260526.mbx

260526.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 Tuesday, May 26, 2026, Vol. 27, No. 104 Headlines D E N M A R K LIQTECH INTERNATIONAL: Net Loss Rises 16% to $2.7MM in Q1 2026 G E R M A N Y SCHULKE GROUP: S&P Assigns 'B+' LongTerm ICR, Outlook Stable I R E L A N D PENTA CLO 10: S&P Assigns B-(sf) Rating on Class F-R Notes SONA FIOS VII: S&P Assigns B-(sf) Rating on Class F Notes SOUND POINT III: S&P Raises Class F Notes Rating to 'B (sf)' L U X E M B O U R G BOLUDA TOWAGE: S&P Assigns 'BB' LongTerm Issuer Credit Rating U N I T E D K I N G D O M 12470936 LIMITED: Antony Batty Appointed as Joint Administrators AUBURN 15: S&P Affirms 'B+(sf)' Rating on Class F-Dfrd Notes CASSIOBURY COURT: Quantuma Advisory Appointed as Administrators JEMSL LIMITED: Quantuma Advisory Appointed as Joint Administrators REE AUTOMOTIVE: FRP Advisory Appointed as Joint Administrators SWEETBRIDGE EMEA: Menzies LLP Appointed as Joint Administrators - - - - - ============= D E N M A R K ============= LIQTECH INTERNATIONAL: Net Loss Rises 16% to $2.7MM in Q1 2026 -------------------------------------------------------------- LiqTech International, Inc. has filed its Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission, reporting a net loss for the three months ended March 31, 2026 of $2,725,099 compared to $2,358,342 for the comparable period in 2025, representing an increase in net loss of $366,757, or 15.6%. Revenue for the three months ended March 31, 2026 was $4,136,320 compared to $4,617,541 for the same period in 2025, representing a decrease of $481,221, or 10.4%. Liquidity and Capital Resources The Company has historically financed operations through offerings of equity or debt instruments, internally generated cash from operations, and our available lines of credit. On March 31, 2026, we had cash of $2,732,739 and net working capital of $8,483,730, and on December 31, 2025, we had cash of $5,070,385 and net working capital of $11,237,788. On March 31, 2026, our net working capital had decreased by $2,754,058 compared to December 31, 2025, mainly as a result of a reduction in cash and cash equivalents used to fund operating losses The Company has experienced operating losses and cash outflows from continuing operations and will require additional funding to support operations for the 12 months following the issuance of these financial statements. These conditions raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management has implemented cost optimization operational initiatives and working capital control designed to improve liquidity and support a sustainable path toward profitability, supported by an updated strategic focus and strengthened leadership. The Company continues to evaluate financing alternatives and strategic opportunities to enhance its capital position. While there can be no assurance that additional funding will be obtained on favorable terms, management believes its ongoing initiatives position the Company to support operations and advance its strategic objectives. A full text copy of the Company's Form 10-Q is available at https://tinyurl.com/mrt3u83v About LiqTech International Ballerup, Denmark-based LiqTech International, Inc. is a clean technology company that provides state-of-the-art gas and liquid purification products by manufacturing ceramic silicon carbide filters and membranes as well as developing industry-leading and fully automated filtration solutions and systems. Sadler, Gibb & Associates, LLC, based in Draper, Utah, and serving since 2018, included a "going concern" qualification in its report dated February 27, 2026, attached to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, citing that Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. As of March 31, 2026, the Company had $24,949,625 in total assets, $17,399,289 in total liabilities, and $7,550,336 in total equity. ============= G E R M A N Y ============= SCHULKE GROUP: S&P Assigns 'B+' LongTerm ICR, Outlook Stable ------------------------------------------------------------ S&P Global Ratings assigned its 'B+' long-term issuer credit rating to Germany-based Schulke Group's holding company Limpio HoldCo GmbH & Co KG. S&P also assigned its 'B+' issue credit rating to the group's proposed senior debt, with a '3' recovery rating (50%-70%; 60%). The stable outlook indicates that Schulke will generate high-single-digit percent organic growth and gradually achieve S&P Global Ratings-adjusted debt to EBITDA comfortably below 5x by year-end 2027, thanks to its solid product portfolio. Germany-based Schulke Group (Schulke), a disinfectant and antiseptic specialist, plans to issue a EUR500 million term loan B through its holding company Limpio Bidco GmbH to repay existing debt and increase available cash balances. S&P expects Schulke's strategic focus on acquisitions to lead to a spike in leverage of 5.0x-5.2x in 2026, improving to 4.0x-4.2x in 2027. This is supported by the group's strong market position and our expectation of robust free operating cash flow (FOCF) of EUR40 million-EUR60 million in the coming two years. Schulke benefits from local dominant positions in the disinfectant and antiseptic segment. The group has demonstrated a long heritage of innovation and expansion, while sticking to its key areas of competence. Its product offering, across four business units, primarily addresses healthcare professionals in clinics, but also individual consumers through its over-the-counter (OTC) channel, professionals operating in direct patient care, and life sciences companies. Schulke's value proposition is driven by a portfolio of brands that hold robust market positions thanks to continuous customer-led innovation. This is underpinned by a specialized in-house research and design (R&D) platform dedicated to anti-microbial formulation. The disinfectant and antiseptic segment benefits from secular growth trends. The burden of microbial resistance causes a heavy death toll worldwide. In Germany alone, 600,000 cases of infection occur every year, with sepsis ranking as the third leading cause of death. The fight against nosocomial diseases in hospitals is an absolute priority, and the segment benefits from non-discretionary spending characteristics. The group's solutions are highly cost effective for its clients, accounting for less than 1% of global hospital expenses. Furthermore, its exposure to raw material price volatility is limited, and Schulke has a strong track record of passing cost increases through to customers, even in times of geopolitical uncertainty, thanks to its good client relationships and the absence of viable substitutes. Schulke faces competition from larger brands such as Ecolab or Braun. However, the group benefits from its focus on one specific market and its close proximity to decision makers, namely hygiene managers in healthcare services and medical professionals. The group also benefits from very low customer churn, attesting to its reputation and track record for quality and reliable supply chain, with no history of contamination. Schulke 's narrower product focus, compared to larger competitors such as Ecolab, enables constant attention to customer needs, which in turn ensures client loyalty. Schulke's well-founded innovation process sustains its product leadership in the DACH region (Germany, Austria, and Switzerland). Schulke is a fully integrated brand with an in-house industrial footprint, R&D, and commercial work force, but we see concentration risk stemming from its primary manufacturing site. Schulke's German plant contributes about 45%-50% of revenue and is critical to operating efficiency, although the group also operates three other plants and has a network of third-party contract manufacturing organizations (CMO). Timely supply is key success factor since disinfectants and antiseptics are necessary products, and any manufacturing setback in the main plant could have a considerable impact if deliveries are delayed. S&P said, "We forecast adjusted operating margins exceeding 20%, reflecting the group's robust competitive positions. They also reflect the strength of its brands, product quality and innovation, and the degree of differentiation. Moreover, in recent years, the company has invested in highly skilled commercial, administrative, and finance staff, which limits the need for further investment to support future growth. France-based biocide producer Kersia (B/Stable) reports a comparable operating margin, albeit slightly weaker. Although anti-infection products present less differentiation than innovative pharmaceuticals in our view, they benefit from barriers to entry owing to regulatory processes that are too lengthy and costly for small and midsize competitors to replicate. "We project comfortably positive FOCF of about EUR40 million-EUR60 million over 2026 and 2027. This firmly underpins our ratings. It reflects Schulke's robust operating margins and its ability to grow without major capital investments. We forecast capital expenditure (capex) at EUR30 million in 2026 and 2027, primarily for factory maintenance, capitalized R&D, and infrastructure modernization initiatives. We do not assume capex for capacity expansion thanks to available capacity in owned plants and with third party CMOs. This strong annual FOCF generation also provides self-financed resources for bolt-on acquisitions. "We view the group's financial policy as moderately aggressive, with a tolerance for a leverage temporarily exceeding 5.0x provided it returns to 4.0x-5.0x within 12 months of the most recent acquisition. The shareholder structure comprises several German family offices that have a long-term holding horizon and no appetite for excessive leverage. The business plan does not include dividends and prioritizes bolt-on acquisitions. In 2026 we forecast about EUR100 million in acquisition spending for a target company that operates in Schulke's existing lines of business, which exceeds cash flow generation and will cause adjusted leverage to temporarily remain close to 5.0x in 2026. Assuming a contribution from the target company for the full year, we estimate an adjusted leverage ratio at 4.8x. We understand Schulke's financial policy aims at restoring flexibility, leading to adjusted leverage improving toward 4.0x by 2027. Our base case for 2027 includes EUR50 million for