/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/220902.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, September 2, 2022, Vol. 23, No. 170 Headlines I R E L A N D AVOCA CLO XI: Moody's Affirms B1 Rating on EUR15.8MM Cl. F-R Notes DOLE PLC: S&P Alters Outlook to Negative, Affirms 'BB' ICR JUBILEE CLO 2016-XVII: Moody's Affirms B2 Rating on Class F Notes I T A L Y ALBA 12 SPV: Moody's Ups Rating on EUR238.4MM Cl. B Notes from Ba1 U N I T E D K I N G D O M CINEWORLD: Incorrectly Reported Identity of Largest Shareholder DONCASTER PHARMACEUTICALS: BModesto Group Acquires Business, Assets FOUNDATION OF HEARTS: Fans Ploughed GBP14 Million Into Club GARDNERS: Owed GBP5.5MM to Creditors at Time of Administration PARKMORE POINT 2022-1: S&P Assigns Prelim B (sf) Rating on F Notes [*] UK: Manufacturing Sector Insolvencies Up 63% in 2022 X X X X X X X X [*] BOOK REVIEW: Hospitals, Health and People - - - - - ============= I R E L A N D ============= AVOCA CLO XI: Moody's Affirms B1 Rating on EUR15.8MM Cl. F-R Notes ------------------------------------------------------------------ Moody's Investors Service has upgraded the ratings on the following notes issued by Avoca CLO XI Designated Activity Company: EUR21,000,000 Class C-1R Deferrable Mezzanine Floating Rate Notes due 2030, Upgraded to Aa3 (sf); previously on Mar 4, 2022 Affirmed A1 (sf) EUR15,000,000 Class C-2R Deferrable Mezzanine Floating Rate Notes due 2030, Upgraded to Aa3 (sf); previously on Mar 4, 2022 Affirmed A1 (sf) EUR23,000,000 Class D-R Deferrable Mezzanine Floating Rate Notes due 2030, Upgraded to A3 (sf); previously on Mar 4, 2022 Affirmed Baa1 (sf) Moody's has also affirmed the ratings on the following notes: EUR 300,000,000 (current outstanding amount EUR261.5m) Class A-R-R Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Mar 4, 2022 Affirmed Aaa (sf) EUR20,000,000 Class B-1R-R Senior Secured Fixed Rate Notes due 2030, Affirmed Aaa (sf); previously on Mar 4, 2022 Upgraded to Aaa (sf) EUR27,000,000 Class B-2R Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Mar 4, 2022 Upgraded to Aaa (sf) EUR13,000,000 Class B-3R Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Mar 4, 2022 Upgraded to Aaa (sf) EUR27,500,000 Class E-R Deferrable Junior Floating Rate Notes due 2030, Affirmed Ba2 (sf); previously on Mar 4, 2022 Affirmed Ba2 (sf) EUR15,800,000 Class F-R Deferrable Junior Floating Rate Notes due 2030, Affirmed B1 (sf); previously on Mar 4, 2022 Affirmed B1 (sf) Avoca CLO XI Designated Activity Company, issued in June 2014 and refinanced in May 2017 and November 2019, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by KKR Credit Advisors (Ireland) Unlimited Company. The transaction's reinvestment period ended in June 2021. RATINGS RATIONALE The rating upgrades on the Class C-1R, Class C-2R and Class D-R Notes are primarily a result of the deleveraging of the Class A-R-R Notes following amortisation of the underlying portfolio since the last rating action in March 2022. The rating affirmations on the Class A-R-R, B-1R-R, B-2R, B-3R, E-R and F-R Notes reflect the expected losses of the notes continuing to remain consistent with their current ratings after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralization levels. The Class A-R-R Notes have paid down by approximately EUR38.47 million (13%) in the last 12 months. As a result of the deleveraging, over-collateralisation (OC) has increased across the capital structure. According to the trustee report dated July 2022 [1] the Class A/B, Class C, Class D, Class E and Class F OC ratios are reported at 143.5%, 129.1%, 121.3%, 113.1% and 108.9% compared to January 2022 [2] levels of 142.2%, 128.2%, 120.7%, 112.8% and 108.7% respectively. The key model inputs Moody's uses in its analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on its published methodology and could differ from the trustee's reported numbers. In its base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR461.5m Defaulted Securities: EUR0m Diversity Score: 56 Weighted Average Rating Factor (WARF): 2787 Weighted Average Life (WAL): 3.94 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.43% Weighted Average Coupon (WAC): 4.22% Weighted Average Recovery Rate (WARR): 44.79% Par haircut in OC tests and interest diversion test: none The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into its cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2021. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank and swap providers, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance" published in June 2022. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. DOLE PLC: S&P Alters Outlook to Negative, Affirms 'BB' ICR ---------------------------------------------------------- S&P Global Ratings affirmed its 'BB' issuer credit rating on global fresh produce company Dole PLC and revised its outlook to negative from stable. S&P said, "We also lowered our issue-level ratings on the company's senior secured debt to 'BB' from 'BB+' and revised our recovery ratings to '3' from '2' to reflect our view that the company's recently established accounts receivable securitization program weakens recovery prospects for senior secured creditors." The negative outlook reflects the risk that leverage could remain higher than 3.5x. Since forming from the merger of Total Produce and Dole Food Co. in 2021, Dole PLC has faced operational challenges that have slowed its deleveraging progress. S&P said, "We expect leverage will remain elevated into 2023 because of operating setbacks in the first half and a challenging macroeconomic environment. Dole faced several operating challenges in the first half of fiscal 2022. A packaged salad recall in December 2021 hurt its fresh vegetable segment and resulted in one-time charges, temporary plant shutdowns that lasted into early 2022, and delays implementing price increases. While the plants are now operating, inflation is now weakening consumer demand for the category. This is pressuring volumes, lowering fixed cost absorption, and making it difficult to raise prices despite facing higher input costs. In the fresh fruit segment (which represents more than 50% of earnings), the Russia-Ukraine conflict caused an oversupply and contraction in spot market prices for some fruits, including bananas. The segment was already facing difficult comparisons (due to tight market supply and pricing following hurricanes Eta and Iota in 2021). The company has also faced high freight, packaging, and fertilizer costs, and a stronger U.S dollar against European currencies. As a result of these various pressures, we estimate leverage was above 5x as of June 30, 2022 (note that our trailing-12-month estimates do not add back charges related to the packaged salad recall). We expect leverage will improve to the mid-4x area at the end of fiscal 2022 on a second half working capital unwind and easier second half comps, particularly in the fresh fruit segment, for which pricing should meaningfully improve. "Notwithstanding operational challenges to date, we expect EBITDA growth of nearly 30% in 2023 as the company laps the packaged salad recall and the initial impact of the Russia-Ukraine conflict that caused a fruit supply imbalance. In addition, we believe higher pricing on newly negotiated contracts in the EMEA fresh produce business will help offset recent foreign currency and commodity headwinds. Our base-case forecast also assumes some easing of commodity pressures. Given these developments, we expect the company to reduce leverage to the low-3x area at the end of fiscal 2023. However, we recognize a highly uncertain macroeconomic environment and ongoing risks that could cause results to deviate from our forecast, including a protracted recession that could further pressure the fresh vegetables business or continued unfavorable foreign currency movements that weaken EMEA fresh produce business results. "Secular tailwinds should continue supporting long-term profit growth. In addition to more favorable fresh fruit segment comparisons and better pricing in EMEA, we also expect the company will benefit from the expansion of the Dole brand into underpenetrated markets (such as the U.K.) and fast growing categories (such as avocadoes, berries, and organic produce). This strategy, combined with consumer focus on healthier lifestyles should support our continued outlook for 2%-3% run-rate organic revenue growth over the long term. Furthermore, notwithstanding its value-added vegetables business which may lose share to value priced bulk offerings as inflation reduces consumer discretionary income, we believe Dole is generally well-positioned to navigate a high inflation, lower discretionary spending environment given its affordable product prices in its fresh fruit segment, and dynamic pass-through pricing in its diversified produce businesses. Dole's superior sourcing scale should also help it weather any potential impending fertilizer scarcities. In addition, the company's owned shipping fleet should insulate it against significant disruptions in the shipping market. As a result, we forecast EBITDA margins will reman around 5% after 2022. "Our ratings depend on management's commitment to conservative financial policies. Management's stated leverage target of 3x (company-defined) has supported our 'BB' rating despite operating performance and credit measures below our expectations. This includes S&P Global Ratings adjusted debt to EBITDA over 5x for the 12-months-ended June 30, 2022, compared with our expectations for leverage below 3.5x. In addition to the first half operating setbacks, our adjusted leverage calculation is also weaker because of higher-than-expected adjusted debt balances, including from a large off-balance sheet accounts receivable securitization balance, which we add back to debt. That balance totaled $230 million as of June 30, 2022, but we expect this should moderate as working capital unwinds in the second half. "The company continues to pay a modest dividend, which we do not expect will increase. Although Dole will likely maintain an appetite for bolt-on acquisitions to complement some of its business segments, we believe management will prioritize debt repayment over other forms of shareholder remuneration in the near term. Given our expectations for negligible full-year free operating cash flow (FOCF) in 2022, we expect most of the company's deleveraging in the coming quarters will primarily come from EBITDA growth as it laps the impact of the packaged salad recall and Russia-Ukraine conflict, and to a lesser degree from working capital management as the company works through a larger than normal inventory build (caused both by volumes and pricing). However, capital allocation decisions will also be an important factor for continued deleveraging beyond 2022. While we recognize ongoing bolt-on acquisitions as a possibility, there is limited flexibility within the rating for mid- to large-scale M&A or incremental shareholder remuneration, since that would likely cause the company to deviate from our forecasted deleveraging path." The negative outlook reflects Dole's recent operational challenges and the potential for a lower rating over the next few quarters if it cannot significantly strengthen credit measures through profit growth, the unwinding of its significant working capital build, and continued commitment to restore leverage to its stated targets, resulting in S&P Global Ratings' adjusted EBITDA below 3.5x. S&P could lower the rating if leverage does not improve to 3.5x. This could occur if: -- Additional product recalls or exogenous events that lead to excess market supply and pricing pressure affect the company. -- Inflationary pressures lead to sustained softness in the value-added vegetables business. -- The company cannot offset unfavorable foreign currency and commodity fluctuations with higher prices. -- More aggressive financial policies prevent the company from maintaining a path to deleveraging. S&P could revise the outlook to stable if it believes Dole will sustain leverage below 3.5x. This could occur if: -- The company successfully negotiates higher priced fresh produce contracts in its European businesses -- There are no additional market disruptions that lead to excess fruit supply. -- The company restores profitability in the value-added vegetables by recapturing volumes and improving fixed cost absorption, while also offsetting input cost inflation with higher prices. -- Foreign exchange and commodity headwinds ease. -- Management reduces it seasonal working capital build, restores FOCF, and maintains a commitment to reducing leverage. ESG Credit Indicators: E-3, S-2, G-2 JUBILEE CLO 2016-XVII: Moody's Affirms B2 Rating on Class F Notes ----------------------------------------------------------------- Moody's Investors Service has upgraded the ratings on the following notes issued by Jubilee CLO 2016-XVII DAC: EUR31,184,000 Class B-1 Senior Secured Floating Rate Notes due 2031, Upgraded to Aa1 (sf); previously on Mar 22, 2021 Assigned Aa2 (sf) EUR6,316,000 Class B-2 Senior Secured Fixed Rate Notes due 2031, Upgraded to Aa1 (sf); previously on Mar 22, 2021 Assigned Aa2 (sf) EUR28,000,000 Class C Deferrable Mezzanine Floating Rate Notes due 2031, Upgraded to A1 (sf); previously on Mar 22, 2021 Affirmed A2 (sf) Moody's has also affirmed the ratings on the following notes: EUR198,000,000 Class A-1 Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Mar 22, 2021 Assigned Aaa (sf) EUR50,000,000 Class A-2 Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Mar 22, 2021 Assigned Aaa (sf) EUR25,000,000 Class D Deferrable Mezzanine Floating Rate Notes due 2031, Affirmed Baa3 (sf); previously on Mar 22, 2021 Affirmed Baa3 (sf) EUR21,500,000 Class E Deferrable Junior Floating Rate Notes due 2031, Affirmed Ba2 (sf); previously on Mar 22, 2021 Affirmed Ba2 (sf) EUR11,500,000 Class F Deferrable Junior Floating Rate Notes due 2031, Affirmed B2 (sf); previously on Mar 22, 2021 Affirmed B2 (sf) Jubilee CLO 2016-XVII DAC was issued originally in September 2016 and refinanced in October 2018 and March 2021. It is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Alcentra Limited ("Alcentra"). The transaction's reinvestment period ends in October 2022. RATINGS RATIONALE The rating upgrades on the Classes B-1, B-2 and C Notes are primarily a result of the improvement in the credit quality of the underlying collateral pool since the last rating action in March 2021 and the benefit of the shorter period of time remaining before the end of the reinvestment period in October 2022. The rating affirmations on the Class A-1, A-2, D, E and F Notes reflect the expected losses of the notes continuing to remain consistent with their current ratings after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralization levels. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. In particular, Moody's assumed that the deal will benefit from a shorter amortisation profile than it had assumed at the last rating action in March 2021. The key model inputs Moody's uses in its analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on its published methodology and could differ from the trustee's reported numbers. In its base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR394.30M Diversity Score: 59 Weighted Average Rating Factor (WARF): 2920 Weighted Average Life (WAL): 4.63 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.70% Weighted Average Coupon (WAC): 3.92% Weighted Average Recovery Rate (WARR): 44.30% The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into its cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2021. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance" published in June 2022. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. ========= I T A L Y ========= ALBA 12 SPV: Moody's Ups Rating on EUR238.4MM Cl. B Notes from Ba1 ------------------------------------------------------------------ Moody's Investors Service has upgraded the rating of Class B Notes in Alba 12 SPV S.r.l. This rating action reflects the increased level of credit enhancement for the affected notes: EUR474.7M Class A1 Notes (current outstanding balance EUR 329.96M), Affirmed Aa3 (sf); previously on Nov 17, 2021 Definitive Rating Assigned Aa3 (sf) EUR225.2M Class A2 Notes Affirmed Aa3 (sf); previously on Nov 17, 2021 Definitive Rating Assigned Aa3 (sf) EUR238.4M Class B Notes, Upgraded to Baa3 (sf); previously on Nov 17, 2021 Definitive Rating Assigned Ba1 (sf) Maximum achievable rating is Aa3 (sf) for structured finance transactions in Italy, driven by the corresponding local currency country ceiling of the country. RATINGS RATIONALE The upgrade rating action is prompted by an increase in the credit enhancement for the affected tranche. Increased Credit Enhancement Sequential amortization and a fully funded reserve fund led to the increase of the credit enhancement available in this transaction. For instance, the credit enhancement for the Class B has increased to 18.3% from 15.9% since the last rating action. The principal methodology used in these ratings was "Equipment Lease and Loan Securitizations Methodology" published in July 2022. 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, (3) improvements in the credit quality of the transaction counterparties, and (4) a decrease in sovereign risk. 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. =========================== U N I T E D K I N G D O M =========================== CINEWORLD: Incorrectly Reported Identity of Largest Shareholder --------------------------------------------------------------- Robert Smith and Oliver Barnes at The Financial Times report that Cineworld incorrectly reported the identity of its largest shareholder in its most recent annual report, as the struggling cinema chain failed to keep track of changes to its complex ownership structure. The world's second-biggest cinema chain is on the verge of filing for Chapter 11 bankruptcy in the US, in an attempt to restructure its nearly US$9 billion in debt and lease liabilities, the FT discloses. Its largest shareholder is the family of Mooky and Israel Greidinger, the Israeli brothers who serve as the group's chief executive and deputy chief executive, respectively. In its 2021 annual report, Cineworld reported that 20.08% of its shares are owned by Global City Holdings, a Dutch holding company ultimately owned by Greidinger family trusts, the FT discloses. A footnote explains that this entity holds 274.7mn shares, while a further 1mn are held by Global City Theatres, another Dutch entity that is described as "a wholly owned subsidiary of Global City Holdings", the FT states. However, according to Global City Holdings's 2020 audited annual accounts, it no longer owns Global City Theatres, which in fact owns almost all of the Greidingers' stake in Cineworld. Global City Holding sold Global City Theatres to an unnamed "related company" for EUR1, the FT recounts. It recorded the disposal in 2020, although the accounts disclose that the "actual transfer of shares occurred in February 2021", the FT notes. After the sale, Global City Holdings held only 1mn shares, equating to just 0.07% of Cineworld's stock, the FT discloses. According to the FT, while the accounts did not name the company that took over Global City Theatres, Dutch corporate records show that it was DKG Park, another entity owned by Greidinger family trusts. The company is named after the initials of Mooky and Israel Greidinger's parents — Dahlia and Kalman Greidinger -- according to a person familiar with the matter, the FT notes. The errors in Cineworld's annual