/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/230523.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 Tuesday, May 23, 2023, Vol. 24, No. 103 Headlines F R A N C E BISCUIT HOLDING: EUR490M Bank Debt Trades at 17% Discount RAMSAY GENERALE: Moody's Affirms Ba3 CFR, Outlook Remains Stable G E R M A N Y PROXES GMBH: EUR20M Bank Debt Trades at 24% Discount I R E L A N D BURLINGTON MORTGAGES 1: Moody's Affirms Ba2 Rating on Cl. E Notes CARLYLE EURO 2017-3: Moody's Affirms B2 Rating on Class E Notes CVC CORDATUS XII: Moody's Affirms B2 Rating on EUR12MM Cl. F Notes I T A L Y AUTOFLORENCE 3: S&P Assigns Prelim. B- Rating on Class E Notes PIAGGIO AERO: June 12 Deadline Set for Expressions of Interest VOLKSBANK: S&P Affirms 'BB+/B' ICRs & Alters Outlook to Positive N E T H E R L A N D S CELESTE MIDCO 1: S&P Lowers ICR to 'B', Outlook Stable S P A I N HAYA HOLDCO 2: S&P Lowers LT ICR to 'CC', Outlook Negative S W I T Z E R L A N D CREDIT SUISSE: Swap Panel Gets Query That May Trigger Contracts CREDIT SUISSE: Swiss Parliament to Launch Probe Into Collapse U N I T E D K I N G D O M FIRST4SOLAR: Goes Into Administration GREAT SHEFFORD: Goes Into Voluntary Liquidation MARKET BIDCO: EUR1.30B Bank Debt Trades at 16% Discount MARKET BIDCO: EUR709M Bank Debt Trades at 16% Discount PARLIAMENT PLACE: Administrators in Dispute Over Land Deal PLATFORM BIDCO: EUR600M Bank Debt Trades at 15% Discount - - - - - =========== F R A N C E =========== BISCUIT HOLDING: EUR490M Bank Debt Trades at 17% Discount --------------------------------------------------------- Participations in a syndicated loan under which Biscuit Holding SASU/FR is a borrower were trading in the secondary market around 82.9 cents-on-the-dollar during the week ended Friday, May 19, 2023, according to Bloomberg's Evaluated Pricing service data. The EUR490 million facility is a Term loan that is scheduled to mature on February 14, 2027. The amount is fully drawn and outstanding. Biscuit International produces snacks and confectionery products. The Company manufactures a wide range of label biscuits and other related products. The Company’s country of domicile is France. RAMSAY GENERALE: Moody's Affirms Ba3 CFR, Outlook Remains Stable ---------------------------------------------------------------- Moody's Investors Service has affirmed the Ba3 corporate family rating and Ba3-PD probability of default rating of Ramsay Generale de Sante S.A., a leading healthcare provider in Europe. Concurrently, Moody's has affirmed the Ba3 ratings on the guaranteed senior secured bank credit facilities including the senior secured revolving credit facility due April 2026, the senior secured acquisition facility due April 2026, the senior secured term loan B1 due April 2026 and the senior secured term loan B2 due April 2027. The outlook remains stable. RATINGS RATIONALE The affirmation of Ramsay's Ba3 ratings with a stable outlook is driven by the stability of the company's operations, its leading market positions in France and Sweden, and a moderately conservative financial policy. These factors help mitigate weak metrics for the rating category, notably Moody's-adjusted debt/EBITDA and EBITA/interest of 6.9x and 1.8x respectively for the last twelve months ended December 31, 2022. Ramsay's credit metrics weakened in the first half of its fiscal year ended June 30, 2023 (fiscal 2023) because of cost inflation including wages, rents and other external costs. Moody's-adjusted debt/EBITDA and EBITA/interest were 6.3x and 2.3x respectively in fiscal 2022. Moody's expects higher tariffs and cost efficiencies to support over the next 12-18 months a reduction in Moody's-adjusted debt/EBITDA to 6.5x and an improvement in Moody's-adjusted EBITA/interest towards 2.0x. These levels will better position Ramsay in the Ba3 rating category, although at the weaker end. Moody's also understands that the company aims to reduce its reported net leverage to below 4x, in line with historical trends. This target level will be broadly consistent with a Moody's-adjusted debt/EBITDA of 6.5x. Ramsay's target leverage is a governance consideration under Moody's ESG framework and a key driver for the rating action. However, there are downside risks to Moody's forecasts because inflation will continue to remain high through the first half of fiscal 2024 at least. There is also regulatory risk related to the planned reform of the activity-based funding system for French public and private hospitals in 2024. Ramsay's Ba3 CFR is weakly positioned, with limited capacity under the current rating for any negative deviation because of weaker-than-expected organic EBITDA growth or debt-funded acquisitions. LIQUIDITY Ramsay has good liquidity. The company's liquidity is supported by Moody's expectation of modest free cash flow generation over the next 12-18 months, cash balances of EUR222 million as of December 31, 2022, and access to a senior secured revolving credit facility (RCF) and a senior secured capital spending/acquisition facility of EUR100 million each, both fully undrawn. There are no large debt maturities before April 2026 when the senior secured term loan B1, the senior secured RCF and senior secured capital spending/acquisition facility mature. Additionally, Moody's expects the company to maintain ample leeway against the springing net leverage covenant included in the senior secured RCF documentation and set at 6.0x, which is triggered only when the senior secured RCF is drawn by more than 40%. The net leverage ratio as defined by the debt indenture was 4.4x as of December 31, 2022. STRUCTURAL CONSIDERATIONS The Ba3 rating of the company's EUR1,450 million senior secured term loans, EUR100 million senior secured RCF and EUR100 million senior secured capital spending/acquisition facility reflect their pari passu ranking in the capital structure, and the upstream guarantees from substantial subsidiaries of the company accounting for at least 75% of total EBITDA. They are secured by collateral, essentially consisting of share pledges. Furthermore, the capital structure includes: EUR100 million of Euro Private Placement notes guaranteed by the same security package as the senior secured term loans and a EUR168 million loan guaranteed by a pledge of the securities of one of Ramsay's real estate subsidiaries. The Ba3-PD probability of default rating reflects Moody's assumption of a 50% family recovery rate, typical for bank debt structures with limited or loose set of financial covenants. RATIONALE FOR THE STABLE OUTLOOK The stable outlook reflects Moody's expectation that earnings growth over the next 12-18 months will support a reduction in Moody's-adjusted debt/EBITDA to 6.5x and a strengthening of Moody's-adjusted EBITA/interest towards 2.0x. Until then, Ramsay will be weakly positioned in the Ba3 category, with limited capacity under the current rating for any negative deviation because of weaker-than-expected organic EBITDA growth or debt-funded acquisitions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if: Moody's-adjusted debt/EBITDA remains below 5.5x on a sustained basis (based on the company's lease multiple of around 8.0x); Moody's-adjusted EBITA/interest expense remains above 3.0x on a sustained basis; Ramsay maintains a robust positive free cash flow and reaches retained cash flow/debt in the high teens in percentage terms; there are no adverse regulatory or policy changes, or adverse changes in business strategy or financial policy. The ratings could be downgraded if: Moody's-adjusted debt/EBITDA remains above 6.5x on a sustained basis (based on the company's lease multiple of around 8.0x); Moody's-adjusted EBITA/interest expense remains below 2.0x; the company's FCF turns negative or liquidity weakens; and there are adverse regulatory or policy changes, or an adverse change in business strategy or financial policy. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. COMPANY PROFILE Based in France, Ramsay Generale de Sante S.A. (Ramsay) is one of the leading healthcare providers in Europe, with strong and notable market positions in France and Sweden. It generated revenue of EUR4.3 billion in fiscal 2022. ============= G E R M A N Y ============= PROXES GMBH: EUR20M Bank Debt Trades at 24% Discount ---------------------------------------------------- Participations in a syndicated loan under which ProXES GmbH is a borrower were trading in the secondary market around 76.2 cents-on-the-dollar during the week ended Friday, May 19, 2023, according to Bloomberg's Evaluated Pricing service data. The EUR20 million facility is a Term loan that is scheduled to mature on July 15, 2023. The amount is fully drawn and outstanding. ProXES GmbH designs and manufactures industrial machinery. The Company offers food processing, pharmaceutical, and health-care technologies. The Company's country of domicile is Germany. ============= I R E L A N D ============= BURLINGTON MORTGAGES 1: Moody's Affirms Ba2 Rating on Cl. E Notes ----------------------------------------------------------------- Moody's Investors Service has upgraded the ratings of two Notes in Burlington Mortgages No. 1 DAC. The rating action reflects better than expected collateral performance, as well as increased levels of credit enhancement for the affected notes. Moody's affirmed the ratings of the notes that had sufficient credit enhancement to maintain their current ratings. EUR1731.4M Class A1 Notes, Affirmed Aaa (sf); previously on Sep 9, 2021 Affirmed Aaa (sf) EUR1731.4M Class A2 Notes, Affirmed Aaa (sf); previously on Sep 9, 2021 Affirmed Aaa (sf) EUR201.3M Class B Notes, Upgraded to Aaa (sf); previously on Sep 9, 2021 Upgraded to Aa1 (sf) EUR110.7M Class C Notes, Upgraded to Aa1 (sf); previously on Sep 9, 2021 Upgraded to Aa2 (sf) EUR110.7M Class D Notes, Affirmed A2 (sf); previously on Sep 9, 2021 Upgraded to A2 (sf) EUR80.5M Class E Notes, Affirmed Ba2 (sf); previously on Sep 9, 2021 Upgraded to Ba2 (sf) Burlington Mortgages No. 1 DAC is a static cash securitisation of residential mortgages extended to obligors located in Ireland by EBS d.a.c. (A1(cr)/P-1(cr)) ("EBS") and Haven Mortgages Limited, a wholly-owned subsidiary of EBS. RATINGS RATIONALE The rating action is prompted by decreased key collateral assumptions, namely the portfolio Expected Loss (EL) and MILAN CE assumptions due to better than expected collateral performance, as well as an increase in credit enhancement for the affected tranches. Revision of Key Collateral Assumptions As part of the rating action, Moody's reassessed its lifetime loss expectation for the portfolio reflecting the collateral performance to date. The performance of the transaction has continued to be strong since the last rating action in September 2021. Total delinquencies have increased slightly over the course of this year but have remained at low levels, with 90 days plus arrears currently standing at only 0.36% of current pool balance. There have been no losses in the transaction so far, with pool factor currently at 66.9%. Moody's decreased the expected loss assumption to 0.74% as a percentage of original pool balance from 1.5% previously. This corresponds to an expected loss as a percentage of current pool balance of 1.10%. The expected loss reduction was based on the good performance since closing, as well as benchmarking with comparable transactions in Ireland and abroad. Moody's has also assessed loan-by-loan information as a part of its detailed transaction review to determine the credit support consistent with target rating levels and the volatility of future losses. As a result, Moody's has decreased the MILAN CE assumption to 8.0% from 10.0% previously. Increase in Available Credit Enhancement Sequential amortization led to the increase in the credit enhancement available in this transaction. Credit enhancement supporting classes B and C Notes increased to 14.6% and 10.5%, from 11.6% and 8.4%, respectively, since the last rating action in September 2021. Counterparty Exposure The rating actions took into consideration the notes' exposure to relevant counterparties, such as servicer or account banks. Moody's considered how the liquidity available in the transaction and other mitigants support continuity of note payments, in case of financial disruption. Although there is limited liquidity available for the Class B notes, covering only 2 months in a stressed environment, and there is no independent cash manager, given the high rating of the servicer and cash manager EBS (A1(cr) / P-1(cr)), and the fact that the unrated servicer Haven Mortgages Limited is a wholly-owned subsidiary of EBS, the rating of the Class B notes are not constrained by financial disruption risk. The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in July 2022. The analysis undertaken by Moody's at the initial assignment of ratings for RMBS securities may focus on aspects that become less relevant or typically remain unchanged during the surveillance stage. Factors that would lead to an upgrade or downgrade of the ratings: Factors or circumstances that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expected, (2) an increase in available credit enhancement, and (3) improvements in the credit quality of the transaction counterparties. Factors or circumstances that could lead to a downgrade of the ratings include (1) an increase in sovereign risk, (2) performance of the underlying collateral that is worse than Moody's expected, (3) deterioration in the notes' available credit enhancement, and (4) deterioration in the credit quality of the transaction counterparties. CARLYLE EURO 2017-3: Moody's Affirms B2 Rating on Class E Notes --------------------------------------------------------------- Moody's Investors Service has upgraded the ratings on the following notes issued by Carlyle Euro CLO 2017-3 DAC: EUR29,500,000 Class A-2-A Senior Secured Floating Rate Notes due 2031, Upgraded to Aaa (sf); previously on Oct 14, 2022 Upgraded to Aa1 (sf) EUR15,000,000 Class A-2-B Senior Secured Fixed Rate Notes due 2031, Upgraded to Aaa (sf); previously on Oct 14, 2022 Upgraded to Aa1 (sf) EUR26,500,000 Class B-1 Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to A1 (sf); previously on Oct 14, 2022 Affirmed A2 (sf) EUR10,000,000 Class B-2 Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to A1 (sf); previously on Oct 14, 2022 Affirmed A2 (sf) Moody's has also affirmed the ratings on the following notes: EUR234,000,000 (Current outstanding amount EUR232,957,235) Class A-1-R Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Oct 14, 2022 Affirmed Aaa (sf) EUR20,500,000 Class C Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed Baa2 (sf); previously on Oct 14, 2022 Affirmed Baa2 (sf) EUR23,500,000 Class D Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed Ba2 (sf); previously on Oct 14, 2022 Affirmed Ba2 (sf) EUR11,100,000 Class E Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed B2 (sf); previously on Oct 14, 2022 Downgraded to B2 (sf) Carlyle Euro CLO 2017-3 DAC, issued in December 2017 and refinanced in June 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by CELF Advisors LLP. The transaction's reinvestment period ended in July 2022. RATINGS RATIONALE The rating upgrades on the Class A-2-A, Class A-2-B, Class B-1 and Class B-2 notes are primarily a result of a shorter weighted average life of the portfolio which reduces the time the rated notes are exposed to the credit risk of the underlying portfolio. The affirmations on the ratings on the Class A-1-R, Class C, Class D and Class E notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. In particular, Moody's assumed that the deal will benefit from a shorter amortisation profile than it had assumed at the last rating action in October 2022. The key model inputs Moody's uses in its analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on its published methodology and could differ from the trustee's reported numbers. In its base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR393.05m Diversity Score: 53 Weighted Average Rating Factor (WARF): 3042 Weighted Average Life (WAL): 3.63 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.75% Weighted Average Coupon (WAC): 4.24% Weighted Average Recovery Rate (WARR): 44.81% Par haircut in OC tests and interest diversion test: 0.77% The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into its cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2021. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance" published in June 2022. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. CVC CORDATUS XII: Moody's Affirms B2 Rating on EUR12MM Cl. F Notes ------------------------------------------------------------------ Moody's Investors Service has upgraded the ratings on the following notes issued by CVC Cordatus Loan Fund XII Designated Activity Company: EUR17,000,000 Class B-1-R Senior Secured Floating Rate Notes due 2032, Upgraded to Aa1 (sf); previously on Apr 1, 2021 Definitive Rating Assigned Aa2 (sf) EUR20,000,000 Class B-2-R Senior Secured Fixed Rate Notes due 2032, Upgraded to Aa1 (sf); previously on Apr 1, 2021 Definitive Rating Assigned Aa2 (sf) EUR27,200,000 Class C-R Senior Secured Deferrable Floating Rate Notes due 2032, Upgraded to A1 (sf); previously on Apr 1, 2021 Definitive Rating Assigned A2 (sf) EUR24,100,000 Class D Senior Secured Deferrable Floating Rate Notes due 2032, Upgraded to Baa2 (sf); previously on Apr 1, 2021 Affirmed Baa3 (sf) Moody's has also affirmed the ratings on the following notes: EUR242,000,000 Class A-1-R Senior Secured Floating Rate Notes due 2032, Affirmed Aaa (sf); previously on Apr 1, 2021 Definitive Rating Assigned Aaa (sf) EUR6,000,000 Class A-2-R Senior Secured Floating Rate Notes due 2032, Affirmed Aaa (sf); previously on Apr 1, 2021 Definitive Rating Assigned Aaa (sf) EUR23,700,000 Class E Senior Secured Deferrable Floating Rate Notes due 2032, Affirmed Ba2 (sf); previously on Apr 1, 2021 Affirmed Ba2 (sf) EUR12,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2032, Affirmed B2 (sf); previously on Apr 1, 2021 Affirmed B2 (sf) CVC Cordatus Loan Fund XII Designated Activity Company, issued in December 2018 and refinanced in April 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by CVC Credit Partners European CLO Management LLP. The transaction's reinvestment period will end in July 2023. RATINGS RATIONALE The rating upgrades on the Class B-1-R, B-2-R, C-R and D notes are primarily a result of the benefit of the shorter period of time remaining before the end of the reinvestment period in July 2023. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. In particular, Moody's assumed that the deal will benefit from a shorter amortisation profile than it had assumed when the transaction refinanced in April 2021. The key model inputs Moody's uses in its analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on its published methodology and could differ from the trustee's reported numbers. In its base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR386.9m Defaulted Securities: EUR10.5m Diversity Score: 54 Weighted Average Rating Factor (WARF): 2878 Weighted Average Life (WAL): 4.04 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.75% Weighted Average Coupon (WAC): 4.24% Weighted Average Recovery Rate (WARR): 44.37% Par haircut in OC tests and interest diversion test: none The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into its cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2021. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance" published in June 2022. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: Portfolio amortisation: Once reaching the end of the reinvestment period in July 2023, the main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio, which could lengthen as a result of the manager's decision to reinvest in new issue loans or other loans with longer maturities, or participate in amend-to-extend offerings. The effect on the ratings of extending the portfolio's weighted average life can be positive or negative depending on the notes' seniority. Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. ========= I T A L Y ========= AUTOFLORENCE 3: S&P Assigns Prelim. B- Rating on Class E Notes -------------------------------------------------------------- S&P Global Ratings assigned its preliminary credit ratings to Autoflorence 3 S.r.l.'s asset-backed floating-rate class A, B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes. At closing, Autoflorence 3 will also issue unrated class F notes. This will be Findomestic Banca S.p.A's (Findomestic) third auto loan transaction and its eighth ABS transaction S&P rates. The underlying collateral comprises Italian loan receivables for new and used cars and other vehicles, mainly motorcycles and campers. Findomestic originated and granted the loans to its private customers. The loans do not feature balloon payments. The transaction will revolve for 12 months if no stop-revolving triggers are hit. The transaction will have separate interest and principal waterfalls. The interest waterfall will feature a principal deficiency ledger mechanism, by which the issuer can use excess spread to cure defaults. Different from the previous transaction, the reserve will provide liquidity support to all the rated notes, while in Autoflorence 2 it was available for the class A, B, and C notes only. Likewise, the issuer will be able to use principal proceeds to cure interest shortfalls for all the rated classes of notes, while in the previous transaction this was possible only for the class A, B, and C notes. The notes will amortize pro rata, unless one of the sequential amortization events occurs. From then, the transaction will switch permanently to sequential amortization. The assets will pay a monthly fixed interest rate, and the rated notes pay one-month Euro Interbank Offered Rate (EURIBOR) plus a margin subject to a floor of zero. The notes will benefit from two interest rate swaps which, in S&P's opinion, will mitigate the risk of potential interest rate mismatches between the fixed-rate assets and floating-rate liabilities. S&P said, "Our preliminary rating on the class A notes addresses the timely payment of interest. Our preliminary ratings on the other classes instead address the ultimate payment of interest until each class becomes the most senior class outstanding, and timely payment of interest from then. For all the rated notes, our preliminary ratings address the ultimate payment of principal by legal final maturity. "The class E-Dfrd notes are not able to withstand our stresses at the 'B' rating level. We believe the repayment of this class does not depend on favorable conditions, as in a steady state scenario the issuer would be able to meet its obligations under this class. We have therefore assigned our preliminary 'B- (sf)' rating to the class E-Dfrd notes in line with our criteria. "Our structured finance sovereign risk criteria do not constrain our preliminary ratings in this transaction. We expect counterparty risk to be adequately mitigated in line with our counterparty criteria. Our operational risk criteria do not cap our ratings in this transaction." Preliminary ratings CLASS PRELIM. RATING PRELIM. AMOUNT (MIL. EUR) A AA (sf) 440.0 B-Dfrd A (sf) 13.5 C-Dfrd BBB (sf) 14.0 D-Dfrd BB (sf) 9.5 E-Dfrd B- (sf) 8.0 F NR 15.0 NR--Not rated. PIAGGIO AERO: June 12 Deadline Set for Expressions of Interest -------------------------------------------------------------- The Extraordinary Commissioners (Commissari Straordinari) of Piaggio Aero Industries S.p.A. in extraordinary receivership proceedings ("Piaggio Aero") and Piaggio Aviation S.p.A. in extraordinary receivership proceedings ("Piaggio Aviation") hereby call expressions of interest in relation to the purchase of the business complexes carried out by Piaggio Aero and Piaggio Aviation described below: (a) business complexes carried out by Piaggio Aero at the Villanova d'Albenga (SV), Genoa, Pratica di Mare (RM), Trapani, Ciampino (RM) and Viterbo plants/sites, essentially consisting of: (i) property located in Villanova d'Albenga (SV) built on State land; (ii) plants, machinery and equipment relating to all of the production lines/business units (civil and military aviation BU, including customer service, engine BU); (iii) inventory (consisting mainly of raw materials and work in progress); (iv) certifications, authorizations, permits and such like; (v) employment contracts (with, to date, 825 employees) and other contracts; (vi) intellectual property rights, know-how, trademarks and patents; (vii) historical archive; (b) business complex carried out by Piaggio Aviation at the Villanova d'Albenga (SV) plant, essentially consisting of: (i) certifications, authorizations, permits and such like; (ii) employment contracts (with, to date, 16 employees) and other contracts; (iii) intellectual property rights. Expressions of interest must be written in Italian or English and must be delivered to the Extraordinary Commissioners, Mr. Carmelo Cosentino, Mr. Vincenzo Nicastro and Mr. Gianpaolo Davide Rossetti, by 6:00 p.m. CEST of June 12, 2023, by certified e-mail to the address piaggioaeroamministrazionestraordinaria2@pec.piaggioaero.it with the following subject line: "Expression of interest in the purchase of the business complexes of Piaggio Aero Industries S.p.A. in a.s. and Piaggio Aviation S.p.A. in a.s.". In case of expressions of interest drawn up in English, they must be accompanied by a sworn translation into Italian signed by the bidder and contain the express provision that, in case of discrepancies between the two versions, the Italian version will prevail. The above-mentioned expressions of interest shall: -- indicate (i) the subject matter of interest (business complexes or individual business units); (ii) at least in general terms, the recovery/development programs planned for such business complexes/units; and (iii) the name, telephone number, e-mail address of the representative of the legal entity expressing interest; and -- be accompanied by a set of documents (a list of which is available at aimed at providing the Extraordinary Receivership Proceedings with a series of preliminary information about the legal entity expressing interest. Expressions of interest on behalf of a person to be designated (per persona da nominare) or submitted by legal entities other than limited companies (società di capitali), will not be taken into consideration. The Extraordinary Commissioners expressly reserve the right to assess whether to admit those who have expressed an interest to the next stage of the sale procedure. This notice constitutes a call for expressions of interest and not an invitation to offer, nor an offer to the public. The publication of this notice and the receipt of the expression of interest do not imply any obligation to admit to the sale procedure and/or to start negotiations for the sale and/or sale to those legal entities who have expressed an interest in the purchase, nor any right of the latter towards the Extraordinary Commissioners, Piaggio Aero and/or Piaggio Aviation for any reason whatsoever. Any final determination with regard to the sale shall in any case be subject to the authorization of the Italian Ministry of Enterprises and Made in Italy, after hearing the opinion of the Surveillance Committee and, as far as applicable, in compliance with the provisions of Law Decree No. 21 of March 15, 2012, as converted, with amendments, into Law No. 56 of May 11, 2023, as amended and supplemented. VOLKSBANK: S&P Affirms 'BB+/B' ICRs & Alters Outlook to Positive ---------------------------------------------------------------- S&P Global Ratings revised the outlook on Italy-based Banca Popolare dell'Alto Adige (Volksbank) to positive from stable and affirmed the 'BB+/B' long- and short-term issuer credit ratings. S&P said, "The rating action follows our changed view of a positive trend for the economic risks Italian banks face from stable previously. We consider that potentially diminishing economic risks in Italy will benefit the bank's solvency, and estimate that they could add about 80 basis points (bps)-90 bps to our risk-adjusted capital (RAC) ratio projections over the next two years. Good earnings prospects (benefiting from increasing interest rates) and persistently lower-than-system-average cost of credit risk will also allow the bank to maintain its RAC ratio sustainably above 7%." Given the existing sovereign constraints on the vast majority of banks S&P rates, the revised trend did not have rating implications for other institutions. The positive trend reflects S&P's view that domestic banks in Italy have sharply reduced the high stock of problem assets accumulated in the previous downturn, and significantly reduced imbalances on their balance sheets. S&P also believes banks have made structural progress in managing the elevated credit risk they are exposed to in comparison with peer banking systems, including high exposures to weaker small and midsize enterprises (SMEs). This progress can be summarized in better underwriting standards, more proactive management of riskier loans and more prudent provisioning, all under the supervision and guidance of the European Central Bank. Furthermore, the weakest banks that suffered the most in past recessions are no longer operating after being either liquidated or merged into stronger banks. These factors are likely to make Italian banks' asset quality more resilient to future downturns than in the past. Most banks face the challenging economic environment with cleaner balance sheets. At Dec. 31, 2022, the gross stock of NPEs hit a historical low level of 3.5% of customer loans (1.7% net of provisions), compared to over 8% in 2019 before the pandemic and a close to 20% peak in 2015. Preliminary evidence from first-quarter result signals further progress in 2023. Moreover, most banks retained the vast majority of the provision overlays accumulated to cover potential losses from the pandemic that never materialized. Consequently, S&P considers tail risks from legacy NPEs now quite manageable, with only a small number of laggard institutions still significantly exposed. Alongside the asset quality benefits from cyclical conditions -- such as ultra-low interest rates before mid-year 2022, high liquidity in the system, and strong supportive measures from Italian and European authorities during the pandemic—S&P considers that structural progress will likely contribute to maintaining credit losses far below the previous peak in the years to come. Conversely, Italy has proven one of the most effective markets and frameworks for NPEs, providing additional solutions to banks in managing their riskiest exposures after helping them handle the vast majority of legacy NPEs. The next 12-24 months will likely test Italian banks' resilience as the default rate rises from well below the historical average. S&P said, "conditions will inevitably lead to some asset quality deterioration in Italy and elsewhere, in our opinion. We anticipate new NPE flows will increase in 2023 and potentially accelerate in 2024, although this will be manageable for most institutions and remain well below the peak reached in the past downturn." Italian banks can also rely on government guarantees for over EUR200 billion of loans to domestic SMEs and nonfinancial corporations. S&P said, "We currently expect credit losses to increase to about 90 basis points (bps) over the next two to three years, compared to about 50 bps-60 bps in 2022. Our forecast remains well above the 2023 guidance on credit losses provided by most Italian banks during their first-quarter result presentations because we have more prudent assumptions on NPE formation and cure rates." Furthermore, increasing net interest income of at least 20% on average in 2023 will enhance banks' capacity to absorb credit losses while still posting higher net profits. Potential lower economic risks will contribute to better risk adjusted capitalization for Italian banks, with progress ranging 40 bps-90 bps for rated institutions. Better-than-anticipated profitability could also support additional internal capital generation, although in most cases S&P expects banks to maintain generous dividends and likely increase capital distributions to their shareholders. However, in addition to their stand-alone dynamics, Italian banks' creditworthiness remains closely intertwined with that of the sovereign. Given the stable outlook on S&P's 'BBB' long-term sovereign rating on Italy, a potential improvement in our economic risk assessment is unlikely to affect the issuer credit ratings on Italian banks already rated at the level of the sovereign. Banca Popolare dell'Alto Adige (Volksbank) Outlook The positive outlook on Volksbank reflects S&P's view that in the next 12-24 months the bank's creditworthiness could improve. Upside scenario: S&P could consider an upgrade if it concludes that the bank's creditworthiness has strengthened and is consistent with other banks rated investment grade. This would most likely happen if: -- S&P perceives that economic risks faced by Italian banks have diminished, resulting in our projections on Volksbank's RAC ratio sustainably exceeding the 7% threshold over the next two years; and -- S&P has evidence that the bank's asset quality metrics remain resilient to the remaining macroeconomic uncertainty, and operating efficiency improves. Downside scenario: S&P could revise the outlook back to stable if it became less confident about the positive effects of Italy's economic performance on Volksbank's creditworthiness. Ratings Score Snapshot TO FROM ISSUER CREDIT RATING BB+/POSITIVE/B BB+/STABLE/B SACP--Stand-alone credit profile bb+ bb+ Anchor bbb- bbb- Business position Moderate (-1) Moderate (-1) Capital and earnings Moderate (-1) Moderate (-1) Risk position Strong (+1) Strong (+1) Funding and liquidity Adequate and Adequate (0) and adequate (0) adequate (0) Comparable ratings analysis 0 0 Support 0 0 ALAC support 0 0 GRE support 0 0 Group support 0 0 Sovereign support 0 0 Additional factors 0 0 ESG credit indicators: E-2, S-2, G-2 BICRA Score Snapshot* Italy TO FROM BICRA group 5 5 Economic risk 6 6 Economic resilience Intermediate risk Intermediate risk Economic imbalances High risk High risk Credit risk in the economy High risk High risk Trend Positive Stable Industry risk 5 5 Institutional framework Intermediate risk Intermediate risk Competitive dynamics High risk High risk Systemwide funding Intermediate risk Intermediate risk Trend Stable Stable Banking Industry Country Risk Assessment (BICRA) economic risk and industry risk scores are on a scale from 1 (lowest risk) to 10 (highest risk). Ratings List RATINGS AFFIRMED; OUTLOOK ACTION TO FROM BANCA POPOLARE DELL'ALTO ADIGE VOLKSBANK S.P.A. Issuer Credit Rating BB+/Positive/B BB+/Stable/B ===================== N E T H E R L A N D S ===================== CELESTE MIDCO 1: S&P Lowers ICR to 'B', Outlook Stable ------------------------------------------------------ S&P Global Ratings lowered its long-term issuer credit rating on Celeste Midco 1 B.V. to 'B' from 'B+'. S&P also lowered to 'B' from 'B+' its issue ratings on the company's EUR750 million senior secured first-lien term loan B, due 2029, and EUR150 million committed revolving credit facility (RCF), due 2028. The stable outlook reflects S&P's expectations that Affidea will maintain adjusted debt to EBITDA of above 5x and FFO to debt below 12% in the next 12-18 months with positive FOCF (after lease payments) invested in external growth. Celeste Midco B.V., parent of advanced diagnostics imaging and cancer care services provider Affidea, intends to raise a EUR150 million add-on to its existing EUR600 million term loan B, to be used for bolt-on acquisitions. The downgrade reflects Affidea's slower than expected debt reduction prospects over the next 12-18 months--notably adjusted debt to EBITDA of above 5x and FFO to debt below 12%, driven by the company's latest debt-funded acquisitions. In 2022, the company posted adjusted debt to EBITDA of about 5.4x and FFO to debt of close to 12%. S&P said, "The adjusted debt to EBITDA metric was slightly better than our expectation of 5.8x-5.9x, thanks to lower debt even despite a weaker S&P Global Ratings-adjusted EBITDA margin of 20.7% (versus our expectations of 21.5%-22.0%). We attribute the margin evolution in 2022 to high inflation, a general lag in price increases (except out-of-pocket, which is about 20% of private revenues), and abating profitable COVID-19 test sales. The latest debt-funded acquisitions will derail the company's deleveraging prospects in 2023, with credit metrics being weak for the 'B+' rating. For 2023, we anticipate the company will post organic (excluding contributions from newly acquired assets) revenues of EUR830 million-EUR840 million (EUR719 million in 2022) with adjusted EBITDA margins of 20%-21% (20.7% in 2022) and modest FOCF (after working capital, capital expenditure [capex] and lease payments) of EUR5 million-EUR10 million. This should result in broadly stable adjusted debt to EBITDA of close to 5.4x. We anticipate adjusted FFO to be about 10%, with lease adjusted EBITDAR fixed charge (rent plus interest expense) weakening to about 1.5x." S& sai, "We project Affidea's profitability recovery will be more gradual, which, alongside a rise in debt interest, will pressure absolute FOCF generation and will not provide self-funding coverage for acquisitions in the next 12-18 months. The company's FOCF, FFO, and fixed charge coverage metrics will be affected by the expected steep rise in interest expenses from base rate increases and the hedges Affidea put in place after the refinancing of its capital structure in 2022. The company's adjusted EBITDA margins will also be somewhat constrained at 20%-21%, materially below our previous expectations of 22.5%-23.0% for 2023 and 2024, driven by investments in integrating newly acquired assets, ongoing inflationary pressures, notably on staff costs, and the disappearance of COVID-19 test sales. We acknowledge the company has taken steps to improve its profitability, notably renegotiating key equipment manufacturers contracts with price reductions, and strong price increases (about 10% on average) across its geographies. That said, certain cost elements have been growing above revenue in recent years. This is most notable in medical salaries, which accounted for about 43% of total revenues in 2022 (41% in 2021 and below 40% before 2019). The company is countering this through a shift toward volume-based pay-link for remunerating radiologists and investments in the digital channel (teleradiology), which should better align salary growth with revenue growth. Even so, we remain conservative on the company's profitability metrics in the near term, given that we anticipate rising salary trends, in line with the broader health care industry, will continue to pressure margins. We project relatively modest FOCF generation of EUR5 million-EUR10 million in 2023 (after lease payments), gradually improving toward