/raid1/www/Hosts/bankrupt/TCREUR_Public/220527.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
Friday, May 27, 2022, Vol. 23, No. 100
Headlines
F I N L A N D
HUHTAMAKI OYJ: S&P Assigns 'BB+' Rating on Senior Unsecured Notes
F R A N C E
EDF ENERGY: S&P Puts 'BB' ICR on CreditWatch Negative
ELIOR GROUP: S&P Lowers ICR to 'B+', Outlook Stable
FAURECIA SE: S&P Affirms 'BB' ICR & Alters Outlook to Negative
G E R M A N Y
DICE ACQUICO: S&P Assigns 'CCC+' ICR, Outlook Negative
REVOCAR 2019 UG: Moody's Affirms Ba1 Rating on Class D Notes
I R E L A N D
MADISON PARK XV: S&P Assigns B- Rating on Class F-R Notes
N O R W A Y
PGS ASA: Moody's Affirms 'Caa1' CFR & Alters Outlook to Stable
R U S S I A
[*] RUSSIA: To Service Dollar Debt in Rubles After Waiver Ends
S E R B I A
JAGODINSKA PIVARA: Serbia Puts Assets Up for Sale for RSD58-Mil.
T U R K E Y
TURKIYE IS BANKASI: S&P Withdraws 'B/B' Issuer Credit Ratings
U N I T E D K I N G D O M
HOLLAND & BARRETT: S&P Lowers Parent's LT ICR to 'CCC+'
MISSGUIDED: On Verge of Collapse Following Winding-Up Petition
RRE 12: S&P Assigns Prelim. BB- (sf) Rating on Class D Notes
TWENTY1 CONSTRUCTION: Owes Unsecured Creditors GBP12.5 Million
X X X X X X X X
[*] BOOK REVIEW: Bankruptcy and Secured Lending in Cyberspace
[*] Sylwia Maria Bea Named Norton Rose EMEA Insolvency Co-Head
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F I N L A N D
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HUHTAMAKI OYJ: S&P Assigns 'BB+' Rating on Senior Unsecured Notes
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S&P Global Ratings has assigned its 'BB+' rating to the proposed
sustainability-linked notes of about EUR500 million to be issued by
the ultimate group parent, Huhtamaki Oyj (BB+/Stable/--), a
Finland-based food packaging company. The recovery rating on the
notes is '3', indicating its expectation of meaningful recovery
(50%-70%; rounded estimate: 50%) in the event of a default. S&P's
rating on the proposed notes is subject to its review of the notes'
final terms and conditions.
Huhtamaki intends to use the proceeds of the proposed notes to
refinance its $500 million multi-currency bridge loan facility,
which it raised in August 2021 to finance the acquisition of
Turkey-based sustainable flexible packaging supplier, Elif Holding
AS. Huhtamaki will use any proceeds available after the payment of
transaction costs and the bridge loan refinancing for general
corporate purposes.
S&P expects the issuance of the proposed notes to be largely credit
neutral, representing a refinancing of existing debt. The proposed
notes are not subject to any financial maintenance covenants.
The interest rate on the notes is linked to the achievement of the
reduction of scope 1 and 2 greenhouse gas emissions. Failure to
meet sustainability key performance indicators under the bond
documentation does not constitute an event of default, but it could
result in an upward adjustment of the interest rate.
Huhtamaki is a leading food packaging provider, publicly listed on
the Nasdaq Helsinki. The company reported revenue of EUR3.57
billion and adjusted EBITDA of EUR460 million in 2021. Sales are
equally split between food-on-the-go and food-on-the-shelf, and
serve end-markets including quick service restaurants, food
delivery, fast moving consumer goods, and retail. Huhtamaki
generates about 35% of its revenue in emerging markets, 32% in the
U.S., and the remaining portion in other countries.
ISSUE RATINGS--RECOVERY ANALYSIS
Key analytical factors
-- S&P assigned its 'BB+' issue rating to the bonds. The recovery
rating of '3' reflects our expectations of meaningful recovery
prospects (50%-70%; rounded estimate: 50%) in the event of payment
default.
-- The recovery rating on the first-lien facilities is supported
by limited priority ranking debt, while it is constrained by large
quantum of pari passu debt.
-- The default year is taken as 2027, based on the guidance for a
'BB+' rated company.
-- S&P's hypothetical default scenario would stem from a seismic
shift to more sustainable packaging due to customer demand for more
environmentally friendly solutions.
-- S&P values the group as a going concern, given the company's
entrenched relationships with suppliers and clients, global
footprint, presence in molded fiber, food service and flexible
packaging, and innovation in sustainable solutions.
Simulated default assumptions
-- Year of default: 2027
-- Jurisdiction: Finland
-- Emergence EBITDA: EUR256 million
--Maintenance capital expenditure assumed at 3.5% of sales:
EUR120 million
--Cyclicality adjustment factor of 5%
--Operational adjustment of +30%
-- Multiple: 6.0x
Simplified waterfall
-- Gross enterprise value: EUR1,535 million
-- Net recovery value for waterfall, after 5% administrative
expenses: EUR1,459 million
-- Total first-lien debt: EUR735 million
-- Recovery value available to unsecured debt: EUR723 million
-- Total unsecured claims: EUR1,356 million
--Recovery percentage: 50%-70%; rounded estimate: 50%
Note: All debt amounts include six months of prepetition interest
accrued and assumed 85% draw on revolving credit facilities.
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F R A N C E
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EDF ENERGY: S&P Puts 'BB' ICR on CreditWatch Negative
-----------------------------------------------------
S&P Global Ratings placed on CreditWatch with negative implications
its 'BBB/A-2' ratings on French integrated power utility
Electricite de France S.A. (EDF) and 'BB' ratings on EDF Energy PLC
and EDF Energy Customers PLC. S&P also placed on CreditWatch
negative its 'BBB' long-term ratings on Edison SpA, since the
entity's creditworthiness is capped at the level of EDF's.
The CreditWatch indicates the possibility of a one-notch downgrade,
and we will monitor developments over the next six months.
Prompted by ongoing issues with stress corrosion identified or
suspected at 12 of its 56 nuclear reactors, French integrated power
utility Electricite de France S.A. (EDF) has revised down by 15TWh
its anticipated domestic nuclear output for 2022 to 280TWh-300TWh,
and it reported additional commissioning delays at its Hinkley
Point C new nuclear build in the U.K. and additional capital
expenditure (capex) of about GBP3 billion (in 2015 pounds).
The CreditWatch placement follows EDF's announcements on further
outages of its domestic fleet and of issues at its U.K. new-build
project. On May 19, 2022, EDF revised down its French nuclear
output for 2022 by 15 terawatt hours (TWh) to 280TWh-300TWh. The
revision was prompted by the discovery, during maintenance checks,
of further corrosion defects and ensuing repair needs, prolonging
outages at 12 of EDF's 56 reactors in France. This compares to a
production of 361TWh in 2021. The following day, EDF reported
additional delays for the commissioning of its two-tranche,
3.2-gigawatt Hinkley Point C new nuclear build in the U.K. The
first unit is now planned for commissioning in June 2027, a year
later than slated during the last update, making this the third
delay since the original proposal. Furthermore, EDF announced
additional capital spending of about GBP3 billion, as fixed per the
value in 2015, bringing the total investment to GBP25 billion-GBP26
billion (at 100%; EDF owns 66.5% of the project). This comes after
EDF's March announcement that the additional 20TWh ARENH volumes
the company has to deliver to other suppliers in 2022 will be sold
at a fixed price of EUR46.2/MWh, way below their cost to EDF.
Meanwhile, the cost of the additional 20TWh volumes EDF must
deliver to alternative suppliers over April-December 2022 was set
at EUR257/MWh. Because EDF continues to conduct a thorough review
of its nuclear fleet, we cannot exclude further output downside for
2022 or 2023.
These developments are likely to translate to a mid-single-digit
billion-euro EBITDA loss, as well as a substantial increase in S&P
Global Ratings-adjusted debt in 2022-2023.The significant drop in
profits leads us to anticipate a deterioration in EDF's 2023 credit
metrics to ranges below the thresholds for the current ratings.
Specifically, adjusted leverage could exceed 5.5x and adjusted debt
could reach as high as EUR100 billion. This is despite the recent
EUR3.1 billion equity increase and reflects our expectations of
markedly negative free cash flow in 2022 and somewhat negative in
2023.
Industrial challenges at EDF's French nuclear fleet raise concerns
on the resilience of the group's domestic nuclear generation. The
stress corrosion is proving to be a major quality deviation issue
hurting a large part of EDF's French nuclear fleet. In its public
hearing to the Senate last week, the French nuclear safety
authority (ASN) declared that fixing corrosion problems found on
some of EDF's reactors would require a large-scale plan and could
take several years. According to ASN, EDF's 900MW reactors (32 in
total) tend to be less affected, or not at all, by these corrosion
issues. Uncertainty remains on the nuclear availability from 2023
on for two reasons. First, EDF is expected to check more than 100
weldings by end-June, exposing the group to unplanned outages,
depending on the outcomes of these checks. Second, the 1,300MW
reactors will be inspected during their maintenance schedule,
potentially causing outages in 2023. Furthermore, as the scope and
perimeter are still not fully defined, the extent of capital
expenditure needed for the repairs remains unknown.
Timely solutions will be critical to maintaining the current
ratings. S&P will assess potential remedy measures, implemented by
EDF or the government, that could mitigate the impact of the
outages on profitability and credit metrics, pending any
clarifications of the next government's intentions. S&P also
acknowledges the existing downside risks to production and credit
metrics in 2023.
The CreditWatch captures the risks that reduced nuclear
availability in France could prevent EDF's credit metrics from
recovering to levels consistent with current ratings. S&P Said,
"For 2023, we see prospects for adjusted leverage to exceed 5.5x
and adjusted debt to exceed EUR100 billion. Such metrics would not
be commensurate with our current 5.0x leverage expectation for our
'bb' assessment of EDF's stand-alone credit profile (SACP). Barring
a change in our views on extraordinary government supports, a
one-notch downward revision of EDF's SACP would lead to the same
action on the long-term rating."
S&P expects to resolve the CreditWatch once it has more clarity on
the updated financial impact and expectations for 2023. S&P will
also weigh in any announcement of potential remedy measures, from
the company or from the newly formed government in France.
S&P will also assess the visibility on industrial performance over
the short to medium term, notably:
-- The extent, timing, and length of nuclear outages; and
-- How much electricity will be bought on power markets in
potentially adverse conditions.
At this point in time, S&P sees rating downside potential limited
to one notch. S&P will monitor developments over the coming six
months.
ESG credit indicators: E-3, S-3, G-4
ELIOR GROUP: S&P Lowers ICR to 'B+', Outlook Stable
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S&P Global Ratings lowered its ratings on French food service
provider Elior Group and the group's senior unsecured notes to 'B+'
from 'BB-'.
The stable outlook indicates that S&P thinks the group's revenue
and operating margins will recover from the pandemic, supported by
Elior taking appropriate measures to manage cost inflation and
restore profitability in the coming 12-18 months, resulting in S&P
Global Ratings-adjusted debt to EBITDA improving to about 5.5x and
funds from operations (FFO) to debt to above 12% in fiscal 2023.
Extended restrictions associated with omicron weighed heavily on
Elior's activities in the first half of fiscal 2022 (starting Oct.
1, 2021), in particular on its education, business, and industry
segments.Omicron severely disrupted Elior's operations. Reduced
attendance in restaurants due to classroom closures and delayed
office returns hit EBITDA margins amid resource-planning challenges
stemming from unpredictable demand. Although Elior reported close
to 20% revenue growth year-on-year in first-half 2022 (of which 18%
organic), the group's EBITA remained negative (minus EUR16
million), showing only a modest improvement compared with the
previous year. The French contract catering business was
particularly badly hit because of the more stringent
social-distancing restrictions implemented by the government, while
EBITA from international operations turned positive in the first
half. S&P forecasts the group's operating environment will
nevertheless improve in the second half of 2022, as
coronavirus-related restrictions ease and social and economic
activities return to normal, including more people going back to
the office, which should support demand for Elior's services.
High cost inflation will also weigh on margins despite the group's
mitigating actions. Elior is highly exposed to cost inflation and a
large proportion of its contracts do not allow for an immediate
pass-through of increased costs to customers. The group is
negotiating existing contracts to mitigate inflation effects and is
also implementing additional cost-saving measures to help restore
operating margins--including procurement and selling, general and
administrative (SG&A) expenses. The group's broader
margin-restoration plan targets the elimination of unprofitable
contracts, including the decision to terminate its loss-making
Preferred Meals business in the U.S., and adapting the group's
production unit footprint to persistently lower demand related to
ongoing remote working. S&P said, "While it restructures its
operations, we anticipate that the group's margins will remain weak
in fiscal 2022 and that it will bear high one-off restructuring
costs. Its cost-mitigation and cost-efficiency initiatives will
contribute to a significant improvement in EBITDA margins in fiscal
2023, in our view, but we do not foresee a recovery to pre-pandemic
levels before fiscal 2024."
S&P said, "Financial metrics will remain weak in fiscal 2022, but
we anticipate leverage to improve to about 5.5x and FOCF to turn
positive in fiscal 2023.We do not foresee Elior's S&P Global
Ratings-adjusted leverage and FFO to debt improving from the very
weak levels reported the year before. Moreover, despite the group's
efforts to keep capital expenditure at a minimum (below 2% of
revenue), FOCF will further deteriorate in fiscal 2022 because of
the negative impact from working capital--the group will continue
repaying the delayed social charges and value-added taxes that it
was able to postpone during the pandemic. However, as the demand
for Elior's services continues to rebound in 2023 and
cost-inflation mitigations bear fruit, we anticipate the group will
be able to post materially positive FOCF in fiscal 2023, which will
support deleveraging to about 5.5x.
"We expect Elior will maintain adequate liquidity and will face no
immediate covenant pressure, having obtained a covenant waiver for
the September 2022 test.With the waiver, the next covenant test
will now occur based on March 31, 2023 results, with a target
leverage of below 7.5x. The covenant then reduces to 4.5x in
September 2023. This provides additional time for Elior to turn
around its operations, while the group's financial policy continues
to focus on cash preservation and deleveraging. As such, we expect
the group will only resume dividend payments based on fiscal 2024,
and will refrain from making any significant acquisitions until it
has restored its credit metrics.
"Pandemic-related risks, while diminished, remain. The spread of
new coronavirus variants could derail our expected path to recovery
for Elior. Our base-case forecast assumes no such events
materialize, and that potential hiccups in return-to-office or
school attendance will remain limited.
"The stable outlook indicates that we anticipate the group's
revenue and operating margins will recover from the pandemic,
supported by Elior taking appropriate measures to manage cost
inflation and restore profitability in the coming 12-18 months,
resulting in S&P Global Ratings-adjusted debt to EBITDA improving
to about 5.5x and FFO to debt to above 12% in fiscal 2023.
"We could lower the rating if operating conditions remained
challenging in fiscal 2023 due to persistently high inflation and
margin-restoration initiatives that could result in a larger cash
outflow than we expect." Especially, S&P could lower the rating
if:
-- S&P anticipated the group's EBITDA margins will remain well
below pre-pandemic level on a prolonged basis;
-- S&P no longer expected Elior to deleverage toward 5.5x and its
FFO to debt to increase above 10% on a sustained basis;
-- S&P expected FOCF to remain negative; or
-- The group faced heightened liquidity and covenant pressure once
it resumes its leverage covenant test from March 2023.
S&P could upgrade Elior if sustained positive organic growth
combined with EBITDA margin improvement beyond our expectations, on
the back of an improved operating environment and successful
restructuring measures, resulted in S&P Global Ratings-adjusted
debt to EBITDA improving to below 4.5x and FFO to debt to above 16%
on a sustained basis.
ESG credit indicators: E-2, S-4, G-2
S&P said, "Social factors are a negative consideration in our
credit rating analysis of Elior Group. The group's business has
experienced significant health and safety challenges due to social
distancing amid the pandemic. Closures in offices, schools, and
corporate facilities resulted in a 19% revenue decline in fiscal
2020, and further 7% revenue decrease year-on-year in fiscal 2021.
EBITDA turned negative in fiscal 2020 due to high restructuring
provisions, and remained depressed in fiscal 2021. Although we
forecast gradual deleveraging, the path to recovery remains
uncertain given potentially prolonged pandemic effects."
Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:
-- Health and safety
FAURECIA SE: S&P Affirms 'BB' ICR & Alters Outlook to Negative
--------------------------------------------------------------
S&P Global Ratings revised its outlook on French auto supplier
Faurecia SE to negative from stable and affirmed its 'BB' long-term
issuer credit and issue ratings on the company's unsecured debt.
The negative outlook reflects the risk that Faurecia might not be
able to restore FFO to debt and FOCF to debt above 15% and 5% in
2023, and that FFO to debt could fall short of 12% in 2022, due to
the debt build-up after the acquisition of Hella combined with
tough industry conditions.
Tough market conditions will limit the combined group's growth and
profitability in 2022. S&P said, "We believe that Faurecia's pro
forma financial results will continue to be affected by high cost
inflation in 2022 and the protracted recovery in global auto
production from its trough in 2020. After only a modest increase of
2% in 2021, we anticipate global auto production will grow by 3%-4%
to about 79 million light vehicles this year, still far away from
the 85 million-95 million pre-pandemic range. Faurecia is
particularly exposed to European auto production (about 52% of pro
forma revenue), which fell by about 15% year-on-year in
first-quarter 2022, mainly because of the supply chain disruptions
caused by the Ukraine-Russia conflict. In addition, the recovery in
global auto production remains constrained by the prolonged
semiconductor shortage, as well as other supply chain challenges
such as the latest lockdowns in China (the country accounts for 17%
of pro forma revenue). Overall, we estimate this market environment
will hamper a firm recovery in Faurecia's pro forma S&P Global
Ratings-adjusted EBITDA margin, which we estimate will remain at
about 8.0% in 2022 from 8.3% last year stand-alone. We also project
that the widespread cost inflation on raw materials and other
operating costs such as labor, energy, and logistics will be a
headwind for the company's margins. We estimate that auto suppliers
recover 70%-80% of the raw material cost inflation on average, but
this typically comes with a time lag that negatively affects
near-term profitability, while the increase in other expenses is
typically more difficult to pass through to auto original equipment
manufacturers (OEMs)."
Weak earnings will delay the recovery in Faurecia's credit metrics
after the Hella acquisition. S&P said, "We estimate the EUR4.9
billion spent in cash to close the acquisition earlier this year
will contribute to a buildup in S&P Global Ratings-adjusted debt to
EUR10 billion-EUR11 billion at year-end 2022 from EUR5.2 billion as
of Dec. 31, 2021. This is despite our assumption of proceeds of
EUR350 million from asset disposals per year in 2022 and 2023. We
continue to incorporate equity issuance of EUR600 million-EUR700
million in our base-case scenario for 2022, but see increased
execution risk from uncertain capital market conditions. Overall,
we anticipate FFO to debt of 11%-15% and FOCF to debt of 0%-1% in
2022, well below the 15%-20% and 5%-10% ranges, respectively, that
we view as commensurate with the rating. Given the low visibility
on a firmer recovery in global auto production and on when
inflationary pressures will abate, we think there is increasing
risk that Faurecia's earnings and cash flow will not recover
sufficiently by 2023 to restore credit metrics above our respective
downside triggers."
Cash flow conversion will be a weakness this year and structural
improvements could take time. S&P said, "We foresee only break-even
FOCF this year, down from an already low EUR100 million in 2021 for
Faurecia stand-alone, which was equivalent to an FOCF to debt ratio
of 1.8% and well below our requirement of 5% for the rating. For
the nine months ending Feb. 28, 2022, Hella also reported negative
FOCF of about EUR300 million, mainly driven a working capital
consumption of EUR337 million. Overall, we anticipate that, in
addition to constrained earnings growth, working capital
requirements of about EUR200 million will hinder the combined
group's cash flow in 2022 as cost inflation and stock piling of
certain components (notably electronic) lead to sizable cash
outlays. We also believe that FOCF will remain hampered by
sustained capital expenditure (capex) and research and development
(R&D) investment, notably as Hella is rolling out new products that
require upfront spending (notably 77 gigahertz radar sensors and
new driver assistance and battery management systems components).
We view Hella as being more capital- and R&D-intensive than
Faurecia, with an historical reported capex-to-sales ratio
(including capitalized development costs) of about 9% on average,
and an average reported R&D to sales ratio of 9.5% (excluding
capitalized development costs). This compares with historical
ratios respectively of about 7% and 2% for Faurecia standalone. As
a result, we believe the combined group's FOCF could stay below
EUR500 million until supported by operating leverage from higher
global light vehicle production and lessening inflationary
pressure, both of which we do not expect to materialize before
2023."
Faurecia's financial policy signals a deleveraging commitment, but
execution risk has increased. The company continues to target a
progressive decrease in its reported net debt to EBITDA below 1.5x
in the next two years, backed by remedial actions such as noncore
asset disposals, equity issuance, and dividend reductions. While
the recently proposed cancellation of the common dividend for 2022
along with an increased target for divestment proceeds to EUR1
billion by year-end 2023 (from EUR500 million previously) support
this ambition, we believe that some of the measures could be
hindered in the near-term by difficult conditions in capital
markets. S&P said, "Without the EUR600 million-EUR700 million
equity issuance in 2022 and EUR700 million of disposals by year-end
2023 included in our base-case scenario, we estimate that our 2023
FFO-to-debt and FOCF-to-debt ratios would decrease by about 200
basis points and 50 basis points, respectively, compared with our
current forecast and increasing the likelihood of a downgrade. A
prolonged delay in completing these remedial actions when capital
market conditions improve could signal a negative shift in the
company's financial policy, which we do not anticipate."
The negative outlook reflects the risk that Faurecia might not be
able to restore FFO to debt and FOCF to debt above 15% and 5%,
respectively, in 2023 due to debt buildup after the acquisition of
Hella, and as earnings and cash flows remain challenged by tough
industry conditions. It also reflects some near-term execution risk
in the company's target to lower its debt load from equity issuance
and asset disposals.
S&P said, "We could lower our rating on Faurecia if we anticipate
FFO to debt and FOCF to debt remaining below 15% and 5%,
respectively, in 2023 because of prolonged weakness in auto
production, steep input cost inflation, or challenges with
integrating Hella. We could also downgrade the company in the next
nine months if weaker than anticipated earnings and FOCF or delays
in its plans to reduce debt through equity issuance and disposals
result in FFO to debt below 12% in 2022.
"We could revise our outlook on Faurecia to stable if we expect the
company will restore FFO to debt and FOCF to debt above 15% and 5%,
respectively, in 2023 and beyond. This could stem from a firmer
recovery in global auto production and successful measures to
compensate cost inflation such that the combined group's earnings
and FOCF materially improves in 2023. Material asset disposals used
for debt reduction or raising equity would likely have to support
the company's deleveraging path."
Environmental, Social, And Governance
ESG credit indicators: E-2, S-2, G-2
S&P said, "ESG factors have an overall neutral influence on our
credit rating analysis for Faurecia. The company bears a relatively
limited exposure to the energy transition risks of the automotive
sector through its Clean Mobility division, which will account for
about 18% of pro forma sales in 2022. The Clean Mobility division
bears displacement risks over the medium term because its
anti-pollutant systems are not necessary in electric cars, but we
think the company has the financial flexibility to gradually
diversify away from internal combustion engine-related products
through investments. In our base-case scenario, we include yearly
spend of about EUR150 million for bolt-on acquisitions and
investments in joint-ventures that should support the replacement
of lost sales. By 2030, Faurecia is committed to full carbon
neutrality of its own carbon dioxide emissions and of its supply
chain (excluding use of sold products), in line with most global
peers."
-- S&P's issue and recovery ratings on Faurecia's senior unsecured
notes and EUR1.5 billion revolving credit facility (RCF) are 'BB'
and '3', respectively. S&P does not rate Hella's unsecured notes.
-- The '3' recovery rating S&P's expectation of meaningful
recovery prospects (50%-70%, rounded estimate: 50%) in the event of
a default.
-- S&P said, "Our updated recovery analysis assumes that Faurecia
and Hella's capital structures remain independent from each other
in the near term, because we expect the two companies to continue
to operate as separate legal entities for now. The companies' debt
documentation does not include any cross-default clauses or
upstream guarantees and we do not expect this to change. Our
emergence valuation is, however, based on the combined group given
Faurecia's 81.5% ownership of Hella."
-- S&P said, "While we incorporate Faurecia's bridge facility debt
issued in 2022 to finance the transaction and anticipate that most
of Hella's debt will remain outstanding in the near term, the final
capital structure could somewhat differ. We also assume that the
change of control clause on its EUR300 million and EUR400 million
unsecured notes due 2024 and 2027, respectively, will not be
activated."
-- Indicative recovery prospects are supported by about EUR900
million of net residual value coming from Faurecia's 81.5% stake in
Hella after Hella's unsecured creditors are fully repaid. It
remains constrained by factoring liabilities of about EUR1 billion
(excluding prepetition interest) and debt at Faurecia's operating
companies, which S&P considers priority liabilities in its payment
waterfall.
-- In S&P's hypothetical default scenario, it assumes a cyclical
downturn in the industry and intensified competition, which hamper
production volumes and prices and cause the company's EBITDA and
cash flow to sharply decline.
-- S&P values Faurecia as a going concern, given its global
industrial footprint and long-standing relationships with auto
original equipment manufacturers.
-- Simulated year of default: 2027
-- Pro forma EBITDA at emergence: EUR1.8 billion
-- EBITDA multiple: 5x (in line with the sector average)
Faurecia's EUR1.5 billion RCF and Hella's EUR450 million RCF: 85%
drawn at default
-- Net enterprise value (after 5% administrative costs): EUR8.7
billion
-- Valuation split (Faurecia/Hella): 70%/30%
-- Net Faurecia valuation: EUR6.1 billion
-- Net Hella valuation: EUR2.6 billion
-- Faurecia's priority claims: EUR1.3 billion
-- Faurecia's value available to unsecured claims: EUR4.8 billion
-- Net residual value from Faurecia's 81.5% stake in Hella, net of
EUR1.5 billion of unsecured claims to Hella's debtholders: EUR0.9
billion
-- Total value available to unsecured claims: EUR5.7 billion
-- Senior unsecured debt claims: EUR10.9 billion
--Recovery expectations: 50%-70% (rounded estimate: 50%)
All debt amounts include six months of prepetition interest and 85%
of RCF drawings at default.
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G E R M A N Y
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DICE ACQUICO: S&P Assigns 'CCC+' ICR, Outlook Negative
------------------------------------------------------
S&P Global Ratings assigned its 'CCC+' issuer credit rating and
negative outlook to Dice Acquico GmbH (Lowen Play).
S&P said, "We also assigned a 'CCC+' issue rating and a '3'
recovery rating to the group's EUR258 million reinstated senior
secured notes, issued by Safari Holding Verwaltungs. The '3'
recovery rating reflects our expectation of 50%-70% (rounded
estimate: 60%) recovery in a default scenario.
"We assigned a 'CCC-' issue rating and '6' recovery rating to the
new PIK notes issued by Dice Midco S.a r.l. The '6' recovery rating
indicates our expectation of negligible recovery (rounded estimate:
0%) in the event of a payment default.
"At the same time, we raised the rating on Safari Beteiligungs GmbH
from 'SD' to 'CCC+' in line with the new parent, and then withdrew
the rating. The outlook at time of withdrawal was negative.
"We also withdrew the ratings on the group's old senior notes
issued by Safari Holding Verwaltungs GmbH.
"The negative outlook on Dice Acquico indicates that we could
downgrade Dice Acquico over the next 12 months if we believe there
is an increased risk of default due to operational
underperformance, declining liquidity, a distressed debt purchase,
or a further debt restructuring."
The restructuring of German gaming company Lowen Play has been
completed, with Dice Acquico GmbH established as the new parent
company of the restricted group.
After the restructuring, Lowen Play GmbH will have approximately
EUR258 million of outstanding senior secured notes issued by Safari
Holding Verwaltungs GmbH. Furthermore, Dice Midco S.a r.l.,
indirect owner of Lowen Play Group, issued EUR130 million of
subordinated payment-in-kind (PIK) debt.
The new ratings reflect the recent completion of the group's
restructuring and newly implemented capital structure.
Safari Beteiligungs GmbH launched the restructuring process on Dec.
2, 2021, under which a new holding structure has been created. The
existing noteholders hold 95% of economic interest in the new group
TopCo, Dice Holdings, and existing shareholders retain a 5%
economic interest and EUR7.5 million in preferred shares. The key
restructuring amendments are:
-- The prior EUR350 million senior secured notes have been
reinstated as EUR258 million senior secured notes, issued by Safari
Holding Verwaltungs GmbH. The amount consists of EUR220 million par
value of the old notes, plus EUR30 million of new money from
investors and capitalization of approximately EUR8 million of
interest, with the full amount being fungible debt.
-- EUR130 million of the existing senior notes have been
reestablished as subordinated PIK notes outside of the restricted
group, issued by Dice Midco S.a r.l.
-- The existing fully drawn EUR40 million super senior secured
revolving credit facility (SSRCF) has been repaid in full at
closing.
-- The maturity of the reinstated senior secured notes has been
extended by about three years to Dec. 15, 2025, and until Sept. 30,
2026, for the subordinated PIK notes.
-- The cash interest coupon of the senior secured notes at Safari
Holding Verwaltungs GmbH is 7.75%. The PIK notes at Dice Midco S.a
r.l. have a coupon of 12.5% (of which 0.5% is paid in cash).
S&P Global Ratings' calculation of leverage improves because of
repayment of the shareholder loan, but cash payment of debt in the
consolidated group remains similar. The transaction results in a
reduction of our adjusted debt to EUR555 million from EUR751
million at the fiscal year-end, Dec. 31, 2021, pro forma for the
transaction, supported by the cancelation of the shareholder loan
from Lowen Play's previous sponsor owner. S&P considers the EUR130
million reclassified PIK note as debt in its assessment of the
group's adjusted metrics, since it does not meet its non-common
equity criteria. Pro forma for the transaction, leverage stands at
52.3x as of year-end 2021 and is expected to reduce below 9.0x at
year-end 2022.
S&P said, "We expect Lowen Play will improve its operating
performance following Germany's lifting of restrictions since March
2022.Lowen Play was hit hard by the lockdowns in Germany during
2021, with strict lockdowns in most states resulting in a reduction
of its revenue to EUR127 million in 2021 from EUR183 million in
2020 and EUR283 million in 2019. With the roll-out of the
vaccination and 76% of Germans being vaccinated twice by the end of
March 2022, the German Infection Protection Act related to COVID-19
ended and most states have eased lockdown restrictions. We expect
the group will increase revenue to around EUR200 million–EUR220
million, but still not to the EUR283 million achieved in 2019 given
the significant reduction in the number of amusement with price
(AWPs) machines in Germany to 7,357 in 2021 from 8,562 in 2019. We
forecast that adjusted EBITDA margins will recover to around 30%
(2019: 41.7%) following the easing of lockdowns and we expect S&P
Global Ratings-adjusted leverage to fall to around 8.5x-9.0x in
2021 (6.3x–6.8x excluding the PIK notes).
"The group's cash balance is currently adequate, although we expect
2022 free operating cash flow (FOCF) will be negative and no
revolving credit facility will be available Following around EUR80
million of COVID-related grants received in 2021, Lowen Play's
liquidity position stands at EUR95 million of accessible cash at
year-end 2021. Pro forma for the transaction, which includes the
repayment of the fully drawn EUR40 million SSRCF, cash will stand
at around EUR65 million at the transaction's close. We forecast
that the high cash interest payments, capital expenditure (capex),
and lease payments will lead to negative FOCF after leases in 2022
and 2023. With no upcoming maturities in the next 12 months, we
assess Lowen Play's liquidity as still adequate. However, any
underperformance against our base case could lead to rising
liquidity concerns."
There is some continued uncertainty regarding the regulatory
environment and growth prospects of Lowen Play's online ventures.
On July 1, 2021, the Interstate Treaty came into effect. It
legalizes online gambling and regulates arcades. Currently, the 16
federal states are implementing the new treaty which poses
uncertainty for Lowen Play's number of AWPs. Arcade locations
decreased by 2% in 2021, while AWPs decreased by approximately 14%.
Each state can grant transitional arrangements for arcades
established before 2020, and we expect that Lowen Play is in a good
position to receive such arrangements supported by its strong
market position. There is still a risk that the number of AWPs
might decrease beyond our current expectation, which would hamper
the recovery process.
Since October 2020 Lowen Play also operates online slots, which
complements its online offering. The online offering achieved
around EUR9.5 million of revenue in 2021 but made no meaningful
contribution to consolidated profits. S&P expects revenue to
increase toward EUR15 million-EUR25 million until 2023, although
the group faces large well-funded and established players in online
slots and profitability may be uncertain in the short term.
The qualitative aspects of the Interstate Treaty could reduce
revenue and profitability, driven by the implementation of a gamer
blocking system and certain training and certificate requirements
for arcades that will be operated under a transitional
arrangement.
Regulations reduce the appeal of arcade and online gambling for
customers.For online gambling, the Interstate Treaty implements
monthly limits on betting and the stake per bet, and requires a
minimum time between each game.
For land-based gambling, the new technical standard 5.0 in place
with all requirements for all AWPs since February 2021, requires
the manual start of each game, a maximum stake of EUR10 per game,
and the machine-specific and non-guest specific identification of
customers to avoid gambling on multiple machines.
All those aspects reduce the appeal of gambling in Germany and pose
a risk to Lowen Play's recovery. Finally, the impact of closures
during COVID's peak years of 2020 and 2021 remains uncertain in
many markets and to what degree a structural channel shift may
occur as regards online gaming business.
S&P said, "The negative outlook indicates that we could downgrade
Dice Acquico GmbH (Lowen Play) over the next 12 months if the group
underperforms our base case and we believe the group faces an
increased risk of default." This could occur due to operational
underperformance, declining liquidity, a distressed debt purchase,
or further debt restructuring.
S&P could lower the rating if it expects the group faces a higher
risk of default. Such scenarios could include:
-- The group underperforms our base case or its credit ratios
deteriorate, due, for example, to operating underperformance.
-- Leverage remains very high indicating a highly unsustainable
capital structure.
-- Liquidity declines, decreasing financial flexibility and
ability to meet operating, fixed, and financial commitments.
-- An increasing risk of specific default events including debt
buybacks below par, a liquidity crisis, debt exchange, or debt
restructuring.
The group will likely need to demonstrate a sustainable track
record of improving organic operating performance and credit
metrics to underpin a positive rating action. S&P could revise the
outlook to stable, if:
-- The group performed in line with our forecast base case and
credit metrics. This would likely result thanks to improved
business, regulatory, or economic conditions leading to an increase
in the company's revenue, profitability, and liquidity.
-- Lowen Play maintains at least adequate liquidity.
-- Significant progress toward breakeven FOCF after leases,
demonstrating the ability to meet fixed operating and financial
commitments from operating performance.
-- There is no risk of specific default events, such as distressed
exchange, debt buybacks, or restructuring
ESG credit indicators: E-2, S-4, G-3
S&P said, "Social factors are a negative consideration in our
credit rating analysis, because we consider that the group has been
negatively impacted from health and safety and social capital
factors. Heightened regulatory uncertainty and the impact from
health and safety-related COVID lockdowns, in our view ultimately
contributed in part to the restructuring of the group's existing
debt structure. We see the group's market positioning in the
land-based arcades sector as an indication that the operations will
continue to be exposed to the regulatory and transitionary regime
implementation in Germany.
"Governance factors are a moderately negative consideration, as is
the case for most rated entities owned by private equity sponsors.
We believe the company's highly leveraged financial risk profile
points to corporate decision-making that prioritizes the interests
of the controlling owners. This also reflects generally finite
holding periods and a focus on maximizing shareholder returns."
REVOCAR 2019 UG: Moody's Affirms Ba1 Rating on Class D Notes
------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of two Notes in
Asset-Backed European Securitisation Transaction Sixteen UG
(haftungsbeschrankt) (ABEST 16) and two Notes in RevoCar 2019 UG
(haftungsbeschrankt) (RevoCar 2019). The rating action is prompted
by an increase in credit enhancement in both transactions for the
affected tranches together with better than expected performance in
RevoCar 2019.
Moody's affirmed the ratings of the Notes that had sufficient
credit enhancement to maintain the current ratings.
Issuer: Asset-Backed European Securitisation Transaction Sixteen UG
(haftungsbeschränkt)
EUR540M Class A Notes, Affirmed Aaa (sf); previously on Jul 23,
2021 Affirmed Aaa (sf)
EUR18M Class B Notes, Affirmed Aaa (sf); previously on Jul 23,
2021 Affirmed Aaa (sf)
EUR20M Class C Notes, Affirmed Aaa (sf); previously on Jul 23,
2021 Upgraded to Aaa (sf)
EUR16M Class D Notes, Upgraded to Aaa (sf); previously on Jul 23,
2021 Upgraded to Aa2 (sf)
EUR11M Class E Notes, Upgraded to Aa2 (sf); previously on Jul 23,
2021 Upgraded to A2 (sf)
Issuer: RevoCar 2019 UG (haftungsbeschraenkt)
EUR366M Class A Notes, Affirmed Aaa (sf); previously on Jul 23,
2021 Affirmed Aaa (sf)
EUR18.7M Class B Notes, Upgraded to Aa1 (sf); previously on Jul
23, 2021 Upgraded to Aa2 (sf)
EUR4.1M Class C Notes, Upgraded to Aa3 (sf); previously on Jul 23,
2021 Upgraded to A3 (sf)
EUR7.1M Class D Notes, Affirmed Ba1 (sf); previously on Jul 23,
2021 Affirmed Ba1 (sf)
ABEST 16 is a cash securitisation of auto loan receivables extended
by FCA Bank Deutschland GmbH, which is owned by FCA Bank S.p.A.
("FCAB") to obligors located in Germany. ABEST 16 featured a 1-year
revolving period which ended in December 2019.
RevoCar 2019 is a cash securitisation of agreements entered into
for the purpose of financing vehicles predominantly to private
obligors in Germany by Bank11 fuer Privatkunden und Handel GmbH
("Bank11") (NR). The originator also acts as the servicer of the
portfolio. RevoCar 2019 featured a 1-year revolving period which
ended in April 2020.
RATINGS RATIONALE
The rating action is prompted by an increase in credit enhancement
in both transactions for the affected tranches together with better
than expected performance in RevoCar 2019.
Increase in Available Credit Enhancement
Sequential amortization in ABEST 16 led to the increase in the
credit enhancement available in this transaction.
In ABEST 16, the credit enhancement for the Classes D and E Notes
upgraded in the rating action increased to 19.14% and 12.28% from
11.17% and 7.41% as of the latest rating action in July 2021
respectively.
In RevoCar 2019, the credit enhancement for the Classes B and C
Notes upgraded in today's rating action increased to 9.50%, and
6.96% from 6.19%, and 4.53 % as of the latest rating action in July
2021 respectively.
Revision of Key Collateral Assumptions
As part of the rating action, Moody's reassessed its expected loss
and default probability assumption for ABEST 16 and RevoCar 2019
respectively, reflecting the collateral performance to date.
The performance of ABEST 16 has continued to be stable since
closing. The delinquency rates remain at relatively low levels,
with 90 days plus arrears standing at 0.32% of the current
portfolio balance. Cumulative defaults currently stand at 0.56% of
original pool balance plus replenishments.
For ABEST 16 Moody's has increased the mean expected loss
assumption of 1.06% of the original pool balance plus
replenishments, from 0.98% since latest rating action in July 2021.
The current expected loss assumption on current portfolio balance
is 2.35% . Moody's left the assumption for portfolio credit
enhancement unchanged at 13%.
The performance of RevoCar 2019 has continued to be stable since
closing. The delinquency rates remain at relatively low levels,
with 60 days plus arrears standing at 0.02% of the current
portfolio balance. Cumulative defaults currently stand at 0.70% of
original pool balance plus replenishments.
For RevoCar 2019, Moody's has reduced the default probability
assumption on original balance to 1.46% from 1.53% since latest
rating action in July 2021. The current default probability is 2.5%
of the current portfolio balance. Moody's maintained the assumption
for the fixed recovery rate at 30% and the portfolio credit
enhancement of 10%.
Counterparty Exposure
The rating actions took into consideration the Notes' exposure to
relevant counterparties, such as servicer, account banks or swap
providers.
Moody's considered how the liquidity available in the transactions
and other mitigants support continuity of Note payments, in case of
servicer default. As a result, in RevoCar 2019 the ratings of the
Class B Notes are constrained at Aa1 (sf) by financial disruption
risk.
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
September 2021.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors or circumstances that could lead to an upgrade of the
ratings include: (1) performance of the underlying collateral that
is better than Moody's expected; (2) an increase in available
credit enhancement; and (3) improvements in the credit quality of
the transaction counterparties.
Factors or circumstances that could 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.
=============
I R E L A N D
=============
MADISON PARK XV: S&P Assigns B- Rating on Class F-R Notes
---------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Madison Park Euro
Funding XV DAC 's class A-1-R, A-2-R, B-R, C-R, D-R, E-R, and F-R
reset notes. The existing transaction has unrated subordinated
notes outstanding that are unaffected.
The transaction is a reset of the existing Madison Park Euro
Funding XV, which closed in April 2020. The issuance proceeds of
the refinancing notes was used to redeem the refinanced notes and
pay fees and expenses incurred in connection with the reset.
Under the transaction documents, the rated notes will pay quarterly
interest unless there is a frequency switch event. Following this,
the notes will switch to semiannual payment.
The portfolio's reinvestment period will end 5.1 years after
closing, and the portfolio's non-call period will be two years
after closing.
The ratings assigned to the notes reflect S&P's assessment of:
-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.
-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.
-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.
Portfolio Benchmarks
CURRENT
S&P Global Ratings weighted-average rating factor 2,842.94
Default rate dispersion 516.64
Weighted-average life (years) with reinvestment 5.14
Weighted-average life (years) without reinvestment 4.59
Obligor diversity measure 135.10
Industry diversity measure 23.47
Regional diversity measure 1.23
Transaction Key Metrics
CURRENT
Total par amount (mil. EUR) 400.00
Defaulted assets (mil. EUR) 0.00
Number of obligors 170
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 2.30
'AAA' reference portfolio weighted-average recovery (%) 36.05
Reference weighted-average spread net of floor (%) 3.80
Reference weighted-average coupon (%) 4.73
Rating rationale
S&P said, "Our ratings reflect our assessment of the collateral
portfolio's credit quality, which has a weighted-average rating of
'B'. We consider that the portfolio will primarily comprise broadly
syndicated speculative-grade senior secured term loans and senior
secured bonds. Therefore, we conducted our credit and cash flow
analysis by applying our criteria for corporate cash flow CDOs.
"In our cash flow analysis, we used the EUR400 million performing
amount, the covenanted weighted-average spread of 3.78%, the
covenanted weighted-average coupon of 4.73%, and the reference
pool's weighted-average recovery rates for all rated notes. We
applied various cash flow stress scenarios, using four different
default patterns, in conjunction with different interest rate
stress scenarios for each liability rating category.
"The existing transaction benefits from a EUR10 million interest
cap, with a strike rate of 2.75% from October 2022 until April
2026. This reduces interest rate mismatch between assets and
liabilities in a scenario where interest rates exceed 2.75% and
will remain in place of the reset transaction.
The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under our counterparty criteria.
"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned ratings, as the exposure to individual
sovereigns does not exceed the diversification thresholds outlined
in our criteria.
"The transaction's legal structure is bankruptcy remote, in line
with our legal criteria.
"Our credit and cash flow analysis indicates that the available
credit enhancement for the class B-R to E-R notes could withstand
stresses commensurate with higher ratings than those we have
assigned. However, as the CLO is still in its reinvestment phase,
during which the transaction's credit risk profile could
deteriorate, we have capped our assigned ratings on the notes. The
class A-1-R and A-2-R notes can withstand stresses commensurate
with the assigned ratings.
"The class F-R notes' current break-even default rate cushion is
negative at the current rating level. Nevertheless, based on the
portfolio's actual characteristics and additional overlaying
factors--including our long-term corporate default rates and recent
economic outlook--we believe this class is able to sustain a
steady-state scenario, in accordance with our criteria." S&P's
analysis further reflects several factors, including:
-- The class F-R notes' available credit enhancement, which is in
the same range as that of other recently issued European CLOs S&P
has rated.
-- S&P's model-generated portfolio default risk, which is at the
'B-' rating level at 25.66% (for a portfolio with an adjusted
weighted-average life of 5.14 years), versus 15.93% if it was to
consider a long-term sustainable default rate of 3.1% for 5.14
years.
-- Whether the tranche is vulnerable to nonpayment soon.
-- If there is a one-in-two chance for this note to default.
-- If S&P envisions this tranche to default in the next 12-18
months.
-- Following this analysis, S&P considers that the available
credit enhancement for the class F-R notes is commensurate with the
assigned 'B- (sf)' rating.
-- Following S&P's analysis of the credit, cash flow,
counterparty, operational, and legal risks, it believes that its
ratings are commensurate with the available credit enhancement for
the class A-1-R, A-2-R, B-R, C-R, D-R, E-R, and F-R notes.
S&P said, "In addition to our standard analysis, to provide an
indication of how rising pressures among speculative-grade
corporates could affect our ratings on European CLO transactions,
we have also included the sensitivity of the ratings on the class
A-1-R to E-R notes to five of the 10 hypothetical scenarios we
looked at in our publication "How Credit Distress Due To COVID-19
Could Affect European CLO Ratings," published on April 2, 2020.
"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category, and we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met, we have not included the above scenario analysis results
for the class F-R notes."
Environmental, social, and governance (ESG) factors
S&P said, "We regard the exposure to ESG credit factors in the
transaction as being broadly in line with our benchmark for the
sector. Primarily due to the diversity of the assets within CLOs,
the exposure to environmental credit factors is viewed as below
average, social credit factors are below average, and governance
credit factors are average. For this transaction, the documents
prohibit assets from being related to the following industries:
controversial weapons, chemical weapons, biological weapons,
cluster munitions, landmines, weapons utilizing non-detectable
fragments, white phosphorus, blinding laser weapons, nuclear
weapons, and depleted uranium; the development, production,
maintenance, trade or stock-piling of weapons of mass destruction,
including radiological, nuclear, biological and chemical weapons;
weaknesses in business conduct and governance in relation to the
United Nations Global Compact Principles; production or trade of
illegal drugs or narcotics, including recreational marijuana; and
trades in endangered or protected wildlife. The documents also
prohibit more than 5% of revenue coming from tobacco, thermal coal,
oil sands extraction, pornography or prostitution, and palm oil and
palm fruit products; more than 10% of revenue coming from civilian
firearms; and more than 30% of revenue from opioid and
ozone-depleting substances."
Accordingly, since the exclusion of assets from these industries
does not result in material differences between the transaction and
S&P's ESG benchmark for the sector, no specific adjustments have
been made in our rating analysis to account for any ESG-related
risks or opportunities.
Ratings List
CLASS RATING AMOUNT SUB (%) INTEREST RATE*
(MIL. EUR)
A-1-R AAA (sf) 218.00 38.00 Three/six-month EURIBOR
plus 1.15%
A-2-R AAA (sf) 30.00 38.00 Three/six-month EURIBOR
plus 1.50%§
B-R AA (sf) 38.80 28.30 Three/six-month EURIBOR
plus 2.15%
C-R A (sf) 22.20 22.75 Three/six-month EURIBOR
plus 3.15%
D-R BBB- (sf) 27.40 15.90 Three/six-month EURIBOR
plus 4.50%
E-R BB- (sf) 19.70 10.97 Three/six-month EURIBOR
plus 7.29%
F-R B- (sf) 15.10 7.20 Three/six-month EURIBOR
plus 9.91%
M-Sub NR 35.35 N/A N/A
*The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event
occurs.
===========
N O R W A Y
===========
PGS ASA: Moody's Affirms 'Caa1' CFR & Alters Outlook to Stable
--------------------------------------------------------------
Moody's Investors Service has affirmed the Caa1 long-term corporate
family rating of seismic service provider PGS ASA (PGS) while the
probability of default rating has been upgraded to Caa1-PD from
Caa2-PD. The outlook on the rating has changed to stable from
negative.
RATINGS RATIONALE
The rating action reflects the equity private placement completed
by the company on the May 4, 2022 raising approximately USD85
million and the additional debt commitments of a super senior
secured debt facility of USD 50 million announced on the May 24,
2022; the proceeds will be used to meet near term debt amortization
of the company. Moody's understand that the debt and equity raising
remains subject to a favorable shareholders vote at the
extraordinary general meeting (EGM) of the company to be held on
the May 27, 2022; Moody's rating action reflect the likelihood a
favorable shareholder vote at the EGM and the revised capital
structure.
The additional cash improves the liquidity profile of the company
in the next 12 months, but a refinancing of the term loan B would
be needed during 2023 as PGS operating cash flow generation is
expected not to be sufficient to repay September 2023 $200 million
amortization.
Moody's expects a moderate recovery in the performance of PGS in
2022, as also demonstrated by the positive momentum from high oil
prices and renewed appetite for E&P investments, albeit at a low
single digit. PGS pipeline remain strong, $315 million as of first
quarter 2022 and an additional $70 million after quarter close
while benefiting from a continuous news flow of new contracts being
awarded.
Moody's viewed positively the company returning to free cash flow
positive (after lease payments) in 2021 and expects free cash flow
to increase from 2023. Moody's projected adjusted leverage would
decline from 5.0x last twelve months ending March 2022 to below
4.5x during 2023. PGS is expected to approach refinancing in the
first quarter of 2023 with a lower debt quantum after $201 millions
of repayments in 2022 (including leases), higher EBITDA and
improved visibility on market conditions; these elements increase
the probability of a market refinancing rather than a debtholder
extension like experienced in 2020/21.
ESG CONSIDERATIONS
There is discernible negative impact on the current rating driven
by a highly negative governance issuer profile score (IPS) due to
the company's high debt burden which has led to a distressed
exchange in 2020, which Moody's considered a default under its
definition. The company has a high exposure to carbon transition
risk given that its earnings are entirely focused on oil & gas
customers and it relies on exploration and development activities.
RATING OUTLOOK
The rating outlook is stable and reflects Moody's view that the
seismic market is recovering. The stable outlook also reflects a
higher likelihood of a refinancing occurring sometime in 2023, as
the company leverage is expected to decline to below 3.0x on a net
debt to EBITDA basis.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A rating upgrade is predicated on a sustainable market recovery
leading to an improved financial profile with an adjusted total
debt to EBITDA (excluding multiclient capital spending) keeping
below 5x on a sustained basis. An upgrade would also require the
group to be consistently free cash flow (FCF) positive and having
addressed the debt refinancing.
The Caa1 rating could be downgraded if the company fails to meet
guidance for 2022, leading to still negative EBIT margins, ROI and
Moody's-adjusted total debt to EBITDA (excluding multiclient
capital spending) above 6.0x for an extended period. Failure to
refinance the debt due in September 2023 well ahead of time could
also lead to a negative rating action.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Integrated Oil
and Gas Methodology published in September 2019.
COMPANY PROFILE
PGS ASA (PGS) is one of the leading offshore seismic acquisition
companies with worldwide operations. PGS headquarters are located
in Oslo, Norway. The company is a technologically leading oilfield
services company specializing in reservoir and geophysical
services, including seismic data acquisition, processing and
interpretation, and field evaluation. PGS maintains an extensive
multi-client seismic data library. In 2021, PGS reported revenues
of $704 million and EBITDA of $421 million with a margin of 59.8%.
PGS is a public limited company and it is listed on the Oslo Stock
Exchange.
===========
R U S S I A
===========
[*] RUSSIA: To Service Dollar Debt in Rubles After Waiver Ends
--------------------------------------------------------------
Bloomberg News reports that Russia will service its dollar debt in
rubles after the expiry of a sanctions loophole closed the option
of payments in the US currency, potentially putting Moscow on track
to default.
The announcement came a day after the US confirmed the end of the
waiver, creating another headache for Russia as it tries to get
funds to investors, Bloomberg notes. According to Bloomberg, a
payment in rubles would breach the terms on a 2026 dollar bond with
coupons due today, May 27, triggering a 30-day grace period before
Russia could potentially slip into default.
Russia faces an "artificial situation created by an unfriendly
nation," Bloomberg quotes Finance Minister Anton Siluanov as saying
in a statement. "We have the money and the willingness to pay."
The ministry said the ruble payments will be made to foreign
investors' type 'C' accounts, which they will be able to access
after applying to Russia's National Settlement Depository,
Bloomberg notes. It's unclear how that process would play out,
however, and whether investors would ultimately be able to retrieve
the payments, according to Bloomberg.
Russia, Bloomberg says, is being pushed closer to default by
sanctions and restrictions imposed as punishment for its invasion
of Ukraine. US banks and individuals are barred from accepting
bond payments from Russia's government since 12:01 a.m. New York
time on Wednesday, May 25, Bloomberg discloses.
Russia is scheduled to make about $100 million in foreign debt
payments Friday. Given the expiry of the loophole was expected, it
started transferring the money last week to get ahead of the new
restrictions. It said at the time that because the funds had gone
to the paying agent, its obligations on the debt were fulfilled,
Bloomberg relates.
Of Russia's upcoming payments, only the 2036 euro-denominated bond
with a coupon due today, May 27, allows for payments in rubles,
Bloomberg states. The 2026, with a dollar denomination, only lists
sterling, euros or francs as alternative currencies, Bloomberg
relays, citing the bond documents. For the next three payments at
the end of June, the bond documents also don't include the ruble as
an alternative currency for payments, according to Bloomberg.
===========
S E R B I A
===========
JAGODINSKA PIVARA: Serbia Puts Assets Up for Sale for RSD58-Mil.
----------------------------------------------------------------
Branislav Urosevic at SeeNews reports that Serbia's Bankruptcy
Supervision Agency said it is offering for sale assets of bankrupt
beer producer Jagodinska Pivara for RSD58 million
(EUR493,500/US$530,300 million).
According to SeeNews, the agency said in a statement on May 23 the
assets include seven production facilities and a warehouse.
The auction will take place on June 23, SeeNews discloses.
Jagodinska Pivara was declared bankrupt in 2016, SeeNews recounts.
===========
T U R K E Y
===========
TURKIYE IS BANKASI: S&P Withdraws 'B/B' Issuer Credit Ratings
-------------------------------------------------------------
S&P Global Ratings withdrew its 'B/B' long- and short-term issuer
credit ratings, as well as its 'trA-/trA-2' long- and short-term
national scale ratings on Turkiye Is Bankasi AS (Isbank) at the
company's request. The outlook was negative at the time of the
withdrawal.
===========================
U N I T E D K I N G D O M
===========================
HOLLAND & BARRETT: S&P Lowers Parent's LT ICR to 'CCC+'
-------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
L1R HB Finance Ltd. to CCC+' from 'B-'. S&P has also lowered to
'CCC+' the issue ratings on the GBP825 million-equivalent term loan
facilities, in line with the rating on the group. The recovery
rating on these facilities is unchanged at '4' indicating an
estimated recovery of about 45% in the event of a hypothetical
default scenario.
The negative outlook reflects the risk of a further downgrade if
the company is unable to recover its operating performance, restore
positive FOCF after leases, and address its fragile liquidity
position and debt maturity schedule.
L1R HB, the parent of U.K.-based specialty retailer Holland &
Barrett (H&B), reported weaker-than-anticipated results in the
fiscal year 2021 (ending Sept. 30, 2021) and early 2022, a trend we
expect to continue through 2022 due to current high inflationary
pressures and lower customer spending.
The macroeconomic environment is affecting H&B's trading
performance. The company's performance in fiscal 2021 was weaker
than we projected and the top-line performance in fiscal 2022 is
expected to remain subdued because of pressures on customer
spending in the U.K. and continental Europe. S&P also expects high
cost inflation to result in some squeeze of operating margins and,
given continuous investment to improve efficiency of the digital
sales channel, in negative FOCF after leases during 2022.
H&B's S&P Global Ratings-adjusted leverage is expected to remain
elevated at approximately 7.0x at year-end 2022, and EBITDAR
interest coverage (EBITDAR) over leases and interest expenses)
below 1.5x. Its current capital structure includes a senior secured
credit facility comprising GBP825 million of term loan B (TLB)
maturing in August 2024 and a GBP75 million RCF maturing in August
2023, which the group is currently using to meet its liquidity
needs.
Liquidity risk has increased due to higher refinancing risk and
tighter covenant headroom. S&P's assess H&B's liquidity as weak,
given the tight headroom under the covenant of its RCF, the low
levels of cash on the balance sheet (approximately GBP25 million as
of March 2022), and the limited availability left under the RCF. In
addition, the RCF matures in August 2023 and the company needs to
refinance it over the next few months during this challenging time
for its operations, against the backdrop of tough macroeconomic and
credit market conditions.
Although the company itself is not directly affected by E.U. and
U.K. sanctions relating to the Ukraine-Russia conflict, some of the
ultimate beneficiary owners of L1R HB Finance Ltd.'s parent,
LetterOne, were placed under sanction by the EU and the U.K. in
March 2022. L1R HB Finance Ltd. has confirmed that it is not
directly subject to sanctions; however, two of its ultimate
beneficial owners (albeit holding jointly less than 50% of total
shares), Mikhail Fridman and Pyotr Aven, are currently designated
persons on EU and U.K. sanctions lists. The company has confirmed
that this has not impacted the group's operations so far, but it is
expected to add a certain level of complexity to its business
relationship, as well as uncertainty about LetterOne's long-term
strategy as regards its investments.
The negative outlook reflects the risk of a further downgrade if
H&B is not able to recover its operating performance, restore
positive FOCF after leases and address its fragile liquidity
position and its debt maturity schedule. In our revised forecast,
we project that the retail sector will continue to suffer in 2022
from increasing inflationary pressures that will likely hinder
H&B's profitability and cash flow generation. Under these
assumptions, S&P expects that the company's S&P Global
Ratings-adjusted debt to EBITDA will remain above 6.5x and its
reported FOCF after lease payments will remain negative during
2022.
Downside scenario
S&P could lower the rating if:
-- H&B's financial leverage further increases causing a covenant
breach under the covenants of its RCF;
-- H&B's liquidity position were to deteriorate significantly due
to difficulties in timely refinancing of its RCF due in August 2023
or its liquidity position tightening, due to operating weakness;
or
-- The company undertook a buyback of its debt below its par value
or a balance-sheet restructuring.
Upside scenario
S&P said, "We could raise our rating on H&B if the group were to
address its liquidity position and successfully refinance its
existing capital structure in a timely manner. An upgrade would
also require the company to outperform our base-case forecast, with
earnings growth causing S&P Global Ratings-adjusted debt to EBITDA
to fall below 6.0x, EBITDAR interest coverage to increase
comfortably above 1.5x, and the company report meaningfully
positive FOCF after lease payments."
ESG credit indicators: E-2, S-2, G-3
MISSGUIDED: On Verge of Collapse Following Winding-Up Petition
--------------------------------------------------------------
Oliver Gill at The Telegraph reports that Missguided is lining up
administrators as the fast-fashion firm teeters on the brink of
collapse after being issued with a winding-up petition by
creditors.
According to The Telegraph, police were reportedly called to the
company's head office in Manchester after angry suppliers turned up
after being left millions of pounds out of pocket.
A winding up petition was issued against Missguided on May 10 by
Manchester-based supplier JSK Fashions, The Telegraph relays,
citing court filings.
Alteri Investors, which saved Missguided from collapse last autumn,
has been scrambling to offload the company over the last few weeks,
with JD Sports and Chinese -backed rival Shein linked with making a
bid, The Telegraph recounts.
But industry insiders have repeatedly warned that suitors are more
likely to wait and buy the business out of bankruptcy, The
Telegraph states.
Insolvency specialists Teneo are understood to be preparing to step
in as administrators if the business cannot be sold solvently, The
Telegraph notes.
Ian Gray, Missguided's chairman, has insisted that he was
optimistic about the prospect of selling the business, The
Telegraph discloses.
Missguided was a pioneer in capitalising on celebrity endorsements
over social media to promote its clothes.
According to The Telegraph, a spokesperson for Missguided said:
"Missguided is aware of the action being taken by certain creditors
of the company in recent days, and is working urgently to address
this. A process to identify a buyer with the required resources
and platform for the business commenced in April and we expect to
provide an update on progress of that process in the near future."
RRE 12: S&P Assigns Prelim. BB- (sf) Rating on Class D Notes
------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to RRE
12 Loan Management DAC's class A-1 to D notes. At closing, the
issuer will also issue unrated subordinated notes (see list
above).
This is a European cash flow CLO transaction, securitizing a
portfolio of primarily senior secured leveraged loans and bonds.
The transaction is managed by Redding Ridge Asset Management (UK)
LLP.
The preliminary ratings assigned to the notes reflect our
assessment of:
-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.
-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.
-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.
-- The transaction's legal structure, which S&P expects to be
bankruptcy remote.
-- The transaction's counterparty risks, which S&P expects to be
in line with its counterparty rating framework.
Under the transaction documents, the rated notes will pay quarterly
interest unless there is a frequency switch event. Following this,
the notes will permanently switch to semiannual payment.
The portfolio's reinvestment period will end approximately five
years after closing, and the portfolio's maximum average maturity
date is nine years after closing.
Portfolio Benchmarks
CURRENT
S&P Global Ratings weighted-average rating factor 2948.07
Default rate dispersion 403.11
Weighted-average life (years) 5.28
Obligor diversity measure 98.55
Industry diversity measure 20.25
Regional diversity measure 1.21
Transaction Key Metrics
CURRENT
Total par amount (mil. EUR) 450
Defaulted assets (mil. EUR) 0
Number of performing obligors 116
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 2.67
'AAA' covenanted weighted-average recovery (%) 36.33
Covenanted weighted-average spread (%) 3.80
Reference weighted-average coupon (%) 4.75
S&P said, "The portfolio is well-diversified, primarily comprising
broadly syndicated speculative-grade senior secured term loans and
senior secured bonds. Therefore, we have conducted our credit and
cash flow analysis by applying our criteria for corporate cash flow
CDOs. As such, we have not applied any additional scenario and
sensitivity analysis when assigning preliminary ratings to any
classes of notes in this transaction.
"In our cash flow analysis, we used the EUR450 million target par
amount, the covenanted weighted-average spread (3.80%), the
reference weighted-average coupon (4.75%), and the covenanted
weighted-average recovery rates at all rating levels as indicated
by the collateral manager. We applied various cash flow stress
scenarios, using four different default patterns, in conjunction
with different interest rate stress scenarios for each liability
rating category.
"Our credit and cash flow analysis indicates that the available
credit enhancement for the class A-2A, A-2B, B, and C-1 notes could
withstand stresses commensurate with higher preliminary ratings
than those we have assigned. However, as the CLO will be in its
reinvestment phase starting from closing, during which the
transaction's credit risk profile could deteriorate, we have capped
our preliminary ratings assigned to the notes.
"We expect the transaction's documented counterparty replacement
and remedy mechanisms to adequately mitigate its exposure to
counterparty risk under our current counterparty criteria.
"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned preliminary ratings, as the exposure to
individual sovereigns does not exceed the diversification
thresholds outlined in our criteria.
"We expect the transaction's legal structure to be bankruptcy
remote, in line with our legal criteria.
"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our assigned
preliminary ratings are commensurate with the available credit
enhancement for the class A-1, A-2A, A-2B, B, C-1, C-2, and D
notes.
"In addition to our standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, we have also
included the sensitivity of the ratings on the class A-1 to D notes
to five of the 10 hypothetical scenarios we looked at in our
publication, "How Credit Distress Due To COVID-19 Could Affect
European CLO Ratings," published on April 2, 2020."
Environmental, social, and governance (ESG) factors
S&P said, "We regard the exposure to ESG credit factors in the
transaction as being broadly in line with our benchmark for the
sector. Primarily due to the diversity of the assets within CLOs,
the exposure to environmental credit factors is viewed as below
average, social credit factors are below average, and governance
credit factors are average. For this transaction, the documents
prohibit assets from being related to the following industries:
controversial weapons, nuclear weapons, thermal coal, speculative
extraction of oil and gas, tobacco/tobacco related products, opioid
manufacturing or distribution, hazardous chemicals, pornography or
prostitution, non-sustainable palm oil production, tar sands
extraction, or speculative transactions of soft commodities.
Accordingly, since the exclusion of assets from these industries
does not result in material differences between the transaction and
our ESG benchmark for the sector, no specific adjustments have been
made in our rating analysis to account for any ESG-related risks or
opportunities."
Ratings Assigned
CLASS PRELIM PRELIM SUB(%) INTEREST RATE§
RATING* AMOUNT
(MIL. EUR)
A-1 AAA (sf) 268.90 40.24 Three/six-month EURIBOR
plus 1.15%
A-2A AA (sf) 32.20 29.76 Three/six-month EURIBOR
plus 2.35%
A-2B AA (sf) 15.00 29.76 3.45%
B A (sf) 33.30 22.36 Three/six-month EURIBOR
plus 3.50%
C-1 BBB (sf) 24.30 16.96 Three/six-month EURIBOR
plus 4.23%
C-2 BBB (sf) 7.20 15.36 Three/six-month EURIBOR
plus 4.33%
D BB- (sf) 21.20 10.64 Three/six-month EURIBOR
plus 7.90%
Sub notes NR 49.90 N/A N/A
*The preliminary ratings assigned to the class A-1, A-2A, and A-2B
notes address timely interest and ultimate principal payments. The
preliminary ratings assigned to the class B, C-1, C-2, and D notes
address ultimate interest and principal payments.
§The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event occurs.
NR--Not rated.
N/A--Not applicable.
EURIBOR--Euro Interbank Offered Rate.
TWENTY1 CONSTRUCTION: Owes Unsecured Creditors GBP12.5 Million
--------------------------------------------------------------
Dave Rogers at Building reports that one contractor missing nearly
GBP450,000 in retentions in wake of Twenty1 Construction
implosion.
According to Building, one firm is owed more than GBP450,000 in
retentions following the collapse of Hertfordshire fit-out
contractor Twenty1 Construction which sank into administration in
March.
The GBP67 million-turnover firm, which had 64 staff, appointed
Grant Thornton as administrators after a decade of trading,
Building discloses.
In an update, Grant Thornton said the company ran into problems
with the first wave of covid-19 in spring 2020 as jobs were stopped
before being felled by the emergence of the Omicron variant at the
end of last year which blunted its recovery from loss of work
caused by the initial pandemic, Building relates.
"Furthermore, there were certain debtors of the companies [sister
firms Twenty1 Interiors Ltd and Twenty1 Group Holdings also went
into administration] that were becoming increasingly challenging to
recover monies from."
Unsecured creditors of Twenty1 Construction are owed GBP12.5
million while the two other firms owe unsecured creditors a further
GBP750,000, Building discloses. In the update, one firm is listed
as being owed GBP446,000 in retentions by Twenty1 Construction,
according to Building.
Grant Thornton admitted there will be little chance for the
hundreds of firms owed money of getting a penny back, Building
notes.
Preferential creditors, which include HMRC, are owed more than
GBP10 million while staff are missing a further GBP178,000,
according to Building. Secured creditor HSBC has been repaid its
missing GBP1.1 million, Building states.
In the update, Grant Thornton said 17 firms were approached about
taking over the business before it collapsed with seven information
memoranda sent out to would-be saviours, Building relays.
"Unfortunately, the marketing process did not generate enough
interest to result in an offer," Building quotes the update as
saying.
===============
X X X X X X X X
===============
[*] BOOK REVIEW: Bankruptcy and Secured Lending in Cyberspace
-------------------------------------------------------------
Author: Warren E. Agin
Publisher: Bowne Publishing Co.
List price: $225.00
Review by Gail Owens Hoelscher
Red Hat Inc. finds itself with a high of 151 5/8 and low of 20 over
the last 12 months! Microstrategy Inc. has roller-coasted from a
high of 333 to a low of 7 over the same period! Just when the IPO
boom is imploding and high-technology companies are running out of
cash, Warren Agin comes out with a guide to the legal issues of the
cyberage.
The word "cyberspace" did not appear in the Merriam-Webster
Dictionary until 1986, defined as "the on-line world of computer
networks." The word "Internet" showed up that year as well, as "an
electronic communications network that connects computer networks
and organizational computer facilities around the world."
Cyberspace has been leading a kaleidoscopic parade ever since, with
the legal profession striding smartly in rhythm. There is no
definition for the word "cyberassets" in the current
Merriam-Webster. Fortunately, Bankruptcy and Secured Lending in
Cyberspace tells us what cyberassets are and lays out in meticulous
detail how to address them, not only for troubled technology
companies, but for all companies with websites and domain names.
Cyberassets are primarily websites and domain names, but also
include technology contracts and licenses. There are four types of
assets embodied in a website: content, hardware, the Internet
connection, and software. The website's content is its fundamental
asset and may include databases, text, pictures, and video and
sound clips. The value of a website depends largely on the traffic
it generates.
A domain name provides the mechanism to reach the information
provided by a company on its website, or find the products or
services the company is selling over the Internet. Examples are
Amazon.com, bankrupt.com, and "swiggartagin.com." Determining the
value of a domain name is comparable to valuing trademark rights.
Domain names can come at a high price! Compaq Computer Corp. paid
Alta Vista Technology Inc. more than $3 million for "Altavista.com"
when it developed its AltaVista search engine.
The subject matter covered in this book falls into three groups:
the Internet's effect on the practice of bankruptcy law; the ways
substantive bankruptcy law handles the impact of cyberspace on
basic concepts and procedures; and issues related to cyberassets as
secured lending collateral.
The book includes point-by-point treatment of the effect of
cyberassets on venue and jurisdiction in bankruptcy proceedings;
electronic filing and access to official records and pleadings in
bankruptcy cases; using the Internet for communications and
noticing in bankruptcy cases; administration of bankruptcy estates
with cyberassets; selling bankruptcy estate assets over the
Internet; trading in bankruptcy claims over the Internet; and
technology contracts and licenses under the bankruptcy codes. The
chapters on secured lending detail technology escrow agreements for
cyberassets; obtaining and perfecting security interests for
cyberassets; enforcing rights against collateral for cyberassets;
and bankruptcy concerns for the secured lender with regard to
cyberassets.
The book concludes with chapters on Y2K and bankruptcy; revisions
in the Uniform Commercial Code in the electronic age; and a
compendium of bankruptcy and secured lending resources on the
Internet. The appendix consists of a comprehensive set of forms for
cyberspace-related bankruptcy issues and cyberasset lending
transactions. The forms include bankruptcy orders authorizing a
domain name sale; forms for electronic filing of documents;
bankruptcy motions related to domain names; and security agreements
for Web sites.
Bankruptcy and Secured Lending in Cyberspace is a well-written,
succinct, and comprehensive reference for lending against
cyberassets and treating cyberassets in bankruptcy cases.
[*] Sylwia Maria Bea Named Norton Rose EMEA Insolvency Co-Head
--------------------------------------------------------------
Global law firm Norton Rose Fulbright has appointed Dr. Sylwia
Maria Bea as its new EMEA co-head of financial restructuring and
insolvency.
Ms. Bea, a restructuring and insolvency partner based in Norton
Rose Fulbright's Frankfurt office, will join current EMEA co-head
James Stonebridge -- who is based in London -- in overseeing the
firm's practice in Europe, the Middle East and Asia, working
closely with the other regions across the global firm.
Ms. Bea has significant experience of advising the management,
shareholders, insolvency administrators, investors and creditors of
distressed companies on insolvency proceedings, as well as on in
and out-of-court restructuring measures, including the distressed
sale of Dradura Group to FMC and a number of StaRUG-proceedings.
Ms. Bea said: "I am thrilled to have been given this opportunity to
co-lead Norton Rose Fulbright's EMEA financial restructuring and
insolvency practice. It has been a busy period for our practice
across the region and in these uncertain times we are anticipating
things to be even busier. I look forward to working with the team
to further support our clients in the coming months and years."
Madhavi Gosavi, head of banking and finance, EMEA, at Norton Rose
Fulbright, said: "Sylwia has been a dedicated member of our
financial, restructuring and insolvency team and has worked on a
number of huge global projects. I am confident Sylwia's expertise
will help us further develop our offering to our clients and take
our strong, existing EMEA practice to even greater heights."
Ms. Bea is also the co-founder and member of the management board
of "Distressed Ladies - Women in Restructuring e.V.", an
established network of women in the insolvency and restructuring
market, which supports members with their professional development
and seeks to promote young talent.
Norton Rose Fulbright was named last year as one of the most
renowned firms for restructuring by German business magazine
Wirtschaftswoche, with Sylwia listed as a highly recommended
lawyer.
The firm's global financial restructuring and insolvency team acts
for a full range of clients, delivering worldwide services in all
key industry sectors. The firm's client portfolio includes
lenders, private equity and distressed debt funds, hedge funds,
bondholders, public and private corporations, insolvency
administrators, debtors, liquidators, examiners, office-holders,
secured and unsecured creditors, committees, management and other
relevant stakeholders.
*********
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
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.
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