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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Wednesday, July 3, 2019, Vol. 20, No. 132

                           Headlines



F R A N C E

ALTRAN TECH: Moody's Reviews Ba2 CFR for Upgrade on Capgemini Deal


I T A L Y

STEFANEL: Enters Administration Following Parent's Collapse


K A Z A K H S T A N

KCELL JSC: Fitch Affirms BB LongTerm IDR, Outlook Positive


U N I T E D   K I N G D O M

AVON INT'L: Fitch Rates $400MM Secured Notes Due 2022 'BB+'
BRITISH STEEL: Receives Up to Ten Bids After Deadline Passes
CIFC EUROPEAN I: Fitch Assigns B-(EXP) Rating on Cl. F Debt
JACK WILLS: Faces Cash Crunch After Trading in Spring Plummets
LA BELLE EPOQUE: Shuts Down Amid Ongoing Row with Knutsford Council

OFFICE: Plans to Enter Into Company Voluntary Arrangement
WOODFORD EQUITY: Trading of Fund Remains Suspended
YORKSHIRE CARNEGIE: Creditors Back Company Voluntary Arrangement

                           - - - - -


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F R A N C E
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ALTRAN TECH: Moody's Reviews Ba2 CFR for Upgrade on Capgemini Deal
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Moody's Investors Service placed the ratings of Altran
Technologies, a leading provider of engineering and research &
development services, under review for upgrade namely the Ba2
corporate family rating, the Ba2-PD probability of default rating,
and the Ba2 ratings on the senior secured credit facilities
including the EUR250 million revolving credit facility and the
EUR1,380 million term loan both issued by Altran Technologies, and
the USD300 million term loan issued by US-based subsidiary Octavia
Holdco Inc. The outlook has been changed to rating under review
from negative.

The action follows the announcement on June 24, 2019 that Altran
and Capgemini have entered into exclusive discussions whereby
Capgemini is to acquire Altran through a friendly takeover.

RATINGS RATIONALE

The review for upgrade reflects Moody's expectation that, should
the acquisition by Capgmini be consummated, Altran will become part
of an enterprise with a likely stronger overall credit profile than
if it remains a standalone entity. The review will also focus on
Capgemini's treatment of Altran's debt following the close of the
acquisition, which Moody's expects will be fully repaid.

Cap Gemini already acquired shares representing 11% of Altran
capital from a group of shareholders led by private equity firm
Apax Partners, and will launch a public cash offer for all of the
remaining shares. Completion of the acquisition is expected by the
end of the year.

Moody's understands that Capgemini has secured a bridge facility of
EUR5.4 billion to cover for the purchases of Altran's shares
(EUR3.6 billion) and the repayment of its gross debt (EUR1.8
billion). Capgemini plans to refinance the bridge facility with
existing cash of EUR1.0 billion and the balance by new debt
issuance, mostly bond issues.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

COMPANY PROFILE

Altran Technologies, headquartered in Neuilly-sur-Seine, France, is
a leading provider of engineering and research and development
services, with revenue of EUR2.9 billion in 2018. The company is
listed on the Euronext Paris stock exchange since 1987 and is a
component of the CAC Mid 60 equity index.




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I T A L Y
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STEFANEL: Enters Administration Following Parent's Collapse
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Business Sale reports that with over 400 retail and franchise
stores operating across the world, Italian womenswear company
Stefanel was put into administration following the collapse of its
parent company.

Professional advisory firm CVR Global has been called in to handle
the administration process, with partners Richard Toone and David
Oprey appointed as joint administrators, Business Sale relates.

The company's advisers, retail property consultants GCW, stated
that Stefanel's London stores in Covent Garden and Regent Street
will be marketed for lease as a result of the insolvency, Business
Sale discloses.

"Unfortunately both of Stefanel's stores have experienced a
downturn in trade to the point where their income is no longer
covering rental costs.  After reviewing the business' performance,
the prospects of a turnaround were limited, so the decision was
taken to wind the business down in the best interests of creditors,
one of which is the firm's parent company Stefanel," Business Sale
quotes Mr. Toone as saying.

"Both stores will continue to trade as normal while we try to
maximise returns for creditors in the form of selling stock as well
as recovering rental deposits.  We are unable to say at this stage
when the stores will close."

Stefanel was established in 1959, and survived a debt restructuring
in 2017, after which point control was taken over by its investors
Attestor Capital, Business Sale recounts.  However, its relaunch
was unsuccessful and the company was forced to seek creditor
protection come December that year, Business Sale notes.

Although the company was instructed to present a restructuring plan
to a bankruptcy court by mid-June 2019, it failed to reach an
agreement with its creditor banks and Attestor Capital, which held
approximately GBP36 million in debt, Business Sale states.




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K A Z A K H S T A N
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KCELL JSC: Fitch Affirms BB LongTerm IDR, Outlook Positive
----------------------------------------------------------
Fitch Ratings has affirmed Kcell JSC's Long-Term Issuer Default
Rating (IDR) at 'BB'. The Outlook is Positive mirroring that on the
company's parent. All ratings have been removed from Rating Watch
Positive (RWP) where they were placed on December 18, 2018 and
maintained on June 17, 2019.

The resolution of the RWP and Positive Outlook follows the similar
rating action on Kazakhtelecom (BB+/Positive) following its
purchase of a 75% stake in Kcell and successful fund raising to
finance the purchase of the remaining 49% share in its joint
venture with Tele2 (Tele2/Altel JV).

Kcell is the market-leading mobile-only operator in Kazakhstan.
KCell's rating is driven by an overall strong linkage to its
stronger parent Kazakhtelecom with the lower notch difference
reflecting its standalone status of a public company with
significant minority shareholding and the parent's commitment to
running Kcell as a separate entity. Kcell's standalone credit
profile is consistent with 'BB'. Kcell heavily relies on its parent
for the provision of its backbone and mobile network
infrastructure. Fitch expects its leverage to remain moderate and
to not exceed 2.5x on a funds from operations (FFO) adjusted net
basis.

KEY RATING DRIVERS

Strong Parental Linkage. Fitch assesses the overall
parent-subsidiary linkage between Kcell and its parent
Kazakhtelecom as strong, with the parent being the stronger entity.
Kcell is rated under a top-down approach, one notch below the
Kazakhtelecom group's consolidated credit profile. Kazakhtelecom is
the national incumbent telecoms operator, with strong market
positions in fixed-line/broadband, pay-TV and also mobile segment
controlling more than 60% of the mobile market through its
subsidiaries.

Weak Legal Ties. Fitch views the legal ties as weak given the lack
of parental guarantees on a significant amount of Kcell's debt.
Kcell is likely to remain Kazakhtelecom's material subsidiary, with
some cross-default provisions in place.

Any intercompany loans to the parent would need approval from
KCell's independent directors only, which limits the parent's
ability to tap cash flows of its subsidiary. This is because one of
the regulatory conditions for Kazakhtelecom's acquisition of KCell
was the former's commitment to run the latter as a separate
subsidiary, with its own board, management and strategy. The parent
does not provide any formal guarantees on any Kcell debt.

Strong Operating Ties. Operating ties between Kcell and its parent
are strong. Kcell lacks ubiquitous backbone network coverage across
Kazakhstan, and has relied heavily on Kazakhtelecom for renting
backbone infrastructure. Fitch expects this relationship to
continue, and also expect Kcell to start sharing mobile
infrastructure with its sister companies, increasing operating ties
with the Kazakhtelecom group. However, management commonality is
likely to remain low, and Fitch expects Kcell to maintain its
independent treasury functions.

Strong Strategic Ties. Fitch views strategic ties between Kcell and
its parent as strong. Control over Kcell allows Kazakhtelecom to
have leading market positions in the Kazakh mobile market, with
Kcell servicing about 35% of the mobile subscribers in the country.
Active infrastructure and potentially spectrum sharing across the
Kazakhtelecom group may allow for more efficient and faster network
upgrades and roll-out, including 5G.

'BB' Standalone Credit Profile. Kcell's standalone credit profile
corresponds to 'BB', reflecting its leading mobile market
positions, but also heavy dependence on infrastructure sharing,
smaller size vs. higher-rated mobile-only peers, market share and
service revenue pressures, and moderate leverage that Fitch
projects will not exceed 2.5x on a FFO adjusted net basis.

Operating Stabilisation. Fitch expects Kcell to stabilise its
revenue and EBITDA after significant pressures in 2016-2018. Signs
of stabilisation were clear in 1Q19 results, with service revenues
shedding 1.8% yoy, an improvement compared with 3.0% yoy losses for
2018. Average revenue per user demonstrated 9.5% yoy growth but
this fell short of fully compensating for subscriber losses
reported at 12.2% yoy in 1Q19.

Market Consolidation, Sharing Helpful. The mobile market
consolidation at end-2018 is likely to create a more stable
competitive environment, with a stronger emphasis on quality rather
than price. nfrastructure sharing with its sister companies will
provide Kcell with access to the pool of shared mobile towers that
is more than double in size compared with what was available under
its cancelled sharing agreement with VEON Ltd. (BB+/Positive).

Joint 5G Development. Fitch expects 5G development costs to be
broadly shared across the Kazakhtelecom group, reducing an
investment onus for KCell. 5G roll-out requirements are unlikely to
be demanding, with the coverage of key cities broadly sufficient to
meet regulatory milestones. 5G spectrum allocation process is still
at an early stage in Kazakhstan, with no set deadlines so far,
which is likely to provide sufficient timing flexibility.

Moderate Leverage. Fitch expects the company's leverage to remain
moderate, at below 2.5x on a FFO adjusted basis, supported by both
operating and capex synergies from closer cooperation with the
Kazakhtelecom group companies. Fitch projects 2019 FFO adjusted net
leverage to be pushed by up to 0.3x by the KZT14.5 billion fine on
an early termination of the infrastructure sharing agreement with
VEON and KZT2.9 billion disputed tax claims. Fitch expects Kcell to
maintain a broadly stable level of dividends, with nearly all free
cash flow returned to the shareholders.

DERIVATION SUMMARY

Kcell's operating and leverage profile is similar to that of its
Russian mobile peers PJSC Mobile TeleSystems (MTS)(BB+/Stable) and
PJSC MegaFon (BB+/Stable), but the Russian operators benefit from
significantly larger scale, greater presence in the
fixed-line/broadband segment, largely proprietary backbone
infrastructure and a completion of 4G roll-out.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for Kcell include:

  - Service revenue declining by 1.5% yoy in 2019, gradually
stabilizing after 2020

  - Improving EBITDA margin on the back of synergies with the
Kazakhtelecom group, with 0.5% annual margin increments from 2020

  - Capex corresponding to the company's guidance of 'mid-teens'
percentage of revenues in 2019

  - KZT14. 5 billion fine on an early termination of the network
sharing agreement with VEON in 2019

  - Broadly stable dividends on par with 2018

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead to
Positive Rating Action

  - Stronger linkage to parent Kazakhtelecom, including through
guarantees provided by Kazakhtelecom on a significant amount of
Kcell's debt

Future Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  - Weaker linkage to Kazakhtelecom

  - Leverage sustainably above 3.5x FFO-adjusted net leverage
without a clear path for deleveraging and no commitment by the
parent to provide financial support

LIQUIDITY AND DEBT STRUCTURE
Comfortable Liquidity. Fitch views Kcell's liquidity as
comfortable, with KZT 6.8 billion cash at end-March 2019 supported
by over KZT40 billion of available credit line with up-to-three
year maturities. The company already pre-funded its KZT14.5 billion
fine liability.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The rating of Kcell is linked to the credit quality of
Kazakhtelecom, its parent company, as analyzed under Fitch's
criteria on parent and subsidiary rating linkage. A change in
Fitch's assessment of the credit quality of Kazakhtelecom may
result in a change in the rating on Kcell.




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U N I T E D   K I N G D O M
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AVON INT'L: Fitch Rates $400MM Secured Notes Due 2022 'BB+'
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Fitch Ratings has maintained the ratings for Avon Products, Inc.
and Avon International Operations, Inc. on Rating Watch Positive ,
and has assigned a 'BB+'/'RR1' rating to Avon International Capital
p.l.c's (AIC) offering of $400 million of senior secured notes due
2022. AIC is a wholly-owned subsidiary of Avon. Proceeds from the
secured note offering will be used to fund an announced tender
offer for $387 million of Avon's senior unsecured notes due 2020.
Given the amount of secured debt in the capital structure, Fitch
has downgraded the unsecured notes to 'B'/'RR5' from 'B+'/'RR4'.

The ratings remain on Rating Watch Positive, reflecting Naturas
Cosmeticos S.A.'s (Natura: BB/Rating Watch Negative) prior
announcement on May 22, 2019 that it will acquire Avon in an
all-stock transaction valued at USD3.7 billion on an enterprise
value basis (5.6x/9.5x 2018 EBITDA with/without synergies).
Resolution of the Rating Watch Positive will occur upon
consummation or termination of the proposed merger agreement with
Natura. Avon's ratings could be upgraded if the merger closes,
since Avon is expected to be rated in line with Natura, which is
likely to be rated at or above 'BB-', higher than Avon's existing
'B+' rating.

The new senior secured notes are guaranteed by the same guarantors
under AIC's revolving credit agreement. The notes and guarantees
are secured equally and ratably by the assets of Avon and the
guarantors that secure the first-lien revolving credit facility and
the outstanding 7.875% senior secured notes due 2022 issued by
AIO.

KEY RATING DRIVERS

Natura to Acquire Avon: On May 22, 2019, Natura announced an
agreement to acquire Avon in an all-stock transaction valued at
USD3.7 billion on an enterprise value basis (5.6x/9.5x 2018 EBITDA
with/without synergies). A new holding company for the group,
Natura Holding S.A. (Natura &Co), will wholly own the shares of
Natura and Avon, as a result of a corporate restructuring to be
implemented. Once the transaction is completed, Natura &Co will be
held by approximately 76% of Natura's shareholders and 24% of
Avon's shareholders. The closing of the transaction is subject to
customary precedent conditions, including approval by shareholders
of both companies and by CADE, a Brazilian regulatory agency.

Natura announced a bridge loan of USD1.6 billion to support
immediate refinancing risks in the event Avon's USD1.1 billion
bondholders do not grant a waiver for breaching a change of control
(CoC) clause. Natura is also required to redeem $530 million of
preferred shares issued by Avon due to a CoC clause.

Profitability Pressures: Avon's EBITDA declined to USD347 million,
or 29%, in 2018 compared with Fitch's expectations for relatively
flat EBITDA on a like-for-like (LFL) basis, which excludes the
effects of ASC 606. Revenue was in line with Fitch's 2018 forecast;
however, margins declined markedly in the second half of 2018 due
to adverse foreign exchange movements, increased investments in
representatives and advertising, and supply chain inflation in
material and logistics costs, partially offset by cost reduction
initiatives.

On a LFL basis, EBITDA margin in the second half of 2018 declined
320 bps to 7.1% versus the corresponding year-ago period, resulting
in a full year 2018 EBITDA margin of 6.9%, which is 193 bps less
than the 8.8% achieved in 2017. Fitch estimates negative FX and
operational challenges accounted for 49% and 51%, respectively, of
the nearly USD143 million year-over-year decline in EBITDA in 2018.
There is increased risk that greater-than-anticipated supply chain
inflation may mitigate the benefits of Avon's cost reduction
initiatives, which are required to offset increased investments
associated with the company's Open Up Avon strategy. This would
make it more challenging for the company to improve its profit
margin and FCF, particularly if revenue trends remain negative.

Elevated Leverage: As a result of the aforementioned profitability
pressures, Avon's gross leverage increased to approximately 5x, the
upper end of Fitch's negative rating sensitivity, at year-end (YE)
2018 compared with 4.4x in 2017, despite USD300 million of debt
reduction in 2018. Fitch estimates year-over-year gross leverage
remained flat at 4.4x in 2018, excluding the negative effects of
foreign currency fluctuations.

Fitch forecasts gross leverage will remain relatively flat at
approximately 5x in 2019 due to continued FX headwinds in the first
half of 2019 and inflationary pressures, partially offset by cost
savings and pricing actions to mitigate inflation. The company has
the option of pursuing incremental debt reduction in the first half
of 2019 funded with at least USD60 million of proceeds from asset
sales. The company's decision to repay incremental debt using
divestiture proceeds is contingent on market conditions in 2019
when the company seeks to refinance its USD386 million of senior
unsecured notes due in March 2020.

Accelerated Declines in Reps and Volume: Declines in certain of
Avon's key performance indicators (KPIs) accelerated in the second
half of 2018, particularly active representatives and volume,
despite turnaround efforts made to date. Active reps declined
nearly 6% in the second half of 2018 led by South America (largely
Brazil), down 7%, and EMEA (largely Russia), down 6%. Avon's total
active reps declined to approximately five million at YE 2018
compared with approximately six million at YE 2017. Lack of
improvement in active reps and volume may jeopardize Fitch's
expectations for gradual improvement in organic revenue growth
trends on a constant currency basis through 2022, and potentially
result in negative rating actions.

Brazil Underperforms Key Markets: Brazil is Avon's largest (23% of
revenue) and worst performing market relative to Avon's top five
markets, reflecting the scale and depth of the challenges in
Brazil. Quarterly revenue from Brazil has declined at a mid- single
to low double-digit rate at constant currency since the second
quarter of 2017. Avon's results in Brazil continue to be negatively
affected by competitive pressures, a difficult macroeconomic
environment, weaker volume and lower appointments of new
representatives, partly due to stricter credit requirements. Avon
appointed a new general manager in Brazil, effective Sept. 17,
2018, to lead the company's efforts to improve service quality and
training for reps.

Increased Investments to Support Strategy: Avon's strategy to
strengthen the company's competitive position and modernize the
core business requires USD300 million of incremental investments,
including USD230 million of capex, from 2019-2021. The investments
will be in two areas: commercial spend and digital/IT
infrastructure. Commercial spend consists of tools and training for
reps, advertising to modernize the Avon brand, processes to
accelerate the pace of product innovation, new expansion into
markets, such as China and India, and channel investments,
primarily e-commerce.

Digital and IT infrastructure spend targets data center
modernization and digital tools, including individual, personalized
on-line store pages for reps, new mobile tools to assist with the
rep's sale process, analytics and digital marketing. Fitch expects
the costs of these investments will be cash flow neutral in
aggregate through 2021 due to USD400 million of targeted costs
savings across manufacturing, distribution, procurement, back
office, as well as lower taxes and interest expense due to Avon's
early debt prepayment in June 2018.

FX, Emerging Markets Exposure: Avon's revenue base is
geographically diverse, selling or distributing products in 56
countries and territories. Avon's top-10 markets, mostly emerging
markets, account for 70% of revenue. Latin America represents 52%
of revenue, with Brazil, the single largest market, contributing
23% of total revenue in 2018. Negative FX translation has an
outsized impact on Avon's financials as most its cash flows and
profits are generated outside the U.S. Economic and political
volatility also can have a significant impact.

Strong Competition: The beauty industry is structurally attractive
and tends to be a resilient category throughout economic cycles,
but it's a highly competitive market, the degree of which varies by
Avon's end market. Avon's competitors include large and well-known
cosmetics, fragrance and skincare companies and niche firms that
have benefitted from lower barrier to entry due to low cost
marketing via social media. Avon's competes with other direct
selling companies as well as products sold to consumers via
alternate distribution channels, including e-commerce, mass market
retail and prestige retail.

DERIVATION SUMMARY

Avon's rating (B+/Rating Watch Positive) reflects its significant
scale as a leading direct-selling beauty company with USD5.4
billion in revenue in 2018, and its well-recognized brand in the
beauty industry. The Rating Watch Positive reflects Naturas
Cosmeticos S.A.'s (Natura: BB/Rating Watch Negative) announcement
that it will acquire Avon in an all-stock transaction valued at
USD3.7 billion on an enterprise value basis (5.6x/9.5x 2018 EBITDA
with/without synergies).

Resolution of the Rating Watch Positive will occur upon
consummation or termination of the proposed merger agreement with
Natura. Avon's ratings could be upgraded if the merger closes,
since Avon is expected to be rated in line with Natura, which is
likely to be rated at or above 'BB-', higher than Avon's existing
'B+' rating.

In terms of comparable companies, Fitch rates Anastasia
Intermediate Holdings, LLC's (ABH), a prestige cosmetics brand
primarily focused in the U.S., 'BB-'/Stable Outlook. The ratings
reflect the company's strong track record of growth and customer
connections, good financial profile including above-average EBITDA
margin, positive FCF and leverage of mid-3x following a
debt-financed dividend. Fitch projects leverage will trend toward
high 2x over the next two to three years. The rating also considers
the company's narrow product and brand profile, recent explosive
growth that could reverse course, and risk that continued beauty
industry market share shifts could weaken ABH's projected growth
through the risk of new entrants or existing players regaining
share.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case For The Issuer as a
Standalone Entity:

  -- Revenue is forecast to decline nearly 7%, including a 5% point
headwind from FX, to USD5.1 billion in 2019 and remain relatively
flat through 2022, barring further currency movements;

  -- Operating EBITDA is forecast to be approximately USD365
million in 2019 and approximately USD450-USD475 million through
2022 due to cost savings, enhanced revenue management and
increasing rep productivity;

  -- Fitch expects the incremental investment plan, which also
includes USD230 million of capex and USD130 million for cash
restructuring, will be cash flow neutral through 2021 due to
expense reductions, working capital improvements from inventory,
tax planning and lower interest expense;

  -- FCF is expected to be approximately USD30 million in 2019,
including approximately USD130 million of cash restructuring
charges and incremental capex associated with Avon's investment
plan. Fitch expects FCF will increase to approximately USD100
million in 2020, reflecting EBITDA margin expansion and lower cash
restructuring costs, and exceed USD150 million in 2021 and 2022.
Fitch assumes the company's dividend remains suspended throughout
the forecast period and cash interest on the cumulative preferred
stock continues to be deferred;

  -- Fitch expects gross leverage (total debt to operating EBITDA)
to remain flat in 2019 at approximately 5.0x and decline to the low
4.0x range through 2022.

RATING SENSITIVITIES

Resolution of the Rating Watch Positive will occur upon
consummation or termination of the proposed merger agreement with
Natura. Avon's ratings will likely be upgraded by at least one
notch if the merger is successfully closed given Natura is
currently rated 'BB', two notches higher than Avon's rating of
'B+'.

Developments That May, Individually or Collectively, Lead to
Positive Rating Action on a Standalone Basis

  -- Flat-to-modestly positive reps and volume growth as well as
low-single digit organic growth;

  -- Gross leverage of 3.5x;

  -- Lease adjusted gross leverage of 4x;

  -- FCF margin sustained at or above 1.5%.

Developments That May, Individually or Collectively, Lead to
Negative Rating Action on a Standalone Basis

  -- Accelerating declines in key performance indicators in 2019,
particularly active reps and orders, which would indicate a greater
probability of extended declines in revenue;

  -- Significant currency challenges in key markets, such as Brazil
or Russia, which affect Avon's ability to service its
dollar-denominated debt;

  -- Sustained increase in gross leverage and lease adjusted gross
leverage over 5.0x and 5.5x, respectively;

  -- Sustained FCF margin less than 1%.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: As of March 31, 2019, Avon had USD406 million
of cash and USD197 million in revolver availability, net of USD28
million in outstanding letters of credit. The senior secured
revolving credit facility has total capacity of EUR200 million, or
USD225 million, and expires in February 2022, provided that it
shall terminate on the 91st day prior to the maturity of the 4.60%
Notes due 2020, if on such 91st day, the applicable notes are not
redeemed, repaid, discharged or otherwise refinanced in full.
Proceeds from the pending senior secured note offering will be used
to complete a tender offer for its existing senior notes due 2020,
thereby eliminating the risk of early termination of the RCF.

All obligations of AIC under the 2019 RCF and proposed offering of
senior secured notes, and AIO under the existing senior secured
notes are unconditionally guaranteed by Avon, AIO and each other
material United States or English restricted subsidiary of the Avon
(collectively, the Obligors), in each case, subject to certain
exceptions. The obligations of the Obligors are secured by first
priority liens on and security interests in substantially all of
the assets of the Obligors, in each case, subject to certain
exceptions.

Capital Structure: As of March 31, 2019, Avon had total debt
principal outstanding of USD1.9 billion, consisting of USD500
million of senior secured bonds due 2022, USD1.1 billion of senior
unsecured bonds, and USD498 million of preferred stock (includes
accrued dividends), which Fitch assigned 50% equity credit. AIC is
the borrower for the revolving credit facility, AIO is the borrower
for the senior secured notes, whereas the senior unsecured notes
are obligations of the parent, Avon Products Inc. The revolving
credit facility contains a minimum interest coverage ratio and a
maximum net leverage ratio.

Recovery Analysis: Fitch's recovery analysis assumes $370 million
of operating EBITDA on a going concern basis. The going concern
EBITDA assumes the company exits smaller or underperforming
markets, potentially including Brazil, and the remaining markets
benefit from greater senior management attention and allocation of
financial resources, resulting in an operating profit margin in the
low teens on a smaller revenue base of approximately $3.5 billion.
Fitch then applies a recovery multiple of 4x, resulting in an
estimated enterprise value (EV) of nearly $1.5 billion. The
recovery multiple of 4x EV/EBITDA multiple is at the low end of
recent consumer products transactions, but considers Avon's
operating challenges, particularly top-line growth, reliance on a
single distribution channel (direct selling) and greater relative
risk profile due to its emerging market focus.

Avon International's senior secured revolver and senior secured
notes are expected to have outstanding recovery prospects and as
such are rated 'BB+'/'RR1', three notches above the IDR. The
secured notes and RCF are secured by first-priority security
interests in the collateral, consisting of substantially all of the
tangible and intangible assets of the issuer and the guarantors,
including capital stock owned by the issuer or a guarantor and
their contract rights, such as those under their leases and
licenses with respect to intellectual property, other than excluded
assets. The secured notes, RCF and any additional first lien
obligations, subject to any permitted liens, will share in the
benefit of such security interests on a pari passu basis.

Fitch has downgraded the unsecured notes to 'B'/'RR5' from
'B+'/'RR4' due to the amount of secured debt in the capital
structure.


BRITISH STEEL: Receives Up to Ten Bids After Deadline Passes
------------------------------------------------------------
Jamie Waller at Grimsby Live reports that up to ten bids have been
received for British Steel as workers wait for news on the
company's fate after the deadline passed for interested companies
to show their interest.

The potential interested parties are thought to include UK-based
Liberty Steel, which already employs workers in Scunthorpe, Indian
manufacturer JSW and Chinese companies Hesteel Group and Baowu,
Grimsby Live discloses.

Network Rail is also thought to be one of a number of companies
interested in taking on parts of the site but not the complete
steelworks, Grimsby Live states.

According to Grimsby Live, The Financial Times has reported that
the accountancy firm which is running the sales process on behalf
of the Official Receiver was expecting around ten bids before the
June 30 deadline.

Greybull Capital, British Steel's owner at time of the liquidation,
is also understood to be looking at parts of the business, Grimsby
Live notes.

However, the crucial question is whether the company will be sold
as profit-making business or broken up, Grimsby Live says.

There are also suggestions one of the key companies linked to the
site, Liberty, have cooled their interest since the bidding process
started, Grimsby Live relays.

Network Rail has announced it would submit an offer for the
division which handles the welding, finishing and storing of rails
for the country's network, Grimsby Live discloses.
However, it would only make the offer if no other buyer could be
found, according to Grimsby Live.

              About British Steel

British Steel Limited is a long steel products business founded in
2016 with assets acquired from Tata Steel Europe by Greybull
Capital. The primary steel production site is Scunthorpe
Steelworks, with rolling facilities at Skinningrove Steelworks,
Teesside and Hayange, France.

British Steel has about 5,000 employees.  There are 3,000 at
Scunthorpe, with another 800 on Teesside and in north-eastern
England.  The rest are in France, the Netherlands and various sales
offices round the world.

British Steel was placed in compulsory liquidation on May 22, 2019.
The liquidation came after the Company failed to obtain an
emergency state loan of about GBP30 million.

The Government's Official Receiver has taken control of the company
as part of the liquidation process. Accountancy firm EY has been
named Special Manager in the case, and will be assisting the
Receiver.

The Company will be trading normally as its search for a buyer is
ongoing.


CIFC EUROPEAN I: Fitch Assigns B-(EXP) Rating on Cl. F Debt
-----------------------------------------------------------
Fitch Ratings has assigned CIFC European Funding CLO I Designated
Activity Company expected ratings as follows:

Class X: 'AAA(EXP)sf'; Outlook Stable

Class A: 'AAA(EXP)sf'; Outlook Stable

Class B-1: 'AA(EXP)sf'; Outlook Stable

Class B-2: 'AA(EXP)sf'; Outlook Stable

Class C: 'A(EXP)sf'; Outlook Stable

Class D: 'BBB-(EXP)sf'; Outlook Stable

Class E: 'BB(EXP)sf'; Outlook Stable

Class F: 'B-(EXP)sf'; Outlook Stable

Class Y: 'NR(EXP)sf'

Subordinated notes: 'NR(EXP)sf'

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

The transaction is a cash flow collateralised loan obligation (CLO)
of mainly European senior secured obligations. Net proceeds from
the issuance of the notes will be used to fund a portfolio with a
targeted amount of EUR400 million. The portfolio is managed by CIFC
CLO Management II LLC. The CLO features a 4.5-year reinvestment
period and an 8.5-year weighted average life (WAL).

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch expects the average credit quality of obligors to be in the
'B' category. The Fitch- weighted average rating factor (WARF) of
the current portfolio is 32.35, below the indicative covenanted
maximum of 33.

High Recovery Expectations

At least 95% of the portfolio comprises senior secured obligations.
Recovery prospects for these assets are typically more favourable
than for second-lien, unsecured and mezzanine assets. The
Fitch-weighted average recovery rating (WARR) of the identified
portfolio is 66.4%, which is above the indicative covenanted
minimum of 64.5%.

Diversified Asset Portfolio

The transaction will include Fitch test matrices corresponding to
different top 10 obligor concentration limits and investment in
fixed-rate obligations. The transaction also includes various other
concentration limits, including the maximum exposure to the
three-largest Fitch-defined industries in the portfolio at 40% with
17.5% for the top industry. These covenants ensure that the asset
portfolio will not be exposed to excessive concentration.

Portfolio Management

The transaction has a 4.5-year reinvestment period and includes
reinvestment criteria similar to other European transactions.
Fitch's analysis is based on a stressed-case portfolio with the aim
of testing the robustness of the transaction structure against its
covenants and portfolio guidelines.

Cash Flow Analysis

Fitch used a customised proprietary cash flow model to replicate
the principal and interest waterfalls. This was also used to test
the various structural features of the transaction, as well as to
assess their effectiveness, including the structural protection
provided by excess spread diverted through the par value and
interest coverage tests.

Recovery Rate to Secured Senior Obligations

For the purpose of Fitch's Recovery Rate (RR) calculation, in case
no recovery estimate is assigned, Fitch will assume senior secured
loans to have a strong recovery. For senior secured bonds, recovery
will be assumed at 'RR3'. The different treatment in regards to
recovery reflects historically lower recoveries observed for bonds
and that revolving credit facilities (RCFs) typically rank pari
passu with loans but senior to bonds. The transaction features an
RCF limit of 15% to be considered when categorising a loan or bond
as senior secured.


JACK WILLS: Faces Cash Crunch After Trading in Spring Plummets
--------------------------------------------------------------
Sam Chambers at The Times reports that struggling fashion retailer
Jack Wills is hurtling towards a cash crunch after trading
plummeted in the spring.

According to The Times, the preppy chain is understood to be
burning through GBP28 million of cash injections arranged by its
private equity owner, BlueGem, which is led by Marco Capello.  Poor
weather hit high street sales and its spring/summer ranges are
currently discounted by as much as 50%, The Times discloses.

"Trading fell off a cliff two months ago," The Times quotes a
source as saying.  "There will be a crunch time soon when it comes
to buying stock for Christmas and it will all depend on what Marco
decides to do."

Another source said the business would need new cash or a
restructuring before the end of the summer, The Times notes.



LA BELLE EPOQUE: Shuts Down Amid Ongoing Row with Knutsford Council
-------------------------------------------------------------------
Charlotte Dobson at Manchester Evening News reports that wedding
venue La Belle Epoque has closed amid an ongoing row with the
council over unpaid legal fees and accusations of being a problem
tenant.

The company left its Knutsford premises in June, with brides and
grooms claiming to have been left in the lurch by those in charge,
Manchester Evening News relates.

According to Manchester Evening News, couples claim to have lost
thousands of pounds in deposits and payments for weddings that will
no longer go ahead at the popular Cheshire venue.

But bosses at La Belle Epoque say they have been the victims of a
"sustained campaign" by Knutsford Town Council to eject them from
the King Street building, and that most of the couples affected
have accepted their offer of an alternative venue, Manchester
Evening News discloses.

The council, in a statement posted online, said the action was the
"culmination of four years of problems as tenant", Manchester
Evening News notes.

La Belle Epoque had entered into a Company Voluntary Agreement
(CVA) on Feb. 19 to pay off a large debt to HMRC and other
creditors, Manchester Evening News recounts.

The company says this was implemented to enable the business to
continue trading "from a position of strength", Manchester Evening
News relays.


OFFICE: Plans to Enter Into Company Voluntary Arrangement
---------------------------------------------------------
Jessica Clark at City A.M. reports that Office is exploring options
for a restructuring plan that could see the footwear chain shutter
a number of its UK stores.

The retailer has appointed advisory firm Alvarez & Marsal to plan a
potential company voluntary arrangement (CVA), City A.M., relays,
citing Sky News.

According to City A.M., sources told the broadcaster that a CVA is
not definite, and Office could explore different restructuring
options.

Office is owned by Johannesburg-listed holding company Truworths
International, which bought Office for around GBP350 million in
2015.  Office has more than 160 stores globally, in the UK, Ireland
and Germany, as well as concessions in Topshop stores in New York,
Las Vegas and Chicago, City A.M. discloses.

It is unclear whether the CVA will affect the retailer's
international operations, City A.M. notes.

Alvarez & Marsal is expected to complete a restructuring plan for
the shoe shop in the next few weeks, City A.M. states.


WOODFORD EQUITY: Trading of Fund Remains Suspended
--------------------------------------------------
Kevin Peachey at BBC News reports that well-known stockpicker Neil
Woodford's flagship fund will remain locked for investors, it has
been confirmed.

According to BBC, the extension, announced as the initial 28-day
suspension expired, means investors will have to wait at least
another month to withdraw their money.

Investors in the Equity Income Fund have now not been able to
access their money since June 3, BBC notes.

Withdrawals were frozen after rising numbers of investors asked for
their money back, BBC discloses.

"It remains in the best interests of all investors in the fund to
continue the suspension," BBC quotes Link, the regulated manager of
the fund, as saying in a letter to investors posted on its
website.

The next update on the fund will be before July 29, the next formal
deadline for a review, BBC states.

Mr. Woodford fuelled speculation that the fund could be locked for
a long period, by reiterating that there is no "prescribed limit"
to the suspension in a video statement to investors, BBC relays.

As reported by the Troubled Company Reporter-Europe on June 5,
2019, The Telegraph related that trading of Mr. Woodford's flagship
Equity Income fund has been suspended "with immediate effect and
until further notice" due to high levels of withdrawals from
investors.  According to The Telegraph, the GBP3.7 billion fund has
suffered heavy outflows since its assets peaked at GBP10.2 billion
in June 2017 -- with GBP560 million pulled out of the fund in the
last month alone.  It has been among the worst performing income
funds since it peaked in 2017 and for investors that bought at the
launch positive returns made at the start have been all-but wiped
out, The Telegraph noted.


YORKSHIRE CARNEGIE: Creditors Back Company Voluntary Arrangement
----------------------------------------------------------------
Dave Craven at The Yorkshire Post reports that troubled Yorkshire
Carnegie's future has been secured after creditors on June 28
approved a Company Voluntary Arrangement that will allow the club
to play next season.

The club had been facing huge uncertainty after hitting financial
problems late last year and subsequently struggled to find a
solution in recent months, The Yorkshire Post relates.

Unable to meet their liabilities, a CVA was proposed just over a
fortnight ago and that has now been unanimously backed, The
Yorkshire Post discloses.

According to The Yorkshire Post, creditors were offered a deal of
15p in the GBP1 which was approved by a majority of 100 per cent at
a meeting on June 28.



                           *********


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.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

Copyright 2019.  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.


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