/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/230811.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 Friday, August 11, 2023, Vol. 24, No. 161 Headlines A U S T R I A ADDIKO BANK: Moody's Withdraws 'Ba3' Deposit Ratings I R E L A N D AQUEDUCT EUROPEAN 2-2017: Moody's Ups Rating on Cl. E Notes to Ba1 BRIDGEPOINT CLO V: S&P Assigns Prelim 'BB-(sf)' Rating to E Notes CIMPRESS PLC: Moody's Affirms B2 CFR & Alters Outlook to Positive N E T H E R L A N D S MONG DUONG: Fitch Affirms 'BB' Rating on $679MM Sr. Secured Notes SAMVARDHANA MOTHERSON: Fitch Affirms 'BB' IDR, Outlook Stable U N I T E D K I N G D O M COGENHOE MILL: Anthony White Submits GBP2MM Bid for Holiday Park IRELAND TOPCO: S&P Alters Outlook to Negative, Affirms 'B-' ICR PORT DINORWIC: Creditors Face GBP1.5-Mil. Shortfall SUSTAINABLE MARINE: Goes Into Administration TELEGRAPH MEDIA: National World Declares Interest in Takeover WILKO LTD: Enters Administration After Rescue Efforts Fail X X X X X X X X [*] BOOK REVIEW: Transcontinental Railway Strategy - - - - - ============= A U S T R I A ============= ADDIKO BANK: Moody's Withdraws 'Ba3' Deposit Ratings ---------------------------------------------------- Moody's Investors Service withdrew Addiko Bank AG's Ba3/NP long- and short-term deposit ratings, its Ba2/NP long- and short-term Counterparty Risk Ratings, its Ba1(cr)/NP(cr) long- and short-term Counterparty Risk Assessment, its ba2 Baseline Credit Assessment (BCA), and its ba2 Adjusted BCA. Prior to the withdrawal, the outlook on the long-term deposit ratings was positive. RATINGS RATIONALE Moody's has decided to withdraw the ratings for its own business reasons. Addiko is a Vienna-based bank which specialises in standardized unsecured consumer and SME lending in Central and South Eastern Europe (CSEE) countries like Croatia, Slovenia, Bosnia and Herzegovina, Serbia, and Montenegro. Addiko is the parent bank and consolidates six bank subsidiaries in these CSEE countries. The group of banks serves around 0.8 million clients through a network of around 155 branches and digital banking channels, and is predominantly deposit funded. As of the end of March 2023, Addiko reported consolidated assets of EUR5.9 billion. ============= I R E L A N D ============= AQUEDUCT EUROPEAN 2-2017: Moody's Ups Rating on Cl. E Notes to Ba1 ------------------------------------------------------------------ Moody's Investors Service has upgraded the ratings on the following notes issued by Aqueduct European CLO 2-2017 Designated Activity Company: EUR21,200,000 Class C Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Aa1 (sf); previously on Mar 30, 2022 Upgraded to Aa3 (sf) EUR22,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to A2 (sf); previously on Mar 30, 2022 Upgraded to A3 (sf) EUR24,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Ba1 (sf); previously on Mar 30, 2022 Affirmed Ba2 (sf) Moody's has also affirmed the ratings on the following notes: EUR234,000,000 (current outstanding amount EUR130,179,624.95) Class A Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Mar 30, 2022 Affirmed Aaa (sf) EUR37,800,000 Class B-1 Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Mar 30, 2022 Upgraded to Aaa (sf) EUR20,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2030, Affirmed Aaa (sf); previously on Mar 30, 2022 Upgraded to Aaa (sf) EUR12,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2030, Affirmed B1 (sf); previously on Mar 30, 2022 Upgraded to B1 (sf) Aqueduct European CLO 2-2017 Designated Activity Company, issued in December 2017, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by HPS Investment Partners CLO (UK) LLP. The transaction's reinvestment period ended in January 2022. RATINGS RATIONALE The rating upgrades on the Class C, Class D and Class E notes are primarily a result of the deleveraging of the Class A notes following amortisation of the underlying portfolio since the last review in November 2022. The affirmations on the ratings on the Class A, Class B-1, Class B-2 and Class F Notes are primarily a result of the expected losses on the notes remaining consistent with their current ratings after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralization (OC) levels. The Class A notes have paid down by approximately EUR68.2 million (29.14%) since the last review in November 2022 and EUR103.8 million (44.37%) since closing. As a result of the deleveraging, over-collateralisation (OC) has increased. According to the trustee report dated July 2023 [1] the Class A/B, Class C, Class D and Class E OC ratios are reported at 147.60%, 134.21%, 122.67% and 112.15% compared to October 2022 [2] levels of 139.69%, 129.43%, 120.27% and 111.64%, respectively. Moody's notes that the July 2023 principal payments are not reflected in the reported OC ratios. 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: EUR 289.16m Diversity Score: 43 Weighted Average Rating Factor (WARF): 2937 Weighted Average Life (WAL): 3.2 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.48% Weighted Average Coupon (WAC): 5.88% Weighted Average Recovery Rate (WARR): 45.68% The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into its cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2021. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank and swap provider, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance" published in June 2022. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. BRIDGEPOINT CLO V: S&P Assigns Prelim 'BB-(sf)' Rating to E Notes ----------------------------------------------------------------- S&P Global Ratings assigned preliminary credit ratings to Bridgepoint CLO V DAC's class A to F European cash flow CLO notes. At closing, the issuer will issue unrated subordinated notes. Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The portfolio's reinvestment period will end approximately four and a half years after closing. The preliminary ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior-secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The transaction's legal structure, which S&P expects to be bankruptcy remote. -- The transaction's counterparty risks, which S&P expects to be in line with its counterparty rating framework. Portfolio benchmarks CURRENT S&P Global Ratings' weighted-average rating factor 2,839.19 Default rate dispersion 422.82 Weighted-average life (years) 4.68 Obligor diversity measure 108.47 Industry diversity measure 20.21 Regional diversity measure 1.11 Transaction key metrics CURRENT Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 0.00 Covenanted 'AAA' weighted-average recovery (%) 35.17 Covenanted weighted-average spread (%) 4.25 Unique Features Delayed draw tranche The class F notes is a delayed draw tranche. It will be unfunded at closing and has a maximum notional amount of EUR14.0 million and a maximum spread of three/six-month Euro Interbank Offered Rate (EURIBOR) plus 10.00%. The class F notes can only be issued once and only during the reinvestment period. The issuer will use the proceeds received from the issuance of the class F notes to redeem the subordinated notes. Upon issuance, the class F notes' spread could be higher (in comparison with the issue date) subject to rating agency confirmation. For the purposes of S&P's analysis, it assumed the class F notes to be outstanding at closing. Rating rationale S&P said, "We understand that at closing the portfolio will be well-diversified, primarily comprising broadly syndicated speculative-grade senior-secured term loans and senior-secured bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR400 million target par amount, the covenanted weighted-average spread (4.25%), the covenanted weighted-average coupon (5.25%), and the covenanted weighted-average recovery rates for the 'AAA' rating level. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Under our structured finance sovereign risk criteria, we consider that the transaction's exposure to country risk is sufficiently mitigated at the assigned preliminary ratings. "At closing, we expect that the transaction's documented counterparty replacement and remedy mechanisms will adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "We expect the transaction's legal structure and framework to be bankruptcy remote, in line with our legal criteria. "Until the end of the reinvestment period on April 15, 2028, the collateral manager may substitute assets in the portfolio for so long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain as established by the initial cash flows for each rating, and it compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, as long as the initial ratings are maintained. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-1 to E notes could withstand stresses commensurate with higher ratings than those we have assigned. However, as the CLO will be in its reinvestment phase starting from closing, during which the transaction's credit risk profile could deteriorate, we have capped our assigned preliminary ratings on the notes. "The class F notes' current break-even default rate (BDR) cushion is a negative cushion at the current rating level. Nevertheless, based on the portfolio's actual characteristics and additional overlaying factors, including our long-term corporate default rates and recent economic outlook, we believe this class is able to sustain a steady-state scenario, in accordance with our criteria." S&P's analysis further reflects several factors, including: -- The class F notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- S&P's model-generated portfolio default risk, which is at the 'B-' rating level at 26.43% (for a portfolio with a weighted-average life of 4.68 years) versus 14.51% if it was to consider a long-term sustainable default rate of 3.1% for 4.68 years. -- Whether the tranche is vulnerable to nonpayment in the near future. -- If there is a one-in-two chance for this note to default. -- If S&P envisions this tranche to default in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F notes is commensurate with the assigned preliminary 'B- (sf)' rating. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that our assigned preliminary ratings are commensurate with the available credit enhancement for the class A, B-1, B-2, C, D, E, and F notes. "In addition to our standard analysis, to provide an indication of how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A to E notes based on four hypothetical scenarios. The results are shown in the chart below. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." The transaction securitizes a portfolio of primarily senior-secured leveraged loans and bonds, and is managed by Bridgepoint Credit Management Ltd. Environmental, social, and governance (ESG) credit factors S&P said, "We regard the exposure to ESG credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities, including, but not limited to the following: the production or trade of illegal drugs or narcotics; the development, production, maintenance of weapons of mass destruction, including biological and chemical weapons; manufacture or trade in pornographic materials; payday lending; and tobacco distribution or sale. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Ratings list CLASS PRELIM. PRELIM. INTEREST RATE CREDIT RATING* AMOUNT (%)§ ENHANCEMENT (%) (MIL. EUR) A AAA (sf) 248.00 3mE + 1.80 38.00 B-1 AA (sf) 27.30 3mE + 2.60 28.68 B-2 AA (sf) 10.00 6.60 28.68 C A (sf) 25.00 3mE + 3.55 22.43 D BBB- (sf) 27.20 3mE + 5.00 15.63 E BB- (sf) 19.00 3mE + 7.22 10.88 F† B- (sf) 14.00 3mE + 10.00 7.38 Sub NR 38.96 N/A N/A *The preliminary ratings assigned to the class A, B-1, and B-2 notes address timely interest and ultimate principal payments. The preliminary ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. †The class F notes is a delayed drawdown tranche, which is not issued at closing. 3mE--Three-month Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. CIMPRESS PLC: Moody's Affirms B2 CFR & Alters Outlook to Positive ----------------------------------------------------------------- Moody's Investors Service affirmed all credit ratings of Cimpress plc (Cimpress) and its subsidiary, Cimpress USA Incorporated, including Cimpress' B2 corporate family rating. The rating outlooks at Cimpress and Cimpress USA Incorporated were changed to positive from negative. The company's speculative grade liquidity (SGL) rating is unchanged at SGL-1 reflecting very good liquidity. The revision of the outlook to positive from negative reflects the strong and better-than-expected recovery in Cimpress' operating performance in fiscal 2023 and Moody's expectation of further improvement in free cash flow and leverage reduction. Moody's expects free cash flow to rebound to roughly $175 - $190 million in fiscal 2024 from $19 million in fiscal 2023, driven by at least 6% organic revenue growth, working capital improvements, exit from some unprofitable markets and an incremental $76 million in cost savings that have already been implemented. Moody's projects Debt/EBITDA (Moody's adjusted) to continue to improve to 4.5x by the end of fiscal 2024, down from 5.3x and 7x at the end of fiscal 2023 and 2022, respectively. Affirmations: Issuer: Cimpress plc Corporate Family Rating, Affirmed B2 Probability of Default Rating, Affirmed B2-PD Senior Secured First Lien Bank Credit Facility, Affirmed B1 Senior Unsecured Regular Bond/Debenture, Affirmed Caa1 Issuer: Cimpress USA Incorporated Senior Secured First Lien Bank Credit Facility, Affirmed B1 Outlook Actions: Issuer: Cimpress plc Outlook, Changed To Positive From Negative Issuer: Cimpress USA Incorporated Outlook, Changed To Positive From Negative RATINGS RATIONALE Cimpress' B2 CFR reflects the company's high though improving leverage, pronounced cash flow seasonality and pressure on demand for certain of Cimpress' print marketing and consumer products across several business lines. Over a longer time-horizon, there are risks of digital substitutions for certain key products. Cimpress generates its revenue from a large number of customized orders that are not contractually recurring and its earnings are vulnerable to business and consumer sentiment in a challenging macroeconomic environment. Nevertheless, the rating garners support from the company's entrenched position and well-known brand. It also factors in the company's very good liquidity, including lack of debt maturities through 2026 and Moody's expectation of improvement in free cash flow. The company's SGL-1 speculative grade liquidity rating reflects very good liquidity supported by a large cash balance and positive free cash flow. With about $173 million in cash and marketable securities, full availability on the $250 million revolver and projected free cash flow of around $170 - $190 million over the next 12 months, Cimpress has very good liquidity to cover an estimated $120 million in annual capex and $11.5 million in mandatory term loan amortization. Cimpress has a favorable debt maturity ladder with no funded debt coming due until June 2026 when the $600 million ($548 million outstanding at June 30, 2023) unsecured note comes due. The company's earnings and cash flows have historically been and Moody's expect will continue to be highly seasonal. Its second fiscal quarter (ending December 31) includes most of the holiday shopping season and accounts for a disproportionately high portion of its earnings for the fiscal year, primarily due to higher sales of home and family products such as holiday cards, calendars, photo books, and personalized gifts. Cimpress maintains a $250 million revolver due May 2026. The revolver has a springing maximum first lien net leverage ratio of 3.25x that is tested if there is any revolver drawing outstanding at the end of a quarter. Moody's does not expect Cimpress to rely on the revolver and expects the company to maintain at least a 20% cushion under the covenant requirement over the next 12 months. Cimpress' ESG credit impact score of CIS-4 indicates the rating is lower than it would have been if ESG risk exposures did not exist. Some of the company's key products are exposed to demand disruptions from consumer shift to digital services. The company's governance risks reflect its financial policies and concentrated ownership. Cimpress expects to reduce its net leverage to below 3.25x by the end of fiscal 2024 from 3.9x currently (based on company's definition, before Moody's adjustments) and maintain leverage similar to or below the pre-pandemic levels thereafter. The instrument level ratings reflect the probability of default of the company, as reflected in the B2-PD Probability of Default Rating, an average expected family recovery rate of 50% at default given the mix of secured and unsecured debt in the capital structure, and the particular instruments' ranking in the capital structure. The company's senior secured credit facility (revolver, USD and Euro term loans) is rated B1, one notch above the CFR, reflecting its senior ranking with respect to the $600 million senior unsecured note, which is rated Caa1. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company sustains steady organic EBITDA growth in the mid-single digit range, Debt/EBITDA is sustained below 5x (Moody's adjusted), and the company maintains very good liquidity. A downgrade could result if operating performance deteriorates such that Debt/EBITDA is expected to remain at 6x or above, or FCF/Debt is expected to remain in the low-single digit percent range or below, or if liquidity deteriorates. Headquartered in Dundalk, Ireland, Cimpress plc is a provider of customized marketing products and services to small businesses and consumers worldwide, largely comprised of printed and other physical products. Revenue for the fiscal year ended June 2023 was approximately $3.1 billion. The principal methodology used in these ratings was Media published in June 2021. ===================== N E T H E R L A N D S ===================== MONG DUONG: Fitch Affirms 'BB' Rating on $679MM Sr. Secured Notes ----------------------------------------------------------------- Fitch Ratings has affirmed the 'BB' rating on the USD679 million 5.125% senior secured notes due 2029 issued by Mong Duong Finance Holdings B.V., a Netherlands-domiciled SPV. The Outlook is Positive. The issuer acquired all of Vietnam-based AES Mong Duong Power Company Limited's (AES MD) outstanding project financing loans raised for the Mong Duong 2 (MD2) power plant. RATING RATIONALE The notes' rating remains capped by Vietnam's sovereign rating (BB/Positive) due to the government guarantee of state counterparty obligations. The credit profile benefits from a robust take-or-pay power purchase agreement (PPA) with state-owned Vietnam Electricity (EVN, BB/Positive) until 2040, a pass-through mechanism for fuel costs, the government guarantee covering obligations of Vietnamese state counterparties under the PPA and coal supply agreement, an experienced in-house operations and maintenance (O&M) team, strong financial profile, and a fully amortising debt structure that insulates the project against refinancing risk. KEY RATING DRIVERS Experienced In-House Operator: Operation Risk - Midrange MD2 employs conventional commercially proven technology and is operated by an experienced in-house team together with shareholders providing technical consulting services through technical services agreements with a stable track record. The actual availability has consistently been higher than the contracted level. The allowed outages energy is calculated annually, which allows it to compensate for a forced outage in one month with higher availability in the next month. The plant is also permitted to carry up to 160GWh of unused allowed outages energy from one year to another if it remains unutilised. Heat rates have improved after combustion issues were resolved and through the use of better quality of coal, aided by an enhanced operating system and operational efficiency improvements such as reductions in load change times. Nevertheless, the cost-plus nature of the O&M and limited technical advisor input in the rating process expose the project to a certain level of cost uncertainty, constraining Fitch operation risk assessment to 'Midrange'. Fuel Supply Risk Passed Through: Supply Risk - Midrange MD2 benefits from a 25-year coal-supply agreement with Vinacomin, at a regulated coal price not exceeding that charged to other EVN power plants. These performance obligations and financial commitments are further backed by a government guarantee covering the whole debt tenor. The build-operate-transfer (BOT) contract further insulates the project against the risk of coal supply interruptions. MD2 also reserves the right to buy coal from an alternative source, while Vinacomin is obligated to compensate for increases in cost, capped at 3% of the total payments receivable by Vinacomin from MD2 in respect of any contract year. Vinacomin has an abundant supply of fuel sources available near the project site, a large pipeline of projects and planned new coal mines to sustain the domestic coal supply. Robust Long-Term PPA: Revenue Risk - Stronger MD2's long-term PPA with EVN is until 2040. The tariff structure is designed to cover debt service, a certain return of equity, fixed O&M costs (regardless of electricity output), variable O&M costs and fuel reimbursement, with the latter subject to meeting contracted heat rate requirements. The take-or-pay mechanism effectively eliminates merchant power-price risk and underpins cash flow visibility. Inflation risk is further mitigated by indexation of O&M tariff components to the US and Vietnam CPI. Fitch views the cost pass-through from changes in environmental legislation or permits to EVN as standard and the termination provisions under the PPA as a stronger attribute. Fully Amortising, Non-Standard Structure - Debt Structure: Midrange The offshore SPV issued a four-year loan and 10-year senior secured fixed-rate notes to refinance the BOT loan of AES MD at a lower interest rate. The new debt, which has the same quantum and amortisation profile as the BOT loan, is serviced by BOT loan debt service payments. The four-year loan was fully repaid in May 2023. The security package of the original financing is available to the new lenders but indirectly, through the loan provided by the offshore SPV to AES MD. The new lenders will also benefit from a pledge of shares in the SPV and security over the SPV's assets. The transaction's structure is not standard as the offshore SPV and AES MD do not have a direct relationship, either through the shareholding of the offshore SPV or a guarantee from AES MD. The debt is fully amortising and ranks pari passu. The amortisation will be sequential among the two tranches. The debt is protected by covenants, including limitations on indebtedness, business activities and asset disposals. It further benefits from a backward-looking distribution lock-up at a 1.15x debt-service coverage ratio (DSCR) and six-month debt-service reserve in the form of a letter of credit. The maintenance reserve account will also be prefunded for a major overhaul capex over the next six years. PEER GROUP Fitch view the notes (BBB-/Stable) issued under Minejesa Capital BV and guaranteed by PT Paiton Energy as comparable. Paiton, in eastern Java, is the second-largest independent power producer in Indonesia with an installed capacity of 2,045MW for its three-unit power complex, of which one unit is using super-critical pulverised coal technology. Both projects are protected by take-or-pay long-term PPAs with fuel cost effectively passed through to off-takers and run by experienced in-house teams, while Paiton benefits from a longer operating history. Paiton's debt structure is more typical of project finance transactions. It has an average annual DSCR of 1.40x and a minimum of 1.22x under Fitch's rating case. MD2 also compares well against PT Lestari Banten Energi (LBE), which guaranteed the notes (BBB- /Stable) issued under LLPL Capital Pte. Ltd. LBE operates a 635MW super-critical coal-fired power plant in west Java. The project, like MD2, has a favourable long-term PPA with the state-owned electricity supplier to insulate it against merchant risk. LBE also benefits from input from US-based Black & Veatch, which allows Fitch to apply lower stress in the rating case. LBE's debt is fully amortising with a six-month debt-service reserve account and a distribution lockup at 1.20x DSCR, which is slightly stronger than that of MD2. LBE has an average profile annual DSCR of 1.35x and a minimum of 1.21x under Fitch's rating case. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade -- A downgrade of Vietnam's sovereign rating to 'BB-'. -- Operational difficulties or other developments that result in the projected annual DSCR dropping below 1.20x in Fitch's rating case. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Vietnam's sovereign rating to 'BB+' with no deterioration in the underlying credit profile. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure 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 three 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. CREDIT UPDATE MD2's overall sound operating performance spilled over into Contract Year 8 (April 22, 2022 to April 21, 2023) without any penalty imposed due to availability or reliability. The average net capacity factor improved to 71.5% in Contract Year 8, from 69% in the preceding contract year, despite the forced outage in 2H22. The outage, mainly caused by a boiler tube leak and combustion issue of Unit 1, induced vibration of Unit 1's draft fan and leakage of Unit 2's high-pressure heater, but the issues were examined and fixed immediately without further impact. Healthy cash flow led to a DSCR of 1.50x for the 12-month period ended March 2023, without any breach of debt covenants. A capex budget totalling USD12 million has been approved by management for FY24, with the majority of the amount to be allocated to continuous heat rate improvements. MD2 expects an improvement of 100 BTU/kWh for the duration of the equipment's overhaul cycle, albeit of a cyclic nature. The remainder of the capex will be used for improvements in reliability, enhancements to return equipment to full capacity, and additions or replacements with better or updated equipment. Insurance premiums actually paid in 2023 are around USD10.6 million, USD0.9 million higher than premiums actually paid in 2022, mainly due to inflation. The coverage and insurance providers are both largely unchanged from the previous year. AES Corporation announced on 4 January 2021 an agreement to sell its entire equity interest in AES MD2 and Mong Duong Finance Holdings B.V. to a consortium led by a US-based investor. However, the transaction was not closed by the long stop date of December 31, 2022 and was terminated by the parties. AES Corporation has declared that it will continue exiting AES MD2 and re-launch the sale process. FINANCIAL ANALYSIS Fitch focuses on average and minimum profile DSCRs to assess the resilience of the projected cash flow, given the fully amortising nature of the debt and definite term of the PPA. Fitch's base case largely follows management's forecast on key operating assumptions except the heat rate, which is projected to be 0.5% above the PPA's target. It also factors in Fitch's macroeconomic assumptions for the US and Vietnam CPIs and exchange rates. MD2's annual DSCR is averaged at 1.47x with a minimum DSCR of 1.43x (previously 1.48x and 1.43x) under Fitch's base case. Fitch's rating case further applies a combination of stresses on outage durations (1pp increase to annual forced outages duration and 10% stress to planned outage durations) and a heat rate that is 2% above the PPA's target and a 15% increase on the operating costs and capex, in accordance with Fitch's Thermal Power Projects Rating Criteria. This results in a revised average DSCR of 1.38x and minimum of 1.34x (previously 1.39x and 1.33x). 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. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The rating of MD2's notes is capped at Vietnam's Country Ceiling. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. SAMVARDHANA MOTHERSON: Fitch Affirms 'BB' IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Netherlands-based Samvardhana Motherson Automotive Systems Group BV's (SMRP BV) Long-Term Issuer Default Rating (IDR) at 'BB'. The Outlook is Stable. Fitch has also affirmed SMRP BV's senior secured bonds at 'BB+' with a Recovery Rating of 'RR2'. SMRP BV's rating is based on the consolidated profile of its stronger parent, Samvardhana Motherson International Limited (SAMIL), under Fitch Parent and Subsidiary Linkage Rating Criteria. Fitch think SAMIL has high strategic and operational incentives to provide support to its subsidiary. The affirmation reflects Fitch's view that SAMIL's financial leverage will remain within Fitch's negative rating sensitivity despite the acquisitions announced in 2023. Fitch think the acquisitions will further bolster SAMIL's market position and relationship with original equipment manufacturers (OEMs), and demonstrate SAMIL's selective approach despite a large growth target. The Stable Outlook reflects improvement in SAMIL's profitability after 1H of financial year ending March 2023 (FY23) from easing supply-chain constraints and cost pressures, and progress in cost pass-through negotiations with OEMs. Fitch think this should improve leverage headroom after FY24, barring any further significant acquisitions that Fitch do not include in Fitch rating case due to lack of visibility. KEY RATING DRIVERS Acquisitions Match Strategy: The acquisitions will add close to 30% of SAMIL's FY23 revenue and improve product diversification while maintaining geographic and customer diversification. SMRP BV's modules business will benefit from the enhanced product offerings, capabilities and customer proximity after acquisition of Germany's SAS Autosystemtechnik GmbH and the assets of Dr. Schneider Holding GmbH. The acquisition of a controlling stake in Yachiyo Industry Co., Ltd. - a Honda Motor Co., Ltd (A/Stable) subsidiary supplying sunroofs and fuel tanks - will improve product diversification and broaden SMRP BV's OEM relationships outside Europe. SAMIL's adequate acquisition record mitigates integration risks, in Fitch view. Prudent Approach to Acquisition Funding: Fitch believe SAMIL's acquisition strategy, which includes identifying attractively priced targets that are strategically suitable and adherence to prudent funding practices, mitigates risks from its aim of raising revenue by more than 3x to USD36 billion by 2025. Still, any large debt-funded acquisition may put pressure on SMRP BV's rating. Moderate Leverage Headroom: Fitch expect SAMIL's EBITDA net leverage to remain at 2.7x in FY24 and 2.5x in FY25 (FY23: 2.6x), underscoring a moderate headroom relative to 3.0x threshold for negative rating action. Fitch include the full year pro forma contribution from the acquired businesses and exclude any cost synergies or cross-selling uplift in Fitch rating case. SAMIL's EBITDA in 2HFY23 stood 56% higher than in 1HFY23 amid higher volumes and progress in cost negotiations with OEMs. Fitch expect easing production constraints and normalising costs to support margins despite inflationary pressure on demand. Fitch expect neutral to marginally positive free cash generation consistent with Fitch expectation of higher capex after FY23. Rating Based on Consolidated Profile: Fitch deem that SMRP BV has a weaker credit profile than SAMIL, which owns a 100% stake in SMRP BV after the corporate structure was simplified in early 2022. SMRP BV's large financial contribution underpins the parent's high strategic incentive to support its subsidiary, which is reflected in regular financial support. Integrated management and decision-making drive the high operational incentive to provide support, despite limited operational dependency. Fitch assess SAMIL's legal incentive to support SMRP BV as 'Medium'. Secured Notes Rated Above IDR: SMRP BV's EUR100 million notes due 2025 are secured against assets and equity pledges at its key subsidiaries, while its EUR300 million notes due 2024 remain secured against equity pledges in key subsidiaries after the release of security over hard assets under the fall-away security structure, as defined in the note documentation. The collateral of both note issues qualifies as Category 2 First Lien, as defined in Fitch's Corporates Recovery Ratings and Instrument Ratings Criteria, supporting a Recovery Rating of 'RR2' and a one-notch uplift from SMRP BV's IDR. Customer Relationships Underpin Leadership: SAMIL's product quality and wide range of services underpin its long-term relationships with top global OEMs, evident from SMRP BV's EUR19.7 billion order book in March 2023. This mitigates risks from competition and weak negotiating power against large OEMs on pricing and cost pass-through. SMRP BV is one of the leading global suppliers of exterior mirrors, bumpers, dashboards and door panels for premium cars, while SAMIL leads in wiring harnesses for cars in India through a 33.4% joint venture in India and commercial vehicles in key markets globally. Diversification Mitigates Risks: SAMIL's business diversification across product components, OEM customers and geography mitigate the variations arising from the cyclical and competitive automotive industry. A large number of vehicle programmes within an OEM further enhances diversification. Improving diversification is core to the group's growth strategy, evident from reduced revenue dependence on its largest customer, Volkswagen AG (A-/Stable), to around 25% in FY23, from 44% in FY15, and top region, Europe, to 39%, from more than 50%. DERIVATION SUMMARY SAMIL's scale, leading market position in its product categories and business diversification position it well against peers, such as Metalsa S.A.P.I. de C.V. (BBB-/Stable) and Dana Incorporated (BB+/Negative). SAMIL has larger scale and greater business diversification in terms of customers, geography and products than Metalsa. However, Metalsa benefits from its position as an important supplier of chassis structures to pickup-truck platforms and SUVs, which Fitch expect to remain as large contributors to the cash flow of Metalsa's customers. This, together with the strength of Metalsa's financial profile, justifies SMRP BV being rated two notches lower. SAMIL and Dana have similar scale and business diversification. Still, Dana is rated one notch higher due to its stronger profitability and lower leverage after 2022. SAMIL has a smaller scale than Faurecia S.E. (BB+/Negative), particularly after Faurecia's acquisition of Hella GmbH & Co. KGaA. However, SAMIL's business diversification remains comparable. SMRP BV's one-notch lower rating also reflects Faurecia's stronger profitability. SMRP BV is rated one notch lower than Tupy S.A. (BB+/Stable), reflecting Tupy's lower leverage and higher profitability, underpinned by its leading market position in high-value-added cast-iron structural components. These factors counterbalance Tupy's smaller scale and lower diversification than SAMIL. KEY ASSUMPTIONS Fitch's Key assumptions within Fitch Rating case for the Issuer: -- SAMIL's consolidated revenue to rise by 30% in FY24 and 8% in FY25 after considering full-year contribution from the announced acquisitions and growth in global auto sales volume; -- EBITDA margin to improve to around 8% over FY24 and FY25 (FY23: 7.2%); -- Annual capex to average around 4% of sales over FY24 and FY25 (FY23: 2.8%); -- Dividend payout to remain below 40% of net income over the next few years. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- SAMIL improving its consolidated EBITDA net leverage, after Fitch's adjustment for factoring, to below 2.0x on a sustained basis; -- SAMIL's free cash flow (FCF) margin remaining broadly neutral to positive on a sustained basis; -- SAMIL maintaining or improving its business diversification. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- SAMIL's consolidated EBITDA net leverage, after Fitch's adjustment for factoring, remaining above 3.0x for a sustained period. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate 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. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: SAMIL's consolidated readily available cash of INR31.2 billion as of FYE23 and undrawn portion of INR29.7 billion under SMRP BV's EUR375 million revolving credit facility sufficiently covered INR33.3 billion in near-term maturities of long-term debt, including INR26.3 billion in domestic bonds due in 1HFY24. SAMIL also had INR22.1 billion of short-term working capital debt, which Fitch expect the company to roll over in the normal course of business. SAMIL has signed new credit facilities to fund the purchase consideration of recently completed acquisitions, including SAS. SAMIL's annual debt maturities will stand at INR35.3 billion in FY25 and INR21.5 billion in FY26. FY25 maturities include EUR300 million senior secured notes due in July 2024 and INR4.9 billion in domestic bonds due in 2HFY25. Fitch expect neutral to marginally positive FCF after FY24, although SAMIL will have to refinance a significant portion of debt maturities. SAMIL's reasonable leverage should aid in refinancing and Fitch expect it to address these maturities well in advance, in line with its record. ISSUER PROFILE SMRP BV is a leading supplier of rear-view vision systems and interior and exterior modules to the global automotive industry. SUMMARY OF FINANCIAL ADJUSTMENTS Fitch treats INR15.7 billion in FY23 (equivalent to 2% of sales) as restricted cash for intra-year working-capital volatility. 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 The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. =========================== U N I T E D K I N G D O M =========================== COGENHOE MILL: Anthony White Submits GBP2MM Bid for Holiday Park ---------------------------------------------------------------- Logan MacLeod at Northampton Chronicle & Echo reports that a successful businessman has submitted a multi-million pound bid to buy a Northampton holiday park currently in financial turmoil. According to Chron and Echo, Holiday home tycoon Anthony White, who owns Riverview Holiday Park in Cogenhoe among other sites in the UK, says he placed a GBP2 million bid with administrators to buy Cogenhoe Mill holiday park. Cogenhoe Mill and Billing Aquadrome, owned by Royale Group, were placed into administration on July 6 and have since been place up for sale by the administrators, Grant Thornton LLP, Chron and Echo relates. Mr. White says he would like to buy just Cogenhoe Mill and not Billing Aquadrome, Chron and Echo discloses. However he says the administrators' GBP4 million valuation of Cogenhoe Mill is "ridiculous", Chron and Echo notes. Speaking to Chron and Echo, Mr. White, as cited by Chron and Echo, said: "I'm interested in buying Cogenhoe Mill but I was looking at buying it for GBP2 million because that's what it's worth. "They're advertising it for a guide price of GBP4 million. It's ridiculous. I've been in the business for 44 years, I know the value of the site. I think the value of it is GBP2 million. "It needs loads of money spent on it. It's very run down and it's flooded numerous times. You've got to take that into account when you're selling homes. They should be selling at a reduced price. "They've inflated the price due to 'speculation' that there is a possibility to add more homes on the site." IRELAND TOPCO: S&P Alters Outlook to Negative, Affirms 'B-' ICR --------------------------------------------------------------- S&P Global Ratings revised the outlook on Franklin Ireland Topco Ltd., Planet's parent, to negative from stable, and affirmed its 'B-' ratings on the group and its senior secured debt. The negative outlook on Planet reflects S&P's view that adjusted leverage might remain very high, and the group might not generate positive FOCF in 2024 if revenue and EBITDA growth falls behind our expectations, or if higher exceptional costs or working capital outflows reduce cash flow and constrain liquidity. The outlook revision to negative reflects Planet's persisting very high leverage and negative FOCF, alongside S&P's view that its liquidity could weaken in 2024 if recovery in earnings is delayed. Planet's operating performance, credit metrics, and cash flow generation have not picked up as strongly as S&P had anticipated. The weaker recovery than expected stems from the delayed pick-up in international travel to and from China, somewhat slower ramp-up in revenue from the payments segment, and increased integration and exceptional costs. Chinese tourism accounted for only 36% of pre-pandemic value of refund request in the first five months of 2023, mainly impacting the tax-free segment. S&P said, "We expect Planet will post stronger operating results in the second half of 2023, supported by strong bookings in the first half of the year, resulting in reported EBITDA growth of about 48%. We also think initiatives taken by the company, such as optimization and pricing actions, will support revenue growth. EBITDA will, however, be depressed by recurring high exceptionals and capitalization of development costs, estimated at a combined EUR60 million-EUR65 million. We therefore forecast the group's adjusted EBITDA will only reach EUR50 million, falling well below our previous expectations. The resulting leverage is a very high 12x-14x in 2023. Although we expect travel will recover further in 2024, especially to and from China, and strong commercial momentum in all verticals, products, and segments to boost growth in Planet's revenue and EBITDA, leverage is likely to remain above 6x. We assume adjusted EBITDA margin will improve in 2024 as exceptional costs reduce and the company achieves efficiency improvements and its target cost-savings of EUR20 million-EUR25 million per year. However, any setbacks in revenue growth--due to a sharper macroeconomic downturn that could impact discretionary spending and international travel activity, for example--could weigh on Planet's credit metrics. We also see a risk that higher costs, especially elevated exceptional costs to achieve efficiency improvements and cost-savings, could keep FOCF negative beyond 2023. This might further delay deleveraging and constrain Planet's capital structure." The EUR35 million liquidity injection from the sponsors in June shields Planet's cash levels and working capital needs ahead of the summer's strong trading. S&P said, "In our base case we expect Planet will maintain adequate liquidity over the next 12 months thanks to a EUR35 million cash injection from shareholders received in June 2023. The slower-than-anticipated performance in the first half of this year eroded cash flow and lifted leverage such that the headroom under the company's leverage covenant (tested at end-June 2023) would have been tight without the buffer from the cash injection. From the second half of 2023 and into 2024, we estimate Planet should have enough cash on balance." However, if trading or cash collection is delayed further, the company's cash flow and liquidity will weaken. Furthermore, the group's RCF is currently almost fully drawn, increasing the group's reliance on potential funding from the holding company or its private equity sponsors. S&P said, "We assume Planet will refinance its RCF and term loan well in advance of these maturities becoming current. Planet's EUR65 million RCF due December 2025 is currently almost fully drawn, and its EUR494 million term loan matures December 2026. We believe Planet will address these maturities well in advance and that its credit metrics may improve before there's a need for a refinancing transaction." For example, a return to positive FOCF might enable to group to partially prepay the RCF ahead of maturity. At the same time, underperforming our base case over the next 12-18 months or persistently volatile market conditions could make the refinancing process more challenging. Furthermore, higher interest costs would put pressure on cash flows after a refinancing. S&P said, "The group structure has no impact on our view of Planet's credit quality. Planet's shareholders, private equity firms Advent and Eurazeo, own the group through a holding company that also owns other operating assets in the software industry. We understand that two parts of the business continue operating independently, with separate management teams and financing. At the same time, we think the shareholders could support either part of the group through an equity injection via the holding company, as they already did this year. We view the combined group's credit quality as in line with that of Planet on a stand-alone basis, and therefore the group currently has no impact on our rating on Planet. "The negative outlook on Planet reflects our view that S&P Global Ratings-adjusted leverage might remain very high. We also consider that the group may not generate positive FOCF in 2024 if revenue and EBITDA growth falls behind our expectations, or if higher exceptional costs or working capital outflows reduce its cash flow and constrain liquidity. "We could lower the rating if Planet's operating performance and credit metrics recover softer than we expect, for example because of weaker recovery in tax refund volumes and further delays in payment deals, or high exceptionals beyond 2023. This could keep FOCF negative and leverage very high, making its capital structure unsustainable. "We could also lower the rating if there was an increased likelihood of a default, for example due to liquidity pressure or a distressed exchange. "We could revise the outlook to stable if Planet's operating performance, liquidity, and cash flows improve in line with our base case and the company generates positive FOCF." PORT DINORWIC: Creditors Face GBP1.5-Mil. Shortfall --------------------------------------------------- Lauren Phillip at BusinessLive reports that creditors of a north Wales in-administration marina are facing a shortfall of GBP1.5 million, joint administrators have confirmed. Port Dinorwic Marina in Y Felinheli, which is part of the Marine and Property Group (MPG), entered administration in June and is now up for sale, BusinessLive relates. Simon Monks, Nicola Clark, and Colin Haig, of accountancy firm Azets, were appointed joint administrators of Port Dinorwic Marina, which continues to trade until a potential buyer is found, BusinessLive discloses. The marina has experienced financial difficulties in recent months and is one of a number of subsidiary firms under the holding company currently in administration, alongside Cardiff Marine Services, Aberystwyth Marina, and Burry Port Marina, BusinessLive states. Bayscape Limited, which manages a block of luxury apartments next to Cardiff marina and is owned by the director of MPG Chris Odling-Smee, was put into receivership in May. MPG itself was the first to go into administration in April, while its separate subsidiary businesses continued to trade, BusinessLive notes. Now, the joint administrators for Port Dinorwic Marina have published a report via Companies House, showing that it owes around GBP2.7 million to secured creditor Shawbrook Bank -- which put the business into administration, BusinessLive discloses. The report estimates that Port Dinorwic owes GBP1.5 million to creditors, including GBP286,955 owed to HMRC and GBP868,301 to a number of unsecured creditors, BusinessLive states. The business's main asset is its freehold interest in the marina, occupying a 9.16 acre site, which it acquired at a cost of GBP2.2 million in 2019. The total valuation of all fixed assets at Port Dinorwic are estimated at GBP2.6 million, according to BusinessLive. If the site is sold for valuation, then Shawbrook Bank, as the primary secured creditor, could get most of its money back, BusinessLive states. However, other creditors are looking at a GBP1.5 million shortfall, BusinessLive notes. The administrators are hopeful a sale of the business can be completed by the end of the year, with Shawbrook Bank agreeing to provide GBP35,000 in short-term funding to address trading cash flow issues, pay staff wage arrears, and carry out remedial work while a potential buyer is found, BusinessLive discloses. A recently-launched community enterprise, Menter Felinheli, has already expressed an interest in buying the marina, BusinessLive relays. Concerns over MPG's financial situation have been ongoing amid reports of staff not being paid in full or on time. Earlier this year, Mr. Odling-Smee spoke of plans to raise GBP35 million from a new corporate bond to address cash flow issues in the business, BusinessLive discloses. He later told BusinessLive that the administration of MPG was a protective measure to support its refinancing plans which had been delayed, adding that he was assisting the administration process in the hope of raising said corporate bond to exit the insolvency process. However, the joint administrators' report now confirms that the bond failed to materialise ahead of a winding-up hearing by HMRC against one of the group's subsidiaries, Cardiff Marine Services, BusinessLive notes. The joint administrators said they plan to continue trading Burry Port Marina until a suitable buyer or other solution is found, with Mr. Odling-Smee identified as one potential acquirer of Burry Port, according to BusinessLive. SUSTAINABLE MARINE: Goes Into Administration -------------------------------------------- Scott Wright at The Herald reports that a Scottish renewables company which developed tidal energy systems has fallen into administration. Edinburgh-based Sustainable Marine Energy, which was founded in 2012, sought to deliver clean, reliable, and predictable tidal energy, mainly for island and coastal communities. However, its finances have been impacted by events at its subsidiary in Canada, The Herald states. The subsidiary was placed into an insolvency process due to permitting issues with Fisheries and Oceans Canada (DFO), resulting in the suspension of its operations in Canada, The Herald relates. According to The Herald, Edinburgh-based Sustainable Marine Energy has now also been placed into administration. Graeme Bain and Donald McNaught of Sottish accountancy firm Johnston Carmichael were appointed as joint administrators of the Scottish company on Wednesday, Aug. 9, The Herald discloses. Mr. Bain, as cited by The Herald, said: "SME has been a leading developer of tidal energy solutions for several years and had demonstrated the value of that development through the successful implementation of its innovative PLAT-I platform in Canada. "The difficult decision was made by the UK-based company to enter administration due to the impact caused by the recent insolvency of its Canadian subsidiary in May. "In conjunction with our energy, infrastructure and sustainability team of sector experts, an assessment of the potential future viability of the current Canadian project will be undertaken and, with the potential for the application of its technology in other parts of the world, interest will also be sought for the company's intellectual property in due course." A small number of jobs in the UK have been lost as a result of Sustainable Marine Energy ceasing to trade, The Herald notes. TELEGRAPH MEDIA: National World Declares Interest in Takeover ------------------------------------------------------------- Christopher Williams at The Telegraph reports that a veteran newspaper executive has become first to declare publicly an interest in a takeover of The Telegraph since Lloyds Banking Group seized control in June. National World, a local newspaper and news website publisher founded by David Montgomery, 74, who edited The News of the World in the late 1980s, told the stock market it was considering a bid, The Telegraph relates. According to The Telegraph, it said it "will consider participating in a sale process for Telegraph Media Group as and when such a process formally commences." The announcement was not required by City authorities and was described as a "tidying up exercise" by a source close to National World, The Telegraph notes. However, public confirmation could make conversations with potential financiers less legally complex by ensuring insider information is not shared, The Telegraph states. Lloyds took ownership of The Telegraph by appointing receivers from the specialist consultancy AlixPartners. The bank won court approval for the unusual action following a lengthy dispute over debts of more than GBP1 billion which had been secured against the publisher by the Barclay family, its owners since 2004, The Telegraph discloses. Goldman Sachs has been appointed to run an auction, expected to begin formally in September, according to The Telegraph. A bid would represent a bold attempt at expansion for Mr. Montgomery and National World, which is listed on London's junior Aim market and valued at GBP48 million, The Telegraph states. Estimates of The Telegraph's valuation vary significantly but begin at GBP200 million and run as high as GBP1 billion. At GBP39 million, its pre-tax profits last year were nearly eight times those of Mr. Montgomery's portfolio of local titles, at GBP5 million, The Telegraph discloses. National World, which at the end of last month had GBP22 million cash, made no reference to how it might finance a bid, The Telegraph notes. WILKO LTD: Enters Administration After Rescue Efforts Fail ---------------------------------------------------------- Business Sale reports that prominent high street garden and homeware retailer Wilko has entered administration after failing to secure a rescue deal. The company, which was founded in 1930 and employs around 12,500 staff at approximately 400 stores, filed notice of intention to appoint administrators last week, Business Sale relates. This gave the firm 10 days to secure a rescue deal, but it was unable to find a buyer in this time and, as a result, PwC have now been appointed as administrators, Business Sale states. PwC have said that the company's stores will remain open without any immediate job losses while it continues to seek a buyer for all or parts of the company, Business Sale notes. According to Business Sale, PwC's Jane Steer, Zelf Hussain and Edward Williams have been appointed as joint administrators to Wilko Ltd, Wilko.com Ltd and Wilkinson Hardware Stores Ltd. If buyers are not found for some or all of the companies in the group then store closures and redundancies are likely. Discussing the problems that the group has faced, joint administrator Edward Williams, as cited by Business Sale, said: "Wilko is a household name both nationally and in the Midlands, having been established in Leicester and with head offices in Worksop. High street retailers are facing a number of well-documented challenges and Wilko has been significantly impacted by the headwinds facing the industry including inflationary pressure and rising interest rates." Mr. Williams added: "As administrators, we will continue to engage with parties who may be interested in acquiring all or part of the companies. Stores will trade as normal and staff will continue to be paid while the company is in administration." In Wilko Ltd's accounts for the year to January 29 2022, it reported that it had faced "continued challenges" during the year, including COVID-19, "severe and widespread" supply chain disruption and resource shortages its distribution centres, leading to a decline in performance, Business Sale discloses. =============== X X X X X X X X =============== [*] BOOK REVIEW: Transcontinental Railway Strategy -------------------------------------------------- Transcontinental Railway Strategy, 1869-1893: A Study of Businessmen Author: Julius Grodinsky Publisher: Beard Books Softcover: 439 pages List Price: $34.95 Review by Gail Owens Hoelscher Order your personal copy at http://www.beardbooks.com/beardbooks/transcontinental_railway_strategy.html Railroads were pioneers of the American frontier. Union Pacific; Central Pacific; Kansas and Pacific; Chicago, Rock Island and Pacific; Chicago, Burlington and Quincy; Atchison, Topeka and Santa Fe: these names evoke boom times in America, the excitement and tumult of seemingly limitless growth and opportunity, frontiers to tame, fortunes to be made. Railroads opened up vast supplies of raw materials, agricultural products, metals, and lumber. The public gain was incalculable: job creation, low-cost transportation, acceleration of westward immigration, and settlement of the frontier. The building of the western railway system in the United States was described at the time as "one of the greatest industrial feats in the world's history." This book tells the story of the trailblazers of the Western railway industry, men with a stalwart willingness to take on extraordinary personal financial risk. As a group, these initial railroad promoters were smart, bold, tenacious, innovative, and fiercely competitive. Some were cautious with their and their investors' money, some reckless. Most met with financial setbacks, some with total failure, some time and time again. They often sold out at great losses, leaving their successors to derive the benefits later. Bitter competition existed among these men. They fought to position their "roads" in a limited number of mountain passes, rivers, and valleys; and to chart routes which connected major production areas with major consumption areas. They cajoled and begged almost anyone for capital. They created and tried to defend monopolies. They bullied each other, invaded each other's territories, and retaliated against each other. They staged wage wars. They agreed not to compete with each other, and bought each other out. The book opens in May of 1869, just after the completion of the first transcontinental route joining the Union Pacific Railroad and the Central Pacific Railroad in Ogden, Utah. The companies' long-term prospects were excellent, but right then they were desperate for cash. Union Pacific alone was more than $15 million in debt. Additional financing was proving scarce. By 1870, more than 40 railroads were floating bonds, "at almost any price for ready cash," wrote one contemporary observer. Still, funds were raised and construction went on, both of transcontinental lines and branch lines. As railway lines in the West were built in relatively unsettled areas, traffic was light and returns correspondingly low. To increase business, the companies found ways to encourage population growth along their routes. Much-needed funding came from immigration services set up by the railways themselves. Agricultural areas sprang up along the routes. Sometimes volume of traffic expanded too fast, and equipment shortages and construction delays occurred. Or, drought, recession, and low agricultural prices meant more red ink. This book takes the reader through the boom times and bust times of the greatest growth of railways the world has ever seen. The author uses a myriad of sources showing painstaking and creative research, including contemporary news accounts; railway company financial records and archives; contemporary industry journals; Congressional records; and personal papers, letters, memoirs and biographies of the main players. It's a good, solid read. Professor Julius Grodinsky was born in 1896 and died July 9, 1962, in Philadelphia, Pennsylvania. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *