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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, January 8, 2020, Vol. 21, No. 6

                           Headlines



C R O A T I A

BOROVO: CERP to Use HT, Podravka Shares as Loan Collateral


F R A N C E

3AB OPTIQUE: Moody's Upgrades CFR to B2, Outlook Stable


L U X E M B O U R G

REDE D'OR: Fitch Assigns BB Rating to Proposed Sr. Unsec. Bonds
REDE D'OR: S&P Rates New Senior Unsecured Notes 'BB-'


N E T H E R L A N D S

DELFT 2020: S&P Assigns Prelim B+ (sf) Rating to Cl. F-Dfrd Notes
STORM 2020-I: Moody's Assigns (P)Ba1 Rating to Sub. Cl. E Notes


U N I T E D   K I N G D O M

BELSTAFF: Survival Depends on Goodwill of Billionaire Owner
BLACK TYPE: Enters Administration, Business as Usual
BONMARCHE: Creditors Unlikely to Recover GBP23.9 Million Owed
HERITAGE HOTELS: Enters Administration, Hotel Remains Open
JAMIE'S ITALIAN: Creditors Set to Lose Most of GBP80MM Owed


                           - - - - -


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C R O A T I A
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BOROVO: CERP to Use HT, Podravka Shares as Loan Collateral
----------------------------------------------------------
Iskra Pavlova at SeeNews reports that Croatia's centre for
enterprise restructuring and privatization, CERP, said it decided
to use part of the government's shares in telecoms operator
Hrvatski Telekom (HT) and food, beverage and drug producer Podravka
as collateral for a EUR6.1 million (US$6.8 million) loan to
distressed footwear manufacturer Borovo.

CERP said in a statement last month, the loan, to be extended by
Croatia Banka, will be in the local kuna currency equivalent to
EUR6.1 million, SeeNews relates.

According to SeeNews, the statement said based on the decision,
CERP is now authorized to sign a long-term kuna loan with a euro
clause with the lender in its role as a provider of the
collateral.

It provided no further details on the loan terms, SeeNews notes.

The government has already intervened in the past, in 2017, to help
Borovo via pledging a portion of its shares in HT and in electrical
company Koncar as collateral for a HRK46 million loan to
state-owned development bank HBOR, aimed at helping the company
service obligations to employees and stabilize its operations,
SeeNews discloses.

Borovo was a leading footwear producer in Croatia and the region
before it ran into financial troubles.  Pre-bankruptcy proceedings
were launched against it in 2014, SeeNews recounts.




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F R A N C E
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3AB OPTIQUE: Moody's Upgrades CFR to B2, Outlook Stable
-------------------------------------------------------
Moody's Investors Service upgraded to B2 from B3 the corporate
family rating of 3AB Optique Developpement, a holding company
owning 100% of French optical retailer Alain Afflelou. At the same
time, the agency has upgraded the company's probability of default
rating to B2-PD from B3-PD. Moody's also upgraded to B2 from B3 the
EUR425 million senior secured notes due 2023 (consisting of fixed
and floating rate tranches) issued by the company. The outlook is
stable on all ratings.

"Our upgrade reflects the strengthening of Afflelou's key credit
metrics, its track record of successful operational execution, and
our expectations that Afflelou will maintain its current earnings
growth momentum and continue to generate positive free cash flow
over the next 12 to 18 months" says Guillaume Leglise, lead analyst
for Afflelou and Assistant Vice President.

RATINGS RATIONALE

The upgrade reflects the company's solid operating performance,
underpinned by positive like-for-like sales growth over the last
few years, notably mid-single digit growth in fiscal 2019 (year
ended July 31, 2019). The company's earnings are improving and as
such Afflelou's gross leverage (as adjusted by Moody's) improved to
5.6x in the 12 months to October 31, 2019, from 5.9x at end of July
2018. Moody's expects the company's sales and earnings to continue
to grow modestly in the next 18 months, enabling a further decrease
in leverage to around 5.5x.

Afflelou has benefited from improvements in the French optical
retail market in 2019, its main market of activity. Moody's expects
Afflelou will continue to benefit from earnings growth and continue
to slightly outperform the market in France supported by: (i) the
company's good operational execution, as illustrated by positive
sales performance and improving working capital management; (ii)
the recent rationalization made in its store network with some
franchise agreement terminations and the downsizing of its Optical
Discount banner; and (iii) further market share gains because small
independent retailers are struggling to cope with declining margins
owing to challenging trading conditions in France.

Moody's expects that Afflelou's sales growth will be lower than
levels seen in the past due to more challenging trading conditions
in France and potential adverse effects of the recently introduced
regulatory reform in France ("100% Sante"). Moody's nevertheless
believes that the effects of this reform will not be material for
Afflelou. The 100% Sante reform will likely pressure margins in the
French market because optical retailers will have to offer a basket
of affordable products from January 1, 2020, while a cut in the
reimbursement threshold for frames to EUR100 from EUR150
previously, may also prompt customers to purchase cheaper products.
However, Moody's expects that most of the impact will be felt by
small independent retailers, which have lower margins and lower
purchasing power vis-à-vis suppliers compared to Afflelou. In
addition, the reform will create opportunities for Afflelou, with
potentially higher volumes stemming from lower income customers who
will now be able to afford lower priced products. Moody's expects
long-term growth prospects in the French market, owing to an ageing
population, will also help mitigate the effects of the reform in
the long run. The company's ramp up in the hearing aid segment,
which recently became profitable, will also support revenues and
earnings going forward.

