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       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, August 29, 2019, Vol. 20, No. 173

                           Headlines



A R M E N I A

ARMENIA: Moody's Upgrades Issuer Rating to Ba3, Outlook Stable


K A Z A K H S T A N

KAZAGRO NAT'L: Moody's Alters Outlook on Ba1 Issuer Rating to Pos.


R U S S I A

EVRAZ GROUP: Fitch Affirms Then Withdraws BB+ IDR
KEMSOCINBANK JSC: Liabilities Exceed Assets, Assessment Shows


S P A I N

EL CORTE: Fitch Upgrades LT IDR to BB+, Outlook Positive


T U R K E Y

DOGUS HOLDING: To Sell More Assets Under Debt Restructuring Deal


U N I T E D   K I N G D O M

BURY FC: Faces Expulsion After C&N Sporting Risk Withdraws Bid
ELLI INVESTMENTS: Moody's Withdraws Caa3 CFR for Business Reasons
FINSBURY SQUARE 2016-2: Fitch Affirms CCCsf Rating on Cl. E Notes
HAWKSMOOR MORTGAGE 2019-1: Moody's Rates GBP42.4MM Cl. F Notes Caa2
LINKS OF LONDON: FF Group Explores Sale Options for Subsidiary

LISTEN LTD: Enters Administration, 106 Jobs Affected
THOMAS COOK: Fosun to Take Over Business Under Rescue Deal

                           - - - - -


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A R M E N I A
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ARMENIA: Moody's Upgrades Issuer Rating to Ba3, Outlook Stable
--------------------------------------------------------------
Moody's Investors Service upgraded the Government of Armenia's
local and foreign currency long-term issuer and foreign currency
senior unsecured debt ratings to Ba3 from B1. The outlook has been
changed to stable from positive.

The decision to upgrade the rating is driven by Moody's assessment
that the increasing diversification of growth drivers, coupled with
a lengthening track record of stabilising macroeconomic policy,
raises Armenia's economic resiliency. Ongoing measures to
strengthen government finances will also likely gradually restore
some of the sovereign's fiscal strength that eroded over 2014-17.

The stable outlook reflects balanced risks. On the upside, the
strengthened commitment to and ongoing implementation of reforms,
supported by development partners, have the potential to raise
Armenia's institutional credibility and government effectiveness
over time. On the downside, notwithstanding increasing economic
resilience and a strengthening government balance sheet, still
limited buffers continue to expose Armenia's credit profile to
external shocks.

Moody's has concurrently raised Armenia's long-term local currency
bond and deposit ceilings to Baa2 from Baa3. The long-term foreign
currency bond ceiling and long-term foreign currency deposit
ceiling have also been raised to Ba1 from Ba2 and B1 from B2,
respectively. The short-term foreign currency bond and deposit
ceilings remain unchanged at Not Prime. These ceilings typically
act as a cap on the ratings that can be assigned to the obligations
of other entities domiciled in the country.

RATINGS RATIONALE

RATIONALE FOR RATING UPGRADE TO Ba3

DIVERSIFICATION OF GROWTH DRIVERS RAISES ECONOMIC RESILIENCE

Armenia's economic growth drivers have become increasingly diverse,
which contributes to strengthen the economy's resilience to
shocks.

Moody's expects real GDP growth in Armenia to remain high over the
medium term, hovering around 5.5-6% over the next few years. The
sectors that have contributed to 2018 growth will continue expand
solidly, such as tourism, information technology (IT), and light
manufacturing including of textiles. In particular, ongoing
investments in hotels will raise tourism capacity, new textile
factories are being built, and the number of IT sector companies
and projects are growing rapidly. The nature and breadth of these
growth drivers mark a departure from the traditional sectors of
mining and agriculture that have led economic activity over past
two decades.

Among the growth sectors, Moody's sees the IT sector, which is
increasingly geared towards research and development of high and
emerging technologies, both in software design and hardware
engineering, and servicing a wide region as a hub, as providing a
strong foundation for the development of a skills- and
knowledge-based economy. IT companies are attracted by Armenia's
expanding pool of technology specialists and entrepreneurs, aided
by the partnership of many of these companies with universities and
high schools and increasing availability of private funding across
different stages for startups, which create an ecosystem conducive
for growth. Further development of this sector is likely to
contribute to higher value-added activities and incomes over time,
raising Armenia's economic strength.

Moreover, Moody's expects that the decline in growth volatility
will persist compared to the first half of the decade when economic
activity was largely reliant on mining, agriculture and remittance
inflows. This is in part the result of improved fiscal and monetary
management, including through adherence to fiscal targets and a
credible fiscal rule, effective use of flexible exchange rates, a
transparent and effective inflation targeting regime, and
pre-emptive supervisory policies for the banking sector.

ONGOING MEASURES TO STRENGTHEN GOVERNMENT FINANCES WILL GRADUALLY
RESTORE SOME OF THE SOVEREIGN'S FISCAL STRENGTH

Moody's expects Armenia's government debt burden to decline
steadily from currently moderate levels of around 51% of GDP as of
the end of 2018.

Government revenue increased by 25% year-on-year over the first
half of 2019, the fastest growth over the past decade, in part
boosted by the increased digitisation of invoicing and tax
collection, which enhanced the transparency of taxpayer revenue and
raised revenue efficiency. While Moody's expects the rate of
increase to slow, a range of measures are likely to maintain
revenue growth at a robust pace over the next few years.

The government recently legislated changes to the tax code in June,
which will be effective January 2020, aimed at lowering the tax
burden for businesses and reducing tax evasion. Key changes include
a reduction in the corporate income tax rate and harmonisation of
the dividend tax rate for both residents and non-residents, an
increase in the income tax threshold for entrepreneurs and small
businesses, and the introduction of a flat income tax rate at the
lowest marginal rate currently, offset by higher excise and
gambling taxes and the removal of selected exemptions. Moody's
expects the changes to have a modest positive impact on investment
and spending given the lower tax burden and be largely revenue
neutral in the near term. Over the medium term, a simpler tax code
will foster tax adherence.

The government is also planning to roll out an automatic income
filing system over the next year. Moreover, it is introducing
property tax reforms, which involves changing the methodology to
calculate the cadastral value of real estate in order to reflect
market valuation, targeting implementation by 2021. Moody's expects
the automatic income filing system to further reduce the scope for
tax evasion, while the property tax reform has the potential to
raise government revenue longer term.

The revenue enhancements are supported by the government's
adherence to its fiscal rule, which came into effect in 2018 and
limits the growth of government expenditure while requiring a debt
reduction plan at current debt levels exceeding 50% of GDP.

Moody's expects the government's fiscal deficit to average around
1.5% over 2019-21, which will allow the debt burden to fall below
50% of GDP over 2019-20 and remain on a downward trajectory,
towards 45% of GDP by 2021-22.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's view that risks to Armenia's
credit profile are broadly balanced.

On the upside, the strengthened commitment to and ongoing
implementation of reforms have the potential to raise Armenia's
institutional credibility and government effectiveness. The new
government that was elected in December 2018 is focusing on
reducing corruption, increasing transparency, and reforming the
judiciary as its top priorities over its five-year term. It is
aiming to institutionalise its control of corruption agenda by
setting up an anti-corruption tribunal and reforming the registry
of beneficial ownership for public officials, and is receiving
technical assistance from the International Monetary Fund under its
new Standby Arrangement and the European Union (EU) under the
EU-Armenia Comprehensive and Enhanced Partnership Agreement, with
associated implementation timelines. Further institutional reforms
are also in progress, including in public sector administration,
sectoral regulatory policies, and education. The government has
already streamlined the number of ministries to reduce overlaps and
increase efficiency.

If effective, these reforms will raise Armenia's institutional
strength further. However, control of corruption and judicial
reforms are also challenging for any government to implement given
vested interests, and tangible effects are likely to take time to
materialise.

On the downside, notwithstanding increasing economic resilience and
a strengthening government balance sheet, still limited buffers
continue to expose Armenia's credit profile to external
developments. In particular, more than 80% of government debt is
denominated in foreign currencies, the level of foreign direct
investment is also low as share of GDP compared to regional peers,
and dollarisation in the banking system remains high, with around
60% of deposits denominated in foreign currencies. This leaves
Armenia reliant on more volatile portfolio flows to fund its
structural current account deficits, and the government debt burden
and banking sector exposed to sharp local currency depreciations
that may arise from external imbalances.

WHAT COULD CHANGE THE RATING UP

Upward pressure on Armenia's rating would stem from further reforms
that were to raise economic competitiveness and institutional
credibility and effectiveness beyond Moody's current expectations.
This would in part materialise through greater levels of private
investment and increased transparency of and trust in institutions,
including in the judiciary. A structural narrowing of the current
account deficit and improvement in Armenia's external position,
including through higher competitiveness and foreign direct
investment, would also contribute to upward pressure on the rating.
An increase in government revenue arising from fiscal reforms
beyond Moody's expectations, that would support the government's
debt carrying capacity, would additionally put upward pressure on
the rating.

WHAT COULD CHANGE THE RATING DOWN

Downward pressure on Armenia's rating would emerge if there was a
loss of reform momentum, which would likely transpire through
weaker confidence in institutions and fiscal slippage removing
prospects that the government debt burden will decline over the
medium term. An increase in external vulnerability risk, such as a
sustained increase in current account deficits that resulted in
declining foreign exchange reserve adequacy, would additionally
contribute to downward pressure on the rating. An escalation of the
conflict with Azerbaijan over the Nagorno-Karabakh territory would
also put negative pressure on the rating.

GDP per capita (PPP basis, US$): 10,176 (2018 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 5.2% (2018 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 1.8% (2018 Actual)

Gen. Gov. Financial Balance/GDP: -1.6% (2018 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -9.4% (2018 Actual) (also known as
External Balance)

External debt/GDP: 87.8% (2018 Actual)

Level of economic development: Moderate level of economic
resilience

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On August 22, 2019, a rating committee was called to discuss the
rating of the Armenia, Government of. The main points raised during
the discussion were: The issuer's economic fundamentals, including
its economic strength, have materially increased. Other views
raised included: The issuer's institutional strength/ framework,
have not materially changed. The issuer's fiscal or financial
strength, including its debt profile, has not materially changed.
The issuer's susceptibility to event risks has not materially
changed.

The principal methodology used in these ratings was Sovereign Bond
Ratings published in November 2018.



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K A Z A K H S T A N
===================

KAZAGRO NAT'L: Moody's Alters Outlook on Ba1 Issuer Rating to Pos.
------------------------------------------------------------------
Moody's Investors Service changed the outlook on the Baa3 long-term
local and foreign currency issuer ratings of Baiterek National
Management Holding, JSC and the Ba1 long-term local and foreign
currency issuer ratings of KazAgro National Management Holding JSC
to positive from stable. The two issuers' overall outlooks also
changed to positive from stable. At the same time, Moody's affirmed
all ratings of these entities.

These rating actions follow the improvement of Kazakhstan's credit
profile as captured by Moody's change of outlook to positive from
stable on Kazakhstan's government bond rating (Baa3) on August 22,
2019.

RATINGS RATIONALE

The outlook change and the affirmation of ratings of Baiterek and
KazAgro reflect the very strong institutional and financial links
with the Government of Kazakhstan. The two companies have an
important role in promoting Kazakhstan's economic development and
serve as channels for government funding under key government
programmes. The companies are highly integrated with the
government, through its 100% ownership of the holding companies and
its involvement in Baiterek's and KazAgro's business activities,
including control over their financial performance and approval of
their key metrics.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The ratings could be upgraded if the Kazakhstan government's
ratings were upgraded, provided there is no weakening of
institutional and financial links between the government and the
two holding companies.

Moody's does not expect a downgrade of the ratings given the
positive outlooks. The outlook could revert to stable from positive
following respective action on the sovereign. A downgrade would
likely follow: (1) a downgrade of the sovereign's ratings; (2) a
lower likelihood of government support; or (3) weaker government
controls over the holding companies' financials and strategic
performance.

LIST OF AFFECTED RATINGS

Issuer: Baiterek National Management Holding, JSC

Affirmations:

LT Issuer Ratings, Affirmed Baa3, Outlook Changed to Positive from
Stable

ST Issuer Ratings, Affirmed P-3

NSR LT Issuer Rating, Affirmed Aaa.kz

Outlook Action:

Outlook, Changed to Positive from Stable

Issuer: KazAgro National Management Holding JSC

Affirmations:

LT Issuer Ratings, Affirmed Ba1, Outlook Changed to Positive from
Stable

ST Issuer Ratings, Affirmed NP

NSR LT Issuer Rating, Affirmed Aa2.kz

Outlook Action:

Outlook, Changed to Positive from Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was
Government-Related Issuers published in June 2018.



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R U S S I A
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EVRAZ GROUP: Fitch Affirms Then Withdraws BB+ IDR
-------------------------------------------------
Fitch Ratings affirmed Russian-based steel manufacturer Evraz Group
SA's Long-Term Issuer Default Rating at 'BB+' with a Stable Outlook
and Short-Term IDR at 'B', and simultaneously withdrawn the
ratings.

The ratings of Evraz Group SA's parent company, Evraz plc, are
unaffected by the withdrawal. These are Long-Term IDR of 'BB+' with
Stable Outlook, senior unsecured debt instrument rating of 'BB+'
and Short-Term IDR of 'B'.

Fitch has chosen to withdraw the ratings of Evraz Group SA for
commercial reasons. It will no longer provide ratings or analytical
coverage for the company. Earlier this year all outstanding
Eurobonds were transferred from Evraz Group SA to Evraz plc under
issuer substitution clause.

The ratings were withdrawn with the following reason: For
Commercial Purposes.

KEMSOCINBANK JSC: Liabilities Exceed Assets, Assessment Shows
-------------------------------------------------------------
The provisional administration to manage JSC Kemsocinbank
(hereinafter, the Bank), appointed by virtue of Bank of Russia
Order No. OD-1225, dated May 31, 2019, following the banking
license revocation, established in the course of the inspection
that the Bank's officials had conducted operations to withdraw the
Bank's assets through loans granted to legal entities and a real
estate disposal transaction concluded with an individual of dubious
solvency or knowingly unable to fulfill their obligations to the
Bank.

According to the provisional administration, the Bank's assets do
not exceed RUR1.73 billion, while its liabilities to creditors
total RUR1.96 billion.

On July 29, 2019, the Arbitration Court of the Kemerovo Region
declared the Bank bankrupt.  The State Corporation Deposit
Insurance Agency was appointed as receiver.

The Bank of Russia submitted the information on the financial
transactions suspected of being criminal offences that had been
conducted by the Bank's officials to the Prosecutor General's
Office of the Russian Federation and the Investigative Committee of
the Ministry of Internal Affairs of the Russian Federation for
consideration and procedural decision-making.




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S P A I N
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EL CORTE: Fitch Upgrades LT IDR to BB+, Outlook Positive
--------------------------------------------------------
Fitch Ratings upgraded El Corte Ingles SA's Long-Term Issuer
Default Rating to 'BB+' from 'BB'. The Outlook on the IDR remains
Positive. ECI's senior unsecured rating has been affirmed at 'BB+'.


The upgrade reflects ECI's deleveraging in financial year ended
February 2019 (FY19), aided by asset disposals and stable operating
performance. Fitch expects further declines in funds from
operations (FFO) adjusted net leverage, driven by additional
disposals planned, coupled with further improvement in free cash
flow and debt repayments. Depending on the pace and magnitude of
deleveraging, ECI's credit profile could be consistent with
investment grade over the next six to 18 months, hence the Positive
Outlook.

The affirmation of the senior unsecured rating at 'BB+' reflects
its view that ECI's large unencumbered asset base - a reservoir of
value that enhances financial flexibility - is now fully
encapsulated in ECI's IDR, rather than in a single-notch uplift to
the unsecured debt.

KEY RATING DRIVERS

Strong Deleveraging Path: Fitch sees FFO adjusted net leverage
trending towards 3.6x by FY21 and 3.3x by FY22. These metrics would
be consistent with an investment-grade rating. The achievement of
this metric is conditional on ECI maintaining a conservative
financial policy focused on debt repayment, complemented by
recurring positive FCF generation (after dividends) and the sale of
additional non-core assets.

Valuable Real Estate Portfolio: ECI owns a large real estate
portfolio, whose value has been appraised at EUR17 billion by
Tinsa. Fitch views this portfolio as an important source of
financial and operational flexibility, as assets can be sold or
used as collateral in case of need. Any further sizeable debt
reduction from the sale of parts of this real estate, or non-core
businesses, could help ECI rapidly reach target leverage metrics
that are consistent with an investment-grade rating, instead of
relying on organic deleveraging.

Since 2018 ECI has accelerated its real estate management policy
with the aim to achieve a more efficient structure through better
use of its retail space. During the last three years ECI has
obtained over EUR600 million from monetising non-core real estate
assets, which has enabled it to reduce debt.

Largest Department Store in Europe: ECI derives 95% of its revenue
from Spain, where it operates the only large department store chain
in Spain. It enjoys a privileged position in the country due to its
shopping proposition of a wide product and service offering,
long-established brand, consumer loyalty and the prime location of
several of its stores. ECI is present in food retail though
hypermarkets integrated within its department stores and proximity
stores. ECI's large scale allows it to profitably commercialise
financial products to its clients, including consumer loans to help
clients finance their purchases sold through Financiera El Corte
Ingles, a 49%-owned JV with Banco Santander (A-/Stable).

Moreover, the company operates the leading retail and B2B travel
agency in Spain, as well as a small but highly profitable Insurance
business. It also owns a small IT services unit, which it is trying
to divest.

Adequate Defence against Retail Challenges: Changes in consumer
habits have been particularly severe on the retail industry (and
more specifically fashion), mainly due to growth of the online
channel, with aggressive strategies from pure online operators
leading to a more challenging competitive environment. Despite
disruptive trends, Fitch views ECI's strategy as adequate for
fending off competition, due to a clear commitment to digital
transformation and omni-channel capabilities, which is critical in
positioning the business for the future. ECI also benefits from a
milder penetration of e-commerce in Spain, although the bridge with
other developed markets could close rapidly.

Low but Resilient Profitability: ECI's ability to maintain
profitability amid the current competitive retail environment is a
positive factor, in Fitch's view. ECI still shows structurally low
margins - EBITDAR margins at around 8% - relative to that of rated
peers from other regions, although this is partly attributable to
ECI's exposure to food retail and the travel agency sector.
Nevertheless, ECI has the ability to continue to marginally expand
its margins by improving its cost structure, while its peers
continue to see a negative and more volatile profitability trend.
Fitch expects the company to benefit from certain efficiency
measures being put in place, balanced by expenses incurred to boost
its price competitiveness.

Solid Financial Flexibility: Fitch expects ECI's financial policy
to remain conservative, with a focus on deleveraging. This should
be driven by selective disposals of non-core assets and improving
FFO, combined with moderate capex and dividends. ECI maintains
sound financial flexibility, aided by comfortable liquidity, access
to a EUR1.15 billion revolving credit facility (RCF) and a FFO
fixed-charge coverage trending to 4.1x by FY21 (FY19: 3.3x), which
Fitch considers as solid for the rating. ECI's access to
diversified funding and a large and fully unencumbered real estate
portfolio also enhance the company's chances of successful
refinancing, even in less benign conditions.

Still Room for Governance Improvements: In recent years ECI has
progressively improved its corporate governance, although there is
still room for further improvement towards best practices due to
limited oversight by independent Board Directors and below-standard
information disclosures. Recent improvements include the
appointment of a new independent Director and of high-level
executives with industry expertise and the introduction of
semi-annual information disclosures.

DERIVATION SUMMARY

ECI's 'BB+' IDR is lower than that of US peers such as Nordstrom,
Inc (BBB+/Stable), Macy's Inc. (BBB/Stable), Dillard's, Inc
(BBB-/Stable) as well as UK-based Marks and Spencer Group plc
(BBB-/Stable). The main factors behind the rating differential are
ECI's lower profitability and higher leverage. However, ECI
benefits from lower volatility, due to its unrivalled market
positioning in Spain and a more gradual penetration of e-commerce
in this market. It also benefits from positive FCF generation due
to tight control over capex and low dividends. This, combined with
asset disposals, has allowed the company to swiftly deleverage in
recent years, a trend which Fitch expects to continue over the next
four years.

ECI's IDR compares well with that of JC Penney Inc (B-/Stable),
which has lower scale and has seen LfL sales decline and
experienced margin deterioration and growing leverage.

In addition to the disruptive incursion of pure online operators,
the US and UK markets have been facing other competitive threats.
In these countries consumers are seeking value-oriented retailers,
and spending is moving toward fast fashion retailers. This has led
to high volatility in their revenues and profits.

Compared with its peers, ECI benefits from the flexibility provided
by owning most of its real estate assets (similar to Dillard's),
with an appraisal value representing a loan-to-value of around 20%.
This ownership provides ECI with strong financial and operational
flexibility and underpins its solvency through the cycle.

KEY ASSUMPTIONS

  - LfL sales growing below inflation and nominal GDP growth; 0.4%
revenue CAGR over FY20-FY23 vs. 1.2% over FY17-FY19

  - EBITDA margin trending progressively to 7.2%

  - Capex at around 2.6% of revenue, primarily related to IT and
store refurbishment

  - EUR75 million in dividends in FY20 and then trending towards
EUR100 million by FY23, albeit dependent on future leverage

  - Working capital average annual cash outflows of around EUR40
million, mainly from inventory build-up on the back of expected
growth in e-commerce platforms and/or tighter supplier payment
days

  - EUR320 million proceeds from assets sales in FY20 and then
trending towards EUR100 million by FY23

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action

  - Steady organic sales growth and profit gains leading to FFO
margin sustainably above 7% (FY19: 4.5%) or continuing positive
FCF

  - FFO adjusted leverage sustainably below 3.8x on a gross basis
and below 3.3x on a net basis (FY19: 4.7x and 4.5x)

  - FFO fixed charge cover sustainably above 4.0x (FY19: 3.3x)

  - Maintenance of a solid strategy execution along with a
conservative financial policy, continuous strengthening of
corporate governance and enhanced information disclosures

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  - Deterioration in organic sales growth and profit margins with
FCF trending toward neutral to negative levels

  - FFO adjusted leverage sustainably above 4.3x on a gross basis
and above 3.8x on a net basis

  - Volatile FCF margin not compensated with asset disposals or
other forms of external support, leading to delays in deleveraging

  - FFO fixed-charge cover below 3.5x

  - FFO margin sustainably below 5%

Developments That May, Individually or Collectively, Lead to the
Outlook being Revised to Stable

  - FFO adjusted gross leverage within 3.8x-4.3x

  - FFO fixed charge cover within 3.5x-4.0x

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: At FYE19 ECI had EUR249 million in
Fitch-adjusted readily available cash and EUR1.15 billion in
undrawn committed bank facilities maturing in 2022. These sources
comfortably covered short-term debt maturities of EUR836 million.
Moreover, Fitch expects ECI to generate positive FCF during FY20.

During FY19 ECI improved its liquidity significantly, by
lengthening the maturity of its debt and repaying EUR450 million.
ECI also issued a EUR690 million bond maturing in 2024 and reduced
the amount of its short-term employee promissory notes by EUR860
million.



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T U R K E Y
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DOGUS HOLDING: To Sell More Assets Under Debt Restructuring Deal
----------------------------------------------------------------
Ercan Ersoy at Bloomberg News reports that Turkish billionaire
Ferit Sahenk is ready to sell more of his assets as part of an
ongoing effort to satisfy a debt-restructuring deal struck with
banks earlier this year.

Sahenk's Dogus Holding AS could dispose of investments worth as
much as EUR800 million (US$890 million), he said in an interview in
Istanbul late on Aug. 26, Bloomberg relates.  

According to Bloomberg, he said Dogus, which has interests spanning
restaurants, entertainment outlets, marinas and car-distribution
businesses, wants to cut its EUR2.3 billion of restructured debt to
below EUR2 billion this year and to EUR1.5 billion by the end of
2020 through the sales.

Mr. Sahenk, as cited by Bloomberg, said the steps could include an
initial public offering of Dogus's hospitality businesses.

Like many other Turkish companies, the owner of the Nusr-Et
steakhouse, popularly known by its founder chef's meme Salt Bae, is
struggling to repay foreign-exchange loans after the lira plunged,
Bloomberg discloses.  Dogus has been selling hotels and stakes in
restaurants, which Moody's Investors Service said in May amount to
about EUR625 million, to honor the restructuring deal with lenders,
Bloomberg notes.

Husnu Akhan, vice chairman of the group, in a separate interview,
said Dogus Holding signed the loan-restructuring deal with 12 banks
in Turkey, two of which are international lenders, Bloomberg
relays.  He said the restructured loan is a six-year facility,
according to Bloomberg.




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U N I T E D   K I N G D O M
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BURY FC: Faces Expulsion After C&N Sporting Risk Withdraws Bid
--------------------------------------------------------------
Simon Evans at Reuters reports that Bury, one of English football's
oldest clubs, were expelled from the Football League (EFL) on Aug.
27 after failing to resolve their financial problems or find a new
buyer, the EFL said in a statement.

According to Reuters, C&N Sporting Risk pulled out of its proposed
takeover of the League One (third-tier) side just a few hours
before the deadline to meet the league's requirements.

Bury joined the Football League in 1894, nine years after they were
founded, and won the FA Cup in 1900 and 1903, Reuters recounts.  It
is the first team to be expelled since Maidstone in 1992, Reuters
notes.

Multiple media reports suggested at least three late offers had
been submitted to buy Bury but the league, which had already
suspended five scheduled fixtures for the club this season, decided
to end their participation in the league, Reuters relates.

"Having fully considered all available options, including a number
of late expressions of interest provided to the EFL, the EFL Board
has unanimously determined with enormous regret that Bury's
membership be withdrawn," Reuters quotes the statement as saying.

Bury owner Steve Dale had informed the EFL last weekend that he had
accepted an offer from C&N Sporting Risk, Reuters recounts.

C&N, as cited by Reuters, said its withdrawal came after conducting
due diligence.

According to Reuters, Debbie Jevans, EFL Executive Chair, said: "No
one wanted to be in this position but following repeated missed
deadlines, the suspension of five League fixtures, in addition to
not receiving the evidence we required in regard to financial
commitments and a possible takeover not materializing; the EFL
Board has been forced to take the most difficult of decisions."


ELLI INVESTMENTS: Moody's Withdraws Caa3 CFR for Business Reasons
-----------------------------------------------------------------
Moody's Investors Service withdrawn the ratings of Elli Investments
Limited including it's outlook.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

Elli Investments Limited is a leading provider of health and social
care services in the UK.

LIST OF AFFECTED RATINGS

Withdrawals:

Issuer: Elli Investments Limited

Probability of Default Rating, Withdrawn, previously rated Caa3-PD
/LD

Corporate Family Rating, Withdrawn, previously rated Caa3

Senior Unsecured Regular Bond/Debenture, Withdrawn, previously
rated C

Outlook Actions:

Issuer: Elli Investments Limited

Outlook, Changed To Rating Withdrawn From Negative

FINSBURY SQUARE 2016-2: Fitch Affirms CCCsf Rating on Cl. E Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed Finsbury Square 2016-2 plc notes as
follows:

Class A (ISIN: XS1495599570): affirmed at 'AAAsf'; Outlook Stable

Class B (ISIN: XS1495603273): affirmed at 'AAAsf'; Outlook Stable

Class C (ISIN: XS1495603513): affirmed at 'A+sf'; Outlook Stable

Class D (ISIN: XS1495603604): affirmed at 'A+sf'; Outlook Stable

Class E (ISIN: XS1495603786): affirmed at 'CCCsf'; revised Recovery
Estimate to 95% from 100%

This transaction is a securitisation of owner-occupied (OO) and
buy-to-let (BTL) mortgages originated by Kensington Mortgage
Company in the UK.

KEY RATING DRIVERS

Increase in Credit Enhancement

Credit enhancement (CE) available to the class A to D notes has
increased over the 12 months, as a result of high prepayments,
which peaked at 78.3% in August 2018. This in turn has led to
substantial deleveraging of the transaction.

Weakening Asset Performance

The transaction's late-stage arrears have been on an increasing
trend since 3Q18 (peaking at 3.4% in June 2019), performing
slightly worse than peer transactions. Prepayments levels are in a
decreasing trend since reaching the peak of reversion dates (June
2018), as most loans that were paying fixed rate have now reverted
to floating rate or are re-fixed (1.9% of original portfolio
balance) as product switches are allowed.

Payment Interruption Risk Mitigated

The transaction is able to fund a liquidity reserve fund when the
general reserve fund is drawn below a specific threshold. Liquidity
support is provided to the class A and B notes and senior fees
through a dedicated liquidity reserve, which Fitch considers is of
a sufficient size to mitigate payment interruption risk. Fitch sees
payment interruption risk as immaterial for the class C and D
notes' 'A+sf' rating, as interest on these notes can be deferred,
unless the tranche becomes the most senior in the structure.

Fitch does not consider counterparty remedial actions and
structural features as sufficient to merit an upgrade of the class
C and D notes. As the cash reserve is also available to cover
credit losses and the transaction does not have a long performance
history, the rating for class C and D note is currently capped at
'A+sf'.

VARIATIONS FROM CRITERIA

Self-employed Borrowers

Kensington may lend to self-employed individuals with only one
year's income verification completed or the latest year's income if
profit is rising. Fitch believes that this practice is less
conservative compared with other prime lenders. For OO mortgages,
Fitch applied an increase of 30% to foreclosure frequency for
self-employed borrowers with verified income instead of the 20%
specified in criteria.

RATING SENSITIVITIES

The discontinuation of LIBOR by December 2021 could introduce basis
risk as the whole pool will revert to a LIBOR-linked product and
the replacement for LIBOR in respect of the loans remains
uncertain, creating a mismatch between assets and liabilities
index. Additionally, borrowers are also exposed to increases in
market interest rates, which would put pressure on affordability
and potentially cause deterioration of asset performance. A
material increase in defaults and widening losses in excess of
Fitch's expectations may have a negative impact on the notes.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. There were no findings that affected the
rating analysis. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Prior to the transaction closing, Fitch reviewed the results of a
third-party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.

Prior to the transaction closing, Fitch conducted a review of a
small targeted sample of Kensington's origination files and found
the information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset
portfolio.

Overall, Fitch's assessment of the information relied upon for the
agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.

HAWKSMOOR MORTGAGE 2019-1: Moody's Rates GBP42.4MM Cl. F Notes Caa2
-------------------------------------------------------------------
Moody's Investors Service assigned definitive long-term credit
ratings to Notes issued by Hawksmoor Mortgage Funding 2019-1 plc:

GBP1935.2M Class A Mortgage Backed Floating Rate Notes due May
2053, Definitive Rating Assigned Aaa (sf)

GBP141.2M Class B Mortgage Backed Floating Rate Notes due May 2053,
Definitive Rating Assigned Aa3 (sf)

GBP64.7M Class C Mortgage Backed Floating Rate Notes due May 2053,
Definitive Rating Assigned Baa1 (sf)

GBP21.2M Class D Mortgage Backed Floating Rate Notes due May 2053,
Definitive Rating Assigned Ba1 (sf)

GBP42.4M Class E Mortgage Backed Floating Rate Notes due May 2053,
Definitive Rating Assigned B2 (sf)

GBP42.4M Class F Mortgage Backed Floating Rate Notes due May 2053,
Definitive Rating Assigned Caa2 (sf)

GBP23.5M Class G Mortgage Backed Floating Rate Notes due May 2053,
Definitive Rating Assigned Ca (sf)

Moody's has not assigned ratings to the GBP 82.4M Class H Mortgage
Backed Zero Coupon Notes due May 2053, GBP 28.2M Class X Floating
Rate Note due May 2053, the GBP 15.3M Class Z1 Floating Rate Note
due May 2053 and GBP 9.4M Class Z2 Zero Coupon Notes due May 2053,
the GBP 126.6M VRR Loan Note or the S and R Certificates.

The portfolio backing this transaction consists of UK
Non-conforming residential mortgage loans originated, among others,
by GE Money Home Lending Limited, GE Money Mortgages Limited and
IGroup2 Limited. The legal title to the mortgages will be held by
Kensington Mortgage Company Limited (not rated).

On the closing date Clearwater Seller Limited (not rated) sold the
portfolio to Hawksmoor Mortgage Funding 2019-1 plc. The securitized
portfolio comprises loans acquired by Clearwater Seller Limited
pursuant to the exercise of portfolio call options in relation to
each HAWKSMOOR MORTGAGES 2016-1 PLC and Hawksmoor Mortgages 2016-2
plc and additional loans with an aggregate amount of 87.5M acquired
from Junglinster S.a r.l. (not rated). The VRR Loan Note is a risk
retention Note which receives 5% of all available receipts, while
the remaining Notes and certificates receive 95% of the available
receipts.

RATINGS RATIONALE

The ratings take into account the credit quality of the underlying
mortgage loan pool, from which Moody's determined the MILAN Credit
Enhancement and the portfolio expected loss, as well as the
transaction structure and legal considerations. The expected
portfolio loss of 4.5% and the MILAN required credit enhancement of
16.0% serve as input parameters for Moody's cash flow model and
tranching model, which is based on a probabilistic lognormal
distribution.

Portfolio expected loss of 4.5%: this is based on Moody's
assessment of the lifetime loss expectation taking into account:
(i) the weighted average CLTV of around 71.0% on a non-indexed
basis; (ii) the collateral performance to date along with an
average seasoning of 12.9 years; (iii) 13.7% of the pool is in
arrears for more than 30 days as of the cut-off date; (iv) more
than 11.4% of the pool was restructured in the past and c. 2.5% of
the loans were in active litigation as of August 2019; (v) the
current macroeconomic environment and its view of the future
macroeconomic environment in the UK, and (vi) benchmarking with
similar transactions in the UK Non-conforming sector.

MILAN CE of 16.0%: this follows Moody's assessment of the
loan-by-loan information taking into account the historical
performance available and the following key drivers: (i) the
relatively low weighted average CLTV of 71.0% on a non-indexed
basis; (ii) the high proportion of self-employed borrowers at
31.7%; (iii) the presence of 30.5% of loans where the borrower
self-certified their income or where income verification type is
uknown; (iv) around 64.8% of interest only loans; (v) borrowers
with adverse credit history accounting for 13.5% of the pool; (vi)
13.7% of the loans are in arrears for more than 30 days as of the
cut-off date; (vii) the presence of 11.4% loans restructured in the
past with c. 2.5% of loans being in active litigation as of August
2019, and (viii) benchmarking with other UK Non-conforming RMBS
transactions.

At closing the mortgage pool balance consists of GBP 2,466 million
of loans. The total reserve fund will be funded to 2.25% of the
outstanding principal balance of Classes A to H Notes plus the VRR
proportion of the principal balance of Classes A to H Notes on any
interest payment date with a floor of 1.5% of outstanding principal
balance of Classes A to H as of closing plus the VRR proportion of
the principal balance of Classes A to H Notes as of closing; the
VRR proportion equals 5% times (100/95). Once the Class G Note is
redeemed, any remaining balance of the Reserve Fund will become
part of the available revenue proceeds. The total reserve fund will
be split into the Liquidity Reserve Fund and the Non-Liquidity
Reserve Fund. The Liquidity Reserve Fund Required Amount will be
equal to 2.25% of outstanding principal balance Class A plus the
VRR proportion of the principal balance of Class A with a floor of
1.0% and will be available only to cover senior expenses, Class A
interest and payment to S Certificates. The Non-Liquidity Reserve
Fund will be equal to the difference between the total reserve fund
and the Liquidity Reserve Fund, and will be used to cover interest
shortfalls and to cure PDL on Classes A to G.

Operational risk analysis: KMC acts as a servicer. The issuer
delegates to KMC as the legal title holder, the responsibility over
certain servicing policies and setting of interest rates. To
mitigate servicing disruption risk, there is a back-up servicer
facilitator, Intertrust Management Limited (not rated), and an
independent cash manager, U.S. Bank Global Corporate Trust Limited
(not rated; a subsidiary of U.S. Bancorp (A1)). To ensure payment
continuity over the transaction's lifetime the transaction
documents incorporate estimation language whereby the cash manager
can use the three most recent servicer reports to determine the
cash allocation in case no servicer report is available. The
transaction also benefits from principal to pay interest for the
Class A Notes and for Classes B to G Notes, subject to certain
conditions being met.

Interest rate risk analysis: 100% of the portfolio pay a floating
rate of interest. As is the case in many UK RMBS transactions this
basis risk mismatch between the floating rate on the underlying
loans and the floating rate on the Notes is unhedged. Moody's has
applied a stress to account for the basis risk, in line with the
stresses applied to the various types of unhedged basis risk seen
in UK RMBS.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
July 2019.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:

Significantly different loss assumptions compared with its
expectations at close, due to either a change in economic
conditions from its central scenario forecast or idiosyncratic
performance factors would lead to rating actions. For instance,
should economic conditions be worse than forecast, the higher
defaults and loss severities resulting from a greater unemployment,
worsening household affordability and a weaker housing market could
result in a downgrade of the ratings. Downward pressure on the
ratings could also stem from: (i) deterioration in the Notes'
available credit enhancement; (ii) counterparty risk, based on a
weakening of a counterparty's credit profile; or (iii) any
unforeseen legal or regulatory changes. Conversely, the ratings
could be upgraded: (i) if economic conditions are significantly
better than forecasted; (ii) upon deleveraging of the capital
structure; or (iii) in case of a better than expected performance.

LINKS OF LONDON: FF Group Explores Sale Options for Subsidiary
--------------------------------------------------------------
Business Sale reports that the Folli-Follie Group (FF Group) has
announced that it is exploring sales options for its subsidiary
group Links of London following a series of financial difficulties.


Professional advisory firms Deloitte and Savigny Partners have been
appointed to pursue a potential sale of the British jewellery brand
as part of a pre-pack administration, all while a post-transaction
restructuring plan is put in place to protect the business from
future insolvency, Business Sale relates.

According to Business Sale, prior to even considering a sale, the
brand had experienced a series of business scandals in Asia, and
instated a new CEO to assist a business transformation.

In September 2018, Links of London launched a five-year strategic
plan to facilitate a turnaround, achieving a one-off saving of
GBP2.1 million and an annualized saving of GBP5.1 million by
closing 15 US stores, and cutting overhead costs and five
non-strategic stores in the UK, Business Sale discloses.


LISTEN LTD: Enters Administration, 106 Jobs Affected
----------------------------------------------------
Melanie May at UKFundraising reports that London-based telephone
fundraising agency Listen Ltd has announced its closure and entered
administration.

In a statement, Listen said the decision followed a number of years
of challenging trading, and that all possible routes for continuing
had been explored including attracting outside investment and
widening the agency's offering, UKFundraising relates.

The decision follows its move earlier this year into a company
voluntary arrangement in an attempt to help it pay off debts,
UKFundraising notes.

"It has become clear that the business cannot continue to operate
in the current market. The only responsible option left to the
directors is to put the company into administration and maximize
the financial return to our creditors," UKFundraising quotes Listen
as saying.

Listen also confirmed that no money is owed to its charity clients,
and that it would be working to return all data to them over the
coming days and weeks, UKFundraising relays.

Listen employed 106 staff, and had raised over GBP250 million for
its charity clients in the ten years since it was founded,
UKFundraising discloses.


THOMAS COOK: Fosun to Take Over Business Under Rescue Deal
----------------------------------------------------------
BBC News reports that troubled travel firm Thomas Cook says it has
agreed to a rescue deal with investor Fosun Tourism, its banks and
a majority of its bondholders.

The UK tour operator said in July it was working to secure new
investment from Fosun, a major shareholder, BBC recounts.

According to BBC, the new deal would see the Chinese group take
control of the business at the expense of other shareholders.

Fosun will put in GBP450 million in return for at least 75% of the
tour business and 25% of the group's airline, BBC discloses.

Thomas Cook's lending banks and bondholders will contribute a
further GBP450 million for 75% of the airline and up to 25% of the
tour operator business, BBC states.

The plan will result in a significant dilution in existing
shareholders' interests, the company said, but that it had decided
it was the best way to secure the future of the group for all its
stakeholders, BBC notes.

The travel firm has issued three profit warnings in a year and is
struggling to reduce its debts, BBC relays.

Thomas Cook has also been trying for a long time to sell its
airline business, BBC says.

The firm is being buffeted by a number of factors: financial,
social and even meteorological, with last summer's heatwave
affecting bookings, according to BBC.  As well as weather issues,
and stiff competition from online travel agents and low-cost
airlines, there are other disruptive factors, including political
unrest around the world, BBC notes.



                           *********


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 2019.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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