/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/170512.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, May 12, 2017, Vol. 18, No. 94 Headlines D E N M A R K DAGROFA: To Close Kiwi Discount Chain G E R M A N Y SOLARWORLD AG: To File for Insolvency Due to Overindebtedness I T A L Y ALITALIA: Files for Amministrazione Straordinaria L U X E M B O U R G SWISSPORT GROUP: S&P Puts 'B' CCR on CreditWatch Negative N E T H E R L A N D S EMF-NL PRIME 2008-A: Fitch Corrects April 28 Rating Release * NETHERLANDS: Number of Company Bankruptcies Up in March 2017 S P A I N HIPOCAT 8: S&P Lowers Rating on Class D Notes to CCC- (sf) S W E D E N VOLVO CAR: S&P Raises CCR to 'BB+' on New Models S W I T Z E R L A N D WEATHERFORD INT'L: Egan-Jones Lifts Commercial Paper Ratings to B U K R AI N E ODESA PORT-SIDE: Appeals Court Ruling May Prompt Bankruptcy U N I T E D K I N G D O M CORNER BLOK: Director Banned for Six Years Over Collapse LIFESTYLE LIVING: Sells Two Holiday Parks Ff. Administration NEMUS II: Fitch Affirms CC Rating on GBP1.0MM Class F Notes STORE TWENTY ONE: Pre-Tax Losses Widen to GBP9.3 Million * UK: Insolvencies Expected in Consumer Durables Retail Sector X X X X X X X X * BOOK REVIEW: Transnational Mergers and Acquisitions ********* ============= D E N M A R K ============= DAGROFA: To Close Kiwi Discount Chain ------------------------------------- European Supermarket Magazine reports that Danish retailer Dagrofa has disclosed it is to close its Kiwi discount chain in Denmark, as it feels it can 'no longer be turned into a profitable business', the retailer said in a statement. Dagrofa Chief Executive Per Thau said that the retailer, which also operates the Meny, Spar, Min Kobmand and Let-Kob banners in Denmark, will close Kiwi after "several years of losses", in order to enable the business to "focus on what we do best," according to European Supermarket Magazine. The report discloses that Dagrofa will convert around 30 of its 103 Kiwi outlets to Spar and Meny stores in the coming months, with the remainder of the stores set to close. Impact of Closure The report notes that the move will reduce Dagrofa's consolidated revenue by around 9%, but Thau added that in Meny and Spar, the group operates chains where there is "progress, potential and earnings. Those forces we are now expanding with some of the closed Kiwi stores." The store closures will affect around 2,400 employees including shop assistants, warehouse staff and staff in support functions, the report relays. Around a third of these will continue to work in the converted stores, while Dagrofa has said that it has initiated a 'number of initiatives' to help those made redundant to find work elsewhere, the report discloses. "The decision to close the Kiwi chain has not been easy to take," said Thau, the report notes. "The entire organisation has done a tremendous job with the development of Kiwi. But we just have to recognise that it has not managed to really get a foothold in the discount market, which is characterised by fierce competition and lack of earnings." ============= G E R M A N Y ============= SOLARWORLD AG: To File for Insolvency Due to Overindebtedness ------------------------------------------------------------- Christoph Steit at Reuters reports that Germany's SolarWorld, once Europe's biggest solar power equipment group, said on May 10 it would file for insolvency, overwhelmed by Chinese rivals who had long been a thorn in the side of founder and CEO Frank Asbeck, once known as "the Sun King". SolarWorld was one of the few German solar power companies to survive a major crisis at the turn of the decade, caused by a glut in production of panels that led prices to fall and peers to collapse, including Q-Cells, Solon and Conergy, Reuters notes. SolarWorld was forced to restructure and avoided insolvency thanks to a debt-for-equity swap and the support of Qatar, which took a 29% stake in the group four years ago through Qatar Solar S.P.C., Reuters recounts. According to Reuters, a renewed wave of cheap Chinese exports, caused by reduced ambitions in China to expand solar power generation, was too much to bear for the group, which made its last net profit in 2014. "Due to the ongoing price erosion and the development of the business, the company no longer has a positive going concern prognosis, is therefore over-indebted and thus obliged to file for insolvency proceedings," Reuters quotes SolarWorld as saying in a statement on May 10. SolarWorld, which earlier this year announced staff cuts after reporting increased losses, said it would immediately file for insolvency and that it was assessing whether affiliated companies would also have to do the same, Reuters relates. SolarWorld AG is Germany's biggest solar-panel maker. The company is based in Bonn. ========= I T A L Y ========= ALITALIA: Files for Amministrazione Straordinaria ------------------------------------------------- Ch-Aviation reports that following a shareholders meeting on Tuesday, May 2, the Board of Directors of Alitalia (AZ, Rome Fiumicino) has voted in favour of filing for "amministrazione straordinaria" (Extraordinary Administration) as required by Italian law. The carrier said in a separate statement issued shortly after the board meeting that the vote was unanimous, according to Ch- Aviation. The report notes that as previously reported, the carrier's labor force voted against a restructuring plan reached between management and unions. Employee acceptance of the plan was key to shareholders including Italian banks as well as Etihad Airways (EY, Abu Dhabi Int'l) availing EUR2 billion (USD2.12 billion) worth of fresh capital. "We have done all we could to support Alitalia, as a minority shareholder, but it is clear this business requires fundamental and far-reaching restructuring to survive and grow in future," James Hogan, President and Chief Executive Officer of Etihad Aviation Group, said, the report relays. "Without the support of all stakeholders for that restructuring, we are not prepared to continue to invest. We, therefore, support the necessary decision of the Alitalia Board to apply for extraordinary administration," he added. Extraordinary Administration is an insolvency procedure which aims to restructure large scale firms burdened with significant debts. It is supervised by the Italian Ministry of Economic Development. About Alitalia Alitalia-Compagnia Aerea Italiana has navigated its way through a successful restructuring. After filing for bankruptcy protection in 2008, Alitalia found additional investors, acquired rival airline Air One, and re-emerged as Italy's leading airline in early 2009. Operating a fleet of about 150 aircraft, the airline now serves more than 75 national and international destinations from hubs in Fiumicino (Rome), Milan, Turin, Venice, Naples, and Catania. Alitalia extends its network as a member of the SkyTeam code-sharing and marketing alliance, which also includes Air France, Delta Air Lines, and KLM. An Italian investor group owns a majority of the company, while Air France- KLM owns 25%. * * * Alitalia was the subject of a bail-out in 2014 by means of a significant capital injection from Etihad Airways, with goals of achieving profitability during 2017. However, increased competition on routes operated by U.K.-based carriers and significantly higher labor costs led to the ultimate failure of Etihad Airways' profitability goals for Alitalia. During late April 2017, labor unions representing Alitalia workers rejected a plan that called for job reductions and pay cuts for workers. Following the failure of these negotiations, Etihad Airways signaled an unwillingness to invest additional capital into the company and shareholders ultimately agreed to file for extraordinary administration proceedings on May 2, 2017. =================== L U X E M B O U R G =================== SWISSPORT GROUP: S&P Puts 'B' CCR on CreditWatch Negative --------------------------------------------------------- S&P Global Ratings placed its 'B' long-term corporate credit rating on Luxembourg-based airport services provider Swissport Group S.a.r.l and the group's related entities on CreditWatch with negative implications. At the same time, S&P also placed on CreditWatch with negative implications its 'B' issue ratings on the CHF110 million senior secured revolving credit facility (RCF) by Swissport International Ltd., as well as the EUR660 million term loan B, and the EUR400 million senior secured notes issued by Swissport Investment S.A. The recovery rating on these instruments is '3', reflecting S&P's expectation of meaningful recovery (50%-60%; rounded estimate 60%). S&P also placed on CreditWatch with negative implications its 'CCC+' issue rating on the EUR290 million senior unsecured notes issued by Swissport Investment S.A. The recovery rating on the notes is '6', reflecting S&P's expectation of negligible recovery (0%-10%; rounded estimate 0%). The negative CreditWatch placement follows Swissport's announcement of a technical breach of certain non-financial covenants in its credit facility agreement and its intention to complete debt-restructuring solutions in the next 90 days. The covenant breach occurred when shares of three holding companies within Swissport's restricted group were used as security for a debt facility for Swissport's parent, HNA Group Co. Ltd. In concrete terms, the securities were pledged for a subsidiary of HNA Group before the acquisition of Swissport was finalized. The abovementioned shares of Swissport, Swissport Investments S.A., and Aguila 2 S.A. were prohibited from being pledged under certain provisions including the negative pledge clause of the credit facility, which includes the EUR660 million term loan B and the CHF110 million RCF. However, the shares subject to such pledges do not include any shares that are included in the collateral intended to secure the credit facilities or the senior secured high-yield bonds. S&P understands that the bond documentation does not include a cross-default clause. However, as Swissport will delay publication of its 2016 fiscal results, it cannot access its RCF. That said, S&P understands that HNA Group has injected EUR718 million of cash as pure equity into the company to maintain sufficient liquidity for ongoing operations and to redeem the EUR660 million term loan B, if needed, and to prevent a cross acceleration of the bonds. S&P considers this to be a strong commitment from the HNA Group. S&P understands that Swissport's trading performance is in line with expectations and that Swissport will continue to pay all of its debt obligations as they fall due and that the possible 90- day forbearance period Swissport referenced in its recent announcement primarily relates to the delay of the publication of its 2016 fiscal results, and does not allow Swissport to defer debt payments. S&P has revised its assessment of Swissport's stand-alone credit profile (SACP) to 'b-', following S&P's reassessment of Swissport's financial policy assessment to negative, due to high event risk regarding management's financial policy and a lower degree of predictability in credit ratios. "We assess the creditworthiness of the combined diversified but highly leveraged HNA Group to be commensurate with a 'b+' group credit profile (GCP). Following a number of acquisitions in recent years, HNA Group is a large Chinese conglomerate operating in the aviation, infrastructure, real estate, financial services, tourism, and logistics sectors. In our view, the group benefits from broad scale and diversification of operations. However, we view the group's financial policy as aggressive based on its acquisition strategy and high debt leverage," S&P said. S&P views Swissport as a moderately strategic subsidiary of HNA Group. S&P considers it unlikely that HNA Group would sell Swissport in the near-to-medium term, given that the company provides backward integration to the group's aviation business through its ground handling and cargo business. S&P also sees some potential for support from the group if Swissport falls into financial difficulty, as it has demonstrated by injecting cash in this case. S&P will review the implications of Swissport's recent announcement and seek clarifications from Swissport's management team, parent (HNA Group), and banking group regarding the nature of the intended debt restructuring and the measures that they will take to cure the technical covenant breach. S&P currently understands that Swissport's trading performance is in line with expectations, and that if any outstanding debt is repaid as part of a debt restructuring, investors will receive value at least equal to the promise of the original securities. However, if this is not the case, or if the information provided is insufficient, S&P could downgrade Swissport by several notches. S&P expects to resolve its CreditWatch in the next 30 days. ===================== N E T H E R L A N D S ===================== EMF-NL PRIME 2008-A: Fitch Corrects April 28 Rating Release ----------------------------------------------------------- This announcement corrects the version published on April 28, which incorrectly stated the class A2 and A3 notes' ratings in EMF-NL Prime 2008-A B.V. Fitch Ratings has taken rating actions on 18 tranches of four Dutch non-conforming transactions. Fitch has downgraded six tranches, upgraded one tranche and affirmed 11 tranches. The notes have been removed from Rating Watch Negative (RWN). A full list of rating actions is at the end of this rating action commentary. The transactions are Eurosail-NL 2007-1 B.V. (Eurosail 2007-1), Eurosail-NL 2007-2 B.V. (Eurosail 2007-2), EMF-NL Prime 2008-A B.V. (EMF 2008-A) and Principal Investment Mortgages 1 SA (PRIM). Except for PRIM they are securitisations of Dutch residential mortgages all jointly originated by ELQ Portefeuille I BV (ELQ) and Quion 50. PRIM is a RMBS originated by Sparck Hypotheken.. KEY RATING DRIVERS Resolution of RWN We placed the notes on RWN in November 2016 reflecting the maturity concentration of the underlying loans close to the maturity of the respective notes. Interest-only loans account for between 90% and 99% of the portfolio across the four transactions. Approximately 83%-92% of the current balance is interest-only loans that mature within a three-year period, close to the notes' maturity. In its cash flow analysis, Fitch's back-loaded default distribution assumes defaults occur in the first 17 years from the date of analysis. Given the distribution of maturity dates of interest-only loans in these portfolios, defaults could take place only a few years prior to note maturity, in which case there may not be sufficient excess spread to make whole any losses incurred. This creates the potential for a shortfall in the repayment of the notes at their maturity. Fitch has assessed the resilience of the ratings by adjusting the timing of defaults to within two years of note maturity. Additionally, Fitch has considered the effect of increasing the recovery timing by three months, given the clustering of projected defaults. The negative rating actions reflect the sensitivity of the transactions to this risk. Credit Enhancement Relatively high credit enhancement (CE), when measured against the other three deals as well as the broader market, have driven the upgrade of PRIM's class C notes. The transaction is resilient to the additional back-loaded defaults stress applied. The combination of the outstanding principal deficiency ledger, drawn reserve fund, interest deferrals and outstanding amounts due to the Lehman Brothers bankruptcy estate have together contributed to the downgrade of EMF 2008-A below investment grade. Asset Performance In the EMF and Eurosail transactions late-stage arrears (loans that have been delinquent for over three months) have decreased over the last year by up to 4.5 percentage points (EMF 2008-A). This mirrors improvements in the Dutch economy, housing market, and employment market. However, the absolute level of these late- stage arrears (between 5.5% and 7.5%) is still well above the equivalent measure in Fitch Netherlands All Deals Index (at 0.3%). In PRIM, late-stage arrears have increased by 70bp in the 12 months to February 2017, to 4.7%. These delinquencies have been broadly stable around 4% in this transaction since issuance. The performance adjustment factor (PAF) of 2x applied to all transactions is a key rating driver of the downgrades. The PAF compares the foreclosures to date (as well as current arrears) to the 'Bsf' foreclosure frequency modelled based on the current portfolio. Foreclosures are measured against the back-loaded default distribution, which is a reasonable assumption for these transactions with a high proportion of interest-only loans maturing towards the end of the transactions' life. Lender Adjustment At transaction close, for the EMF and Eurosail transactions a lender adjustment of 1.3x was applied while an adjustment of 1.8x was applied for PRIM. In line with criteria, Fitch applied the same lender adjustments used at closing for this rating action. Risk of Commingling Loss Mortgage payments in PRIM are made to a collection account at ABN AMRO (A+/Stable/F1) held in the name of the servicer (Vesting Finance Servicer B.V.). As Vesting is an unrated entity, Fitch has sized for one month's worth of commingling loss. This reflects the loss the transaction may incur should Vesting default and the amounts standing to the credit of the collection account be commingled in its insolvency estate. This stress has had no rating impact. Adverse Credit With the exception of EMF 2008-A, all the transactions comprise borrowers with a registration at the Bureau Kredietregistratie (Dutch Credit Office) at closing. In line with criteria for non- prime transactions, a 35% foreclosure frequency adjustment has been made for these borrowers in Fitch analysis. Claims Settlements The Lehman Brothers bankruptcy estate has entered into a settlement agreement with the EMF and Eurosail issuers over a derivative-related dispute. Outstanding settlement payments due by the issuers have been factored into the analysis. VARIATIONS FROM CRITERIA The rating actions reflect the effect of applying a customised back-loaded default curve in these transactions, as well as an increase in the time to recovery post-foreclosure. The transactions have a geographical concentration to either Flevoland or Zeeland (where the current balance of the transaction is more than twice the population proportion in that region). In these cases, the agency has applied a 15% foreclosure frequency increase to the portion of the portfolio in excess of the population proportion in the region. This adjustment is not specified in the Dutch addendum to the EMEA RMBS Criteria.. RATING SENSITIVITIES A reduction in the asset maturity concentration may reduce the transactions' exposure to the timing of foreclosures and lead to positive rating action. The weighted average margins of the loans in PRIM are subject to a minimum rate as per the interest rate policy entered into by the issuer at closing. Should the weighted average rate fall below this minimum, it may lead to negative rating action. Additionally, non-performing borrowers in PRIM may remain delinquent for extended periods of time as they negotiate refinancing or enter into foreclosure. This may result in payment interruption risk, especially for the class C notes, which may be locked out of the liquidity facility. Reductions in delinquency periods, in the agency's opinion, would reduce this risk and may result in positive rating action on these notes. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. There were no findings that affected the rating analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pools in the Eurosail and EMF transactions ahead of the transactions' initial closing. The subsequent performance of the transactions over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. Prior to PRIM's closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Prior to PRIM's closing, Fitch conducted a review of a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. SOURCES OF INFORMATION The information below was used in the analysis. - Loan-by-loan data provided by Adaxio B.V. and the European Data Warehouse as at December 31, 2016 and January 1 2017 - Transaction reporting provided by Adaxio B.V. and Vesting Finance B.V. as at January 17, 2017, January 30, 2017, and February 28, 2017 - Discussions and updates from Adaxio and Vesting Finance as at April 21, 2017 and April 25, 2017 Fitch has taken the following rating actions: Eurosail-NL 2007-1 B.V. Class A (XS0307254259) downgraded to 'A+sf' from 'AA sf'; off RWN; Outlook Stable Class B (XS0307256114) downgraded to 'BBBsf' from 'BBB+ sf'; off RWN; Outlook Stable Class C (XS0307257435) downgraded to 'BBsf' from 'BB+ sf'; off RWN; Outlook Stable Class D (XS0307260496) affirmed at 'CCC sf'; Recovery Estimate (RE) revised from 90% to 60% Class E1 (XS0307265370) affirmed at 'CCC sf'; RE 0% Eurosail-NL 2007-2 B.V. Class A (XS0327216569) affirmed at 'A+sf'; off RWN; Outlook Stable Class M (XS0330526772) affirmed at 'BBB+ sf'; off RWN; Outlook Stable Class B (XS0327217880) affirmed at 'B+ sf'; Outlook revised to Stable from Negative Class C (XS0327218425) affirmed at 'CCC sf'; RE revised to 90% from 40% Class D1 (XS0327219159) affirmed at 'CCC sf'; RE 0% EMF-NL Prime 2008-A B.V. Class A2 (XS0362465535) downgraded to 'BBsf' from 'BBB-sf'; off RWN; Outlook Stable Class A3 (XS0362465881) downgraded to 'BBsf' from 'BBB-sf'; off RWN; Outlook Stable Class B (XS0362466186) affirmed at 'CCC sf'; RE 90% Class C (XS0362466269) downgraded to 'CCsf' from 'CCC sf'; RE 0% Class D (XS0362466772) affirmed at 'CC sf'; RE 0% Principal Residential Investment Mortgages 1 SA A (XS0736639112) affirmed at 'AAA sf'; off RWN; Outlook Stable B (XS0736642686) affirmed at 'AAA sf'; off RWN; Outlook Stable C (XS0736644203) upgraded to 'A+sf' from 'Asf'; off RWN; Outlook Stable * NETHERLANDS: Number of Company Bankruptcies Up in March 2017 -------------------------------------------------------------- Statistics Netherlands reports that the number of company bankruptcies has risen marginally. In March 2017, the number of bankruptcies was 11 up from the preceding month, Statistics Netherlands discloses. Most bankruptcies were recorded in the trade sector, Statistics Netherlands notes. If the number of court session days is not taken into account, 293 businesses and institutions (excluding one-man businesses) were declared bankrupt in March 2017, Statistics Netherlands relates. With a total of 60, the trade sector took the hardest hit, Statistics Netherlands states. In the sector financial institutions and the construction sector 40 bankruptcies were filed, according to Statistics Netherlands. Proportionally, the number of bankruptcies was high in the sector hotels and restaurants in March, Statistics Netherlands states. ========= S P A I N ========= HIPOCAT 8: S&P Lowers Rating on Class D Notes to CCC- (sf) ---------------------------------------------------------- S&P Global Ratings has raised its credit ratings on Hipocat 8, Fondo de Titulizacion de Activos' class A2 and B notes. At the same time, S&P has affirmed its rating on the class C notes and lowered its rating on the class D notes. The rating actions follow S&P's credit and cash flow analysis of the most recent transaction information that S&P has received as of the March 2017 investor report. S&P's analysis reflects the application of its European residential loans criteria, S&P's structured finance ratings above the sovereign (RAS) criteria, and its current counterparty criteria. Under S&P's RAS criteria, it applied a hypothetical sovereign default stress test to determine whether a tranche has sufficient credit and structural support to withstand a sovereign default and so repay timely interest and principal by legal final maturity. S&P's RAS criteria designate the country risk sensitivity for residential mortgage-backed securities (RMBS) as moderate. S&P's credit and cash flow analysis indicates that the class A2 and B notes now have sufficient credit enhancement to withstand its stresses at the 'AA+' and 'A+' rating levels, respectively. S&P's RAS criteria cap its ratings in this transaction at six notches above S&P's 'BBB+' foreign currency long-term sovereign rating on the Kingdom of Spain for the class A2 notes and at two notches above our rating on Spain for the class B notes. S&P has therefore raised to 'AA+ (sf)' from 'BBB- (sf)' and to 'A (sf)' from 'BB (sf)' its ratings on the class A2 and B notes, respectively. Under S&P's current counterparty criteria, Cecabank S.A., as the swap provider, cannot support a rating on the notes that is higher than our 'BBB' long-term issuer credit rating on Cecabank. S&P has therefore performed its credit and cash flow analysis without giving benefit to the swap provider, to determine if the class A2 and B notes could achieve a higher rating when giving no benefit to the swap provider. S&P's ratings on both the class A2 and B notes are de-linked from its rating on the swap provider, Cecabank. The transaction features an interest deferral trigger for the class B to D notes. If breached, the interest payments are subordinated below principal in the priority of payments. These triggers are based on the difference between the available funds and the outstanding balance of the notes. None of these triggers has been breached to date. However, given the trend in defaults, the class D trigger may be breached in the near future, in S&P's view. The class C and D notes are not able to pass S&P's cash flow stresses at the 'B' rating level. S&P's cash flow analysis for the class C notes shows that it do not expect a default to occur in the next 12 months. In line with paragraphs 92 and 93 of S&P's European residential loans criteria, and its criteria for assigning 'CCC' category ratings, S&P has affirmed its 'B- (sf)' rating on the class C notes. At the same time, the class D notes are undercollateralized, the credit enhancement has decreased since our previous review, S&P estimates that the interest deferral trigger will be breached in the near term, and S&P's cash flow analysis shows interest shortfalls in the next 12 month. Therefore, in line with S&P's criteria for assigning 'CCC' category ratings and given the degree of financial stress for class D notes, S&P has lowered to 'CCC- (sf)' from 'CCC (sf)its rating on the class D notes. Available credit enhancement for the class A2 and B notes has increased since S&P's previous review due to the amortization of the class A2 notes. At the same time, available credit enhancement for the class C and D notes has decreased due to the full depletion of the reserve fund, limited prepayments, and uncured defaults, which have led to the class D notes being undercollateralized. Class Available credit enhancement, excluding defaulted loans (%) A2 20.90 B 13.39 C 3.20 D (6.16) Hipocat 8 features a reserve fund, which can amortize to a target amount. However, it is now depleted as it was used to provision for defaulted assets. Severe delinquencies of more than 90 days, excluding defaults, are 1.84%, which is below S&P's Spanish residential mortgage- backed securities (RMBS) index, although they have been above the index in the past. Mortgage loans in arrears for more than 18 months are classified as default in this transaction and, consequently, artificially written off. As of December 2016, defaults at 9.75% were higher than in other Spanish RMBS transactions that S&P rates. Prepayment levels remain low and the transaction is unlikely to pay down significantly in the near term, in S&P's opinion. After applying S&P's European residential loans criteria to this transaction, its credit analysis results show a decrease in the weighted-average foreclosure frequency (WAFF) and a decrease in the weighted-average loss severity (WALS) for each rating level. Rating level WAFF WALS CC (%) (%) (%) AAA 22.88 21.42 4.90 AA 16.97 18.04 3.06 A 13.65 12.21 1.67 BBB 10.12 9.38 0.95 BB 6.48 7.51 0.49 B 5.30 5.89 0.31 CC--Credit coverage. S&P's European residential loans criteria set the minimum projected losses at 0.35% at the 'B' rating level. The projected losses that S&P compares with these credit coverage floors include the negative carry resulting from interest due on the rated liabilities during the foreclosure period. Projected losses with interest meet the minimum floor level at the 'B' rating level. In S&P's opinion, the outlook for the Spanish residential mortgage and real estate market is not benign and S&P has therefore increased its expected 'B' foreclosure frequency assumption to 3.33% from 2.00%, when S&P applies its European residential loans criteria, to reflect this view. S&P bases these assumptions on its expectation of modest economic growth, continuing high unemployment, and house prices stabilization during 2017. Hipocat 8 is a Spanish RMBS transaction, which closed in May 2005 and securitizes first-ranking mortgage loans. Catalunya Banc (formerly named Caixa Catalunya) originated the pool, which comprises loans secured over owner-occupied properties, mainly located in Catalonia. RATINGS LIST Class Rating To From Hipocat 8, Fondo de Titulizacion de Activos EUR1.5 Billion Mortgage-Backed Notes Ratings Raised A2 AA+ (sf) BBB- (sf) B A (sf) BB (sf) Rating Affirmed C B- (sf) Rating Lowered D CCC- (sf) CCC (sf) =========== S W E D E N =========== VOLVO CAR: S&P Raises CCR to 'BB+' on New Models ------------------------------------------------ S&P Global Ratings raised to 'BB+' from 'BB' its long-term corporate credit rating on automotive manufacturer Volvo Car AB. The outlook is stable. At the same time, S&P raised its issue ratings on Volvo's senior unsecured bonds to 'BB+' from 'BB', which is in line with the corporate credit rating. S&P's recovery rating of '3' is unchanged and indicates its expectations of meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default. The upgrade reflects S&P's view that Volvo is making good progress in strengthening its competitive position and business profile through successful model launches, which are replacing its model line-up and enabling the company to reposition itself as a premium car manufacturer. Also supportive is Volvo's progress in strengthening its profitability. Volvo posted volume growth in 2016 of 6% to about 534,000 cars, and during the four months to April 30, 2017 of 8% to about 176,000. Growth in 2016 was driven by higher SUV sales, notably the all-new XC90, launched in 2014. This was partly offset by slightly lower volumes in the sedan and estate segments. In mid- 2016, replacement models were launched for the S90 sedan and V90 estate and production has just started of Volvo's new XC60 mid- size SUV. Further new models can be expected to complete the revamp of the portfolio, and the company plans to significantly increase volumes further to 800,000 during the next few years. Profitability is also strengthening, as seen in S&P Global Ratings-adjusted EBITDA margins of 9.4% in 2016 compared with 7.7% during 2015, and 9.5% during the last-12-months to March 31, 2017, compared with 9.0% during the same period to March 31, 2016. This is despite launch costs related to new model launches. Other favorable trends include the transition to more flexible and cost-efficient manufacturing platforms, which is currently underway, and investments being made in electrification, autonomous driving, and connectivity. S&P continues to view these strengths as being partly offset by Volvo's limited scale and scope by global standards, and a degree of execution risk related to significant capacity expansion -- notably a new plant being built in the U.S. due to start production in 2018, and the continued rollout of new models. Volvo also has a quite limited track-record of improving profitability, and will continue to face highly competitive market conditions from long-established premium car peers. While underway, Volvo could be challenged to fully reposition the brand into the premium segment. A slower pace of new car demand growth in China is a further risk factor. Cyclical demand for premium cars, sizable research and development expenses, and the need for automakers to meet stringent environmental standards, are also constraining factors. As with peers, the company has invested in this area to meet the required standards. S&P no longer includes a one-notch negative comparable rating analysis modifier as Volvo continues to successfully launch new models according to its business plan and strengthen profitability, while avoiding execution risks. S&P's assessment of Volvo's financial risk profile remains supported by S&P's expectation of continued zero or low adjusted debt levels and strong leverage metrics. This is underpinned by continued volume growth from new models. S&P also expects EBITDA profit margins to remain stable. Constraining factors are ongoing levels of high capital expenditures (capex), including investments in new models and capacity additions, which may lead to broadly neutral free operating cash flow (FOCF) in 2017 becoming positive in 2018. Although adjusted debt is zero, which is strong for the rating and which S&P expects to continue, S&P factors in the risk of potential high volatility in cash flow and leverage metrics. This is because S&P views Volvo as being more exposed than peers to the risk that its investments in new models and expansion of production could experience operational delays or challenges, which make S&P's forecasts and leverage metrics more vulnerable to execution risks. In S&P's base-case scenario, it assumes: -- Global auto sales to increase by about 1%-2% in 2017 and 2%-3% in 2018, which is similar to trends in global GDP growth. S&P sees volume growth mostly in Asia-Pacific and Europe, although S&P expects slower auto sales growth in China because of reduced tax incentives. -- Moderate volume growth for Volvo to around 560,000 in 2017, and 600,000 in 2018, driven by volumes from new models. -- S&P Global Ratings-adjusted EBITDA margins to remain stable at around 9%, helped by positive pricing and volume mix. -- Investments in working capital as volumes grow. -- Capex (including intangibles) of Swedish krona (SEK) 19 billion per year in 2017 and 2018. -- Broadly neutral FOCF in 2017, becoming positive in 2018. -- S&P do not factor any dividend payments. Nor do S&P factors in any potential isting of the company. Based on these assumptions, S&P expects these credit measures for 2016 and 2017: -- Adjusted debt to remain zero or at low levels. -- Funds from operations (FFO) to debt of well above 100%. -- Adjusted debt to EBITDA of well below 0.5x. -- S&P regards metrics of above 60% and below 1.5x, respectively, as being in line with the ratings. This indicates a significant degree of headroom compared with S&P's forecasts, but is intended to capture execution and volatility risks. As of Dec. 31, 2016, S&P Global Ratings-adjusted debt was zero. To the reported gross debt of Swedish krona (SEK) 24.4 billion, S&P adds SEK3.9 billion for operating leases, SEK5.1 billion for pensions, SEK5 billion of preferred equity, which S&P treats as debt, and deduct SEK42.3 billion of surplus cash (after deducting SEK1.0 billion of cash balances, which S&P treats as not immediately available). On this basis, leverage ratios were not meaningful. S&P also lowers reported EBITDA by capitalized development costs, which in 2016 were SEK6.2 billion. S&P views Volvo as a highly strategic entity of Geely Holding, which has a group credit profile (GCP) of 'bb+'. Geely Holding owns 99% of Volvo. S&P's assessment implies that Volvo is virtually integral to the group's current identity and future strategy, and the group would support Volvo under almost all foreseeable circumstances. On this basis, the long-term credit ratings on Volvo are in line with the company's own stand-alone credit profile (SACP) of 'bb+' and are not constrained by Geely Holding's GCP. Volvo is a Sweden-based car manufacturer, which in 2016 produced about 534,000 cars. It produces cars across SUV/crossover (XC), estate/hatchback (V), and sedan (S) body types. Key markets are Western Europe, China, and the U.S. Volvo is 99%-owned by Chinese automotive manufacturer Geely Holding. In 2016, Volvo's revenues were SEK180.7 billion (approximately E19.1 billion). The stable outlook reflects S&P's expectation that Volvo will continue its successful roll-out of new car models while maintaining profitability and zero or low levels of adjusted debt and avoiding execution risks. S&P could raise its ratings on Volvo if S&P revised upward Geely Holding's GCP and Volvo's SACP. Key factors affecting Geely Holding's GCP include stronger product competitiveness, group consolidated EBITDA margin of more than 10%, and a ratio of debt to EBITDA below 1.5x through business cycles. For Volvo itself, S&P would need to see continued successful business plan execution leading to further improvements in the competitive position; sustained EBITDA margins; and maintained leverage metrics of FFO to adjusted debt above 60% and adjusted debt to EBITDA below 1.5x. S&P could lower its ratings on Volvo if S&P revised down Geely Holding's GCP or Volvo's SACP. For Geely Holdings, key factors include lower market share and cost competitiveness and eroding profitability with an EBITDA margin below 6x. A ratio of debt to EBITDA consistently above 2x would also be a negative factor. For Volvo, factors include lower profitability or material delays in new model launches or other operational setbacks. Other factors would be negative FOCF, and leverage metrics weaker than FFO-to-adjusted debt of 60%, or adjusted debt to EBITDA of 1.5x, on a sustained basis. ===================== S W I T Z E R L A N D ===================== WEATHERFORD INT'L: Egan-Jones Lifts Commercial Paper Ratings to B ----------------------------------------------------------------- Egan-Jones Ratings, on April 19, 2017, raised the local currency and foreign currency ratings on commercial paper issued by Weatherford International PLC to B from C. Weatherford International public limited company, together with its subsidiaries, operates as a multinational oilfield service company worldwide. The Company was founded in 1972 and is headquartered in Baar, Switzerland. The Company's segments include North America, Latin America, Europe/Sub-Sahara Africa (SSA)/Russia, Middle East/North Africa (MENA)/Asia Pacific and Land Drilling Rigs. ============ U K R AI N E ============ ODESA PORT-SIDE: Appeals Court Ruling May Prompt Bankruptcy ----------------------------------------------------------- Interfax-Ukraine reports that the Odesa region's appeals court on May 10 upheld the decision of the Yuzhne city court on satisfying a motion by Ostchem, owned by Dmytro Firtash, on implementing the ruling of the Stockholm Arbitration Court to collect US$193 million in debts from the Odesa Port-Side Chemical Plant (OPP), not including fines and penalties, according to acting head of Ukraine's State Property Fund (SPF) Dmytro Parfenenko. "The Odesa region's appeals court [Wednes]day declined all our appeals and motions and left in force the ruling of the Yuzhne city court . . . This opens the door to the potential bankruptcy of the OPP, a key enterprise in the region," Interfax-Ukraine quotes Mr. Parfenenko as saying during a Cabinet of Ministers meeting in Kyiv on May 11. Ukrainian Prime Minister Volodymyr Groysman tallied the total debt at around US$300 million, Interfax-Ukraine discloses. According to Interfax-Ukraine, Mr. Parfenenko said the SPF is preparing to appeal the ruling and seeking a stay of the decision, as well as taking a number of legal steps to prevent OPP's bankruptcy. "This all creates the impression of some kind of deliberate campaign to destroy the investment potential of the enterprise. One conclusion is as follows: this shows that OPP's privatization is required as quickly as possible . . . and the need to conduct a search for an effective owner of the plant," Mr. Parfenenko, as cited by Interfax-Ukraine, said. =========================== U N I T E D K I N G D O M =========================== CORNER BLOK: Director Banned for Six Years Over Collapse -------------------------------------------------------- Belfast Telegraph reports that Colin John Conn, the director of Corner Blok Limited, has been banned from the boardroom for six years after racking up debts of GBP2 million. Corner Blok restored a building on the junction of Waring Street and Donegall Street to create the Four Corners Hotel, which opened in 2008, Belfast Telegraph discloses. The hotel is leased to Premier Inns, remains open and continues to trade as normal, Belfast Telegraph notes. Corner Blok operated in the property development industry from Upper Newtownards Road, Belfast, and went into administration on March 30, 2011, Belfast Telegraph recounts. It had liabilities to unsecured creditors of GBP2,650,000 and an estimated deficiency as regards creditors of GBP2,150,000, Belfast Telegraph discloses. The department said it accepted the disqualification from Mr. Conn for a number of reasons, Belfast Telegraph relays. That included causing and permitting the company to retain a total of GBP981,529 in VAT, failing to "maintain and/or preserve and/or deliver up accounting records for the company from December 31, 2008 to the date of administration", and failing to file annual accounts for the company with Companies House, according to Belfast Telegraph. LIFESTYLE LIVING: Sells Two Holiday Parks Ff. Administration ------------------------------------------------------------ Duncan Bick at In-Cimbria reports that two Cumbrian holiday parks have been sold to an experienced operator after their former owner went into administration. Lakeland View Residential Park at Nethertown, near Egremont, and Silecroft Holiday Park, near Millom, have been sold to a group owned by Leicester-based businessman Tony Barney, who runs parks throughout the UK under the Countrywide Park Homes and Lifestyle Homes NI (Northern Ireland) brands, according to In-Cimbria. The report discloses both were part of Lifestyle Living UK along with other sites in Norfolk and Suffolk. This company -- which was owned by Mr Barney until 2014 -- went into administration in December. Joint administrators Jason Baker and Miles Needham of FRP Advisory though have announced that the business and assets of Lifestyle Living have been bought by Mr. Barney, who will maintain the brand name, saving 30 jobs across the UK, the report relays. The report notes that Mr. Baker said: "We are pleased to have secured a sale of the entire business and all the sites of Lifestyle Living to experienced caravan and leisure site operator Tony Barney, who has a sound understanding of each site's unique geography and customer base thanks to his years of prior ownership and solid stewardship of the group. We wish Lifestyle Living the very best under new ownership." The report relays that he also said that bookings at the park had remained strong and that this is expected to continue as the falling pound encourages more people to holiday in the UK. The report discloses Mr. Barney, said: "It is great to be back in at Lifestyle Living and I look forward to re-invigorating the sites so that they can serve another generation of holiday-users and lodge owners with the high standards they have come to expect. With more than 30 years of experience in the holiday and residential parks sector, I could see an opportunity to come back to a business which I helped build up and take it on to a new level. "I remain committed to investing in locations which, like those of Lifestyle Living, offer tranquility for residents, yet remain within easy access to towns or villages with essential amenities. I welcome approaches from other park owners who are looking to secure a confidential sale of their park." NEMUS II: Fitch Affirms CC Rating on GBP1.0MM Class F Notes ----------------------------------------------------------- Fitch Ratings has affirmed Nemus II (Arden) plc's floating-rate notes due February 2020: GBP4.7 million Class A (XS0278300487) affirmed at 'AAsf'; Outlook revised to Stable from Negative GBP11.3 million Class B (XS0278300560) affirmed at 'Asf'; Outlook revised to Negative from Stable GBP7.7 million Class C (XS0278300727) affirmed at 'BBBsf'; Outlook Stable GBP7.1 million Class D (XS0278301295) affirmed at 'BBsf'; Outlook Stable GBP13.9 million Class E (XS0278301378) affirmed at 'CCCsf'; Recovery Estimate (RE) revised to 100% from 80% GBP1.0 million Class F (XS0278301535) affirmed at 'CCsf'; RE revised to 50% from 0%. The transaction closed in December 2006 and was originally the securitisation of six loans secured on 22 properties located throughout the UK and Jersey. Four of the loans were tranched but the subordinated B-notes do not form part of the securitisation. In May 2017, only one loan remained - GBP34.9 million Buchanan House. KEY RATING DRIVERS The affirmations reflect the full repayment of the GBP10.7 million Carlton House loan, which once the corresponding principal amounts are applied on the May interest payment date (IPD), will fully repay the class A notes in full and approximately 50% of the class B notes. The Negative Outlook on the class B notes addresses the likelihood of a 'BBBsf' rating cap being applied in August 2018 (18 months prior to bond maturity) should the loan remain outstanding. Fitch has affirmed the class C and D notes despite them being subject to an interest shortfall on the February 2017 IPD. Fitch believes this shortfall is temporary and will be repaid through increased interest receipts as a result of the announced application of default interest (at 1%). Finally, Fitch has affirmed the class E and F notes at distressed levels due to a higher likelihood of ongoing interest deferral and ultimate principal losses, should ongoing collateral remedial works be unduly delayed. Since the last rating action in May 2016, two loans repaid in line with expectations: GBP124.6 million Victoria in October 2016, almost entirely repaying the class A notes, followed by the Carlton House loan in April 2017. The remaining loan (Buchanan House) entered special servicing in April 2013, when in addition to an ongoing loan-to-value (LTV) covenant breach, a structural defect requiring substantial remedial work was detected in the underlying collateral, an office property located in Glasgow let to three tenants. Since the last rating action in May 2016 and following the settlement of the dispute between the borrower and contractor deemed responsible for the defect, the contractor commenced remedial works at no cost to the borrower. Fitch understands that the works are approximately one month behind schedule (due to weather dependency), with completion targeted for summer 2018. Fitch also understands that the incumbent tenants have no right to terminate or reduce the rent payable under their leases as a result of the remedial works being undertaken. Meanwhile the special servicer released GBP4.3 million of funds trapped prior to the settlement, contributing to an overall GBP6.3 million redemption of the senior Buchanan House loan over the last 12 months. Since the last rating action, surplus income has been used to amortise the loan by GBP0.6 million quarterly. However, the application of default interest is expected to reduce future amortisation funds and will likely result in the class B notes being outstanding until repayment of the Buchanan House loan. Fitch estimates 'Bsf' recoveries of approximately GBP45.3m. RATING SENSITIVITIES A 'Asf' rating cap will apply to the notes from February 2018, becoming a 'BBBsf' rating cap in August 2018. Any outstanding notes will be subject to these caps. STORE TWENTY ONE: Pre-Tax Losses Widen to GBP9.3 Million -------------------------------------------------------- Storm Rannard at Insider Media reports that pre-tax losses have edged toward the GBP10 million mark at Store Twenty One, the troubled fashion chain's much-delayed financial results have shown. The figures come amid reports that the business has filed a notice of intention to appoint administrators almost a year after it agreed a company voluntary arrangement (CVA) as part of a restructure, Insider Media relays. The financial results for Solihull-based Grabal Alok (UK) Ltd, which trades as Store Twenty One, revealed pre-tax losses widened to GBP9.3 million in the year to March 26, 2016 compared to GBP6.7 million a year earlier, Insider Media discloses. In July 2016, 90% of Store Twenty One's creditors approved a restructuring plan for the business, which comprised a CVA, Insider Media recounts. At the time the company had about 222 branches across the UK, according to Insider Media. Between July and September, 93 loss-making shops were closed, leaving Store Twenty One with 128 outlets, Insider Media relates. According to Insider Media, a statement filed with the accounts said a "considerable amount of work" has gone into enhancing the "value proposition" of the business. However, Retail Week reported earlier this month that administration looms for Store Twenty One after it defaulted on rent payments, Insider Media notes. It is understood the business is now seeking additional investment, Insider Media states. * UK: Insolvencies Expected in Consumer Durables Retail Sector -------------------------------------------------------------- Payment delays and insolvencies are predicted to rise in the consumer durables retail sector this year, reveals a new economic report from trade credit insurer Atradius. While payment delays and insolvencies have remained relatively stable over the last six months, the Atradius Consumer Durables Market Monitor reports a weaker picture for the six months ahead. Growing economic uncertainty, expected to impact consumer spending, and higher import costs are the primary factors behind the deteriorating outlook and Atradius is warning manufacturers, suppliers and retailers to take extra measures to protect themselves. The predicted decline follows a relatively robust performance in the British non-food retail sector in 2016. However, 2017 will be a more challenging year with the weaker British pound putting upward pressure on prices and uncertainty surrounding the UK's future relationship with the EU weighing on investment spending. This is likely to cause businesses to reduce hiring with real wages expected to start decreasing over the next six months, reducing disposable income. Meanwhile, higher inflation -- forecast to be 2.6% up in 2017 -- will make consumer goods more expensive, both hurting consumer spending and impacting GDP growth. Private consumption is expected to grow 1.6% in 2017 -- down from 2.8% year on year -- and UK retail sales growth is expected to slow down to 0.6%, down from 2.5% in 2016. Simon Rockett of Atradius, which protects businesses from the risks of trading by paying out claims in the event of non-payment and providing real-time analysis on the risks and opportunities of domestic and international trade, said: "Higher costs for imported materials have already begun to force retailers to reconsider their sources for raw materials and their pricing of goods. Retailers' biggest challenge ahead will be achieving real growth while contending with increased prices as import costs are passed on to customers. Margins have already been hit by unseasonable weather which forced lengthy discount periods and this is expected to continue well into 2017. In addition, the increase in labour costs caused by the rise in National Living Wage could force retailers to reconsider their cost base and store portfolios, closing outlets that are not sufficiently profitable to keep open." "The British retail market remains highly competitive and faces a number of key challenges; increasing costs, changing shopping behaviour and lower consumer spending. Insolvencies are expected to increase slightly along with the rising economic uncertainty and with a probable increase in payment delays. However, even in a challenging market there are opportunities for growth and with the right protection and strategy in place, successful trade relationships can flourish and the pitfalls of potential non- payment avoided." "Looking forward, the success and resilience of consumer durables businesses increasingly depend on their ability to adopt new strategies such as building-up and expanding their online business or offering additional services. However, this requires the willingness to change as well as financial investments; it remains to be seen if many of the smaller, already struggling retailers have those means to realign their businesses in order to remain competitive." For more information on Atradius and a suite of free economic reports, export guides and trading advice, visit www.atradius.co.uk. =============== X X X X X X X X =============== * BOOK REVIEW: Transnational Mergers and Acquisitions ----------------------------------------------------- Author: Sarkis J. Khoury Publisher: Beard Books Softcover: 292 pages List Price: $34.95 Review by Gail Owens Hoelscher Order your personal copy today at http://is.gd/hl7cni Transnational Mergers and Acquisitions in the United States will appeal to a wide range of readers. Dr. Khoury's analysis is valuable for managers involved in transnational acquisitions, whether they are acquiring companies or being acquired themselves. At the same time, he provides a comprehensive and large-scale look at the industrial sector of the U.S. economy that proves very useful for policy makers even today. With its nearly 100 tables of data and numerous examples, Khoury provides a wealth of information for business historians and researchers as well. Until the late 1960s, we Americans were confident (some might say smug) in our belief that U.S. direct investment abroad would continue to grow as it had in the 1950s and 1960s, and that we would dominate the other large world economies in foreign investment for some time to come. And then came the 1970s, U.S. investment abroad stood at $78 billion, in contrast to only $13 billion in foreign investment in the U.S. In 1978, however, only eight years later, foreign investment in the U.S. had skyrocketed to nearly #41 billion, about half of it in acquisition of U.S. firms. Foreign acquisitions of U.S. companies grew from 20 in 1970 to 188 in 1978. The tables had turned an Americans were worried. Acquisitions in the banking and insurance sectors were increasing sharply, which in particular alarmed many analysts. Thus, when it was first published in 1980, this book met a growing need for analytical and empirical data on this rapidly increasing flow of foreign investment money into the U.S., much of it in acquisitions. Khoury answers many of the questions arising from the situation as it stood in 1980, many of which are applicable today: What are the motives for transnational acquisitions? How do foreign firms plans, evaluate, and negotiate mergers in the U.S.? What are the effects of these acquisitions on competition, money and capital markets; relative technological position; balance of payments and economic policy in the U.S.? To begin to answer these questions, Khoury researched foreign investment in the U.S. from 1790 to 1979. His historical review includes foreign firms' industry preferences, choice of location in the U.S., and methods for penetrating the U.S. market. He notes the importance of foreign investment to growth in the U.S., particularly until the early 20th century, and that prior to the 1970s, foreign investment had grown steadily throughout U.S. history, with lapses during and after the world wars. Khoury found that rates of return to foreign companies were not excessive. He determined that the effect on the U.S. economy was generally positive and concluded that restricting the inflow of direct and indirect foreign investment would hinder U.S. economic growth both in the short term and long term. Further, he found no compelling reason to restrict the activities of multinational corporations in the U.S. from a policy perspective. Khoury's research broke new ground and provided input for economic policy at just the right time. Sarkis J. Khoury holds a Ph.D. in International Finance from Wharton. He teaches finance and international finance at the University of California, Riverside, and serves as the Executive Director of International Programs at the Anderson Graduate School of Business. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2017. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Joseph Cardillo at 856-381-8268. * * * End of Transmission * * *