/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/200902.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 Wednesday, September 2, 2020, Vol. 21, No. 176 Headlines C Y P R U S AVIA SOLUTIONS: S&P Lowers Long-Term ICR to BB-, Outlook Negative G E R M A N Y NORDDEUTSCHE LANDESBANK: Moody's Cuts Preference Shares to Ca(hyb) WIRECARD AG: German Lawmakers Launch Inquiry into Collapse I R E L A N D FOOTBALL ASSOCIATION: Members Agree to Rule Changes for Bailout WEATHERFORD INT'L: Moody's Rates Unit's $500M Sr. Sec. Notes Ba3 N E T H E R L A N D S BRIGHT BIDCO: S&P Downgrades Rating to CCC on Weakening Liquidity S P A I N BBVA CONSUMER 2018-1: Moody's Confirms B3 Rating on Class E Notes SANTANDER CONSUMER 2020-1: DBRS Gives Prov. BB Rating to D Notes S W I T Z E R L A N D SWISSPORT: New Owners to Take Over Under Debt-for-Equity Swap T U R K E Y GLOBAL LIMAN: Fitch Keeps B Sr. Unsec. Notes Rating on Watch Neg. TURKIYE SISE: Fitch Affirms BB- LT IDR, Alters Outlook to Neg. U N I T E D K I N G D O M ANN SUMMERS: May Seek to Restructure Rent Costs Through CVA GENESIS MORTGAGE 2019-1: DBRS Confirms BB(high) Rating on E Notes NEWDAY FUNDING 2018-1: DBRS Keeps B(high) Cl. F Notes Rating UR-Neg SEADRILL LTD: Proposes to Turn Over Stakes in Oil Service Firms [*] UK: Restructuring Experts Expect Fresh Wave of Insolvencies - - - - - =========== C Y P R U S =========== AVIA SOLUTIONS: S&P Lowers Long-Term ICR to BB-, Outlook Negative ----------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on Avia Solutions Group Plc (ASG) and its issue rating on the group's $300 million senior unsecured notes due 2024 to 'BB-' from 'BB'. The outlook is negative. ASG's earnings will be under significant pressure in 2020 due to the COVID-19 pandemic. COVID-19 has forced most airlines to slash capacity; most airlines temporarily grounded their fleets for several months and governments have only recently eased travel restrictions for certain travel corridors. This has resulted in a sharp drop in demand for aviation services. For ASG, the worst affected segment is ACMI (aircraft, crew, maintenance, and insurance). This segment specializes in aircraft wet-leasing (chartering out aircraft with a complete crew, maintenance, and insurance) and is normally the group's largest earnings contributor (about 60% of its total adjusted EBITDA in 2019). As airlines slashed capacity, the group's ACMI revenue dropped to historically low levels in April and May 2020. To mitigate the severe loss in demand, ASG has been actively negotiating with lessors on their charter-in fleets, including lease cancellations, payment deferrals, fleet size reductions, lowering charter-in rates, and changing to a more variable lease cost structure. S&P believes that such amendments are critical for ASG to preserve cash and transform the ACMI segment into having a lower and more flexible cost base, to enable the company to endure the pandemic. S&P also expects that the aviation support services segment (which contributed about 15% of the group's adjusted EBITDA in 2019), will continue to see a meaningful earnings decline due to lower demand for passenger aircraft, ground handling, and fueling services. Nevertheless, ASG's business diversification in the cargo charter brokerage will partly mitigate this. Cargo charter brokerage has seen a significant surge in volumes in transporting medical supplies, equipment, industrial parts, and consumer goods amid government travel restrictions and quarantine orders. The group will also benefit from its increasing presence in cargo aircraft leasing in the ACMI segment, having acquired Bluebird Nordic with six cargo aircraft in January 2020 and purchased an additional cargo aircraft in May 2020. ASG has also implemented a number of strict cost-saving measures including employee cost compensation packages offered by governments during lockdowns, substantial downsizing of its labor force, and payroll reductions. The group reduced its full-time workforce by 25% in the first quarter this year. ASG's credit metrics will fall below our ratings threshold this year, but they will likely rebound in 2021. S&P said, "We forecast that ASG's adjusted EBITDA could halve this year, compared to about €215 million under the more normal operating environment in 2019. While ASG is in advanced negotiations with aircraft lessors, we believe that even a significant reduction in finance lease liabilities will not fully offset the impact of the expected EBITDA decline this year. This results in our forecast S&P Global Ratings-adjusted debt to EBITDA weakening toward 3.5x-4.0x in 2020, compared to about 2.6x in 2019 (all on a gross debt basis)." However, it could improve toward 2.5x-3.5x in 2021 as earnings rebound on the back of gradually recovering passenger air travel and continued solid air cargo demand. Ample liquidity is key to withstanding the pandemic, and supports the rating at this time. ASG had a sizable $300 million cash balance at the end of May 2020 (equivalent to about €255 million), with no material debt maturities until the $300 million unsecured notes are due in 2024. S&P expects that ASG will generate sufficient operating cash flow to cover its finance lease repayments, which are set to reduce significantly when agreed with aircraft lessors. S&P said, "However, we also expect to see negative reported free operating cash flow (FOCF) as the group embarks on opportunistic capital investments and some small bolt-on acquisitions this year, prefunded by the group's $300 million unsecured bonds issued in late 2019. As a result, we forecast that ASG's cash balance could reduce toward €100 million-€150 million in 2021, which we think would still provide a good liquidity cushion. Given that we do not deduct cash from debt for our ratio calculation purposes, mainly because of the business risk profile of ASG, which we view as weak, the diminishing cash balance would not affect our forecast adjusted debt." Environmental, social, and governance (ESG) credit factors for this credit rating change: -- Health and safety S&P said, "The negative outlook reflects that ASG's financial metrics will be below our thresholds for the rating in 2020 and our view that there is still a high level of uncertainty about the pace of air traffic recovery over at least the next 12 months due to the COVID-19 pandemic. "We could lower the rating if we believe the industry recovery will be weaker or more prolonged than we currently expect, preventing a tangible rebound in credit metrics in the next 12 months, such that adjusted funds from operations (FFO) to debt stays below 20% or adjusted debt to EBITDA exceeds 4x. "To revise the outlook to stable, we would need to be confident that demand conditions are normalizing and the recovery is robust enough to enable ASG to restore its financial strength, such that adjusted FFO to debt improves above 20% and adjusted debt to EBITDA remains below 4x on a sustainable basis." ============= G E R M A N Y ============= NORDDEUTSCHE LANDESBANK: Moody's Cuts Preference Shares to Ca(hyb) ------------------------------------------------------------------ Moody's Investors Service downgraded the ratings of hybrid instruments of Norddeutsche Landesbank GZ (NORD/LB, deposits A3 stable/senior unsecured A3 stable, Baseline Credit Assessment ba3), issued as non-cumulative preference shares through its funding vehicles Fuerstenberg Capital Erste GmbH and Fuerstenberg Capital II GmbH, to Ca(hyb) from Caa3(hyb). All other ratings of NORD/LB were unaffected. The rating action on NORD/LB's hybrid instruments was triggered by the bank's announcement on August 27, 2020[1] that it intends to exercise a regulatory call right for the silent participations securitised through the hybrid instruments. RATINGS RATIONALE DOWNGRADE OF NORD/LB'S FUERSTENBERG HYBRID INSTRUMENTS' RATINGS REFLECTS HIGHER LOSS EXPECTATION The downgrade of the hybrid ratings reflects Moody's expectation that the present value of the economic loss to investors in these instruments will fall within a range of 35%-65% of their par value, which is commensurate with a Ca(hyb) rating. When the two Fuerstenberg funding vehicles issued the hybrid instruments in 2005, they were eligible as regulatory Additional Tier 1 capital. Because of subsequent amendments to capital regulation none of the instruments has retained permanent regulatory eligibility as Additional Tier 1. The hybrid instruments fully lose their ability of regulatory Additional Tier 1 recognition in 2022. From the less favorable regulatory treatment, NORD/LB derives a call right for an extraordinary termination with a two years' notice period. NORD/LB has disclosed its intention to execute this call if and when it receives the regulatory approval by the European Central Bank. The bank intends to repay the principal at the future book value as of December 31, 2022; at year end 2019 the principal had already absorbed losses several times, which resulted in a writedown of principal to 52% under German GAAP accounting. This writedown could increase before the expected repayment in 2022 because of further loss absorption, which is likely at least for the current year, 2020. Investors could benefit from writebacks of principal in case NORD/LB were to report profits in their German GAAP accounts. However, considering the current haircut of 48%, NORD/LB's expectation of further losses in 2020 and the rating agency's expectation of NORD/LB's profit potential in following years, Moody's calculates the economic recovery rate to be in a range from 35% to 65%, in all likelihood. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade of the hybrid ratings could be triggered by at least some partial writebacks of the principal of the bonds based on positive future local GAAP balance sheet results. A downgrade of the hybrid ratings could be triggered by additional writedowns of the principal beyond the rating agency's current expectation. LIST OF AFFECTED RATINGS Issuer: Fuerstenberg Capital Erste GmbH Downgrade: Non-cumulative Preferred Stock (Local Currency), Dowgraded to Ca(hyb) from Caa3(hyb) Issuer: Fuerstenberg Capital II GmbH Downgrade: Non-cumulative Preferred Stock (Local Currency), Downgraded to Ca(hyb) from Caa3(hyb) PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Banks Methodology published in November 2019. WIRECARD AG: German Lawmakers Launch Inquiry into Collapse ---------------------------------------------------------- John O'Donnell and Christian Kraemer at Reuters report that German lawmakers launched a parliamentary inquiry into the collapse of payments firm Wirecard on Sept. 1 in an effort to force the government to reveal more about a failure to avert the country's biggest post-war corporate fraud. Wirecard's demise has embarrassed Germany's government, which prides itself on a reputation for rectitude and reliability, amid criticism that authorities ignored red flags, Reuters relates. "This was a fake company," Reuters quotes Fabio De Masi, a German lawmaker who played a key role in launching the inquiry that empowers parliamentarians to interrogate officials and demand information, as saying. "We are not getting the answers we need". According to Reuters, the German government has said Chancellor Angela Merkel brought up Wirecard's planned takeover of a company in China during a visit there in September 2019 and that a senior official in her office subsequently pledged further support to Wirecard. In an official parliamentary response, it said that Ms. Merkel did not know at the time of the irregularities at Wirecard, which is being dismantled after its disclosure of a EUR1.9 billion hole in its accounts in June triggered its insolvency, Reuters notes. Olaf Scholz, who heads Germany's finance ministry, is responsible for regulator BaFin, which has been criticized for failing to take Wirecard to task, spending years probing critics instead, Reuters states. The government, as cited by Reuters, said in another answer that there had also been more than 1,000 suspect transactions involving Wirecard since mid 2017, although most were not related to the scandal. Wirecard's former CEO Markus Braun and other executives have been held on suspicion of running a criminal racket that defrauded creditors of EUR3.2 billion, Reuters discloses. The company's collapse has highlighted Germany's lax oversight of financial firms, prompting authorities from regulator BaFin to local government to deflect responsibility for what one top official conceded was a "total disaster", Reuters relays. ============= I R E L A N D ============= FOOTBALL ASSOCIATION: Members Agree to Rule Changes for Bailout --------------------------------------------------------------- Gavin Cooney at The42 reports that members of the Football Association of Ireland have agreed to a series of rule changes necessary to trigger a State bailout of the Association and avoid insolvency. A series of resolutions easily obtained the two-thirds majority needed to pass, The42 discloses. The vote was held virtually from FAI HQ at Abbottstown on Aug. 31 to comply with the government's Covid-19 regulations, The42 relates. According to The42, the vote avoids another crisis at the Association, and allows the FAI draw down funds from a EUR35 million State bailout of the debt-ridden organization, which includes access to an estimated EUR10 million of the government's Covid-19 relief fund. WEATHERFORD INT'L: Moody's Rates Unit's $500M Sr. Sec. Notes Ba3 ---------------------------------------------------------------- Moody's Investors Service assigned a Ba3 rating to Weatherford International Ltd.'s $500 million 8.75% senior secured notes due 2024. Weatherford's other ratings and negative outlook were unchanged. Net proceeds from the notes offering, which closed on August 28, 2020, were used to repay existing obligations under the company's ABL facility, cash collateralize any outstanding letters of credit (LCs) under the ABL, and add cash to the balance sheet. Concurrent with this note offering, Weatherford terminated its existing $450 million ABL facility. Moody's will withdraw Weatherford's ABL ratings following termination of the ABL facility. The company also upsized its separate $195 million secured LC facility to $215 million in conjunction with these transactions. "While the secured note issue will increase debt and interest burden, by replacing the ABL facility, which was subject to a borrowing base calculation and a springing fixed charge coverage covenant, Weatherford will have more cash and a more secured source of liquidity to navigate a challenging industry environment," said Sajjad Alam, Moody's Senior Analyst. Assignments: Issuer: Weatherford International Ltd. (Bermuda) Senior Secured Notes, Assigned Ba3 (LGD2) RATINGS RATIONALE Along with the upsized secured LC facility, the new senior secured notes will have a first-lien claim to substantially all of Weatherford's assets. However, through an intercreditor agreement, the LC facility has a first out over the secured notes with respect to existing collateral of the LC facility (but not certain future collateral). Moody's rated the new secured notes Ba3, the same as the $215 million LC facility, based on the view that recoveries would be similar for these secured instruments in a default scenario. Weatherford's $2.1 billion 11% senior unsecured notes are rated B3, one notch below the B2 Corporate Family Rating (CFR), because of the significant amount of priority-claim secured debt in Weatherford's capital structure. The new secured notes, the secured LC facility and the unsecured notes, all have the same guarantors. The negative outlook reflects Weatherford's increasing financial leverage and challenging cash flow prospects amid low oil prices and a challenged industry landscape. Weatherford's B2 CFR reflects its increasing financial leverage, weak interest coverage, execution risk surrounding its business transformation and rationalization efforts, and Moody's expectation of negative free cash flow generation through mid-2021. All oilfield services companies will face extreme competition and depressed contract rates through 2021, particularly in North America. The CFR is supported by Weatherford's large scale, diversified, and leading market position in several product categories; broad geographic and customer diversification with a substantial portion of revenue coming from less volatile international markets; and numerous patented products and technologies that are well-known and widely used in the oilfield services (OFS) industry giving the company some competitive advantage. Weatherford's SGL-2 rating reflects good liquidity through 2021. Following the secured notes offering, the company's cash balance has increased while the ABL agreement has been terminated. The company will have over $1 billion of pro forma unrestricted cash following the notes issue. Moody's expects the company to generate negative free cash flow through mid-2021 and rely on its cash balance to cover any funding gap. All of Weatherford's rated debt will mature in 2024, with the LC facility maturing in May, the new secured notes in September, and the unsecured notes in December of that year. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The CFR could be downgraded if leverage cannot be sustained below 6x, the company generates recurring negative free cash flow, or the unrestricted cash balance dwindles below $200 million. The CFR could be upgraded if Weatherford continues to make progress on its restructuring initiatives, reduces financial leverage below 4x, and sustains interest coverage above 2x in an improving industry environment. Weatherford International Ltd. (Bermuda) is a wholly-owned subsidiary of Weatherford International plc, which is incorporated in Ireland, and is a diversified international company that provides a wide range of services and equipment to the global oil and gas industry. The principal methodology used in these ratings was Global Oilfield Services Industry Rating Methodology published in May 2017. ===================== N E T H E R L A N D S ===================== BRIGHT BIDCO: S&P Downgrades Rating to CCC on Weakening Liquidity ----------------------------------------------------------------- S&P Global Ratings lowered its ratings on lights manufacturer Bright Bidco B.V. (Lumileds) and its debt to 'CCC' from 'CCC+'. Lumileds' earnings and cash flows will suffer in 2020 due to the consequences of the COVID-19 pandemic on auto and smartphone production volumes. When the pandemic hit, Lumileds was already facing operational challenges due to low capacity utilization at its manufacturing facilities. In 2019, volumes from its two major business lines (automotive and LED solutions) decreased, leading to a revenue decline of about 20%. In the auto segment, the company suffered from the slowing demand for cars globally, which resulted in a 6% decline in auto production. In the LED solutions segment, which includes flashlights for smartphones, one of Lumileds' major customer decided it would no longer source its parts exclusively from the company, triggering a sales decline of about 12%. S&P said, "For 2020, we anticipate a depressed market environment characterized by auto unit sales down 20%-25% in Europe, about 20% in the U.S., and 8%-10% in China, with a similar trend in auto production. We believe the decline in smartphone shipments will be milder than for auto production, at about 9%. Overall, we expect Lumileds' revenue will decline by 16%-18% in 2020. After considering the company's measures to reduce operating costs and capital expenditure (capex), we forecast its free operating cash flow (FOCF) will remain negative at approximately negative $80 million-negative $60 million, down from about negative $20 million in 2019. Accordingly, we expect its debt to EBITDA will soar to 30x-40x, from an already very high 26.6x in 2019." The high leverage combined with the collapsed debt market value could suggest a higher likelihood of a debt restructuring over the next 12 months absent any significant improvement. Lumileds' liquidity position has further weakened in first-half 2020, raising concerns on the company's ability to meet its needs over the next twelve months. With cash on balance sheet of about $99 million (including $58 million of drawings under the revolving credit facility [RCF]); S&P believes Lumileds' ability to meet its needs over the next twelve months will depend on the following factors: -- the pace of market recovery from second-half 2020. Lumileds will depend on a pick-up in volumes to restore higher utilization rates in its facilities; -- the management of its working capital. S&P understands the company is shortening lead times with customers in order to reduce its inventory levels, still S&P expects negative working capital in the third quarter at least; and -- the raising of additional funds. S&P assumes Lumileds will refrain from increasing current drawings under the $200 million RCF in order to avoid covenant testing. As long as drawings remain below $60 million, the springing covenant on the RCF is not tested. Apart from capex, the issuer's main financial commitments include interest payments of about $45 million in second-half 2020 (which should decrease to $35 million-$40 million in first-half 2021 following swaps termination) and about $17 million of annual amortization under the term loan B. S&P said, "The negative outlook indicates that we could lower our rating on Lumileds if its liquidity weakens further or if a debt restructuring occurs. "We could lower our rating on Lumileds if a weaker operating performance exacerbates Lumileds' liquidity pressure, or the probability of a distressed exchange increases, leading us to anticipate a default within the next six months. "We could change our outlook to stable if Lumileds successfully raises new long-term funding to ease near-term liquidity pressure, paired with a better-than-expected operating performance." ========= S P A I N ========= BBVA CONSUMER 2018-1: Moody's Confirms B3 Rating on Class E Notes ----------------------------------------------------------------- Moody's Investors Service confirmed the ratings of three notes of BBVA CONSUMER AUTO 2018-1 FONDO DE TITULIZACION. The rating action concludes the review for downgrade initiated on June 11, 2020 due to the increased likelihood of deteriorating performance of the auto loans backing the notes due to the economic disruption following the coronavirus outbreak. EUR32,800,000 Class C Notes, Confirmed at Baa1 (sf); previously on Jun 11, 2020 Baa1 (sf) Placed Under Review for Possible Downgrade EUR10,000,000 Class D Notes, Confirmed at Ba2 (sf); previously on Jun 11, 2020 Ba2 (sf) Placed Under Review for Possible Downgrade EUR6,000,000 Class E Notes, Confirmed at B3 (sf); previously on Jun 11, 2020 B3 (sf) Placed Under Review for Possible Downgrade The transaction is a cash securitisation of auto loans extended to obligors in Spain by Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) (A3/(P)A3 Senior Unsecured / A3(cr)/P-2(cr) / A2/P-1 LT Bank Deposits) with the purpose of financing new or used vehicles via car dealers (prescriptores). BBVA also acts as asset servicer, collection and issuer account bank provider. RATINGS RATIONALE The rating confirmation action was prompted by the correction of a model input error related to the default timing assumption. For the placement on review for downgrade action in June 2020, Moody's used an incorrect default timing assumption, which led to defaults and losses being modeled as occurring later than realistically possible, resulting in less excess spread being available to cover losses. The model input error had a meaningful negative rating impact on the model results of Class C, Class D and Class E Notes, which led to these Notes being placed under review for downgrade. That has now been corrected. The rating confirmations reflect the impact that the correction of the default timing assumption error has had on the model results of Class C, Class D and Class E Notes. Moody's has also considered the level of credit enhancement and the risk of a deterioration in the performance of the portfolio and concluded that the net effect of risks posed to the notes is consistent with the current ratings of the notes. Following the end of the revolving period in January 2020, all principal collections are used to repay outstanding notes on a sequential basis. After the July 2020 payment date, the credit enhancement available for the Class C and Class D Notes have slightly increased to 2.91% and 0.91% respectively, from 2.49% and 0.75% at the end of the revolving period. Class E Notes do not benefit from any note subordination. The performance of the portfolio backing the notes has deteriorated since the start of the coronavirus outbreak. Cumulative defaults as a percentage of the original pool balance and replenishments have increased materially, and now stand at 1.40%. Moreover, auto loans in payment holidays currently represent 1.41% as a proportion of the current pool balance. After an analysis of the level of coronavirus-related payment holidays and the deteriorating performance, Moody's increased the Default Probability assumption as a percentage of original portfolio balance from 3.60% to 4.27%, equivalent to 5.00% as a percentage of current portfolio balance. The rapid spread of the coronavirus outbreak, the government measures put in place to contain it and the deteriorating global economic outlook, have created a severe and extensive credit shock across sectors, regions and markets. Its analysis has considered the effect on the performance of consumer assets from the collapse in Spain's economic activity in the second quarter and a gradual recovery in the second half of the year. However, that outcome depends on whether governments can reopen their economies while also safeguarding public health and avoiding a further surge in infections. As a result, the degree of uncertainty around its forecasts is unusually high. Moody's regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. The principal methodology used in these ratings was "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in July 2020. Factors that would lead to an upgrade or downgrade of the ratings: Factors or circumstances that would lead to an upgrade of the ratings include: (1) a decrease in sovereign risk; (2) performance of the underlying collateral that is better than Moody's expected; (3) an increase in available credit enhancement; and (4) improvements in the credit quality of the transaction counterparties. Factors or circumstances that would lead to a downgrade of the ratings include: (1) an increase in sovereign risk; (2) performance of the underlying collateral that is worse than Moody's expected; (3) deterioration in the notes' available credit enhancement; and (4) deterioration in the credit quality of the transaction counterparties. SANTANDER CONSUMER 2020-1: DBRS Gives Prov. BB Rating to D Notes ---------------------------------------------------------------- DBRS Ratings GmbH assigned provisional ratings to the following series of notes to be issued by Santander Consumer Spain Auto 2020-1, FT (the Issuer): -- Series A Notes at AA (sf) -- Series B Notes at A (sf) -- Series C Notes at BBB (high) (sf) -- Series D Notes at BB (sf) -- Series E Notes at B (low) (sf) DBRS Morningstar does not rate the Series F notes expected to be issued in this transaction. The rating on the Series A Notes addresses the timely payment of interest and the ultimate repayment of principal by the legal final maturity date in March 2033. The ratings on the Series B Notes, Series C Notes, Series D Notes, and Series E Notes address the ultimate payment of interest and the ultimate repayment of principal by the legal final maturity date. DBRS Morningstar based its ratings on a review of the following analytical considerations: -- The transaction's capital structure, including form and sufficiency of available credit enhancement. -- Credit enhancement levels are sufficient to support DBRS Morningstar's projected expected net losses under various stress scenarios. -- The ability of the transaction to withstand stressed cash flow assumptions and repay investors according to the terms of the notes. -- The seller's, originator's, and servicer's financial strength and their capabilities with respect to originations, underwriting, and servicing. -- The other parties' financial strength with regard to their respective roles. -- DBRS Morningstar's operational risk review of Santander Consumer E.F.C. (SC EFC), which it deemed to be an acceptable servicer. -- The credit quality, diversification of the collateral, and historical and projected performance of the portfolio. -- DBRS Morningstar's current sovereign rating of the Kingdom of Spain at "A" with a Stable trend. -- The consistency of the transaction's legal structure with DBRS Morningstar's "Legal Criteria for European Structured Finance Transactions" methodology, and the presence of legal opinions that address the true sale of the assets to the Issuer. The transaction represents the issuance of Series A Notes, Series B Notes, Series C Notes, Series D Notes, and Series E Notes backed by a portfolio of approximately EUR 520 million of fixed-rate receivables related to auto loans granted by SC EFC (the originator) to private individuals and corporates residing in Spain for the acquisition of new or used vehicles. The originator will also service the portfolio. The Series F Notes will be issued to fund the cash reserve. The transaction allocates payments on a combined interest and principal priority of payments basis and benefits from an amortizing EUR 5.2 million cash reserve funded through the subscription proceeds of the Series F Notes. The cash reserve can be used to cover senior costs and interest on the Series A Notes, Series B Notes, Series C Notes, Series D Notes, and Series E Notes. The cash reserve will be part of the available funds. The repayment of the notes will start on the first payment date in December 2020 on a pro rata basis unless certain events such as breach of performance triggers, insolvency of the servicer, or termination of the servicer occur. Under these circumstances, the principal repayment of the notes will become fully sequential, and the switch is not reversible. Interest and principal payments on the notes will be made quarterly on the 20th of March, June, September, and December. The Series A Notes, Series B Notes, and Series C Notes pay interest indexed to three-month Euribor whereas the total portfolio pays a fixed-interest rate. The interest rate risk arising from the mismatch between the Issuer's liabilities and the portfolio is hedged through a cap collateral agreement with an eligible counterparty. Santander Consumer Finance acts as the account bank for the transaction. Based on the DBRS Morningstar rating of Santander Consumer Finance, the downgrade provisions outlined in the transaction documents, and structural mitigants inherent in the transaction structure, DBRS Morningstar considers the risk arising from the exposure to Santander Consumer Finance 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. DBRS Morningstar analyzed the transaction structure in Intex DealMaker, considering the default rates at which the notes did not return all specified cash flows. The provisional ratings are based on information provided to DBRS Morningstar by the Issuer and by its agents as of the date of this press release. The ratings can be finalized upon review of final information, data, legal opinions, and the executed version of the governing transaction documents. To the extent that the information or the documents provided to DBRS Morningstar as of this date differ from the final information, DBRS Morningstar may assign different final ratings to the notes. The Coronavirus Disease (COVID-19) and the resulting isolation measures have caused an economic contraction, leading to sharp increases in unemployment rates and income reductions for many borrowers. DBRS Morningstar anticipates that delinquencies may arise in the coming months for many ABS transactions, some meaningfully. The ratings are based on additional analysis and adjustments to expected performance as a result of the global efforts to contain the spread of the coronavirus. For this transaction, DBRS Morningstar assumed a moderate decline in the expected recovery rate. Notes: All figures are in Euros unless otherwise noted. ===================== S W I T Z E R L A N D ===================== SWISSPORT: New Owners to Take Over Under Debt-for-Equity Swap ------------------------------------------------------------- John Miller at Reuters reports that Swissport is getting new owners in a debt-for-equity swap that includes a EUR500 million (US$595.20 million) long-term debt facility and a EUR300 million interim facility to help keep it afloat, the airport services company said on Aug. 31. According to Reuters, senior secured creditors including SVP Global, Apollo Global Management, TowerBrook Capital Partners, Ares Management, Barclays Bank PLC, Cross Ocean Partners and King Street Capital Management will take ownership. Swissport, as cited by Reuters, said, HNA Group, its debt-strapped Chinese owner until now, "will share in the value creation" contingent on a future exit valuation. The company said with restructured finances, its managers are now hoping to poach business from rivals made even more vulnerable due to COVID-19's dramatic hit to airport traffic, Reuters notes. =========== T U R K E Y =========== GLOBAL LIMAN: Fitch Keeps B Sr. Unsec. Notes Rating on Watch Neg. ----------------------------------------------------------------- Fitch Ratings has maintained the Rating Watch Negative (RWN) on Global Liman Isletmeleri A.S.'s B Rating on (GLI) USD250 million senior unsecured notes due in November 2021. RATING RATIONALE The rating watch reflects uncertainty around the Group's ongoing strategic review, the considerable impact of the coronavirus pandemic on the cruise segment, which comprised around 53% of the Group's segment EBITDA in 2019 as well as the refinancing risk associated with the USD250 million bullet debt due in November 2021. Since there is no visibility at the moment on when the strategic review will be completed, the resolution of the Rating Watch may take longer than six months. The rating reflects its expectation that the credit profile of the group, which comprises GLI and its parent company Global Ports Holding (GPH) and its cruise and commercial port subsidiaries, will be impacted by a severe demand shock related to the COVID-19 pandemic. GPH's liquidity is expected to be sufficient to meet commitments in 2020 and it has some financial flexibility to partially offset the expected revenue contraction. Fitch assumes GPH's commercial ports will recover from the 2020 shock by 2021, and that cruise ports will experience a more prolonged downturn and delayed recovery. However, if the severity and duration of the outbreak is longer than expected the rating case will be revised accordingly. Fitch will continue to monitor GPH's strategic review and reassess the credit profile based on any changes in the portfolio and debt profile. The pandemic and related government containment measures worldwide create an uncertain global environment for the ports sector. GPH's performance data through most recently available issuer data has indicated severe impairment, particularly in the cruise segment. Material changes in revenue and cost profile are occurring across the transportation sector and will continue to evolve as economic activity and government restrictions respond to the situation. Fitch's ratings are forward-looking in nature, and Fitch will monitor developments in the sector for their severity and duration, and incorporate revised base and rating case qualitative and quantitative inputs based on expectations for performance and assessment of key risks. KEY RATING DRIVERS Coronavirus Affecting Demand The pandemic is leading to an unprecedented impact on travellers' mobility. Fitch expects a significant volume contraction in GPH's commercial ports in Turkey, which were already affected in 2019 by trade tariffs and barriers and weaker imports to China from its main commercial port, Akdeniz. While cruise ports performed well in 2019, Fitch expects a much sharper contraction in 2020 and a progressive delayed recovery through its forecast period. Defensive Measures GPH has the ability to reduce operating expenses, as shown by its ability to maintain high EBITDA margins in its commercial segment despite volume underperformance in 2019. Fitch expects similar flexibility in the cruise segment as well. Further, Fitch expects reduced capex and dividends if there is a prolonged reduction in revenues due to the immediate shock as well as any macroeconomic impact and /or behavioural changes. However, significant debt-funded expansionary capex is expected to proceed at Nassau and Antigua Cruise Ports in the next two years, funding for which has already been secured. In its revised Fitch Rating Case (FRC), Fitch assumes zero dividends in 2020-21 as well as some reduction in planned capex over the next four years. Credit Metrics - Continued Impairment, Uncertain Recovery Under the updated FRC, Fitch assumes a like-for-like revenue contraction of about 45% in 2020, resulting in a leverage peak of over 12x, with revenue gradually recovering by 2023. GPH deleverages but remains highly leveraged over the forecast period. Fitch is closely monitoring the development in the commercial and cruise port sectors and will revise the FRC if the severity and the duration of pandemic materially differs from its expectations. Sufficient Liquidity for 2020, Bullet in 2021 GPH has cash balances of about USD122 million reported as of June 30, 2020, sufficient to cover 2020 commitments. However, in November 2021 GLI's USD250 million Eurobond matures, introducing significant refinancing risks. The outcome of the strategic review could negatively impact or support GPH's ability to refinance the Eurobond well ahead of the maturity date. Covenant Breach Results in Lock-Up The leverage ratio of GPH's Eurobond continued to exceed (at June 30, 2020) the incurrence covenant of 5.0x with a value of 6.70x, and Fitch expects continued elevated leverage during its forecast period. As this high leverage results in limitations on Group additional indebtedness and shareholder distributions, Fitch views the breach primarily as another indicator of an impairment in credit profile and as bringing some protection for bondholders as the situation evolves. Key Rating Drivers - Summary Assessments Concentration Risk, Volatile Business - Revenue Risk (Volume): Weaker Some Flexibility, Low Visibility - Revenue Risk (Price): Midrange Sufficient Capacity - Infrastructure Development and Renewal: Stronger Bullet Debt, Refinancing Risk - Debt Structure: Weaker RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: Fitch does not anticipate an upgrade as reflected in the RWN. Quicker-than-assumed recovery from COVID-19 shock supporting sustained credit metrics recovery would allow us to return the outlook to stable Conclusion of the strategic review resulting in a stable cash flow portfolio with reduced leverage may lead to a positive rating action. Factors that could, individually or collectively, lead to negative rating action/downgrade: Further deterioration in GPH's volumes and revenues beyond its rating case assumptions Failure to refinance the USD250 million Eurobond well ahead of the maturity date Conclusion of the strategic review in a way that impaired GPH's cash flow resilience and / or leverage profile. TRANSACTION SUMMARY GPH operates cruise ports and commercial ports globally. Three of its ports are in Turkey (Port Akdeniz, Ege Ports and Bodrum). Over 50% of group EBITDA was generated in Turkey in 2019. TURKIYE SISE: Fitch Affirms BB- LT IDR, Alters Outlook to Neg. -------------------------------------------------------------- Fitch Ratings has revised the Outlooks on four Turkish corporate issuers' Long-Term Foreign-Currency Issuer Default Ratings to Negative from Stable and affirmed all ratings. KEY RATING DRIVERS The rating actions follow the revision of the Outlook on Turkey's Long-Term Foreign-Currency IDR to Negative from Stable. The issuers' strong exposure to the Turkish economy means their Foreign-Currency IDRs are influenced by the Turkish Country Ceiling. The revision of the Outlooks reflects the likely correlation of future rating actions with changes to the sovereign rating, assuming that the Country Ceiling moves in line with the sovereign IDR. Emlak Konut Gayrimenkul Yatirim Ortakligi A.S. ('Fitch Affirms Turkish Residential Developer Emlak Konut at 'BB-'; Outlook Negative' dated October 14, 2019) Ordu Yardimlasma Kurumu (OYAK) Holding ('Fitch Affirms Ordu Yardimlasma Kurumu (Oyak) at 'BB'; Outlook Stable ' dated January 16, 2020) Turkiye Sise ve Cam Fabrikalari A.S. ('Fitch Affirms Sisecam at 'BB-'; Outlook Stable' dated July 2, 2020) Arcelik A.S. (Fitch Downgrades Arcelik to 'BB';Outlook Stable dated May 14, 2020) RATING SENSITIVITIES ESG CONSIDERATIONS The highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity(ies), either due to their nature or to the way in which they are being managed by the entity(ies). RATING ACTIONS Emlak Konut Gayrimenkul Yatirim Ortakligi A.S. -- LT IDR; BB- Affirmed; previously at BB-; -- LC LT IDR; BB- Affirmed; previously at BB-; -- Natl LT Rating; AA (tur) Affirmed; previously at AA(tur); Turkiye Sise ve Cam Fabrikalari AS -- LT IDR; BB- Affirmed; previously at BB-; -- senior unsecured LT; BB- Affirmed; previously at BB-; Arcelik -- LT IDR; BB Affirmed; previously at BB; -- LC LT IDR; BB Affirmed; previously at BB; -- Natl LT Rating; AAA (tur) Affirmed; previously at AAA (tur); -- senior unsecured LT; BB Affirmed; previously at BB; Ordu Yardimlasma Kurumu (Oyak) -- LT IDR; BB Affirmed; previously at BB =========================== U N I T E D K I N G D O M =========================== ANN SUMMERS: May Seek to Restructure Rent Costs Through CVA ----------------------------------------------------------- BBC News reports that retailer Ann Summers has warned its stores' landlords they must take "a more pragmatic approach" to negotiations over rents. According to BBC, the lingerie and sex toy chain said if this did not happen, it would ask to restructure its rent costs through a Company Voluntary Arrangement (CVA). It fears sales could be slow to recover amid the pandemic, making it hard to pay rents and business rates, BBC discloses. Boss Jacqueline Gold said landlords needed to recognize things had changed, BBC notes. "Ultimately no retailer can afford to run stores unprofitably, and with business rates set to return next spring, the challenge of property costs is going to become even more pressing than ever," BBC quotes Ms. Gold as saying. Writing in Retail Week, Ms. Gold, as cited by BBC, said the threat of a CVA--a type of rescue deal that enables retailers to shut unprofitable stores and reduce their rent on others--was "no idle threat". She said it was the only way to resolve the problem if landlords refused to renegotiate leases on her 90 High Street shops, BBC relates. GENESIS MORTGAGE 2019-1: DBRS Confirms BB(high) Rating on E Notes ----------------------------------------------------------------- DBRS Ratings Limited confirmed its ratings of the notes issued by Genesis Mortgage Funding 2019-1 plc (the Issuer) as follows: -- Class A Notes at AAA (sf) -- Class B Notes at AA (sf) -- Class C Notes at A (high) (sf) -- Class D Notes at BBB (high) (sf) -- Class E Notes at BB (high) (sf) -- Class F Notes at B (low) (sf) The rating of the Class A Notes addresses the timely payment of interest and ultimate payment of principal on or before the legal final maturity date in December 2056. The ratings of Class B, Class C, Class D, Class E, and Class F Notes address the ultimate payment of interest and principal while junior, and timely payment of interest while the senior-most class outstanding. The confirmations 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 June 2020 payment date. -- Portfolio default rate (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. -- Current economic environment and an assessment of sustainable performance, as a result of the Coronavirus Disease (COVID-19) pandemic. The Issuer is a securitization of first-lien UK owner-occupied and buy-to-let residential mortgage loans originated and serviced by Bluestone Mortgages Limited. PORTFOLIO PERFORMANCE As of June 2020, loans two to three months in arrears represented 0.3% of the outstanding portfolio balance, and loans more than three months in arrears represented 1.1%. The cumulative loss ratio was zero. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS DBRS Morningstar conducted a loan-by-loan analysis of the remaining pool of receivables and updated its base case PD and LGD assumptions to 9.2% and 14.9%, respectively. CREDIT ENHANCEMENT AND RESERVES As of the June 2020 payment date, credit enhancement to the Class A, Class B, Class C, Class D, Class E, and Class F Notes was 19.6%, 14.6%, 11.8%, 9.0%, 6.2%, and 3.9%, respectively, compared with 18.5%, 14.0%, 11.5%, 9.0%, 6.5%, and 4.5%, respectively, at the DBRS Morningstar initial rating. Credit enhancement consists of the subordination of the junior notes and a general reserve fund (GRF). Credit enhancement to the Class D to F Notes has decreased slightly since closing due to an increase in under collateralization following the use of available principal funds to fund the liquidity reserve fund (LRF) on the first payment date. However, excess amounts as the LRF amortizes are released through the principal priority of payments, which will reduce the under collateralization over time. The GRF is currently funded to its target level of GBP 3.9 million, equal to 2% of the outstanding Class A to Class G Notes. The GRF is available to cover senior fees, interest shortfalls, and principal losses via the principal deficiency ledgers on the notes. The LRF was funded on the first interest payment date using available principal funds and is currently funded to its target level of GBP 2.4 million, equal to 1.5% of the outstanding Class A Notes. The LRF is available to cover senior fees and interest shortfall on the Class A Notes. Citibank N.A./London Branch acts as the account bank for the transaction. Based on the DBRS Morningstar private rating of Citibank N.A./London Branch, 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 Class A Notes, as described in DBRS Morningstar's "Legal Criteria for European Structured Finance Transactions" methodology. National Australia Bank Limited acts as the swap counterparty for the transaction. DBRS Morningstar's public long-term rating of National Australia Bank Limited at AA is above the First Rating Threshold as described in DBRS Morningstar's "Derivative Criteria for European Structured Finance Transactions" methodology. DBRS Morningstar analyzed the transaction structure in Intex DealMaker. The Coronavirus Disease (COVID-19) and the resulting isolation measures have caused an economic contraction, leading to sharp increases in unemployment rates and income reductions for many borrowers. DBRS Morningstar anticipates that delinquencies may arise in the coming months for many RMBS transactions, some meaningfully. The ratings are based on additional analysis and adjustments to expected performance as a result of the global efforts to contain the spread of the coronavirus. For this transaction, DBRS Morningstar increased its expected default rate for self-employed borrowers, assessed a potential reduction in portfolio prepayment rates, incorporated a moderate reduction in residential property values, and considered reported payment holidays in its cash flow analysis. Notes: All figures are in British pound sterling unless otherwise noted. NEWDAY FUNDING 2018-1: DBRS Keeps B(high) Cl. F Notes Rating UR-Neg ------------------------------------------------------------------- DBRS Ratings Limited maintained its ratings of the following notes issued by the NewDay Funding and NewDay Partnership Funding related transactions Under Review with Negative Implications (UR-Neg.): NewDay Funding 2018-1 Plc: -- Class B Notes rated AA (high) (sf) -- Class C Notes rated A (high) (sf) -- Class D Notes rated BBB (low) (sf) -- Class E Notes rated BB (low) (sf) -- Class F Notes rated B (high) (sf) NewDay Funding 2018-2 Plc: -- Class B Notes rated AA (high) (sf) -- Class C Notes rated A (sf) -- Class D Notes rated BBB (sf) -- Class E Notes rated BB (low) (sf) -- Class F Notes rated B (high) (sf) NewDay Funding 2019-1 Plc: -- Class B Notes rated AA (high) (sf) -- Class C Notes rated A (sf) -- Class D Notes rated BBB (sf) -- Class E Notes rated BB (sf) -- Class F Notes rated B (high) (sf) NewDay Funding 2019-2 Plc: -- Class B Notes rated AA (high) (sf) -- Class C Notes rated A (sf) -- Class D Notes rated BBB (low) (sf) -- Class E Notes rated BB (sf) -- Class F Notes rated B (high) (sf) NewDay Funding Loan Note Issuer VFN-F1 V1: -- Class A Notes rated BBB (low) (sf) -- Class E Notes rated BB (low) (sf) -- Class F Notes rated B (high) (sf) NewDay Funding Loan Note Issuer VFN-F1 V2: -- Class B Notes rated AA (high) (sf) -- Class C Notes rated A (high) (sf) -- Class D Notes rated BBB (low) (sf) -- Class E Notes rated BB (low) (sf) -- Class F Notes rated B (high) (sf) NewDay Partnership Funding 2017-1 plc: -- Class B Notes rated AAA (sf) -- Class C Notes rated AA (high) (sf) -- Class D Notes rated A (sf) -- Class E Notes rated BBB (sf) -- Class F Notes rated B (sf) NewDay Partnership Funding Loan Note Issuer VFN-P1 V1: -- Class A Loan Note rated A (sf) -- Class E Loan Note rated BB (sf) -- Class F Loan Note rated B (sf) NewDay Partnership Funding Loan Note Issuer VFN-P1 V2: -- Class B Loan Note rated AAA (sf) -- Class C Loan Note rated AA (high) (sf) -- Class D Loan Note rated A (sf) -- Class E Loan Note rated BB (sf) -- Class F Loan Note rated B (sf) In each transaction, the ratings address the timely payment of scheduled interest and ultimate repayment of principal by the legal maturity date. DBRS Morningstar also rates several Class A Notes of these Issuers at AAA (sf), which were not placed UR-Neg. For more information, please refer to www.dbrsmorningstar.com. These notes are part of the master issuance structure of Newday Funding and Newday Partnership, where all series of notes are supported by the same pool of receivables and generally issued under the same requirements regarding servicing, amortization events, priority of distributions, and eligible investments. On May 28, 2020, DBRS Morningstar placed the ratings on the notes UR-Neg. in order to assess if the transactions' performance trend could be sustainable amid the Coronavirus Disease (COVID-19) environment. KEY RATING DRIVERS AND CONSIDERATIONS Generally, the conditions that lead to the assignment of reviews are resolved within a 90-day period. The ratings were placed UR-Neg. on May 28, 2020 and DBRS Morningstar has extended the UR-Neg. status beyond the 90-day period to keep monitoring the transactions’ performance given the current negative economic environment due to the coronavirus pandemic. DBRS Morningstar will consider the reported latest performance the NewDay Funding and NewDay Partnership Funding transactions to assess the medium- to long-term effects of the coronavirus pandemic. Additionally, DBRS Morningstar will consider the macroeconomic developments relative to the outbreak of the pandemic, including the duration and severity of the crisis on the UK economy. DBRS Morningstar typically endeavors to resolve the status of ratings Under Review with Negative Implications as soon as appropriate. If heightened market uncertainty and volatility persists, DBRS Morningstar may extend the Under Review status for a longer period of time. Notes: All figures are in British pound sterling unless otherwise noted. SEADRILL LTD: Proposes to Turn Over Stakes in Oil Service Firms --------------------------------------------------------------- Nerijus Adomaitis at Reuters reports that offshore drilling rig contractor Seadrill said on Aug. 31 it has proposed to creditors to turn over its stakes in oil services firms Archer and Seadrill Seabras to redeem its outstanding secured notes. The company controlled by Norwegian-born billionaire John Fredriksen has been in talks with creditors since the end of last year over new debt restructuring, Reuters relates. According to Reuters, Seadrill said it was approached by a group of noteholders in May about a potential deal, and it responded on Aug. 15 with the offer to transfer its stakes in Seadrill Seabras, a pipe-laying vessel contractor, and Archer, an oilfield services firm. Seadrill held a 50% stake in Seadrill Seabras and a 15.7% stake in Archer as of the end of February, according to its annual report, Reuters discloses. As part of its deal with creditors under U.S. Chapter 11 bankruptcy proceedings in 2018, Seadrill issued US$880 million in new secured notes, Reuters states. It had US$476 million outstanding in secured notes at the end of last year, Reuters relays, citing its annual financial report. Seadrill said the deal with noteholders could be implemented either via a new Chapter 11 process or under the laws of Bermuda, where the company is registered, Reuters notes. Seadrill warned on Aug. 25 that ongoing efforts to restructure its debt could leave current shareholders with minimal or no ownership, Reuters recounts. About Seadrill Ltd. Seadrill Limited is a deepwater drilling contractor providing drilling services to the oil and gas industry. It is incorporated in Bermuda and managed from London. Seadrill and its affiliates own or lease 51 drilling rigs, which represents more than 6% of the world fleet. On Sept. 12, 2017, Seadrill Limited and 85 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 17-60079) after reaching terms of a reorganization plan that would restructure $8 billion of funded debt. Together with the chapter 11 proceedings, Seadrill, North Atlantic Drilling Limited ("NADL") and Sevan Drilling Limited ("Sevan") commenced liquidation proceedings in Bermuda to appoint joint provisional liquidators and facilitate recognition and implementation of the transactions contemplated by the RSA and Investment Agreement. On July 2, 2018, Seadrill emerged from U.S. Chapter 11 bankruptcy protection. Seadrill also commenced dissolution proceedings in Bermuda in accordance with the confirmed Chapter 11 Plan. [*] UK: Restructuring Experts Expect Fresh Wave of Insolvencies --------------------------------------------------------------- Kate Beioley, Tabby Kinder and Daniel Thomas at The Financial Times report that UK insolvency and restructuring experts have been bombarded for months, as industries hardest hit in the pandemic have suffered an onslaught of company failures and emergency refinancings. But specialists across accountancy, investment banking and law are now preparing for a fresh wave of corporate distress in the autumn, when government furlough and loan schemes that have kept thousands of businesses afloat and millions employed come to an end, the FT discloses. Peter Marshall, managing director at Houlihan Lokey, an investment bank, said there was a feeling of the calm before the storm, the FT notes. He said most larger companies had dealt with their immediate liquidity issues caused by the pandemic--through agreeing covenant waivers with their creditors, for example, the FT relates. But few had prepared for a second wave of the virus or for a "deeper, longer" downturn in the economy. "There are a series of crises looming," the FT quotes leading insolvency barrister Mark Phillips QC, who acts for the winding down of Lehman Brothers in the US, as saying. "The full wave of insolvencies hasn't even started yet." So far the bulk of work has been focused on helping companies--including swaths of the UK high street--to restructure debt and raise capital to avoid collapse, the FT states. But the winding down of state support schemes is expected to trigger a large number of insolvency proceedings, as many of those companies run out of cash, the FT notes. According to the FT, restructuring advisers said they were working at "intense" levels due to the volume of companies--particularly in the crisis-hit retail, casual dining and travel sectors--that were negotiating with landlords, lenders and suppliers. The British Property Federation said 16 company voluntary arrangements--deals in which distressed companies negotiate lower rents to cut costs--have already been arranged this year, compared with 12 for the whole of 2019, the FT relates. Insolvency experts are drawing up lists of companies and sectors most at risk in the coming months, the FT notes. Businesses in the retail, casual dining and travel sectors have so far been most directly affected by the economic lockdown, the FT states. One partner at a top US firm, as cited by the FT, said lawyers are now eyeing up aircraft leasing companies and anything "travel related" as potentially at risk. According to the FT, Yen Sum, partner at Latham & Watkins, pointed to industries such as automotive, saying "people may put off buying that next car and in any event, production may be disrupted". She added that aerospace and aviation were also affected as well as potentially associated industries such as chemicals, the FT notes. Blair Nimmo, UK head of restructuring at KPMG, reported a surge in industrial, manufacturing, real estate and financial services restructuring work, the FT discloses. ********* 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *