/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/230111.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 Wednesday, January 11, 2023, Vol. 24, No. 9 Headlines B E L G I U M MAKRO BELGIUM: Declared Bankrupt by Antwerp Court F R A N C E AIR AUSTRAL: EU Commission OKs EUR119.3MM French Restructuring Aid G E R M A N Y BORGERS: Autoneum to Acquire Automotive Business from Insolvency RUUKY: Files for Insolvency After Failing to Raise Add'l Funds UNIPER SE: Chief Executive Resigns Following Government Bailout L U X E M B O U R G LUXEMBOURG INVESTMENT: Fidelity Fund Marks $13.6M Loan at 20% Off MALLINCKRODT FINANCE: Calamos LSEDIT Marks Loan at 18% Off U N I T E D K I N G D O M BRIDGEGATE FUNDING: Fitch Assigns 'BB(EXP)sf' Rating to Cl. E Notes BRITISHVOLT: Rescue Deal Values Business at Just GBP32 Million - - - - - ============= B E L G I U M ============= MAKRO BELGIUM: Declared Bankrupt by Antwerp Court ------------------------------------------------- Maarten Reul at Retail Detail reports that the court in Antwerp has declared Makro Belgium bankrupt. The company had filed for bankruptcy on Jan. 10 and the court immediately also agreed to that, Retail Detail relays, citing Belgian newspaper De Tijd. The chain's demise is no surprise at all: as there was no serious candidate to acquire the six stores, only bankruptcy or liquidation remained as real options, Retail Detail notes. Management has now chosen the former option, the worst case scenario for the 1,400 employees, Retail Detail states. Fifty years after the first Belgian Makro store opened -- and following a series of disastrous policy decisions -- an iconic chain waves its final goodbyes to the Belgian retail landscape, Retail Detail discloses. =========== F R A N C E =========== AIR AUSTRAL: EU Commission OKs EUR119.3MM French Restructuring Aid ------------------------------------------------------------------ SchengenVisaInfo.com reports that the European Commission has approved a French restructuring aid of EUR119.3 million to enable Air Austral to return to viability. Through a statement issued on January 5, the EU Commission also stated that an amount of EUR17.5 million had been allocated to compensate the company for the damage suffered as a result of the COVID-19 pandemic between March 17 and June 30, 2020. According to SchengenVisaInfo.com, the Commission said after this approval of rescue aid in the form of a loan of EUR20 million from the French state to Air Austral on Jan. 18 of last year, France officially notified the Commission of the restructuring aid of EUR119.3 million aimed at financing a restructuring plan for airlines. In addition, the Commission emphasises that this plan makes it possible to allow the long-term viability of the airline and thus prevent its bankruptcy, SchengenVisaInfo.com discloses. At the same time, the public financing of the restructuring plan follows the principle of proportionality, which means that since the beneficiary will contribute to its financing through its own or private sources of funds, it will guarantee for the airline to return to long-term sustainability and thus affect trade, SchengenVisaInfo.com notes. ============= G E R M A N Y ============= BORGERS: Autoneum to Acquire Automotive Business from Insolvency ---------------------------------------------------------------- Nonwovens Industry reports that on Jan. 6, Autoneum signed an agreement to acquire the automotive business of Borgers. The transaction is expected to close in April 2023 following antitrust clearance, Nonwovens Industry notes. The enterprise value paid amounts to EUR117 million, Nonwovens Industry states. The transaction will initially be financed through a new credit facility which is available in addition to the syndicated loan of CHF350 million renewed in October 2022, Nonwovens Industry discloses. A capital increase in the amount of approximately CHF100 million is planned for the long-term refinancing of the acquisition, according to Nonwovens Industry. Autoneum's two largest shareholders, Artemis Beteiligungen I AG and PCS Holding AG, have agreed to participate in the capital increase in proportion to their current shareholdings, Nonwovens Industry relates. Autoneum is acquiring Borgers from insolvency and has agreed new pricing and delivery terms with its customers, Nonwovens Industry relays. These will ensure sustained profitability and the further development of product and process technologies in both the short and long term, according to Nonwovens Industry. Bocholt, Germany-based Borgers -- https://www.borgers-group.com/ -- specializes in textile acoustics protection, insulation and trim for automobiles. The product and customer range of Borgers is to a great extent complementary to the product and customer portfolio of Autoneum. Borgers' wheel arch liner and trunk liner product lines as well as their truck business optimally complement the product range of Autoneum. Especially in the field of textile wheel arch liners, Borgers is the market leader in Europe. In addition, Borgers' product range is distinguished by sustainable and fully recyclable products. In fiscal year 2021, the Borgers Automotive Group generated revenue of EUR610 million with around 4700 employees. RUUKY: Files for Insolvency After Failing to Raise Add'l Funds -------------------------------------------------------------- Finextra reports that German neobank Ruuky has filed for insolvency after failing to raise fresh funds. Launched three years ago under the brand name Pockid, the firm pivoted a year later under the new name Ruuky, offering an interactive banking app, current account and debit card for European teenagers. According to Finextra, while the business claims to have amassed a loyal customer base, counting 250,000 app registrations, it has fallen victim to an ongoing drought in VC funding. "We are living in challenging times, and despite our best efforts, we were unable to overcome the market dynamics to raise additional funding," Finextra quotes the firm as saying. "This decision to file for insolvency was not taken lightly and breaks our hearts." Ruuky, which employs 28 people, is now looking for a buyer for the business and will keep accounts open as it winds down, Finextra discloses. UNIPER SE: Chief Executive Resigns Following Government Bailout --------------------------------------------------------------- Laura Pitel at The Financial Times reports that stricken German gas importer Uniper has announced the departure of chief executive Klaus-Dieter Maubach, the biggest casualty of a management shake-up after a multibillion-euro bailout by the federal government. Mr. Maubach, who took up the role in 2021, said it was "the right time to clear the way for a new management board team" as the energy company grapples with the fallout from Russian president Vladimir Putin's invasion of Ukraine. The company said Mr. Maubach would exercise his special right to terminate his contract and resign -- but would continue until a replacement was appointed some time this year. Uniper, once Europe's largest importer of Russian gas, reported a EUR40 billion loss for the first nine months of 2022, one of the biggest in corporate history. Fearing a collapse of the company would send shockwaves through the economy, the German government agreed to buy Uniper from Finnish energy group Fortum in a bailout set to cost as much as EUR51 billion. Shareholders approved the de facto nationalisation in December, with the government taking more than 99 per cent of the company's shares. Conditions of the bailout included a ban on bonus and dividend payments. Mr. Maubach, 60, was as recently as May last year defending Gazprom as a reliable supplier of gas to Europe. But Uniper began to lose tens of millions of euros a day after the Russian state-owned gas exporter drastically reduced supplies to Germany through the Nord Stream 1 pipeline in mid-June. =================== L U X E M B O U R G =================== LUXEMBOURG INVESTMENT: Fidelity Fund Marks $13.6M Loan at 20% Off ----------------------------------------------------------------- Fidelity Advisor Value Fund, a fund of Fidelity Advisor Series I, has marked its $13,685,000 loan extended to Luxembourg Investment Company 428 S.a r.l. to market at $10,948,000, or 80% of the outstanding amount, as of October 31, 2022, according to a disclosure contained in the Fidelity Fund's Form N-CSR for the fiscal year ended October 31, 2022, filed with the Securities and Exchange Commission on December 21. Fidelity Advisor Value Fund extended a Tranche B first lien term loan that carries an 8.5532% interest (CME Term SOFR 1 Month Index + 5.000%) to Luxembourg Investment Company 428 S.a r.l.. The loan is scheduled to mature on January 3, 2029 Fidelity Advisor Value Fund is a fund of Fidelity Advisor Series I, a Trust that is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company organized as a Massachusetts business trust. Fidelity Management & Research Company LLC (FMR) serves as investment manager. Luxembourg Investment Company 428 S.a r.l. (Heubach Group) is a global producer of organic and inorganic pigments. The company emerged from the combination of German-based Heubach Group and the Pigments Business of Clariant AG. MALLINCKRODT FINANCE: Calamos LSEDIT Marks Loan at 18% Off ---------------------------------------------------------- Calamos Long/Short Equity & Dynamic Income Trust has marked its $254,748 loan extended to Mallinckrodt International Finance SA to market at $208,535, or 82% of the outstanding amount, as of October 31, 2022, according to a disclosure contained in Calamos LSEDIT's Form N-CSR for the fiscal year ended October 31, 2022, filed with the Securities and Exchange Commission on December 29. Calamos LSEDIT extended a Bank Loan that carries an 8.733% interest (3 mo. LIBOR + 5.25%) to Mallinckrodt International Finance SA. The loan is scheduled to mature on September 30, 2027. Calamos LSEDIT was organized as a Delaware statutory trust on September 21, 2017 and is registered under the Investment Company Act of 1940, as a diversified, closed-end management investment company. The Fund commenced operations on November 29, 2019. Calamos Advisors LLC serves as the investment manager and administrator for the Fund. About Mallinckrodt PLC Mallinckrodt -- http://www.mallinckrodt.com/-- is a global business consisting of multiple wholly owned subsidiaries that develop, manufacture, market and distribute specialty pharmaceutical products and therapies. The company's Specialty Brands reportable segment's areas of focus include autoimmune and rare diseases in specialty areas like neurology, rheumatology, nephrology, pulmonology and ophthalmology; immunotherapy and neonatal respiratory critical care therapies; analgesics; and gastrointestinal products. Its Specialty Generics reportable segment includes specialty generic drugs and active pharmaceutical ingredients. On Oct. 12, 2020, Mallinckrodt plc and certain of its affiliates sought Chapter 11 protection in Delaware (Bankr. D. Del. Lead Case No. 20-12522) to seek approval of a restructuring that would reduce total debt by $1.3 billion and resolve opioid-related claims against them. Mallinckrodt plc disclosed $9,584,626,122 in assets and $8,647,811,427 in liabilities as of Sept. 25, 2020. Judge John T. Dorsey oversees the cases. The Debtors tapped Latham & Watkins, LLP and Richards, Layton & Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell, Lipton, Rosen & Katz as corporate and finance counsel; Ropes & Gray, LLP as litigation counsel; Torys, LLP as CCAA counsel; Guggenheim Securities, LLC as investment banker; and AlixPartners, LLP as restructuring advisor. Prime Clerk, LLC is the claims agent. The official committee of unsecured creditors retained Cooley, LLP, as its legal counsel; Robinson & Cole, LLP as co-counsel; and Dundon Advisers, LLC as financial advisor. On Oct. 27, 2020, the U.S. Trustee for Region 3 appointed an official committee of opioid-related claimants. The OCC tapped Akin Gump Strauss Hauer & Feld, LLP as its lead counsel; Cole Schotz as Delaware co-counsel; Province, Inc. as financial advisor; and Jefferies, LLC as investment banker. * * * Mallinckrodt plc on June 16, 2022, announced that it has successfully completed its reorganization process, emerged from Chapter 11 and completed the Irish Examinership proceedings. Implementing the Plan and the Scheme strengthens the Company's balance sheet, reduces its total debt by approximately $1.3 billion and enables it to move forward with more than $250 million in cash and cash equivalents on hand. The Plan and Scheme include key legal settlements that resolve opioid claims brought against the Company and litigation matters involving Acthar Gel, among other claims, and provides for significant equitization of the Company's guaranteed unsecured notes. =========================== U N I T E D K I N G D O M =========================== BRIDGEGATE FUNDING: Fitch Assigns 'BB(EXP)sf' Rating to Cl. E Notes ------------------------------------------------------------------- Fitch Ratings has assigned Bridgegate Funding PLC expected ratings. The assignment of final ratings is contingent on the receipt of final documents conforming to information already reviewed. Entity/Debt Rating ----------- ------ Bridgegate Funding PLC A XS2549049539 LT AAA(EXP)sf Expected Rating B XS2549049885 LT AA(EXP)sf Expected Rating C XS2549050032 LT A(EXP)sf Expected Rating D XS2549050206 LT BBB(EXP)sf Expected Rating E XS2549050461 LT BB(EXP)sf Expected Rating F XS2549050628 LT CCC(EXP)sf Expected Rating R XS2442283219 LT NR(EXP)sf Expected Rating S1 Certificate XS2442283649 LT NR(EXP)sf Expected Rating S2 Certificate XS2442284027 LT NR(EXP)sf Expected Rating X XS2442283482 LT CC(EXP)sf Expected Rating Z XS2549050891 LT NR(EXP)sf Expected Rating TRANSACTION SUMMARY The transaction is a securitisation of mortgages originated by The Mortgage Business (TMB), a subsidiary of Bank of Scotland (BoS). Over half of the assets were held in a previous securitisation, Deva Financing plc, which was rated by Fitch. The rest of the loans are from the TMB book and were not previously securitised. KEY RATING DRIVERS Seasoned Non-Prime Loans: The asset pool contains characteristics that were common in UK non-conforming origination prior to the global financial crisis. The collateral portfolio contains seasoned loans (16.2 years) and a high proportion of borrowers with late-stage arrears (12.2% has more than three monthly payments in arrears). In addition, the owner-occupied (OO) sub-pool also contains a high proportion of interest-only (IO) loans (86.8%) and borrowers with self-certified income (87.7%). Fitch considered the historical performance of TMB's previous transaction in its analysis and found it to be generally in line with the sector's indices. The OO and buy-to-let (BTL) portions of the pool were analysed using Fitch's non-conforming and BTL criteria assumptions, respectively. For both sectors a lender adjustment of 1.0x was applied. Loans Past Maturity: The provisional pool includes a significant share of loans (7.5% by current balance) that have passed the maturity date without making the final balloon payment. A portion of these (4.6% of the total pool) is flagged as performing as they are current with their interest payments. Fitch has made a data adjustment for these loans by classifying them as restructured (while the original field was marked as no data), reflecting the assumption of separate payment arrangements put in place between borrower and lender or implicit term extension. Unhedged Basis Risk: The portfolio, excluding defaulted loans, contains 54.2% loans linked to the Bank of England base rate (BBR) and 45.8% linked or reverting to a standard variable rate (SVR). There will be no hedging in place at close. As the notes pay daily compounded SONIA, the transaction is exposed to basis risk between the BBR and SONIA. Fitch has incorporated this risk into its analysis by applying a 0.15% margin reduction in the rising and stable interest-rate stress scenarios, in line with its UK RMBS Rating Criteria. Limited Excess Spread: Assets linked to BBR have a low weighted average (WA) margin above the base rate of 1.6%, while the SVR loans yield an all-in rate of 6.2% as of September 2022. Fitch projects a yield compression by assuming the SVR as margin over the notes index (SONIA). In line with its UK RMBS Rating Criteria, Fitch assumed a margin of 3% in rising interest rates and 3.5% in stable and decreasing interest rates. At closing, in a 'Bsf' scenario, assuming rising interest rates, the resulting excess spread after payment of floating fees, S1 certificate payments and the weighted average (WA) cost of the collateralised notes is 0.11%. Post step-up date, assuming the same asset margins and the increased notes spread, the excess spread becomes negative. As a result, Fitch considers that the class X notes are consistent with a 'CCsf' rating definition, which is 'default of some kind appears probable'. PDL Expected on First IPD: Fitch expects the time lag between BBR increases and corresponding increases in the rates (BBR and SVR) being charged to borrowers, combined with a one-off servicing fee payment due at closing to cause a debit on the principal deficiency ledger (PDL) at the first interest payment date (IPD). Fitch has taken this in to account by modelling an estimated PDL of GBP6 million or approximately 9% of the class Z note balance. As a result of the expected PDL debit at the first IPD, credit enhancement (CE) available to the rated notes is likely to reduce and lock-out triggers for the use of principal to cover for interest shortfalls are more likely to be breached. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: The transaction's performance may be affected by adverse changes in market conditions and economic environment. Weakening economic performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce CE available to the notes. Additionally, unanticipated declines in recoveries could also result in lower net proceeds, which may make certain note ratings susceptible to negative rating actions depending on the extent of the decline in recoveries. Fitch conducts sensitivity analyses by stressing both a transaction's base-case foreclosure frequency (FF) and recovery rate (RR) assumptions, and examining the rating implications on all classes of issued notes. A 15% increase in the WAFF and a 15% decrease in the WARR indicate downgrades of up to five notches across the capital structure. Factors that could, individually or collectively, lead to positive rating action/upgrade: Stable to improved asset performance driven by stable delinquencies and defaults would lead to increasing CE levels and, potentially, upgrades. Fitch tested an additional rating sensitivity scenario by applying a decrease in the FF and an increase in the RR of 15% each. The impact on all notes except for the class A notes could be upgrades of up to four notches. DATA ADEQUACY Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information, and concluded that there were no findings that affected the rating analysis. 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. ESG CONSIDERATIONS Bridgegate Funding PLC has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to high proportion of IO loans in legacy OO mortgages, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Bridgegate Funding PLC has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to a significant proportion of the pool containing OO loans advanced with limited affordability checks, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. BRITISHVOLT: Rescue Deal Values Business at Just GBP32 Million -------------------------------------------------------------- Peter Campbell and Harry Dempsey at The Financial Times report that a rescue deal for Britishvolt by a little-known Indonesian investor values the struggling battery start-up at just GBP32 million, more than 90% lower than a year ago, according to two people familiar with the proposed deal. The lead investor in a consortium of buyers is DeaLab Group Limited, a London-based financial group with close links to Indonesia, the people added, the FT notes. Yet, its proposed GBP158 million financing offer, which will keep the start-up solvent this year, puts the new would-be owners on a collision course with current shareholders, who will be almost wiped out by the deal, the FT discloses. They are expected to receive as little as 13p in the pound, according to one shareholder, who asked to remain anonymous, the FT states. Three-quarters of current shareholders, which include FTSE 100 groups Glencore and Ashtead, must back the deal by Friday, Jan. 13, the FT relays, citing two people. According to the FT, the people said the proposed offer will involve DeaLab investing GBP30 million for 95% of the equity of the company, leaving remaining shareholders with just 5% of the business between them. The new owners will then inject GBP128 million over the remainder of the year, with the hope the business can keep running until it receives its first battery orders from carmakers, which it expects later this year, the FT discloses. If the deal goes ahead, it will mean a sharp fall in Britishvolt's valuation to GBP32 million, a drop of 96% on the GBP774 million valuation during a funding agreement last February, according to the FT. Three people with knowledge of the talks said there was no alternative to the offer from DeaLab, leaving little prospect of Britishvolt remaining solvent if shareholders refuse to back the deal, the FT relates. ********* 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 2023. 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 * * *