/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/230705.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 Wednesday, July 5, 2023, Vol. 24, No. 134 Headlines B O S N I A A N D H E R Z E G O V I N A NOVA TVORNICA: Court Opens Pre-Bankruptcy Proceedings I R E L A N D RICHMOND PARK CLO: Moody's Ups Rating on EUR14.3MM F Notes to B3 U K R A I N E OSCHADBANK JSC: Fitch Affirms 'CCC-/CCC' LongTerm IDRs UKRGASBANK JSB: Fitch Affirms 'CCC-/CCC' LongTerm IDR U N I T E D K I N G D O M BRADLEYS OF GRIMSBY: CRG Insolvency Appointed as Administrator BRUNLEA PRINT: Leonard Curtis Appointed as Administrator FEROX RESOURCING: Leonard Curtis Appointed as Administrator ILKE HOMES: Fate of New Nottinghamshire Homes in Limbo ILKE HOMES: More Than 80 Former Workers to Take Legal Action JPA TRANSPORT: Leonard Curtis Named as Administrator JR & AL SMITH: Begbies Traynor Appointed as Administrator MJW LAW LTD: Leonard Curtis Appointed as Administrator ROMA LEATHER: RSM Restructuring Appointed as Administrator SILVAN SELECT LIMITED: Ballard & Mercian Named Administrators SLACK & PARR: Enters Administration, Buyer Sought for Business THAMES WATER: GBP1-Bil. Cash Injection Not Enough, Ofwat Says THAMES WATER: S&P Puts 'BB+' Rating on Class B Debt on Watch Neg. - - - - - =========================================== B O S N I A A N D H E R Z E G O V I N A =========================================== NOVA TVORNICA: Court Opens Pre-Bankruptcy Proceedings ----------------------------------------------------- Dragana Petrushevska at SeeNews reports that the District Commercial Court in Bosnia and Herzegovina's Istocno Sarajevo has launched a procedure for the potential opening of bankruptcy proceedings against local oil and air filter manufacturer Nova Tvornica Precistaca, local media reported. The court appointed Dragomir Stjepanovic interim bankruptcy administrator, news provider Capital reported on July 3, SeeNews relates. Jadranka Covic, director of Nova Tvornica Precistaca, requested opening of bankruptcy proceedings against the company in April, SeeNews says, citing the report. The state-owned Investment-Development Bank of Bosnia's Serb Republic, IRBRS, had a failed attempt to sell the company in 2022 in a tender in which it received only one invalid offer, SeeNews discloses. ============= I R E L A N D ============= RICHMOND PARK CLO: Moody's Ups Rating on EUR14.3MM F Notes to B3 ---------------------------------------------------------------- Moody's Investors Service has upgraded the ratings on the following notes issued by Richmond Park CLO Designated Activity Company: EUR13,000,000 Class C-1 Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to Aa1 (sf); previously on Sep 20, 2022 Upgraded to Aa3 (sf) EUR21,000,000 Class C-2 Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to Aa1 (sf); previously on Sep 20, 2022 Upgraded to Aa3 (sf) EUR22,800,000 Class D-R Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to A3 (sf); previously on Sep 20, 2022 Upgraded to Baa1 (sf) EUR14,300,000 Class F Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to B3 (sf); previously on Sep 20, 2022 Affirmed Caa1 (sf) Moody's has also affirmed the ratings on the following notes: EUR321,900,000 (Current outstanding amount EUR156,686,703) Class A Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Sep 20, 2022 Affirmed Aaa (sf) EUR18,500,000 Class B-1 Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Sep 20, 2022 Affirmed Aaa (sf) EUR15,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031, Affirmed Aaa (sf); previously on Sep 20, 2022 Affirmed Aaa (sf) EUR23,100,000 Class B-3 Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Sep 20, 2022 Affirmed Aaa (sf) EUR31,000,000 Class E-R Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed Ba2 (sf); previously on Sep 20, 2022 Upgraded to Ba2 (sf) Richmond Park CLO Designated Activity Company originally issued in January 2014 and refinanced in October 2017 and July 2018, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Blackstone Ireland Limited. The transaction's reinvestment period ended in July 2021. RATINGS RATIONALE The rating upgrades on the Class C-1, C-2, D-R and F Notes are primarily a result of the deleveraging of the most senior notes following amortisation of the underlying portfolio since the last rating action in September 2022. The Class A Notes have paid down by approximately EUR55.5 million (17.3% of the closing balance) since the last rating action in September 2022. As a result of the deleveraging, over-collateralisation (OC) has increased across the capital structure. According to the trustee report dated May 10, 2023 [1] the Class A/B, Class C, Class D and Class E OC ratios are reported at 160.87%, 138.75%, 127.04% and 113.96% compared to August 10, 2022 [2] levels of 149.45%, 132.67%, 123.38% and 112.65%, respectively. 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: EUR339.99m Defaulted Securities: EUR4.37m Diversity Score: 44 Weighted Average Rating Factor (WARF): 2944 Weighted Average Life (WAL): 3.1 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.48% Weighted Average Coupon (WAC): 3.28% Weighted Average Recovery Rate (WARR): 45.34% 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. Moody's notes that the June 2023 trustee report was published at the time it was completing its analysis of the May 2023 data. Key portfolio metrics such as weighted average recovery rate, diversity score, weighted average spread and life exhibit little or no change between these dates. The increase in defaulted assets from EUR1.9m to EUR4.3m had been incorporated in Moody's analysis. 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. 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. 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. ============= U K R A I N E ============= OSCHADBANK JSC: Fitch Affirms 'CCC-/CCC' LongTerm IDRs ------------------------------------------------------ Fitch Ratings has upgraded JSC State Savings Bank of Ukraine (Oschadbank)'s Viability Rating to 'ccc-' from 'cc' and affirmed its Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at 'CCC-' and Long-Term Local-Currency (LTLC) IDR 'CCC'. The IDRs do not carry an Outlook at this level. Fitch has downgraded the Government Support Rating (GSR) to 'no support' (ns) from 'ccc-'. The upgrade of the VR reflects Fitch view of Oschadbank's moderately lower risk of failure as a result of its more resilient asset quality and profitability due to a less severe operating environment than Fitch previously expected. Nonetheless, Fitch believe failure remains a real possibility. The downgrade of the GSR reflects Fitch belief that in the event of a material capital shortfall, Oschadbank would likely operate under regulatory capital forbearance in the near term, rather than receive prompt extraordinary capital support from the sovereign. KEY RATING DRIVERS VR Upgrade, Lower Failure Risk: Incrementally better operating conditions for Ukrainian banks have resulted in greater credit quality resilience in Oschadbank's loan portfolio and better earnings and profitability than Fitch previously expected. As a result, although risks to capital remain very high, Fitch believe the bank is now less likely to suffer a material capital shortfall and require regulatory capital forbearance to continue operating. High Risk of Default: Oschadbank's LTFC IDR reflects Fitch's view that a default on its senior FC obligations remains a real possibility due to the war. Nonetheless, the bank maintains generally adequate FC liquidity relative to its needs, helped by various regulatory capital and exchange controls in place since the outbreak of the war to reduce the risks of deposit and capital outflows and maintain stability and confidence in the banking system. Manageable External Obligations: While FC repayments remain subject to considerable uncertainty, Fitch base-case expectation is that Oschadbank will continue to service its external obligations. Its external debt accounted for a low 3% of its total funding at end-1Q23. The bank has repaid about USD158 million of its Eurobonds since the start of the war. Its next repayments are moderate in size at around USD6 million due in July 2023 and USD25 million in September 2023. IDRs, VR Above Sovereign: Oschadbank's LTFC IDR and VR are one notch above Ukraine's LTFC IDR of 'CC' and its LTLC IDR is one notch above the sovereign LTLC IDR of 'CCC-'. This reflects Fitch view of a lower risk the authorities will impose restrictions on banks servicing their FC and LC obligations, or of the bank failing, than non-payment by the sovereign. This approach is consistent with Fitch's criteria under certain circumstances when bank and sovereign ratings are both at very low levels. Lower LC Default Risk: Oschadbank's LTLC IDR at 'CCC', one notch above its LTFC IDR, reflects limited regulatory restrictions and constraints on LC operations. The banking sector's LC liquidity management is currently supported by limits on cash withdrawals and a guarantee of all retail deposits for the duration of the war and three months thereafter. Oschadbank's LC retail deposits grew 65% to end-1Q23 since the start of the war (sector: 34%), reflecting the bank's retail focus. High Exposure to Sovereign: Fitch view of Oschadbank's risk profile continues to reflect its significant exposure to the sovereign's very weak credit profile, primarily through its investments in government securities and loan-book exposures to state-owned enterprises. This makes the bank vulnerable to the sovereign's repayment capacity and liquidity position. Profitability, Forbearance Sustain Capital Ratios: Oschadbank reported a regulatory net profit of UAH2.1 billion in 1Q23 following profits of UAH0.6 billion in 2022, despite a surge in loan impairment charges (LICs) caused by the war. These spiked to almost UAH12 billion in 2022 (2021: UAH1.8 billion), equivalent to a high 12.2% of its average gross loans. Fitch expect LICs to moderate in the near term, albeit remaining elevated and subject to high volatility due to the war. Earnings have been supported by Oschadbank's liquidity buffer, a significant portion of which is held with the central bank at yields of 20%+, and a one-off net gain on revaluation of indexed securities of about UAH5 billion in 2022. Internal capital generation, together with broad industry forbearance measures and zero risk weights on domestic government bonds in LC have helped sustain the bank's regulatory core capital ratio at 10.3% at end-1Q23 (end-1H22: 9.3%). RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Fitch would downgrade Oschadbank's IDRs and debt ratings in the event of a sovereign LTLC IDR downgrade or if Fitch perceive an increased likelihood that the bank would default on or seek a restructure of its senior obligations. A downgrade of the sovereign LTFC IDR due to a debt restructuring that excluded Ukrainian banks' FC obligations would not affect Oschadbank's LTFC IDR. A marked further deterioration in asset quality that eroded the bank's loss absorption buffers would lead to a VR downgrade. The VR would be downgraded to 'f', indicating the bank has failed, if this results in a material capital shortfall and necessitates regulatory capital forbearance. A sovereign LTLC IDR downgrade would also likely result in a VR downgrade. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Fitch believes positive rating action on the IDRs and debt ratings is unlikely in the near term. However, the ratings could be upgraded in the event the sovereign IDRs are upgraded. An upgrade of the VR would likely require an upgrade of the sovereign LTFC IDR, a considerable improvement in the operating environment and significantly smaller than expected loan losses, leading to lower solvency risk. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Oschadbank's Short-Term IDR of 'C' is in line with Fitch's rating correspondence table. The 'CCC-' ratings on Oschadbank's senior unsecured debt, issued by UK-registered SSB No.1 PLC, are aligned with the bank's LTFC IDR. Fitch believe the default risk of these bonds is equivalent to the default risk implied by the LTFC IDR, and view these senior unsecured obligations as having average recovery prospects, as reflected in the Recovery Rating of 'RR4'. The affirmation of Oschadbank's National Long-Term Rating at 'AA(ukr)' reflects the bank's unchanged creditworthiness in LC relative to other Ukrainian issuers. The downgrade of the GSR to 'ns' reflects Fitch belief that in the event the bank breached its minimum capital requirements, recapitalisation would be unlikely in the near term. Instead, Fitch believe the bank would rely on regulatory capital forbearance to continue to operate. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The Short-Term IDR is sensitive to change in the LTFC IDR. The senior unsecured debt rating is sensitive to change in Oschadbank's LTFC IDR, with which it is aligned. A change in Oschadbank's National Long-Term Rating would likely arise from a weakening or strengthening in its overall credit profile relative to other Ukrainian entities rated on the National Rating scale. The GSR could be upgraded if the sovereign rating was upgraded or Fitch believed it was likely that public finances would be used to recapitalise state-owned banks in the near-term, if needed. VR ADJUSTMENTS The operating environment score of 'ccc-' is below the 'b' category implied score due to the following adjustment reason: sovereign rating (negative). The business profile score of 'ccc-' is below the 'b' category implied score due to the following adjustment reason: business model (negative). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS Oschadbank has an ESG Governance Structure score of '4', which reflects the high influence of the government over the bank's business operations and strategy development, as evidenced by the bank's significant involvement in government-sponsored programmes, such as the 'Affordable Loans 5-7-9%' programme. This has a moderately negative impact on the bank's credit profile due to governance risks and potential involvement in directed financing, in Fitch's view, 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. UKRGASBANK JSB: Fitch Affirms 'CCC-/CCC' LongTerm IDR ----------------------------------------------------- Fitch Ratings has upgraded JSB Ukrgasbank's Viability Rating to 'ccc-' from 'cc' and affirmed its Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at 'CCC-' and Long-Term Local-Currency (LTLC) IDR at 'CCC'. The IDRs do not carry an Outlook at this level. The Government Support Rating (GSR) has been downgraded to 'no support' (ns) from 'ccc-'. The upgrade of the VR reflects Fitch view of Ukrgasbank's moderately lower risk of failure as a result of its more resilient asset quality and profitability due to a less severe operating environment than Fitch previously expected. Nonetheless, Fitch believe failure remains a real possibility. The downgrade of the GSR reflects Fitch belief that in the event of a material capital shortfall, Ukrgasbank would likely operate under regulatory capital forbearance in the near term, rather than receive prompt extraordinary capital support from the sovereign. KEY RATING DRIVERS VR Upgraded, Lower Failure Risk: Incrementally better operating conditions for Ukrainian banks have resulted in greater credit quality resilience in Ukrgasbank's loan portfolio and better profitability than Fitch previously expected. As a result, although risks to capital remain high, Fitch believe the bank is now less likely to suffer a material capital shortfall and require regulatory capital forbearance to continue to operate. High Risk of Default: Ukrgasbank's LTFC IDR reflects Fitch's view that a default on its senior FC obligations remains a real possibility due to the war. Nonetheless, the bank maintains generally adequate FC liquidity relative to its needs, helped by various regulatory capital and exchange controls in place since the outbreak of the war to reduce the risks of deposit and capital outflows and maintain stability and confidence in the banking system. Manageable External Obligations: FC repayments remain subject to considerable uncertainty, but Fitch base-case expectation is that Ukrgasbank will continue to service its external obligations. The bank's available FC liquidity was sufficient to cover FC wholesale debt maturing over 12 months, plus a moderate share of FC customer deposits at end-1Q23. IDRs, VR Above Sovereign: Ukrgasbank's LTFC IDR and VR are one notch above Ukraine's LTFC IDR of 'CC' and its LTLC IDR is one notch above the sovereign LTLC IDR of 'CCC-'. This reflects Fitch view of a lower risk the authorities will impose restrictions on banks servicing their FC and LC obligations, or of the bank failing, than non-payment by the sovereign. This approach is consistent with Fitch's criteria under certain circumstances when bank and sovereign ratings are both at very low levels. Lower LC Default Risk: Ukrgasbank's 'CCC' LTLC IDR, one notch above its LTFC IDR, reflects limited regulatory restrictions and constraints on LC operations. The banking sector's LC liquidity management is currently supported by limits on cash withdrawals and a guarantee of all retail deposits for the duration of the war and three months thereafter. Concentrations Elevate Risk Profile: Ukrgasbank operates with significant exposure to the sovereign through government bonds and lending to SOEs; as well as a high share of FC loans in the loan book (46%) and significant concentration in the risky energy sector. The high concentrations pose significant risks to the bank, considering the sovereign's repayment capacity and liquidity position. Elevated Asset Quality Risks: Ukrgasbank's asset quality metrics worsened sharply after the beginning of the war, which led to significant loan impairment charges (2022: around 200% of pre-impairment operating profit). The risks to asset quality remain elevated depending on the progress of the war, despite relatively improved operating environment conditions in 1Q23. Fitch see risks of further increases in impaired loans due to the protracted war, particularly from potential migration of its very high stage 2 loans, but the less severe operating conditions, if sustained, may dampen the extent of this deterioration. High Capital Encumbrance: Ukrgasbank's core and total capital ratios improved to 13.3% and 10.6% at end-1Q23 (2022: 11.2% and 8.7%) on the back of strong profits posted in 1Q23. The capital metrics should be viewed in light of zero risk-weights on LC sovereign bonds in the risk-weighted assets. The bank's tangible common equity/tangible assets ratio was 5.5% at end-1Q23, demonstrating weak core capitalisation. The capital is almost wholly encumbered by unreserved non-performing loans, elevating the risk of failure due to insolvency. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Fitch would downgrade Ukrgasbank's IDRs and debt ratings in the event of a sovereign LTLC IDR downgrade or if Fitch perceive an increased likelihood that the bank would default on or seek a restructure of its senior obligations. A downgrade of the sovereign LTFC IDR due to a debt restructuring that excluded Ukrainian banks' FC obligations would not affect Ukrgasbank's LTFC IDR. A marked further deterioration in asset quality that substantially erodes the bank's loss absorption buffers would lead to a VR downgrade. The VR would be downgraded to 'f', indicating the bank has failed, if this results in a capital shortfall and necessitates regulatory capital forbearance. A sovereign downgrade would also likely lead to a VR downgrade. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Fitch believes positive rating action on the IDRs and debt ratings is unlikely in the near term. However, the ratings could be upgraded in the event the sovereign IDRs were upgraded. An upgrade of the VR would likely require an upgrade of the sovereign LTFC IDR, a considerable improvement in the operating environment, significantly smaller than expected loan losses and lower capital encumbrance by unreserved impaired loans, leading to lower solvency risk. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Ukrgasbank's Short-Term IDRs of 'C' are in line with Fitch's rating correspondence table. The affirmation of Ukrgasbank's National Long-Term Rating at 'AA(ukr)' reflects the bank's unchanged creditworthiness in LC relative to other Ukrainian issuers. The downgrade of the GSR to 'ns' reflects Fitch belief that in the event the bank was to breach its minimum capital requirements, recapitalisation would be unlikely in the near term. Instead Fitch believe the bank would rely on regulatory capital forbearance to continue to operate. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The Short-Term IDRs are sensitive to changes in the LTFC and LTLC IDRs. Change in Ukrgasbank's National Long-Term Rating would likely arise from a weakening/strengthening in its overall credit profile relative to other Ukrainian entities rated on the National Rating scale. The GSR could be upgraded if the sovereign rating was upgraded or Fitch believed it was likely that public finances would be used to recapitalise state-owned banks, if needed. VR ADJUSTMENTS The operating environment score of 'ccc-' is below the 'b' category implied score due to the following adjustment reason: sovereign rating (negative). The business profile score of 'ccc-' is below the 'b' category implied score due to the following adjustment reason: business model (negative). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. 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. =========================== U N I T E D K I N G D O M =========================== BRADLEYS OF GRIMSBY: CRG Insolvency Appointed as Administrator -------------------------------------------------------------- Bradleys of Grimsby Limited was placed in administration proceedings on June 22 and CRG Insolvency & Financial Recovery was appointed as administrator. The administrator may be reached at: Charles Ranby-Gorwood Mark Fletcher CRG INSOLVENCY & FINANCIAL RECOVERY Alexandra Dock Business Centre, Fisherman's Wharf Grimsby, North East Lincolnshire DN31 1UL Tel: 01472 250001 E-mail: enquiries@crginsolvency.co.uk Bradleys of Grimsby Limited operates a corner shop and post office. The company is located at 28 Dudley Street, Grimsby, North East Lincolnshire DN31 2AB. The case is pending before the High Court of Justice, Business and Property Courts in Leeds, Insolvency & Companies List (ChD), Court Number: CR-2023-LDS-000539. BRUNLEA PRINT: Leonard Curtis Appointed as Administrator -------------------------------------------------------- Brunlea Print Limited was placed in administration proceedings on June 22 and the firm of Leonard Curtis was appointed as administrator. The Administrator may be reached at: Mike Dillon Harry Knowles LEONARD CURTIS Riverside House, Irwell Street Manchester, M3 5EN Tel: 0161 831 9999 E-mail: recovery@leonardcurtis.co.uk mike.dillon@leonardcurtis.co.uk harry.knowles@leonardcurtis.co.uk Brunlea Print Limited provides printing services. The company's principal trading address is 10B2 Dean Court, Meadway, Padiham, Burnley, BB12 7NG. The administration case is pending before the High Court of Justice, Business and Propety Courts in Manchester - Company & Insolvency List (ChD), Court Number: CR-2023-MAN-000736. FEROX RESOURCING: Leonard Curtis Appointed as Administrator ----------------------------------------------------------- Ferox Resourcing Ltd was placed in administration proceedings on June 22 and the firm of Leonard Curtis has been named as administrator. The Administrator may be reached at: Katy McAndrew LEONARD CURTIS Riverside House, Irwell Street Manchester, M3 5EN Tel: 0161 831 9999 E-mail: recovery@leonardcurtis.co.uk katy.mcandrew@leonardcurtis.co.uk Ferox Resourcing Ltd, which does business as Ferox, is a retail construction recruiter. The Company's principal trading address is Unit 15 Navigation Court, Wakefield, WF2 7BJ The administration case is pending before the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number: CR-2023-MAN-000804. ILKE HOMES: Fate of New Nottinghamshire Homes in Limbo ------------------------------------------------------ Joshua Hartley at NottinghamshireLive reports that the fate of hundreds of new Nottinghamshire homes is in limbo after a housebuilder went into administration. According to NottinghamshireLive, Ilke Homes, which produced factory-built modular properties, was in the process of building 131 homes for housing association Jigsaw Homes Group at Rolleston Drive in Arnold, but this work abruptly halted after the company announced it was seeking a buyer on June 9. The Yorkshire-based housebuilder had also been chosen as Boots' partner to deliver 604 homes near to the health and wellbeing giant's Thane Road complex -- with the project only recently being approved by Nottingham City Council and Broxtowe Borough Council, NottinghamshireLive notes. Ilke Homes previously explained it was looking for a sale as "volatile macro-economic conditions and issues with the planning system" had complicated fundraising and housing delivery, but it will now be liquidated after it failed to find an investor, NottinghamshireLive relates. Ilke Homes, as it looked for new investment, warned its GBP1 billion order book was predominantly made up of affordable homes and that "much-needed housing" would not be delivered if it was not rescued, NottinghamshireLive states. Jigsaw Homes Group, which planned to be managing more than 100 of these properties when Ilke Homes finished and handed over the Rolleston Drive development in the future, said it was now considering its options, according to NottinghamshireLive. On Friday, June 30, joint administrators from consultant AlixPartners were appointed to Ilke Homes at the request of the company's directors, following its failed investment search, NottinghamshireLive recounts. With significant incremental investment the business returned to growth following the Covid pandemic, but then faced the challenges of unprecedented inflation and a lack of land supply linked to planning processes, the administrators explained, NottinghamshireLive relays. The company's manufacturing facility in North Yorkshire will close and all site activities will cease, NottinghamshireLive notes. According to NottinghamshireLive, the administrators said the "difficult decision" also means the significant majority of 1,150 staff will be made redundant, with a small number being retained to assist in winding up the company. ILKE HOMES: More Than 80 Former Workers to Take Legal Action ------------------------------------------------------------ Catherine Moore at Construction News reports that more than 80 of the former Ilke Homes employees who lost their jobs when the business collapsed last week are taking legal action over the way the redundancy process was managed. According to Construction News, administrators for the business said the "significant majority" of the firm's 1,100 staff, would be made redundant with immediate effect, while a small number had been retained to assist with the winding-up process. Employment law experts at Aticus Law said the firm was in the early stages of investigating former staff's concerns around how the redundancy process was managed, Construction News relates. Aticus Law has been instructed by more than 80 people to determine whether ex-employees are eligible to make a Protective Award claim against the company, Construction News discloses. The law firm, as cited by Construction News, said that if its clients were successful in their claims, they could receive up to eight weeks' worth of pay in compensation, with a cap of GBP571 per week. The staff involved say they were sent home around two weeks ago with pay but were made aware that the company was in trouble and that it was looking for a new investor, Construction News notes. Last week, they were called to a meeting during which they were advised that they were being let go, Construction News recounts. According to Construction News, Aticus Law representative Edward Judge said: "Sadly, the current economic climate and increase in the day-to-day running costs of a business means that the headlines are constantly dominated by companies going into administration. "The consequences of that are that many people find themselves unemployed with little more than a moment's notice, and inevitably deeply concerned about how they will pay their own bills and care for their families. "Further to the collapse of Ilke Homes, we have been instructed by more than 80 former employees who have lost their jobs and who are now looking to pursue a Protective Award against the company. "While there are reports to suggest that the business will be bought out of administration, this does not prevent people who have already been made redundant from pursuing a claim even if they are offered their jobs back in due course. "Of course, for many of our clients that would be the ideal outcome, but the Protective Award is claimed because the redundancy process was not followed correctly, which of course has a short-term impact on a person's financial wellbeing." JPA TRANSPORT: Leonard Curtis Named as Administrator ---------------------------------------------------- JPA Transport Services Ltd was placed in administration proceedings on June 8 and the firm of Leonard Curtis has been named as administrators. The administrators may be reached at: Mike Dillon Rochelle Schofield Nicola Carlton LEONARD CURTIS Riverside House Irwell Street, Manchester M3 5EN Tel: 0161 831 9999 E-mail: recovery@leonardcurtis.co.uk rochelle.schofield@leonardcurtis.co.uk nicola.carlton@leonardcurtis.co.uk JPA Transport Services Ltd provides freight transport services. It is located at Newton Road, Lowton, Warrington, WA3 1EW. The administration case is pending before the High Court of Justice, Business and Property Courts in Manchester - Company & Insolvency List (ChD), Court Number: CR-2023-MAN-000700. JR & AL SMITH: Begbies Traynor Appointed as Administrator --------------------------------------------------------- Jr & Al Smith Limited was placed in administration proceedings on June 20 and Begbies Traynor (Central) LLP, was appointed as administrator: David Oprey BEGBIES TRAYNOR (CENTRAL) LLP 2/3 Pavilion Buildings Brighton, East Sussex BN1 1EE E-mail: david.oprey@btguk.com - and - Gary Paul Shankland Ayomide Bada BEGBIES TRAYNOR (LONDON) LLP 31st Floor, 40 Bank Street London, E14 5NR Tel: 020 7298 8303 E-mail: ayomide.bada@btguk.com gary.shankland@btguk.com The nature of Jr & Al Smith Limited's business is "dispensing chemist in specialized stores." It is located at 120 Withycombe Village Road, Exmouth, Devon EX8 3AN. The administration case is pending before the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies list (ChD), Court Number: CR-2023-003219. MJW LAW LTD: Leonard Curtis Appointed as Administrator ------------------------------------------------------ MJW Law LTD was placed in administration proceedings on June 22 and the firm of Leonard Curtis has been appointed as administrator. The administrator may be reached at: Hilary Pascoe Mike Dillon Sidhra Qadoos LEONARD CURTIS Riverside House Irwell Street, Manchester M3 5EN Tel: 0161 831 9999 E-mail: recovery@leonardcurtis.co.uk hilary.pascoe@leonardcurtis.co.uk sidhra.qadoos@leonardcurtis.co.uk MJW Law LTD specializes in cycling accident claims housing disrepair claim; sports law; business interruption claims; personal injury claims; clinical negligence; employers liability claims; road traffic accident claim; credit hire claims; professional negligence claims; contract disputes; civil litigators; and debt recovery claims. The firm is located at Charter House, Woodlands Road, Altrincham, WA14 1HF. The administration case is pending before the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number: CR-2023-MAN-000681. ROMA LEATHER: RSM Restructuring Appointed as Administrator ---------------------------------------------------------- Roma Leather Limited was placed in administration proceedings on June 26 and RSM Restructuring Advisory LLP was appointed as administrator. The administrator may be reached at: Tom Straw RSM RESTRUCTURING ADVISORY LLP 25 Farringdon Street London, EC4A 4AB Tel: 0203 201 8000 E-mail: tom.straw@rsm.global - and - Richard Voice Christopher Lewis RSM RESTRUCTURING ADVISORY LLP 10th Floor, 103 Colmore Row Birmingham, B3 3AG Tel: 0121 214 3100 E-mail: richard.voice@rsm.global christopher.lewis@rsm.global Roma Leather Limited is a clothes retailer. It is located at The Old Wood Yard, High Street, Naseby, Northampton, NN6 6DD. The administration case is pending before the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List, Court Number: CR-2023-LDS-000535. SILVAN SELECT LIMITED: Ballard & Mercian Named Administrators ------------------------------------------------------------- Silvan Select Limited was placed in administration proceedings on June 28 and these firms were named as administrators: Philip Ballard BALLARD BUSINESS RECOVERY LIMITED 21a Bore Street Lichfield, Staffordshire WS13 6LZ E-mail: Office@ballardbusinessrecovery.co.uk phil@ballardbusinessrecovery.co.uk - and - Craig Andrew Ridgley MERCIAN ADVISORY LIMITED Business Innovation Centre Harry Weston Road Coventry, CV3 2TX E-mail: office@mercianadvisory.co.uk Silvan Select Limited does business as Silvan and Silvan Floors. It manufactures wood flooring. The company's principal trading address is Thurlaston Sawmill, Enderby Road, Thurlaston, Leicester, LE9 7TF. The administration case is pending before the High Court of Justice, Court Number: CR-2023-000351 SLACK & PARR: Enters Administration, Buyer Sought for Business -------------------------------------------------------------- Business Sale reports that administrators will seek a buyer for the business and assets of pump manufacturer Slack & Parr following the company's collapse. The company is a specialist pump manufacturer, supplying gear metering pumps, industrial dosing pumps and rotary hydraulic flow dividers both across the UK and worldwide. The firm was incorporated in 1917 and based in Kegworth, Leicestershire. Despite its longstanding business and prominent position in the UK market, the company encountered financial difficulties over recent years. The business suffered as a result of rising costs for energy, labour and raw materials, Business Sale discloses. Amid mounting cashflow challenges, the company's directors explored the options available to the business, ultimately taking the decision to appoint administrators, Business Sale notes. Interpath Advisory's Chris Pole and Howard Smith were appointed as joint administrators to Slack & Parr Limited and Slack & Parr (Investments) Limited on July 3 and will now trade the firm while exploring options for a sale of the businesses and assets, Business Sale relates. In its accounts for the year to March 30 2022, Slack & Parr Ltd reported turnover of GBP11.6 million, up from GBP7.5 million a year earlier, while cutting its pre-tax losses from GBP2.6 million to GBP1.5 million, Business Sale states. At the time, the company's fixed assets were valued at slightly over GBP7 million and current assets at close to GBP6.7 million, with net liabilities amounting to GBP6.3 million, according to Business Sale. THAMES WATER: GBP1-Bil. Cash Injection Not Enough, Ofwat Says ------------------------------------------------------------- Matt Oliver at The Telegraph reports that a GBP1 billion cash injection will not be enough to steady the ship at crisis-hit Thames Water, the industry regulator has warned. According to The Telegraph, Ofwat said the cash that Thames is currently seeking from investors is only expected to get the troubled company through to the end of March 2025, with further injections needed for a lasting turnaround beyond that. Other suppliers will also need to shore up their finances by raising cash, the watchdog said, The Telegraph notes. Thames, The Telegraph says, has been scrambling to secure GBP 1 billion of fresh equity from shareholders but was plunged into crisis last week by the surprise resignation of its chief executive, Sarah Bentley. David Black, chief executive of Ofwat, warned a House of Lords committee that the sums Thames is seeking to raise will not be enough in the long run, citing the need to "de-gear" the business -- jargon for bringing down its debts -- and improve its performance on issues such as leaks and sewage dumping, according to The Telegraph. He said that Thames is struggling to rasie the initial funds because investors are "concerned" about its turnaround plans, and told peers: "In terms of the total equity to raise, we would agree it's larger than that billion. "The billion we're talking about is getting them through the current financial period [up to March 2025]. "If we look to the future, they'll need to raise further equity to de-gear the business and further equity to address any remaining issues with their performance and their turnaround." Mr. Black, as cited by The Telegraph, said talks were ongoing with other suppliers whose debt levels have previously been a concern, such as Southern Water and Yorkshire Water, and that companies were raising more capital to fund an investment programme in the current years. The update came as Mr. Black, who has been a senior figure at the regulator since 2015, admitted that Ofwat should have acted sooner to stop water firms from loading themselves up with huge mountains of debt, The Telegraph notes. Since privatisation in the late 1980s, the industry has built up more than GBP60 billion in borrowings and paid out more than GBP70 billion in dividends, The Telegraph discloses. Thames, which supplies 15 million households in London and the South East, is the most heavily indebted of the suppliers, with debts of GBP14 billion -- about 80% of the total value of its business, The Telegraph relays, citing analysts. The company was bought in 2006 by a consortium led by private equity giant Macquarie, which was subsequently criticised for overseeing growth in debts at the company while GBP2.7 billion were paid out in dividends, The Telegraph recounts. Macquarie has since sold its stake, The Telegraph notes. THAMES WATER: S&P Puts 'BB+' Rating on Class B Debt on Watch Neg. ----------------------------------------------------------------- S&P Global Ratings placed its 'BBB' and 'BB+' issue ratings on Thames Water's class A and class B debt on CreditWatch with negative implications. The CreditWatch placement indicates that S&P's could lower the ratings by one notch in the absence of sufficient clarity on the management transition and timing of additional equity support from shareholders. The resignation of Thames Water's CEO and the ensuing management transition could hinder the company's efforts to address its operational performance via its eight-year transformation plan. Additional equity injections from shareholders totaling GBP1 billion -- critical to fund the transformation plan and included in our base case -- are conditional upon continuing operational improvements, and their exact timing remains unknown. S&P said, "We believe Thames Water's CEO's unexpected resignation with immediate effect increases risks to the implementation of the company's transformation plan, amid uncertainty regarding the timing of additional shareholder injections. The CEO's resignation comes in the second year of the company's eight-year transformation plan. CFO, Alastair Cochran, as well as Strategy and Regulatory Affairs Director and previous Ofwat CEO, Cathryn Ross, will act as interim co-CEOs until the company formally appoints a replacement, providing a degree of continuity. Even then, we believe implementation risks to tackle long-standing operational issues have increased following the CEO's sudden departure, which comes before the company submits its business plan for the next regulatory period in October 2023. The company's shareholders have previously indicated support for equity injections totaling GBP1.5 billion by the end of the current regulatory period, ending March 2025, toward financing the turnaround. So far, GBP500 million of this has been received, with the remaining amount conditional on ongoing operational improvements and the company's submission of its business plan for the next regulatory period. The exact timing of additional injections is unknown. We understand that more information could be provided with the year-end results to be published in July. The absence of this support--which we include in our base case--would further pressure Thames Water's financial metrics. Financial headroom is limited, and we project key metrics will remain below thresholds commensurate with the ratings for another year. We estimate the class A's funds from operations (FFO) to debt ratio will average 4.3% for the years ended March 31, 2023, 2024, and 2025, compared with our 5% downside threshold, and debt to EBITDA will average 10.5x over that period compared with our 11x downside threshold for the current rating. We view liquidity as adequate, as defined by our criteria, with sources covering uses by 1.47x over the next 12 months. "The company, along with the rest of the U.K. water sector, faces headwinds from a sharp rise in operating and financing costs. We anticipate significantly higher investment needs for the sector in the next regulatory period, starting April 2025, to deliver improvements--notably in environmental quality--amid intense public, political, and regulatory scrutiny. These will coincide with a greater regulatory focus on financial resilience, potentially requiring lower overall leverage. We therefore envisage that additional shareholder support will remain critical for Thames Water beyond the current rating horizon. Thames Water is the most indebted water company we rate, with S&P Global Ratings-adjusted debt of GBP13.7 billion as of March 31, 2022, translating into 80.6% of its regulated capital value (RCV). "The negative CreditWatch placement indicates that we could lower the issue ratings by one notch within the next three to six months if we do not gain clarity on additional equity support from shareholders or on progress on the company's eight-year turnaround plan. Depending on the risks we see with the implementation of the transformation plan, we could revise our assessment of the company's business risk profile to strong from excellent. "We could lower our ratings on the debt issued by Thames Water if we do not believe equity support is forthcoming, if there are signs that the turnaround plan is not making sufficient progress, or if the company's results for fiscal year 2023 are much weaker than we currently expect. "We could affirm the issue ratings and remove them from CreditWatch when we gain sufficient clarity on the turnaround plan and a firm timeline for the additional equity injections committed to the regulator." ESG credit indicators: To E-3, S-3, G-3; From E-3, S-3, G-2 Environmental and governance factors are moderately negative considerations in S&P's credit rating analysis of Thames Water, whose operating performance is below the sector average in certain areas, such as supply interruptions. The large turnover in senior management in recent years leaves uncertainty regarding a continuous and effective strategy for the company. The recently departed CEO had only been at the company since September 2020, while the new co-CEOs Al Cochrane and Cathryn Ross joined the company in September and June 2021, respectively. Improving operating performance is a key priority for the company, which is in the midst of an eight-year transformation plan. Although improvements have been visible in some areas, Thames Water is still failing to meet certain key targets. Social factors are a moderately negative consideration. As one of the U.K.'s largest water and wastewater network operators, Thames Water provides a key service with a significant social impact. This exposes the company to additional scrutiny from regulators and the government to ensure not only high quality and reliability, but also affordable costs for customers. This scrutiny is evident from the latest price review in April 2020. Environmental, social, and governance (ESG) credit factors for this change in credit rating/outlook and/or CreditWatch status: -- Other governance factors ********* 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. 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