EUR15 million-EUR25 million in 2024, supported by a growing EBITDA base. In our view, these levels do not provide sufficient coverage to make the company self-funding for external growth purposes. "In our ratings, we incorporate headroom for anticipated ongoing acquisition activity as the company is still early in its investment cycle. Affidea operates in a highly fragmented market across both diagnostics imaging and cancer care. The total private diagnostics imaging (which accounted for 67% of Affidea's business in 2022) European market is estimated at about EUR18 billion. Affidea's current geographical footprint (15 countries across West and Central and Eastern Europe) accounts for about one-third of this total addressable market. Across its end markets, the top three players generally account for less than or roughly 10% of the total local market. This implies plenty of scope for further consolidation, and Affidea aims to play a central role in the process. We also believe the company could contemplate entry into new European markets over the medium term to increase addressable market penetration. Under its previous ownership by the Bertarelli family, the company drastically expanded its scale from 120 centers in 2014 to 305 as of Dec. 31, 2022, entering new markets such as Spain and the U.K. in the process. We anticipate the company will continue its buy-and-build strategy under new owner Groupe Bruxelles Lambert (GBL). "We view positively the underlying long-term growth prospects for the sector, which provide Affidea with organic debt reduction prospects over the medium term once it attains sufficient scale. The underlying diagnostics imaging sector growth is estimated to grow by 4%-5% (on average per year) over the next few years. Over the past two years, Affidea has exceeded this rate. Affidea's strong organic growth reflects the ongoing shift toward outpatient services from public hospitals that are becoming more focused on emergencies and select procedures due to chronic underfunding by public health care bodies. The company has also been able to negotiate price increases with public health care bodies (57% of total revenues) and private revenue mix (the remainder) in 2022, which will come into effect in 2023, and it had more discretion and took early pricing in the out-of-pocket (where patients pay for their own coverage; roughly 20% of revenues within private) without losing volumes. The trend toward outpatient treatment, while prevalent even before the COVID-19 pandemic, is further accelerating and spreading across Affidea's geographies. The company is also spending resources on greenfield capex initiatives. This notably includes building centers of excellence in Portugal, Romania, and Lithuania, to create an integrated platform that complements core diagnostics imaging capabilities with prevention, specialist consultations, and potentially low complex treatment and rehabilitation services. "The stable outlook reflects our expectation that Affidea will remain acquisitive in the near-to-medium-term as it aims to play a central role in the consolidation of the highly fragmented advanced diagnostics imaging sector in Europe. We expect the company will successfully integrate its newly acquired businesses with limited cost and disruption. We project the company to maintain adjusted debt to EBITDA of above 5.0x and FFO to debt below 12% over the next 12-18 months with positive FOCF supporting external growth opportunities. "We could lower the ratings on Affidea if adjusted debt to EBITDA rises above 7.0x and fixed charge coverage falls below 1.5x on a sustained basis. Given the significant headroom the company currently has under our benchmark credit ratios, we believe this could occur if the company accelerates market consolidation with debt funded acquisitions, while not able to fully integrate the previous ones and extract planned cost synergies. It could also occur if ongoing cost inflation results in marked profitability shrinkage. "We could upgrade Affidea if the company materially outperforms our base case, such that adjusted debt to EBITDA reduces below 5x and FFO to debt increases to above 12% on a sustained basis, with stronger FOCF largely self-funding external growth investments. This could occur if inflation, particularly on staff costs, abate, and the company achieves faster than expected envisaged synergies from newly acquired assets. Under such a scenario, we would need to observe a track record and commitment by management and owners to maintain metrics at such levels." ESG credit indicators: E-2, S-2, G-2 S&P said, "ESG factors are an overall neutral consideration in our credit rating analysis of Affidea. As an advanced diagnostics services provider, Affidea plays a crucial role in medical outcomes and connecting patients with required treatments. The company is mitigating social risks from the ongoing shortage of qualified radiologists by investing in its digital capabilities to ensure uninterrupted patient access for critical care services. Governance risks from private ownership are balanced by our view that GBL is a strategic investor with a long-term investment horizon, with lack of pressure to generate quick returns for outside investors. The holding boasts stakes in some large and very profitable publicly listed assets that generate sufficient returns to serve its investments needs." ========= S P A I N ========= HAYA HOLDCO 2: S&P Lowers LT ICR to 'CC', Outlook Negative ---------------------------------------------------------- S&P Global Ratings lowered to 'CC' from 'CCC+' its long-term issuer credit ratings on Spain-based real estate company Haya Holdco 2 and core subsidiary Haya Real Estate S.A.U. S&P also lowered to 'CC' from 'CCC+' its issue ratings on the group's senior secured floating-rate notes. The recovery rating remains unchanged at '4'. S&P said, "The negative outlook reflects that we are likely to lower our issuer credit rating on Haya Holdco 2 and Haya to 'D' (default) upon the completion of the debt exchange because we consider it to be distressed and therefore tantamount to default. We would also lower our issue rating on the existing senior secured notes to 'D' at that time." The downgrade follows the announcement on May 10, 2023, of a proposed sale of Haya Real Estate (Haya). According to the announcement, Haya Holdco 2 agreed to sell 100% of its share capital in Haya for a EUR140 million all-cash purchase price to Intrum Holding Spain. Intrum AB also agreed to acquire the existing shareholder loan under which Haya Holdco 2 acts as a lender to Haya. The sale of the business is supported by most of the noteholders, with more than 85% simultaneously entering a lock-up agreement that facilitates the completion of the sale. Furthermore, the net proceeds of the transaction are estimated at EUR120 million, and noteholders may receive additional funds of up to EUR70 million linked to the release of escrow amounts and earn-outs over the next years. The payment of the additional funds will be ensured through the issuance of limited recourse debt instruments. The total amount received by the noteholders will be used to redeem the outstanding notes due 2025, which were issued during the debt restructuring last year. Given the principal amount of EUR350 million outstanding at end-March 2023, lenders will receive significantly less than originally promised. S&P said, "We view the proposed transaction as a distressed exchange and will treat it as tantamount to default upon completion. Despite the compensation expected to be received by the lenders, in our view, the proposed sale and debt repayment is tantamount to default because noteholders will receive less than originally promised. We also anticipate that the elevated leverage and a high interest burden will intensify the pressure on the group's free cash flow generation. We therefore consider the proposed transaction as distressed rather than opportunistic, and we expect to lower our ratings on the group and its debt to 'D' (default) at the closing of the sale. This expected to occur by the end of third-quarter 2023 and still hinges on the antitrust authorization from the Spanish Competition Authority, as well as the effective implementation of the debt restructuring. "The negative outlook reflects that we are likely to lower our issuer credit ratings on Haya Holdco 2 and Haya to 'D' upon the completion of the debt exchange because we consider it to be distressed and therefore tantamount to default. We would also lower our issue rating on the existing senior secured notes to 'D' at that time. The transaction is expected to occur in the second half of 2023." Upside scenario S&P could raise the ratings if Haya doesn't complete the proposed exchange offer and the group establishes a clear plan to avoid any future debt restructuring. ESG credit indicators: E-2, S-2, G-4 ===================== S W I T Z E R L A N D ===================== CREDIT SUISSE: Swap Panel Gets Query That May Trigger Contracts --------------------------------------------------------------- Luca Casiraghi and Giulia Morpurgo at Bloomberg News report that a day after dismissing a question that would have forced a payout on some of Credit Suisse Group AG's default swaps, a panel that oversees the derivatives market received another query that could trigger the contracts. The Credit Derivatives Determinations Committee was asked whether a bankruptcy credit event had occurred with regards to the Swiss lender in March, when it was taken over in a hastily arranged deal by rival UBS Group AG, Bloomberg relays, citing a statement on its website. The new question came in after the CDDC on May 17 determined that another type of credit event -- a government intervention -- hadn't occurred after the $17 billion of Additional Tier 1 notes were wiped out, Bloomberg discloses. The committee took the view that the AT1 securities were too junior to trigger Credit Suisse's subordinated CDS contracts, Bloomberg states. This question is different. It relates to both senior and subordinated CDS. So if the panel rules that a bankruptcy event had occurred, it would trigger payouts on swaps tied to all of Credit Suisse debt. The net notional volume on those swap contracts amounted to US$1.74 billion as of May 12, according to data from the Depository Trust & Clearing Corporation, Bloomberg notes. According to Bloomberg, the credit default swaps tied to Credit Suisse Group had been tumbling following the May 17 decision. The main difference between the two questions is that a bankruptcy credit event relates to the issuer's finances, while a governmental intervention credit event involves a state happens when the intervention by the state leads to a reduction in the interest or the principal of the bonds underlying the swaps, Bloomberg says. CREDIT SUISSE: Swiss Parliament to Launch Probe Into Collapse ------------------------------------------------------------- John Revill at Reuters reports that Credit Suisse's collapse and its takeover by UBS will be investigated by a parliamentary commission (PUK), the office of Switzerland's upper house of parliament said on May 17. The move comes after two sub-committees supported a deeper investigation into how the government, Swiss central bank and financial market regulator acted in the run up to the emergency rescue of Credit Suisse, Reuters notes. The investigation's exact mandate as well as the membership of the commission have not yet been determined, and will be decided by both legislatures during their next sessions, which begin on May 30, it said, Reuters relates. "Given the magnitude of the events and the financial impact, the office concludes that the establishment of a PUK is warranted," Reuters quotes the office of the upper house as saying in a statement. "The office advocates a broad formulation of the investigative mandate, . . . and the clarification of the events of recent years that led to the emergency merger," it added. Under the rescue deal engineered by Swiss authorities over one March weekend, UBS agreed to buy Credit Suisse for CHF3 billion in stock and to assume up to CHF5 billion in losses that would stem from winding down part of the business, marking the first rescue of a global bank since the 2008 financial crisis, Reuters discloses. A regulatory filing on May 16 in the United States showed how UBS was rushed into buying Credit Suisse in a deal it did not want, while UBS also flagged tens of billions of dollars in potential losses from the takeover, Reuters recounts. =========================== U N I T E D K I N G D O M =========================== FIRST4SOLAR: Goes Into Administration ------------------------------------- Charles Gray at Yorkshire Evening Post reports that a message has been issued on the website of First4Solar stating that it has gone into administration and that the "uncompleted customer order book" has been acquired by Contact Solar Ltd. The Yorkshire Evening Post was contacted by numerous customers of First4Solar from across the UK complaining that they had paid deposits last year and were still waiting for work to be completed after multiple installation dates were missed. Two weeks ago a letter was sent to customers awaiting their systems to be fitted from the co-director of Firsr4Solar David Hawkins, in which he said that the business was in "advanced discussions" for another company to purchase the company's assets, Yorkshire Evening Post relates. He said that the buyer would "complete all outstanding contracts", Yorkshire Evening Post notes. According to Yorkshire Evening Post, another statement has now been placed on the company's website accredited to Contact Solar Ltd that reads: "As you may be aware, Tanrec Limited t/a First4Solar have gone into administration on May 18, 2023. "We, Contact Solar Ltd, have adopted the uncompleted customer order book from Tanrec Ltd. The good news is, that depending on your deposit amount paid, we will now be fulfilling your installation. "Contact Solar Ltd has been in the solar industry for many years and focus heavily on five star customer service. "We are assessing the status of a large number of existing contracts, in particular customers who have been awaiting an installation. To allow our team to operate in the most efficient manner possible, it is important to allow us to contact you. "We appreciate that many customers will have experienced frustration, however, please trust that a member of our team will be in touch at the earliest opportunity. "If you have any queries in the meantime, please contact us on f4s@contact-solar.co.uk and we will endeavour to respond as quickly as possible." GREAT SHEFFORD: Goes Into Voluntary Liquidation ----------------------------------------------- John Garvey at Newbury Today reports that the business that runs The Great Shefford village pub has gone into voluntary liquidation. However company director Josh Khan said his other West Berkshire pub, The King Charles Tavern in Cheap Street, Newbury, remains unaffected. Meanwhile, Mr. Khan said it remained business as usual and the popular village pub restaurant, which has become a fine dining destination, remains open. A petition to wind up the company, J and G (Pubs) (UK) Ltd, whose registered office is listed as The Great Shefford, was brought by creditors HM Revenue and Customs (HMRC). It was lodged with the High Court of Justice in April. Later in the month, a meeting was held between Mr. Khan and the creditors, resulting in liquidators being appointed on Friday, May 5. The process is known as creditors' voluntary liquidation and represents the decision to close down a limited company, usually with the threat of insolvency looming. In 2021, The Great Shefford had a GBP1 million refurbishment, while The King Charles Tavern in Cheap Street, Newbury, had an GBP80,000 makeover. Mr. Khan had previously warned that The Great Shefford could become unviable when, in 2020, planners rejected a bid to create a ‘breakfast kiosk' in the pub car park. Mr. Khan said this week: "Unfortunately the company couldn't cope with the losses sustained during Covid. "HMRC got very jittery and aggresive and so, sadly, we've had to dissolve the company." Nevertheless, said Mr. Khan, "the lease remains in our name," The Great Shefford would continue to welcome customers and he had contingency plans for the future. MARKET BIDCO: EUR1.30B Bank Debt Trades at 16% Discount ------------------------------------------------------- Participations in a syndicated loan under which Market Bidco Ltd is a borrower were trading in the secondary market around 84.1 cents-on-the-dollar during the week ended Friday, May 19, 2023, according to Bloomberg's Evaluated Pricing service data. The EUR1.30 billionfacility is a Term loan that is scheduled to mature on November 4, 2027. The amount is fully drawn and outstanding. Market Bidco Ltd was an entity formed by funds managed by private equity company Clayton, Dubilier & Rice, LLP, to acquire supermarket giant Wm Morrison Supermarkets Plc. The Company's country of domicile is the United Kingdom. MARKET BIDCO: EUR709M Bank Debt Trades at 16% Discount ------------------------------------------------------ Participations in a syndicated loan under which Market Bidco Ltd is a borrower were trading in the secondary market around 84.3 cents-on-the-dollar during the week ended Friday, May 19, 2023, according to Bloomberg's Evaluated Pricing service data. The EUR709.9 million facility is a Term loan that is scheduled to mature on November 4, 2027. The amount is fully drawn and outstanding. Market Bidco Ltd was an entity formed by funds managed by private equity company Clayton, Dubilier & Rice, LLP, to acquire supermarket giant Wm Morrison Supermarkets Plc. The Company's country of domicile is the United Kingdom. PARLIAMENT PLACE: Administrators in Dispute Over Land Deal ---------------------------------------------------------- Lisa Rand at Liverpool Echo reports that a land deal which led to a building hit by claims over an "illegal eviction attempt" being acquired by an offshore company led to questions being raised by administrators. Developer Elliot Lawless bought the freehold of land on Upper Parliament Street from Liverpool Council in 2016 while an 116-room block of flats, Parliament Place, was being constructed on the site, Liverpool Echo discloses. The land was later transferred to another company owned by Mr. Lawless, 1DOM Ltd., Liverpool Echo recounts. The date at which this transfer took place became a matter of some dispute after the company that originally owned it, Parliment (sic) Place Ltd, went into administration in 2020, Liverpool Echo notes. In October 2020, leaseholders -- owners of individual units in the block -- applied to have Parliment Place Ltd put into administration amid claims of not receiving guaranteed rent payments they were owed., Liverpool Echo states. According to Liverpool Echo, in an administrators' report filed with Companies House in February 2021, solicitors acting on behalf of the leaseholders stated they had been informed the property had been transferred the week before the company went into administration to 1DOM Ltd. However, the transfer to 1DOM Ltd had not been filed with the Land Registry and questions were raised by the administrators as to whether it had actually taken place at all, and what the details of any transfer which did take place were, Liverpool Echo states. In a dispute lasting more than two years, administrators attempted to gain access to records relating to the land deal from Elliot Lawless and his Liverpool-based solicitors Hill Dickinson, Liverpool Echo relays. According to a series of joint administrators' reports, "several attempts" had been made through 2021 and 2022 to gain more information about the nature of the transaction and the valuation given to the land -- as well as company records that could help administrators determine the company's assets, Liverpool Echo notes. After failing to get the documents required, administrators had asked the court to compel Mr Lawless to hand over evidence about the transaction, Liverpool Echo relates. Before the hearing, which had been set for July 2021, took place, Hill Dickinson partner and former business associate of Elliot Lawless Michael Murphy met with the administrators alongside Mr. Lawless to discuss the information request, Liverpool Echo discloses. In a further court hearing, administrators attempted to gain access to more documents. Mr. Lawless eventually submitted a statement to the court that he had no further evidence to provide. The administrators, as cited by Liverpool Echo, said they then wrote to Mr. Lawless challenging the land transfer and demanding its return to the company or compensation equivalent to its value. They claimed the land transfer contravened company laws because it was an undervalued transaction, a "preference payment", a "transaction defrauding creditor" and "not legally transferred." Mr. Lawless disputed these claims and said that in any case the value of the freehold had been "dramatically reduced" due to cladding problems with the building -- a claim for which the administrators said he had provided no evidence, Liverpool Echo relates. Mr. Lawless had offered to make a GBP50,000 settlement payment against the claims by creditors, which by January 2023 had reached over half a million pounds, according to Liverpool Echo. The offer was rejected, with a deadline put in place for an increased offer, although administrators later noted "this had not been made", Liverpool Echo recounts. While the administration proceedings were ongoing and discussions taking place over the legality of the land transfer between Parliment Place Ltd and 1DOM Ltd, a legal charge was placed on the land by an Isle of Man-based company, Collateral Investments Ltd., Liverpool Echo notes. Solicitors had to contact Kings Counsel -- senior barristers who deal with the most complex of legal cases -- in order to gain advice. According to the report, they were advised that it would be "uncertain" a court case against Collateral Investments Ltd -- which later changed its name to Schloss Roxburghe Holdings Ltd -- would rule in favour of the creditors unless it could be proved that the company knew about the administration proceedings before registering the charge, Liverpool Echo states. Parliment Place Ltd was shortly afterwards moved into liquidation, a process which is still ongoing. Administrators have filed confidential reports with the Insolvency Service over the actions of Mr. Lawless, Liverpool Echo relates. PLATFORM BIDCO: EUR600M Bank Debt Trades at 15% Discount -------------------------------------------------------- Participations in a syndicated loan under which Platform Bidco Ltd is a borrower were trading in the secondary market around 84.8 cents-on-the-dollar during the week ended Friday, May 19, 2023, according to Bloomberg's Evaluated Pricing service data. The EUR600 million facility is a Term loan that is scheduled to mature on September 23, 2028. The amount is fully drawn and outstanding. Platform Bidco Ltd is a UK entity incorporated in April 2021 for the acquisition of Valeo Foods Group Ltd, an Irish-headquartered producer and distributor of branded and non-branded ambient food products. The Company's country of domicile is the United Kingdom. ********* 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. 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