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

                          E U R O P E

          Tuesday, June 28, 2022, Vol. 23, No. 122

                           Headlines



A Z E R B A I J A N

MUGANBANK OJSC: S&P Affirms B-/B ICRs on Stabilization of Franchise


F R A N C E

ANDROMEDA INVESTISSEMENTS: Fitch Affirms 'B' IDR, Outlook Stable
ZF INVEST: S&P Downgrades ICR to 'B-', Outlook Stable


I T A L Y

BPER BANCA: Moody's Ups Issuer & Sr. Unsecured Debt Ratings to Ba1


R U S S I A

[*] RUSSIA: Rejects Default Claims, Says Payments Executed


S W E D E N

ARISE AB: Egan-Jones Hikes Senior Unsecured Ratings to BB


U N I T E D   K I N G D O M

BELLIS FINCO: Moody's Lowers CFR to B1, Outlook Remains Stable
BULB: Centrica Drops Out of Bidding Race
DAWNFRESH SEAFOODS: Thistle Seafoods Acquires Uddingston Facility
GREENSILL: Credit Suisse Inks Debt Payment Deal with Bluestone
ICICI BANK: Moody's Upgrades Rating on Subordinated Bond to Ba1

LIBERTY GLOBAL: Egan-Jones Retains BB Senior Unsecured Ratings
LOVE LANE: To Stay Open Following Pre-Pack Administration
MATALAN RETAIL: Says Survival Hinges on Debt Refinancing
PATISSERIE: Administrators Settle Audit Suit with Grant Thornton

                           - - - - -


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A Z E R B A I J A N
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MUGANBANK OJSC: S&P Affirms B-/B ICRs on Stabilization of Franchise
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S&P Global Ratings affirmed its 'B-/B' long- and short-term issuer
credit ratings on Muganbank OJSC. The outlook is stable.

S&P said, "The affirmation reflects our view that Muganbank's
strategic transformation will contribute to the stability of its
domestic franchise.Over the past year, the bank has optimized its
organizational structure, hired key managers, strengthened its
risk-management functions, and updated its processes and
procedures. The current strategy envisions a move to a
client-oriented business model, with a focus on credit and
noncredit products to small and midsized enterprises and mortgage
loans to individuals, which will be financed predominantly by
retail deposits and funding from government-related entities (GREs)
and international financing institutions under government-support
programs. Nevertheless, new business generation and the stability
of Muganbank's customer base depends on the reputation of its
controlling shareholder, Azeri businessman Mr. Elmir Mehdiyev.
Muganbank is his main strategic asset.

"We expect further improvement of asset quality, despite high
concentration risks. Stage 3 loans could reduce to 12%-14% in the
next two years according to International Financial Reporting
Standards, thanks to recoveries, write-offs, and the better asset
quality of new loans. The bank's Stage 3 loans reduced to 15.8% at
year-end 2021 from 39% three years earlier. Although Muganbank's
Stage 3 loans are still materially higher than those of its rated
domestic peers--Kapital Bank and PASHA Bank--its asset quality
compares adequately to that of peers in Kazakhstan, Uzbekistan, and
Greece. Although concentration risks are material, with top 20
loans accounting for 37% of total loans and 5x of total adjusted
capital (TAC), we do not foresee any material deterioration of its
performing loans in 2022. Stage 2 loans accounted for 12% of total
loans as of year-end 2021, which is in line with that of
international peers.

"We expect Muganbank's capitalization will remain very weak in
2022-2023.The bank posted a small profit in 2021 and in the first
five months of 2022, following operational losses in 2019 and 2020.
While profitability is slowly starting to turn around, we expect
the bank's risk-adjusted capital (RAC) ratio will remain below 3%
in 2022-2023. With a planned Azerbaijani manat (AZN)5 million
shareholder Tier 1 capital injection in 2022, but historically
large financial losses, we expect that the bank's RAC ratio will
only gradually improve based on its earnings accretion capacity.

"We expect that Muganbank will maintain a stable funding and
liquidity position in 2022-2023.Under our base case, we assume the
bank will maintain an adequate liquidity cushion and is unlikely to
experience material customer deposit outflows in the next 12
months, based on its good track record of customer deposit growth
over the past two years and increasing funding diversification.
Retail deposit funding is complemented by growing funding from
financial institutions and GREs under government-support programs,
central bank support, and corporate deposits.

"While Muganbank's stand-alone credit profile remains weak, we
consider that it does not meet our definition for a 'CCC+' rating
under our criteria. Therefore, we rate the bank at 'B-/B'.

"The stable outlook on Muganbank reflects our expectations that the
bank will maintain a stable financial profile and adequate
liquidity while reducing its legacy problems loans over the next 12
months."

Downside scenario

S&P said, "We could lower the rating over the next 12 months if
Muganbank's current strategy does not result in sustainable and
profitable growth for its franchise, or if the bank's asset quality
starts weakening, reversing the improving trend of the past three
years. Although not in our base-case scenario, we would also view
any sign of weakening liquidity as a trigger for a negative rating
action."

Upside scenario

A positive rating action is unlikely over the next 12 months, since
it would require the bank to materially strengthen its
capitalization, profitability, and asset quality.

ESG credit indicators: E-2, S-2, G-4




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F R A N C E
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ANDROMEDA INVESTISSEMENTS: Fitch Affirms 'B' IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Andromeda Investissements SAS's
(Andromeda) Long-Term Issuer Default Rating (IDR) at 'B' with a
Stable Outlook. Fitch also affirmed Andromeda's senior secured debt
package at 'B+', with a Recovery Rating of 'RR3'.

Andromeda is an entity incorporated by funds advised by CVC to
control French insurance broker April SAS.

The affirmation follows a strong 2021 performance of April's
insurance brokerage core business. Increases in brokerage margins
followed cost efficiencies and a streamlining of group entities.
Leverage as a share of EBITDA fell below Fitch's sensitivity for an
upgrade to 'B+', while gross funds from operations (FFO) leverage
remained high at 8.0x amid other cash costs before FFO. Fitch
expects gross FFO leverage to improve over the next 24 months as
the group structure stabilises from its transition to a pure
brokerage business. However, Fitch believes sizeable M&A is a
possibility, which will slow deleveraging.

KEY RATING DRIVERS

Non-Core Disposals Completed: April recently completed the planned
disposals of non-core assets. These non-core companies mainly
involved insurance entities and foreign subsidiaries. Since April's
LBO in 2019, the group focused on stabilising its ownership
structure and achieving a pure brokerage business profile.
Andromeda bought out April minorities in 2020, in turn delisting
the company from the Paris Stock Exchange in May and in 2021
returned EUR320 million to shareholders. This year will be the
first full financial year of trading as a pure insurance broker.

Slower Deleveraging: Andromeda's EBITDA growth in 2021, led by cost
efficiencies, sharply reduced total debt to 4.8x EBITDA, from 6.0x
in 2020, below Fitch's upgrade threshold to 'B+'. However,
non-trade working capital and other cash items before FFO, mostly
related to changes in the group's corporate scope, kept FFO gross
leverage unchanged at 8.0x in 2021. Fitch expects this metric to
decline towards Fitch's upgrade sensitivity over the next two
financial years, barring major debt-funded acquisitions. Debt
coverage ratios remain broadly within Fitch's thresholds for a 'B'
rating.

Stable Commission Income Forecast: April's brokerage business has
grown consistently since its 2019 LBO. Its gross margin, a proxy
for net commissions flows, saw CAGR of about 7% for 2018-2021.
Fitch forecasts broadly stable commission income. Pricing power
will be offset by a lack of growth in insurers' profitability in
all of April's divisions over the next two years. Additionally,
declining asset valuations in real estate may slow the health and
protection division's earnings. This is April's main business and
intermediates healthcare and mortgage policies. International
insurance and property and casualty (P&C), both focused on specific
niches, are also forecast to be stable.

Stable EBITDA Margin: Cost-reduction initiatives lifted
Fitch-adjusted EBITDA margin to around 21% for 2021, up from 18% in
2020. Digitalisation also plays a key role in profitability
improvements. Fitch estimates that about 15% of the new business
intake is fully digitalised. Fitch expects this share to grow
further, improving the underlying profitability of P&C in
particular. However, Fitch expects labour cost inflation, mainly in
France, to offset these technical improvements. Overall, Fitch
expects Fitch-adjusted EBITDA margin to remain around 21% through
the cycle.

Healthy Free Cash Flow (FCF) Generation: Fitch expects Andromeda's
FCF generation to remain positive and stable through the cycle.
Fitch expects cash from working capital to be neutral on average.
Fitch has raised Fitch's capex expectations to around EUR22 million
per year from EUR17 million, due to investment in digital. This is
close to 4% of revenue, versus Fitch's previous expectations of
2.8%. Fitch forecasts higher cash interest due to rising base
rates, and set Fitch's cash tax rate at around 37% of EBIT.
Overall, FCF margins are expected to average about 5% for
2022-2025.

Financial Policy to Evolve: Andromeda's private equity
shareholder's investment strategy is to dispose non-core entities,
which it has completed, and to increase scale through M&A.
Satisfactory disposal proceeds and cash from excess technical
reserves drove shareholders distributions that nearly equalled the
equity amounts invested in Andromeda's 2019 LBO. Fitch does not
exclude major debt-financed acquisitions in the near future, which
based on the high multiples paid by peers in this sector, may
affect Andromeda's deleveraging path.

French Insurance Market Stable: The French insurance market is the
second-largest in Europe, after the UK's. It is competitive, both
in life and non-life. It is dominated by a few primarily domestic
insurers. Brokers have a relevant role in intermediating risk;
however, their role it is not as prominent as in other markets such
as the UK and the Netherlands. The bancassurance channel remains
strong, particularly for credit protection. Fitch expects insurers'
technical profitability to remain broadly stable.

Slow Improvements from New Regulations: Legislative innovations to
allow for clients to easily substitute borrowers' insurers during
the life of the policy, such as the Lemoine Law, will eventually
make switching easier. This will benefit credit protection brokers,
such as April. However, these changes may take time to deliver
significant results. Fitch believes that the banking channel will
retain a stronger position in the distribution of these products in
the medium term.

DERIVATION SUMMARY

Andromeda's ratings reflect its leadership in select niches of the
insurance brokerage market, its high leverage and corporate
reorganisation. April intermediates risks in the P&C, health and,
mainly, mortgage insurance in France, where insurers use the
brokerage channel, among others such as bancassurance, to
underwrite risks.

In comparison with DIOT - SIACI TopCo SAS (Diot - Siaci, B/Stable)
Andromeda is slightly smaller in size but is more diversified and
has a more consumer-oriented offering, versus its peer's
corporate-oriented B2B model. Compared with the British-based
Ardonagh Midco 2 plc (Ardonagh, B-/Positive) April is smaller in
size and has slightly lower execution risk from disposals than
Ardonagh's leveraged acquisitions. Additionally, their distribution
models are different with Ardonagh being retail-focused and April's
B2B2C model targeting retail clients through smaller local
independent brokers.

Both Diot -Siaci and Ardonagh recently implemented aggressive
acquisition strategies that kept their FFO gross leverage high. In
the case of April, high FFO gross leverage is the consequence of a
loss of dividends from insurance subsidiaries it has disposed of
and before FFO non-trade working-capital items. April's total
debt/EBITDA is much lower than its peers'.

KEY ASSUMPTIONS

-- CAGR 2.2% in gross margin for 2022-2025

-- EBITDA margin to stabilise around 21% by 2025;

-- Neutral cash from working-capital changes;

-- Capex at around 3.8% of revenue to 2025;

-- FCF margin on average at around 5% for 2022-2025;

-- Bolt-on acquisition valuations at 10x EBITDA.

KEY RECOVERY RATING ASSUMPTIONS

Fitch assesses that April will be a going concern in bankruptcy as
most of its value lies in its brand, client portfolio and its
infrastructure for managing relationships with retail brokers,
final customers and insurers. Consequently, Fitch uses the
going-concern approach for Fitch's recovery analysis.

Fitch estimates a going-concern EBITDA of around EUR70 million,
down from 2019 brokerage EBITDA (pro-forma for disposals) in excess
of EUR100 million, as this level of EBITDA would reflect a scenario
of unfavorable regulation changes also affecting the technical
profitability of insurers underwriting risks intermediated by
April, in turn affecting April's gross margin growth, pricing power
and profitability.

Fitch applies a 5.5x multiple to reflect April's leading position
in the French corporate brokerage market and strong FCF generation.
Fitch no longer factors in any supplementary value from insurance
subsidiaries due to completed disposals of all its insurance
subsidiaries during 2021.

Our debt waterfall includes a revolving credit facility (RCF) of
EUR100 million and has been updated for Andromeda's term loan B
add-on financing. Fitch factors in a 10% charge for administrative
claims, resulting in a Recovery Rating of 'RR3' with 53%
recoveries.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- FFO gross leverage sustainably below 6.0x or total debt with
    equity credit/operating EBITDA sustainably below 5.5x, in
    absence of major debt-funded acquisitions;

-- FFO interest coverage trending above 3.0x or operating
    EBITDA/interest paid trending to or above 3.5x;

-- Successful expansion of commission volumes with increased
    adoption of a digitalised model;

-- FCF sustainably over 5% of revenue.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- FFO gross leverage remaining above 7.5x or total debt with
    equity credit/operating EBITDA remaining above 7.0x;

-- FFO interest coverage below 2.0x or operating EBITDA/interest
    paid below 2.5x through the cycle;

-- FCF below 2% of revenue through the cycle.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Satisfactory Liquidity: Limited capex and working-capital
requirements, together with cash on balance sheet in excess of
EUR300 million excluding term deposits, provide for satisfactory
liquidity. The RCF full availability is an extra buffer. However,
Fitch believes that M&A and dividend payments could reduce these
amounts during 2022. Moreover, insurance brokers' operating cash
requirements are usually high due to the collection and
compensation of insurance premia.

ESG CONSIDERATIONS

Andromeda has an ESG Relevance Score of '4' for governance
structure due to the recent corporate and shareholding
reorganisation and to the evolving corporate structure. This has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors. Fitch may consider a
score of '3' for this relevance factor after having reviewed 2022
financials, which will reflect the first full financial year of
April trading as a pure insurance broker.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

   DEBT                 RATING                RECOVERY   PRIOR
   ----                 ------                --------   -----

Andromeda            LT IDR    B     Affirmed            B
Investissements SAS

   senior secured    LT        B+    Affirmed    RR3     B+


ZF INVEST: S&P Downgrades ICR to 'B-', Outlook Stable
-----------------------------------------------------
S&P Global Ratings lowered its long-term ratings on ZF Invest
(Prosol) and its term-loan B (TLB) to 'B-' from 'B'.

S&P said, "The stable outlook reflects our view that ZF Invest's
leverage will be 11x-13x (or 10x-12x excluding convertibles) in
FY2022 and close to 8.0x in FY2023, while EBITDA margins recover to
9.0%-10% in FY2023 from 6.0%-7.0% in FY2022; we anticipate that
FOCF will be negative in FY2022 and only slightly positive in
FY2023, constrained by high interest expenses and ambitious capex,
but that the company will maintain adequate liquidity."

The challenging operating environment, cost inflation, and pricing
have materially weakened profitability and cash-flow generation in
FY2022.

S&P said, "We expect ZF Invest's S&P Global Ratings-adjusted EBITDA
will drop to EUR160 million-EUR180 million in FY2022 from EUR244
million in FY2021, causing a 4x spike in adjusted leverage compared
with our previous base case. This is because of the tough
conditions of the French fresh food retail market, characterized by
the normalization of demand after two years of exceptional growth
spurred by COVID-19, combined with surging inflation of the
cost-base. In the first half of the fiscal year (Oct. 1, 2021, to
March 31, 2022) Prosol's revenue increased by about 3.0%, thanks to
store openings, but Grand Frais' like-for-like sales declined by
10%. In the same period, costs increased about 9.0%, due to a rise
in the cost of goods sold (+7%), personnel costs (+10%), and other
expenses (+19%) mainly linked to the new advertising campaigns.
Prosol passed only a portion of the cost increase to customers,
taking a hit on its margins, with the objective of attracting new
clients. Although this resulted in Grand Frais' market share
increasing by 30 basis points (bps) to 4.40%, according to Kantar,
in the last 12 months, it also contributed to a sharp drop in
profitability, with the S&P Global Ratings-adjusted EBITDA margin
dropping to 5.7% in the six months to March 31, 2022, from 10.7%
the previous fiscal year. Although we expect margins will
progressively strengthen in the second half of the fiscal year, the
most important period for Prosol, since it adjusts its pricing and
capitalizes on its expanding market share, we believe FY2022
adjusted EBITDA will remain 25% lower than in our previous base
case. This will cause adjusted leverage to be about 4x above our
negative rating trigger and materially hamper FOCF generation.

"Very high leverage stemming from aggressive financial policy
leaves limited financial flexibility to deal with the difficult
operating environment. We expect S&P Global Ratings-adjusted
leverage will reach 11x-13x in FY2022 (or 10x-12x excluding
shareholders' convertibles), from the already high 7.9x (or 7.1x)
in FY2021. Although we still expect adjusted leverage will decline
toward 6.0x-7.0x (or 5.0x-6.0x excluding the convertibles) by
FY2024, the large amount of debt leaves limited financial
flexibility to absorb additional short-term setbacks in an
environment characterized by operational challenges, high
volatility in demand, and rising interest rates. We note that, in
the six months ended March 31, 2022, ZF Invest's net cash outflow
totaled about EUR100 million, an amount that we consider
unsustainable, given the company's current liquidity resources of
about EUR200 million, including cash on the balance sheet and the
undrawn portion of its revolving credit facility (RCF). That said,
we regard as positive that the company is raising an additional
4.5-year EUR107 million amortizing loan to strengthen its liquidity
buffer, and could also cut or delay some of its capex, which we
forecast at about EUR150 million in FY2022.

"Lower EBITDA, high interest expenses, and an ambitious investment
plan will constrain FOCF generation. We expect the group's subdued
EBITDA, EUR60 million-EUR70 million of annual cash interest
expenses, and significant capex will cause full-year FOCF to drop
to about negative EUR90 million in FY2022, and be only moderately
positive in FY2023, at EUR0 million-EUR20 million. In our forecasts
for FY2022, we project a reversal of the EUR30 million working
capital outflow that occurred in the first half of the year, mainly
due to an increase in value-added tax receivables, and about EUR150
million of yearly capex. Despite the current operational headwinds,
the company intends to continue investing in the expansion of its
store network under all of its banners. These include Grand Frais,
as well as its new and so-far EBITDA-negative Fresh concept in
France, Banco Fresco in Italy, and the e-commerce platform
monmarché.fr. Although we recognize that expansion capex is
increases value and boosts growth, the lack of significant positive
FOCF in the next 18-24 months constrains our ratings. We expect
FOCF generation will turn substantially positive from FY2024, as
EBITDA growth outpaces cash interest payments and capex.

"We still expect solid growth over the medium term, fueled by
geographic and format expansion, and strong brand awareness.
Despite the sharp market decline, we forecast Prosol's revenue will
increase by 5.0%-10.0% in FY2022, and by 12%-17% per year in
FY2023-FY2025. Growth will result from the openings of 30-40 new
stores per year under the company's different formats, as well as
from the digital platform monmarché.fr, targeting urban areas. We
note that, as of March 31, 2022, the group's market share was 4.4%,
about 30 bps higher than in March 2021, as the company's larger
store network translated into higher sales and customers, despite
the market's contraction. In our forecast, we regard as positive
the group's solid track record of growth, with both revenue and
adjusted EBITDA increasing by about 80% over 2017-2021, to EUR2.3
billion and about EUR244 million, respectively. Over the years,
Grand Frais has established a strong brand reputation in France,
which allowed for the quick ramp-up of newly opened stores and
constantly positive like-for-like growth of exisiting ones. As
such, we remain confident about the company's ability to increase
its revenue and EBITDA in the long term, after the market slowdown
that followed the lifting of COVID-19 restrictions. We understand
the group is now progressively raising prices to reflect the
increase in the cost base, which should help reverse the decline in
EBITDA margins but could weigh on volumes over the short term.