potential new bolt-on acquisitions, which we assume the company will finance with its revolving credit facility (RCF) and self-generated free cash flow. The stable outlook reflects our assumption of sustained double-digit revenue growth in the coming years and high-single-digit growth in the longer term. We expect this to be compounded by higher volumes, innovations, and bolt-on acquisitions, within a market environment that remains extremely favorable for disinfectant and antiseptic products. We also expect Schulke will maintain its market share in the DACH region while expanding into international markets. We anticipate deleveraging comfortably below 5x from 2027 since the group's acquisitive stance implies solid EBITDA growth." An inability to quickly grow revenue, an undisciplined stance on acquisitions, and unexpected client churn and/or supply chain issues could prevent an improvement in adjusted leverage to below 5x. Failure to maintain substantial EBITDA growth to support acquisitions would also put pressure on the ratings. A commitment to a more conservative financial policy with adjusted leverage sustainably below 4x could lead to a positive rating action, but S&P believes this would not be consistent with the group's external growth strategy. ============= I R E L A N D ============= PENTA CLO 10: S&P Assigns B-(sf) Rating on Class F-R Notes ---------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Penta CLO 10 DAC's class X-R, A-R, B-R, C-R, D-R, E-R, and F-R reset notes. At closing, the issuer had unrated class Z and subordinated notes outstanding from the existing transaction, and also issued additional subordinated notes. This transaction is a reset of the already existing transaction that S&P did not rate. The existing classes of notes were fully redeemed with the proceeds from the issuance of the replacement notes. The transaction's target par amount also increased to EUR450 million from EUR400 million. The reinvestment period will be approximately 4.66 years, while the noncall period will be 1.66 years after closing. Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The ratings assigned to the reset notes reflect our 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 2,825.59 Default rate dispersion 470.81 Weighted-average life (years) 4.43 Obligor diversity measure 158.82 Industry diversity measure 20.98 Regional diversity measure 1.32 Weighted-average life (years) extended to cover the length of the reinvestment period 4.66 Transaction key metrics Total par amount (mil. EUR) 450 Defaulted assets (mil. EUR) 0 Number of performing obligors 192 Portfolio weighted-average rating derived from S&P's CDO evaluator 192 'CCC' category rated assets (%) 2.32 Target 'AAA' weighted-average recovery (%) 35.49% Actual weighted-average spread net of floors (%) 3.54 Covenanted weighted-average coupon (%) 4.64 Rating rationale S&P said, "Our ratings reflect our assessment of the collateral portfolio's credit quality, which has a weighted-average rating of 'B'. "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, we conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR450.00 million target par amount, the target weighted-average spread of 3.54%, the target weighted-average coupon of 4.64%, and the target weighted-average recovery rate. 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. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty 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 legal structure and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-R to D-R notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO is still in its reinvestment phase starting from the effective date, during which the transaction's credit risk profile could deteriorate, we capped our ratings on these notes. "For the class X-R, A-R, and E-R notes, our credit and cash flow analysis indicates that the available credit enhancement could withstand stresses commensurate with the assigned ratings. "The class F-R notes' current break-even default rate cushion is negative at the assigned rating. Nevertheless, based on the portfolio's actual characteristics and additional overlaying factors, including our long-term corporate default rates and recent economic outlook, we believe this class is able to sustain a steady-state scenario, in accordance with our criteria." S&P's analysis further reflects several factors, including: -- The class F-R notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- S&P's model-generated portfolio default risk, which is at the 'B-' rating level at 24.84% (for a portfolio with a weighted-average life of 4.65 years), versus 14.89% if it was to consider a long-term sustainable default rate of 3.2% for 4.65 years. -- Whether the tranche is vulnerable to nonpayment in the near future. -- If there is a one-in-two chance of this tranche defaulting. -- If S&P envisions this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F-R notes is commensurate with the assigned 'B- (sf)' rating. "Considering our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our ratings are commensurate with the available credit enhancement for all rated classes of 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 also included the sensitivity of the ratings on the class X-R to E-R 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-R 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 assets from being related to certain activities. Accordingly, since the exclusion of assets from these industries 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." Penta CLO 10 DAC is a European cash flow CLO securitization of a revolving pool, comprising euro-denominated senior secured loans and bonds issued mainly by speculative-grade borrowers. Partners Group CLO Advisers LP manages the transaction. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ X-R AAA (sf) 2.00 N/A Three/six-month EURIBOR plus 0.90% A-R AAA (sf) 279.00 38.00 Three/six-month EURIBOR plus 1.275% B-R AA (sf) 45.90 27.80 Three/six-month EURIBOR plus 1.75% C-R A (sf) 28.80 21.40 Three/six-month EURIBOR plus 2.00% D-R BBB- (sf) 32.40 14.20 Three/six-month EURIBOR plus 3.15% E-R BB- (sf) 22.50 9.20 Three/six-month EURIBOR plus 5.25% F-R B- (sf) 12.10 6.51 Three/six-month EURIBOR plus 8.37% Z NR 5.00 N/A N/A Additional sub. notes NR 10.13 N/A N/A Sub. notes NR 32.92 N/A N/A *The ratings assigned to the class X-R, A-R, and B-R notes address timely interest and ultimate principal payments. The ratings assigned to the class C-R, D-R, E-R, and F-R notes address ultimate interest and principal payments on the rest of the other rated notes. §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. Sub. notes--Subordinated notes. NR--Not rated. N/A--Not applicable. SONA FIOS VII: S&P Assigns B-(sf) Rating on Class F Notes --------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Sona Fios CLO VII DAC's class A, B, C, D, E, and F notes. At closing, the issuer also issued EUR30.70 million unrated subordinated notes. The portfolio's reinvestment period will end approximately 4.5 years after closing, while the noncall period will end 1.5 years after closing. Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The ratings assigned to the notes 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 2,618.77 Default rate dispersion 586.73 Weighted-average life (years) 5.04 Obligor diversity measure 117.30 Industry diversity measure 27.54 Regional diversity measure 1.37 Transaction key metrics Total par amount (mil. EUR) 400 Number of performing obligors 131 Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 0.25 Target 'AAA' weighted-average recovery (%) 35.96 Target weighted-average spread net of floors (%) 3.60 Target weighted-average coupon (%) 4.91 Rating rationale S&P said, "Our ratings reflect our assessment of the collateral portfolio's credit quality, which has a weighted-average rating of 'B'. "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, we conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR400 million target par amount, the covenanted weighted-average spread (3.45%), and the covenanted weighted-average coupon (4.00%) as indicated by the collateral manager. We used the targeted weighted-average recovery rates for all rated notes. 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 indicates that the available credit enhancement for the class B to D notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO will be in its reinvestment phase starting from the effective date, during which the transaction's credit risk profile could deteriorate, we capped our ratings on these notes. "The class F notes' current break-even default cushion is negative at the assigned rating. Nevertheless, based on the portfolio's actual characteristics and additional overlaying factors, including our long-term corporate default rates and recent economic outlook, we believe this class is able to sustain a steady-state scenario, in accordance with our criteria." S&P's analysis further reflects several factors, including: -- The class F notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- S&P's model generated break-even default rate at the 'B-' rating level of 22.67% (for a portfolio with an adjusted weighted-average life of 5 years), versus if it was to consider a long-term sustainable default rate of 3.2% for 5 years, which would result in a target default rate of 16.00%. -- S&P does not believe that there is a one-in-two chance of this tranche defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for this tranche is commensurate with the assigned 'B- (sf)' rating. "Under our structured finance sovereign risk criteria, we consider that the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings (see General: Methodology For Rating Structured Finance Securities Above The Sovereign,” published on April 10, 2026. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our 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 our ratings 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 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 transaction's exposure to environmental, social, and governance (ESG) credit factors as broadly in line with our benchmark for the sector (see "ESG Industry Report Card: Collateralized Loan Obligations,” March 31, 2021). Primarily due to the diversity of the assets within CLOs, the exposure to environmental and social credit factors is viewed as below average, while governance credit factors are average. For this transaction, the documents prohibit or limit certain assets from being related to certain activities. Accordingly, 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." Sona Fios CLO VII DAC is a European cash flow CLO securitization of a revolving pool, comprising mainly euro-denominated leveraged loans and bonds. The transaction is a broadly syndicated CLO managed by Sona Asset Management (UK) LLP. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A AAA (sf) 248.00 38.00 Three/six-month EURIBOR plus 1.31% B AA (sf) 44.00 27.00 Three/six month EURIBOR plus 2.05% C A (sf) 24.00 21.00 Three/six month EURIBOR plus 2.50% D BBB- (sf) 28.00 14.00 Three/six month EURIBOR plus 3.35% E BB- (sf) 18.00 9.50 Three/six month EURIBOR plus 6.00% F B- (sf) 12.00 6.50 Three/six month EURIBOR plus 8.40% Sub notes NR 30.70 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. SOUND POINT III: S&P Raises Class F Notes Rating to 'B (sf)' ------------------------------------------------------------ S&P Global Ratings raised its credit ratings on Sound Point Euro CLO III Funding DAC's class B-1 notes to 'AAA (sf)' from 'AA (sf)', class B-2 notes to 'AAA (sf)' from 'AA (sf)', class C notes to 'AA (sf)' from 'A (sf)', class D notes to 'A (sf)' from 'BBB (sf)', class E notes to 'BB+ (sf)' from 'BB (sf)', and class F notes to 'B (sf)' from 'B- (sf)'. At the same time, S&P affirmed its 'AAA (sf)' rating on the class A notes. Today's rating actions follow the application of our global corporate CLO criteria, and our credit and cash flow analysis of the transaction based on the April 2026 trustee report. Since the transaction's original issuance in March 2020: -- The weighted-average rating of the portfolio remains unchanged at 'B'. -- The portfolio has become more concentrated, and the number of performing obligors has decreased to 113 from 126. -- The portfolio's weighted-average life has decreased to 2.81 years from 5.66 years. -- The percentage of 'CCC'-rated assets has increased to 6.64% from 0%. -- The percentage of defaulted assets has increased to 0.87% from 0%. -- The liabilities decreased by EUR101.37 million, while the assets declined by EUR101.25 million, resulting in a EUR0.11 million gain, equivalent to 0.03% of the aggregate collateral balance since closing. -- Following the full repayment of the class X notes and the ongoing repayment of the class A notes, all classes benefit from higher levels of credit enhancement compared to the levels in the original issuance. Table 1 Credit enhancement Current amount Credit enhancement Credit enhancement Class (mil. EUR) as of March 2020 (%)* at closing (%) A 146.62 38.00 50.95 B-1 28.00 28.00 37.51 B-2 12.00 28.00 37.51 C 28.00 21.00 28.13 D 24.00 15.00 20.10 E 20.00 10.00 13.40 F 10.60 7.35 9.85 Credit enhancement = [Performing balance + cash balance + recovery on defaulted obligations (if any) – tranche balance (including tranche balance of all senior tranches)] / [Performing balance + cash balance + recovery on defaulted obligations (if any)]. *Based on the portfolio composition as reported by the trustee in March 2020. The scenario default rates (SDRs) have decreased for all rating scenarios primarily due to a reduction in the weighted-average life since the closing date (2.81 years from 5.66 years). Table 2 Portfolio benchmarks SPWARF 2,982.65 Default rate dispersion 591.83 Weighted-average life (years) 2.81 Obligor diversity measure 93.90 Industry diversity measure 17.69 Regional diversity measure 1.30 SPWARF--S&P Global Ratings' weighted-average rating factor. On the cash flow side: -- The reinvestment period for the transaction ended in October 2024. -- The class X notes have redeemed and the class A notes are currently redeeming with a note factor of 59.1%. -- No class of notes is currently deferring interest. -- All coverage tests are passing as of the April 2026 trustee report Table 3 Transaction key metrics Total collateral amount (mil. EUR)* 298.74 Defaulted assets (mil. EUR) 2.59 Number of performing obligors 113 Portfolio weighted-average rating B 'AAA' SDR (%) 57.08 'AAA' WARR (%) 35.90 * Performing assets plus cash and expected recoveries on defaulted assets. SDR--Scenario default rate. WARR--Weighted-average recovery rate. S&P said, "In our view, the portfolio is concentrated across obligors, industries, and asset characteristics. "In our credit and cash flow analysis, we considered the transaction's current cash balance of approximately EUR11.98 million, as reported in the April 2026 trustee report. We also considered the level of available principal proceeds from the last three payment date reports and the amount of principal proceeds pending for reinvestment at a later date (EUR56.06 million). We therefore considered a base-case cash flow scenario where the full amount of principal cash will be used to reinvest. "As the manager could use the principal proceeds to deleverage, we also analyzed scenarios incorporating the full amount of principal cash to be used to pay down the notes. "We affirmed our 'AAA (sf)' rating on the class A notes because our base-case credit and cash flow analysis indicates their available credit enhancement is sufficient to withstand the stresses that we apply at this rating level. Our base-case credit and cash flow analysis indicates that the available credit enhancement for the class B-1, B-2, and E notes is commensurate with higher ratings. We therefore raised our ratings on the class B-1 notes to 'AAA (sf)' from 'AA (sf)', on the class B-2 notes to 'AAA (sf)' from 'AA (sf)' and on the class E notes to 'BB+ (sf)' from 'BB (sf)'. "Our base-case cash flow analysis indicates that the available credit enhancement for the class C, D, and F notes is commensurate with higher ratings. However, considering the important exposure of the portfolio to 'CCC'-rated assets, a relative portfolio concentration in countries and industries, the presence of defaulted assets, the current macroeconomic conditions, and relative tranches' seniority, we raised our rating on the class C notes to 'AA (sf)' from 'A (sf)', on the class D notes to 'A (sf)' from 'BBB (sf)' and on the class F notes to 'B (sf)' from 'B- (sf)'. "The transaction's exposure to country risk is limited at the assigned ratings, as the exposure to individual sovereigns does not exceed the diversification thresholds outlined in our structured finance sovereign risk criteria. "Counterparty, operational, and legal risks are adequately mitigated in line with our criteria." Sound Point Euro CLO III Funding DAC is a European cash flow CLO transaction that securitizes loans granted to primarily speculative-grade corporate firms. The transaction is managed by Sound Point CLO C-MOA LLC. =================== L U X E M B O U R G =================== BOLUDA TOWAGE: S&P Assigns 'BB' LongTerm Issuer Credit Rating ------------------------------------------------------------- S&P Global Ratings assigned its 'BB' long-term issuer credit rating to Boluda Towage Luxembourg S.A.R.L., the issuer of the proposed debt, and its 'BB' issue rating to the new team loan B (TLB). The '3' recovery rating on the debt indicates its expectation of meaningful recovery (50%-70%; rounded estimate: 50%) in the event of default. All other ratings on Boluda are unaffected by the transaction. S&P said, "The stable outlook reflects our expectation that the group's steady revenue and EBITDA growth, together with sustained free operating cash flow (FOCF) generation, will support adjusted funds from operations (FFO) to debt of at least 12%. We also assume disciplined financial policy and treasury management, which would support metrics staying within the thresholds for the 'BB' rating." Boluda Towage Luxembourg S.A.R.L., a subsidiary of Boluda Towage Holding S.A. (Boluda), the parent company of Spain-based tugboat operator Boluda Towage S.L., plans to raise EUR2.15 billion equivalent of new senior secured team loan B (TLB) and increase its revolving credit facility (RCF) to EUR300 million from EUR110 million. The proceeds will be used to refinance Boluda's existing debt of EUR1.9 billion including the existing TLB at Boluda Towage S.L. and debt from the corporate loan perimeter and fund future bolt-on acquisitions. The planned transaction aims to simplify the Boluda group's corporate and debt structure, to prolong its debt maturity profile, and to enhance its financial flexibility for opportunistic external growth. Boluda Towage Luxembourg S.A.R.L. is raising a new EUR2.15 billion equivalent seven-year TLB and increasing its EUR110 million RCF to EUR300 million. The group intends to use most of the proceeds to refinance its existing EUR1.1 billion TLB, its EUR645 million corporate loan, and about EUR150 million of other debt including the drawing under its existing RCF. The remainder will be earmarked for future acquisitions (about EUR95 million) and to enlarge available liquidity (about EUR87 million), supplementing the consolidated group's EUR125 million cash on hand at year-end 2025. The transaction will result in an approximately 20% increase in absolute debt to about EUR2.4 billion at the close of the transaction, consisting mainly of the new TLB, immaterial leases, and bilateral debt. The new debt is planned to be issued out of Boluda Towage Luxembourg S.A.R.L., a holding company that will consolidate all the towage operations of the wider Boluda group. Stable operating momentum, solid EBITDA-to-operating cash flow conversion, and prudent financial policy should help Boluda to retain its rating headroom. Boluda has been a market consolidator over the past several years in a sector that remains highly fragmented, where the top five players operate 7% of the global fleet. S&P understands that growth through mergers and acquisitions remains Boluda's key strategic priority. Some previous acquisitions were financed with debt, temporarily leaving Boluda with limited rating headroom for operational setbacks. S&P said, "Our base case for the group for 2026-2027 indicates robust uninterrupted organic topline growth and a solid consolidated EBITDA margin of about 35%. This forecast considers that Boluda will be able to recoup most of the fuel cost increase (about 10% of total cost) through various pass-through mechanisms embedded in most of its contracts. In addition, under our assumptions, FOCF could reach up to EUR80 million in 2026 on the back of increased adjusted EBITDA of EUR440 million-EUR460 million--compared with about EUR430 million in 2025 on a pro forma basis. That will be more than sufficient to cover planned capital expenditure (capex) and higher interest costs as a result of the debt increase, and retain rating-commensurate metrics, with an adjusted FFO-to-debt of 13%-15% in 2026-2027, in line with the rating threshold of more than 12%. "Looking ahead, we understand that management intends to reduce debt to EBITDA and keep it at about 4.0x while continuing to grow via acquisitions, which translates into our adjusted debt-to-EBITDA ratio of about 4.3x. For further details on our credit opinion of Boluda, see "Research Update: Boluda Towage S.L. Upgraded To 'BB' On Enhanced Credit Profile; Parent Rated 'BB'; Outlook Stable," March 20, 2026. "The stable outlook reflects our expectation that the group's steady revenue and EBITDA growth, together with sustained FOCF generation, will support adjusted FFO to debt of at least 12%. We also assume disciplined financial policy and treasury management, which would support metrics staying within the thresholds for the 'BB' rating. "We could lower the ratings if the group's EBITDA underperformed our base case, for example, due to lower-than-expected contributions from the newly consolidated businesses or any unexpected major change in trading patterns that reduces port activity. This would likely result in adjusted FFO to debt falling below 12% with limited prospects of improvement. A major debt-funded acquisition could also pressure the rating if not sufficiently offset by a timely earnings contribution from the acquired business. "We could raise our ratings on both entities if the group's earnings and cash flow improved materially and outperformed our base case, such that adjusted FFO to debt strengthened sustainably to at least 20%. This could occur, for example, if the group generates stronger-than-expected FOCF and prioritizes debt repayment over external growth. An upgrade would require shareholders' commitment to sustain leverage at that level." =========================== U N I T E D K I N G D O M =========================== 12470936 LIMITED: Antony Batty Appointed as Joint Administrators ---------------------------------------------------------------- 12470936 Limited (formerly known as Weare8 Media Ltd) was placed into administration in the High Court of Justice, Court Number CR-2026-003392. Jeffrey Mark Brenner and James William Stares of Antony Batty & Company LLP were appointed as Joint Administrators on April 30, 2026. The Company engaged in social media and advertising. Its registered office is Arquen House, 4–6 Spicer Street, St. Albans, AL3 4PQ. The Joint Administrators can be contacted at: Jeffrey Mark Brenner James William Stares Antony Batty & Company LLP 3 Field Court Gray's Inn London WC1R 5EF Further information: Contact: Marc Evans Tel: 020 7831 1234 Email: Marc@antonybatty.com AUBURN 15: S&P Affirms 'B+(sf)' Rating on Class F-Dfrd Notes ------------------------------------------------------------ S&P Global Ratings affirmed its 'AAA (sf)' credit ratings on Auburn 15 PLC's class A1 NRR loan note, A1, and A2 notes. S&P also affirmed its 'AA (sf)' rating on the class B-Dfrd notes, 'A- (sf)' rating on the class C-Dfrd notes, 'BBB (sf)' rating on the class D-Dfrd notes, 'BB+ (sf)' rating on the class E-Dfrd notes, and 'B+ (sf)' rating on the class F-Dfrd notes. At the same time, S&P resolved its CreditWatch negative placements of the class E-Dfrd and F-Dfrd ratings. S&P said, "The rating actions follow the placement of 119 U.K. RMBS ratings on CreditWatch due to the implementation of updates to our U.K. sector and industry variables under our global RMBS criteria. They also reflect S&P's full analysis of the most recent transaction information and the transaction's current structural features. "The performance of the loans in the collateral pool has improved since closing. Based on our calculation methodology, total arrears decreased to 7.40% in February 2026 from 9.1% at closing. Cumulative losses total 1.12%. "After applying our updated sector and industry variables, the overall effect in our credit analysis resulted in an increase in the weighted-average foreclosure frequency (WAFF) at the senior rating levels due to a curtailment of seasoning credit for interest-only loans. Some of this increase is partially offset by lower anchor default probabilities, lower loan-to-value adjustments, and recalibration and reduction of the originator adjustment." At the lower rating levels decreasing arrears have resulted in a lower WAFF. S&P said, "Our weighted-average loss severities (WALS) have increased at all rating levels, driven by updated repossession costs, increased loan-level loss severity floors, and limited credit to house price indexation, considering the property valuation dates and observed loss severity. Our lower overvaluation assessment for London and the southeast partially offsets some of this negative impact." Credit analysis results Rating level WAFF (%) WALS (%) Credit Coverage (%) AAA 29.64 28.84 8.55 AA 22.89 23.64 5.41 A 19.39 15.71 3.05 BBB 16.06 11.72 1.88 BB 12.54 8.84 1.11 B 11.71 6.28 0.74 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. The liquidity facility is at its required level, however given limited excess spread, the class Z notes' principal deficiency ledger (PDL) is outstanding at £3.925 million (9.48% of the total class Z notes' balance). S&P said, "We affirmed our ratings on the class A1 NRR loan note, A1, and A2 notes because our credit and cash flow results indicate the available credit enhancement remains commensurate with their assigned ratings. Although the class B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes passed cash flow stresses at higher rating levels than those assigned, we considered recovery period extensions beyond our standard 12-month assumption, the upcoming interest-only maturity dates (30% of loans in the portfolio are due to mature over the next three years), the limited excess spread, and relative levels of subordination. We therefore affirmed our ratings on these classes of notes and resolved our CreditWatch negative placements of the class E-Dfrd and F-Dfrd ratings. "Counterparty risk does not constrain the ratings as we consider the transaction to be in line with our counterparty criteria." Auburn 15 PLC is a U.K. BTL residential mortgage loans (94.7%) that Capital Home Loans Ltd. (CHL) originated. CASSIOBURY COURT: Quantuma Advisory Appointed as Administrators --------------------------------------------------------------- Cassiobury Court Ltd was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court Number CR-2026-003506. Nicholas Simmonds and Chris Newell of Quantuma Advisory Limited were appointed as Joint Administrators on May 6, 2026. The Company engaged in residential care activities. Its registered office is 52 High Street, Pinner, HA5 5PW and is in the process of being changed to 1st Floor, 21 Station Road, Watford, Hertfordshire, WD17 1AP. Its principal trading address is Cassiobury Court, Richmond Drive, Watford, WD17 3BH. The Joint Administrators can be contacted at: Nicholas Simmonds Chris Newell Quantuma Advisory Limited 1st Floor, 21 Station Road Watford WD17 1AP Further information: Contact: Silvia Fernandes Tel: 01923 954 179 Email: silvia.fernandes@quantuma.com JEMSL LIMITED: Quantuma Advisory Appointed as Joint Administrators ------------------------------------------------------------------ Jemsl Limited was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court Number CR-2026-003087. Michael Kiely and Terri Mulgrew of Quantuma Advisory Limited, were appointed as Joint Administrators on May 1, 2026. The Company engaged in building and industrial cleaning activities. Its registered office is 6 Blenheim Court, Peppercorn Close, Peterborough, Cambridgeshire, England, PE1 2DU and is in the process of being changed to 7th Floor, 20 St Andrew Street, London, EC4A 3AG. Its principal trading address is 6 Blenheim Court, Peppercorn Close, Peterborough, PE1 2DU. The Joint Administrators can be contacted at: Michael Kiely Terri Mulgrew Quantuma Advisory Limited 7th Floor, 20 St Andrew Street London EC4A 3AG For further information, contact: Contact: Amil Patel Tel: 020 3856 6720 Email: amil.patel@quantuma.com REE AUTOMOTIVE: FRP Advisory Appointed as Joint Administrators -------------------------------------------------------------- REE Automotive UK Limited was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court Number CR-2026-003460. Tom Bowes and Martyn Rickels of FRP Advisory Trading Limited were appointed as Joint Administrators on May 5, 2026. The Company engaged in the manufacture of motor vehicles and business and domestic software development. Its registered office is Power Park, 2 Woodhams Road, Coventry, CV3 4FX and is to be changed to c/o FRP Advisory Trading Limited, 2nd Floor, Abbey House, 32 Booth Street, Manchester, M2 4AB. Its principal trading address is Power Park, 2 Woodhams Road, Coventry, CV3 4FX. The Joint Administrators can be contacted at: Tom Bowes Martyn Rickels FRP Advisory Trading Limited 2nd Floor, Abbey House 32 Booth Street Manchester M2 4AB Further information: Contact: Ben Smith Tel: 0161 833 3344 Email: cp.manchester@frpadvisory.com SWEETBRIDGE EMEA: Menzies LLP Appointed as Joint Administrators --------------------------------------------------------------- Sweetbridge EMEA Ltd was placed into administration in the High Court of Justice, Court Number CR-2026-003238. Giuseppe Parla and Laurence Pagden of Menzies LLP were appointed as Joint Administrators on April 27, 2026. The Company engaged in information technology consultancy activities. Its registered office is 4th Floor, 95 Gresham Street, London, EC2V 7AB. Its principal trading address is 7 Bell Yard, London, WC2A 2JR. The Joint Administrators can be contacted at: Giuseppe Parla Laurence Pagden Menzies LLP 4th Floor, 95 Gresham Street London EC2V 7AB Further information: Contact: Oliver Marsh Tel: 03309 128955 Email: OMarsh@menzies.co.uk ********* 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 2026. 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 * * *