/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/250124.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, January 24, 2025, Vol. 26, No. 18 Headlines F R A N C E ELIOR GROUP: S&P Raises LongTerm ICR to 'B+', Outlook Stable QUESTEL UNITE: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable G E R M A N Y AVIV GROUP: S&P Assigns Preliminary 'B-' ICR, Outlook Positive I R E L A N D AQUEDUCT EUROPEAN 10: S&P Assigns B-(sf) Rating on Class F Notes L U X E M B O U R G CONTOURGLOBAL POWER: S&P Rates New Senior Secured Notes 'BB' S P A I N FONCAIXA FTGENCAT 6: S&P Raises Class C Notes Rating to 'BB-(sf)' U N I T E D K I N G D O M A.J. SIMS: Leonard Curtis Named as Administrators ALTIS INDUSTRIES: Insolvency and Recovery Named as Administrators CRAZY BEAR: Grant Thornton Named as Administrators DOVETAIL GROUP: FRP Advisory Named as Administrators FROST & CO: Voscap Limited Named as Administrators HWS 3: Interpath Ltd Named as Administrators IBERICA FOOD: RSM UK Restructuring Named as Administrators INFRASAFE UK: KBL Advisory Named as Administrators PETFORD TOOLS: MHA MacIntyre Named as Administrators X X X X X X X X [*] BOOK REVIEW: Dangerous Dreamers - - - - - =========== F R A N C E =========== ELIOR GROUP: S&P Raises LongTerm ICR to 'B+', Outlook Stable ------------------------------------------------------------ S&P Global Ratings raised its long-term issuer credit rating on Elior Group S.A., as well as the issue rating on its senior unsecured debt, to 'B+' from 'B', with the recovery rating on the senior unsecured debt unchanged at '3', indicating its expectation of about 55% recovery in the event of default. The stable outlook reflects S&P's expectation that continued improved operational performance from the successful realization of synergies with Derichebourg Multiservices (DMS), price increases, and cost reduction measures will lead to improved profitability for the group and support adjusted leverage improving to about 5.0x by fiscal year-end 2025 and FFO to debt around 13.5%. The new issuance and RCF will address its upcoming debt maturities. The proceeds--including EUR152 million of drawings under the new RCF--alongside EUR91 million of cash on balance sheet will be used to: -- Repay the existing EUR550 million senior unsecured notes due in July 2026; -- Repay EUR180 million of drawings under the existing senior unsecured RCF; and -- Pay EUR13 million of transaction fees. In addition, Elior has already upsized and extended the maturity of its securitization facility. The new initial maturity is September 2027 and it has a limit of EUR800 million. This compares with the EUR360 million previously available under the securitization facility and EUR100 million available under the DMS factoring line. With EUR560 million drawn at fiscal year-end 2024 versus EUR392 million one year earlier, Elior has already increased utilization. The cash collected has notably been used to repay in advance the EUR100 million term loan maturing in 2026. S&P said, "We continue to forecast an improvement in operational performance in fiscal 2025 and fiscal 2026. We expect Elior's revenue will increase by 5% to EUR6.4 billion in fiscal 2025 and by 4.5% in fiscal 2026, driven by price increases and higher volumes, thanks to strong commercial activity with new contracts won, notably thanks to the combined catering and multiservice offering. We anticipate a 60-basis points improvement in S&P Global Ratings-adjusted EBITDA margins to 5.4% by fiscal year-end 2025 and to 6.0% by fiscal year-end 2026, thanks to a further impact stemming from cost-saving measures previously taken, a greater amount of synergies with DMS, and exceptional costs declining to EUR23 million in fiscal 2025 and EUR10 million in fiscal 2026 from EUR30 million in fiscal 2024. "We expect free operating cash flow (FOCF) generation to remain strong in coming years. In fiscal 2025, we forecast FOCF of about EUR100 million, supported by working capital inflows (before changes in securitization) of about EUR13 million, thanks to improved receivables collection, and consistently low capital expenditure (capex) of EUR140 million, corresponding to 2.2% of revenue. In fiscal 2026, we anticipate an improvement to about EUR150 million, driven by higher EBITDA and limited working capital outflows of about EUR10 million, combined with capex of 2% of revenue (about EUR130 million). "The improvement in operational performance will support strong deleveraging in fiscal 2025 and fiscal 2026. We forecast S&P Global Ratings-adjusted leverage will decline to 4.9x by fiscal year-end 2025 and 4.0x by fiscal year-end 2026, from 5.8x in fiscal 2024, driven by higher EBITDA and positive cash flow generation. Until fiscal 2027, Elior will continue to annually amortize EUR56 million of the currently EUR169 million outstanding French state-guaranteed loan (PGE) and will also progressively reimburse the EUR152 million of drawings under the new EUR430 million RCF facility. The reduction in gross debt will lower cash interest paid and support an increase in FFO to debt to 13.5% in fiscal 2025 and 18% in fiscal 2026, from 10.7% in fiscal 2024. "The stable outlook reflects our expectation that continued improved operational performance from the successful realization of synergies with DMS, price increases, and cost reduction measures will lead to improved profitability for the group and support adjusted leverage improving to about 5x by fiscal year-end 2025 and FFO to debt around 13.5%. "We could lower the rating if adjusted leverage stayed above 5.5x or FFO to debt fell below 10% on a sustained basis. This could result from underperformance due to higher-than-expected food cost inflation which would be passed on to the client with delays, or difficulties in delivering on the business improvement plan. "We could also take a negative rating action if the proposed refinancing of 2025 and 2026 debt maturities is not completed as expected. "We could raise the rating if Elior continues to increase profitability, and if we further understood the company would likely post metrics that support our forecast ratios, including leverage sustained below 4.5x and FFO to debt above 16% by fiscal year-end 2026 and thereafter. We would also expect the financial policy to continue to support these levels." QUESTEL UNITE: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable ------------------------------------------------------------------- S&P Global Ratings assigned its 'B' long-term issuer credit rating to France-based intellectual property management software and service provider Questel Unite SAS and its 'B' issue and '3' recovery ratings to the proposed EUR485 million term loan B. The '3' recovery rating indicates its expectation of about 55% recovery (rounded estimate) in the event of a default. S&P said, "The stable outlook reflects our expectation that solid organic growth of 5%-6% and expansion of the adjusted EBITDA margin to around 26% in 2025 and 28% in 2026 will drive leverage below 7.5x by 2026, alongside free operating cash flow (FOCF) of about EUR30 million-EUR35 million per year (excluding transaction costs) and funds from operations (FFO) cash interest coverage of around 2.5x. "We forecast that Questel will deleverage from 9.3x (including PIK debt) at the time of its debt refinancing. Questel is raising a EUR485 million senior secured term loan B--split between a euro tranche of EUR425 million and U.S. dollar tranche equivalent to EUR60 million--and EUR161 million of subordinated PIK debt to refinance its existing EUR635 million unitranche debt. The debt package also includes a EUR100 million revolving credit facility (RCF). We calculate adjusted debt to EBITDA of around 9.3x (7.2x excluding the PIK debt) at the closing of the transaction, before it declines to 8.0x (5.9x) in 2025 and 7.2x (5.2x) in 2026 on the back of the EBITDA expansion, mainly fueled by client wins and the cross-selling of higher-margin products." Questel has leading market positions thanks to its wide range of services across the IP management value chain. The company acts as a one-stop-shop software and services provider for IP management. Its services include the search, filing, translation, and renewal of patents (67% of revenues) and trademarks (24%). It also offers non-IP translation and innovation software and services (8%). Questel is the No. 2 global software and services provider. Its IP business intelligence software--which provides research and analytics--and its translation services both rank No. 2; its IP asset management software ranks No. 3; and its annuities and renewals services rank No. 4. Questel's broad service offering and tech-enabled platforms position it favorably to cross-sell its services, win new outsourcing contracts, and gain market share from more traditional service providers and law firms with a narrower focus. Questel operates in a stable but competitive niche market. Questel competes with local and regional law firms and other IP management service providers. S&P considers barriers to entry in the industry as modest. However, Questel's operations as a one-stop-shop platform across various segments in the IP management value chain, its presence in more than 30 countries, and its reputation in the market provide some protection against new entrants. Furthermore, changing providers may entail operational risk. Technological advancements like artificial intelligence are increasing pricing pressure in some of Questel's business lines like translation as it has to share the cost efficiencies with its customers, which affects its profitability. Questel is also exposed to the risk of technological obsolescence. However, the company has a track record of technological innovation and investment in new capabilities. S&P said, "We view IP management as nondiscretionary as it is crucial for companies to actively manage patents and trademarks to limit competition and protect future earnings. Questel has also demonstrated resilience through a crisis. As a result of continuous research and development, we expect Questel's target addressable market to grow by a compound annual rate of 2% between 2023 and 2028, to EUR8.0 billion." Traditionally, IP-focused law firms have managed the IP management process for their clients. Software and services providers can offer integrated solutions to both corporates and law firms in a more cost-efficient manner due to their scale of operations and technology-enabled solutions. As a result, software and services providers have outperformed the broader market and S&P expects this trend to continue, fueling Questel's future revenue growth. Questel's good geographical and service diversity partly mitigate its exposure to market headwinds due to its small scale. S&P said, "While Questel has more than doubled its revenue since 2020, we view its scale of operations as small relative to its competitor Clarivate, whose IP management business is almost double that of Questel's, and relative to its broader business and technology services peers. Questel's large geographical presence mitigates this, as it provides services throughout Europe, the Middle East, and Africa (52%), the Americas (36%), and Asia-Pacific (12%). In our view, having operations in more than 30 countries and a comprehensive set of services is beneficial not just in terms of diversification, but it also provides a competitive advantage as it allows Questel to serve large corporate clients with international IP portfolios." Questel's good revenue visibility reflects a high level of recurring revenues and long-term client relationships. Some 22% of Questel's revenues are subscription-based revenues from its software as a service (SaaS) platforms. Contracts run for three-to-five years and renew automatically every year. Another 17% of revenues are from annuities and renewals, which have a high degree of predictability over a long period of time. The other 58% are recurring in nature under master service agreements. Although individual volumes can fluctuate, Questel's large client base with low customer concentration (the top 10 clients contribute about 15% of revenues) and diverse end-market exposure mitigate this fluctuation. Revenue visibility derives further support from strong customer retention, with churn of less than 3%, and long-term client relationships, as evident from Questel's average 11-year relationship with its 10 largest customers. Questel's reputation and the high cost of failure underpin this revenue stability. The company has already contracted around 65% of its revenue for 2025. Improvements in the EBITDA margin in 2025 and 2026 will underpin earnings growth. In recent years, the challenges of integrating Morningside, which Questel acquired in 2021, and investments in the business have hampered Questel's revenue growth and profitability. In 2025-2026, S&P forecasts revenue growth of 5%-6%, driven by new customers, the cross-selling of services to existing clients, and up-selling thanks to the addition of more features to the platforms. In particular, S&P forecasts an increasing proportion of higher-margin SaaS-based revenues from the bundling of IP asset management software with annuities and renewals. While 70% of Questel's costs are variable, limiting operating leverage, offshoring, and achieving cost efficiencies from automation will further boost profitability. S&P said, "As a result, we expect Questel's adjusted EBITDA margin to improve to around 26% in 2025 and 28% in 2026 from 24% in 2023. A reduction in restructuring and integration costs from around EUR5.5 million in 2024 to EUR2.0 million-EUR3.0 million in 2025-2026 will also help to improve the margin." Despite solid FFO cash interest coverage and positive FOCF generation, Questel's financial sponsor ownership and leverage tolerance restrict the rating. S&P said, "While we have not factored any acquisitions into our forecast, we understand that the company could make bolt-on acquisitions to add complementary services or technology. Our ratings reflect our view that the financial sponsors are likely to prioritize a shareholder-friendly financial policy over debt repayment." Nevertheless, the ratings reflect: -- S&P's expectation of deleveraging from the high level of adjusted debt to EBITDA of 9.3x at the closing of the transaction; -- Comfortable FFO cash interest coverage of 2.4x-2.6x in 2025 and 2026, bolstered by EBITDA expansion and contained cash interest expenses due to the presence of PIK debt in the capital structure; and -- FOCF of around EUR28 million in 2025 (excluding one-off refinancing costs) and EUR36 million in 2026. This reflects cash interest expenses of about EUR33 million per year, limited working capital outflows of about EUR3 million-EUR4 million, and capex of about EUR13 million (5.5%-6.0% of revenues). S&P said, "The stable outlook reflects our expectation that solid organic growth of 5%-6% and expansion of the adjusted EBITDA margin to around 26% in 2025 and 28% in 2026, will drive leverage below 7.5x by 2026, alongside FOCF of about EUR30 million-EUR35 million per year (excluding transaction costs) and FFO cash interest coverage of around 2.5x. "We could lower the rating if Questel's FOCF after leases turns negative or if FFO cash interest coverage declines below 2.0x on a sustained basis. This could occur if the company underperforms our forecasts due to increased competition, operational missteps, or greater exposure to macroeconomic cycles from a larger contribution from more transactional services. "We could also lower the ratings if Questel's financial policy prevents deleveraging below 7.5x. "We see an upgrade as unlikely over the next 12 months due to Questel's highly leveraged capital structure. We could consider an upgrade if shareholders committed to and demonstrated a more prudent financial policy, leading to adjusted debt to EBITDA below 5.0x, along with an improvement in FOCF to debt to above 10% on a sustained basis." ============= G E R M A N Y ============= AVIV GROUP: S&P Assigns Preliminary 'B-' ICR, Outlook Positive -------------------------------------------------------------- S&P Global Ratings assigned its preliminary 'B-' issuer credit and issue ratings on real estate online classifieds operator AVIV Group GmbH and its proposed term loan B (TLB). The preliminary recovery rating of the proposed EUR1,050 million TLB is '3', reflecting its expectations of a meaningful recovery (rounded estimate: 65%) in the event of a default. The positive outlook indicates that S&P could raise its rating on AVIV in the 12 months after the transaction closes if the group performs in line with our expectations, such that S&P Global Ratings-adjusted leverage fell below 7.0x and FOCF to debt improved above 5%. The preliminary 'B-' rating reflects AVIV's strong positions in core markets and sound growth prospects, however, it is constrained by low profitability and high leverage in the near term. S&P said, "Our rating is supported by AVIV's No. 1 market position in France, Belgium, and Israel, which account for nearly 70% of group revenue combined. These strong market positions give AVIV pricing power toward customers and provide stability to revenues during macroeconomic downturns. That said, our assessment is constrained by AVIV's relatively small scale compared with peers in the classifieds sector; its product and geographic concentration, which exposes it to macroeconomic and geopolitical trends; and its No. 2 position in Germany, where we think it is more at risk of disruption from competitors." The rating also reflects AVIV's high capitalized development and exceptional costs, which will lead to subdued profitability and negative FOCF generation until 2026. S&P said, "We estimate this will lead to high initial leverage of 10.6x in 2025. If the planned transformation completes successfully, we expect leverage to improve sharply to about 5.0x in 2026 driven by EBITDA margins expanding toward 35% (from 15%-20% in 2024-2025). The earnings improvement will mainly come from a sharp reduction in investment in its tech platforms, lower restructuring costs, and our expectation of sound topline growth." AVIV's strong brand portfolio and leading market positions allow it to weather tough macroeconomic conditions. AVIV's well-known brands and leading audience sizes lead to strong pricing power with real estate agents, low churn, and a degree of protection against cyclical macroeconomic downturns. AVIV has recently faced tough operating conditions due to the negative effect of rising interest rates on the real estate market, which resulted in materially lower property transaction volumes and a chunk of its smaller agent base ceasing business with AVIV (agent numbers declined 27% in France between January 2023 and June 2024 mainly due to insolvencies). That said, S&P estimates that group revenues increased by about 3% in 2024, mainly thanks to contribution from new acquisitions and supported by revenue contribution from larger agents as well as price increases. Improving macroeconomic conditions should lead to 7%-8% revenue growth in the next two years. S&P said, "We expect topline growth to accelerate on the back of a low-single-digit recovery in listing volumes, supported by our expectation of a gradual easing in interest rates, price increases, and contribution from fast-growing but smaller business segments such as seller leads and privates. Part of AVIV's strategy is to increasingly monetize private-to-private transactions (AVIV has previously focused virtually exclusively on agent-operated transactions) and seller leads to real estate agents. This could improve its revenue diversity; however, we consider that this is subject to execution risk given the private segment is currently dominated by competitors in France and Germany. We also expect a 10%-12% yearly increase in revenues from horizontal classifieds platform Yad2 (Israel) despite the current geopolitical environment, supported by its very strong market position." That said, AVIV remains more exposed to potential macroeconomic shocks than some of its larger and better diversified peers, given its concentration in a cyclical sector like Real Estate and in countries with uncertain macroeconomic and political outlooks like Germany and France. AVIV is smaller in scale and currently has lower and more volatile profitability compared with peers. S&P said, "We think AVIV has a weaker business diversity and scale compared to rated online classifieds peers The Stepstone Group Midco 1 GmbH (B(prelim)/Stable/--) and Speedster Bidco GmbH (B-/Stable/--). Both Stepstone and Speedster have a significant presence in North America, better product diversity, and S&P Global Ratings-adjusted EBITDA of close to or over EUR300 million (compared with AVIV's expected EBITDA of EUR95 million-EUR115 million in 2024-2025). We also note that, due to the ongoing investments in its tech platforms, AVIV shows higher volatility in S&P Global Ratings-adjusted EBITDA and FOCF compared with rated peers. We forecast that due to the ongoing business transformation, AVIV will have materially weaker profitability (15%-20% EBITDA margins in 2023-2025) in the near term compared with rated peers--whose margins range between 30%-65%--including Zephyr Midco 2 Ltd. (B-/Positive/--) and Titan Parent New Zealand Ltd. (Trade Me; B-/Stable/--)." AVIV's profitability should improve materially once it completes its tech transformation, but not without some execution risk. S&P said, "We forecast adjusted EBITDA margins will increase toward industry-average levels of 35% by 2026, from 15%-20% in 2024-2025. AVIV's profitability metrics are subdued due to high capitalized development costs associated with the group's investments into its white label platform, as well as costs associated with initiatives to reduce overheads. We expect the transformation will be fully complete in 2027, although the group forecasts a material reduction in capitalized development costs after 2024. In addition to high capitalized development costs, profitability is currently constrained by the heightened opex from running multiple platforms simultaneously, as well as the costs of resizing the teams involved in the tech transformation." S&P said, "We think that the transformation comes with a degree of execution risk. This is because the successful migration of all existing processes into the unified white-label platform could take longer than expected and note that the headcount reduction plan partially depends on the negotiations with labor unions in France and Germany, which could result in delays and/or higher costs associated with the plan. That said, we also take into account that a portion of its reduction in staff costs will be achieved through lower freelance work, which is not subject to these risks. "We expect AVIV to sustain an adequate liquidity position over the forecast period. The group has prefunded the outlays associated with the transformation plan in 2025 and is expected to close the refinancing transaction with EUR100 million of cash on balance sheet. Full availability under the EUR200 million revolving credit facility (RCF) will also provide ample liquidity buffer for potential operating underperformance or further investment into the business. The expected return to positive FOCF from 2026 onward, as well as AVIV's asset light business model and limited seasonality in working capital also support our view. "Group credit considerations do not affect our view on AVIV's credit quality. AVIV, along with the online job classifieds business Stepstone, will be split from Axel Springer in a transaction that we expect will close in the second quarter of 2025. Following the transaction, KKR and CPPIB will own about 90% of AVIV and the other classified businesses spun off from Axel Springer through its holding company Traviata. The remaining minority stake of approximately 10% in AVIV and each classified asset will be owned by Axel Springer and Springer family members. The classified businesses, including AVIV, will operate as separate and independent entities and will set up financing through separate restricted groups. We view Traviata as the intermediate holding company whose primary purpose is to control these operating companies and will be generally reliant on these companies' cash flow to service its financial obligations. Traviata will refinance its outstanding term loan with a new payment-in-kind financing in early 2025. We understand this financing will be subordinated to the debt of all operating companies, nonrecourse, will have longer maturity than their debt, will not require cash interest payments, and is expected to be repaid after the sale of Stepstone and/or AVIV. "We view Traviata's creditworthiness as somewhat stronger than that of AVIV, on account of its lower leverage, larger scale of operations, and a more diversified business mix. That said, we do not think that the likelihood of extraordinary support from Traviata is strong enough to positively affect our ratings on AVIV. "The preliminary ratings are subject to the successful issuance of the proposed debt, and our satisfactory review of the final documentation. Accordingly, the preliminary ratings should not be construed as evidence of final ratings. If we do not receive the final documentation within a reasonable time frame, or if the final documentation departs from the materials we have already reviewed, we reserve the right to withdraw or revise our ratings. Potential changes include, but are not limited to, the key terms and conditions of AVIV's capital structure and Traviata--including, but not limited to, interest rate, maturity, size, financial and other covenants, the security, and ranking of debt--as well as the use of proceeds. "The positive outlook indicates that we could raise our rating on AVIV in the 12 months after the transaction closes if the group performs in line with our expectations, such that S&P Global Ratings-adjusted leverage fell below 7.0x and FOCF to debt improved toward 5%. "We could revise our outlook to stable if AVIV failed to execute the projected cost savings to improve EBITDA margins toward 30%, or if topline fell materially short of expectations, leading to sustained leverage above 7.0x and FOCF to debt remaining well below 5% on a consistent basis. "We could raise the ratings on AVIV if it delivered strong revenue growth and improving EBITDA margins toward 30% such that its S&P Global Ratings-adjusted leverage fell below 7.0x on a consistent basis and FOCF to debt approached 5%. Such an improvement would reflect sound progress in the execution of the transformation plan contributing to stronger profitability and cash flow generation. We could also raise the ratings on AVIV if we saw material improvement in the creditworthiness of its parent group." ============= I R E L A N D ============= AQUEDUCT EUROPEAN 10: S&P Assigns B-(sf) Rating on Class F Notes ---------------------------------------------------------------- S&P Global Ratings assigned credit ratings to Aqueduct European CLO 10 DAC's class A to F European cash flow CLO notes. At closing, the issuer also issued unrated class Z-1, Z-2, and Z-3 notes and subordinated notes. Under the transaction documents, the rated notes pay quarterly interest unless a frequency switch event occurs. Following this, the notes will permanently switch to semiannual payments. The portfolio's reinvestment period will end approximately 4.5 years after closing, while the non-call period will end 1.5 years after closing. The ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,988.44 Default rate dispersion 527.50 Weighted-average life (years) 4.49 Obligor diversity measure 153.84 Industry diversity measure 20.73 Regional diversity measure 1.28 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.75 'AAA' weighted-average recovery (%) 36.95 Weighted-average spread (net of floors; %) 3.95 Weighted-average coupon (%) 4.75 The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, S&P has conducted its credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we used the EUR600 million target par amount, the covenanted weighted-average spread (3.95%), and the covenanted weighted-average coupon (4.75%) as indicated by the collateral manager. We have assumed the actual weighted-average recovery rate at all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Our credit and cash flow analysis shows that the class B to F notes benefit from break-even default rate and scenario default rate cushions that we would typically consider to be in line with higher ratings than those assigned. However, as the CLO is still in its reinvestment phase, during which the transaction's credit risk profile could deteriorate, we have capped our ratings on the notes. The class A notes can withstand stresses commensurate with the assigned rating." Until the end of the reinvestment period on July 18, 2029, the collateral manager may substitute assets in the portfolio for so long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain as established by the initial cash flows for each rating and compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, if the initial ratings are maintained. S&P said, "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "At closing, the transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe the ratings assigned are commensurate with the available credit enhancement for the class A to F notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A to E notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category -- and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met -- we have not included the above scenario analysis results for the class F notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit or limit certain assets from being related to certain activities. Since the exclusion of assets from these activities does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Ratings list Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A AAA (sf) 372.00 38.00 Three/six-month EURIBOR plus 1.28% B AA (sf) 66.00 27.00 Three/six-month EURIBOR plus 2.00% C A (sf) 35.10 21.15 Three/six-month EURIBOR plus 2.45% D BBB- (sf) 42.90 14.00 Three/six-month EURIBOR plus 3.20% E BB- (sf) 27.00 9.50 Three/six-month EURIBOR plus 5.75% F B- (sf) 18.00 6.50 Three/six-month EURIBOR plus 8.17% Z-1 NR 0.10 N/A N/A Z-2 NR 0.10 N/A N/A Z-3 NR 0.10 N/A N/A Sub NR 49.80 N/A N/A *The ratings assigned to the class A and B notes address timely interest and ultimate principal payments. The ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. =================== L U X E M B O U R G =================== CONTOURGLOBAL POWER: S&P Rates New Senior Secured Notes 'BB' ------------------------------------------------------------ S&P Global Ratings assigned a 'BB' issue rating to ContourGlobal Power Holdings S.A.'s (CGPH) proposed issuance and with a '2' recovery rating. At the same time, S&P affirmed its 'BB-' issuer credit ratings. The stable outlook reflects S&P's view that the group's portfolio will continue to perform strongly, allowing CG to finance its ambitious growth strategy and timely replacing Maritsa's phase-out which historically represented 20% of total distributions. S&P expects debt to EBITDA to remain below 5.5x and funds from operations (FFO) to debt above 10%. The proposed transaction will improve recovery prospects for CGPH's lenders while maintaining the holdco's leverage. S&P said, "In our view, management has proactively improved the capital structure by refinancing its EUR410 million notes well ahead of their maturity in 2026. CP is also proposing to reduce the midco's indebtedness by close to 60%, which will materially reduce CGPH's risk of cash flow interruption. Our view of the strong asset performance portfolio and the lower and temporary indebtedness remaining at the midco has led us to revise our recovery rating to '2' from '4'. This provides a one-notch uplift from the issuer credit rating, leading to the 'BB' issue rating." S&P said, "Our rating assumes management's commitment to unwind the midco's subordination within the next two years. Although collateral and guarantors provided to CGPH's lenders under the secured notes have remain unchained to existing ones, we think the recently created midco structure weakens their position. This is because there are no second liens to the asset's vehicles and CGPH benefits only from a claim to the residual value of the midco, which has priority over the ownership of the assets. That said, management is expecting to entirely refinance midco's debt at the CGPH level, including EUR350 million secured notes and the EUR240 million RCF, which is a key credit consideration for our current recovery rating. Therefore, is highly likely we could reconsider our analytical approach if we see an increase in midco's leverage or if its capital structure strategy changes. "The strategic decision to phase out of coal faster than anticipated and the volatility in the Spanish markets will weigh on dividend distributions. We had expected two out of the four coal units at Bulgarian coal-fired plant Maritsa would remain operational for the winter months until 2027. However, CGPH has decided to accelerate the phase-out process by shutting down operations and focusing on progressively repurposing these units. The loss of dividend distributions from Maritsa to CG materially affects our revenue forecasts because we were expecting the coal units to provide US$35 million-US$45 million through to 2027. Additionally, the increasing penetration of renewables in Spain and lower system needs will affect utilization rates at the Arrubal combine-cycle power plant and reduce margins amid extremely low electricity prices. We now assume around $20 million of distributions, significantly down from our previously expectation of $45 million-$55 million. We forecast the weighted-average holdco debt to EBITDA will deteriorate toward 5.0x-5.2x, from 4.8x previously." Recent acquisitions and ongoing greenfield developments will progressively replace and strengthened distributions. There are ongoing photovoltaic (PV) and battery energy storage system developments at Maritsa with the two repurposed units having a total capacity of 404MW. Other asset-specific investments, together with the revamping and repowering of existing assets in Italy and Austria, should increase the portfolio's capacity by 105MW and extend the asset's technical lifespan. Furthermore, recently contracted PV portfolios acquired in the U.S. and Chile have increased the renewable exposure of the portfolio by 1GW. These investments will not replace the distribution shortfall in a timely manner because construction is likely to be progressive and completed within the next three years. Once completed, however, S&P expects distributions exclusively from asset operations will be close to $350 million compared to around $280 million expected in 2024. The portfolio's track record of strong operating performance and successful growth supports CG's credit quality despite distribution volatility. The company has been delivering strong operating results, with performance across the assets consistently above contractual requirements. Proactive and experienced management of the assets' operating and maintenance activities is being combined with a strong focus on cost optimization. S&P said, "We see limited execution risk for ongoing developments and we view as positive the recently acquired assets given company's successful M&A track record over the last 10 years. Since we first rated the company in 2012, it has managed to increase its capacity to 8.7GW, from 2.7GW, and now operates 188 assets versus 21 initially." S&P said, "We foresee enhanced business fundamentals driven by technological and geographical diversification as well as higher cash-flow predictability. Increasing the number of investments in the U.S. and Europe has materially reduced the group's exposure to country, political, and currency risk. Its focus on highly contracted solar assets has also increased the stability and predictability of cash flows while limiting resource risk compared to other renewables such as wind. Although the phase-out of Maritsa and lower margins from Arrubal will likely weigh on revenues in the short term, these factors will reduce the portfolio's exposure to merchants and strengthen the diversification of the portfolio. We expect the group's renewables generation from highly rated geographies will trend toward 55% of total EBITDA generation, from 35% currently, seeing merchant exposure reduce to 45% from the current 65%. That said, compared to peers we see CG's business profile as somewhat weaker than peers with the same business risk profile of satisfactory. This reflects the shorter tenor of contracted average life and the remaining exposure to thermal fleet located in emerging countries. Although these assets have strong economics and adequate track records of cash flow stability, we tend to see them as exposed to greater economic, institutional, and governance risk. "We identified increased leverage and M&A as key credit risks. Debt-funded investments could lead us to take a negative rating action if not compensated by operating assets' cash flow contributions to CG such that debt to EBITDA stays below 5.5x and FFO to debt stays above 10% on average. Further leverage at encumbered assets with limited headroom could also increase dividend interruption risk and cash flow volatility, leading to deteriorating credit metrics. That said, we expect the group will prioritize the allocation of excess cash toward investments and M&A in the short term rather than further leverage the holdco. "The stable outlook reflects our expectation that adjusted holdco debt to EBITDA will be no higher than 5.5x and FFO to debt will be above 10% over our forecast period while CG develops its growth plan. "We also expect acquisitions and greenfield investments to increase CG's energy capacity and respective distributions to CGPH. This should compensate for the phase-out of the Maritsa coal plant, which represented 15%-20% of total distributions. We expect the growing portfolio will continue to operate under long-term contracts with mostly investment-grade counterparties and generate predictable cash flows to support its debt obligations." S&P could downgrade CG and CGPH by one notch if: -- S&P sees an increase in debt at CGPH such that adjusted holdco debt to EBITDA increases above 5.5x and FFO to debt trends below 10% in the next two years; -- There is a material falloff in distributions from the asset portfolio. This could happen because of inappropriately managed growth while phasing out coal, or significant operating underperformance; -- There is an increased leverage at the corporate or midco levels; -- Against S&P's expectations, it sees the new sponsor maximizing shareholders' returns to the detriment of CG's credit quality. S&P said, "We could lower the issue ratings by one notch if we lower the issuer credit rating by one notch, if we see management leveraging the midco structure, or if we estimate recovery prospects for holdco creditors have fallen below 70% because of the additional subordination, debt, or lower or deteriorated quality of distributions. "We see an upgrade in the short term as unlikely because of ongoing volatility of distributions while CG's phases out of one its key assets. We could consider raising the rating if the company manages to successfully deliver on its business plan while consistently maintaining debt to EBITDA below 5x and FFO to debt above 12%." ========= S P A I N ========= FONCAIXA FTGENCAT 6: S&P Raises Class C Notes Rating to 'BB-(sf)' ----------------------------------------------------------------- S&P Global Ratings raised to 'BBB- (sf)' from 'B+ (sf)' and to 'BB- (sf)' from 'CCC+ (sf)' its credit ratings on Foncaixa FTGENCAT 6, Fondo de Titulizacion de Activos's class B and C notes, respectively. At the same time, S&P affirmed its 'AAA (sf)' and 'D (sf)' ratings on the class AG and D notes, respectively. Foncaixa FTGENCAT 6 is a single-jurisdiction cash flow CLO transaction securitizing a portfolio of small and midsize enterprise (SME) loans that CaixaBank S.A. originated in Spain. The transaction closed in July 2008 and is currently amortizing. The underlying portfolio is relatively seasoned, with a pool factor (the percentage of the pool's outstanding aggregate principal balance compared with the closing date balance) of about 7.45%, down from 9.50% since our most recent rating action on Aug. 24, 2023. According to reports prepared by the management company, cumulative defaults of 12 months have remained relatively stable since our previous review in 2023. The transaction includes a cash reserve, funded on the closing date, providing liquidity support to the notes throughout the transaction's life. The cash reserve is currently at the required level and will eventually be used to redeem the notes. S&P said, "Our ratings on the notes reflect our assessment of the underlying asset pool's credit and cash flow characteristics, as well as our analysis of the transaction's exposure to counterparty, operational, and legal risks. "We used data from the September 2024 report and loan-level data to perform our credit and cash flow analysis. We applied our European SME CLO, structured finance sovereign risk, and counterparty criteria." Credit analysis S&P said, "The underlying portfolio has amortized by EUR14.48 million since our previous review, with a current outstanding balance of EUR55.90 million. The portfolio's amortization resulted in a corresponding EUR15.19 million paydown of the class AG notes, which currently have an outstanding balance of EUR34.22 million. Therefore, the class AG notes' credit enhancement has increased to 54.19% from 45.47% since 2023. Due to the class AG notes' deleveraging, the credit enhancement for the class B notes increased to 34.11% from 28.92%. The class C and D notes' credit enhancement also increased. "We applied our European SME CLO criteria to determine the scenario default rates (SDRs)--the minimum level of portfolio defaults we expect each tranche can withstand at a specific rating level--using CDO Evaluator. "To determine the SDR, we adjusted the archetypical European SME average 'b+' credit quality to reflect the following factors: country, originator, and portfolio selection. "In previous analysis, under our criteria, we ranked the originator in this transaction in the moderate category. Taking into account Spain's Banking Industry Country Risk Assessment (BICRA) score of 4 and the originator's average annual observed default frequency, we adjusted the archetypical average credit quality downward by one notch to 'b' from 'b+'. "There is no adverse selection in the securitized portfolio's creditworthiness when compared against the originator's SME loan book, so we did not adjust the average credit quality to address portfolio selection bias, in line with our previous review. We therefore used the 'b' assessment to generate our 'AAA' SDR. "We calculated the 'B' SDR based primarily on our analysis of historical SME performance data, the weighted-average life of the portfolio, and our projections of the transaction's future performance considering the portfolio concentration. We also assessed market developments, macroeconomic factors, changes in country risk, and the way these factors are likely to affect the loan portfolio's creditworthiness. In doing so, we lowered our 'B' case SDR to 16% from 17% since 2023. We interpolated the SDRs for rating levels between 'B' and 'AAA' in accordance with our European SME CLO criteria." Recovery rate analysis S&P said, "We applied a weighted-average recovery rate (WARR) at each liability rating level by considering the asset type and its seniority, the country recovery grouping, and the observed historical recoveries in this transaction. In a benign economic environment, we expect recoveries to be approximately 50%, in line with the historical observations." Cash flow analysis S&P said, "We used the portfolio balance the servicer considered to be performing, the current weighted-average spread, and the above WARR. We subjected the capital structure to various cash flow stress scenarios, incorporating different default patterns and interest rate curves, to determine the rating level, based on the available credit enhancement for the notes under our European SME CLO criteria. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria at the assigned ratings. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria." Rating rationale S&P said, "Based on the portfolio's positive performance, as well as our analysis of the transaction's exposure to counterparty, legal and operational risks, we consider the available credit enhancement for the class B and C notes to be commensurate with higher ratings than previously assigned. This reflects ongoing macroeconomic factors that could affect future performance. We therefore raised to 'BBB- (sf)' from 'B+ (sf)' and to 'BB- (sf)' from 'CCC+ (sf)' our ratings on the class B and C notes, respectively. The class AG notes continue to pass at the 'AAA' rating level and so we affirmed our 'AAA (sf)' rating on these notes. There remains deferred interest on the class D notes, therefore we affirmed our 'D (sf)' rating on these notes." Foncaixa FTGENCAT 6 is a cash flow CLO transaction backed by Spanish SME loans originated by CaixaBank S.A. =========================== U N I T E D K I N G D O M =========================== A.J. SIMS: Leonard Curtis Named as Administrators ------------------------------------------------- A.J. Sims Limited was placed into administration proceedings in Business and Property Courts in Leeds, Court Number: CR-2025-000051, and Ryan Holdsworth and Danielle Shore of Leonard Curtis (UK) Limited were appointed as administrators on Jan. 17, 2025. A.J. Sims Limited engages in the retail sale of footwear in specialised stores. Its registered office is at 4th Floor, Fountain Precinct, Leopold Street, Sheffield, S1 2JA. Its principal trading address is at 11 Eldon Street, Barnsley, S70 2JR. The joint administrators can be reached at: Ryan Holdsworth Danielle Shore Leonard Curtis (UK) Limited 4th Floor, Fountain Precinct Leopold Street, Sheffield, S1 2JA For further details, contact: The Joint Administrators Tel No: 0114-285-9500 Alternative contact: Shannon Jones Email: shannon.jones@leonardcurtis.co.uk ALTIS INDUSTRIES: Insolvency and Recovery Named as Administrators ----------------------------------------------------------------- Altis Industries Limited was placed into administration proceedings in In the High Court of Justice Business and Property Courts of England and Wales, Court Number: CR-2025-000095, and Ken Touhey of Insolvency and Recovery Limited were appointed as administrators on Jan. 14, 2025. Altis Industries engages in the wholesale of machine tools. Its registered office is at 34-36 Liphook Road, Lindford, Bordon, Hampshire, GU35 0PP which is the process of changing to Chatsworth House, 39 Chatsworth Road, Worthing, West Sussex, BN11 1LY. Its principal trading address is at 34-36 Liphook Road, Lindford, Bordon, Hampshire, GU35 0PP. The joint administrators can be reached at: Ken Touhey Insolvency and Recovery Limited Chatsworth House 39 Chatsworth Road Worthing West Sussex, BN11 1LY For further details, please contact: Vanessa Blackwell Tel No: 01903-239313 Email: vblackwell@irluk.co.uk CRAZY BEAR: Grant Thornton Named as Administrators -------------------------------------------------- Crazy Bear Group Limited was placed into administration proceedings in the High Court Of Justice, Company & Insolvency List, (ChD), Court Number: No 000087 of 2025, and Kevin J Coates, and Shane R Smith of Grant Thornton UK were appointed as administrators on January 13, 2025. Crazy Bear operates hotels. Its registered office is at 2nd Floor, 82 King Street, Manchester, M2 4WQ. The joint administrators can be reached at: Kevin J Coates Shane R Smith Grant Thornton UK LLP 30 Finsbury Square London EC2A 1AG Tel: 020-7184-4300 For further information, contact: CMU Support Grant Thornton UK LLP Tel No: 0161 953 6906 Email: cmusupport@uk.gt.com 30 Finsbury Square London EC2A 1AG DOVETAIL GROUP: FRP Advisory Named as Administrators ---------------------------------------------------- Dovetail Group (UK) Ltd was placed into administration proceedings in The High Court of Justice, Business and Property Courts in Newcastle Court Number: CR-2025-000006, and Martyn James Pullin and David Antony Willis of FRP Advisory Trading Limited were appointed as administrators on Jan. 15, 2025. Dovetail Group is a total facilities management organisation. The Company's range of services includes Reactive Maintenance through to Electrical Compliance testing, Grounds Maintenance through to Arboricultural Surveys. Its registered office is at Units 5/6 - Patricks Farm Barns, Meriden Road, Hampton-In-Arden, B92 0LT. Its principal trading address is at 1st Floor, 34 Falcon Court, Preston Farm Business Park, Stockton on Tees, TS18 3TX. The joint administrators can be reached at: Martyn James Pullin David Antony Willis FRP Advisory Trading Limited 1st Floor, 34 Falcon Court Preston Farm Business Park Stockton on Tees TS18 3TX For further details, contact: The Joint Administrators Tel No: 01642 917555 Alternative contact: Lianne Maidman Email: Lianne.Maidman@frpadvisory.com FROST & CO: Voscap Limited Named as Administrators -------------------------------------------------- Frost & Co. Jewellers Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales Insolvency and Companies List, Court Number: CR-2025-000177, and Ian Lawrence Goodhew and Abigail Shearing of Voscap Limited were appointed as administrators on January 17, 2025. Frost & Co. Jewellers engages in the retail sale of new goods. Its registered office is at Unit 3, Gateway Mews, London, England, N11 2UT. Its principal trading address is at 67 Grosvenor Street, Mayfair, London, W1K 3JN. The joint administrators can be reached at: Ian Lawrence Goodhew Abigail Shearing Voscap Limited 67 Grosvenor Street, Mayfair London, W1K 3JN For further details, contact: William Belsey-Farrer Tel No: 0207-769-6831 Email: team@voscap.co.uk HWS 3: Interpath Ltd Named as Administrators -------------------------------------------- HWS 3 Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), No CR-2025-000284, and William James Wright and Christopher Robert Pole of Interpath Ltd were appointed as administrators on January 16, 2025. HWS 3 Limited is a holding company. Its registered office is at Interpath Ltd, 10 Fleet Place, London, EC4M 7RB. Its principal trading address is at Building 1 Imperial Place, Elstree Way, Borehamwood, Herts, WD6 1JN. The joint administrators can be reached at: William James Wright Christopher Robert Pole Interpath Ltd 10 Fleet Place London, EC4M 7RB For further details, contact: HWSR@interpath.com IBERICA FOOD: RSM UK Restructuring Named as Administrators ---------------------------------------------------------- Iberica Food & Culture Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court Number: CR-2024-007382, and Gordon Thomson and Stephanie Sutton of RSM UK Restructuring Advisory LLP were appointed as administrators on Dec. 13, 2024. Iberica Food is a licensed restaurant. Its registered office is c/o RSM UK Restructuring Advisory LLP, 25 Farringdon Street, London, EC4A 4AB (Formerly) 195 Great Portland Street, London, W1W 5PS. Its principal trading address is 195 Great Portland Street, London, W1W 5PS. The joint administrators can be reached at: Gordon Thomson Stephanie Sutton RSM UK Restructuring Advisory LLP 25 Farringdon Street London EC4A 4AB Correspondence address & contact details of case manager: Samantha Hawkins RSM UK Restructuring Advisory LLP 25 Farringdon Street London EC4A 4AB Tel No: 020-3201-8000 Alternative contact: The Joint Administrators Tel No: 020-3201-8000 INFRASAFE UK: KBL Advisory Named as Administrators -------------------------------------------------- Infrasafe UK Limited was placed into administration proceedings in the High Court of Justice Business and Property Court in Newcastle Company & Insolvency List, No CR-2025-NCL-0001 of 2025, and Steven Brown of KBL Advisory Limited was appointed as administrators on January 16, 2025. Its registered office and principal trading address is at Unit 38 Design Works Business Centre, William Street, Gateshead, Tyne And Wear, NE10 0JP. The joint administrators can be reached at: Steven Brown KBL Advisory Limited Stamford House Northenden Road Sale Cheshire, M33 2DH For further information, contact: Cherry Yau KBL Advisory Limited Tel No: 0161-637-8100 Email: Cherry.Yau@kbl-advisory.com PETFORD TOOLS: MHA MacIntyre Named as Administrators ---------------------------------------------------- Petford Tools Limited was placed into administration proceedings In the High Court of Justice, Business and Property Courts of England and Wales, Court Number: CR-2024-007079, and James Alexander Snowdon and Georgina Marie Eason of MHA MacIntyre Hudson LLP were appointed as administrators on Dec. 12, 2024. Petford Tools is a manufacturer of plastic products, fabricated metal products, and machine tools. Its registered office and principal trading address is at Peartree Lane, Dudley, West Midlands, DY2 0QU. The administrators can be reached at: Georgina Marie Eason James Alexander Snowdon MHA MacIntyre Hudson LLP 6th Floor, 2 London Wall Place London, EC2Y 5AU For further details, contact: James Holdsworth Email: james.holdsworth@mhllp.co.uk =============== X X X X X X X X =============== [*] BOOK REVIEW: Dangerous Dreamers ----------------------------------- Dangerous Dreamers: The Financial Innovators from Charles Merrill to Michael Milken Author: Robert Sobel Publisher: Beard Books Softcover: 271 pages List Price: $34.95 Order your own personal copy at http://www.beardbooks.com/beardbooks/dangerous_dreamers.html "For the rest of his life, Milken will be accused of crimes for which he was not charged and to which he did not plead guilty." Milken is -- as anyone familiar with junk bonds and the scandals surrounding them in the 1980s knows -- Michael Milken of the Drexel Burnham banking and investment firm. In this book, noted business writer Robert Sobel analyzes the Milken criminal case and the many other phenomena of the period that lay the basis for the modern-day financial industry. However, the author's perspective is broader than the sensationalistic excesses and purported crimes of Milken and his like. Sobel is interested in the individuals and businesses that introduced and developed financial concepts, vehicles, and transactions that increased the wealth of millions of average persons. Sobel's examination of the byplay between financial chicanery and economic revitalization extends back to the Gilded Age of the latter 1800s and early 1900s. This was a time when Jim Fisk, Jay Gould, and others were making fortunes through skulduggery and manipulation of the financial markets, while Cornelius Vanderbilt and others were building the "world's finest railroad system." Later, in the "Junk Decade of the 1980s," as Ivan Boesky and others were reaping fortunes from "dubious" transactions, financial firms such as Forstmann Little and Kohlberg Kravis Roberts "played major positive roles in the largest restructuring of American industry since the turn of the century." While Sobel does not try to defend the excesses and illegalities of individuals and companies, he basically sees the Milkens of the world as "vehicles through which the phenomena of junk finance and leveraged buyouts played themselves out." This was the "Conglomerate Era." Mergers and acquisitions were at the center of financial and economic activity, and CEOs at major corporations were in competition to grow their corporations. Milken, Boesky, and others provided the means for this end. However, it is important to note that they did not originate the mergers and acquisition phenomenon. At first, Milken et al. were much appreciated by major corporations and the financial industry. However, when mergers and acquisition excesses began to bear sour fruit, Milken and his company Drexel Burnham took the brunt of public indignation. The government's search for villains then began. Sobel examines the ripple effects of financial innovators who became financial pariahs. Milken's journey, for example, cannot be unraveled from that of a company such as Beatrice. Starting in 1960, the food company Beatrice started making large-scale acquisitions. CEO Williams Karnes, who "ran a tight, lean ship, with a small office staff," was succeeded by corporate heads who brought in corporate jets and limousines, greatly increased staff, and moved into regal office space. James Dutt of Beatrice is singled out as symptomatic of the heedless mindset that crept into corporate America in the 1980s. Sobol's tale of the complexities and ambivalence of this transitional period is bolstered by memorable portraits of key players and companies. In so doing, he demonstrates once more why he has long been recognized as one of the country's most important business writers. About the Author Robert Sobel was born in 1931 and died in 1999. He was a prolific historian of American business life, writing or editing more than 50 books and hundreds of articles and corporate profiles. He was a professor of business at Hofstra University for 43 years and held a Ph.D. from New York University. Besides producing books, articles, book reviews, scripts for television and audiotapes, he was a weekly columnist for Newsday from 1972 to 1988. At the time of his death he was a contributing editor to Barron's Magazine. ********* 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 2025. 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. * * * End of Transmission * * *