/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/150514.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, May 14, 2015, Vol. 16, No. 94 Headlines F R A N C E CMA CGM: Moody's Raises Corp. Family Rating to B1, Outlook Stable G E R M A N Y PROKON REGENERATIVE: EnBW Named Preferred Bidder for Assets TAURUS CMBS 2006-3: S&P Lowers Ratings on 2 Note Classes to Dsf G R E E C E GREECE: Needs to Raise EUR3 Billion Through Fiscal Measures I R E L A N D WILLOW NO.2: Moody's Cuts Rating on Series 39 Repack Notes to B3 N E T H E R L A N D S ZOO ABS II: Moody's Raises EUR9.25MM Class C Notes to Caa1 * NETHERLANDS: Bankruptcies Down to 446 in April 2015 R U S S I A ARTEKS INSURANCE: Put Under Provisional Administration CONSTRUCTION-COMMERCIAL BANK: Bank of Russia Revokes License PLATO-BANK LLC: Bank of Russia Revokes Banking License PLAYA RESORTS: Moody's Rates US$50MM Add-on Notes Caa1 TRUST CAPITAL: Bank of Russia Revokes Banking License S L O V E N I A NOVA LJUBLJANSKA: S&P Affirms BB-/B Counterparty Credit Ratings S P A I N INSTITUT CATALA: S&P Affirms Then Withdraws 'BB/B' ICRs OBRASCON HUARTE: Moody's Reviews B1 CFR for Downgrade T U R K E Y * TURKEY: Moody's Says Lira Depreciation Affects Domestic Banks U K R A I N E UKRAINE: Balks at Approach of Creditors' Committee in Debt Talks UKRZALIZNYTSIA: Declares Technical Default on Debt Obligations U N I T E D K I N G D O M AFREN PLC: S&P Cuts Issue Rating on 2019 Secured Bonds to 'D' BCA OSPREY: S&P Puts 'B' Corp. Credit Rating on CreditWatch Pos. DTZ UK GUARANTOR: Moody's Affirms B2 CFR; Outlook Negative KETTERING TOWN FC: Confirms Final Payments; To Exit CVA PRINTWELLS: To be Liquidated After Owner Established New Business PUDSEY STEEL: Almost Exited CVA Prior to Administration ********* =========== F R A N C E =========== CMA CGM: Moody's Raises Corp. Family Rating to B1, Outlook Stable ----------------------------------------------------------------- Moody's Investors Service upgraded to B1 from B2 the corporate family rating of French container shipping company CMA CGM S.A. At the same time, Moody's has upgraded to B1-PD from B2-PD its probability of default rating (PDR) and to B3 from Caa1 its senior unsecured rating. The outlook on all the ratings is stable. "Our decision to upgrade CMA CGM's ratings reflects the company's continued robust operating performance and resulting improvements to its financial profile. We expect these improvements to persist in 2015 in spite of ongoing challenging market conditions in the container shipping segment," says Marie Fischer-Sabatie, a Moody's Senior Vice President and lead analyst for the issuer. "At the same time, CMA CGM has maintained adequate liquidity, sustained by a large cash cushion." The rating action reflects CMA CGM's continuing strong operating performance, which has translated into improvements in its financial profile. In particular, CMA CGM has maintained profitability levels, which are among the highest in its industry, with a core EBIT margin in 2014 at 5.8%. CMA CGM achieved these results despite market conditions remaining challenging in the container shipping segment. While freight rates have remained low and volatile during 2014, in particular on the East-West routes, CMA CGM pursued its cost- containment efforts and further reduced its operating costs per twenty-foot equivalent unit (TEU) by around 4%. While leverage (gross debt/EBITDA, including Moody's adjustments and overdrafts) remains high for the B1 category, at 6.4x at year-end 2014, Moody's positively notes the large cash balance that the company has maintained on its balance sheet ($2.2 billion, including overdrafts, as at 31 December 2014). Moody's expects that CMA CGM will maintain its strong performance during 2015, driven by sustained volume growth, the lower bunker price and the pursuit of its cost containment efforts. As a result, the company's financial profile will improve further and be more comfortably positioned in the B1 category. CMA CGM's rating continues to reflect (1) the company's leading market positions and its geographic diversification; (2) its low capital investment commitments relative to its main competitors; (3) the flexibility of its fleet (CMA CGM can redeliver to their owners around 80% of its chartered vessels within the next 12 months); (4) the company's operational efficiency; and (5) its strong asset base. The B1 rating also takes account of (1) the high cyclicality in the container shipping market; (2) the fierce competition, which limits CMA CGM's ability to fully recover increases in certain operating costs; (3) the high proportion of short-term contracts in the container shipping market, which limits visibility for revenues; and (4) CMA CGM's high leverage, with a gross adjusted debt/EBITDA ratio still above of 6x at the end of 2014 (including overdrafts). The stable outlook reflects Moody's view that, in spite of the volatile conditions in the container shipping segment, CMA CGM will maintain a top-tier operating performance and generate positive free cash flow within the next 12-18 months. These factors will enable the group to further improve its financial profile and be more comfortably positioned in the B1 category. Upward rating pressure could materialize if Moody's have evidence that CMA CGM can sustain its solid operating performance and report the following metrics over an extended period of time: (1) leverage below 5x; and (2) funds from operations (FFO) interest expense coverage above 4x (ratios include Moody's adjustments). At the same time, the company should maintain an adequate liquidity profile. Downward rating pressure could develop if challenging market conditions lead to (1) financial leverage above 6x for an extended period of time; (2) FFO interest expense coverage below 3x (ratios include Moody's adjustments); or (3) a material weakening of the company's liquidity profile. The principal methodology used in these ratings was Global Shipping Industry published in February 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non- Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Marseilles, France, CMA CGM S.A. is the third- largest container shipping company in the world measured in TEU. CMA CGM generated revenues of US$16.7 billion in 2014. ============= G E R M A N Y ============= PROKON REGENERATIVE: EnBW Named Preferred Bidder for Assets ----------------------------------------------------------- Andreas Cremer and Christoph Steitz at Reuters report that EnBW has been named preferred bidder for Prokon Regenerative Energien GmbH. According to Reuters, EnBW has made a binding offer to acquire all assets of the insolvent company for a "mid-level three-digit million-euro" amount. One person familiar with the matter told Reuters on May 11 the all-cash offer would value Prokon, which filed for insolvency in January last year, at more than EUR500 million (US$561.6 million). A creditor panel at Prokon will probably take a final decision on EnBW's bid in early July, Reuters discloses. Prokon filed for insolvency last year after consumer groups accused it of attracting investors with the prospects of making annual returns on their investments of at least 6 percent without giving sufficient warning of the risks, Reuters recounts. Prokon Regenerative Energien GmbH operates 529 megawatts of wind farms, with 461 megawatts in Germany, according to Capital Stage. TAURUS CMBS 2006-3: S&P Lowers Ratings on 2 Note Classes to Dsf --------------------------------------------------------------- Standard & Poor's Ratings Services reinstated its 'CCC- (sf)' credit ratings on Taurus CMBS (Pan-Europe) 2006-3 PLC's class A and B notes to subsequently lower them to 'D (sf)'. At the same time, S&P has affirmed its 'D (sf)' ratings on the class C and D notes. S&P has subsequently withdrawn, effective in 30 days' time, its ratings on these four classes of notes. The rating actions reflect the issuer's failure to repay the remaining note principal balance on May 5, 2015, the legal final maturity date. Taurus CMBS (Pan-Europe) 2006-3 is a 2006-vintage commercial mortgage-backed securities (CMBS) transaction, currently backed by one loan secured on a German commercial real estate asset. The underlying pool initially had seven loans, which were secured on European commercial real estate assets. THE LOAN The Triumph loan, with an outstanding balance of EUR47.8 million as of February 2015, represents the senior portion of a whole loan. The loan is secured on a multitenant single asset located in Markisches Viertel (northern Berlin), which is primarily used for retail purposes. The loan entered special servicing because the borrower failed to repay the whole loan balance at maturity on Jan. 30, 2013. The special servicer agreed to temporary standstills with the borrower to organize the sale of the property or a purchase of the loan. The special servicer, after marketing the property for sale, granted an exclusivity period with a new preferred bidder. S&P understands that negotiations regarding a sale of the property or a purchase of the loan are continuing. As a result, the loan did not repay on May 5, 2015, the legal final maturity date. RATING ACTIONS S&P's ratings in Taurus CMBS (Pan-Europe) 2006-3 address timely payment of interest and repayment of principal no later than the legal final maturity date on May 5, 2015. The issuer did not repay the notes on May 5, 2015. On May 5, 2015, S&P withdrew its 'CCC- (sf)' ratings on Taurus CMBS (Pan-Europe) 2006-3 's class A and B notes in error. S&P has therefore reinstated its 'CCC- (sf)' ratings on the class A and B notes to subsequently lower them to 'D (sf)' in line with its criteria (see "Methodology: Timeliness Of Payments: Grace Periods, Guarantees, And Use Of 'D' And 'SD' Ratings," published on Oct. 24, 2013). This is due to the issuer's failure to repay the notes on May 5, 2015. At the same time, S&P has affirmed its 'D (sf)' ratings on the class C and D notes in line with our criteria (see "Methodology: Timeliness Of Payments: Grace Periods, Guarantees, And Use Of 'D' And 'SD' Ratings," published on Oct. 24, 2013) "We have subsequently withdrawn our ratings on these four classes of notes. The ratings will remain at 'D (sf)' for a period of 30 days before the withdrawal becomes effective," said S&P. RATINGS LIST Taurus CMBS (Pan-Europe) 2006-3 PLC CHF.1 Million And EUR447.75 Million Commercial Mortgage-Backed Floating-Rate Notes Class Rating To From Ratings Reinstated A CCC- (sf) NR B CCC- (sf) NR Ratings Lowered And Withdrawn[1] A D (sf) CCC- (sf) NR D (sf) B D (sf) CCC- (sf) NR D (sf) Ratings Affirmed And Withdrawn[1] C D (sf) NR D (sf) D D (sf) NR D (sf) [1] The withdrawals become effective in 30 days' time. NR -- Not rated. =========== G R E E C E =========== GREECE: Needs to Raise EUR3 Billion Through Fiscal Measures ----------------------------------------------------------- Bloomberg News reports that Greece's anti-austerity government needs to raise at least EUR3 billion (US$3.4 billion) through additional fiscal measures by the end of this year to meet the minimum budget targets acceptable by creditors. According to Bloomberg, the reductions would bring the primary budget surplus in 2015 to just over 1 percent of gross domestic product, a target Greek Interior Minister Nikos Voutsis said is acceptable. The official, as cited by Bloomberg, said without any change in fiscal policy, Greece would end 2015 with a budget deficit of about 0.5% of GDP. The so-called primary budget balance doesn't include interest payments, Bloomberg notes. Greece, whose debt-to-GDP ratio is the highest in Europe, is locked in talks with euro region governments and the International Monetary Fund over the terms attached to its 240 billion-euro bailout, Bloomberg relays. Uncertainty over whether it will do enough to receive more money has triggered a liquidity squeeze, prompting the European Commission to revise down deficit and debt forecasts last week, Bloomberg discloses. According to Bloomberg, the commission now predicts the country's debt will be 174% of GDP next year, 15 percentage points above the level projected in February. And that assumes Prime Minister Alexis Tsipras reaches a deal to get previously agreed aid flowing by June, Bloomberg states. The commission predicts that as defined in the bailout program there will be almost no surplus, Bloomberg says. ============= I R E L A N D ============= WILLOW NO.2: Moody's Cuts Rating on Series 39 Repack Notes to B3 ---------------------------------------------------------------- Moody's Investors Service downgraded the rating of the following notes issued by Willow No.2 (Ireland) Plc: -- Series 39 EUR7,100,000 Secured Limited Recourse Notes due 2039, Downgraded to B3 (sf); previously on Apr 29, 2015 Ba3 (sf) Placed Under Review for Possible Downgrade Moody's explained that the rating action taken is the result of a rating action on Grifonas Finance No. 1 Plc Class A Notes, which were downgraded on May 4, 2015. Willow No.2 (Ireland) Plc Series 39 represents a repackaging of Grifonas Finance No. 1 Plc Class A Notes, a Greek residential mortgage-backed security (the "Collateral"). All interest and principal received on the underlying asset are passed net of on- going costs to the Series 39 notes. This rating is essentially a pass-through of the rating of the Collateral. The principal methodology used in this rating was "Moody's Approach to Rating Repackaged Securities" published in December 2014. This rating is essentially a pass-through of the rating of the underlying securities. Holders of the notes will be fully exposed to the credit risk of Grifonas Finance No. 1 Plc Class A Notes. A downgrade or an upgrade of the Grifonas Finance No. 1 Plc Class A Notes will trigger an equal downgrade or upgrade on the Notes. Moody's notes that this transaction is subject to a high level of macroeconomic uncertainty, which could negatively impact the ratings of the notes, as evidenced by 1) uncertainties of credit conditions in the general economy especially as the transaction is exposed to collateral domiciled in Greece and 2) more specifically, any uncertainty associated with the underlying credits in the transaction could have a direct impact on the repackaged transaction. ===================== N E T H E R L A N D S ===================== ZOO ABS II: Moody's Raises EUR9.25MM Class C Notes to Caa1 ---------------------------------------------------------- Moody's Investors Service upgraded ratings of the following classes of notes issued by Zoo ABS II B.V.: -- EUR167 million (Current outstanding balance: EUR76.19M) Class A-1 Senior Secured Floating Rate Notes due 2096, Upgraded to Aa2 (sf); previously on Feb 26, 2013 Affirmed A1 (sf) -- EUR18.75 million Class A-2 Senior Secured Floating Rate Notes due 2096, Upgraded to A1 (sf); previously on Feb 26, 2013 Downgraded to Ba1 (sf) -- EUR10 million Class B Senior Secured Floating Rate Notes due 2096, Upgraded to Ba1 (sf); previously on Feb 26, 2013 Downgraded to Caa2 (sf) -- EUR9.25 million Class C Deferrable Interest Secured Floating Rate Notes due 2096, Upgraded to Caa1 (sf); previously on Feb 26, 2013 Downgraded to Caa3 (sf) -- EUR5.7 million Class P Combination Notes due 2096, Upgraded to A3 (sf); previously on Feb 26, 2013 Affirmed Ba1 (sf) -- EUR7 million Class R Combination Notes due 2096, Upgraded to A1 (sf); previously on Feb 26, 2013 Downgraded to Ba1 (sf) Moody's also affirmed the ratings on the following notes issued by Zoo ABS II B.V.: -- EUR5.5 million (Current outstanding balance: EUR 0.357M) Class X Senior Secured Floating Rate Notes due 2015, Affirmed Aaa (sf); previously on Feb 26, 2013 Affirmed Aaa (sf) -- EUR9 million Class D Deferrable Interest Secured Floating Rate Notes due 2096, Affirmed Caa3 (sf); previously on Feb 26, 2013 Affirmed Caa3 (sf) -- EUR4.25 million (Current outstanding balance: EUR 6.13M) Class E Deferrable Interest Secured Floating Rate Notes due 2096, Affirmed Ca (sf); previously on Feb 26, 2013 Downgraded to Ca (sf) -- EUR6 million Class Q Combination Notes due 2096, Affirmed Ba3 (sf); previously on Feb 26, 2013 Affirmed Ba3 (sf) Zoo ABS II B.V. is a managed cash-flow collateralized debt obligation backed primarily by a portfolio of Euro dominated Structured Finance securities. At present, the portfolio is composed mainly of Prime RMBS (67%), CLO (17%), ABS consumer/auto (8%), other CDOs (6%) and CMBS (2%). The rating actions on the notes are a result of the material improvement in the credit quality of the collateral as well as the deleveraging of the Class A-1 notes. Since July 2014, 55% of the portfolio aggregate amount was upgraded by an average of 3 notches. Additionally, over the same period, the amount of assets rated within the Caa range by Moody's has reduced to EUR20.19M from EUR 32.3M while defaulted assets have remained stable at EUR15.9M. Class A-1 have repaid EUR12.03 million or 7.2% of the tranche original balance on the March 2015 payment date. The amortization of the Classes A-1 has also improved the overcollateralization ("OC") ratios across the capital structure. As per the March 2015 trustee report, the Class A/B, Class C, Class D and Class E overcollateralization ratios are reported at 118.40%, 108.81%, 100.86% and 96.07% respectively, compared to 112.45%, 104.47%, 97.72% and 93.78% as per the June 2014 trustee report. Moody's notes that the Class D and E OC tests fail to pass their triggers consequently the interest is being diverted to redeem Class A-1 Notes. The principal methodology used in this rating was "Moody's Approach to Rating SF CDOs" published in March 2014. In addition to the base-case analysis, Moody's conducted sensitivity analyses on the key parameters for the rated notes: Amounts of defaulted assets - Moody's considered a model run where 2 largest Caa assets in the portfolio were assumed to be defaulted. The model outputs for these runs are within one notch from the ratings. This transaction is subject to a high level of macroeconomic uncertainty, which could negatively affect the ratings on the notes, in light of 1) uncertainty about credit conditions in the general economy 2) divergence in the legal interpretation of CDO documentation by different transactional parties due to embedded ambiguities. - Portfolio amortization: The main source of uncertainty in this transaction is the pace of amortization of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high prepayment levels or collateral sales by the collateral manager. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. - Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's overcollateralization levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. * NETHERLANDS: Bankruptcies Down to 446 in April 2015 ----------------------------------------------------- Statistics Netherlands reports that 446 businesses and institutions (excluding one-man businesses) were declared bankrupt in April this year, i.e. 198 less than in the preceding month. The decrease is largely due to the fact that April had 4 court session days, while March had 5, Statistics Netherlands says. In April, the number of bankruptcies is at its lowest level since May 2011, Statistics Netherlands notes. According to Statistics Netherlands, most bankruptcies were filed in the sectors trade and financial services, 105 and 81 respectively. The number of bankruptcies in financial services decreased by 25, while the number of bankruptcies in trade remained fairly stable, Statistics Netherlands discloses. The sectors trade and financial services include the highest number of businesses, Statistics Netherlands states. Construction has one of the highest bankruptcy rates, with 52 bankruptcies in April, that is 35 less than in March, according to Statistics Netherlands. The sector specialized business services (including consultancy and research) saw an even more substantial (38 bankruptcies) decrease, Statistics Netherlands relays. =========== R U S S I A =========== ARTEKS INSURANCE: Put Under Provisional Administration ------------------------------------------------------ The Bank of Russia took a decision to appoint a provisional administration to Insurance Company Arteks. The decision to appoint a provisional administration was taken due to the suspension of the Company's insurance license (Bank of Russia Order No. OD-1033, dated May 12, 2015). The powers of the executive bodies of the Company are suspended. Victoria Morozova, member of the non-profit partnership Self- Regulatory Interregional Public Organisation Association of Receivers, has been appointed as a head of the provisional administration. CONSTRUCTION-COMMERCIAL BANK: Bank of Russia Revokes License ------------------------------------------------------------ By its Order No. OD-1041, dated May 13, 2015, the Bank of Russia revoked the banking license from the St. Petersburg-based credit institution Construction-Commercial Bank, closed joint-stock company (Registration No. 3050) from May 13, 2015. The Bank of Russia took such an extreme measure -- revocation of the banking license -- due to the credit institution's repeated violations over the past year of the requirements stipulated by Article 7 (excluding Clause 3 of Article 7) of the Federal Law "On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism". CJSC Construction-Commercial Bank failed to comply with the requirements of legislation on anti-money laundering and combating the financing of terrorism in respect of timely submitting to the authorized body data on operations subject to mandatory control. Besides, the credit institution was an intermediary in its customers' large-value dubious payable- through operations. By its Order No. OD-1042, dated May 13, 2015, the Bank of Russia has appointed a provisional administration to CJSC Construction- Commercial Bank for the period until the appointment of a receiver pursuant to the Federal Law "On the Insolvency (Bankruptcy)" or a liquidator under Article 23.1 of the Federal Law "On Banks and Banking Activities". In accordance with federal laws, the powers of the credit institution's executive bodies are suspended. CJSC Construction-Commercial Bank is a member of the deposit insurance system. The revocation of the banking license is an insured event as stipulated by Federal Law No. 177-FZ "On the Insurance of Household Deposits with Russian Banks" in respect of the bank's retail deposit obligations, as defined by law. According to its financial statements, as of April 1, 2015, CJSC Construction-Commercial Bank was ranked 646th by assets in the Russian banking system. PLATO-BANK LLC: Bank of Russia Revokes Banking License ------------------------------------------------------ By its Order No. OD-1039, dated May 13, 2015, the Bank of Russia revoked the banking license from the Yekaterinburg-based credit institution Plato-bank, limited liability company, or Plato-bank LLC (registration No. 2071, the city of Yekaterinburg), from May 13, 2015. The Bank of Russia took such an extreme measure -- revocation of the banking license -- because of the credit institution's failure to comply with the federal banking laws and Bank of Russia regulations, application of measures envisaged by the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)", and also taking into account the bank's failure to reach as of January 1, 2015 the minimal amount of own funds (capital) set by Part 7 of Article 112 of the Federal Law "On Banks and Banking Activity" and to apply to the Bank of Russia to change its status to a non-bank credit institution. While fulfilling a requirement of the supervisory authority to present authentic financial statements to reflect a real financial standing of the credit institution the Plato-bank LLC failed as of January 1, 2015 to reach the minimal amount of its own funds (capital) set by Part 7 of Article 112 of the Federal Law "On Banks and Banking Activity" (RUR300 million). Under these circumstances and in accordance with Article 20 of the Federal Law 'On Banks and Banking Activity' the Bank of Russia fulfilled its duty to revoke a banking license from Plato-bank LLC. In accordance with Bank of Russia Order No. OD-1040, dated May 13, 2015, a provisional administration has been appointed in Plato-bank LLC for the period until the appointment of a receiver pursuant to the Federal Law "On the Insolvency (Bankruptcy)" or a liquidator under Article 23.1 of the Federal Law "On Banks and Banking Activities". In accordance with federal laws, the powers of the credit institution's executive bodies are suspended. Plato-bank LLC is a participant of the deposit insurance system. The revocation of a banking license is an insured event envisaged by Federal Law No. 177-FZ "On Insurance of Household Deposits with Russian Banks" regarding the bank's obligations on deposits of households determined in accordance with legislation. According to the financial statements, as of April 1, 2015, Plato-bank LLC ranked 593rd by assets in the Russian banking system. PLAYA RESORTS: Moody's Rates US$50MM Add-on Notes Caa1 ------------------------------------------------------ Moody's Investors Service assigned a Caa1 rating to Playa Resorts Holding B.V.'s up to US$50 million proposed add-on issuance to its senior unsecured notes due 2020. The total outstanding amount for the 2020 notes will increase to USD 425 million. The company plans to use the proceeds from the add-on to repay existing indebtedness drawn under its revolving credit facility and general corporate purposes. The add-on notes will have identical terms as Playa's initial US$300 million global notes issued on July 2013 and the first US$75 million add-on in February of 2014. All of other ratings on Playa remain unchanged. The rating outlook is stable. "Playa's ratings remain unchanged as proceeds from the add-on will be used to repay existing indebtedness and, therefore, will be neutral to its credit metrics." said Sandra Beltran, an Analyst at Moody's. Playa's ratings continue to be supported by Moody's expectation of a rapid deleverage starting in 2016, once the company is fully operational" added Ms. Beltran. The ratings also reflect the good quality of the properties in Playa's portfolio, the company's experienced senior management team, and Hyatt's participation as a shareholder. The access to Hyatt's widely recognized brand name, distribution channels, and loyalty program is a positive for Playa's positioning strategy and growth given Hyatt's track record in the lodging industry. The rating also reflects Playa's adequate liquidity profile with no major near term debt maturities pro-forma for the proposed financing. On the other hand, the ratings reflect the company's small operating scale relative to global industry peers and its low geographic and segment diversification which makes it vulnerable to economic cycles. The ratings also incorporate Playa's high execution risk coming from the brand conversion and repositioning plan of most of its hotels combined with its high capex requirement that should result in negative free cash flow generation. The company's high leverage, operation in a highly cyclical industry with intense competition, and no track record in the proposed business configuration could affect Playa's ability to achieve its growth plan and improve its margins and credit metrics. The stable rating outlook reflects Moody's expectation that Playa will be able to achieve its projected growth plan while improving its operating and credit metrics. The outlook also reflects Moody's expectation that the company will maintain adequate liquidity. Higher ratings would require that the company successfully executes its brand conversion and repositioning plan such that its operating margin increases above 13% and its credit metrics improve with adjusted debt/EBITDA approaching to 6 times and EBIT/interest expense above 1.5 times on a sustainable basis. The ratings could be downgraded if the company's projected growth plan is hampered, for example, by a weak macroeconomic environment or further delays in its conversion plan, such that its profitability or credit metrics deteriorate with operating margin declining below 10% or leverage (adj. debt/EBITDA) remaining above 6.5 times in 2015. The rating of the senior unsecured notes is one notch below the CFR reflecting its effective subordination to the US$350 million term loan. The rating of the secured term loan is one notch above the Corporate Family Rating (CFR) reflecting its collateral coverage and lower expected loss relative to the unsecured debt. Based in Amsterdam, Playa Resorts Holding, B.V. is a wholly owned subsidiary of Playa Hotels & Resorts, B.V. a hotel owner and operator that through a leveraged finance transaction in 2013 acquired some hotels in Mexico and the Caribbean. Since then, the company owns and operates 13 resorts and 5,982 (6,151 after renovations) rooms located in Mexico, Dominican Republic and Jamaica. Playa main shareholders include Farallon Capital Management ("Farallon"; unrated), an investment management firm, and Hyatt Hotels Corporation (Baa2, stable), which together own about 70% equity interest in the company. For the LTM ended in 2014, the company estimates revenues at around USD359 million and EBITDA of US$ 91 million. The principal methodology used in this rating was Global Lodging & Cruise Industry Rating Methodology published in December 2010. TRUST CAPITAL: Bank of Russia Revokes Banking License ----------------------------------------------------- By its Order No. OD-1043, dated May 13, 2015, the Bank of Russia revoked the banking license from the Moscow-based credit institution Commercial Bank Trust Capital Bank, joint-stock company -- CB Trust Capital Bank JSC (Registration No. 2741) from May 13, 2015. The Bank of Russia took such an extreme measure -- revocation of the banking license -- due to the credit institution's failure to comply with federal banking laws and Bank of Russia regulations, due to repeated violations over the past year of the requirements stipulated by Article 7 (excluding Clause 3 of Article 7) of the Federal Law "On Countering the Legalisation (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism", due to Bank of Russia regulations approved in pursuance of the mentioned Federal Law, and also due to measures applied under the Federal Law 'On the Central Bank of the Russian Federation (Bank of Russia).' CB Trust Capital Bank JSC implemented high-risk lending policy and failed to create loan loss provisions commensurate with risks taken. Besides, CB Trust Capital Bank JSC failed to comply with the requirements of legislation and Bank of Russia regulations on anti-money laundering and combating the financing of terrorism in respect of timely submitting to the authorized body data on operations subject to mandatory control, and also requirements on updating identification data on customers and their representatives. Besides, the credit institution was involved in conducting large-value dubious transactions. By its Order No. OD-1044, dated May 13, 2015, the Bank of Russia has appointed a provisional administration to CB Trust Capital Bank JSC for the period until the appointment of a receiver pursuant to the Federal Law "On the Insolvency (Bankruptcy)' or a liquidator under Article 23.1 of the Federal Law 'On Banks and Banking Activities". In accordance with federal laws, the powers of the credit institution's executive bodies are suspended. According to its financial statements, as of April 1, 2015, CB Trust Capital Bank JSC was ranked 647th by assets in the Russian banking system. =============== S L O V E N I A =============== NOVA LJUBLJANSKA: S&P Affirms BB-/B Counterparty Credit Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB-' long-term and 'B' short-term counterparty credit ratings on Slovenia-based Nova Ljubljanska Banka D.D. (NLB). The outlook remains negative. The affirmation follows S&P's revision of NLB's risk position to moderate from weak. Credit risk is improving following a restructuring, supported by NLB's currently conservative lending policy. Nonperforming loans (NPLs) peaked in 2013 and will gradually reduce as they are worked out through restructuring and with asset sales. Despite the large stock of NPLs, S&P expects credit costs to remain adequate, after peaking in 2013. The improving credit risk led S&P to revise the bank's stand- alone credit profile (SACP) upward to 'b+' from 'b'. The bank continues to wrestle with its high level of legacy problem loans, especially in the highly leveraged corporate sector. S&P views positively the state-supported restructuring progress NLB has made, with the transfer of a large portion of problem loans (mainly irrecoverable credits amounting to EUR2.2 billion) to a government-funded workout unit in December 2013. However, this has only partly alleviated risks posed by the high amounts of problem loans, in S&P's view. Problem loans as reported by the bank have reduced from a peak of 28.2% in 2012, but still stand at 25.7% as of Dec. 31, 2014. Asset quality problems at NLB were accentuated due to directed lending, both by the state authorities and the bank's former management, as well as the prevalence of asset-based lending. The bank's reserve coverage for problem loans was still on the low side at year-end 2014, in our view, at 61.4%, though coverage has risen from 51.5% at year-end 2012. S&P's view of the low reserve coverage is emphasized by the depressed values and shallow markets for collateral due to the depressed property market. Legacy problem loans take time to resolve, largely through workout and sales. Positively, this is a stock issue and not a flow issue, with credit losses materially reduced following the bank's restructuring. Generating new healthy loans is difficult, given the economic slowdown and high leverage in the corporate sector. NLB plans to refocus its lending toward small and midsize enterprises and retail and away from large corporates, while keeping total exposures fairly stable. NLB did not suffer from exposure to foreign currency-denominated domestic mortgage portfolios, unlike some regional peers. Furthermore, the bank plans to expand its risk assets only modestly over the medium term, with the expected reversal of the deleveraging of loans only starting in late 2015. S&P considers that NLB has "high" systemic importance to Slovenia, which it views as "supportive" toward its banking sector. NLB's systemic importance, its 'b+' SACP, and the 'A-' long-term rating on Slovenia together mean that S&P factors two notches of uplift for potential extraordinary government support into the rating on NLB. This could result in a long-term rating of 'BB', but S&P now applies a one-notch negative adjustment to the rating to reflect its view that NLB operates in an environment that is transitioning toward less predictable systemic support for banks. "If, as we expect, we reduce or remove the notches of uplift for support by year-end 2015, we would review this negative adjustment at the same time," said S&P. The negative outlook on NLB indicates the possibility of a downgrade if S&P considers that potential extraordinary government support for Slovenian banks will likely decrease as resolution frameworks are put into place. S&P could therefore lower the long-term rating on NLB by one notch if S&P removed the uplift for potential extraordinary government support currently incorporated in the rating. This would most likely occur shortly before the January 2016 introduction of the EU's Bank Recovery and Resolution Directive, which would allow the bail-in of senior unsecured liabilities. "The negative outlook also reflects the possibility that our expectations for NLB's restructuring progress in Slovenia's fragile economic and operating environment might not materialize. For example, we could lower the ratings on the bank if new NPLs accelerate in 2015, increasing the stock of NPLs. Also, if NLB's capitalization were to deteriorate substantially, causing its risk-adjusted capital ratio before diversification to fall below 5%, this could trigger a downgrade," said S&P. "We could revise the outlook to stable if we considered that potential extraordinary government support for NLB's senior unsecured creditors will remain in practice, despite the introduction of bail-in powers and international efforts to increase banks' resolvability. Similar action could also follow if we believed that other rating factors -- such as a stronger SACP or a large buffer of subordinated instruments -- fully offset increased bail-in risks. ========= S P A I N ========= INSTITUT CATALA: S&P Affirms Then Withdraws 'BB/B' ICRs ------------------------------------------------------- On May 12, 2015, Standard & Poor's Ratings Services affirmed its 'BB/B' long- and short-term issuer credit ratings on Institut Catala de Finances (ICF), the financial agency of the Autonomous Community of Catalonia in Spain. S&P subsequently withdrew the ratings at the issuer's request. The outlook was stable at the time of the withdrawal. RATIONALE S&P said, "The ratings on ICF reflect our opinion that there is an almost certain likelihood that ICF's owner, the Autonomous Community of Catalonia (BB/Stable/B), would provide timely and sufficient extraordinary support to ICF in the event of financial distress. The ratings also incorporate our assessment of ICF's stand-alone credit profile at 'bb-'." At the time of the withdrawal, the outlook on ICF was stable, reflecting that on Catalonia. OBRASCON HUARTE: Moody's Reviews B1 CFR for Downgrade ----------------------------------------------------- Moody's Investors Service placed on review for downgrade the B1 corporate family rating and B1-PD probability of default rating of Obrascon Huarte Lain S.A. (OHL). In addition, Moody's has placed on review for downgrade the B1 ratings on the group's senior unsecured debt instruments. Moody's has placed OHL's B1 ratings on review for downgrade following the sharp share price decline of OHL Mexico since last Wednesday, reducing the headroom under the loan-to-value (LTV) covenant of a EUR300 million margin loan, increasing the probability of a margin call. In this respect, Moody's notes that OHL has some flexibility to pledge additional shares in OHL Mexico before cash margin calls would be triggered. In addition to this loan, there is very limited headroom under the LTV covenant of the margin loan backed by OHL's shares in Abertis. The company opened an internal investigation into allegations of illegal practices at its Mexican unit, and appointed an external consultant to examine its performance in developing the Viaducto Bicentenario concession contract in Mexico. On May 12, 2015, the company initiated a series of further investigations related to its Mexican operations and accepted the voluntary resignation of one of its Mexican officers. The very limited headroom under the LTV covenant is adding pressure to OHL's already weakly positioned B1 rating, as a result of high leverage for the rating category, and limited visibility as to when OHL's cash flow generation will start to improve. The review process will focus on all key drivers for OHL's credit rating, as mentioned in the press release published on November 19, 2015. These include OHL's capacity to reduce leverage from current very high levels. OHL's gross recourse debt/recourse EBITDA (recourse EBITDA defined as consolidated EBITDA minus EBITDA from Concessions) as of year ended December 2014 stood at 7.0x, well above Moody's guidance for the B1 rating of between 4.5x and 5.5x. Moody's expects that recourse leverage will remain broadly unchanged in 2015, leaving credit metrics very weakly positioned for the B1 category. In addition, Moody's will review OHL's capacity to generate positive free cash flow generation on a consolidated basis. Finally, Moody's rating review process will assess the short-term impact on OHL's liquidity profile of potential margin calls on their margin loans backed by shares in OHL Mexico and Abertis. The rating review process will also focus on the long-term implications of the illegal practices allegations on the prospects for OHL's business in Mexico. OHL Mexico's management has stated that the development of their businesses strictly complies to law, contract terms, and corporate best practice, and has denied the existence of any irregular action within their relations with the State of Mexico. Furthermore, the company has announced a series of measures to reinforce the company's transparency and confidence to the general public. In Moody's view, it will take a long time to determine whether OHL is liable for any potential wrongdoing. However, Moody's believes that this negative news flow is damaging to OHL's reputation in Mexico, and will possibly make its business in the country more challenging, as its existing concessions contracts come under increased scrutiny and it might be more difficult for OHL to secure future construction/concessions contracts. Moody's notes that Mexico is OHL's largest market, generating 77% of consolidated EBITDA. OHL's B1 CFR takes into account (1) OHL's high leverage, both on a recourse and consolidated basis; (2) its sustained negative free cash flow generation; (3) the weak performance of the construction business, despite initial signs that activity in Spain has bottomed out; (4) the group's complex debt structure, with margin loans used extensively at intermediate holding companies; (5) its liquidity profile, which relies on continued access to short-term credit lines; and (6) the weakened credit profile of Grupo Villar Mir, OHL's controlling shareholder. However, these negatives are partially offset by OHL's (1) position as one of Spain's leading construction and concessions groups; (2) business diversification (construction and concessions); (3) exposure to multiple geographies, with a growing portfolio of international construction projects; (4) large order backlog; and (5) equity stakes in Abertis and OHL Mexico. Prior to the rating review process, Moody's said that the outlook on the ratings could be changed to stable if OHL's credit metrics improve such that gross recourse debt/recourse EBITDA stays on a sustained basis in the 4.5x to 5.5x range. A change in outlook to stable would also require an expectation of positive free cash flow generation and a solid liquidity profile. Prior to the rating review process Moody's said that negative pressure on the B1 rating could develop if OHL's credit metrics do not improve such that the company's gross recourse debt/recourse EBITDA remains above 5.5x and fails to be on a path to return to positive free cash flow generation on a consolidated basis. The rating could also come under downward pressure if the LTV ratio of OHL's equity stakes in Abertis and/or OHL Mexico approaches 50% and margin calls are triggered, unless the company materially strengthens its liquidity profile to mitigate this concern. The principal methodology used in these ratings was Construction Industry published in November 2014. Headquartered in Madrid, OHL is one of Spain's leading construction/concessions groups. The company owns a 56.14% equity stake in OHL Mexico, a large concessions operator in Mexico, and a 13.93% equity stake in Spanish infrastructure operator Abertis. In 2014, OHL reported sales of EUR3.7 billion and EBITDA of EUR1.1 billion. =========== T U R K E Y =========== * TURKEY: Moody's Says Lira Depreciation Affects Domestic Banks --------------------------------------------------------------- The Turkish Lira's steep decline in recent months will likely imply worsening asset quality and growth in risk-weighted assets that will become pressure points for Turkish financial institutions, says Moody's Investors Service. "Lira depreciation will affect Turkish banks' asset quality. About 30% of system-wide loans are foreign-currency denominated, so the currency's decline in value will result in rising loan repayments on these loans, and this is likely to result in increased delinquencies. We expect that this factor will contribute to an increase in the system-wide NPL ratio to around 3.5%-4.0% during 2015, from 2.8% at year-end 2014" explains Irakli Pipia, a Moody's Vice President - Senior Analyst. Moody's report also says that the growth of RWAs will put pressure on capitalization, such that the lira equivalent risk weight of foreign-currency loans will increase relative to Core Tier 1 capital that is mostly held in lira, so the depreciation could pressure Core Tier 1 levels. According to Moody's estimates, a 5% depreciation of the lira versus the US dollar lowers Core Tier 1 capital by approximately 15 basis points (bps). Depending on the bank, the impact varies between 5-25 bps (up to 1.6% of Core Tier 1). "As a result of worsening trends and high dependence on external wholesale funding the risk premiums that Turkish issuers must pay on their external borrowing over the coming 12-18 months could increase, although some leading banks have comfortable liquidity resources to weather the pressure" says Mr. Pipia. Moody's report notes that the pressures on the banks will not be uniform in terms of refinancing needs. However, despite the uneven pressure on individual banks, the system-wide trends are expected to be negative and contribute to challenging operating environment which Moody's expects will prevail in the Turkish banking system for the rest of 2015. The funding structure of this system and its inherent vulnerabilities to volatile investor sentiment will remain a contributing factor informing the negative outlook currently assigned to the majority of Moody's bank ratings in Turkey. ============= U K R A I N E ============= UKRAINE: Balks at Approach of Creditors' Committee in Debt Talks ---------------------------------------------------------------- Roman Olearchyk and Elaine Moore at The Financial Times report that Ukraine's US$23 billion debt restructuring negotiations appeared to reach boiling point late on May 12 after the government issued a sharply worded statement that questioned the transparency, responsiveness and good faith of a creditors' committee. According to the FT, with positions hardening weeks before a planned June deadline to avoid default, the finance ministry of war-torn and recession-battered Ukraine in the statement said it was "concerned about the approach taken by the creditors' committee representing the country's external debt holders and their lack of willingness to engage in negotiations." Claiming that the creditor committee refused "despite numerous requests" to reveal its membership, the finance ministry stressed that it and debtholders needed by June "to agree on a sustainable debt level and debt service objectives meeting the targets" of an International Monetary Fund program granted earlier this year, the FT relates. The tough words come amid increasing market expectations that the restructuring talks are likely to stretch on through the summer as Ukraine continues -- in the face of creditor disapproval -- to demand a haircut, cuts to the coupon and maturity extensions to free up US$15 billion over the next four years, the FT notes. Reaching that target is part of a broader $40bn assistance program that includes a US$17.5 billion IMF loan and some US$7.5 billion in bilateral assistance, the FT states. Negotiations between international investors and the government appear to have reached deadlock, with a group of the country's largest investors declaring earlier on May 12 that they were "ready and willing to support a prudent debt restructuring with Ukraine" but had had "no substantive engagement" from the government, the FT relays. UKRZALIZNYTSIA: Declares Technical Default on Debt Obligations -------------------------------------------------------------- Xinhua News Agency reports that Ukrzaliznytsia on May 12 declared technical default on its debt obligations. Maxim Blank, acting head of Ukrzaliznytsia, said Ukrzaliznytsia was forced to declare the technical default over an "extremely difficult" situation in the country, lack of control over the railway which lies on the territory of the restive Donetsk and Lugansk regions, drop in transport volumes and corruption, Xinhua relates. Mr. Blank, as cited by Xinhua, said to avoid bankruptcy, Ukrzaliznytsia would seek restructuring of 85% of its internal and external debts worth UAH37.5 billion (around US$1.8 billion) in the aggregate. According to Xinhua, Mr. Blank said the company has already started debt-restructuring talks with its domestic lenders, adding that the negotiations on the reorganization of the Eurobond obligation of US$500 million will begin in the near future. Ukrzaliznytsia is Ukraine's state-run railway company. =========================== U N I T E D K I N G D O M =========================== AFREN PLC: S&P Cuts Issue Rating on 2019 Secured Bonds to 'D' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered to 'D' (default) from 'CC' its issue rating on Afren PLC's senior secured bonds maturing in 2019. Afren is a U.K.-headquartered oil and gas exploration and production company. "At the same time, we affirmed our 'SD' (selective default) long- term corporate credit rating on Afren, our 'D' issue rating on the senior secured bonds maturing in 2016, and our 'CC' issue rating on the bonds maturing in 2020," said S&P. "We lowered the issue rating on the bonds maturing in August 2019 because Afren failed to pay its interest obligation on time; we understand the amount outstanding on the bond is $246 million. We consider the nonpayment to be a default, under our criteria." The company utilized the 30-day grace period under its 2019 bonds for the $12.8 million interest payment, originally due April 8, 2015. Afren has not yet defaulted on its bonds maturing in 2020, which account for more than 20% of its outstanding total debt. The company recently obtained $200 million in funding from bondholders in the form of super-senior private placement notes, which it will use to fund Nigerian assets and pay existing creditors. "We also note that the nonpayment of interest on the notes due 2019 does not result in an immediate obligation to repay those notes, or to a cross-default of the notes due in 2016 and 2020, or the other debt facilities," said S&P. "The affirmation of our 'SD' rating therefore reflects our view of Afren's default on some of its debt instruments, rather than a default on all or a substantial portion of its debt. "That said, we believe that a default on Afren's 2020 bonds is very likely, given the company's announcement on April 30, 2015, that it intends to complete a wide recapitalization plan by the end of July. We note that the next interest payments on the bonds maturing in September 2020 are due on June 10." BCA OSPREY: S&P Puts 'B' Corp. Credit Rating on CreditWatch Pos. ---------------------------------------------------------------- Standard & Poor's Ratings Services said it placed on CreditWatch with positive implications its 'B' long-term corporate credit rating on BCA Osprey IV Ltd., an intermediate holding company for BCA, Europe's largest used-vehicle remarketing and buying business. At the same time, S&P has withdrawn all of our existing issue ratings on BCA Osprey IV Ltd. as these bank facilities have been fully repaid. BCA was recently acquired by Haversham Holdings PLC, listed on the London Stock Exchange, and, S&P understands, has also reduced its debt levels. S&P said, "Following the transaction, we believe that BCA group's debt levels have significantly reduced and that its credit metrics have strengthened and could be more in line with a higher corporate credit rating. This is based on information provided in the group's prospectus, and our estimates that the ratio of adjusted debt to EBITDA has materially reduced to around 4x-5x from 8x-9x and adjusted funds from operations (FFO) to debt has improved to around 13%-14% from 2%-3%. We estimate that the group's total adjusted debt has reduced to around �470 million from around �900 million. We understand from the group's prospectus that all of the group's existing debt facilities and shareholder instruments have been fully repaid and replaced with new facilities of a GBP200 million term loan and GBP100 million revolving credit facility. "We expect to resolve the CreditWatch within the next one to two months once we have confirmation of the terms of the group's new facilities, financial policy, and strategy following the transaction. Following this review, we may raise the corporate credit rating on BCA by up to two notches." DTZ UK GUARANTOR: Moody's Affirms B2 CFR; Outlook Negative ---------------------------------------------------------- Moody's Investors Service affirmed DTZ's ratings (corporate family rating at B2; first lien term loans and first-lien revolver at B1; second lien term loan at B3) and revised the outlook to negative from stable. The negative outlook reflects the potential for increased financial leverage, as well as integration risks associated with the property services firm's announced plans to merge with Cushman & Wakefield (C&W). The following ratings were affirmed with a negative outlook: -- DTZ UK Guarantor Limited - corporate family rating at B2 -- DTZ U.S. Borrower, LLC co-issuer with DTZ Aus Holdco Pty Limited - first lien term loans at B1; first lien revolver at B1; second lien term loan at B3 Moody's notes that DTZ's planned merger with Cushman & Wakefield is a large transaction that carries substantial integration risk, particularly given that DTZ is still digesting its recent acquisition of Cassidy Turley. DTZ will be challenged with meshing the two firms' corporate cultures and retention of employees who are key to driving its services-based businesses forward. Brett White, Executive Chairman of DTZ, will be CEO of the combined company that will operate under the C&W brand. Moody's further commented that this is a substantial transaction that could result in leverage increasing from already high existing levels. Moody's will be closely monitoring DTZ's plan for accessing the external capital needed to finance this merger. Despite these credit concerns, Moody's notes that DTZ and C&W's merger does offer credit positive aspects as well. DTZ is enhancing its size and scale, establishing its position as one of the leading providers of commercial real estate services across a highly fragmented industry. DTZ's annualized revenues will increase to more than $5 billion pro forma, up from about $3 billion currently. The two firms also have complementary strengths across their service platforms and geographies, positioning it for potential market share gains. DTZ's ratings could be upgraded if the company were to permanently reduce leverage as defined by Net Debt/Recurring EBITDA (including Moody's standard adjustments for pensions and operating leases), demonstrate growth in free cash flow and retained cash flow as % of debt, and grow operating margins. The ratings could be downgraded should leverage increase meaningfully from current levels or if operating margins were to decline. Alternatively, another large acquisition or integration issues associated with recent and pending acquisitions would also result in a ratings downgrade. Moody's last rating action for DTZ was on October 10, 2014, when the ratings were assigned with a stable outlook. The principal methodology used in these ratings was Business and Consumer Service Industry published in December 2014. DTZ is a global property services business that provides a full array of real estate solutions to occupiers, owners, investors, and developers worldwide. The company's primary services include facilities management, property management, leasing, capital markets, and other advisory and property services. KETTERING TOWN FC: Confirms Final Payments; To Exit CVA ------------------------------------------------------- Northamptonshire Telegraph reports that Kettering Town has confirmed that the final payments of its Company Voluntary Arrangement (CVA) have now been made. In a statement on May 5, the club revealed The Friends of the Poppies group had confirmed that a sum of GBP4,500 had been paid to solicitors Carter Clark, Northamptonshire Telegraph relates. The amount covers the final three payments of GBP1,500, meaning the total of GBP54,000 has now been paid off two months earlier than scheduled, Northamptonshire Telegraph discloses. Kettering Town FC Management Limited entered the CVA in the summer of 2012 in an attempt to stop the club from folding, Northamptonshire Telegraph recounts. A number of other financial battles have since been won, helping the club to get back on a solid footing at Latimer Park, Northamptonshire Telegraph relays. And they have now confirmed they will be looking to have the CVA discharged, Northamptonshire Telegraph discloses. Kettering Town FC Management Limited is a football club. PRINTWELLS: To be Liquidated After Owner Established New Business ----------------------------------------------------------------- Sarah Cosgrove at PrintWeek reports that Printwells, a Kent printer which was about to celebrate 25 years in business, is to be dissolved after its owner moved into the funerals business. Printwells ceased trading on April 30. The company's 28 employees were sent home on April 29, and company owners Managing Director Garry Anthony Jeffery and finance director Jacqueline Ann Jeffery engaged licensed insolvency practitioner David Thorniley, managing director of Kent firm Traverse Advisory, to advise them, the report says. Mr. Thorniley told PrintWeek that the company will be placed into voluntary liquidation on May 20. Former members of staff will be eligible for the government's statutory redundancy and pensions schemes, but will not be able to claim until the company liquidation is complete, the report relays. Mr. Thorniley said it was not possible to say how long this would take as it depended on how long it takes to realize Printwells' assets, the report notes. A creditors' meeting will be held in due course. PrintWeek understands that the company owners also own the Printwells building and the land it stands on. Garry Jeffery and Jacqueline Ann Jeffery established Henry Paul Funerals LLP on September 9, 2009, a different company from Henry Paul Funeral Directors, based in Ruislip, west London, which was founded in 1880. Mr. Thorniley is advising the company owners and has not yet been appointed as liquidator at the time of writing, the report adds. PrintsWell is a leader in the stationery industry in earth- friendly manufacturing practices. PUDSEY STEEL: Almost Exited CVA Prior to Administration ------------------------------------------------------- Laurence Kilgannon at Insider Media reports that new documents have revealed Pudsey Steel Services, which had been rocked by the downturn in the construction sector, fell into administration having almost exited a company voluntary arrangement (CVA) that had allowed it to continue trading in the teeth of the recession. Like many competitors, the business was hit by the erosion of margins while a number of bad debts arose because customers had fallen into administration, Insider Media relates. Creditors were expected to get 50p in the pound under that deal with the company making monthly contributions of GBP9,500 which for the first three to four years was "substantially complied with", Insider Media says. According to Insider Media, the repayments were in fact going so well that Pudsey Steel Services wanted to make accelerated payments after a significant rise in turnover and a final lump payment of GBP113,000 was agreed with creditors in August 2014. This payment was not forthcoming, however, prompting the supervisors of the CVA to instruct solicitors to petition for a winding-up of the company, Insider Media notes. Rob Sadler of Begbies Traynor and Andy Clay of ATC Business Recovery Services were subsequently appointed as joint administrators of Pudsey Steel Services on February 13, 2015, Insider Media relays. They traded the company for a short time in administration but when customers began cancelling their contracts Pudsey Steel Services ceased to trade, Insider Media recounts. Assets of the business are now being marketed and expected to raise enough cash to pay preferential claims totaling GBP37,000 for arrears of wages, salary and holiday pay, Insider Media discloses. Pudsey Steel Services is a Leeds-based steel fabricator. ********* 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. 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 2015. 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. 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