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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Tuesday, January 4, 2022, Vol. 23, No. -3

                           Headlines



R U S S I A

CAPITAL ASSET: Bank of Russia Ends Provisional Administration
PROINVESTBANK: Bank of Russia Ends Provisional Administration
UNITED RESERVE: Bank of Russia Ends Provisional Administration


U N I T E D   K I N G D O M

LORNE HOTEL: Bought Out of Administration by PL Glasgow
WEIR & MCQUISTON: Owes Almost GBP2 Million to Suppliers
[*] UK: Independent Watchdog to Oversee UK insolvency Sector

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R U S S I A
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CAPITAL ASSET: Bank of Russia Ends Provisional Administration
-------------------------------------------------------------
The Bank of Russia on Dec. 30 disclosed that the provisional
administration to manage Limited Liability Company CAPITAL ASSET
MANAGEMENT has fulfilled the obligation to transfer the mortgage
coverage of Mortgage Participation Certificate of CAPITAL for trust
management to the state management company (the State Development
Corporation VEB.RF).

Accordingly, on December 28, 2021, the Bank of Russia terminated
the activity of provisional administration to manage CAPITAL ASSET
MANAGEMENT.

The temporary administration was appointed by Bank of Russia Order
No. OD-2663, dated November 21, 2019, as CAPITAL ASSET MANAGEMENT
failed to fulfill its obligation stipulated by Subclause 1 of
Clause 15 of Article 61.2 of Federal Law No. 156-FZ, dated November
29, 2001, "On Investment Funds", after the cancellation of its
licence to manage investment funds, unit investment funds, and
non-governmental pension funds.



PROINVESTBANK: Bank of Russia Ends Provisional Administration
-------------------------------------------------------------
On December 30, 2021, the Bank of Russia terminated the activity of
the provisional administration appointed to manage the credit
institution Proinvestbank (hereinafter, the Bank).

As assessed by the provisional administration, the value of the
Bank's assets is insufficient to fulfil its obligations to
creditors.

On December 16, 2021, the Arbitration Court of the Perm Territory
recognised the Bank as insolvent (bankrupt) and initiated a
bankruptcy proceeding against it.  The State Corporation Deposit
Insurance Agency was appointed as receiver.

Further information on the results of the provisional
administration's activity is available on the Bank of Russia
website.

Settlements with the Bank's creditors will be made in the course of
the bankruptcy proceeding as the assets are sold (enforced). The
quality of these assets is the responsibility of the Bank's former
management and owners.

The provisional administration was appointed by virtue of Bank of
Russia Order No. OD-743, dated April 23, 2021, following the
revocation of the banking licenсe from Proinvestbank.



UNITED RESERVE: Bank of Russia Ends Provisional Administration
--------------------------------------------------------------
On December 30, 2021, the Bank of Russia terminated the activity of
the provisional administration appointed to manage the credit
institution Joint-stock company United Reserve Bank (hereinafter,
the Bank).

No signs of insolvency (bankruptcy) were established as a result of
the credit institution inspection conducted by the provisional
administration.

On December 16, 2021, the Court of Arbitration of the City of
Moscow issued a ruling on the forced liquidation of the Bank.

The State Corporation Deposit Insurance Agency was appointed as
receiver.

Further information on the results of the provisional
administration's activity is available on the Bank of Russia
website.

The provisional administration was appointed by virtue of Bank of
Russia Order No. OD-2079, dated October 8, 2021, following the
revocation of the Bank's banking licence.




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U N I T E D   K I N G D O M
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LORNE HOTEL: Bought Out of Administration by PL Glasgow
-------------------------------------------------------
Consultancy.uk reports that a hotel forced to close its doors
during the UK's winter lockdown has been sold out of
administration.

According to Consultancy.uk, experts from Interpath Advisory found
a buyer for Lorne Hotel, after being appointed to the
administration in April 2021.

Located in Glasgow, Lorne Hotel is a 102-bed complex situated on
Sauchiehall Street.  The three-star hotel was forced to shut down
operations in winter of 2020, due to the impact of the pandemic,
Consultancy.uk recounts.

Historically, the hotel's owner, Bellhill, had been a profitable
business.  However, Covid-19 restrictions prevented it operating
its hotel, bar and restaurant at Lorne Hotel during 2020,
Consultancy.uk notes.  Following a significant loss in turnover,
the company's director took various steps to reduce costs and
manage cash flow during the pandemic, Consultancy.uk states.

Despite these changes, an adverse finding in a legal action against
the company in April 2021 left the director with little choice but
to put the business into administration, Consultancy.uk relates.
The news saw 30 staff made redundant, while Interpath Advisory's
Blair Nimmo and Alistair McAlinden were installed to oversee the
company's sale in May, Consultancy.uk relays.

The property of Lorne Hotel was marketed for sale on behalf of the
joint administrators by business property adviser Christie & Co.
Following that process, the hotel has been bought out of
administration by PL Glasgow, Consultancy.uk discloses.



WEIR & MCQUISTON: Owes Almost GBP2 Million to Suppliers
-------------------------------------------------------
Perry Gourley at The Scotsman reports that dozens of Scottish firms
are set to be left out of pocket by the collapse of a construction
industry contractor which owed almost GBP2 million to suppliers
when it went under.

Administrators were appointed at mechanical and electrical
specialist Weir & McQuiston (Scotland) in November and the 93 staff
made redundant, The Scotsman relates.

The family-run firm was founded in Wishaw, North Lanarkshire, in
1976 with just three employees and the workforce peaked at more
than 200 in 2019.

According to The Scotsman, very tight margins in the construction
industry, issues caused by the shutdown of construction during the
pandemic and problems with labour and materials shortages were all
blamed for its demise.

A report filed by administrators from Azets also said main
contractors had not been willing to work together in getting a
compromise over project costs, The Scotsman notes.

The update report shows estimated unsecured creditor claims may
amount to around GBP4.3 million, including just under GBP2 million
owed to trade creditors, although the final figure could reduce
depending on the level of debts recovered and amounts raised from
work in progress, The Scotsman states.

A firm has been appointed to recover outstanding money owed but the
administrators said a significant amount of work is needed to
finalize accounts on work in progress, The Scotsman says.  It is
likely to be up to two years or longer before the debt collection
process can be completed, The Scotsman discloses.

More than 130 suppliers are owed money by the firm, including local
van hire firms, skip suppliers and cleaning contractors, according
to The Scotsman.

The 93 former staff have submitted claims to the Redundancy
Payments Office totalling GBP139,000, The Scotsman relays.  HM
Revenue and Customs has also submitted a claim for GBP1.34 million
for money owed in tax and VAT, The Scotsman notes.


[*] UK: Independent Watchdog to Oversee UK insolvency Sector
------------------------------------------------------------
Michael O'Dwyer at The Financial Times reports that an independent
watchdog will oversee the UK insolvency sector, ending decades of
self-regulation, as part of a proposed government shake-up of the
industry in the wake of a series of scandals.

According to the FT, the plans, published on Dec. 21, would
streamline the regulation of 1,600 licensed insolvency
practitioners in England, Scotland and Wales by replacing the four
professional bodies to which supervision is currently devolved.

The existing system is too complex and inconsistent and has led to
weaknesses in regulation, according to the Insolvency Service,
which would oversee the new watchdog, the FT notes.  A consultation
on the plans will run until March 25, the FT states.

The new system would probably lead to larger fines for wrongdoing
because the watchdog would have the power to penalise insolvency
groups and not just individual practitioners as happens at present,
the FT says.

The proposed overhaul follows a scathing report on the sector in
September by a cross-party group of MPs, which branded the
insolvency industry a “wild west”, the FT notes.

Insolvency practitioners play a crucial role in the financial
system, running processes such as the bankruptcies of individuals
and the administration or liquidation of insolvent companies,
according to the FT.

The proposals come after the number of business insolvencies in
November returned to pre-pandemic levels following the withdrawal
of government pandemic supports and with businesses battling rising
costs and supply chain problems, the FT discloses.

The planned reforms include a new compensation mechanism for
parties adversely affected by mistakes or wrongdoing by insolvency
practitioners, the FT relays.  A new public register would name the
individuals and groups authorised to provide insolvency services
and details of any previous sanctions against them, the FT says.

The shake-up, one of the biggest upheavals in insolvency regulation
in 35 years, would lead to the direct regulation of groups offering
insolvency services, similar to the regimes in other areas of
professional services, such as audit and law, the FT notes.

Under existing rules, individual insolvency practitioners are
regulated but their employers are not, according to
the FT.

Regulating firms directly could result in much larger fines for
wrongdoing because penalties would likely be linked to the size of
the group,  the FT states.



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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 2022.  All rights reserved.  ISSN 1529-2754.

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