/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/200319.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, March 19, 2020, Vol. 21, No. 57 Headlines G R E E C E SEANERGY MARITIME: Ernst & Young Hellas Raises Going Concern Doubt I T A L Y CREDITO VALTELLINESE: DBRS Confirms BB (high) LT Issuer Rating N E T H E R L A N D S GBT III: S&P Puts 'B+' ICR on CreditWatch Neg. Amid COVID-19 Issue S P A I N BBVA CONSUMO 9: DBRS Hikes Rating on Series B Notes to BB (high) CAIXABANK CONSUMO 4: DBRS Confirms BB(high) Rating on Cl. B Notes CATALONIA: DBRS Confirms BB (high) LT Issuer Rating CODERE: S&P Lowers ICR to 'CCC+' on Heightened Refinancing Risk HIPOCAT 11: Fitch Corrects March 11 Ratings Release U N I T E D K I N G D O M ASTON MARTIN: S&P Cuts Issuer Rating to 'CCC-' on Weak Liquidity BURY FC: Future Remains Uncertain as Owner Seeks New CVA DDD LTD: Goes Into Administration, 180 Jobs Affected FINABLR: UAE Central Bank Takes Control of Business GATE VENTURES: Put Into Administration After High Court Battle THE RESIDENCE: Placed Into Administration by Developer WILL NIXON: Enters Administration, 58 Jobs at Risk - - - - - =========== G R E E C E =========== SEANERGY MARITIME: Ernst & Young Hellas Raises Going Concern Doubt ------------------------------------------------------------------ Seanergy Maritime Holdings Corp. filed with the U.S. Securities and Exchange Commission its annual report on Form 20-F, disclosing a net loss of $11,698,000 on $86,499,000 of net vessel revenue for the year ended Dec. 31, 2019, compared to a net loss of $21,058,000 on $91,520,000 of net vessel revenue for the year ended in 2018. The audit report of Ernst & Young (Hellas) Certified Auditors Accountants S.A. states that the Company has a working capital deficiency and that it has stated that substantial doubt exists about its ability to continue as a going concern. In addition, the Company has not complied with a certain covenant of a loan agreement with a bank. The Company's balance sheet at Dec. 31, 2019, showed total assets of $282,551,000, total liabilities of $252,693,000, and $29,858,000 in total stockholders' equity. A copy of the Form 20-F is available at: https://is.gd/ZAhUMu Greece-based Seanergy Maritime Holdings Corp. (NASDAQ: SHIP) is an international shipping company that provides marine dry bulk transportation services through the ownership and operation of dry bulk vessels. ========= I T A L Y ========= CREDITO VALTELLINESE: DBRS Confirms BB (high) LT Issuer Rating -------------------------------------------------------------- DBRS Ratings GmbH confirmed the ratings of Credito Valtellinese SpA (Creval or the Bank) including the Long-Term Issuer Rating of BB (high) and the Short-Term Issuer Rating of R-3. The trend on all ratings remains stable. The Bank's Deposit ratings were confirmed at BBB (low)/R-2 (middle), one notch above the Intrinsic Assessment (IA), reflecting the legal framework in place in Italy which has full depositor preference in bank insolvency and resolution proceedings. DBRS Morningstar has also maintained the Bank's IA at BB (high) and support assessment at SA3. KEY RATING CONSIDERATIONS The confirmation reflects the continued progress the Bank has made in terms of asset quality, through organic reduction and disposals of non-performing exposures (NPEs). The ratings also incorporate the Bank's robust capital levels, which provide Creval with a significant cushion during potential shocks and more flexibility to further reduce its NPE stock. The Bank expects its gross NPL ratio to fall to around 6 % in 2023, a level DBRS Morningstar views as more normalized but still high compared to the European average. The ratings are underpinned by the Bank's stable market position in its home province of Sondrio, Lombardy, as well as solid retail funding base and liquidity profile. In terms on market access, in 2019, the Bank returned to the unsecured wholesale market with the successful issuance of senior-preferred bonds In addition, the ratings consider Creval's modest profitability, mainly due to revenue pressure, the high cost of credit which was impacted in 2019 by extraordinary LLPs related to the NPE disposal plan and still high, albeit declining, operating costs. DBRS Morningstar expects profitability to continue to gradually improve on the back of several business plan initiatives, currently being pursued under the new management team. However, the recent outbreak of Coronavirus Disease (Covid-19) in Italy, in particular across the region of Lombardy, creates additional risk potentially impacting the Bank's revenues and asset quality in 2020, and this may delay further improvements. RATING DRIVERS Positive rating pressure would require demonstration of sustained profitability, as well as a further improvement in asset quality. The ratings could be downgraded should the Bank fail to improve its profitability and asset quality, or if there was a significant weakening of capital and funding. RATING RATIONALE Creval is a small-medium sized retail and commercial bank, with a meaningful presence in Lombardy, especially in its home province of Sondrio, as well as in Sicily. After the completion of a recapitalization in 2018, the Bank's new board of directors appointed a new CEO in February 2019 and approved a new strategic plan for 2019-2023. The plan encompasses a larger contribution from fee-generating activities such as bancassurance as well as income from consumer lending. In addition, the Bank plans additional measures to improve efficiency and asset quality. In DBRS Morningstar's view, the Bank's profitability has improved in 2019 despite ongoing revenue pressure, the high cost of credit and high, albeit declining, operating costs. In 2019, the Bank reported net attributable income of EUR 56.2 million, up 77.3% year-on-year (YoY) from EUR 31.7 million in 2018, mostly driven by lower operating costs and lower provisions which compensated for ongoing pressure on revenues. In 2019, Creval continued to make progress in reducing its large stock of NPEs, and at YE2019 the gross stock had reduced to EUR 1.5 billion, from EUR 2.0 billion at YE2018, supported by organic reduction. Including an NPL disposal of EUR 357 million, which was completed in February 2020, the Bank's gross NPE ratio at YE2019, pro-forma, declined to 9.4% from 11.0% at YE2018, while the net NPE ratio was 4.7%, down from 5.2%. According to the current business plan, Creval expects its gross NPE ratio to fell to 6.5% in 2023. DBRS Morningstar views Creval's funding profile as adequate, supported by its large deposit retail franchise. At YE2019, customer deposits, including certificates of deposits, accounted for 85% of the bank total funding, up from 72% at YE2018. In recent periods the Bank has been able to issue debt in the wholesale markets and helping to diversify its funding sources, although DBRS Morningstar notes that this only accounts for around 6% of the Bank's total funding. Creval's liquidity position remains adequate with a large stock of liquid assets amply covering retail and wholesale maturities. The Bank's capital position remains ample following the 2018 recapitalization. At YE2019 Creval reported a fully-loaded Common Equity Tier 1 ratio of 15.5% (or 20.1% on a phased-in basis), up from 13.5% at YE2018, providing an adequate cushion for the implementation of the Bank's business plan. Notes: All figures are in EUR unless otherwise noted. ===================== N E T H E R L A N D S ===================== GBT III: S&P Puts 'B+' ICR on CreditWatch Neg. Amid COVID-19 Issue ------------------------------------------------------------------ S&P Global Ratings placed its ratings on GBT III B.V., including its 'B+' issuer credit rating, on CreditWatch with negative implications. The CreditWatch placement reflects GBT's vulnerability to declining demand for air travel and hotels due to the COVID-19 pandemic and the limited information on how widespread and drawn out the impact will be. Companies have increasingly imposed restrictions on their employees' nonessential travel over the course of February and March, which has led to the cancellation or postponement of numerous conferences in the first quarter of 2020. Further, the impact on economic activity and subsequent return to normalcy is also uncertain. Travel management companies such as GBT are affected not only by the overall decline in travel volumes, but also the loss of top-tier incentive payments from global distribution systems due to the inability to deliver sufficient volumes. S&P said, "In resolving the CreditWatch placement, we will evaluate new information regarding the spread of COVID-19 and its impact on GBT's operating performance, cash flow, and leverage. We expect to update our CreditWatch listing following first-quarter 2020 earnings. "We could affirm the 'B+' ratings once we have more certainty regarding the duration and severity of COVID-19's impact on global travel and CTI's operating performance, liquidity, and cash flow. An affirmation would likely entail our belief that global travel will rebound by the end of 2020 and evidence that the company's efforts to reduce costs will limit sustained declines in discretionary cash flow and EBITDA. In this scenario, we expect GBT to maintain DCF to debt above 2% and adjusted leverage below 4.5x. "We could lower the rating if we believe the impact of COVID-19 or any resulting economic weakness will extend through 2020 into 2021, causing a sustained period of DCF to debt below 2% and adjusted leverage above 4.5x." ========= S P A I N ========= BBVA CONSUMO 9: DBRS Hikes Rating on Series B Notes to BB (high) ---------------------------------------------------------------- DBRS Ratings GmbH upgraded the following ratings on the bonds issued by BBVA Consumo 9 FT (the Issuer): -- Series A Notes upgraded to AA (sf) from A (sf) -- Series B Notes upgraded to BB (high) (sf) from BB (sf) The rating on the Series A Notes addresses the timely payment of interest and ultimate payment of principal on or before the legal final maturity date in September 2033. The rating on the Series B Notes addresses the ultimate payment of interest and principal on or before the legal final maturity date. The rating actions follow an annual review of the transaction and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults, and losses as of the December 2019 payment date. -- Probability of default (PD), loss given default (LGD), and expected loss assumptions on the remaining receivables. -- Current available credit enhancement to the notes to cover the expected losses at their respective rating levels. The Issuer is a securitization of Spanish consumer loan receivables originated and serviced by Banco Bilbao Vizcaya Argentaria, S.A. (BBVA). The transaction closed in March 2017 and included an 18-month revolving period, which ended in September 2018. PORTFOLIO PERFORMANCE As of the December 2019 payment date, loans in arrears for more than 90 days represented 3.9% of the outstanding performing balance of receivables, up from 1.9% as of the December 2018 payment date. The cumulative default ratio, defined as loans more than 18 months in arrears, was at 0.9% of the original balance, with recoveries of 2.2% so far. PORTFOLIO ASSUMPTIONS DBRS Morningstar conducted a loan-by-loan analysis of the remaining pool of receivables and has updated its base case PD and LGD assumptions to 9.3% and 79.9%, respectively. CREDIT ENHANCEMENT As of the December 2019 payment date, credit enhancement to the Series A Notes was 22.3%, up from 14.8% last year. Credit enhancement to the Series B Notes was 8.0%, up from 4.9% in the same period. Credit enhancement is provided by the subordination of the junior classes and the reserve fund. The transaction benefits from a reserve fund of EUR 61.9 million, which is available to cover senior fees, interest, and principal on the Series A Notes and Series B Notes. The reserve fund will start amortizing, subject to the floor of EUR 30.9 million, in case the balance of loans in arrears for more than 90 days will drop below 1% of the outstanding performing balance of receivables. BBVA acts as the account bank for the transaction. Based on the DBRS Morningstar public reference rating of BBVA at A (high), which is one notch below its DBRS Morningstar Long-Term Critical Obligations Rating (COR) of AA (low), the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structure, DBRS Morningstar considers the risk arising from the exposure to the account bank to be consistent with the rating assigned to the Series A Notes, as described in DBRS Morningstar's "Legal Criteria for European Structured Finance Transactions" methodology. Notes: All figures are in Euros unless otherwise noted. CAIXABANK CONSUMO 4: DBRS Confirms BB(high) Rating on Cl. B Notes ----------------------------------------------------------------- DBRS Ratings GmbH took the following rating actions on the notes issued by Caixabank Consumo 4, Fondo de Titulizacion (the Issuer): -- Class A Notes upgraded to AA (sf) from AA (low) (sf) -- Class B Notes confirmed at BB (high) (sf) The rating on the Class A Notes addresses the timely payment of interest and ultimate payment of principal on or before the legal final maturity date in July 2056. The rating on the Class B Notes addresses the ultimate payment of interest and principal on or before the legal final maturity date. The rating actions follow an annual review of the transaction and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults, and losses; -- Probability of default (PD), loss given default (LGD), and expected loss assumptions on the remaining receivables; -- Current available credit enhancement to the notes to cover the expected losses at their respective rating levels. The Issuer is a securitization of unsecured consumer loans granted to individuals residing in Spain by CaixaBank, S.A. (CaixaBank), which is also the servicer of the portfolio and acts as the issuer account bank. At closing, the static EUR 1.7 billion collateral portfolio consisted of loans granted primarily to borrowers in Catalonia (33.4% of the initial portfolio balance), Andalusia (17.3%), and Madrid (10.7%). The transaction closed in May 2018. PORTFOLIO PERFORMANCE As of the January 2020 payment date, loans that were 0 to 30 days, 30 to 60 days, and 60 to 90 days delinquent represented 1.0%, 0.5%, and 0.2% of the outstanding collateral balance, respectively, while loans more than 90 days delinquent amounted to 2.9%. Gross cumulative defaults amounted to 2.2% of the original portfolio balance, with cumulative recoveries of 2.1% to date. PORTFOLIO ASSUMPTIONS DBRS Morningstar conducted a loan-by-loan analysis of the remaining pool of receivables and updated its base case PD and LGD assumptions to 6.5% and 64.9%, respectively. CREDIT ENHANCEMENT The subordination of the Class B Notes and the cash reserve provides credit enhancement to the Class A Notes, while only the cash reserve provides credit enhancement to the Class B Notes, following the full repayment of the Class A Notes. As of the January 2020 payment date, credit enhancement to the Class A Notes increased to 21.1% from 17.0% at the time of the last rating action; credit enhancement to the Class B Notes decreased to 4.6% from 5.7% as a result of the amortization of the cash reserve to its target balance starting from the July 2019 payment date. The transaction benefits from an amortizing cash reserve available to cover senior expenses and all payments due on the senior-most class of notes outstanding at the time. The reserve was funded to EUR 68.0 million at closing through a subordinated loan granted by CaixaBank, and from the July 2019 payment date has been amortizing to its target level, which is 4% of the outstanding principal balance of the notes. The cash reserve is currently at its target balance of EUR 37.8 million. CaixaBank acts as the account bank for the transaction. Based on the account bank reference rating of CaixaBank at A (high), which is one notch below the DBRS Morningstar public Long-Term Critical Obligations Rating (COR) of AA (low), the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structure, DBRS Morningstar considers the risk arising from the exposure to the account bank to be consistent with the ratings assigned to the notes, as described in DBRS Morningstar's "Legal Criteria for European Structured Finance Transactions" methodology. Notes: All figures are in Euros unless otherwise noted. CATALONIA: DBRS Confirms BB (high) LT Issuer Rating --------------------------------------------------- DBRS Ratings GmbH confirmed the Long-Term Issuer Rating of the Autonomous Community of Catalonia at BB (high) and its Short-Term Issuer Rating at R-4. The trend on all ratings remains Positive. KEY RATING CONSIDERATIONS The Positive trend on Catalonia's BB (high) ratings reflects (1) the sound fiscal performance recorded by the region in recent years, despite 2019 being affected by one-offs; (2) the positive track record on the economic and financial management fronts in spite of political tensions in the region and; (3) a political agenda pursued by the current regional government perceived as less confrontational towards the national government. In addition, the Positive trend on the Kingdom of Spain's Long-Term Foreign and Local Currency - Issuer Rating of "A" reinforces, in DBRS Morningstar's view, the Positive trend on Catalonia's ratings. This reflects the economic and financial linkages between both government tiers. The Positive trend at the sovereign level reflects DBRS Morningstar's view that risks to Spain's ratings remain skewed to the upside and that the conditions that supported the country's solid economic growth and steady improvements in public finances should continue going forward Catalonia's ratings remain underpinned by (1) the region's robust economic indicators and its sound fiscal performance; and (2) the financing support provided by the Kingdom of Spain to the regional government. While the political situation in the region remains a source of uncertainty, its impact on the regional economy or more generally on fiscal and financial management has remained limited. The possible consequences of the new Coronavirus Disease (COVID-19) on the Catalan economy will remain a focus point in coming months for DBRS Morningstar. The rating agency currently considers that any impact would largely be concentrated over one or two quarters, but lasting effects on tourism or the industrial sector that translate into weaker fiscal outcomes would be credit negative. Catalonia's Long-Term Issuer Rating currently remains at the BB (high) level given the region's high debt metrics and a still challenging political environment. Although DBRS Morningstar expects the region's debt reduction to be a slow and lengthy process and the political noise over independence to remain over the long-term, it considers that the region's intrinsic performance has improved in the last three years and that greater visibility on regional parties' future political agenda should be reachable in the foreseeable future. RATING DRIVERS The ratings could be upgraded if: (1) the relationship between the region and the national government remains relatively stable after the upcoming regional elections, with debt and fiscal management staying insulated from any potential rise in political tensions; (2) the region continues its fiscal consolidation towards a balanced budget position and improves its debt sustainability metrics further; or (3) the Kingdom of Spain's rating is upgraded. By contrast, a return to a Stable trend could stem from: (1) a material escalation of the political tensions between the region and the national government that would substantially worsen the relationship between both government tiers. Specifically, and although unlikely given the existing track record, indications that the financing support received by the region may be reduced would have negative credit implications; or (2) there is a deterioration in Catalonia's underlying fiscal position and a reversal in its decreasing debt-to-operating revenues ratio. RATING RATIONALE The Political Environment Remains a Key Rating Consideration While the regional pro-independence party, Esquerra Republicana de Catalunya (ERC), implicitly supported through its abstention the formation of a coalition government led by the Partido Socialista Obrero Español (PSOE) at the national level in January 2020, political uncertainty in the region remains. In particular, new regional elections, most likely to be held by the summer of 2020 could potentially mean the resurgence of political tensions, as the outcome of the vote might bring ERC to reconsider its implicit support for Prime Minister Sanchez's government and harden the pro-independence stance. DBRS Morningstar believes that regional elections that would confirm a softer strategy on the independence question, such as the one currently followed by ERC, and reduce political tensions between both government tiers, would benefit its assessment of the region's political risk and subsequently support Catalonia's ratings. Fiscal Consolidation Stabilizes on the Back of Strong Economic Growth On the fiscal front, Catalonia's fiscal performance largely stabilized in 2019, with a provisional deficit representing -3.6% of the region's operating revenues, in line with the deficit of -3.5% recorded in 2018. DBRS Morningstar expects the region's deficit-to-gross domestic product (GDP) figure for the year to possibly worsen compared to the 2018 deficit of -0.44%. However, DBRS Morningstar considers that any deterioration of the deficit-to-GDP metric would likely reflect one-offs affecting the regional outcome. These are likely to include (1) lower VAT receipts for close to 0.2% of the regional GDP; and (2) an expected exceptional adjustment related to highway concessions for around 0.1%. Left aside these one-offs, DBRS Morningstar estimates that the deficit figure for the region may have reached 0.3%-0.4% of GDP, underperforming the target of -0.1% but roughly in line with 2018. Overall, Catalonia's fiscal consolidation since 2015 has largely been driven by positive real annual average GDP growth of 2.9%. This led to a pick-up in tax revenues which, coupled with control over regional expenditure, led to the reduction in the deficit figures. In 2020, the approval of the first regional budget since 2017 will be key to assess the region's control over its expenditure. DBRS Morningstar expects economic growth in the region to decelerate to around 1.5%-1.6% in 2020. This weaker growth scenario is however likely to be exacerbated by the recent COVID-19 outbreak. Given how fluid the current situation is, DBRS Morningstar will closely monitor how events unfold in coming weeks and months to assess their potential impact on the region's economic performance. The National Government's Financing is Critical to the Region's Creditworthiness The debt financing provided by the national government to its regions, the favorable conditions attached to it and DBRS Morningstar's expectation that this support will continue, remain critical for Catalonia's ratings. While Catalonia's debt is very high at EUR 81.8 billion at the end of 2019, or 278% of its operating revenues (preliminary figures), DBRS Morningstar gains comfort on its sustainability, given the national government's support. The Spanish Treasury currently holds about 73% of the regional debt stock and Catalonia has benefited from very low funding rates in recent years. DBRS Morningstar also highlights that the regional debt-to-revenue ratio decreased in 2019 for the fourth consecutive year — from 334% in 2015 — supported by lower financing needs and dynamic operating revenues. In its baseline scenario, DBRS Morningstar continues to anticipate that this positive trend would go on in 2020 and 2021. RATING COMMITTEE SUMMARY The DBRS Morningstar European Sub-Sovereign Scorecard generates a result in the BBB (high) – BBB (low) range. Additional consideration factored into the Rating Committee decision included the uncertainty related to the political environment in the region and its potential impact on the region's relationship with the national government as well as the region's medium-to-long-term economic prospects. The main points discussed during the Rating Committee include the relationship between the national government and the Autonomous Community of Catalonia and the political situation in the region and in the country. In addition, the region's economic growth and the potential impact of the COVID-19 on its trajectory were discussed. Debt levels and fiscal consolidation were also points discussed in the Rating Committee. The national scorecard indicators were used for the sovereign rating. The Kingdom of Spain's rating was an input to the credit analysis of the Autonomous Community of Catalonia. Notes: All figures are in Euros (EUR) unless otherwise noted. CODERE: S&P Lowers ICR to 'CCC+' on Heightened Refinancing Risk --------------------------------------------------------------- S&P Global Ratings lowered to 'CCC+' from 'B-' its long-term issuer credit rating on Codere, as well as its issue ratings on Codere's EUR500 million and $300 million senior secured notes. S&P believes Codere faces increased refinancing risk, due to tough credit market conditions and expected operating performance deterioration due to the global spread of COVID-19. The downgrade reflects a deterioration in Codere's credit quality, primarily stemming from its upcoming debt maturities in about 19 months amid an environment of unsupportive capital markets, driven by the coronavirus epidemic. Codere, with 2019 group revenues and pre-International Financial Reporting Standards (IFRS) 16 EBITDA of EUR1.4 billion and EUR217 million respectively, generated approximately 25% of revenues and 8% of EBITDA in Italy. On Feb. 28, 2020, Codere announced that it had experienced a 14% decrease in revenues in Italy as a result of the coronavirus outbreak; however, this was before further material quarantine measures taken in the country. All of Codere's gaming halls and bars are currently closed. In addition, in January 2020, the gaming taxes for video lottery terminals (VLTs) and amusement-with-prize machines (AWPs) were further increased, and the health card requirement was imposed. Under its base case, S&P assumes a decline in revenues and EBITDA of 15% and 25%, respectively, for 2020 in Codere's Italian operations. On March 13, 2020, Spain's prime minister declared a state of emergency, which implies the closure of all gaming venues, restaurants, and cafes where Codere offers its services. Codere generated 14% of revenues and 16% of EBITDA in Spain during 2019. Other governments globally are also taking restrictive measures and Codere has already closed its halls in Uruguay (8% of group EBITDA) and Panama (3%). The halls in the Province of Buenos Aires are operating under reduced capacity, while La Plata in Argentina is closed. Argentina represents 28% of Codere's total EBITDA. Moreover, the suspension or delay of main sports events will hamper the company's sports betting business globally, both in retail and online. S&P said, "We believe the above-mentioned business disruptions heighten the uncertainty regarding Codere's future operating performance and therefore the risks regarding refinancing its EUR500 million and $300 million senior secured facilities, which mature on Nov. 1, 2021. In our view, Codere's capital structure is no longer sustainable and the company is dependent upon favorable business, financial, and economic conditions to successfully refinance its debt. We would view any resolution of shareholder conflicts as a positive development. In addition, if the company were to contemplate any additional equity capital contribution in the future, we would assess it in the context of a broader successful refinancing, and the sustainability of the capital structure following the refinancing. "We anticipate Codere's credit ratios will weaken in 2020. "Our base case is that Codere will report about EUR190 million-EUR200 million of unadjusted pre-IFRS 16 EBITDA in 2020 (versus about EUR217 million in 2019), which will result in S&P Global Ratings-adjusted leverage increasing to about 4.4x (versus 4.1x in 2019). Our EBITDA forecast is about EUR20 million lower than previously anticipated due to the expected effect of COVID-19, and it also includes about EUR25 million of exceptional costs (versus EUR32 million in 2019). EUR8 million of the EUR25 million of exceptional costs relate to online growth marketing expenses, which may potentially be cut to preserve cash flows and liquidity depending on the evolution of the coronavirus. "We expect operating cash flows to turn slightly negative in 2020, since the company's efforts to adjust its capital expenditure (capex) might not be sufficient to fully offset the operating performance deterioration and capex needs. We understand that the company is repatriating cash from Argentina to Europe with a discount, despite the capital controls. In 2019, Codere generated EUR45 million of unleveraged free operating cash flow (FOCF) in Argentina and extracted EUR35 million to Europe. We expect the company to generate about EUR40 million of FOCF in 2020 in Argentina, on a company-reported basis, and repatriate about half of it, since capital controls will likely affect the full year." The lack of hedging increases the volatility of future profitability and cash flows. S&P said, "Our rating on Codere incorporates the current lack of hedging against the risk of currency fluctuations stemming from the company's exposure to Latin American markets. As of Dec. 31, 2019, Codere generated about 75% of its EBITDA in Latin America. Although it has a solid liquidity cushion of about EUR103 million in cash as of end-2019 (of which EUR17 million is held in Argentine banks) and a EUR43 million undrawn revolving credit facility (RCF), the lack of hedging weighs on our profitability and cash flow generation forecasts. "The negative outlook reflects our view that refinancing of the group's term debt could become more difficult in the near term, and may require favorable company and market conditions. We also assume that the group can maintain sufficient operating liquidity to meet obligations and that there are no specific default events envisaged in the next 12 months, such as a group restructuring or bond buybacks below par, whereby existing bondholders receive less than the original promise. "We could downgrade Codere if the group is unable to successfully refinance its term debt in the next six to 12 months. We could also lower the rating if we foresee an increased likelihood that the company could engage in a refinancing or restructuring transaction that we would consider distressed, whereby existing debtholders receive less than par. In addition, we could lower the rating if the company's liquidity becomes less than adequate. The above conditions could occur if a further spread of COVID-19 weighed on operating performance and free cash flow generation, or if capital market conditions prevent the group from successfully refinancing. "We could raise the rating if the company successfully refinances its term debt, therefore extending maturities while maintaining adequate liquidity. An upgrade would also require our assessment of the post-refinancing capital structure as sustainable, which would be indicated by metrics including adjusted debt to EBITDA remaining well below 5.0x, and sustained material positive reported FOCF. We would view adjusted FOCF relative to adjusted debt closer to 5% as indicative of a free cash flow generation level able to absorb shocks; for example, from regulatory, currency, or market disruptions. This would need to be accompanied by a stable group operating performance in underlying operations." HIPOCAT 11: Fitch Corrects March 11 Ratings Release ---------------------------------------------------- Fitch Ratings replaced a ratings release published on March 11, 2020 to correct the name of the obligor for the bonds. Fitch Ratings has placed one tranche of Hipocat 7, FTA,on Rating Watch Negative (RWN) and taken rating actions on Hipocat 10, FTA, Hipocat 11, FTA, and Hipocat 9, FTA. The RWN reflects the potential effects of the recently enacted Catalonian Decree Law 17/2019 on securitised residential mortgage portfolios. RATING ACTIONS Hipocat 7, FTA Class A2 ES0345783015; LT AAAsf Affirmed Class B ES0345783023; LT AAAsf Rating Watch Maintained Class C ES0345783031; LT A+sf Rating Watch On Class D ES0345783049; LT BBB+sf Rating Watch Maintained Hipocat 11, FTA Class A2 ES0345672010; LT BBB+sf Upgrade Class A3 ES0345672028; LT BBB+sf Upgrade Class B ES0345672036; LT CCsf Affirmed Class C ES0345672044; LT CCsf Affirmed Class D ES0345672051; LT Csf Affirmed Hipocat 9, FTA Class A2a ES0345721015; LT A+sf Affirmed Class A2b ES0345721023; LT A+sf Affirmed Class B ES0345721031; LT A+sf Affirmed Class C ES0345721049; LT Asf Rating Watch Maintained Class D ES0345721056; LT CCCsf Affirmed Class E ES0345721064; LT Csf Affirmed Hipocat 10, FTA Class A2 ES0345671012; LT A+sf Affirmed Class A3 ES0345671020; LT A+sf Affirmed Class B ES0345671046; LT BB+sf Upgrade Class C ES0345671053; LT CCsf Affirmed Class D ES0345671061; LT Csf Affirmed TRANSACTION SUMMARY The transactions consist of mortgages originated in Spain by Catalunya Banc S.A. (now part of Banco Bilbao Vizcaya Argentaria, S.A., BBVA; A-/Stable/F2), which previously traded as Caixa Catalunya. The loans are serviced by BBVA Group. KEY RATING DRIVERS Mandatory Residential Lease for SPVs Fitch considers that the ratings of Hipocat 7's class B, C and D notes may be sensitive to the possible adverse effects that the recently enacted Catalonian Decree Law 17/2019 could have on some existing and future residential mortgage defaults within the securitised portfolios (see Fitch Places 18 Tranches of 9 Spanish RMBS on RWN; Affirms Others). This led to the class C notes being placed on RWN and the class B and D notes being maintained on RWN. Fitch expects to resolve the RWN within the next 12 months. The full implications of the Decree Law on the affected tranches will depend on how many rent contracts are formalised, and /or the related strategies implemented by the trustees. Stable or Improving Credit Enhancement Fitch expects structural CE to remain largely stable over the short to medium term in Hipocat 7 as the transaction is currently amortising on a pro-rata basis. Fitch expects Hipocat 9 to start amortising pro-rata in the next six to 12 months as the reserve fund (RF) is close to its target. Once this happens, CE ratios will decrease slightly as the RF will be allowed to amortise to its floor, which drives the maintained RWN on the class C notes. For the rest of the transactions Fitch expects CE ratios to continue to increase as the notes are expected to keep amortising sequentially. For Hipocat 10 and 11, the rise in CE is the main driver of the upgrades of the notes. Fitch views these CE trends as sufficient to withstand the rating stresses, leading to the upgrades and affirmations. However, the still very low and even negative CE for some tranches is a driver of the 'Csf' to 'CCCsf' ratings. Geographical Concentration to Catalonia The securitised portfolios are exposed to the region of Catalonia with a concentration that ranges from 63% for Hipocat 7 to 69% in Hipocat 10. Within Fitch's credit analysis, and to address regional concentration risk, higher rating multiples are applied to the base foreclosure frequency assumption to the portion of the portfolios that exceeds 2.5x the population within this region, in line with Fitch's European RMBS rating criteria. Payment Interruption Risk Fitch views Hipocat 9, Hipocat 10 and 11 as being exposed to payment interruption risk in the event of a servicer disruption, as in scenarios of economic stress Fitch expects the available RFs (partially funded for Hipocat 9 and fully depleted for Hipocat 10 and Hipocat 11) to be insufficient to cover senior fees, net swap payments and senior notes' interest during the minimum three months needed to implement alternative servicing arrangements. The notes' maximum achievable ratings are commensurate with the 'Asf' category, in line with Fitch's Structured Finance and Covered Bonds Counterparty Rating Criteria. Asset Performance Possibly Volatile Fitch believes the behaviour of some distressed mortgage debtors in Catalonia could deteriorate as a consequence of the Decree Law. For example, a distressed borrower with a high loan-to-value (LTV) mortgage could be motivated to stop paying the mortgage and get access to a much cheaper lease for as long as 14 years. As of the latest reporting dates of the transactions, the balance of arrears by three months or more (excluding defaults) remain below 1.0% relative to current portfolio balances, while gross cumulative defaults range between 3.9% (Hipocat 7) and 25.0% (Hipocat 11) relative to the initial portfolio balances with signs of flattening during the past two years. ESG Factors Hipocat 9 and 10 have an ESG Relevance Score of 5 for "Transaction & Collateral Structure" due to payment interruption risk, which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in a change to the ratings. Hipocat 11 has an ESG Relevance Score of 4 for "Transaction & Collateral Structure" due to payment interruption risk, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. RATING SENSITIVITIES Fitch's analysis will factor in the transaction-specific feedback expected to be received from the trustees, particularly with respect to the servicing strategy to be implemented in cases where mandatory social rent is applied to existing or future defaults. Moreover, the analysis will address any additional recurrent expenses that SPVs will have to pay linked to the maintenance of rented property during the entire period, and any contingent liabilities in their new role as landlords. =========================== U N I T E D K I N G D O M =========================== ASTON MARTIN: S&P Cuts Issuer Rating to 'CCC-' on Weak Liquidity ---------------------------------------------------------------- S&P Global Ratings lowered its issuer and issue ratings on U.K.-based luxury sports car manufacturer Aston Martin Lagonda (AML) to 'CCC-' from 'CCC+'. The recovery rating remains '4'. At the same time S&P placed all its ratings on AML, including its 'CCC-' issuer credit rating, on CreditWatch with negative implications. S&P plans to resolve the CreditWatch once AML has completed its placement and rights issue and it can assess and quantify the impact of COVID-19 on AML's financial performance and liquidity position. U.K.-based luxury sports car manufacturer Aston Martin Lagonda (AML) is planning to raise GBP536 million in new money (before fees) via a GBP171 million share placement and GBP365 million rights issue to bolster its weak liquidity position and reset its business strategy. Weaker-than-expected results and continued high cash burn have left AML needing a rescue deal to survive its current liquidity crunch. Over the past 12 months, AML has experienced weaker-than-expected conditions in some of its core end-markets and declining core sports car sales volumes, as well as depressed profitability and weak cash flows. Despite this, AML has continued to invest heavily in R&D and its capital expenditure (capex) has remained high as it continues its strategy of launching new cars including the DBX, the Valkyrie, and the Valhalla. As such, its free operating cash flow (FOCF) has stayed significantly negative as its working capital position has deteriorated and its liquidity has come under more and more pressure. S&P said, "Its working-capital-related cash outflows far exceeded our expectations at end-fiscal 2019. Its cash outflow was GBP84 million versus our previous expectation of a slight working-capital-related cash inflow at the end of the fiscal year. To fund this high cash burn and working capital outflow, AML has had to seek new funding options multiple times in the past 12 months including a $190 million mirror bond issued in April 2019, $150 million 12% cash/PIK toggle notes issued in September 2019, a GBP20 million bilateral loan from JP Morgan in late 2019 (now repaid), and GBP55.5 million of short-term working capital support from Yew Tree, a vehicle controlled by Mr. Stroll (note: this facility will increase to GBP75.5 million in the coming days under the new terms of the recently revised placement and rights issue). We note that AML's revolving credit facility (RCF) is effectively fully drawn, and of the GBP108 million of cash reported on balance sheet at end-fiscal 2019, the majority is either linked to contractually refundable customer deposits or restricted in China. AML is now seeking to raise GBP536 million (before fees) via a new GBP171 million placement and GBP365 million rights issue, planned for completion in early April. We note that under the terms and conditions of the short-term working capital facility from Yew Tree, the GBP75.5 million short-term working capital line will be repaid from proceeds from the GBP536 million placement and rights issue." As part of this planned transaction, Mr. Stroll and his consortium will take a position of about 25% of the company's post-placing issued share capital for about GBP2.25 per share, raising about GBP171 million in the process. AML will also launch a rights issue with the aim of raising GBP365 million. S&P said, "In our view, despite being underwritten, the rights issue carries a degree of execution risk. We also note that since first announcing the transaction, AML's share price has weakened significantly due to the effect that COVID-19 uncertainty is having on the global financial markets, leading to the consortium to renegotiate the terms of the planned placement and rights issue. In our view, if markets were to continue to deteriorate and AML cannot successfully complete its planned GBP536 million placement and rights issue, then it will face a liquidity crisis that would likely lead to a restructuring." Even with GBP536 million of new money and production of the DBX coming online, market headwinds including the impact of COVID-19 will likely result in further pressure on AML's financial results and liquidity. Absent the potential negative impact of COVID-19, AML's core sports car sales are already forecast to decline further in 2020, with continued pricing pressure in some core markets. Management has guided that AML will exhibit a GBP100 million outflow of cash for working capital in 2020 as AML pushes to get the DBX to production. Most of this cash will be used in first-half 2020 as DBX production ramps up at its St. Athan plant, with first deliveries of the new DBX slated for summer 2020. Given the pressure on the core sports car business and continued high cash burn, the flawless delivery of the DBX to market, along with healthy demand supporting future production, is also key to AML's survival. Although hard to quantify at this stage, COVID-19 will undoubtedly affect AML's core sports car sales in the first half of 2020 most notably in China and Asia-Pacific (where AML sold about 1,300 cars in 2019) but also in EMEA and North America as the economic impact of the pandemic gathers pace in these regions. It could also potentially weigh on planned DBX deliveries/sales in the summer if the pandemic continues to escalate. AML has a global supply chain and sources many parts from the EU and also China, some of which are critical to production and assembly of its cars in its Gaydon and St. Athan plants. If AML ran out of these critical parts then it would likely have to halt production. At this stage, S&P does not include specific downside in its base case from COVID-19 in terms of car sales or effects on its supply chains, but will update our forecasts when more information becomes available. S&P said, "We plan to resolve the CreditWatch once AML has completed its rights issue and we can assess and quantify the impact of COVID-19 on AML's financial performance and liquidity position for the next six months. "We could lower the rating if AML is not able to complete its placement and rights issue and raise GBP536 million of new funds as planned, or if COVID-19 were to severely disrupt core sports car sales or supply chains to the point where AML had to cease production, further weakening cash flows and negatively affecting liquidity. "We are lowering the issue ratings on the GBP285 million 5.75% senior secured notes due 2022 (including the GBP55 million tap issuance) and the $400 million and $190 million 6.5% senior secured notes and the $150 million 12% cash/PIK notes to 'CCC-' from 'CCC+'. The recovery rating is '4' (rounded estimate 45%). "We note that, since our last publication, AML agreed a GBP75.5 million short-term working capital facility from Yew Tree, and this facility ranks ahead of the existing senior secured notes. Under the facility's terms and conditions, it will be repaid from the proceeds of the GBP536 million placement and rights issue. We include it as a priority liability until such time as it is repaid." A comprehensive security and guarantee package support the ratings on the above-mentioned notes, but they are constrained by the significant prior-ranking liabilities, including an GBP80 million super senior RCF, a GBP150 million receivables financing facility (recently reduced from GBP200 million), the GBP75.5 million Yew Tree facility, and a GBP37.5 million inventory facility in China. In S&P's hypothetical default scenario, it assumes insufficient liquidity undermining the company's ability to service its debt obligations due to sizable capital expenditures and declining revenues. S&P values the business as a going concern due to its strong brand name and market position. -- Year of default: 2020 (second half) -- Jurisdiction: U.K. -- Emergence EBITDA: GBP157 million -- Maintenance capex is assumed at 5% of historical three-year annual average revenues, based on the company's average minimum capex requirement trend. -- Standard cyclicality adjustment of +15% for the Auto OEM industry. -- S&P maintains its operational adjustment of 15% to adjust the increase in sales volume due to the ramping up of sales with the extension of core models and car launches, with successor models for the new DBX SUV in 2020. -- Implied enterprise value multiple: 5.0x - Anchor multiple for the Auto OEM industry is 5.5x, but we use 5.0x because Aston Martin is not part of a larger automotive group and hence lacks diversity and scale compared to its peers. However, S&P believes the company possesses a strong brand name with some next generation products in the pipeline, so it maintains the 5.0x multiple for the valuation. -- Gross recovery value: GBP785 million -- Net recovery value for waterfall after admin. expenses (5%): GBP745 million -- Priority claims: GBP342 million (1)(2) -- Estimated senior secured debt claims: GBP895 million -- Recovery expectations: 30%-50% (rounded estimate: 45%) (1)All debt amounts include six months of prepetition interest. (2)S&P assumes RCF to be 85% drawn at default. BURY FC: Future Remains Uncertain as Owner Seeks New CVA -------------------------------------------------------- BBC News reports that the future of Bury FC remains uncertain after owner Steve Dale renewed his attempt to settle the club's debts. According to BBC, a leaked document seen by BBC Radio Manchester says Mr. Dale is seeking a new company voluntary arrangement (CVA) to be considered by creditors. Notice of a previous agreement being terminated was issued on March 9 after it expired in January, BBC discloses. The development means creditors are now "free to take action" to recover debts from the 135-year-old club, BBC notes. Steven Wiseglass, supervisor of the original CVA which was issued in July 2018 but is now terminated, has written to creditors saying they are "no longer bound by the terms" of that arrangement, BBC relates. He has also outlined that Dale has asked that creditors take no action "within the next few weeks (in order) to facilitate" a new CVA proposal, BBC states. Mr. Wiseglass states that if no new CVA is agreed by April 1, then he will seek to wind-up the club and appoint a liquidator, BBC relays. Bury's creditors approved a CVA proposal last July which would have seen the club's football creditors paid in full, BBC recounts. Unsecured creditors, including HM Revenue & Customs, were due to be paid 25% of money owed, BBC notes. That rescue plan, which amounted to an insolvency event, saw Bury deducted 12 points, but they were eventually expelled from the English Football League in August after a proposed takeover collapsed, BBC discloses. DDD LTD: Goes Into Administration, 180 Jobs Affected ---------------------------------------------------- Nathan Louis at Watford Observer reports that nearly 200 jobs have been lost after DDD Ltd., a health and beauty manufacturer, went into administration. The company, based in Rickmansworth Road, Watford, was placed into administration on Feb. 28 -- with employees notified on the same day, the Observer understands. According to the Observer, administrator PricewaterhouseCoopers (PWC) says 180 employees have been made redundant, with 111 being retained to support the joint administrators in their strategy. It says the joint administrators Mike Denny and Rob Lewis are undertaking a period of limited continued trading while seeking to achieve a sale of the business and assets, the Observer discloses. Joint administrator Mr. Denny, as cited by the Observer, said: "DDD is a business with significant heritage that has struggled from a combination of internal and external factors over recent years. "Given trading losses and an increasingly fragile cash position, the directors had been seeking investment into the business. That process was unsuccessful, and the directors had no option but to seek the appointment of administrators. "Regrettably, it has been necessary to make a number of employees redundant. We will ensure that all possible support is made available to them at this difficult time. "We continue to trade the business in the short term, whilst progressing a sale of the business. We would encourage any interested parties to get in contact." According to its latest financial statement on Companies House, DDD Ltd reported a profit of GBP536,000 in 2018 versus a loss of GBP3.29 million for 2017, the Observer discloses. DDD owns a number of brands including Astral, Dentinox, and Snufflebabe. The family-owned business was founded in 1912. It develops, manufactures, and distributes a range of healthcare, beauty, and pharmaceutical products both locally and internationally. FINABLR: UAE Central Bank Takes Control of Business --------------------------------------------------- Daniel Thomas, Nicholas Megaw and Simeon Kerr at The Financial Times report that Finablr, the owner of Travelex, has been thrown a lifeline by the central bank of the United Arab Emirates which has taken control of a remittance house at the heart of the struggling FTSE 250 group, after it asked advisers to prepare for a possible insolvency. Abu Dhabi state-owned institutions are considering participating in a restructuring package if the group, which was worth more than GBP1 billion only last year, can be stabilized, the FT relays, citing people briefed on the matter. Finablr has more than 25m retail customers across subsidiaries such as Travelex and UAE Exchange, providing foreign exchange services in airports and high streets around the world. It warned earlier this week that it was in danger of going out of business, the FT relates. The central bank of the UAE has taken administrative control of UAE Exchange, according to an official notice seen by the FT, ordering owners and senior managers of the Abu Dhabi-based remittance house not to leave the UAE without informing it and to preserve documents and correspondence. The bank later confirmed it was overseeing operations at UAE Exchange, saying it had started an inspection of the remittance house on March 17 and would take additional action if necessary, the FT notes. The intervention at UAE Exchange, described by bankers as the "cash cow" of Finablr, comes as the Abu Dhabi authorities seek to prevent the collapse of the payments group, the FT states. On March 17, Finablr's board said that it had engaged an accounting firm "to undertake rapid contingency planning for a potential insolvency appointment" with a view to maximizing value in the group, the FT discloses. The appointment has not yet been finalized, the FT says. According to the FT, the company remains in talks with its lenders about its financial position. Without an agreement with its banks, it is at risk of running out of cash, the FT relays, citing a person familiar with the matter. The person said the Financial Conduct Authority has also been talking to the company about the issues, the FT notes. The announcement comes a day after the group said it had discovered US$100 million of cheques kept secret from its board that had been made by group companies before its IPO in 2019, causing doubts over its ability to continue as a going concern, the FT states. It has appointed Kroll to carry out an independent investigation, the FT discloses. GATE VENTURES: Put Into Administration After High Court Battle -------------------------------------------------------------- Caroline Davies at The Guardian reports that Gate Ventures, a troubled theatre and film investment company chaired by the former BBC boss Lord Grade that made "unexplained" loans to the Duchess of York, has been placed in administration after a bitter high court battle. According to The Guardian, the company, which has backed shows including 42nd Street and Sunset Boulevard, owed shareholder and creditor Zheng Youngxiong GBP2.5 million it could not pay. Gate Ventures had raised GBP24.5 million from some 3,500 investors, mainly Chinese, but had losses of GBP19.5 million and was a company which "has struggled", The Guardian discloses. Judge Prentis said but though it had cash flow problems it was solvent, The Guardian notes. In conjunction with Zheng, known as Quentin, it had raised US$10 million (GBP8.1 million) from a series of roadshows to target investors in the Far East, including in Macau, one of the world's gambling hotspots, The Guardian discloses. But the US$10 million raised by Zheng through the roadshows never reached Gate Ventures, The Guardian notes. Mr. Grade told the court the company had issued a claim over the money against Zheng, The Guardian states. He also claimed there had been allegations uncovered by lawyers in China for Gate Ventures of Zheng's involvement in "pyramid selling activities", according to The Guardian. Gate Ventures had wanted to go into members voluntary liquidation, where shareholders can appoint a liquidator to formally close down a solvent company, instead of administration, The Guardian recounts. Mr. Grade told the judge the dispute over the US$10 million was among reasons it had fought the administration order, The Guardian notes. Mr. Grade, as cited by The Guardian, said the company had been caught in the middle of a bitter fall-out between Zheng and Gate Ventures' former chairman, the Hong Kong businessman Dr Johnny Hon. Zheng's case alleged mismanagement, claiming directors had breached their duties to the company "through negligence and/or by failing to act in good faith" and "sought to exploit the company for their own personal interests", The Guardian discloses. According to The Guardian, there were "warring sides" in the legal battle, the judge noted, ruling that the administration route was the preferable option. Mr. Grade had been forced to address the judge in person because the company's legal advisers had quit at short notice due to doubts the company could pay its fees, The Guardian relays. THE RESIDENCE: Placed Into Administration by Developer ------------------------------------------------------ Mari Eccles at Manchester Evening News reports that Salford's GBP70 million Residence tower has been placed into administration by its developer Elliot Group. It comes following funding problems brought about by allegations of fraud and corruption against the company's founder, Elliot Lawless, Manchester Evening News relates. The Residence is one of three schemes in the north west that are now under threat after Mr. Lawless made the announcement on March 16 -- the other two are in Liverpool, Manchester Evening News discloses. Construction work stopped on the Salford building last month after Elliot Group confirmed it had "called a moratorium" on the project -- their first in Greater Manchester -- following the arrest of its owner in December, Manchester Evening News recounts. Now, administrators have been brought in to assist Elliot Group's efforts to "protect the existing investors and creditors" of the three companies going into administration, Manchester Evening News states. Mr. Lawless says his focus is now on working with the administrator to keep the three projects alive, Manchester Evening News notes. Paul Cooper and David Rubin acting as joint administrators will personally handle the administration, Manchester Evening News discloses. The GBP70 million Residence project would see 300 plush apartments across two towers in Greengate, Salford, according to Manchester Evening News. WILL NIXON: Enters Administration, 58 Jobs at Risk -------------------------------------------------- Megan Kelly at Construction News reports that civils contractor and piling specialist Will Nixon Construction Group has fallen into administration, leaving 58 staff at risk of redundancy. John Hedger of Seneca Insolvency Practitioners is handling the administration of the company, Construction News discloses. The turnover of the firm was too small to require it to publish full accounts prior to its collapse, Construction News notes. According to its most recent partial accounts, dated to September 30, 2018, the firm owed GBP1.1 million to trade creditors within the year, and was owed GBP2.2 million by debtors, Construction News relays. Will Nixon Construction had just GBP26 cash in the bank during the same time frame, compared to GBP78,800 the previous year, Construction News states. Its net assets stood at GBP1.1 million, according to Construction News. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. 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