260107.mbx

260107.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 7, 2026, Vol. 27, No. 5 Headlines I R E L A N D ARCANO EURO III: Fitch Gives 'B-sf' Rating to Class F Notes BBAM EUROPEAN VIII: Fitch Gives 'B-sf' Rating to Class F Notes L U X E M B O U R G ODYSSEY EUROPE: S&P Withdraws 'CCC-' ICR Following Debt Redemption U N I T E D K I N G D O M 30 BRUTON: FRP Advisory Appointed as Joint Administrators ALBION HOLDCO: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ALBION HOLDCO: S&P Alters Outlook to Negative, Affirms 'BB-' ICR APIC UK: Begbies Traynor Appointed as Administrators CONTRACT SOLUTIONS: FRP Advisory Appointed as Joint Administrators FOSSE SIL: PKF Littlejohn Appointed as Joint Administrators ICKENHAM TRAVEL: Begbies Traynor Appointed as Administrators INDIVUS LTD: S&W Partners Appointed as Joint Administrators INNOVATION CONTROL: FRP Advisory Appointed as Administrators LUNE VALLEY: Leonard Curtis Appointed as Joint Administrators RICHARD HOUSE: S&W Partners Appointed as Joint Administrators SLIDERS UK: Leonard Curtis Appointed as Joint Administrators SPRINTSHIFT COMMERCIAL: Opus Restructuring Named as Administrators TD TOM DAVIES: Opus Restructuring Appointed as Joint Administrators THURSTON HOLDINGS: Leonard Curtis Appointed as Joint Administrators TITCHFIELD CD: Azets Holdings Appointed as Joint Administrators TRENPORT PROPERTY: Interpath Advisory Appointed as Administrators - - - - - ============= I R E L A N D ============= ARCANO EURO III: Fitch Gives 'B-sf' Rating to Class F Notes ----------------------------------------------------------- Fitch Ratings has assigned Arcano Euro CLO III DAC final ratings. RATING ACTIONS Arcano Euro CLO III DAC A XS3229391084 LT AAAsf New Rating B XS3229391241 LT AAsf New Rating C XS3229391837 LT Asf New Rating D XS3229392215 LT BBB-sf New Rating E XS3229392561 LT BB-sf New Rating F XS3229393023 LT B-sf New Rating Subordinated Notes XS3229393452 LT NRsf New Rating TRANSACTION SUMMARY Arcano Euro 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 were used to purchase a portfolio with a target par of EUR350 million. The portfolio is actively managed by Arcano Loan Advisors S.L. and Arcano Capital SGIIC, S.A. The collateralised loan obligation (CLO) has a five-year reinvestment period, and an 8.5-year weighted average life test (WAL). KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'Bsf'. The Fitch-calculated weighted average rating factor (WARF) of the identified portfolio is 24.1. High Recovery Expectations (Positive): At least 90% of the portfolio 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-calculated weighted average recovery rate (WARR) of the identified portfolio is 61.2%. Diversified Portfolio (Positive): The transaction includes various portfolio 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 an approximately five-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. The transaction includes six Fitch matrices. Each matrix set corresponds to two different fixed-rate asset limits at 5% and 12.5%. Four of the matrices are effective on or after closing, corresponding to an 8.5-year WAL and an extended nine-year WAL. Another two matrices are effective 18 months after closing, corresponding to a 7.5-year WAL, and are subject to the collateral balance (treating defaulted obligations at their Fitch-calculated collateral value) being at least equal to the reinvestment target par balance. WAL Step-Up Feature (Neutral): The transaction can extend the WAL by six months on the step-up date, which is six months after closing. The WAL extension is subject to conditions including the satisfaction of collateral quality tests and the collateral balance (defaults at Fitch-calculated collateral value) being no less than the reinvestment target par balance. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio analysis was reduced by 12 months. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period, which include passing the coverage tests and the Fitch 'CCC' maximum limit, and a WAL test covenant that progressively steps down. In Fitch's opinion, 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) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class A notes, and lead to downgrades of one notch each for the class D and E notes, two notches each for the class B and C notes and to below 'B-sf' for the class F notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high defaults and portfolio deterioration. The class D, E and F notes each have a rating cushion of two notches and the class B and C notes each have a cushion of one notch, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches each for the class A to D notes and to below 'B-sf' for the class E and F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to two notches each for the rated notes, except for the 'AAAsf' notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than- expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. TRANSACTION SUMMARY BBAM European CLO VIII 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 were used to fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by RBC Global Asset Management (UK) Limited. The collateralised loan obligation (CLO) has a 4.6-year reinvestment period and an 8.5-year weighted average life test (WAL) test at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'. The Fitch weighted average rating factor of the identified portfolio is 23.7. High Recovery Expectations (Positive): At least 90% of the portfolio comprises 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 61.2%. Diversified Asset Portfolio (Positive): The transaction includes various other 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 four matrices: two are effective at closing and two are effective one year after closing, all with fixed-rate limits of 5% and 10%. All four matrices are based on a top 10 obligor concentration limit of 20%. The closing matrices correspond to an 8.5-year WAL test while the forward matrices correspond to an eight-year WAL test. The switch to the forward matrices is subject to the aggregate collateral balance (defaults at Fitch collateral value) being at least at the reinvestment target par balance. The transaction has reinvestment criteria governing the reinvestment 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. WAL Step-Up Feature (Neutral): The transaction can extend the WAL test by half a year on the date falling six months after closing . The extension is subject to conditions, including passing the Fitch weighted average spread, weighted average rating factor and weighted average recovery rate tests, coverage tests, and the aggregate collateral balance with defaulted assets carried at their collateral value being at least equal to the reinvestment target par balance. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant at the issue date (subject to a floor of six years), to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These include passing the coverage tests and the Fitch 'CCC' bucket limitation test and a WAL covenant that progressively steps down over time, both before and after the end of the reinvestment period. 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) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would result in downgrades of one notch each on the class B to E notes and to below 'B-sf' for the class F notes. The class A notes would not be affected. The class B to F notes each have a rating cushion two notches due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of three notches each for the class A and D notes, four notches each for the class B and C notes, and to below 'B-sf' for the class E and F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of two notches each for the class B to D notes and three notches each for the class E and F notes. The 'AAAsf' rated notes are at the highest level on Fitch's scale and cannot be upgraded. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than- expected losses for the transaction's remaining life. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. BBAM EUROPEAN VIII: Fitch Gives 'B-sf' Rating to Class F Notes -------------------------------------------------------------- Fitch Ratings has assigned BBAM European CLO VIII DAC final ratings. RATING ACTIONS BBAM European CLO VIII DAC Class A Notes XS3223930671 LT AAAsf New Rating Class B Notes XS3223930911 LT AAsf New Rating Class C Notes XS3223931133 LT Asf New Rating Class D Notes XS3223931489 LT BBB-sf New Rating Class E Notes XS3223931562 LT BB-sf New Rating Class F Notes XS3223931729 LT B-sf New Rating Subordinated Notes XS3223932024 LT NRsf New Rating TRANSACTION SUMMARY BBAM European CLO VIII 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 were used to fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by RBC Global Asset Management (UK) Limited. The collateralised loan obligation (CLO) has a 4.6-year reinvestment period and an 8.5-year weighted average life test (WAL) test at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'. The Fitch weighted average rating factor of the identified portfolio is 23.7. High Recovery Expectations (Positive): At least 90% of the portfolio comprises 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 61.2%. Diversified Asset Portfolio (Positive): The transaction includes various other 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 four matrices: two are effective at closing and two are effective one year after closing, all with fixed-rate limits of 5% and 10%. All four matrices are based on a top 10 obligor concentration limit of 20%. The closing matrices correspond to an 8.5-year WAL test while the forward matrices correspond to an eight-year WAL test. The switch to the forward matrices is subject to the aggregate collateral balance (defaults at Fitch collateral value) being at least at the reinvestment target par balance. The transaction has reinvestment criteria governing the reinvestment 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. WAL Step-Up Feature (Neutral): The transaction can extend the WAL test by half a year on the date falling six months after closing . The extension is subject to conditions, including passing the Fitch weighted average spread, weighted average rating factor and weighted average recovery rate tests, coverage tests, and the aggregate collateral balance with defaulted assets carried at their collateral value being at least equal to the reinvestment target par balance. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant at the issue date (subject to a floor of six years), to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These include passing the coverage tests and the Fitch 'CCC' bucket limitation test and a WAL covenant that progressively steps down over time, both before and after the end of the reinvestment period. 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) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would result in downgrades of one notch each on the class B to E notes and to below 'B-sf' for the class F notes. The class A notes would not be affected. The class B to F notes each have a rating cushion two notches due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of three notches each for the class A and D notes, four notches each for the class B and C notes, and to below 'B-sf' for the class E and F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of two notches each for the class B to D notes and three notches each for the class E and F notes. The 'AAAsf' rated notes are at the highest level on Fitch's scale and cannot be upgraded. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than- expected losses for the transaction's remaining life. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. =================== L U X E M B O U R G =================== ODYSSEY EUROPE: S&P Withdraws 'CCC-' ICR Following Debt Redemption ------------------------------------------------------------------ S&P Global Ratings withdrew its 'CCC-' issuer credit rating on Odyssey Europe Holdco S.a.r.l. at the issuer's request, after it repaid its EUR200 million senior secured notes. At the time of the withdrawal, the outlook on the rating was negative, principally due to the refinancing risk of the notes, which have now been redeemed. At the same time, S&P withdrew its 'CCC-' issue rating on Odyssey's senior secured debt. =========================== U N I T E D K I N G D O M =========================== 30 BRUTON: FRP Advisory Appointed as Joint Administrators --------------------------------------------------------- 30 Bruton Street Retail Ltd, trading as Nanushka, was placed into administration proceedings in the High Court of Justice, Court No. CR-2025-009014, and Anthony Wright and Alastair Rex Massey of FRP Advisory Trading Limited were appointed as joint administrators on December 19, 2025. The company specialized in the wholesale of clothing and footwear and retail sale of clothing in specialized stores. Its registered office is at c/o FRP Advisory Trading Limited, 2nd Floor, 110 Cannon Street, London, EC4N 6EU. Its principal trading address is 30 Bruton Street, London, W1J 6QR. The joint administrators can be reached at: Anthony Wright Alastair Rex Massey FRP Advisory Trading Limited 2nd Floor 110 Cannon Street London, EC4N 6EU Further details contact: The Joint Administrators Tel: 020 3005 4000 Email: cp.london@frpadvisory.com Alternative contact: Ella Sutton ALBION HOLDCO: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Albion HoldCo Limited's Long-Term Issuer Default Rating at 'BB-'. The Outlook is Stable. Albion owns UK-based temporary power and energy supply provider Aggreko Limited. The affirmation and Stable Outlook reflect Fitch's expectation that Fitch-defined EBITDA leverage will decline to the negative rating sensitivity of 5.0x by end-2027, after a temporary rise to 5.2x at end-2026. This follows Albion's plan to raise a USD1,150 million fungible term loan B, of which around USD550 million will fund a shareholder distribution. The remaining funds will be used to pay down the revolving credit facility and add cash to the balance sheet to fund capex in 2026. The Stable Outlook reflects Fitch's expectation that Albion's revenue and profitability will continue to rise, supporting EBITDA growth and a gradual decline in gross leverage to under 5x. The rating reflects high, albeit improving, leverage and pressure on free cash flow (FCF), balanced by a strong business profile. Key Rating Drivers Dividend Recapitalisation: Albion plans to issue USD1,150 million of new debt, of which USD550 million will fund a special distribution to its sponsors. This is now the second dividend payment in the last two years after the company paid USD553 million in 2025. Fitch views an increase in borrowings to fund shareholder distributions as a rating constraint, especially when FCF is weak. This will leave the company no ratings headroom for underperformance or further debt-funded dividends. Leverage to Rise: Fitch expects the debt increase to raise Albion's EBITDA leverage metrics by about 0.5x a year over Fitch's forecast period 2026 to 2028, compared with Fitch's prior forecast. Fitch had previously included annual borrowing for capex but it did not include additional debt for another dividend. Fitch therefore forecasts a breach of the negative sensitivity of 5.0x EBITDA leverage at end-2026, reaching 5.2x, before returning to 5.0x at end-2027 and 4.6x at end-2028. Consistently Negative FCF a Constraint: Fitch said, "We anticipate negative FCF generation to 2028 as Albion expands its existing fleet while investing in the latest emissions-compliant engines and renewable technologies. Fitch expects large discretionary capex (70%-75% of the total) to 2028 to support its expansion, amounting to average growth capex of 20%-25% of revenue during this period. This sustained FCF deficit, which Fitch estimates could be as much as USD2.5 billion during 2025-2028, could reduce liquidity headroom and put pressure on the rating if forecast growth is not achieved." Strong Profitability to Continue: Fitch said, "We estimate Albion's Fitch-calculated EBITDA margin will be around 35% in 2025. Albion's margin has been stable at this level since 2023 a result of tight cost management, improved pricing, and cost-saving initiatives offsetting any inflation pressures. We believe there could be some margin improvement albeit only 1%-2% over the medium term, which will be driven by investments in human resources, economies of scale achieved from an expanded fleet, synergies from acquisitions, and growth of solar in the energy transition solutions business." Continued Revenue Growth: Fitch views revenue momentum as strong, with underlying group revenue up 17% to 9M25. Americas rose 20% on higher activity in data centres, utilities and events. Europe grew 26% with strong gains in building, services and construction, events and data centres. APAC increased 4%, supported by the commissioning of two large utility projects in the Philippines in 2024 and higher activity from oil and gas and data centres. This follows strongly on from the 14% growth achieved in 2023 and 2024. Fitch expects revenue growth to remain strong while Albion undertakes its expansion. Attractive Underlying Market: Fitch said, "We believe the energy market has long-term attractive structural drivers, due to ageing electrical infrastructure, particularly against the backdrop of the transition to renewable energy. Global demand for power is set to increase 2.5x by 2050, with the largest growth in demand likely in data centres. In addition, the gap between power supply and demand is widening, as governments remain reluctant to make large investments in fossil fuel-based power plants during energy transition." Peer Analysis Albion's revenue is slightly higher than Boels Topholding B.V.'s (BB-/Stable) but less than a third of Ashtead Group plc's (BBB/Stable). Its EBITDA margin is strong, and it is positioned between Ashtead and BCP V Modular Services Holdings III Limited (B/Stable). Allowing for the announced new term loan B and dividend recapitalisation, Albion's EBITDA leverage will be just over 5x, one of the highest among peers. Fitch's Key Rating-Case Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Mid-teens revenue growth for 2025-2028, driven by acquisitions and the company's expansionary capex to meet increasing demand - EBITDA margins to remain stable around 35%, supported by key cost-saving initiatives, focus on pricing and synergies stemming from acquisitions and growth in solar in the emissions trading system business offsetting inflationary pressures - No further dividend distribution after this proposed transaction - Increasing capex in line with management's expectations to 2028 RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage above 5.0x - EBITDA margin decreasing due to lower productivity on expansionary capex, margin-dilutive debt-funded acquisitions, loss of large customers or significant pricing pressure - EBITDA interest coverage below 3.0x Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage below 4.0x on a sustained basis - EBITDA interest coverage above 5.0x - Improvement of FCF margin to above 3% on a sustained basis Liquidity and Debt Structure Albion reported USD189 million of cash at end-September 2025. It had a USD980 million revolving credit facility (RCF), with USD585 million available. As part of the planned transaction, the RCF will be repaid and cash will be added to the balance sheet, which will improve liquidity. Fitch expects liquidity to be supported by additional debt to cover forecast negative FCF during the expansionary capex plan. Albion has flexibility to defer expansionary capex to restore FCF if required. RATING ACTIONS Rating Prior ------ ----- Albion HoldCo Limited LT IDR BB- Affirmed BB- Albion Financing 3 S.a.r.l. senior secured LT BB+ Affirmed RR2 BB+ Aggreko Holdings Inc senior secured LT BB+ Affirmed RR2 BB+ Albion Financing 1 S.a.r.l senior secured LT BB+ Affirmed RR2 BB+ ALBION HOLDCO: S&P Alters Outlook to Negative, Affirms 'BB-' ICR ---------------------------------------------------------------- S&P Global Ratings revised its outlook on Albion Holdco Ltd. (Aggreko) to negative from stable. S&P affirmed the issuer credit rating at 'BB-' and the issue ratings on the senior secured debt at 'BB-' with a '4' recovery rating (rounded estimate: 40%). The negative outlook reflects a more aggressive financial policy that tolerates higher leverage to prioritize shareholder returns. It also reflects thin rating headroom, at a time where any underperformance against S&P's base case could result in credit metrics commensurate with a lower rating. Aggreko launched a new $1.15 billion equivalent term loan B (TLB). It will use the proceeds make a $550 million dividend distribution to shareholders TDR Capital and I Squared Capital and to repay about $395 million of drawings under its revolving credit facility (RCF). The balance of proceeds will be earmarked for general corporate purposes. The proposed dividend recapitalization will result in narrow rating headroom for the next 12 months, with S&P Global Ratings-adjusted leverage spiking to about 5x in 2026 before trending back to about 4.6x in 2027. Although Aggreko is expected to continue to exhibit strong top line and absolute EBITDA growth, this growth is also dependent on an ambitious investment plan that requires a material uplift in capital expenditure (capex) through 2026. Underperformance against S&P's base case could result in credit metrics more commensurate with a lower rating. S&P said, "The proposed dividend recapitalization is temporarily overstretching the credit metrics in 2026 compared to our expectations for the current rating. Aggreko's second $550 million dividend recapitalization, following the $550 million dividend paid in May 2025, signals a shift toward a more aggressive financial policy that tolerates S&P Global Ratings-adjusted leverage spiking to about 5.0x in 2026. Aggreko will use the new debt proceeds to pay a dividend to its shareholders of about $550 million, to fully repay its RCF, currently about $395 million drawn, and to pay about $12 million of associated transaction fees. While we expect continued organic revenue growth and EBITDA growth through 2026, the consecutive debt-funded shareholder distributions are contributing to a considerable increase in gross debt and higher interest costs, weighing on Aggreko's credit metrics and deleveraging prospects. Pro forma leverage in 2026 of approximately 5.0x is higher than the 4.5x level we previously anticipated (and expect for a 'BB-' rating). Although we expect leverage to improve to about 4.6x in 2027, we still see an ongoing risk that continued growth will be used for further shareholder remuneration rather than leverage reduction. We forecast funds from operations (FFO) cash interest coverage of about 3.0x in 2025 and 2026 (2.6x in 2024)." S&P's forecast adjusted debt figure for fiscal 2026 includes: -- The $1.150 billion-equivalent new TLB; -- $1.415 billion equivalent of U.S. dollar TLB; -- $1.501 billion equivalent of euro TLB; -- $1.4 billion equivalent of U.S. senior secured notes; -- $993 million equivalent of euro senior secured notes; and -- Reported lease liabilities of about $220 million (assuming they gradually rise as the business grows). S&P said, "We assume that, in order to fund high capex, Aggreko will continue to exhibit a funding pattern whereby the RCF is gradually drawn down through a fiscal year and then the company terms out the drawings with a new TLB or notes issuance. We assume that the debt issuance required (to support our base case) is about $600 million per year, starting in the first quarter of 2027. "We do not net cash under our adjusted debt calculation because Aggreko is financial sponsor owned." Aggreko continues to grow its top line and absolute profitability at a high rate, but the high capex consumption needed to support this growth results in materially negative free operating cash flow (FOCF), which also limits deleveraging prospects. S&P expects FOCF to remain deeply negative over 2025-2027, driven by elevated capex required to expand and maintain the fleet in support of projected revenue growth, continued working capital outflows of $215 million in 2025 and more than $100 million in 2026, alongside higher interest costs and transaction expenses related to the dividend recapitalization. Although a portion of the capex is discretionary and can be reduced, doing so would likely weaken revenue growth and competitive positioning. While negative FOCF is broadly consistent with that of rental equipment issuers during periods of fleet expansion, the magnitude and duration of this deficit remains higher for Aggreko, which heightens execution risk and reliance on external funding. If the group does not achieve significant revenue growth and modest margin expansion over 2025-2026 to offset the planned spending, the negative FOCF would likely need to be funded by further incremental debt, which could weigh on the rating. Mergers and acquisitions (M&A) have also complemented growth since Aggreko was acquired by TDR Capital and I Squared Capital in 2021, but we expect this to moderate as management prioritizes organic fleet growth over acquisitions. The sponsors have repositioned Aggreko from a short-term rental provider to a global mobile energy solutions platform, increasing exposure to longer duration, higher-margin contracts across utilities, infrastructure, and data center end markets, as evidenced by the S&P Global Ratings-adjusted margin expansion to 35.6% in 2024 from 27.9% in 2022. The group's 2025 acquisitions are consistent with the strategy of expanding Aggreko's technical capabilities, geographical footprint, and exposure to energy transition related demand. These include: -- Mobil in Time, a Swiss and German provider of mobile energy solutions, strengthening Aggreko's presence in gas and hybrid power solutions in core European markets; and -- Smaller bolt-on acquisitions, including the Gulf Incon load bank division in the United Arab Emirates (a load bank is a testing device that simulates a real electrical load for power sources like generators, UPS systems, or batteries, allowing for safe testing, maintenance, and verification of their performance without connecting to actual equipment), and Krill in Spain, support fleet utilization and enhance cross-selling opportunities, while Stadkraft provides solar project and renewable capabilities that support hybrid project bids in Europe. S&P said, "We anticipate a total M&A spend of about $200 million in 2025, and our own forecast includes up to $100 million for M&A in 2026. We anticipate continued contract wins and selective bolt-on acquisitions to support revenue visibility, continued pricing resilience, and operational efficiencies." Nevertheless, these initiatives also increase execution and integration risk as the business scales up and undertakes multiple concurrent projects. Aggreko's revenue growth in 2025 and 2026 will be fueled by new contract wins in existing regions, complemented by additional bolt-on acquisitions. Aggreko is well positioned for medium-term growth as grid supply shortfalls and rising demand for cleaner and temporary power--driven by the energy transition, data centers, industrial manufacturing, and events--supports demand across its core end-markets. This is underpinned by its end-to-end service offering, recent renewable-focused acquisitions, and continued contract wins (including Formula 1 and the 2026 FIFA World Cup). S&P said, "We expect revenue to grow by about 17%-18% in 2025 and 2026, to comfortably more than $3.3 billion and $3.96 billion respectively. Pricing impacts and the mix across projects will continue to drive growth in 2025 and 2026, as it did in 2024. Aggreko continued to demonstrate its ability to pass on higher costs to consumers, and as it takes on more complex work, we expect it to benefit from an increase in both services' revenue and engineering revenue. Revenue growth in North America and Europe is expected to remain high during 2026, offset by continued contraction in Africa as Aggreko shifts its portfolio away from the region to reduce project execution risk. Revenue growth in all other regions is predicted to be more than 10%." Given the long-term nature of projects, revenue visibility in Latin America, Asia-Pacific, the Middle East, and Africa is strong at more than 50% for 2025. Profitability will be bolstered by pricing initiatives and product mix changes. Margins slightly moderated in 2025 versus 2024, reflecting a higher proportion of lower-margin fuel revenue driven by changes in product mix, and the nonrecurrence of one-off credits recorded in 2024. This highlights the sensitivity of profitability to the project mix and execution and cost control, particularly in the context of elevated leverage and ongoing investment requirements. S&P anticipates that adjusted EBITDA margins will grow more slowly in 2026, at about 37%, compared with 35.6% in 2024 and 33.3% in 2023. Margin growth is bolstered by Aggreko's ability to pass on higher costs to consumers, although there are some delays under certain contracts; by its shift to higher-margin regions; and by the change in its product mix, which is expected to include more-complex engineering solutions in 2025. Aggreko has a record of successfully integrating acquisitions that contribute to higher margins, for example, Resolute and Crestchic, operated at margins of over 38%, which it acquired in 2023. S&P said, "If final documentation departs from the materials reviewed, we reserve the right to revise our ratings. Potential changes include (but are not limited to) shares terms, utilization of the loan proceeds, maturity, size and conditions of the loans, financial and other covenants, security, and ranking. "The negative outlook reflects a more aggressive financial policy that tolerates higher leverage to prioritize shareholder return. It also reflects thin rating headroom, at a time where any underperformance against our base case could result in credit metrics commensurate with a lower rating." S&P could lower the rating on Aggreko if it expects a mix of the following factors: -- A sustainable slowdown in revenue growth from the 17%-18% forecast for 2025-2026, coupled with declining margins; -- Debt to EBITDA to be sustainably at or above 5x; -- FFO cash interest coverage to remain sustainably below 3x; -- FOCF generation to remain deeply negative, without expectations of recovery, potentially because of higher capex or weak working capital management. One or more of these scenarios could occur if an economic downturn and lower industrial production weaken the rental market more than we currently expect, or if Aggreko's M&A strategy and financial policy leads to significant increases in debt such that credit metrics weaken sustainably. S&P said, "We could revise our outlook to stable if we considered that Aggreko demonstrates a more conservative financial policy, including maintaining S&P Global Ratings-adjusted leverage that trends back toward 4.5x, supported by continued earnings growth, margin expansion, and a reduction in negative FOCF through a moderation in capex and improved working capital discipline." APIC UK: Begbies Traynor Appointed as Administrators ---------------------------------------------------- APIC UK Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Leeds Insolvency & Companies List (ChD), Court No. CR-2025-LDS-001147, and Wayne MacPherson and Amie Johnson of Begbies Traynor (Central) LLP were appointed as administrators on December 23, 2025. The company specialized in the manufacture of doors and windows of metal. Its registered office is at Unit A Beech Court, Crystal Drive, Sandwell Business Park, West Bromwich, West Midlands, B66 1RD. The administrators can be reached at: Wayne MacPherson Begbies Traynor (Central) LLP 1066 London Road Leigh-on-Sea Essex, SS9 3NA Amie Johnson Begbies Traynor (Central) LLP 1 Kings Avenue Winchmore Hill London, N21 3NA Further details contact: Yanish Gopee Begbies Traynor (Central) LLP Email: yanish.gopee@btguk.com Tel: 01702 467255 CONTRACT SOLUTIONS: FRP Advisory Appointed as Joint Administrators ------------------------------------------------------------------ Contract Solutions (Grampian) Ltd, trading as CSG Clean, was placed into administration proceedings in the Aberdeen Sheriff Court, Court No. ABE-L82, and Graham Smith and Michelle Elliot of FRP Advisory Trading Limited were appointed as joint administrators on Dec. 17, 2025. Contract Solutions (Grampian) Ltd specialized in business support service activities. Its registered office is at 1st Floor, Blenheim House, Fountainhall Road, Aberdeen, Scotland, AB15 4DT, to be changed to c/o FRP Advisory Trading Limited, Suite B, 4th Floor, Meridian, Union Row, Aberdeen, AB10 1SA. Its principal trading address is 11 Kingshill Park, Venture Drive, Westhill, AB32 6FL. The joint administrators can be reached at: Graham Smith Michelle Elliot FRP Advisory Trading Limited Suite B, 4th Floor Meridian Union Row Aberdeen, AB10 1SA Further details contact: Joint Administrators Tel: +44 (0)330 055 5455 Alternative contact: Louise Childs Email: louise.childs@frpadvisory.com FOSSE SIL: PKF Littlejohn Appointed as Joint Administrators ----------------------------------------------------------- Fosse Sil WY Ltd was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court No. CR-2025-009054, and Paul Williams and James Sleight of PKF Littlejohn Advisory Limited were appointed as joint administrators on Dec. 23, 2025. Fosse Sil WY Ltd specialized in the development of building projects. Its registered office is at The East Wing, Holland Court, The Close, Norwich, NR1 4DY. The joint administrators can be reached at: Paul Williams PKF Littlejohn Advisory Limited 15 Westferry Circus London, E14 4HD James Sleight PKF Littlejohn Advisory Limited 4th Floor, 12 King Street Leeds, LS1 2HL Further details contact: Michael Sullivan Tel: 0113 241 5141 Email: msullivan@pkf-l.com ICKENHAM TRAVEL: Begbies Traynor Appointed as Administrators ------------------------------------------------------------ Ickenham Travel Group Ltd, trading as LetsGo2, was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court No. CR-2025-008556, and Jonathan James Beard and Gavin Savage of Begbies Traynor (Central) LLP were appointed as administrators on Dec. 8, 2025. Ickenham Travel Group Ltd specialized in travel and tourism, other passenger transport. Its registered office is at 26 Stroudley Road, Brighton, East Sussex, BN1 4BH. The administrators can be reached at: Jonathan James Beard Gavin Savage Begbies Traynor (Central) LLP 26 Stroudley Road Brighton, East Sussex, BN1 4BH Further details contact: Eleanor Freeman Email: eleanor.freeman@btguk.com Tel: 01273 322960 INDIVUS LTD: S&W Partners Appointed as Joint Administrators ----------------------------------------------------------- Indivus Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court No. CR-2025-008839, and Ben Woodthorpe and Simon Jagger of S&W Partners LLP were appointed as joint administrators on Dec. 15, 2025. Indivus Limited specialized in engineering design activities for industrial process and production. Its registered office and principal trading address is CP Buildings, BCC Waste Transfer Station, Kings Weston Lane, Avonmouth, Bristol, BS11 0YS. The joint administrators can be reached at: Ben Woodthorpe Simon Jagger S&W Partners LLP 45 Gresham Street London, EC2V 7BG Further details contact: Joint Administrators Tel: 020 8066 3886 Alternative contact: Thomas Graham Email: thomas.graham@swgroup.com INNOVATION CONTROL: FRP Advisory Appointed as Administrators ------------------------------------------------------------ Innovation Control (Property) Limited, trading as Friargate Court, was placed into administration proceedings in the High Court of Justice, Business and Property Courts, Court No. CR-2025-MAN-001727, and Lila Thomas and Jessica Leeming of FRP Advisory Trading Limited were appointed as joint administrators on Dec. 15, 2025. Innovation Control (Property) Limited specialized in the buying and selling of its own real estate. Its registered office is at 225 Market Street, Hyde, SK14 1HF, to be changed to FRP Advisory Trading Limited, Derby House, 12 Winckley Square, Preston, PR1 3JJ. Its principal trading address is Friargate Court, 154 Market Street West, Preston, PR1 2EU. The joint administrators can be reached at: Lila Thomas Jessica Leeming FRP Advisory Trading Limited Derby House 12 Winckley Square Preston, PR1 3JJ Further details contact: Joint Administrators Tel: 01772 440700 Alternative contact: Katy Flynn Email: cp.preston@frpadvisory.com LUNE VALLEY: Leonard Curtis Appointed as Joint Administrators ------------------------------------------------------------- Lune Valley Timber Buildings Limited, trading as Lune Valley Pods, was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court No. CR-2025-MAN-001682, and Megan Singleton and Mark Colman of Leonard Curtis were appointed as joint administrators on Dec. 16, 2025. Lune Valley Timber Buildings Limited specialized in other manufacturing not elsewhere classified. Its registered office and principal trading address is Unit 5d Warton Road, Carnforth, LA5 9FG. The joint administrators can be reached at: Megan Singleton Mark Colman Leonard Curtis 20 Roundhouse Court South Rings Business Park Bamber Bridge, Preston, PR5 6DA Further details contact: Joint Administrators Tel: 01772 646180 Email: recovery@leonardcurtis.co.uk Alternative contact: Tom Young RICHARD HOUSE: S&W Partners Appointed as Joint Administrators ------------------------------------------------------------- Richard House Trust, trading as Richard House Children's Hospice, was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales in London, Insolvency and Companies List (ChD), Court No. CR-2025-008591, and Adam Henry Stephens and Lee Manning of S&W Partners LLP were appointed as joint administrators on Dec. 17, 2025. Previously known as Tenuregood Limited, Richard House Trust specialized in residential nursing care facilities. Its registered office and principal trading address is Richard House Children’s Hospice, Richard House Drive, London, E16 3RG. The joint administrators can be reached at: Adam Henry Stephens Lee Manning S&W Partners LLP c/o Restructuring Department 45 Gresham Street London, EC2V 7BG Further details contact: Joint Administrators Tel: 020 4617 5500 Alternative contact: Ben Collie SLIDERS UK: Leonard Curtis Appointed as Joint Administrators ------------------------------------------------------------ Sliders UK (Doors & Windows) Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Manchester, Company & Insolvency List (ChD), Court No. CR-2025-MAN-001707, and Mike Dillon and Hilary Pascoe of Leonard Curtis were appointed as joint administrators on Dec. 19, 2025. Sliders UK (Doors & Windows) Limited supplies aluminium windows and doors. Its registered office and principal trading address is 220 Cocker Road, Walton Summit Centre, Bamber Bridge, Preston, PR5 8BP. The joint administrators can be reached at: Mike Dillon Hilary Pascoe Leonard Curtis Riverside House Irwell Street Manchester, M3 5EN Further details contact: Joint Administrators Tel: 0161 831 9999 Email: recovery@leonardcurtis.co.uk Alternative contact: Avery Lewis SPRINTSHIFT COMMERCIAL: Opus Restructuring Named as Administrators ------------------------------------------------------------------ Sprintshift Commercial Vehicle Hire Ltd was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court No. CR-2025-009005, and Gareth David Wilcox and Emma Mifsud of Opus Restructuring LLP were appointed as administrators on Dec. 18, 2025. Sprintshift Commercial Vehicle Hire Ltd specialized in freight transport by road. Its registered office and principal trading address is Unit 3, Fifth Avenue, Dukinfield, Cheshire, SK16 4PP. The administrators can be reached at: Gareth David Wilcox Opus Restructuring LLP Cornwall Buildings 45 Newhall Street Birmingham, B3 3QR Emma Mifsud Opus Restructuring LLP Fourth Floor, One Park Row Leeds, LS1 5HN Further details contact: Priya Luxan Email: priya.luxan@opusllp.com TD TOM DAVIES: Opus Restructuring Appointed as Joint Administrators ------------------------------------------------------------------- TD Tom Davies Limited was placed into administration proceedings in the High Court of Justice, Court No. CR-2025-000699, and Ben Stanyon and Mark Siddall of Opus Restructuring LLP were appointed as joint administrators on Dec. 22, 2025. TD Tom Davies Limited specialized in the manufacture of medical and dental instruments and supplies, non-specialised wholesale trade, and retail sale by opticians. Its registered office and principal trading address is Unit 1, Great West Trading Estate, 983 Great West Road, Brentford, England, TW8 9DN. The joint administrators can be reached at: Ben Stanyon Opus Restructuring LLP First Floor, Milwood House 36B Albion Place, Maidstone Kent, ME14 5DZ Mark Siddall Opus Restructuring LLP 1 Radian Court Knowlhill, Milton Keynes, MK5 8PJ Further details contact: Joint Administrators Tel: 01908 752942 Alternative contact: Kathryn Smith THURSTON HOLDINGS: Leonard Curtis Appointed as Joint Administrators ------------------------------------------------------------------- Thurston Holdings Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Manchester Company & Insolvency List (ChD), Court No. CR-2025-MAN-001715, and Andrew Poxon, Hilary Pascoe, and Mike Dillon of Leonard Curtis were appointed as joint administrators on December 22, 2025. The company specialized in activities of production holding companies. Its registered office and principal trading address is 71-75 Shelton Street, Covent Garden, London, WC2H 9JQ. The joint administrators can be reached at: Andrew Poxon Hilary Pascoe Mike Dillon Leonard Curtis Riverside House Irwell Street, Manchester, M3 5EN Further details contact: Joint Administrators Tel: 0161 831 9999 Email: recovery@leonardcurtis.co.uk Alternative Contact: Helen Hales TITCHFIELD CD: Azets Holdings Appointed as Joint Administrators --------------------------------------------------------------- Titchfield CD Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Court No. CR-2025-008871, and Robert Anthony Young, Matthew Richards and Louise Brittain of Azets Holdings Ltd were appointed as joint administrators on Dec. 18, 2025. Titchfield CD Limited specialized in the management of real estate on a fee or contract basis. Its registered office is at 2nd Floor, Regis House, 45 King William Street, London, EC4R 9AN. The joint administrators can be reached at: Robert Anthony Young Matthew Richards Azets Holdings Ltd 2nd Floor, Regis House 45 King William Street London, EC4R 9AN Louise Brittain Azets Holdings Ltd Gladstone House 77-79 High Street, Egham Surrey, TW20 9HY Further details contact: Joint Administrators Tel: 0207 403 1877 Email: ben.weaver@azets.co.uk Alternative contact: Ben Weaver TRENPORT PROPERTY: Interpath Advisory Appointed as Administrators ----------------------------------------------------------------- Trenport Property Holdings Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court No. CR-2025-008958, and Natasha Harbinson and Stephen John Absolom of Interpath Advisory were appointed as joint administrators on Dec. 17, 2025. Trenport Property Holdings Limited specialized in the activities of other holding companies not elsewhere classified. Its registered office is Interpath Ltd, 9th Floor, 10 Fleet Place, London, EC4M 7RB. Its principal trading address is 1st Floor, 70 Jermyn Street, London, England, SW1Y 6NY. The joint administrators can be reached at: Natasha Harbinson Stephen John Absolom Interpath Advisory Interpath Ltd 10 Fleet Place London, EC4M 7RB Further details contact: Karen Croston Tel: 0161 509 8604 ********* 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 2026. 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 * * *