/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/230601.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, June 1, 2023, Vol. 24, No. 110 Headlines I R E L A N D ALBACORE EURO V: Fitch Assigns Final 'B-sf' Rating on Cl. F Notes GTLK EUROPE: Ireland's High Court Orders Winding-Up of Business N E T H E R L A N D S MAGELLAN DUTCH: S&P Affirms 'B' ICR & Alters Outlook to Negative R U S S I A ALMALYK MINING: Fitch Affirms LongTerm IDR at 'BB-', Outlook Stable S P A I N BOLUDA TOWAGE: Fitch Alters Outlook on 'BB' LongTerm IDR to Stable S W E D E N SAMHALLSBYGGNADSBOLAGET I NORDEN: Fitch Cuts LT IDR to 'BB+' T U R K E Y PEGASUS AIR: Strong Financial Performance Prompts Rating Upgrade U N I T E D K I N G D O M LAKELAND INNS: Enters Liquidation, Owes More Than GBP870,000 MYFRESH: Enters Administration Year Following Tuber Acquisition RELISH EVENT: Enters Liquidation, Owes More GBP819,000 TOUCAN ENERGY: Administrators Begin Formal Sales Process WEJO LTD: Files Notice of Intention to Enter Administration YELLOW EARL: Goes Into Liquidation, Owes Nearly GBP224,000 - - - - - ============= I R E L A N D ============= ALBACORE EURO V: Fitch Assigns Final 'B-sf' Rating on Cl. F Notes ----------------------------------------------------------------- Fitch Ratings has assigned AlbaCore Euro CLO V DAC final ratings as detailed below. Entity/Debt Rating Prior ----------- ------ ----- AlbaCore Euro CLO V DAC Class A Loan LT AAAsf New Rating AAA(EXP)sf Class A Notes XS2600113919 LT AAAsf New Rating AAA(EXP)sf Class B-1 Notes XS2600115021 LT AAsf New Rating AA(EXP)sf Class B-2 Notes XS2600114131 LT AAsf New Rating AA(EXP)sf Class C Notes XS2600114214 LT Asf New Rating A(EXP)sf Class D Notes XS2600115377 LT BBB-sf New Rating BBB-(EXP)sf Class E Notes XS2600114560 LT BB-sf New Rating BB-(EXP)sf Class F Notes XS2600114644 LT B-sf New Rating B-(EXP)sf Subordinated Notes XS2600115534 LT NRsf New Rating NR(EXP)sf TRANSACTION SUMMARY AlbaCore V CLO DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to fund a portfolio with a target par of EUR350 million. The portfolio is actively managed by Albacore Capital LLP. The collateralised loan obligation (CLO) has about 4.5-year reinvestment period and an 8.5 year weighted average life (WAL) test limit. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B'/'B-'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 23.9. 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 62.8%. Diversified Asset Portfolio (Positive): The transaction includes four Fitch matrices: two effective at closing and corresponding to a top 10 obligor concentration limit at 20%, fixed-rate asset limits at 12.5% and 15%, and a 8.5 year WAL test; and two that can be selected by the manager at any time from one year after closing as long as the aggregate collateral balance (including defaulted obligations at their Fitch-calculated collateral value) is at least at the target par and corresponding to the same limits as the closing matrices, but with a 7.5 year WAL test. The transaction also includes various concentration limits, including the 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 about 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-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Neutral): The WAL used for the stressed-cased portfolio was 12 months less than the WAL covenant to account for structural and reinvestment conditions after the reinvestment period, including passing the over-collateralisation and Fitch 'CCC' limitation tests, and a WAL covenant that progressively steps down over time, both before and after the end of the reinvestment period. In Fitch's opinion, these conditions reduce the effective risk horizon of the portfolio during the stress period. 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 to E notes but would lead to downgrades to below 'B-sf' for the class F notes. Downgrades, which are based on the current 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 and shorter life of the current portfolio than the stressed-case portfolio, the class B to F notes display a rating cushion of up to three notches. Should the cushion between the current portfolio and the stressed-case portfolio be eroded either due to manager trading 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 stressed-case portfolio would lead to downgrades of up to four notches for the class A to D notes and below 'B-sf' for the class E notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the RDR across all ratings and a 25% increase in the RRR across all ratings of the stressed-case portfolio would lead to upgrades of up to three notches for the rated notes, except for the 'AAAsf' rated notes. During the reinvestment period, upgrades, which are based on the stressed-case portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, leading to the ability of the notes to withstand larger-than-expected losses for the remaining life of the transaction. After the end of the reinvestment period, upgrades, except for the 'AAAsf' notes, 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. TRANSACTION SUMMARY AlbaCore V CLO DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to fund a portfolio with a target par of EUR350 million. The portfolio is actively managed by Albacore Capital LLP. The collateralised loan obligation (CLO) has about 4.5-year reinvestment period and an 8.5 year weighted average life (WAL) test limit. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B'/'B-'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 23.9. 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 62.8%. Diversified Asset Portfolio (Positive): The transaction includes four Fitch matrices: two effective at closing and corresponding to a top 10 obligor concentration limit at 20%, fixed-rate asset limits at 12.5% and 15%, and a 8.5 year WAL test; and two that can be selected by the manager at any time from one year after closing as long as the aggregate collateral balance (including defaulted obligations at their Fitch-calculated collateral value) is at least at the target par and corresponding to the same limits as the closing matrices, but with a 7.5 year WAL test. The transaction also includes various concentration limits, including the 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 about 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-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Neutral): The WAL used for the stressed-cased portfolio was 12 months less than the WAL covenant to account for structural and reinvestment conditions after the reinvestment period, including passing the over-collateralisation and Fitch 'CCC' limitation tests, and a WAL covenant that progressively steps down over time, both before and after the end of the reinvestment period. In Fitch's opinion, these conditions reduce the effective risk horizon of the portfolio during the stress period. 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 to E notes but would lead to downgrades to below 'B-sf' for the class F notes. Downgrades, which are based on the current 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 and shorter life of the current portfolio than the stressed-case portfolio, the class B to F notes display a rating cushion of up to three notches. Should the cushion between the current portfolio and the stressed-case portfolio be eroded either due to manager trading 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 stressed-case portfolio would lead to downgrades of up to four notches for the class A to D notes and below 'B-sf' for the class E notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the RDR across all ratings and a 25% increase in the RRR across all ratings of the stressed-case portfolio would lead to upgrades of up to three notches for the rated notes, except for the 'AAAsf' rated notes. During the reinvestment period, upgrades, which are based on the stressed-case portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, leading to the ability of the notes to withstand larger-than-expected losses for the remaining life of the transaction. After the end of the reinvestment period, upgrades, except for the 'AAAsf' notes, 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. GTLK EUROPE: Ireland's High Court Orders Winding-Up of Business --------------------------------------------------------------- Conor Humphries and Padraic Halpin at Reuters report that Ireland's High Court on May 31 ordered the winding up of two sanctions-hit state-owned Russian leasing firms based in Ireland after a group of creditors said the companies had no prospect of clawing back an almost US$1.6 billion net deficit. GTLK Europe DAC and GTLK Europe Capital DAC, whose main business is aircraft leasing, had sought to prevent the appointment of liquidators by applying for court protection from creditors, citing a decree by Russian President Vladimir Putin to relieve US$1.5 billion of debt, Reuters relates. According to Reuters, the High Court denied the request to enter examinership, a process akin to Chapter 11 bankruptcy protection in the United States that allows an applicant time to restructure debts while operating as a going concern. "It seems to me that the petitioner did not act in good faith and the relief should be refused," Judge Conor Dignam told the court. He went on to list a number of "fatal" shortcomings of the examinership request, noting that the possible appearance of certain assets in the future did not amount to creation of a reasonable chance of survival for the firms as going concerns, Reuters recounts. He then appointed joint liquidators, which means the leasing companies' aircraft and shipping assets will no longer be under the control of the Russian government, Reuters relays. The companies' business "simply stopped" due to the Western sanctions imposed in response to Moscow's invasion of Ukraine, a lawyer for a number of GTLK's bondholders, Kelley Smith, told the court on May 30. GTLK, whose clients previously included Aeroflot, Emirates Airlines and easyJet according to a presentation on its website, had already defaulted on 13 interest payments to the tune of US$175 million, and would default on hundreds of millions of dollars more in the next year, Ms. Smith added, Reuters discloses. Bondholders are cumulatively owed US$3.75 billion, the court was told, according to Reuters. ===================== N E T H E R L A N D S ===================== MAGELLAN DUTCH: S&P Affirms 'B' ICR & Alters Outlook to Negative ---------------------------------------------------------------- S&P Global Ratings revised its outlook on Netherlands-based home care services provider and medical devices distributor Mediq B.V.'s holding company Magellan Dutch BidCo B.V. to negative from stable and affirmed the 'B' issuer credit and issue ratings on the company and its debt. The negative outlook indicates that S&P would lower the ratings if Mediq fails to achieve consistent and significant EBITDA growth and a reduction in its financial leverage to below 7x. Mediq's 2022 financial leverage increased above our expectations, and we expect it will remain elevated in 2023. S&P's forecast its adjusted debt to EBITDA will stand at 7.6x in 2023 and 7.1x in 2024. This is higher than its previous expectations, mainly because we now forecast a continued impact from restructuring, as well as additional inflationary pressure. Combined with lower volumes, these factors will absorb price increases and cost savings measures. In 2022, the company's S&P Global Ratings-adjusted EBITDA stood at EUR71.7 million, lower than the company's reported EUR86.5 million. This is related to restructuring and acquisition related costs, which we consider as operating costs and recurring as per our criteria. S&P said, "Our adjusted debt to EBITDA increased to 8.9x but was distorted by additional debt related to the acquisition of DiaExpert and Bunzl's health care division in the U.K., which closed in December of last year. Hence, the company's accounts do not include EBITDA from these acquisitions. Excluding this, the S&P Global Ratings-adjusted leverage would be 7.8x. "We think Mediq's operating environment remains challenging. While inflation is pushing customers (insurers and public health authorities) to accept higher prices, Mediq's suppliers will likely try to increase prices. Furthermore, differentiation is limited as products are mostly commoditized and offered by competition. "The differentiation encompasses Mediq as a one-stop shop, covering various categories such as diabetes, respiratory, ostomy, wound care, and--above all--being able to deliver products in a timely and efficient manner to customers. With this in mind, we believe Mediq benefits from a solid infrastructure that, during the pandemic, demonstrated its resilience and ability to deal with large volumes in a timely fashion, even despite supply chain volatility (notably in terms of prices). "We anticipate that a backlog for product demand could provide additional growth. We expect 2023 revenue will continue to be affected by lower COVID-19 self-tests as well as a milder recovery of volumes. We project revenue growth of 2%-3% in the medical consumables market. In any case, the market is still disrupted by the pandemic, which emphasized the backlog of demand. The postponement of elective surgeries and other medical appointments existed before COVID-19, mainly due to underinvestment in the health care system, nurse shortages, and limited operating efficiency in public clinics and hospitals." This unmet demand could support EBITDA and revenue growth. However, there is uncertainty on the magnitude and when it will materialize. S&P said, "We anticipate mergers and acquisitions (M&A) will likely continue to be part of Mediq's growth story, but seamless integration is imperative. There is uncertainty around the magnitude of the future restructuring. Our base case assumes restructuring costs will remain high in 2023 and 2024, broadly in line with 2022 levels. We assume net positive synergies starting from 2024. This should stem from sales as the group widens its product offering and brand assortment through acquisitions, as well as from cost benefits from Mediq's warehouses, logistics, and supply chain management. Headroom for additional M&A will depend on the group's performance, the pace of integration, and reduction in restructuring. Nevertheless, we view rating headroom as more limited, given heightened leverage and lower self-funding capacity due to low EBITDA margins and the rise in interest rates. "The negative outlook reflects our view that Mediq's S&P Global Ratings-adjusted debt to EBITDA could remain above 7x over the next 12 to 18 months. Our base case includes inflationary pressure on costs, which would absorb the benefits from efficiency efforts, as well as price increases. "We could lower our rating if the company underperforms our base case, such that our adjusted debt to EBITDA remains materially above 7x on a prolonged basis. This would also imply weakening EBITDA cash interest coverage below 2x as well as FOCF turning negative." This could most likely occur if: -- The company fails to achieve consistent and material EBITDA growth due to inflation and competitive pressure, while restructuring costs remain significant and continue to erode profitability. -- The company accelerates market consolidation with debt funded acquisitions, while not able to generate sufficient synergies to contain the leverage increase. S&P said, "We could revise our outlook to stable if the company demonstrates its ability to outperform our base case, thanks to better EBITDA growth than anticipated. This would result in a solid path of sustainable deleveraging below 7x. This should translate into an S&P Global Ratings-adjusted EBITDA margin comfortably above 6%, including restructuring and M&A related costs. We would also expect FOCF to remain comfortably positive, enabling the company to partially self-fund its external growth strategy." ESG credit indicators: E2, S-2, G-3 S&P said, "Governance factors are a moderately negative consideration in our credit rating analysis of Magellan Dutch Bidco (Mediq), as is the case for most rated entities owned by private-equity sponsors. We view financial sponsor-owned companies with aggressive or highly leveraged financial risk profiles as demonstrating corporate decision making that prioritizes the interests of the controlling owners, typically with finite holding periods and a focus on maximizing shareholder returns. Environmental and social credit factors have no material influence on our credit rating. On the environmental side, we note the company's effort to reduce waste, although we view the supply chain notably in far East countries as the major factor for the distributor and the scope 3 data is not yet available. On the social side, Mediq has two main strategic pillars, 'health system strengthening' and 'patient empowerment and well-being', which align with UN Sustainable Development Goal 3 to 'ensure healthy lives and promote well-being at all ages'." =========== R U S S I A =========== ALMALYK MINING: Fitch Affirms LongTerm IDR at 'BB-', Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed JSC Almalyk Mining and Metallurgical Complex's (Almalyk) Long-Term Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. The rating is equalised with that of its sole parent Uzbekistan (BB-/Stable) due to strong ties between the company and the state under Fitch's Government-Related Entities (GRE) Rating Criteria. Fitch assesses Almalyk's Standalone Credit Profile (SCP) at 'b+', reflecting its current reliance on a single mine Kalmakir until a new greenfield copper-gold Yoshlik project is commissioned, high execution and financial risks linked to the development of the project, and concentration of operations in one country with a weak operating and less favourable mining environment. Rating strengths are its small but increasing scale of operations, commodity diversification into copper, gold, zinc and silver, a favourable cost position of its main asset, long reserve life and moderate projected leverage. KEY RATING DRIVERS Strong State Linkage: Almalyk's rating is equalised with Uzbekistan's due to strong linkage with the state. Fitch views the status, ownership and control factor as 'Strong' as the state is Almalyk's sole shareholder but may consider selling a minority stake in the future. Fitch assesses support track record as 'Very Strong' because a significant share of the company's consolidated debt (30% at end-2022) was guaranteed by the state, and the state also agreed to provide an USD1 billion equity injection to support the Yoshlik project. 'Moderate' Socio-Political; 'Strong' Financial Implications: Almalyk is one of the major employers in and the second-largest tax contributor to the country at around 9% of the state's total budget in 2022. However, Fitch sees socio-political implications of a default as 'Moderate' as the company does not provide essential services to the population but rather exports most of its copper production and sells gold to the Uzbek Central Bank. Fitch views financial implications of a default as 'Strong' because Fitch deems its debt as a proxy for the government's. Budget Contributions Limit Financial Flexibility: Mining taxation in Uzbekistan is high compared with other jurisdictions' and is subject to unpredictable changes depending on the economic cycle. Almalyk's contributions to the state budget include payment of a mineral extraction tax for copper and gold, profit tax, and significant dividend payments (normally at least 50% of net income). However, Almalyk is only moderately leveraged while taxes and dividends are flexible to support the company during a downturn. Transformative Yoshlik Project: Yoshlik is a transformative copper-gold-silver project for Almalyk and the country's mining industry. Its first phase (budget: USD4.8 billion) consists of a new mine and a processing plant that will substantially increase the company's copper output to 260 thousand tonnes (kt) by 2025 (up 75% vs. 2022) and gold output to around 850 thousand ounces (koz) by 2025 (up 40%). The second phase (which is yet to be sanctioned and implies construction of a new copper smelting plant at around USD1 billion) should increase Almalyk's production even further. The Yoshlik project should substantially increase Almalyk's scale of production and asset diversification. Execution Risk: Almalyk has limited experience in delivering projects of this scale and is exposed to cost overruns and delays. However, Fitch assumes a timely ramp-up of Yoshlik from 2024 in its rating case, considering the project's advanced stage of development. Moderate Leverage: Under Fitch price assumptions and the company's ambitious capex programme, Fitch estimates its EBITDA gross leverage to increase to around 2x in 2023-2026 from 0.7x in 2021. Its funds from operations (FFO) gross leverage will increase to around 3x from 1.6x over the same period. Almalyk does not have any public leverage targets, but Fitch views its projected leverage as moderate. Average All-In Sustaining Cost Position: Almalyk's main asset Kalmakir has low cash costs, due to its average-quality ore (0.35% copper content), different by-products and 70% of its costs being denominated in local currency. The CRU all-in sustaining cost amounts to USD3,500/t in 2023, placing the company in the second quartile of the global copper cost curve. The combined 2P reserve life for Kalmakir and Yoshlik mines, based on their projected production, is high at around 100 years. Improving Corporate Governance: Similar to other state-controlled companies in Uzbekistan Almalyk is working on improving its corporate governance. Almalyk started publishing IFRS financials (however, interim results are not available) and re-estimated its reserves according to the JORC international standard. However, its board is dominated by state representatives and its proposed IPO has been pushed back. DERIVATION SUMMARY Almalyk's peers include copper producers First Quantum Minerals Ltd. (FQM; B+/RWN), Freeport-McMoRan Inc. (BBB-/Positive), Hudbay Minerals Inc. (BB-/Stable) and precious metals producers like Endeavour Mining plc (BB/Stable). Almalyk's output (149k tonnes of copper and 0.4 million ounces of gold) is higher than Hudbay's (104k tonnes of copper and 0.1 million ounces of gold) and significantly smaller than that of FQM and Freeport, which are among the top 10 global producers. FQM produced 776k tonnes in 2022 and Freeport 1.2 million tonnes. Almalyk's medium-term cost position is second quartile, compared with the first quartile for Hudbay and the third quartile for FQM. Freeport's assets on average are slightly behind Almalyk's within the second quartile. Almalyk's operational diversification is weaker than peers', with more than 80% of production coming from a single mine. The company is also exposed to single country operational risk while the peers have operations in multiple countries. Freeport benefits from wider diversification across geographies with a more stable operating environment and more sizable assets with long reserve life. Almalyk and FQM have the highest profitability among the peers with EBITDA margins ranging between 40% and 50% through the cycle, despite Almalyk's more competitive cost asset base than FQM's. The company has higher EBITDA leverage than the peers as it is at the early stage of construction of a new project and additional loans for capex are yet to be obtained. KEY ASSUMPTIONS - Volumes in line with management assumptions, significantly increasing from 2024 when Yoshlik starts production - Fitch's price deck for copper, gold and zinc to 2026 - Average EBITDA margin of 47% in 2023-2026 - Capex peaking in 2023-2024, then moderating through to 2026 - Dividends at 50% of net income RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - A positive rating action on the sovereign would be reflected in Almalyk's rating - EBITDA gross leverage below 1.5x on a sustained basis could be positive for the SCP but not necessarily for the IDR Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - A negative sovereign rating action - Material weakening of ties with the state - EBITDA gross leverage above 2.5x on a sustained basis could be negative for the SCP but not necessarily for the IDR - Unremedied liquidity issues Uzbekistan (Rating Action Commentary dated 3 March 2023) Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - External Finances: A substantial worsening of external finances, such as through a large drop in remittances, or a widening in the trade deficit, leading to a significant decline in foreign-exchange reserves - Public Finances: A marked rise in the government debt-to-GDP ratio or an erosion of sovereign fiscal buffers, for example due to an extended period of low growth or crystallisation of contingent liabilities Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - Structural: Further improvement in governance standards and an easing in political risk - Macro: Consistent implementation of structural reforms that boost GDP growth and macroeconomic stability, leading to a significant narrowing of Uzbekistan's GDP per capita gap with peers' LIQUIDITY AND DEBT STRUCTURE Stretched Standalone Liquidity: Almalyk's standalone liquidity is rather stretched given its ambitious capex programme and negative free cash flow (FCF) projected for 2023-2024. However, its funding needs for the first stage of the Yoshlik project have been largely met. Almalyk expects the second stage of the project - budgeted USD1 billion - to be funded by loans from international banks. ISSUER PROFILE Almalyk is a fairly small-sized metals producer with copper and gold accounting for 80% of total revenue (149,000 tonnes copper and 438,000 ounces produced in 2022) with first phase of its transformative copper and gold project under construction. ESG CONSIDERATIONS JSC Almalyk Mining and Metallurgical Complex has an ESG Relevance Score of '4' for Financial Transparency due to limited record of audited financial statements, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Entity/Debt Rating Prior ----------- ------ ----- JSC Almalyk Mining and Metallurgical Complex LT IDR BB- Affirmed BB- ========= S P A I N ========= BOLUDA TOWAGE: Fitch Alters Outlook on 'BB' LongTerm IDR to Stable ------------------------------------------------------------------ Fitch Ratings has revised Boluda Towage, S.L.'s (Boluda) Outlook to Stable from Negative, while affirming its Long-Term Issuer Default Rating (LT IDR) and EUR890 million senior secured term loan B (TLB) at 'BB'. RATING RATIONALE The Outlook revision is driven by better-than-expected growth in tug moves, prices and margins, resulting in more rapid-than-expected deleveraging. Gross debt fell to around 5.7x EBITDA in 2022 from around 9.7x in 2020. The ratings reflect the group's fairly high leverage profile, its single-bullet debt structure, which entails significant refinancing risk, and stable cash flow generation resulting from a geographically diversified portfolio of operations with a solid presence in some markets where it is the sole operator (above 80% of consolidated EBITDA). The stable revenue profile is also supported by a lack of competition in the group's traditional markets. However, its KST acquisition in 2019 has put pressure on Boluda's margins, which are now also exposed to inflation and other costs. KEY RATING DRIVERS Diversified and Resilient Volumes - Volume Risk: 'High Midrange' Boluda operates in more than 20 countries and almost 80 ports and terminals. Fitch expects volume performance to be more stable in markets where Boluda acts as sole operator (about 80% of EBITDA) than in markets with competition (about 20%). Revenue performance has been solid since 2008 with a peak-to-trough in volumes between -9% and -13% for Spain, France and Africa (on a like-for-like basis). In 2020, during the Covid-19 crisis, volume fell an overall 6%, as ports remained fairly resilient during this period. The main threats to Boluda are implementation of measures to facilitate competition in markets where it acts as sole operator, or further consolidation in the towage services industry, which may attract large competitors with the financial resources to make the required investments to operate in bigger ports. Limited Flexibility on Tariffs - Price Risk: 'Midrange' Boluda signs global agreements with most of its clients that include discounts on tariffs to encourage the use of its services in ports where it faces competition. About 55% of revenue comes from global and regional agreements that include discounts, and the average discount differs by client and type of contract. This gives Boluda some flexibility, as it might be able to renegotiate the terms of the contract if the tariff is significantly reduced, or renegotiate the discount in the next contract renewal. Young Fleet, Self-Funded Capex - Infrastructure Development and Renewal: 'Stronger' Boluda has a well-maintained and modern fleet (average life of 17 years compared with 40-45 years of useful life). Maintenance needs, timing and capital planning are well-defined, based on its long-term experience. Also, Boluda has shown significant capex flexibility during downturns. Capex is self-funded, and includes acquisition of new vessels in 2023-2027. Boluda has a detailed plan for dry-docking (maintenance), which is based on its own experience, and ensures adequate conditions of the fleet. It is exposed to extraordinary dry-docking, but Fitch believes this risk is manageable given the size of the fleet and their long-term experience. Boluda complies with current environmental requirements as it has invested in adapting its fleet to comply with environmental standards on CO2 and sulphur emissions. Refinancing and Interest Rate Risk - Debt Structure: 'Weaker' Boluda's rated TLB is fully exposed to interest-rate risk. Significant exposure to the refinancing of the bullet structure further weighs on its assessment. The covenant package is looser than in a traditional project-finance debt structure. It has no financial default covenants, and the structure only benefits from a springing leverage financial covenant for the benefit and protection of revolving credit facility (RCF) lenders. Boluda has some flexibility regarding additional financial indebtedness, as it could increase leverage 1x above net debt/EBITDA as calculated under the finance documentation at closing, with a basket of other permitted financial indebtedness. Financial Profile Under the updated Fitch Rating Case (FRC), Boluda's gross leverage returns to within its rating sensitivity this year, indicating a good recovery of the credit profile after the 2020 pandemic shock. Fitch expects leverage to remain comfortably at 'BB', with gross debt falling below 5x EBITDA by 2024. However, leverage is highly sensitive to moderate stresses of tug moves and prices. Fitch expects the group's cash flow post-capex to remain positive under FRC. Liquidity position is comfortable for the next three years, with no bullet maturities until 2026. PEER GROUP Fitch has compared Boluda with EP BCo S.A. (Euroports; BB-/Stable) and Mersin Uluslararasi Liman Isletmeciligi A.S. (senior unsecured debt B/Negative). Euroports has a similar debt structure to Boluda, common for leveraged-finance transactions, with weak structural features, but Boluda benefits from better geographic and cargo diversification, stronger resilience in its historical volumes, and lower leverage, resulting in the higher rating. Mersin has lower leverage of around 2.5x in 2023-2026. However, Mersin's debt rating is capped by the Turkish Country Ceiling. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Gross debt/EBITDA above 5.5x on a sustained basis - Failure to maintain comfortable and long-dated weighted average license and concession life Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Gross debt/EBITDA below 4.5x on a sustained basis CREDIT UPDATE Volumes increased 6% and average rates increased 15% in 2022. The strong price increase was mainly driven by favourable changes in goods mix and positive market conditions. Revenues increased 24% and EBITDA 37%, despite increasing fuel and personnel costs. Boluda's generation of cash was strong over the year. It repaid in full the funds drawn under its revolving credit facility (RCF), and paid out dividends. The liquidity position is solid. Given the single bullet nature of its TLB it has no refinancing needs until 2026. Dividend distributions have resumed in 2022 as permitted in the documentation. Boluda's shareholder has no reliance on Boluda's dividends. Boluda continues to renew successfully licenses and concessions, and the overall weighted average license and concession life have remained fairly stable. On a separate and ring-fenced transaction outside its rating perimeter, Boluda Corporación Marítima (BCM), the shareholder, reached an agreement to acquire Smit Lamnalco, a competitor. The deal is still subject to regulatory approvals in several countries. FINANCIAL ANALYSIS Its FRC forecasts an increase in volumes in line with the GDP of the countries where Boluda operates, and prices to remain at current levels. Fitch also expects personnel costs to grow in line with inflation, and EBITDA margin to remain fairly stable, having recovered to pre-pandemic levels. 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 ----------- ------ ----- Boluda Towage, S.L. LT IDR BB Affirmed BB Boluda Towage, S.L./Debt/1 LT LT BB Affirmed BB =========== S W E D E N =========== SAMHALLSBYGGNADSBOLAGET I NORDEN: Fitch Cuts LT IDR to 'BB+' ------------------------------------------------------------ Fitch Ratings has downgraded Swedish property company SBB - Samhallsbyggnadsbolaget i Norden AB's (SBB) Long-Term Issuer Default (LT IDR) and senior unsecured debt ratings to 'BB+' from 'BBB-'. The LT IDR Outlook is Negative. The rating actions reflect Fitch's expectation that SBB's leverage will remain high despite receipts from its EduCo and JM equity stake disposals. SBB has announced plans for further disposals in 2023 but material execution risks remain and will hamper deleveraging to maintain its previous investment-grade rating. Refinancing risk has also increased with material upcoming bond maturities in 2023 and 2024, near-term hybrid bond call dates with potential interest-rate resets, and reduced undrawn credit facilities. SBB's intentions to postpone its scheduled dividend will, if approved by shareholders, provide a temporary liquidity boost, but not lead to sustained deleveraging. The Negative Outlook reflects management's various options to stabilise leverage, liquidity and receive disposal receipts, but which are challenged by declining values for real estate and unconducive funding conditions. In Fitch's view, SBB's current financial constraints stem from receiving forms of deferred payments for assets devolved from the group, rather than immediate cash proceeds to deleverage the remaining SBB. KEY RATING DRIVERS Insufficient Deleveraging: Fitch forecast SBB's net debt/EBITDA to remain high at around 18.5x at end-2023 and 16.7x at end-2024. Its forecast has not included any proceeds from the planned disposal of its residential subsidiary Sveafastigheter or refinancing proceeds from EduCo, which would, if completed, reduce SBB's leverage. Rising interest costs, unaided by rating-related step-ups, will put pressure on SBB's interest cover ratio. Fitch forecasts SBB's interest cover to decline to 1.7x in 2023 and 1.9x in 2024. Fitch includes 100% of SBB's hybrid coupons when calculating interest cover. Core Rental-Derived Profits: Improvements in SBB's core profitability have been slower than Fitch expectations in the current inflationary environment with recurring extraordinary costs. SBB plans to deleverage by completing disposals, limiting acquisitions, and conserving cash flow via reducing development capex until end-2025. This will enable additional rents from completion of SBB's ongoing pre-let developments, and CPI-indexation on its rental income, which will aid deleveraging. Completing EduCo Disposal: During 1Q23, SBB completed the transfer of SEK43 billion social public education properties to EduCo and received SEK8.7 billion in cash from Brookfield for a 49% equity stake in the JV. SBB will receive a further SEK0.5 billion in proceeds when the remaining SEK1.7 billion properties are transferred in 2Q23. When completed, SBB's yearly cash receipts from EduCo will comprise interest income on SBB's shareholder loan (3% on SEK14.5 billion), management fees (1.8% of EduCo's net operating income) and dividends. If EduCo refinances SBB's shareholder loan to EduCo with external debt and SBB uses these proceeds to reduce its debt, this would aid SBB's deleveraging. Fitch has not included refinancing of the SEK14.5 billion shareholder loan, which formally matures in 2028 in its forecast. Actions to Conserve Liquidity: SBB has recently taken measures to conserve liquidity. Following cancelled plans to raise SEK2.6 billion in equity through a class D share issue, SBB announced its intention to postpone the remaining scheduled dividend payments, subject to shareholder approval. The liquidity improvement will be temporary, as postponed dividends will be paid ahead of the AGM in 2Q24. The second liquidity measure results in immediate proceeds. On 11 May 2023, SBB raised SEK2.8 billion in cash proceeds by selling its 19 million shares in listed housing developer JM. The cash proceeds are to be used for debt repayment. The disposal reduces SBB's ownership to SEK1.9 million shares and a corresponding lower dividend received. Heightened Refinancing Risk: With the actions taken to conserve liquidity, SBB has sufficient liquidity to cover its SEK14.3 billion debt maturities (including commercial paper) within 12 months but with limited headroom. Significant maturities remain within 12-24 months (end-1Q23: SEK17.7 billion), which will require further refinancing under increasingly adverse market conditions. For an investment-grade rating Fitch expects such debt maturities to be managed 12-18 months ahead of maturities. Potential Residential Listing: In February 2023, SBB announced its intention to sell a 70% stake in its residential subsidiary Sveafastigheter and SBB is evaluating the conditions to list the shares on the stock market. The subsidiary would own SEK15 billion of properties in a combination of assets held directly, held in joint ventures and as listed shares (Heba Fastighets AB). Proceeds from a disposal would depend on favorable stock market conditions or on finding an alternative private investor. Fitch has not included any cash receipts to SBB from this disposal in its forecast. Core Community Service Portfolio: SBB's end-1Q23 portfolio by value was around 67% community service and office properties and 28% regulated residential. The community service properties have an indirect and direct government tenant base, including government departments, municipalities, education, elderly care, and LSS group housing. Fitch views SBB's long-term, government-linked rental income on CPI-indexed rents as lower risk and able to carry higher leverage than commercial properties. DERIVATION SUMMARY With the lower-yielding nature of SBB's residential rental portfolio and longer lease length than peers' (from both community service assets and given the average tenure of residential assets), and its portfolio mix, Fitch has allowed SBB more leverage headroom and lower interest cover than (i) commercial property-orientated Swedish peers; and (ii) EMEA commercial property peers that underpin its EMEA REIT Navigator mid-point ratio guidelines. Fitch views SBB's real estate portfolio as stable, due to the strength of Swedish residential properties with regulated below-open market rents and community service properties' stable tenant base with longer term leases. This is tempered by the regional location of some assets within SBB's portfolio. Its portfolio fundamentals are less sensitive to economic cycles than commercial office property companies that are reliant on open market conditions with multiple participants affecting market fundamentals. Assura plc (A-/Stable) builds and owns modern general practitioners' (doctors) facilities in the UK, with approved rents indirectly paid by the National Health Service and a similar 11.8 years weighted average unexpired lease term (WAULT). Its portfolio at end-2022 was much smaller than SBB's at GBP2.8 billion. Reflecting Assura's community service activities, a 4.4% net initial yield (SBB: 4.4%), 99% occupancy rate, and specific-use assets, the company's downgrade rating sensitivity to 'BBB+' includes net debt/EBITDA greater than 9x, compared with SBB's blended upgrade metric to 'BBB-' at below 12.5x net debt/EBITDA. In part, this acknowledges the wider diversity of SBB's larger portfolio, including the current mix of residential rental exposure, and the different Swedish interest rate environment (as reflected in tighter property yields). Net interest cover (NIC) is more difficult to compare, as the companies have different interest rate environments. Assura's NIC of 5.8x is markedly higher than SBB's 2.9x at end-2022. The smaller but community service-akin Civitas Social Housing PLC and Triple Point Social Housing REIT PLC (both A-/Stable) have the same 'BBB+' leverage downgrade rating sensitivity as Assura for their long WAULT, low vacancy rate, and special needs accommodation that also has a government rental income covenant (sourcing housing benefit). Annington Limited (BBB/Negative) is less comparable with SBB as it has a direct UK Ministry of Defence rental covenant for its military housing portfolio with no void or maintenance cost risks. These peers have not had the significant merger and acquisition activity, which SBB had had until mid-2022, nor a comparable level of disposals, which SBB has had since mid-2022. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer - Completion of the EduCo disposal and a further SEK6 billion of primarily community service properties disposals during 2023 - Moderate 2.5%-4% rental growth in 2023 to 2026, driven by CPI indexation and moderate inflation - Around SEK1 billion in residential and community service refurbishment capex per year, which has a net 4%-6% income return on spend - No acquisitions to 2027 - Building rights profits and disposal proceeds amounting to SEK0.75 billion-SEK1 billion per year in cash flow for each of the next four years - Payment of postponed 2023 dividend in 2Q24, followed by cash dividends at 90% of funds from operation to 2027 RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - Net debt/EBITDA of less than 12.5x based on the current portfolio mix of around 20% residential by EBITDA - EBITDA net interest cover greater than 2.0x - Unencumbered investment property assets/unsecured debt above 2.0x - Weighted average debt maturity above five years - Twelve-month liquidity score above 1.0x Factors That Could, Individually or Collectively, Lead to Downgrade: - Lack of progress in debt refinancing by end-2023 - Twelve-month liquidity score below 1.0x - Net debt/EBITDA greater than 14.5x (including lack of progress in reducing net debt/EBITDA below 16x by end-2024) - EBITDA net interest cover below 1.5x LIQUIDITY AND DEBT STRUCTURE Refinancing Risk: At end-1Q23, SBB had SEK4.3 billion in readily available cash (excluding SEK1 billion in pledged cash) and SEK2.4 billion of undrawn credit facilities. During 2Q23, SBB has sold a large portion of its stake in JM for SEK2.8 billion, and signed an additional SEK2.4 billion in credit facilities. Additionally, SBB has SEK2.1 billion in receipts from signed disposals scheduled to be received during 2023. In total this amounts to SEK14 billion. This compares with SEK11.9 billion in bond and bank debt and SEK2.5 billion in commercial paper maturing within 12 months. After this, a further SEK17.7 billion of debt will mature within 12-24 months, which will require further liquidity resources. SBB's average interest cost was 2.29% at end-1Q23, which will increase thereafter, excluding hybrids. ESG CONSIDERATIONS SBB has an ESG credit relevance score of 4 for Governance Structure to reflect key person risk and different voting rights among shareholders affording greater voting rights to the key person. The key person risk and SBB's shareholder voting mechanism have a negative impact on the credit profile, and are relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- SBB – Samhallsbyggnadsbolaget i Norden AB LT IDR BB+ Downgrade BBB- ST IDR B Downgrade F3 Subordinated LT BB- Downgrade RR6 BB senior unsecured LT BB+ Downgrade RR4 BBB- senior unsecured ST B Downgrade F3 SBB Treasury Oyj senior unsecured LT BB+ Downgrade RR4 BBB- =========== T U R K E Y =========== PEGASUS AIR: Strong Financial Performance Prompts Rating Upgrade ---------------------------------------------------------------- Pegasus Airlines' successful financial performance in 2022 has resulted in an upgrade in its credit rating. Pegasus Airlines' long-term credit rating was upgraded from B+ to BB- by Fitch Ratings Limited (Fitch) on April 14, 2023, and from B to B+ by S&P Global Ratings (S&P) on May 23, 2023. Fitch and S&P announced their credit ratings with "Negative Outlook", mirroring that on the current macroeconomic conditions. The international credit rating agencies have also revised the credit rating of the senior unsecured debt issued by Pegasus Airlines accordingly. In the reports published by Fitch and S&P, the rating upgrade is attributed to Pegasus Airlines' strong operational and financial results in 2022 and the subsequent quarterly period. Among global airline operators, Pegasus Airlines recorded the highest EBITDA margin with 34.1% and the lowest non-fuel unit cost (CASK, non-fuel) with 2.18 euro cents, based on public data. In 2022, Pegasus Airlines increased the number of passengers it carried by 34%, and grew its revenue by 139%, year-on-year. The airline also achieved €69 million EBITDA and a 15.1% EBITDA margin in the first quarter of 2023, making it highest first quarter performance in the company's history. Barbaros Kubatoglu, Chief Financial Officer (CFO) of Pegasus Airlines, commented: "Despite 2022 starting with challenges for the aviation industry due to the Omicron variant and a backdrop of macroeconomic and geopolitical tensions, it ultimately became a year of rapid travel demand recovery compared to the pandemic period. The year continued with a strong summer season and presented a favourable operating environment for airlines that were well-prepared for this resurgence. In 2022, which we started operationally and financially well prepared, we achieved the best financial performance in the global aviation sector, by managing our operations effectively in parallel with robust demand. It is of great significance to us that our 2022 performance, which continues with the same success in the first quarter of 2023, is recognised by independent rating agencies, and that this performance is also emphasised as sustainable." About Pegasus Airlines Entering the aviation sector in 1990, Pegasus was acquired by ESAS Holding in 2005 and adopted the low-cost business model. As Türkiye’s leading low-cost airline, Pegasus believes that everyone has the right to fly and offers its guests the opportunity to travel with good value fares, and young aircraft through its low-cost model. As of 2018, Pegasus has adopted the motto "Your Digital Airline" and carries its guests to 129 destinations in 48 countries; 36 of which are in Türkiye and 93 of which are on its international network. Pegasus operates connecting flights between Türkiye and Europe, North Africa, Middle East and Central Asia via Istanbul Sabiha Gökçen. Pegasus offers digital technologies and unique innovations that enhances the guest experience. =========================== U N I T E D K I N G D O M =========================== LAKELAND INNS: Enters Liquidation, Owes More Than GBP870,000 ------------------------------------------------------------ Adam Lewis at Cumbria Crack reports that Lakeland Inns Group Limited, a company that operated five pubs in Cumbria, has gone into liquidation. The company appointed a voluntary liquidator on March 31 this year, with debts to creditors totalling more than GBP870,000, Cumbria Crack relates. Leonard Curtis of Preston has been appointed as the voluntary liquidator, Cumbria Crack discloses. All of the pubs, except the Black Cock Inn, are currently still trading, Cumbria Crack states. The group's Statement of Affairs, which is available to view via the Companies House register, details debts of GBP873,453.14, Cumbria Crack notes. The statement lists the company's assets at GBP439,993 and an unpaid tax bill of GBP374,425, according to Cumbria Crack. MYFRESH: Enters Administration Year Following Tuber Acquisition --------------------------------------------------------------- Luisa Cheshire at Fresh Produce Journal reports that fresh produce processing firm MyFresh has gone into administration less than one year after its purchase by potato firm Tuber Group from the William Jackson Food Group. Conrad Alan Beighton and Dane O'Hara of Leonard Curtis Business Rescue and Recovery, London, are acting as administrators for MyFresh, which was declared insolvent on April 20, 2023, Fresh Produce Journal relates. Based in Bedfordshire, MyFresh processed and supplied freshly prepared vegetables to the B2B and foodservice sector and employed around 150 staff at its vegetable processing facility in Chicksands, Bedfordshire. Its range included peeled and chopped potatoes, onions, carrots and sweet potatoes, plus pureed products. RELISH EVENT: Enters Liquidation, Owes More GBP819,000 ------------------------------------------------------ Liam Thorp at Liverpool Echo reports that Relish Event Catering Ltd, a major Liverpool catering company, has gone into liquidation owing creditors more than GBP800,000 -- including a substantial sum to Liverpool City Council. The company has been voluntarily wound up, with liquidators from Cowgill Holloway Business Recovery LLP now appointed, Liverpool Echo relates. According to Liverpool Echo, documents on Companies House indicate that at the point of being wound up, Relish Event Catering owed more than GBP819,000 to creditors. These creditors include Liverpool City Council, which is owed more than GBP21,000 by the catering firm, Liverpool Echo states. A range of other creditors are listed including a number of local, independent businesses, Liverpool Echo notes. The company's director Kiara Mako said economic challenges and the covid pandemic had led to the problems that saw Relish Catering fold into liquidation, Liverpool Echo discloses. TOUCAN ENERGY: Administrators Begin Formal Sales Process -------------------------------------------------------- Sabah Meddings at Bloomberg News reports that administrators to Toucan Energy Holdings 1, a failed owner of dozens of solar farms, have begun a formal sales process for the business, which received hundreds of millions of pounds from a bankrupt English council. Interpath Advisory was appointed to handle the administration and sale of Toucan last November, as Thurrock Council in Essex revealed it was owed GBP692 million (US$857 million) by the business, Bloomberg relates. Interpath, which has hired advisers from KPMG to oversee an auction of the 53 sites, is hoping to recover losses through the sale of the farms, Bloomberg discloses. WEJO LTD: Files Notice of Intention to Enter Administration ----------------------------------------------------------- Jon Robinson at BusinessLive reports that Manchester-headquartered connected vehicle data company Wejo, which is listed on the US Nasdaq, has filed a notice of intention to enter administration. According to BusinessLive, Wejo Ltd, an indirect, wholly-owned subsidiary of Wejo Group, is preparing to appoint Andrew Poxon and Hilary Pascoe of Leonard Curtis Recovery as administrators. In a statement, the company added that it is evaluating whether it will file ancillary insolvency proceedings for Wejo Group and its other subsidiaries in other jurisdictions, including in the United States, in due course, BusinessLive relates. The group added that it expects to receive a notice from the Nasdaq that its common shares are "no longer suitable" to be listed, BusinessLive notes. Wejo, as cited by BusinessLive, said it would not appeal that decision and expects its shares to be delisted. The group said the move would not affect its operations or business, BusinessLive discloses. In November 2021 Wejo, which is backed by US giant General Motors, floated on the Nasdaq after completing a reverse merger, BusinessLive recounts. Wejo was founded in 2014 and at the time employed more than 250 people. YELLOW EARL: Goes Into Liquidation, Owes Nearly GBP224,000 ---------------------------------------------------------- Lucy Jenkinson at News & Star reports that the company behind a popular Whitehaven bar has gone into liquidation, owing nearly GBP224,000. The Yellow Earl Ltd, which has been trading from Lowther Street since December 2016, appointed a voluntary liquidator earlier this month, News & Star relates. According to News & Star, a total of GBP223,932 is owed to creditors, with GBP155,094 outstanding to HMRC in VAT, corporation tax, and payroll. The company also owes GBP44,865 in a government Bounce Back loan, which enabled smaller businesses to access finance during the coronavirus pandemic. Copeland Borough Council is owed GBP9,000, News & Star discloses. The Yellow Earl remains open and is now being run under new management, News & Star notes. Documents published through Companies House show a special resolution was passed on April 18 and signed by director of The Yellow Earl Ltd, Danny Maudling, that the company would be wound up voluntarily, News & Star recounts. Daryl Warwick and Mike Kienlen of Armstrong Watson were named as joint liquidators on May 3 and the registered office was changed to Armstrong Watson in Carlisle, News & Star states. ********* 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. 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