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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

          Wednesday, February 1, 2023, Vol. 24, No. 24

                           Headlines



F R A N C E

FINANCIERE LABEYRIE: EUR455M Bank Debt Trades at 36% Discount


G E R M A N Y

WIRECARD AG: EY Came Close to Discovering Fraud in 2016


L U X E M B O U R G

COVIS FINCO: $595M Bank Debt Trades at 41% Discount
SANI/IKOS GROUP: Fitch Affirms 'B-' LongTerm IDR, Outlook Negative


U N I T E D   K I N G D O M

CARILLION: Report Into KPMG's Role in Crash Still Not Published
COMET BIDCO: GBP315M Bank Debt Trades at 24% Discount
CONSTELLATION AUTO: EUR400M Bank Debt Trades at 23% Discount
GOODBOX: Out of Administration After Restructuring Plan Okayed
PAPERCHASE: Tesco Acquires Brand, Intellectual Property

[*] UK: Company Insolvencies Hit Record High in 2022, R3 Says
[*] UK: Company Insolvencies Up 57% to 22,109 in 2022

                           - - - - -


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F R A N C E
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FINANCIERE LABEYRIE: EUR455M Bank Debt Trades at 36% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which Financiere Labeyrie
Fine Foods SASU is a borrower were trading in the secondary market
around 63.9 cents-on-the-dollar during the week ended Friday,
January 27, 2023, according to Bloomberg's Evaluated Pricing
service data.

The EUR455 million facility is a Term loan that is scheduled to
mature on July 30, 2026.  The amount is fully drawn and
outstanding.

Labeyrie Fine Foods provides seafood products. The Company prepares
shrimp, duck items, salmon, sushi, trout, and foie gras. Labeyrie
Fine Foods serves customers worldwide.  The Company's country of
domicile is France.



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

WIRECARD AG: EY Came Close to Discovering Fraud in 2016
-------------------------------------------------------
Olaf Storbeck at The Financial Times reports that EY came close to
discovering fraud at the heart of Wirecard in 2016, when the
collapsed payments firm's trustee in Singapore accidentally told
the auditor the truth, stating he did not hold any money on its
behalf.

At the time, Wirecard's accounts fraudulently stated that Citadelle
Corporate Services in Singapore oversaw escrow accounts in Asia
that held about EUR150 million in cash, the FT discloses.

These escrow accounts were at the centre of the Wirecard fraud, the
FT states.  Purportedly set up in 2015, the company said they held
cash generated by its outsourced operations in Asia, the FT notes.

By June 2020, the amount in those accounts had supposedly risen to
EUR1.9 billion, when Wirecard disclosed it did not exist, the FT
relays.  The business subsequently collapsed in one of Europe's
largest accounting scandals, the FT recounts.

But the truth about Wirecard's Asia escrow accounts was almost
revealed by Citadelle director Shan Rajaratnam in March 2016,
because of a lack of co-ordination between individuals in
Singapore, Dubai and Munich, according to documents reviewed by the
Financial Times and testimony by the chief witness in the Wirecard
trial, the FT discloses.

Wirecard managers scrambled to come up with an explanation for the
trustee's statement, who subsequently confirmed to EY that in fact
he did hold the cash, the FT says, citing people familiar with the
details.

The firm audited Wirecard's accounts for close to a decade without
finding big problems and has been criticised for failing to request
documents directly from Singapore bank OCBC, where the trustee
accounts were said to be held, the FT relates.

EY has previously cited Singapore's bank secrecy laws and said it
was legally required to rely on information from the trustee
instead, the FT notes.

Documents reviewed by the FT show that EY wrote to Citadelle in
February and March 2016, asking the firm "to confirm the balances
for the whole group" and to provide a "split up of the balances for
each company respectively".

In late March, Mr. Rajaratnam told the auditor in writing that "as
of December 31, 2015, there was no monies of Wirecard AG or any of
its subsidiaries being held by us in our accounts", the FT
recounts.




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

COVIS FINCO: $595M Bank Debt Trades at 41% Discount
---------------------------------------------------
Participations in a syndicated loan under which Covis Finco Sarl is
a borrower were trading in the secondary market around 58.8
cents-on-the-dollar during the week ended Friday, January 27, 2023,
according to Bloomberg's Evaluated Pricing service data.

The $595 million facility is a Term loan that is scheduled to
mature on February 18, 2027.  About $572.7 million of the loan is
withdrawn and outstanding.

Covis Finco SARL is an entity affiliated with Covis Pharma, which
is backed by Apollo Global Management.  Covis Pharma distributes
pharmaceutical products for patients with life-threatening
conditions and chronic illnesses.  Finco is the borrower under a
term loan facility used to refinance existing debt and refinance
the debt incurred to finance products acquired from AstraZeneca.
Finco has its registered office in Luxembourg.


SANI/IKOS GROUP: Fitch Affirms 'B-' LongTerm IDR, Outlook Negative
------------------------------------------------------------------
Fitch Ratings has affirmed Sani/Ikos Group S.C.A.'s (Sani Ikos)
Long-Term Issuer Default Rating (IDR) at 'B-' with a Negative
Outlook. Fitch has also affirmed the hotel operator's 2026 senior
secured notes' long-term rating at 'B-' with a Recovery Rating of
'RR4'

The 'B-' IDR reflects Sani Ikos's niche positioning in the luxury
lodging business, as well as its smaller scale relative to rated
peers. It has a weaker financial profile than peers, with free cash
flow (FCF) consistently under pressure from an intensive, but
partly discretionary, capex programme. However, Fitch sees scope
for the company to delay new projects in the event of an internal
cash flow generation slowdown and incorporate EBITDA benefits from
two hotels scheduled to open in 2023.

Fitch considers emergence of a new shareholder as neutral for the
rating but recent distribution to shareholders as evidence of an
aggressive financial policy. The Negative Outlook reflects the
execution risk in the capex pipeline and the related adverse impact
on leverage in case the new projects underperform, as well as
possible liquidity tension from funding this capex and debt
amortisation. These risks are mitigated by the company's good
record of attracting new secured funding.

KEY RATING DRIVERS

Revised Capex Affects Deleveraging: Sani Ikos has four hotels in
development for 2023-2026 (two each in Iberia and Greece), of which
it plans to maintain 100% ownership (75% for Porto Petro), like the
rest of its portfolio. The overall pipeline assumes a 60% increase
in rooms to a total of around 4,400 by 2025. It materially
increased its expansionary capex programme in 2022, with the
majority to be funded by debt. The resultant slower deleveraging
will lead to leverage remaining outside the negative sensitivities
in 2023-2024 under its current forecast.

New Shareholder Neutral to Rating: Fitch views new controlling
shareholders and the EUR250 million dividend distributed in 2022 as
credit neutral. Fitch does not forecast material changes in the
financial policy and assume no distributions to shareholders over
the forecast horizon in the Fitch Case other than EUR40 million in
2023. A more aggressive financial policy, with dividend
distributions supported by additional debt keeping leverage
consistently above the negative sensitivities, could pressure Sani
Ikos's ratings.

Niche Positioning, Small Scale: Sani Ikos operates 10 upscale
resorts, including five luxury all-inclusive hotels, which remains
a niche segment in Europe. Its business scale remains modest versus
NH Hotels' or Radisson's, and EBITDA is more comparable with
smaller operators like Alpha Group's. However, high hotel density
per resort (300 rooms or more with high break-even occupancy) and
above-average revenue per available room (RevPAR) make Sani Ikos
more operationally efficient than peers. Niche positioning within
its segment and limited competition or price sensitivity support
organic average daily rate (ADR) growth.

High Customer Concentration by Region: Despite heavy reliance on
three regions (UK, Germany, Russia), Sani Ikos replaced the loss of
the Russian inbound market with tourists in 2022 with other
countries. Its experience in Greece allows for more efficient
operations, which is important for maintaining high customer
satisfaction and loyalty, leading to superior ADR and an
above-average share of returning customers. Limited diversification
by travel type also remains a conscious management choice, with no
business travellers or events held in its facilities.

Execution Risks from International Expansion: Sani Ikos had
operated exclusively in Greece until Ikos Andalusia opened in 2021.
Even with other projects in Iberia in the pipeline, 75% of rooms
will still be located in Greece, exhibiting low geographical
diversification and potentially increasing exposure to a
reintroduction of local travel restrictions.

An increasing shift to international operations under the Ikos
brand continues to entail some execution risks. Despite a
successful ramp-up in Spain, its limited international operational
record makes it difficult to assess the sustainability of its
occupancy and ADR, as well as to forecast the evolution of other
projects' key performance indicators outside Greece.

Seasonal Operations, High Profitability: Sani Ikos's resorts
generally operate six to seven months a year, with occupancy close
to 95% during the season (annualised occupancy at around 50%-60%).
This high density allows for material cost optimisation, which are
not easily scalable but highly variable off-season. This results in
higher profitability than close peers like Mandarin Oriental and
comparable with that of the strongest peers in the sector, such as
Whitbread plc. Fitch expects Sani Ikos's EBITDA margins to return
to pre-pandemic levels of 34-35% in 2022 (2021: 30%), as seasonal
occupancy returns to historically high levels.

Inflation Pressure on Profitability: Fitch expects that wage and
energy inflation pressure will lead to EBITDA margin contraction of
120bp in 2023. Fitch forecasts a lesser impact on profitability
than market averages as Fitch expects Sani Ikos will be able to
pass through a material portion of inflation through ADR increases.
Pricing will be further optimised through continued growth of
direct sales and lower use of discounts in 2023.

FCF Hit by Capex: Strong EBITDA has historically converted into
strong funds from operations (FFO) margins of 16%-22%. However, FCF
has remained volatile due to high capex intensity linked to
expansion projects. Fitch forecasts that the revised capex
programme will lead to sharply negative FCF margins of 25%-30% in
2023-2024. Its forecast does not incorporate capex flexibility, and
the ability to fund an increasing amount of expansion capex with
internally generated cash flows will be important for the rating
trajectory.

Fully-owned Assets: Sani Ikos directly manages and mostly fully
owns its current hotel portfolio, which allows control over asset
development and day-to-day operations. According to management,
this approach helps ensure consistently high levels of service and
efficiency. Fitch expects that the fairly new real-estate portfolio
should allow Sani Ikos to keep maintenance capex at around 3% of
revenue (plus 2%-3% maintenance costs above EBITDA from 2022
onwards, which is already incorporated into operating costs). Fitch
views this as low relative to peers. All of Sani Ikos's owned
operating real estate (except Ikos Andalusia and Porto Petro) is
currently mortgaged at OpCo level.

DERIVATION SUMMARY

Sani Ikos is a Greek luxury resort operator with limited scale
compared with leisure peers such as Meliá Hotel International SA
or Hyatt Hotels Corporation (BBB-/Stable). Diversification is also
constrained by its seasonal focus on holiday destinations and some
reliance on British and German guests, against global peers like
Accor SA (BB+/Stable). The large capacity of Sani Ikos's resorts,
premium RevPAR during high season and a freehold property structure
allow for excellent EBITDA margins of around 35%, higher than that
of luxury operators such as Mandarin Oriental Hotel Group or
Linblad Expeditions.

Similar to cruise operators like TUI Cruises GmbH (B-/Stable),
optimised capacity utilisation and exclusive offerings underpin
strong demand with high levels of loyalty and advanced bookings,
resulting in good cash flow predictability.

The asset-backed nature of the business (gross asset value of
EUR1.8 billion at end-2021) leads to high leverage (EBITDAR
leverage anticipated above 9x in 2022), which is above that of
other asset-heavy operators like Host Hotels & Resorts, Inc
(BBB-/Positive), Whitbread plc (BBB-/Stable) or NH Hotel Group SA
(B/Stable), but does not undermine deleveraging capacity.

Sani Ikos's decision to continue expanding its asset portfolio
results in significant capex and provides limited financial
flexibility as apart from Ikos Andalusia and Ikos Porto Petro, its
assets are currently encumbered.

KEY ASSUMPTIONS

- 37% increased ADR versus pre-pandemic level of 2019 for 2022 and
slight increase in the low single digit over 2023-2025; average
occupancies of around 92% for 2022-2025.

- Pressured margins in 2023 due to inflationary environment.
Progressive normalisation of margins from 2024.

- Revised capex including already confirmed projects only (around
EUR650 million over 2022-2025)

- EUR450 million additional net debt proceeds to fund new expansion
plans.

Recovery Assumptions:

- A bespoke recovery analysis for Sani Ikos creditors reflects a
'traded asset valuation', which is more akin to a liquidation
process, backed by a substantial asset base, even though Sani Ikos
creditors have no direct recourse to ring-fenced assets. Senior
noteholders could seize ownership of its main operating entities by
exercising share pledges, and attempt to sell the SPVs that hold
the assets (net of asset level debt that would need to be redeemed
upon change of control)

- A 10% administrative claim

- Although OpCo creditors in a liquidation scenario could seize
their respective assets and obtain full recovery before the
remainder of the proceeds is distributed among noteholders, Fitch
assumes assets could be traded either individually or in aggregate

- Real estate value, externally estimated at EUR1.8 billion as at
end-4Q21 (excluding land under development), has a haircut of 45%.
This is down from the previous 55% discount, reflecting part of the
new developments expected in 2023.

- OpCo debt of just under EUR770 million (including used capex
facility lines and undrawn EUR13 million Revolving Credit facility)
is ranking ahead of the secured notes. All of Sani Ikos's owned
operating real estate (except Ikos Andalusia and Porto Petro) is
currently mortgaged at OpCo level.

- The waterfall generated recovery computation of 37% for senior
secured noteholders (previously 46%) assumes average recovery
prospects upon default and hence no notching from the IDR for the
bond, resulting in a 'B-' debt rating.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

- Visibility of EBITDAR gross leverage trending below 6.5x.

- More limited levels of negative FCF generation with the margin
trending towards low negative single digits under current capex
assumptions.

- EBITDAR fixed charge cover above 2.0x on a sustained basis.

Factors that could, individually or collectively, lead to a
revision of the Outlook to Stable:

- Ability to manage inflationary pressure leading to limited EBITDA
margin reduction in 2023 and 2024.

- Slowdown of expansionary capex or organic deleveraging providing
visibility of EBITDAR gross leverage below 7.5x.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- Material underperformance with occupancy and ADR deterioration of
current portfolio or from the realisation of newly-opened hotels,
resulting in the EBITDA margin dropping below 30%.

- EBITDAR gross leverage forecast to remain above 7.5x over the
rating horizon.

- EBITDAR fixed charge cover below 1.5x.

- Liquidity deterioration amid negative FFO generation, with
minimal headroom in available liquidity to cover business
requirements, interest and committed capex over the next 24
months.

LIQUIDITY AND DEBT STRUCTURE

Extra Funding May Be Needed: Fitch estimates that the company had
EUR100 million available cash at end-2022 and that it has over
EUR200 million available through an undrawn capex facilities.
However, Fitch expects liquidity to be tight, as based on its
projections large capex will lead to aggregate negative FCF of
EUR230 million-EUR250 million in 2023-2024, and approximately EUR70
million of debt matures in these two years. However, the company
has a successful record of raising new debt, which should reduce
liquidity risk.

Debt Maturities Enhanced: The overall maturity profile of Sani
Ikos's debt has been substantially improved, with the majority of
OpCo debt refinanced in 2H22 and maturities extended. Sani Ikos
also managed to improve its cost of debt through margin reduction
to 250 bps on most OpCo debt, although under its forecast this will
be fully offset by the anticipated increase of base interest rates.
The post-refinancing debt profile now assumes a sizeable repayment
peak in 2031, but Fitch expects the company to address refinancing
well ahead of debt maturities.

ISSUER PROFILE

Sani Ikos is an integrated owner and hotel operator in the luxury
segment (all-inclusive) focused on key leisure destinations of
Greece and Spain.

ESG CONSIDERATIONS

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.

   Entity/Debt              Rating         Recovery    Prior
   -----------              ------         --------    -----
Sani/Ikos Group
S.C.A.                LT IDR B-  Affirmed                 B-

Sani/Ikos
Financial Holdings
1 S.a r.l.

   senior secured     LT     B-  Affirmed     RR4         B-




===========================
U N I T E D   K I N G D O M
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CARILLION: Report Into KPMG's Role in Crash Still Not Published
---------------------------------------------------------------
Francesca Washtell at Financial Mail On Sunday reports that
investigations by audit watchdogs into the dramatic downfall of
Carillion have still not been published five years on from one of
the biggest financial disasters of recent years.

This month marks the fifth anniversary of the collapse of the firm
with debts of GBP7 billion, Financial Mail On Sunday notes.

Before its demise, Carillion was one of the Government's biggest
contractors, working on essential projects including new hospitals
and schools.

According to Financial Mail On Sunday, auditor KMPG, which failed
to raise red flags over the firm's accounts, was heavily criticised
over its role in the scandal.

In 2018, auditing regulator the Financial Reporting Council (FRC)
launched two separate investigations into the accountancy group's
work on Carillion's financial statements from 2014 to 2016,
Financial Mail On Sunday recounts.

It later extended the period covered by the scrutiny back to 2013,
Financial Mail On Sunday notes.  But the investigations are now
approaching their fifth year -- with no publication date in sight,
according to Financial Mail On Sunday.

Baron Sikka, professor of accounting at the University of
Sheffield, called for the FRC to conclude its review and publish
the findings, Financial Mail On Sunday relates.

Mr. Sikka, as cited by Financial Mail On Sunday, said: "There has
been no urgency shown by the regulator, which means many of the bad
practices that the Carillion failure identified are still not being
clamped down on.

"The FRC is failing to carry out speedy investigations. By not
showing results, it has basically abdicated its responsibility."

KPMG -- one of the "big four" accounting firms -- signed off
Carillion's accounts four months before it issued a profit warning
and nine months before it went into liquidation, Financial Mail On
Sunday recounts.

Other regulators, including the Financial Conduct Authority (FCA),
launched inquiries after its failure, Financial Mail On Sunday
relates.  According to Financial Mail On Sunday, a separate
investigation by the FCA concluded that it would have fined
Carillion GBP38 million if it had not been in liquidation.

The Receiver, acting on behalf of Carillion's creditors, is still
locked in a legal wrangle with the accountant, Financial Mail On
Sunday states.  

According to Financial Mail On Sunday, government officials
overseeing the liquidation of Carillion are suing KPMG for GBP1.3
billion, alleging that KPMG missed "red flags" when looking at the
accounts.  It was one of a series of auditing scandals that has
shattered KPMG's reputation. It has also botched audits at
advertising group M&C Saatchi and retailer Ted Baker.

But it was Carillion that turned the audit industry on its head by
shining a spotlight on questionable practices and kicked off a
scramble in the City and Westminster to reform the sector,
Financial Mail On Sunday notes.  This has included plans to replace
the FRC with a new body, the Audit Reporting and Governance
Authority, according to Financial Mail On Sunday.

But experts have questioned whether proposed policy changes are
being watered down, Financial Mail On Sunday relays.

A KPMG spokesman, as cited by Financial Mail On Sunday, said the
company was co-operating fully with the FRC's investigations.


COMET BIDCO: GBP315M Bank Debt Trades at 24% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Comet Bidco Ltd is
a borrower were trading in the secondary market around 76.1
cents-on-the-dollar during the week ended Friday, January 27, 2023,
according to Bloomberg's Evaluated Pricing service data.

The GBP315 million facility is a Term loan that is scheduled to
mature on October 6, 2024.  The amount is fully drawn and
outstanding.

Comet Bidco Limited provides connectivity and business-critical
insight across communities of buyers and sellers. The Company uses
range of exhibitions, conferences, tradeshows, and websites to
target new business, demonstrate their products, build relationship
with their clients, and identify new opportunities for performance
improvement. The Company's country of domicile is the United
Kingdom.


CONSTELLATION AUTO: EUR400M Bank Debt Trades at 23% Discount
------------------------------------------------------------
Participations in a syndicated loan under which Constellation
Automotive Ltd is a borrower were trading in the secondary market
around 77.2 cents-on-the-dollar during the week ended Friday,
January 27, 2023, according to Bloomberg's Evaluated Pricing
service data.

The EUR400 million facility is a Term loan that is scheduled to
mature on July 28, 2028.  The amount is fully drawn and
outstanding.

Constellation Automotive Group Limited offers digital used car
marketplace. The Company offers used passenger cars, utility
vehicles, and trucks, as well as provides parts and accessories,
repairs and maintenance, finance, and insurance services. The
Company's country of domicile is the United Kingdom.


GOODBOX: Out of Administration After Restructuring Plan Okayed
--------------------------------------------------------------
Museums + Heritage Advisor reports that "tap to give" company
GoodBox, which went into administration in June 2022, has agreed on
a restructuring plan which is hoped to rescue the firm.

The company offers the infrastructure and hardware to allow
visitors to make a contactless donation via a podium or desktop
device, with clients including the Natural History Museum, IWM, and
Museum of London.

The restructuring plan was approved by the courts, following a
meeting earlier this month with the creditors, which means the firm
is now formally out of administration, Museums + Heritage Advisor
relates.

According to Museums + Heritage Advisor, the company said it has
been able to continue to trade with no disruption during the
administration period, and the new agreed solution "will allow the
company to work with and support current and new clients and
solidify its position as the market-leader in this sector."

The company, as cited by Museums + Heritage Advisor, said the "vast
majority" of clients have been able to continue to trade with the
firm during the administration period.

Jeremy Frost and Patrick Wadsted of Frost Group were appointed
joint administrators last year, Museums + Heritage Advisor
recounts.


PAPERCHASE: Tesco Acquires Brand, Intellectual Property
-------------------------------------------------------
Arjun Neil Alim and Abby Wallace at The Financial Times report that
Tesco has bought the Paperchase brand and intellectual property
from administration, but not the stores, putting about 1,000 jobs
at risk.

The struggling stationery chain collapsed on Jan. 31 after it
failed to find a buyer for the whole business, the FT relates.  It
has since announced that 75 staff at its London head office have
been made redundant, the FT discloses.

According to the FT, the supermarket group's surprise acquisition
for an undisclosed amount casts doubt over Paperchase's presence on
UK high streets and the future of 918 employees, although its 106
stores will continue trading for now.

"Despite a comprehensive sales process, no viable offers were
received for the company, or its business and assets," the FT
quotes administrators at Begbies Traynor as saying.


[*] UK: Company Insolvencies Hit Record High in 2022, R3 Says
-------------------------------------------------------------
Eir Nolsoe at The Telegraph reports that the "dam has burst" on
insolvencies, experts have warned, after the highest number of
companies since the financial crisis failed last year.

According to The Telegraph, industry leaders say interest rates,
energy prices and pandemic loans becoming due are pulling the rug
from under thousands of firms which are unable to pay their debts.

Some 22,109 companies became insolvent in 2022 in England and
Wales, meaning they are on the brink of going under, The Telegraph
discloses.  This is the highest figure since 2009, government
figures show, The Telegraph notes.

Christina Fitzgerald, president of insolvency and restructuring
trade body R3, said that after two years of government support
suppressing the numbers, "2022 was the year the insolvency dam
burst", The Telegraph relates.  

Many businesses are for the first time experiencing a "trilemma" of
supply chain pressures, inflation and high energy prices, according
to Samantha Keen of EY-Parthenon and president of the Insolvency
Practitioners Association, The Telegraph discloses.

According to The Telegraph, she said: "This stress is now deepening
and spreading to all sectors of the economy as falling confidence
affects investment decisions, contract renewals and access to
credit."

The figures also revealed that the number of firms opting
voluntarily to be wound up reached its highest level since records
began in 1960, The Telegraph notes.

The number of insolvencies peaked in the final three months of the
year at 5,938, as inflation, rising borrowing costs and the cost of
living crisis intensified, The Telegraph discloses.

Across most industries, more firms became insolvent than in 2021 --
pointing to the multitude of challenges facing businesses, The
Telegraph notes.

Inga West, restructuring counsel at Ashurst, added that smaller
businesses that tend to have fewer resources to withstand shocks
are bearing the brunt of the crisis so far, The Telegraph says.
Bigger names are starting to crop up too, however, she said, The
Telegraph notes.


[*] UK: Company Insolvencies Up 57% to 22,109 in 2022
-----------------------------------------------------
David Milliken at Reuters reports that more companies suffered
insolvency last year in England and Wales than any time since 2009,
government figures showed on Jan. 31, reflecting the end of
coronavirus pandemic support that helped many smaller businesses
stay afloat.

Total insolvencies rose to 22,109 in 2022, their highest since the
global financial crisis and up by 57% from a year earlier, Reuters
relays, citing data released by the British government's Insolvency
Service agency.

Part of the increase in the number of companies falling into
difficulty reflects the higher number of companies overall, Reuters
discloses.

The rate at which companies are being liquidated rose by 50% last
year, but is only the highest since 2015 and around half its peak
rate in 2009, Reuters states.

That said, the challenges for many businesses have worsened over
the past year as inflation has pushed up the cost of raw materials,
wage bills have risen and higher Bank of England rates increased
the expense of borrowing, Reuters notes.

"It seems likely that corporate insolvencies will remain high and
increase further in Q1 2023 and beyond," Reuters quotes John
Cullen, business recovery partner at accountants Menzies, as
saying.

The increase in insolvencies last year was driven by the commonest
type, creditors' voluntary liquidations (CVLs), which dropped
sharply in 2020 and early 2021 when the government provided COVID
support loans to more than 1.5 million small businesses, according
to Reuters.

The Insolvency Service said CVLs rose last year to their highest
number since records began in 1960, and were 21% higher than if
they had risen in line with their pre-pandemic trend, Reuters
recounts.

Compulsory liquidations were back at their pre-pandemic level by
the final quarter of 2022, after legal restrictions on forcibly
winding companies up ended in March, Reuters discloses.

Mr. Cullen, as cited by Reuters, said there was now a backlog of
overdue tax bills, which under normal circumstances would often
have led to compulsory liquidations.



                           *********


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-
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

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