/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/230406.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 Thursday, April 6, 2023, Vol. 24, No. 70 Headlines B E L G I U M BELGIUM: Bankruptcies Up More Than 9% in First Quarter 2023 F R A N C E BANIJAY GROUP: Moody's Affirms 'B2' CFR, Outlook Remains Stable G E R M A N Y DEMIRE DEUTSCHE: Moody's Cuts CFR to B3 & EUR600MM Notes to Caa1 MEDIAN BV: Moody's Affirms 'B3' CFR & Alters Outlook to Stable WIRECARD AG: EY Banned from Taking Audit Clients in Germany I R E L A N D AVOCA CLO XXVIII: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes N E T H E R L A N D S BOELS TOPHOLDING: Fitch Affirms 'BB-' LT IDR, Alters Outlook to Pos N O R W A Y PGS ASA: S&P Raises Long-Term ICR to 'B-' on Improved Liquidity P O R T U G A L SAGRES STC - PELICAN 4: Fitch Hikes Rating on Class D Notes to B+sf T U R K E Y TURKCELL: S&P Alters Outlook to Negative, Affirms 'B' LongTerm ICR U N I T E D K I N G D O M BALMANNO HOUSE: Goes Into Administration, Care Home Up for Sale DRESS ME: Enters Into Liquidation, Website Remains Operational LANE END: Enters Administration, Taps Quantuma Advisory SWEET KING: Goes Into Liquidation Due to Liabilities - - - - - ============= B E L G I U M ============= BELGIUM: Bankruptcies Up More Than 9% in First Quarter 2023 ----------------------------------------------------------- The Brussels Times reports that bankruptcies across Belgium increased by more than 9% in the first quarter of this year compared to the same period in 2022, with Flanders registering a record number of companies declaring themselves insolvent. According to a study published on April 3 by market analysis firm Graydon Creditsafe, which was reported on by l'Echo, a total of 2,669 Belgian businesses declared themselves bankrupt in the first quarter of 2023 -- 9.43% more than over the same period in 2022, The Brussels Times discloses. Among these businesses, a disproportionate number were based in Flanders, The Brussels Times notes. Belgium's Dutch-speaking region registered 1,622 bankruptcies in the first three months of this year: 19.17% more than over the same period in 2022, and 3.16% greater than the region's previous record, which dates back to 2014, The Brussels Times states. At the provincial level, Flemish Brabant experienced the greatest increase in bankruptcy filings, with 274 companies declaring themselves insolvent from January to March this year: 63.10% more than over the same period in 2022, and beating by some distance the province's previous quarterly record of 196, which dates back to 2020, The Brussels Times relays. Among the sectors that were particularly badly hit were the construction and hospitality sectors, both of which registered record numbers of bankruptcies, according to The Brussels Times. The business services sector also experienced a precipitous increase (77.78%) in declared insolvencies relative to the first quarter of 2022, The Brussels Times says. Remarkably, Wallonia experienced an even steeper increase in the number of declared bankruptcies than Flanders: Belgium's French-speaking region registered a 25.04% rise in insolvencies in the first quarter of this year compared to the same period in 2022, accordign to The Brussels Times. However, Graydon Creditsafe also noted that, in terms of the absolute number of bankruptcies, the figure in Wallonia (674) still remains "remarkably low" -- lower, in fact, than pre-pandemic levels, The Brussels Times notes. Brussels, on the other hand, experienced a significant decline in the number of bankruptcies, with the country's capital registering a 29.63% fall in the first three months of this year compared to the same period last year, The Brussels Times states. Although neither Graydon Creditsafe nor l'Echo themselves suggested any reasons for the surge in bankruptcies, an examination of the available data strongly suggests that it was precipitated -- or, at the very least, exacerbated -- by Russia's full-scale invasion of Ukraine in February last year, according to The Brussels Times. In particular, the invasion subsequently triggered a raft of EU sanctions on Russian industry and energy supplies, which led Moscow to retaliate by restricting its energy supply to Europe, thereby causing energy prices to soar, The Brussels Times discloses. =========== F R A N C E =========== BANIJAY GROUP: Moody's Affirms 'B2' CFR, Outlook Remains Stable --------------------------------------------------------------- Moody's Investors Service has affirmed the B2 corporate family rating and B2-PD probability of default rating of Banijay Group S.A.S. ("Banijay", "the company", or "the group"), the largest international independent TV content producer. Moody's has also affirmed the B1 ratings on the EUR575 million backed senior secured notes due March 2025 issued by Banijay Entertainment S.A.S., the $403 million backed senior secured notes due March 2025 issued by Banijay Entertainment S.A.S., and the Caa1 rating on the EUR400 million senior unsecured notes due March 2026 issued by Banijay Group S.A.S. Concurrently, Moody's has assigned a B1 rating to the proposed amend and extend (A&E) transaction which includes a EUR453 million senior secured term loan B1 due April 2028 borrowed by Banijay Entertainment S.A.S., a $449.7 million senior secured term loan B1 due April 2028 borrowed by Banijay Group US Holdings Inc., and the EUR170 million (equivalent) multicurrency senior secured revolving credit facility (RCF) due October 2027 borrowed by Banijay Entertainment S.A.S. and co-borrowed by Banijay Group US Holdings Inc. The outlook on all ratings remains stable. "Banijay's operating performance in 2022 was strong and TV content spending for both scripted and non-scripted content will continue to grow in 2023 although at a much slower pace than in the past," says Víctor García Capdevila, a Moody's Vice President–Senior Analyst and lead analyst for Banijay. "Although the A&E exercise will increase Banijay's debt maturity profile, the company has significant refinancing needs in March 2025 when the senior secured notes mature," adds Mr. García. RATINGS RATIONALE In 2022, proforma for acquisitions, Banijay's revenue grew by 19% year-on-year to EUR3,267 million (2021: EUR2,756 million) driven by strong growth in both production revenue (18%) and distribution revenue (17%). Moody's-adjusted EBITDA was broadly unchanged year-on-year at EUR384 million. This is mainly because of higher long term incentive plan (LTIP) expenses in 2022, which Moody's includes as part of EBITDA calculation. LTIP expenses amounted to EUR80 million in 2022 compared with EUR60 million in 2021. The increase in LTIP expenses was driven by a combination of factors, including (1) the reassessment of Banijay's phantom shares following the public listing of FL Entertainment; (2) 2022 acquisitions; and (3) a change in assumptions regarding what is considered earn-out and put options and what is employee remuneration. Moody's base case scenario for 2023, excluding M&A activity, assumes revenue and EBITDA growth of 9% and 6% to around EUR3,500 million and EUR410 million, respectively. The company's Moody's-adjusted gross debt increased by EUR119 million in 2022 to EUR2,681 million driven by a combination of higher earn-outs and put options, adverse foreign exchange effects and higher utilisation of domestic credit lines. Its Moody's-adjusted gross leverage ratio increased to 7.0x in 2022 from 6.7x in 2021, which should decline towards 6.3x in 2023, thanks to lower LTIP expenses. Moody's-adjusted EBITDA calculation includes the full LTIP expense even though the cash outflows take place over a period of 4-8 years. If Moody's EBITDA calculation was to consider only the cash outflow during the year, the company's Moody's-adjusted gross leverage ratio would be approximately 0.8x lower, at 6.2x in 2023. Banijay's rating reflects the company's large scale of operations and global footprint; good geographic diversification; strategic focus on non-scripted content in highly profitable time slots; established and proven formats with high and recurring revenue and earnings visibility; strong free cash flow (FCF) generation; positive industry demand dynamics; good track record of operating performance and the management's commitment to reduce leverage over the next two years. The rating also factors in the company's high leverage; relatively high client concentration, risks and costs related to talent acquisition and retention; and the challenge to continuously create, refresh and replace formats. LIQUIDITY Assuming the A&E is successful, Banijay's liquidity profile is adequate, with no significant debt maturities until March 2025, when the backed senior secured notes mature. Moody's expects the company will proactively address these funding requirements in a timely manner. As of December 31, 2022, the company had a sizeable cash balance of EUR396 million and full availability under its EUR170 million committed senior secured revolving credit facility. The RCF is subject to a springing financial covenant of net debt/EBITDA of 6.5x tested when drawings exceed 40% of the total. Banijay continues to generate strong and consistent Moody's-adjusted free cash flow. In 2022, the company generated positive FCF of EUR157 million. Moody's estimates that in 2023, FCF generation will reduce to around EUR100 million as dividend payments increase. STRUCTURAL CONSIDERATIONS The B2-PD PDR is in line with the B2 CFR, reflecting the 50% family recovery rate assumption, in line with Moody's standard approach for bond and loan capital structures. The ratings on the backed senior secured notes and the senior secured bank credit facilities are B1, one notch above the CFR, reflecting their priority ranking with respect to the senior unsecured notes, which are rated Caa1. The security package for the senior secured instruments is limited to share pledges, intercompany receivables and bank accounts. All material subsidiaries (accounting for more than 5% of proforma EBITDA) are guarantors, except those located in excluded jurisdictions (Argentina, Brazil, China, India, Mexico, Russia, South Korea and Thailand). The group is subject to a minimum EBITDA guarantor coverage test of 75%. RATIONALE FOR STABLE OUTLOOK The stable outlook reflects Moody's expectation of organic revenue growth in high-single digits in 2023 and a Moody's adjusted EBITDA margin of around 12%. The stable outlook also reflects the assumption that the company will reduce Moody's-adjusted gross leverage ratio below 6.5x over the next 12-18 months. The outlook does not factor in any large debt-funded acquisition and assumes adequate liquidity at all times. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS To recognize qualitatively Moody's treatment of the LTIP along with the company's solid free cash profile and the strong improvement of the company's business risk profile over the last few years and particularly since the successful acquisition and integration of Endemol Shine group, the rating agency has changed Banijay's leverage thresholds for the B2 rating category to 5.5x – 6.5x from 5.0x – 6.0x previously. Upward rating pressure could develop if Moody's-adjusted gross leverage declines below 5.5x and retained cash flow/net debt increases above 10%, both on a sustained basis. Downward pressure could build up if operating performance deteriorates, Moody's-adjusted gross leverage remains above 6.5x on a sustained basis or free cash flow generation turns negative, leading to a deterioration in the company's liquidity. LIST OF AFFECTED RATINGS Assignments: Issuer: Banijay Entertainment S.A.S. Senior Secured Bank Credit Facility, Assigned B1 Issuer: Banijay Group US Holdings Inc. Senior Secured Bank Credit Facility, Assigned B1 Affirmations: Issuer: Banijay Group S.A.S. Probability of Default Rating, Affirmed B2-PD LT Corporate Family Rating, Affirmed B2 Senior Unsecured Regular Bond/Debenture, Affirmed Caa1 Issuer: Banijay Entertainment S.A.S. BACKED Senior Secured Regular Bond/Debenture, Affirmed B1 Outlook Actions: Issuer: Banijay Group S.A.S. Outlook, Remains Stable Issuer: Banijay Entertainment S.A.S. Outlook, Remains Stable Issuer: Banijay Group US Holdings Inc. Outlook, Remains Stable PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. COMPANY PROFILE Banijay Group S.A.S. (Banijay), headquartered in Paris, France, is the world's largest independent content production group. It creates, develops, sells, produces and distributes television content worldwide across a well-diversified network of around 130 production companies in 21 different countries. The group has a strong position in both scripted and non-scripted content production and benefits from an extensive library of around 160,000 hours of content. In 2022, the group reported revenue and adjusted EBITDA of EUR3.2 billion and EUR472 million, respectively. ============= G E R M A N Y ============= DEMIRE DEUTSCHE: Moody's Cuts CFR to B3 & EUR600MM Notes to Caa1 ---------------------------------------------------------------- Moody's Investors Service has downgraded DEMIRE Deutsche Mittelstand Real Estate AG's long term corporate family rating to B3 from B2. At the same time the senior unsecured rating of its EUR600 million note issuance maturing in October 2024 was downgraded to Caa1 from B2. The outlook remains negative. RATINGS RATIONALE The downgrade reflects liquidity concerns resulting from large bond and loan maturities in 2024. Higher interest rates as well as geopolitical and financial market volatility provide for a weak property environment. In this context, DEMIRE's task to refinance the remaining EUR550 million of bonds and EUR169 million of secured loans in 2024 is more challenging considering the short timeframe and the limited unencumbered asset base. Property lending as such is still intact, but the current discussions and capital market volatility with respect to some of Europe's largest large banks come with the risk of tighter lending criteria for the entire sector. Moreover, disposals are an important part of funding for the repayment of the bonds, and targeted disposals are more uncertain as investor appetite is reduced and uncertainty around property values persists. DEMIRE has started to dispose assets to generate proceeds required to repay the bond. The largest sale, the disposal of LogPark in Leipzig, will generate around EUR80 million of proceeds post repayment of debt attached to the asset. Moody's understand DEMIRE actively works towards disposing more assets, which Moody's consider a requirement to enable the refinancing of the bond. DEMIRE's operational performance has held up well despite economic volatility in the last years. Occupancy is at similar levels as in 2019, like-for-like rental growth was strongly positive in 2022. This performance will support disposals and also encumbering assets for secured loans. Yet, a portion of DEMIRE's portfolio with more secondary assets will meet lower investor and lender appetite. One of the complexities in refinancing the bond maturity are the limitations in cyrstalising the asset values at Fair Value REIT AG that has a lower LTV than DEMIRE on a standalone basis. Hence reported consolidated financial metrics do not fully reflect the financial position of DEMIRE on a standalone basis that is subject to refinancing. As of December 2022, Moody's adjusted gross debt/total assets was 55.7% on a consolidated basis, while separating DEMIRE (excluding Fair Value REIT asset and liabilities) would increase this ratio to 64% excluding the equity value in the entity. Going forward, Moody's-adjusted gross debt/total assets will benefit signed disposal proceeds in particular for LogPark Leipzig. Moody's have assumed some discount on a material amount of further disposals. As a consequence Moody's estimate Moody's-adjusted consolidated debt/total assets to be around 50-55% in 2024 on a consolidated basis. This includes an assumption of 10-15% further fall in property values. The interest cover post repayment/refinancing of the bond is not very predictable at this point. Moody's forward view looks at 2024 more than 2023, as fixed charge coverage pre refinancing of the bond maturity is sufficient to cover interest expense. Both EBITDA as well as interest rates payable depend strongly on disposal success, as much as on interest rates on new debt that is required for refinancing. Moody's expect interest cover to drop to 1.1-1.5x from 2.5x as of FY 2022 because lower debt amounts will cost significantly more than the current 1.7% reported interest cost. The notching of the senior unsecured notes below the CFR reflects the anticipated change of the capital structure towards a largely secured one. RATIONALE FOR THE OUTLOOK The negative outlook reflects increasing uncertainty around property lending and less time remaining to refinance the bond. Moody's expect further disposal activity as well as proceeds from secured financing in the next six to nine months to be key for DEMIRE's refinancing efforts. LIQUIDITY Liquidity is the key credit driver at this point. Liquidity needs stem from substantial debt maturities in 2024 and committed capital spending related to some recent letting activity. Around EUR720 million out of in total EUR830 million reported debt matures in 2024. The majority of this debt is the remaining EUR550 million bond in October 2024 after the company repurchased around EUR50m in the market last year. At this point, the company does not have sufficient liquidity to cover these maturities, but works towards securing further disposal proceeds complemented by secured debt refinancing. The company also needs to fund committed largely project-based capital spending of more than EUR110 million, in addition to uncommitted spending on the portfolio over the next 3 years. Moody's do not have visibility into plans of its key shareholders, a fund run by Apollo acting in concert with the Wecken group, to support the refinancing efforts. Given the uncertain transaction market and anticipated reduction in bank lending availability, some equity support may be required to refinance the 2024 maturities. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to an upgrade: A rating upgrade is less likely to occur given the negative outlook, but it can occur if DEMIRE succeeds in disposing material asset volumes with moderate discounts and thereby secures repayment of the majority of the 2024 bond maturity The company succeeds in raising sufficient alternative debt financing to enable a bond refinancing at a sustainable interest cover Operating performance continues to be solid Factors that could lead to a downgrade: Failure to raise material further proceeds to address the refinancing of the upcoming debt maturity through disposal proceeds exceeding already signed transactions, as well as through encumbering existing assets A deterioration in the lending appetite for secondary German real estate assets making both disposals and refinancing from secured banks more unlikely Weaker operational performance of the asset portfolio LIST OF AFFECTED RATINGS Downgrades: Issuer: DEMIRE Deutsche Mittelstand Real Estate AG LT Corporate Family Rating, Downgraded to B3 from B2 Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 from B2 Outlook Action: Issuer: DEMIRE Deutsche Mittelstand Real Estate AG Outlook, Remains Negative PRINCIPAL METHODOLOGY The principal methodology used in these ratings was REITs and Other Commercial Real Estate Firms published in September 2022. MEDIAN BV: Moody's Affirms 'B3' CFR & Alters Outlook to Stable -------------------------------------------------------------- Moody's Investors Service has affirmed the B3 corporate family rating and B3-PD probability of default rating of Median B.V. ("MEDIAN" or "the company"). At the same time, Moody's has also affirmed the B3 instrument ratings of the EUR500 million senior secured term loan B1, the GBP250 million senior secured term loan B2, and the EUR120 million senior secured multi-currency revolving credit facility (RCF), borrowed by MEDIAN. The outlook has been changed to stable from positive. RATINGS RATIONALE The change in outlook to stable reflects MEDIAN's weaker than expected performance in 2022 in terms of organic growth, profitability margin development and free cash flow (FCF) generation. The action also reflects Moody's expectation that key credit metrics will improve to levels commensurate with the rating guidance for a B3 rating over the next 12 to 18 months. In particular, the rating agency expects that the company's Moody's-adjusted gross leverage will reduce below 8.0x during 2024 while Moody's adjusted interest coverage will improve above 1.0x. The rating agency forecasts a negative Moody's-adjusted FCF in 2023 and a limited FCF in 2024 mainly due to high working capital requirements for the repayments of overpaid compensations from state-aid protection umbrellas during COVID-19 pandemic, totaling EUR75 million. In 2022, the company's performance was negatively impacted by lower occupancy rates because of the prolonged COVID-19 pandemic impact, especially in Germany where protocolary measures remained restrictive while a significant part of state subsidies was discontinued from July 2022. Furthermore MEDIAN also faced higher-than-expected personnel costs, especially in the UK, where the company had some staffing challenges in hiring nurses and healthcare assistants which have led to higher use of external agency staff and struggled to open certain wards and operate at full capacity. Under Moody's ESG framework, the currently tight labor market situation, especially in the UK, and the prolonged restrictions related to COVID-19 in Germany, both of which affected financial performance during 2022, are deemed social considerations and were key to the rating action. Over the next 12-18 months, Moody's expects MEDIAN's top-line growth to be in the mid-to-high-single digits in percentage terms because of an expected rebound in occupancy rates, annual price renegotiation and increased contribution from digital business. Subsequently, the rating agency expects Moody's-adjusted EBITDA margin to also improve towards 18%-19% over the next 12-18 months mainly supported by better optimization of personnel costs at Priory in the UK as well as the expected price increase following annual price negotiation with payors, which will offset the impact of the currently high inflationary environment, especially on energy prices and personnel costs. RATING OUTLOOK The stable outlook reflects Moody's expectation that MEDIAN's operating performance will improve in line with the expected higher occupancy rates over the next 12 to 18 months, allowing recovery in earnings growth and cash generation, Moody's adjusted gross leverage will gradually reduce below 8.0x by end 2024, and Moody's adjusted interest coverage will improve above 1.0x by end of 2023. The outlook assumes that the company will not undertake any major debt-funded acquisitions or shareholder distributions. LIQUIDITY PROFILE MEDIAN's liquidity is adequate, supported by cash balances of EUR55 million as of December 31, 2022, access to its senior secured RCF of EUR120 million of which EUR88 million are drawn as of the same date and no debt maturities until 2027. The rating agency expects the company's Moody's adjusted FCF generation to be negative in 2023 and limited in 2024 mainly due to repayments of overpaid compensations from state-aid protection umbrellas during COVID-19 pandemic. Proceeds from the sale and lease back of the recently acquired clinics and the disposal of the Older People business should support liquidity during 2023. The senior secured RCF includes a springing financial covenant set at a net leverage of 7.1x as defined in the documentation, tested only when the senior secured RCF is drawn by more than 40%. Moody's anticipates the company will have significant capacity against this threshold if tested. STRUCTURAL CONSIDERATIONS The B3-PD PDR, in line with the CFR, reflects Moody's assumption of a 50% family recovery rate, typical for covenant lite secured loan structures. The B3 ratings of the EUR500 million senior secured term loan B1, the GBP250 million senior secured term loan B2, and the EUR120 million senior secured multi-currency RCF, reflect their pari passu ranking, with upstream guarantees from material subsidiaries of the MEDIAN group that account for at least 80% of consolidated EBITDA. The security package consists of share pledges, intragroup receivables and material bank accounts. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward pressure could develop if MEDIAN's operating performance strengthens materially allowing its Moody's adjusted gross leverage to decline and remain below 7.0x on a sustained basis, the company generates consistently positive Moody's adjusted FCF, and interest coverage as measured by Moody's adjusted EBITA improves towards 2.0x. Negative pressure on the rating could occur if operating performance and profitability do not demonstrate a steady recovery dynamics over 2023, or if the company fails to lower its gross leverage, as measured by Moody's adjusted debt/EBITDA, below 8.0x on a sustained basis, or if interest coverage as measured by Moody's adjusted EBITA/interest expense does not improve comfortably above 1.0x by end of 2023, or if its Moody's adjusted FCF generation remains negative, or liquidity profile weakens. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. COMPANY PROFILE MEDIAN is a European leading private provider of post-acute and rehabilitation services with leading positions in Germany and UK, following the merger with Priory. MEDIAN generated revenues and company adjusted EBITDA of EUR1.8 billion and EUR152 million for the twelve months ended in September 2022, respectively. The company operates around 441 facilities and about 22,244 beds with over 30,000 employees and treats around 260,000 patients per year. The company has been majority owned by Waterland Private Equity since 2014. WIRECARD AG: EY Banned from Taking Audit Clients in Germany ----------------------------------------------------------- Olaf Storbeck at The Financial Times reports that EY has been banned from taking on any new listed audit clients in Germany for two years over failures in its work for collapsed payments company Wirecard. According to the FT, the landmark ruling by the country's audit watchdog Apas also announced a fine of EUR500,000 for EY and of between EUR23,000 and EUR300,000 for each of five current and former employees of the Big Four firm. In a statement on April 5, Apas said it "considered violations of professional duties during the audits of Wirecard and Wirecard Bank from 2016 to 2018 as proven", without giving further details of the violations, the FT relates. According to people familiar with the regulator's thinking, there has not been a formal decision about whether EY acted with intent or just with negligence, which will be a key question in deciding the firm's criminal and civil liabilities, the FT notes. Apas and Germany's financial watchdog BaFin have been given more powers and the government has doubled the maximum penalty for professional misconduct to EUR1 million, the FT discloses. After Wirecard's collapse in 2020, Apas filed a criminal complaint against several EY audit partners, citing evidence that the firm may have knowingly issued factually incorrect audit opinions, the FT recounts. Prosecutors are investigating the matter but have not yet filed any charges, the FT states. The presiding judge in the ongoing criminal case against former Wirecard boss Markus Braun and two other senior executives has criticised EY for allegedly failing to act on evidence of fraud at the German payments group, the FT relays. Wirecard collapsed into insolvency in June 2020 in one of Europe's largest postwar accounting scandals, after disclosing that half of its revenue and EUR1.9 billion in corporate cash did not exist, the FT recounts. It had received unqualified audits from EY for more than a decade, according to the FT. EY Germany, as cited by the FT, said in a statement that it would examine the Apas decision "carefully" but had not yet received the detailed legal conclusion. "We regret that the collusive fraud at Wirecard was not discovered sooner, and we have learned important lessons from this matter," the firm said, adding that it had taken "significant action" to improve its audit quality and risk management. It has also put a new management team in place and introduced extra controls. "EY Germany is a different organization today," the firm said, adding that it fully co-operated with Apas on the investigation. Initially, 12 current and former EY audit employees were targeted by Apas, but seven of them resigned from the profession and handed back their licences, the FT states. This means the regulator cannot impose sanctions on them, the FT notes. ============= I R E L A N D ============= AVOCA CLO XXVIII: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes ------------------------------------------------------------------- Fitch Ratings has assigned Avoca CLO XXVIII DAC's expected ratings, as detailed below. Entity/Debt Rating ----------- ------ Avoca CLO XXVIII DAC A LT AAA(EXP)sf Expected Rating B-1 LT AA(EXP)sf Expected Rating B-2 LT AA(EXP)sf Expected Rating C LT A(EXP)sf Expected Rating D LT BBB-(EXP)sf Expected Rating E LT BB-(EXP)sf Expected Rating F LT B-(EXP)sf Expected Rating Sub LT NR(EXP)sf Expected Rating TRANSACTION SUMMARY Avoca CLO XXVIII DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of corporate-rescue loans, senior unsecured, mezzanine, second-lien loans and high-yield bonds. Net proceeds from the note issuance will be used to fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by KKR Credit Advisors (Ireland) Unlimited Company (KKR). The collateralised loan obligation (CLO) has a 4.5-year reinvestment period and a 7.5-year weighted average life (WAL) test. The assignment of final ratings is contingent on the receipt of final documents conforming to information already reviewed. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 25.1. High Recovery Expectations (Positive): At least 90% of the portfolio will comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate (WARR) of the identified portfolio is 62%. Diversified Portfolio (Positive): The transaction includes two Fitch matrices effective at closing corresponding to a top-10 obligor concentration limit at 20%, fixed-rate asset limits at 5% or 12.5%, and a 7.5-year WAL. The transaction also includes various concentration limits, including a maximum exposure to the three-largest Fitch-defined industries in the portfolio at 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a 4.5-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. The transaction can extend the WAL test by one year to seven and a half years after one year from the closing date of April 2023, if the aggregate collateral balance (defaulted obligations at Fitch-calculated collateral value) is at least at the target par and the transaction is passing all its tests. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant, to account for structural and reinvestment conditions after the reinvestment period, including passing the over-collateralisation (OC) and Fitch 'CCC' limitation tests, among other things. This, combined with Fitch's loan pre-payment expectations, ultimately reduces the maximum possible risk horizon of the portfolio. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: A 25% increase of the mean default rate (RDR) across all ratings and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class A notes and would lead to a downgrade of no more than two notches of the class B to E notes and to below 'B-sf' for the class F notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of defaults and portfolio deterioration. Due to the better metrics of the identified portfolio than the Fitch-stressed portfolio the rated notes display a rating cushion against a downgrade of up to two notches. Should the cushion between the identified portfolio and the Fitch-stressed portfolio erode due to manager trading period or negative portfolio credit migration, a 25% increase of the mean RDR across all ratings and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would result in downgrades of up to four notches on the class A to D notes and to below 'B-sf' for the class E and F notes. Factors that could, individually or collectively, lead to positive rating action/upgrade: A 25% reduction of the mean RDR across all ratings and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of no more than two notches for the class B to E notes and five notches for the class F notes. During the reinvestment period, based on the Fitch-stressed portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. After the end of the reinvestment period, upgrades may occur on stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other nationally recognised statistical rating organisations and/or European securities and markets authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ===================== N E T H E R L A N D S ===================== BOELS TOPHOLDING: Fitch Affirms 'BB-' LT IDR, Alters Outlook to Pos ------------------------------------------------------------------- Fitch Ratings has revised the Outlook on Boels Topholding B.V.'s Long-Term Issuer Default Rating (IDR) to Positive from Stable and affirmed the IDR at 'BB-'. Fitch has also affirmed Boels' long-term senior secured debt rating at 'BB-'. The outlook revision reflects the consistency of the EBITDA Boels has achieved in the last three years while addressing both the effects of the pandemic and the integration of a major acquisition. This has enabled meaningful deleveraging, and, if sustained through the still uncertain economic outlook for 2023, could lead to an upgrade. KEY RATING DRIVERS Variable Capex Well-Managed: The IDR reflects Boels' franchise as Europe's second-largest equipment rental company, the long maturity profile of its borrowings and its management's significant experience. It also takes into account Boels' recurring need to fund adequate capex to support a good-quality fleet through the economic cycle while at the same time maintaining sufficient asset utilisation to service its associated debt. Equipment Rental Growth Trend: Boels' 2020 acquisition of Cramo plc created Europe's second-largest equipment rental business. The sector has grown significantly in the last 15 years, as an increasing proportion of end-users have chosen to rent equipment rather than own it. Fitch expects this trend to continue amid inflationary pressures. Operators with wide networks enjoy advantages over independents such as the depth of fleet they can stock, brand recognition and better purchasing power. Stable EBITDA Maintained: Since the acquisition of Cramo, Boels has delivered consistent, sound EBITDA despite a volatile macro environment. Fitch expects EBITDA growth of around 8% for 2022 relative to 2021 under Dutch GAAP. The company is in the process of transitioning to IFRS, which will lead to higher reported EBITDA, mainly due to the inclusion of operating lease costs that were previously treated as an operating expense. Leverage Reduced Since Acquisition: In view of the cash flow-driven nature of Boels' business, Fitch uses EBITDA-based metrics in assessing leverage, and anticipates end-2022 gross debt-to-EBITDA of around 3.1x, a reduction from about 3.8x on completion of the Cramo acquisition. Earnings retention has now restored the company to a small net tangible equity position, after significant goodwill was incurred on the acquisition. Long Debt Maturity Profile: Boels' debt is concentrated mainly in a term loan maturing in 2027, which funded the Cramo acquisition. Liquidity benefits from capex being discretionary to a certain extent in the short term. This enables the company to moderate spending at a time of reduced cash inflows, although requiring reinvestment over the longer term. The interest rate risk on EUR900 million of Boels' debt is hedged, but some floating rate exposure remains. Limited Asset Impairment: Boels generally seeks to maintain a young fleet, although average age increased during the pandemic, when capex was reduced. Depreciation rates appear appropriate, with limited asset impairment or loss on disposal. Private Company, Long Experience: Boels' current leadership has been able to maintain liquidity and profitability through fluctuating economic conditions over more than 25 years. As a private company, Boels lacks the degree of governance scrutiny typically applied to a public company. But Fitch views positively the family interest in the long-term health of the business, with a record of reinvesting earnings rather than extracting dividends from them. Growth Pressure Easing: The integration of Cramo's business appears to have proceeded smoothly despite substantial growth in a short period, aided by limited geographic overlap. Boels' rate of expansion has now normalised. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: Material reduction in EBITDA, whether from lower fleet utilisation or from rising costs, resulting in gross debt-to-EBITDA above 6x. Insufficient liquidity or access to funding to support the capex required to maintain a sufficiently young fleet. Factors that could, individually or collectively, lead to positive rating action/upgrade: Continued sound asset utilisation rates, enabling further growth in EBITDA and leverage remaining consistently below 3.5x. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS Boels' debt is classified as secured, but, in the absence of direct security over operating assets, Fitch rates it in line with Boels' Long-Term IDR (as it would an unsecured obligation), indicating average recovery prospects DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The debt ratings are primarily sensitive to a change in Boels' Long-Term IDR. Should Boels introduce any debt secured on operating assets ranking above rated instruments (or a subordinated tranche below them), Fitch could notch the debt ratings down (or up) from the Long-Term IDR, on the basis of weaker (or stronger) recovery prospects. 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 Prior ----------- ------ ----- Boels Topholding B.V. LT IDR BB- Affirmed BB- senior secured LT BB- Affirmed BB- =========== N O R W A Y =========== PGS ASA: S&P Raises Long-Term ICR to 'B-' on Improved Liquidity --------------------------------------------------------------- S&P Global Ratings raised its long-term issuer credit rating on Norwegian oilfield services company PGS ASA to 'B-' from 'CCC+'. S&P removed the rating from CreditWatch, where S&P had placed it with positive implications on March 6, 2023. S&P said, "We assigned our 'B' issue rating to the senior secured notes with a recovery rating of '2', in line with the preliminary ratings. "The stable outlook indicates that an improved maturity profile and our view of a more supportive industry environment balance the need for the company to address maturities in first-quarter 2024 and its exposure to the very volatile seismic services market.. "Our upgrade of PGS to 'B-' follows the company's completed refinancing.The issuance of $450 million of notes helped to improve the maturity profile over the next eight quarters. Post transaction, the company has to meet $12 million of debt repayments in each of the quarters for the next two years, with the exception of first-quarter 2024 ($150 million due) and first-quarter 2025 ($62 million due)." The new capital structure consists of: -- A $50 million super senior loan due in March 2024 (with an extension option to March 2025); -- $168.5 million of two senior secured export credit financing loans (ECFs) (gradually amortizing, with final maturity dates in September 2025 and 2027); -- $138 million remaining portion of the refinanced term loan B (due in March 2024); and -- $450 million senior secured notes due in 2027. S&P said, "Given our current assumptions for the company's operational performance, we think PGS will be able to address its maturities in the next 12 months, including the peak in the first quarter of 2024. "We expect a more supportive environment for offshore geophysical services in 2023, which will underpin the company's cash flows and liquidity. In our base case, PGS will report revenue of $870 million in 2023 (versus $817 million in 2022), representing an increase in both marine contracts and multiclient data sales. The order book increased to $416 million at end-2022 from $239 million a year before. We think the company will generate S&P Global Ratings-adjusted EBITDA (net of capitalized multiclient costs) of $340 million-$350 million this year ($338 million in 2022). This would translate into an S&P Global Ratings-adjusted debt-to-EBITDA ratio of 2.5x-3.0x in 2023 (this corresponds to the company's reported net debt to EBITDA of about 1.5x-2.0x, without netting the capitalized multiclient costs). Also in our base case, we expect FOCF of about $140 million in 2023 ($110 million in 2022), considering our projection of capital expenditure (capex) of about $100 million and multiclient investments of about $160 million." PGS is exposed to the very volatile market of seismic services which is dependent on the E&P spending of oil majors and has demonstrated a track record of rapid deterioration. Since 2015, PGS ASA twice required a rescheduling of the amortization payments of its financial obligations which S&P classified as default, in December 2016 and September 2020. The offshore geophysical services industry sentiment proved to change very rapidly, affecting PGS's ability to generate cash flows and service its financial obligations. Notably, due to the material impact of the COVID-19 pandemic, in the second-quarter 2020, the company generated negative S&P Global Ratings-adjusted EBITDA of 49 million and negative funds from operations (FFO) of $84 million. This compares with S&P Global Ratings-adjusted EBITDA of $179 million and FFO of $147 million achieved in a much more supportive fourth-quarter 2019. Positively, the company has a track record of receiving equity injections from the shareholders, although they were not able to prevent a default. Since 2015, the company has received $709 million of equity injections from its shareholders, out of which $250 million in 2022. These measures helped to strengthen PGS' balance sheet and reduce leverage, but S&P highlights the injections were not sufficiently timely to prevent financial distress at PGS in serving its debt liabilities. Currently S&P does not incorporate in its base case any further equity injections to PGS. The stable outlook reflects a more balanced maturity profile post transaction, coupled with S&P's expectation for a more supportive seismic market in 2023 which should underpin the company's cash flows and liquidity. It also reflects the sizable peak in maturities in the first-quarter 2024 of $150 million and extreme volatility of the seismic market in general, which has seen rapid deterioration affecting the company's cash flows in the past. In S&P's base case we expect the company's revenue to rise about 7% this year, leading to EBITDA of about $340 million-$350 million and FOCF of about $120 million-$140 million. This corresponds to FFO to debt of 20%-30% and S&P Global Ratings-adjusted debt to EBITDA of about 2.5x-3.0x. S&P could lower the rating if: -- Underperformance in 2023 leads to weaker FOCF generation; -- Liquidity deteriorates with weaker prospects of addressing the maturities in first-quarter 2024. In S&P's view, upside is currently limited in the next 12 months, given the sizable maturities during this period and the company's exposure to the very volatile seismic market. In the longer term, upside for the ratings might arise if the company tackles liquidity challenges while the industry sentiment remains positive, with PGS' sustainable FOCF generation exceeding $100 million. ESG credit indicators: E-4, S-2, G-3 =============== P O R T U G A L =============== SAGRES STC - PELICAN 4: Fitch Hikes Rating on Class D Notes to B+sf ------------------------------------------------------------------- Fitch Ratings has upgraded four classes of Sagres, STC S.A. / Pelican Mortgages No.3 Plc (Pelican 3) and three classes of Sagres, STC S.A. / Pelican Mortgages No.4 Plc (Pelican 4). It has also affirmed classes A and E of Pelican 4. All notes have a Stable Rating Outlook, with the Outlook on class E of Pelican 4 revised to Stable from Negative. Fitch has removed the ratings of class B, C and D of Pelican 4 from Under Criteria Observation (UCO). Entity/Debt Rating Prior ----------- ------ ----- Sagres, STC S.A. / Pelican Mortgages No.3 Plc Class A XS0293657416 LT AA+sf Upgrade AA-sf Class B XS0293657689 LT A+sf Upgrade A-sf Class C XS0293657846 LT A-sf Upgrade BBBsf Class D XS0293657929 LT BBB+sf Upgrade BBB-sf Sagres, STC S.A. / Pelican Mortgages No.4 Plc Class A XS0365137990 LT AA+sf Affirmed AA+sf Class B XS0365138295 LT AAsf Upgrade AA-sf Class C XS0365138964 LT A-sf Upgrade BBB+sf Class D XS0365139004 LT B+sf Upgrade B-sf Class E XS0365139939 LT B-sf Affirmed B-sf TRANSACTION SUMMARY The transactions represent cash flow securitisations of Portuguese residential mortgage loans originated by Caixa Economica Montepio Geral, Caixa economica bancaria, S.A. (Montepio; B/Positive/B). The rating actions follow the annual review of the transactions and the update of the European RMBS Rating Criteria. KEY RATING DRIVERS Iberian Recovery Rate Assumptions Updated: In the update of its European RMBS Rating Criteria released on 16 Dec. 2022, Fitch updated its recovery-rate assumptions for Portugal to reflect smaller house price declines and foreclosure sales adjustment, which have had a positive impact on recovery rates and, consequently, Fitch's expected loss in Portuguese RMBS transactions. Class B, C and D on Pelican 4 have been placed on Under Criteria Observation in December 2022. The criteria assumption updates are reflected in the upgrades of Pelican Mortgages 3 classes A to D notes and Pelican Mortgages 4 classes B to D notes. Increasing Credit Resilience: The transactions have built up credit enhancement since closing, leading to increased rating resilience. Current credit enhancement on the senior class of notes increased to 9.0% in Pelican 3 and to 24.4% in Pelican 4, respectively from 8.6% and 24.3% in the last review. Credit enhancement increase in the Pelican 3 has been stronger given the reserve fund at floor. Fitch deems the current credit enhancement sufficiently high to protect the ratings against stresses. The ratings of classes D and E notes in Pelican 4 reflect the current thin level of credit enhancement and the notes' high sensitivity to Fitch's recovery rate stresses. Resilient Asset Performance: Over the last 12 months the asset performance remained stable for all transactions supported by high seasoning, portfolio deleveraging and sufficient credit enhancement. The cumulative gross default ratio is 1.1% and 1.9% for Pelican 3 and Pelican 4, respectively, almost unchanged compared to last year. Arrears have remained broadly stable and well below Portuguese market peers' average. AA+sf' Rating Cap: Pelican 3 and Pelican 4 class A notes rating are capped at the maximum achievable 'AA+sf', six notches above Portugal's Issuer Default Rating (IDR) in line with Fitch´s Structured Finance and Covered Bonds Country Risk Rating Criteria. The Stable Outlook on these notes is aligned with that on the sovereign rating. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: A downgrade of Portugal's Long-Term IDR could decrease the maximum achievable rating for Portuguese structured-finance transactions, and result in a downgrade of the class A of Pelican 3 and the class A notes of Pelican 4. This is because the class A notes are capped at the 'AA+sf' maximum achievable rating in Portugal, six notches above the sovereign IDR. Long-term asset performance deterioration such as increased delinquencies or larger defaults, which could be driven by changes to macroeconomic conditions, interest rate increases or borrower behaviour. Factors that could, individually or collectively, lead to positive rating action/upgrade: An upgrade of Portugal's Long-Term IDR could increase the maximum achievable rating for Portuguese structured finance transactions and result in an upgrade of the class A of Pelican 3 and the class A notes of Pelican 4. The notes could also be upgraded if credit enhancement ratios increase as transactions deleverage, and are able to fully compensate the credit losses and cash flow stresses that are commensurate with higher rating scenarios, all else being equal. DATA ADEQUACY Sagres, STC S.A. / Pelican Mortgages No.3 Plc, Sagres, STC S.A. / Pelican Mortgages No.4 Plc Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool[s] and the transaction[s]. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pool(s) ahead of the transaction's (Sagres, STC S.A. / Pelican Mortgages No.3 Plc, Sagres, STC S.A. / Pelican Mortgages No.4 Plc) initial closing. The subsequent performance of the transaction(s) over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. 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 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. =========== T U R K E Y =========== TURKCELL: S&P Alters Outlook to Negative, Affirms 'B' LongTerm ICR ------------------------------------------------------------------ S&P Global Ratings revised its outlook on Turkcell to negative from stable in line, with the outlook on Turkiye, and affirmed its 'B' long-term issuer credit rating on the company. S&P said, "On March 31, we revised our outlook on Turkiye to negative from stable and affirmed our ratings on the sovereign; our T&C assessment is unchanged at 'B'.We cap our ratings on Turkcell at the level of our T&C assessment on Turkiye, which reflects our view of the likelihood that the government would restrict access to foreign currency liquidity for Turkish companies, the overwhelming majority of the company's cash flow being in Turkiye, while international revenue is volatile and a share of it is strongly affected by currency fluctuations. "Our assessment of the company's stand-alone credit profile is 'bbb'. This reflects our expectation of continued solid operational performance, with an S&P Global Ratings-adjusted debt-to-EBITDA ratio below 1.5x and free operating cash flow to debt above 10%." The negative outlook on Turkcell reflects that on Turkiye. S&P said, "We could downgrade Turkcell if we revised down our T&C assessment on Turkiye to 'B-', which could happen if we downgraded the sovereign. "We could revise our outlook on Turkcell to stable if we took the same action on the sovereign and kept our T&C assessment at 'B'." ESG credit indicators: E-2, S-2, G-3 =========================== U N I T E D K I N G D O M =========================== BALMANNO HOUSE: Goes Into Administration, Care Home Up for Sale --------------------------------------------------------------- Brian Donnelly at The Herald reports that one of the UK's longest continuously operating care homes has fallen into administration. According to The Herald, the landmark Balmanno House building in the West End of Glasgow is to be sold following its "orderly closure". Blair Milne and James Fennessey, partners with Azets, have been appointed joint administrators, The Herald relates. Balmanno House, which can trace its roots as a care home back more than 200 years and was a registered charity, was suffering from "severe and unsustainable cash flow problems stemming from the rising costs and challenges of running a major care facility", the administrators said, The Herald relates. This included staff shortages, costs of sourcing agency staff, rising food and energy bills, compliance costs and falling occupancy levels, The Herald states. The joint administrators will continue to trade Balmanno House during a managed wind-down of the business to minimise the impact on residents, families, staff and suppliers, The Herald discloses. A specialist interim care home management business, Healthcare Management Solutions Limited, will assist the administrators with the management of Balmanno House whilst overseeing the orderly wind-down in line with Care Inspectorate guidelines for closures, according to The Herald. Balmanno House was built in 1874 and sits at the junction of Great Western Road and Cleveden Road. The building will shortly be marketed for sale and Savills in Glasgow have been appointed as the property agents, The Herald states. Balmanno House has 51 rooms but occupancy levels were consistently at or below 85%, which, along with a sharp increase in operating costs, has contributed to trading losses. Azets, as cited by The Herald, said there are 68 full and part-time staff, and there have been no redundancies. According to The Herald, Allan Carrick, care home chairman, said: "Sadly the unsustainable costs and challenges affecting the care sector in Scotland have made it impossible for Balmanno House to continue providing the high standard of residential care which has for so long been our hallmark." Mr Milne, restructuring partner with Azets and joint administrator, said: "The challenges facing care home operators are well documented, the most significant of which is recruitment and retention of nursing staff. "In order to maintain the safety of residents, care providers have become increasingly reliant upon agency workers which is very difficult to sustain commercially, even for short periods. "The increased cost of providing nursing staff, added to the sharp rise in the costs of energy and food, has resulted in trading losses for Balmanno. "Despite the best efforts of the directors to control operating costs and to increase revenue it has sadly not been possible to return the business to profitability. "Our priority will be to stabilise the business and ensure that Balmanno House can operate as normally as possible. "We will work closely with the Care Inspectorate, Glasgow Health and Social Care Partnership and local authorities to achieve an orderly closure of Balmanno whilst fully supporting residents and their families through every step in finding a suitable new care home. "We will also shortly be marketing the building for sale and would encourage any interested parties to contact Savills as soon as possible. Our legal obligation as administrators is to realise best value for the charity which owns Balmanno House. "Any surplus funds generated after all debts are met will be distributed to other charitable causes in due course." DRESS ME: Enters Into Liquidation, Website Remains Operational -------------------------------------------------------------- Begbies Traynor Group plc on April 5 disclosed that a Manchester-based fashion retail company has entered into liquidation. Amie Johnson and Yiannis Koumettou of Begbies Traynor were appointed as Joint Liquidators of Dress Me Online Limited, trading as Forever Unique, on April 4, 2023, after all options had been explored to keep the business open. According to its latest set of accounts turnover was GBP2.3 million to December 2020. The company employs 21 people. The Forever Unique brand and website remains fully operational, trading as normal and is fulfilling orders. Amie Johnson, Insolvency Director at Begbies Traynor, said: "Every option was explored but there was no choice but to enter the company into liquidation. A combination of the economic climate, inflation and issues in recovering from the pandemic have resulted in these circumstances. Creditors have been informed and we will keep them up to date with progress." LANE END: Enters Administration, Taps Quantuma Advisory ------------------------------------------------------- Grant Prior at Construction Enquirer reports that Warrington based Lane End Developments Construction Ltd has gone into administration. Administrators from Quantuma Advisory Limited are now in charge of the business which was a leading developing contractor for the construction and housing sector across the North West and has built more than 1,000 homes, Construction Enquirer relates. According to Construction Enquirer, a company update seen by the Enquirer said: "The Joint Administrators are currently working alongside potential funders and senior management to assess the options available to them to restructure the Company and allow it to continue to operate. "We are very conscious that the wages and salaries due to be paid on March 31, 2023, remain unpaid. With it being so early in the process, we are unable to provide details of a timetable for events, however, we shall endeavour to provide updates in a timely manner, as and when appropriate. "As soon as we have more certainty on funding, we shall then be able to provide more certainty around dates. "We appreciate the difficulty of these circumstances for you and thank you for your patience at this time." Latest accounts filed for the year to May 31, 2022, show the company had a turnover of GBP81 million generating a pre-tax profit of GBP245,000 while employing 106 staff, Construction Enquirer discloses. SWEET KING: Goes Into Liquidation Due to Liabilities ---------------------------------------------------- Gavin O'Callaghan at CorkBeo reports that Cork influencer Nathan Adams' former company Sweet King has gone into liquidation. The treat business, which operated from markets in Cork as well as online, made a special resolution to wind up last January, CorkBeo relates. It was decided at a meeting that the company could no longer continue business "by reason of its liabilities", CorkBeo discloses. Myles Kirby was later appointed as the liquidator and the company's registered address has now changed from Midleton to Kirby's offices in Dublin, CorkBeo recounts. The shop's website is no longer live, with a notice saying "we'll be back soon", CorkBeo notes. The company's Facebook has not posted in over a year while their Instagram account no longer has any posts on it and has a message in the bio saying it is "changing owners", CorkBeo states. Last November the company ran a pop-up shop in the city that saw queues go down the street and around the corner, CorkBeo relays. ********* 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 * * *