/raid1/www/Hosts/bankrupt/TCREUR_Public/200306.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, March 6, 2020, Vol. 21, No. 48

                           Headlines



G E R M A N Y

REIFF REIFEN: Files for Insolvency
THYSSENKRUPP AG: Fitch Cuts LT IDR to 'BB-', Off Watch Negative
THYSSENKRUPP AG: S&P Alters Outlook to Pos. & Affirms 'BB-' ICR


I C E L A N D

SORPA: Set to Undergo Comprehensive Restructuring


N O R W A Y

KONGSBERG AUTOMOTIVE: S&P Lowers ICR to 'B', On Watch Negative


S P A I N

CAIXABANK CONSUMO 2: Fitch Hikes Class B Notes to 'BBsf'


U N I T E D   K I N G D O M

FLYBE GROUP: Fails to Secure Crucial GBP100MM Gov't Loan
INTU PROPERTIES: Abandons Cash Call, Covenant Breach Likely
SIRIUS MINERALS: Investors Support Anglo American Takeover Offer
TRAVELEX HOLDINGS: S&P Lowers ICR to 'CCC', On Watch Negative
WRIGHTBUS: Parent Made GBP1.35MM Donation Amid Financial Crisis



X X X X X X X X

[*] BOOK REVIEW: Bankruptcy and Secured Lending in Cyberspace

                           - - - - -


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G E R M A N Y
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REIFF REIFEN: Files for Insolvency
----------------------------------
Harriet Matthews at Unquote reports that Reiff Reifen has filed for
insolvency, according to a filing with Frankfurt's district court
of Feb. 11, 2020, marking the third insolvency filing of a
Germany-based company in Bain's European Fintyre Distribution
Group.

According to Unquote, group subsidiary Reifen Krieg also filed for
insolvency.  Reifen24, which is managed by Reifen Krieg, filed for
insolvency on February 11, Unquote relates.


THYSSENKRUPP AG: Fitch Cuts LT IDR to 'BB-', Off Watch Negative
---------------------------------------------------------------
Fitch Ratings has downgraded thyssenkrupp AG's Long-Term Issuer
Default Rating to 'BB-' from 'BB+' and removed it from Rating Watch
Negative. The Outlook is Stable. Fitch has simultaneously
downgraded the senior unsecured notes' rating to 'BB-' from 'BB+'.

The rating actions reflect the weakening of TK's business profile
as a result of the announced disposal of the profitable Elevator
Technology business (expected to be closed by the end of the 2020
fiscal year) coupled with the expectation that following the
disposal, the company's underlying cash generation is likely to be
weak in the short to medium term.

The ratings are supported by the company's strong liquidity
profile, which will receive a material boost from the EUR17.2
billion sale proceeds of the ET business, and will allow TK to
reduce its financial liabilities and provide adequate time to
restructure its underperforming businesses and return them to
adequate and sustainable profitability levels. The strong liquidity
position mitigates the execution risk related to the restructuring
plans and underpins the Stable Outlook.

Fitch expects that over the medium term, the company is likely to
successfully implement its efficiency improvement measures, which
should support sustainable cash flow generation. Together with the
short-term structural reduction in financing and pension-related
costs stemming from the ET disposal, this could lead to cash-flow
based profitability measures being restored to levels commensurate
with the 'BB' category over the coming three to four years.

KEY RATING DRIVERS

Weaker Business Profile: Disposing of its ET unit significantly
weakens the group's business profile as it leaves TK exposed to the
lower margin and more cyclical materials and automotive businesses.
ET is the largest contributor of operating cash flows to the group,
with EBIT margins consistently above 11%. The remainder of the
company will see weak cash flow generation and likely weak margins,
at least in the near term, until there is a successful turnaround
amid restructuring initiatives.

ET Divestment to Reduce Debt: Fitch understands that management's
priority is to use a significant portion of the ET division EUR17.2
billion sale proceeds to repay debt, strengthening the group's weak
balance sheet. It expects TK to reduce short-term debt immediately
and the remaining debt as it matures. It also expects TK to fund a
material share of its pension liability, significantly alleviating
the sizeable related annual cash outflow. The remaining proceeds
will provide sufficient cash to restructure and turnaround the rest
of the businesses.

Negative FCF: TK's free cash flow generation has been subdued over
the past several years, as evidenced by accumulated negative FCF of
around EUR3 billion over 2016-2019. Fitch expects the negative FCF
trend to continue over the short to medium term, with a gradual
reduction in cash burn as macroeconomic conditions improve and TK
successfully implements its restructuring plans.

Execution Risk Over Restructuring: The group's management has
announced a restructuring programme, aiming to cut around 4% of the
global workforce, equating to around 6,000 jobs (500 already cut in
1Q20), adopt leaner corporate headquarters and focusing on
improving the remaining businesses and particularly the
underperforming Springs & Stabilizers, Heavy Plates and System
Engineering units.

Fitch believes that these measures could support a sustainable
improvement in operating cash flow generation, but this will be
only achieved through sizeable cash costs to cover the
restructuring programme. Although it views TK's liquidity as
adequate to cover any restructuring expenses, it notes the related
execution risks.

Further Strategic Reviews: Fitch understands that TK is reviewing
its investment needs across the remaining business units. Steel
Europe and Material Services may seek consolidation options on a
smaller scale, while TK may pursue a different ownership structure
for its Automotive Technology, Industrial Components or Marine
Systems (MS) units. It understands that strategic alternatives
could entail partnerships or the sale of stakes.

More recently, management announced that it is in the process of
signing NDAs seeking to divest part or the whole Plant Technology
unit. Partial divestiture of the segments, divestiture with
subsequent debt reduction, or strategic restructuring efforts could
have a positive impact on the company's leverage and overall credit
profile. However, Fitch notes that these alternatives are only at
the early stages. It would assess the impact of any transaction as
it occurred.

Weakened Capital Goods Performance: TK has been significantly
affected by unfavourable macroeconomic factors over recent years.
Softer demand for auto components, concerns over international
trade conflicts, loss-making projects in the Plant Technology and
MS Units weigh on the group's thin cash flow generation. Fitch
projects weaker operating cash flows this year amid weakening
business environment and increasingly limited visibility following
the Covid-19 outbreak.

Materials Businesses Underperforming: Lower volumes, sluggish
demand, depressed steel prices and higher raw material costs have
affected the group's operating cash flows. Fitch expects global
iron ore supply to recover in 2H20, which should reduce TK
Materials Services costs. However, Fitch expects that weak demand
and the continued spread of Covid-19 will provide limited headroom
for steel prices to grow.

DERIVATION SUMMARY

TK's rating reflects its relatively good business profile with a
more diversified business profile than steel-focused peers, in
particular closest peer ArcelorMittal S.A. (BBB-/Negative),
stemming from its capital goods businesses, which provide more
earnings stability. This compares with ArcelorMittal's greater
scale, more geographic diversification, vertical integration into
raw materials (iron ore) and stronger credit metrics, notably a
more resilient FCF margin and lower funds from operations adjusted
gross leverage.

Conversely, TK has greater exposure to volatile steel earnings, a
greater fixed cost base and lower production flexibility than
capital goods peers, including KION GROUP AG (BBB-/Stable) and
Atlas Copco AB (A+/Stable). These peers also have a greater
proportion of total group sales derived from stable servicing and
maintenance.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer

  - EBITDA declining to about 60% in pro-forma 2020, reflecting
deconsolidation of ET and weakening operating performance from the
rest of the businesses; around 65% EBITDA increase in 2021 from the
prior year's trough supported mainly by restructuring efforts and
marginal markets improvements

  - EUR17.2 billion of ET divestment proceeds in 2020

  - Significant funding of the company's pension liabilities in
2020

  - Debt reduction throughout the rating horizon, in line with debt
maturity schedule

  - Resumption of dividends payments in 2021

RATING SENSITIVITIES

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

  - Improvement and stabilisation of cash generation leading to FFO
and FCF margins above 6% and 1%, respectively, on a sustainable
basis

  - FFO adjusted gross leverage below 4.5x on a sustained basis

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

  - FFO margin below 3% on a sustainable basis

  - Lack of tangible progress in improving the FCF generation
capacity resulting in negative FCF on a regular basis

  - Material deterioration in the company's liquidity position

  - Failed restructuring measures resulting in FFO adjusted gross
leverage above 5.5x after FY21 on a sustained basis

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: As of December 31, 2019, TK had about EUR5.1
billion of liquidity, consisting of EUR2.1 billion of readily
available cash and EUR3 million of undrawn committed credit lines,
of which EUR2 billion matures in March 2021. Liquidity is also
supported by the company's EUR3 billion commercial paper programme
(EUR1 billion used at end-December 2019) and the group's strong
history of tapping the capital markets on a regular basis, most
recently in September 2019 when it issued a EUR1 billion bond with
a term of 3.5 years and a coupon of 1.875%.

Available liquidity sources provide ample headroom to cover
short-term financial debt, capex and working capital requirements.
EUR17.2 billion of ET divestment cash will significantly bolster
liquidity once the company receives the proceeds by the end of this
fiscal year. However, expected negative FCF over the rating horizon
will continue to burden TK's liquidity.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch has adjusted balance-sheet debt at end-September 2019 by
including the utilized amount of the factoring programme of around
EUR2 billion.

Fitch has adjusted cash in the amount of EUR500 million which it
treats as not readily available for debt repayment because of
seasonal working-capital swings.

Fitch adjusted debt as at end-September 2019 by capitalising the
annual operating lease expense of EUR218 million using a multiple
8x.

ESG CONSIDERATIONS

ESG issues are credit neutral or have only a minimal credit impact
on the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies).


THYSSENKRUPP AG: S&P Alters Outlook to Pos. & Affirms 'BB-' ICR
---------------------------------------------------------------
S&P Global Ratings affirmed the ratings on Thyssenkrupp AG (tk) and
its issues at 'BB-' and revised the outlook to positive from
developing.

Sale proceeds of EUR17.2 billion are higher than previously
anticipated.

S&P said, "We assume that the transaction will close soon because
the new owners (Advent, Cinven, and RAG) are financial investors
and we expect no objection from antitrust authorities. We expect
the transaction will be completed before the end of thyssenkrupp
AG's (tk's) 2020 fiscal year (ending Sept. 30, 2020). We also
understand that with the sale a locked box mechanism as of Sept.
30, 2019, was agreed on. We understand further that the value
appreciation of assets in the books will not trigger any meaningful
tax payments. We estimate limited synergy losses and limited
transaction and separation costs because the segment was operating
independently from the other segments."

tk will use the proceeds to repay financial debt and to restructure
its remaining operations.

S&P said, "We estimate that most of the proceeds from the disposal
of elevators will be used or set aside to retire maturing financial
debt. We also understand that tk will start to fund a contractual
trust agreement (CTA), which will match to a large extend the
liabilities and cash outflows relating to its pension obligations.
We expect that tk will fund the CTA soon after it receives the
proceeds, including the investment of EUR1.25 billion in the sold
elevator business. We estimate a positive three-digit million
effect on operating cash flow annually, as cash outflows for
pension obligations and interest payment will be reduced along with
the retirement of debt." This will compensate to a large extend the
loss of positive cash flow generation from the elevator business.

The remaining group will be less profitable and have more volatile
cash flows.

S&P said, "In recent years, the sold Elevator Technology segment
generated about 20% of the tk's revenue and more than 60% of the
group's EBIT, diluting the margin profile by about 200 basis
points, leaving our expectation for EBITDA of about 4% well below
what we consider as average. After the sale, the remaining group
will heavily depend on its steel operations (Steel Europe and
Material Services). By nature, steel production and steel
distribution operations are more volatile and have only a limited
service share, leading to more volatile cash flow generation.
Therefore, because the remaining group will have a lower capacity
to carry debt, we now assess the business risk as fair."

Ongoing negative free cash flow and limited visibility of the
remaining group's transformation strategy will weigh on the
rating.

The remaining group's weaker profitability and more volatile cash
flows, coupled with the slowdown tk is experiencing in some of its
end markets (including the auto industry) will continue to weigh on
the rating. tk could underperform our base case if the coronavirus
continues to hurt global supply chains and demand. S&P said, "We
now expect tk to report S&P Global Ratings-adjusted EUR1.7
billion-EUR1.9 billion of negative free operating cash flow (FOCF)
generation in fiscal 2020. With these measures, we expect an
improvement to between negative EUR500 million and negative EUR300
million in fiscal 2021. We view tk's inability to generate positive
FOCF as a key rating constraint and as limiting its upside now. For
a higher rating, we would need to have a better understanding on
the group's new strategic direction and asset allocation."

Management remains committed to reducing debt on the balance sheet,
restructuring the business, and attaining an investment-grade
credit rating.

The management team stated its intention to improve the credit
rating to investment-grade level over the medium term. S&P said,
"We therefore assume that management will not take any
shareholder-friendly measures such as paying out an extraordinary
dividend or initiating a share buyback program. We expect
management will initiate measures to smooth its high intrayear
working capital swings."

The positive outlook encompasses the confirmed sale of tk's
elevator business for more than EUR17 billion, the vast proceeds of
which will be applied to reduce debt and turn the group to a net
cash position. S&P said, "The positive outlook reflects that we
will likely raise the rating over the next six to 12 months if the
transaction closes as planned and tk receives sale proceeds, FOCF
generation improves, and we gain clarity on the remaining group's
new strategic direction and capital allocation."

S&P said, "We could raise the rating over the next six to 12 months
if we are confident the transaction will be executed on time and we
receive clarity on the strategy of the remaining operations in the
group, including the allocation of the funds that are not used to
restructure the group's balance sheet. We would also look for
structural improvements in free cash flow generation and no
weakening of our expectation of FOCF generation in fiscals 2020 and
2021."

Ratings downside over the 12-month outlook horizon would likely
materialize if the transaction does not close over the next 12
months, is canceled, or its operating performance does not improve
according to our base-case expectations. Should the transaction not
materialize, tk would be unable to offset its negative free cash
flow of 2020 and 2021 with the proceeds, which could lead to funds
from operations (FFO) to debt falling below 12% by 2021, which is
not in line with a 'BB-' rating.




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I C E L A N D
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SORPA: Set to Undergo Comprehensive Restructuring
-------------------------------------------------
Jelena Ciric at Iceland Review reports that Sorpa, the waste
management company responsible for Reykjavik capital area's
garbage, is set to undergo comprehensive restructuring.

According to Iceland Review, Sorpa also intends to ask the six
municipalities that jointly own the company to guarantee it an
ISK600 million (US$4.7 million/EUR4.3 million) loan.  An internal
audit published in December indicates Sorpa is facing significant
financial challenges, Iceland Review relates.

The City of Reykjavik recently conducted an internal audit on
Sorpa's planned construction of a biogas plant, which was published
last December, Iceland Review recounts.  The audit found that Sorpa
underestimated the cost of the project by ISK1.4 billion (US$10.9
million/EUR10 million), Iceland Review discloses.

Other financial issues within the company also came to light,
suggesting a grim state of affairs, Iceland Review notes.

Sorpa's board of directors met with elected representatives from
all six municipalities on Feb. 24 to review the company's difficult
financial position and propose a plan of action, Iceland Review
relays.  According to a press release published after the meeting,
the company plans to complete a comprehensive review of its
operations by June and undergo restructuring with the help of an
ISK600 million loan, Iceland Review states.  A special task force
will be appointed to carry out a detailed audit of the company's
finances, administration, and project management, according to
Iceland Review.




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N O R W A Y
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KONGSBERG AUTOMOTIVE: S&P Lowers ICR to 'B', On Watch Negative
--------------------------------------------------------------
S&P Global Ratings lowered its the long-term issuer credit rating
on Kongsberg Automotive ASA to 'B' from 'B+' and its issue credit
rating on the company's senior secured debt to 'B+' from 'BB-'; S&P
are also placed its ratings on CreditWatch with negative
implications.

Despite a resilient earnings and revenue performance in 2019,
Kongsberg's free cash flow generation was substantially negative,
leaving the company with limited financial flexibility at year-end.
Kongsberg showed revenue growth of 2% and a slight improvement of
its adjusted EBITDA margins to 9.6% in 2019 from 9.3% in 2018. S&P
said, "Operationally, we consider this performance solid in a
difficult market environment marked by production declines for
passenger cars of about 6%, and truck production of about 3%. We
attribute the relatively solid operating performance to the
company's recent business wins and benefits from past restructuring
and footprint relocations." At the same time, the group's heavy
investments in new projects, which led to elevated capex needs of
EUR65 million (or 5.6% of sales) and continued investments in
working capital throughout 2019 (leading to a cash-out of EUR34
million), led to an overall negative reported FOCF generation of
about EUR44 million, which is weaker than we anticipated. The
underperformance in 2019 also stemmed from a fourth-quarter decline
in earnings when Kongsberg suffered from revenue and earnings
reductions in its most profitable segment, Specialty Products,
which delivers air couplings and other products to commercial
vehicles and recreational vehicles.

Kongsberg will likely find it difficult to continue its resilient
operating performance in 2020, while its financial performance
could fail to improve, which will further limit financial
flexibility and liquidity.  S&P said, "We anticipate the auto and
truck markets to remain difficult over the next 12 months, which
will likely adversely affect the group's profit generation. S&P
Global Ratings expects 2020 to mark the third consecutive decline
in global auto sales (50% of Kongsberg sales depend on passenger
car sales), because the coronavirus outbreak seems to have wiped
out chances of a recovery in China, and we now project a 3.6%
decline in global sales. Global truck markets are likely to see
even more significant volume drops, as shown by the significant
decline in truck orders over recent months, and we assume a 10%-15%
decline in global sales (about 20% of Kongsberg's revenues are
driven by truck sales) for 2020. In this environment, we believe a
resilient earnings performance or the turnaround to positive free
cash flow generation of Kongsberg in 2020 becomes increasingly
challenging."

Kongsberg's liquidity position is now less than adequate, as the
group will depend on access to its RCF.  Kongsberg ended 2019 with
a cash position of EUR25.2 million. S&P understands that the
company needs about EUR20 million cash to run its operations as a
high proportion of the cash balance is outside of jurisdictions
covered by its cash pooling agreements, where repatriation of cash
could take a while to execute. Kongsberg had also drawn about EUR10
million under its EUR50 million revolving credit facility (RCF) at
year-end. The RCF is subject to a springing covenant, which
stipulates that net leverage needs to remain below 3.5x to allow
drawings of more than EUR20 million. At year-end, the group had
adequate headroom under financial covenants, with net leverage at
2.5x excluding IFRS 16 debt. At the same time, Kongsberg forecasts
a cash burn of about EUR23 million in the first quarter that would
make the group dependent on additional drawings under its RCF if
not substituted by additional credit facilities that the company
could arrange. While S&P acknowledges the group's increased focus
on strengthening its cash flow generation, it views Kongsberg as
being vulnerable to prolonged underperformance, which could further
restrain its liquidity situation.

CreditWatch

S&P said, "The CreditWatch negative placement reflects a one-in-two
likelihood that we could lower the issuer credit rating further. We
expect to resolve the CreditWatch status in the coming months and
are monitoring the group's operating performance and liquidity
situation.

"We could lower the rating if Kongsberg's liquidity position
tightens further. This could happen if we saw stronger cash
outflows in first-quarter 2020 than expected, or if headroom under
covenants declines, which could compromise Kongsberg's ability to
draw additional funds under its RCF.

"We could remove the ratings from CreditWatch if we see material
improvement in the group's liquidity position. This could result
from better-than-expected cash flow generation, improved market
conditions, or the arrangement of additional credit facilities."




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S P A I N
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CAIXABANK CONSUMO 2: Fitch Hikes Class B Notes to 'BBsf'
--------------------------------------------------------
Fitch Ratings has upgraded Caixabank Consumo 2, FT's class B notes
and affirmed the class A notes.

CaixaBank Consumo 2, FT

  - Class A ES0305137004; LT A+sf Affirmed

  - Class B ES0305137012; LT BBsf Upgrade

TRANSACTION SUMMARY

The transaction is a static cash securitisation of unsecured
consumer loans (unsecured loans) and consumer loans secured by
first-and second-lien real estate and consumer drawdowns of related
mortgage lines (together the RE loans), extended to obligors in
Spain by CaixaBank S.A (BBB/Positive/F2), which is also the account
bank.

KEY RATING DRIVERS

Increased Credit Enhancement

Credit enhancement has increased substantially in the past nine
months and was 57.8% for the class A notes as of January 2020
(previously 42.2%) and 16.5% for the class B notes (previously
12.1%). CE for the class A notes is provided by the reserve fund
(RF) and subordination of the class B notes. CE for the class B
notes is provided solely by the RF. Fitch believes current CE
adequately protects the transaction against the defined stresses
for their respective ratings.

Improved Blended Asset Assumptions

Overall performance has been positive. As of January 2020,
cumulative defaults stood at 2.1% and cumulative recoveries at
13.3%. Fitch assigns assumptions to both the unsecured loans and RE
loans.

Fitch has revised the asset assumptions for unsecured loans from
the last annual review based on the positive performance to date
and the limited remaining weighted average life (WAL) of the
unsecured loans. Fitch has maintained the lifetime default and loss
assumptions for unsecured loans, but adjusted the corresponding
remaining life assumptions due to the reduced remaining WAL. As a
result, Fitch has lowered its base case default assumption for
unsecured loans and maintained its base case recovery assumption.

For the RE loans, Fitch has adjusted its asset assumptions in line
with its European RMBS Rating Criteria to capture the
characteristics of the current portfolio. This resulted in a fairly
stable default assumption but higher recovery expectations on RE
loans due to the reduction of first lien and pari passu loans in
the portfolio.

Despite the improvement in assumptions for both unsecured loans and
RE loans, the increasing share of RE loans (which have higher
defaults and recoveries) resulted in a slightly higher blended
lifetime default base case that has increased to 6.9% from 6.8% but
at the same time a higher blended lifetime recovery base case that
has increased to 51.4% from 39.6%. At the 'A+sf' rating stress,
Fitch assumes a default rate and recovery rate of 18.5% and 36.1%,
respectively.

Rating Cap

The notes' ratings are capped at 'A+sf' due to the account bank
replacement triggers set at 'BBB', which under Fitch's Structured
Finance and Covered Bonds Counterparty Rating Criteria is
insufficient to support 'AAsf' or 'AAAsf' ratings.

RATING SENSITIVITIES

Current ratings: 'A+sf'/'BBsf'

Increase default rate base case by 25%: 'A+sf'/'B+sf'

Reduce recovery rate base case by 25%: 'A+sf'/'B+sf'

Combined 10% increase in default base case and reduction recovery
base case: 'A+sf'/'B+sf'

Combined 25% increase in default base case and reduction recovery
base case: 'A+sf'/'B-sf'

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

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
pools and the transactions. 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's 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.

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.




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FLYBE GROUP: Fails to Secure Crucial GBP100MM Gov't Loan
--------------------------------------------------------
Jim Pickard and Tanya Powley at The Financial Times report that
Flybe is on the brink of collapse after months of talks with the UK
government failed to secure a crucial GBP100 million loan and the
coronavirus slashed passenger demand for the already-struggling
regional airline.

The UK carrier was expected to enter administration on March 5,
putting more than 2,000 jobs at risk, the FT discloses. Its last
flights were set to land at about 11:00 p.m. on Wednesday, March 4,
with an announcement due shortly after, the FT notes.

"The impact of coronavirus has made a bad situation worse," the FT
quotes one person close to the airline as saying.  "It has been in
a pretty precarious position for a while -- it doesn't take much to
push it over the edge."

The FT revealed earlier on March 4 that the government had rejected
the idea of a GBP100 million state loan to the ailing airline,
leaving Flybe's management clinging to the hope of a cut to air
passenger duty in next week's Budget to help it survive.

But Flybe became increasingly concerned that any cuts to APD might
not kick in until 2021, which would be too late, the FT  states.

Flybe has warned that if it were to collapse, most of the routes it
operates would probably be abandoned entirely, the FT relays.

Flybe, which is Europe's largest regional carrier, employs 2,000
people.  It is responsible for nearly 40% of all domestic UK
flights and carries more than 9m passengers annually.


INTU PROPERTIES: Abandons Cash Call, Covenant Breach Likely
-----------------------------------------------------------
Donato Paolo Mancini, Robert Smith, Daniel Thomas and George
Hammond at The Financial Times report that UK shopping centre owner
Intu has abandoned a proposed cash call weeks after disclosing it
and warned it may breach more debt covenants, prompting fresh
doubts about its future.

"Following discussions with its shareholders and potential new
investors regarding a possible equity raise of GBP1 billion to
GBP1.5 billion, [the company] has concluded it is unable to proceed
with an equity raise at this point," the FT quotes Intu as saying
in a trading update.

According to the FT, the group, which is saddled with net debt of
about GBP4.7 billion, said it would consider other arrangements,
including "alternative capital structures and asset disposals".

The company is still hopeful of raising some new equity from
existing and new shareholders, the FT relays, citing two people
with knowledge of its plans, although much less than previously
targeted.

Any raising would take place alongside a wider reset of group debt
facilities to prevent future breaches of covenants, the FT states.

However, the company said that while it was complying with its debt
covenants, it could breach some of them at their scheduled testing
date in July, as property valuations continued to fall, the FT
notes.

Intu, the FT says, has been hit hard by the collapse of a series of
retail tenants amid the slowdown in consumer spending in the UK.

Plans for a cash call were first disclosed in January, with the
company saying last week that it would need at least GBP1.3
billion, the FT recounts.

The value of Intu's bonds plunged on Wednesday, March. 4, as
investors grew more nervous about taking losses in a potential debt
restructuring, the FT discloses.

Its GBP375 million convertible bond plummeted by 25p in the pound
to trade at less than half of its face value, the FT relays.  While
this debt is not secured on any of the group's properties, it would
rank ahead of the equity in an insolvency, the FT notes.

Intu's asset-backed debt was also hit, with its GBP485 million
MetroCentre bond falling more than 10p to trade at 79p in the
pound, the FT discloses.

The declining value of the company's shopping centre in Gateshead
triggered a covenant on this bond -- Intu's largest -- in January,
according to the FT.


SIRIUS MINERALS: Investors Support Anglo American Takeover Offer
----------------------------------------------------------------
Henry Sanderson and Neil Hume at The Financial Times report that
investors in Sirius Minerals reluctantly voted for Anglo American's
takeover offer of the company, paving the way for continued
development of the UK's biggest mining project in a generation.

According to the FT, the company said a total of 62% of the
shareholders who voted agreed on the deal at a meeting on the
grounds of the Honourable Artillery Company in the City of London.
They represented 80% of the shares.

The vote is a victory of Anglo American and a defeat for thousands
of retail investors who had backed the company's plans to build a
huge fertilizer mine below the national park on the North York
Moors and are now nursing significant losses, the FT discloses.

In January, Anglo American offered 5.5p a share in cash for Sirius,
valuing the company, which ran into financial difficulties last
year, at GBP405 million, excluding debt, the FT recounts.

But most retail investors bought in at around 25p will now suffer
heavy losses, the FT notes.  Some had invested their entire pension
pots and life savings into the company, the FT states.


TRAVELEX HOLDINGS: S&P Lowers ICR to 'CCC', On Watch Negative
-------------------------------------------------------------
S&P Global Ratings lowered to 'CCC' from 'B-' its ratings on
Travelex Holdings Ltd. and its issue rating on the EUR360 million
notes due 2022 to 'CCC-' from 'B-'. S&P lowered its issue rating on
the GBP90 million super senior revolving credit facility (RCF) to
'B-' from 'B+'. The ratings remain on CreditWatch negative.