report underscore the complexity of the Greidinger family's holding companies, which have raised substantial amounts of debt against their shares in the cinema chain, which are currently down more than 90% this year, the FT states. Global City Holdings' accounts show that it began 2020 with £595mn of debt "secured by Cineworld shares", according to the FT. In March 2020, the group replaced a GBP420 million margin loan with a smaller GBP210 million debt facility with "no margining provisions", after selling a 7.9% stake in the company for GBP116 million to repay some of this debt, the FT recounts. The accounts also show that the group repaid an additional GBP117 million of debt in the first half of 2020, the FT states. In July 2020, Global City Holdings "breached certain financial covenants" on this debt facility and "did not pay" principal and interest that was due, prompting lenders to send a "reservation of rights letter" warning that they could take action against the borrower, the FT relays. In September 2020, the Greidingers refinanced the loan with a new lender, while striking the deal to shift ownership of Global City Theatres to DKG Park, according to the FT. Cineworld has previously disclosed that the new lender was British hedge fund Sand Grove Capital Management, but has not disclosed the size of the loan, the FT notes. DONCASTER PHARMACEUTICALS: BModesto Group Acquires Business, Assets ------------------------------------------------------------------- C+D reports that a UK wholesaler that had previously filed for administration will continue to serve pharmacies under a new name, following the announcement that Dutch pharmaceutical wholesaler BModesto Group has purchased its business and assets. Doncaster Pharmaceuticals Group Limited, Testerworld Limited, and Eclipse Generics Limited -- which together served about 4,000 pharmacies in the UK -- "ceased to trade with immediate effect" in May, C+D recounts. The American consulting firm Kroll was appointed to oversee the process of administration, C+D discloses. However, Doncaster Pharmaceuticals Group Limited will continue to serve UK pharmacies now that the BModesto Group has purchased some of its assets, the Dutch wholesaler wrote in a statement on Aug. 30, C+D relates. FOUNDATION OF HEARTS: Fans Ploughed GBP14 Million Into Club ----------------------------------------------------------- Darren Johnstone at The Herald reports that Hearts fans have now handed over a staggering GBP14 million to the club through the Foundation of Hearts. The fans group, who are also the majority shareholders of the Gorgie outfit, crashed through the landmark figure earlier this week, The Herald relates. According to The Herald, supporters have been ploughing money into the FoH since just before the club plunged into administration in 2013 and helped get the Hearts back on track with the help of current chair Ann Budge Foundation chairman Gerry Mallon said: "A few days ago, the monthly transfer of funds from the Foundation to the club went through. "It marked another significant milestone. Incredibly, unbelievably, the total raised through pledges from Heart of Midlothian supporters and friends has now reached more than GBP14 million. "To say that this is a quite staggering achievement is clearly a massive understatement. As we all know, this generation of fans saved the club and not only saved it but now co-own it. "And having reached that handover of majority shareholding in August 2021, any thought that you, the fans, would begin to rein back on your pledged support has been well and truly thrown back in the doubters' faces. "In the midst of challenging financial times all round, the monthly pledges have been sustained. Indeed, pledger numbers now are around the highest they have ever been." And Mr. Mallon insists the supporters' donations are helping Hearts thrive on and off the park, The Herald notes. GARDNERS: Owed GBP5.5MM to Creditors at Time of Administration -------------------------------------------------------------- Richard Stuart-Turner at Printweek reports that documents filed by the administrators of wide-format printer Gardners have revealed that the company owed nearly GBP5.5 million to its creditors. According to Printweek, the statement of administrator's proposal, filed at Companies House by administrators from Kroll Advisory on behalf of Morgard Court Ltd, which traded as Gardners, showed that unsecured creditors were hit to the tune of just over GBP2.92 million, made up of nearly GBP875,000 of intercompany dues and the remainder being trade and expense creditors. Six-figure sums were owed to a couple of industry suppliers, with many others, including other printers, owed sizeable five-figure sums, Printweek discloses. Shareholder Friars 730 Ltd was owed GBP728,993 while parent Hexcite Group was owed GBP145,570, Printweek states. HMRC was owed just under GBP1 million, while secured creditor Secure Trust Bank was owed nearly GBP1.55 million, Printweek notes. Gardners' book debts were estimated to realise around GBP1.44 million, with other assets estimated to realise around GBP100,000, according to Printweek. This includes inventory and stock with a book value of GBP533,988 that was estimated to realise just GBP69,994, Printweek relays, citing the report. PFI Group bought Cardiff-based Gardners from Hexcite in the administration sale, in a pre-pack arrangement with Kroll, Printweek recounts. PFI had also bought Kesslers and its global visual merchandising services brand Proportion London from Hexcite at the start of 2022, Printweek notes. Kesslers had an estimated total deficiency of more than GBP17 million when it went into administration, according to Printweek. Gardners generated GBP11.8 million in revenue in the 12 months to December 31, 2021, Printweek states. Its 102 staff all transferred to PFI Group as part of the deal, Printweek notes. According to Printweek, the report also detailed the circumstances leading up to the company being placed into administration, stating: "The company had historically been profitable; however, it lost a profitable account prior to Covid and struggled to replace the lost revenue with contracts of a similar level of gross margin following the easing of Covid restrictions. "In early 2022, the company's profit margins came under further pressure from inflation, supply chain issues and labour challenges, which impacted the company's cashflow. "The company developed a turnaround plan in mid-May 2022 with the focus on improving operational efficiency and reducing costs. As per the management forecasts, the company was expected to be broadly cash neutral in the second half of 2022 but required funding in order to continue to meet its liabilities as they fell due. "Unable to obtain further funding from the secured creditor, the group or its shareholders, the company decided to appoint an advisory firm to review its short-term cashflow position and commence an accelerated sale process. "Kroll had previously been appointed as administrators on Kesslers International Ltd in December 2021. Following this, one of the common directors, Andrew Ducker, approached Kroll for advice on the company's financial position and the options available." PARKMORE POINT 2022-1: S&P Assigns Prelim B (sf) Rating on F Notes ------------------------------------------------------------------ S&P Global Ratings assigned its preliminary credit ratings to Parkmore Point RMBS 2022-1 PLC's (Parkmore Point Ltd.) class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes. At closing, the issuer will also issue unrated class Z and RFN and certificate notes. Parkmore Point is a static RMBS transaction that securitizes a portfolio of GBP267.2 million owner-occupied and buy-to-let (BTL) mortgage loans secured on properties in the U.K. These loans were previously securitized in Residential Mortgages Securities 29 PLC, Residential Mortgages Securities 30 PLC, and Residential Mortgages Securities 31 PLC. At closing, the issuer will purchase the beneficial interest in the portfolio of U.K. residential mortgages from the seller (Parkmore Point Ltd.), using the proceeds from the issuance of the notes and certificates. The issuer will grant security over all its assets in favor of the security trustee. Most of the loans in the pool have unpaid additional fees and charges, which are owed to the seller. These amounts, as well as the historical arrears, are also being securitized. Of the preliminary pool, 71.1% of the loans are in arrears, with 62.7% of that portion in severe arrears (90+ day arrears). Of the pool, 5.9% is considered reperforming. However, the average payment rate on the portfolio is above 80%, and most of the severe arrears loans have been consistently paying above 70% over the past three years (excluding the period where payment holidays were allowed during the COVID-19 pandemic). In S&P's analysis, it gave some credit to payment rates and applied a lower arrears adjustment at 'A' and below rating scenarios. There is high exposure to interest-only loans in the pool at 76.5%, with significant maturity concentration between 2029-2032. Of the preliminary pool, 10.6% are second-lien loans. The borrowers in this pool may have previously been subject to a county court judgement (CCJ; or the Scottish equivalent), an individual voluntary arrangement, or a bankruptcy order prior to the origination, and may be self-employed, have self-certified their incomes, or were otherwise considered by banks and building societies to be nonconforming borrowers. The loans are secured on properties in England, Wales, Scotland, and Northern Ireland and most were originated between 2002 and 2008. A general reserve fund provides credit support to the rated notes, and principal can be used to pay senior fees and interest on the notes subject to various conditions. A further liquidity reserve fund will be funded to provide liquidity support to the class A notes. Pepper (UK) Ltd. is the legal title holder and the servicer in this transaction. In S&P's view, it is an experienced servicer in the U.K. market with well-established and fully integrated servicing systems and policies. It has its ABOVE AVERAGE ranking as a primary and special servicer of residential mortgages in the U.K. S&P said, "There are no rating constraints in the transaction under our counterparty, operational risk, or structured finance sovereign risk criteria. We consider the issuer to be bankruptcy remote. "We expect U.K. inflation to reach 8.7% in 2022. Although high inflation is overall credit negative for all borrowers, inevitably some borrowers will be more negatively affected than others, and to the extent inflationary pressures materialize more quickly or more severely than currently expected, risks may emerge. Our credit and cash flow analysis and related assumptions consider the transaction's ability to withstand the potential repercussions of the current economic environment--including higher inflation and an increase in the cost of living--such as higher defaults and longer recovery timing due to a potential backlog in court cases. Considering these factors, we believe that the available credit enhancement is commensurate with the preliminary ratings assigned. As the situation evolves, we will update our assumptions and estimates accordingly." Preliminary Ratings CLASS PRELIM. RATING CLASS SIZE (%) A AAA (sf) 69.02 B-Dfrd AA (sf) 5.99 C-Dfrd A (sf) 8.50 D-Dfrd BBB (sf) 3.74 E-Dfrd BB (sf) 2.25 F-Dfrd B (sf) 1.01 Z NR 9.51 RFN NR 1.50 Certificates NR N/A N/A--Not applicable. NR--Not rated. [*] UK: Manufacturing Sector Insolvencies Up 63% in 2022 -------------------------------------------------------- Business Sale reports that UK manufacturing sector insolvencies increased 63% in the last year, as firms suffered from issues including COVID-19, pandemic-related debts, Brexit trade restrictions and shortages of labour and raw materials. According to Business Sale, the number of insolvencies in the manufacturing sector increased from 893 in 2020-21 to 1,454 this year, with more companies also likely to have entered voluntary liquidation. The new Insolvency Service figures, analysed by advisory firm Mazars LLP, come with many firms in the sector facing the prospect of closure due to soaring energy bills this autumn, Business Sale discloses. Many companies will see their fixed-price arrangements with energy providers renegotiated in October and, amid the ongoing turmoil in the energy market, are facing huge increases, Business Sale states. Unlike domestic consumers, who have energy bills capped by Ofgem, companies do not have an energy price cap rate and manufacturing firms, which are typically highly energy-intensive, could see their energy bills increase by 300% to 400% when fixed-price arrangements are renegotiated in the autumn, Business Sale notes. With rising interest rates also exacerbating the debt piles that companies accrued during the COVID-19 pandemic, groups representing the UK manufacturing industry have warned that thousands face closure over the coming months unless the government provides more support, raising the prospect of the insolvency rate skyrocketing further still over the next year, Business Sale relates. Manufacturing lobby group Make UK has been among those to call on the government to provide further support to the sector to help businesses navigate rising costs and avoid falling into insolvency or entering voluntary liquidation, according to Business Sale. =============== X X X X X X X X =============== [*] BOOK REVIEW: Hospitals, Health and People --------------------------------------------- Author: Albert W. Snoke, M.D. Publisher: Beard Books Softcover: 232 pages List Price: $34.95 Order your personal copy today at http://www.beardbooks.com/beardbooks/hospitals_health_and_people.html Hospitals, Health and People is an interesting and very readable account of the career of a hospital administrator and physician from the 1930's through the 1980's, the formative years of today's health care system. Although much has changed in hospital administration and health care since the book was first published in 1987, Dr. Snoke's discussion of the evolution of the modern hospital provides a unique and very valuable perspective for readers who wish to better understand the forces at work in our current health care system. The first half of Hospitals, Health and People is devoted to the functional parts of the hospital system, as observed by Dr. Snoke between the late 1930's through 1969, when he served first as assistant director of the Strong Memorial Hospital in Rochester, New York, and then as the director of the Grace-New Haven Hospital in Connecticut. In these first chapters, Dr. Snoke examines the evolution and institutionalization of a number of aspects of the hospital system, including the financial and community responsibilities of the hospital administrator, education and training in hospital administration, the role of the governing board of a hospital, the dynamics between the hospital administrator and the medical staff, and the unique role of the teaching hospital. The importance of Hospitals, Health and People for today's readers is due in large part to the author's pivotal role in creating the modern-day hospital. Dr. Snoke and others in similar positions played a large part in advocating or forcing change in our hospital system, particularly in recognizing the importance of the nursing profession and the contributions of non-physician professionals, such as psychologists, hearing and speech specialists, and social workers, to the overall care of the patient. Throughout the first chapters, there are also many observations on the factors that are contributing to today's cost of care. Malpractice is just one example. According to Dr. Snoke, "malpractice premiums were negligible in the 1950's and 1960's. In 1970, Yale-New Haven's annual malpractice premiums had mounted to about $150,000." By the time of the first publication of the book, the hospital's premiums were costing about $10 million a year. In the second half of Hospitals, Health and People, Dr. Snoke addresses the national health care system as we've come to know it, including insurance and cost containment; the role of the government in health care; health care for the elderly; home health care; and the changing role of ethics in health care. It is particularly interesting to note the role that Senator Wilbur Mills from Arkansas played in the allocation of costs of hospital-based specialty components under Part B rather than Part A of the Medicare bill. Dr. Snoke comments: "This was considered a great victory by the hospital-based specialists. I was disappointed because I knew it would cause confusion in working relationships between hospitals and specialists and among patients covered by Medicare. I was also concerned about potential cost increases. My fears were realized. Not only have health costs increased in certain areas more than anticipated, but confusion is rampant among the elderly patients and their families, as well as in hospital business offices and among physicians' secretaries." This aspect of Medicare caused such confusion that Congress amended Medicare in 1967 to provide that the professional components of radiological and pathological in-hospital services be reimbursed as if they were hospital services under Part A rather than part of the co-payment provisions of Part B. At the start of his book, Dr. Snoke refers to a small statue, Discharged Cured, which was given to him in the late 1940's by a fellow physician, Dr. Jack Masur. Dr. Snoke explains the significance the statue held for him throughout his professional career by quoting from an article by Dr. Masur: "The whole question of the responsibility of the physician, of the hospital, of the health agency, brings vividly to mind a small statue which I saw a great many years ago.it is a pathetic little figure of a man, coat collar turned up and shoulders hunched against the chill winds, clutching his belongings in a paper bag-shaking, tremulous, discouraged. He's clearly unfit for work-no employer would dare to take a chance on hiring him. You know that he will need much more help before he can face the world with shoulders back and confidence in himself. The statuette epitomizes the task of medical rehabilitation: to bridge the gap between the sick and a job." It is clear that Dr. Snoke devoted his life to exactly that purpose. Although there is much to criticize in our current healthcare system, the wellness concept that we expect and accept today as part of our medical care was almost nonexistent when Dr. Snoke began his career in the 1930's. Throughout his 50 years in hospital administration, Dr. Snoke frequently had to focus on the big picture and the bottom line. He never forgot the importance of Discharged Cured, however, and his book provides us with a great appreciation of how compassionate administrators such as Dr. Snoke have contributed to the state of patient care today. Albert Waldo Snoke was director of the Grace-New Haven Hospital in New Haven, Connecticut from 1946 until 1969. In New Haven, Dr. Snoke also taught hospital administration at Yale University and oversaw the development of the Yale-New Haven Hospital, serving as its executive director from 1965-1968. From 1969-1973, Dr. Snoke worked in Illinois as coordinator of health services in the Office of the Governor and later as acting executive director of the Illinois Comprehensive State Health Planning Agency. Dr. Snoke died in April 1988. ********* 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. * * * End of Transmission * * *