/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/230822.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, August 22, 2023, Vol. 24, No. 168 Headlines F R A N C E ALTICE FRANCE: EUR1.72BB Bank Debt Trades at 16% Discount ALTICE FRANCE: Lord Abbett CB Marks $12.7MM Loan at 16% Off N E T H E R L A N D S LEALAND FINANCE: $500MM Bank Debt Trades at 42% Discount PHM NETHERLANDS: $370MM Bank Debt Trades at 17% Discount R U S S I A ASIA INSURANCE: S&P Affirms 'B-' Financial Strength Rating S W I T Z E R L A N D SYNGENTA AG: Moody's Withdraws 'Ba1' CFR, Alters Outlook to Stable U N I T E D K I N G D O M ASPIRE-IGEN LTD: Two Yorkshire Entrepreneurs Owed GBP70,000 BORDER STEELWORK: Enters Administration, 43 Jobs Affected CHARNWOOD PAINT: Enters Administration Amid Trading Difficulties FARFETCH LIMITED: Fitch Affirms LongTerm IDR at B-, Outlook Stable FARFETCH LTD: S&P Affirms 'B-' Long-Term ICR, Outlook Negative GREENSILL CAPITAL: IAG Australia Reports US$4.5-Bil. Claims PINNACLE BIDCO: Fitch Affirms LongTerm IDR at 'B-', Outlook Stable PLATFORM BIDCO: GBP417.5MM Bank Debt Trades at 18% Discount TRENCH NETWORKS: Bought Out of Administration via Pre-Pack Deal VUE INTERNATIONAL: Lord Abbett CB Marks $9.2MM Loan at 43% Off VUE INTERNATIONAL: Lord Abbett HY Marks EUR1.2MM Loan at 55% Off - - - - - =========== F R A N C E =========== ALTICE FRANCE: EUR1.72BB Bank Debt Trades at 16% Discount --------------------------------------------------------- Participations in a syndicated loan under which Altice France SA is a borrower were trading in the secondary market around 84.4 cents-on-the-dollar during the week ended Friday, August 18, 2023, according to Bloomberg's Evaluated Pricing service data. The EUR1.72 billion facility is a Term loan that is scheduled to mature on August 31, 2028. The amount is fully drawn and outstanding. Altice France provides wireless telecommunication services. The Company offers fiber optic network solutions for all type of media. Altice France serves customers in France. ALTICE FRANCE: Lord Abbett CB Marks $12.7MM Loan at 16% Off ----------------------------------------------------------- Lord Abbett Corporate Bond Fund has marked its $12,758,337 loan extended to Altice France SA to market at $10,706,413 or 84% of the outstanding amount, as of May 31, 2023, according to Lord Abbett CB's semi-annual report on Form N-CSR for the period from December 1, 2022 to May 31, 2023, filed with the Securities and Exchange Commission. Lord Abbett CB is a participant in a 2023 USD Term Loan B14 (France) to Altice France SA. The loan accrues interest at a rate of 10.49% per annum. The loan matures on August 15, 2028. Lord Abbett Investment Trust is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company and was organized as a Delaware statutory trust on August 16, 1993. The Trust currently consists of 14 funds as of May 31, 2023. The semi-annual report covers 12 of the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund. Altice France provides wireless telecommunication services. The Company offers fiber optic network solutions for all type of media. Altice France serves customers in France. ===================== N E T H E R L A N D S ===================== LEALAND FINANCE: $500MM Bank Debt Trades at 42% Discount -------------------------------------------------------- Participations in a syndicated loan under which Lealand Finance Co BV is a borrower were trading in the secondary market around 57.6 cents-on-the-dollar during the week ended Friday, August 18, 2023, according to Bloomberg's Evaluated Pricing service data. The $500 million facility is a Term loan that is scheduled to mature on June 30, 2025. The amount is fully drawn and outstanding. Lealand Finance is an affiliate of CB&I Holdings B.V. and Chicago Bridge & Iron Company B.V. The Company's country of domicile is the Netherlands. PHM NETHERLANDS: $370MM Bank Debt Trades at 17% Discount -------------------------------------------------------- Participations in a syndicated loan under which PHM Netherlands Midco BV is a borrower were trading in the secondary market around 82.8 cents-on-the-dollar during the week ended Friday, August 18, 2023, according to Bloomberg's Evaluated Pricing service data. The $370 million facility is a Term loan that is scheduled to mature on August 1, 2026. The amount is fully drawn and outstanding. PHM Netherlands Midco B.V., is the owner of Loparex International B.V., a developer and producer of specialty paper and film release liners. PHM Netherlands' country of domicile is the Netherlands. =========== R U S S I A =========== ASIA INSURANCE: S&P Affirms 'B-' Financial Strength Rating ---------------------------------------------------------- S&P Global Ratings affirmed its 'B-' long-term financial strength rating on Asia Insurance Sug'urta Kompaniyasi JSC (AI). The outlook is positive. S&P said, "AI's capital adequacy will be supported by a capital injection and retained earnings, despite larger investments in affiliates than we expected and losses in the first half of this year. AI's capital adequacy according to our capital model was 11% below the 'BBB' confidence level in 2022. We expect its capital adequacy will gradually improve to the 'BBB' level by 2024, benefiting from an expected capital injection in the third quarter of this year, retention of 100% of net profit for 2023 unlike our previous expectation of 40% payouts, and moderate premium growth of 13%-15% versus the market in 2023-2024. Moreover, we previously anticipated a divestment from statutory funds of affiliated companies, but the company now plans to increase investments in affiliates to UZS17.6 billion in 2023 from UZS8.9 billion in 2022. We expect this will somewhat curb the buildup of capital adequacy according to our capital model, since we deduct such investments from total adjusted capital. We note the company has a small capital base in absolute terms (below $5 million), which makes it susceptible to single-event losses, for example, a catastrophic earthquake in the Tashkent region." AI has been profitable over the past five years, although its technical performance has been volatile. The company reported a net loss of UZS3 billion over the first six months of 2023 amid an increased unearned premium reserve (UPR) associated with one big contract renewed in 2023 and a one-off claim of UZS5 billion. S&P said, "We expect AI's combined (loss and expense) ratio for the full year of 2023 may be higher than 100%, versus our previous expectation of 99%. However, we expect its investment income will contribute to overall profitability. In addition, expense control should also partly offset negative underwriting performance and we forecast a return on equity of 10%-14% in 2023 and 15%-17% in 2024, supported by a gradual recovery of the UPR as well as interest and rental income. Our capital projections include combined ratios of 105% in 2023 and 102% in 2024-2025, in line with the market average, and dividend playouts of about 40% of net income in 2024-2025." AI's solvency level meets local regulatory requirements. However, the margin to the minimum requirement of 1.0x remains relatively narrow: it was 1.05x as of July 1, 2023, 1.19x at year-end 2022, and 1.49% at year-end 2021. Under our base case, we expect the ratio will remain above the minimum requirement in the next 12 months, benefiting from the capital injection and gradually increasing profitability. AI's position in Uzbekistan's property and casualty insurance market remains relatively weak, although with growth potential. AI has a very limited market share in Uzbekistan of 1.5% as of Dec. 31, 2022, although it was established in 2005 and has operated profitably since then. It showed modest premium growth of 4% in 2022 due to its conservative underwriting, versus market growth of 56%. Its absolute size remains very small in a global context, with gross premiums written at about UZS56 billion or less than $5 million in 2022. S&P views the market as still nascent and the operating environment as difficult, which to some extent restrict our assessment of the company's overall business profile. The positive outlook indicates the possibility of an upgrade over the next 12 months. Upside scenario S&P could raise the rating over the next 12 months if the company's capital materially increases, while its business risk profile remains supported by sustainable and profitable growth. For a positive rating action, S&P would also expect no significant deficiencies in management and governance, whether in financial reporting standards or risk controls, including related-party transactions. Downside scenario S&P could revise the outlook to stable in the next 12 months if it see: -- AI underperforming our base-case expectations, or risks to its market standing, for example, due to a spike in competition. -- A deterioration of the capital base due to weaker-than-expected operating performance and investment losses, increasing investments in affiliates, an unplanned rise in dividends, or AI being used to support the shareholders' other businesses. -- A decline in the regulatory solvency margin due to higher-than-expected losses or premium growth, for example, resulting in an increased risk of regulatory intervention--although S&P sees this as remote. -- Significant and sustained weakening of asset quality. -- Deficiencies in management and governance, including financial reporting or risk controls, which S&P views as detrimental for AI's credit profile. ===================== S W I T Z E R L A N D ===================== SYNGENTA AG: Moody's Withdraws 'Ba1' CFR, Alters Outlook to Stable ------------------------------------------------------------------ Moody's Investors Service has assigned a Baa3 issuer rating to Syngenta AG, and withdrawn its Ba1 corporate family rating. At the same time, Moody's has upgraded to Baa3 from Ba1 the guaranteed senior unsecured ratings of its guaranteed subsidiaries Syngenta Finance N.V. and Syngenta Finance AG, and to (P)Baa3 from (P)Ba1 their guaranteed senior unsecured medium-term note (MTN) program rating. Moody's has also upgraded to P-3 from Not Prime the other short-term ratings of Syngenta, and to P-3 from Not Prime the guaranteed commercial paper rating from its guaranteed subsidiaries Syngenta Wilmington Inc. and Syngenta Finance N.V. Moody's has also revised the outlook on these ratings to stable from positive. "The rating upgrade reflects Syngenta's track record of improving its credit and business profiles, as well as Moody's expectation that these improvements can be sustained due to its solid market position in the global crop protection and seed markets. Moody's also expect that the company will maintain its prudent financial policy while it benefits from its positioning as an important operating subsidiary of Syngenta Group Co., Ltd. (Baa1 stable) and ultimately China's central government-owned Sinochem Holdings Corporation Ltd, which underpins Syngenta's track record of good funding access since its acquisition in 2017," says Gerwin Ho, a Moody's Vice President and Senior Credit Officer. RATINGS RATIONALE Syngenta's Baa3 issuer rating reflects the company's solid positions in the global crop protection and seed markets underpinned by its strong product offerings, improving financial profile, prudent financial management and good free cash flow generation capability. On the other hand, the Baa3 issuer rating is constrained by Syngenta's exposure to the cyclical crop protection business and high seasonal working capital swings. Syngenta performed strongly in 2022, mainly benefiting from better product pricing and higher sales volumes. Sales growth accelerated to 19% year-on-year (YOY) and Moody's adjusted EBITDA to 15% YOY in 2022, driven by the crop protection and seed segments. Given the EBITDA growth, the company's leverage, as measured by Moody's-adjusted debt/EBITDA, improved to 3.5x in 2022 from 3.9x in 2021. Moody's expects Syngenta's earnings to moderately weaken in 2023, mainly because of a volume decline, especially in the crop protection business due to significant de-stocking in the global agrochemical industry. However, underlying demand for agrochemical products is likely to remain strong, benefiting from moderating but still-elevated crop prices. As a result, Moody's expects Syngenta's leverage to remain largely stable at around 3.5x in 2023, as the company will reduce inventory carry and subsequently lower the debt level to offset expected weaker earnings. As the agrochemical industry reset inventory back to normal levels in 2024, Syngenta is likely to continue deleveraging with debt/EBITDA improving towards 3.0x, as the expected positive free cash flow will keep supporting its debt reduction. Such a leverage level will support its rating. As an important operating subsidiary of Syngenta Group, Syngenta benefits from strong funding support from its parent. As of the end of 2022, Syngenta received intercompany loans of $1.6 billion and revolving credit facilities of $1.5 billion from its immediate parent Syngenta Group, which help it manage its large seasonal working capital funding needs. Syngenta's liquidity is excellent. As of the end of December 2022 Syngenta had cash balances of $1.4 billion, as well as two committed revolving credit facilities (RCF) totaling $4.0 billion. Based on the existing cash balance and available committed credit facilities, and together with Moody's forecast for positive free cash flow generation in 2023 and 2024, Syngenta will have more than sufficient liquidity to meet its debt maturities over the next 12-18 months. ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS Syngenta's ESG attributes have a limited impact on the current rating. Syngenta faces inherent risk exposure to the agrochemical industry such as waste and pollution, climate conditions, and safe production. Such risk exposure is partly tempered by company's leading innovative product offerings in agrochemicals and seeds that support sustainable agriculture. Syngenta's governance risk assessment primarily reflects its board structure that features concentrated ownership. However, company's track record of pursuing a prudent financial management policy provides some mitigation. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The stable rating outlook reflects Moody's expectation that Syngenta will continue to grow its scale and maintain its solid market position, while remaining disciplined in its financial management with good free cash flow generation capability. Moody's could upgrade Syngenta's ratings if Syngenta continues to improve its credit and business profiles, while pursuing a prudent financial policy. Credit metrics indicative of an upgrade of Syngenta's rating include Moody's-adjusted debt/EBITDA dropping below 3.0x on a sustained basis. Moody's could downgrade Syngenta's ratings if Syngenta's credit or business profile significantly weakens. Credit metrics indicative of a downgrade include Moody's-adjusted debt/EBITDA increasing above 4.5x on a sustained basis. Failure to maintain a strong liquidity position could also pressure its ratings. =========================== U N I T E D K I N G D O M =========================== ASPIRE-IGEN LTD: Two Yorkshire Entrepreneurs Owed GBP70,000 ----------------------------------------------------------- Greg Wright at Yorkshire Post reports that two Yorkshire entrepreneurs are owed around GBP70,000 after an independent learning provider collapsed into administration. According to Yorkshire Post, Toni Eastwood of Beyond2030 and Jenn Crowther of Yorkshire in Business have been left with a significant shortfall after carrying out work for Bradford-based Aspire-Igen Ltd, which had eight training centres. Administrators were appointed to Aspire-Igen after the company suffered from decreased cashflow with its financial problems escalating following an "inadequate" Ofsted report which resulted in a reduction in the number of learners, Yorkshire Post relates. The directors sought advice and subsequently appointed Begbies Traynor to help place the company into administration, Yorkshire Post discloses. Ms. Eastwood said she and Ms. Crowther were part of a group of specialists in the region that were invited to devise plans for a project to be supported by ESF (European Social Fund) funding which would focus on issues such as gender stereotyping, the pay gap, women's enterprise and women in leadership, Yorkshire Post notes. She said both women are facing financial strain due to Aspire-Igen's collapse into administration, Yorkshire Post relays. A spokesman, as cited by Yorkshire Post, said Aspire-Igen Ltd was placed into administration in June with Joanne Hammond and Gareth Rusling of Begbies Traynor appointed as joint administrators. It provided pre and post-16 education through GCSEs and study programmes for vulnerable young people. "As administrators, the role of Begbies Traynor is to investigate the reasons the business has failed and maximise asset realisations for the benefit of creditors. The firm is unable to comment on the ongoing provision of contracts the company was working on -- these concerns should be addressed to the relevant authorities," Yorkshire Post quotes a spokesman as saying. "The administrators anticipate that there may be sufficient funds available to enable a dividend to be paid to unsecured creditors from the administration estate." BORDER STEELWORK: Enters Administration, 43 Jobs Affected --------------------------------------------------------- BBC News reports that a cross-border construction firm has gone into administration with the immediate loss of 43 jobs. Border Steelwork Structures -- which was founded in 1978 -- has offices in Annan and Carlisle. Michelle Elliot and Simon Carvill-Biggs, partners with FRP Advisory, have been appointed joint administrators, BBC relates. According to BBC, they said unsustainable financial and cash-flow issues due to a downturn in contracts and rising operational costs had led to the situation. The company has ceased trading and the joint administrators will now market the business and assets for sale which includes plant, machinery and a workshop in Annan, BBC discloses. CHARNWOOD PAINT: Enters Administration Amid Trading Difficulties ---------------------------------------------------------------- Sam Metcalf at TheBusinessDesk.com reports that a Leicestershire coatings company has collapsed into administration. Charnwood Paint Specialists has called in Conrad Beighton and David Griffiths of Leonard Curtis as joint administrators after a troubled period of trading, TheBusinessDesk.com relates. As TheBusinessDesk.com revealed earlier this month, Charnwood Paint Specialists posted two notices of intention to appoint administrators -- one at at the end of July and the second on Aug. 13. At the end of January, the firm was subject of a winding up petition from a company called InPlace Personnel Services, a recruiter from Mansfield, TheBusinessDesk.com discloses. According to the firm's latest available accounts, made up to the end of July 2022, it employed an average of 20 people across the year, TheBusinessDesk.com notes. FARFETCH LIMITED: Fitch Affirms LongTerm IDR at B-, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Farfetch Limited's Long-Term Issuer Default Rating (IDR) at 'B-'. The Outlook is Stable. Fitch has also affirmed Farfetch US Holdings, Inc.'s term loan B's (TLB) senior secured rating at 'BB-' with a Recovery Rating of 'RR1'. The affirmation follows Farfetch's release of 1H23 results and the USD200 million increase of the TLB. Farfetch's 'B-' rating remains supported by its leading position in the global e-commerce personal luxury market, where it is well-placed to capture growth opportunities due to its established and geographically diversified online marketplace platform. However, the rating is constrained by a delay in profitability improving due to disruption in selective luxury markets (US, China, Russia). Its updated rating case assumes that EBITDAR will turn neutral to positive in 2023 before improving strongly over 2024-2025. In its view, this path to profitability carries execution risks and failure to deliver it could result in negative rating pressure. The Stable Outlook also reflects its expectations of sufficient liquidity after the add-on placement to fund growth and Farfetch's put option liabilities, should they be exercised in cash. The company has some discretion over how to finance the exercise of the put options but Fitch will treat higher-than-expected cash outflows negatively in its analysis, especially if debt-funded. KEY RATING DRIVERS Performance Below Expectations: Farfetch underperformed its forecast in 2022 and 1H23 due to a higher fixed cost base, slower working capital turnover and weaker demand recovery in China. Its constant-currency revenue growth significantly decelerated to single digits in 1H23, while Fitch-adjusted EBITDAR was negative at USD99 million in 2022 and USD94 million in 1H23. Together with material cash outflows under working capital and capex, this led to the cash balance shrinking to USD454 million at end-June 2023 from USD1.4 billion at end-2021. Projected Profitability Improvement: The 'B' rating is predicated on management's commitment to achieving sustained profitability. Fitch assumes an improvement in growth, profitability and cash generation from 2H23, reflecting the ramp-up of new partnerships, ongoing cost-cutting initiatives and working capital management. Fitch projects EBITDAR margin to increase to 4% in 2024 and to above 10% in 2025 (2022: -4.3%), driven by growing economies of scale, contribution from new partnerships, potentially including certain Richemont brands and the investment in YNAP (in each case subject to regulatory approval) and cost improvements. Cost Reduction is Key: As Farfetch has lowered its revenue guidance, Fitch views a reduction in general & administrative (G&A) and R&D costs as key to deliver breakeven EBITDAR in 2023. In 2023, Farfetch plans to cut these costs to USD800 million from USD850 million in 2022, despite business growth and ramp up of new partnerships. Farfetch completed its initial cost-cutting plan by 1Q23 and introduced additional cost-saving initiatives in 2Q23, including significant headcount reductions, revision of operational footprint and exit from beauty business. There was some reduction in G&A and technology costs in 1H23 but Farfetch needs to make stronger progress in 2H23 to meet its target. Inability to reduce costs would delay reaching a sustained positive margin and would be detrimental to the 'B-' rating. Inventory, Fashion Risks: Farfetch is exposed to fashion and inventory risks due to its first-party sales, where it takes the ownership of inventory. This results in cash flow volatility and creates pressure on gross margin. In 1H23, the inventory position was higher than expected and while Fitch expects stock levels to reduce by end-2023, ongoing inventory clearance will weigh on gross margin for Farfetch's In-Store and Brand Platform segments. No Headroom for M&A, Dividends: Its rating case does not incorporate cash payments for M&A or shareholder remuneration and Fitch treats them as an event risk. Should this risk materialise, it would create significant pressure on the rating. Farfetch's liquidity is limited and Fitch estimates there is no headroom to absorb such cash outflows, despite the recent USD200 million add-on to its term loan. Leading Market Position: The rating is supported by Farfetch's position as a leading global platform for the luxury fashion industry, underpinned by good geographical diversification and an established presence in fast-growing markets. Farfetch's wide and growing portfolio of leading global luxury brands creates competitive strength, which together with sophisticated digital infrastructure, enables the company to reach a global online audience and ensure customer traffic. The platform is also equipped to service third parties by providing tailored direct-to-consumer solutions for luxury brand producers and retailers, underlining Farfetch's strong in-house capabilities. Platform Enabled by Technology: Fitch views Farfetch's in-house digital e-commerce platform and owned well-invested and established digital infrastructure as a fairly high barrier to new entrants achieving similar competitive strength and scale. Fitch believes Farfetch is also protected to some extent from competition from online giants, like eBay and Amazon. These are mainly positioned within the "mass-market" price category, while Farfetch mainly appeals to customers as a one-stop marketplace destination for major top and exclusive products and with a higher level of customer service. Enterprise Valuation Supports Financial Flexibility: Its rating reflects that some of the intrinsic strengths in Farfetch's business model are reflected in its enterprise value (EV) of USD2.7 billion, with access to equity adding to the group's financial flexibility and the considerable equity cushion (debt/EV of about 60%) supporting its TLB recovery analysis. Meaningful Execution Risks: Fitch sees high execution risks in Farfetch's plan to scale up its business and achieve strong and sustainable levels of profitability and free cash flow (FCF) generation. In Fitch’s view, the path to profitability has been already delayed not only due to external factors, such as exit from Russia, FX headwinds and lockdowns in China, but also due some weakness in implementation of the company's strategy. Fitch reflects this in ESG Relevance Score of '4' for management strategy. Fitch continues to rely on management's commitment to reach USD10 billion in gross merchandise value (GMV) and around USD400 million company-adjusted EBITDA by 2025. Delays in reaching this target may lead to negative rating action, especially in light of approaching senior secured debt maturity in 2027. DERIVATION SUMMARY Farfetch is the leading global platform for the luxury fashion industry and shares some traits with consumer goods and non-food retail companies as it sells products online and through directly operated retail stores. Fitch does not rate direct competitors of Farfetch. However, Fitch has considered companies such as Golden Goose S.p.A. (B+/Stable) and Birkenstock Financing S.a.r.l (BB-/Stable) in the luxury shoes/sneakers space (versus Farfetch's Stadium Goods), Levi Strauss & Co. (BB+/Stable) and Capri Holdings Limited (BBB-/Rating Watch Negative) in the branded apparel space (versus Farfetch's New Guards, Browns) and Amazon.com, Inc (AA-/Stable) in the e-commerce space (versus Farfetch Marketplace) for its analysis. All these are more mature businesses with proven EBITDA and cash flow generation. Fitch uses its Non-Food Retail Navigator to assess Farfetch, similar to Amazon.com and Golden Goose. Fitch considered lease-adjusted credit metrics for Farfetch due to its expansion of leasehold store network. Farfetch is rated two and three notches below Golden Goose and Birkenstock, respectively. Both Golden Goose and Birkenstock have strong EBITDAR margins (30%) and positive FCF, partially offset by their product and supplier concentration. Birkenstock's higher rating reflects its larger scale and product positioning that is historically less subject to fashion risk. Farfetch's credit profile is weaker than that of Levi's and Capri Holdings, which are much larger in scale, enjoy good EBITDAR margins and positive FCF while maintaining conservative leverage metrics and financial policies. Amazon.com is an investment-grade company with a global e-commerce platform, significant scale, solid diversification in product and geography, and conservative leverage. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer: - High organic growth supplemented by ramp-up of new partnerships with Ferragamo, Reebok and Neiman Marcus Group, with total gross merchandise value increasing to USD6 billion in 2025 from USD4 billion in 2022 (excluding GMV from marketplace and platform solutions services to Richemont brands and YNAP, which is subject to regulatory approval) - Regulatory approval of the YNAP transaction, with GMV from marketplace and platform solutions services to Richemont brands and YNAP contributing to Frafetch's revenue and profits from 2024 - EBITDAR turning positive in 2023 and trending to USD400 million in 2025 - Sustained improvement in working capital management, leading to inflows under working capital inflow over 2023-2025 - Capex of USD150 million-USD180 million a year over 2023-2026 - No dividends or new acquisitions to 2026 - Cash payments under put options not exceeding USD420 million for 2023-2026, noting that Farfetch has a discretion to settle in Farfetch shares and cash RECOVERY RATING ASSUMPTIONS The recovery analysis assumes that Farfetch would be reorganised as a going concern in bankruptcy rather than liquidated. Farfetch's GC EBITDA is estimated at USD120 million. Fitch has used a 6.0x enterprise vale to EBITDA multiple, which is in line with retail and business services companies' distressed multiple, but that reflects the strong growth fundamentals of Farfetch's business and its market position. Farfetch's USD600 million TLB (including the recent USD200 million add-on), issued by Farfetch US Holdings, Inc. ranks ahead of the USD1 billion unsecured convertible debt issued by Farfetch Limited. Fitch assumes that the company may use inventory financing facilities and therefore assume USD100 million of such debt ranking ahead of senior secured TLB. The assumption mirrors the USD100 million inventory financing basket, which is allowed under Farfetch's TLB agreement. After deducting 10% for administrative claims, its principal waterfall analysis generates a ranked recovery for the senior secured debt, in the 'RR1' category, leading to a 'BB-' rating for the TLB, three notches above the IDR. The waterfall analysis output percentage based on metrics and assumptions is 91%. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Maturing business model, leading to EBITDAR margin above 5% on a sustained basis - Visibility of deleveraging trajectory with EBITDAR leverage below 6x on a sustained basis Factors that could, individually or collectively, lead to negative rating action/downgrade: - Liquidity shortfalls and insufficient resources to fund operations or fulfil put options obligations over the next 18 to 24 months - No visibility of EBITDAR reaching at least USD300 million by 2025 and FCF turning positive on a sustained basis - Material debt-funded acquisitions, larger-than-expected payments under put options or shareholder distribution, leading to erosion of the cash position LIQUIDITY AND DEBT STRUCTURE Limited Liquidity: Farfetch's liquidity is limited, despite the cash balance of USD638 million at end-June 2023, proforma for net proceeds from TLB add-on. This is because of negative FCF and uncertainty about when it could turn positive. Its rating case also assumes potential cash outlays related to exercise of put options related to Farfetch China and Palm Angels in 2024 and 2026, respectively, which Farfetch expects to settle in its shares. ISSUER PROFILE Farfetch is the global leading marketplace for personal luxury fashion, including clothes and accessories, with an annual GMV of USD4.1 billion in 2022. ESG CONSIDERATIONS Farfetch Limited has an ESG Relevance Score of '4' for Management Strategy due to the company's aggressive financial policy in light of its opportunistic M&A record, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Farfetch Limited has an ESG Relevance Score of '4' for Governance Structure due to potential key-man risk associated with the founder's close involvement in the company's operations and strategy, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. 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. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Farfetch Limited LT IDR B- Affirmed B- Farfetch US Holdings, Inc. senior secured LT BB- Affirmed RR1 BB- FARFETCH LTD: S&P Affirms 'B-' Long-Term ICR, Outlook Negative -------------------------------------------------------------- S&P Global Ratings affirmed its long-term issuer credit rating on online luxury fashion platform Farfetch Ltd. at 'B-', along with the issue rating on the increased $600 million term loan B (TLB) at 'B-' with a recovery rating of '3'. The negative outlook continues to reflect the risk of a potential downgrade if the group stalls further on its ambitious growth plan, strategic targets, and working capital optimization initiatives, the delay of which could put pressure on liquidity and challenge the sustainability of its capital structure. Slowdown in demand for luxury personal goods in the U.S. and longer-than-initially-expected recovery in China will harm the group's performance over the next year. S&P said, "While we continue to view the luxury sector as a resilient sector globally, given its track record during periods of macroeconomic turbulence, there are geographic differences. The macroeconomic environment and pressure over discretionary income in the U.S. is expected to hamper demand over the remainder of 2023 and potentially over the first half of 2024. China's reopening and the projected recovery of demand has been slower than initially expected, also affected by the return to in-store shopping, making online purchasing less attractive. These two major regional trends are expected to have a significant impact on the group's performance in 2023 and the first half of 2024. Nevertheless, we continue to view China as one of the key drivers for growth for Farfetch, while the U.S. remains one of the largest growth markets for the industry." S&P said, "We expect a slower path to profitability and cash flow generation with revenue up to $2.4 billion-$2.5 billion in 2023; however, we continue to expect EBITDA to break even toward 2024. The first half of 2023 has delivered subdued gross merchandise value (GMV) (up 1% year on year to $2 billion) and adjusted revenue generation (up 2%) as a result of the softer trading conditions than previously anticipated, while persistently high levels of inventory and receivables have led to working capital flows remaining below expectations. We have reviewed our forecast, given the latest guidance and the macroeconomic environment, and we now expect slower GMV growth in 2023, totaling approximately $4.3 billion-$4.4 billion, versus $4.5 billion initially expected. We expect this to translate into slower revenue expansion. But the strong cost savings initiatives, including reduction in demand generation spend, should still allow the group to break even in 2024 as initially forecast. However, we continue to expect free operating cash flow (FOCF) after leases to remain negative until 2025-2026 on the back of slower-than-expected results on working capital management initiatives. The group continues its stock clearance efforts; however, the recent launch of the partnership with Reebok contributed to a further increase in inventory. We acknowledge management's ambitions to continue improving its stock position during the second half of 2023, such as targeted discounts and lower new order volumes. In addition, collection of value-added tax receivables has been slower than initially anticipated, and we expect most of these to be converted to cash only within the next 12 months. Despite slower cash generation, the $200 million add-on to the existing TLB supports the company's adequate liquidity position.The group has recently issued a $200 million fungible add-on to the TLB that was issued in October 2022 to enhance liquidity that has been overshadowed by the delay in delivering some of its key performance metrics. We expect liquidity to remain adequate, with sources covering uses by more than 1.2x, despite the large working capital swings during the year. We expect Farfetch to finish 2023 with approximately $700 million of cash thanks to the partial working capital unwind and $181 million of net proceeds from the add-on, which we anticipate will largely offset EBITDA losses and cover capital spending (capex) requirements." The negative outlook reflects the risk of a potential downgrade if the group stalls on its path to profitability and positive cash generation because of macroeconomic pressures or execution hurdles in its strategic initiatives, especially improvement in working capital and overall cash generation. It also reflects the risk of a downgrade if the group is not able to maintain adequate liquidity at all times. In S&P's base case, it forecasts breakeven S&P Global Ratings-adjusted EBITDA in 2024 and breakeven FOCF after leases in 2025-2026, while liquidity sources will continue covering uses by at least 1.2x on a forward-looking 12-month basis. S&P said, "We could lower our rating within the next six to 12 months if Farfetch is not able to maintain its adequate liquidity as a result of inability to unwind its current elevated inventories and receivables positions during the second half of 2023 and stabilize the working capital requirements in absence of additional liquidity sources. We could also downgrade Farfetch if we forecast further delays on the path to achieving positive adjusted EBITDA or FOCF after leases, or if the negative FOCF after leases consumes more cash than we forecast in our base case, raising the risk of the group's capital structure becoming unsustainable. "We could revise the outlook to stable over the next 12 months if the group addresses its working capital management by sustainably reducing volatility and the net investment from its current elevated level, thereby bolstering its liquidity position. A further positive rating action would depend on the group maintaining adequate liquidity to withstand operating headwinds at all times and on the successful delivery of its profitable growth strategy, supporting a consistent improvement in operating performance and achieving positive EBITDA and breakeven FOCF after lease payments ahead of our base case." GREENSILL CAPITAL: IAG Australia Reports US$4.5-Bil. Claims ----------------------------------------------------------- Nic Fildes and Ian Smith at The Financial Times report that Insurance Australia Group, the Sydney-based insurer embroiled in litigation over the collapse of finance company Greensill Capital, has said it has 20 claims with an aggregate value of A$7 billion (US$4.5 billion) related to the cases. The insurer is one of a number of such groups, including Tokio Marine and Zurich, that have refused to pay out on Greensill's credit cover, the FT discloses. Sydney-based IAG, which detailed the aggregate figure for the first time in its annual report on Aug. 21, faces multiple Australian legal cases from investors in Greensill-sourced debts, the FT notes. Greensill had arranged trade credit insurance through Bond & Credit Co -- the underwriting agency in which IAG formerly had a 50% stake -- to cover contracts in case of default, according to the FT. By its end, Greensill had US$10 billion of insurance arranged by BCC covering the debts it packaged up for investors, the FT states. IAG has previously denied it has any "net" exposure to the BCC policies signed with Greensill Capital and Greensill Bank, saying it passed this to Tokio Marine, which bought the BCC unit in 2019. Still, the Australian insurer has set aside A$467 million to cover legal fees and claims handling related to the cases, according to its report, the FT notes. In response to IAG's report, Japan's Tokio Marine issued a statement reiterating its position that Greensill's insurance was void from inception and that it "does not currently anticipate any material impact" on its finances from Greensill-related claims, the FT relates. Australia's federal court is expected to start formal proceedings on a series of insurance claims from Greensill creditors in the coming months, the FT states. Greensill was a supply-chain lending company led by Lex Greensill and advised by former UK prime minister David Cameron. The company collapsed two years ago after its insurance expired, sparking a political and financial scandal, the FT recounts. According to the FT, IAG has said in its legal filings that it is not bound by the policies signed between BCC and Greensill as the cover agreed was in breach of limits set on the unit. It has also argued that if it is deemed to be bound by the disputed BCC policies, it is not liable for the sums sought by creditors. Investment companies including Credit Suisse and White Oak have challenged the insurers' arguments that the policies are invalid in legal filings, according to the FT. The insurer, as cited by the FT, said it would take "a number of years" to resolve the outstanding litigation and that it was also managing claims issued by BCC unrelated to the Greensill policies. IAG added that if the court ruled it had to pay out on the insurance, it would rely on the 2019 agreement to pass the credit insurance exposure to Tokio Marine. However, IAG warned that those agreements could also be challenged, the FT notes. PINNACLE BIDCO: Fitch Affirms LongTerm IDR at 'B-', Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Pinnacle Bidco's plc (Pure Gym) Long-Term Issuer Default Rating (IDR) at 'B-' with a Stable Outlook. The 'B-' IDR reflects the group's high leverage, weak fixed charge cover ratios, and negative post-capex free cash flow (FCF), which are balanced by its leading market positions in the UK and Denmark in the value gym segment. Pure Gym's rating is exposed to gradually increasing refinancing risk related to its February 2025 notes maturity, which could lead to negative rating pressure if not addressed 12-15 months before the debt comes due. Its high financial leverage has also been partly offset by materially improved liquidity following a capital raise in January 2022, which Fitch believes should support anticipated debt refinancing. The Stable Outlook reflects its expectations of continued profit expansion that should enable deleveraging, satisfactory liquidity and capex flexibility, although Fitch incorporates slower expansion than in its previous forecast following slower expansion in 2023. Based on its current rating case, Fitch sees limited near-term rating headroom, and would view any deterioration in the group's performance over the next few quarters as negative for the ratings, particularly in light of the upcoming debt maturities. KEY RATING DRIVERS Slower EBITDA Growth: Fitch expects slower EBITDA growth to nearly GBP150 million by 2026 than under its previous rating case (over GBP200 million). This is due to a more prudent and halved expansion rate of around 215 new sites addition by 2026. Fitch forecasts GBP24 million improvement in EBITDA in 2023, following a strong 1Q23 performance with 12% growth in members yoy in this important period. Fitch-calculated EBITDA of GBP72 million in 2022 is after rents and is not adjusted for certain items that the company includes. Trading in 2H22 was affected by fewer new members in the key September 2022 period. High leverage: Fitch expects a more gradual reduction in leverage due to slower growth in profits. Fitch forecasts EBITDAR gross leverage at 8.5x in 2023, which will exceed the negative sensitivity, reducing to within rating guidelines in 2024. Fitch believes the underlying business is cash-generative and has the potential to deleverage towards 7.0x by 2026 as profits grow due to ramp up of existing sites and new sites start contributing to profits. Membership Growth: Fitch models growth in memberships to follow a normal cycle with key net addition periods in January and September, rather than expecting post-pandemic recovery for a like-for-like (LFL) portfolio by a certain date. Fitch expects average members per gym in the UK to slightly increase in 2024, then decline due to new gym additions and changes in the site mix, and do not expect it to reach pre-pandemic levels. Pure Gym reported LFL membership count for UK sites (opened before 2018) remained 13% below pre-pandemic level in 1Q23, with revenue now recovered amid improved average revenue per member (ARPM). This is slightly ahead of its closest peer, The Gym Group. High Refinancing Risk: In Fitch’s view, refinancing risk is high and will weigh on Pure Gym's rating as maturity of its notes in February 2025 approaches. Its forecast incorporates refinancing at a somewhat higher interest rate than the current around 6% effective interest rate, leading to slightly weaker coverage metrics albeit still aligned with the rating, and a weaker funds from operations (FFO) margin. Refinancing at higher than its modelled rate, which will depend on market conditions and investor appetite, could suppress the margin further and be negative for the rating. Low Cost Business: Fitch anticipates the EBITDAR margin will recover to 40% by 2025, instead of 43% previously, due to slower growth and somewhat lower average members per site. The low-cost business model with caps and collars on rents and forward contract on energy partially protect the group from cost inflation eroding profitability. Execution Risk in Expansion: Its rating case sees some execution risk associated with around new 190 gym openings assumed for 2023-2026 in the UK. Fitch sees a risk of over-expansion in the sector, especially if other gym operators follow suit, even if demand trends appear favourable for expansion. This is somewhat mitigated by weakened competition post-pandemic and Pure Gym's record of opening and ramping up new sites. Fitch incorporates increased average capex per site of around GBP1.2 million. Value Offering: Fitch expects Pure Gym's value business model to perform better in a recessionary environment than traditional peers. This is because its monthly fees are materially lower than traditional private operators and Pure Gym has no membership contracts with notice periods. Fitch believes this provides Pure Gym with a competitive advantage as consumers seek lower-cost propositions. The business model is strengthened by Pure Gym's variable pricing model, which allows flexibility for margin preservation while competing with local peers. Growing Value-Gym Market: The IDR reflects Pure Gym's leading position in the value-gym market, which Fitch expects to continue to grow. Fitch believes the group is well-positioned to benefit from a renewed focus on health & wellbeing trends post-pandemic. DERIVATION SUMMARY Pure Gym generally operates on higher EBITDAR margins than the median for Fitch-rated gym operators, including those within its food, non-food retail and leisure credit opinion portfolios, due to its scale and a value/low-cost business model. However, due to its accelerated expansion programme and slower member growth, Fitch does not expect Pure Gym's profitability to exceed the industry average over its forecast period. Pure Gym has been taking market share mainly from its mid-market peers, due to the competitive nature of its pricing structure. Fitch views Pure Gym's forecast total adjusted debt/ operating EBITDAR at 7.8x by end-2024 as high, but in line with that of similar leisure credits in the low 'B' rating category. Negative FCF amid an expansion strategy restricts the IDR. However, Pure Gym's cash flow conversion and deleveraging capability is structurally better than for high-street retailers, and is now further enhanced by equity-funded capex. Pure Gym is rated one notch below its closest Fitch-rated peer, Deuce Midco Limited (David Lloyd Leisure, DLL; B/Stable), the premium lifestyle club operator. Pure Gym has a more aggressive expansion strategy, which carries higher execution risk than for DLL, resulting in expected weaker FCF generation and higher leverage. Following the accelerated expansion to be funded by equity injection, Fitch expects Pure Gym's leverage to reach around 7.0x by 2026, three years later than DLL under its capital structure. Pure Gym has mildly higher profitability than DLL with EBITDAR margin trending towards 41% due to its low-cost business model, versus around 37% at DLL. KEY ASSUMPTIONS Fitch's Key Assumptions within its Rating Case for the Issuer: - Average memberships for 2023 at around 1.8 million (11% higher than average 2022 levels) and gradually increasing to 2.3 million by 2026, benefitting from new gym openings and the ramp-up of new gyms - Around 40 corporate-owned new gym openings in 2023, followed by around 175 new gyms in 2024-2026 (50 in 2024, 55 in 2025, and 70 in 2026) and 27 gym closures between 2023 and 2026 in Denmark - Average members per gym post-2023 gradually declining to reflect the ramp-up of new gym openings and smaller format boxes with lower capacities - ARPM gradually increasing to GBP24.6 by 2026 from GBP23.7 in 2022 - Sales CAGR of 9% in 2023-2026, supported by increasing ARPM, new site openings and the ramp-up of new sites - EBITDAR margin recovering to around 38.6% by 2023, and gradually nearing 41% by 2026, supported by increase in scale, maturation of newly-opened gyms, margin improvement efforts in Denmark and contribution from franchise sites - Fitch-derived EBITDA includes a GBP9 million negative impact from of its lease treatment against cash lease cost (lease costs calculated as the sum of right-of-use asset depreciation and P&L interest cost; the difference for the forecast period of 2023-2026 is expected to narrow) - Average capex at around GBP115 million per year between 2023 and 2026 to fund new site openings and refurbishment projects - No dividends and no acquisitions to 2026 Key Recovery Rating Assumptions: The recovery analysis assumes that Pure Gym would be reorganised as a going-concern (GC) in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim. The GC EBITDA estimate reflects Fitch's view of a sustainable, post-reorganisation EBITDA level upon which Fitch bases the valuation of the group. Pure Gym's GC EBITDA of GBP110 million is based on Fitch-projected EBITDA in 2024, reflecting the ramp up of existing sites as well as contribution from new site openings by 2024. This reflects competitive dynamics, which are partly offset by a broadly resilient format given its lower price point but lack of contracts. The current Fitch-distressed enterprise value (EV)/EBITDA multiples for other gym operators in the 'B' rating category have been around 5x-6x. Fitch recognises that Pure Gym has a leading share in the growing value-gym market, which justifies a 5.5x multiple, although Pure Gym currently does not have any unique characteristics that would allow for a higher multiple, such as a significant unique brand, material franchise revenue or undervalued real-estate assets. The GBP145 million RCF, which ranks super-senior to the senior secured notes, is assumed to be fully drawn upon default. After deducting 10% for administrative claims, its principal waterfall analysis generates a ranked recovery for the senior secured debt, in the 'RR4' category, leading to a 'B-' rating for the bonds. The waterfall analysis output percentage based on current metrics and assumptions is 47% (unchanged). RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade (to B): Growth in membership numbers and revenue from mature sites and maturing new sites, while continuing to control cost, leading to: - (Fitch-defined EBITDA minus interest and operational cash expenses)/revenue (previously known as FFO margin) trending to 10% - EBITDAR fixed charge coverage above 1.5x on a sustained basis - Total EBITDAR leverage below 7.5x Factors that could, individually or collectively, lead to negative rating action/downgrade (to CCC+): - Lack of progress on refinancing 12-15 months before material debt maturities or refinancing at materially higher interest rates, leading to EBITDAR fixed charge coverage below 1.2x - Loss of revenue and decline in profitability due to economic weakness, increased competition and pressure on pricing leading to (Fitch defined EBITDA minus interest and operational cash expenses) / revenue (previously known as FFO margin) consistently below 10% - Total EBITDAR leverage remaining above 8.0x on a sustained basis LIQUIDITY AND DEBT STRUCTURE Comfortable Liquidity: Following the GBP300 million equity injection in January 2022, Fitch views Pure Gym's liquidity as comfortable, supported by GBP235 million cash on sheet balance (of which GBP30 million is held at the parent entity) at end-2022 and full availability under the GBP145 million RCF. Fitch expects that cash on hand including the proceeds from the equity injection together with internally generated cash flows will be more than sufficient to fund Pure Gym's accelerated expansion strategy in 2023-2024. Fitch projects FCF to stay negative, driven by higher capex needs related to the number of gym openings and gym refurbishments and despite EBITDA expansion on new gym openings and the maturation of newly-opened gyms. The group has extended the maturity of the RCF to January 2025, similar to that of the existing GBP430 million and EUR490 million senior secured notes due in February 2025. ISSUER PROFILE Pure Gym is a leading low-cost gym operator in Europe with around 560 sites across UK, Denmark and Switzerland (as of March 2023). 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. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Pinnacle Bidco plc LT IDR B- Affirmed B- super senior LT BB- Affirmed RR1 BB- senior secured LT B- Affirmed RR4 B- PLATFORM BIDCO: GBP417.5MM Bank Debt Trades at 18% Discount ----------------------------------------------------------- Participations in a syndicated loan under which Platform Bidco Ltd is a borrower were trading in the secondary market around 81.6 cents-on-the-dollar during the week ended Friday, August 18, 2023, according to Bloomberg's Evaluated Pricing service data. The GBP417.5 million facility is a Term loan that is scheduled to mature on September 23, 2028. About GBP258.1 million of the loan is withdrawn and outstanding. Platform Bidco Ltd is a UK entity incorporated in April 2021 to acquire Valeo Foods Group Ltd, an Irish-headquartered producer and distributor of branded and non-branded ambient food products. The Company’s country of domicile is the United Kingdom. TRENCH NETWORKS: Bought Out of Administration via Pre-Pack Deal --------------------------------------------------------------- Business Sale reports that Trench Networks, a provider of Wi-Fi services at construction sites, has been acquired out of administration in a pre-pack deal. The company, which is based in Hebburn having relocated from its previous base in Cramlington, has been acquired by Northern Telecommunications, Business Sale discloses. The company specialises in providing remote internet access at sites that otherwise lack Wi-Fi infrastructure. However, following the collapse of several regional contractors in the local construction sector, including Metnor and Tolent, the company lost several sites that it was working on, Business Sale relates. As a result, the company faced cash flow issues, including a rising level of bad debt and a loss of turnover, Business Sale states. Faced with restricted cash flow and arrears to creditor, the company acted swiftly to appoint insolvency experts FRP Advisory, Business Sale notes. According to Business Sale, joint administrator and FRP partner Andrew Haslam said that Trench Networks director Kevin Lattimer had sought advice at an early stage, meaning the administrators had "lots of options to consider rather than seeking professional advice at the eleventh hour." Mr. Haslam continued: "Because of this early engagement, it allowed a marketing exercise to be undertaken which prompted significant interest in the business. "Ultimately, a trade purchaser was identified and a contract negotiated to sell the business and rescue the staff. This is a positive result and we hope that the purchaser can take the business forward and expand on the success of the founders." VUE INTERNATIONAL: Lord Abbett CB Marks $9.2MM Loan at 43% Off -------------------------------------------------------------- Lord Abbett Corporate Bond Fund has marked its $9,223,893 loan extended to Vue International Bidco PLC to market at $5,274,791 or 57% of the outstanding amount, as of May 31, 2023, according to Lord Abbett CB's semi-annual report on Form N-CSR for the period from December 1, 2022 to May 31, 2023, filed with the Securities and Exchange Commission. Lord Abbett CB is a participant in a 2023 EUR Payment in Kind Term Loan 6.50% to Vue International Bidco PLC. The loan accrues interest at a rate of 4.86% (6 mo. EUR EURIBOR + 2%) per annum. The loan matures on December 31, 2027. Lord Abbett Investment Trust is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company and was organized as a Delaware statutory trust on August 16, 1993. The Trust currently consists of 14 funds as of May 31, 2023. The semi-annual report covers 12 of the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund. Vue International Bidco PLC operates movie theaters worldwide. The Company's country of domicile is the United Kingdom. VUE INTERNATIONAL: Lord Abbett HY Marks EUR1.2MM Loan at 55% Off ---------------------------------------------------------------- Lord Abbett High Yield Fund has marked its EUR1,196,824 loan extended to Vue International Bidco PLC to market at EUR538,571 or 45% of the outstanding amount, as of May 31, 2023, according to Lord Abbett HY's semi-annual report on Form N-CSR for the period from December 1, 2022 to May 31, 2023, filed with the Securities and Exchange Commission. Lord Abbett HY is a participant in a 2023 EUR Payment In Kind Term Loan 6.50% to Vue International Bidco PLC. The loan matures on December 31, 2027. Lord Abbett Investment Trust is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company and was organized as a Delaware statutory trust on August 16, 1993. The Trust currently consists of 14 funds as of May 31, 2023. The semi-annual report covers 12 of the funds namely: Lord Abbett Convertible Fund, Lord Abbett Core Fixed Income Fund, Lord Abbett Core Plus Bond Fund, Lord Abbett Corporate Bond Fund, Lord Abbett Floating Rate Fund, Lord Abbett High Yield Fund, Lord Abbett Income Fund, Lord Abbett Inflation Focused Fund, Lord Abbett Short Duration Core Bond Fund, Lord Abbett Total Return Fund, Lord Abbett Ultra Short Bond Fund. Vue International Bidco PLC operates movie theaters worldwide. The Company's country of domicile is the United Kingdom. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2023. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. 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 * * *