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

                          E U R O P E

          Thursday, September 8, 2022, Vol. 23, No. 174

                           Headlines



C Y P R U S

BANK OF CYPRUS: S&P Upgrades ICRs to 'BB-/B', Outlook Stable


I R E L A N D

MADISON PARK VII: Fitch Hikes Rating on Class F Notes to B+sf


N E T H E R L A N D S

BRIGHT BIDCO: Moody's Downgrades CFR to C Following Ch. 11 Filing


S P A I N

AUTONORIA SPAIN 2022: Moody's Assigns (P)B3 Rating to Cl. F Notes


S W E D E N

SAS AB: Expects Cost Savings of US$200 Million from New CBA
SAS AB: U.S. Trustee Wants SEB Out as Adviser
SAS AB: Warns That Much More Needed in Restoring Financial Health


U N I T E D   K I N G D O M

EURO PACIFIC: HMRC Calls on British Clients to Hand Over Tax Info
MIDAS GROUP: Devon Office Building Sold for GBP1 Million
NRS UK: Goes Into Administration as Supply Chain Costs Soar
STRAWINSKY I: S&P Withdraws 'CC' Rating on Class E Notes
[*] UK: Thousands of Businesses at Risk Amid Soaring Energy Bills



X X X X X X X X

[*] EUROPE: Weaker Airlines Face Risk of Collapse This Winter

                           - - - - -


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C Y P R U S
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BANK OF CYPRUS: S&P Upgrades ICRs to 'BB-/B', Outlook Stable
------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on
Bank of Cyprus Public Co. Ltd. (BoC) to 'BB-' from 'B+'. S&P also
raised the long-term rating on its nonoperating holding company
(NOHC), Bank of Cyprus Holdings PLC, to 'B' from 'B-'. In addition,
S&P raised its long-term resolution counterparty rating on BoC to
'BB+' from 'BB'.

S&P said, "At the same time, we affirmed our 'B' short-term issuer
credit ratings on both entities and the short-term resolution
counterparty rating. We also affirmed the subordinated debt rating
on the NOHC. The outlook is stable for both entities.

"Despite the negative effects of the Russia-Ukraine conflict, we
expect that Cyprus' growth prospects and creditworthiness should
remain resilient. Following Cyprus' strong rebound in growth in the
first half of 2022, we now forecast 4.5% growth in 2022 and 2.9% on
average in 2023-2025. Funds from the EU Resilience and Recovery
Fund, coupled with structural reforms, should support economic
activity over the next two years. Additionally, Cyprus' tourism
sector performed well in the first half of 2022 despite the full
loss of Russian tourists, which represented over 20% of total
arrivals in recent years.

Cypriot banks have made substantial progress in the clean-up of
problematic loans since 2018 and improved underwriting standards.
Following four years of NPL sales, debt-to-asset swaps, loan
recoveries, and write-offs, systemwide legacy NPLs have reduced by
more than EUR7 billion or 71% since 2018. Furthermore, banks' risk
profiles have so far proven resilient to the effects of COVID-19,
with only 3% of loans that benefitted from the widely used
moratoriums becoming nonperforming. Banks are maintaining stricter
underwriting standards, which should contribute to lower asset
quality deterioration in coming quarters. Average loan-to-value on
new household mortgages stood at a comfortable 45.5% at end-2021.
The clean-up is not finished, though. NPLs remain high compared
with the EU average, at 11.4% of gross loans for the system as of
end-May 2022 (or about 16%-18% adding foreclosed assets).

S&P said, "We expect the global protracted inflation, higher energy
prices, and indirect effects from Russia being a relevant
trade-partner will impact Cypriot banks, but within manageable
levels. We understand that Cypriot banks' direct exposure to Russia
and Ukraine is very limited, and indirect risks are mostly linked
to the professional and business sector, which should reduce trade
flows from Russian businesses. However, we estimate that banks'
exposure to this sector is limited to less than 2% of the system's
loans. That said, while NPLs are covered 50% by provisions, we
expect a slower reduction going forward. This is because sales will
become more difficult and the bulk of the remaining NPLs are
household NPLs, which are more granular and could be difficult to
offload. In our forecasts, we assume new NPL inflows particularly
stemming from loans classified as stage 2, which stand at about 15%
of gross loans for Cyprus compared with a 9% EU average. Thus, we
expect the Cypriot banking system's NPL ratio will stand close to
10% over the next 12-18 months."

Banks in Cyprus remain relatively more exposed to cyclical sectors
and private sector leverage is higher than for EU peers. S&P sees
banks' exposure to real estate and construction (14% of system
loans) and the still recovering tourism sector (10%) as a
structural issue linked to the small, open nature of the economy,
with small-and medium enterprises' financing largely collateralized
with real estate. Although sector concentration has gradually
declined in the past five years, it is still relevant. Private
sector debt remains high (177% of GDP at end-2021) although it has
resumed its downward trend that halted due to COVID-19.

Banks also remain under pressure to turn around their
profitability, and the higher share of nonresident deposits create
volatility risks to their funding. Nonresident deposits have
declined in recent years, but still represent a material 17% of
total customer deposits as of end-June 2022. Banks' ability to
reduce network operating costs and become more digital is key to
improving their efficiency, which stood at 73% in 2021. That said,
rising rates should provide tailwinds to banks' net intertest
income because loan books are largely floating.

The upgrade on BoC reflects the material improvements achieved in
reducing its problem loans, placing the bank on a stronger footing
to face a potentially more challenging environment. BoC has managed
a 96% cumulative reduction of its stock of NPLs since its peak in
2014, through a mix of market sales and organic efforts. NPLs
represented 5.7% of gross loans at end-June 2022, pro forma the
latest NPL transaction--the so-called Helix 3, expected to be
completed by the end of the year. This compares with 30% at
end-2019. Similar to peers', BoC's borrowers will likely be
affected by higher-for-longer inflation and surging energy prices.
S&P said, "We expect that stage 2 loans (representing 20% of loans
as of end-June 2022) will be the main source of potential asset
quality deterioration and forecast that BoC's NPL ratio could
deteriorate by 150 basis points (bps)-200 bps over the next 12-18
months, still sustainably below 10% of gross loans. We forecast
that cumulative credit losses will reach about 1.7% over the same
period of time."

The easing economic risks in Cyprus support BoC's adequate
capitalization and provide some buffer to accommodate growth. S&P
said, "We estimate that lower economic risk will have a positive
effect of 115 bps on BoC's risk-adjusted capital (RAC) ratio, which
stood at 8% at end-2021, pro forma Helix 3. Thus, we expect that
BoC's capitalization will stay sustainably above 7% over the next
18 months, providing some cushion to moderately grow its loan book
and accommodate potentially higher credit losses. We also
anticipate that the quality of capital will compare favorably to
that of Greek peers, which, unlike BoC, hold large amounts of
deferred tax credits on their books."

The rating on the subordinated tier 2 instrument issued by the NOHC
under the Euro Medium-Term Note program is affirmed at 'CCC'. S&P
said, "This is because we deduct three notches from the NOHC
stand-alone credit profile ('b'), accounting for the risk that, in
case of need, the regulator could force the conversion of the
hybrid instruments that are part of the bank's regulatory capital
into common equity. We also deduct two notches for subordination
risk. Prior to the rating action, we only deducted two notches for
subordination risk to properly capture the default risk of the
instrument, in accordance with our 'CCC' methodology."

The stable outlook on BoC and BoC Holdings over the next 12-18
months balances its improved risk profile and capitalization
against the need to improve its efficiency and profitability. S&P
expects management will remained focused on keeping asset quality
under control and translating recent voluntary staff reductions
into cost savings. S&P forecasts BoC's cost-to-income ratio will
reach about 63% by end-2023, compared with over 70% in 2021.

S&P said, "We could lower the ratings if BoC's credit quality
appeared likely to deteriorate much more than we currently
anticipate. This, for example, could happen if borrowers' repayment
capacity was pressured due to lower disposable income.

"In addition, we could lower the ratings on BoC Holdings if we saw
a lower likelihood of the bank meeting its obligations toward the
NOHC.

"An upgrade is unlikely in the current environment. However, we
could raise the long-term rating on BoC in the next 12-18 months if
we see progress in increasing Cypriot banks' efficiency, or if BoC
sustainably improves its cost to income and bottom-line results to
levels closer to those of higher-rated peers, whilst keeping credit
provisions under control."

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




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I R E L A N D
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MADISON PARK VII: Fitch Hikes Rating on Class F Notes to B+sf
-------------------------------------------------------------
Fitch Ratings has upgraded Madison Park Euro Funding VII DAC's
class F notes and revised the Outlooks on the class B to E notes to
Stable from Positive.

                   Rating          Prior
                   ------          -----

Madison Park Euro Funding VII DAC
  
A XS1822369341   LT AAAsf  Affirmed  AAAsf
B-1 XS1822370273 LT AA+sf  Affirmed  AA+sf
B-2 XS1823155756 LT AA+sf  Affirmed  AA+sf
B-3 XS1823157299 LT AA+sf  Affirmed  AA+sf
C-1 XS1822370869 LT A+sf   Affirmed  A+sf
C-2 XS1823158180 LT A+sf   Affirmed  A+sf
D XS1822371594   LT BBB+sf Affirmed  BBB+sf
E XS1822372139   LT BB+sf  Affirmed  BB+sf
F XS1822372568   LT B+sf   Upgrade   B-sf

TRANSACTION SUMMARY

Madison Park Euro Funding VII is a cash flow CLO mostly comprising
senior secured obligations. The portfolio is managed by Credit
Suisse Asset Management and its reinvestment period ended on 25t
August 2022.

KEY RATING DRIVERS

Transaction Outside Reinvestment Period: Despite the transaction
having exited its reinvestment period the manager can reinvest
unscheduled principal proceeds and sale proceeds from credit-risk
obligations.

Given the manager's flexibility to reinvest, Fitch's analysis is
based on a stressed portfolio where the weighted average rating
factor (WARF), weighted average recovery rate (WARR), weighted
average spread (WAS), weighted average life (WAL) and fixed-rate
exposure have been tested to their current limits.

Further, Fitch has applied a haircut of 1.5% to the stressed WARR
covenant to reflect the old recovery rate definition in the
transaction documents, which can result in on average a 1.5%
inflation of the WARR relative to Fitch's latest CLO Criteria. The
shorter WAL covenant of 4.5 years incorporated in Fitch-stressed
portfolio analysis than in previous reviews, together with the
average stable performance of the transaction to date, led to the
upgrade of class F notes and affirmation of all other notes.

Limited Deleveraging Expectation: The Stable Outlooks, including
today's Outlook revision to the notes, reflect Fitch's expectation
that deleveraging of the notes would be constrained in the next
12-18 months by a small portion of assets maturing by 2023 and
limited prepayment prospects in the current uncertain macroeconomic
environment.

The Stable Outlooks on all notes also reflect Fitch's expectation
of sufficient credit protection to withstand potential
deterioration in the credit quality of the portfolio in scenarios
that are commensurate with their current ratings.

Resilient Asset Performance: The transaction's metrics indicate
resilient asset performance. Despite the transaction being 0.72%
below par, it is passing all collateral-quality, coverage and
portfolio-profile tests. Exposure to assets with a Fitch-derived
rating (FDR) of 'CCC+' and below as calculated by the trustee is
5.32%.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the obligors at 'B'/'B-'. The Fitch-calculated weighted WARF of the
current portfolio reported by the trustee was 33.43 as of 12 July
2022 versus the covenanted maximum of 35.

High Recovery Expectations: Senior secured obligations comprise
98.21% of the portfolio. Fitch views the recovery prospects for
these assets as more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch-calculated WARR of the current
portfolio reported by the trustee is 66% versus a covenanted
minimum of 61.85%.

Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top- 10 obligor
concentration calculated by Fitch is 12.43%, and no obligor
represents more than 1.41% of the portfolio balance as calculated
by Fitch.

Cash Flow Modelling: Fitch used a customised proprietary cash flow
model to replicate the principal and interest waterfalls and the
various structural features of the transaction, and to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par- value and interest-coverage
tests.

Deviation from Model-implied Ratings: The class B-1, B-2, and B-3
notes' 'AA+sf' ratings are a notch lower than their model-implied
ratings (MIR) to reflected limited cushion on the Fitch-stressed
portfolio at their MIRs.

RATING SENSITIVITIES

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

An increase of the default rate (RDR) at all rating levels by 25%
of the mean RDR and a decrease of the recovery rate (RRR) by 25% at
all rating levels of the current portfolio will result in
downgrades of no more than two notches depending on for the rated
notes.

While not Fitch's base case, downgrades may occur if build-up of
the notes' credit enhancement following amortisation does not
compensate for a larger loss expectation than initially assumed due
to unexpectedly high levels of defaults and portfolio
deterioration.

Due to the better metrics of the current portfolio than that of the
Fitch-stressed portfolio and the rating deviation from MIRs, the
class B notes and E notes have a rating cushion of one notch, class
D notes a rating cushion of three notches, class F notes a rating
cushion of two notches while other classes of notes have no rating
cushion.

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

A reduction of the RDR at all rating levels by 25% of the mean RDR
and an increase in the RRR by 25% at all rating levels of the
Fitch-stressed portfolio would result in upgrades of up to three
notches depending on the notes, except for the 'AAAsf' rated
notes.

Further upgrades, except for the class 'AAAsf' rated notes may
occur on stable portfolio credit quality and deleveraging, leading
to higher credit enhancement and excess spread available to cover
losses in the remaining portfolio.




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N E T H E R L A N D S
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BRIGHT BIDCO: Moody's Downgrades CFR to C Following Ch. 11 Filing
-----------------------------------------------------------------
Moody's Investors Service has downgraded the long term corporate
family rating of Bright Bidco B.V. (BBBV or Lumileds) to C from
Caa3 and the probability of default rating to D-PD from Caa3-PD.
Concurrently, Moody's downgraded to C from Caa3 the senior secured
term loan B (TLB) rating and the $100 million senior secured
revolving credit facility rating, both with BBBV as the borrower.
The outlook has been changed to stable from negative. The rating
action followed the filing of petitions by Lumileds Holding B.V.
and nine of its affiliates including BBBV seeking relief under
chapter 11 of the United States Bankruptcy Code.

RATINGS RATIONALE

Lumileds Holding B.V. (the company), announced on August 29, 2022
that it has entered into a restructuring support agreement (RSA)
with its lenders holding a significant majority of the loans
outstanding under its prepetition first lien debt facility on the
terms of a comprehensive financial restructuring. The transaction
addresses the unsustainable capital structure, a key problem of
Lumileds. As a result of a high debt load resulting from a
significant debt funded special dividend distributions in 2018
combined with an ongoing challenging business environment leading
to weak profitability and negative free cash flow, leverage reached
18.1x debt/EBITDA as of March 31, 2022.

According to the RSA, it is planned to significantly de-leverage
and strengthen the company's balance sheet reducing its debt by
approximately $1.3 billion to $400 million comprising of takeback
debt and post-petition loans, combined into a 5-year exit facility.
The significant haircut is reflected in the downgraded C instrument
ratings.

The RSA also contemplates a in debtor-in-possession ("DIP")
financing of up to $275 million, available as part of the Chapter
11 process, expected to be converted post emergence, forming part
of the $400 million exit facility. The DIP financing, together with
the company's available cash reserves and cash provided by
operations, is expected by management to provide sufficient
liquidity for Lumileds to continue meeting its ongoing obligations,
including all obligations to customers, vendors, and suppliers, as
well as employee wages, salaries, and benefits programs.

In that respect a narrowly focused prepackaged Chapter 11 plan
involving only Lumileds' U.S. and Dutch entities has commenced in
the U.S. Bankruptcy Court for the Southern District of New York.
Interim approval for all the first day motions related to this
prepackaged Chapter 11 filed on August 29, 2022 has been given by
the respective court in the meantime. Lumileds' European, Asian,
and other foreign subsidiaries and affiliates are not included in
the filing and are unaffected by the Chapter 11 process. The
company has obtained the necessary support from its lenders to
confirm the plan prior to commencing its proceedings and expects to
meet the requirements to confirm the plan and emerge from Chapter
11 within approximately sixty days.

The company stresses that none of its business operations outside
of the United States and the Netherlands are part of the Chapter 11
proceeding. "First day" motions have been filed to obtain the
requisite court authority for it to continue operating its
businesses and facilities in the ordinary course without disruption
to its customers, vendors, suppliers, or employees. As part of
these first day motions, court approval has been sought to continue
to pay all valid amounts owed to vendors and suppliers as they come
due. In addition, the company expects that employees will continue
to receive their usual wages and benefits without interruption.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Manufacturing
published in September 2021.



=========
S P A I N
=========

AUTONORIA SPAIN 2022: Moody's Assigns (P)B3 Rating to Cl. F Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to Notes to be issued by AUTONORIA SPAIN 2022, FONDO DE
TITULIZACION:

EUR [ ]M Class A Asset Backed Floating Rate Notes due January
2040, Assigned (P)Aa1 (sf)

EUR [ ]M Class B Asset Backed Floating Rate Notes due January
2040, Assigned (P)Aa3 (sf)

EUR [ ]M Class C Asset Backed Floating Rate Notes due January
2040, Assigned (P)A3 (sf)

EUR [ ]M Class D Asset Backed Floating Rate Notes due January
2040, Assigned (P)Baa2 (sf)

EUR [ ]M Class E Asset Backed Floating Rate Notes due January
2040, Assigned (P)Ba2 (sf)

EUR [ ]M Class F Asset Backed Floating Rate Notes due January
2040, Assigned (P)B3 (sf)

Moody's has not assigned a rating to the Class G Asset Backed
Floating Rate Notes due January 2040 amounting to EUR [ ]M.

RATINGS RATIONALE

The transaction is a six-month revolving cash securitisation of
auto loans extended to obligors in Spain by Banco Cetelem S.A.U.
(Banco Cetelem, NR). Banco Cetelem, acting also as servicer in the
transaction, is a specialized lending company 100% owned by BNP
Paribas Personal Finance (Aa3/P-1/Aa3(cr)/P-1(cr)).

The portfolio of underlying assets consists of auto loans
originated in Spain. The loans are originated via intermediaries or
directly through physical or online point of sale and they are all
fixed rate, annuity style amortising loans with no balloon or
residual value risk, the market standard for Spanish auto loans.
The final portfolio will be selected at random from the portfolio
to match the final note issuance amount.

As of July 28 2022, the pool had 39,918 loans with a weighted
average seasoning of 0.9 years, and a total outstanding balance of
approximately EUR536 million. The weighted average remaining
maturity of the loans is 74.7 months. The securitised portfolio is
highly granular, with top 10 borrower concentration at 0.13% and
the portfolio weighted average interest rate is 7.35%. The
portfolio is collateralised by 46.4% new cars, 47% used or semi-new
cars, 0.8% recreational vehicles and 5.8% motorcycles. The ratings
are primarily based on the credit quality of the portfolio, the
structural features of the transaction and its legal integrity.

According to Moody's, the transaction benefits from credit
strengths such as the granularity of the portfolio, the excess
spread-trapping mechanism through a 5 months artificial write-off
mechanism, the high average interest rate of 7.35% and the
financial strength of BNP Paribas Group. Banco Cetelem, the
originator and servicer, is not rated. However, it is 100% owned by
BNP Paribas Personal Finance (Aa3/P-1, Aa3(cr)/P-1(cr)).

However, Moody's notes that the transaction features some credit
weaknesses such as (i) six-month revolving structure which could
increase performance volatility of the underlying portfolio,
partially mitigated by early amortisation triggers, revolving
criteria both on individual loan and portfolio level and the
eligibility criteria for the portfolio, (ii) a complex structure
including interest deferral triggers for juniors notes, pro-rata
payments on all classes of notes after the end of the revolving
period, (iii) a fixed-floating interest rate mismatch as 100% of
the loans are linked to fixed interest rates and the classes A-G
are all floating rate indexed to one month Euribor, mitigated by
three interest rate swaps provided by Banco Cetelem (NR) and
guaranteed by BNP Paribas (Aa3(cr)/P-1(cr), Aa3/P-1)).

Moody's analysis focused, amongst other factors, on (1) an
evaluation of the underlying portfolio of receivables and the
eligibility criteria; (2) the revolving structure of the
transaction; (3) historical performance on defaults and recoveries
from the Q1 2014 to Q1 2022 vintages provided on Banco Cetelem's
total book; (4) the credit enhancement provided by the excess
spread and the subordination; (5) the liquidity support available
in the transaction by way of principal to pay interest for Classes
A-E (and F-G when they become the most senior class) and a
dedicated liquidity reserve only for Classes A-F, and (6) the
overall legal and structural integrity of the transaction.

Moody's determined the portfolio lifetime expected defaults of
3.5%, expected recoveries of 15.0% and portfolio credit enhancement
("PCE") of 13.0%. The expected defaults and recoveries capture
Moody's expectations of performance considering the current
economic outlook, while the PCE captures the loss Moody's expect
the portfolio to suffer in the event of a severe recession
scenario. Expected defaults and PCE are parameters used by Moody's
to calibrate its lognormal portfolio loss distribution curve and to
associate a probability with each potential future loss scenario in
Moody's cash flow model to rate Auto and Consumer ABS.

Portfolio expected defaults of 3.5% are in line with Spanish Auto
loan ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account (i) historic
performance of the book of the originator, (ii) other similar
transactions used as a benchmark, and (iii) other qualitative
considerations.

Portfolio expected recoveries of 15.0% are lower than the Spanish
Auto loan ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account (i) historic
performance of the book of the originator, (ii) benchmark
transactions, and (iii) other qualitative considerations.

PCE of 13.0% is in line with Spanish Auto loan ABS average and is
based on Moody's assessment of the pool taking into account (i) the
unsecured nature of the loans, and (ii) the relative ranking to the
originators peers in the Spanish and EMEA consumer ABS market. The
PCE level of 13.0% results in an implied coefficient of variation
("CoV") of approximately 53.3%.

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" 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 of the notes would be (1) better than expected performance
of the underlying collateral; (2) significant improvement in the
credit quality of Banco Cetelem; or (3) a lowering of Spain's
sovereign risk leading to the removal of the local currency ceiling
cap.

Factors or circumstances that could lead to a downgrade of the
ratings would be (1) worse than expected performance of the
underlying collateral; (2) deterioration in the credit quality of
Banco Cetelem; or (3) an increase in Spain's sovereign risk.



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S W E D E N
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SAS AB: Expects Cost Savings of US$200 Million from New CBA
-----------------------------------------------------------
Reuters reports that crisis-hit Scandinavian airline SAS sees
savings of US$200 million through 2026 from a new collective
bargaining deal reached with most of its pilots following a
crippling two-week strike in July.

The flag carrier, pressured for years by low-cost rivals and
ravaged by the pandemic, in February announced a big restructuring
plan, and on the second day of the strike sought U.S. bankruptcy
protection, Reuters recounts.

The Troubled Company Reported previously reported that SAS has
estimated the industrial action cost it more than $145 million
during what is normally the profitable peak summer travel season.

"The cost savings of approximately US$200 million through 2026
provided for in the New CLA's (collective labour agreements) are an
essential component of the SAS FORWARD plan," Reuters quotes
lawyers representing SAS as saying in a document filed Sept. 3 to
the bankruptcy court.

According to the TCR, majority of their members of the unions in
Norway and Sweden backed the deal, which entails lower wages and
longer hours for the pilots but also a commitment from SAS, whose
biggest owners are the governments of Sweden and Denmark, to rehire
pilots laid off during the pandemic.

Pilots were also given a guarantee that SAS will not set up new
subsidiaries on different terms than what has now been agreed,
Dansk Metal, the union representing Danish pilots, said in a
statement.

SAS in July said the deal landed with pilots would help it achieve
part of the US$700 million of annual cost savings set out in the
restructuring plan known as SAS FORWARD, Reuters relates.

The new collective bargaining deal, however, needs approval by a US
court handling creditors' interests in the Chapter 11 process, adds
the report.

                  About Scandinavian Airlines

SAS SAB, Scandinavia's leading airline, with main hubs in
Copenhagen, Oslo and Stockholm, is flying to destinations in
Europe, USA and Asia. Spurred by a Scandinavian heritage and
sustainable values, SAS aims to be the global leader in sustainable
aviation.  The airline will reduce total carbon emissions by 25
percent by 2025, by using more sustainable aviation fuel and its
modern fleet with fuel-efficient aircraft.  In addition to flight
operations, SAS offers ground handling services, technical
maintenance and air cargo services. SAS is a founder member of the
Star Alliance, and together with its partner airlines offers a wide
network worldwide. On the Web: https://www.sasgroup.net

SAS AB and its affiliates, including Scandinavian Airlines Systems
Denmark-Norway-Sweden and Scandinavian Airlines of North America
Inc., sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 22-10925) on July 5, 2022. In the
petition filed by Erno Hilden, as authorized representative, the
Debtor SAS AB estimated assets between $10 billion and $50 billion
and liabilities between $1 billion and $10 billion.

Weil, Gotshal & Manges LLP is serving as global legal counsel and
Mannheimer Swartling Advokatbyra AB is serving as Swedish legal
counsel to SAS.  Seabury Securities LLC and Skandinaviska Enskilda
Banken AB are serving as investment bankers, Seabury is also
serving as restructuring advisor.  FTI Consulting is serving as
financial advisor.  Kroll Restructuring Advisors is the claims
agent.

SAS AB: U.S. Trustee Wants SEB Out as Adviser
---------------------------------------------
Kati Pohjanpalo of Bloomberg News reports that the United States
objects to Scandinavian carrier SAS AB retaining SEB AB as
co-investment banker during its restructuring, citing a conflict
of
interest for SEB Chairman Marcus Wallenberg.

The US Trustee, a Justice Department body that serves an oversight
function, asked that the bankruptcy court administering SAS's
Chapter 11 restructuring deny the airline's request to engage SEB,
according to court documents.  The Trustee's objection was first
reported by Norway's E24.no.

                   About Scandinavian Airlines

SAS SAB, Scandinavia's leading airline, with main hubs in
Copenhagen, Oslo and Stockholm, is flying to destinations in
Europe, USA and Asia. Spurred by a Scandinavian heritage and
sustainable values, SAS aims to be the global leader in
sustainable
aviation.  The airline will reduce total carbon emissions by 25
percent by 2025, by using more sustainable aviation fuel and our
modern fleet with fuel-efficient aircraft.  In addition to flight
operations, SAS offers ground handling services, technical
maintenance and air cargo services. SAS is a founder member of the
Star Alliance, and together with its partner airlines offers a
wide
network worldwide. On the Web:  @ www.sasgroup.net

SAS AB and its affiliates, including Scandinavian Airlines Systems
Denmark-Norway-Sweden and Scandinavian Airlines of North America
Inc., sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 22-10925) on July 5, 2022. In the
petition filed by Erno Hildén, as authorized representative,
the
Debtor SAS AB estimated assets between $10 billion and $50 billion
and liabilities between $1 billion and $10 billion.

Weil, Gotshal & Manges LLP is serving as global legal counsel and
Mannheimer Swartling Advokatbyra AB is serving as Swedish legal
counsel to SAS.  Seabury Securities LLC and Skandinaviska Enskilda
Banken AB are serving as investment bankers, Seabury is also
serving as restructuring advisor.  FTI Consulting is serving as
financial advisor.  Kroll Restructuring Advisors is the claims
agent.

SAS AB: Warns That Much More Needed in Restoring Financial Health
-----------------------------------------------------------------
SAS AB, which is working its way through a Chapter 11
restructuring
in the US, cautioned that much more remains to be done to convince
stakeholders to invest in the ailing Scandinavian carrier.

The airline also needs to overcome the impact of a pilot strike
and
travel disruptions that hobbled its key summer season, just as the
price of jet fuel has soared and inflation accelerates.

During the third quarter, SAS continued to see increased demand as
travel restrictions were eased, but noted that the 15-day pilot
strike in July and major operational disruptions affecting the
whole airline industry and its Chapter 11 filing on July 5
affected
results during the quarter.

The Company said that for the third quarter period of May to July
2022, it recorded revenue of SEK 8.580 billion (from SEK 3.982
billion in the same period in 2021) and a net loss of SEK 1.848
billion (from SEK 1.336 billion in the same period in 2021).
Compared with the previous quarter passengers flying with SAS
increased 30% and the flown load factor reached approximately 78%,
up 11 percentage points.

On July 5, SAS voluntarily filed for chapter 11, a legal process
for financial restructuring in the U.S. The chapter 11 process
aims
to accelerate the implementation of our transformation plan SAS
FORWARD, and ultimately to enable us to become a financially
strong, profitable and competitive company for years to come.

After the close of the quarter, SAS secured a debtor-in-possession
(DIP) financing commitment for USD 700 million from Apollo Global
Management. This substantial financing commitment is an important
milestone in its transformation and it gives us a strong financial
position to support its operations throughout the chapter 11
process.  The DIP financing is subject to court approval in the
U.S., and SAS anticipates receiving approval for the DIP financing
by mid-September 2022

SAS continues to strengthen its North America network and has
established direct summer routes to Toronto from Copenhagen and
Stockholm.  During the coming winter season, SAS will continue to
operate all its pre-pandemic U.S. routes for its travelers.

SAS notes that the ongoing geopolitical situation in Eastern
Europe
and the accompanying uncertainties as well as the lingering
effects
of the COVID-19 pandemic makes it impossible to provide any
guidance on the financial performance for the coming fiscal year.

"Over the past two years, the COVID-19 pandemic has significantly
affected the whole aviation industry, including SAS.  And in some
parts of the world, residual effects such as travel restrictions
still remain in place. Substantially rising demand for travel is
having a significant impact and the industry is struggling to
recover quickly enough to meet this positive trend.  Accordingly,
total travel volumes remain lower than before the start of the
pandemic in March 2020.  The current geopolitical
situation and turbulence in Eastern Europe is also affecting the
airline industry and, inter alia, is impacting the recovery of
traffic to and from Asia. Due to the current market conditions in
the aviation industry, estimation remains uncertain, which poses
difficulty for forecasts and scenario analyses related to future
demand, primarily in the short term," SAS said in its third
quarter
report.

                   About Scandinavian Airlines

SAS SAB, Scandinavia's leading airline, with main hubs in
Copenhagen, Oslo and Stockholm, is flying to destinations in
Europe, USA and Asia.  Spurred by a Scandinavian heritage and
sustainable values, SAS aims to be the global leader in
sustainable
aviation.  The airline will reduce total carbon emissions by 25
percent by 2025, by using more sustainable aviation fuel and its
modern fleet with fuel-efficient aircraft.  In addition to flight
operations, SAS offers ground handling services, technical
maintenance and air cargo services. SAS is a founder member of the
Star Alliance, and together with its partner airlines offers a
wide
network worldwide. On the Web:  @ www.sasgroup.net/

SAS AB and its affiliates, including Scandinavian Airlines Systems
Denmark-Norway-Sweden and Scandinavian Airlines of North America
Inc., sought protection under Chapter 11 of the U.S. Bankruptcy
Code (Bankr. S.D.N.Y. Case No. 22-10925) on July 5, 2022.  The
Debtor SAS AB estimated assets between $10 billion and $50 billion
and liabilities between $1 billion and $10 billion.

Weil, Gotshal & Manges LLP is serving as global legal counsel and
Mannheimer Swartling Advokatbyra AB is serving as Swedish legal
counsel to SAS.  Seabury Securities LLC and Skandinaviska Enskilda
Banken AB are serving as investment bankers, Seabury is also
serving as restructuring advisor.  FTI Consulting is serving as
financial advisor.  Kroll Restructuring Advisors is the claims
agent.



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

EURO PACIFIC: HMRC Calls on British Clients to Hand Over Tax Info
-----------------------------------------------------------------
Louis Goss at City A.M. reports that HM Revenues and Customs has
called on Euro Pacific Bank's British customers to hand over
information about their tax affairs, following the launch of a tax
evasion probe into the Puerto Rican bank.

According to City A.M., the UK taxman called on the around 600
people in the UK who used Euro Pacific Banks services to come
forward after it launched an investigation into offshore tax
evasion and money laundering.

"Anyone with an account at this bank should come and speak to us
before we come and speak to you," City A.M.  quotes HMRC's director
of fraud investigations, Simon York, as saying.

HMRC has already launched criminal investigations into a number of
the bank's customers, after Euro Pacific was suspended from
trading, and later collapsed into administration, earlier this
year.

"We have tax enquiries, criminal investigations and intelligence
operations already underway involving this bank and there will be
more to come," York said, notes the report.

Lisa Vanderheide, tax director at law firm Stewarts, said criminal
investigations will likely be targeted towards "high profile
individuals" and those involved in "particularly egregious" cases
involving "large sums of money".

The tax lawyer said any former Euro Pacific Bank customers who have
received a letter from HMRC should "act quickly and take advice as
to whether a disclosure is required," adds the report.


MIDAS GROUP: Devon Office Building Sold for GBP1 Million
--------------------------------------------------------
William Telford at Plymouth Live reports that a Devon office
building owned by South West construction giant Midas has been sold
for GBP1 million but the proceeds will only make a small dent in
the GBP70 million owed from the firm's collapse.

According to Plymouth Live, the former Midas offices in Newton
Abbot have been acquired by business accountancy and tax firm
Marsland Nash Associates.

Exeter-headquartered Midas Group and its subsidiaries Midas
Construction, Midas Retail, Mi-Space (UK), Mi-Space Property
Services, Midas Commercial Developments and Falmouth Developments
all fell into administration in January 2022 blaming a toxic
cocktail of Covid, inflation, money owed to them but not paid, and
cash flow problems for causing a financial doomsday, Plymouth Live
recounts.

Midas' Newton Abbot building, along with another Midas block in
Newport, were listed as assets by administrators at global business
advisory firm Teneo Financial Advisory, Plymouth Live notes.  They
are worth a combined GBP2.7 million and are being sold to pay
millions of pounds of debts, Plymouth Live states.

Meanwhile, the detached, two-storey Exeter building formerly known
as Midas House is still on the market for a new tenant, according
to Plymouth Live.  It was not owned by any of the Midas group of
companies and so any income from a new lease will not go to
administrators dealing with claims from nearly 2,000 creditors,
Plymouth Live discloses.

The building is understood to be owned by former directors of Midas
and is therefore not an asset.  It is vacant and being marketed by
property experts at JLL under the name of its address 7 Woodwater
Park, Pynes Hill, Exeter, Plymouth Live says.

However, joint agents Vickery Holman and PACT Property & Assets
have now completed the freehold disposal of the building on
Silverhills Road, Newton Abbot, which was owned by Midas, Plymouth
Live notes.  The property consists of a part vacant
high-specification office building with parking for 35 cars set
within a landscaped forecourt, according to Plymouth Live.


NRS UK: Goes Into Administration as Supply Chain Costs Soar
-----------------------------------------------------------
Grant Prior at Construction Enquirer reports that FRP Advisory have
been appointed joint administrators of Livingston-based NRS UK
which employed 47 staff and had a turnover of GBP33 million.

FRP said the administration has been caused by spiralling supply
chain costs in 2022 magnified by severe losses stemming from fixed
price contracts, resulting in recent unsustainable cash flow and
financial problems, Construction Enquirer relates.

The business has ceased trading with immediate effect and 45 staff
have been made redundant with two retained to assist in the short
term with the administration process, Construction Enquirer
discloses.

According to Construction Enquirer, Michelle Elliot, partner and
joint administrator said: "NRS UK is an established and highly
regarded civil engineering and energy construction specialist with
an impressive portfolio of projects across Scotland and England.

"The business has been exposed to the well-documented problems of
surging costs affecting supply chains and from fixed price
contracts that resulted in involuntary losses.

"Despite the best efforts of the sole director, the business faced
a range of cash flow challenges in recent weeks due to these issues
and could not continue trading."

"We will now market the business and assets of the business for
sale and would encourage any interested parties to make contact as
soon as possible."


STRAWINSKY I: S&P Withdraws 'CC' Rating on Class E Notes
--------------------------------------------------------
S&P Global Ratings has withdrawn its 'CC' rating on Strawinsky I
PLC's class E notes at the issuer's request.


[*] UK: Thousands of Businesses at Risk Amid Soaring Energy Bills
-----------------------------------------------------------------
Oliver Smith and Simon Jack at BBC News report that tens of
thousands of businesses are at risk of going under without
government support because of soaring energy bills, according to
insolvency experts.

Red Flag Alert, which monitors the financial health of firms, told
the BBC previously profitable companies are experiencing
significant losses.

According to the BBC, the consultancy said among those that
survive, many will be forced to make workers redundant.

Firms are waiting to hear if they will get help with their energy
bills, the BBC notes.

On Sept. 8 the government, led by new Prime Minister Liz Truss, is
expected to announce significant financial support for households
facing an 80% rise in the energy price cap in October, the BBC
discloses.

Businesses are not covered by the cap, however, and Red Flag is
warning that more than 75,000 larger firms that are high energy
users are at risk of insolvency or are likely to lay off staff
without government support, the BBC says.

The government's plan is expected to include some relief for
businesses -- but details are not yet known, the BBC notes.

According to Red Flag, many firms will face a choice between paying
wages or paying energy bills, the BBC discloses.

According to Red Flag Alert, there are 355,000 companies with a
turnover higher than GBP1 million that are designated as high
energy users -- industries such as steel, glass, concrete, and
paper production, the BBC notes. Of those, the company estimates
75,972 are at risk of insolvency, and they estimate 26,720 of them
could fail because of energy costs, the BBC relays.  That is in
addition to the 26,000 insolvencies they had already predicted this
year, according to the BBC.

"That is a colossal number of people whose businesses will fail,
without a large-scale support package from the government", the BBC
quotes Ms. Headlam as saying.  "That's more than during the
pandemic, and more than in any other recession.

"A business turning over a million pounds two years ago would have
spent around 8% of that on energy costs and made profits of around
GBP90,000.

"If the cost of energy doubles to 16%, that instantly wipes out
profitability, and they're straight into a scenario where it
threatens the viability of the business within a year."

Beyond the large, energy-intensive companies, smaller companies
with turnover under GBP1 million, were also at risk of failure, Red
Flag Alert, as cited by the BBC, said.  It highlighted the
hospitality sector where firms face a triple threat of increasing
energy bills, higher supply and staffing costs, and a fall-off in
consumer spending, squeezed by inflation, according to the BBC.

Red Flag Alert calculates businesses overall will need GBP100
billion a year in support to tackle the rise in energy bills, the
BBC states.




===============
X X X X X X X X
===============

[*] EUROPE: Weaker Airlines Face Risk of Collapse This Winter
-------------------------------------------------------------
Christopher Jasper at Bloomberg News reports that Europe's weaker
airlines face a heightened risk of collapse this winter as nations
that rescued carriers during the Covid crisis focus support
elsewhere amid rising inflation, according to analysts at Sanford
C. Bernstein.

Mr. Bernstein said in an investor note on Sept. 5 that while the
pandemic brought few airline failures in the region amid a deluge
of aid payments, carriers now face a squeeze from higher fuel and
labor costs combined with a seasonal decline in travel, Bloomberg
relates.  That's just as governments struggle to respond to soaring
household bills, Bloomberg notes.

According to Bloomberg, smaller carriers in Central and Eastern
Europe will be most vulnerable, Bernstein analysts Alex Irving and
Clementine Flinois said, citing a new model for assessing
bankruptcy risk according to levels of competition and capacity,
route networks and likely costs from leasing and replacing planes.

Europe's top six airlines face negligible risk, Mr. Bernstein said,
with low-cost specialists Ryanair Holdings Plc, EasyJet Plc and
Wizz Air Holdings Plc retaining investment-grade credit ratings and
legacy groups Air France-KLM, IAG SA and Deutsche Lufthansa AG
still able to rely on government help if required, Bloomberg
relays.

The most exposed carriers include one from Cyprus and two from
Albania, as well as airlines based in Belarus, Bulgaria, the Czech
Republic, Georgia, Moldova and Romania, according to Bloomberg.



                           *********


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
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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,
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