Besides a decrease in leverage, the upgrade also reflects
Afflelou's strong Moody's adjusted EBITDA margin of 25.5% and
interest cover of 3.2x (Moody's adjusted EBIT to interest) in the
12 months to October 31, 2019, relative to other specialty
retailers rated in the mid-to-low single "B" category.

Afflelou's liquidity is good. Despite the payment of a EUR52
million dividend to its shareholders (reflecting the repayment of
convertible bonds) in fiscal 2019, as at the end of October 2019
the company had a cash balance of EUR51.7 million and a EUR30
million revolving credit facility (RCF), which was undrawn.

The company's good liquidity profile is underpinned by positive
free cash flows, which it has generated over the last five years.
Moody's expects Afflelou's annual free cash flow to be between
EUR25 to EUR35 million (on a Moody's adjusted basis) in the next 24
months, owing to the company's resilient earnings, as well as its
asset-light profile on account of its franchise business model,
which requires limited capital spending.

Afflelou's revolver contains a minimum EBITDA maintenance covenant
(EUR45 million) that is activated if it is drawn by more than EUR5
million. Moody's expects the capacity under this covenant to remain
significant. There is no debt amortization until the notes of the
restricted group mature in October 2023.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Overall, Moody's considers social risk to be moderate for the
retail industry. Changes in customer behavior, notably the shift to
online, creates challenges for incumbent retailers. However, for
Afflelou, this competitive risk is limited. This is because the
store experience remains a competitive advantage in the optical
retail industry. While online sales are growing, the importance of
this distribution channel is still relatively low compared to other
specialty retail segments. Digital presence is increasingly
important for Afflelou in terms of marketing and social media
visibility, and in line with its current strategy, Afflelou will
have to continue to strengthen its online presence to remain
competitive.

The optical retail segment can also be impacted by regulatory
tightening, as seen in France in the last 5 years. As previously
mentioned, Moody's expects the recent French healthcare reforms to
be broadly manageable for Afflelou.

In terms of corporate governance, Afflelou is majority controlled
by private equity sponsors, including Lion Capital and Apax France.
Private equity owners can have a high tolerance for leverage and
governance can be less transparent compared with listed companies.
During its fiscal year 2019 (year ended July 31), Afflelou
distributed EUR52 million to its shareholders, via a convertible
bond repayment, as permitted under its bond documentation. It is
possible that the company could make further dividend distributions
that could lead to an increase in leverage relative to Moody's
expectations.

STABLE OUTLOOK

The stable outlook reflects Moody's expectations that Afflelou will
display at least stable operating results in the next 12-18 months,
helped by positive sales growth and good operational execution, as
seen in recent quarters. The company's marketing initiatives and
increased presence in the hearing aid segment should help sustain
its current revenue and earnings momentum. The stable outlook also
assumes the maintenance of a good liquidity profile.

STRUCTURAL CONSIDERATIONS

The B2 rating assigned to the company's senior secured notes due
2023 reflects their position behind a committed EUR30 million super
senior RCF, which rank ahead of the senior secured notes in the
debt structure. The notes and the super senior RCF benefit from a
similar package, including upstream guarantees from guarantor
subsidiaries representing around 67% of Afflelou's consolidated
adjusted EBITDA. Both instruments are secured, on a first-priority
basis, by certain share pledges, intercompany receivables and bank
accounts of the guarantors. However, the notes are contractually
subordinated to the super senior RCF with respect to the collateral
enforcement proceeds. Moreover, there are significant limitations
on the enforcement of the guarantees and collateral under
Luxembourg and French laws.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Positive pressure could arise if (1) Afflelou were to demonstrate a
sustainable improvement in its earnings trend; (2) its ratio of
(gross) debt/EBITDA (as adjusted by Moody's) were to be below 4.5x
on a sustainable basis; (3) it displays a sustained positive free
cash flow generation and (4) it demonstrates a more balanced
financial policy between creditors and shareholders.

Downward pressure could arise if (1) there is a reversal of the
company's current good momentum in sales and earnings growth, (2)
its free cash flows were to fall towards breakeven levels; and (3)
its ratio of (gross) debt/EBITDA (as adjusted by Moody's) were
deteriorate back towards 6.0x from the 5.5x level Moody's currently
forecasts in the next 12-18 months. Also, any weakening of the
liquidity profile would exert downward pressure on the rating.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Retail Industry
published in May 2018.

COMPANY PROFILE

Headquartered in Paris, France, Afflelou is the third-largest
optical retailer in the French market by total sales volume and
number two in Spain by number of stores and sales. It operates a
franchise model, mainly under the commercial names Alain Afflelou
and Optical Discount. The company also has smaller operations in
eight other countries and is also present in the hearing aid
segment since 2016. At the end of October 2019, the company had
1,424 stores of which 1,265 were franchisees and 159 were
directly-owned. In the 12 months ended October 31, 2019, Afflelou's
revenue amounted to EUR365 million (against EUR819 million of total
sales for the entire store network) and its reported EBITDA was
EUR83.5 million.



