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

                          E U R O P E

          Thursday, December 29, 2022, Vol. 23, No. 254

                           Headlines



F R A N C E

LA FINANCIERE: Moody's Lowers CFR to Caa1 & Alters Outlook to Neg.


G E R M A N Y

ASK CHEMICALS: Moody's Assigns 'B3' CFR, Outlook Stable
LUFTHANSA: 2021/2022 Bonus Would Breach State Aid Agreement
PROPHETE: Files for Bankruptcy in Bielefeld Court


I R E L A N D

ARDQUADE LTD: Sells Paris Property to Help Repay Debt


M A L T A

GENESIS GLOBAL: Files for Bankruptcy in Malta, Shuts Down HQ


U N I T E D   K I N G D O M

SINGLETONS: Carron Lodge Buys Longridge Premises

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F R A N C E
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LA FINANCIERE: Moody's Lowers CFR to Caa1 & Alters Outlook to Neg.
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Moody's Investors Service has downgraded La Financiere ATALIAN
S.A.S.'s (Atalian or the company) corporate family rating to Caa1
from B3, the probability of default rating to Caa1-PD from B3-PD
and the rating on the backed senior unsecured notes due 2024 and
2025 to Caa2 from Caa1. The outlook was changed to negative from
stable.

RATINGS RATIONALE

On December 16, Atalian announced that its shareholder, Mr Julien,
decided not to exercise its put option to sell the entire share
capital and voting rights in Atalian to an affiliate of Clayton
Dubilier & Rice, LLC (CD&R). Instead, Atalian signed a sale and
purchase agreement with CD&R, under which funds managed by CD&R
will acquire Atalian's operations in the UK, Ireland and Asia,
including Aktrion Holdings Ltd, for an enterprise value of EUR735
million (the "transaction").

The downgrade to Caa1 reflects Moody's expectations that the likely
transaction with CD&R will leave the company with a lower scale and
cash flow generation  and will negatively impact its credit
quality. Following the transaction, the size and the
diversification of the company will materially reduce, with
revenues to decrease by around EUR1.1 billion, to around EUR2.1
billion in fiscal 2023, on a pro-forma basis, and EBITDA to shrink
materially. Moody's also believes that the free cash flow (FCF)
generation will remain constrained after the sale, with a weak
interest coverage and persistently high leverage, despite the
anticipated reduction in total debt following the transaction.

The Caa1 CFR also takes into account Atalian's weak liquidity,
considering the upcoming maturity of the fully drawn revolving
credit facility (RCF) for around EUR100 million, due in April 2023,
and the lack of its refinancing or maturity extension (previously
under discussion) as of today.

The company is highly exposed to Governance considerations, in
particular to Financial Strategy and Risk Management, under Moody's
General Principles for Assessing Environmental, Social and
Governance Risks Methodology for assessing ESG risks. Moody's
consider the company's financial policies as being weak due to
persistently high leverage and its weak liquidity. For such
reasons, the assessment of the company's Financial Strategy and
Risk Management was changed to 5, from 4, the overall exposure to
governance risks (Issuer Profile Score or "IPS") to 5 (G-5) and
Atalian's Credit Impact Score to 5 (CIS-5), from 4.

Following the transaction, Moody's forecasts that Atalian's
remaining business (post assets sale) will be focused on France,
Belgium, Central Eastern Europe and the US. Among these
geographies, France will be the biggest contributor to the group'
profitability and cash flow. At the same time, the company's
operations in France have experienced a progressive decline of
EBITDA in the first nine months of 2022, as a consequence of delays
in passing inflation to customers, coupled with some loss of
profitable contracts, partially compensated by new wins. While
management expects such headwinds to be temporary, Moody's
recognizes that there are increased operating risks in the country,
which may negatively impact the company's profitability and credit
metrics post transaction. Additionally, Moody's expects the
turnaround of the US business to remain uncertain, as well as its
potential disposal.

LIQUIDITY

Moody's views Atalian's liquidity as weak. Moody's expects that the
company will generate, at best, close to break-even FCF in the next
12-18 months. As of the end of November 2022, cash and equivalent
on the balance sheet were EUR112 million, with no availability
under the committed RCF. At the same time, the company will have to
repay the EUR100 million RCF at maturity in April 2023.

STRUCTURAL CONSIDERATIONS

The backed senior notes due 2024 and 2025 are rated Caa2, one notch
below the CFR, to reflect their structural subordination to
liabilities at the operating subsidiaries, including trade payables
and pension liabilities.  The backed senior notes are unsecured and
guaranteed on a senior basis by Atalian S.A.S.U., Atalian Europe
S.A. and Atalian Global Services UK 2 Limited, although obligations
of certain guarantors are contractually limited because these
subsidiaries of La Financiere ATALIAN S.A.S. are holding companies
that do not generate any significant revenues.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects Moody's expectations that the
operational issues experienced in France might take longer than
expected to be fixed, adding to the ongoing uncertainty about the
turnaround in the US. Such issues create lingering operating risks
that might further negatively affect the credit quality of the
company, after the expected assets sale.

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

Although unlikely in the short term, the rating could be upgraded
if Atalian demonstrates sustainably solid operating performance
under the new perimeter, its liquidity materially improves, all the
upcoming debt repayments are successfully met and future debt
maturities is addressed at least 12 months in advance. An upgrade
would also require FCF generation to turn positive, EBITA/ interest
to improve solidly to above 1x, and Moody's adjusted debt/EBITDA to
be lower than 7x, all on a sustainable basis.

The rating could be downgraded if the company's operating
performance and liquidity deteriorate further, limiting the option
to refinance its 2024-2025 debt maturities and increasing the risk
of a debt restructuring that might result in losses for its
creditors.

PRINCIPAL MEHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.

COMPANY PROFILE

Headquartered in France, La Financiere ATALIAN S.A.S. (Atalian) is
a leading provider of cleaning and facility management services.
The company operates in 36 countries and generated revenue of
around EUR2.9 billion in 2021. The company is majority-owned by
Franck Julien, who owns 98.5% of total shares.



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G E R M A N Y
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ASK CHEMICALS: Moody's Assigns 'B3' CFR, Outlook Stable
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Moody's Investors Service has assigned a B3 corporate family rating
and B3-PD probability of default rating to ASK Chemicals
International Holding GmbH (ASK Chemicals or the company).
Concurrently, Moody's has assigned B3 instrument ratings to the
EUR225 million backed term loan B due 2025 and EUR40 million backed
senior secured revolving credit facility due 2025 issued in
December 2022 by ASK Chemicals Deutschland Holding GmbH, a
subsidiary of ASK Chemicals. The outlook on all ratings is stable.

The proceeds from the facilities raised in December 2022 will be
used by ASK Chemicals Deutschland Holding GmbH to repay a EUR190
million senior secured term loan due 2023 and EUR25 million senior
secured revolving credit facility due 2023. Moody's assumes the
repayment of the facilities will take place in mid-January 2023.

RATINGS RATIONALE

"ASK Chemicals' B3 CFR reflects (1) its leading market position in
the niche metal casting chemicals market, (2) the benefits from
high barriers to entry due to the company's technology protected by
a portfolio of more than 1,000 patents and long-term relationships
with customers due to its focus on quality, innovation and R&D, and
(3) the company's low maintenance capex of around 2% of sales,
creating some capacity to generate free cash flow (FCF) in a
downturn", says Chris Scott, Moody's lead analyst for ASK
Chemicals.

These strengths are tempered by (1) the company's moderate scale
and narrow product portfolio, (2) its exposure to cyclical
end-markets, (3) Moody's projected moderate positive free cash flow
(FCF) from 2023 at low single digit rates as a percentage of total
adjusted gross debt reflecting the company's relatively weak
profitability, and (4) high Moody's adjusted gross leverage.

ASK Chemicals generated revenue of around EUR859 million in the
last twelve months (LTM) period to September 30, 2022 (including
the Industrial Resins acquisition), with more than 60% of sales
coming from a broad range of specialty resins used in casting
processes. The company has exposure to cyclical end markets, with
the automotive industry accounting for 23% of sales, heavy
equipment 16% and commercial vehicles 14% as of the same period.
However, ASK Chemicals benefits from a leading market position in
the niche metal casting chemicals market, with an estimated 30% to
40% market share in the binders chemicals market and top 3 position
in several specialty consumable chemicals markets.

Giving effect to the refinancing, Moody's estimates that ASK
Chemicals had a pro forma debt-to-EBITDA ratio around 5.0x and a
pro forma EBITDA interest coverage around 2.25x as of the LTM
period to September 30, 2022. The aforementioned metrics include
the rating agency's standard adjustments and adjustments for
run-rate earnings from acquisitions, and certain other
non-recurring items. The rating agency considers that leverage may
moderately increase over the next 12 months reflecting the
weakening macro-economic environment and its impact on ASK
Chemicals' end-markets partly mitigated by lower input costs. At a
holding company above the rated group and not formally included in
Moody's metrics sit payment-in-kind (PIK) notes with an approximate
balance of EUR115 million as of September 30, 2022. ASK Chemicals
has been able to substantially off-set (and sometimes outpace) the
impact of the current inflationary environment due to cost
pass-through mechanisms, but raw materials constitute roughly 65%
of manufacturing costs and are passed on to customers with a
delay.

ESG CONSIDERATIONS

Governance considerations have been a key driver of the rating
action. The company is owned by private equity firm Rhone Group.
Private equity funds tend to have higher tolerance for leverage, a
greater propensity to favor shareholders over creditors as well as
a greater appetite for M&A to maximize growth and their return on
their investment. Rhone did not support ASK Chemicals when it was
in danger of breaching its maintenance covenant throughout the
Covid 19 crisis in 2020 and the first three quarters of 2021, which
in Moody's view reflects a fairly aggressive and shareholder
oriented financial policy. Rhone however has provided other
selective forms of support to ASK which have been both financial
and non-financial. Governance considerations also include the
financing of the Indiana acquisition in 2021 through EUR90 million
of PIK notes outside of the restricted group. The rating agency
generally views the existence of such instruments as a constraining
factor for the company's rating because there is a risk that PIK
notes may be refinanced at a future point through additional debt
raised within the restricted group.

LIQUIDITY

ASK Chemicals' liquidity is adequate. Pro forma for the refinancing
transaction, Moody's estimates the company will have around EUR70
million to EUR80 million in total liquidity (cash on balance sheet
plus availability under the RCF). The company continues to have
access to several factoring programs in place amounting to nearly
EUR45 million in Europe and $12 million in the US, of which an
equivalent of EUR34 million was utilized as of September 30, 2022.
The company generated negative FCF in 2021 and thus far in the
first nine months of 2022 due to higher working capital needs and
its maintenance and growth capital expenditures. However Moody's
expects FCF to turn moderately positive from 2023.

The stable outlook reflects the expectation that with a newly
refinanced capital structure the company will maintain leverage and
interest coverage commensurate with its rating category while
generating positive free cash flow and maintaining adequate
liquidity.

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

Factors that could lead to a rating upgrade include: (i) gross
debt/EBITDA consistently below 5.0x; (ii) retained cash flow/debt
consistently in the high single digits; (iii) EBITDA/Interest cover
consistently exceeding 2.0x; (iv) sustained positive FCF; (v)
adequate liquidity; and an expectation that any potential
refinancing of the PIK notes (currently outside of the restricted
group) would still result in pro forma metrics commensurate with a
higher rating.

Factors that could lead to a rating downgrade include: (i) gross
debt/EBITDA consistently or well above 6.0x; (ii) retained cash
flow/debt in the mid-single digits; (iii) EBITDA/Interest cover
below 1.5x; (iv) negative FCF; (v) deterioration of the company's
liquidity profile; or (vi) a refinancing of the PIK notes such that
pro forma metrics are no longer commensurate with the current
rating category.

STRUCTURAL CONSIDERATIONS

ASK Chemicals' PDR is B3-PD, implying a 50% family recovery rate.
The backed senior secured term loan and RCF are rated B3 and
represent the preponderance of the company's debt, and are in line
with the company's CFR. Moody's views the term loan and RCF as
essentially unsecured, given the security package consists
primarily of shares pledges, receivables, intellectual property and
bank accounts.

In October 2021, EUR90 million of PIK notes were raised outside the
restricted group to finance the acquisition of Industrial Resins.
The proceeds were then subsequently contributed to the restricted
group in the form of EUR25 million in common equity and a EUR65
million shareholder loan, which Moody's treats as equity in its
metric calculations.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Chemicals
published in June 2022.

COMPANY PROFILE

Established in 2010 and based in Hilden, Germany, ASK Chemicals is
a global supplier of high-performance industrial resins and
materials. The company is a leading supplier to the global foundry
industry and a global supplier of high-performance phenolic resins.
The company maintains 18 production facilities and has a global
footprint serving customers in approximately 70 countries. Since
2014, ASK Chemicals has been owned by Rhone Capital.

LUFTHANSA: 2021/2022 Bonus Would Breach State Aid Agreement
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Christian Kraemer and Thomas Escritt at Reuters reports that the
German government sees plans to pay Lufthansa executive board
members a bonus for 2021 and 2022 despite the German airline
receiving state aid at the time as in breach of their agreement,
said a German government spokesperson on Dec. 21.

According to Reuters, the bonus cannot be accrued and paid out at a
later date, said the spokesperson, who added the government is in
talks with Lufthansa.

The Handelsblatt daily reported on Dec. 20 that Lufthansa executive
board members will each receive several million euros as a bonus
for 2021 and 2022, when the airline was receiving funding as part
of a pandemic bailout package to save it from bankruptcy totalling
EUR9 billion (US$9.53 billion); at that time, dividend and bonus
payments were banned, Reuters relates.

A Lufthansa spokesperson told Handelsblatt that the money would not
be paid out until 2025, if everything went well until then, meaning
the payments were not retroactive but rather part of a long-term
bonus, Reuters notes.



PROPHETE: Files for Bankruptcy in Bielefeld Court
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Rita Deutschbein at TaketoNews reports that Prophete filed for
bankruptcy.

Like many other companies, the manufacturers of bicycles and
e-bikes had to struggle with global delivery problems and the high
inflation rate, TaketoNews discloses.  Among other things, these
could be reasons why the well-known e-bike manufacturer Prophete
had to file for bankruptcy, TaketoNews notes.

Prophete not only sells e-bikes under its own name, but also
through the subsidiary Cycle Union GmbH, founded in 2004, which
also owns brands such as ebm e-bike manufaktur, vsf
Fahrradmanufaktur, Kreidler and Rabeneick.  While some of the
latter are in the higher-priced segment, Prophete e-bikes and
pedelecs can often be found at Lidl, Aldi or in hardware stores,
TaketoNews states.

The bankruptcy application was filed on Dec. 21 at the District
Court of Bielefeld, TaketoNews relays, citing The bell.  Now it is
up to the provisional insolvency administrator, lawyer Manuel Sack
from the law firm Brinkmann und Partner, to determine the reasons
for the insolvency of Prophete and to clarify how to proceed,
according to TaketoNews.




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I R E L A N D
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ARDQUADE LTD: Sells Paris Property to Help Repay Debt
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Gordon Deegan at The Irish Times reports that Johnny Ronan's
property group this month sold its Paris property for EUR24.5
million to help pay down the group's debt.

According to The Irish Times, consolidated accounts filed by Mr.
Ronan's Ardquade Ltd also reveal that this year Mr. Ronan also
advanced a loan to the group which was used to repay "a substantial
part" of the group's junior debt.

At the end of Dec. 30th last, the group's senior and junior debt
amounted to a combined EUR194.88 million, The Irish Times
discloses.

The continuing efforts to pay down the debt are disclosed in the
new accounts, which also show that pretax losses narrowed at the
business last year by EUR20.35 million, or 67%, to EUR9.98 million,
The Irish Times states.

The note said that the group was in discussions with new lenders to
replace the existing junior debt, The Irish Times relates.

The note also said that if the group successfully refinances junior
debt before agreed dates, the obligation to pay exit fees of
EUR20.7 million to the junior lender will be revoked fully or
partially, The Irish Times recounts.

The group owes EUR13.6 million to its directors, The Irish Times
states.

The group had a shareholders' deficit of EUR2.82 million at the end
of December 30th last, according to The Irish Times.  Its cash
funds increased from EUR7.3 million to EUR10.55 million during last
year, The Irish Times relays.




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M A L T A
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GENESIS GLOBAL: Files for Bankruptcy in Malta, Shuts Down HQ
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Erik Gibbs at Casino.org reports that Genesis Global, the gaming
operator that has had difficulty in several jurisdictions, has
filed for bankruptcy and is shutting down its headquarters in
Malta.

According to Casino.org, Genesis had to battle a US$4-million fine
in the UK, a US$5-million fine in Belgium, and a US$418,000 fine in
Sweden.  All were due to the operator's inability to properly
comply with anti-money laundering (AML) rules and other violations,
Casino.org notes.

The company shut off 14 sites from the UK market, the largest
gaming market in Europe, and parted ways with CEO Ariel Reem
earlier this month, Casino.org relates.

Just a couple of days before Christmas, when everyone should have
been spreading the holiday cheer, Genesis was spreading pink slips
to its 140 employees in Malta, Casino.org recounts.





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U N I T E D   K I N G D O M
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SINGLETONS: Carron Lodge Buys Longridge Premises
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Aimee Seddon at Lancashire Post reports that family-run farm Carron
Lodge have successfully acquired the Singletons premises in
Longridge, as well as the majority of its brands, including the
famous "Grandma Singletons brand".

Singletons Dairy was founded in 1934 by Dullia and Robert
Singleton, whose family has been making cheese since the 18th
century, Lancashire Post discloses.  The company had been
handcrafting award winning cheeses in the UK for more than 80
years, until they went into administration in August this year,
Lancashire Post relates.

According to Lancashire Post, following the news that Singletons
were entering administration, Carron Lodge say they "had no choice
but to act."

Tom Rhodes, Operations manager at Carron Lodge said: "We simply
could not see the Grandma Singleton brand disappear from the
industry.  Not many people know that Grandma Singleton was a
relation to the Rhodes family, and therefore this brand was very
important to Carron Lodge.  Her recipes helped Carron Lodge to
start our wonderful cheese journey, and we felt that her legacy had
to live on."




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

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