/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/140417.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 Thursday, April 17, 2014, Vol. 15, No. 76 Headlines B U L G A R I A BDZ: Creditors Seize Assets Over Unpaid EUR120-Mil. Loan C R O A T I A OPTIMA TELEKOM: Shareholders Approve Claims-for-Equity Conversion F R A N C E TECHNICOLOR SA: S&P Raises CCR to 'B+'; Outlook Stable G E R M A N Y FLINT GROUP: S&P Assigns Prelim. 'B+' CCR; Outlook Stable KION MATERIAL: S&P Withdraws 'BB' Long-Term Corp. Credit Rating QUEEN STREET II: S&P Lowers Rating on US$100MM Notes to 'D' SUEDZUCKER AG: S&P Puts 'BB+' Sub. Notes Rating on Watch Negative I T A L Y LUCCHINI SPA: April 21 Deadline Set for Expressions of Interest MONTE DEI PASCHI: Shares Suspended Over Proposed Capital Increase K A Z A K H S T A N CHIMPHARM JSC: S&P Affirms 'B-' CCR & Revises Outlook to Stable U N I T E D K I N G D O M ASKAM CONSTRUCTION: Goes Into Administration BROWN BEAR: Euro Foods Buys Firm Out of Liquidation CRESCO LEGAL: In Administration, Clients Leave HEARTS OF MIDLOTHIAN: Creditors Committee OKs UBIG Stake Sale MABLE COMMERCIAL: Claims Filing Deadline Set for April 30 X X X X X X X X * EUROPE: Parliament OKs Winding-Down Rules for Ailing EU Banks ********* =============== B U L G A R I A =============== BDZ: Creditors Seize Assets Over Unpaid EUR120-Mil. Loan -------------------------------------------------------- SeeNews reports that the BDZ said on Wednesday assets of the company have been seized by five banking institutions over outstanding payments of a EUR120 million (US$166.6 million) loan. The company's spokesman told SeeNews German bad bank FMS Wertmanagement, Austria's Ka Finanz, Ireland-based Depfa Bank, BNP Paribas and Bulgaria's Corporate Commercial Bank (Corpbank) have seized the headquarters building and the building of the National Railway Infrastructure Company (NRIC), where BDZ holds 50% of each. According to SeeNews, the spokesman said the move should not have an effect on the holding company's operations. As a result of the seizure, the holding cannot sell the properties under review, SeeNews notes. Debt Talks The Bulgarian transport minister said BDZ's debts decreased to nearly BGN600 million to date from BGN710 million in 2013, SeeNews relates. The ministry has been trying to negotiate with creditors a rescheduling of BDZ's debts over 10 years, SeeNews relays. The transport minister, as cited by SeeNews, said that in May, BDZ will meet with creditors to discuss the problem and prepare a debt repayment schedule. The transport minister also added this week that he will ask the country's finance ministry to engage in the negotiations for the debt rescheduling, SeeNews discloses. BDZ is a Bulgarian railway holding company. ============= C R O A T I A ============= OPTIMA TELEKOM: Shareholders Approve Claims-for-Equity Conversion ----------------------------------------------------------------- SeeNews reports that Optima Telekom said on Tuesday its shareholders have approved converting creditor claims into equity as part of a capital increase. According to SeeNews, Optima Telekom said in a statement that the share capital increase will be conducted through the issue of up to 53,988,017 ordinary shares with a nominal value of HRK10 (US$1.8/EUR1.3) each, carrying entitlement to convert into equity the same value of claims. The 20-day subscription process will be called after the conclusion of Optima Telekom's pre-bankruptcy settlement procedure, SeeNews discloses. The company's share capital currently amounts to HRK28.2 million, SeeNews notes. Earlier this month, incumbent telco Hrvatski Telekom said Croatia's competition authority, AZTN, had conditionally approved its plans to take control of Optima Telekom based on a proposal for the financial and operational restructuring of the fixed-line carrier as part of the pre-bankruptcy settlement procedure, SeeNews recounts. The proposal for financial and operational restructuring anticipates that, along with other creditors, the two largest creditors of Optima Telekom -- Zagrebacka Banka and Hrvatski Telekom -- would convert their claims into equity, SeeNews relays. Optima Telekom is a Croatian fixed-line operator. =========== F R A N C E =========== TECHNICOLOR SA: S&P Raises CCR to 'B+'; Outlook Stable ------------------------------------------------------ Standard & Poor's Ratings Services said it raised its long-term corporate credit ratings on France-based technology company Technicolor S.A. and its subsidiary Thomson Licensing SAS to 'B+' from 'B'. At the same time, S&P affirmed its 'B' short-term corporate credit rating on the Technicolor. The outlook is stable. S&P also raised its issue rating on Technicolor's senior secured debt to 'B-' from 'CCC+' and left the '6' recovery rating on this debt unchanged. S&P raised its issue rating to 'B+' from 'B' on senior secured debt issued by its subsidiaries -- Thomson Licensing SAS, fully and indirectly-owned by Technicolor, and Tech Finance & Co. SCA , a Luxembourg-based orphan special- purpose vehicle that engages in certain financing activities relating to Technicolor. S&P left the '3' recovery rating on Thomson's debt unchanged. The rating action reflects S&P's view of Technicolor's "weak" business risk profile and improving "significant" financial risk profile. S&P has revised its assessment of the group's financial risk upward to "significant" from "aggressive" based on its forecast of improving financial metrics over the next two years. "The "significant" financial risk profile reflects our expectation for sound operating performance in 2014 and 2015, with steady EBITDA growth (before restructuring costs) and lower capital spending. Free operating cash flow (FOCF) should sustainably remain above EUR150 million and enable significant debt repayment under the group's