/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/221101.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, November 1, 2022, Vol. 23, No. 212 Headlines G E R M A N Y WITTUR HOLDING: Bank Debt Trades at 30% Discount I R E L A N D CARLYLE EURO 2022-5: Fitch Assigns 'B-sf' Rating on Class E Notes CONTEGO CLO X: Fitch Assigns 'B-sf' Rating on Class F Notes SHAMROCK RESIDENTIAL 2022-2: S&P Assigns B-(sf) Rating on G Notes L U X E M B O U R G EVERGREEN SKILLS LUX: Bank Debt Trades at 95% Discount INEOS GROUP: EUR$400M Bank Debt Trades at 95% Discount INEOS GROUP: US$750MM Bank Debt Trades at 95% Discount NORTHPOLE NEWCO: Bank Debt Trades at 89% Discount N E T H E R L A N D S BRIGHT BIDCO BV: Bank Debt Trades at 82% Discount U N I T E D K I N G D O M BOOMIN: Enters Liquidation After Failing to Secure More Funding BRITISHVOLT: Secures Additional Funding, Averts Collapse INNOSPECTION: Sonomatic Acquires Business, Seven Jobs Saved PLAYTECH PLC: S&P Upgrades ICR to 'BB', Outlook Stable TAMAR COURIERS: Goes Into Liquidations, Owes Over GBP160,000 VIRTUAL INFRASTRUCTURE: Court Appoints Official Receiver [*] UK: Business Insolvencies in England and Wales Up 40% - - - - - ============= G E R M A N Y ============= WITTUR HOLDING: Bank Debt Trades at 30% Discount ------------------------------------------------ Participations in a syndicated loan under which Wittur Holding GmbH is a borrower were trading in the secondary market around 70 cents-on-the-dollar during the week ended Fri., October 28, 2022, according to Bloomberg's Evaluated Pricing service data. The EUR240.0 million facility is a PIK term loan. The loan is scheduled to mature on September 23, 2027. As of October 28, the amount is fully drawn and outstanding. Wittur Holding GmbH is the operating entity of The Wittur Group. The Company is a worldwide producer and supplier of elevator components. Founded 1968 in Germany, the group is today present with various subsidiaries in Europe, Asia and Latin America. ============= I R E L A N D ============= CARLYLE EURO 2022-5: Fitch Assigns 'B-sf' Rating on Class E Notes ----------------------------------------------------------------- Fitch Ratings has assigned Carlyle Euro CLO 2022-5 DAC final ratings, as detailed below. Entity/Debt Rating ----------- ------ Carlyle Euro CLO 2022-5 DAC A-1-Loan LT AAAsf New Rating A-1-Note LT AAAsf New Rating A-2 A LT AAsf New Rating A-2 B LT AAsf New Rating B LT Asf New Rating C LT BBB-sf New Rating D LT BB-sf New Rating E LT B-sf New Rating S-1 Sub-Notes LT NRsf New Rating S-2 Sub-Notes LT NRsf New Rating TRANSACTION SUMMARY Carlyle Euro CLO 2022-5 DAC is a securitisation of mainly senior secured loans. The note and loan proceeds have been used to fund an identified portfolio with a target par of EUR360 million. The portfolio is managed by Carlyle CLO Management Europe LLC, which is part of the Carlyle Group. The CLO envisages a 4.5-year reinvestment period and an 8.5-year weighted average life (WAL) test. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 25.18. Strong Recovery Expectation (Positive): At least 90% of the portfolio will comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate (WARR) of the identified portfolio is 62.73%. Diversified Portfolio (Positive): The transaction includes four Fitch matrices. Two are effective at closing, corresponding to a top-10 obligor concentration limit at 25%, fixed-rate asset limits of 5% and 10% and an 8.5-year WAL test. Two others can be selected by the manager at any time one year after closing as long as the collateral principal amount (including defaulted obligations at their Fitch-calculated collateral value) is above the reinvestment target par balance and corresponding to the same limits as the closing matrices except for a WAL of 7.5 years. The transaction also includes various concentration limits, including a maximum exposure to the three largest Fitch-defined industries in the portfolio at 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a 4.5-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL used for the transaction's stressed-case portfolio and matrices analysis is 12 months less than the WAL covenant. This reduction to the risk horizon accounts for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These include, among others, passing the coverage tests, the Fitch 'CCC' bucket limitation and Fitch WARF test, together with a progressively decreasing WAL covenant. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class A-1 and A-2 notes and would lead to a downgrade of up to two notches for the remaining classes of notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of defaults and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the stressed-case portfolio, the class A-2, C and D notes display a rating cushion of two notches while the class B and E notes display a one-notch rating cushion. Should the cushion between the identified portfolio and the stressed-case portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the stressed-case portfolio would lead to downgrades of up to five notches for the rated notes. Factors that could, individually or collectively, lead to positive rating action/upgrade: A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the stressed-case portfolio would lead to upgrades of up to three notches for the rated notes, except for the 'AAAsf' rated notes, which are at the highest level on Fitch's scale. During the reinvestment period, based on the stressed-case portfolio, upgrades, except for 'AAAsf' notes, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger than expected losses for the remaining life of the transaction. After the end of the reinvestment period, upgrades, except for 'AAAsf' 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. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other nationally recognised statistical rating organisations and/or European securities and markets authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. CONTEGO CLO X: Fitch Assigns 'B-sf' Rating on Class F Notes ----------------------------------------------------------- Fitch Ratings has assigned Contego CLO X DAC final ratings. Entity/Debt Rating Prior ----------- ------ ----- Contego CLO X DAC A XS2532682981 LT AAAsf New Rating AAA(EXP)sf B-1 XS2532683104 LT AAsf New Rating AA(EXP)sf B-2 XS2532683369 LT AAsf New Rating AA(EXP)sf C XS2532683526 LT Asf New Rating A(EXP)sf D XS2532683872 LT BBB-sf New Rating BBB-(EXP)sf E XS2532684177 LT BB-sf New Rating BB-(EXP)sf F XS2538363180 LT B-sf New Rating B-(EXP)sf Subordinated Notes XS2532684334 LT NRsf New Rating NR(EXP)sf TRANSACTION SUMMARY Contego CLO X DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to fund a portfolio with a target par of EUR300 million. The portfolio will be actively managed by Five Arrows Managers LLP. The collateralised loan obligation (CLO) has a 4.5-year reinvestment period and an 8.5-year weighted average life (WAL). KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors in the 'B' category. The Fitch weighted average rating factor (WARF) of the identified portfolio is 24.85. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate (WARR) of the identified portfolio is 60.51%. Diversified Portfolio (Positive): The transaction has a matrix effective at closing corresponding to the 10 largest obligors at 16% of the portfolio balance and one fixed-rate assets limit at 10% of the portfolio. There is a forward matrix corresponding to the same top 10 obligors and fixed-rate assets limits that will be effective one year after closing, provided that the aggregate collateral balance (defaults at Fitch collateral value) will be at least at the target par. The transaction also includes various concentration limits, including maximum exposure to the three-largest Fitch-defined industries in the portfolio at 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a 4.5-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash-flow Modelling (Positive): The WAL used for the transaction stress portfolio and matrices analysis is 12 months less than the WAL covenant to account for structural and reinvestment conditions post-reinvestment period, including the OC tests and Fitch 'CCC' limitation passing post reinvestment, among others. This ultimately reduces the maximum possible risk horizon of the portfolio when combined with loan pre-payment expectations. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: A 25% increase of the mean default rate (RDR) across all ratings and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would lead to a downgrade of two notches for the class E notes, to 'CCCsf' or below for the class F notes and would have no impact on the other notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio, the class B, D and E notes display a rating cushion of two notches. There is a one-notch rating cushion for the class C notes and no rating cushion for the class A and F notes. Should the cushion between the identified portfolio and the stress portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR across all ratings and a 25% decrease of the RRR across all ratings of the stressed portfolio would lead to downgrades of up to four notches for the notes. Factors that could, individually or collectively, lead to positive rating action/upgrade: A 25% reduction of the mean RDR across all ratings and a 25% increase in the RRR across all ratings of the Fitch's stress portfolio would lead to upgrades of up to three notches, except for the 'AAAsf' rated notes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on Fitch's stress portfolio upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, meaning the notes are able to withstand larger than expected losses for the transaction's remaining life. After the end of the reinvestment period, upgrades may occur in case of stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses on the remaining portfolio. DATA ADEQUACY Contego CLO X DAC The majority of the underlying assets or risk presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk presenting entities. Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. SHAMROCK RESIDENTIAL 2022-2: S&P Assigns B-(sf) Rating on G Notes ----------------------------------------------------------------- S&P Global Ratings has assigned ratings to Shamrock Residential 2022-2 DAC's (Shamrock 2022-2) class A to G-Dfrd Irish RMBS notes. At closing, the transaction also issued unrated class RFN, Z1, Z2, X, and Y notes. Shamrock 2022-2 is a static RMBS transaction that securitizes a portfolio of EUR513.76 million loans (of which EUR3.40 million are subject to potential write-off), which consist of owner-occupied and buy-to-let (BTL) primarily reperforming mortgage loans secured over residential properties in Ireland. The securitization comprises four purchased portfolios, Bass (26.4% of the pool), Prodigal (22.6%), Peacock (13.2%), and Cannes (37.8%). The loans in the Bass portfolio were originated by Permanent TSB PLC and the loans in the Prodigal subpool were originated by GE Capital Woodchester Home Loans Ltd. and Leeds Building Society. The Cannes and Peacock portfolios aggregate assets from nine different originators. S&P's rating on the class A notes addresses the timely payment of interest and the ultimate payment of principal. Its ratings on the class B to G-Dfrd notes address the ultimate payment of interest and principal. The class B to G-Dfrd notes can continue to defer interest even when they become the most senior class outstanding. Interest will accrue on any deferred interest amounts at the respective note rate. The timely payment of interest on the class A notes is supported by the liquidity reserve fund, which is fully funded at closing to its required level of 2.0% of the class A notes' balance. Furthermore, the transaction will benefit from regular transfers of principal funds to the revenue item (through 2.50% yield supplement overcollateralization) and the ability to use principal to cover certain senior items. The class B to G-Dfrd notes are supported by a non-liquidity reserve fund, which will be available to cover any interest shortfalls and principal deficiency ledger (PDL) amounts outstanding. Pepper Finance Corporation (Ireland) DAC and Start Mortgages DAC, the administrators, are responsible for the day-to-day servicing. At closing, the issuer used the issuance proceeds to purchase the beneficial interest in the mortgage loans from the seller. The issuer grants security over all its assets in favor of the security trustee. S&P considers the issuer to be bankruptcy remote under our legal criteria. Ratings CLASS RATING* AMOUNT (MIL. EUR)† A AAA (sf) 340.50 B-Dfrd AA- (sf) 36.30 C-Dfrd A (sf) 23.80 D-Dfrd BBB (sf) 18.80 E-Dfrd BB (sf) 22.50 F-Dfrd B (sf) 6.30 G-Dfrd B- (sf) 20.0 RFN NR 10.0 Z1 NR 6.30 Z2 NR 26.40 X NR N/A Y NR N/A NR--Not rated. N/A--Not applicable. †Note sizes are based on 97.5% of the total secured balance, which excludes the 2.50% overcollateralization. =================== L U X E M B O U R G =================== EVERGREEN SKILLS LUX: Bank Debt Trades at 95% Discount ------------------------------------------------------ Participations in a syndicated loan under which Evergreen Skills Lux Sarl is a borrower were trading in the secondary market around 5 cents-on-the-dollar during the week ended Fri., October 28, 2022, according to Bloomberg's Evaluated Pricing service data. The $670.0 million facility is a term loan. The loan matured on April 28, 2022. As of October 28, 2022, the amount is fully drawn and outstanding. The Company's country of domicile is Luxembourg. INEOS GROUP: EUR$400M Bank Debt Trades at 95% Discount ------------------------------------------------------ Participations in a syndicated loan under which INEOS Group Holdings Ltd is a borrower were trading in the secondary market around 5 cents-on-the-dollar during the week ended Fri., October 28, 2022, according to Bloomberg's Evaluated Pricing service data. The EUR$400.0 million facility is a term loan. The loan is scheduled to mature on March 25, 2027. As of October 28, 2022, the amount is fully drawn and outstanding. INEOS Group Holdings S.A. operates as a holding company. The Company, through its subsidiaries, manufactures petrochemicals and oil products such as ethylene oxide, acetate esters, glycol, and polymers. INEOS Group Holdings serves customers worldwide. It is based in Luxembourg. INEOS GROUP: US$750MM Bank Debt Trades at 95% Discount ------------------------------------------------------ Participations in a syndicated loan under which Ineos Group Holdings Ltd is a borrower were trading in the secondary market around 5 cents-on-the-dollar during the week ended Fri., October 28, 2022, according to Bloomberg's Evaluated Pricing service data. The US$750.0 million facility is a term loan. The loan is scheduled to mature on March 25, 2027. As of October 28, 2022, the amount is fully drawn and outstanding. INEOS Group Holdings S.A. operates as a holding company. The Company, through its subsidiaries, manufactures petrochemicals and oil products such as ethylene oxide, acetate esters, glycol, and polymers. INEOS Group Holdings serves customers worldwide. It is based in Luxembourg. NORTHPOLE NEWCO: Bank Debt Trades at 89% Discount ------------------------------------------------- Participations in a syndicated loan under which NorthPole Newco Sarl is a borrower were trading in the secondary market around 10.8 cents-on-the-dollar during the week ended Fri., October 28, 2022, according to Bloomberg's Evaluated Pricing service data. The $395 million facility is a term loan. The loan is scheduled to mature on March 3, 2025. As of October 28, 2022, $326 million was outstanding. The Company is a cybersecurity software provider based in Luxembourg. ===================== N E T H E R L A N D S ===================== BRIGHT BIDCO BV: Bank Debt Trades at 82% Discount ------------------------------------------------- Participations in a syndicated loan under which Bright Bidco BV is a borrower were trading in the secondary market around 18 cents-on-the-dollar during the week ended Fri., October 28, 2022, according to Bloomberg's Evaluated Pricing service data. The $1.68 billion facility is a term loan. The loan is scheduled to mature on June 30, 2024. As of October 28, 2022, the amount was fully drawn and outstanding. Amsterdam, The Netherlands-based Bright Bidco B.V. designs and manufactures discrete semiconductor devices and circuits for light emitting diodes (LEDs). =========================== U N I T E D K I N G D O M =========================== BOOMIN: Enters Liquidation After Failing to Secure More Funding --------------------------------------------------------------- Ben Salisbury at AIM Group reports that Boomin the British online property portal set up in April 2020 by former PurpleBricks founders Michael and Kenny Bruce has gone bust. The company has called in liquidators after failing to secure more funding, AIM Group relates. Property Industry Eye confirmed that the company has called in BK Plus, an accountancy firm, to handle its insolvency. The business launched in April 2021 had not published any financial results, AIM Group recounts. It was also reticent on providing full details of how many agents it had converted to full fee-paying contracts after agents got 12-months free advertising to match rival portals pandemic support offers, AIM Group notes. Boomin tried to present a different offering to agents than Rightmove, Zoopla and OnTheMarket.com, by attempting to provide a wider, more holistic approach to the market, but struggled to get enough listings to attract more agents and potential homebuyers, AIM Group discloses. The company was unable to raise a further GBP6 million of required additional equity, AIM Group relays, citing Property Industry Eye. The company announced in July that it was making 20 staff redundant, AIM Group recounts. The company's 65 employees were previously notified about the plan to put the company into liquidation, AIM Group according to AIM Group. BRITISHVOLT: Secures Additional Funding, Averts Collapse -------------------------------------------------------- Simon Jack at BBC News reports that UK battery firm Britishvolt has averted collapse by securing additional funding for the business. According to BBC, the future of the start-up was thrown into doubt over it fears it could run out money after the government rejected a GBP30 million advance in funding on Oct. 31. The firm wants to build a factory in Blyth in Northumberland, which would build batteries for electric vehicles. The government, which had championed the development, had committed a total GBP100 million to Britishvolt for the project, BBC discloses. It is understood the firm wanted to draw down nearly a third of the funding early but the government refused, BBC notes. It has now secured secured cash for the business to stay afloat in the short to medium term, BBC relates, citing sources with understanding of the matter. The sources would not comment on the identity of the new backer or backers, BBC notes. Britishvolt has struggled to find investors to help fund the construction of its so-called gigafactory in Blyth, BBC discloses. The plant has been expected to create 3,000 jobs, but has already been delayed several times, which has led to doubts over whether GBP3.8 billion project would become reality, according to BBC. But the firm, which is yet to make any revenue, has in recent months carried out talks to try to secure fresh funds to stay afloat, BBC discloses. Britishvolt has already struck memorandums of understanding to make batteries for UK car firms Aston Martin and Lotus, BBC notes. INNOSPECTION: Sonomatic Acquires Business, Seven Jobs Saved ----------------------------------------------------------- Scott Reid at The Scotsman reports that several highly-skilled jobs have been saved following the acquisition of Innospection, an Aberdeen-based provider of inspection services. Graham Smith and Iain Fraser of FRP Advisory were appointed joint administrators of Innospection in late August after the business suffered from "unsustainable cash flow problems", The Scotsman relates. The Aberdeen firm had been providing advanced inspection services and support of onshore and offshore assets. According to The Scotsman, the acquisition of the business by Warrington-based Sonomatic includes all assets, technology and intellectual property, including a range of top industry technology and tools. As a result of the deal, seven highly skilled jobs have been retained, The Scotsman states. Sonomatic said the takeover agreement would also significantly extend its range of technologies and tools, The Scotsman notes. PLAYTECH PLC: S&P Upgrades ICR to 'BB', Outlook Stable ------------------------------------------------------ S&P Global Ratings raised its issuer credit and issue ratings on Playtech PLC to 'BB' from 'BB-'. S&P said, "The stable outlook reflects our view that in the next 12 months the group has sufficient rating headroom to incorporate some of the operating underperformance arising from cost-of-living challenges and yet maintain S&P Global Ratings-adjusted leverage below 2.5x and free operating cash flow (FOCF) to debt above 20%. "Management's use of FOCF and the Finalto sale proceeds to repay debt is driving Playtech's financial profile improvement and has led us to upgrade the company. Playtech's trading performance in the first half of 2022 was better than we previously expected; Snaitech's performance recovered strongly and its B2B segment achieved good organic growth, particularly in Latin America and Europe. Its S&P Global Ratings-adjusted EBITDA of EUR162 million (after deducting capitalized development spending of EUR31.5 million and an onerous contract of EUR10.4 million from company-adjusted EBITDA of EUR203.8 million) was 10% better than our previous base-case forecast. More importantly, management is using the cash flows from its good trading, alongside the Finalto sale proceeds of EUR215 million, to improve its financial profile. Playtech announced that it has served a redemption notice to bondholders to redeem EUR330 million of the EUR530 million notes due 2023 on Nov. 16, 2022. We have factored the proposed redemption into our decision to upgrade the company. We calculate it will have a cash balance of about EUR180 million post this repayment, after excluding cash of about EUR80 million needed for operations or otherwise restricted and inaccessible. Overall, we forecast the group's S&P Global Ratings-adjusted 2022 adjusted leverage will improve to about 1.0x-2.0x. While we assess Playtech's business profile as weaker than that of Entain (BB/Stable) and Allwyn International a.s. (BB-/Stable) given their scale and market positions, we now forecast Playtech's financial metrics will be stronger than these peers in the next 12 months. This supports the current ratings. "Our rating on Playtech factors in some risk of financial policy uncertainty. Playtech's stated financial policy is net debt to adjusted EBITDA of 1.0x-1.5x, which translates into S&P Global Ratings-adjusted leverage of 1.6x-2.1x, based on our current adjustments. Playtech forecasts it will end 2022 with reported net debt to adjusted EBITDA below 1.0x and below its stated financial policy. As such, it could decide to resume the shareholder returns that were paused at the start of pandemic. This could result in a weakening of credit metrics that we have not factored into our current base case. Playtech's board has also indicated that it is continuing to assess options to maximize shareholder value. We reflect the financial policy uncertainty through a one-notch negative financial policy modifier within the current rating. "We expect the upcoming quarters to be particularly tough in the U.K., with inflation potentially rising to 12% over the winter despite the government's inflation-curbing energy price guarantee. The U.K., and the rest of Europe, faces a difficult and uncertain geopolitical and economic outlook as inflation remains high, interest rates are increasing, and pressure is building on household budgets and discretionary spending. Amid rising energy prices and weakening global demand, S&P Global Ratings projects a mild recession in Italy next year, with GDP forecast to contract by 0.1% in 2023 before recovering by 1.5% in 2024, while we believe the U.K. is already in a moderate four-quarter recession that started in the second quarter. As such, we forecast Playtech's trading performance over the next 12 months will face headwinds from customers' reduced discretionary spending on gaming along with inflationary cost headwinds." The successful RCF amendment has bolstered Playtech's liquidity but the group will have to monitor this over the next 12-18 months in case of unexpected Italian license costs. Playtech amended its EUR277 million RCF to October 2025, with an optional one-year extension. The arrangement give the group the liquidity headroom to refinance the remaining EUR200 million notes due October 2023 if needed, with liquidity also available from the group's existing cash on balance sheet and free cash flow generation. Playtech will have to monitor its liquidity until it has clarity about Italian license costs. The group's betting concessions have been renewed since 2022 for an annual fee now fixed at about EUR11.5 million until June 30, 2024. S&P said, "Gaming machine concessions were extended for free until June 2023, to compensate for lockdown closures; we assume these will be renewed for an annual fee of EUR25 million-EUR30 million thereafter. Our base case assumes the government will continue to extend the group's licenses for a total annual fee of EUR40 million-EUR50 million. However, this is a crucial capital and cash flow assumption; we cannot entirely exclude the possibility that the government will instead launch a tender to grant nine-year concessions, which could cost Playtech an upfront renewal fee of about EUR250 million-EUR300 million or other potential iterations such as front-ended instalments. This would significantly affect the group's liquidity position, in our view." Regulatory risk persists. Recent changes in the U.K. government have delayed the much-anticipated review of the U.K. Gambling Act 2005. S&P expects the white paper with draft recommendations to be published in 2023. Key changes could include greater affordability measures, bans on very important persons or heavier restrictions, £2 online slot stake limits, sport advertising bans, and greater collective measures to identify and prevent gaming harm to individuals categorized as young or vulnerable. The U.K. represents Playtech's second-largest geographic market with revenue of about EUR190 million in 2021, of which about EUR130 million from the B2B segment and EUR60 million from the B2C segment. The U.K.'s contribution to Playtech's revenue has steadily declined to EUR190 million (16% of the group's 2021 revenue) from EUR201 million in 2020 (about 18.6%) and EUR247 million in 2019 (23%). Sector consolidation, customers opting to bring in-house services and content (for example, Entain), and safer gambling measures have contributed to the steady decline. Our rating also incorporates regulatory uncertainty in Italy, particularly around future concession renewals. Historically, the Italian regulatory regime has been supportive of the gaming industry. However, regulatory developments are difficult to predict and any unfavorable changes in taxes, renewal fees, minimum pay-outs, restrictions in the number of gaming machines, or on online activity, could materially depress the company's revenues, profitability, cash flow generation, and liquidity. The stable outlook reflects S&P's view that in the next 12 months the group has sufficient rating headroom to incorporate some of the operating underperformance arising from cost-of-living challenges and still maintain S&P Global Ratings-adjusted leverage below 2.5x and FOCF to debt above 20%. S&P could lower the rating if: -- There is a material change in the scope of the business due to, for example, asset disposals without sufficient offsetting debt reduction; -- The group's financial policy changes from the current stated policy of net debt to EBITDA of 1.0x-1.5x (S&P Global Ratings-adjusted leverage of 1.6x-2.2x), resulting a higher leveraged financial policy or capital structure; -- The group undertakes any debt-financed acquisitions or shareholder returns resulting leverage increasing above 2.5x and FOCF to debt below 20%; or -- Playtech's liquidity weakens and it is not able to refinance the remaining EUR200 million of notes due October 2023 or meet Italian licensing capital requirements. Given the group's stated financial policy and the board's ongoing review of the overall business structure to maximise shareholder value, S&P does not foresee rating upside within the next 12 months. However, S&P could consider an upgrade if there was greater clarity about the company's strategy, supported by other credit factors including: -- A public commitment to a more conservative financial policy of net debt to adjusted EBITDA below 1.0x permanently (compared to the current leverage policy of 1.0x-1.5x); -- A track record of achieving such metrics; -- Substantial absolute cash flow generation leading to FOCF to debt of consistently more than 40%; and -- Very strong business performance seen in growing margins, market share growth, substantially widening diversification, and both the B2B and B2C operations producing substantial earnings growth. TAMAR COURIERS: Goes Into Liquidations, Owes Over GBP160,000 ------------------------------------------------------------ William Telford at PlymouthLive reports that Tamar Couriers Ltd, a family-run Plymouth logistics company, has gone bust with unpaid debts of more than GBP160,000 including a Covid loan. Tamar Couriers Ltd was founded in 2001 and traded successfully for years but has now gone into liquidation, PlymouthLive relates. The business mainly operated from Bush Park, Estover, but its head office was in the Millfields, Stonehouse. It employed 12 people. But it appointed liquidators at Plymouth's Neville & Co in late September 2022 and passed a resolution saying that because of its liabilities it couldn't continue in business and that it was advisable to wind up the company, PlymouthLive recounts. As recently as March 2021, its accounts were showing it had total assets of GBP40,605 and net assets of GBP10,605, PlymouthLive notes. But documents filed at Companies House reveal it is estimated that now there will only be GBP4,733 available for creditors, PlymouthLive states. All this money will be used to pay employees who are preferential creditors, PlymouthLive discloses. But about GBP47,000 owed to workers will still be outstanding, according to PlymouthLive. In addition, GBP92,621 owed to other unsecured creditors is also unlikely to be paid, PlymouthLive says. In total, debts of GBP160,546 are expected to remain outstanding, PlymouthLive states. VIRTUAL INFRASTRUCTURE: Court Appoints Official Receiver -------------------------------------------------------- The Insolvency Service disclosed that on October 25, 2022, winding-up orders were made against Virtual Infrastructure Group Limited and UKCloud Limited and the court appointed the Official Receiver, Gareth Jonathan Allen, as Liquidator. Following an application made by the Official Receiver, the court has also appointed Alan Hudson and Joanne Robinson of Ernst & Young LLP as Special Managers of the companies. The Special Managers have been appointed to assist the Official Receiver with the liquidations. The Official Receiver will wind-down the affairs of Virtual Infrastructure Group Limited and UKCloud Limited in an orderly manner in accordance with his statutory duties. The Official Receiver also has a duty to investigate the cause of the companies' insolvency and the conduct of current and former directors. Virtual Infrastructure Group Limited and UKCloud Limited provide specialist cloud-based services to UK public sector and private sector organisations. The Official Receiver, with the assistance of the Special Managers, is maintaining operations whilst the liquidation strategy is being developed. The strategy will consider the provision of services, transition of contracts and whether a sale is viable. Information for customers and suppliers If you are a customer of Virtual Infrastructure Limited and UKCloud Limited, please contact the Special Managers via email: ukcloudcustomers@uk.ey.com. If you are a supplier of Virtual Infrastructure Limited and UKCloud Limited, please contact the Special Managers via email: ukcloudsuppliers@uk.ey.com. Information for employees If you were an employee of Virtual Infrastructure Group Limited or UKCloud Limited, and were dismissed following the winding up order, the information in this section provides advice about claiming money you're owed and where you can seek support. Who is eligible? You can apply to the Insolvency Service for redundancy and other payments if: -- you worked for these companies under an employment contract -- you live in England, Scotland or Wales. How to apply The Official Receiver will give you details about how to apply and will also give you a case reference number (for example CN12345678). Once you have this information you can apply online. What you can apply for What you can apply for depends on your circumstances. The Insolvency Service can pay: -- money you're owed by Virtual Infrastructure Group Limited and UKCloud Limited, for example unpaid wages, overtime and commission -- redundancy pay: if you've worked for Virtual Infrastructure Group Limited or UKCloud Limited for at least 2 years pro rata holiday pay (known as ‘holiday pay accrued'): the leave you were entitled to take between the start of your leave year and the date you were made redundant -- holiday pay taken (HPT): if Virtual Infrastructure Group Limited or UKCloud Limited hasn't paid you for annual leave you took before liquidation -- statutory notice pay: if you've worked for Virtual Infrastructure Group Limited or UKCloud Limited for at least 1 month There are caps on what we can pay you for each type of claim. Find out how much we can pay you. Paying your claim The Insolvency Service's Redundancy Payments Service aims to make payments for redundancy pay and related claims within 6 weeks of receiving your completed application, and information from the insolvency practitioner. Find more information about what we can pay. Please avoid contacting The Insolvency Service about how to claim or to check the status of your application. This will help deal with everyone's application as quickly as possible. Redundancy: help finding work and claiming benefits. Information for creditors You will need to register as a creditor in the liquidation if: -- you have not been paid for goods or services you've supplied to Virtual Infrastructure Group Limited and UKCloud Limited (in liquidation) -- you have paid Virtual Infrastructure Group Limited and UKCloud Limited (in liquidation) for goods or services that you have not received To register as a creditor you will need to complete a Proof of Debt form which you should then email to VIG.Liquidator@Insolvency.gov.uk. Once you have registered and the Official Receiver receives your Proof of Debt form he will add you to the list of creditors and include you on future correspondence about the case. [*] UK: Business Insolvencies in England and Wales Up 40% --------------------------------------------------------- Eir Nolsoe at The Telegraph reports that the number of companies in England and Wales unable to repay their debts rose by 40% year-on-year as businesses battled the aftermath of the pandemic. According to The Telegraph, government figures showed there were 5,595 registered company insolvencies over the three months to September 30. This compares with 3,987 during the same period last year and is a 28% rise on the same period in 2019, the last comparable quarter before widespread Covid shutdowns, The Telegraph notes. The consensus among experts is that the increase is largely a lag from the pandemic, as government support is wound down, The Telegraph states. However, rising interest rates, inflation and the energy crisis are widely expected to spur an even larger wave of insolvencies over the next year, The Telegraph discloses. "There are more and more businesses who are phoning up with issues," The Telegraph quotes Jeremy Whiteson, an insolvency and restructuring partner at City law firm Fladgate, as saying. "My feeling is that there are probably quite a lot of businesses that won't be reflected in the statistics yet that are having financial difficulties." Some types of distress, such as property firms failing to repay loans or breaching borrowing terms, are not well covered in the data but are expected to increase, he said. While the number of insolvencies was 1% lower from July to September than in the three previous months, it remains very high, The Telegraph notes. The data shows that the rate of active businesses that are having to close down is at its highest level since 2015, The Telegraph states. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2022. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *