---

       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, January 31, 2023, Vol. 24, No. 23

                           Headlines



C R O A T I A

ULJANIK: Offers 12.41% Stake in Adriadiesel for Sale


C Z E C H   R E P U B L I C

ALLWYN INTERNATIONAL: S&P Upgrades ICR to 'BB', Outlook Stable


G E R M A N Y

COLOUROZ INVESTMENT 1: EUR609M Bank Debt Trades at 33% Discount
WITTUR HOLDING: EUR565M Bank Debt Trades at 36% Discount


L U X E M B O U R G

FLAMINGO II LUX: S&P Affirms 'B' ICR & Alters Outlook to Negative
SUNSHINE LUXEMBOURG VII: S&P Rates New CHF240MM Term Loan B 'B-'
TRAVELPORT FINANCE: $1.96B Bank Debt Trades at 36% Discount


N E T H E R L A N D S

ATLAS TECHNOLOGIES: Declared Insolvent by Dutch Court
NORICAN GLOBAL: S&P Places 'CCC+' ICR on CreditWatch Positive


U K R A I N E

[*] UKRAINE: Needs Add'l. US$17BB in Financing for Energy Repairs


U N I T E D   K I N G D O M

FLYBE: Enters Administration for Second Time After Relaunch
GLISSER: Goes Into Administration, 25 Jobs Affected
PAPERCHASE: On Verge of Administration Following Sale Talks
THAME AND LONDON: S&P Raises LT ICR to 'B-', Outlook Stable
THEDRINKSHOP.COM: Goes Into Administration, Owes GBP756,305

TUDOR ROSE 2021-1: S&P Raises RFN-Dfrd Notes Rating to 'B+(sf)'

                           - - - - -


=============
C R O A T I A
=============

ULJANIK: Offers 12.41% Stake in Adriadiesel for Sale
----------------------------------------------------
Annie Tsoneva at SeeNews reports that Croatian shipbuilder Uljanik,
which is undergoing a bankruptcy procedure, said it is offering for
sale its 77,436 shares of engine manufacturer Adriadiesel, equal to
a 12.41% stake in the company, for a minimum price of EUR514,175
(US$557,200).

According to SeeNews, written bids for the sale of the stake could
be submitted by Jan. 30, Uljanik said in a statement on its
website.  The bids will be opened on Feb. 1, SeeNews discloses.

The top-ranked bidder is due to sign a deal for the purchase of the
shares until Feb. 15, SeeNews states.




===========================
C Z E C H   R E P U B L I C
===========================

ALLWYN INTERNATIONAL: S&P Upgrades ICR to 'BB', Outlook Stable
--------------------------------------------------------------
S&P Global Ratings raised its ratings on Allwyn International a.s.
(Allwyn) and its senior secured debt to 'BB' from 'BB-'. The '3'
recovery rating on the debt remains unchanged.

S&P said, "The stable outlook reflects our expectation that Allwyn
will continue to deleverage organically over the next 12 months,
supported by solid EBITDA and operational cash flow growth.
Specifically, we project that the company's weighted-average S&P
Global Ratings-adjusted leverage will be about 3.5x and funds from
operations (FFO) to debt will be over 20%."

Allwyn's business profile continues to strengthen, following the
completion of numerous acquisitions over the past 12 months,
improving scale and diversification. Earlier in 2022, Allwyn agreed
to purchase the remaining minority interest in Allwyn Greece &
Cyprus Holding Ltd., an entity through which Allwyn held part of
its interest in OPAP, for a consideration of EUR327.4 million. In
addition, throughout 2022, Allwyn continued to make market
purchases and take scrip dividends, raising its total economic
interest to 50.1% as of year-end 2022. S&P assumes the pace of
market purchases will decline now that Allwyn is above the 50%
threshold, and that it will likely opt for cash pay dividends
rather than scrip.

In the U.K., Allwyn is due to replace Camelot UK as the operator of
the UK National Lottery (UKNL).Allwyn will operate the remaining
third UKNL license set to expire by Jan. 31, 2024, which it agreed
to acquire from Ontario Teachers' Pension Plan on Nov. 18, 2022;
subsequently, it will run the fourth UKNL 10-year license from Feb.
1, 2024, after being selected as the preferred candidate. In our
view, Allwyn's entrance into the U.K. market provides Allwyn with
several benefits, including entering into a new geographical
market, addition of a new reasonably long-tail lottery license, and
a fully owned contributor to group consolidated earnings.

Allwyn's Betano acquisition reflects its growth strategy in the
online segment, with further geographic diversification. Allwyn
acquired the 36.75% stake in Betano from OPAP for about EUR74
million plus some earnout payments payable over 2023-2025. Betano
operates in seven markets, with a particularly strong presence in
Romania and Portugal and a rapidly growing business in Brazil.

In the U.S., Allwyn will acquire the Camelot Lottery Solutions
Group (CLS) from Ontario Teachers' Pension Plan. Principally, CLS
holds a 10-year exclusive contract of the Illinois Lottery expiring
in October 2027. In addition, it provides digital game content to
lotteries offering e-Instants, with the ability to also offer an
iLottery platform and data. In S&P's view, this is a further
potential growth avenue marking Allwyn's entry into a region that
has potential growth options.

Allwyn has recently refinanced the majority of its term debt
funding to the HoldCo level. Following the issue of EUR600 million
notes on Feb. 2, 2022, at the HoldCo level, Allwyn announced a new
EUR1.6 billion senior facilities agreement with a syndicate of
international banks signed on Nov. 17, 2022. Allwyn used the
proceeds primarily to refinance existing debt, provide term
financing for upfront costs ahead of the start of the UKNL license,
and funded a EUR200 million dividend to its parent KKCG.

Allwyn has simplified its corporate structure; however, it
continues to rely on cash flow from subsidiaries it does not fully
own to service parent level indebtedness as well as hold the
ability to increase structurally senior indebtedness in certain
subsidiaries. Lottoitalia and Sazka Group A.S. are currently debt
free, whereas OPAP and CASAG maintain subsidiary-level debt
facilities. S&P said, "We do not model increases in debt at the
subsidiary level; however, we are conscious that additional
indebtedness at any subsidiary is structurally advantaged vis-a-vis
Allwyn's HoldCo debt financing. Additionally, although Allwyn
reports fully consolidated accounts based on its controlling
positions in OPAP and CASAG, while equity accounting for
Lottoitalia, its debt servicing cash requirements are predominately
at the HoldCo, and access to cash at the parent may differ from
consolidated reporting. For example, cash profits could be retained
from time to time by a subsidiary. As such, we are also conscious
of cash debt service cover of the group's financing obligations at
the HoldCo level being comfortably covered and supportive of a 'BB'
rating. We consider liquidity availability and debt service cover
at the HoldCo as being important indicators of the group's
financial standing. We now anticipate that by year-end 2023, Allwyn
will have about 70% of total proportionally consolidated debt at
the HoldCo level (EUR2.7 billion of HoldCo debt, EUR450
million-EUR500 million of proportionate debt at OPAP and CASAG,
EUR500 million of Apollo's investment treated as debt, and about
EUR200 million of operating leases and other adjustments). As per
our estimates, we expect the cash inflows at the HoldCo level
(namely dividend income) over outflows (including operating costs,
interest, tax, and scheduled amortizations) to be comfortably over
2x in the next 12-24 months."

S&P said, "Allwyn continues to demonstrate a solid financial
performance, with revenue growth and resilient cash flow generation
following our expectation of strong full-year results, and credit
metrics we expect will strengthen further over the next 12-24
months. Allwyn's proportionate revenue and EBITDA increased to
EUR1.7 billion and EUR556 million in financial year ended Dec. 31,
2021, while S&P Global Ratings-adjusted leverage declined to 4.2x,
slightly ahead of our previous expectations. We anticipate revenue
and EBITDA to further grow in 2022 to over EUR2.5 billion and
EUR700 million-EUR750 million respectively, and leverage to decline
below 4x, thanks to organic growth, an increased contribution from
certain subsidiaries compensating for the slightly weaker
Lottoitalia performance, and continued structurally higher
profitability. We also note significant growth in Allwyn's online
customer base, which we expect will support further growth.

"In 2023, we anticipate proportionate revenue to substantially grow
following strong M&A activity, reaching over EUR6 billion. We
expect proportionate EBITDA between EUR865 million-EUR915 million
and adjusted leverage to decline toward 3.5x. In our view, a solid
operating performance will result in strong free operating cash
flow (FOCF), which will allow Allwyn the financial flexibility to
maintain a sustainable financial cushion that balances M&A and
leverage within the threshold for the rating. We also expect
Allwyn's cash flow to be affected by its lack of interest rate
hedging, given that about 50% of Allwyn's debt is floating, and we
anticipate ongoing rising interest costs.

"The group's financial policy of reported pro rata net debt to
EBITDA of below 3x allows Allwyn to temporarily exceed the target
in case of attractive M&A opportunities. Allwyn is seen as a
successful consolidator in the market. Overall, we currently expect
the group's cash flow to continue to increase, allowing scope for
its adjusted leverage to fall toward 3.5x over the next 12 months,
depending on M&A and dividend distributions. We further acknowledge
that as the group continues to grow, the potential acquisition
impact on the overall group metrics is likely to decline over
time.

"We assume a stable regulatory environment. Allwyn operates in the
Austrian gaming market through its subsidiary, CASAG. Ministers
within this jurisdiction have noted that additional gaming
regulation is being considered, in terms of taxation, regulatory
bodies, allowable products, and operational gaming features. The
potential package would include the creation of an independent
regulator and the domain name system (DNS)-blocking and
blacklisting of illegal operators, which we understand would
benefit CASAG's iGaming in particular. We have not taken an
explicit earnings sensitivity to CASAG based on uncertainty
regarding timing, implementation, and measures. In addition, the
license tender for Lottoitalia is due in 2025, which is during the
current financing term. We assume the group will be able to renew
its licenses and therefore continue to benefit from Lottoitalia
dividends. Other upcoming license renewals for Allwyn include
instant lotteries (2026) and iGaming (2028) in Greece, and all
lottery and iGaming (2027) in Austria and Czech Republic.

"In our view, renewal risk and associated capex are a continual key
risk for gaming groups, which underpin their intellectual property
and ability to exploit commercial revenue. Likewise, regulatory
risk, including governments' taxation policies, remains a common
risk for gaming companies.

"The stable outlook reflects our expectation that Allwyn will
continue to deleverage over the next 12-24 months, supported by
solid EBITDA and operational cash flow growth. Specifically, we
project that the company's weighted-average adjusted leverage will
be about 3.5x and FFO to debt will be over 20%.

"We could lower the rating if earnings declined or the company took
on additional debt, such that its leverage metrics remained above
4x or FFO to debt fell below 20% on a sustained basis. This could
occur due to weakness in operational performance, M&A strategy, or
dividend distributions to the parent.

"We could also consider lowering the rating if Allwyn's liquidity
deteriorates from declining cash inflow receipts at the holding
level, resulting in declining coverage of mandatory and fixed
charges such as parent level interest, amortization, and operating
costs. Specifically, we could consider a downgrade if cash inflows
at the HoldCo level (namely dividend income) over outflows
(including operating costs, interest, tax, and scheduled
amortizations) decline below 2x on a sustained basis. In our HoldCo
servicing analysis, we would examine the reasons behind material
changes in cash coverage in conjunction with the relative liquidity
availability and scoring.

"Lastly, we consider in our analysis of the downside triggers to
the rating the group's track record and financial policy in meeting
financial budgets and ability to deleverage.

"An upgrade during our outlook horizon is unlikely because of
Allwyn's appetite for continued M&A activity. However, we could
raise the ratings if the company expanded its scale,
diversification, and competitive advantage. Additionally,
improvement could stem from a substantial portion of the group's
earnings being generated from wholly owned subsidiaries,
significantly reducing potential restrictions or access constraints
on subsidiary cash flow. We could raise our ratings if Allwyn
improved its financial metrics such that its adjusted leverage
declined below 3x and FFO to debt averaged comfortably over 30% on
a sustainable basis." This would need to be supported by the
following:

-- The potential impact from regulatory changes in Allwyn's main
markets not affecting the group's ability to achieve these cash
flows and leverage ratios; and

-- The company maintaining adequate liquidity and adhering to a
financial policy that supports commitment to the abovementioned
adjusted ratios.

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

S&P said, "Social factors are a moderately negative consideration
in our credit rating analysis of Allwyn. Like most gaming
companies, Allwyn is exposed to regulatory and social risks and the
associated costs related to increasing player health and safety
measures, prevention of money laundering, and changes to gaming
taxes and laws. Allwyn is exposed to Italy, the Czech Republic,
Greece, and the U.K. among other jurisdictions. We generally
consider lottery to be one of the better positioned gaming product
categories from a social risk and player protection perspective."

Governance factors are a moderately negative consideration. Allwyn
has a corporate structure whereby it wholly owns some subsidiaries
such as Sazka A.S., whereas other major operations such as OPAP and
Casinos Austria are controlled through significant ownership
positions, and Lottoitalia is a minority ownership position. As
such, only a portion of the group's reported earnings are generated
through wholly owned operations. Allwyn has a single controlling
majority shareholder with the ability to influence corporate
decision-making.




=============
G E R M A N Y
=============

COLOUROZ INVESTMENT 1: EUR609M Bank Debt Trades at 33% Discount
---------------------------------------------------------------
Participations in a syndicated loan under which ColourOZ Investment
1 GmbH is a borrower were trading in the secondary market around
66.8 cents-on-the-dollar during the week ended Friday, January 27,
2023, according to Bloomberg's Evaluated Pricing service data.

The EUR609.4 million facility is a Term loan that is scheduled to
mature on September 7, 2023. The amount is fully drawn and
outstanding.

ColourOz Investment 1 GmbH manufactures paint products.  The
Company's country of domicile is Germany.


WITTUR HOLDING: EUR565M Bank Debt Trades at 36% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Wittur Holding GmbH
is a borrower were trading in the secondary market around 63.8
cents-on-the-dollar during the week ended Friday, January 27, 2023,
according to Bloomberg's Evaluated Pricing service data.

The EUR565 million facility is a Term loan that is scheduled to
mature on September 23, 2026. 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. The
Company's country of domicile is Germany.




===================
L U X E M B O U R G
===================

FLAMINGO II LUX: S&P Affirms 'B' ICR & Alters Outlook to Negative
-----------------------------------------------------------------
S&P Global Ratings revised its outlooks on Flamingo II Lux and
Emeria SASU to negative from stable and affirmed the 'B' long-term
issuer credit ratings on the entities, its 'B' issue rating on the
group's senior secured debt, and its 'CCC+' issue rating on the
junior subordinated debt. S&P also assigned its 'B' issue rating
and '3' (50%) recovery rating to the proposed EUR400 million senior
secured notes.

The negative outlook reflects that S&P could lower the long-term
ratings if continued high exceptional costs associated with M&A and
increased interest costs result in Emeria's inability to
meaningfully improve FOCF and reduce leverage from elevated levels
of 9x-10x.

France-based real estate services company Emeria SASU (previously
Foncia Management; sole operating company of Flamingo II Lux GP
S.a.r.l.) plans to issue EUR400 million of new senior secured notes
to repay about EUR240 million of drawings on its revolving credit
facility (RCF) and secure additional cash on the balance sheet.

S&P said, "The outlook revision reflects credit metrics
deterioration compared with our previous expectations, with
leverage of above 12x in 2022 and remaining elevated at about
9x-10x in 2023.Following the largely debt-funded acquisition of
FirstPort in 2022, we expected Emeria would decrease its adjusted
debt to EBITDA toward 8.0x within 12-24 months, combined with FOCF
to debt recovering to above 5% from 2023. Our revised base case,
which considers higher-than-expected cash outflows related to
integration and restructuring costs and includes the proposed new
EUR400 million senior secured notes plus associated interest costs,
indicates slower deleveraging with debt to EBITDA remaining very
high at 9x-10x in 2023 and improving toward 8x only in 2024.
Although we acknowledge that the proposed transaction will
replenish liquidity as proceeds will be used to repay the RCF, we
consider it demonstrates increased debt tolerance at a time of
unfavorable macroeconomic and financing conditions. In our view, it
also leaves no headroom for underperformance or for any M&A,
shareholder distributions, or other transactions that would hinder
material deleveraging.

"Despite resilient operating performance and EBITDA growth via M&A,
we project significantly weaker FOCF, with FOCF to debt of about
1%-3% over the next 24 months. Emeria reported about 12% revenue
growth in the first nine months of 2022, largely driven by
contributions from M&A with 55 completed in the period, and saw
about 10% growth in EBITDA before nonrecurring expenses. We expect
operating performance will remain resilient owing to a large
proportion of recurring revenue from stable residential property
management activities and the group's ability to mitigate
inflationary pressures with pass-through mechanisms included in
contracts or price negotiations. However, operating performance
could be challenged by depressed macroeconomic and real estate
market conditions in the coming year, especially in the brokerage
segment. Moreover, continued high integration and restructuring
costs associated with the group's external growth strategy, coupled
with increasing interest expenses in the currently high interest
rates environment, will squeeze cash flow, resulting in neutral
FOCF after lease payments in 2023 and EUR25 million-EUR35 million
in 2024, after negative EUR20 million-EUR25 million in 2022. This
corresponds to S&P Global Ratings-adjusted FOCF to debt of about
1%-2% in 2022-2023, and moderate improvement toward 2.5%-3.0% in
2024."

Further downside could arise from the increasingly aggressive M&A
strategy. The proposed debt issuance, which follows the largely
debt-funded acquisition of FirstPort, indicates tolerance for high
leverage and the intention to continue to fund future M&A with
debt. Proceeds from the proposed notes will be used to repay about
EUR240 million of drawings on the RCF and secure additional cash on
the balance sheet, which will likely be used to support the group's
external growth strategy. Similarly, as demonstrated in recent
months, the group is likely to utilize amounts available under the
RCF for M&A. Even though target M&A multiples in the 5.0x area
could support deleveraging, this is offset by high integration and
restructuring costs. S&P includes these in its adjusted EBITDA
calculation, since S&P considers them recurring, given the group's
M&A-driven growth strategy.

The group expects significant operational improvements and EBITDA
synergies via new enterprise resource planning (ERP) system
Millenium, as well as new organizational model "Agency of the
future". Emeria is accelerating the implementation of its Millenium
ERP system, which it expects will deliver up to EUR60 million of
additional EBITDA once fully deployed, since increased automated
processes will likely improve productivity. In the short-to-medium
term, the targeted cost efficiencies of EUR25 million could further
support EBITDA, but S&P has only included a portion of this in its
forecasts, since the benefits of the new system are still to be
demonstrated. Nevertheless, in the longer term, this could
partially offset the group's high integration- and M&A-related
costs.

S&P said, "The negative outlook reflects that we could lower the
rating if continued high exceptional costs associated with M&A and
increased interest costs result in Emeria's inability to
meaningfully improve FOCF and reduce leverage from elevated levels
of 9x-10x.

"We could lower the ratings if we assess the group's financial
policy as increasingly aggressive, with ongoing debt-funded M&A or
shareholder returns resulting in persistent very high debt to
EBITDA with no clear path to significant deleveraging.

"We could also lower the ratings if Emeria underperforms our
forecasts due to tougher real estate market conditions, increased
competition, less stringent selection of M&A targets, or
difficulties in integrating acquisitions, resulting in weaker cash
flow or heightened liquidity pressure." Specifically, S&P could
lower the rating if:

-- FOCF does not meaningfully improve, with FOCF to debt sustained
materially below 5%; or

-- FFO cash interest coverage decreases below 2.0x

S&P could revise the outlook to stable if the group reduces its
leverage on expanding revenue and EBITDA following completed M&A
and increases FOCF significantly such that FOCF to debt improves
toward 5% and FFO cash interest coverage above 2.0x.

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

S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of Emeria. Our
assessment of the company's financial risk profile as highly
leveraged reflects corporate decision-making that prioritizes the
interests of the controlling owners, in line with our view of the
majority of rated entities owned by private-equity sponsors. Our
assessment also reflects generally finite holding periods and a
focus on maximizing shareholder returns."


SUNSHINE LUXEMBOURG VII: S&P Rates New CHF240MM Term Loan B 'B-'
----------------------------------------------------------------
S&P Global Ratings has assigned its 'B-' issue rating to the new
CHF240 million-equivalent term loan B due in October 2026 issued by
Sunshine Luxembourg VII (Galderma). The new term loan B will be
leverage neutral because it will be used to pay a portion of the
revolving credit facility (RCF) drawings and transaction fees and
expenses. As a result, S&P's ratings on Galderma remain unchanged
at 'B-'.

S&P said, "The recovery rating on the first-lien debt, comprising
the existing CHF3.5 billion-equivalent term loan B due in October
2026, the existing CHF500 million-equivalent RCF due in March 2026,
and the new CHF240 million-equivalent term loan B, remains at '3',
reflecting our expectations of average recovery prospects (50%-70%;
rounded estimate 65%) in the event of default. The recovery rating
is supported by our valuation of the business as a going concern
given its strong market position in the U.S. market (48% of sales
in the financial year 2021), and the solid underlying performance
of the skincare industry. However, it is constrained by the large
amount of senior secured debt and by a security package mainly
comprised of share pledges. We rate first-lien debt in line with
the issuer credit rating at 'B-'."

Galderma has used part of its CHF500 million-equivalent RCF due
2026 to finance the acquisition of Alastin (a U.S. based skincare
company) in December 2021. Since the end of 2021, RCF drawdowns
have fluctuated, but the group has been unable to materially reduce
them. As of Dec. 31, 2022, the RCF was drawn by about $355 million.
Galderma aims to reduce the outstanding RCF drawn amount to ensure
the RCF remains available to finance day-to-day business needs,
such as working capital investments, and that operations run
smoothly.


TRAVELPORT FINANCE: $1.96B Bank Debt Trades at 36% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Travelport Finance
Luxembourg Sarl is a borrower were trading in the secondary market
around 64.4 cents-on-the-dollar during the week ended Friday,
January 27, 2023, according to Bloomberg's Evaluated Pricing
service data.

The $1.96 billion facility is a Term loan that is scheduled to
mature on May 29, 2026.  The amount is fully drawn and
outstanding.

Travelport Finance Luxembourg Sarl operates as a subsidiary of
Travelport Holdings Ltd.  The Company's country of domicile is
Luxembourg.





=====================
N E T H E R L A N D S
=====================

ATLAS TECHNOLOGIES: Declared Insolvent by Dutch Court
-----------------------------------------------------
According to electrive.com, Atlas Technologies, the operating
company responsible for the production of the Lightyear solar cars,
has now been declared insolvent by a Dutch court.

What will happen to the entire project is now very uncertain,
electrive.com states.

A few days ago, Lightyear had already announced the stop of
production for the Lightyear 0 in order to concentrate on the
Lightyear 2, electrive.com discloses.  

The application made at that time to open suspension of payments
proceedings for Atlas Technologies has now been approved by the
court and an insolvency administrator has been appointed, who is
now to examine "how the Lightyear concept can be continued",
electrive.com relates.

Although the bankruptcy proceedings formally affect only the
manufacturing company and not the parent Atlas Technologies
Holding, which owns Lightyear's intellectual property, the future
of Lightyear 2 also appears unclear, electrive.com notes.


NORICAN GLOBAL: S&P Places 'CCC+' ICR on CreditWatch Positive
-------------------------------------------------------------
S&P Global Ratings placed Norican Global A/S's (Norican) CCC+
rating on CreditWatch positive and anticipate that it will raise
the rating by two notches as soon as the refinancing is closed,
provided that the company's S&P Global Ratings-adjusted debt to
EBITDA remains below 6x and funds from operations (FFO) cash
interest coverage remains sustainably above 2x.

Danish metallics enhancement firm Norican announced the signing of
commitments for new loan facilities, to be provided by a consortium
of Nordic banks and investment funds.

Norican's proposed refinancing will reset its liquidity profile and
allow for positive free cash flow generation. The completion of the
refinancing remedies the group's liquidity profile and what has
been a key rating constraint. S&P said, "In addition, we anticipate
that Norican's credit metrics will improve mainly due to the
reduction of its gross financial debt using its cash on hand.
According to Norican, upon closing and after debt repayment, the
group will retain about EUR50 million of the EUR156 million cash on
hand it had as of Sept. 30, 2022. This will translate into an S&P
Global Ratings-adjusted debt-to-EBITDA ratio of 4.0x-5.5x in
2023-2024. Moreover, despite higher interest rate margins, we
expect a relatively solid FFO cash interest coverage ratio in
excess of 2x in the next two years (excluding our assumption for
refinancing costs and advisory fees in 2023). In addition, in our
base case, we expect positive free operating cash flow (excluding
transaction fees) of about EUR20 million-EUR30 million on average
in 2023-2024." Including transaction costs and advisory fees, FOCF
is likely to be roughly breakeven to moderately negative in 2023.

S&P said, "We anticipate that Norican's sources of liquidity over
uses will be above 1.2x and that it will not have major debt
maturities in the next three years. The transaction entails a new
committed long-term RCF of EUR60 million, of which EUR25 million is
currently used for bank guarantees.

"We anticipate Norican will report record-high revenue and margin
in 2022, supported by a resilient order backlog.In our current base
case, we expect Norican will report revenue of EUR510
million-EUR520 million as of end-2022, representing an increase of
29%-32% from end-2021. The company's ability to pass cost inflation
to the customer should be proven by a resilient EBITDA margin,
expected at 10.5%-11.0%, despite some one-off costs, namely
restructuring cost in Europe and integration costs relating to the
acquisition of Simpson Technologies. For 2023, we now anticipate
Norican's top-line will grow by 5%-10% as a function of its recent
Simpson acquisition and further like-for-like price adjustments,
but that lower volumes will likely result in somewhat lower
margins.

"We could upgrade Norican by two notches if its FFO cash interest
coverage ratio remains sustainably above 2x, its S&P Global
Ratings-adjusted debt to EBITDA remains below 6x, and FOCF
generation remains robust at about EUR20 million-EUR30 million per
year.

"We expect to resolve the CreditWatch in the first quarter of 2023
after the transaction has closed and once we have reviewed the
final terms of the refinancing."

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




=============
U K R A I N E
=============

[*] UKRAINE: Needs Add'l. US$17BB in Financing for Energy Repairs
-----------------------------------------------------------------
Olena Harmash at Reuters reports that Ukraine will need an
additional US$17 billion in financing this year for energy repairs,
de-mining and to rebuild infrastructure, Prime Minister Denys
Shmyhal said on Jan. 27.

According to Reuters, he told a government meeting that five
high-voltage substations in the central, southern and south-west
regions were hit during Russia's air attacks on Jan. 26.

The energy sector has been severely damaged following four months
of Russian missile and drones attacks, Reuters discloses.

Mr. Shmyhal, as cited by Reuters, said the government hosted a
meeting with Western partners this week to coordinate financial
support in a transparent and efficient way.

"This year we need to finance a huge budget deficit of about US$38
billion.  Another US$17 billion this year will be needed for fast
reconstruction of the energy, humanitarian de-mining, rebuilding of
the housing, critical and social infrastructure," Reuters quotes
Mr. Shmyhal as saying at the meeting.

The government also said it was setting up a state agency for
infrastructure recovery and development, Reuters notes.




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

FLYBE: Enters Administration for Second Time After Relaunch
-----------------------------------------------------------
Philip Georgiadis at The Financial Times reports that UK airline
Flybe has collapsed into administration for a second time, less
than a year after relaunching to connect underserved regional
destinations.

The airline announced its closure in the early hours of Saturday,
Jan. 28, as it cancelled all its flights and urged passengers not
to try to travel, the FT relates.

According to the FT, the administrators said 276 employees had lost
their jobs. EasyJet, British Airways and Ryanair were offering
discounted fares to stranded Flybe customers.

The sudden collapse means that lucrative take-off and landing slots
at Heathrow airport will be for sale as part of the insolvency
process, and the airline's administrators told the FT that there
was "a massive ‘for sale' sign" on the company.

Flybe only began flying again under new owners in April 2022, after
the original airline collapsed just as the impact of the
coronavirus pandemic swept through the travel industry in March
2020, the FT recounts.

The carrier was bought from administrators EY in October 2020 by a
company run by investor Lucien Farrell's hedge fund Cyrus Capital,
the FT relays.  Cyrus had originally injected money into Flybe as
part of a rescue spearheaded by Virgin Atlantic in 2019, the FT
notes.

The relaunched airline was a significantly smaller operation, and
operated flights on 21 routes to 17 destinations across the UK and
EU on a fleet of eight leased aircraft.

David Pike, an executive at administrator Interpath Advisory,
explained the sale of the business would include slots at capacity
constrained Heathrow airport, the FT relates.

He said the slots could only be sold alongside a sale of the
business, and would not be available to buy on their own, according
to the FT.


GLISSER: Goes Into Administration, 25 Jobs Affected
---------------------------------------------------
TechMarketView reports that Glisser is to enter administration this
week, affecting 25 jobs.

Michael Piddock founded Glisser after a varied career spanning
marketing roles at LendLease, Vanco and Octopus Investments, where
he was subsequently appointed VCT Business Manager the year before
he launched Glisser, TechMarketView discloses.

According to TechMarketView, Mr. Piddock struggled to raise
significant funding for Glisser, securing a US$1 million seed
investment from Downing Ventures and London Co-Investment Fund (et
al) in 2016, with an unspecified follow-on funding round in May
2022, with Gresham House also participating.


PAPERCHASE: On Verge of Administration Following Sale Talks
-----------------------------------------------------------
Sky News reports that Paperchase, the high street stationery
retailer, is close to collapsing into administration as hopes of a
solvent rescue deal fade.

Sky News understands the chain's parent company could appoint
insolvency practitioners from Begbies Traynor as soon as today,
Jan. 31.

According to Sky News, Paperchase's shareholders remain in
discussions with more than one potential buyer, although insiders
said that a sale of the business was now focused on a pre-pack
deal, which involves a company's assets being sold immediately
after it has fallen into administration.

It is unclear how many jobs or stores would be put at risk by an
insolvency, Sky News notes.

The latest development follows weeks of talks with prospective
buyers, after PricewaterhouseCoopers was appointed to find new
backers, Sky News states.

Sky News recently revealed that Paperchase had been put up for sale
just four months after its most recent change of ownership.

Paperchase had previously been one of many retail casualties of
COVID-19, having undergone a pre-pack administration in January
2021.


THAME AND LONDON: S&P Raises LT ICR to 'B-', Outlook Stable
-----------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on
Thame and London Ltd. (Travelodge) to 'B-' from 'CCC+'.

S&P said, "The stable outlook reflects our view that Travelodge
will continue to report revenue growth and generate positive free
cash flow after lease payments in 2022 and into 2023-2024 despite
the macroeconomic environment. We believe Travelodge has sufficient
liquidity to meet its financial obligations over the next 12-24
months.

"We expect full-year fiscal 2022 revenue to surpass pre-pandemic
levels thanks to a rebound in leisure and blue-collar travel during
summer 2022.Year to date results to September 2022 show revenues of
up to GBP670 million, significantly increasing from GBP375 million
in 2021 and GBP546 million reported in 2019. The group benefitted
from the significant increase in revenue per available room
(RevPAR) across the sector. Specifically, Travelodge saw 20.8%
like-for-like growth for the nine months to September 2022.
Occupancy has rapidly recovered, and we expect it will remain above
80% for fiscal 2022 and into fiscal 2023. Nevertheless,
white-collar demand is still lagging behind as business travel
remains subdued.

"We expect the positive momentum to continue into fiscal 2023 with
RevPAR holding above GBP50; however, occupancy could marginally
fall as consumers' discretionary spending shrinks. Despite the
macroeconomic headwinds and its impact on discretionary spending,
U.K. households have continued to spend on national leisure travel,
a trend that we expect to continue into 2023. We anticipate RevPAR
to remain resilient above GBP50 for Travelodge. However, occupancy
and discretionary spending in hotels (including food and beverages)
could marginally fall as people reduce their travel budgets.

"We expect high inflation will pressure Travelodge's margins into
fiscals 2023 and 2024.Whilst we expect Travelodge's revenues will
stay above GBP900 million in 2023, EBITDA margins could fall by up
to 400-500 basis points as a result of higher wages, energy costs,
and other expenses such as laundry. Staff costs account for more
than 40% of the total cost base (excluding leases) and more than
two-thirds of the staff cost is linked to national living wage. We
expect the increase on living wage, announced by the government and
starting from April 2023, will have an effect of more than 10% on
employee costs. Whilst the group does not have an energy hedge from
March 2023, we expect it will benefit from potentially decreasing
commodity prices over the next months. The group has a high
operating leverage as a result of its large lease base, which can
lead to high volatility in margins in case of macroeconomic
headwinds.

"Liquidity profile has improved following the full repayment of the
revolving credit facility (RCF) and cash generation during 2022. We
reviewed our liquidity assessment and now view Travelodge's
liquidity as adequate. The group repaid both the GBP60 million
super senior term loan (in October 2022) and the GBP40 million RCF
with cash reserves. The RCF remains undrawn and available to the
group. Despite the expected increase in capital expenditure (capex;
as the group accelerates investments in its estate that it put on
hold during the pandemic), we expect Travelodge will finish fiscal
2022 with about GBP150 million of cash reserves. We anticipate this
will be sufficient to absorb the negative impact of inflation and
rising interest rates, and to absorb working capital swings
resulting from large lease payments over the next 12-24 months.

"Whilst we expect leverage will fall below 7.5x, Travelodge
continues to be highly leveraged.We expect the improvement in
EBITDA levels as well as the repayment of about GBP100 million of
financial debt during 2022 will lead to adjusted debt to EBITDA
level falling below 7.0x, and marginally increasing in 2023 toward
7.5x due to lower EBITDA margins. Whilst this is significantly
below historical levels of above 10.0x, we continue to view the
capital structure as highly leveraged.

"The stable outlook reflects our view that Travelodge will continue
to report revenue growth and adjusted EBITDA above GBP400 million.
It also reflects our belief that the company will navigate the
current macroeconomic situation thanks to resilient demand for
leisure travel, which is expected to largely offset inflationary
pressures. As a result, we forecast adjusted debt to EBITDA of
6.5x-7.5x and adjusted EBITDA cash interest coverage of above 1.6x
for fiscals 2022 and 2023. We think Travelodge has sufficient
liquidity to meets its upcoming obligations for the next 12-24
months."

S&P could take a negative rating action on Travelodge if the group
were to underperform its base case resulting in:

-- Cash generation deteriorating in such a way that the free cash
flow after lease payments falls below GBP20 million on a sustained
basis, or the EBITDA cash interest coverage ratio falls below
1.6x;

-- Liquidity weakening such that the company risked a breach in
financial covenants or failed to meet its financial obligations;

-- Leverage increasing to such levels that would make the group
vulnerable to adverse macroeconomic conditions or the capital
structure becoming unsustainable; or

-- The company being unable to successfully refinance its upcoming
2024 and 2025 debt maturities.

Although unlikely at this stage given its financial leverage and
significant amount of financial leases on its balance sheet, S&P
could consider a positive rating action if it foresaw:

-- A steady improvement in the macroeconomic environment that
could allow the group to grow its revenue and generate EBITDA
margins above S&P's base case;

-- Material cash flow generation resulting in free operating cash
flow after leases of over GBP50 million-GBP70 million per year and
EBITDA cash interest coverage ratio well above 2.0x; and

-- Leverage reducing below 6.5x on a sustained basis with a
financial policy supportive of these ratios.

A positive rating action would be contingent on Travelodge
maintaining at least adequate liquidity with adequate headroom in
its covenants reflecting 30% headroom.

ESG credit indicators: To E-2, S-3, G-3; From E-2, S-4, G-3

S&P said, "Social factors are now a moderately negative
consideration in our credit rating analysis of Travelodge. During
the pandemic, travel restrictions and subsequent lockdowns prompted
a decline in Travelodge's 2020 revenue of about 60% compared with
2019. We now see these risks as having been alleviated with revenue
expected to be above pre-pandemic levels in 2022 at about GBP900
million. Travelodge is well positioned in the budget and economy
segment, and we expect it will continue to benefit from recovery in
international travel despite the macroeconomic headwinds.
Nevertheless, we see social risks as an inherent part of the hotel
industry, which is exposed to health and safety concerns,
terrorism, cyberattacks, and geopolitical unrest."


THEDRINKSHOP.COM: Goes Into Administration, Owes GBP756,305
-----------------------------------------------------------
Arabella Mileham at The Drinks Business reports that online UK
retailer thedrinkshop.com has gone into administration.

The Kent-based drinks retailer, which was established in November
1999, appointed administrator Opus Restructuring LLP (based in
Maidstone) on January 18, 2023, documents filed at Companies House
revealed, The Drinks Business relates.

According to The Drinks Business, it has also posted a brief notice
on its website, informing customers, although no further details
about the financial situation have yet been revealed.

The company's last set of unaudited financial accounts was filed in
June 2022 for the year ending September 30, 2021, although it is
exempt from full auditing as a small company, The Drinks Business
discloses.  It showed assets of around GBP980,000 (plus fixed
tangible assets of GBP33,233) and debts of GBP756,305, up on the
previous year's GBP690,013, The Drinks Business notes.

The accounts confirmed ten members of staff in September 20121,
with the company directors listed as Timothy Francis and Matthew
Blackstone, who co-founded the business, The Drinks Business
states.


TUDOR ROSE 2021-1: S&P Raises RFN-Dfrd Notes Rating to 'B+(sf)'
---------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Tudor Rose
Mortgages 2021-1 PLC's class B-Dfrd notes to 'AA+ (sf)' from 'AA
(sf)', C-Dfrd notes to 'AA (sf)' from 'A+ (sf)', D-Dfrd notes to 'A
(sf)' from 'BBB (sf)', RFN-Dfrd notes to 'B+ (sf)' from 'B (sf)',
and X1-Dfrd notes to 'BBB+ (sf)' from 'BB (sf)'. At the same time,
S&P affirmed its 'AAA (sf)' rating on the class A notes.

The transaction is backed by a pool of buy-to-let (BTL) mortgage
loans secured on properties in England and Wales.

The rating actions reflect the decline of the required credit
coverage at all rating levels since closing. The transaction has
been amortizing sequentially. Both liquidity and non-liquidity
reserve funds are at target.

S&P said, "Since our last review, our weighted-average foreclosure
frequency (WAFF) assumptions have decreased at all rating levels
for higher stress levels, primarily thanks to higher seasoning and
a lower effective loan-to-value (LTV) ratio. The lower
weighted-average indexed current LTV ratio decreases our WAFF
assumptions, as the effective LTV ratio applied is calculated with
a weighting of 80% of the original LTV ratio and 20% of the current
LTV ratio."

This lower weighted-average current LTV ratio and repossession
market value declines have also reduced our weighted-average loss
severity (WALS) assumptions.

  Weighted-Average Foreclosure Frequency And Weighted-Average Loss
Severity

            WAFF (%)     WALS (%)     CC (%)

  AAA        24.96        50.08       12.50

  AA         17.75        41.45        7.36

  A          14.06        27.86        3.92

  BBB        10.55        19.34        2.04

  BB          6.85        13.15        0.90

  B           6.02         7.85        0.47

WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-average loss severity.
CC--Credit coverage.

S&P said, "Loan-level arrears have increased to 3.8% from
2.3--slightly above our BTL index. No cumulative losses have been
recorded so far. Notably, severe arrears (more than 120 days) have
risen. The servicer confirmed it is currently reviewing the severe
arrears cases, which are at varying stages of the repossession
process: from the fixed charge receiver being appointed to the sale
being agreed but delayed.

"In addition to the standard runs, we also performed some
sensitivity runs using a longer recovery period, and higher
prepayment and delinquency rates, given volatile and rising
interest rates and the uncertain economic outlook. Our credit and
cash flow results indicate that the available credit enhancement
for the class A notes continues to be commensurate with the
assigned rating. We therefore affirmed our 'AAA (sf)' rating on
this class of notes.

"The class B-Dfrd, C-Drfd, D-Dfrd, and RFN-Dfrd notes could
withstand our stresses at higher rating levels than those assigned.
However, the ratings were constrained by additional factors. First,
we considered their sensitivity to higher delinquencies given the
challenging economic environment. In addition, we took into account
these classes' relative position in the capital structure and their
lower credit enhancement compared with that of the senior notes.
The RFN notes have no credit enhancement. Our rating on the class
X1-Dfrd notes also reflects their sensitivity to a very high
prepayment scenario, that they are not asset-backed, and the
presence of a turbo mechanism post the notes' step-up date. We
therefore raised our ratings on these classes of notes.

"There are no counterparty constraints on the ratings. The
replacement language in the documentation is in line with our
counterparty criteria.

"We expect U.K. inflation to remain high in 2023. Although high
inflation is overall credit negative for all borrowers, inevitably
some borrowers will be more negatively affected than others and to
the extent inflationary pressures materialize more quickly or more
severely than currently expected, risks may emerge. This
transaction is a BTL transaction and although underlying tenants
may be affected by inflationary pressures, the borrowers in the
pool are generally considered to be professional landlords and will
benefit from diversification of properties and rental streams.
Borrowers in this transaction are largely paying a fixed rate of
interest on average until 2025. As a result, in the short to medium
term borrowers are protected from rate rises but will feel the
effect of rising cost of living pressures. Our credit and cash flow
analysis and related assumptions consider the transaction's ability
to withstand the potential repercussions of the current economic
environment--including higher inflation and an increase in the cost
of living--such as higher defaults and longer recovery timing due
to a potential backlog in court cases."



                           *********


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 * * *