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L U X E M B O U R G
===================

REDE D'OR: Fitch Assigns BB Rating to Proposed Sr. Unsec. Bonds
---------------------------------------------------------------
Fitch Ratings assigned a 'BB' rating to the proposed senior
unsecured bonds in benchmark size with intermediate tenor to be
issued by Rede D'Or Finance, which is a wholly owned subsidiary of
Rede D'Or Sao Luiz S.A. incorporated in the Grand Duchy of
Luxembourg. The notes will be unconditionally and irrevocably
guaranteed by Rede D'Or and will rank pari passu with its existing
unsecured debt. The issuance's net proceeds will be used for
general corporate purposes. Fitch currently rates Rede D'Or's
Long-Term Foreign Currency Issuer Default Rating 'BB'/Stable, and
LT Local Currency IDR 'BBB-'/Stable.

Rede D'Or's ratings reflect the company's solid competitive
position in the fragmented hospital industry in Brazil, strong
brand, prominent business scale, adequate capital structure and
defensive nature of its business, as its operating performance has
proven resilient to the economic downturn. The increasing imbalance
between the available supply of hospitals and the demand for these
services in Brazil is a positive consideration, as is the profile
of Rede D'Or's customers and its ability to pass along rising costs
to its counterparties. The company's strong business scale and
bargaining power are also key credit strengths.

The more recent market consolidation and demand for inorganic
growth from well-capitalized players in Brazil's private hospital
industry should be an item to watch and could be a concern over the
rating horizon. The way Rede D'Or manages its growth while
remaining committed to a conservative capital structure is a key
rating factor. Fitch expects the company to continue to manage its
strong business growth (organic and inorganic) and dividends
distributions in a manner that will lead to improvement in leverage
metrics during 2020-2021.

Fitch views Rede D'Or's current net leverage ratios as high for the
rating category, reflecting the company's aggressive growth
strategy. Fitch's base case scenario forecasts adjusted net
leverage/EBITDAR ratios of around 2.9x-3.2x and average annual
acquisitions of BRL1.5 billion during 2019-2021. Consistent
deviations from these metrics would lead to a negative rating
action. Fitch considers that the company has financial flexibility
to reduce its growth path or even to receive financial support from
shareholders in case is necessary to bolster its capital structure.
Rede D'Or is expected to maintain a robust liquidity position as
part of its proactive liability management strategy to mitigate
refinancing risks.

The company's 'BB' FC IDR is capped by Brazil's Country Ceiling
(BB), as the company's operations are in Brazil and it does not
have assets or material cash held abroad to help mitigate transfer
and convertibility risk.

KEY RATING DRIVERS

Leading Business Position: Rede D'Or is the largest private
hospital network in Brazil's fragmented and underdeveloped hospital
industry. The company owned 47 hospitals (7.1 thousand operating
beds), including Perinatal acquisition, and has one administered
hospital. Rede D'Or is in processing of acquiring other two
hospitals (0.6 thousand operating beds), still pending regulatory
approvals. The company has solid business positions and large scale
operations in its key markets of Rio de Janeiro, Sao Paulo,
Brasilia, Pernambuco, Bahia, Maranhao and Sergipe. Recent
acquisition open new markets in Parana and Fortaleza. Business
scale is a key issue in this industry and Rede D'Or's scale
supports its ratings, as it allows for lower fixed-costs and
provides significant bargaining power with counterparties and the
medical community. This scale, in addition to the company's strong
brand, acts as a strong barrier to entry over the medium term.

New Industry Dynamics: The recent consolidation movement and the
increasing level of vertical integration among players in the
hospital and clinical diagnosis industry in Brazil could be a
concern in the medium to long term. A prominent business scale,
strong brand and medical recognition are essential competitive
advantages that in somehow helps to mitigate the increasing
pressure from healthcare plan providers in terms of contracts
pricing. Fitch believes that Rede D'OR is well positioned to face a
potential change in industry dynamics, but it could bring more
volatility to its operating margins or cash flow over the medium to
long term.

Strong Growth Strategy: Rede D'Or is expected to continue to pursue
both organic and inorganic growth, with a target of over nine
thousand operating beds by 2023. Fitch's base case considers that
this target will be achieved by 2022, backed by the company's
ongoing acquisition strategy. Fitch expects this to be financed
with a mix of internal cash flow generation and new debt. The
company has an aggressive track record of acquisitions. From 2010
to September 2019, Rede D'Or acquired 28 hospitals, adding 4.2
thousand operating beds. Rede D'Or also seeks to diversify its
service portfolio by expanding its ambulatory, oncology and
advisor/consultor activities and by re-entering the diagnostics
market segment, increasing the diversification of its product
portfolio. Since 2015, Rede D'Or's total adjusted debt has grown by
BRL10 billion to BRL15.4 as of September 2019, which has supported
a growth of BRL5.6 billion in capex, BRL2.8 billion in acquisitions
and BRL2.4 billion of dividends.

Solid Profitability: Rede D'Or has been efficient in increasing
profitability through economies of scale and in achieving synergies
from its acquisitions. The company has a track record of solid
turnaround on acquired assets. Rede D'Or's net revenue grew 98%
between 2015 and LTM Sept. 30, 2019, achieving BRL12.8 billion of
revenues, while operating beds expanded by 55% to 7,100. During
this period, the company's occupancy rate ranged from 78% to 80%,
finishing at 78% in third-quarter 2019, while its EBITDAR margin
contracted slightly to 26.5% from 27.4% as its new greenfields
projects carry some negative margins. In the next three years,
Fitch forecasts EBITDAR margins in the 27%-29% range.

Positive FCF Generation by 2020: Rede D'Or's challenge remains to
increase its FCF generation, which compares poorly with other
investment-grade peers. Rede D'Or's operating cash flow generation
remains pressured by high working capital requirements, which is a
business characteristic. FCF generation has been historically
negative, averaging negative BRL483 million between 2015 and 2016,
and reaching record levels of negative BRL1.2 billion in 2017 and
BRL1.9 billion in 2018. For 2019, Fitch expects FCF to remain
negative at 416 million. The improvements mostly reflect lower
dividends distribution in the period (BRL36 million). For 2020, FCF
should turn positive at around BRL240 million, benefited by
increasing operating cash flow generation, lower expansion capex
and no dividends distribution, as per Fitch's forecasts. Fitch
estimates expansion capex of BRL1.5 billion and BRL1.6 billion in
acquisition for 2019, and for 2020 Fitch forecasts around BRL1.4
billion and BRL1.5 billion, respectively. Those amounts compare
with BRL608 million and BRL1.1 billion, respectively, for the
2015-2018 period.

Deleveraging Expected: Fitch projects Rede D'Or net adjusted
leverage, on a proforma basis considering acquisitions and
non-recurring items to reach 3.2x in 2019 and to decline to 2.9x in
2021. During 2018, the ratio increased to 3.2x from an average of
2.4x in the 2015-2017. Fitch expects the improvement in leverage to
be backed by the combination of ongoing business growth and lower
capex levels from 2020 on, as major brownfields and greenfields
decelerate, in addition to a significant drop in dividends payouts
during 2019. Fitch's forecast considers Rede D'Or has flexibility
to reduce dividends. During 2017 and 2018, this payout ratio was
120% and 133% respectively, and is currently at 3% for 2019.

Legal Contingencies: Rede D'Or is exposed to legal disputes that
are considered possible losses, for which no provisions have been
recorded. The most significant, in the amount of BRL1.05 billion,
refers to allegations by the Brazilian Internal Revenue Service
(IRS) that certain doctors that render services in Rede D'Or's
hospitals through legal entities would be effectively the company's
employees. Major disruptive outcomes from these disputes in terms
of changes in the company's business dynamics could be a concern,
but these are not incorporated into Fitch's base case scenario at
this time.

DERIVATION SUMMARY

Rede D'Or's ratings reflect the low business risk of the private
hospital industry in Brazil, in addition to Rede D'Or's positive
fundamentals, adequate capital structure and strong financial
flexibility. Rede D'Or compares well in terms of business scale and
operating margins with the non-profitable hospital Sociedade
Beneficente Israelita Brasileira - Hospital Albert Einstein
(Einstein; AAA[bra], and Impar Servicos Hospitalares S.A. (Impar;
AAA[bra]), mostly explained by larger business scale and intrinsic
business characteristics. In terms of capital structure, Einstein
and Impar have much stronger leverage ratios. Einstein's well
distinguished brand and reputation in the industry are also
important competitive advantages, which translate to strong
relationships with payers.

Compared with Diagnostico da America S.A (DASA), (WD - AAA[bra]),
another important player in the healthcare industry in Brazil, Rede
D'Or has better business risk due to the much lower competitive
pressure Rede D'Or faces. In terms of business scale, they both
have sound bargaining power with the healthcare providers and
insurance companies in Brazil and a strong brand in the industry.
The high relevance of Rede D'Or's business where it operates is a
key competitive advantage when discussing payments and pricing with
counterparties. Rede D'Or faces higher technological risks, but
Fitch considers it to be manageable at this time. Both companies
are showing aggressive growth strategies. From a financial risk
perspective, Rede D'Or shows higher leverage than DASA, considering
pro-forma figures including Impar.

On a global basis, the dynamics of the hospital industry and the
regulatory model in Brazil are not appropriately comparable with
other countries, as they are quite different. On a financial basis,
Rede D'or's operating margins look quite sound compared with other
rated hospitals within Fitch's global universe, and in terms of
leverage is considered moderate.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within the Rating Case for the Issuer

  - Revenue growth to average 18% up to 2021 reflecting ongoing
acquisitions and greenfield/brownfields projects;

  - BRL3.0 billion in acquisitions up to 2021;

  - EBITDA margins of around 26.5%-27.5%;

  - High working capital needs, pressuring cash flow from
operations during 2020 and 2021;

  - Capex of BRL1.8 billion in 2019 and an average of BRL1.2
billion annually by 2021.

RATING SENSITIVITIES

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

Positive rating action for the FC IDR is limited by Brazil's
country ceiling of 'BB'. Rede D'Or's ongoing aggressive growth
strategy, through both organic and M&A movements, pressuring its
FCF, and, mostly, its lack of geographic diversification, which
leads to large exposure to the local economy in Brazil, limits the
upward rating potential of the 'BBB-' LC IDR.

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

  -- A change in management's strategy with regard to its
conservative capital structure could also lead to a downgrade, as
could a deterioration in the company's reputation and market
position;

  -- EBITDAR margins declining to below 25%;

  -- Net adjusted leverage consistently above 3.0x;

  -- Deterioration of sound liquidity position leading to
refinancing risk exposure;

  -- Major legal contingencies issues that represent a disruption
in the company's operations or a significant impact to its credit
profile.

In case of the FC IDR and unsecured notes, both 'BB', a downgrade
would be triggered by a change in the Country Ceiling of Brazil.

LIQUIDITY AND DEBT STRUCTURE

Rede D'Or has a track record of keeping strong cash balances, with
an average coverage of cash to short-term debt of 3.5x during the
last five years, and a cash to short-term debt of 4.7x as of Sept.
30, 2019. The company's financial flexibility is solid and it has
shown good access to the local credit market and during its early
2018 debut in the cross border bond market.

As of Sept. 30, 2019, the company had BRL15.4 billion of debt, of
which BRL754 million is due in the short term. Rede D'Or's cash on
hand (BRL3.5 billion) is sufficient to support debt amortization up
to mid-2023. Fitch expects that Rede D'Or will remain disciplined
with its liquidity position and will maintain its proactive
approach in liability management to avoid exposure to refinancing
risks. As of Sept. 30, 2019, around 22% of Rede D'Or debt
(excluding rental obligations) are linked to the U.S. dollar,
including USD500 senior unsecured notes due 2028. The company
operates hedging instruments to moderate currency mismatch risks,
since its revenues are nearly 100% originated in Brazil. Rede D'Or
does not have committed stand-by facilities.

SUMMARY OF FINANCIAL ADJUSTMENTS

Summary of Financial Statement Adjustments –

  -- Total debt includes net derivatives and obligations with
acquisitions;

  -- EBITDA includes adjustments related to gain/losses on asset
sale.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or to the way in which they are being
managed by the entity.

Rede D'Or has an ESG score of 4 for Labor Relations & Practices due
to labor judicial litigations. Rede D'Or has an ESG score of 4 for
Financial Transparency since quality of public financial disclosure
is low.

REDE D'OR: S&P Rates New Senior Unsecured Notes 'BB-'
-----------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating to Rede
D'Or Finance's proposed benchmark-size senior unsecured notes,
which are unconditionally and irrevocably guaranteed by Rede D'Or
Sao Luiz S.A. (BB-/Positive/--). S&P also assigned a '4' recovery
rating to the proposed notes, which indicates an average recovery
between 30%-50% (rounded estimate 40%) in the event of default.

The proposed issuance will have an intermediate tenor and the
entity will use the proceeds for general corporate purposes,
including capital expenditures and potential repayment of certain
existing debt. S&P said, "We don't expect the issuance to notably
affect our forecast for 2020, with debt to EBITDA of 3x, fund from
operations to debt of 20.5%, and free operating cash flow to debt
between 13%-25%, because we believe the company will extend
maturities or support capex which will result in higher cash flow
generation in the near future."

The positive outlook on Rede D'Or reflects that on Brazil.

Issue Ratings - Recovery Analysis

Key analytical factors

-- The '4' recovery rating assigned to Rede D'Or's proposed notes
indicates S&P expects 40% recovery for unsecured lenders under a
hypothetical default scenario.

-- S&P assesses Rede D'Or's recovery prospects using a simulated
default scenario with an EBITDA multiple valuation approach. S&P's
simulated default scenario assumes a payment default in 2023, as
result of a severe economic slowdown and heightened competition in
the sector, leading to a decline in cash flow generation.

-- S&P said, "In our simulated default scenario, we estimate that
EBITDA would decline by about 60% from our estimated 2019 level and
trigger a payment default. At that level, we estimate that the
company's cash flow generation might be insufficient to cover
interest expenses and maintenance capex."

-- S&P has valued the company on a going-concern basis, using a
5.5x multiple applied to its projected emergence-level EBITDA,
which results in an estimated gross enterprise value (EV) of about
R$7.8 billion.

Simulated default assumptions

-- Jurisdiction: Brazil

Simulated year of default: 2023

-- EBITDA at emergence: R$1.4 billion
-- EBITDA multiple: 5.5x
-- Estimated gross EV: R$7.8 billion
-- Net EV, after 5% of administrative expenses: R$7.4 billion

Simplified waterfall

-- Debt at subsidiary (Hospital Esperança S.A.): R$2.1 billion
-- Senior secured debt: R$520 million (14th debentures issuance)
-- Senior unsecured debt: R$11.2 billion (existing loans, bonds,
and CRI)
-- Recovery expectations for the unsecured notes: 30%-50% (rounded
estimate: 40%)

Ratings List

  New Rating
  Rede D'Or Finance S.a r.l.

  Senior Unsecured      BB-
  Recovery Rating       4(40%)




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N E T H E R L A N D S
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DELFT 2020: S&P Assigns Prelim B+ (sf) Rating to Cl. F-Dfrd Notes
-----------------------------------------------------------------
S&P Global Ratings assigned preliminary credit ratings to Delft
2020 B.V.'s class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd
notes. At closing, Delft 2020 will also issue unrated class X
asset-backed notes, class Z notes, and class R1 and R2
certificates.

Delft 2020 securitizes a Dutch pool of nonconforming loans secured
by first-ranking (or first- and consecutive-ranking) mortgages over
residential properties in The Netherlands. We have received
loan-level data as of Sept. 30, 2019.