excess cash flow sweep. Gross reported debt at year-end 2013 fell by EUR93 million versus the year-end 2012 figure to about EUR1 billion. We expect that further amortization, including the repayment of about EUR85 million in remaining senior secured debt outstanding at Technicolor, will lower debt to about EUR900 million in 2014, generating adjusted debt to EBITDA of about 2.4x this year and a fall toward 2.0x in 2015," S&P said. "These credit metrics are within our 2x-3x debt-to-EBITDA range for an "intermediate" financial risk assessment. However, we think Technicolor will have highly volatile cash flow and leverage ratios during periods of stress, which prompts our assessment of its financial risk as "significant." In addition, we expect strengthened liquidity and a more ample cushion under the group's financial maintenance covenants. In our opinion, the improved financial risk profile will better position Technicolor and give it greater flexibility as it prepares for increasing business challenges beyond 2015," S&P added. Technicolor's "weak" business risk profile reflects S&P's view that it will face mounting structural hurdles in its Technology and Entertainment Services segments beyond 2015, and execution risks as it aims to expand its Connected Home segment. The Technology segment had the widest EBITDA margins within the group in 2013, at about 73% and representing about 60% of reported full-year earnings. However, about half of the segment's revenues are generated through licensing under Technicolor's participation in the MPEG-LA patent pool, a video standard that will be phased out in 2016. The group has initiatives in progress to replace these revenues and is actively working to develop and license its large and diverse portfolio of patents, but S&P currently forecasts that only a small portion of the revenues and EBITDA will be replaced. This is a primary factor in S&P's business risk assessment for Technicolor. S&P would likely only consider a reassessment based on executed agreements that provided greater trading visibility. In the Entertainment Services segment, S&P forecasts stable earnings through 2015 driven by a good competitive position in the visual effects business, and by declining sales but improving margins in the DVD business. S&P believes a long-term shift away from the DVD format subjects Technicolor to the risk of replacing another revenue source, but in the short term, S&P expects modest declines in DVD sales will be offset by an improved product mix that favors the more profitable Blu-ray format. In the Connected Home business, we forecast steady single-digit sales and margin growth through 2015 after turning a profit in 2013, largely on increasing sales in the highly competitive set- top-box market. S&P thinks this will partially offset the drop off in the Technology segment's licensing revenues starting in 2016. Still, in S&P's view, the group faces execution risk in aiming to achieve its volume growth targets in Connected Home, particularly given its poor segment performance in the last few years. Technicolor provides a wide range of video technologies and systems, finished products, and services to businesses and professionals in the media and entertainment industries. The company licenses its intellectual property focused on imaging and sound technologies through its Technology segment. Through its Entertainment Services segment, it is a leading provider of visual effects, animation, and postproduction services, and a large physical media service provider (film, DVDs, and Blu-ray discs). And with its Connected Home segment, it supplies digital content delivery services and home access devices. The stable outlook reflects S&P's view that, through 2015, Technicolor will lower its debt to EBITDA toward 2x, maintain free operating cash flow exceeding EUR150 million, and sustain strong liquidity. The improved financial risk profile should enable Technicolor to absorb a significant EBITDA decline beyond 2015 if the company is unable to fully offset its expected MPEG- LA license revenue drop with new licensing revenues and/or growth in its Connected Home business. S&P could lower the ratings if Technicolor's financial risk profile weakened, with adjusted debt to EBITDA rising sustainably to 3x or FOCF falling below EUR150 million. This could result from slower debt amortization than S&P currently forecasts or a more rapid deterioration in the business. S&P could raise the ratings if Technicolor's financial risk profile strengthened beyond its current expectations, with adjusted debt to EBITDA falling sustainably to 1.5x. S&P could also raise the ratings if it saw improvement in the group's business risk that supported overall earnings stability. Such improvement would likely follow significant new licensing agreements to provide greater trading visibility and a track record of growth in the Connected Home business that fully offset the expected revenue declines from the phasing out of MPEG-LA. ============= G E R M A N Y ============= FLINT GROUP: S&P Assigns Prelim. 