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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

          Friday, October 7, 2022, Vol. 23, No. 195

                           Headlines



A U S T R I A

SCHUR FLEXIBLES: S&P Lowers ICR to 'SD' on Debt Restructuring


F R A N C E

FINANCIERE LABEYRIE: S&P Lowers ICR to 'B-', Outlook Stable
SEQUANA SA: UK Supreme Court Rules in Favor of Directors


R U S S I A

T-PLATFORMS: Declared Bankrupt, Liabilities Exceed Assets


T U R K E Y

TURKIYE: S&P Lowers Sovereign Credit Rating to 'B', Outlook Stable


U N I T E D   K I N G D O M

ARJOWIGGINS GROUP: Administrators Continue to Explore Sale
CENTRE FOR THE MOVING: Enters Administration, Halts Trading
CHARTHAM PAPER: Administrators to Continue to Wind Down Ops
CINEWORLD GROUP: Cineplex's Push for Payout Held Up by Bankruptcy
CLARANET INT'L: S&P Affirms 'B' ICR & Alters Outlook to Negative

FINCHALE GROUP: Enters Administration, Buyer Sought
HONCHO: To Undergo Liquidation Process, Halts Operations
MAXIM LIFTING: Goes Into Administration
NEXT GEN: On Brink of Administration, 20 Jobs at Risk
NMC HEALTHCARE: Abu Dhabi Court Grants Injunction

TREE OF LIFE: Hundreds of Suppliers Owed Almost GBP20 Million
WORCESTER WARRIORS: Players' Contracts Terminated


X X X X X X X X

SRG DEANSGATE: Enters Creditors' Voluntary Liquidation
[*] BOOK REVIEW: Hospitals, Health and People

                           - - - - -


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A U S T R I A
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SCHUR FLEXIBLES: S&P Lowers ICR to 'SD' on Debt Restructuring
-------------------------------------------------------------
S&P Global Ratings lowered its issuer credit rating to 'SD' from
'CC' on Austria-based Schur Flexibles GmbH. S&P also moved its
issue ratings on the term loan B to 'D' from 'C'. S&P's recovery
rating on the term loan B remains unchanged at '5'.

The downgrade reflects Schur Flexibles' announcement that it has
restructured its capital structure through a combination of new
debt instruments and debt swapped into equity.

The restructuring of Schur Flexibles' existing capital structure
resulted in:

-- The full write-down of the outstanding amounts (EUR15 million)
under the existing EUR100 million senior secured revolver;

-- The write-down of its existing EUR475 million senior secured
term loan B and exchange into a new EUR122.5 million term loan;

-- The write-down of the outstanding amounts (EUR70.1 million)
under the existing supply chain financing facility (SBF) and
exchange into a new EUR24.5 million term loan;

-- The write-down of all shareholder loans;

-- Improved liquidity via new money injection of up to EUR160
million; and

-- A consensual change of ownership from its current owners (B&C
Holding and Lindsay Goldberg) to lenders under the senior facility
agreement (SFA) and the SCF, as well as the new money providers.
S&P expects the equity in the new holding company to be split
between the existing SFA lenders (39.4%) and SCF lenders (5.6%),
and the new money providers (55%).

In the coming days S&P will reassess the group's new capital
structure, business plan, management and governance, and financial
policy, and review the rating.

S&P said, "Our recovery rating on the EUR475 million senior secured
term loan B remains '5' and reflects the instruments' modest
(10%-30%; rounded estimate: 25%) recoveries under the debt
restructuring.

"We are lowering to 'D' from 'C' our issue rating on Schur
Flexibles' EUR475 million senior secured term loan B to reflect our
view that this debt restructuring is tantamount to a distressed
exchange, and that its completion represents a default.

"We expect to withdraw our ratings on the existing term loan B and
revisit our recovery analysis in the coming days, once the terms of
the new capital structure are finalized."

ESG credit indicators: E-3, S-2, G-5




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F R A N C E
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FINANCIERE LABEYRIE: S&P Lowers ICR to 'B-', Outlook Stable
-----------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Financiere Labeyrie Fine Foods (Labeyrie) and issue rating on its
senior debt instruments to 'B-' from 'B', with the '3' recovery
unchanged.

The stable outlook reflects S&P's view that the company will
gradually deleverage over the next 12 months and fund its
day-to-day operations, with no near-term debt refinancing risks.

In fiscal 2022, high cost inflation and a time lag in raising
prices significantly affected Labeyrie's operating performance and
credit metrics

S&P said, "The company materially deviated from our base case due
to high raw materials inflation but also packaging, energy, and
labor costs. This was further exacerbated by recurring avian-flu
outbreaks and the November 2021 strike, which significantly hit
capacity utilization and resulted in lost volumes via unfulfilled
orders. Although we understand the company has hedged its energy
exposure and started to increase prices since March, profitability
has significantly decreased because of the time lag to implement
higher prices in Western European markets, especially in France,
where it generates 60% of sales. We believe the volume sales
decline was also due to a fall in home consumption in fiscal 2022
after a surge in fiscal 2021 amid COVID-19 lockdowns. We estimate
adjusted EBITDA margin decreased to 6.6%, or about EUR65 million,
in fiscal 2022--130 basis points (bps) below our base case--leading
to a material deviation in S&P Global Ratings-adjusted debt
leverage to 10.6x from the 8.6x we anticipated. In turn, cash
interest coverage deteriorated to below 3.0x and FOCF was thin but
positive, although the debt structure includes a EUR156 million
payment-in-kind (PIK) loan that is not detrimental to cash flows.
Our adjusted debt figure is gross debt and includes leases and the
factoring line but excludes the portion of debt related to upstream
activity controlled by the minority shareholder. We do not net cash
from the gross debt figure, in line with our criteria for
financial-sponsor-owned companies.

"In fiscal 2023, we should see a rebound in operating performance,
enabling slight deleveraging.We forecast an about 6%-7% revenue
rebound, mainly supported by higher sales prices, with the
full-year effect of price increases. In addition, we forecast
higher volumes for the Christmas season after the negative effect
of the strike last year and due to a better product mix, supported
by the company's diversification strategy into expanding healthy
categories--such as appetizers and cooked vegetables--showing
high-single-digit growth in recent years. We believe demand for
more high-end products, like smoked salmon or foie gras, may be
weaker in the coming festive season but also note that Labeyrie has
significant exposure to private-label products, which will somewhat
mitigate the risk of consumer down trading. We also positively note
that the group has established market positions in diversified
ambient food categories with many products in the mid-price range
and deemed low ticket items. For fiscal 2023, we now anticipate a
100-bps increase in S&P Global Ratings-adjusted EBITDA margin
versus fiscal 2022 with EBITDA of about EUR80 million versus our
previous base case of EUR95 million-EUR100 million. We therefore
only see very slow deleveraging prospects in fiscal 2023 with
adjusted debt leverage of 8.8x-9.3x versus our previous forecast of
7.0x-7.5x. In our view, operating cost inflation will likely remain
high, with difficulties in labor recruitment for some sites in
France and the U.K. and continued duck shortages due to avian flu
outbreaks. That said, Labeyrie is adopting cost-control measures
and being more selective in advertising and marketing spending to
protect profitability."

FOCF growth is unlikely in fiscal 2023 but Labeyrie should continue
to adequately fund its day-to-day operations

S&P said, "We forecast neutral to slightly positive FOCF in fiscal
2023, reflecting the lower EBITDA base and increased working
capital outflows due to higher raw material costs and the necessity
to re-stock supplies--especially duck products post avian-flu
outbreaks and blinis due to production bottlenecks. We expect FOCF
generation and coverage to be negatively affected by higher cash
interest expenses, given 50% of the EUR455 million term loan B
(TLB) is exposed to interest rate fluctuations. However, slightly
lower capital expenditure (capex) of EUR25 million-EUR30 million
will support FOCF, since the company will focus on operational
performance and delay nonessential spending to 2024. We also
believe it unlikely that Labeyrie will resume acquisitions until
fiscal 2024. The group had EUR37 million of cash balances on June
30, 2022, EUR65 million undrawn from its revolving credit facility
(RCF), and a EUR80 million undrawn factoring line. We believe it
can manage its intra-year working capital needs, capex, and
interest payments for the next 12 months. In addition, we
positively note the absence of significant debt maturities until
2026 following the full refinancing in 2021. We do not expect the
RCF covenant to be tested because the group usually uses factoring
lines for its large working capital needs rather than RCF
drawings.

"The stable outlook reflects our view that Labeyrie's operating
performance should gradually improve over the next 12 months
compared to fiscal 2021 leading to a strengthening of credit
metrics, which are currently elevated for the rating. Under our
base-case scenario, we project S&P Global Ratings-adjusted debt
leverage will gradually decrease from more than 10.0x in fiscal
2022 to 8.8x-9.3x in fiscal 2023, FFO cash interest coverage will
stay at 2.5x-3.0x, and FOCF will be neutral to slightly positive.
We also see the group being able to adequately funds its operations
on a day-to-day basis.

"We could lower the ratings over the next 12 months if Labeyrie's
adjusted debt leverage remains at or above 10.0x, or if FFO cash
interest coverage falls below 2.0x. This could occur if the group
cannot withstand operating headwinds--notably around Christmas and
New Year, which are very important to Labeyrie--losing significant
volumes in key categories and failing to restore profitability with
price increases and improved productivity. We would also have a
negative view if liquidity weakens, due to large negative FOCF amid
an inability to control working capital movements, or if headroom
under the springing financial covenant becomes tight.

"We could raise the ratings over the next 12 months if adjusted
debt leverage sustainably decreases clearly to or below 7.0x and
the company builds a higher positive FOCF cushion to fund growth
opportunities. This could happen if Labeyrie sees a strong revenue
increase in major categories by combining volume growth with
significant and timely price increases to restore profitability in
a continued high-cost-inflation environment."

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

ESG credit factors are an overall neutral consideration in S&P's
credit rating analysis of Labeyrie. The group is exposed to
volatile agriculture commodity prices but has a track record in
managing environmental risks like avian flu. The company is owned
equally by PAI Partners and agriculture cooperative Lur Berri
(owned by local French farmers and a key supplier) and we consider
it to have a balanced board composition.


SEQUANA SA: UK Supreme Court Rules in Favor of Directors
--------------------------------------------------------
Daniel Gal KC, David Kavanagh KC, Peter Newman, James D. Falconer
and Ekaterina Churanova, of Skadden, Arps, Slate, Meagher & Flom
LLP, disclosed that in what Lady Arden described as a "momentous
decision for company law," the Supreme Court of the United Kingdom
has confirmed that there are circumstances in which company
directors are required to consider the interests of creditors and
has given guidance on when the duty arises. Delivering judgment in
BTI 2014 LLC v Sequana SA and ors [2022] UKSC 251 (Sequana) on
October 5, 2022, the Supreme Court acknowledged that the
requirement to consider the interests of creditors may arise prior
to insolvent administration or liquidation becoming inevitable, but
made clear that until insolvent liquidation or administration was
inevitable, creditor interests would not necessarily be paramount.

The judgment addresses long-standing uncertainty about the
existence of such a duty in English law and the circumstances in
which it arises. The Supreme Court's acknowledgement of the
importance of not chilling director efforts to rehabilitate
troubled companies by imposing an overly rigid standard, or one
which will be too easily triggered, will provide comfort to
directors and those advising them.

Background

Directors and advisers have long understood that as a company nears
insolvency, there are situations where the economic interest in a
board's decision-making process sits, at least in part, with the
creditors. While North American courts have tended to reject any
specific requirement that directors consider the interests of
creditors, courts in Australia and New Zealand, and more recently
in England (in West Mercia Safetywear Ltd v Dodd [1988] BCLC 250
and the cases that followed it), have recognised that such a
requirement exists. When it arises, however, what exactly is
required and how the requirement interacts with the statutory
protections applicable in insolvency have remained unclear.

This uncertainty, and particularly the possibility that a duty may
arise as early as when there is a "real, as opposed to a remote"
risk of insolvency (as the appellant contended in Sequana), had the
potential to leave directors and their advisers with no option but
to assume the worst, potentially hampering efforts to rehabilitate
or restructure companies to the benefit of all stakeholders, or
leading to overly cautious, and hence unproductive,
decision-making.

The Issues in Sequana

The litigation concerned dividends an English company (AWA) paid to
its sole shareholder Sequana SA (the first respondent), which it
was argued impacted AWA's ability to satisfy certain indemnities in
relation to historic pollution in the Fox River in the state of
Wisconsin, in the United States. In 2009, the directors of AWA (the
second to third respondents) determined that the most likely
quantum of AWA's liability under such indemnities was less than the
value of the insurance it held, and accordingly, that it was
solvent and able to pay dividends. A dividend of EUR135 million was
paid to Sequana in May 2009. That dividend complied with the
statutory scheme regulating the payment of dividends in Part 23 of
the Companies Act 2006 (the 2006 Act) and with the common law rules
on the maintenance of capital. At the time it was paid, AWA was
solvent on both a balance sheet and a cash flow basis.

The environmental liabilities, however, ended up being
substantially greater than estimated, with the result that AWA was
not able to satisfy its indemnity obligations and went into
insolvent administration almost 10 years later, in October 2018.
The shareholder Sequana and AWA's directors were sued by BTI 2014
LLC as an assignee of AWA's claims.

The claimant argued at trial and in appeals to the Court of Appeal
and the Supreme Court that the directors had a duty to consider the
interests of creditors when they paid the 2009 dividend, because at
that point there was a real and not remote risk of AWA becoming
insolvent. In the Court of Appeal, David Richards LJ rejected the
proposed test of "real, as opposed to a remote" risk of insolvency
but concluded that such a duty exists when a company is more likely
than not to become insolvent. The claimant appealed to the Supreme
Court.

Is There a Duty To Consider the Interests of Creditors?

Section 172(1) of the 2006 Act requires directors to act in the way
they consider, in good faith, would be most likely to promote the
success of the company for the benefit of its members as a whole,
and in doing so to consider a list of specific factors. The section
is a codification of the long-established common law fiduciary duty
and embodies the concept of "enlightened shareholder value." The
list of additional factors to be considered does not, however,
include creditors. Rather, section 172(3) expressly preserves any
existing common law rule requiring directors to consider the
interests of creditors, if such rule exists.

The Supreme Court unanimously agreed that the common law does
provide that in certain circumstances, directors are required to
consider the interests of creditors. In doing so, the Supreme Court
confirmed the underlying concept as developed in the line of lower
court cases commencing with West Mercia.

There is, however, no independent "creditor duty." Rather, the
Supreme Court described the rule as merely a modification of the
directors' fiduciary duty to the company, widening the scope of the
interests which are taken into account when considering the
company's interests, so as to include creditors' interests as well
as shareholders'.

When Is the Duty Triggered?

A key issue for directors of companies facing financial
difficulties has been to know when they are required to consider
the interests of creditors. The Court of Appeal's decision in
Sequana, which held that the duty was triggered when it became more
likely than not that at some point in the future the company would
become either cash flow or balance sheet insolvent, left directors
and their advisers taking a risk-averse approach to the assessment
of such probability.

The Supreme Court unanimously rejected that trigger point, with a
majority (Lord Briggs, with whom Lord Kitchen agreed, and Lord
Hodge) holding that the duty arises when directors know, or ought
to know, that the company is actually insolvent or bordering on
insolvency, or that an insolvent liquidation or administration
proceeding is probable. The Supreme Court emphasised that the duty
would arise where insolvency was imminent, and that imposing a
fetter on director decision-making at an earlier point should be
rejected.

What Is the Content of the Creditor Duty?

The Supreme Court acknowledged that the appropriate course of
action for directors of companies faced with potential insolvency
is highly fact sensitive and requires a weighing of interests and
exercise of judgment.

Lord Briggs noted that unless insolvent liquidation or
administration is inevitable, the duties of directors have to
reflect the fact that "both the shareholders and the creditors have
an interest in the company's affairs [and that in] those
circumstances, the directors should have regard to the interests of
the company's general body of creditors, as well as to the
interests of the general body of shareholders." He made clear that
where those interests conflict, a balancing exercise will be
necessary.

The majority was clear also that creditor interests do not become
paramount, at least until an insolvent liquidation or
administration is inevitable. Lord Briggs noted specifically that
it would be wrong for the common law to recognise an obligation
which would result in directors deciding, or being advised for
their own protection, to immediately cease trading when there
remains a light at the end of the tunnel.

In a statement which should provide significant assurance for
directors of troubled companies, Lord Hodge said:

A reasonable decision by directors to attempt to rescue a company's
business in the interests of both its members and its creditors
would not in my view involve a breach of the common law duty.

Conclusion

The Supreme Court's decision is a significant milestone in the
development of the English common law in relation to directors'
duties and provides welcome certainty to directors and their
advisers. The Supreme Court's emphasis on the necessity of
balancing creditor and shareholder interests, and on not dissuading
directors from seeking to achieve a restructuring or rescue, is
consistent with the "rescue culture" which has been a key focus of
development of English corporate law since the Enterprise Act 2002
and which has been furthered by the creation of the "Restructuring
Plan" procedure under Part 26A of the 2006 Act and other recent
reforms.

Sequana SA manufactures paper. The Company produces carbonless
papers and papers for publishing, imaging, and security. Sequana
also distributes paper to corporate clients. Sequana serves
customers in France.




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R U S S I A
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T-PLATFORMS: Declared Bankrupt, Liabilities Exceed Assets
---------------------------------------------------------
Anton Shilov at Tom's Hardware reports that T-Platforms, a Russian
company that once planned to build an exascale supercomputer and
homegrown CPUs, was declared bankrupt as the cost of the company's
assets was lower than its obligations.

T-Platforms was one of a few companies in Russia that could build
world-class high-performance supercomputers.

According to Tom's Hardware, the main reasons for the bankruptcy
are not sanctions by Western countries but rather Russia's attempt
to replace Western technologies with its own.

T-Platforms was established in 2002 to build servers and
supercomputers that would be competitive against offerings from the
likes of IBM and HP.

Eventually, the company expanded business outside Russia and
established offices in Hannover, Germany; Hong Kong, China; and
Taipei, Taiwan.  However, the company ran into troubles with the
U.S. Department of Commerce in early 2013 when the latter accused
T-Platforms of selling supercomputers to military end users and
nuclear research, contrary to U.S. national security, Tom's
Hardware recounts.  As a result, T-Platforms was delisted from
DoC's Entity List in late 2013 - early 2014, Tom's Hardware
relays.

Baikal Microelectronics secured government subsidies to speed up
the development of homebrew processors and servers, Tom's Hardware
discloses.  However, while Baikal Microelectronics has managed to
design several Arm and MIPS-based processors, whereas T-Platforms
started to sell some of its new servers in Russia, they failed to
deliver their products on time, Tom's Hardware states.  As a
result, the Russian Ministry of Trade sued Baikal in 2019, Tom's
Hardware notes. Meanwhile, the chief executive officer of
T-Platforms was arrested in March 2019 as his company failed to
deliver about 9,000 Baikal-based PCs to the Ministry of Internal
Affairs, Tom's Hardware disclsoes.  It is when the company started
to fire personnel and fold its operations, Tom's Hardware relates.

Eventually, T-Platforms had to sell its 60% stake in Baikal to
Varton in October 2020, Tom's Hardware relays, citing CNews.  The
company filed for bankruptcy in October 2021, Tom's Hardware
relates.  In December 2021, the Moscow Arbitration decided to
introduce an external monitoring procedure for T-Platforms, Tom's
Hardware discloses.  Vsevolod Opanasenko, the former CEO of
T-Platforms who faces ten years in prison, plans to file for
bankruptcy himself, Tom's Hardware states.  Some media reports
indicate that he used to control 75% of T-Platforms, whereas the
remaining stake belonged to the Russian government, Tom's Hardware
notes.




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T U R K E Y
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TURKIYE: S&P Lowers Sovereign Credit Rating to 'B', Outlook Stable
------------------------------------------------------------------
S&P Global Ratings, on Sept. 30, 2022, lowered its unsolicited
long-term sovereign credit ratings on Turkiye to 'B' from 'B+'. The
outlook is stable. At the same time, S&P lowered its unsolicited
transfer and convertibility assessment on the sovereign to 'B' from
'B+', signifying that the risk the sovereign prevents private
sector debtors from servicing foreign currency denominated debt is
about the same as the risk of a sovereign default. S&P also lowered
its unsolicited national scale rating to 'trA/trA-1' from
'trAA-/trA-1+'. Finally, S&P affirmed its 'B' unsolicited foreign
and local currency short-term ratings on Turkiye.

Outlook

The stable outlook reflects balanced risks to Turkiye's
creditworthiness: the central government's remaining fiscal space
against still-notable balance of payments vulnerabilities,
contingent liabilities from state banks and public enterprises, and
unpredictable policy settings.

Downside scenario

S&P could lower the ratings could occur if the financial strength
of the banking system and public finances weaken further in
connection with renewed exchange rate pressure and a worsening
inflation outlook. This could be the case, for example, if domestic
residents dollarized their savings significantly further or
withdrew them from the financial system, or if banks' access to
foreign funding deteriorated.

Upside scenario

S&P could raise the ratings could occur if it observed sustained
and enhanced predictability of public policy and effectiveness of
monetary policy while Turkiye's balance-of-payments position
strengthened, particularly the Central Bank of the Republic of
Turkiye's (CBRT) net foreign currency reserves.

Rationale

Ahead of 2023 parliamentary and presidential elections, Turkish
policymakers are prioritizing growth over financial and monetary
stability. Since Sept. 23, 2021, the CBRT has lowered its key
reference rate by a cumulative 700 basis points (bps) despite
current reported inflation of 80% versus the 5% medium-term target.
At the same time, authorities have introduced reserve and
collateral requirements that appear to be aimed at suppressing
foreign currency demand and lowering market interest rates,
including government domestic yields to levels far below reported
inflation. In S&P's view, highly accommodative fiscal and monetary
settings risk further undermining confidence in the lira as a store
of value, against a backdrop of tightening global financing
conditions. Renewed currency depreciation would have negative
implications for Turkiye's financial stability and public finances,
given rising dollarization of public debt, as well as substantial
Treasury guarantees (including on the debt of Botas and that on
household and corporate foreign currency-linked deposits).
Heterodox policy settings could also pose a refinancing risk to the
economy's stock of short-term external debt at $182 billion, or 25%
of GDP by remaining maturity.

Policy direction remains uncertain. Political pressure on the CBRT
continues. S&P said, "We also believe that policy missteps could
stem from the 2023 general elections. Recent opinion polls suggest
declining popular support for the ruling Justice and Development
Party (Adalet ve Kalkinma Partisi [AKP]), with the pandemic, high
inflation in food prices, and a hit to real incomes likely to be
contributing factors. In that context, additional policy-stimulus
measures--for example, to boost the availability or reduce the
price of credit--cannot be ruled out in 2022, but the direction of
central bank macroprudential regulations has generally been toward
tightening liquidity (although they also include the imposition of
interest-rate ceilings, while the Treasury recently relaunched the
Credit Guarantee Scheme [KGF]). The cost of the Treasury's foreign
currency protection scheme is already approaching 1% of GDP, but
could increase further depending upon the exchange rate's
trajectory for the rest of 2022, as tourism inflows recede. We
expect the CBRT will monetize payouts on its foreign currency
protection guarantees."

Institutional and economic profile: Ahead of elections,
policymakers prioritize growth over financial and monetary
stability

-- Turkiye's economy looks set to decelerate into next year as
widespread inflationary pressures compress consumption and
investment.

-- The country's institutional arrangements are weak, with limited
checks and balances.

-- S&P thinks economic policy uncertainty will remain elevated in
the run-up to the 2023 general election with possible additional
stimulus measures at the expense of economic stability.

In the first six months of 2022, Turkiye's economy expanded 7.5%
year over year, amid increasing indications of overheating. In that
time, according to official data, private consumption rose 22% year
over year in real terms, reflecting, among other things,
households' preference to accumulate inventories of consumer
durables and other merchandise as a hedge against inflation and
exchange rate volatility. The tourism season was particularly
strong, which helped buoy demand and boosted foreign currency in
the economy, contributing to stabilizing confidence. However, in
our view, some aspects of national accounts data are unclear,
including the large negative drag on GDP from destocking in the
quarterly GDP data since third-quarter 2021. The negative inventory
figures could reflect an underestimation of Turkiye's private
consumption deflator.

S&P said, "As we enter into 2023, growth should decelerate, with
household savings buffers eroded and export markets weakening. We
do not anticipate domestic wage increases will keep up with
inflation (though there is considerable backward indexation in
Turkiye's wage bill). Overall, for 2023, we forecast GDP growth to
decelerate to below 3%."

There are numerous caveats to this forecast, in particular the
possibility that the Turkish government could delay any additional
electricity and gas tariff increases should the Russian government
and Gazprom agree to favorable pricing on gas contracts. S&P said,
"We understand that Gazprom might agree to lend Botas funds to
purchase gas or agree that it pay in installments. Moreover, at
least part of the invoice could be settled in Russian rubles,
though the CBRT does not currently have a swap line with the
Russian central bank. We also believe that fiscal policy will
remain increasingly accommodative until the elections in mid-2023,
which could temporarily support growth." Temporary fiscal stimulus
is likely to come through more generous outlays on energy subsidies
for 2023, a renewed credit guarantee scheme, and higher capital
expenditure outlays.

Turkiye's private sector is sophisticated, outward-looking, and
resilient; it benefits from the country's customs union with the
EU, the destination for over 40% of merchandise exports and one
quarter of services exports. One of the highlights of GDP growth
during the first part of 2022 was the strong performance of
merchandise exports. Services exports have also performed well,
especially tourism. Turkiye is one of the few reachable
destinations for Russian tourists, given direct flights, and the
ability until recently to make digital payments under Russia's
National Card Payments System (Mir cards). Nevertheless, the
majority of tourism earnings come from European and Middle Eastern
markets. During the second and third quarters of 2022, Turkiye saw
a 67% year over year increase in tourism receipts in dollar terms
according to Turkstat data as well as foreign currency inflows of
nonresident deposits and foreign direct investment into the
property market, which appear to be at least partially tourism
related. The Central Bank's balance of payments data indicates an
even stronger increase in tourism earnings by 1.3x to $16.4
billion, or about 2.3% of full-year GDP, over the first seven
months of 2022.

Turkiye's energy sector benefits from considerable storage,
pipeline, and liquefied natural gas capacity. As a consequence, the
risk of outright energy shortages appears to be low. This apparent
supply resilience does not, however, immunize Turkiye's economy
from the terms of trade shock of elevated hydrocarbon prices, given
its dependency on oil and gas imports, to generate three-quarters
of total gross energy supply (compared with about 50% in 1990).
Energy inflation is already metastasizing throughout the economy;
according to Turkstat, the cost of transportation increased an
estimated 117% year over year in August, and consumer food prices
were up 90.2%. Finally, high energy prices have pushed Turkiye's
external deficit beyond 5.5% of GDP this year, requiring increased
borrowing from the rest of the world to fund.

S&P considers that Turkiye's broader institutional arrangements are
weak and continue to constrain the sovereign ratings. In the June
2018 presidential and parliamentary elections, the president and
the AKP-led alliance secured a victory that marked the final
chapter in the country's transition to a presidential system,
concentrating decision-making in the executive branch. Several
opposition leaders, most notably Selahattin Demirtas, of the
People's Democratic Party (HDP), remain in prison on terror-related
charges. Nevertheless, some electoral competition remains.
Following the 2018 parliamentary elections, the AKP lost its
majority in the Grand National Assembly and entered a coalition
with the nationalist MHP party. In local government elections held
in May 2019, the Supreme Election Council, under apparent political
pressure, annulled the outcome of the Istanbul municipal elections,
which registered a victory for the opposition. The elections were
rerun, and the opposition candidate Ekrem Imamoglu of the
Republican People's party won the vote by a margin estimated at 10
percentage points.

Turkiye became a member of the National Atlantic Treaty
Organization (NATO) in February 1952, the same time as Greece.
However, in the run-up to 2023 elections in both countries,
relations between the two member states continue to deteriorate.

Flexibility and performance profile: Economic imbalances are acute,
with elevated inflation and vulnerable balance of payments

-- S&P forecasts that Turkiye's inflation will average 74% in 2022
(up from its projection of 55%), the highest of all rated
sovereigns, and producer and regional inflation readings are
notably higher.

-- After a near-doubling of nominal tax receipts during the first
seven months of 2022, S&P expects larger spending increases on
wages, entitlements, subsidies, and capital projects ahead of next
year's elections.

-- Off-balance-sheet fiscal risks are rising, particularly from
Botas and public banks.

Turkiye's fiscal profile can be divided in two:

-- On the balance sheet, fiscal space still looks substantial,
although dollarization of the state's liabilities is a risk. S&P
projects a year-end general government debt-to-GDP ratio of 38%,
although this figure is considerably more sensitive to exchange
rate effects than previously given that 68% of the debt is
denominated in foreign currency or roughly twice the levels of FX
debt pre the 2018 currency crisis.

Off-balance-sheet, there are several risks:

  --Foreign currency exchange risk: The launch of the foreign
currency protection deposit scheme at end-December 2021 has been
effective in reducing the dollarization of Turkiye's deposit base.
However, the price of this success has been to move exchange-rate
risks from the balance sheets of households and firms to the
sovereign. With the Treasury having guaranteed about 19% of system
deposits (TRY1.3 trillion as of Sept. 1, 2022, according to
financial regulator BDDK), S&P calculates that the minimum fiscal
cost of reimbursing depositors for foreign currency losses will be
about TRY100 billion, or 0.8% of GDP, but this could be
considerably higher depending upon the trajectory of the exchange
rate.

  --Broader public sector deficit pressures: State company Botas,
which imports 95% of all natural gas consumed in Turkiye, has been
borrowing domestically and externally to finance the difference
between what households and small enterprises pay and the actual
cost of imports. The Treasury mades transfers to Botas from the
central government budget of about 1% of GDP in 2021 and 2022 to
partially offset these losses, but these are made with a lag, and
do not compensate for upfront exchange-rate and
market-price-related losses. Moreover, much of Botas' recent
foreign currency borrowing from international banks carry Treasury
guarantees. In addition, the cost to state-owned enterprises of
foreign currency debt payments and payouts on public private
partnership arrangements have increased in tandem with the
weakening currency, while the state has had to provide additional
capital support to some state-owned enterprises. These factors
largely explain the Treasury's projections of a 3.2% deficit of
state enterprises in 2022 versus a balance last year, implying an
overall public sector deficit this year of around 7% of GDP.

  --Quasi-fiscal activity by state banks: Much of the lending to
loss-making state enterprises, including Botas, is off the balance
sheets of state banks, which are also exposed to multiple financial
stability risks via volatile currencies, rising holdings of state
bonds at negative yields, and general asset quality risks. The
financial sector as a whole continues to be subject to notable
liquidity risks via the provision of foreign currency swaps with
the CBRT and via high short-term external debt. The public banks
could face capital shortfalls, requiring additional financial
support from the state, particularly should the lira depreciate
further.

Authorities have long argued that excluding energy and nonmonetary
gold, Turkiye's current account is in surplus. This is indeed the
case. The challenge, however, is that Turkish exports' energy
intensity remains high and the overall energy intensity of Turkish
GDP has not declined nearly as quickly as the EU average.
Therefore, should energy prices have permanently increased because
of the war, so too has Turkiye's structural external deficit absent
major declines in the energy content of Turkish exports. Like all
external deficits, Turkiye's current account requires external
financing, much of which, until recently, has been borrowing from
abroad. For 2022 specifically, we project that higher energy prices
will drive the full-year current account deficit in 2022 to $40
billion, or about 5.5% of GDP. The funding for the current account
this year appears at least indirectly connected to the war in
Ukraine: nonresident deposit inflows and errors and omissions
inflows.

Turkiye's external stock position is also a risk. Financial and
corporate sector external debt maturing over the next 12 months
remains significant, at $182 billion (25% of GDP, around half of
which pertains to the banking sector) as of August 2022. At the
same time, CBRT's gross foreign currency reserves of about $111
billion (15% of GDP) are largely encumbered. Excluding the
institution's obligations in foreign currency to domestic
residents, usable reserves--which represent the CBRT's effective
capacity to intervene--were about $26 billion (3.6% of GDP) as of
Aug. 31, 2022. That figure is up about $11 billion since June 30,
reflecting nonresident deposit inflows (including reportedly from
Russian state corporation Rosatom) and errors and omissions
inflows. The U.S. Treasury recently warned Turkish commercial banks
against facilitating the avoidance of international sanctions by
Russian counterparties. As of mid-September, as a precautionary
measure, nearly all Turkish banks have stopped clearing payments
made by Russian nationals using the Mir card system.

Monetary policy in Turkiye is sui generis: a combination of low
nominal policy rates and a patchwork of macroprudential regulations
intended to suppress foreign currency demand by tightening domestic
liquidity conditions. Since March 2021, the Central Bank has
lowered the policy rate (one-week repurchase rate) 700 bps even
with inflation hitting multiyear highs and while nearly all major
global central banks were moving to raise rates and tighten
monetary settings. Another consequence of this has been a weak and
volatile exchange rate. When the CBRT first launched its easing
cycle last year, the lira was at 7.22 per U.S. dollar; it is
currently trading at 18.50 per U.S. dollar, equivalent to a nominal
lira depreciation of 61% over the past 18 months. While authorities
have introduced measures such as rent controls and energy subsidies
to suppress inflation, currency depreciation has quickly passed
through into the rising consumer price index (CPI), which hit a
two-decade high of 80% in August, with wholesale and regional
inflation exceeding 100%. When deflated by 12-month producer price
inflation of 144% rather than CPI of 80%, Turkiye's broad real
effective exchange rate, as calculated by the Bank for
International Settlements, has actually appreciated against a
trade-weighted basket of currencies, raising questions about how
policy settings are affecting the economy's competitiveness.

Combined with negative real interest rates, authorities have
introduced multiple rounds of regulations on reserve requirements,
bank lending rate caps, foreign currency limits, and impediments to
foreign currency purchases including on current accounts. The
purpose of these appears to be to suppress foreign currency demand
and drive down the government's cost of financing. In the aftermath
of their introduction, government domestic yields fell
considerably, as banks have been required to hold additional
government securities as collateral while reserve requirement
levels have pushed higher. This has had the unusual effect of both
lowering interest rates while tightening domestic liquidity, with
many firms now unable to get working capital loans denominated in
lira. There have been no limits, however, on depositors access to
foreign currency deposits.

Another consequence of heterodox monetary policy has been increased
dollarization of domestic savings. As of mid-September foreign
currency deposits made up 55% of total deposits in the Turkish
banking system, compared with 44% at the end of 2017 (according to
data published by BDDK, Turkiye's banking regulator). Nevertheless
the level of dollar deposits has stabilized since the December 2021
launch of the foreign currency deposit protection scheme. These
facilities (there are two: one offered by the Treasury and one by
the Central Bank) guarantee foreign currency deposit holders who
convert into local currency deposits will be paid either the lira
deposit rate over the deposit's duration, or the exchange rate
adjusted value of the deposit at the end of the term, whichever is
higher. The cost of this policy is the increased foreign currency
risk taken on by the Treasury.

In connection with these heterodox monetary policy settings,
financial stability risks are elevated, in our view. These could in
turn present a contingent liability risk to the government if it
had to rescue a bank, either because of domestic depositor
confidence loss or if foreign creditors' appetite for rolling over
Turkish banks' foreign debt were to decrease. The government has
already contributed capital to public banks several times with the
latest capitalization taking place in March 2022 worth 0.5% of GDP.
S&P thinks that in a hypothetical scenario of a loss in banking
sector confidence, the government could be called upon to
contribute equity and loans to the banks in significantly higher
amounts.

Bank asset quality could also face further pressure because about
37% of loans were denominated in foreign currency (as of
mid-September 2022), effectively making this debt more expensive to
service as the lira depreciates. Loan book quality risks are
particularly pertinent for public banks, in our view, given that
they have been heavily involved in episodes of rapid credit
expansion at low rates, as well as lending to state agencies and
enterprises for quasi-fiscal purposes, raising questions about the
borrowers' ability to repay these lines.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  DOWNGRADED  
                                              TO   FROM
  TURKIYE

  Sovereign Credit Rating |U^       B/Stable/B   B+/Negative/B

  Turkey National Scale |U^         trA/--/trA-1   trAA-/--/trA-1+

  Transfer & Convertibility Assessment |U^     B   B+




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

ARJOWIGGINS GROUP: Administrators Continue to Explore Sale
----------------------------------------------------------
Business Sale reports that administrators are continuing to explore
a sale of the business and assets of the subsidiaries of paper
group Arjowiggins Group UK.

Ten of the group's subsidiaries fell into administration last
month, with Blair Nimmo and Alistair McAlinden of Interpath
Advisory appointed to oversee the process, Business Sale recounts.

The group, which can trace its history back to 1738, produces fine
and custom papers for a range of uses, including graphic design,
security printing, packaging and labelling.

The UK business was established via a 2019 management buyout after
French parent companies Arjowiggins and Sequana fell into
insolvency.

However, the business has since faced a "difficult trading
environment", becoming lossmaking after the COVID-19 pandemic hit
trading and cashflow, Business Sale discloses.  This situation has
been exacerbated over recent months by significant increases in the
costs of energy and raw materials, such as pulp, Business Sale
relays.

Interpath Advisory were subsequently appointed as administrators to
the group's subsidiaries on Sept. 22, Business Sale states.  The
subsidiaries affected are: AW Creative Papers Group Ltd;
Arjowiggins Group Ltd; AW Branding Ltd; AW Estates Holdings Ltd; AW
Estates Scotland Ltd; AW Estates England Ltd; Arjowiggins Papers
Ltd; Arjowiggins Translucent Papers Ltd; Arjowiggins Chartham Mill
Ltd and Arjowiggins Scotland Ltd., Business Sale notes.


CENTRE FOR THE MOVING: Enters Administration, Halts Trading
-----------------------------------------------------------
K.J. Yossman at Variety reports that Centre for the Moving Image
(CMI), the Scottish arts company behind the Edinburgh International
Film Festival, have appointed administrators.

They are the first high-profile victim of the looming recession
currently gripping the U.K, which follows the two-year COVID-19
pandemic, Variety notes.

According to Variety, in a statement, CMI's board said: "The
charity is facing the perfect storm of sharply rising costs, in
particular energy costs, alongside reduced trade due to the ongoing
impacts of the pandemic and the cost of living crisis.  The
combination and scale of these challenges is unprecedented and
means that there was no option but to take immediate action."

As well as the film festival, CMI also owns Filmhouse Cinema in
Edinburgh and Belmont Filmhouse in Aberdeen.  All three operations
will cease trading immediately, Variety states.

Tom MacLennan and Chad Griffin of FRP Advisory have been appointed
as joint administrators, Variety relates.

"We have been proud to have led the CMI through incredibly
challenging times, and in particular during the worst days of the
pandemic," the CMI board said in a statement.  "Unfortunately, the
combination of sharply increasing energy and other costs, together
with both the lasting impacts of the pandemic and the rapidly
emerging cost of living crisis affecting cinema attendances, means
that we have had no other option but to appoint administrators at
this time."

Last year's company accounts for CMI show how the film charity was
struggling, Variety recounts.  Filed last October and covering the
12-month period from March 2020 to March 2021, the financial
report, as cited by Variety, said: "The underlying financial
position of CMI Group remains fragile.  It is inevitable the
organisation will continue to experience financial stress in the
coming year as COVID specific funding such as furlough and local
authority grants are removed, while public health restrictions and
customer behaviour restrict our earned income potential."


CHARTHAM PAPER: Administrators to Continue to Wind Down Ops
-----------------------------------------------------------
Chris Britcher at Kent Online reports that the administrators of
Chartham Paper Mill say they will continue to wind down operations
at the site -- unless a buyer "urgently" steps forward.

The mill was plunged into crisis last month after the UK
subsidiaries of its owner, the Arjowiggins (AW) Group, slumped into
administration, Kent Online recounts.

It saw 67 staff at the mill near Canterbury made redundant, Kent
Online discloses.

Production at Chartham Mill dates back to 1738, and the site has
more recently been known for making translucent paper.

According to Kent Online, Blair Nimmo, chief executive of Interpath
Advisory and joint administrator, said: "We continue to explore
potential interest from both trade and financial investors in the
AW Group's business and assets.

"Both the Stoneywood Mill [in Aberdeen] and Chartham Mill sites are
being given maximum exposure to identify if any party will step
forward to purchase these as paper making facilities.

"However, in the absence of any credible interest in the
acquisition of either site as a manufacturing facility, the joint
administrators will continue to wind down operations at each mill.

"We'd therefore urge any interested parties to contact the joint
administrators as a matter of urgency."

A skeleton staff at Chartham Paper Mill was retained in the hope it
could be saved, Kent Online notes.

"While we explore potential interest in the group's business and
assets, we are also liaising with key customers to establish if
existing orders can be fulfilled from the group's paper stocks. Any
customer wishing to understand stock levels available should
contact us as soon as possible," Kent Online quotes Alistair
McAlinden, head of Interpath Advisory in Scotland and joint
administrator, as saying.

"In addition, we continue to work closely with the unions and other
UK government support bodies to ensure all employees impacted by
redundancy are extended the maximum support possible."

Two years ago, 80 jobs were saved at the site when a successful
buyout was negotiated following insolvency proceedings against
French parent company Arjowiggens and Sequana, Kent Online relays.

In all, the joint administrators have made 368 of the company's 463
UK employees -- who were spread between Chartham and the mill in
Scotland -- redundant, Kent Online discloses.

Administrators are called in when a company experiences cashflow
problems that threaten its future, Kent Online relates.

The collapse of the Arjowiggins Group's UK subsidiaries was blamed
on a "difficult trading environment since the negative impact of
Covid-19" and cashflow which meant the group "has been loss-making,
with losses exacerbated in more recent times by the significant
increases in energy costs and the price of raw materials, including
pulp", Kent Online notes.


CINEWORLD GROUP: Cineplex's Push for Payout Held Up by Bankruptcy
-----------------------------------------------------------------
Cineplex Inc. provides an update to stakeholders with respect to
its claim against Cineworld Group plc ("Cineworld"). As previously
discussed in Cineplex's news release issued on September 7, 2022,
Cineworld and certain of its subsidiaries commenced bankruptcy
proceedings in the United States (collectively the "Cineworld
Bankruptcy Proceedings"), and took the position that Cineplex's
claim against Cineworld was stayed pursuant to the Cineworld
Bankruptcy Proceedings. Cineplex sought an order from the United
States Bankruptcy Court for the Southern District of Texas (the "US
Court") to modify the automatic stay of proceedings pursuant to the
Cineworld Bankruptcy Proceedings to permit Cineplex's claim to
proceed in the Canadian courts. The US Court did not grant
Cineplex's requested relief at this time, without prejudice to
Cineplex's ability to seek such relief at a later date.

As previously discussed in further detail in the Company's publicly
filed materials, on December 14, 2021, the Ontario Superior Court
of Justice (the "Ontario Court") released its decision in the
action commenced by Cineplex against Cineworld (the "Ontario
Decision").  The Ontario Court held that Cineplex did not breach
any of its covenants in an arrangement agreement between Cineplex
and Cineworld dated December 15, 2019 (the "Arrangement
Agreement"), and that Cineworld had no basis for terminating the
Arrangement Agreement.  The Ontario Court held that Cineworld
breached the Arrangement Agreement and repudiated the transaction
to acquire Cineplex. The Ontario Court awarded damages for breach
of contract to Cineplex in the amount of $1.24 billion CDN on
account of lost synergies, and $5.5 million CDN for transaction
costs, exclusive of prejudgment interest. The Ontario Court also
denied Cineworld's counterclaim against Cineplex. On January 12,
2022, Cineworld filed a Notice of Appeal with the Ontario Court of
Appeal and on January 27, 2022, Cineplex filed its Notice of Cross
Appeal. The hearing in respect of the Cineworld's Appeal and
Cineplex's Cross Appeal is scheduled for October 12 and 13, 2022.
Given Cineplex's requested relief to lift the stay of proceedings
was not granted by the US Court at this time, the hearing before
the Ontario Court of Appeal will not proceed as scheduled.

The stay of proceedings in the Cineworld Bankruptcy Proceedings
does not impact the merits or quantum of Cineplex's claim, and
Cineplex continues to have its claim against Cineworld. While the
judgment against Cineworld and next steps are a key focus for
Cineplex and its advisors, due to the Cineworld Bankruptcy
Proceedings, it is not possible for Cineplex to predict the timing
or final outcome of Cineplex's judgment against Cineworld, or
whether Cineworld will have the ability to satisfy Cineplex's
claim. Cineplex will continue to explore all avenues and forms of
consideration to satisfy its judgment.

                    About Cineworld Group PLC

London-based Cineworld Group PLC was founded in 1995 and is the
world's second-largest cinema chain.  Cineworld operates 751 sites
with 9,000 screens in 10 countries, including the Cineworld and
Picturehouse screens in the UK and Ireland, Yes Planet in Israel,
and Regal Cinemas in the US.

According to The Guardian, the Griedinger family, including Mooky's
brother and deputy chief executive, Israel, have struggled to
maintain control of the ailing business but have been forced to
reduce their stake from 28% in recent years.  Cineworld's top five
investors include the Chinese Jangho Group at 13.8%, Polaris
Capital Management (7.82%), Aberdeen Standard Investments (4.98%)
and Aviva Investors (4.88%).

The London-listed Cineworld, which has run up debt of more than
$4.8 billion after losses soared during the pandemic, is pinning
its hopes on a meatier slate of movies in 2022 to bounce back from
a two-year lull.

Cineworld Group plc and 104 affiliates sought Chapter 11 protection
(Bankr. S.D. Texas Lead Case No. 22-90168) on Sept. 7, 2022,
estimating more than $1 billion in assets and debt.

PJT Partners LP is providing financial advice, Kirkland & Ellis LLP
and Slaughter and May are acting as legal counsel and AlixPartners
LLP is serving as restructuring advisor to Cineworld.  Jackson
Walker LLP is the co-bankruptcy counsel.  Kroll is the claims
agent.


CLARANET INT'L: S&P Affirms 'B' ICR & Alters Outlook to Negative
----------------------------------------------------------------
S&P Global Ratings revised its outlook to negative from stable and
affirmed its 'B' ratings on Claranet International Ltd.

The negative outlook reflects the risk that Claranet could generate
negative post-lease FOCF in fiscal 2023 and beyond if inflation and
supply chain issues persist and growth in cloud services and cyber
security is slower on macroeconomic headwinds.

IT managed services provider Claranet Group Ltd., the U.K.-based
core operating subsidiary of Claranet International Ltd., reported
weaker-than-expected preliminary profitability and cash flows for
the fiscal year ended June 30, 2022 (fiscal 2022) due to slower
business growth in France and the U.K., continued supply chain
issues, and rising costs due to inflation.

S&P said, "We expect Claranet's profitability will remain under
pressure in fiscals 2023 and 2024. Based on preliminary results for
fiscal 2022, Claranet reported weaker-than-expected preliminary
profitability and cash flows for fiscal 2022. This reflected
slower-than-expected security and cloud business in France and the
U.K. as well as margins being compressed by an unfavorable sales
mix, continued supply chain issues, and rising costs due to
inflation. The strong revenue growth of about 26% year on year (11%
organic growth on a pro forma basis) was largely underpinned by a
meaningful low-margin hardware sale contract in Portugal.

"For fiscal 2023, we expect the EBITDA margin will remain almost
flat between 13%-14%. This is because of a more favorable revenue
mix (growth will be driven by higher margin hosting and security
segments in fiscal 2023 compared to the low-margin hardware sales
in fiscal 2022) that will be largely offset by increasing cost
pressure both on the cost of sales and other operational costs. The
company's EBITDA margins are lower than those of peers, including
Almaviva Spa, Rackspace Technology, and Ensono.

"Continued supply chain issues and inflationary pressures could
also weigh on reported FOCF generation after lease payments. We
expect Claranet's reported post-lease FOCF will be about breakeven
in fiscal 2023, well below our previous expectations, and
approaching our rating downside trigger, mainly due to lower
margins and higher cash interest. We also see a risk that
Claranet's plan to gain scale in the higher margin security
business could be delayed due to the weak macroeconomic outlook.
Even though cash flow generation in fiscal 2023 will benefit from
one-time reversals (£3 million) that impacted the cash flows
adversely in fiscal 2022, it will be offset by incremental capital
expenditure (capex) toward the Lisbon office. The company has both
International Financial Reporting Standard 16 and finance lease
liabilities and plans to continue to prepay its finance leases to
reduce outstanding debt commitments. We note that while this
impacts our post-lease FOCF calculation, the company has
flexibility to manage its cash flows. We expect FOCF to debt will
remain in the 2.0%-3.0% range in fiscals 2023 and 2024.

"We expect Claranet's adjusted debt to EBTIDA will remain below
7.0x, excluding preferred equity (7.8x total leverage). We expect
Claranet will maintain total S&P Global Ratings-adjusted leverage
well within its current rating thresholds at about 7.0x-7.5x in
fiscal 2023 and 6.25x-6.75x in fiscal 2024 (translating to
6.0x-6.5x in fiscal 2023 and 5.5x-6.0x in fiscal 2024, excluding
the preferred equity). Claranet continues to pursue mergers and
acquisitions to expand its presence in local markets and increase
its product offerings. Over the past two years, the company has
invested about £54 million (£38 million in fiscal 2021 and about
£16 million in fiscal 2022) in acquisitions, including earnouts
and deferred compensation. During first-quarter fiscal 2023, the
company announced three acquisitions in France, Germany, and Italy.
Overall, we expect the company will invest about £31 million in
fiscal 2023 including earnouts. We expect the investments will be
funded by cash on hand and drawing on Claranet's revolving credit
facility (RCF). We have not factored any material acquisitions
(other than those already announced) in our forecast but note that
additional debt-funded acquisitions may further tighten the rating
headroom. We also expect Claranet to have a healthy EBITDA cash
interest coverage ratio of 3.0x-3.5x over the next two years,
despite increasing interest costs."

The negative outlook reflects the risk that Claranet could generate
negative FOCF after lease payments in fiscal 2023 and beyond, if
inflation and supply chain issues persist and demand for its higher
margin services remains lower than anticipated.

Downside scenario

S&P could downgrade Claranet if:

-- Claranet's reported FOCF after lease payments remains
    negative.

-- Its adjusted debt to EBITDA increases above 7.0x on a
    prolonged basis, excluding preferred equity (7.8x
    total leverage).

S&P thinks this could occur if Claranet undertakes a
larger-than-anticipated debt-funded acquisition, and then faces
integration issues.

-- Claranet's adjusted FOCF to debt is below 3%.

Upside scenario

S&P could revise the outlook to stable if Claranet posts strong
EBITDA growth over the next 12 months by achieving a better revenue
mix or passing on inflationary costs to its clients, enabling it to
generate both positive and increasing post-lease FOCF on a
sustained basis.

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


FINCHALE GROUP: Enters Administration, Buyer Sought
---------------------------------------------------
Tom Keighley at BusinessLive reports that an historic Durham
charity that has supported veterans and people with complex needs
for nearly 80 years requires new ownership if it is to survive.

Finchale Group, which was founded during WW2, has been put into
administration by its trustees following several years in which it
had struggled to meet funding requirements, BusinessLive relates.
It comes just three years since the charity moved into a
purpose-built base at Durham's Belmont Industrial Estate having
left its former Pity Me site which hosted a large residential
premises, BusinessLive notes.

According to BusinessLive, administrators from FRP are now
marketing the organisation, which employs about 30 people and
offers educational and vocational training, supports ex-military
personnel and their families settle into communities after leaving
the armed forces, and assists services users looking for
employment.  Last year the charity helped more than 500 people,
including 200 former armed forces personnel.

Accounts for the organisation, published in April this year, show
it had income of GBP1.1 million but expenditure of GBP1.9 million,
BusinessLive discloses.  The documents say the charity's new
executive team and its trustees had put in place a strategic plan
to secure new sources of income from "key markets", BusinessLive
relays.

It also said its legacy defined pension scheme was in deficit and a
plan to mitigate this via lump sum payments followed by monthly
contributions was due to stretch up to the end of April 2025,
BusinessLive notes.


HONCHO: To Undergo Liquidation Process, Halts Operations
--------------------------------------------------------
Coreena Ford at BusinessLive reports that a North East company that
aimed to become the UK's number one online reverse-auction
marketplace for insurance has ceased trading.

Durham-based Honcho first launched plans for its website eight
years ago, setting out to disrupt the market through its app and
website.  The business operated a reverse auction site, where
insurers could bid for drivers' insurance contracts, with an app
that allows insurers to bid for consumers' business and compete
with each other to offer the best value package in real time.

The tech firm, co-founded by Gavin Sewell and Frank Speight,
launched with a number of van insurance providers and also had 25
car insurance providers on its platform.

Over the years, its growth plans were driven by more than GBP3
million in investment through a range of sources, including grant
funding, angel investors, crowdfunding and venture capital
investments, BusinessLive discloses.

Now however, the firm has ceased trading and it is understood
directors have engaged a London firm to manage a liquidation
process, after efforts to seek a buyer for the business, including
its software and intellectual property, failed to serve up a
potential new owner, BusinessLive relates.

The business, incorporated in 2014, started out in Milburn House,
Newcastle, but moved to Salvus House in Aykley Heads, Durham, after
receiving investment from the Finance Durham Fund, managed by Maven
Capital Partners, which stipulated it must be based in Durham,
BusinessLive notes.


MAXIM LIFTING: Goes Into Administration
---------------------------------------
Vertikal.net reports that UK-based contract lift company Maxim
Lifting Services has gone into administration.

Based in Redditch near Birmingham, the company appointed an
administrator on Sept. 22 and has struggled to pay its bills and is
facing insolvency, Vertikal.net relates.

The company has negligible total assets and a GBP123,000 negative
working capital as of its February accounts, Vertikal.net.
discloses.

Vertikal.net has heard that at least some employees were not
informed of the developments, and are still owed a week or two pay.
Vertikal.net has also heard that Mark Bowen of MB Insolvency of
Droitwich is the administrator.

Maxim was owned by Claire and Benjamin Holliday and started
operations in 2009, registering the current company the following
year.  As far as Vertikal.net understands the company did not own
its own cranes but rented cranes and equipment in from other
companies to carry out its contract lifts or fulfil crane rental
contracts.  It offered customers a wide range of services and
according to its websites counts a good number of blue chip
clients, several of them providing positive references.  It also
uses three further trading names -- Crane Hire Midlands, Crane Hire
South and Crane Hire North, according to Vertikal.net.


NEXT GEN: On Brink of Administration, 20 Jobs at Risk
-----------------------------------------------------
Neil Hodgson at The BusinessDesk.com reports that a no-win, no-fee
law firm is on the verge of administration, putting around 20 jobs
at risk.

Liverpool-based Next Gen Solicitors has filed a notice of intention
to appoint an administrator, TheBusinessDesk.com has learnt.

The notice provides a 10-day moratorium from other creditor action
and is designed to give a business the opportunity to find a way to
prevent entering administration, The BusinessDesk.com discloses.

Next Gen, based in the Exchange Station building, specialises in
financial mis-selling cases, including PPI claims, tenancy deposit
disputes, and mis-sold pensions and car finance.

In the last accounts filed at Companies House, for the year to
February 28, 2021, Next Gen Solicitors had net liabilities of
GBP300,000, The BusinessDesk.com states.

Next Gen's assets are subject to fixed and floating charges from
litigation funder Fenchurch Legal, The BusinessDesk.com notes.

If a law firm goes into administration, it is required to pass on
its files and contact its clients, as part of the process, a
spokesman for the Solicitors Regulation Authority said.

Next Gen Solicitors has approached Manchester-based insolvency
expert Begbies Traynor, due to the firm's experience, particularly
Paul Stanley and Dean Watson, in handling cases involving law
firms, The BusinessDesk.com relates.


NMC HEALTHCARE: Abu Dhabi Court Grants Injunction
-------------------------------------------------
Reuters reports that United Arab Emirates hospital group NMC
Healthcare (NMCH) was granted an injunction from an Abu Dhabi court
on Oct. 5 to prevent one of its creditors from taking legal action
against it in another jurisdiction.

NMCH was forced into administration in 2020 after the disclosure of
more than $4 billion in hidden debt left many UAE and overseas
lenders with heavy losses, Reuters relates.

According to Reuters, law firm Quinn Emanuel, representing NMCH,
said it was granted a final, anti-suit injunction from Abu Dhabi
Global Market Court against Abu Dhabi investment firm Noor Capital
to prevent it from enforcing a judgment debt of Dh567.2 million
($154.44 million).

The law firm said Noor was attempting to execute a judgement for
567.2 million dirhams against NMCH in the Dubai courts, and seeking
to put itself into a better position than other unsecured
creditors, Reuters notes.


TREE OF LIFE: Hundreds of Suppliers Owed Almost GBP20 Million
-------------------------------------------------------------
Edward Devlin at The Grocer reports that hundreds of suppliers have
been left almost GBP20 million out of pocket by the collapse of
Tree of Life and sister distributor The Health Store, with a number
of start-ups struggling to survive the fallout.

Hopes of any rescue deal for Tree of Life were also dashed as a new
report by administrators, seen by The Grocer, revealed talks with
potential buyers had ended in failure.

The two companies -- which together with parent group Health Made
Easy formed the UK's largest independent health food and wellness
products distribution platform -- filed for administration on Aug.
22, with almost 200 staff made redundant and suppliers left
reeling, The Grocer relates.

According to The Grocer, the report into the collapse by recovery
firm Interpath showed more than 1,000 trade suppliers across Tree
of Life and The Health Store (with many brands working with both)
were owed GBP18.4 million: totalling GBP11.3 million at the former
and GBP7.1 million at the latter.

The unsecured creditors are not expected to see a return on money
owed, The Grocer notes.

Plant-based group Oatly is owed the biggest amount at GBP1.2
million, with about GBP3.5 million of the total relating to
intercompany debts across Health Made Easy, The Grocer discloses.

A number of brands have taken to social media sites such as
LinkedIn and Facebook to express anger about behaviour at Tree of
Life in the run up to the administration, alleging the wholesaler
rushed through big orders in the weeks before its failure, The
Grocer recounts.

Arctic Power Berries, which makes a range of powders from berries,
has joined forces with premium matcha tea brand OMGTea on LinkedIn
to ask brands affected by the administration to join a campaign to
hold the company directors to account, The Grocer relays.  More
than 20 brands have signed up so far, with evidence being collected
to present to the administrators, The Grocer discloses.

She added 15,000 units of the business' product were sat in Tree of
Life's warehouse when the distributor ceased trading, The Grocer
relates.  Arctic Power, which is owed GBP61,000, is unable to
collect the stock as it failed to have a retention of title in its
terms and conditions, according to The Grocer.

Health Made Easy chairman Michael Cole denied there was any
deliberate policy to squeeze suppliers in the run up to the
administration, The Grocer notes.

He told The Grocer the group held daily discussions with its
advisors and kept them "fully informed" of the ongoing situation as
it attempted to avoid a collapse.


WORCESTER WARRIORS: Players' Contracts Terminated
-------------------------------------------------
The Associated Press reports that players and staff of English
top-flight rugby team Worcester Warriors will have their contracts
terminated after the club was partially liquidated on Oct. 5.

According to the AP, Britain's tax authority is pursuing Worcester,
which is currently suspended from all competitions, for unpaid tax
in the region of GBP6 million (US$6.8 million).  Owners Colin
Goldring and Jason Whittingham have been accused of asset-stripping
the club from central England, whose men's team has been in the
Premiership since 2015, the AP notes.

In the High Court in London, judge Nicholas Briggs instructed that
WRFC Players Ltd, a subsidiary through which players and some staff
are paid, be wound up, the AP relates.

Four players, including club captain Ted Hill and England
international Ollie Lawrence, have already joined Bath on loan and
other players will have their contracts terminated along with
members of staff, the AP discloses.

Going into liquidation has brought their departure forward, with
all players previously told they could leave on Oct. 14 because
they had not been paid for September, the AP states.

England's Rugby Football Union held out some hope that a buyer
could be found, although the club now faces automatic relegation to
the Championship due to being placed in compulsory liquidation,
according to the AP.

An application from administrators to have the relegation canceled
will be assessed in due course, the AP says.




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

SRG DEANSGATE: Enters Creditors' Voluntary Liquidation
------------------------------------------------------
Jon Robinson at BusinessLive reports that companies behind seven
shops that trade under the General Store brand across Greater
Manchester have gone into liquidation -- though six of the shops
themselves are set to stay open.

The firms that operated Deansgate General Store, Media City General
Store, Moss Side General Store, Sale Foodhall, Stretford Food Hall,
Castlefield General Store and Salford General Store have entered
creditors' voluntary liquidation, notices filed with official
public record The Gazette have confirmed, BusinessLive relates.

The businesses are SRG Deansgate, SRG MediaCity, SRG Moss Side, SRG
Sale, SRG Stretford, SRG Castlefield and SRG Salford, BusinessLive
discloses.

BusinessLive understands that all of the group's stores are to
remain open, apart from its Salford location which closed
recently.

All seven companies are all registered at 57 Great Ancoats Street,
Manchester, and are part of the wider Store Group.

The business that runs the Ancoats store is not affected.

Manchester-based Kay Johnson Gee Corporate Recovery is acting as
liquidator of the seven companies.

According to BusinessLive, in a statement issued to the Manchester
Evening News at the time, founder and chief executive Mital Morar
said: "After exceptionally difficult trading conditions throughout
the past two years, the addition of the latest economic pressures
in 2022, including the energy crisis, have led us to implement a
major restructure of the business in order to protect jobs and to
continue to trade.

"As part of this process we have closed one of our stores.

"We have been working hard throughout what has been a very
difficult period for the business to ensure that all of our other
sites remain open and we are grateful that none of our hard working
colleagues have been affected.

"We will continue to adapt in an ever changing economic landscape
and our main priorities will always be to serve our customers and
to support our colleagues."


[*] 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.

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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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