/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/150109.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, January 9, 2015, Vol. 16, No. 6 Headlines F R A N C E SOCIETE NATIONALE: Jan. 19 Deadline Set for Binding Offers I R E L A N D TEMPO CDO 1: Fitch Lowers Rating on Class B Notes to 'Dsf' TRANSAERO ENGINEERING: Court Appoints Interim Examiner WHITELITE AUTOMATION: Potential Investor Withdraws Interest * IRELAND: Corporate Insolvencies Down 15% to 1,164 in 2014 I T A L Y BLUE PANORAMA: Submission of Binding Offers Begins on February 3 L U X E M B O U R G OAK FINANCE: Moody's Withdraws 'B3' Ratings on 2 Note Classes R O M A N I A OLTCHIM SA: Likely to Exit Insolvency This Year S P A I N IM CAJAMAR EMPRESAS 4: Fitch Hikes Cl. B Notes Rating to 'B+sf' U N I T E D K I N G D O M 3LEGS RESOURCES: Directors Retire Ahead of Liquidation in 2015 BABE'S PLACE: Liquidation Sale Set Jan. 9 CITY LINK: Workers Face More Trouble on Unpaid Pension Bill EDDIE BROWN: Goes Into Voluntary Liquidation RANGERS FOOTBALL: Robert Sarver Increases Bid to GBP20 Million RIEVES UK: Closes at Brunel Shopping Center With Jobs Lost SKILLS FOR LOGISTICS: Closes Business, 30 Jobs at Risk THOMAS COOK: Fitch Revises Outlook to Stable & Affirms 'B' IDR X X X X X X X X * BOOK REVIEW: The Sorcerer's Apprentice ********* =========== F R A N C E =========== SOCIETE NATIONALE: Jan. 19 Deadline Set for Binding Offers ---------------------------------------------------------- Societe Nationale Maritime Corse Mediterranee (SNCM) is a Marseille-based ferry operator with lines to Corsica and North Africa and holds a seven-vessel fleet and a Public service delegation for a coming nine-year period. The company, which employs 1,600 people, generated a total amount of sales including public compensation of EUR270 million in 2013 and an EBITDA of EUR19,500,000. A total of 60.7% of this turnover is related to the Public service delegation (of which 46% result from public compensation), which concerns 5 connections between Marseille and Corsica: Ajaccio, Bastia, Balagne, Porto-Vecchio and Propriano. The Administrative Receivers, Maitre Abitbol and Maitre Douhaire, have initiated a process to identify potential acquirers of the different parts of SNCM's various activities and/or assets (including fully owned subsidiaries), through an asset deal. The candidates will have full ability to present one or several offers on perimeters of activities and/or assets for which they are interested. Regarding the Public service delegation, the tenders can be on one or several ferry connections, but have to be described separately ferry connection by ferry connection and should not be indivisible. All offers will be presented to Court, which will have the authority to decide between these offers. The binding offers have to be sent to the Administrative Receivers by January 19, 2015, 11:00 a.m. CET. To access the data-room, candidates have to send an email to Maitre Abitbol -- frederic.abitbol@41ruedufour.fr -- and Maitre Douhaire -- scp@scpdouhaireavazeri.fr A process letter describing the French legislation with regards to such asset deals is also available upon request. ============= I R E L A N D ============= TEMPO CDO 1: Fitch Lowers Rating on Class B Notes to 'Dsf' ---------------------------------------------------------- Fitch Ratings has downgraded Tempo CDO 1 Ltd's Class B note, as: Class B (ISIN XS0179909931): downgraded to 'Dsf' from 'Csf' Tempo is a synthetic arbitrage collateralised debt obligation of mainly mezzanine European and North American structured finance securities. KEY RATING DRIVERS Tempo CDO 1 Ltd's class B notes have been downgraded to 'Dsf', after they were written down as a result of the settlement of several credit events related to the portfolio's underlying securities. TRANSAERO ENGINEERING: Court Appoints Interim Examiner ------------------------------------------------------ MRO Network reports that Transaero Engineering Ireland (TEI) has been granted court protection from its creditors in a bid to rescue the firm from insolvency while it restructures. According to the report, the maintenance company, formerly Air Atlanta Aero Engineering, is in financial difficulties after its parent company, Russian carrier Transaero Airlines, failed to pay its bills. MRO Network relates that the carrier bought the MRO firm in 2012 and has been paying for maintenance services on a cost-only basis, however, international sanctions on Russia and the crash in the value of the ruble have left Transaero struggling financially. The airline has secured a nine billion ruble credit from the Russian government, but is "not in a position to pay TEI moneys due for services rendered and has indicated that it is not in a position to support TEI on an ongoing basis," a statement from TEI confirmed, the report relays. On January 5, the Irish courts granted Shannon-based TEI a 10-week period of protection from "predatory creditors" and appointed an interim examiner for TEI who is to work on a restructure plan, according to MRO Network. "TEI is confident that, in addition to the current customer base, a number of new third party customers will be secured to enable it create a strong business going forward," a statement on the MRO's website said, the report relays. MRO Network relates that the firm, which employs 237 people, said it will continue to trade as normal and has already made moves to secure an investment that will "put the company on to a solid footing". WHITELITE AUTOMATION: Potential Investor Withdraws Interest ----------------------------------------------------------- According to Irish Examiner's Ray Managh, the High Court heard on Jan. 6 that a bid by an examiner to mount a rescue scheme for Whitelite Automation Ltd and 29 of its employees has failed. Barrister Eithne Corry told Mr. Justice Bernard Barton that a potential investor had withdrawn its interest in the company and the examiner, Neil Hughes, of Hughes Blake, was seeking to have the company put into liquidation, Irish Examiner relates. Ms. Corry, as cited by Irish Examiner, said the 100-day court protection of the company against its creditors ended on Jan. 6 and Mr. Hughes considered the best interests of creditors would be served by Whitelite being wound up and its assets being sold off. Mr. Hughes, who was appointed joint liquidator with Joseph Walsh, said in an affidavit the main reason for the withdrawal of interest by the proposed confidential investor was due to external factors, most notably the collapse in the price of oil and the current economic crisis in Russia, Irish Examiner relays. Whitelite Automation Ltd. is based in Carlow. * IRELAND: Corporate Insolvencies Down 15% to 1,164 in 2014 ----------------------------------------------------------- The total number of corporate insolvencies in Ireland fell by 15% in 2014 compared to 2013 based on the latest statistics released on Jan. 7 by Deloitte and published by Insolvencyjournal.ie. According to InsolvencyJournal.ie, there were 1,164 insolvencies recorded in 2014, a drop of 201 on the 2013 total of 1,365. The total number in 2014 is 31% below the peak of 1,684 recorded in 2012 since the economic crash in 2007, InsolvencyJournal.ie notes. The construction sector accounted for 20% of the total number of insolvencies in 2014 -- the largest proportion at an industry level, InsolvencyJournal.ie discloses. The services, retail, and hospitality sectors accounted for 16%, 14%, and 13% respectively which was broadly in line with prior years, InsolvencyJournal.ie states. Analysis of the types of insolvencies reveals that creditors' voluntary liquidations accounted for 67% of the total number; receiverships accounted for 26%; court appointed liquidations contributed 6% of the total; and examinerships accounted for 2%, InsolvencyJournal.ie relays. All types remained at relatively the same percentage of the total number of insolvencies in 2014 when compared with 2013, according to InsolvencyJournal.ie. Creditors' voluntary liquidations remained at 67%, while receiverships fell from 27% to 26%, InsolvencyJournal.ie says. Court appointed liquidations increased from 5% to 6%, InsolvencyJournal.ie states. Examinations remained stagnant at 2%, InsolvencyJournal.ie relates. ========= I T A L Y ========= BLUE PANORAMA: Submission of Binding Offers Begins on February 3 ---------------------------------------------------------------- Giuseppe Leogrande, acting as Extraordinary Commissioner of Blue Panorama Airlines S.p.A. under Extraordinary Administration, in compliance with the authorization issued by the Ministry of the Economic Development on December 11, 2014, disclosed that the sale procedure in respect of the going concern of Blue Panorama Airlines S.p.A. under Extraordinary Administration will proceed by way of private negotiation, subject to any assessment by the Extraordinary Commissioner on the reliability of each prospective offeror, based on the provision of article 63 of the Legislative Decree no. 270/1999. It is hereby clarified that, pursuant to article 63 of the Legislative Decree no. 270/1999, the purchase offer shall mandatorily include the commitment by the purchaser to continue the going concern for at least two years from the acquisition and to keep for such period the same employment levels set forth under the sale contract. Proper guarantees shall be granted to secure said commitments. In addition, a detailed business plan for the continuation of the activity shall be enclosed to the purchase offer. Any interested party can request copy of the relevant confidentiality agreement, to be executed in advance of the access to the data room, as well as any further clarification or information from: Studio Pierallini Viale Liegi 28 Rome, Italy Tel No.: (+39)06-8841713 Fax No.: (+39)06-8840249) Attn: Laura Periallini -- l.pierallini@pierallini.it Gianluigi Ascenzi -- g.ascenzi@pierallini.it The binding offers shall be delivered by registered letter at the office of the Notary Public Mr. Marco Jeva, in Via Maria Cristina 8, Rome, Italy, in the ten working days and at the hours indicated herein: on February 3, February 4, February 5, February 9, February 10, February 11, February 12 and February 16, 2015, from 9:00 a.m. to 1:00 p.m., and from 3:00 p.m. to 7:00 p.m.; on February 6 and February 13, 2015 from 9:00 a.m. to 1:00 p.m. Any assessment with respect to the selection of the purchaser of the business is conditional upon, and subject to, the authorization of the Ministry of the Economic Development pursuant to the applicable laws. In any case, the Extraordinary Commissioner reserves the right -- subject to prior authorization by its controlling and surveillance bodies -- to suspend, interrupt and/or extend the term for the submission of the offers, excluding in that respect all claims for any reason whatever by the parties admitted to the data room. The publication of this notice, as well as any related and consequent activity, will not result in the undertaking of any liability, including pre-contractual liability, by Blue Panorama Airlines S.p.A. under Extraordinary Administration and by the Extraordinary Commissioner, nor the obligation to finalize the sale of the business. The notice is only an invitation to submit binding offers, and not also a public offer pursuant to article 1336 of the Italian Civil Code or a solicitation to savings pursuant to article 94, and subsequent, of Legislative Decree no. 58/1998. =================== L U X E M B O U R G =================== OAK FINANCE: Moody's Withdraws 'B3' Ratings on 2 Note Classes ------------------------------------------------------------- Moody's Investors Service has withdrawn the ratings on the two classes of notes issued by Oak Finance Luxembourg S.A. acting in respect of Compartment 1. Complete rating actions are as follows: Issuer: Oak Finance Luxembourg S.A. acting in respect of Compartment 1 Series 2014-01 Class A1 USD484,600,000 Fixed Rate Secured Installment Notes due 2016, withdrawn; previously on Sep 2, 2014 affirmed B3 and placed under review for downgrade Series 2014-01 Class A2 USD300,000,000 Fixed Rate Secured Installment Notes due 2018, withdrawn; previously on Sep 2, 2014 affirmed B3 and placed under review for downgrade Ratings Rationale Moody's has withdrawn the rating because it believes it has insufficient or otherwise inadequate information to support the maintenance of the rating. ============= R O M A N I A ============= OLTCHIM SA: Likely to Exit Insolvency This Year ----------------------------------------------- Romania Insider reports that Oltchim SA, majority owned by the state of Romania, will most likely exit insolvency this year. Economy Minister Mihai Tudose met the judicial administrators, as well as representatives of the Oltchim employees union, on Jan. 6, Romania Insider relates. "The option to move to bankruptcy is excluded. The financial evolution in the last year shows positive premises for a profitable reorganization," Romania Insider quotes Mr. Tudose as saying in a statement. Oltchim's turnover went up from EUR5.4 million a month in February 2013, when the company became insolvent, to some EUR16 million a month at end-2014, Romania Insider discloses. For the first time in the last three years, the company posted a gross profit from exploitation -- EUR580,000 for the months of October and November 2014, Romania Insider notes. Oltchim SA is a large chemical producer. ========= S P A I N ========= IM CAJAMAR EMPRESAS 4: Fitch Hikes Cl. B Notes Rating to 'B+sf' --------------------------------------------------------------- Fitch Ratings has upgraded IM Cajamar Empresas 4, FTA's class B notes and affirmed the class A notes as: Class A (ES0347454003): affirmed at A+sf; Outlook Stable Class B (ES0347454011): upgraded to B+sf from CCCsf; Outlook Stable IM Cajamar Empresas 4 is a static, cash flow securitization of a portfolio of secured and unsecured loans granted to Spanish self- employed individuals and SMEs by Cajas Rurales Unidas, Sociedad Cooperativa de Credito (formerly Cajamar Caja Rural, Sociedad Cooperativa de Credito) KEY RATING DRIVERS Counterparty Exposure The maximum achievable rating for the senior notes is capped at 'A+sf' due to the account bank trigger being set at 'BBB+'/'F2' in the transaction documents. Increased Credit Enhancement The affirmation of the class A notes reflects the increasing credit enhancement due to deleveraging. The pool factor had reduced to 48% as of October 2014 from 65% at the last annual review. Credit enhancement for the senior notes had increased to 61% in October 2014 from 43% in October 2013 while for the junior notes it increased to 22% from 13% over the same period. The upgrade of the class B notes reflects the increased credit enhancement, rising to 22% in October 2014 from 13% in October 2013. From June 2013 to March 2014, interest on the class B notes was deferred due to increased defaults that had to be provisioned with available funds. However, in March 2014, accrued interests were paid and since then, interest on the class B notes has been paid. Transaction Performance 90d+ delinquencies have decreased to 1.2% from 2.1% at the last rating review. Current defaults are now significantly higher having increased to 6.3% from 2.8% of outstanding balance from October 2013 partially caused by note amortization. The weighted average recovery rate has increased considerably since the last rating review, to 8.3% from 3.9%, and Fitch expects this trend to continue as per the standard recovery lag in Spain. Fully Funded Non-Amortizing Reserve Fund Fitch considers the fully funded non-amortizing cash reserve of EUR94.5m sufficient to mitigate potential payment interruption that may arise from the transaction exposure to a non-investment grade servicer, Cajas Rurales Unidas, Sociedad Cooperativa de Credito (BB/Negative/B). The cash reserve provides sufficient liquidity to cover for interest shortfalls on the class A notes until fully redeemed, and for the class B notes thereafter. RATING SENSITIVITIES Unexpected increases in the default rate and loss severity on defaulted loans could produce loss levels greater than the base case and could result in negative rating actions on the notes. Rating Sensitivity to Increased Default Rate (DR) Assumptions Classes A and B notes Current DR base case: 'A+sf'/'B+sf' Increase DR base case by 15%: 'A+sf'/'Bsf' Increase DR base case by 30%: 'A+sf'/'CCCsf' or below Increase DR base case by 45%: 'A+sf'/'CCCsf' or below Rating Sensitivity to Reduced Recovery Rate (RR) Assumptions Classes A and B notes Current RR base case: 'A+sf'/'B+sf' Reduce RR base case by 15%: 'A+sf'/'Bsf' Reduce RR base case by 30%: 'A+sf'/'CCCsf' or below Reduce RR base case by 45%: 'A+sf'/'CCCsf' or below Rating Sensitivity to Multiple Factors Classes A and B notes Current base case assumptions: 'A+sf'/'B+sf' Mild stress: Increase DR base case by 15%, reduce RR base case by 15%: 'A+sf'/'CCCsf' or below Moderate stress: Increase DR base case by 30%, reduce RR base case by 30%: 'A+sf'/'CCCsf' or below Severe stress: Increase DR base case by 45%, reduce RR base case by 45%: 'A+sf'/'CCCsf' or below =========================== U N I T E D K I N G D O M =========================== 3LEGS RESOURCES: Directors Retire Ahead of Liquidation in 2015 -------------------------------------------------------------- Alliance News reports that 3Legs Resources PLC said three of the company's directors retired from the business at the end of 2014 following the expiry of their notice periods. Non-Executive Chairman of the Audit Committee Richard Hills, and Non-Executive Directors Rod Perry and David Bremner all retired from 3Legs on December 31, 2014, according to Alliance News. "The company still intends, in the absence of a suitable alternative course of action, to put itself into a solvent liquidation as soon as possible and in any event by March 31, 2015, to be followed by a final distribution to be made at the conclusion of the liquidation," it said in a statement obtained by Alliance News. In November last year, 3Legs laid out its plans to put itself into a members' voluntary liquidation as soon as possible, after shareholders approved plans to return GBP15.9 million, or around 18.5 pence per share to investors, the report notes. BABE'S PLACE: Liquidation Sale Set Jan. 9 ------------------------------------------ The Bellingham Herald reports that a landmark downtown restaurant won't be reopening and is having a liquidation sale on Friday, Jan. 9. Babe's Place at 2038 Main St. suffered damage from an electrical fire in November and won't be re-opening because of a landlord- tenant dispute, said Dawn DiLorenzo, who owns the restaurant with her brother, Oliver Alexander, according to Bellingham Herald. The report notes that Ms. DiLorenzo has scheduled an auction at the restaurant from 10:00 a.m. to 7:00 p.m. Friday, selling a variety of restaurant equipment along with some of the memorabilia collected over the years. The auction is being organized by Eartha Kitty's Estate Sales & Appraisal, the report notes. Ms. DiLorenzo plans on keeping on some of the items with the hope that she will reopen Babe's Place in another building in Ferndale. After the fire in November, Ms. DiLorenzo said they worked to repair the damage but in the end they lost the lease for the building, the report notes. That was a blow to Ms. DiLorenzo, who for years worked at the restaurant as an employee and grew up in Whatcom County, the report relays. "It's hard to sell anything, but we won't give up," Ms. DiLorenzo said on the prospect of bringing back Babe's Place to Ferndale, the report adds. CITY LINK: Workers Face More Trouble on Unpaid Pension Bill ----------------------------------------------------------- Ruth Sutherland and Rupert Steiner at The Daily Mail report that thousands of employees at collapsed parcel delivery outfit City Link face more misery as it emerged the private equity-owned firm owes the pension scheme a six-figure sum in unpaid contributions. Employees were told of the company's downfall on Christmas Day, while a last-ditch bid to save the firm failed on New Year's Eve. Administrator Ernst & Young announced 2,356 redundancies, saying that an offer to buy it had not been acceptable, the Mail discloses. EY was unable to give answers over unpaid pension contributions that employees believed had been paid into their retirement plans, the report notes. According to the Mail, a spokesman said City Link, owned by private equity baron Jon Moulton's Better Capital, currently owes contributions of GBP141,000 to its defined contribution pension scheme. It is understood this is a payment for December 2014 that is not yet due, but that will not be paid on time due to the insolvency of the company, the report says. It is not known how many workers are members of the company schemes. The Mail says pensions are all defined contribution schemes where staff pensions depend on the amount paid in and how well the scheme investments perform. The assets of the schemes are held separately from those of the company in an independently administered fund so should not be at risk in the insolvency, relates the Mail. According to the report, EY said the money purchase scheme is provided by The People's Pension. However, it is not clear whether the unpaid contributions will be made good, and, if so, who will foot the bill. EY told the Mail: "Any contributions owed to the pension scheme at the date of the appointment would represent a claim against the company, which in certain circumstances might represent a preferential claim." The Insolvency Service was unable to say whether the shortfall would be picked up by the taxpayer, the Mail adds. About City Link City Link is a Coventry-based courier and parcel delivery services provider. Hunter Kelly, Charles King and Tom Lukic of EY's Restructuring team were appointed Joint Administrators of City Link Limited and City Link (Properties) No.1 Limited, on Dec. 24, 2014. On appointment of the Joint Administrators, City Link Limited ceased to accept any further parcels from customers at either the Company's head office and transport hub in Coventry; its three other transport hubs in West Drayton (Heathrow), Peterborough and Warrington, and its 53 depots throughout the UK. "The Company has entered administration as a result of continued substantial losses and is unable to continue accepting new parcels due to the further losses it would incur," EY said. EDDIE BROWN: Goes Into Voluntary Liquidation -------------------------------------------- Ripon Gazette reports that Wetherby-based Eddie Brown Tours Ltd has been placed in voluntary receivership after running out of cash. The decision, which was implemented on December 23, came after the Her Majesty's Revenue and Custom petitioned a winding-up order for GBP300,000, according to Ripon Gazette. The report notes that the firm, based at Thorp Arch Estate, was bought by Barbados-based Island Fortitude earlier in the year and has struggled with historical debt and other issues. This culminated in 28 of its 38 vehicles being taken back by finance companies in mid-December, the report notes. Since the firm was bought, more than GBP250,000 has been put into the business by its shareholders, who are the biggest creditor, the report discloses. This money will be lost by the shareholders. A new company, Eddie Brown Travel Ltd, will take over some of the work, with it being operated by other coach firms owned by Island Fortitude, the report says. The report relays that private hire and coach touring contracts have been re-assigned to other non-connected operators. Staff wages were also paid immediately before the company was put into receivership, the report notes. The report discloses that Eddie Brown Director Gary Priest told Route One Magazine: "The investors had 48 hours to examine the business when it was sold by KPMG, which meant that the due diligence was not as thorough as it would otherwise have been. "After purchasing the firm from the Brown family, a number of financial issues were discovered. . . . We've worked incredibly hard to try to trade our way out of it, but ultimately the winding-up petition served by HMRC left the shareholders with no alternative, other than to appoint receivers," the report quoted Mr. Priest as saying. "We have set up Eddie Brown Travel Ltd which will continue in a smaller, profitable, form and continue to provide employment for staff on a firm financial footing," Mr. Priest added. RANGERS FOOTBALL: Robert Sarver Increases Bid to GBP20 Million -------------------------------------------------------------- BBC News reports that Robert Sarver has increased his offer to buy the Rangers Football Club to GBP20 million, which is GBP2 million more than his bid that was rejected by the club's board on Jan. 6. The American financier, 53, has also offered GBP6.5 million in a short-term loan to alleviate the club's cash shortage, BBC relates. According to BBC, Mr. Sarver said it would help the board deal with its "cash flow crunch" and address his desire to see Rangers on "a solid long-term financial footing". Rangers, as cited by BBC, said his earlier GBP18 million bid undervalued the club. The owner of the NBA Phoenix Suns basketball franchise issued a statement on Jan. 8 saying he was prepared to increase his offer to buy out existing shareholders at 20p per share rather than the original offer of 18p, BBC relays. Mr. Sarver suggests that the loan offer of GBP6.5 million would leave Rangers free of debt, allowing them to repay the loans made by shareholders Mike Ashley and Sandy Easdale, BBC states. It has since emerged that Mr. Easdale, a shareholder and the chairman of the football board, has been repaid the GBP500,000 emergency interest-free loan he recently made to the club, according to BBC. The terms of Sarver's loan offer have not been revealed, BBC notes. About Rangers Football Club Rangers Football Club PLC -- http://www.rangers.premiumtv.co.uk/ -- is a United Kingdom-based company engaged in the operation of a professional football club. The Company has launched its own Internet television station, RANGERSTV.tv. The station combines the use of Internet television programming alongside traditional Web-based services. Services offered include the streaming of home matches and on-demand streaming of domestic and European games, which include dedicated pre-match, half-time and post- match commentary. The Company will produce dedicated news magazine and feature programs, while the fans can also access a library of classic European, Old Firm and Scottish Premier League (SPL) action. Its own dedicated television studio at Ibrox provides onsite production, editing and encoding facilities to produce content for distribution on all media platforms. RIEVES UK: Closes at Brunel Shopping Center With Jobs Lost ---------------------------------------------------------- Swindon Advertiser reports that staff arrived to work at National Lottery's kiosk in The Brunel Shopping Centre on Wednesday morning, January 7, to find it would not be opening and they had lost their jobs. The shopping center confirmed Rieves UK Limited, the UK's retail lottery specialist which operates 35 kiosks across the nation's shopping centers, had closed its unit, according to Swindon Advertiser. The report notes that customers said staff had turned up to work at the centre Wednesday, but found the kiosk would not be opening. "Rieves has gone into administration, we understand. Normally, if a retailer goes into administration, we remove its right to sell tickets and re-site the machines elsewhere as soon as possible," the report quoted a spokesman for Camelot, the licensed operator of National Lottery, as saying. "Their machines have been suspended, though we use the term suppressed, which means their terminals no longer work," the spokesman added. SKILLS FOR LOGISTICS: Closes Business, 30 Jobs at Risk ------------------------------------------------------ Third Sector reports that more than 30 jobs are at risk at the skills development charity Skills for Logistics after its board announced on January 6 its closure and possible entry into administration in the wake of pressure from the trustees of its pension scheme. A statement circulated to staff and external stakeholders said: "The board of Skills for Logistics has taken the decision to close the business and is considering placing the company into administration in order to facilitate this closure. This has happened due to pressure placed on the business by the trustees of the pension scheme, which SfL joined following its initial set-up in 2003," according to Third Sector. The report notes that the charity's accounts show that its pension deficit was estimated to be GBP1.2 million on March 31, 2014, down from an estimated GBP1.5 million in 2010, but because the charity is part of a multi-employer scheme it is "unable to identify its share of the underlying assets and liabilities in the scheme on a consistent and reasonable basis," the report notes. The SfL statement continues: "Like many similar organizations, the significant pension deficit and subsequent ongoing recovery payments have placed extreme pressure on a smaller SfL business in a rapidly changing economic environment," the report notes. The report discloses that the statement said that another factor in the closure has been SfL's struggle to replace revenue streams after the withdrawal of public funding. It is possible that some SfL activities and staff will continue to operate in another form, the statement implies, the report relays. It said that the charity's trustees are "starting to work with our stakeholders to find a natural home for any ongoing projects," the report notes. Andrew O'Brien, head of policy and public affairs at the Charity Finance Group, said this case reminded charities of the need to fully understand, regularly review and where necessary adapt their pension arrangements, the report discloses. "Government and regulators also need to ensure that sufficient information is given to charities about pension risks, so that they can take appropriate actions," the report quoted Mr. O'Brien as saying. Skills for Logistics, one of 18 sector skills councils in the UK, develops and delivers programs to attract and develop staff for the freight logistics industry. THOMAS COOK: Fitch Revises Outlook to Stable & Affirms 'B' IDR -------------------------------------------------------------- Fitch Ratings has revised UK-based tour operator Thomas Cook Group plc's (TCG) Outlook to Stable from Positive, while affirming its Long-term Issuer Default Rating (IDR) at 'B'. The senior unsecured notes issued by Thomas Cook Finance plc have also been affirmed at 'B+'/'RR3'. The Outlook revision reflects Fitch's view that developing competitive trends and Thomas Cook's positioning in the tour operator and airline marketplace will continue to limit the momentum with which the business can strengthen the company's free cash flow generation and credit profile. Fitch, however, recognizes the group's successful cost-cutting, which Fitch believes will continue to be supported by an on-going fleet renewal program. The affirmation reflects improved results for the financial year ended September 2014, following significant further cost-cutting. KEY RATING DRIVERS Turnaround Plan, Improved Trading TCG continues to deliver on its Wave 1 cost-cutting program, by achieving GBP400 million cumulative savings against a previously announced target of GBP360 million, while the EBIT margin improved to 3.8% at FYE14 from 2.8% at FYE13. TCG's turnaround plan is designed to improve profitability by GBP500 million (recently increased from GBP460 million) by end-2015. A further GBP400 million of cost-cutting (Wave 2 program) by end- 2018 has now been identified. There are execution risks, but Fitch notes management's successful track record to date and expect that it will continue to execute the plan, notwithstanding the recent change in CEO. Competitive, Low Margin Industry Competition in the holiday sector remains keen, notably from low- cost airlines and the constant growth of online companies such as Expedia.com. Against a target online penetration rate of 50% for bookings by 2015, TCG's online bookings only rose to 38% of total bookings at FYE14 (target 40%), suggesting that TCG, despite its strong brand name, is yet to be identified as a first-call online brand. Established Brand Name The ratings continue to benefit from the strong brand name, geographical diversification of its customer base and end- destinations, dynamic new management, a cost-cutting and re- organization program, improved working capital management and IT system rationalization. Seasonality and Leverage Working capital typically increases by up to GBP700 million between September to December, due to this being a quieter holiday period and higher marketing costs for the summer season. Group-adjusted funds from operations (FFO) gross leverage is forecast to be around 5.5x at FYE15 (including working capital swings of GBP700 million), from around 6.5x at FYE14. Liquidity Following a successful refinancing in 2013 we expect sustained and improving free cash flow generation, an extended debt maturity profile, and available cash balances and undrawn committed bank lines to support the business's financial flexibility and liquidity. RATING SENSITIVITIES Positive: Future developments that could lead to positive rating action include: -- An enhanced EBIT margin of close to 4% -- Positive free cash flow generation -- Improved interest cover and lease-adjusted FFO gross leverage (including GBP700m for working changes) below 5.0x Negative: Future developments that could lead to negative rating action include: -- Deterioration in EBIT margin below 2.5%, reflecting increased competition -- Liquidity headroom below GBP200m -- Increase in FFO gross leverage (as adjusted by Fitch) above 7.0x =============== X X X X X X X X =============== * BOOK REVIEW: The Sorcerer's Apprentice ---------------------------------------- Author: Sallie Tisdale Publisher: BeardBooks Softcover: 270 pages List Price: $34.95 Review by Henry Berry Order your own personal copy at http://is.gd/9SAfJR An earlier edition of "The Sorcerer's Apprentice" won an American Health Book Award in 1986. The book has been recognized as an outstanding book on popular science. Tisdale brings to her subject of the wide and engrossing field of health and illness the perspective, as well as the special sympathies and sensitivities, of a registered nurse. She is an exceptionally skilled writer. Again and again, her descriptions of ill individuals and images of illnesses such as cancer and meningitis make a lasting impression. Tisdale accomplishes the tricky business of bringing the reader to an understanding of what persons experience when they are ill; and in doing this, to understand more about the nature of illness as well. Her style and aim as a writer are like that of a medical or science journalist for leading major newspaper, say the "New York Times" or "Los Angeles Times." To this informative, readable style is added the probing interest and concern of the philosopher trying to shed some light on one of the central and most unsettling aspects of human existence. In this insightful, illuminating, probing exploration of the mystery of illness, Tisdale also outlines the limits of the effectiveness of treatments and cures, even with modern medicine's store of technology and drugs. These are often called "miracles" of modern medicine. But from this author's perspective, with the most serious, life-threatening, illnesses, doctors and other healthcare professionals are like sorcerer's trying to work magic on them. They hope to bring improvement, but can never be sure what they do will bring it about. Tisdale's intent is not to debunk modern medicine, belittle its resources and ways, or suggest that the medical profession holds out false hopes. Her intent is do report on the mystery of serious illness as she has witnessed it and from this, imagined what it is like in her varied work as a registered nurse. She also writes from her own experiences in being chronically ill when she was younger and the pain and surgery going with this. She writes, "I want to get at the reasons for the strange state of amnesia we in the health professions find ourselves in. I want to find clues to my weird experiences, try to sense the nature of being sick." The amnesia of health professionals is their state of mind from the demands placed on them all the time by patients, employers, and society, as well as themselves, to cure illness, to save lives, to make sick people feel better. Doctors, surgeons, nurses, and other health-care professionals become primarily technicians applying the wonders of modern medicine. Because of the volume of patients, they do not get to spend much time with any one or a few of them. It's all they can do to apply the prescribed treatment, apply more of it if it doesn't work the first time, and try something else if this treatment doesn't seem to be effective. Added to this is keeping up with the new medical studies and treatments. But Tisdale stepped out of this problem solving outlook, can-do, perfectionist mentality by opting to spend most of her time in nursing homes, where she would be among old persons she would see regularly, away from the high-charged atmosphere of a hospital with its "many medical students, technicians, administrators, and insurance review artists." To stay on her "medical toes," she balanced this with working occasional shifts in a nearby hospital. In her hospital work, she worked in a neonatal intensive care unit (NICU), intensive care unit (ICU), a burn center, and in a surgery room. From this combination of work with the infirm, ill, and the latest medical technology and procedures among highly-skilled professionals, Tisdale learned that "being sick is the strangest of states." This is not the lesson nearly all other health-care workers come away with. For them, sick persons are like something that has to be "fixed." They're focused on the practical, physical matter of treating a malady. Unlike this author, they're not focused consciously on the nature of pain and what the patient is experiencing. The pragmatic, results-oriented medical profession is focused on the effects of treatment. Tisdale brings into the picture of health care and seriously-ill patients all of what the medical profession in its amnesia, as she called it, overlooks. Simply in describing what she observes, Tisdale leads those in the medical profession as well as other interested readers to see what they normally overlook, what they normally do not see in the business and pressures of their work. She describes the beginning of a hip-replacement operation, the surgeon "takes the scalpel and cuts -- the top of the hip to a third of the way down the thigh -- and cuts again through the globular yellow fat, and deeper. The resident follows with a cautery, holding tiny spraying blood vessels and burning them shut with an electric current. One small, throbbing arteriole escapes, and his glasses and cheek are splattered." One learns more about what is actually going on in an operation from this and following passages than from seeing one of those glimpses of operations commonly shown on TV. The author explains the illness of meningitis, "The brain becomes swollen with blood and tissue fluid, its entire surface layered with pus . . . The pressure in the skull increases until the winding convolutions of the brain are flattened out . . . The spreading infection and pressure from the growing turbulent ocean sitting on top of the brain cause permanent weakness and paralysis, blindness, deafness . . . ." This dramatic depiction of meningitis brings together medical facts, symptoms, and effects on the patient. Tisdale does this repeatedly to present illness and the persons whose lives revolve around it from patients and relatives to doctors and nurses in a light readers could never imagine, even those who are immersed in this world. Tisdale's main point is that the miracles of modern medicine do not unquestionably end the miseries of illness, or even unquestionably alleviate them. As much as they bring some relief to ill individuals and sometimes cure illness, in many cases they bring on other kinds of pains and sorrows. Tisdale reminds readers that the mystery of illness does, and always will, elude the miracle of medical technology, drugs, and practices. Part of the mystery of the paradoxes of treatment and the elusiveness of restored health for ill persons she focuses on is "simply the mystery of illness. Erosion, obviously, is natural. Our bodies are essentially entropic." This is what many persons, both among the public and medical professionals, tend to forget. "The Sorcerer's Apprentice" serves as a reminder that the faith and hope placed in modern medicine need to be balanced with an awareness of the mystery of illness which will always be a part of human life. ********* 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. 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