'B+' CCR; Outlook Stable --------------------------------------------------------- Standard & Poor's Ratings Services said that it has assigned its 'B+' preliminary long-term corporate credit rating to Germany- based Flint Group GmbH. The outlook is stable. "At the same time, we assigned our 'B+' preliminary issue rating with a preliminary recovery rating of '3' to the EUR150 million multicurrency revolving facility, as well as to the euro- and U.S. dollar-denominated EUR1,250 million first lien term loan tranches B1, B2, and C. We also assigned a 'B-' preliminary issue rating with a preliminary recovery rating of '6' to the EUR300 million second lien term loan, which is euro- and U.S. dollar-denominated," S&P said. The issue ratings are based on the draft documentation and are subject to S&P's review of the final terms and conditions. Any change to the final terms and conditions could affect the ratings. The 'B+' preliminary corporate credit rating on Flint captures its ongoing acquisition funded with, under S&P's base-case assumptions, EUR500 million of equity and EUR1.55 billion of debt, including EUR1.25 billion first lien and EUR300 million second lien term loans. These funds will be used principally to repay existing debt of about EUR1.8 billion. The rating reflects S&P's assessment of Flint's business risk profile as "fair" and financial risk profile as "highly leveraged," resulting in an anchor of 'b'. S&P makes a one-notch favorable adjustment for comparable rating analysis, as it believes that the resilience of the company's profits in recent years supports reasonable visibility over its medium-term free cash flows. Flint, with about EUR2.15 billion of sales in 2013, is the second-largest global provider of inks and print consumables and operates in the print media and packaging industries. These segments are currently approximately equally weighted in the group's sales and EBITDA. Flint's business model relies largely on vertical integration, covering most of the value chain in the printing industry including flexographic plates (which contribute to profits), as well as ink transfer blankets, press room chemicals, and pigments and resins. In 2013, 37% of revenues were generated in Western Europe, about 28% in North America, and roughly 31% derived from emerging markets (including Brazil, Mexico, China, and India). The stable outlook reflects S&P's view that Flint's profits should show a fair degree of resilience in 2014 and 2015. S&P thinks growth prospects in the packaging segment should broadly compensate for assumed structurally stagnant or gradually declining sales in the print media business. In addition, EBITDA resilience should continue to benefit from management's continued cost control and restructuring initiatives in print media. The business' low capital intensity should therefore support steady free cash flow in the coming years, in S&P's view. This, together with adjusted gross debt to EBITDA of about 5.5x under the new structure, and FFO cash interest coverage of 2.5-3.0x, would be commensurate with the 'B+' rating. S&P could lower the rating if free cash flow was materially lower than the annual EUR90 million-EUR100 million it currently anticipates. This could, for instance, occur in case of an unexpected abrupt or higher-than-anticipated decline in print media volumes materially impairing EBITDA, without offsetting management actions. S&P might also consider a downgrade if gross debt was not reduced over the coming years, for example, if free cash flow was spent solely on acquisitions. Rating upside is limited due to Flint's 50% private equity ownership. However, S&P might consider an upgrade if it saw an explicit and strong commitment from the owners to support more rapid deleveraging (debt repayment) and adjusted debt to EBITDA of 4.0x-4.5x. Upside would also need to be accompanied by continued resilience of Flint's print-media segment and annual free cash flow of about EUR100 million. KION MATERIAL: S&P Withdraws 'BB' Long-Term Corp. Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said it raised to 'BB' from 'BB-' its long-term corporate credit rating on Germany-based material handling equipment manufacturer KION Material Handling GmbH and assigned a positive outlook. Subsequently, S&P withdrew the corporate credit rating on KION Material Handling GmbH and assigned a 'BB' corporate credit rating to the group's top holding company, KION Group AG (KION), which had been the publicly listed entity since the IPO in summer in 2013. The outlook is positive. At the same time, S&P raised its issue ratings on the EUR650 million and EUR500 million senior secured notes to 'BB' from 'BB-'. The recovery ratings the EUR325 million term loan credit facility H1 due 2018 and EUR650 million term loan credit facility H2 due 2020, both issued by Linde Material Handling GmbH, remain unchanged at '4'. In line with the raised corporate credit rating, S&P also raised to 'BB' from 'BB-' the issue ratings on the two credit facilities and their corresponding notes (EUR325 million 7.875% notes due 2018, EUR450 million 6.75% notes due 2020, and EUR200 million floating-rate notes due 2020), each of which was issued by special-purpose vehicle (SPV) KION Finance S.A. Upon completion of the repayment of the EUR325 million 7.875% notes due 2018 and EUR200 million floating-rate notes due 2020, S&P will withdraw its ratings on those instruments. S&P will also withdraw the recovery rating on the EUR325 million term loan credit facility H1 due 2018. The upgrade resulted from S&P's expectation that over 2014-2015, KION will improve its operating performance further and generate positive free cash flow. This should allow KION to further deleverage and strengthen credit metrics from their current levels: adjusted funds from operations (FFO) to debt of about 17% and debt to EBITDA of about 3.3x at year-end 2013. Looking ahead, S&P therefore views KION's credit metrics to be more comfortably positioned within its "significant" financial risk profile category. As a result, S&P has therefore revised its comparative rating analysis modifier to "neutral" from "negative." "In our base-case scenario, we incorporate a moderately positive outlook for the material handling equipment market, with an anticipated recovery in the Western European market. This segment has suffered continued volume declines for a number of years since the 2008-2009 global downturn and remains below pre-crisis levels. Pent-up demand in Europe from 2014 and continued growth in emerging markets (particularly in China, where KION's fully owned operations partner with its anchor