In addition, the pool includes EUR4,957,916 of delinquent loans
(loans that are in arrears for more than six months and which have
not reduced their arrears in the past three months). S&P said, "We
have excluded these loans from our analysis of the collateral pool
by considering them as defaulted assets at closing, and assumed a
recovery to be realized after 18 months. As most of the borrowers
for these loans have not been current or paying full mortgage
payments for an extended period of time, we believe they will not
provide immediate cash flow credit to this transaction until
recovery."

Delft 2020 is a refinancing of the previous Delft 2019 B.V. and
Delft 2017 B.V. transactions. S&P said, "We received the audit for
the previous pools, and the scope and results were in line with
what we typically see in the Dutch market. We have applied an
additional originator adjustment for the audit result in our credit
analysis."

ELQ Portefeuille I B.V. and Quion 50 B.V. are the originators, and
Morgan Stanley Principal Funding Inc. is the seller of the assets.

According to the servicing agreement, Adaxio B.V. will manage the
portfolio's daily administration and servicing, including the
collection of payments and the undertaking of enforcement actions
in accordance with its internal policy.

S&P said, "The issuer is a Dutch special-purpose entity, which we
assume to be bankruptcy remote for our credit analysis. We expect
to assign credit ratings on the closing date subject to a
satisfactory review of the transaction documents and legal
opinions."

Interest on the class A notes is equal to three-month Euro
Interbank Offered Rate (EURIBOR) plus a specific margin. However,
the class B-Dfrd to F-Dfrd notes are somewhat unique in the
European RMBS market in that they pay interest based on the lower
of the coupon on the notes (three-month EURIBOR plus a
class-specific margin) and the net weighted-average coupon (WAC).
The net WAC on the assets is based on the interest accrued on the
assets (whether it was collected or not) during the quarter, less
senior fees, divided by the current balance of the assets at the
beginning of the collection period. The net WAC is then applied to
the outstanding balance of the notes in question to determine the
required interest (net WAC cap). S&P said, "In our analysis we have
modelled two scenarios: (i) margins on the notes based on the lower
of the coupon on the notes and the net WAC; and (ii) margins on the
notes based on the lower of the coupon on the notes and the net WAC
cap. We modelled these additional scenarios as, in line with our
imputed promises criteria, a severe deterioration in the net WAC
cap resulting from credit events would be a breach of the imputed
promises. Given the assets' nonconforming nature, we performed an
additional analysis based only on the net WAC. Scenario (i) is most
stressful in our analysis."

S&P said, "Also in line with our imputed promises criteria, our
preliminary ratings address the lower of these two rates. A failure
to pay the lower of these amounts will, for the class B-Dfrd to
F-Dfrd notes, result in interest being deferred. Deferred interest
will also accrue at the lower of the two rates. Our preliminary
ratings however, do not address the payment of what are termed "net
WAC additional amounts" i.e., the difference between the coupon and
the net WAC cap where the coupon exceeds the net WAC cap. These
amounts will be subordinated in the interest priority of payments.
In our view, neither the initial coupons on the notes nor the
initial net WAC cap are "de minimis", and nonpayment of the net WAC
additional amounts is not considered an event of default under the
transaction documents. Therefore, we do not need to consider these
amounts in our cash flow analysis, in line with our imputed
promises criteria.

"We expect to assign credit ratings on the closing date subject to
a satisfactory review of the transaction documents and legal
opinions."

  Preliminary Ratings Assigned
  Class     Prelim. rating*    Amount (EUR)
  A         AAA (sf)           TBD
  B-Dfrd    AA (sf)            TBD
  C-Dfrd    A+ (sf)            TBD
  D-Dfrd    BBB+ (sf)          TBD
  E-Dfrd    BB+ (sf)           TBD
  F-Dfrd    B+ (sf)            TBD
  X         NR                 TBD
  Z         NR                 TBD
  R1 cert   NR                 N/A
  R2 cert   NR                 N/A

*S&P Global Ratings' ratings address timely receipt of interest
and ultimate repayment of principal for the class A notes, and the
ultimate payment of interest and principal on the other rated
notes.

N/A--Not applicable.

NR--Not rated.

TBD--To be determined.

STORM 2020-I: Moody's Assigns (P)Ba1 Rating to Sub. Cl. E Notes
---------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to Notes to
be issued by STORM 2020-I B.V.:

EUR [ ] Senior Class A Mortgage-Backed Notes due 2067, Assigned
(P)Aaa (sf)

EUR [ ] Mezzanine Class B Mortgage-Backed Notes due 2067, Assigned
(P)Aa1 (sf)

EUR [ ] Mezzanine Class C Mortgage-Backed Notes due 2067, Assigned
(P)Aa2 (sf)

EUR [ ] Junior Class D Mortgage-Backed Notes due 2067, Assigned
(P)A1 (sf)

EUR [ ] Subordinated Class E Notes due 2067, Assigned (P)Ba1 (sf)

STORM 2020-I B.V. is a five years revolving securitisation of Dutch
prime residential mortgage loans. Obvion N.V. (not rated) is the
originator and servicer of the portfolio. At the provisional pool
cut-off date, the portfolio consists of loans extended to [4,315]
borrowers with a total principal balance of EUR [870,991,289] (net
of savings policies).

RATINGS RATIONALE

The provisional ratings on the Notes take into account, among other
factors: (i) the performance of the previous transactions launched
by Obvion N.V.; (ii) the credit quality of the underlying mortgage
loan pool; (iii) the replenishment criteria; and (iv) the initial
credit enhancement provided by subordination and the reserve fund.

The expected portfolio loss of [0.60]% and the MILAN Credit
Enhancement (MILAN CE) of [7.40]% serve as input parameters for
Moody's cash flow model, which is based on a probabilistic
lognormal distribution.

The key drivers for the portfolio's expected loss of [0.60]%, which
is in line with preceding STORM transactions and with other prime
Dutch RMBS transactions, are: (i) the availability of the
NHG-guarantee for [14.90]% of the loan parts in the pool, which can
reduce during the replenishment period to [13.00]%; (ii) the
performance of the seller's precedent transactions; (iii)
benchmarking with comparable transactions in the Dutch RMBS market;
and (iv) the current economic conditions in the Netherlands in
combination with historic recovery data of foreclosures received
from the seller.

MILAN CE for this pool is [7.40]%, which is in line with preceding
STORM revolving transactions, because of: (i) the percentage of the
NHG-guaranteed loans ([14.90]% of the loan parts in the pool),
which can reduce during the replenishment period to [13.00]%; (ii)
the replenishment period of five years during which there is a risk
of deterioration in pool quality through the addition of new loans;
(iii) the Moody's calculated weighted average current
loan-to-market-value (LTMV) of [73.51]%, which is slightly lower
than LTMVs observed in other Dutch RMBS transactions; (iv) the
proportion of interest-only loan parts ([49.88]%); and (v) the
weighted average seasoning of [5.70] years.

The risk of a deteriorating pool quality through the addition of
loans is partly mitigated by the replenishment criteria which
includes, amongst others, that the weighted average
current-loan-to-market-value ("CLTMV") of all the mortgage loans,
including those to be purchased by the issuer, does not exceed
[80.00]% and the minimum weighted average seasoning is at least
[40] months. Further, no new loans can be added to the pool if
there is a PDL outstanding, if loans more than 3 months in arrears
exceeds [1.5]% or the cumulative loss exceeds [0.40]%.

The transaction benefits from a non-amortising reserve fund, funded
at [1.0]% of the total Class A to D Notes' outstanding amount at
closing, building up to [1.30]% by trapping available excess
spread. The initial total credit enhancement for the Aaa (sf)
provisionally rated Notes is approximately [6.5]%, [5.5]% through
Note subordination and the reserve fund amounting to [1.0]%.

The transaction also benefits from an excess margin of [50] bps
provided through the swap agreement. The swap counterparty is
Obvion N.V. and the back-up swap counterparty is Rabobank (Aa3/P-1
& Aa2(cr)/P-1(cr)). Rabobank is obliged to assume the obligations
of Obvion N.V. under the swap agreement in case of Obvion N.V.'s
default. The transaction also benefits from an amortising cash
advance facility of [2.0]% of the outstanding principal amount of
the Notes (including the Class E Notes) with a floor of [1.45]% of
the outstanding principal amount of the Notes (including the Class
E Notes) as of closing.

Principal Methodology

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
July 2019.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

FACTORS THAT WOULD LEAD AN UPGRADE OR DOWNGRADE OF THE RATINGS:

Factors that may lead to a downgrade of the ratings include
significantly higher losses compared with its expectations at
close, due to either a change in economic conditions from its
central scenario forecast or idiosyncratic performance factors.

For instance, should economic conditions be worse than forecasted,
the higher defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in a downgrade of the ratings. Downward
pressure on the ratings could also stem from: (i) deterioration in
the Notes' available credit enhancement; or (ii) counterparty risk,
based on a weakening of a counterparty's credit profile,
particularly Obvion N.V. and Rabobank, which perform numerous roles
in the transaction.

Conversely, the ratings could be upgraded: (i) if economic
conditions are better than forecasted and the portfolio performs
significantly above expectations; or (ii) upon deleveraging of the
capital structure.



===========================
U N I T E D   K I N G D O M
===========================

BELSTAFF: Survival Depends on Goodwill of Billionaire Owner
-----------------------------------------------------------
Hannah Uttley at The Telegraph reports that British leather jacket
brand Belstaff is dependent on the goodwill of billionaire owner
Sir Jim Ratcliffe to survive, its auditor said after the heavily
indebted firm posted a GBP48 million loss.

According to The Telegraph, the 110-year-old firm could struggle to
operate without a financial lifeline from parent company Ineos,
auditor KPMG said when signing off its books.  Chemicals giant
Ineos is owned by Sir Jim, The Telegraph notes.

Accounts filed this month with Companies House show Belstaff's
losses narrowed to GBP48 million during 2018, compared with GBP62
million a year earlier, The Telegraph relates.

Sales also fell slightly, down from GBP31 million to GBP30.5
million during 2018 after the firm closed a store at Westfield
shopping centre in west London, The Telegraph discloses.



BLACK TYPE: Enters Administration, Business as Usual
----------------------------------------------------
Casino News reports that online bookmaker Black Type has confirmed
that it is going into administration but has told its customers to
rest assured as this would not affect their accounts in any way and
that it is business as usual.

Black Type is powered by technology by online gambling provider and
white label operator FSB Technology (UK) Limited.  FSB is running a
number of brands in the UK and Ireland via its white label
technology.

According to Casino News, in its statement, FSB said that bettors'
funds are safe and will remain safe as they are held in a
Segregated Fund Account with Barclay Corporate Bank.  Any unsettled
bets or pending withdrawals will be honored by FSB, it also became
known, Casino News notes.

Customers will be able to continue to bet on sports, horse races,
and other activities and to play casino games, as usual, Casino
News states.  There will also be no changes in Black Type's
responsible gambling controls and any limits that its bettors have
put in place will continue to provide the protections requested,
Casino News discloses.

According to Casino News, it is understood that the regulatory
pressure UK online gambling operators have been facing in recent
years have forced Black Type's management to put the business into
administration.

In August 2019, the UK Gambling Commission announced that it had
instigated a review into FSB after the voluntary suspension of
activities on one of its white label gambling brands, Casino News
recounts.

Black Type was launched in 2016.  It offers betting on various
sports as well as casino and live casino games, but is primarily
focused on horseracing.


BONMARCHE: Creditors Unlikely to Recover GBP23.9 Million Owed
-------------------------------------------------------------
Sahar Nazir at Retail Gazette reports that Bonmarche's creditors
are unlikely to retrieve the GBP23.9 million they are owed, as
there may not be enough cash to make any distributions.

The fashion retailer appointed business advisory firm FRP after
falling into administration in October last year, Retail Gazette
recounts.

According to Retail Gazette, FRP said in a report that it could not
guarantee that unsecured creditors could get their cash back.

These include suppliers, which are owed GBP12.6 million, and HMRC,
owed GBP1.1 million, Retail Gazette notes.

"Based on the assumptions made in the estimated outcome statement
it is currently estimated that there may be sufficient funds
available to make a distribution to unsecured creditors in due
course," Retail Gazette quotes FRP as saying in an administrators
report published in December. "This distribution will be paid by a
subsequently appointed liquidator, the costs of the liquidation
cannot at this stage be estimated and therefore it is not possible
to estimate the level of distribution that may be made."

Following Bonmarche's administration, Peacocks -- also owned by
Philip Day's Edinburgh Woollen Mill Group -- tabled a bid to buy
the chain and rid it of its debts and rent obligations, Retail
Gazette recounts.

FRP named Peacocks as its preferred bidder, Retail Gazette relays.

Mr. Day provided a loan and credit facilities to Bonmarche in
August in exchange for security over its assets, meaning any buyer
would have had to repay that money, Retail Gazette recounts.

Bonmarche operated from 316 stores and had employed 2919 staff at
the time of its administration, Retail Gazette discloses.  It has
closed 11 underperforming stores since then, Retail Gazette
states.


HERITAGE HOTELS: Enters Administration, Hotel Remains Open
----------------------------------------------------------
William Telford at PlymouthLive reports that Heritage Hotels Ltd.,
the company which owns Plymouth's Grade II listed wedding venue
Langdon Court Hotel, has gone into administration -- but the hotel
remains open for now.

The company, a part of the troubled Carlauren group of companies,
went into administration just before Christmas, PlymouthLive
recounts.

Administrators immediately announced the closure of two hotels:
Auckland House Hotel, in the Isle of Wight, and Headway Hotel in
Morecambe, PlymouthLive discloses.

According to PlymouthLive, a third, Cumbria's Lambert Manor, is
closing its main hotel but its lodges and pool facilities continue
to operate.  

In total, 64 people have been made redundant across the three
hotels, PlymouthLive states.

Other hotels in the group, which employ a combined 200 people, are
continuing to trade in administration, PlymouthLive notes.


JAMIE'S ITALIAN: Creditors Set to Lose Most of GBP80MM Owed
-----------------------------------------------------------
Alice Hancock at The Financial Times reports that creditors of
celebrity chef Jamie Oliver's failed Italian restaurant chain are
set to lose most of the GBP80 million they are owed after its
collapse last May, according to administrator KPMG.

According to the FT, KPMG said in a progress report unsecured
creditors of Jamie's Italian would not recover the majority of
their money, while HSBC and Mr. Oliver's holding company, which
owned GBP57.7 million of the company's secured debt, would also
"suffer a significant shortfall".

Unsecured creditors include the chain's shareholders, among which
Mr. Oliver was the largest with 47%, and 288 trade creditors, the
FT discloses.  Among the biggest losers are town councils, which
are owed collectively about GBP1.2 million in business rates and
other levies, the FT states.

In its last set of accounts, the chain reported a GBP31.1 million
loss before tax in 2017, citing "a marked deterioration in UK
consumer confidence" and "increased competition from new entrants",
the FT notes.

The 22-strong restaurant chain went into administration in May,
despite repeated attempts by Mr. Oliver to save it, including a
GBP26 million cash injection and a proposed deal with Aurelius
Group, a German investment group, the FT recounts.

Three of Mr. Oliver's restaurants at Gatwick airport were sold to
the catering company SSP for GBP550,000, with a further six leases
on former Jamie's Italian sites sold for about GBP1.5 million, the
FT relays, citing the KPMG report.

The report, as cited by the FT, said when the chain went into
administration, Jamie Oliver Holdings -- the company that oversees
Mr. Oliver's TV shows and cookery books -- paid GBP1.1 million to
cover unpaid salaries.  The same amount has been paid to KPMG in
fees, according to the FT.



                           *********


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 2020.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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