/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/180105.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, January 5, 2018, Vol. 19, No. 004 Headlines B U L G A R I A SOFIA TOUR: Halts Operations Following Insolvency G E R M A N Y AIR BERLIN: Thomas Cook to Acquire Subsidiary N E T H E R L A N D S TOCARDO INTERNATIONAL: Intends to Suspend Debt Payments S L O V E N I A NUBA: Bad Bank Extends Deadline for Binding Offers to Jan. 15 U N I T E D K I N G D O M AVENTA CAPITAL: Faces Liquidation, Seeks Approval for CVA COOTES LTD: FP McCann Buys Two Quarries After Administration FLOAT GLASS: Enters Administration, Seeks Potential Buyers MVS GROUP: Delayed Start of Contracts Prompt Administration PETER CONNOLLY: Bought Out of Administration in Pre-Pack Deal STRADA TRADING: To Close 10 Non-Viable Restaurants X X X X X X X X * BOOK REVIEW: Competition, Regulation, and Rationing ********* =============== B U L G A R I A =============== SOFIA TOUR: Halts Operations Following Insolvency ------------------------------------------------- Ivaylo Mihaylov at SeeNews reports that the tourism ministry said on Dec. 19 Bulgarian tour operator Sofia Tour and Holiday ceased operations due to insolvency. According to SeeNews, the tourism ministry quoted the tour operator as saying in a statement, "After we settled old debt owed to our partners, we are falling into insolvency and we are unable to service the upcoming trips." The company has an insurance cover for claims of up to BGN1 million (US$604,400/EUR511,292), SeeNews relays, citing information from the tour operator. ============= G E R M A N Y ============= AIR BERLIN: Thomas Cook to Acquire Subsidiary --------------------------------------------- Klaus Lauer at Reuters reports that collapsed German airline Air Berlin said on Jan. 3 it had sold its subsidiary Air Berlin Aviation GmbH to Thomas Cook Group Airlines PLC, continuing the carve-up of its business. Thomas Cook said the acquisition would give its airline Condor further options for growth, consistent with its plans to grow capacity in the German market to meet increased demand experienced in recent months, Reuters relates. Neither company said how much Thomas Cook was paying, but a person familiar with the deal said the purchase price was a medium single-digit million euro amount, Reuters notes. About Air Berlin In operation since 1978, Air Berlin PLC & Co. Luftverkehrs KG is a global airline carrier that is headquartered in Germany and is the second largest airline in the country. In 2016, Air Berlin operated 139 aircraft with flights to destinations in Germany, Europe, and outside Europe, including the United States, and provided passenger service to 28.9 million passengers. Within the first seven months of 2017, the Debtor carried approximately 13.8 million passengers. It employs approximately 8,481 employees. Air Berlin is a member of the Oneworld alliance, participating with other member airlines in issuing tickets, code-share flights, mileage programs, and other similar services. Air Berlin has racked up losses of about EUR2 billion over the past six years, and has net debt of EUR1.2 billion. On Aug. 15, 2017, Air Berlin applied to the Local District Court of Berlin-Charlottenburg, Insolvency Court for commencement of an insolvency proceeding. On the same day, the German Court opened preliminary insolvency proceedings permitting the Debtor to proceed as a debtor-in-possession, appointed a preliminary custodian to oversee the Debtor during the preliminary insolvency proceedings, and prohibited any new, and stayed any pending, enforcement actions against the Debtor's movable assets. To seek recognition of the German proceedings, representatives of Air Berlin filed a Chapter 15 petition (Bankr. S.D.N.Y. Case No. 17-12282) on Aug. 18, 2017. The Hon. Michael E. Wiles is the case judge. Thomas Winkelmann and Frank Kebekus, as foreign representatives, signed the petition. Madlyn Gleich Primoff, Esq., at Freshfields Bruckhaus Deringer US LLP, is serving as counsel in the U.S. case. ===================== N E T H E R L A N D S ===================== TOCARDO INTERNATIONAL: Intends to Suspend Debt Payments ------------------------------------------------------- Anna Hirtenstein at Bloomberg News reports that Dutch tidal- energy developer Tocardo International BV took a step toward bankruptcy in a document declaring its intention to suspend debt payments. "You can compare it with a Chapter 11 situation in America," Bloomberg quotes Alexander Claus, a trustee appointed by the Dutch court, as saying in a phone interview. "It's a suspension of payment which means we are not allowed to pay the creditors," Mr. Claus, as cited by Bloomberg, said. "It's a way to give the company a chance to make sure that they have a future by freezing the creditors." Mr. Claus said the company must now raise at least EUR800,000 over the next week in order to cover its operating costs for the next three months and keep its business afloat, Bloomberg notes. It is in discussions with private equity firms and existing shareholders such as Tribute Resources Inc., a Canadian energy company, which owns 46.5% of Tocardo, Bloomberg states. The company will meet with its creditors on March 27 when it will present a plan, Bloomberg discloses. If they do not accept it, the Den Oever, Netherlands-based company would then face bankruptcy, according to Bloomberg. It has debts of about EUR2.3 million, Bloomberg relays, citing Mr. Claus. Tocardo makes turbines that generate electricity from the movement of ocean tides and flowing water. =============== S L O V E N I A =============== NUBA: Bad Bank Extends Deadline for Binding Offers to Jan. 15 ------------------------------------------------------------- SeeNews reports that Slovenia's 'bad bank', the Bank Assets Management Company (DUTB), said on Dec. 27 it is extending the deadline for the submission of binding offers for the purchase of EUR24.99 million (US$29.7 million) of claims held against local investment advisor NUBA, svetovanje in investiranje, d.o.o., in bankruptcy. According to SeeNews, DUTB intends to sell off a bundle of claims held against NUBA, including accrued court fees, interest and accessory rights held against the company, it said in a statement. NUBA also has claims against the company NUBA NET d.o.o. from Serbia which has claims against the company Targo Telekom d.o.o. from Serbia, therefore through claims held against the company the bidder gets influence on bankruptcy proceeding of Targo Telekom d.o.o., SeeNews notes. The deadline for the submission of binding offers is January 15, 2018, SeeNews discloses. DUTB was established in March 2013 as a government-owned company with the aim of facilitating the restructuring of local banks facing severe solvency and liquidity problems. =========================== U N I T E D K I N G D O M =========================== AVENTA CAPITAL: Faces Liquidation, Seeks Approval for CVA --------------------------------------------------------- Martin Shipton at WalesOnline reports that people owed money by the company that planned to take forward the controversial Circuit of Wales project have been told it is still on course to be delivered. According to WalesOnline, papers going to a meeting of creditors of the investment firm behind the GBP430 million racetrack near Ebbw Vale say that "significant work" has been put in to get the project "back on track" with the support of "a collection of councils in south Wales". The "virtual meeting" of creditors of Aventa Capital Partners, the investment company wholly owned by Michael Carrick through which the Circuit of Wales was originally intended to be funded, was due to be held on Jan. 4, WalesOnline notes. One of the creditors of the firm has served a winding-up notice on the firm which is under consideration by the High Court in Leeds, WalesOnline discloses. To avoid liquidation, the company is asking creditors to approve a company voluntary arrangement (CVA), under which unsecured creditors would receive 45% of what they are owed in 2020, a further 45% in 2022 and the remaining 10% in 2024, WalesOnline states. The information in the papers going to the creditors' meeting is written by Elizabeth Manley, the joint nominee of Aventa, WalesOnline says. In writing her report, Ms. Manley states that she relied on the director's statement and the financial information it contains in forming her opinion on the proposal, WalesOnline relays. Mr. Carrick has announced previously that if the Circuit of Wales were to go ahead at this stage, Aventa would not be involved, WalesOnline recounts. However, the firm responsible for delivering the project -- Heads of the Valleys Development Company -- could in such circumstances become able to pay what it owes to Aventa over time, in turn allowing Aventa to repay its creditors, WalesOnline notes. The amount owed by Aventa totals GBP2,877,762, WalesOnline discloses. Among the other creditors is City regulator the Financial Conduct Authority (FCA), owed GBP2,247, WalesOnline relays. Aventa is an FCA-regulated company. It is given permission to provide regulated products and services." COOTES LTD: FP McCann Buys Two Quarries After Administration ------------------------------------------------------------ Margaret Canning at Belfast Telegraph reports that building and civil engineering firm FP McCann has acquired two quarries in a GBP2 million deal following the collapse of a smaller business. FP McCann bought Redrock quarry in Co Armagh and Fallaghern quarry in Co Tyrone following the administration of Markethill firm Cootes (Concrete Products) Ltd, which went bust in February owing GBP2.7 million, Belfast Telegraph discloses. According to Belfast Telegraph, in a report filed at Companies House in September, administrators Brian Murphy -- brian.murphy@bdo.co.uk -- and Michael Jennings of business advisory firm BDO said they had been appointed to run the firm by Cootes' lender Clipper Holdings, which had bought loans from First Trust Bank. The report states that GBP1.6 million has now been distributed to secured creditor Clipper following the sale of the quarries and trading assets for GBP2.1 million, Belfast Telegraph relates. Just under 20 staff at Cootes lost their jobs following the administration, Belfast Telegraph notes. The report reveals that a company director had allegedly entered agreements to transfer company assets and quarry extraction rights to a third party, believed to be FP McCann, Belfast Telegraph relays. However, the agreement was not disclosed to the secure lender or to the administrator in early discussions, Belfast Telegraph notes. The third party entered the quarry in February to start work, according to Belfast Telegraph. Court proceedings were then brought by the administrators, resulting in the third party agreeing to vacate the premises, Belfast Telegraph recounts. However, the administrators were not able to continue trading on the site, and all the company's staff were made redundant, Belfast Telegraph states. FLOAT GLASS: Enters Administration, Seeks Potential Buyers ---------------------------------------------------------- Richard Frost at Insider Media reports that Float Glass Industries and its parent, the holding company Wright & Offland Holdings, entered administration on December 21, 2017, with Kerry Bailey -- kerry.bailey@bdo.co.uk -- and Martha Thompson -- martha.thompson@bdo.co.uk -- of BDO appointed joint administrators. In early December 2017, prior to the appointment of joint administrators, the company made a number of redundancies, Insider Media recounts. All remaining members of staff have been paid in full for the month of December, Insider Media notes. The joint administrators are continuing to trade the company with a view to effecting a sale of the business as a going concern, Insider Media discloses. Mr. Bailey, as cited by Insider Media, said: "Unfortunately the economic climate and difficult trading conditions have significantly affected the business. However, we are hopeful of securing a sale and the company will continue to trade whilst this is explored." Float Glass Industries is a GBP25 million-turnover stockist and manufacturer of glass products for the construction industry. The Wythenshawe-based company employed approximately 200 staff. MVS GROUP: Delayed Start of Contracts Prompt Administration ----------------------------------------------------------- Paul Bisping at Business-Sale reports that MVS Group, the mechanical and engineering specialist, have appointed administrators just seven months after the company tried to expand into the North West by opening a Manchester office. The West Midlands-headquartered business saw its mechanical services arm go into administration on Dec. 15 last year and, this year, the parent group has followed suit when Duff and Phelps were appointed as administrators on Dec. 21, Business-Sale relates. According to their most recent accounts, the company suffered from a delayed start to three major contracts which ended up costing them around GBP3.5 million in lost profits and sales, Business-Sale notes. Overall, the company reported a turnover of GBP16 million and a pre-tax profit of GBP824,000 for the year, Business-Sale discloses. It also owed its creditors GBP1.7 million, and reported cash at bank and in hand of GBP190,000, Business-Sale states. The majority of the group's 38 staff have been made redundant following the group's collapse, Business-Sale relays. PETER CONNOLLY: Bought Out of Administration in Pre-Pack Deal ------------------------------------------------------------- Richard Frost at Insider Media reports that a total of 20 jobs have been saved following the acquisition of Peter Connolly Scaffolding out of administration in a pre-pack deal. Peter Connolly Scaffolding approached Begbies Traynor in November 2017 after increased costs put pressure on the company's cash- flow leading it to become lossmaking, Insider Media relates. As a result, the company fell into debt arrears and could not meet its tax obligations, Insider Media notes. Gary Lee -- gary.lee@begbies-traynor.com -- and Dean Watson -- dean.watson@begbies-traynor.com -- of Begbies were formally appointed to Peter Connolly Scaffolding on Dec. 22 and a sale to newly incorporated company PCSL (North West) completed on the same day, Insider Media discloses. Companies House records show that PCSL (North West)'s sole directors are Sean and Peter Connolly, Insider Media states. According to Insider Media, Begbies said that the deal safeguards the jobs of all 20 employees and allows the business to complete all current projects and obligations. Peter Connolly Scaffolding is an Irlam-based scaffolding company. STRADA TRADING: To Close 10 Non-Viable Restaurants -------------------------------------------------- Bradley Gerrard at The Telegraph reports that Italian food chain Strada Trading Limited has moved to close more than a third of its restaurants after blaming the rising costs of running its eateries. According to The Telegraph, the company said it had conducted a comprehensive review of its 26-strong estate and that it was closing 10 sites which were "no longer viable as Stradas in the increasingly competitive market", pointing to rising rents, wages and business rates as cost burdens which had become difficult to overcome. A spokesman said it planned to convert three of the sites into a new format -- most likely Coppa Club -- but would look to sell the other seven, The Telegraph relates. The Stradas in Blackheath, Camden, Cardiff, Clapham, Cobham, Harpenden, Newbury and York closed in December. Horsham and the Mailbox site in Birmingham close this month, The Telegraph discloses. This will leave 16 Strada restaurants although two of these are operated under license by Las Iguanas owner Casual Dining Group, The Telegraph notes. =============== X X X X X X X X =============== * BOOK REVIEW: Competition, Regulation, and Rationing ----------------------------------------------------- Author: Greenberg, Warren Publisher: Beard Group Paperback: 188 pages List Price: $34.95 Review by: Gail Hoelscher Order a personal copy today at http://is.gd/3sdhDD This book is fundamental reading for those involved directly in health care as well as those interested and concerned about the past, present and future of the health care industry in the United States. Originally published in 1990, Warren Greenberg examined the U.S. health care sector over the period 1960-1988 using standard industrial organization economic analysis. He looked at regulation and competition, antitrust elements, technology, and rationing, as well as pricing behavior and advertising. Although some experts claimed the health care industry to be unique and outside the purview of such analysis, Dr. Greenberg demonstrated that all industries differ in their own ways, but nonetheless can be analyzed using these techniques. Dr. Greenberg's first goal in writing this book was to educate the layperson about the economics of the health care industry. Economists have pointed out two major potential differences between health care and other sectors of the economy: uncertainty of demand and imperfect and imbalanced information on the part of providers and consumers. Dr. Greenberg agrees with the first and less so with the second. Obviously, the timing, extent and length of future illness and the demand for medical services are impossible to know. A good deal of the consumer's uncertainty is smoothed over by health insurance. The uncertainty for insurance companies in the sector is somewhat different than that for other industries: while consumers commonly seek more health care than they would if they were not covered, it is rare for someone to burn down his own home just to collect the insurance. With regard to the imbalance in information, physicians do indeed know more about a particular illness and treatment than the average potential patient, but Dr. Greenberg asks how that differs from plumbing, law and accounting! Dr. Greenberg identified and described the industries that make up the health care sector: medical services, hospitals, insurance, and long-term care. He explored market failures and imperfections in each and detailed some of the measures government has taken to correct these imperfections. For example, he described the efforts of the federal government to force competition in the medical services field and how barriers to entry imposed by physicians' lobbies to limit the number of physicians in practice were lifted, physicians were permitted to advertise, and restrictions on the services of nonphysicians were eased. He recounted efforts to require hospitals to disclose information on mortality rates, infections, and medical complications. Dr. Greenberg's second goal in writing the book was to consider policy options. Although he claims skepticism of regulation (after working for the federal government), he believes that ongoing efforts to devise a more efficient and equitable health care system will require more competition, regulation, and rationing. He examined the Canadian, British and Dutch systems, so fascinating and different from ours, and found the Dutch system the least regulatory and most equitable. This book is a primer on the health care industry. Dr. Greenberg explains economic terms in a straightforward and clear way without condescension and takes the reader way beyond Economics 101. Although the sector has changed significantly since this book was published, Dr. Greenberg's analysis of the past offers valuable insight into why our system evolved the way it did and what direction it might take in future. ********* 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. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2018. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *