its size is relatively limited compared to the other players in a
market which is characterised by high volumes. This makes NewDay
more sensitive to aggressive competitive strategies of larger
players should these materialise.
The company's CFR is primarily constrained by its weak capital
position: following the transaction and because of the large
amount of goodwill generated, according to the agency's
calculations, the firm's TCE over TMA ratio should go down to -8%
from 3% of end-2015. Although Moody's believes that, in a
bankruptcy scenario, a negative TCE ratio would imply larger
losses for bondholders, a negative TCE ratio is compatible with a
B1 CFR for several reasons. Although the company does lending, the
duration of its receivable book is short, with an average maturity
of two to three years. Credit card issuers and, more in particular
companies that deal with near prime and subprime customers, are
characterized by very high risk adjusted margins, which are the
first line of defense against credit losses. Despite the reduction
in UK base rates, margins have been relatively stable. Finally,
Moody's expects that the TCE ratio should turn positive in two
years.
NewDay's funding structure is relatively simple and largely based
on secured medium term funding. The liquidity risk management is
comparatively sophisticated and we consider its stress testing
framework as satisfactory. These elements only partly mitigate the
full reliance on wholesale funding, which is confidence-sensitive,
especially for a company which operates in an inherently risky
business.
As of end-2015, NewDay reported a 9.7% problem loans over gross
loans ratio. While this indicates weak asset quality, Moody's
believes that charge-off rates are more meaningful to assess
NewDay's risk profile. Positively, the co-brand prime book has a
charge off rate which is in line with the larger players in the
sector and with Moody's UK Credit Card benchmark. On the other
hand, the charge-off for the near prime portfolio is much higher.
The agency thinks that the strongest protection for the
deterioration in the credit card receivables book is in solid
underwriting criteria, effective risk pricing and a disciplined
risk management framework and, over the last two years, NewDay has
showed an improvement in all these factors. However Moody's
cautions that maintaining strong pre-provision profitability is
essential to mitigate against the high charge off rate coming from
the near prime book.
RATIONALE FOR THE STABLE OUTLOOK
The outlook on Nemean and BondCo's ratings is stable, reflecting
the company's earnings prospects and the agency's expectation that
the company will improve its solvency profile.
WHAT COULD CHANGE THE RATINGS UP/DOWN
Nemean's CFR could be upgraded because of: (1) an increase in
earnings diversification; (2) a decrease in key relationship
concentrations; (3) improvement in asset quality metrics; and (4)
improvement in its TCE ratio, going up to 4%.
The rating could be downgraded due to: (1) higher than expected
deterioration in asset quality; (2) material reduction in
capitalisation; (3) a not anticipated decline in profitability;
and (4) indications of weaker risk management standards.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Finance
Companies published in December 2016.
LIST OF ASSIGNED RATINGS
Assignments:
Issuer: Nemean BidCo Limited
LT Corporate Family Rating, Assigned (P)B1
Issuer: Nemean BondCo plc
BACKED Senior Secured Regular Bond/Debenture, Assigned (P)B1
Outlook Actions:
Issuer: Nemean BidCo Limited
Stable Outlook Assigned
Issuer: Nemean BondCo plc
Stable Outlook Assigned
NORTHAMPTONSHIRE COUNTY: Facing Substantial Risk of 'Insolvency'
---------------------------------------------------------------
Northamptonshire Telegraph reports that Northamptonshire County
Council's financial position is 'grave' and it is at 'substantial
risk' of becoming insolvent, another authority has claimed.
According to Northamptonshire Telegraph, Daventry District Council
(DDC) is set to discuss its consultation response to the county
council's draft budget, medium term financial plan and council
plan, at its strategy group meeting on Jan. 18.
Northamptonshire Telegraph says the draft response, which could be
altered before being approved by councillors, sets out a series of
concerns DDC has about the county's budget and planning. It is
accompanied by a report to be seen by the district councillors.
The report, according to Northamptonshire Telegraph, stated: "Due
to a combination of failures to deliver previous savings and
further cost pressures, NCC has great challenges in balancing its
budget.
"It is also running is reserves at a very low level."
Northamptonshire Telegraph relates that DDC said it appears as
though the county council only avoided running out of reserve
money this financial year by topping up its budget with capital
receipts. This would normally be unlawful, but NCC is taking
advantage of a temporary permission from the Secretary of State
for local authorities to use capital receipts in this way.
In order to continue using money this way, the Government would
need to extend that permission, and NCC would need to have more
capital items it can sell, Northamptonshire Telegraph notes.
"Overall the financial position can only be summarised as grave,
with it being hard to escape the conclusion that NCC is at
substantial risk of being unable to meet its financial obligations
as they fall due i.e. technical insolvency," DDC's report stated,
according to Northamptonshire Telegraph.
PROVIDE BLUE 2005-2: Fitch Raises Rating on Cl. E Debt to 'BB-sf'
-----------------------------------------------------------------
Fitch Ratings has upgraded Provide Blue 2005-1 and 2005-2 as:
Provide Blue 2005-1 PLC (2005-1):
Class E (ISIN DE000A0E6NY0): upgraded to 'Asf' from 'BBB+sf';
Positive Outlook
Provide Blue 2005-2 PLC (2005-2):
Class D (ISIN DE000A0GHZU5): upgraded to 'Asf' from 'BBBsf';
Positive Outlook
Class E (ISIN DE000A0GHZV3): upgraded to 'BB-sf' from 'Bsf';
Stable Outlook
The transactions are synthetic securitisations referencing
portfolios of residential mortgage loans originated by BHW
Bausparkasse AG (BHW).
KEY RATING DRIVERS
Stable Asset Performance
Both transactions have reported improved asset performance over
the past 12 months with three months plus arrears and loans to
bankrupt borrowers decreasing to EUR4.1 mil. (from EUR4.7 mil.)
for 2005-1 and to EUR11.8 mil. (from EUR14.6 mil.) for 2005-2.
Low Additional Loss Allocation, Increasing CE
The last three (2005-1) and four (2005-2) reporting periods saw
additional losses of EUR0.6 mil. and EUR0.5 mil. allocated to
2005-1 and 2005-2, respectively, taking total losses to
EUR8.6 mil. and EUR17.6 mil. Given repayments have been stronger
relative to the loss attribution, credit enhancement as a
percentage of the outstanding balance increased to 5.6% as of
September 2016 from 4.8% for the 2005-1 class E notes. For 2005-
2, as of October 2016, it increased to 1.0% from 0.9% for the
class E notes and to 5.4% from 4.5% for the class D notes.
Tail Risks Limit Upgrades
Credit enhancement is relatively low in absolute terms.
Therefore, a limited number of additional losses beyond Fitch's
expectations could significantly reduce the available credit
enhancement. To address this risk, the ratings were not upgraded
to the extent suggested by Fitch's rating model.
RATING SENSITIVITIES
Performance is dependent on the level of losses following the
borrowers' defaults and recovery. Fitch expects continued robust
performance of German mortgage loans, but an unexpectedly sharp
deterioration of economic fundamentals could accelerate loss
allocation towards the class F notes (2005-1) and the class E
notes and the threshold amount (2005-2), adversely affecting
credit enhancement for the junior notes and resulting in a
downgrade.
In addition, for seasoned portfolios a stronger reduction of the
reference claim portfolio relatively to additional losses being
attributed may increase credit enhancement and potentially support
upgrades across the transactions. As this is a likely scenario,
the Outlooks on the 2005-1 class E and the 2005-2 class D are
Positive.
PROVIDE BLUE 2005-1: Fitch Corrects Jan. 13 Rating Release
----------------------------------------------------------
This commentary replaces the version published on January 13, 2017
to correct reported loss figures for Provide Blue 2005-1.
Fitch Ratings has upgraded Provide Blue 2005-1 and 2005-2 as:
Provide Blue 2005-1 PLC (2005-1):
Class E (ISIN DE000A0E6NY0): upgraded to 'Asf' from 'BBB+sf';
Positive Outlook
Provide Blue 2005-2 PLC (2005-2):
Class D (ISIN DE000A0GHZU5): upgraded to 'Asf' from 'BBBsf';
Positive Outlook
Class E (ISIN DE000A0GHZV3): upgraded to 'BB-sf' from 'Bsf';
Stable Outlook
The transactions are synthetic securitisations referencing
portfolios of residential mortgage loans originated by BHW
Bausparkasse AG (BHW).
KEY RATING DRIVERS
Stable Asset Performance
Both transactions have reported improved asset performance over
the past 12 months with three months plus arrears and loans to
bankrupt borrowers decreasing to EUR4.1 mil. (from EUR4.7 mil.)
for 2005-1 and to EUR11.8 mil. (from EUR14.6 mil.) for 2005-2.
Low Additional Loss Allocation, Increasing CE
The last three (2005-1) and four (2005-2) reporting periods saw
additional losses of EUR0.2 mil. and EUR0.5 mil. allocated to
2005-1 and 2005-2, respectively, taking total losses to
EUR8.2 mil. and EUR17.6 mil. Given repayments have been stronger
relative to the loss attribution, credit enhancement as a
percentage of the outstanding balance increased to 5.6% as of
September 2016 from 4.8% for the 2005-1 class E notes. For 2005-
2, as of October 2016, it increased to 1.0% from 0.9% for the
class E notes and to 5.4% from 4.5% for the class D notes.
Tail Risks Limit Upgrades
Credit enhancement is relatively low in absolute terms.
Therefore, a limited number of additional losses beyond Fitch's
expectations could significantly reduce the available credit
enhancement. To address this risk, the ratings were not upgraded
to the extent suggested by Fitch's rating model.
RATING SENSITIVITIES
Performance is dependent on the level of losses following the
borrowers' defaults and recovery. Fitch expects continued robust
performance of German mortgage loans, but an unexpectedly sharp
deterioration of economic fundamentals could accelerate loss
allocation towards the class F notes (2005-1) and the class E
notes and the threshold amount (2005-2), adversely affecting
credit enhancement for the junior notes and resulting in a
downgrade.
In addition, for seasoned portfolios a stronger reduction of the
reference claim portfolio relatively to additional losses being
attributed may increase credit enhancement and potentially support
upgrades across the transactions. As this is a likely scenario,
the Outlooks on the 2005-1 class E and the 2005-2 class D are
Positive.
TALKTALK TELECOM: Fitch Assigns 'BB-' Rating to GPB400MM Notes
--------------------------------------------------------------
Fitch Ratings has assigned TalkTalk Telecom Group PLC's new
GBP400 mil. senior unsecured notes due 2022 a final debt
instrument rating of 'BB-'/Recovery Rating 'RR4'.
Proceeds from the issue were principally used to repay borrowings
under the revolving credit facility and a term loan. The terms of
the issued notes are materially in line with Fitch's assumptions
as detailed in the agency's rating action commentary dated Jan.
10, 2017.
The notes' rating is in line with TalkTalk's Long-Term Issuer
Default Rating (IDR) of 'BB-' as the notes constitute direct,
unconditional and unsecured obligations of the company.
The rating reflects the sustainable market position of TalkTalk as
a niche "value-for-money" operator in the UK telecoms market.
Higher demand for data and greater product penetration represent
top-line growth opportunities. Future cost savings from its
Making TalkTalk Simpler (MTTS) programme, dark fibre extension and
a reduction in wholesale charges should gradually improve the
company's profitability over the next three years.
However, its reliance on regulated BT wholesale products means
TalkTalk's profitability is below the sector average. TalkTalk
has flexibility in balancing network investments and dividend
distributions, but its weak post-dividend free cash flow (FCF)
profile is a rating constraint.
KEY RATING DRIVERS
Niche Value-for-Money Operator
The core strategy of TalkTalk of providing a value-for-money quad-
play service differentiates it from the other fixed-line operators
that have deep financial resources, high-quality network
infrastructure, and in some cases, exclusive access to media
content. Fitch believes revenue growth from price increases is
likely to be limited, given the company's value-for-money pricing
strategy.
However, with the rollout of fibre, the convergence of bundled
products and expected improvements in the regulatory environment,
we expect opportunities, especially in the corporate segment with
growing demand in data, and the on-net segment with higher product
penetration.
Favourable Regulatory Framework
The UK telecom regulator (Ofcom) has a history of strong and pro-
competition regulation in curbing the incumbent's market
influence. The recent move to force a legal separation of
Openreach from BT Group should gradually shift some of the market
power towards operators, such as TalkTalk, which rely on access to
BT's wholesale products. This should increase Openreach's
independence and sustain TalkTalk's market position over the
medium term. Nonetheless, the timing and the magnitude of future
reductions in BT's regulated wholesale prices remains uncertain.
Flexible Financial Policy
TalkTalk has had to rely on external funding sources to maintain
its liquidity profile, because of high capex requirements and
regular dividend distributions. Fitch do not expect TalkTalk will
generate positive FCF in the financial year to March 2017 (FY17)
given outflows for capex, working-capital movements and committed
dividends of GBP150 mil.
However, Fitch believes TalkTalk has the flexibility to manage its
financial policy to accommodate further investments, including in
Fibre-to-the-Premise (FTTP), and dividend distributions, to
maintain a neutral to positive FCF. Opportunistic bolt-on
acquisitions or investments might result in FCF being temporarily
negative and net leverage above its stated target.
Below-Average but Improving Margins
TalkTalk's profitability has been lower than the sector average
with a last-12-month (LTM) EBITDA margin (Fitch-adjusted) of 14.7%
as of end-September 2016. The margin reflects TalkTalk's business
model that is underpinned by regulated wholesale access to BT's
network, and a Mobile Virtual Network Operator (MVNO) agreement
with Vodafone, later transferring to O2, and commercial
arrangements with Sky.
Fitch sees opportunities for further cost savings arising from the
MTTS initiative, extension of dark fibre and potential reduction
in wholesale charges, although execution risk remains in Talk
Talk's plans to meet the company's financial targets.
Cyberattack Drags on Performance Temporarily
TalkTalk lost 95,000 customers (around 3% of its customer base)
following the cyberattack in October 2015 in which 15,000
customers had their bank account details stolen, which it has yet
to recover. Immediately following the attack, the company
incurred exceptional costs of around GBP42 mil., including
measures to bolster online and IT security.
However, Fitch views is that any long-lasting effects are limited
given the mainly positive reception from customers to how the
company dealt with the incident, with TalkTalk's trust score with
customers higher now than it was before the attacks.
DERIVATION SUMMARY
TalkTalk's 'BB' rating reflects the company's established market
position as a value-for-money operator compared with BT Group Plc
(BBB+/Stable), Sky Plc (BBB-/RWP) and Virgin Media Inc
(BB/Stable), which offer quad-play products with their respective
differentiating niches. TalkTalk's network coverage of 96% of the
UK gives it better coverage than Virgin and Sky. TalkTalk's
financial structure is more conservative than Virgin Media, with a
committed financial policy targeting a net debt/EBITDA (as defined
by TalkTalk) of 2.0x.
However, the business model relies on regulated wholesale access
to BT's network, leading to an EBITDA margin below average for
network operators. To generate neutral to positive FCF (post-
dividend), TalkTalk is seeking to balance investment in its
network (including FTTP trials) with regular dividend
distributions. No Country Ceiling, parent/subsidiary or operating
environment aspects impact the rating.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for TalkTalk
include:
-- Revenue CAGR growth of 2.6% for FY17-FY19, driven by a
stabilized broadband subscriber base and steady revenue
growth in corporate and On-net;
-- EBITDA margin improvement to 16.8% by FY19, driven by the
benefits of the MTTS programme, extension of dark fibre and
gross margin improvement from lower BT wholesale prices
-- Combined cash outflows for capex (including investments in
FTTP) and dividends of over GBP300 mil. in FY17, and
GBP250 mil. - GBP300 mil. thereafter?
-- Exceptional items related relocation to new site in
Salford.
RATING SENSITIVITIES
Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
Continued strong operational performance, accompanied by a
financial policy track record in managing FTTP investments and
dividend distributions, leading to positive FCF (pre-dividend) in
high-single digits; comfortable liquidity headroom; and FFO
adjusted net leverage sustainably below 3.3x.
Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
A shift in financial policy weighted towards shareholder
remuneration or a material deterioration in key performance
indicators, leading to FCF (pre-dividend) in low-single digit;
shrinking liquidity headroom; and FFO adjusted net leverage
sustainably above 3.8x.
LIQUIDITY
Improved Liquidity
Adjusted for the refinancing, as of end-September 2016, Fitch
expects TalkTalk to improve its liquidity headroom and have access
to total commitment of RCFs of GBP610 mil. (undrawn GBP 393 mil.)
and debtor securitisation of GBP75 mil. (undrawn GBP12 mil.).
Fitch views TalkTalk's liquidity as satisfactory following the
refinancing. The proceeds of the GBP400 mil. senior unsecured
notes were principally used to repay some of the company's
borrowings under the RCF and term loan, thus pushing out debt
maturities, improving liquidity headroom but increasing TalkTalk's
interest burden.
VEDANTA RESOURCES: Moody's Rates Proposed Sr. Unsecured Notes B3
----------------------------------------------------------------
Moody's Investors Service has assigned a B3 rating to the proposed
senior unsecured notes to be issued by Vedanta Resources plc.
Proceeds from the issuance are expected to be used towards
retiring, in part, the company's senior unsecured notes maturing
in 2018 and 2019.
The proposed notes are rated at the same level as the company's
existing senior unsecured notes, and are two notches below
Vedanta's B1 corporate family rating.
The ratings outlook is stable.
RATINGS RATIONALE
Vedanta's B1 CFR continues to reflect the company's large scale,
diversified operations with a broad product portfolio spanning oil
and gas, base metals and energy assets, along with its cost
competitive and integrated operations.
The company's commitment to reduce absolute debt levels, simplify
its corporate structure and its good track record in implementing
capacity expansions also support the rating.
"We expect Vedanta's earnings, cash flow and leverage will
continue to improve over the coming 12-18 months as commodity
prices stabilize or modestly recover from current levels, and the
company reduces its absolute debt," says Kaustubh Chaubal, a
Moody's Vice President and Senior Analyst.
Stabilizing or modestly rising commodity prices along with ramp
ups in production and continuing cost rationalization initiatives
will improve profitability and enhance earnings and cash flow.
Moody's expects these improvements will result in Vedanta's gross
adjusted leverage declining to less than 4.0x by March 2017 from
an estimated 5.6x at September 2016.
Through calendar 2016, Vedanta made significant progress in
reducing absolute debt levels and alleviating near-term
refinancing risk through its receipt of a special dividend of $1
billion from its subsidiary, Hindustan Zinc Ltd (HZL, unrated).
"Vedanta's proposed senior unsecured notes issuance reflects its
commitment to securing refinancing well ahead of scheduled debt
maturities, and is a clear credit positive," adds Chaubal, who is
also Moody's Lead Analyst for Vedanta.
Concurrent with the proposed notes issuance, Vedanta has also
announced a conditional tender offer for its $750 million 9.5%
2018 notes and $1.2 billion 6% 2019 notes. Improved yields and
favorable markets should help Vedanta in tapping the bond markets
and make meaningful progress on its liability management exercise,
lengthening its debt maturity.
At the same time, the group continues to make good progress in
merging its 62.9%-owned subsidiary Vedanta Ltd. (unrated) with
Cairn India Ltd. (CIL, unrated, Vedanta Ltd.'s 59.9%-owned
subsidiary). The merger -- which should get approvals from
regulatory authorities by March 2017 -- once successful, will
provide Vedanta Ltd. with better access to CIL's cash ($3.6
billion at September 2016) and cash flows as previous access was
possible only through the up-streaming of dividends.
Furthermore, despite the reduction in Vedanta's shareholding in
Vedanta Ltd. to 50.1% from 62.9% following the merger, group
liquidity will improve significantly. We expect Vedanta to use
part of CIL's cash balances towards better capital allocation
across the group, including retiring some of the group's debt.
The merger with CIL also marks a major step in the simplification
of Vedanta's complex organisational structure and, in particular,
in addressing some of the risks associated with the group's thinly
capitalized but highly leveraged parent company.
The two notch differential between the CFR and the senior
unsecured debt rating reflects the complex nature of Vedanta's
group structure and the fact that debt raised at its operating
subsidiaries is senior to holdco debt. Vedanta itself has no
tangible operating assets and all the UK holdco and finance
company issuances are unsecured.
Moody's would consider narrowing the notching between the CFR and
the issue rating if total priority debt falls below 35%-40% of
total consolidated debt and below 15%-20% of total group assets.
As of September 30, 2016, these ratios stood at 62% and 34%
respectively.
In addition, Moody's would also consider the holding company's
liquidity and coverage metrics. Holding company interest coverage
above 1.0x on a sustained basis would be key for Moody's to
consider a reduction in the notching.
The stable outlook reflects Moody's expectation that Vedanta's
operating and financial metrics will improve with recovering
commodity prices. In particular, Moody's expects the earnings
expansion to increase the pace of correction in the company's
leverage.
The ratings could experience positive momentum if the commodity
price improvement is sustained, such that Vedanta continues to
generate positive free cash flow and further reduces debt levels,
thereby improving leverage.
Financial indicators that could lead to an upgrade include
adjusted leverage below 3.0x-3.3x, EBIT/interest above 2.5x, and
cash flow from operations (CFO) less dividends/adjusted debt above
15%, all on a sustained basis, while generating positive free cash
flow.
Timely completion of the Vedanta Ltd.-CIL merger, followed by a
substantial debt repayment, would also lead to positive ratings
momentum.
Moody's does not anticipate downward rating pressure over the next
12-18 months, given the stable outlook. Nevertheless, the ratings
could come under negative pressure if: (1) weak commodity prices
return, such that Vedanta's consolidated adjusted 12-month EBITDA
drops below $3.5 billion, despite its efforts to ramp up
shipments; (2) the company is unable to sustain and improve its
cost-reduction initiatives, such that profitability weakens, with
its consolidated EBIT margin falling below 8% on a sustained
basis; and/or (3) its financial metrics weaken.
Credit metrics indicative of a downgrade include adjusted
debt/EBITDA in excess of 4.0x, EBIT/interest coverage below 2.0x,
or cash flow from operations less dividends/adjusted debt below
12.5%.
A delay in completing refinancing at least three months prior to
maturity dates could pressure ratings, although the proposed
senior unsecured notes issuance demonstrates the company's
commitment to refinancing in a timely manner. At the same time, an
adverse ruling with respect to CIL's disputed $3.2 billion tax
liability would also exert negative pressure on the ratings.
The principal methodology used in this rating was Global Mining
Industry published in August 2014.
Headquartered in London, Vedanta Resources plc is a diversified
resources company with interests mainly in India. Its main
operations are held by Vedanta Limited, a 62.9%-owned subsidiary
which produces zinc, lead, silver, aluminum, iron ore and power.
In December 2011, Vedanta Resources acquired control of Cairn
India Limited (CIL), an independent oil exploration and production
company in India, which is a 59.9%-owned subsidiary of Vedanta
Ltd.
On July 22, 2016, Vedanta Ltd. announced revised terms for its
merger of CIL with itself, in a cashless all stock transaction.
The shareholders of Vedanta Resources, Vedanta Ltd. and CIL
approved the Scheme of Arrangement for the merger, which still
remains subject to High Court and regulatory approvals. If the
merger goes through as announced, Vedanta Resources' shareholding
in Vedanta Ltd. will fall to 50.1%.
Listed on the London Stock Exchange, Vedanta Resources is 69.9%
owned by Volcan Investments Ltd. For the year ended March 2016,
Vedanta Resources reported revenues of USD10.7 billion and
operating EBITDA of USD2.3 billion.
VEDANTA RESOURCES: S&P Assigns 'B+' Rating to Proposed US$ Notes
----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term issue rating to a
proposed issue of U.S. dollar-denominated senior unsecured notes
by Vedanta Resources PLC (foreign currency: B+/Stable/--). The
rating is subject to our review of the final issuance
documentation.
S&P believes the proposed issuance will help reduce Vedanta
Resources' refinancing risk. The company plans to use the
proceeds to refinance part of its US$750 million and US$1.2
billion bonds maturing in 2018 and 2019, respectively, that are to
be submitted under a tender offer announced. Any unused proceeds
would be primarily used to repay existing debt. The proposed bond
would therefore not have any impact on Vedanta Resources'
financial ratios.
Earlier, S&P raised its rating on Vedanta Resources to 'B+' from
'B' to reflect its expectations that the company's operating
performance will improve over the next 12-18 months. This is
because of higher commodity prices and the company's ramp-up of
its aluminum operations. S&P also anticipates that Vedanta
Resources will continue to have adequate financial flexibility to
manage its refinancing over the period.
* UK: Oil, Gas Sector Insolvencies Hit Record High in 2016
----------------------------------------------------------
Andreas Exarheas at Rigzone reports that UK-based oil and gas
sector insolvencies hit a new high in 2016, according to
accountancy firm Moore Stephens.
Moore Stephens said 16 UK oil and gas firms became insolvent last
year, up from a total of two the year before, following a
continued low oil price environment, Rigzone relays. The
accountancy firm revealed that a total of nine UK oil and gas
companies went insolvent in the preceding four years, the report
relates.
Companies that were broken up during 2016 include First Oil Expro,
Harkand Group and Atlantic Offshore, Rigzone discloses.
According to Rigzone, Moore Stephens said hedging strategies had
delayed the impact of falling oil prices for some producers over
the last few years, by guaranteeing them higher prices, but many
of those contracts have now expired. Oil and gas companies are
also having problems refinancing loans as they come up for renewal
as banks look to cut their exposure to the struggling sector, the
accountancy company stated.
"The collapse of the price of oil has stretched many UK
independents to breaking point," Jeremy Willmont, head of
restructuring and insolvency at Moore Stephens, said in a
statement sent to Rigzone.
"The last 15 years has seen a large increase in the number of UK
oil and gas independents exploring and producing everywhere from
Iraq to the Falkland Islands. Unless there is a consistent upward
trend in the oil price, conditions will remain tough for many of
those and insolvencies may continue," he added, notes the report.
Rigzone adds that Michael Simms, an oil and gas partner at Moore
Stephens, also warned of future fiscal issues for UK oil and gas
sector firms.
"North Sea oil producers face further headwinds from
decommissioning costs of offshore rigs -- that's a very
significant headache for companies that are already financially
strained," Rigzone quotes Mr. Simms as saying. "North Sea
projects are also lagging behind in terms of attracting capital
investment. The relatively stable political environment that North
Sea investment benefits from is offset by the higher costs of
production," he added.
In addition to UK-based insolvencies, Moore Stephens stated that
oil and gas company bankruptcies have increased around the world
ever since the slump in oil prices, the report relays. In North
America, 90 oil and gas companies have filed for bankruptcy since
the beginning of 2015, and 48 since January 2016, Moore Stephens
stated.
*********
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
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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
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Nothing in the TCR constitutes an offer or solicitation to buy or
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Each Tuesday edition of the TCR contains a list of companies with
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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
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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
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*********
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-
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Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
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Peter A. Chapman, Editors.
Copyright 2017. All rights reserved. ISSN 1529-2754.
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