"The stable outlook reflects our view that ZF Invest's leverage
will be 11x-13x (or 10x-12x excluding convertibles) in FY2022 and
close to 8.0x in FY2023, while EBITDA margins recover to 9.0%-10%
in FY2023 from 6.0%-7.0% in FY2022. We anticipate that FOCF will be
negative in FY2022 and only slightly positive in FY2023,
constrained by high interest expenses and ambitious capex, but that
the company will maintain adequate liquidity.

"We could lower the rating if the group is unable to execute its
growth strategy or its operating performance remained subdued,
leading to structurally weaker EBITDA, such that the capital
structure becomes unsustainable. We could also lower the rating if
cash-flow generation is significantly weaker than expected, putting
the company's liquidity at risk or eroding covenant headroom.

"We could raise the ratings if, thanks to stronger-than-expected
EBITDA and FOCF generation, ZF Invest deleveraged such that
adjusted debt to EBITDA falls sustainably below 8.0x (or 7.0x
excluding the shareholders' convertibles) and FOCF turns
substantially positive."

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




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I T A L Y
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BPER BANCA: Moody's Ups Issuer & Sr. Unsecured Debt Ratings to Ba1
------------------------------------------------------------------
Moody's Investors Service upgraded by one notch the long and
short-term deposit ratings of BPER Banca S.p.A. to Baa2/Prime-2
from Baa3/Prime-3 respectively and the long-term Counterparty Risk
Ratings (CRR) to Baa1 from Baa2. BPER's long-term issuer and senior
unsecured debt ratings were upgraded by two notches to Ba1 from Ba3
as well as the senior unsecured MTN program rating to (P)Ba1 from
(P)Ba3.

The subordinated debt and program ratings of BPER were also
upgraded to Ba2 from Ba3 and to (P)Ba2 from (P)Ba3 respectively.
The standalone Baseline Credit Assessment (BCA) and Adjusted BCA of
BPER were also upgraded to ba1 from ba2.

The bank's long and short-term Counterparty Risk (CR) Assessments
of Baa2(cr)/Prime-2(cr) respectively and the short term CRR of
Prime-2 were affirmed.

Moody's upgraded all the ratings and assessments of Banca Carige
S.p.A. ("Carige") aligning them with the ratings and assessments of
BPER, concluding the review for upgrade initiated on December 28,
2021. This follows the acquisition in June 2022 of around 80% of
Carige's shares capital by BPER and the launch of a mandatory
tender offer on the remaining 20% shares by year-end 2022.

The outlook on the long-term deposit, issuer and senior unsecured
debt ratings of BPER has been changed to stable from positive. The
outlook on Carige's long-term deposit and issuer ratings has been
changed to stable from ratings under review to be in line with the
outlooks of BPER.

RATINGS RATIONALE

Moody's said that the analysis of BPER is now incorporating the
rating agency's forward-looking view of the credit profile of the
larger banking group following the completion of the acquisition of
80% of Carige's capital. At the same time, the progressive
integration of Carige into the group leading up to the anticipated
legal merger of both entities by early 2023 has resulted in the
upgrade and alignment of all ratings and assessments of Carige to
those of BPER.

BPER BCA UPGRADE

The upgrade of BPER's BCA to ba1 from ba2 mainly reflects the
group's improving solvency on the back of significant problem loan
disposals as well as limited impact on capitalization from the
acquisition of Carige.

Problem loans over total loans stood at 4.9% as of March 2022, down
from 19.9% as of December 2017. BPER reported that by year-end 2022
problem loans worth around EUR2.5 billion or close to 60% of its
outstanding ones, including those coming from Carige, will be
disposed of. The bank targets a problem loan ratio of 3.6% by
2025.

The full acquisition of Carige's share capital, which is expected
to be completed by the end of the year, will have a limited impact
on BPER's capital position according to Moody's. To facilitate the
sale to BPER, Carige benefited from a capital injection of EUR530
million under previous ownership.

In the short-term, the transaction will not weigh on BPER's
historically weak profitability because a large part of the
restructuring costs will be covered by the significant amount of
the badwill generated from the acquisition. Furthermore, Moody's
also expects BPER to gradually benefit from synergies following
previous acquisitions (the bank acquired 620 branches from Intesa
Sanpaolo S.p.A. in 2021) and rising interest rates. These synergies
should mitigate an increase in loan loss provisions due to the
deteriorating economic environment induced by the military conflict
in Ukraine but also the impact of inflation on the bank customers'
creditworthiness.

In its governance assessment, Moody's has considered BPER's
long-term growth strategy encompassing acquisition opportunities.
Its established track record of successfully integrating acquired
banks or assets highlights its execution capabilities and mitigates
operational risk stemming from the acquisition of a sizeable bank
like Carige.

RATINGS RATIONALE FOR LONG-TERM RATINGS AND ASSESSMENTS

The upgrade of BPER's BCA to ba1 from ba2 resulted in the upgrade
of its deposit, long-term CRR and subordinate debt ratings by one
notch.

The two-notch upgrade of its long-term issuer and senior unsecured
debt ratings reflects both, the BCA upgrade as well as one notch of
additional rating uplift because of the increased amount of debt
issued by BPER in 2022. These bond issuances, which are required
for the bank to comply with Minimum Requirement for own funds and
Eligible Liabilities (MREL) regulation have increased the level of
protection for senior creditors under Moody's Advanced Loss Given
Failure (LGF) analysis.

The affirmation of BPER's CR Assessment of Baa2(cr)/Prime-2(cr)
reflects the sovereign cap Moody's applies in similar cases. BPER's
CR Assessment is constrained at one notch above Italy's sovereign
debt bond rating (Baa3 stable), as per Moody's Banks Methodology.

Moody's assessment of a low probability of government support for
BPER, even after the integration of Carige, remains unchanged and
results in no uplift for its ratings and assessments.

The upgrade of Carige's ratings and CR Assessment reflects the
alignment to those of BPER.

OUTLOOK

The stable outlook on the banks' long-term deposit, issuer and –
where applicable - senior unsecured debt ratings reflects Moody's
view that the banks' credit profile will remain broadly unchanged
over the next 12-18 months.

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

An upgrade of the banks' deposit and – where applicable - senior
unsecured debt ratings could be driven by a higher BCA. The BCA
could be upgraded if BPER were to report a lower than anticipated
level of problem loans, a stronger profitability and higher
capitalization.

The banks' deposit and – where applicable - senior unsecured debt
ratings could also be upgraded following the issuance of material
amount of bail-in-able debt, which could lead to higher uplift from
the banks' BCA.

Conversely, a downgrade of the BCA could prompt a downgrade of all
of the banks' ratings. This could be triggered by a significant
deterioration in BPER's asset quality and profitability, and
reduced loss absorption capacity.

The banks' long-term issuer and – where applicable - senior
unsecured ratings could also be downgraded if the stock of
bail-in-able debt were to decrease significantly, increasing the
loss given failure for this class of debt.

LIST OF AFFECTED RATINGS

Issuer: BPER Banca S.p.A.

Upgrades:

Long-term Counterparty Risk Ratings, upgraded to Baa1 from Baa2

Long-term Bank Deposits, upgraded to Baa2 from Baa3, outlook
changed to Stable from Positive

Short-term Bank Deposits, upgraded to P-2 from P-3

Long-term Issuer Rating, upgraded to Ba1 from Ba3, outlook changed
to Stable from Positive

Baseline Credit Assessment, upgraded to ba1 from ba2

Adjusted Baseline Credit Assessment, upgraded to ba1 from ba2

Senior Unsecured Regular Bond/Debenture, upgraded to Ba1 from Ba3,
outlook changed to Stable from Positive

Senior Unsecured Medium-Term Note Program, upgraded to (P)Ba1 from
(P)Ba3

Subordinate Regular Bond/Debenture, upgraded to Ba2 from Ba3

Subordinate Medium-Term Note Program, upgraded to (P)Ba2 from
(P)Ba3

Affirmations:

Short-term Counterparty Risk Ratings, affirmed P-2

Long-term Counterparty Risk Assessment, affirmed Baa2(cr)

Short-term Counterparty Risk Assessment, affirmed P-2(cr)

Outlook Action:

Outlook changed to Stable from Positive

Issuer: Banca Carige S.p.A.

Upgrades:

Long-term Counterparty Risk Ratings, upgraded to Baa1 from B3

Short-term Counterparty Risk Ratings, upgraded to P-2 from NP

Long-term Bank Deposits, upgraded to Baa2 from Caa1, outlook
changed to Stable from Ratings under Review

Short-term Bank Deposits, upgraded to P-2 from NP

Long-term Counterparty Risk Assessment, upgraded to Baa2(cr) from
B2(cr)

Short-term Counterparty Risk Assessment, upgraded to P-2(cr) from
NP(cr)

Long-term Issuer Rating, upgraded to Ba1 from Caa2, outlook
changed to Stable from Ratings under Review

Baseline Credit Assessment, upgraded to ba1 from caa1

Adjusted Baseline Credit Assessment, upgraded to ba1 from caa1

Outlook Action:

Outlook change to Stable from Ratings under Review




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

[*] RUSSIA: Rejects Default Claims, Says Payments Executed
----------------------------------------------------------
Reuters reports that Russia rejected claims on June 27 that is had
defaulted on its external debt for the first time in more than a
century, telling investors to go to Western financial agents for
the cash which was sent but bondholders did not receive.

According to Reuters, the White House said on June 27 that Russia
has defaulted on its international bonds for the first time since
the Bolshevik revolution, as sweeping sanctions have effectively
cut the country off from the global financial system.

Until last week, Russia kept on paying on its Eurobonds in foreign
currency as per issue conditions yet its dollar and euro coupon
transfers made in May, ahead of a key U.S. waiver allowing for such
transactions expired, did not reach investors, Reuters relates.

"Statements of a default are absolutely unjustified," Kremlin
spokesperson Dmitry Peskov told a call with reporters on June 27,
pointing to the May forex coupon payment.

"The fact that Euroclear withheld this money and did not bring it
to the recipients is not our problem.  There are absolutely no
grounds to call such situation a default."

On June 27, the finance ministry, as cited by Reuters, said that
"actions of foreign financial intermediaries are beyond of the
Russian finance ministry's control," asking foreign bondholders to
speak directly to those withholding the payments.

"The non-receipt of money by investors did not occur because of
lack of payment but due to the third party actions and which is not
directly spelled out as a default situation by issue
documentation," the ministry added.

As the U.S. waiver expired and the European Union sanctioned the
National Settlement Depository (NSD), the Russian version of
Euroclear and Clearstream western clearing houses, last week Moscow
paid its next coupons due in forex in roubles, Reuters relays.

President Vladimir Putin ordered last week that debt obligations
would be considered fulfilled once a rouble payment equal to the
forex amount due was made, Reuters recounts.  Bondholders would
need to open an account at a Russian bank to receive the payment,
Reuters states.

Moscow would not block the payment's conversion into forex and its
transfer abroad but investors would need to say in writing they
don't have claims against Russia, the ministry has said, Reuters
notes.

The Group of Seven major Western powers banned transactions with
Russia's central bank and froze its assets held in their
jurisdictions, worth around US$300 billion, after Russia launched
what it called special military operation in Ukraine in February,
Reuters relates.

Some western politicians have called to seize the reserves frozen
to rebuild Ukraine -- the idea two high-ranked Russian financial
sources said they believed was behind the announcement of default
and which Moscow considers artificial, according to Reuters.




===========
S W E D E N
===========

ARISE AB: Egan-Jones Hikes Senior Unsecured Ratings to BB
---------------------------------------------------------
Egan-Jones Ratings Company on June 13, 2022, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Arise AB to BB from BB-.

Headquartered in Sweden, Arise AB is an alternative energy
company.




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

BELLIS FINCO: Moody's Lowers CFR to B1, Outlook Remains Stable
--------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Bellis Finco PLC (Bellis or ASDA) to B1 from Ba3.

At the same time, Moody's has downgraded Bellis' probability of
default rating to B1-PD from Ba3-PD and to B1 from Ba3 the ratings
of the following existing debt instruments issued by Bellis
Acquisition Company PLC: 1) the GBP195 million senior secured first
lien term loan A due August 2025, 2) the EUR845 million senior
secured first lien term loan B due February 2026, 3) the GBP2.25
billion backed senior secured notes due February 2026, 4) the
GBP500 million backed senior secured notes due February 2026 and 5)
the GBP500 million senior secured first lien revolving credit
facility due August 2025. Moody's has also downgraded to B3 from B2
the rating of the GBP500 million backed senior unsecured notes due
February 2027 issued by Bellis Finco PLC. The outlook on both
entities remains stable.

The rating action reflects:

-- The company's weak trading in Q1 2022 and since its leveraged
buyout in October 2020

-- Increased leverage to 5.9x (Moody's-adjusted) as of March 2022
and Moody's expectation that leverage will remain above 6x over the
next 12 months

-- Uncertainty over ability to turnaround performance of the
business given macro-economic challenges and limited track record
under the new ownership.

RATINGS RATIONALE

The B1 CFR reflects the company's: 1) its established market
position and significant scale in the UK grocery sector, 2) the
stable demand for groceries, 3) ongoing focus on efficiency and
cost reductions and 4) an established and further expanding online
offering.

Less positively, the rating also reflects 1) the very competitive
nature of the UK grocery business, 2) a higher, albeit declining
reliance on large store formats and underweight presence in the
convenience market compared to peers, which the company has started
to address, 3) relatively higher leverage compared to listed peers,
4) a lack of operational and financial track record under the new
ownership, including some moderate risks from the separation from
Walmart, and 5) more limited governance oversight compared to
listed peers, currently being addressed.

ASDA has performed below Moody's expectations since closing its
leveraged buy-out in October 2020. Company-adjusted EBITDA declined
by 32% in the first quarter of 2022 ended March 31 from the same
period of 2021 driven by 9.2% lower revenue (excluding fuel)
year-on-year and rising input cost inflation. The revenue decline
was partly due to the different timing of the Easter holidays
compared to the previous year and needs to be placed in the context
of the strong performance during the pandemic in 2021. Non-food
sales were also disrupted by supply chain-related challenges.

Moody's estimates ASDA's leverage, measured in terms of Moody's
adjusted gross debt to EBITDA, was 5.9x adjusting for acquisition
fees as of March 31, 2022, up from 5.4x as of December 2021.
Moody's currently expect leverage between 6.0x-6.5x over the next
12 months.

ASDA has also been without a Chief Executive Officer since August
2021, although some significant top management appointments have
been made. Governance considerations relevant to the company's
credit profile also include lacking a track record under the new
ownership and without a clear long-term leverage target, the use of
PIK debt outside the restricted group creating structural
complexity, and currently limited governance oversight. That said,
ASDA has made some progress under the new ownership with the
appointment of experienced independent board members in addition to
the four board representatives from the shareholders and one from
Walmart.

LIQUIDITY

Moody's considers ASDA's liquidity profile to be adequate,
supported by the undrawn GBP500 million senior secured first lien
revolving credit facility (RCF) in addition to GBP325 million cash
available as at March 31, 2022.

STRUCTURAL CONSIDERATIONS

The first lien instrument ratings are in line with the CFR
reflecting the limited cushion provided by the backed senior
unsecured notes.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects expectations that the company will
sustain Moody's-adjusted leverage well below 6.5x over the next 12
months and Moody's current expectations that the company will be
able to at least stabilize its trading performance and credit
metrics by maintaining market share and mitigating inflationary
pressures through price increases, cost reduction measures.

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

Although unlikely at this stage, the ratings could be upgraded if
Moody's-adjusted leverage reduces sustainably well below 5.75x,
with a clear financial policy in line with lower leverage. An
upgrade would also require a material increase in free cash flow,
with free cash flow to debt improving to at least 10%. An upgrade
would also require the absence of major execution challenges and
adequate liquidity.

The ratings could be downgraded if leverage does not remain well
below 6.5x on a Moody's-adjusted basis over the next 12 months, or
if there is evidence of a more aggressive financial policy,
including shareholder distributions, or if the company generates
negative free cash flows, or in case of a further loss of market
share or reduced sales. A downgrade could ensue also in case of
material execution issues following the separation from its former
parent, or if liquidity concerns arise.

LIST OF AFFECTED RATINGS

Downgrades:

Issuer: Bellis Acquisition Company PLC

Senior Secured Bank Credit Facility, Downgraded to B1 from Ba3

BACKED Senior Secured Regular Bond/Debenture, Downgraded to B1
from Ba3

Issuer: Bellis Finco PLC

Probability of Default Rating, Downgraded to B1-PD from Ba3-PD

LT Corporate Family Rating, Downgraded to B1 from Ba3

BACKED Senior Unsecured Regular Bond/Debenture, Downgraded to B3
from B2

Outlook Actions:

Issuer: Bellis Acquisition Company PLC

Outlook, Remains Stable

Issuer: Bellis Finco PLC

Outlook, Remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Retail
published in November 2021.

COMPANY PROFILE

Headquartered in Leeds, West Yorkshire, ASDA is the third largest
grocery retailer in the UK with GBP20.7 billion revenue in 2021.
Revenue is split between GBP17.9 billion goods (the bulk of which
represented by food) and GBP2.8 billion fuel. Food sales are
roughly equally split between fresh & produce and ambient.


BULB: Centrica Drops Out of Bidding Race
----------------------------------------
Gill Plimmer and Jim Pickard at The Financial Times report that
Centrica, the owner of British Gas, has pulled out of the auction
for failed energy provider Bulb, leaving the UK government
struggling to achieve a competitive bidding process.

Bulb collapsed last November after natural gas prices soared and it
failed to raise new money. The government stepped in to ensure its
1.6 million customers still received energy and had planned to sell
the business by the end of July, the FT recounts.

According to the FT, people close to the sale process said Centrica
had withdrawn, leaving just two confirmed potential bidders --
Octopus Energy, the fifth biggest supplier, and Masdar, an energy
company from Abu Dhabi.  One of the people said one option is that
the two team up, with Masdar providing the cash, and Octopus, which
has never made a profit, taking on Bulb's customers, the FT notes.

Ovo, the sixth biggest energy company, has not ruled itself out of
the bidding but the company announced thousands of redundancies
earlier this year and is lossmaking, so would need to raise
finance, the FT states.

Closing bids are due this Thursday, June 30, in a sales process
that is being handled by Lazards, the FT discloses.

Bulb's insolvency is expected to cost the government at least
GBP2.2 billion, making it the biggest state bailout since Royal
Bank of Scotland in 2008, according to the FT.

It is also racking up costs for consumers, with Bulb making an
GBP886 million loss in the six months since nationalisation, the FT
relays, citing reports from administrators released last week.


Scores of creditors, many of them small businesses, are owed GBP585
million and are unlikely to be paid, the FT discloses.  But
Sequoia, an infrastructure fund, which is backed by Simple, Bulb's
parent company, is guaranteed to receive its original GBP55 million
investment and has earned a GBP10 million dividend since November,
the FT notes.


DAWNFRESH SEAFOODS: Thistle Seafoods Acquires Uddingston Facility
-----------------------------------------------------------------
Scott Reid at The Scotsman reports that FRP Advisory, the
administrator of Dawnfresh Seafoods, has secured a going-concern
sale of the Uddingston facility to Peterhead-based seafood business
Thistle Seafoods.

The Uddingston site extends to more than 100,000 square feet and
includes a large industrial unit with processing, warehousing,
administration and cold store facilities together with an extensive
range of plant and equipment, The Scotsman discloses.

The deal, which is for an undisclosed sum, sees the immediate
transfer of 40 employees to Thistle Seafoods, The Scotsman notes.

Dawnfresh Seafoods was one of the UK's largest producers and
processors of fish and seafood when it went into administration in
February, along with Dawnfresh Holdings and R R Spink & Sons
(Arbroath) The Scotsman relates.

FRP Advisory sold the Arbroath facility to Lossie Seafoods in a
deal that saved 249 jobs, The Scotsman recounts.  Dawnfresh
Farming, which operates seven fish farms in Northern Ireland and
Scotland, continues to trade solvently and will be formally
marketed for sale in the coming months, The Scotsman states.


GREENSILL: Credit Suisse Inks Debt Payment Deal with Bluestone
--------------------------------------------------------------
Owen Walker at The Financial Times reports that Credit Suisse has
signed an agreement with the mining company owned by West Virginia
governor Jim Justice to start recouping part of the US$690 million
that Bluestone Resources owes the Swiss bank's clients.

Bluestone borrowed heavily from Greensill Capital, the failed UK
supply chain finance group that relied on some of Credit Suisse's
wealthiest clients for a significant chunk of its own funding, the
FT discloses.

According to the FT, in a deal announced on June 24, Bluestone will
begin making regular payments to the Swiss bank's clients this
month, reaching up to US$260 million in total.

As the FT reported last month, the Justice family has also agreed
to share the proceeds of any sale of the business with Credit
Suisse clients, though a person briefed on the arrangement said the
split had not yet been defined.

If there are still debts outstanding after Bluestone is sold, the
bank plans to continue trying to recoup the losses through
insurance claims that it has already filed, the FT states.

Since Greensill's collapse in March 2021, Credit Suisse has been
under pressure to recover money that the supply chain firm lent via
a US$10 billion group of funds set up by the Swiss bank for 1,200
of its richest clients, the FT recounts.  The bank has said the
process could take as long as five years, the FT relays.

So far, it has recovered US$7.3 billion, the FT discloses.  Credit
Suisse, the FT says, is also pursuing embattled UK metals tycoon
Sanjeev Gupta for US$1.3 billion his GFG Alliance borrowed from the
bank's funds through Greensill.


ICICI BANK: Moody's Upgrades Rating on Subordinated Bond to Ba1
---------------------------------------------------------------
Moody's Investors Service has upgraded ICICI Bank UK PLC's ("ICICI
UK") long-term deposit ratings from Baa2 to Baa1 and subordinated
debt and program ratings to Ba1 from Ba2 and to (P)Ba1 from (P)Ba2
respectively. At the same time, Moody's upgraded the long-term
Counterparty Risk Ratings (CRRs) to A3 from Baa1, and the long-term
Counterparty Risk Assessment (CR Assessment) to A3 (cr) from
Baa1(cr). Moody's also affirmed the senior unsecured debt and
program ratings at Baa2 and (P)Baa2 and the standalone Baseline
Credit Assessment (BCA) of ICICI UK at ba1. The Adjusted BCA was
upgraded to baa3 from ba1. The bank's short term ratings and
assessments were also affirmed.

The rating action follows the upgrade of ICICI Bank Limited's
("ICICI Bank"), ICICI UK's parent, BCA to baa3 from ba1.

The outlook on the long-term deposit and senior unsecured debt
ratings remains stable.

RATINGS RATIONALE

UPGRADE OF LONG TERM DEPOSIT, CRRs AND CR ASSESSMENT

The upgrades reflect the upgrade of ICICI UK's Adjusted BCA to
baa3, and the result of Moody's Advanced Loss Given Failure (LGF)
analysis that incorporates the liability structure of the bank.

The Baa1 long-term deposit and Baa2 senior unsecured debt ratings
reflect Moody's assumption that expected loss-given-failure (LGF)
on deposits and senior unsecured debts will be very low, resulting
in two and one notches of uplift from the Adjusted BCA for the
deposits and senior unsecured debts respectively. The upgrade of
the CRRs to A3, of the CR Assessment to A3(cr), and the
subordinated ratings to Ba1 reflect the application of Moody's
Advanced LGF analysis that results in three notches of uplift for
the bank's CRRs and CR Assessment, and one negative notch
adjustment for the subordinated debt reflecting an assumption of a
high loss-given-failure. The affirmation of the senior unsecured
debt ratings despite the upgrade of the Adjusted BCA reflects the
relatively higher LGF for this debt class given upcoming maturities
that will significantly reduce the volume of debt outstanding.

Moody's assumption of a low probability of support from the
Government of United Kingdom (Aa3 stable) results in no further
rating uplift.

AFFIRMATION OF BCA AND UPGRADE OF ADJUSTED BCA

The affirmation of ICICI UK's BCA of ba1, reflects asset risk
pressures in spite of balance sheet de-risking which are offset to
some extent by the bank's strong capitalization levels. Although,
ICICI UK has disposed of sizable legacy impairments in the last 2
years and adopted a lower risk appetite, asset risk pressures
remain as shown by its problem loan ratio of 4.5% at fiscal year
end 2022. The bank continues to reposition its business model to
leverage off the India-Europe, primarily United Kingdom, trade
corridor, and to transition to a balance sheet with more granular
loan exposures. The bank's loan exposures are geographically
diverse including exposures to economies with weaker operating
environments. However, the bank has a strong capital base, which
provides a significant loss absorbing cushion in the event of
credit deterioration. Furthermore, ICICI UK's strong capital levels
and liquidity profile comfortably support its moderate growth
targets.

The upgrade of the bank's Adjusted BCA to baa3 reflects the recent
upgrade of its parent's BCA reflecting improvements in asset
quality, capital, and profitability. Moody's assumes a very high
likelihood of support from ICICI  Bank toward ICICI UK which leads
to one notch of uplift to ICICI UK's Adjusted BCA. The rating
agency notes that ICICI UK's creditworthiness is inherently close
to that of the parent, given its common branding, relatively small
franchise and high operational links.

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

The deposit, senior unsecured and subordinated debt ratings could
be upgraded because of an increase in available subordination or an
increase in the volume of the senior or subordinated debt classes.
ICICI UK's BCA could also be upgraded if the bank continues to
materially improve asset risk along with profitability while
maintaining strong capital levels. A reduction in its reliance on
an online deposit funding base which Moody's view as more price
sensitive would also be positive for its BCA.

The deposit and debt ratings could be downgraded following a
downgrade of the parent's BCA or a reduction in the probability of
ICICI Bank providing support. ICICI UK's deposit and senior
unsecured debt ratings could also be downgraded because of further
reduction in subordination levels or a higher level of tangible
banking assets than is currently projected.

The BCA could be downgraded if there is a weakening in the bank's
solvency or due to pressure on the bank's liquidity or the
stability of its deposit base. However, a notch downgrade of ICICI
UK's BCA would likely be offset by the benefit of affiliate support
and not result in a lower Adjusted BCA.

LIST OF AFFECTED RATINGS

Issuer: ICICI Bank UK PLC

Upgrades:

Long-term Counterparty Risk Ratings, upgraded to A3 from Baa1

Long-term Bank Deposit Ratings, upgraded to Baa1 from Baa2,
outlook remains Stable

Adjusted Baseline Credit Assessment, upgraded to baa3 from ba1

Long-term Counterparty Risk Assessment, upgraded to A3(cr) from
Baa1(cr)

Subordinate Regular Bond/Debenture, upgraded to Ba1 from Ba2

Subordinate Medium-Term Note Program, upgraded to (P)Ba1 from
(P)Ba2

Affirmations:

Senior Unsecured Regular Bond/Debenture, affirmed Baa2, outlook
remains Stable

Senior Unsecured Medium-Term Note Program, affirmed (P)Baa2

Baseline Credit Assessment, affirmed at ba1

Short-term Counterparty Risk Ratings, affirmed P-2

Short-term Bank Deposits, affirmed P-2

Short-term Counterparty Risk Assessment, affirmed P-2(cr)

Outlook Action:

Outlook remains Stable


LIBERTY GLOBAL: Egan-Jones Retains BB Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on June 14, 2022, retained 'BB' foreign
currency and local currency senior unsecured ratings on debt issued
by Liberty Global plc.

Headquartered in London, United Kingdom, Liberty Global plc owns
interests in broadband, distribution, and content companies
operating outside the continental United States, principally in
Europe.


LOVE LANE: To Stay Open Following Pre-Pack Administration
---------------------------------------------------------
Neil Hodgson at TheBusinessDesk.com reports that hospitality
business Love Lane Brewery has secured investment from Cheshire
retailer Nick Canning as part of a pre-pack administration.

According to TheBusinessDesk.com, the administration, handled by
Steven Muncaster and Steve Clancy in the Manchester office of
Kroll, means the Liverpool bar and brewery business will stay
open.

Love Lane Brewing Ltd, a subsidiary of Higsons 1780, went into
administration on June 20, following which the company changed name
to LLB Realisations Ltd., TheBusinessDesk.com relates.  The new
company is Love Lane Brewery, TheBusinessDesk.com notes.  Higsons
1780 continues to trade, TheBusinessDesk.com states.



MATALAN RETAIL: Says Survival Hinges on Debt Refinancing
--------------------------------------------------------
Jonathan Eley at The Financial Times reports that Matalan Retail
Ltd. has acknowledged it may not be able to continue operating if
it is unable to finance a significant chunk of its debts by
January, despite a recovery in trading.

The UK value retailer has already replaced a revolving credit
facility and GBP16.7 million borrowed under the government's
Covid-19 loan scheme with a new GBP60 million credit facility, and
plans to repay GBP27 million of high-interest loan notes from its
cash reserves, the FT relates.

But a much larger GBP350 million tranche of secured debt falls due
for repayment early next year and will require refinancing, the FT
discloses.

According to the FT, the Liverpool-based group, which employs
almost 11,000 people and has more than 200 stores, stated that "the
ability to successfully refinance our debts involves geopolitical,
economic and market factors outside the direct control of the
business".

This uncertainty "may cast significant doubt on the group's .  
.  .  ability to continue as a going concern".

Debt markets for riskier borrowers in Europe remain largely dormant
following Russia's invasion of Ukraine, although there is more sign
of activity in the US.  Matalan tested appetite for a debt
refinancing in February but did not secure sufficient support, the
FT notes.

Matalan, as cited by the FT, said talks with lenders were "at an
advanced stage" and that it believed it could complete the
refinancing before January.  It is being advised by restructuring
experts at Teneo, who also oversaw the recent prepack
administration of Missguided and the complex administration of Sir
Philip Green's Arcadia empire, the FT discloses.

But two separate groups of creditors have appointed their own
advisers and fixed-income analysts said the bondholders could
conceivably take control of the business, as happened with New Look
and Debenhams, the FT relates.

Unlike those businesses, which were suffering from declining sales
and weak margins when they recapitalised, Matalan is trading well,
according to the FT.  Results for the year to February showed sales
exceeding GBP1 billion from GBP744 million the year before as the
impact of Covid-related store closures reduced, the FT says.

The group made an operating profit of GBP92 million against a GBP27
million loss the year before and total sales in the first quarter
of its new financial year were up 29 per cent from a year ago,
according to the FT.


PATISSERIE: Administrators Settle Audit Suit with Grant Thornton
----------------------------------------------------------------
Kate Beioley at The Financial Times reports that the administrators
of Patisserie Valerie have settled a GBP200 million lawsuit with
accountants Grant Thornton that alleged negligence in its audits of
the cafe chain, which collapsed after a suspected fraud.

FRP Advisory, which is liquidating the failed group, sued Grant
Thornton in 2020 in one of the biggest High Court claims ever to be
brought against a mid-tier accounting firm, the FT recounts.

The bakery group was put into administration in January 2019 after
discovering potentially fraudulent accounting irregularities that
led it to overstate its financial position by GBP94 million, the FT
relates.  The failure wiped out hundreds of millions of pounds of
shareholders' investments and sparked a string of legal and
regulatory cases, the FT notes.  Although some shops found buyers,
most were closed and 900 jobs were cut, the FT states.

In identical statements, the companies, as cited by the FT, said:
"The [Patisserie Valerie Group] and Grant Thornton confirm that in
2021 they resolved the claims brought against Grant Thornton by PV
Group. The terms are strictly confidential."

FRP pursued Grant Thornton for GBP200 million, alleging it was
negligent in the preparation and conduct of financial statements
between 2014 and 2017, the FT relays.  It turned to law firm
Mishcon de Reya to bring the claim, the FT discloses.

According to the FT, it said "large accounting misstatements" had
resulted in Patisserie Valerie's board "being unaware that the
group has insufficient funds to continue to trade", in a report to
creditors last year.

Grant Thornton had audited Patisserie Valerie for 12 years but
failed to spot an alleged manipulation of its books, the FT
relays.

According to representatives for both companies, the parties
resolved the claims last year in a confidential settlement that
came to light on June 26, the FT relays.

The settlement comes after Grant Thornton was fined more than
GBP2.3 million by the Financial Reporting Council in September for
"a serious lack of competence" in its audits of the cafe chain, the
FT notes.

The fines related to Grant Thornton's clean audit opinions on
Patisserie Valerie's accounts for the three financial years to
2017, according to the FT.

The Serious Fraud Office has also opened a criminal investigation
into Patisserie Valerie's collapse and made several arrests,
including one rearrest, the FT relates.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

Copyright 2022.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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members of the same firm for the term of the initial subscription
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                * * * End of Transmission * * *