shareholder, Weichai) should allow KION to show mid-single-digit revenue growth in 2014 and 2015. The group continues to focus on efficiency improvements. Under what it refers to as "strategy 2020," KION aims to achieve an EBIT margin of 12% (compared with about 9.3% that it reported in 2013). Although we consider achieving the margin target to be challenging, in our analysis we factor in a steady improvement of operating margins into our base case," S&P said. "Following its IPO in summer 2013, we anticipate the group to commit to a relatively conservative financial policy targeting further profitability improvements and debt reduction. We assume dividend payouts in line with the communicated financial policy of 25%-35% and a focus on organic growth, although we expect to see bolt-on acquisitions in line with the moderate levels of the past five years," S&P added. Given the reduction of KKR's and Goldman Sachs' stakes in the KION to less than 40% collectively, S&P has revised its financial policy descriptor to "neutral" from "FS-4". After the IPO, KION applied the proceeds to repay debt that was raised in conjunction with the LBO. In April 2014, the group also plans to repay two of its corporate bonds totaling EUR525 million. The repayment will be funded by an ancillary facility of EUR198 million and drawings under its EUR1,045 million revolving credit facility (RCF) that was drawn by about EUR184 million at year-end 2013. Management estimates this refinancing to yield about EUR20 million in interest savings, in turn benefiting the group's free cash flow generation potential. KION's fair business risk profile is restricted by its exposure to cyclical demand for new material handling equipment and its volatile, though improved, operating profitability. It benefits from very strong market positions in Europe, where it generates close to 80% of sales, and from significant recurring revenues from less-cyclical aftersales activities. KION also has good end market and customer diversity. S&P assess KION's financial risk profile as "significant," with FFO to debt of more than 20% and debt to EBITDA moving below 3x at the end of 2014. In S&P's base case, it assumes: -- KION will be able to show mid-single-digit revenue growth for 2014 and 2015 on the back of recovering volumes in its core Western European market and through continued growth in emerging markets. -- Some moderate improvement in operating margins, supported by ongoing cost savings measures and efficiency improvements. -- Reported EBITDA margin will likely trend toward 17% over 2014-2015 from 15.8% at year-end 2013. -- Capital expenditure to sales of about 3%. -- Moderate working capital investments of about EUR180 million, reflecting mainly investments to the rental fleet, roughly in line with levels of the past four years. -- Dividend payouts within the communicated range of 25%-30% of net income. -- Bolt-on acquisition payouts of about EUR30 million annually. Based on these assumptions, S&P arrives at the following credit measures: -- FFO to debt of more than 20%-25% for 2014, moving above 25% in 2015. -- Debt to EBITDA approaching 3x in 2014, with a further reduction in 2015. -- Significant positive discretionary cash flows. The positive outlook reflects the possibility of a one-notch upgrade of KION to 'BB+' over the coming year. S&P would consider a one-notch upgrade if KION's FFO to debt improved toward 30% with the expectation that it would remain at or above that level on a sustained basis. S&P would expect KION to be able to achieve this if its operating profitability further improved along communicated strategic goals and if it carefully controlled investment in working capital and capital expenditures. S&P also would expect KION to report significantly positive discretionary cash flows to be commensurate with a higher rating. A revision of the outlook to stable would likely be prompted by weaker operating conditions than S&P currently anticipates. This could be caused by weakening economic conditions, failure to control investments in working capital and capital expenditures, or a turn to a more aggressive financial policy. QUEEN STREET II: S&P Lowers Rating on US$100MM Notes to 'D' ----------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered to 'D(sf)' (default) from 'CC(sf)' its ratings on the US$100 million principal-at-risk variable-rate notes issued by Queen Street II Capital Ltd. The notes were issued under an insurance-linked securitization sponsored by Munich Re. Queen Street II Capital covered losses due to North Atlantic hurricane risk in selected states within the U.S., and major European windstorms between March 2011 and March 2014. The downgrade reflects the fact that the holders of the US$100 million principal-at-risk notes did not receive at least 99.99% of the outstanding principal back on the notes' redemption date of April 9, 2014. The downgrade to 'D (sf)' is in accordance with S&P's principles for rating debt issues based on imputed promises. S&P expects to withdraw its rating on the notes issued by Queen Street II Capital Ltd. within the next 30 days. On Feb. 11, 2014, S&P lowered its rating on the US$100 million principal-at-risk notes to 'CC (sf)' from 'BB- (sf)', and removed it from CreditWatch negative, following the issuance of a notice of default from the indenture trustee due to an investment eligibility event. Since S&P received the notice of default, it has monitored the performance of the Federated U.S. Treasury Cash Reserves in which the notes' proceeds have been reinvested. On the redemption date of April 9, 2014, there was a shortfall of US$19,686.90 on the proceeds. The maximum shortfall allowable by S&P's imputed promises criteria is one basis point lower than the total amount of notes. This corresponds to US$10,000 in this particular transaction. Initially, the proceeds from the sale of the notes were invested in a U.S. Treasury money market fund, which was in turn invested in treasury bills set up specifically for the transaction in the MEAG Queen Street II fund. The subsidiary of the asset management arm of Munich Re, MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH, managed the fund. SUEDZUCKER AG: S&P Puts 'BB+' Sub. Notes Rating on Watch Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it had placed its 'BBB+' long-term and 'A-2' short-term corporate credit ratings on German sugar and related agricultural products manufacturer Suedzucker AG on CreditWatch with negative implications. S&P also placed its 'BBB+' rating on Suedzucker's unsecured notes and its 'BB+' rating on the subordinated notes on CreditWatch with negative implications. The CreditWatch placement follows Suedzucker's announcement that it anticipated its revenues would decrease to about EUR7 billion and operating profits to about EUR200 million in the year to February 2015, from EUR7.7 billion and EUR658 million expected in the year to February 2014. S&P understands that EUR40 million of the decline in operating profits is due to a change in International Financial Reporting Standards concerning joint ventures. The CreditWatch placement primarily reflects the risk that Suedzucker's leverage might also remain high through February 2016 if the company doesn't take active measures to protect its credit metrics. Such measures might include a significant reduction in dividends, reduced capital expenditures, some asset disposals, or equity issuance. S&P will resolve the CreditWatch after discussing with Suedzucker's management its financial policy and potential actions to mitigate the company's declining profits and restore its credit metrics to levels commensurate with the 'BBB+' rating. S&P could lower the long-term rating by no more than two notches if Suedzucker is unable to restore its operating profits at least partially and fails to proactively manage its nominal debt level, with leverage (FFO to debt) remaining below 45% in the next two years. S&P could affirm the ratings if it expected Suedzucker to sustain cash flow and leverage ratios in the range typical for its "modest" financial risk profile assessment, that is, FFO to debt higher than 45% and adjusted debt to EBITDA at less than 2x. ========= I T A L Y ========= LUCCHINI SPA: April 21 Deadline Set for Expressions of Interest --------------------------------------------------------------- Dott. Piero Nardi, the Extraordinary Receiver of Lucchini S.p.A. and Servola S.p.A. -- both in extraordinary receivership proceedings, intends to solicit expressions of interest for the purchase of these assets: (a) the Business Complex of Trieste, concerning the production of cast iron as described below: (i) plant owned by Servola located in Trieste, Via di Servola 1; (ii) machinery, systems, equipment, fixed and/or movable auxiliary products, furnishings, furniture, cars, motor vehicles and other Lucchini's and/or Servola's movable properties located in the above mentioned plant and/or used in the running of the Business Complex of Trieste; (iii) licenses, authorizations, permits, certifications, etc., currently in force, granted to Lucchini and/or Servola for the running of the Business Complex of Trieste; (iv) employment contracts and other contracts entered into by Lucchini and/or Servola for the running of the Business Complex of Trieste; (v) trademark "Servola"; (vi) Servola's claims vis-a-vis third parties for an amount of EUR22,000,000. Interested parties may ask the Extraordinary Receiver, by email, for a list of documents to be delivered to the Extraordinary Receiver along with the expression of interest within the indicated deadline. Expressions of interest must be submitted in Italian or English, along with the requested documentation, to: affarisocietari@pec.lucchini.com so as to be received by the Extraordinary Receiver Mr. Piero Nardi no later than 6:00 p.m. (Italian time) on April 21, 2014. The e-mail should have the following subject "Expression of interest for the purchase of the Business Complex of Trieste" and must indicate the name, phone number and e-mail address of the interested party's legal representative. Expressions of interest on behalf of subject(s) to be appointed will not be taken into consideration. It should be noted that, in addition to the requirements/undertakings set forth in the tender conditions (such as, first of all, the undertakings under Article 63, paragraph 2, of the Legislative Decree no. 270 of July 8, 1999), offers for the purchase of the Business Complex of Trieste will be submitted only by persons in possession of the subjective requirements set forth in Article 252bis, paragraphs 4 and 5, of the Legislative Decree no. 152 of April 3, 2006 and, as a condition of admissibility, shall: (a) be accompanied by: (i) a business plan (to be drawn up in strict compliance with the guidelines set forth under the "Framework agreement for the regulation of the interventions related to the redevelopment of the industrial activities, harbor activities and environmental recovery activities of the complex industrial crisis area of Trieste" entered into on January 30, 2014, the "Framework Agreement") providing the description of the reindustrialization and economic development proposal for the Business Complex of Trieste; (ii) a safety interventions project for the Business Complex of Trieste (to be drafted in strict compliance with the guidelines of the Framework Agreement); (iii) a financial plan that shows, also by means of the collection of the Servola's claims vis-a-vis third parties that will be transferred to the purchaser by the Servola Extraordinary Receivership Proceedings, the offeror's availability of the financial resources needed for supporting the projects mentioned under paragraphs (i) and (ii); (b) include the express statement that, in case of awarding, the offeror shall accept the above mentioned Framework Agreement by means of the signing of the required documentation simultaneously with signing of the sale and purchase notarial deed; (c) include the express undertaking that, in case of awarding, the offeror shall: (i) enter into the framework agreements pursuant to Article 252bis of the Legislative Decree n. 152 of April 3, 2006 that will follow the Framework Agreement; (ii) execute, at its own expenses, also by means of the collection of the Servola's claims vis-a-vis third parties that will be transferred to the purchaser by the Servola Extraordinary Receivership Proceedings: (x) firstly, all the activities/interventions needed for the renewal, in favor of the purchaser, of the integrated environmental authorization relating to the Business Complex of Trieste as well as all the safety interventions on the assets (such as, first of all, the systems) included in the aforementioned business complex that will be listed in the authorization above; and (y) all the safety interventions indicated by the Framework Agreement and by the subsequent agreements pursuant to art. 252bis of the Legislative Decree no. 152 of April 3, 2006 with respect to the Business Complex of Trieste and, more generally, to the site where the said complex is located. The project for the re-industrialization of the Business Complex of Trieste site indicated in the Framework Agreement and the list of the safety interventions referred to in paragraph (c)(ii)(y) above shall be requested to the Extraordinary Receiver by sending an e-mail to the certified e-mail address indicated above and shall be returned to the Extraordinary Receiver, duly signed, along with the expression of interest within the deadline indicated above. The announcement is a call for expressions of interest and not an invitation to offer, or an offer for sale. The publication of the announcement and the expressions of interest do not imply any Extraordinary Receiver's obligations to admit the interested parties to the tender procedure and/or to enter in negotiation for the sale and/or to sell, and do not entitle the interested parties to receive any performance by the Lucchini and/or Servola Extraordinary Receiver. Any final decision on the sale will be subject to the authorizing power of the Ministry of Economic Development, following consultation with the Surveillance Committee (Comitato di Sorveglianza). MONTE DEI PASCHI: Shares Suspended Over Proposed Capital Increase ----------------------------------------------------------------- Rachel Sanderson at The Financial Times reports that shares in Monte dei Paschi di Siena, Italy's third largest bank by assets, had to be suspended from trading on Tuesday, April 15, after falling more than 10% on reports that the board is considering a near doubling of a proposed capital increase. According to the FT, people familiar with the matter said Monte Paschi, which is the subject of a state bailout, was considering whether to raise its proposed capital increase from EUR3 billion to at least EUR5 billion. In a statement, the bank, as cited by the FT, said that it was weighing whether to increase its capital raising by an unspecified amount "in light of the asset quality review parameters set out by regulators and talks with the supervisory authority". The FT relates Citi analysts said that if the capital increase did rise to EUR5 billion, the move would "be a significant negative for the stock and could result in a larger capital request to the market that is higher than the market capitalization". Monte Paschi's market capitalization now stands at EUR2.6 billion, having fallen nearly 80% over the past five years amid a series of management and governance missteps -- which included the purchase of a local rival Antonveneta at the peak of the financial boom for EUR9 billion, the FT notes. Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is an Italy-based company engaged in the banking sector. It provides traditional banking services, asset management and private banking, including life insurance, pension funds and investment trusts. In addition, it offers investment banking, including project finance, merchant banking and financial advisory services. The Company comprises more than 3,000 branches, and a structure of channels of distribution. Banca Monte dei Paschi di Siena Group has subsidiaries located throughout Italy, Europe, America, Asia and North Africa. It has numerous subsidiaries, including Mps Sim SpA, MPS Capital Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA. * * * As reported by the Troubled Company Reporter-Europe on Sept. 18, 2013, Fitch downgraded MPS's Viability Rating (VR) to 'ccc' from 'b' and removed it from Rating Watch Negative (RWN). TCR-Europe also reported on June 19, 2013, that Standard & Poor's Ratings Services lowered its long-term counterparty credit rating on Italy-based Banca Monte dei Paschi di Siena SpA (MPS) to 'B' from 'BB', and affirmed the 'B' short-term rating. S&P also lowered its rating on MPS' Lower Tier 2 subordinated notes to 'CCC-' from 'CCC+'. S&P affirmed the ratings on MPS' junior subordinated debt at 'CCC-' and on its preferred stock at 'C'. At the same time, S&P removed the ratings from CreditWatch, where it placed them with negative implications on Dec. 5, 2012. =================== K A Z A K H S T A N =================== CHIMPHARM JSC: S&P Affirms 'B-' CCR & Revises Outlook to Stable --------------------------------------------------------------- Standard & Poor's Ratings Services said that it has affirmed its 'B-' long-term corporate credit rating on Kazakhstan- headquartered generic pharmaceutical manufacturer Chimpharm JSC. At the same time, S&P revised the outlook to stable from positive. S&P also affirmed its 'kzBB' Kazakhstan national scale rating on Chimpharm. S&P subsequently withdrew all the ratings at the company's request. The affirmation reflects S&P's assessment of Chimpharm's business risk profile as "vulnerable" and its financial risk profile as "highly leveraged" at the time of the rating withdrawal. S&P's business risk profile assessment takes into account Chimpharm's relatively smaller size in terms of revenues, lack of research and development capability, high concentration of revenues in Kazakhstan, global ranking among generic pharmaceutical companies below the top 100, and declining profitability. The highly leveraged financial risk profile reflects Chimpharm's increasing debt leverage and negative free operating cash flow. S&P assess Chimpharm's liquidity as "less than adequate" as its criteria define the term. The outlook revision to stable from positive reflects S&P's view that the company's liquidity will remain less than adequate due to its inability to finance its capital expenditure requirements through long-term funding. =========================== U N I T E D K I N G D O M =========================== ASKAM CONSTRUCTION: Goes Into Administration -------------------------------------------- Danielle Thompson at Champ News reports that Askam Construction, the construction company which was working on the former Ainscough Mill in Burscough before it went up in flames last month, has gone into administration. Lancaster-based firm Askam Construction was converting the former mill into 56 new apartments on behalf of developers Persimmon Homes when it was engulfed in a blaze on March 11, according to Champnews. The report notes that Mark Cook, managing director of Persimmon Homes Lancashire, said: "We are extremely disappointed to learn that Askam Construction has gone into administration and our thoughts are with the company's employees at this worrying time. We have immediately begun to put a plan together to find an alternative contractor for the design and build of our redevelopment project at Ainscough Mill in Burscough. "Our employer's agent is contacting a number of parties -- including those that originally tendered for the contract -- and we are committed to resuming work on this development as quickly as possible," the report quoted Mr. Cook as saying. BROWN BEAR: Euro Foods Buys Firm Out of Liquidation --------------------------------------------------- South Wales Argus reports that jobs at a food packing company in Cwmbran have been saved despite the fact the company went into liquidation -- and the new owners say up to 200 jobs could now be created at the site. The future of Brown Bear Foods, based in Llantarnam Industrial Park, was uncertain as the food packing company went into liquidation, according to South Wales Argus. But, the report notes that staff were informed their jobs were saved as a buyer had come forward. The owner of the Euro Foods Group, Shelim Hussain, which is based in Langland Way, Reevesland Park Industrial Estate in Newport, has now bought the business, the report relays. The 40 jobs at the Cwmbran food packing company have been saved, while plans are in place for 200 jobs to be created over the next three years, the report discloses. "I purchased it as I saw the potential and the opportunity to save 40 jobs. The last thing we need in Wales is more redundancies in the food sector. Euro Foods is expanding -- we took the company over so we can take on the work force and utilize the site," the report quoted Mr. Hussain as saying. The report relays that the 200 jobs will be created on the Cwmbran site and will be within the factory and within information technology. Brown Bear Foods moved to Cwmbran from its previous site in Herefordshire in October, the report discloses. The company specialises in packing chilled and frozen foods, particularly ready-cooked chicken products, for several food stores. The Euro Foods Group is an international manufacturer and distributor of frozen and fresh foods, serving restaurant, catering and supermarket chains, employing over 1,500 people worldwide. CRESCO LEGAL: In Administration, Clients Leave ---------------------------------------------- Bridging and Commercial Distributor reports that Cresco Legal Limited has left streams of its corporate clients helpless after it suffered a ruthless court ruling. Cresco Legal goes into liquidation after it was spared no mercy at the Rolls Court of Justice, according to Bridging and Commercial Distributor. The report relates that it was found that the soliciting firm was narrowly unable to settle overdue accounts in time for the hearing. The report notes that the company was seeking a 42-day extension on the case, but the application was rejected. The judge stated he was left with no choice as the company was appearing on its final hearing, the report relates. The firm however was working towards a Company Voluntary Arrangement (CVA) to pay creditors over a fixed period, however an agreement was not made in time, the report notes. The main creditor was the Her Majesty's Revenue and Custom. The firm specialized in commercial, corporate and intellectual law and leaves clients, ranging from a multinational level to small and medium sized businesses, trailing following the strained liquidation process. According to Bridging and Commercial Distributor, Cresco Legal's presence in the legal market was short lived, being set up in 2006 by directors Angus Phang and Francesca Lee, who had backgrounds with leading international law firms. Within its brief period of operation, the company assisted many clients with securing new commercial premises for expansion, advice on property leases and purchase, the report says. The company was known for also having a base in Oxford, the report adds. HEARTS OF MIDLOTHIAN: Creditors Committee OKs UBIG Stake Sale ------------------------------------------------------------- John McGarry at The Daily Mail reports that the future of the Hearts of Midlothian Football Club looks like it has been secured after a meeting of the creditors committee of Ukio Bankas approved the sale of its shares in the stricken Edinburgh club. This development was vital to begin the process of exiting administration and to allow businesswoman Ann Budge to take control, The Daily Mail notes. Creditors of major shareholder UBIG had already agreed to transfer their 50% holding to BIDCO, the Budge-backed vehicle for future fan control, The Daily Mail relates. And securing the 29% of shares held by Ukio Bankas, which holds a charge on Tynecastle Stadium, means the club looks certain to survive in its current form, The Daily Mail states. According to The Daily Mail, Bryan Jackson, joint administrator of Hearts and a business restructuring partner with BDO LLP, commented: "There is still some work to be done to conclude proceedings but we are now very close to a successful conclusion of the CVA. However, I would caution that there is a cooling off period for the consent for the UBIG creditors which ends on April 28, although not one for Ukio as they have a creditors committee, and we are working to have the sale and purchase agreement concluded, hopefully, before the end of the season." About Hearts of Midlothian Hearts of Midlothian Football Club, more commonly known as Hearts, is a Scottish professional football club based in Gorgie, in the west of Edinburgh. Hearts went into administration after the Scottish FA opened disciplinary proceedings against the club. BDO was appointed administrators on June 19. MABLE COMMERCIAL: Claims Filing Deadline Set for April 30 --------------------------------------------------------- D.Y. Schwarzmann, Joint Administrator of Mable Commercial Funding Limited, disclosed that pursuant to Rule 2.95 of the Insolvency Rules 1986, the Joint Administrators of the Company intend to make a distribution (by way of paying an interim dividend) to the preferential creditors (if any) and to unsecured non-preferential creditors of Mable. Proofs of debt may be lodged at any point up to (and including) April 30, 2014, the last date for proving claims, however, creditors are requested to lodge their proofs of debt at the earliest possible opportunity. Persons so proving are required, if so requested, to provide such further details or produce such documents or other evidence as may appear to the Joint Administrators to be necessary. The Joint Administrators will not be obliged to deal with proofs lodged after the last date of proving but they may do so if they think fit. The Joint Administrators intend to make such distribution within the period of two months from the last date for proving claims. For further information, contact details, and proof of debt forms, please visit http://www.pwc.co.uk/business- recovery/administrations/lehman/mable-commercial-funding-limited- in-administration.jhtml Please complete and return a proof of debt form, together with relevant supporting documents, to PricewaterhouseCoopers LLP, 7 More London Riverside, London SE1 2RT marked for the attention of Alison Lieberman. Alternatively, one may email a completed proof of debt form to mable.claims@uk.pwc.com Rule 2.95(2)(c) of the Insolvency Rules 1986 requires the Joint Administrators to state in this notice the value of the prescribed part of Storm's net property which is required to be made available for the satisfaction of Storm's unsecured debts pursuant to section 176A of the Insolvency Act 1986. There are not floating charges over the assets of Storm and accordingly, there shall be no prescribed part. All of Storm's net property will be available for the satisfaction of Storm's unsecured debts. =============== X X X X X X X X =============== * EUROPE: Parliament OKs Winding-Down Rules for Ailing EU Banks --------------------------------------------------------------- Viktoria Dendrinou, writing for The Wall Street Journal, reports that the European Parliament on Tuesday approved an array of rules aimed at mending the European Union's troubled financial sector and winding down broken banks. The votes put the finishing touches on Europe's so-called banking union, a project that EU leaders kicked off almost two years ago after failing savings banks in Spain sent shock waves across the euro zone, the Journal notes. In their final week before breaking up ahead of elections in May, lawmakers passed legislation that makes it easier to impose losses on a failing bank's investors and forces governments to build up funds for protecting deposits by collecting levies from banks, the Journal relays. The new rules will apply to all lenders operating in the 28-country EU, including subsidiaries of U.S. and other foreign banks, the Journal says. According to the Journal, lawmakers also approved the creation of a new authority, called the single-resolution mechanism, that will oversee the shuttering or restructuring of failing euro-zone lenders. A separate law also passed Tuesday requires all 28 EU states to build up deposit-guarantee funds by collecting levies from banks, the Journal relates. The single-resolution mechanism, meanwhile, will affect only banks operating in the 18-country euro zone, the Journal states. It establishes a new authority in charge of closing down or restructuring the currency union's large and cross-border banks if they run into trouble, the Journal relays. It will be backed by a EUR55 billion ($76 billion) common-resolution fund that will be built up over eight years, again by imposing levies on banks, the Journal discloses. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2014. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *