/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/160722.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, July 22, 2016, Vol. 17, No. 144 Headlines A R M E N I A AMERIABANK: Fitch Assigns 'B+' Rating to USD15MM Sr. Unsec. Notes I R E L A N D PROVIDENCE RESOURCES: Eliminates US$25-Mil. Debt Mountain I T A L Y ALBAZZURRA HOTEL: Oct. 26 Deadline Set for Hotel Complex Offers GAMENET GROUP: S&P Revises Outlook to Stable & Affirms 'B' ICR MONTE DEI PASCHI: Italy Mulls "Private Sector" Rescue Solution N. 12/13: Sept. 21 Deadline Set for Hotel/Res. Complex Offers L U X E M B O U R G GEO TRAVEL: S&P Revises Outlook to Stable & Affirms 'B' CCR R U S S I A MECHEL PJSC: In Debt Talks, Foreign Lenders Seek More Collateral S P A I N UFINET TELECOM: S&P Affirms 'B' CCR, Outlook Remains Stable S W E D E N STENA AB: S&P Cuts Corp. Credit Rating to 'BB-', Outlook Negative T U R K E Y TURKEY: S&P Lowers Sovereign Credit Ratings to 'BB/B' U K R A I N E KHERSON SHIPYARD: Declared Bankrupt by Kherson Court U N I T E D K I N G D O M AM WIDDOWSON: Gets New Owner After Going Into Administration EUROSURGICAL: Hospital Services Buys Business Out of Liquidation PURPLE ENERGY: In Liquidation, Cuts 29 Jobs STORM FUNDING: August 3 Proofs of Debt Submission Deadline Set VIRGIN MEDIA: Fitch Affirms 'BB-' Long-Term IDR, Outlook Stable WORLDSPREADS LTD: Sept. 6 Proof of Debt Submission Deadline Set X X X X X X X X * BOOK REVIEW: Transnational Mergers and Acquisitions ********* ============= A R M E N I A ============= AMERIABANK: Fitch Assigns 'B+' Rating to USD15MM Sr. Unsec. Notes ----------------------------------------------------------------- Fitch Ratings has assigned Ameriabank's (Ameria) USD15 mil. issue of fixed-rate senior unsecured notes a final Long-term rating of 'B+' and a Recovery Rating of 'RR4'. The bonds mature in July 2018 and have a coupon rate of 6.75% per annum. KEY RATING DRIVERS The senior debt rating of Ameria is aligned with the bank's Long-Term Issuer Default Rating (IDR) of 'B+', as it represents direct, unsecured and unconditional obligation of the bank. The issue's Recovery Rating of 'RR4' reflects average recovery prospects for noteholders in case of default. Ameria's Long-Term IDR of 'B+', which has a Stable Outlook, reflects the high dollarization and concentration of Ameria's balance sheet, and the bank's recent rapid credit growth in Armenia's fairly high-risk environment. It also factors in the bank's reasonable financial metrics, albeit under moderate pressure from a challenging operating environment, solid loss absorption capacity, adequate liquidity buffer and strong domestic franchise. RATING SENSITIVITIES Changes to Ameria's Long-Term IDR would impact the issue's rating. Ameria's credit metrics are highly reliant on the performance of the economy and stability of the local currency. Deterioration in the domestic economy, resulting in the marked weakening of the bank's asset quality or capitalization, without sufficient support being provided by the bank's shareholders, may result in a rating downgrade. Improvement of the country's economic prospects would be supportive of bank's credit profile, although an upgrade is unlikely in the medium-term. ============= I R E L A N D ============= PROVIDENCE RESOURCES: Eliminates US$25-Mil. Debt Mountain --------------------------------------------------------- Geoff Percival at Irish Examiner reports that Providence Resources has confirmed the formal elimination of a near US$25 million (EUR23 million) debt mountain, potentially putting it in a stronger position to land development partners for three of its biggest assets. In a brief statement, Providence on July 20 said that it has paid out the US$21.7 million owed to chief lender Melody Capital -- via a US$20 million cash payment and nearly 10 million shares -- and has settled the outstanding amount, nearly US$5 million, payable from a drilling dispute with services firm Transocean, Irish Examiner relates. The moves follow shareholders last week approving a vital US$70 million fundraising round, which will also meet working capital needs and cover the costs of planned drilling at the company's Druid prospect off the west coast next year, Irish Examiner discloses. As reported by the Troubled Company Reporter-Europe on Oct. 1, 2015, The Irish Times related that pretax losses at Providence Resources widened in the six months ending June 30, 2015, as the group said it was in talks with its lender to extend its debt facility. Providence reported a first-half pretax loss in 2015 of EUR8.42 million as against EUR3.37 million for the same period a year earlier with a loss per share of 7.94 cents versus 5.22 cents in the first six months of 2014, The Irish Times disclosed. Providence Resources is an Irish-based oil and gas exploration company. ========= I T A L Y ========= ALBAZZURRA HOTEL: Oct. 26 Deadline Set for Hotel Complex Offers --------------------------------------------------------------- Giuseppe Biondi, the Court-appointed Liquidator of Arrangement with Creditors no. 8/2012 of Albazzurra Hotel & Resort s.r.l., proposes the sale, through a competitive bidding process, of the hotel complex composed of the Capo dei Greci and Magna Grecia units located in Via Nazionale 421, Sant'Alessio Siculo (Me), Riviera di Taormina, as well as the related fittings. Starting price: EUR46,575,821 in addition to tax. Applications must be sent electronically and digitally signed via certified e-mail to albazzurahotel@pec.it, cp8.2012messina@pecfallimenti.it, according to the format published on the website www.albazzurarealestate.it, allowing access to the virtual data room (containing the full sale rules, the formats for requesting access to the data room, the irrevocable purchase bid with bid deposit, the appraisals and other documents relevant to the sale). Where no request is made to access the virtual data room, applicants, may nonetheless, submit by 8:00 p.m. on October 26, 2016, an irrevocable purchase bid with bid deposit (the "Binding Purchase Bid"), valid until the deadline set for the final awarding, according to the format published on www.albazurrarealestate.it, which must be sent digitally signed via certified e-mail to albazurrahotel@pec.it, cp8.2012messina@pecfallimenti.it, paola.totaro@postacertificata.notariato.it, and by the same deadline of October 26, 2016, on paper by registered letter with advice of receipt addressed to notary Paola Totaro, at her office in Via Romagnosi 7, Messina. Irrevocable and unconditional bids must also include a crossed bank draft in the name of "Concordato Preventivo Albazzura Hotel & Resort s.r.l. n. 8/2013 Tribunale di Messina for an amount of EUR2,500,000. On October 27, 2016, beginning from 9:00 a.m., before said notary at her office in Via Romagnosi 7, Messina, the competitive bidding will take place, with a starting price corresponding to the highest purchase bid, and with a minimum bid increment equal to 5% of the starting price. Further information on the sale regulations, bid submission procedures and sale conditions is found at www.albazurrarealestate.it This notice does not constitute an irrevocable offer, public offering or solicitation of public savings, nor does it in any way commit the Court-appointed Liquidator to contract with the bidders. GAMENET GROUP: S&P Revises Outlook to Stable & Affirms 'B' ICR -------------------------------------------------------------- S&P Global Ratings said that it has revised its outlook on Italian gaming operator Gamenet to stable from negative. At the same time S&P affirmed the issuer credit rating at 'B'. S&P assigned a 'B' issue and '3' recovery rating to the proposed EUR200 million senior secured notes maturing in 2021. The recovery rating indicates S&P's expectation of meaningful recovery prospects in the higher half of the 50%-70% range in the event of a payment default. S&P affirmed the 'B' issue and '3' recovery ratings on the existing EUR200 million senior secured notes. S&P will withdraw the ratings on these notes on repayment of the debt. S&P also assigned an issuer credit rating of 'B' to the vehicle issuing the proposed notes, Gamenet Group SpA. The outlook is stable. The outlook revision and affirmation reflect S&P's opinion that Gamenet has managed to stabilize operating performance and will have an improved liquidity profile once it completes the refinancing transaction it announced on July 15, 2016. The rating action also takes into account S&P's view that the regulatory framework is more favorable this year as Italy's 2016 Stability Law repealed the EUR500 million tax on the industry that was put in place last year. Taxes have been increased on amusement with prizes (AWPs) machines and video lottery terminals (VLTs), but Gamenet will be able to adjust payouts downward to compensate. The company launched the opportunistic refinancing of the EUR200 million senior secured notes due 2018 by announcing that it will issue EUR200 million of senior secured notes maturing in 2021 and add a EUR30 million RCF aimed at supporting its liquidity position. S&P assumes that the transaction will close on Aug. 1, 2016. S&P views this as a favorable development for Gamenet, as the bullet maturity will get pushed out by an additional three years and liquidity will be boosted by the RCF. This has led S&P to revise its liquidity assessment to adequate from less than adequate. Gamenet is one of the leading players in the gaming machine segment in Italy, where it is the second concessionaire after GTECH SpA. The group is a licensed gaming operator for betting and online products, and boosted its market share further following the close of its merger with Intralot Italia last month. This addition will reduce Gamenet's dependency on machines, especially VLTs, while significantly increasing earnings from the betting and online segments. S&P views the betting gaming segment as more volatile and payouts less predictable because odds can end up being unfavorable for betting companies, which was the case in Italy last year as industry players saw some of the highest payout levels in history. However, S&P believes that the 2016 Stability Law will make Gamenet's betting earnings more stable as taxation is shifting from total bet to net payout. "We continue to assess Gamenet's business risk profile as weak, reflecting its lack of geographic diversification outside Italy and its profitability, which we assess as below average for the leisure industry. The merger with Intralot Italia will increase Gamenet's earnings diversification by strengthening its betting and online activities, but will also result in lower profitability since betting and online activities are lower margin than gaming machines," S&P said. S&P revised its assessment of Gamenet's financial risk profile upward to aggressive from highly leveraged as a result of the improved liquidity profile following the transaction and the expected reduction in adjusted leverage as Intralot Italia will add to the group's earnings base. S&P currently caps the financial risk profile at aggressive because the company is owned by a financial sponsor, Trilantic Capital Partners. The rating incorporates a downward adjustment of one notch to reflect potential integration risks with Intralot and the fact that Gamenet is merging with a business that S&P views as weaker, as indicated by the lower combined group margin once Intralot Italia's operations are fully merged with Gamenet's. The sizable increase in exposure to the betting segment is likely to add further volatility to the earnings base, though S&P hopes that this will be limited given the change to the betting tax calculation. In S&P's base case, it assumes: -- Revenues will nearly double in 2016 to about EUR1 billion pro forma for the addition of Intralot Italia's operations. S&P forecasts revenue growth of about 1%-2% in 2017. -- Adjusted EBITDA margin will decline to about 7%-8% in 2016 and 2017 from about 12% at the end of 2015 due to Intralot Italia's lower margins. -- Capital expenditure (capex) of about EUR5 million- EUR10 million in 2016 and 2017, to which S&P add about EUR25 million-EUR30 million for investment in the betting license. Based on these assumptions, S&P's Global Ratings base case forecast arrives at these credit measures: -- Adjusted debt to EBITDA of about 2.5-2.7x in 2016 and 2017. Modest positive free operating cash flow (FOCF) in 2016, turning slightly negative in 2017 as a result of betting license renewal fees. -- Adjusted EBITDA interest coverage of around 5.5x-6x in 2016 and 2017. The stable outlook reflects Gamenet's improved liquidity position with the addition of the proposed RCF. While the combined Gamenet-Intralot EBITDA margin will be lower than Gamenet's stand-alone margin, S&P anticipates that the combined entity will deliver stable operating performance, supported by the Italian government's repeal of the EUR500 million tax on the gaming industry in 2016 and the generally more stable regulatory environment. S&P acknowledges that Gamenet will have to make sizable capital investments over the next 12 months to renew betting licenses, but expect that the company will be able to finance these with FOCF and cash on its balance sheet. S&P could consider raising the rating if the company's operating performance substantially improves and S&P can see clearly the benefits of the Intralot Italia acquisition and the regulatory and tax changes. Specifically, S&P would look for substantial positive FOCF, reported margins returning to above 10%, and adjusted leverage remaining sustainably below 4x. An upgrade is also contingent on a consistent track record of adequate liquidity and Trilantic maintaining their relatively conservative financial policy. S&P could lower the ratings if Gamenet were not able to successfully integrate Intralot's operations and if this proved to be a significant drag on profitability, eroding headroom in financial ratios. S&P expects FOCF to turn modestly negative in 2017 because of spending on betting license renewals, but if combined group operation performance were to turn sluggish and the period of negative FOCF were prolonged, S&P would lower the ratings. Additionally, S&P could downgrade Gamenet if its liquidity deteriorated significantly. MONTE DEI PASCHI: Italy Mulls "Private Sector" Rescue Solution -------------------------------------------------------------- Rachel Sanderson and Alex Barker at The Financial Times report that Italy is eyeing a "private sector" solution to rescue Monte dei Paschi di Siena, Italy's third-largest bank by assets, in an attempt to sidestep tough EU curbs on bailouts, according to senior bankers and European officials. Rome's main options, however, involve the heavy involvement of the state-backed bank Cassa Depositi e Prestiti, raising the risk that the intervention will ultimately run foul of EU curbs on state support, the FT notes. The push comes as Italy prepares for the fallout from critical bank stress tests on July 29 and desperately seeks a way out of a stand-off with Brussels over the use of state money to prop up failing lenders, the FT relays. According to the FT, rather than inject state money directly into Monte Paschi as originally planned, Italy is exploring ways to buyout its bad loans at favorable rates with money from private and state-backed institutions. This would use the existing privately backed fund, called Atlante, and would not need preapproval from Brussels, the FT states. The terms of any intervention, however, would be closely watched by Brussels to ensure it involves no hidden state support, the FT says. The latest attempt at finding a solution, which should conclude before the stress tests at the end of the month, involves increasing the size of the EUR4.25 billion government-sponsored backstop, Atlante, with about EUR2 billion of additional capital coming in part from Treasury-owned bank CDP and state pension funds, the FT discloses. People involved in the talks said the aim is to provide it with the firepower to securitise for sale at least EUR10 billion of Monte Paschi bad loans, the FT relays. The bank would also attempt to raise up to EUR3.5 billion in new capital, something eurozone officials doubt it could raise in markets, the FT notes. About Monte dei Paschi Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is an Italy-based company engaged in the banking sector. It provides traditional banking services, asset management and private banking, including life insurance, pension funds and investment trusts. In addition, it offers investment banking, including project finance, merchant banking and financial advisory services. The Company comprises more than 3,000 branches, and a structure of channels of distribution. Banca Monte dei Paschi di Siena Group has subsidiaries located throughout Italy, Europe, America, Asia and North Africa. It has numerous subsidiaries, including Mps Sim SpA, MPS Capital Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA. N. 12/13: Sept. 21 Deadline Set for Hotel/Res. Complex Offers ------------------------------------------------------------- Dott. Giovanni Michele Sibona, the judicial liquidator, announced that the composition proceedings N. 12/13 (ex Alba) + N. 23/13 approved by the Court of Asti intend to carry out a competitive sale of a Hotel/residential complex, to be finalized, situated in Cerretto Langhe (CN) in an estate with ca 42 hectares, with a wine yard (leased with contact that expires on November 11, 2016) and hazelnut plantations, parks and forests and private access roads to be finalized; the complex consists of 30 suites/rooms, an organic spa resort, a gourmet restaurant, a bistro and a wine bar plus two exclusive villas, one finalized with interiors and one in construction, a plot of building land for the construction of further guest rooms and farm buildings as well as photovoltaic system, as, fully described in the appraisals. The complex is situated in the heart of the Langhe, territory recently included among the heritage sites of Unesco. Base price: EUR4,800,000 plus legal taxes -- Minimum offers ex art 571 cpc not below EUR3,600,00 plus legal taxes Offers secured by a deposit equal to 10% of the offered amount must be submitted at the office of the judicial liquidator in Alba (Cuneo), Via Macrino 4 by 1:30 p.m. on September 21, 2016, with the procedures indicated in the notice. Examination of the offers and eventual tender among the participants with minimum increments of EUR50,000 will be held on September 22, 2016 at 9:30 a.m. at the office of the liquidator. The purchase price balance must be paid within 120 days. For any information please see the Notice and the appraisals published on the website www.astegiudiziare.it, or contact the judicial liquidator telephone 00390173441838, Fax: 00390173364693, e-mail michelesibona@studiosibona.it together with any information or request of a viewing. =================== L U X E M B O U R G =================== GEO TRAVEL: S&P Revises Outlook to Stable & Affirms 'B' CCR ----------------------------------------------------------- S&P Global Ratings revised to stable from negative its outlook on European online travel agent Geo Travel Finance SCA Luxembourg (eDreams Odigeo). At the same time, S&P affirmed its 'B' long- term corporate credit rating. In addition, S&P affirmed its issue rating on the EUR130 million super senior revolving credit facility (SSRCF) of 'BB-' with a recovery rating of '1'. S&P also affirmed its issue rating on the EUR295 million senior secured notes at 'B' with a recovery rating of '4', and S&P's issue rating on the EUR129 million senior unsecured notes at 'CCC+' with a recovery rating of '6'. The affirmation and outlook revision follows eDreams Odigeo's strong reported results for year-end March 2016, which, in S&P's view, demonstrate that the company's operating performance has stabilized following a challenging period in 2014/2015. The 16% increase in S&P Global Ratings-adjusted EBITDA in the year ending March 31, 2016, to EUR91.6 million, follows a 30% drop in the previous year resulting from a change in Google's search engine ranking mechanism, which significantly increased eDreams Odigeo's variable costs and eroded its profitability. In the last year, eDreams Odigeo has implemented a new strategy aimed at diversifying its revenue sources and reducing its variable costs, which has resulted in clear margin improvements. S&P sees the industry outlook as broadly supportive for eDreams Odigeo, with the European online travel agency (OTA) market growing in the high single digits in 2016 and 2017 (includes flights, hotels, car rentals, trains, and tour operators), supported by offline-online migration and rising discretionary consumer spending. This, combined with eDreams Odigeo's strategic initiatives, should ensure at least stable profit margins in the medium term, translating into moderately positive free operating cash flow (FOCF) and improving credit metrics. S&P's assessment of eDreams Odigeo's weak business risk profile, however, also reflects the highly competitive and fragmented nature of the OTA sector, with the risk of new entrants and exposure to the cyclical and volatile airline travel market. It also reflects eDreams Odigeo's smaller scale and lower degree of diversification compared with global U.S.-based peers, Expedia and Priceline. Offsetting these factors are eDreams Odigeo's leading position in the European flight market with No. 1 positions in France, Germany, Italy, and Spain; favorable growth prospects for the OTA sector as a whole; and its flexible cost structure. "Our assessment of eDreams Odigeo's highly leveraged risk profile reflects our base-case forecast that, notwithstanding the leverage reduction that we expect to continue, adjusted debt to EBITDA will remain more than 5x, and adjusted funds from operations (FFO) to debt will remain less than 10% over the medium term. We expect positive FOCF in the future, which supports the existing rating. We see a risk that FOCF could turn negative in 2018 due to a change in the remittance frequency of French and U.K. billing to the International Air Traffic Association, but we understand that eDreams Odigeo is implementing a range of measures to neutralize the impact," S&P said. In S&P's base case, it assumes: -- Revenue growth of 5%-7% in financial 2017 and 2018 (years ending March 31), supported by demand growth in the OTA segment and underlying GDP growth. -- Relatively flat margins over the same period due to elevated variable costs to address competitive pressures. -- Capital expenditure (capex) of about EUR30 million in 2017 and 2018. -- No dividends or material acquisitions. Based on these assumptions, S&P arrives at these credit measures: -- Adjusted EBITDA margins of about 18% in financial 2017 and 2018. -- Adjusted debt-to-EBITDA of about 5.4x in 2017 and about 5.1x in 2018. -- Adjusted FFO-to-debt of about 9% in 2017 and about 10% in 2018. The stable outlook reflects S&P's opinion that eDream's Odigeo's earnings have recovered from a weak year to March 2015, that its EBITDA margins have stabilized, and that leverage has fallen due to higher EBITDA and some opportunistic debt repayments. It also reflects S&P's opinion that FOCF has turned sustainably positive. S&P could lower the ratings if eDream's Odigeo's operating performance materially weakened relative to S&P's base case, such that leveraged increased and adjusted EBITDA interest cover fell below 2x, FOCF turned negative, or liquidity weakened to less- than-adequate. An upgrade would depend on adjusted metrics strengthening materially more than in S&P's base case, such that adjusted debt to EBITDA fell materially below 5x and adjusted EBITDA interest cover rose to more than 3x. An upgrade would also be contingent on eDream Odigeo generating materially positive FOCF, and on its liquidity staying at least adequate. =========== R U S S I A =========== MECHEL PJSC: In Debt Talks, Foreign Lenders Seek More Collateral ---------------------------------------------------------------- Yuliya Fedorinova and Andrey Lemeshko at Bloomberg News report that Mechel PJSC's foreign lenders are seeking more collateral before agreeing to restructure US$1 billion of the company's debt. According to Bloomberg, Mechel Chief Financial Officer Sergey Rezontov said in an interview that while a prospective deal is mostly agreed, on similar terms to an accord with Russian state lenders, foreign banks want improved security for the borrowings. "The banks seek more assets to be pledged, which is quite fair and we will consider it," the report quoted Mr. Rezontov as saying in Moscow. "But we can't do it without the consent of the state lenders, which already agreed to restructure the debt." Mechel, Bloomberg says, has been trying to alter the terms of its debt since 2014 as coal and steel prices slid. It agreed to a restructuring with Sberbank PJSC in April after deals with VTB Bank and Gazprombank last year, bringing total restructured debt to $4 billion, the report recalls. Lenders including ING Bank NV and Societe Generale SA hold $1 billion of debt through a pre- export loan, which gained a waiver in 2013, it added. Rezontov wouldn't say what assets they were seeking as security and the press services of Rosbank, SocGen's Russian unit, and ING Bank declined to comment, says the report. Mechel's annual report shows Russian state lenders gained collateral including combined controlling stakes in akutugol, owner of Mechel's biggest new coal project, and its Chelyabinsk steel smelter, Bloomberg discloses. The debt's maturity was also pushed to 2022 from 2015-17 and the cost of borrowing tied to the London Interbank Offered Rate and Russian central bank key rate, Bloomberg notes. The foreign loan is secured with equipment and just over 25% stakes in Yakutugol and Southern Kuzbass Coal Co., Bloomberg relays, citing a filing. Mechel is now only paying interest on the debt, due for repayment in 2017, Bloomberg states. "The banks may take some legal actions as the debt is mostly overdue and to pressure Russian state banks to get consent on restructuring terms," Bloomberg quotes Mr. Rezontov as saying. "We will do our best to mitigate these actions and find a compromise solution between our lenders." Mechel is a Russian steel and coal producer. ========= S P A I N ========= UFINET TELECOM: S&P Affirms 'B' CCR, Outlook Remains Stable ----------------------------------------------------------- S&P Global Ratings affirmed its 'B' long-term corporate credit rating on Spain-based provider of fiber infrastructure Ufinet Telecom Holding SLU. The outlook remains stable. At the same time, S&P affirmed its 'B' issue ratings on the company's term loan and revolving credit facility (RCF). The '3' recovery rating reflects S&P's expectation of recovery in the lower half of the 50%-70% range in the event of a default. The affirmation follows S&P's review of Ufinet's recent performance and business prospects, which led S&P to update its base-case forecasts. The group continues to expand its operations in Spain, where volumes have offset price declines, and in Latin America, where demand for infrastructure is high. Consequently, the company's backlog and margins remain healthy. However, starting in 2016, S&P expects the group will modify its investment model, resulting in lower coverage of capital expenditure (capex) by indefeasible right-of-use contracts (IRUs) and reduced free operating cash flow (FOCF). Also, Ufinet's highly leveraged capital structure and financial sponsor ownership continue to constrain the rating. On the positive side, S&P considers Ufinet's business risk profile to be fair. S&P bases its assessment on the company's extensive fiber optic network of about 46,000 kilometers in Spain and Latin America. S&P also factors in the industry's high barriers to entry, owing to the cost of expanding a fiber network and high switching costs for customers. Furthermore, Ufinet's business model provides recurring revenues and a sizable contractual cash revenue backlog, thanks to multiple-year contracts on capacity leasing (dark-fiber), which translate into healthy profit margins. Finally, the company does not engage in speculative network developments. Rather, it focuses on growth from new customer contracts, and capex continues to be partly self-funded through IRUs. However, S&P expects that capex, spurred by investments in fiber to the home (FTTH) and new market entrance (Peru and Chile), will outpace IRU funding, resulting in only slightly positive FOCF and a potentially riskier investment model. Moreover, the above- mentioned strengths are tempered by Ufinet's limited size and high customer concentration, especially in dark-fiber activities. In addition, Spain's fairly mature telecom market has been consolidating, and competition from better-capitalized fiber- based telecom providers is rising. These factors would likely sustain price pressure, which S&P expects will continue to be mitigated by increasing volumes and additional services provided by Ufinet. The rating remains constrained by S&P's assessment of Ufinet's highly leveraged capital structure and its ultimate ownership by private-equity firm Cinven, which S&P considers a financial sponsor. This in turn affects S&P's assessment of Ufinet's financial policy, including S&P's belief of potential future debt-funded mergers and acquisitions or dividend recapitalization. Under S&P's base case, it assumes IRUs will cover a declining portion of Ufinet's rising capex, resulting in lower, but slightly positive FOCF and a ratio of FOCF to debt of about 0.5% in 2016 and almost 1% in 2017 (about 0.9% and 1.5% respectively excluding preferred shares). As anticipated, Ufinet hedged about one-third of its debt and coupons against fluctuations in the euro to U.S. dollar exchange rate to offset any currency mismatches, given its exposure to Latin America. The stable outlook on Ufinet reflects S&P's expectation that increasing demand for bandwidth from companies and telecom carriers, as well as for dark fiber in Latin America, will support solid revenue growth and a sound EBITDA margin of 50%- 51%. This should translate into slightly positive FOCF, with FOCF to debt between 0% and 5% and adequate liquidity. S&P could consider lowering the ratings if increased competition resulted in even lower prices for fiber-optic services, leading to a substantial decline in EBITDA margins below 40%. S&P would also lower its ratings if FOCF turned significantly negative, and liquidity came under pressure. S&P views an upgrade as unlikely as long as preferred shares are treated as debt under S&P's criteria. However, a positive rating action could occur if S&P continues to see positive revenue and EBITDA growth and improving credit metrics, with the S&P Global Ratings' adjusted debt-to-EBITDA ratio of durably 5.0x-5.5x combined with solid cash flow generation with FOCF to debt sustainably above 5%. =========== S W E D E N =========== STENA AB: S&P Cuts Corp. Credit Rating to 'BB-', Outlook Negative ----------------------------------------------------------------- S&P Global Ratings lowered its long-term corporate credit rating on Swedish conglomerate Stena AB to 'BB-' from 'BB'. The outlook is negative. S&P lowered issue rating on the $350 million senior secured notes and the $650 million term loan B to 'BB' from 'BB+', one notch higher than the corporate credit rating. The recovery rating is '2', indicating S&P's expectation of substantial recovery for creditors (70%-90%, higher half of the range) in the event of a payment default. S&P also lowered the ratings on Stena's unsecured debt to 'BB-'. The recovery rating is '4', indicating average recovery expectations (30%-50%, lower half of the range). The downgrade reflects the sharply deteriorated outlook for the oil drilling industry and its potentially long-lasting impact on Stena's business and financial risk. However, S&P notes the effect for Stena is less pronounced than for pure drillers, because it is well diversified in the ferry, shipping, and real estate industries. This should cushion somewhat the impact of the weak drilling activity. Although Stena has relatively limited scale in drilling, with seven units, it reported 2015 revenues of close to Swedish krona (SEK) 36 billion (about $4.2 billion) and EBITDA of SEK11.6 billion (about $1.4 billion). S&P anticipates drilling market conditions will continue to deteriorate at least through 2017. The timing of a recovery remains highly uncertain, in S&P's view, because oil companies' drastic cuts to capital spending could hit offshore drilling for several years, even if oil prices recover ahead of S&P's assumptions. The uncertain length of the downturn and uncertainty surrounding any recovery weighs negatively on Stena's future cash flow visibility. Its order backlog and profitability will, in S&P's view, weaken as low contract coverage and unemployed rigs weigh negatively on operating cash flow capabilities and margins. Stena has nevertheless demonstrated that it can produce fairly stable operating results and generate adequate cash flows through the cycle. A material share of the group's portfolio comprises residential real estate in Sweden, where vacancy levels are low and rents are regulated. This translates into low-risk, very stable, and predictable cash flows. S&P therefore maintain its assessment of Stena's business risk at fair, despite the weakness in the drilling division. The negative outlook on Sweden-based conglomerate Stena AB reflects S&P Global Ratings' view that the group's financial performance and credit ratios could be further affected if part of the current existing drilling fleet were to remain unchartered over the next several quarters absent a drilling market recovery. The rating already factors in stability for the ferry, shipping, and property operations in terms of cash flow production together with a good development in Stena's investment business. S&P anticipates FFO to debt will remain at or above 8% and adjusted debt to EBITDA at about 7x or lower. S&P could downgrade Stena, most likely by one notch, if FOCF is materially negative or if EBITDA is lower than S&P's projections, which may occur if several drilling units are unemployed and prospects for new contracts are poor. S&P could also lower the ratings if Stena's liquidity deteriorates, most likely due to drawings on the revolving credit facility or continued high capex in the context of diminishing FFO. FFO to debt clearly below 8% or debt to EBITDA remaining above 7x could be a downside rating trigger. Although unlikely in the short term, S&P could revise the outlook to stable if Stena is able to quickly restore its financial performance, materializing in FFO to debt recovering to close to 10% and debt to EBITDA close to 6x. This could stem from lower investments or an improved situation in drilling. =========== T U R K E Y =========== TURKEY: S&P Lowers Sovereign Credit Ratings to 'BB/B' ----------------------------------------------------- S&P Global Ratings lowered its unsolicited foreign currency long- and short-term sovereign credit ratings on the Republic of Turkey to 'BB/B' from 'BB+/B'. At the same time, S&P lowered its unsolicited local currency long- and short-term sovereign credit ratings on Turkey to 'BB+/B' from 'BBB-/A-3'. The outlook is negative. S&P also revised the transfer and convertibility (T&C) assessment on Turkey to 'BBB-' from 'BBB'. In addition, S&P lowered its unsolicited long-term Turkey national scale rating to 'trAA+' from 'trAAA' and affirmed the 'trA-1' short-term rating. As a "sovereign rating" (as defined in EU CRA Regulation 1060/2009 "EU CRA Regulation"), the ratings on the Republic of Turkey are subject to certain publication restrictions set out in Art 8a of the EU CRA Regulation, including publication in accordance with a pre-established calendar. Under the EU CRA Regulation, deviations from the announced calendar are allowed only in limited circumstances and must be accompanied by a detailed explanation of the reasons for the deviation. In this case, the reason for the deviation is S&P's view that following the attempted coup on July 15, 2016, Turkey's institutional effectiveness has been further eroded, raising risks to its externally leveraged economy. S&P believes these events will make rolling over Turkey's substantial short-term external debt more challenging. The next rating publication on Turkey is scheduled for Nov. 4, 2016, according to S&P's calendar. RATIONALE The downgrade reflects S&P's view that following the attempted coup on July 15, Turkey's political landscape has fragmented further. S&P believes this will undermine Turkey's investment environment, growth, and capital inflows into its externally leveraged economy. In the aftermath of the failed coup, S&P believes that the risks to Turkey's ability to roll over its external debt have increased. S&P estimates that it has to roll over nearly 42% of its total external debt -- amounting to over US$170 billion (5x usable reserves; 24% of estimated 2016 GDP) -- over the next 12 months. In addition, S&P expects that given the political uncertainty, Turkey's policymakers will likely stray from their commitment to enact reforms intended to wean the economy away from its dependence on foreign financing. Since the attempted coup, S&P understands that, so far, an estimated 45,000, largely government officials, have either been suspended or removed from their posts, with the education and judiciary sectors most affected. A further 14,000 police officers and soldiers have either been suspended or detained. S&P had already expected heightened political uncertainty in 2015 -- due to escalating domestic violence following the ending of the peace process with Kurdish militants, two general elections, and instability along Turkey's southeastern border -- to spill over into 2016. However, the attempted coup and our expectation about the associated fallout on the real economy, through weakening capital inflows, is beyond what S&P factored into its previous base-case scenario. Turkey's net foreign exchange reserves -- at an estimated $32 billion -- provide coverage for only about two months of current account payments, suggesting limited buffers to offset external pressures. Mitigating its external vulnerabilities to some degree, Turkey has deep local-currency capital markets that have facilitated its access to and cost of financing. Two-thirds of government debt is funded in local currency and at fixed rates. Furthermore, S&P views the treasury's policy of meeting net public-sector financing needs by issuing in local currency at longer maturities as a positive rating factor. OUTLOOK The negative outlook reflects S&P's view that Turkey's economic, fiscal, and debt metrics could deteriorate beyond what S&P expects, if political uncertainty contributed to further weakening in the investment environment, potentially intensifying balance-of-payment pressures. S&P could also lower the ratings if it assessed Turkey's monetary policy credibility as deteriorating due to government intervention. S&P could revise its outlook on Turkey to stable if the government's fiscal deficits remained modest and the independence of key institutions was not eroded. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee revised the "institutional assessment" to weakness from neutral. All other key rating factors were unchanged. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Rating To From Turkey (Republic of) Sovereign Credit Rating Foreign Currency|U~ BB/Negative/B BB+/Stable/B Local Currency|U~ BB+/Negative/B BBB-/Stable/A-3 Turkey National Scale|U~ trAA+/--/trA-1 trAAA/--/trA-1 Transfer & Convertibility Assessment|U~ BBB- BBB ============= U K R A I N E ============= KHERSON SHIPYARD: Declared Bankrupt by Kherson Court ---------------------------------------------------- Interfax-Ukraine reports that the business court in Kherson region has declared PJSC Kherson Shipyard bankrupt and launched a liquidation procedure. According to Interfax-Ukraine, the company reported in the information disclosure of the National Commission for Securities and the Stock Market on July 21 that the court made its decision on July 19. Viacheslav Menchak has been appointed liquidator, Interfax- Ukraine relates. PJSC Kherson Shipyard is part of Smart Maritime Group (SMG) of Vadim Novinsky's Smart-holding. =========================== U N I T E D K I N G D O M =========================== AM WIDDOWSON: Gets New Owner After Going Into Administration ------------------------------------------------------------ Tom Pegden at Leicester Mercury reports that creditors say they are owed tens of thousands of pounds after one of the county's biggest haulage companies went into administration -- only to be sold to a new company the same day. AM Widdowson and Son, owner of Glenfield transport and warehousing business Widdowson Group, went into administration on July 6, a day after changing its name to Loglecdissol, according to Leicester Mercury. Documents from business recovery specialists Leonard Curtis show HMRC had been planning enforcement action over money owed by AM Widdowson, which could have forced it under, the report notes. Creditors were also putting pressure on the business, the documents show, the report adds. EUROSURGICAL: Hospital Services Buys Business Out of Liquidation ---------------------------------------------------------------- Daily Mirror reports that Belfast medical supply firm Hospital Services Limited has bought the Northern Ireland business of Eurosurgical, the Dublin-based company currently in liquidation, for an undisclosed sum. Hospital Services said staff at the Belmont Road site of Eurosurgical, which supplies radiology and surgery equipment, will transfer to the new firm. PURPLE ENERGY: In Liquidation, Cuts 29 Jobs ------------------------------------------- Laura James at The Sentinel reports that around 30 workers have been made redundant following the collapse of a renewable energy firm. Purple Energy Limited in Talke has fallen into liquidation after a decade of trading, according to The Sentinel. The business is blaming the closure on low oil prices and concerns over changes to Government incentives, the report notes. It claims the last six months has been the company's 'most challenging' period in its history, the report relays. Now Tunstall-based JPO Restructuring Limited has been appointed as liquidator, which will be selling the firm's assets to pay creditors, the report says. According to The Sentinel, Director John-Paul O'Hara said: "The combination of very low oil prices, uncertainty around what is going to happen in relation to Government incentives at the end of March next year, and the fact that currently there isn't a compelling reason for customers to commit with any urgency, have meant that the trading conditions over the last six months have been the most challenging faced over the company's almost 10 years' history. These difficult trading conditions have meant the directors have no choice other than to cease to trade -- with some 29 employees being made redundant." We have been engaged to assist with the process of placing the company into creditors voluntary liquidation." The appointed liquidator will be seeking expressions of interest in the company assets to maximise realisations for creditors." Purple Energy in Congleton Road, was set up in 2006. It specialised in the design and installation of renewable heating systems for large domestic and commercial properties. STORM FUNDING: August 3 Proofs of Debt Submission Deadline Set -------------------------------------------------------------- The Joint Administrators of Storm Funding Limited intend to make a distribution (by way of paying an interim dividend) to the preferential creditors (if any) and to the unsecured, non- preferential creditors of Storm. Proofs of debt may be lodged at any point up to (and including) August 3, 2016. Creditors however are requested to lodge their proofs of debt at the earliest possible opportunity. Creditors may be required to provide further details or produce documents or other evidence to their claims as the Joint Administrators deem necessary. The Joint Administrators will not be obliged to deal with proofs lodged after the last date for proving but they may do so if they think fit. The Joint Administrators intend to make the announced distribution within the period of two months from the last date of proving claims. For further information, contact details, and proof of debt forms, please visit https://is.gd/wrXzq9 Creditors must complete and return a proof of debt form together with relevant supporting documents, to PricewaterhouseCoopers LLP, 7 More London Riverside, London SE1 2RT marked for the attention of Alison Lieberman. Alternatively, creditors can email a completed proof of debt form to storm.claims@uk.pwc.com VIRGIN MEDIA: Fitch Affirms 'BB-' Long-Term IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Virgin Media Inc.'s (VMED) Long-Term Issuer Default Rating at 'BB-'. The Outlook is Stable. VMED's ratings are supported by its well-established market positions in the UK and Ireland's telecoms markets. The strength of its service offering to the residential and B2B markets is driven by its technology advantage and approach to content aggregation. VMED provides the broadest access to premium content across the UK's pay-TV market and broadband speeds that are likely to remain materially higher than the incumbent's, generating consistent revenue growth, stable margins and strong cash flow. Its mobile operations provide the ability to offer a full convergent service offering. With funds from operations (FFO) lease adjusted net leverage expected to remain below 5.0x, the company's strong cash flow provides deleveraging capacity available to few of its peers; which we view as a supporting factor for the rating. KEY RATING DRIVERS Cash Flow Provides Deleveraging Capacity VMED is the only meaningfully built-out alternative last-mile communications infrastructure in the UK, with its network passing approximately 45% of the UK's homes and businesses. Its convergent offer is led by its ability to deliver superior broadband speeds combined with the widest access to available video content across the UK's pay-TV platforms. The business delivers consistent revenue growth, stable and high margins and strong cash flow, with underlying 2015 revenue growth of 4% and a pre-distribution free cash flow (FCF) margin of 23%. One of the strongest cash flows in its peer group provides deleveraging capacity available to few of its peers. VMED targets a net debt/EBITDA range of 4.5x - 5.0x excluding finance leases and vendor finance, which add approximately 0.3x to the reported metric. Under Fitch's calculations, the upper end of this range correlates to FFO net leverage of around 5.3x versus a downgrade guideline of 5.2x. VMED's parent, Liberty Global (LG), targets an upper limit of net debt/EBITDA of 5.0x, including finance leases and vendor finance. In Fitch's view, VMED's importance to the LG group provides financial discipline in line with LG's policy, while VMED's FFO net leverage has historically been managed below 5.0x. Project Lightning On Track VMED's plans to cable an additional 4 million UK premises between 2015-2019 is the first major cable extension in many years, with initial build and take-up results suggesting the project is on track. The project's targets include incremental revenues of GBP1.0 bil. by year 5 and a target EBITDA margin of 60%, reflecting the low incremental operating costs and scale economies of building out an existing network. VMED has reported penetration (customer take-up) of 26% within nine months of initial roll-out/marketing and that customer average revenues per user (ARPU) are in line with its initial target of GBP45. Fitch believes the project's targets are achievable and that management has the flexibility to adapt or pause the project should the operating environment require it. Technology Advantage VMED's top commercial broadband speeds are up to 200Mb/s to consumers and 300 Mb/s for businesses in the UK, and its DOCSIS 3.0 cable network is capable of far higher speeds. Fitch considers the UK incumbent BT's network strategy, deploying a combination of fibre to the cabinet while targeting some fibre to the home to be a prudent and economically efficient one, but that cable is likely to continue to benefit from a technology advantage. According to Ofcom data, Openreach is currently able to provide speeds to the majority of households of up to 80 Mb/s. BT's ultrafast broadband plans include G.fast, which is expected to offer speeds up to 500Mb/s. Nonetheless, we expect cable to maintain its speed advantage throughout much of its footprint, regardless of incumbent developments. DOCSIS 3.1, the next generation of cable technology, will enable speeds of 1Gb/s. LG has signalled plans to roll-out the technology across its European operations. Content Inflation Manageable VMED's content costs continue to experience inflation. 2015 programming costs of GBP700 million were up 12.2%; driven by wholesale access costs of Sky and BT's sports content, who are now competing aggressively for key football rights -- most obviously, the English Premier League. VMED successfully defended margins despite these pressures, passing programming inflation onto its video customers along with price increases across its wider fixed line base. VMED's 2015 EBITDA margin of 44.8% improved from 43.7% in 2014. In Fitch's view, programming inflation remains an ongoing risk across the UK market given evidence of key football rights auctions and the competitive tensions now clearly established to secure these rights. However, the risk for VMED is less pronounced given the position the cable operator takes towards content, establishing itself primarily as an aggregator or access platform to the widest range of available content. Fitch also expects VMED to benefit from Liberty GO, LG's three-year growth plan which includes efficiency programs aimed at keeping indirect costs flat in absolute terms across the group over the next three years. OTT and Changing Viewing Habits VMED competes in a sophisticated TV market and an advanced digital economy. The UK is the fifth-largest communications market in the world and second-largest in Europe. In Fitch's view, the UK and Ireland are progressive markets, likely to continue to lead in terms of changing TV consumption habits. Younger viewers in particular continue to move consumption away from linear viewing to online, on-demand and over the top (OTT) content, while the number of service providers offering triple and quad play is likely to remain high. Fitch believes cable's technology advantage, VMED's access to the widest range of premium content through one access platform and targeted distribution of OTT content like Netflix, to mitigate the near to medium term risks posed by these shifting trends. Competitive, Rational Market Despite a high degree of competition Fitch considers the UK communications market to be rational, particularly the fixed consumer and small business segments important to VMED. Pricing in fixed services and TV has proven resilient, with service providers across the market consistently proving an ability to increase prices. The advanced nature of the market provides a degree of support for pricing in the UK with consumers willing to pay for premium content and high bandwidth. This feature is likely to continue as household device proliferation and demand for video streaming grow. In Fitch's view, the enlarged BT/EE offers a more direct threat to the mobile operators in view of its enhanced position to offer convergent (fixed/mobile) services; and less so to VMED. Used primarily as a churn management tool, VMED has roughly 3 million mobile customers including 1 million converged customers. However, Fitch do not view mobile as a key cash flow or growth driver for VMED. Regulatory Visibility UK regulator, Ofcom, published the initial findings of its digital communications review in February 2016. The regulator identified that VMED's cable coverage will increase to around 60% once Project Lightning is complete, noted cable's technology advantage and that the development of the cable industry has helped drive investment by the incumbent. It did not touch on wholesale cable access. In Fitch's view, this is not a significant near to medium term risk. Pressure is only likely if cable was found to have significant market power. At present it has roughly 20% broadband market share and 45% in footprint. Although the latter is relatively high, Fitch believes the regulator would be concerned with national share and is also likely to view VMED's investments as positive to broadband access generally in the UK. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for VMED include: -- Mid-single revenue growth in 2016; increasing in 2017 and beyond as Project Lightning investment delivers meaningful revenues -- Modest EBITDA margin dilution in 2016 reflecting programming inflation; improving thereafter and exceeding 45% by 2018, given scale economies and the low marginal costs of incremental subscribers from Project Lightning -- Capex/sales ratio remaining above 30% over the next three years due to Lightning -- Operating metrics associated with Lightning in line with the shape of management targets but assumed to be moderately more conservative -- Net debt/EBITDA (including finance leases and vendor finance) to be managed close to 4.9x, with excess cash flows repatriated to LG in the form of payments under a shareholder loan. RATING SENSITIVITIES Future developments that may, individually or collectively, lead to negative rating action include: -- FFO adjusted net leverage that was expected to remain above 5.2x on a sustained basis. -- FFO fixed charge cover that was expected to remain below 2.5x on a sustained basis. -- Material deterioration in underlying FCF generation. Our rating case assumes a pre-distribution FCF margin excluding Lightning investment in the mid-teens. -- Material decline in operational metrics, as evidenced by declining key performance indicators, such as customer penetration, revenue generating units per subscriber and ARPUs. Evidence that investment in Project Lightning is being scaled to proven demand will be an important operating driver. Future developments that may, individually or collectively, lead to positive rating action include: -- A firm commitment by VMED that it is adopting a more conservative financial policy (for example, FFO adjusted net leverage of 4.5x). -- Continued sound operational performance, as evidenced by KPI trends and progress in both investment and consumer take-up with respect to Project Lightning. LIQUIDITY Fitch considers liquidity sound with unrestricted cash and cash equivalents of GBP188m and availability under its GBP675 mil. revolving credit facility of GBP299 mil. as at 1Q16. FULL LIST OF RATING ACTIONS Virgin Media Inc. -- Long-Term IDR: affirmed at 'BB-'; Outlook Stable -- Short-Term IDR: affirmed at 'B' Virgin Media Secured Finance Plc -- Senior secured debt rating: affirmed at 'BB+','RR1' Virgin Media Investment Holdings Limited -- Senior secured debt rating: affirmed at 'BB+','RR1' Virgin Media Finance PLC -- Senior notes affirmed at 'B','RR6' WORLDSPREADS LTD: Sept. 6 Proof of Debt Submission Deadline Set --------------------------------------------------------------- Pursuant to Rule 175 of the Rules that Samantha Bewick and David Standish each of KPMG LLP, the Joint Special Administrators of WorldSpreads Limited propose to make a distribution to creditors of the Company by way of a first and final dividend to the unsecured creditors of the Company. Proofs of debt may be lodged with the Joint Special Administrators at any point up to and including September 6, 2016, that date being the last date for proving. Creditors are, however, asked to lodge their proofs of debt at the earliest possible opportunity. Creditors are encouraged to submit supporting evidence with their proof of debt and may be requested to provide such further details or produce additional documentation or other evidence as the Joint Special Administrators deem appropriate or necessary for the purpose of substantiating the whole or any part of a claim. The Joint Special Administrators intend to declare and make a distribution within the period of two months from September 6, 2016. The Joint Special Administrators have provided information to creditors in the attached covering letter including instructions on how to access the Proof of Debt form. Rule 175(2) of the Rules requires the Joint Special Administrators to state in this notice the value of the prescribed part, which is a certain percentage of the Company's net property which is required to be made available to satisfy certain of the Company's unsecured debts pursuant to section 176A of the Insolvency Act 1986, as applied by regulation 15 of the Investment Bank Special Administration Regulations 2011. The prescribed part is applicable in respect of the Company as there is a qualifying floating charge holder. It has been taken into account when determining the dividend prospects for unsecured creditors. Estimated net property is GBP1.24 million; estimated prescribed part is GBP0.25 million. Any person who requires further information regarding this matter should contact Worldspreads-enquiries@kpmg.co.uk The Administrators and Worldspreads Samantha Rae Bewick -- samantha.bewick@kpmg.co.uk -- and Jane Bronwen Moriarty were appointed as joint special administrators of WorldSpreads on March 18, 2012. Following Ms. Moriarty's retirement from KPMG LLP, David John Standish was appointed joint special administrator by Order of the Court with effect from October 1, 2015. The affairs, business and property of WorldSpreads are being managed by the joint special administrators who contract as agents of WorldSpreads without personal liability. Ms. Bewick is authorized to act as insolvency practitioner by the Institute of Chartered Accountants in England and Wales. Mr. Standish is authorized to act as an insolvency practitioner by the Insolvency Practitioners Association. Worldspreads Limited is authorized and regulated by the Financial Conduct Authority. FCA reference number 230730. Registered in England No. 04898762 Registered office: 15 Canada Square, London, United Kingdom E14 5GL =============== X X X X X X X X =============== * BOOK REVIEW: Transnational Mergers and Acquisitions ----------------------------------------------------- Author: Sarkis J. Khoury Publisher: Beard Books Softcover: 292 pages List Price: $34.95 Review by Gail Owens Hoelscher Order your personal copy today at http://is.gd/hl7cni Transnational Mergers and Acquisitions in the United States will appeal to a wide range of readers. Dr. Khoury's analysis is valuable for managers involved in transnational acquisitions, whether they are acquiring companies or being acquired themselves. At the same time, he provides a comprehensive and large-scale look at the industrial sector of the U.S. economy that proves very useful for policy makers even today. With its nearly 100 tables of data and numerous examples, Khoury provides a wealth of information for business historians and researchers as well. Until the late 1960s, we Americans were confident (some might say smug) in our belief that U.S. direct investment abroad would continue to grow as it had in the 1950s and 1960s, and that we would dominate the other large world economies in foreign investment for some time to come. And then came the 1970s, U.S. investment abroad stood at $78 billion, in contrast to only $13 billion in foreign investment in the U.S. In 1978, however, only eight years later, foreign investment in the U.S. had skyrocketed to nearly #41 billion, about half of it in acquisition of U.S. firms. Foreign acquisitions of U.S. companies grew from 20 in 1970 to 188 in 1978. The tables had turned an Americans were worried. Acquisitions in the banking and insurance sectors were increasing sharply, which in particular alarmed many analysts. Thus, when it was first published in 1980, this book met a growing need for analytical and empirical data on this rapidly increasing flow of foreign investment money into the U.S., much of it in acquisitions. Khoury answers many of the questions arising from the situation as it stood in 1980, many of which are applicable today: What are the motives for transnational acquisitions? How do foreign firms plans, evaluate, and negotiate mergers in the U.S.? What are the effects of these acquisitions on competition, money and capital markets; relative technological position; balance of payments and economic policy in the U.S.? To begin to answer these questions, Khoury researched foreign investment in the U.S. from 1790 to 1979. His historical review includes foreign firms' industry preferences, choice of location in the U.S., and methods for penetrating the U.S. market. He notes the importance of foreign investment to growth in the U.S., particularly until the early 20th century, and that prior to the 1970s, foreign investment had grown steadily throughout U.S. history, with lapses during and after the world wars. Khoury found that rates of return to foreign companies were not excessive. He determined that the effect on the U.S. economy was generally positive and concluded that restricting the inflow of direct and indirect foreign investment would hinder U.S. economic growth both in the short term and long term. Further, he found no compelling reason to restrict the activities of multinational corporations in the U.S. from a policy perspective. Khoury's research broke new ground and provided input for economic policy at just the right time. Sarkis J. Khoury holds a Ph.D. in International Finance from Wharton. He teaches finance and international finance at the University of California, Riverside, and serves as the Executive Director of International Programs at the Anderson Graduate School of Business. ********* 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 2016. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *