/raid1/www/Hosts/bankrupt/TCREUR_Public/240103.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Wednesday, January 3, 2024, Vol. 25, No. 3
Headlines
G E R M A N Y
EIGENSONNE: Charlottenburg Court Opens Insolvency Proceedings
WIRECARD AG: Insolvency Manager Files EUR1.5-Bil. Suit v. EY
I R E L A N D
ENDO INT'L: Has New Plan for Debt-Equity Deal, DOJ Settlement
U N I T E D K I N G D O M
ABERDEEN HOUSE: Enters Liquidation, To Shut Down Care Home
BISHOPSGATE ASSET: S&P Cuts Series 1 Repack Notes Rating to 'BB-'
EUROPEAN FOOD: Owes GBP3.208 Million to Creditors, Documents Show
PURITY BREWING: Bought Out of Administration by Breal Capital
- - - - -
=============
G E R M A N Y
=============
EIGENSONNE: Charlottenburg Court Opens Insolvency Proceedings
-------------------------------------------------------------
Sandra Enkhardt at PV Magazine reports that the Charlottenburg
district court in Berlin, Germany, opened preliminary insolvency
proceedings against German PV installer Eigensonne GmbH.
Lawyer Florian Linkert has been appointed as the provisional
insolvency administrator for Eigensonne, PV Magazine relates.
According to PV Magazine, while specific reasons were not provided
in the published notice, it's evident that Eigensonne had
long-standing difficulties and was actively seeking investors and
buyers.
The Berlin-based company offers PV systems for purchase and rental.
Christian Langen, the founder of Dynago, and Tobias Schuett, a
freelance consultant, noted the strategic options that Eigensonne
has after the opening of insolvency proceedings, provided that the
banks provide fresh capital or an investor is found, PV Magazine
notes. The company could then continue as before. However, a
haircut would probably then be necessary and it is questionable
whether new customers could be found for the long-term rental
model, they said, according to PV Magazine.
The second option would be for Eigensonne to focus on supporting
its customers' existing PV systems, PV Magazine states. According
to Messrs. Schuett and Langen, the third possibility would be the
end of the company, PV Magazine relays.
WIRECARD AG: Insolvency Manager Files EUR1.5-Bil. Suit v. EY
------------------------------------------------------------
Tom Sims and Alexander Huebner at Reuters report that accountancy
firm EY is facing a new lawsuit claiming EUR1.5 billion (US$1.66
billion) in damages over its role in auditing Wirecard's books
before the German payments company collapsed in 2020.
The suit was filed by Wirecard's insolvency manager Michael Jaffe
in a court in Stuttgart, a court spokesperson said on Dec. 29,
Reuters relates.
The accounting firm has previously rebuffed claims against it for
damages in relation to Wirecard, Reuters notes.
Wirecard filed for insolvency in June 2020, owing creditors almost
US$4 billion, after disclosing a EUR1.9 billion-hole in its
accounts that EY said was the result of a sophisticated global
fraud, Reuters recounts.
The firm's downfall shook the German business establishment,
putting politicians who had backed it under intense scrutiny, along
with regulators who took years to investigate allegations against
the payments company that were circulating prior to its collapse,
Reuters relays.
According to Reuters, Klaus Nieding, a lawyer representing
shareholders in last week's lawsuit, said that EY should have seen
"relatively easily that the alleged EUR1.9 billion did not exist in
Wirecard's corresponding accounts," because another auditor later
"found this out very quickly".
=============
I R E L A N D
=============
ENDO INT'L: Has New Plan for Debt-Equity Deal, DOJ Settlement
-------------------------------------------------------------
Endo International plc (OTC: ENDPQ) on Dec. 19, 2023, disclosed
that it has taken an important step toward concluding its financial
restructuring process by filing a proposed Plan of Reorganization
(the "Plan") and related Disclosure Statement with the U.S.
Bankruptcy Court for the Southern District of New York (the
"Court"). These filings pave the way for Endo to promptly emerge
from Chapter 11 with a strengthened balance sheet and to advance
its ongoing business transformation.
The Plan is a preferred alternative to the previously announced
sale of substantially all the Company's assets to holders of Endo's
first lien debt (the "Ad Hoc First Lien Group") under Section 363
of the U.S. Bankruptcy Code, with substantially similar terms: a
purchase of substantially all of the Company's assets via a credit
bid of existing first lien debt, the assumption of certain
liabilities, and offers of employment to all of Endo's active team
members. This ownership transfer, as previously announced, will
result in a significant reduction in outstanding indebtedness
relative to Endo's current capital structure and materially benefit
opioid and other litigation-related claimants through the
establishment of funded trusts. Endo is working with its
stakeholders to finalize the documentation related to the
transaction.
In addition to the previously reached settlements, the Plan
incorporates the recently announced economic settlement in
principle with the U.S. Department of Justice providing for payment
of $364.9 million over 10 years, or $200 million if the obligation
is paid in full on the Plan effective date, plus up to an
additional $100 million if the Company's EBITDA exceeds the defined
baseline during the period 2024 to 2028. This settlement is subject
to satisfactory resolution of criminal and civil fraud claims
against the Company related to the historical sale and marketing of
Opana(R) ER, which the Company ceased promoting directly to U.S.
healthcare providers in 2016.
"We are pleased to have reached this milestone in our financial
restructuring, during which time we've made steady progress
advancing our strategic priorities," said Blaise Coleman, Endo's
President and Chief Executive Officer. "The Plan provides a clear
path forward for Endo to emerge from this process on stronger
financial footing in the second quarter of 2024."
The Company will seek conditional approval of its Disclosure
Statement at a hearing before the Court currently scheduled for
January 9, 2024. Assuming Court approval, the Disclosure Statement
and Plan will be mailed to Endo's creditors eligible to vote, and
the Court will schedule a hearing to confirm the Plan.
Additional Information
Court filings and information about the claims process are
available at https://restructuring.ra.kroll.com/endo; by calling
the Supplier Hotline at (877) 542-1878 (toll-free) or +1 (929)
284-1688 (international); or by emailing
EndoInquiries@ra.kroll.com.
Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, PJT Partners LP is serving as investment banker, and
Alvarez & Marsal is serving as financial advisor to Endo.
About Endo International
Endo International plc (OTC: ENDPQ) is a generics and branded
pharmaceutical company. It develops, manufactures, and sells
branded and generic products to customers in a wide range of
medical fields, including endocrinology, orthopedics, urology,
oncology, neurology, and other specialty areas. On the Web:
http://www.endo.com/
On Aug. 16, 2022, Endo International and certain of its
subsidiaries initiated voluntary prearranged Chapter 11 proceedings
(Bankr. S.D.N.Y. Lead Case No. 22-22549).
On May 25, 2023, Operand Pharmaceuticals Holdco II Limited and
Operand Pharmaceuticals Holdco III Limited each filed a voluntary
Chapter 11 petition also in the U.S. Bankruptcy Court for the
Southern District of New York. On May 31, 2023, Operand
Pharmaceuticals II Limited and Operand Pharmaceuticals III Limited
each filed a voluntary
Chapter 11 petition also in the Southern District of
New York.
The Company's cases are jointly administered before the Honorable
James L. Garrity, Jr.
Endo initiated the financial restructuring process after reaching
an agreement with a group of its senior debtholders on a
transaction that would substantially reduce outstanding debt,
address remaining opioid and other litigation-related claims, and
best position Endo for the future. This would allow the Company to
advance its ongoing business transformation from a strengthened
financial position to create compelling value for its stakeholders
over the long term.
Endo's India-based entities are not part of the Chapter 11
proceedings. The Company has filed recognition proceedings in
Canada and expects to file similar proceedings in the United
Kingdom and Australia.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
legal counsel; PJT Partners, LP as investment banker; and Alvarez &
Marsal North America, LLC as financial advisor. Kroll
Restructuring Administration, LLC, is the claims agent and
administrative advisor. A Website dedicated to the restructuring
is at http://www.endotomorrow.com/
Roger Frankel, the legal representative for future claimants in the
Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP, as legal counsels, and Ducera Partners,
LLC, as investment banker.
===========================
U N I T E D K I N G D O M
===========================
ABERDEEN HOUSE: Enters Liquidation, To Shut Down Care Home
----------------------------------------------------------
Evie Payne at Oakham Nub News reports that Rutland County Council
is working hard to put alternative care arrangements in place for
residents who will be affected by the closure of Aberdeen House
Care Home in Uppingham.
Aberdeen House Care Home is privately run by Aberdeen Care Ltd.
According to Oakham Nub News, the owner has confirmed it is closing
the home and the firm is going into liquidation.
Having been notified of the owner's decision on December 21, 2023,
Rutland County Council has stepped in to ensure alternative care
arrangements are put in place to meet the individual needs of the
eight residents living at Aberdeen House before the home is closed
and de-registered on January 3, 2024, Oakham Nub News relates.
BISHOPSGATE ASSET: S&P Cuts Series 1 Repack Notes Rating to 'BB-'
-----------------------------------------------------------------
S&P Global Ratings lowered to 'BB-' from 'BB' its credit rating on
Bishopsgate Asset Finance Ltd.'s series 1 repack notes.
The rating action follows its Dec. 20, 2023, rating action on
Consort Healthcare (Birmingham) Funding PLC.
Under S&P's "Global Methodology For Rating Repackaged Securities"
criteria, it weak-link its rating on Bishopsgate Asset Finance
Ltd.'s series 1 repack notes to the lowest of:
-- S&P's rating on the £398.68 million index-linked notes issued
by Consort Healthcare (Birmingham) Funding PLC;
-- S&P's issuer credit rating (ICR) on NatWest Markets PLC swap
counterparty; and
-- S&P's ICR on Deutsche Bank AG as custodian.
Therefore, following S&P's recent rating action on Consort
Healthcare (Birmingham) Funding PLC, it has lowered to 'BB-' from
'BB' on Bishopsgate Asset Finance Ltd.'s series 1 repack notes.
EUROPEAN FOOD: Owes GBP3.208 Million to Creditors, Documents Show
-----------------------------------------------------------------
Arabella Mileham at The Drinks Business reports that European Food
Brokers Limited, the supplier and sister company of former-UK wine
retailers Oddbins, which was placed in formal administration in
late December, has left debts of over GBP3.208 million, documents
published on Companies House have revealed.
Oddbins, which was bought out of administration by Wine Retail
Holdings Limited, a subsidiary of European Food Brokers' parent
company EFB Holdings Ltd, closed its UK bricks and mortar estate in
late November, citing the changed buying habits of customers during
lockdown, which had proved "difficult to reverse", The Drinks
Business recounts. It was reported to be pivoting to online
operations, due to the fall in commuter footfall, however the
website is no longer operating and Wine Retail Limited along with
the sister company that supplied it, European Food Brokers Limited,
were placed in administration on December 18 and December 15
respectively, with Begbies Traynor appointed as the administrator,
The Drinks Business notes.
According to a statement of affairs filed at Companies House,
European Food Brokers Limited recorded a shortfall to preferential
creditors of GBP105,195, with the estimated deficiency as regards
creditors set at GBP3.208 million, The Drinks Business discloses.
This included debts to trade creditors of GBP514,614, employees
(GBP260,394), HMRC (CT) 12,964 and its landlord (GBP315,000), The
Drinks Business states.
It recorded nearly GBP1.5 million worth of stock among its assets
subject to a floating charge, The Drinks Business says.
PURITY BREWING: Bought Out of Administration by Breal Capital
-------------------------------------------------------------
Business Sale reports that administrators have secured the sale of
Warwickshire-based craft brewery Purity Brewing Company to Breal
Capital in a deal that secures 60 jobs.
The business had fallen into administration amid widespread adverse
trading conditions in the hospitality sector, Business Sale
relates.
According to Business Sale, joint administrators Mike Denny and
Mark Firmin of Alvarez & Marshal LLP completed the sale of Purity
Brewing Company and Pure Craft Bars to Breal Capital, which has
completed several deals in the hospitality sector over recent
months.
Breal's recent acquisitions include a deal to take wine bar
operator Vinoteca out of administration in August, the GBP60
million acquisition of restaurant group D&D London in October and
the May 2023 acquisition of North Yorkshire brewery Black Sheep
Brewery, Business Sale discloses.
"Like many operators in the hospitality sector, Purity Brewing and
Purecraft have endured tough market conditions," Business Sale
quotes joint administrator Mark Denny as saying. "Most recently,
the impact of significant cost inflation coupled with reduced
discretionary spend has placed significant strain on the companies.
We're pleased to have preserved the future of both businesses and
the Purity brand by delivering the sale to Breal Capital,
safeguarding all 60 local jobs."
*********
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 2024. 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 * * *