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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, April 19, 2022, Vol. 23, No. 72

                           Headlines



I R E L A N D

NORDIC AVIATION: IRS Withdraws Objection to Bankruptcy Plan


I T A L Y

LIMA CORPORATE: S&P Alters Outlook to Negative, Affirms 'B-' ICR


M O L D O V A

MOLDOVA: Moody's Affirms B3 Issuer Rating & Alters Outlook to Neg.


N E T H E R L A N D S

IGNITION TOPCO: Moody's Affirms B3 CFR, Alters Outlook to Negative


R U S S I A

[*] RUSSIA: Bankruptcy Only "A Matter of Time", EU Pres. Says
[*] RUSSIA: Pledges RUR19.5 Bil. in State Support for Airlines


T U R K E Y

ONUR AIR: Declared Bankrupt After Ex-Pilot Files Wage Suit


U K R A I N E

[*] UKRAINE: Discusses Post-War Reconstruction with IMF Official


U N I T E D   K I N G D O M

THOMAS COOK: Customers, Creditors Urged to Submit Claims
[*] UK: Lenders Expect Business Loan Defaults to Rise

                           - - - - -


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I R E L A N D
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NORDIC AVIATION: IRS Withdraws Objection to Bankruptcy Plan
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Sarah Collins at Independent.ie reports that the US tax authority
has lifted its objection to Limerick-based aircraft lessor Nordic
Aviation Capital's bankruptcy plan.

Nordic Aviation Capital (NAC) has been seeking to get out from
under US$6.3 billion (EUR5.8 billion) of debt by handing it to
lenders, Independent.ie relates.

According to Independent.ie, the US Internal Revenue Service said
in a filing on April 15 that it was withdrawing its objection to
the bankruptcy plan on the condition that the lenders pay any
administrative claims without the IRS having to file a request for
them.

The IRS had raised a last-minute objection to the plan last week on
technical grounds, Independent.ie notes.

NAC entered a US Chapter 11 bankruptcy process in December 2021,
with a final hearing in the case -- when a US court in the state of
Virginia will be asked to approve NAC's restructuring deal with its
creditors and debtors -- scheduled today, April 19, Independent.ie
discloses.

The outstanding tax debt owed by Nordic is modest, around
US$250,000, Independent.ie states.

                 About Nordic Aviation Capital

Nordic Aviation Capital is the leading regional aircraft lessor
serving almost 70 airlines in approximately 45 countries. Its fleet
of 475 aircraft includes ATR 42, ATR 72, De Havilland Dash 8,
Mitsubishi CRJ900/1000, Airbus A220 and Embraer E-Jet family
aircraft.

On Dec. 17, 2021, Nordic Aviation Capital Pte. Ltd., NAC Aviation
17 Limited, NAC Aviation 20 Limited, and Nordic Aviation Capital
A/S each filed petitions seeking relief under Chapter 11 of the
U.S. Bankruptcy Code (Bankr. E.D. Va.). On Dec. 19, 2021,   Nordic
Aviation Capital Designated Activity Company and 112 affiliated
companies also filed petitions seeking Chapter 11 relief. The lead
case is In re Nordic Aviation Capital Designated Activity Company
(Bankr. E.D. Va. Lead Case No. 21-33693).

Judge Kevin R. Huennekens oversees the cases.

The Debtors tapped Kirkland & Ellis and Kutak Rock, LLP as
bankruptcy counsels and the law firms of Clifford Chance, LLP,
William Fry, LLP and Gorrissen Federspiel as corporate counsel.

N.M. Rothschild & Sons Limited, Ernst & Young, LLP and
PricewaterhouseCoopers, LLP serve as the Debtors' financial
advisor, restructuring advisor and tax advisor, respectively. Epiq
Corporate Restructuring, LLC is the claims and noticing agent.

Akin Gump Strauss Hauer & Feld LLP serves as counsel to the NAC 29
Ad Hoc Noteholder Group.

Linklaters LLP serves as counsel to the NAC 29 Facilities Group.

Weil, Gotshal & Manges LLP and McGuireWoods LLP, act as co-counsel
to the Moelis/Weil/NRF Creditor Group.

Milbank LLP and Hunton Andrews Kurth LLP, act as co-counsel to the
NAC 33/34 Creditor Group.

Milbank LLP and LimNexus LLP, act as co-counsel to the Silver Point
Creditors.

Allen & Overy LLP, is as counsel to PFA Asset Management A/S.  The
firm is also counsel to certain export credit agency lenders.

Freshfields Bruckhaus Deringer LLP, is counsel to certain of the
Debtors' shareholders.




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I T A L Y
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LIMA CORPORATE: S&P Alters Outlook to Negative, Affirms 'B-' ICR
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S&P Global Ratings revised its outlook on medical equipment company
Lima Corporate SpA (Lima) to negative from stable, on liquidity
concerns, and affirmed its 'B-' ratings on the company and its
notes, as well as its 'B' rating on the super senior revolving
credit facility (RCF).

The negative outlook indicates that S&P could lower the ratings in
the next six months if it sees higher liquidity pressures and no
concrete evidence that the company can successfully refinance its
capital structure.

Lima faces near-term liquidity pressures because its EUR60 million
RCF matures in February 2023. At year-end 2021, Lima had drawn
roughly EUR47 million under its EUR60 million committed RCF, which
matures in February 2023. S&P said, "We now view its liquidity as
less than adequate because we estimate a material liquidity deficit
over the next 12 months. This is because liquidity sources, which
primarily includes EUR20 million-EUR25 million of cash on the
balance sheet at March 31, 2022--according to our estimates--and
cash funds from operations (FFO) that we forecast at EUR35
million–EUR40 million, will not adequately cover uses in the
coming 12 months. The latter primarily includes the drawn portion
of the RCF, working capital requirements of EUR15 million-EUR20
million including intrayear needs, as well as maintenance capex of
EUR15 million-EUR20 million. Furthermore, we acknowledge Lima's
debt maturity profile has deteriorated given its EUR275 million
senior secured floating notes are due August 2023, in less than 18
months, which also heightens refinancing risks. We anticipate flat
to slightly positive FOCF in the coming 18 months, which means that
Lima is dependent on external refinancing. That said, we estimate
Lima has sufficient (more than 15%) covenant headroom in the next
12 months under the super senior secured net leverage ratio, set at
1.83x."

S&P said, "We expect Lima's S&P Global Ratings-adjusted debt to
EBITDA will remain close to 8x over 2021-2022, which is
commensurate with the 'B-' rating. Lima has demonstrated good
deleveraging capabilities with S&P Global Ratings-adjusted debt to
EBITDA approaching 8x at year-end 2021 according to our preliminary
calculations, compared with 11x at year-end 2020. We calculate S&P
Global Ratings-adjusted debt of EUR460 million-EUR470 million last
year including the EUR275 million senior secured floating notes,
EUR47 million drawn under the EUR60 million RCF, and the cash
component of TechMah Medical (TechMah) acquisition milestones of
EUR8 million-EUR10 million. We also factor in our financial risk
profile analysis EUR120 million-EUR130 million of PIK notes,
including accrued and unpaid interest. Our debt calculation does
not consider any cash due to Lima's ownership by a private-equity
investor.

"Lima's operating performance was mixed last year due to the
resurgence of COVID-19 cases. Lima's sales increased roughly 10% in
2021, approaching EUR215 million. We calculate this remained
roughly 3.5% below 2019 levels, given COVID-19-related restrictions
continued to weigh on elective orthopedic surgeries across Lima's
main markets. Since November, the omicron variant has provided
renewed challenges for industry recovery. We observed a slower
recovery in southern European countries including Italy (accounting
for about 20% of Lima's total sales in 2021) and eastern Europe
(10%), on the back of a relatively high contribution from the
public sector (accounting for roughly 60% of sales in Italy), which
tends to be slower than the private sector to absorb postponed
surgeries." Conversely, Lima's sales in western European countries
(including Germany and Switzerland), are more skewed toward the
private sector, supporting 2021 revenue above pre-pandemic levels
in this region.

Lima has implemented several initiatives to structurally improve
profitability. S&P Global Ratings-adjusted EBITDA margin stood
close to 28% in 2021 (before nonoperating one-off costs), according
to our preliminary calculations. This is a significant improvement
compared with 21.3% in 2020 due to better operating leverage and
ongoing government support for staff costs, which are likely to
reduce during 2022. S&P said, "We also understand the company has
implemented several cost-saving initiatives including
organizational restructuring and reduced travel and marketing
spending, some of which is expected to remain structurally below
pre-pandemic levels. Furthermore, we observed an improved product
mix toward more profitable product categories, such as knees and
extremities, which have shown double-digit growth versus other
categories such as hips."

S&P said, "We do not expect a material deviation from the current
strategy following the appointment of a new interim CEO. Lima has
recently announced that Luigi Ferrari will step down from his role
as CEO and Emmanuel Bonhomme, currently president of Lima Europe,
the Middle East, and Africa, will be the new interim CEO. We
believe Lima's growth strategy is unchanged since we anticipate it
will capitalize on the existing backlog in core countries--which
management estimates at about EUR60 million--over the next
three-to-four years. In our view, the group's growth will be
primarily spurred by the public sector in Italy, other southern
European countries, and eastern Europe. At the same time, Lima will
benefit from large investments in instrument sets in 2020 to
accommodate higher demand over the coming years. By product
categories, knees and extremities will represent the main growth
engines with the latter fueled by commercialization in the U.S. of
a shoulder product related to TechMah's Smart Space, a technology
designed to enhance predictability of surgical outcomes. However,
we believe COVID-19 still represents a relevant risk for Lima's
revenue growth in 2022, which we estimate at 7%-9%. This is because
of renewed lockdowns implemented in some regions such as
Asia-Pacific (18% of sales) at the beginning of the year.

"We expect higher input costs, nonrecurring expenses, and less
stringent cost control to weigh on profitability and FOCF in 2022.
The orthopedic industry is highly competitive and orders tend to be
won through tenders, which limits price rises primarily for the
private sector. A general decrease in prices is expected in 2022,
according to management. In our view, Lima needs to adopt other
strategies to partly mitigate input cost increases, primarily
logistics expenses and energy prices. In particular, we expect
robust growth in more-profitable countries, such as Italy, and an
improving product mix toward knees and extremities. That said, we
assume S&P Global Ratings-adjusted EBITDA margins will decline to
25% in 2022 from 28% in 2021 because our calculation includes
extraordinary costs associated with the ramp up of Smart Space. We
also believe that marketing and travel costs will increase but
remain lower than pre-pandemic levels. Under our base case, the
company should generate flat to slightly positive FOCF because we
do not expect significant investments in instrument sets. That
said, we anticipate that the refinancing will likely imply higher
interest, which will affect FOCF.

"The negative outlook reflects Lima's near-term liquidity risk
because the EUR47 million drawn under its EUR60 million RCF is due
February 2023, in less than 12 months.

"We could lower the rating in the next six months if Lima has not
made progress in managing its debt maturities, which are the EUR60
million super senior RCF due February 2023 and the EUR275 million
senior secured notes due August 2023. The lack of a clear
refinancing plan in the coming months would increase liquidity risk
and pressure the ratings.

"We could revise the outlook to stable if the group successfully
refinances its capital structure while ensuring S&P Global
ratings-adjusted debt to EBITDA does not exceed levels assumed in
our base case."

ESG credit indicators: E-2, S-2, G-3

Governance factors are a moderately negative consideration in our
credit rating analysis of Lima, as is the case for most rated
entities owned by private-equity sponsors. S&P believes the
company's highly leveraged financial risk profile points to
corporate decision-making that prioritizes the interests of the
controlling owners. This also reflects the generally finite holding
periods and a focus on maximizing shareholder returns.




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M O L D O V A
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MOLDOVA: Moody's Affirms B3 Issuer Rating & Alters Outlook to Neg.
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Moody's Investors Service has changed the outlook on the Government
of Moldova's ratings to negative from stable and affirmed the
foreign- and domestic-currency long-term issuer ratings at B3.

The decision to change the outlook on Moldova's B3 ratings to
negative reflects the heightened geopolitical event risks from
Russia's ongoing military invasion of Ukraine (Caa2, review for
downgrade) given Moldova's proximity to the military conflict, the
potential for the Russian-backed separatist Transnistria region to
be a source of instability, and Moldova's very significant energy
dependence on Russia. While not Moody's base case, a
crystallization of these political risks, including a possible
expansion of the conflict to Moldova or a prolonged disruption in
gas supplies, would severely weigh on Moldova's economic and fiscal
prospects, which Moody's expects would not be fully offset by
increased financial support from the European Union (EU, Aaa
stable) and international financing institutions.

The affirmation of the B3 ratings balances Moldova's limited
economic resilience with moderate government debt and the
significant support to its credit profile from the provision of
sizeable international financial assistance. This financial
assistance helps to mitigate risks that relate to the banking
sector, liquidity and Moldova's external vulnerability. The
election in July 2021 of a pro-EU majority government focused on
anti-corruption reforms places Moldova in a favourable position to
leverage additional financial support from the International
Monetary Fund (IMF) and EU to help mitigate the negative economic
and fiscal spillovers from the military conflict, including the
large inflow of refugees. Moldova is also better placed than some
regional peers to withstand the economic effects of the military
conflict, particularly given its relatively limited reliance on
remittances from Russia.

Moldova's local- and foreign-currency ceilings remain unchanged at
Ba3 and B2, respectively. The relatively narrow three-notch gap
(Ba3 vs B3) between the local-currency ceiling and the sovereign
rating reflects the elevated political risks from geopolitical
tensions and volatile domestic politics, somewhat elevated external
vulnerabilities and moderate predictability of government and
institutions. The two-notch gap (B2 vs Ba3) between the
foreign-currency ceiling and the local-currency ceiling reflects
very limited capital account openness, weak policy effectiveness,
and somewhat elevated external indebtedness which push the
foreign-currency ceiling below the local-currency ceiling.

RATINGS RATIONALE

RATIONALE FOR THE CHANGE IN OUTLOOK TO NEGATIVE FROM STABLE

The decision to change the outlook on Moldova's B3 ratings to
negative reflects the heightened geopolitical event risks from
Russia's ongoing military invasion of Ukraine. While not Moody's
base case, Moldova's shared border with Ukraine and the unresolved
conflict with the Russian-backed separatist region of Transnistria
increases the risk of the military conflict in Ukraine spilling
into the country, while Moldova's high dependence on Russian gas
exposes the country to disruptions amid the heightened geopolitical
tensions.

In particular, Russia's invasion of Ukraine has heightened the
geopolitical risks to Moldova's credit profile stemming from the
unresolved regional conflict over Russian-backed Transnistria. The
region declared independence in 1990, and a conflict erupted
between Moldova and Transnistria in 1992. Diplomatic efforts to
resolve the regional conflict had intensified in recent years, but
Russia's military conflict in Ukraine has increased the risk of
renewed instability in Moldova, particularly if the Transnistria
region were to intensify efforts to become part of Russia.
Furthermore, the region houses a small Russian military contingent
which increases the risk of the military conflict in Ukraine
spilling over into Moldova, although there is no information to
confirm a mobilization of troops in the region according to the
Moldovan Ministry of Foreign Affairs.

Nevertheless, while not Moody's base case, an outright conflict and
a significant increase in instability within the country would
weigh heavily on Moldova's economy and fiscal prospects. While the
economic relevance of the region has fallen significantly since the
Soviet regime, Transnistria plays still an important role in
Moldova's energy security given that gas pipelines from Russia
cross through the region and that the country's main gas-fired
power plant is located there, too.

Moldova is also exposed to the risk of a sustained disruption in
gas supplies from Russia during this escalation in geopolitical
tensions, particularly given the recent election of a pro-EU
government which positions Moldova as "non-aligned" with Russia.
While not Moody's baseline scenario, the economic and fiscal impact
of a sustained supply disruption would be significant given Moldova
imports almost all its gas from Russia, which is used for heating
as well as for producing a significant portion of the country's
electricity. Moldova's tense relationship with Russia has often
given rise to fractious negotiations with Gazprom, including most
recently in October 2021 when Russia temporarily reduced gas
supplies during protracted negotiations on an eventual new 5-year
supply agreement, while Gazprom continues to claim significant
unpaid energy debt.

Moldova has recently strengthened its energy security which can
help the country to withstand periods of disruption. The completion
of the extension of the gas pipeline to Romania (Baa3, stable)
helps to diversify its gas supply and the recent synchronization of
its electricity grid with the EU will allow it to import directly
from Europe. Furthermore, support from the EU can help to mitigate
the financial impact of purchasing more expensive energy from
Europe. For example, the EU provided EUR60 million in October 2021
to help Moldova cope with a spike in energy costs during the
protracted negotiations on a new gas supply agreement with
Gazprom.

That said, Moldova's ability to fully replace Russian gas imports
with these alternative sources is untested and pipeline capacity
from Romania is unlikely to be sufficient to meet all of Moldova's
needs in colder months. Furthermore, a wider disruption to energy
supply in Europe would significantly reduce the capacity of EU
countries to provide support even as Romania produces the vast
majority of its own gas. Moldova is also vulnerable to any damage
to pipelines arising from fighting in Ukraine because it receives
most of its gas this way.

RATIONALE FOR AFFIRMING THE B3 RATINGS

The affirmation of Moldova's B3 ratings reflects its limited
economic resilience, given low wealth levels and a narrow economic
base, as well as weak but gradually improving institutional
strength given the progress achieved under the last IMF programme
to strengthen monetary and fiscal policy settings as well as the
banking sector's resilience. This is balanced by a moderate
government debt relative to peers comprised largely of concessional
financing in foreign currency which supports Moldova's high debt
affordability.

The affirmation of the B3 ratings also reflects the significant
support to Moldova's credit profile from the provision of sizeable
international financial assistance, which helps to mitigate banking
sector, liquidity and external vulnerability risks, particularly in
the absence of any international bond issuances. The election in
July 2021 of a pro-EU majority government focused on
anti-corruption reforms has bolstered financial and technical
support from international organisations and donors, placing
Moldova in a favourable position to leverage additional financial
support to mitigate the negative economic and fiscal spillovers
from the military conflict.

This financial support – which includes a 40-month $558 million
(around 4% of 2021 GDP) economic reform programme agreed with the
IMF in December 2021 and a EUR150 million (around 1% of 2021 GDP)
macro-financial assistance programme adopted by the European
Council in April 2022 – will provide a sizeable buffer to
Moldova's external government debt repayment needs of around $150
million in 2022 (although domestic roll-over needs are much
higher). Moldova's formal submission to join the EU following
Russia's invasion of Ukraine could also help facilitate access to
additional financial and technical support, even as Moody's
considers EU membership to be a distant prospect.

The government has requested an augmentation to the IMF programme
to help manage its increased fiscal needs following Russia's
invasion and the large inflow of refugees into Moldova from
Ukraine. Moody's anticipates continuous support from the EU and
institutions such as the IMF as Moldova deals with the challenging
situation. A recent donor conference raised around EUR660 million
(around 5% of 2021 GDP) in aid for Moldova. Moody's forecasts the
budget deficit to rise to 7.4% of GDP in 2022 given the weaker
economic outlook, higher energy prices and the costs of providing
basic needs and shelter to refugees. According to the United
Nations, around 400,000 people have crossed the border into Moldova
with an estimated 100,000 (around 4% of Moldova's population)
expected to remain in the country. Given Moldova's adverse
demographics, the inflow of skilled labour could help mitigate some
of the negative impact of Moldova's high emigration rates and
population ageing on the country's medium-term growth prospects
provided these refugees choose to remain in the country and are
able to integrate into the labour force.

Moldova is also relatively better placed than some regional peers
to manage the economic and fiscal spillovers from the military
conflict. Remittance income is an important source of financing for
consumption but at around 14% of GDP in 2020 remains less important
than many other Commonwealth of Independent States (CIS) countries
such as Tajikistan (B3, review for downgrade) and Kyrgyz Republic
(B3, review for downgrade). Furthermore, Moldova's reliance on
remittances from Russia has fallen in recent years to around 14% of
total in 2020 according to the National Bank of Moldova, while
remittances from the EU account for around half the total.

Nevertheless, the military conflict will have a notable impact on
Moldova's economic confidence, trade and investment prospects, and
Moody's expects real GDP growth of 0.2% in 2022. A sustained
military conflict would likely lead to a more substantial impact on
economic growth although Moody's expects further significant
financing and trade support from the EU and other international
partners would help to mitigate liquidity pressures. Moldova's
foreign exchange reserves have grown significantly since 2015,
benefitting from donor support, to stand at around $4 billion
(according to Moody's definition) at the end of 2021. Moldova's
reserve coverage of its external debt repayments, as measured by
Moody's, is stronger than many regional peers.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Moldova's ESG Credit Impact Score is highly negative (CIS-4),
reflecting moderate exposure to environmental risk, high exposure
to social risks and very weak governance profile, the latter also
explaining - along with low wealth levels - the relatively low
resilience despite relatively favorable debt burden and
affordability metrics.

Moldova's credit profile is moderately exposed to environmental
risks, reflected in its E-3 issuer profile score. Moldova's
exposure to physical climate risk is exacerbated by the importance
of the agricultural sector (both in terms of economic contribution
and employment) which makes the country vulnerable to climate
change. Historical evidence suggests that droughts can create
severe economic, fiscal and social costs. Moldova also faces
environmental risks from water scarcity and weak management of
natural capital.

Exposure to social risks is high (S-4 issuer profile score), and it
is mainly related to unfavourable demographics, weak health
outcomes and impaired access to basic services while education is
not a material source of risk. Since Moldova gained independence in
1991, a significant share of the country's population has
emigrated, mainly because of a lack of job opportunities and
relatively higher poverty levels and the contraction in Moldova's
working-age population is likely to accelerate. The shrinking
population will be a major constraint on the economy as it weighs
on labour input.

Moldova has a very highly negative governance profile score (G-5
issuer profile), reflecting weak rule of law and high levels of
corruption but also the sovereign default track record. These
aspects result in a relatively low resilience due to low
institutional capacity to respond to environmental and social
risks, only in part mitigated by favorable fiscal metrics.

The publication of this rating action deviates from the previously
scheduled release dates in the UK sovereign calendar published on
www.moodys.com. This action was prompted by Russia's ongoing
invasion of Ukraine which increases the risk of the military
conflict expanding to Moldova.

GDP per capita (PPP basis, US$): 12,935 (2020 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): -7% (2020 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 0.9% (2020 Actual)

Gen. Gov. Financial Balance/GDP: -5.3% (2020 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -7.7% (2020 Actual) (also known as
External Balance)

External debt/GDP: 73.2

Economic resiliency: b2

Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.

On April 11, 2022, a rating committee was called to discuss the
rating of the Government of Moldova. The main points raised during
the discussion were: The issuer's economic fundamentals, including
its economic strength, have not materially changed. The issuer's
institutions and governance strength, has not materially changed.
The issuer's fiscal or financial strength, including its debt
profile, has not materially changed. The issuer has become
increasingly susceptible to event risks.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The negative outlook suggests an upgrade is unlikely in the near
term. The outlook could be changed to stable if geopolitical
tensions were to abate – both within the wider region and between
Moldova and Transnistria – and in turn reduce the risks to
Moldova's credit profile from the military conflict. For example,
an end to Russia's invasion of Ukraine or evidence that fighting
will be concentrated away from Moldova's border, making it less
likely that the military conflict will spill over into Moldova,
would be consistent with a stable outlook, as would a further
proven diversification in energy imports away from Russia. Evidence
of significant and sustained provision of international financial
support, helping to mitigate the economic and fiscal effects of the
neighbouring military conflict and contain liquidity risks, would
be a key factor supporting the stabilization in the outlook.

Moldova's ratings could be downgraded if geopolitical risks
stemming from Russia's ongoing invasion of Ukraine were to
crystallise. For example, if conditions in the Transnistria region
were to deteriorate significantly which threatened domestic
stability, or evidence of a large mobilization of Russian troops in
the region which materially increased the likelihood of the
military conflict spilling over into Moldova. Furthermore, a
prolonged disruption in Russian gas supplies to Moldova which
cannot be mitigated by technical and financial support from the EU
would also be negative for the rating. Evidence of increased
domestic political risk which jeopardises the large commitments of
international financial support and leads to a reversal in the
reform progress achieved under the previous IMF programme would
also be negative for the rating.

The principal methodology used in these ratings was Sovereign
Ratings Methodology published in November 2019.



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IGNITION TOPCO: Moody's Affirms B3 CFR, Alters Outlook to Negative
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Moody's Investors Service affirmed Ignition Topco BV's (IGM Resins
or the company) B3 corporate family rating and B3-PD probability of
default rating. Concurrently Moody's affirmed the B3 ratings for
the EUR325 million backed senior secured term loan B (TLB) and the
EUR50 million backed senior secured revolving credit facility (RCF)
borrowed by Ignition Midco BV. Moody's changed the outlook on both
entities to negative from stable.

RATINGS RATIONALE

The negative outlook reflects the deterioration of IGM Resins'
liquidity profile with reduced financial flexibility to withstand
potential cash shortfalls. IGM Resins' liquidity profile mainly
weakened because of a large capital spending including some cost
overruns for the new Anqing (China) site, after IGM Resins was
forced to close the old facility in Haimen, working capital
consumption and one-off costs predominantly related to closure of
the old facility in Haimen and certain transformation costs that
the company is incurring to structurally enhance the business under
the new management. Through February 2022, IGM Resins' free cash
flow generation and cash on balance lag significantly behind its
budget plan for 2022, partly driven by some once a year expenses.
Moody's nevertheless considers the liquidity profile to be
adequate, with potential for improvement from better working
capital management and a decline in capital expenditures once the
project in Anqing is completed (foreseen for August 2022, full ramp
up by the end of 2022). However, the company's B3 CFR was already
weakly positioned and IGM Resins' liquidity is now more vulnerable
to potential unfavorable developments.

Since the beginning of 2021, IGM Resins' liquidity profile weakened
as evidenced by the decrease in its cash balance to EUR25.6 million
(including EUR14 million of RCF drawings) as of end February 2022
from EUR51.3 million (including EUR10 million of RCF drawings) as
of end December 2020. During 2021, substantial growth capital
spending for the Anqing project and one-off costs resulted in
negative Moody's-adjusted free cash flow of around EUR20 million
which included around EUR16 million of compensation proceeds in
December 2021. Year-to-date February 2022, the company continued to
generate negative free cash flow of around EUR21 million mainly due
to substantial working capital consumption and Anqing-related
capex. However, Moody's expects FCF to improve significantly and to
be positive once the company has completed the Anqing facility. The
additional production capacity will further support FCF, which in
turn supports the affirmation of the B3 CFR.

Positively, the company's underlying performance, excluding one-off
costs, has been improving. Company-adjusted EBITDA increased to
EUR54 million for the last twelve months (LTM) ended February 2022
from EUR39 million during the year-earlier period, boosted by a
combination of higher volumes for energy curing resins and higher
average selling prices. However, the company also incurred
significant one-off costs (including costs related to the closure
of its old facility and the build-up of organization at its new
facility) amounting to approximately EUR21 million for the last
twelve months ended February 2022. On a Moody's adjusted basis,
including one-off costs, gross leverage remains elevated for the
rating category at around 10x for the LTM ended February 2022, and
Moody's forecasts gross leverage to remain above the downgrade
trigger of 7x in 2022. Today's rating action also incorporates the
expectation that Moody's adjusted gross leverage will decrease
below 7x in 2023.

LIQUIDITY

IGM Resins' liquidity profile remains adequate. As of end February
2022, the company had around EUR25.6 million of cash on balance and
access to a EUR50 million RCF, EUR14 million of which was drawn. In
combination with forecasted funds from operations, these sources
should be sufficient to cover capex, working cash and working
capital swings. However, the company's liquidity profile is
vulnerable to unexpected cash shortfalls. Moody's understands that
the company is working on plans to improve its working capital
which could improve its liquidity profile over the next months.

The RCF is subject to a springing covenant test (40% of drawings)
set at a senior secured net leverage of 7.7x. Currently, the
company has ample headroom under the financial covenant (senior
secured net leverage ratio is at 5.8x as of end February 2022),
although under a downside scenario, the headroom would narrow
significantly. During the COVID-19 pandemic, as a precaution, the
company received a covenant waiver, and the senior secured net
leverage peaked in November 2020 at around 8.3x, even though RCF
was only drawn by EUR10 million (20% of RCF commitments).

OUTLOOK

The negative outlook on IGM Resins' B3 rating highlights the risk
that the company's liquidity profile and credit metrics might not
remain at levels deemed commensurate with the B3 rating over the
next 12 months. The outlook could return to stable with sustainable
improvement in the company's liquidity profile, such as levels
indicated in its internal budget, as well as evidence of sustained
improvement in operations and a declining trend of one-off costs.

STRUCTURAL CONSIDERATIONS

The EUR325 million guaranteed senior secured TLB and EUR50 million
RCF are rated B3, in line with the company's CFR. The bank
facilities benefit from upstream guarantees of the main operating
subsidiaries representing in aggregate no less than 80% of
Ignition's consolidated EBITDA. Moody's views the TLB and RCF as
essentially unsecured, given the security package provided (such as
shares, intragroup receivables and bank accounts other than those
dedicated to cash pooling accounts).

ESG CONSIDERATIONS

Moody's governance assessment for IGM Resins incorporates its
highly leveraged capital structure, reflecting high risk tolerance
of its private equity owners. The private equity business model
typically involves an aggressive financial policy and a highly
leveraged capital structure to extract value.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The ratings could be upgraded if (1) debt/EBITDA dropped
sustainably to below 5.5x; (2) EBITDA margins increased to around
20%; (3) positive FCF generation; and (4) absent any debt-funded,
transforming acquisitions or material shareholder remuneration.

Moody's could downgrade ratings if (1) debt/EBITDA were to remain
above 7.0x; (2) FCF remains negative coupled with deteriorating
liquidity; or (3) if there are further delays in the ramp-up of the
Anqing facility.

The principal methodology used in these ratings was Chemical
Industry published in March 2019.

COMPANY PROFILE

Ignition Topco BV is the parent company of operating companies that
trade under the name IGM Resins (IGM), with head offices in
Waalwijk, the Netherlands. IGM is a leading global supplier of
energy curing (UV) raw material solutions. These products are
high-value-added photoinitiators, acrylates and additives that are
used in a wide variety of industries, among which the packaging and
printing industry, wood, plastic, and metal coatings industry along
with the electronics and electrics industry and other special
applications such as 3D printing and optical products. In 2021, the
company generated revenues of EUR257 million and company-adjusted
EBITDA of EUR48 million. The company has been owned by funds
managed by Astorg since 2018.



===========
R U S S I A
===========

[*] RUSSIA: Bankruptcy Only "A Matter of Time", EU Pres. Says
-------------------------------------------------------------
NaDa Mustafa at Seeegy reports that European Commission President
Ursula von der Leyen stressed on April 17 that Russia's bankruptcy
is only "a matter of time".

In press remarks, the EU official added that Western sanctions are
increasingly undermining the Russian economy, Seeegy relates.

She explained that the export of goods to Russia collapsed by 70%,
pointing out that hundreds of large companies and thousands of
experts have left the country, Seeegy discloses.

Moreover, she noted that the Gross Domestic Product (GDP) will
drop, according to expectations, by 11%, according to Seeegy.

In addition, the EU commission chief added that Russia's external
debt amounted to US$59.5 billion, including debt on external bond
loans, Seeegy relays, citing official figures revealed by the
Russian Ministry of Finance.

She also pointed out that Russia has 15 loans that must be repaid
between 2022 and 2047, Seeegy discloses.


[*] RUSSIA: Pledges RUR19.5 Bil. in State Support for Airlines
--------------------------------------------------------------
Reuters reports that Russia has pledged RUR19.5 billion (US$238
million) in state support for airlines to refund passengers flying
on routes that have been cancelled due to sanctions, Russian Prime
Minister Mikhail Mishustin said on April 10.

"The subsidies will be used to refund passengers the cost of
tickets on routes that have been cancelled due to external
restrictions, which will save carriers their own working capital,
which means there will be financial resources to ensure flight
safety," Reuters quotes Mr. Mishustin as saying.




===========
T U R K E Y
===========

ONUR AIR: Declared Bankrupt After Ex-Pilot Files Wage Suit
----------------------------------------------------------
Luke Bodell at Simple Flying reports that Turkish carrier Onur Air
has been declared bankrupt in a rather unusual manner after a
former pilot filed a case against the carrier.

Turgut Emre Topcu filed a lawsuit against the company in a case
involving unpaid wages, Simple Flying relates.

The Turkish airline contests the ruling and will fight the
bankruptcy proceedings, Simple Flying states.

Mr. Topcu filed a case against Onur Air last year regarding a claim
of TRY105,000 (US$7,175) in unpaid wages and legal costs, Simple
Flying discloses.  A verdict was reached in favor of the pilot, but
the airline did not meet his demands, Simple Flying recounts.

In response, Mr. Topcu's lawyers filed an insolvency application,
which has now led to Onur Air going through bankruptcy proceedings,
Simple Flying relays.

The carrier initially rejected the bankruptcy filing, arguing that
Mr. Topcu was not a creditor of the company, Simple Flying notes.
However, an expert opinion overruled this and the court upheld the
bankruptcy filing, Simple Flying relates.

Onur Air will continue to contest the ruling and has applied for
the bankruptcy to be lifted, Simple Flying discloses.

Due to its longstanding financial difficulties, Onur Air has around
1,600 employees that have gone without receiving full pay, Simple
Flying states.  A large chunk of these employees unionized in
November and were granted a collective bargaining agreement by
Turkish authorities this year, Simple Flying recounts.

The airline entered the pandemic already burdened with debt, Simple
Flying says.  After it ceased operations in June 2021, employees
demanded that their salaries be paid, alleging that they had not
been paid since the beginning of the pandemic, according to Simple
Flying.

Financial difficulties, exacerbated by the pandemic, led the
airline to suspend all operations last year. It was soon stripped
of its air operator's certificate (AOC) and license by the
Directorate General of Civil Aviation (DGCA) before aviation
lessors confiscated its aircraft in February, Simple Flying
discloses.

A proposed sale to an Iranian buyer fell through after Babek
Zencani, the buyer, was sentenced to life imprisonment in Iran,
Simple Flying recounts.  The deal was eventually abandoned but
complications ensued, with businessman Hamit Cankut Bagana and the
Iranian Petroleum Ministry clashing in legal battles, Simple Flying
notes.




=============
U K R A I N E
=============

[*] UKRAINE: Discusses Post-War Reconstruction with IMF Official
----------------------------------------------------------------
Kanishka Singh at Reuters reports that Ukrainian President
Volodymyr Zelenskiy said on April 17 he spoke with IMF Managing
Director Kristalina Georgieva about Ukraine's financial stability
and the country's post-war reconstruction.

"Discussed with IMF Managing Director Georgieva the issue of
ensuring Ukraine's financial stability & preparations for post-war
reconstruction. We have clear plans for now, as well as a vision of
prospects.  I'm sure cooperation between the IMF & Ukraine will
continue to be fruitful," Reuters quotes Mr. Zelenskiy as saying in
a tweet.





===========================
U N I T E D   K I N G D O M
===========================

THOMAS COOK: Customers, Creditors Urged to Submit Claims
--------------------------------------------------------
The Insolvency Service on March 31 disclosed that the Officer
Receiver, as Liquidator, has said that several companies in the
Thomas Cook group could have sufficient funds available to make
payments to customers and creditors who may have lost money in the
liquidation.

In November 2021, the Official Receiver launched the Thomas Cook
Claims Site -- https://www.thomascookukliquidations.com/s/login/
An online portal to enable customers and other creditors in the
liquidation who may be owed money by any of the Thomas Cook UK
companies that went into liquidation to submit claims.

Official Receiver David Chapman, appointed by the court as
Liquidator of the Thomas Cook group of companies, said:

"While we have received many claims already, we believe that there
are potentially thousands more customers and creditors who are owed
money by Thomas Cook but have not submitted their claims.

"That is why we are urging customers and suppliers to use the
online portal to quickly, easily and securely lodge their claims
for monies owed to them."

Claims in the Liquidation could occur for a variety of reasons,
including:

   -- gift vouchers bought or provided by Thomas Cook with
unredeemed balances
   -- disrupted flights (including EU261 claims)
   -- packaged holidays and other holiday elements impacted by
cancellation
   -- personal injuries
   -- sports tickets bought from Thomas Cook
   -- goods or services provided to Thomas Cook

Creditors should be aware that they are not necessarily going to
receive the entirety of their claim, but once registered they will
be able to log onto to the site to check the progress and status of
their claim.

Further information about how to submit a claim and the anticipated
payment levels is available on the Thomas Cook Claims Site --
https://www.thomascookukliquidations.com/s/login/

Further information about the wider Thomas Cook liquidation, can be
found at
https://www.gov.uk/government/news/thomas-cook-information-for-customers-employees-creditors-and-shareholders

                    About Thomas Cook Group

Thomas Cook Group Plc is the ultimate holding company of direct and
indirect subsidiaries, which operate the Thomas Cook leisure travel
business around the world.  TCG was formed in 2007 following the
merger between Thomas Cook AG and MyTravel Group plc.
Headquartered in London, the Group's key markets are the UK,
Germany and Northern Europe.  The Group serves 22 million customers
each year.

The Group operates from 16 countries, with a combined fleet of over
100 aircraft through five entities holding air operator
certificates in the UK, Germany, Denmark and Spain.  The Group has
2,800 owned and franchised retail outlets (including 555 shops in
the UK) and operates 199 own-brand hotels across the world.

As of Dec. 31, 2018, the Group had 21,263 employees, including
9,000 in the U.S.

The travel agent originally proposed a restructuring.  It was
scheduled to ask creditors Sept. 27, 2019, for approval of a scheme
of arrangement that involves (a) substantially deleveraging the
Group by converting GBP1.67 billion of RCF and Notes debt currently
outstanding into new shares (15%) and a subordinated PIK note (at
least GBP81 million) to be issued by the recapitalized Group in
proportions still to be agreed; and (b) the transfer of at least a
75% interest in the Group Tour Operator and an interest of up to
25% in the Group Airline to Chinese investor Fosun Tourism Group.

Representatives of the company filed a Chapter 15 petition in New
York on Sept. 16, 2019, to seek U.S. recognition of the UK
proceedings as foreign main proceeding.  The Chapter 15 case is In
re Thomas Cook Group Plc (Bankr. S.D.N.Y. Case No. 19-12984).
Latham & Watkins, LLP is the counsel.

But after last-ditch rescue talks failed, on Sept. 23, 2019, Thomas
Cook UK Plc and associated UK entities announced that they have
entered Compulsory Liquidation and are now under the control of the
Official receiver.  The UK business has ceased trading with
immediate effect and all future flights and holidays are cancelled.
All holidays and flights provided by Thomas Cook Airlines have been
cancelled and are no longer operating.  All Thomas Cook's retail
shops have also closed.  

Separate from the parent company, Thomas Cook's Indian, Chinese,
German and Nordic subsidiaries will continue to trade as normal.


[*] UK: Lenders Expect Business Loan Defaults to Rise
-----------------------------------------------------
David Milliken at Reuters reports that British lenders expect loan
defaults to rise over the coming months and also plan to rein in
mortgage lending by the greatest amount since the early days of the
COVID-19 pandemic, a Bank of England survey showed on April 14.

According to Reuters, the BoE's quarterly credit conditions survey
showed lenders expect more defaults on mortgages, unsecured
consumer lending and business loans in the three months to the end
of May, although outright losses on mortgage lending were expected
to remain stable.



                           *********


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.

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