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250828.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, August 28, 2025, Vol. 26, No. 172 Headlines A U S T R I A BANK AUSTRIA KUNSTFORUM: Closes Due to Signa Insolvency G E R M A N Y FORTUNA CONSUMER 2025-2: S&P Assigns Prelim 'CCC' Rating to G Notes I R E L A N D ARES EUROPEAN XIV: Moody's Affirms B2 Rating on EUR5.1MM F Notes AURIUM CLO III: Moody's Ups Rating on EUR10.5MM Cl. F Notes to B1 CONTEGO CLO III: Fitch Assigns 'B-(EXP)sf' Rating to Cl. F-RR Notes L U X E M B O U R G FOUNDEVER GROUP: Moody's Lowers CFR & Senior Secured Debt to Caa2 S W E D E N NORTHVOLT AB: Lyten to Secure Carmaker Support for Co's Revival U N I T E D K I N G D O M AETHEL CARE: Enters Administration APEX TRAFFIC: Falls Into Administration, 119 Jobs Affected AZURE FINANCE 3: Moody's Affirms B1 Rating on GBP3.7MM Cl. F Notes CLERMA (GB): Fell Into Administration HGL REALISATIONS: FRP Advisory Named as Administrators JOLLIFFE & CO: Firm Appoints Administrators LIKE DIGITAL: FRP Advisory Named as Administrators ODYSSEY FUNDING: S&P Assigns Prelim BB (sf) Rating to X-Dfrd Notes - - - - - ============= A U S T R I A ============= BANK AUSTRIA KUNSTFORUM: Closes Due to Signa Insolvency ------------------------------------------------------- Aviation Direct reports that the Bank Austria Kunstforum Wien ceased operations at its Freyung location on August 21, 2025, after more than four decades. The report says the closure is related to the economic consequences of the Signa insolvency, which made the institution's operations impossible. The last exhibition at the venerable venue, Mensch Berlin, was a popular success, notes the report. The show featured more than 120 works of art from the post-war German period and the period of reunification. Thousands of visitors took the opportunity to visit the exhibition and bid farewell to the Kunstforum. According to Aviation Direct, the exhibition was the first international appearance of the Kunstforum Berliner Volksbank Foundation. It was met with positive feedback from both experts and the public. The closing event was accompanied by a reading by art dealer Rudiger Kuttner, who offered insights into the art world of the DDR. The report notes that the closure of the well-known art institution represents a turning point for the Viennese cultural scene. It shows how the insolvency of the Signa Group affected not only the real estate sector but also cultural institutions. ============= G E R M A N Y ============= FORTUNA CONSUMER 2025-2: S&P Assigns Prelim 'CCC' Rating to G Notes ------------------------------------------------------------------- S&P Global Ratings assigned its preliminary credit ratings to Fortuna Consumer Loan ABS 2025-2 DAC's class A to G-Dfrd notes. At closing, the issuer will also issue unrated class X-Dfrd notes. auxmoney GmbH (auxmoney) and its wholly owned subsidiary CreditConnect GmbH have been operating in the German consumer market since 2007. This will be auxmoney's seventh ABS securitization and the first that S&P has rated. The underlying collateral comprises unsecured consumer loan receivables without specific purpose, originated by Süd-West-Kreditbank Finanzierung GmbH (SWK Bank) and brokered via auxmoney as a part of marketplace lending in Germany. All the loans feature a fixed interest rate. The transaction has a 12-month revolving period, subject to early amortization upon the occurrence of certain events, including performance-based tests. The notes pay one-month Euro Interbank Offered Rate plus a margin, the combination being subject to a floor of zero. The notes pay down pro rata at the start of the amortization period, unless a sequential amortization event occurs. Subordination provides credit enhancement. In addition, the notes benefit from excess spread and the excess of the liquidity reserve above its required amount following reserve amortization, which is released to the interest priority of payments and may be used to cure the principal deficiency ledgers. Principal proceeds can be used to cure senior expenses and interest shortfalls for the class A to F-Dfrd notes if interest proceeds are not sufficient. In addition, a liquidity reserve fund (amortizing subject to a floor) covers any senior expense and interest shortfalls on the class A to F-Dfrd notes. S&P said, "Our preliminary ratings address timely payment of interest and ultimate payment of principal on the class A notes and ultimate payment of interest and principal on the class B-Dfrd to F-Dfrd notes. When an interest deferrable class of notes becomes the most senior, then interest must be paid in a timely manner. "Our structured finance sovereign risk criteria, counterparty criteria, and operational risk analysis do not constrain the preliminary ratings. We expect the final documentation at closing to adequately mitigate counterparty and legal risk in line with our counterparty and legal criteria." Preliminary ratings Class Preliminary rating* Class size (%) A AAA (sf) 73.00 B-Dfrd AA (sf) 9.00 C-Dfrd A (sf) 6.00 D-Dfrd BBB (sf) 5.00 E-Dfrd BB (sf) 3.40 F-Dfrd B (sf) 1.60 G-Dfrd CCC (sf) 2.00 X-Dfrd NR 1.50 *S&P's preliminary ratings address timely payment of interest and ultimate payment of principal on the class A notes and ultimate payment of interest and principal on the other classes. When a deferred class of notes becomes the most senior, interest must be paid promptly. NR--Not rated. ============= I R E L A N D ============= ARES EUROPEAN XIV: Moody's Affirms B2 Rating on EUR5.1MM F Notes ---------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by Ares European CLO XIV DAC: EUR20,000,000 Class B Senior Secured Floating Rate Notes due 2034, Upgraded to Aaa (sf); previously on Oct 24, 2024 Definitive Rating Assigned Aa1 (sf) EUR15,100,000 Class C Senior Secured Deferrable Floating Rate Notes due 2034, Upgraded to Aa3 (sf); previously on Oct 24, 2024 Definitive Rating Assigned A2 (sf) EUR14,100,000 Class D Senior Secured Deferrable Floating Rate Notes due 2034, Upgraded to Baa1 (sf); previously on Oct 24, 2024 Definitive Rating Assigned Baa3 (sf) Moody's have also affirmed the ratings on the following notes: EUR171,200,000 (Current outstanding amount EUR110,759,047) Class A Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Oct 24, 2024 Definitive Rating Assigned Aaa (sf) EUR10,300,000 Class E Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba2 (sf); previously on Oct 24, 2024 Definitive Rating Assigned Ba2 (sf) EUR5,100,000 Class F Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed B2 (sf); previously on Oct 24, 2024 Definitive Rating Assigned B2 (sf) Ares European CLO XIV DAC, issued in November 2020 and later refinanced in October 2024, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Ares European Loan Management LLP ("Ares"). Subsequent to the refinancing, reinvestment is not permitted and all sales and unscheduled principal proceeds received will be used to amortize the notes in sequential order. RATINGS RATIONALE The rating upgrades on the Class B, C and D notes are primarily a result of the deleveraging of the Class A notes following amortisation of the underlying portfolio since the last rating action in October 2024. The affirmations on the ratings on the Class A, E and F notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A notes have paid down by approximately EUR60.44 million (35.3% of original balance) since the last rating action in October 2024. As a result of the deleveraging, over-collateralisation (OC) has increased across the capital structure. According to the trustee report dated August 2025[1] the Class A/B, Class C, Class D, Class E and Class F OC ratios are reported at 146.14%, 131.01%, 119.46%, 112.24% and 108.97% compared to November 2024[2] levels of 134.08%, 124.27%, 116.32%, 111.12% and 108.72%, respectively. The deleveraging and OC improvements primarily resulted from high prepayment rates of leveraged loans in the underlying portfolio. Most of the prepaid proceeds have been applied to amortise the liabilities. All else held equal, such deleveraging is generally a positive credit driver for the CLO's rated liabilities. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal primarily on the basis of its current collateral pool characteristics. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodologies and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR192.8m Defaulted Securities: EUR2m Diversity Score: 44 Weighted Average Rating Factor (WARF): 3171 Weighted Average Life (WAL): 3 years Weighted Average Spread (WAS) (before accounting for Euribor/reference rate floors): 3.94% Weighted Average Coupon (WAC): 4.34% Weighted Average Recovery Rate (WARR): 43.41% Par haircut in OC tests and interest diversion test: 0% The default probability derives from the credit quality of the collateral pool and Moody's expectations 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 Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Moody's note that the August 2025 trustee report was published at the time Moody's were completing Moody's analysis of the July 2025 data. Key portfolio metrics such as WARR, diversity score, weighted average spread and life exhibit little or no change between these dates. The incremental EUR19.1 million of principal proceeds reported in August 2025 had been incorporated in Moody's model runs. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in May 2024. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank and swap provider, using the methodology "Structured Finance Counterparty Risks" published in May 2025. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. 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 Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. AURIUM CLO III: Moody's Ups Rating on EUR10.5MM Cl. F Notes to B1 ----------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by Aurium CLO III Designated Activity Company: EUR25,500,000 Class C Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Aaa (sf); previously on Aug 21, 2023 Affirmed A1 (sf) EUR18,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Aa3 (sf); previously on Aug 21, 2023 Affirmed Baa1 (sf) EUR22,500,000 Class E Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Ba1 (sf); previously on Aug 21, 2023 Affirmed Ba2 (sf) EUR10,500,000 Class F Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to B1 (sf); previously on Aug 21, 2023 Affirmed B2 (sf) Moody's have also affirmed the ratings on the following notes: EUR220,000,000 (Current outstanding amount EUR83,866,779) Class A Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Aug 21, 2023 Affirmed Aaa (sf) EUR41,500,000 Class B-1 Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Aug 21, 2023 Upgraded to Aaa (sf) EUR10,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2030, Affirmed Aaa (sf); previously on Aug 21, 2023 Upgraded to Aaa (sf) Aurium CLO III Designated Activity Company, issued in May 2017 and refinanced in October 2019, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Spire Management Limited. The transaction's reinvestment period ended in April 2021. RATINGS RATIONALE The rating upgrades on the Class C, Class D, Class E and Class F notes are primarily a result of the deleveraging of the senior notes following amortisation of the underlying portfolio since the payment date in October 2024. The affirmations on the ratings on the Class A, Class B-1 and Class B-2 notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A notes have paid down by approximately EUR133.7 million (61%) in the last 12 months and EUR136.1 million (61.9%) since closing. As a result of the deleveraging, over-collateralisation (OC) has increased across the capital structure. According to the trustee report dated July 2025[1] the Class A/B, Class C, Class D, Class E and Class F OC ratios are reported at 170.92%, 143.83%, 129.35%, 114.90% and 109.21% compared to August 2024[2] levels of 137.16%, 125.28%, 118.06%, 110.14% and 106.79%, respectively. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodologies and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR232,651,175 Defaulted Securities: EUR0 Diversity Score: 29 Weighted Average Rating Factor (WARF): 2783 Weighted Average Life (WAL): 2.8 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.57% Weighted Average Coupon (WAC): 3.35% Weighted Average Recovery Rate (WARR): 43.1% Par haircut in OC tests and interest diversion test: none The default probability derives from the credit quality of the collateral pool and Moody's expectations 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 Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Moody's note that the July 31, 2025 trustee report was published at the time Moody's were completing Moody's analysis of the July 09, 2025 data. Moody's analysis considered the updated information. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in May 2024. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Structured Finance Counterparty Risks" published in May 2025. 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 Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. CONTEGO CLO III: Fitch Assigns 'B-(EXP)sf' Rating to Cl. F-RR Notes ------------------------------------------------------------------- Fitch Ratings has assigned Contego CLO III DAC Reset expected ratings, as detailed below. Entity/Debt Rating ----------- ------ Contego CLO III DAC Class A-RR XS3144694455 LT AAA(EXP)sf Expected Rating Class B-RR XS3144694539 LT AA(EXP)sf Expected Rating Class C-RR XS3144695007 LT A(EXP)sf Expected Rating Class D-RR XS3144695189 LT BBB-(EXP)sf Expected Rating Class E-RR XS3144695775 LT BB-(EXP)sf Expected Rating Class F-RR XS3144696153 LT B-(EXP)sf Expected Rating Sub notes 2025 XS3145684943 LT NR(EXP)sf Expected Rating Transaction Summary Contego CLO III DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds will be used to fund a portfolio with a target par of EUR400 million that is actively managed by Five Arrows Managers LLP. The CLO will have a 3.1-year reinvestment period and a seven-year weighted average life (WAL) test at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors to be in the 'B'/'B-' category. The Fitch weighted average rating factor of the identified portfolio is 25.7. High Recovery Expectations (Positive): At least 90% of the portfolio will comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 61.7%. Diversified Portfolio (Positive): The transaction includes two Fitch test matrices at closing, corresponding to a seven-year WAL. Both matrices correspond to a top 10 obligor concentration limit at 20%. The matrix set corresponds to fixed-rate limits of 5% and 10%. The transaction also has various concentration limits, including a maximum exposure to the three largest Fitch-defined industries in the portfolio at 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a 3.1-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL used for the transaction stress portfolio and matrices analysis is 12 months less than the WAL covenant, to account for structural and reinvestment conditions post-reinvestment period, including the OC tests and Fitch 'CCC' limitation passing post reinvestment, among others. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) across all ratings and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would lead to downgrades of one notch for the class B-RR to E-RR notes, to below 'B-sf' for the class F-RR notes, and have no impact on the class A-RR notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio, the class C-RR notes have a one-notch cushion, the class B-RR, D-RR, E-RR and F-RR notes a two-notch cushion and there is no rating cushion for the class A notes. Should the cushion between the identified portfolio and the stress portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR across all ratings and a 25% decrease of the RRR across all ratings of the stressed portfolio would lead to downgrades of up to four notches for the notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR across all ratings and a 25% increase in the RRR across all ratings of Fitch's stress portfolio would lead to upgrades of up to three notches, except for the 'AAAsf' rated notes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on Fitch's stress portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, meaning the notes are able to withstand larger than expected losses for the transaction's remaining life. After the end of the reinvestment period, upgrades may occur in case of stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses on the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Contego CLO III DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. =================== L U X E M B O U R G =================== FOUNDEVER GROUP: Moody's Lowers CFR & Senior Secured Debt to Caa2 ----------------------------------------------------------------- Moody's Ratings downgraded Foundever Group S.A.'s ("Foundever") corporate family rating to Caa2 from B3, and its probability of default rating to Caa2-PD from B3-PD. Concurrently, Moody's downgraded Foundever's senior secured bank credit facility rating (consisting of a $250 million multicurrency revolving credit facility due 2026 and EUR1.0 billion term loan B due 2028) to Caa2 from B3, and the rating on the $1.4 billion senior secured term loan B due 2028 issued by Foundever Worldwide Corporation to Caa2 from B3. The outlook for both entities remains stable. Foundever is a global provider of customer experience business process outsourcing ("CX BPO") services. The downgrade of the CFR to Caa2 from B3 reflects Foundever's weaker than anticipated operating performance, including soft volume growth and pricing pressure that are eroding profitability and margin. With financial leverage levels high, potential disruption risks from developing GenAI technologies, and market valuations for CX BPO firms depressed, Foundever faces a higher risk of default and weakening recovery expectations. Refinancing risk has also increased as the company's debt maturities loom closer. Moody's believes Foundever has limited time to execute its turnaround plans and reduce leverage before it will need to access the capital markets to refinance its 2027 debt maturities. Foundever has launched a multi-year transformation aimed at streamlining global operations and refining its product portfolio to achieve sustainable, long-term growth. These measures are expected to yield substantial cost savings over the coming years. Nevertheless, Moody's believes there is high uncertainty regarding the company's ability to execute its strategic plan, reverse negative revenue trend and bolster profit margins. Potential disruption from developing GenAI technologies that could increase the required levels of investment to remain competitive also increase uncertainty around the turnaround strategy. Moody's projects the company's debt/EBITDA leverage will be sustained above 7.5x, EBITA/interest expense below 1x and about $40-50 million of cash flow deficits over the next two years, even as management pursues additional cost reductions and operational improvements. ESG considerations were a key driver of the rating action, reflecting very high governance risks from the company's tolerance for high financial leverage and its inconsistent track record of meeting financial and operating guidance targets. RATINGS RATIONALE Foundever's Caa2 CFR reflects the company's: (1) highly leveraged capital structure, with debt/EBITDA projected above 8x by the end of 2025; (2) ongoing operating headwinds due to macroeconomic factors, including revenue contraction, meaningful margin erosion and cash flow deficits; (3) concentrated operations within the highly competitive and fragmented CX BPO industry that requires considerable investment in technological innovation and value-added capabilities to maintain a strong market position and to address client's increasingly complex next generation needs; and (4) the uncertainty around the rapid evolution of GenAI and the potential disruption on the CX BPO market, which could erode the company's revenue and reduce already low operating margins. All financial metrics cited reflect Moody's standard adjustments. The rating is supported by the company's: (1) solid global footprint with a diversified portfolio of service offerings and technical capabilities, placing it among the top three global CX BPO providers as measured by total revenue; (2) long-standing relationships with large customers across diverse industry verticals and geographies; and (3) favorable fundamentals for outsourcing end-to-end CX BPO solutions. Moody's expects Foundever to have weak liquidity over the next 12-15 months. Cash on hand, projected at over $350 million by June 30, 2025, will decline in the second half of 2025 due to seasonal working capital needs. Moody's projects a free cash flow deficit of around $40-50 million over the next 12-15 months. The company's $250 million revolving credit facility expires in August 2026 and although it is undrawn, Moody's do not considered the facility as a source of liquidity because it is current. There are no financial maintenance covenants applicable to the term loans. However, access to the revolver is subject to compliance with a springing consolidated net first-lien debt to consolidated EBITDA ratio covenant that cannot exceed 6.7x (based on the credit agreement definition) and is tested when borrowings exceed 40% of availability. Moody's do not expect the covenant to be triggered over the near term. The stable outlook reflects Moody's expectations that the company will continue to face operating headwinds over the next 12-18 months, but realize cost savings through efficiency initiatives and repositioning service delivery to lower cost regions. Moody's projects Foundever's debt/EBITDA will be sustained above 7.5x. The stable outlook also assumes the company will address its 2026 revolver expiration over the coming months. The Caa2 rating on Foundever's senior secured debt rating (revolver and term loans) reflects both the PDR of Caa2-PD and Moody's loss given default assessment. As there is no other meaningful debt in the capital structure, the facility is rated in line with the Caa2 CFR. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be downgraded if Foundever's operating performance continues to deteriorate, leading to further weakening of liquidity, including lower cash balances and a lack of access to funds under the revolving credit facility. The ratings could also be lowered if Moody's believes the risk of default has increased, or Moody's recovery expectations for debt instruments in a distressed scenario diminish. The ratings could be upgraded if Foundever significantly improves its operating results by stabilizing revenue, increasing its EBITDA margin and generating positive free cash flow on sustained basis. An upgrade would also require the company to reduce its debt/EBITDA leverage, address debt refinancing risks and adopt a less aggressive financial strategy. Foundever Group S.A., domiciled in Luxembourg, is a leading global provider of CX BPO products and solutions. Foundever is projected to generate annual revenue of around $3.3 billion in 2025. The company is owned by the Creadev Investment Fund (Creadev), which is controlled by the Mulliez family of France. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. Foundever's Caa2 rating is two notches below the scorecard-indicated outcome of B3. The difference is explained by Moody's expectations for sustained operating softness, refinancing risks, weak liquidity, exposure to technological disruption, and diminishing loss given default prospects. =========== S W E D E N =========== NORTHVOLT AB: Lyten to Secure Carmaker Support for Co's Revival --------------------------------------------------------------- Marie Mannes, Alessandro Parodi and Gilles Guillaume of Reuters report that Silicon Valley battery startup Lyten faces skepticism from automakers as it takes over assets of bankrupt Swedish battery maker Northvolt, with industry experts warning that full-scale European production will remain uncertain for years. Lyten, which develops lithium-sulfur batteries, said on August 7, 2025 it acquired Northvolt's facilities at a steep discount. According to the report, the move could revive hopes for a European battery champion, but investors and customers burned by Northvolt's collapse remain cautious, saying they want proof Lyten can deliver consistent production at scale. The company will continue Northvolt's lithium-ion output while advancing its own lithium-sulfur cells, a lighter and cheaper alternative that reduces reliance on Chinese minerals but remains in early stages. CEO Dan Cook said Lyten hopes to regain Northvolt's former clients, including Volkswagen brands, by proving performance with a single pilot customer, according to Reuters. Carmakers have been hesitant, the report points out. BMW, which canceled a EUR2 billion order with Northvolt last 2024, said battery supply deals require long lead times, while Volvo declined to comment. Scania called it "too early" to consider orders. Stellantis, which owns a 2% stake in Lyten, said any agreements would depend on validation, scale-up and local production, the report states. Northvolt collapsed in March with $8 billion in debt after losing orders and investor support, despite ramping output at its Swedish plant. Its downfall highlights the financial and technical risks facing European battery makers amid softer EV demand and heavy reliance on secured debt, according to report. Lyten says the acquisition could accelerate large-scale lithium-sulfur production to 2028, but experts caution the technology is unlikely to be viable for EVs before 2030. Analysts warn that without sustained government subsidies and fresh investment, Europe's battery ambitions could again falter. About Northvolt AB Northvolt AB was established in 2016 in Stockholm, Sweden. Pioneering a sustainable model for battery manufacturing, the company has received orders from several leading automotive companies. The company is currently delivering batteries from its first gigafactory, Northvolt Ett, in Skelleftea, Sweden and from its R&D and industrialization campus, Northvolt Labs, in Vasteras, Sweden. On Nov. 21, 2024, Northvolt AB and eight affiliated debtors filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (Bankr. S.D. Tex. Case No. 24-90577). The cases are before the Honorable Alfredo R. Perez. Northvolt is being advised by Teneo as its restructuring and communications advisor. Kirkland & Ellis LLP, A&O Shearman and Mannheimer Swartling Advokatbyra AB are serving as legal counsel. The company has also engaged Rothschild & Co to run its marketing process. Stretto is the claims agent. =========================== U N I T E D K I N G D O M =========================== AETHEL CARE: Enters Administration ---------------------------------- Aethel Care Homes Limited fell into administration earlier this month, with Philip Stephenson, Oliver Haunch and Daniel Smith of Grant Thornton appointed as joint administrators, according to Business Sale Report. Aethel Care Homes Limited is a care home operator based in London. In the year to April 30 2023, when the company was trading as Chanctonbury Health Care Limited, it reported turnover of around GBP5.5 million, approximately level with the previous year, but fell from a post-tax profit of around GBP428,000 to a loss of nearly GBP1.5 million. At the time, its fixed assets were valued at GBP12.4 million and current assets at GBP529,000, with net assets standing at GBP2.6 million. APEX TRAFFIC: Falls Into Administration, 119 Jobs Affected ---------------------------------------------------------- Apex Traffic Management Limited has fallen into administration following a petition to Hamilton Sheriff Court by its directors, according to Business Sale Report. The collapse of the Uddingston company has resulted in the loss of 119 jobs across the firm's sites, notes the report. Business Sale relates that Apex Traffic Management, which reportedly generated turnover of GBP9.7 million, provided road barriers and signage, with customers including Highways England, Amey Construction, Transport Scotland and Lanes Group. However, the business fell into administration on August 21, with Kenneth Craig and Kevin Mapstone of Begbies Traynor appointed as joint administrators, Business Sale says. Begbies Traynor partner Thomas McKay will work with the joint administrators to oversee the liquidation of the business and its assets and the consultation process with staff. According to Mr McKay, Apex's directors "had little choice but to place the business into administration after receiving a petition by HMRC for liquidation, and after consultation with the firm’s secured creditor Lloyds Commercial Finance," relates the report. McKay stated that the business' cash flow had been hit by tightening margins and slower debt recovery, along with the increased cost of trading driven by high employers' National Insurance contributions and minimum wage, the report relays. As a result, McKay said, the firm was "unable to meet its ongoing obligations and the business was simply not viable." He continued: "Apex was a highly regarded provider of traffic management services on roads and highways across the UK, and we are working closely with all their customers to help ensure that, where ongoing projects were being delivered, these customers can find alternative suppliers to ensure safe operation of the highways." The joint administrators are working with GMG Asset Valuation to maximise the return to creditors from a sale of the firm’s assets, with interested parties and creditors urged to make enquiries directly with Begbies Traynor's Glasgow office, discloses the report. Apex Traffic Management Limited is a South Lanarkshire-based traffic management contractor. In the company's accounts for the year to March 31 2024, its fixed assets were valued at around GBP525,000 and current assets at GBP2.7 million, with net assets amounting to slightly over GBP753,000. AZURE FINANCE 3: Moody's Affirms B1 Rating on GBP3.7MM Cl. F Notes ------------------------------------------------------------------ Moody's Ratings has upgraded the ratings of three notes in Azure Finance No.3 plc. The rating action reflects the increased levels of credit enhancement for the affected notes. Moody's affirmed the ratings of the notes that had sufficient credit enhancement to maintain their current ratings. GBP27.1M Class B Notes, Upgraded to Aaa (sf); previously on Nov 12, 2024 Upgraded to Aa1 (sf) GBP18.4M Class C Notes, Upgraded to Aa2 (sf); previously on Nov 12, 2024 Upgraded to Aa3 (sf) GBP9.2M Class D Notes, Upgraded to A2 (sf); previously on Nov 12, 2024 Affirmed Baa3 (sf) GBP6.1M Class E Notes, Affirmed Ba2 (sf); previously on Nov 12, 2024 Affirmed Ba2 (sf) GBP3.7M Class F Notes, Affirmed B1 (sf); previously on Nov 12, 2024 Affirmed B1 (sf) GBP17.2M Class X Notes, Affirmed Caa1 (sf); previously on Nov 12, 2024 Affirmed Caa1 (sf) Azure Finance No.3 plc is a static cash securitisation of auto receivables extended by Blue Motor Finance Limited (NR) to obligors located in the United Kingdom. The portfolio consists of hire purchase agreements extended to private obligors. RATINGS RATIONALE The rating action is prompted by an increase in credit enhancement for the affected tranches. Revision of Key Collateral Assumptions: The collateral performance of the transaction is largely stable. Total delinquencies have slightly increased in the past year, with 60 days plus arrears currently standing at 1.30% of current pool balance up from 1.03% at the last rating action. Cumulative defaults currently stand at 6.91% of original pool balance, with a current pool factor of 24.70%, up from 5.23% at the last rating action when pool factor was at 43.94%. Moody's maintained the current default probability assumption at 10% of the current portfolio balance and the assumption for the fixed recovery rate at 40%. Moody's also maintained the portfolio credit enhancement at 28%. Increase in Available Credit Enhancement Sequential amortization led to the increase in the credit enhancement available in this transaction. For instance, the credit enhancement for the upgraded Class B, C and D Notes increased to 63.53%, 31.30% and 16.14% from 36.21%, 17.59% and 3.99%, respectively, since the last rating action. Counterparty Exposure Moody's considered how the liquidity available in the transaction and other mitigants support continuity of note payments, in case of servicer default (servicer is Blue Motor Finance Limited, not rated). The senior reserve fund provides liquidity support to Class B, however, Classes C to F do not benefit from it. The junior reserve fund which provides liquidity support to classes C to F is currently not funded. As a result, the rating of the Class C notes is constrained by operational risk. The principal methodology used in these ratings was "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in June 2025. Factors that would lead to an upgrade or downgrade of the ratings: Factors or circumstances that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expected, (2) an increase in available credit enhancement and (3) improvements in the credit quality of the transaction counterparties. Factors or circumstances that could lead to a downgrade of the ratings include (1) an increase in sovereign risk, (2) performance of the underlying collateral that is worse than Moody's expected, (3) deterioration in the notes' available credit enhancement and (4) deterioration in the credit quality of the transaction counterparties. CLERMA (GB): Fell Into Administration ------------------------------------- Clerma (GB) Limited fell into administration earlier this month, with William Batty and Hugh Jesseman of Anthony Batty & Company appointed as joint administrators, according to Business Sale Report. Clerma (GB) Limited was an operator of two footwear and accessories retail stores in London, trading as Clergerie. In accounts for the year to December 31 2022, the company reported turnover of GBP1.3 million, up from around GBP884,000 the year earlier, while moving from a post-tax loss of around GBP96,000 to a profit of approximately GBP1.6 million. At the time, the firm's assets were valued at around GBP846,000, but net liabilities exceeded GBP87,000. HGL REALISATIONS: FRP Advisory Named as Administrators ------------------------------------------------------ HGL Realisations 1 Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts in Manchester, Insolvency and Companies List (ChD) Court Number: CR-2025-001119, and Simon Farr and Anthony Collier of FRP Advisory Trading Limited, were appointed as administrators on Aug. 11, 2025. HGL Realisations, fka Huler Group Limited, specialized in business and domestic software development. Its registered office is at Three Counties House, Festival Way, Stoke On Trent, ST1 5PX to be changed to C/o FRP Advisory Trading Limited, 4th Floor, Abbey House, Booth Street, Manchester, M2 4AB. Its principal trading address is at Three Counties House, Festival Way, Stoke On Trent, ST1 5PX. The administrators can be reached at: Simon Farr Anthony Collier FRP Advisory Trading Limited 4th Floor, Abbey House, Booth Street Manchester, M2 4AB Further details contact: Ben Smith Email: cp.manchester@frpadvisory.com JOLLIFFE & CO: Firm Appoints Administrators ------------------------------------------- The Law Society Gazette reports that Jolliffe & Co LLP, one of the oldest solicitors firms in the historic city of Chester, has appointed administrators. Hilary Pasco and Andrew Poxon of Leonard Curtis were appointed as joint administrators, the report notes. Based in the city center, Jolliffes was founded in 1866 and its most recent accounts, covering the year ended March 2024, show that it employed 23 people (that number having come down from 32 in the previous year). The firm advised on corporate, commercial, employment, commercial property, litigation, residential conveyancing and wills, trusts and probate. LIKE DIGITAL: FRP Advisory Named as Administrators -------------------------------------------------- Like Digital Media Ltd was placed into administration proceedings in the High Court of Justice Business and Property Courts in Manchester, Insolvency & Companies List (ChD) Court Number: CR-2025-MAN-001134, and Kelly Burton and Joseph Fox of FRP Advisory Trading Limited, were appointed as administrators on Aug. 12, 2025. Like Digital Media specialized in website development. Its registered office is at The Stable Yard Vicarage Road, Stony Stratford, Milton Keynes, MK11 1BN to be changed to FRP Advisory Trading Limited, The Manor House, 260 Ecclesall Road South, Sheffield, S11 9PS. Its principal trading address is at The Stable Yard Vicarage Road, Stony Stratford, Milton Keynes, MK11 1BN. The administrators can be reached at: Kelly Burton Joseph Fox FRP Advisory Trading Limited The Manor House 260 Ecclesall Road South, Sheffield, S11 9PS Further details contact: Anya Jenkins Email: Anya.jenkins@frpadvisory.com ODYSSEY FUNDING: S&P Assigns Prelim BB (sf) Rating to X-Dfrd Notes ------------------------------------------------------------------ S&P Global Ratings assigned its preliminary credit ratings to Odyssey Funding PLC's class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, F-Dfrd, and X-Dfrd notes. At closing the issuer will also issue unrated class G, H, variable funding notes (VFN), and RC1 and RC2 residual certificates. Odyssey Funding PLC is an RMBS transaction securitizing a portfolio of owner-occupied first-lien (1.4%) and second-lien (98.6%) mortgage loans secured against properties in the U.K. The loans were originated by Selina Finance Ltd. between 2021 and 2025. Of the preliminary pool, 65.7% are home equity loans and 34.3% are home equity line of credit (HELOC) loans (assuming the HELOCs are fully drawn). S&P said, "Our preliminary ratings address the timely payment of interest and the ultimate payment of principal on the class A notes and the ultimate payment of interest and principal on the other rated notes. Our preliminary ratings also address timely receipt of interest and full immediate repayment of previously deferred interest on the class B–Dfrd to F-Dfrd notes when they become the most senior class of notes outstanding. "In our standard cash flow analysis, the class F-Dfrd notes face shortfalls at all rating levels. However, in the steady state scenario, where we model actual fees and no spread compression, these notes face no shortfalls at the 'B' rating level. Therefore, in our view, the payment of interest and principal on this class of notes does not depend on favorable business, financial, and economic conditions. We therefore assigned our 'B- (sf)' rating to this class of notes. "The issuer is an English special-purpose entity (SPE), which we consider to be bankruptcy remote, subject to our review of the executed transaction documents and legal opinions." The issuer is exposed to Citibank N.A., London Branch as the transaction account provider and the swap collateral account provider, Lloyds Bank PLC and HSBC Innovation Bank Ltd. as the collection account providers, and BNP Paribas as swap counterparty. The documented replacement mechanisms for the account providers adequately mitigate the transaction's exposure to counterparty risk, in line with S&P's counterparty criteria. Based on S&P's initial analysis, it does not anticipate any rating constraints under its counterparty, operational risk, or structured finance sovereign risk criteria. Preliminary ratings Class Prelim. Rating Prelim. class size (%) A AAA (sf) 72.50 B-Dfrd* AA- (sf) 9.50 C-Dfrd* A- (sf) 7.00 D-Dfrd* BBB- (sf) 4.00 E-Dfrd* BB-(sf) 3.00 F-Dfrd* B- (sf) 1.50 G NR 1.25 H NR 1.25 X-Dfrd* BB (sf) 2.00 VFN NR N/A RC1 Residual Certs NR N/A RC2 Residual Certs NR N/A *S&P's preliminary rating on this class of notes considers the potential deferral of interest payments. NR--Not rated. N/A--Not applicable. VFN--Variable funding notes. ********* 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. 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