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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

          Thursday, April 21, 2022, Vol. 23, No. 74

                           Headlines



M A L T A

ENEMALTA: S&P Affirms 'B+' ICR, Off CreditWatch Negative


U N I T E D   K I N G D O M

DERBY COUNTY FOOTBALL: Takeover Expected to be Completed by June
FOUNDA: Enters Administration Months After All Foundations Rescue
LEGACY HOTELS: Priest House Hotel Bought Out of Administration
LONGCROSS: Croydon Sues QBE UK to Recover GBP3.3MM in Losses
PEACOCKS CENTRE: Enters Administration, Future Uncertain

PETROPAVLOVSK PLC: Gazprombank Demands US$300MM Debt Payment

                           - - - - -


=========
M A L T A
=========

ENEMALTA: S&P Affirms 'B+' ICR, Off CreditWatch Negative
--------------------------------------------------------
S&P Global Ratings affirmed its 'B+' issuer credit rating on
electricity distribution system operator (DSO) Enemalta and removed
the rating from Credit Watch with negative implications.

The positive outlook indicates that S&P could upgrade Enemalta if
the Maltese government continues to fully support the company in a
timely manner and debt to EBITDA stabilizes around 10x on an
ongoing basis.

Enemalta's liquidity position has stabilized thanks to the
commitment from the Maltese government to provide ongoing financial
support. The government of Malta has committed around EUR200
million in energy support to Enemalta to finance the increase in
energy costs, which the company cannot pass through to its
customers. This was necessary because the regulatory framework in
Malta does not automatically protect the company from the rise in
commodity prices nor from decline in consumption volumes and also
as it is the Maltese government's policy is to keep prices stable.
As a result, Enemalta is fully exposed to volume and price risks.
For example, the prices for energy imported via the interconnector,
which represent 25%-30% of Enemalta's needs, increased to
EUR148.02/mWh in 2021 from an average of EUR58.09/mWh in 2020.
Overall, this plus an increase in CO2 costs and surge in gas
prices, led Enemalta to record zero net profit in 2021, resulting
in S&P placing Enemalta on CreditWatch negative in December 2021.

The energy support measures will result in improved financial
performance and cash flow from 2022. S&P said, "We understand that
the government now fully compensates Enemalta's losses on a monthly
basis. As we include the financial support from the government as a
subsidy in our EBITDA adjustments, we view it as operating
compensation as it is earmarked for company's operating losses. We
now expect the company to generate positive funds from operations
(FFO) of around EUR32 million in 2022 and continue to generate
positive cash flows in the next two-to-three years as long as
government support remains. Enemalta's losses were fully covered by
the Maltese Ministry of Finance in 2021 and we understand the
government also fully covered the company's losses for January and
February 2022. These timely cash injections materially reduce the
volatility in Enemalta's credit ratios. They also materially reduce
Enemalta's exposure to price risk as it is now borne by the state.
Should the government support remain timely and adequately sized
within the next years, we forecast debt to EBITDA to stabilize
close to 10x and FFO to debt to remain around 5%-10%."

That said, Enemalta still relies on short term liquidity lines and
overdrafts. Enemalta has credit lines signed with banks, including
a EUR20 million revolving loan signed in October 2019, committed
until October 2024 and reviewed annually. It also has a special
EUR20 million "COVID-19 assist" loan guaranteed by the Maltese
Development Bank, signed in May 2021 and to be repaid over the next
four years. Although the credit lines are either uncommitted,
short-term, or reviewed annually, there is a track record of
Enemalta using them when it faces liquidity shortcomings.

The rating on Enemalta continues to be underpinned by the
extraordinary support from the Maltese government. S&P said, "We
continue to assess Enemalta as a government-related entity. Our
credit rating analysis on Enemalta incorporates our opinion of a
high likelihood that the government of Malta would provide timely
and sufficient extraordinary support to the company in the event of
financial distress. Our rating on Enemalta therefore includes three
notches of uplift from the 'ccc+' stand-alone credit profile
(SACP). Malta (A/Stable/A-1) has owned 67% of Enemalta since the
sale of a 33% stake to Shanghai Electric Power in 2014. Malta's
government retains the controlling stake in the company, and it
elects four of the six members on Enemalta's board of directors. We
believe that Enemalta's role is important to the government since
it is the sole operator of Malta's power distribution grid, which
was connected to Europe in the second quarter of 2015 through a
cable linking the islands to Sicily. Enemalta's activities have
strong social and reputational significance for the country. Malta
is the guarantor of all Enemalta's pre-2014 debt and the guarantee
covers some uncommitted lines, as well as some exposure to
commercial agreements (guaranteed debt is 95% of total debt).
During the COVID-19 pandemic, Enemalta received indirect support
from Malta; the government provided significant funding to
businesses and employees, thereby protecting the purchasing power
of Enemalta's customers and their ability to service their
electricity bills."

The positive outlook indicates that S&P could raise the ratings in
the next year if Enemalta develops a track record of receiving
timely and sufficient financial support.

S&P could upgrade Enemalta if:

-- The government of Malta continues to provide timely and
sufficient financial support to cover monthly losses of the
company; and

-- Debt to EBITDA stabilizes to around 10x.

S&P would revise outlook back to stable if:

-- S&P sees pressure on liquidity as a result of insufficient
support from the government; or

-- S&P does not see a clear trajectory of debt to EBITDA
decreasing toward 10x.

A downgrade of Malta would have no impact on S&P's rating on
Enemalta at this point, all else being equal.

ESG credit indicators: E-5, S-4, G-4




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

DERBY COUNTY FOOTBALL: Takeover Expected to be Completed by June
----------------------------------------------------------------
Chris Watson at DerbyshireLive reports that prospective Derby
County Football Club owner Chris Kirchner has been offering
transfer updates to supporters on social media.

Less than 24 hours after the Rams' relegation to League One was
confirmed, attention has turned to the summer and preparing a squad
for Wayne Rooney to manage in the third tier, DerbyshireLive
discloses.  The American businessman has been engaging with fans on
Twitter since being named preferred bidder by the Derby County
administrators earlier this month, DerbyshireLive relates.

First up in his latest social media briefing was a query about the
time scale for his takeover to be completed, DerbyshireLive notes.
Mr. Kirchner, as cited by DerbyshireLive, said he hoped for some
time in "June if not before", and stressed that the "goal is ASAP".
It was also stated that Kirchner will "take over funding from May
7 when he "will be making decisions and writing checks".

The line of enquiry soon turned to transfers, with the issue of
Derby's recruitment team being raised by supporters, DerbyshireLive
states.  According to DerbyshireLive, Mr. Kirchner pointed out that
Derby no longer have a recruitment team after going into
administration, but insisted "this will need to be rebuilt" and was
already being discussed.

Derby County striker Colin Kazim-Richards has assured fans the club
"will be back" after relegation to League One, DerbyshireLive
relays.

                 About Derby County Football Club

Founded in 1884, Derby County Football Club is a professional
association football club based in Derby, Derbyshire, England.  The
club competes in the English Football League Championship (EFL, the
'Championship'), the second tier of English football.  The team
gets its nickname, The Rams, to show tribute to its links with the
First Regiment of Derby Militia, which took a ram as its mascot.
Mel Morris is the owner while Wayne Rooney is the manager of the
club.  

On Sept. 22, 2021, the club went into administration.  The EFL
sanctioned a 12-point deduction on the club, putting the team at
the bottom of the Championship.  Andrew Hosking, Carl Jackson and
Andrew Andronikou, managing directors at business advisory firm
Quantuma, had been appointed joint administrators to the club.


FOUNDA: Enters Administration Months After All Foundations Rescue
-----------------------------------------------------------------
Greg Pitcher at Construction News reports that the company that
rescued piling contractor All Foundations from administration last
year has itself collapsed and been bought.

Nottingham-based Founda went into administration on March 30 this
year -- less than eight months after purchasing the GBP13
million-turnover Derbyshire firm in a pre-pack administration,
Construction News relates.

Founda was immediately bought by student-accommodation specialist
Carpenter Build via administrators at FRP Advisory, Construction
News recounts.  The pre-pack deal cost the Liverpool firm just over
GBP105,000, Construction News discloses.

According to Construction News, a report filed on Companies House
last week revealed that Founda made a loss of about GBP60,000 in
the five months to the end of February 2022.

An "ex-director" invested some GBP150,000 during this period to
"alleviate the pressure on cashflow", Construction News relays,
citing the document.

A further "substantial cash injection" was required, although this
was not forthcoming from any source, Construction News states.

FRP said Founda owed the taxman money and had overdue creditors. A
sale of the business and its assets was pursued, Construction News
notes.

Carpenter Build, which had a turnover of about GBP21 million in
2020, eventually concluded the pre-pack purchase, Construction News
discloses.


LEGACY HOTELS: Priest House Hotel Bought Out of Administration
--------------------------------------------------------------
Corey Bedford and Jonathon Crump at LeicestershireLive report that
a historic Castle Donington hotel and wedding venue has been bought
by a luxury leisure group from Yorkshire.

The purchase follows months of uncertainty after the previous
owners called in administrators, LeicestershireLive notes.

The Priest House Hotel has parts which date back to the 11th
Century, and has been purchased by R Priest House Limited, part of
the Brook Leisure Group, LeicestershireLive discloses.  The leisure
group operates a number of bars, nightclubs, restaurants, and
hotels in Sheffield, Doncaster, and the Yorkshire Dales.

The picturesque riverside hotel had been operated by Legacy Hotels
after going into administration in January 2020, LeicestershireLive
recounts.  It was previously owned by the disgraced former boss of
Norton Motorcycles, Stuart Garner, and was a part of his property
portfolio -- which also included Donington Hall.

Planning consent to a large extension to the hotel had been
approved according to property agent Sanderson Weatherall, who were
brought in to market the site after Garner's business empire
collapsed, LeicestershireLive relates.

According to LeicestershireLive, the property has been purchased
for an undisclosed sum by the Barnsley-based leisure company, who
say they are "excited to commence working with the hotel team to
re-establish The Priest House as one of the area's premier hotels".


The property features 42 bedrooms, a restaurant, bar, outdoor
dining area, and hosts business conferences and meetings,
LeicestershireLive relays, citing Staffordshire Live.


LONGCROSS: Croydon Sues QBE UK to Recover GBP3.3MM in Losses
------------------------------------------------------------
Silvia Martelli at Law360 reports that a property developer has
sued insurer QBE UK Ltd. to recover GBP3.3 million (US$4.3 million)
in losses after a contractor working on the development of 400
flats in a London suburb fell into administration.

Croydon Investments Ltd. accused QBE UK in a High Court claim of
breaching its guarantee for the property development by refusing to
pay out GBP3.3 million after contractor Longcross Group Ltd. went
into administration, Law360 relates.


PEACOCKS CENTRE: Enters Administration, Future Uncertain
--------------------------------------------------------
Julie Armstrong at SurreyLive reports that the future of Woking's
Peacocks shopping centre is uncertain as its owner, who has
borrowed over GBP6 million from the council, plunges into
administration.

According to SurreyLive, Peacocks Centre, the private company that
owns the multi-storey shopping centre, is suffering severe cashflow
problems.

Its holding company is part of the Moyallen group that owns the
majority of Victoria Square, Woking's flagship development which
the council has invested GBP700 million in.  The Peacocks mall is
now under the control of administrator Grant Thornton, appointed on
April 19, who will try to rescue the business and look for a quick
sale, SurreyLive discloses.

Woking Borough Council declined to say if it would want to take it
over but said the centre's shops are open for business as usual,
SurreyLive notes.  The council now risks losing GBP6.35 million
that it lent to Peacocks Centre, noted in a review of the council's
finances done by EY this January, SurreyLive states.

Woking Liberal Democrats said the loan was to put in new escalators
and lifts, SurreyLive relates.  The council declined to comment on
how much if any has been repaid, or if it expects to get anything
back from the administrator or to have to write it off, according
to SurreyLive.

Peacocks Centre is a subsidiary of Moyallen Woking Ltd, which is
also unable to pay its debts and according to its last filed
accounts, at the end of 2020, owed in a year nearly GBP60 million
more than it had in assets, SurreyLive discloses.

Woking Liberal Democrats leader Ann-Marie Barker said: "Moyallen
Woking Ltd going into administration is a concern for the future of
shopping in Woking.  The administrator now has control over which
businesses in the Peacocks stay and which leave, and the rent they
pay."

Moyallen Properties Ltd, which shares the same directors who live
in Northern Ireland, has also gone into administration.  According
to the council that company has no connection with Woking.

Also part of the Moyallen group are Moyallen Holdings Ltd, which
along with the council part owns Victoria Square developed over the
last five years, and Moyallen Developments Ltd, which is now
managing the complex of shops and over 400 apartments.  More than
half of all the council's investments put together are in Victoria
Square.

Neither of these companies has an insolvency notice in The Gazette
and the council says Victoria Place, as the development was named
on opening just last month, is unaffected, SurreyLive notes.  The
Victoria Square parent company Moyallen Holdings Ltd, which owns
52% to Woking Borough Council's 48%, is nearly four months overdue
filing its accounts, while according to its 2020 balance sheet, the
managing company Moyallen Developments Ltd had equity.

According to SurreyLive, Woking Borough Council 's chief executive
Julie Fisher said: "Moyallen's property companies, which include
Peacocks Centre, and Moyallen Woking Ltd, the owner of the Primark
lease in the Peacocks centre, have been put into administration.
Moyallen Developments Ltd, the company managing the Victoria Place
development, is unaffected, as is the Victoria Square Woking
Limited joint venture company with the council."


PETROPAVLOVSK PLC: Gazprombank Demands US$300MM Debt Payment
------------------------------------------------------------
Neil Hume at The Financial Times reports that Russian gold producer
Petropavlovsk was hit with a demand for almost US$300 million of
cash from its main lender.

The London-listed company said it had received notices from
Gazprombank asking for the immediate repayment of a US$201 million
loan and US$87.1 million from another credit facility to be paid
next week, the FT relates.

The demands add to the pressure on Petropavlovsk, which was once
one of the biggest gold producers in London and almost entered the
blue-chip FTSE 100 index, the FT notes.

According to the FT, the company said last week it was looking at
options including a sale of all its operating assets as it was not
able to sell its gold or service its debts because of UK sanctions
imposed on Gazprombank following the invasion of Ukraine.

A condition of its loan agreements is that Gazprombank buys and
then sells all of Petropavlovsk's gold production, which last year
totalled almost 450,000 ounces, the FT discloses.

"The company is considering the implications of these notices with
its advisers," the FT quotes Petropavlovsk as saying in a
statement.

Shares in Petropavlovsk dropped 30% to 1.4p in early trading on
Wednesday, April 20, making the group worth about GBP55 million,
the FT discloses.

They later recovered to 1.8p but have still lost 90% of their value
this year, the FT notes.

The company's US$304 million of bonds, which mature in December,
were trading at just above 12 cents in the dollar, having traded at
par before Russia's invasion of Ukraine, the FT states.  A coupon
payment of US$12.4 million is due on May 14, the FT  discloses.

Petropavlovsk said last week it would be "very challenging" to
refinance the bond, citing limited cash reserves outside Russia and
legal restrictions that limit its ability to transfer cash out of
the country, the FT recounts.

The company has hired AlixPartners to examine strategic options,
the FT discloses.

Petropavlovsk was founded in 1994 by Pavel Maslovskiy with Peter
Hambro, a scion of the London banking dynasty, and is one of
Russia's biggest gold producers.



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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

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