S&P said, "Unless Travelex is able to remediate the situation, we
expect the group to breach the maintenance covenant under its GBP90
million RCF by the end of this month.  Travelex's trading update
revealed the extent of the operational disruption caused by the
malware attack. Its guidance indicated that the first quarter of
2020 will see an underlying EBITDA loss of about GBP20 million;
GBP25 million lower than the prior year. Some of the cost can be
recovered through a cyber-insurance policy, but the timing of the
payments has yet to be determined. The first quarter is Travelex's
seasonal low point--it generated underlying EBITDA of GBP2.5
million in the first quarter of 2019. We understand the company has
successfully restored all its customer-facing systems in a phased
and controlled program, reducing the effect of the malware for the
rest of the year. That said, we do not yet know the potential
reputational and regulatory implications of these attacks on
Travelex.

"We forecast that Travelex will report a decline in EBITDA of more
than 20% in 2020. A decline of this magnitude would imply that the
covenant under its GBP90 million RCF would be breached--previously
we estimated headroom of less 5%."

Finablr PLC, which owns 100% of Travelex, reported a usable cash
balance of $486 million on June 30, 2019. However, it is not yet
clear how much of this cash will be used to reduce the amount of
debt at Travelex. S&P understands that Finablr is discussing the
replacement of Travelex's GBP90 million super senior RCF with its
lenders.

The spread of the new coronavirus beyond China raises concerns that
the outbreak may have a much wider impact on leisure travel
globally than initially anticipated.   China and other Asian
in-country revenue accounts for approximately 10% of Travelex's
revenue. However, other markets that are closely linked to Asian
outbound travel have also been impeded. International travel is a
key driver for Travelex's consumer exchange segment and if
international travel volumes fall, demand for the consumer exchange
segment will weaken while staff and rental costs will remain
broadly fixed resulting in weaker EBITDA and FOCF and higher
leverage. S&P views the existing amount of debt at Travelex as
unsustainable. Leverage is estimated to rise above 10x in 2020 and
free operating cash flow (FOCF) to be negative.

Travelex could face a material refinancing risk, mechanically
triggered by the events evolving at BRS Ventures & Holdings Ltd.
(BRSV)  BRSV is the financing vehicle of Dr. B. R. Shetty. Through
a series of complicated intragroup transactions among related
parties last year, the effective ownership of Travelex Holdings
Ltd. was transferred to Finablr PLC in May 2019. This
change-in-control transaction did not trigger repayment of
Travelex's EUR360 million outstanding notes because Dr. Shetty
remained the majority shareholder of Finablr.

In January 2020, Dr. Shetty pledged a majority portion of his
Finablr holding (about 56% of Finablr's share capital) as security
for borrowing at BRSV. The terms for this borrowing are not
available publicly. However, if the terms of that loan were
breached, it is possible that Dr. Shetty could lose effective
control over the Finablr group. This could mechanically trigger a
mandatory repayment of Travelex's EUR360 million outstanding notes,
through the change-of-control clause.

S&P understands that if a change in control is triggered, the
process will be elongated because Travelex operates/trades in more
than 100 countries and their respective regulatory bodies'
governing financial institution will need to approve the change.
This will provide Finablr with a longer window of opportunity in
which to organize a refinancing package. That said, S&P currently
views any such refinancing as relatively complex because it will
depend on several factors evolving at shareholder level where
visibility is limited

The events unravelling at NMC Health PLC may jeopardize refinancing
efforts at Travelex.  NMC Health was founded by Dr. Shetty, and
operates independently of Finablr. It is listed on the London Stock
Exchange and has recently disclosed material findings related to
accounting discrepancies and the nondisclosure of material
related-party transactions. The findings were uncovered by a team
of legal and forensic experts appointed directly by NMC Health's
board of directors.

Although Finablr and Travelex operate entirely independent of NMC
Health, the announcement of adverse findings at the latter entity
triggered a sharp decline in Finablr's share price and Travelex's
bond price. Finablr's board has not yet announced whether it will
seek similar independent investigation. Dr. Shetty continues to
remain on Finablr's board, bringing to question its independence
and we cannot rule out the possibility that market participants may
view corporate governance controls at Finablr as weak.

S&P said, "The CreditWatch placement indicates that we could lower
the ratings further over the next few months if we saw potential
for a covenant breach under Travelex's super senior RCF, or if we
expected BRSV to find it difficult to refinance its existing debt,
thereby potentially triggering the change-of-control clause under
the Travelex bond documentation (through the enforcement of the
pledge over Finablr shares). We could also lower the rating if any
corporate governance issues were discovered, or if a going-concern
issue were revealed that could result in debt restructuring, a
distressed exchange offer, or a payment default at Travelex in the
near term."


WRIGHTBUS: Parent Made GBP1.35MM Donation Amid Financial Crisis
---------------------------------------------------------------
BBC News reports that the parent company of Wrightbus made a
GBP1.35 million donation to a religious charity when the County
Antrim bus builder was in deep financial trouble, the BBC's
Spotlight can reveal.

Wrightbus went into administration in September 2019 owing
creditors GBP58 million, BBC recounts.

In January 2019, its parent firm Cornerstone made the donation to
Green Pastures Church, BBC discloses.

Jeff Wright was the controlling shareholder of Cornerstone and a
director of the church, BBC notes.

According to BBC, a corporate governance expert told Spotlight that
for the donation to be made at that time "raises a conflict of
interest which would be very, very severe".

Clive Grace, a former director-general of the Welsh Audit
Commission, said the money paid out in the donation could have been
made available to Wrightbus to help it restructure, BBC relays.

In a statement, Jeff Wright, as cited by BBC, said the business
failed because it experienced "a sudden and unexpected drop-off in
orders".

Wrightbus was bought out of administration in October last year by
the English industrialist Jo Bamford, BBC recounts.




===============
X X X X X X X X
===============

[*] BOOK REVIEW: Bankruptcy and Secured Lending in Cyberspace
-------------------------------------------------------------
Author: Warren E. Agin
Publisher: Bowne Publishing Co.
List price: $225.00
Review by Gail Owens Hoelscher

Red Hat Inc. finds itself with a high of 151 5/8 and low of 20 over
the last 12 months! Microstrategy Inc. has roller-coasted from a
high of 333 to a low of 7 over the same period! Just when the IPO
boom is imploding and high-technology companies are running out of
cash, Warren Agin comes out with a guide to the legal issues of the
cyberage.

The word "cyberspace" did not appear in the Merriam-Webster
Dictionary until 1986, defined as "the on-line world of computer
networks." The word "Internet" showed up that year as well, as "an
electronic communications network that connects computer networks
and organizational computer facilities around the world."

Cyberspace has been leading a kaleidoscopic parade ever since, with
the legal profession striding smartly in rhythm. There is no
definition for the word "cyberassets" in the current
Merriam-Webster. Fortunately, Bankruptcy and Secured Lending in
Cyberspace tells us what cyberassets are and lays out in meticulous
detail how to address them, not only for troubled technology
companies, but for all companies with websites and domain names.
Cyberassets are primarily websites and domain names, but also
include technology contracts and licenses. There are four types of
assets embodied in a website: content, hardware, the Internet
connection, and software. The website's content is its fundamental
asset and may include databases, text, pictures, and video and
sound clips. The value of a website depends largely on the traffic
it generates.

A domain name provides the mechanism to reach the information
provided by a company on its website, or find the products or
services the company is selling over the Internet. Examples are
Amazon.com, bankrupt.com, and "swiggartagin.com." Determining the
value of a domain name is comparable to valuing trademark rights.
Domain names can come at a high price! Compaq Computer Corp. paid
Alta Vista Technology Inc. more than $3 million for "Altavista.com"
when it developed its AltaVista search engine.

The subject matter covered in this book falls into three groups:
the Internet's effect on the practice of bankruptcy law; the ways
substantive bankruptcy law handles the impact of cyberspace on
basic concepts and procedures; and issues related to cyberassets as
secured lending collateral.

The book includes point-by-point treatment of the effect of
cyberassets on venue and jurisdiction in bankruptcy proceedings;
electronic filing and access to official records and pleadings in
bankruptcy cases; using the Internet for communications and
noticing in bankruptcy cases; administration of bankruptcy estates
with cyberassets; selling bankruptcy estate assets over the
Internet; trading in bankruptcy claims over the Internet; and
technology contracts and licenses under the bankruptcy codes. The
chapters on secured lending detail technology escrow agreements for
cyberassets; obtaining and perfecting security interests for
cyberassets; enforcing rights against collateral for cyberassets;
and bankruptcy concerns for the secured lender with regard to
cyberassets.

The book concludes with chapters on Y2K and bankruptcy; revisions
in the Uniform Commercial Code in the electronic age; and a
compendium of bankruptcy and secured lending resources on the
Internet. The appendix consists of a comprehensive set of forms for
cyberspace-related bankruptcy issues and cyberasset lending
transactions. The forms include bankruptcy orders authorizing a
domain name sale; forms for electronic filing of documents;
bankruptcy motions related to domain names; and security agreements
for Web sites.

Bankruptcy and Secured Lending in Cyberspace is a well-written,
succinct, and comprehensive reference for lending against
cyberassets and treating cyberassets in bankruptcy cases.



                           *********


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 2020.  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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                * * * End of Transmission * * *