260515.mbx

260515.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, May 15, 2026, Vol. 27, No. 97 Headlines C Z E C H R E P U B L I C DRASLOVKA HOLDING: S&P Affirms 'B-' ICR, Off Watch Negative F R A N C E SGD PHARMA: S&P Lowers Long-Term ICR to 'B-', Outlook Stable I R E L A N D GS MORTGAGE-BACKED 2026-IRRP1: S&P Assigns 'B-' Rating on F Notes R O M A N I A DIGI COMMUNICATIONS: S&P Affirms 'BB-' ICR & Alters Outlook to Neg. S W I T Z E R L A N D BREITLING: S&P Affirms 'B-' ICR & Alters Outlook to Negative U N I T E D K I N G D O M ASHBURN PLACE: BTG Begbies, FRP Advisory Named as Administrators DUNRAVEN STREET: FRP Advisory, BTG Named as Joint Administrators GLOUCESTER ROAD: BTG Begbies, FRP Appointed as Administrators MARSTON'S ISSUER: S&P Affirms 'B+(sf)' Rating on Class B Notes ROTHERMERE CONTINUATION: S&P Affirms 'BB-' LT ICR, Outlook Stable TIGER GATE: FRP Advisory, BTG Begbies Named as Joint Administrators [] Nikita Kumar Joins Willkie Farr's London Restructuring Practice X X X X X X X X [] BOOK REVIEW: Management Guide to Troubled Companies - - - - - =========================== C Z E C H R E P U B L I C =========================== DRASLOVKA HOLDING: S&P Affirms 'B-' ICR, Off Watch Negative ----------------------------------------------------------- S&P Global Ratings affirmed its 'B-' long-term issuer credit rating on Draslovka Holding A.S. and removed it from CreditWatch, where S&P placed it with negative implications Dec. 19, 2025. The negative outlook reflects that S&P could lower the rating in the next 12 months if the company fails to improve its EBITDA, keeping leverage elevated and free cash flow negative and weighing on liquidity. S&P subsequently withdrew its ratings. S&P said, "We affirmed the rating and removed it from CreditWatch to reflect that the 2026 bonds' refinancing significantly reduced liquidity pressure and addressed the refinancing risk. We earlier viewed this bond maturity and the repayment of the EUR304 million TLB in December 2026 as key credit risks. The refinancing will address Draslovka's refinancing needs for 2026, and the next maturity has been pushed back to 2030.Shareholders have injected $75 million of equity as part of the transaction. Combined with the net proceeds from the newly senior secured bond, the existing TLB and the RCF have been repaid in full. The company has used $24 million to partially repay the preferred instrument issued in 2022 to support the acquisition of Chemours. A payment-in-kind (PIK) facility, still owned by OakTree Capital Management, refinanced the existing preferred equity certificates. This subordinated instrument is issued outside of the restricted group of the Nordic bonds; we expect no cash leakage from Draslovka. The transaction included a new RCF of EUR30 million that, given its long-dated maturity, will significantly improve the company's liquidity position. We continue to expect shareholders to support Draslovka and maintain sufficient liquidity under all circumstances. We revised our assessment of the company's liquidity to adequate from weak. "We forecast free operating cash flow (FOCF) will stay negative in 2026 before turning neutral in 2027. We expect Draslovka's S&P Global Ratings-adjusted EBITDA to reach $75 million-$85 million in 2026, which is higher than the S&P Global Ratings-adjusted EBITDA of $53 million in 2025. The main adjustment between the $79 million company-adjusted EBITDA and our adjusted EBITDA is the gain on framework agreement of about EUR14.9 million that we consider nonrecurring because it does not fall within the scope of International Financial Reporting Standards 15's "Revenue from contracts with customers". We assume neutral working capital requirements in 2026 and a $5 million-$10 million outflow in 2027. "We forecast total capital expenditure (capex) of $33 million-$38 million in 2026. For 2025, capex fell to about $32 million due to the termination of Draslovka's collaboration with Natron Energy following its liquidation. Draslovka entered a strategic partnership with Sweden-based Altris AB to collaborate with the sodium-ion battery industry; the group acquired a minority stake in its new partner. The company is developing its production of Prussian blue, a key raw material in the manufacturing of sodium-ion batteries. Maintenance capex should ease in 2026 as Draslovka expects to complete its hydrogen cyanide storage project this year. Nevertheless, we continue to forecast total capex of $33 million-$38 million in both 2027 and 2028 because we expect the company's investments in sodium ion to resume in the second half of 2026 and to ramp up in 2027. "The negative outlook reflects potential pressure on liquidity from weak free operating cash flow. With the refinancing, we expect it will continue to generate negative FOCF in our base-case scenario, remaining negative in 2026, only turning neutral in 2027, and modestly positive thereafter. This could weigh on liquidity, particularly in light of the minimum liquidity covenant requirement of $25 million. While the availability under the $30 million undrawn RCF provides some headroom, we view liquidity as constrained, despite our liquidity assessment revision. The assessment assumes that shareholders will remain supportive and provide timely and sufficient support to maintain adequate liquidity under all circumstances. "We forecast Draslovka's credit metrics will generally improve, though remain vulnerable to swings. The company's relatively small size, high exposure to sodium cyanide (NaCN) used by the gold mining industry, reliance on production at two sites, and relatively high customer concentration introduce potential volatility in credit metrics. Our forecast assumes Draslovka will develop its glycine leaching technology (GLT) and enter the sodium-ion industry. We expect limited impact from the conflict in the Middle East, because all regions are equally affected. NaCN producers can increase prices to offset higher feedstocks prices, supported by short supply on the market. We forecast adjusted debt to EBITDA including PIKs to moderately decrease to 6.5x-7.5x, 4.0x-4.5x excluding PIKs, in 2026. "The negative outlook at the time of the withdrawal reflected that we could lower the rating in the next 12 months if Draslovka fails to improve its EBITDA, keeping leverage elevated and free cash flow negative and weighing on liquidity." S&P could lower the rating if: -- Liquidity deteriorates to less than adequate due to much-lower-than-expected EBITDA, high growth capex, and large working capital swings. -- Funds from operations (FFO) interest coverage weakens to below 1.0x without near-term recovery prospects. -- FOCF remains negative for a prolonged period without prospects of a swift recovery. This could occur if there is a significant drop in operating performance due to prolonged low-capacity usage, major unexpected outages at one of the two production facilities, loss of key customers, or continuously low activity at customers' mining operations. It could also happen if there is material disruption in sourcing key raw materials from its major suppliers. -- Shareholders reduce support, leading to deterioration of liquidity. S&P could revise the outlook to stable if: -- Adjusted debt to EBITDA including PIKs improves to below 9.0x, below 6.5x excluding PIKs. -- The company maintains at least adequate liquidity and can generate positive FOCF. =========== F R A N C E =========== SGD PHARMA: S&P Lowers Long-Term ICR to 'B-', Outlook Stable ------------------------------------------------------------ S&P Global Ratings lowered its long-term issuer credit rating on SGD Pharma (Silica) by one notch to 'B-'. S&P also lowered its issue rating on the EUR580 million senior secured term loan to 'B-'. The stable outlook reflects Silica's comfortable liquidity position and S&P's EBITDA forecast of EUR105 million-EUR115 million. Silica will keep generating marginally negative free operating cash flow (FOCF) in 2026, in its view, because most of its EBITDA will be absorbed by its interest costs and capital expenditure (capex). S&P has not seen Silica undertake any deleveraging over the last three years and it anticipates its S&P Global Ratings-adjusted leverage will peak at 6.4x by year-end 2026 (5.8x at year-end 2025). Given this, and its negative FOCF generation, S&P no longer see Silica's credit metrics as commensurate with a 'B' rating' S&P said, "The downgrade reflects our view that Silica's FOCF will remain weakened by high interest costs and capex. The company's 2025 FOCF was about negative EUR50 million, which was much weaker than we had initially anticipated, and we now no longer anticipate positive FOCF for 2026." Its S&P Global Ratings-adjusted EBITDA of EUR116 million in 2025 was insufficient to cover EUR80 million in capex, EUR37 million in working capital outflows, and EUR36 million in cash interest payments. S&P said, "For 2026 we anticipate a slight deterioration in EBITDA due to higher energy and transportation costs, as well as a small increase in cash interest expenses. The latter comes from the additional debt Silica raised in 2025 to fund the acquisition of Alphial. Capex will be slightly lower than in 2025, at EUR70 million, as the investments in India and the three-year furnace rebuild at the Kipfenberg plant come to an end. We believe that FOCF could turn positive in 2027depending on market conditions. We view a material improvement in FOCF generation over the medium term as unlikely and we continue to assume EBITDA of EUR105 million-EUR115 million will be entirely allocated to capex (maintenance capex is around EUR45 million in years when no material furnace refurbishment is planned, but much higher when furnaces are refurbished); cash interest expenses (EUR45 million-EUR50 million); cash taxes; and working capital needs. We understand refurbishment is part of the normal course of the company's business and is not discretionary. "We have revised down our S&P Global Ratings-adjusted EBITDA expectations for 2026 and 2027. We now anticipate adjusted EBITDA will decrease to EUR100 million-EUR110 million in 2026, from EUR116 million in 2025. This reflects the ongoing decline in like-for-like sales in Europe (around half of the group's sales), and higher energy costs. These factors will more than offset the positive impact from the full-year contribution of Alphial, which adds EUR6 million-EUR7 million to EBITDA annually, and from the new furnace in India (Corning JV), which will come onstream in September 2025. Our EBITDA forecast is below our previous expectation (EUR120 million) because we now foresee weaker demand, softer selling prices (particularly for oral products), and higher sales of lower value-added products (such as cosmetic and tubular goods) especially in China. We anticipate some improvement in EBITDA in 2027 to EUR110 million-EUR120 million, albeit below our previous expectation of EUR120 million-EUR130 million. This leads to S&P Global Ratings-adjusted leverage of 6.0x-6.5x on average in 2026-2027, which we view as more commensurate with the 'B-' rating but not the main driver of the downgrade. "Although we could see further pressure on profitability if inflationary pressures escalate, liquidity remains comfortable. The impact from the war in the Middle East is uncertain at this stage but could put some pressure on margins via cost inflation and lower demand. Positively, the company has very little exposure to the Middle East and has hedged 90% of its Europe-based 2026 energy costs, where half its plants are located. However, in other geographies such as India, it remains more vulnerable to sustained increases in raw-material or energy costs. Its cost base is also largely fixed and its end-markets (health care and cosmetics) are sensitive to economic cycles. In this context, we see its comfortable liquidity position as able to weather challenging and uncertain market conditions. Its liquidity is supported by a fully available EUR95 million RCF, no debt maturities before 2030, and cash on balance sheet of more than EUR50 million. This should allow the company to meet its capital and working capital requirements, even under stressed conditions. "The stable outlook reflects Silica's comfortable liquidity and our expectation that EBITDA is not likely to decline much, even under stressed conditions, given its geographical diversity and strong margins. We estimate the group's debt to EBITDA at 6.0x-6.5x on average in 2026-2027, with FOCF remaining negative at least in 2026. This assumes no material impact from the war." S&P views a negative rating action as remote in the next 12 months. That said, S&P could lower the rating if: -- FOCF generation failed to improve materially or remained negative; or -- S&P anticipated a severe deterioration in liquidity. S&P could raise the rating if the company builds a track record of positive and sustainable FOCF combined with leverage below 6.5x even under difficult market conditions. This would also hinge on at least adequate liquidity and limited risk of a large, unexpected debt-funded acquisition or dividend distribution. ============= I R E L A N D ============= GS MORTGAGE-BACKED 2026-IRRP1: S&P Assigns 'B-' Rating on F Notes ----------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to GS Mortgage-Backed Securities Trust 2026-IRRP1's class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes. At closing, the issuer will also issue unrated class RFN, Z, and X notes, a VRR loan, and yield supplement overcollateralization. The assets are first-ranking owner-occupied and BTL mortgage loans secured against properties in Ireland. The asset pool comprises EUR459.72 million of first-lien reperforming residential mortgage loans in the Republic of Ireland. The loans were originated by multiple lenders, with Ulster Bank accounting for 76.76% of the pool, followed by KBC Bank (10.96%), Bank of Ireland (6.58%), and Bank of Scotland (5.71%). Approximately 45.74% of the pool was previously securitized in a nonperforming-loan transaction, which was not rated by S&P Global Ratings. The pool comprises 93% owner-occupied loans and 7% BTL loans. Nearly 70.3% of the loans in the portfolio have been restructured in the past, and a significant level of arrears persists in the portfolio, with 22.96% greater than 90 days in arrears. The capital structure provides 24.17% of available credit enhancement for the class A notes through subordination, the non-liquidity reserve fund, and YSO. A fully funded liquidity reserve fund is available to meet revenue shortfalls on the class A notes, and the non-liquidity reserve fund is available to meet revenue shortfalls and provide credit enhancement to all rated notes. Mars and Pepper are administrators handling daily operations. Pepper manages 92.51% of the portfolio, while Mars handles 7.49% of loans from Bank of Ireland. Both are experienced, fully integrated Irish servicers. Borrowers pay into collection accounts held with Bank of Ireland and Barclays in the legal titleholder's name. The transaction documents will establish a declaration of trust in the issuer's favor, over any amounts in the collection account attributable to the mortgage loans in the portfolio. S&P considers commingling risk to be adequately mitigated under its counterparty criteria and have not applied any additional adjustments in its cash flow modelling. The issuer is an Irish special-purpose entity, which S&P considers to be bankruptcy remote. Ratings Amount Class Rating* (mil. EUR) Class size (%)§ A AAA (sf) 339.60 77.76 B-Dfrd AA (sf) 16.40 3.76 C-Dfrd A (sf) 8.70 1.99 D-Dfrd BBB (sf) 12.00 2.75 E-Dfrd BB (sf) 9.80 2.24 F-Dfrd B- (sf) 14.20 3.25 Z NR 20.70 4.74 RFN NR 8.40 1.93 VRR NR 22.63 N/A X NR 0.10 N/A YSO NR 16.14 3.51 *S&P's ratings address timely receipt of interest and ultimate repayment of principal on the class A notes and the ultimate payment of interest and principal on the other rated notes. Its ratings on the class D-Dfrd, E-Dfrd, and F-Dfrd notes also address the payment of interest based on the lower of the stated coupon and the net weighted-average coupon. §Class size includes the 5% vertical risk retention loan. NR--Not rated. N/A--Not applicable. YSO--Yield supplement overcollateralization. ============= R O M A N I A ============= DIGI COMMUNICATIONS: S&P Affirms 'BB-' ICR & Alters Outlook to Neg. ------------------------------------------------------------------- S&P Global Ratings revised the outlook on Digi Communications N.V. (Digi) and its subsidiary Digi Romania S.A. to negative from stable. At the same time, S&P affirmed its 'BB-' long-term issuer credit on these entities and senior secured debt ratings issued by Digi Romania S.A. The negative outlook reflects the risk that S&P could downgrade Digi by one notch if leverage remains above 4.0x for a sustained period, which could be caused by significant negative FOCF after leases in excess of that forecast in its base case. DIGI demonstrated successful market expansion in 2025, solidifying its position in Romania and Spain while gaining traction in Portugal and Belgium. This resulted in a 15% year-over-year increase in revenue-generating units (RGUs), reaching a total of 32 million in 2025, supporting its earnings growth. S&P said, "While we acknowledge the positive operating developments, higher investment to support growth is hurting cash flow generation; in 2025, S&P Global Ratings-adjusted free operating cash flow (FOCF) after leases was negative EUR337 million, leading to S&P Global Ratings-adjusted debt to EBITDA peaking at 4.4x. "We now anticipate a slower organic deleveraging path to 4.1x (versus 3.7x previously expected) in 2026 and 3.9x (3.4x) in 2027. "While we forecast Digi will organically deleverage to below 4.0x in 2027, its rating headroom is becoming more limited. Digi has prioritized RGU expansion in recent years, successfully increasing its customer base to 32 million across Romania, Spain, Portugal, and Italy by the end of 2025, representing 15% growth year on year. This growth drove an increase in S&P Global Ratings-adjusted revenue and EBITDA of 15% and 12%, respectively, year on year in 2025, but resulted in significant negative free cash flow due to higher investment and increased leverage to 4.4x in 2025. We forecast Digi will organically deleverage to S&P Global Ratings-adjusted debt to EBITDA of 4.1x in 2026 and 3.9x in 2027. However, this is slower than we previously anticipated, and the rating headroom is very restricted, in our view." The continued prioritization of growth outside Romania, coupled with potential delays in improving EBITDA in Portugal and Spain, could prevent cash flow generation from materially improving and could potentially jeopardize leverage from returning to comfortably below 4.0x beyond 2026, underpinning S&P's outlook revision. Digi has announced an intended IPO of its Spanish asset, while maintaining a substantial ownership position, with a portion of the proceeds earmarked for debt repayment. This transaction, if and when it takes place, could help restore adjusted debt to EBITDA to below 4.0x. However, the amount of proceeds and the IPO's timing are currently uncertain. S&P said, "We expect Digi to continue to post healthy revenue growth in all markets. In 2025, Digi's performance in Romania remained strong, with revenue growing by 7.9% year on year. The company continued strengthening its market share in Romania's pay TV, fixed broadband, and mobile markets, where it held 76.0%, 73.1%, 29.9%, respectively, in 2025. This is alongside its nationwide coverage both in fixed and mobile and its superior network quality, which should underpin further solid growth in the medium term. Growth momentum in the Spanish market will remain, and we forecast revenue there will grow by 15% on average in 2026 and 2027, moderating slightly from 18.5% in 2025. As of year-end 2025, Digi's market share had reached 12% in mobile and 13% in fixed broadband markets in Spain. Although its Portuguese operations are still nascent, with about 3% market share each in mobile and fixed broadband at the end of 2025, we forecast revenue in the country will grow by double digits on average in 2026 and 2027, monetizing the group's investment in network and infrastructure. Overall, we forecast healthy group revenue growth of 11% in 2026 and 9% in 2027. "That said, we now assume moderate profitability improvements and forecast the S&P Global Ratings-adjusted EBITDA margin will reach 33% in 2026 and 2027. This primarily reflects higher than previously anticipated subscriber acquisition costs (SAC), consistent with 2025 spending. We now model approximately EUR60 million in SAC costs for both 2026 and 2027. Furthermore, due to lower-than-expected EBITDA in 2025, we now project a more gradual improvement in profitability in Portugal. We forecast the Portuguese operations will generate negative EBITDA over the forecast period and will not turn positive until 2029. Despite this, we continue to expect stable to improving profitability in Romania and Spain with an average EBITDA of 47% and 26%, respectively, in 2026-2027. In Spain, this is largely due to the benefits from the transition to a mobile network operator (MNO) model from a mobile virtual network operator (MVNO) model and continued RGU growth. Overall, we forecast the adjusted EBITDA margin will improve to 33% in 2026-2027, from 32% in 2025. "We now forecast S&P Global Ratings-adjusted FOCF after leases will be materially positive in 2028 (not 2027, as we previously expected). We understand that the asset sale agreement concerning the remaining 1.6 million homes passed in Spain with Sota Investments Spain OpCo S.L.U (SOTA) is now being accelerated. Target completion is now expected by end-2026. This will allow the group to bring forward the cash receipt of about EUR150 million in total to 2026 from 2027 previously. That said, the anticipated acceleration in fiber to the home (FTTH) investments should keep capital expenditure (capex) spending high in 2026, albeit decreasing year on year. As a result, we forecast adjusted FOCF after leases to remain materially negative at about EUR150 million in 2026 and largely neutral in 2027 before turning positive by about EUR75 million in 2028. Romania will continue to remain the healthiest market, generating positive cash flows measured as EBITDA minus capex; this parameter remains negative in all other markets for the foreseeable future in our base case. We assume the company will finance its negative cash flow by issuing debt. "The negative outlook reflects the risk that we could downgrade Digi by one notch if leverage remains above 4.0x on a sustained basis, which could be caused by significant negative FOCF after leases in excess of that forecast in our base case. "We could lower the rating if leverage remains well above 4.0x in 2026 and is not projected to improve to below 4.0x by 2027. This could occur if the company makes excessively large investments outside Romania to accelerate growth, or if operational challenges in any markets, including Romania, result in sustained significant negative FOCF. Moreover, continued difficulties in achieving positive EBITDA in Portugal and Belgium would further jeopardize the group's adjusted EBITDA and potentially contribute to prolonged negative free cash flow. "We could revise the outlook to stable if Digi demonstrates an improvement in leverage, reducing it to sustainably below 4.0x. This outcome would likely be driven by a reduction in capex intensity, potentially supported by financial performance exceeding our current base case expectations. Further mitigating factors, including the potential use of IPO proceeds to reduce debt, could also contribute to a restoration of credit metrics and lead to a stable outlook." ===================== S W I T Z E R L A N D ===================== BREITLING: S&P Affirms 'B-' ICR & Alters Outlook to Negative ------------------------------------------------------------ S&P Global Ratings revised its rating outlook on Switzerland-based luxury watch manufacturer to negative from stable, while affirming its 'B-' ratings on Breitling and its senior secured term loan B (TLB); the recovery rating is unchanged at '3', reflecting its expectation of 50%-70% recovery (rounded estimate: 60%) in the event of a default. S&P said, "The negative outlook reflects a one-in-three likelihood that we could lower the ratings over the next 12-18 months if Breitling's liquidity position deteriorates or the company deviates from its expected deleveraging trajectory, with adjusted debt to EBITDA remaining elevated and annual FOCF (after leases) staying negative, which would lead us to regard the capital structure as unsustainable." Based on unaudited managerial accounts for fiscal year 2026 (ended March 31, 2026), Breitling should report net sales of Swiss franc (CHF) close to CHF715 million, down 8%-9% year on year, and negative free operating cash flow (FOCF) estimated at CHF30 million-CHF35 million after leases. S&P said, "Over the next 12-18 months, amid the uncertain macroeconomic and geopolitical environment, we forecast negative FOCF (after leases) and S&P Global Ratings-adjusted leverage reducing somewhat but staying elevated, with limited rating headroom if operating performance worsens compared with our base case. "We revised the outlook to negative due to overall limited rating headroom in terms of credit metrics, coupled with possible further volatility regarding our base case amid a difficult macroeconomic environment and geopolitical risks. In our revised base case, we estimate S&P Global Ratings-adjusted debt to EBITDA will approach 10.0x in fiscal year 2026 and will decrease to about 8.5x the following year. Compared with our previous base case, the slower-than-expected deleveraging is mainly due to softer performance, including foreign currency and tariff impacts.. As a result, we estimate the group's reported sales in fiscal year 2026 at about CHF715 million, down from our previous expectation of CHF760 million-CHF770 million. We project the S&P Global Ratings-adjusted EBITDA margin at about 19%, in the lower range of our previous scenario of 19%-20% for fiscal year 2026. We estimate a contraction in our adjusted EBITDA figure of CHF30 million-CHF35 million in fiscal year 2026 compared with previous year. However, we expect a sequential recovery of sales and margins starting from fiscal year 2027, thanks to the launches of Universal Genève (UG) and Gallet, two luxury watch brands acquired in 2024, coupled with implementation of cost-savings programs and selective pricing initiatives. Nevertheless, given the volatile macroeconomic environment and its potential impacts on consumers' discretionary spending, we see potential headwinds to a rapid return to profitable and sustainable growth, combined with possible execution risks associated with the launch of the new brands." Further operating setbacks that can hamper deleveraging prospects and the resumption of positive FOCF generation could lead us to consider the group's capital structure unsustainable. S&P said, "We expect S&P Global Ratings-adjusted EBITDA to reach CHF160 million-CHF165 million by the end of fiscal year 2027, versus our previous forecast of CHF175 million-CHF180 million. The expected year-on-year improvement in EBITDA stems from top-line growth--both organically and through the contribution of UG and Gallet--selective pricing initiatives, and ramp-up at recently renovated stores. We now expect our adjusted leverage metric to approach 8.5x in fiscal year 2027, compared with our previous expectation of about 8.0x over that period. We expect Breitling's annual FOCF (after leases) to remain negative in fiscal year 2027. We assume slightly higher working capital requirements, including for inventory related to the expected launches of Gallet and UG, although we understand the company intends to reduce its annual gross capital expenditure (capex). Capex is projected to normalize to about CHF35 million per year in fiscal years 2027 and 2028, following the near completion of new or refurbished boutique rollouts, IT system and digital upgrades, as well as investment in the UG and Gallet brands." S&P said, "We continue to view Breitling's liquidity position as adequate, with no liquidity or refinancing pressures over the short term. As of March 31, 2026, the company had about CHF80 million in cash and cash equivalents--down from about CHF127 million the previous year--and full availability under a CHF110 million committed revolving credit facility (RCF) maturing in 2028. We expect these sources of cash will be sufficient to self-fund Breitling's operations in the short term. Furthermore, we do not envisage any short-term refinancing risk because the group's next material debt maturity is in 2028, allowing time for Breitling to manage its deleveraging path and improve its cash-flow conversion without refinancing risks in the near term. Our estimated adjusted debt calculation for fiscal year 2026 includes a TLB of about CHF1.0 billion-equivalent due in 2028, lease liabilities of about CHF160 million, other liabilities (including pensions and seller financing) of about CHF180 million-CHF190 million, and about CHF36 million related to deferred consideration for acquisitions (UG and Gallet). We note that the total consideration for the UG acquisition was CHF60 million, of which CHF20 million was paid in 2024, CHF20 million will be paid in four equal instalments over four years, and the remaining CHF20 million in 2029, on the fifth anniversary of the acquisition date. "The negative outlook reflects a one-in-three likelihood that we could lower the ratings over the next 12-18 months if Breitling's liquidity position deteriorates or the company deviates from its expected deleveraging trajectory, with adjusted debt to EBITDA remaining elevated and FOCF staying negative, leading us to regard the capital structure as unsustainable. This could happen in the event of prolonged severe deterioration of the luxury watch industry, with the company unable to defend its market share and reduce its operating costs in a timely manner. "We could lower the rating if increasing operating headwinds prevent Breitling from reducing leverage meaningfully, prompting us to consider the capital structure unsustainable. We could also lower our rating if liquidity deteriorates to an extent that we believe could be insufficient to support the group's future business needs and financial commitments. "We could revise our outlook to stable if Breitling's initiatives lead to an improvement in operating performance with positive cash flow generation and credit-supportive deleveraging. Adjusted debt to EBITDA comfortably below 8x, sustained positive FOCF after leases, and funds from operations (FFO) cash interest coverage of 2.0x or higher could support an outlook revision to stable." =========================== U N I T E D K I N G D O M =========================== ASHBURN PLACE: BTG Begbies, FRP Advisory Named as Administrators ---------------------------------------------------------------- Ashburn Place (WG) Limited was placed into administration in the Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court Number CR-2026-002010. Paul Cooper of BTG Begbies Traynor (London) LLP and David Paul Hudson and Simon Baggs of FRP Advisory Trading Limited, were appointed as administrators on March 13, 2026. Ashburn Place (WG) Limited provided business services and property services. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be contacted at: Paul Cooper BTG Begbies Traynor (London) LLP 31st Floor, 40 Bank Street Canary Wharf London E14 5NR -- and -- David Paul Hudson Simon Baggs FRP Advisory Trading Limited 110 Cannon Street London EC4N 6EU Further information contact: Aiden Fallon BTG Begbies Traynor (Central) LLP E-mail: Aiden.Fallon@btguk.com Telephone: 0161 837 1700 DUNRAVEN STREET: FRP Advisory, BTG Named as Joint Administrators ---------------------------------------------------------------- Dunraven Street Mayfair Limited was placed into administration in the High Court of Justice, Court Number CR-2026-001881. David Hudson and Simon Baggs of FRP Advisory Trading Limited, and Paul Steven Cooper of BTG Begbies Traynor (London) LLP, were appointed as joint administrators on March 12, 2026. Dunraven Street Mayfair Limited carried on a business of buying and selling of own real estate. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA (to be changed to FRP Advisory Trading Limited, Minerva, 29 East Parade, Leeds, LS1 5PS). Its principal trading address is 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be contacted at: David Hudson Simon Baggs FRP Advisory Trading Limited 110 Cannon Street London EC4N 6EU -- and -- Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor 40 Bank Street Canary Wharf London E14 5NR Further details contact: The Joint Administrators Tel: 0113 831 3555 Alternative contact: Usman Khan Email: cp.leeds@frpadvisory.com GLOUCESTER ROAD: BTG Begbies, FRP Appointed as Administrators ------------------------------------------------------------- Gloucester Road (CR) Limited was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court Number CR-2026-001997. Paul Steven Cooper of BTG Begbies Traynor (London) LLP and David Hudson and Simon Baggs of FRP Advisory Trading Limited, were appointed as administrators on March 13, 2026. Gloucester Road (CR) Limited carried on a business of buying and selling of own real estate, and other letting and operating of own or leased real estate. Its registered office is at 134 Buckingham Palace Road, London SW1W 9SA. The Administrators can be contacted at: Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor, 40 Bank Street Canary Wharf London E14 5NR -- and -- David Hudson Simon Baggs FRP Advisory Trading Limited 110 Cannon Street London EC4N 6EU For further information, contact: Benjamin Silverwood BTG Begbies Traynor (Central) LLP E-mail: benjamin.silverwood@btguk.com Telephone: 0113 285 8610 MARSTON'S ISSUER: S&P Affirms 'B+(sf)' Rating on Class B Notes -------------------------------------------------------------- S&P Global Ratings affirmed its 'BB+ (sf)' credit ratings on Marston's Issuer PLC's class A2, A3, and A4 notes and 'B+ (sf)' rating on class B notes. While the class A and B notes, as explained below, have upside potential due to an improved debt service coverage ratio (DSCR), S&P believes downside risk remains as the pub sector is still under pressure from ongoing macroeconomic uncertainties around weak consumer sentiment and geopolitical tensions. The one notch difference between the final outcomes and the current ratings for the class A and B notes is not entirely due to performance but stems from limited credit given to the benefit from higher tax credit that the issuer is entitled to. Hence, any upside potential will likely materialize only if the company continues to prove resilient and to navigate cost pressures and soft consumer sentiment. S&P therefore affirmed its 'BB+ (sf)' and 'B+ (sf)' ratings on the class A and B notes, respectively. Marston's Issuer is a corporate securitization of the U.K. operating business of the managed and tenanted pub estate operator Marston's Pubs Ltd. (Marston's Pubs; the borrower). The transaction originally closed in August 2005 and was subsequently tapped in November 2007. Recent performance and macroeconomic considerations In the fiscal year (FY) 2025, ended Sept. 30, 2025, Marston's Pubs disposed of eight pubs from the securitized portfolio (one managed and seven tenanted), leading to a total of 837 outlets at the end of FY2025, of which 258 were managed and 579 were tenanted. The borrower reported total revenue for FY2025 was broadly in line with FY2024 due to the effect of the year's disposal. Like-for-like growth was underpinned by the premiumization trend that supports spend per head, format conversions, and revenue-driving activity. The issuer improved its EBITDA margin to 24.0% in FY2025 from 22.5% in FY2024, exceeding our previous expectation of flat margins. This margin expansion was achieved through a combination of tight cost control, productivity gains, such as menu simplification and optimized staff management to mitigate rising labor costs, and improved food and drink offering. Continued portfolio optimization, through the disposal of non-core pubs, further boosted EBITDA per pub. The group's sales growth continues to outperform the pub sector, which faces soft volume trends amid weak consumer sentiment and macroeconomic uncertainty, to which pub operators respond with more promotions or slower price increases. S&P said, "We expect Marston's operating model, presence in suburban areas, and continued investment in new formats to capture various consumer segments, should mitigate some volume pressure. Should the U.K. macroeconomy continue to show signs of weakness, such as an increase in the unemployment rate, it could further squeeze consumers' discretionary spending, leading to lower volume and spend per head even for the larger pub operators. We forecast revenue in the securitization portfolio to grow by approximately 1.4% in FY2026 and 1.8% in FY2027." The profitability of the sector has stabilized at a lower equilibrium compared with pre-pandemic levels. This reflects continually weaker consumer sentiment and structurally higher operating costs following the post-pandemic inflationary period, and labor costs in particular gaining an increasingly higher share of the total cost base (due to national living wage rises and recent changes to employers' national insurance contributions). S&P said, "We also consider the input and electricity costs volatility amid supply chain challenges from various regulations exacerbated by tariff tensions and geopolitical conflicts. In our view, what underpins a stabilized margin in our forecast periods, albeit at a lower level, is that large operators will still have some headroom in streamlining costs in labor scheduling, energy use, and scaling up the efficiency initiatives across their estate, together with broader efforts in capturing footfall and spending per customer through targeted marketing, menu engineering, and ongoing upgrades and improvements of the locations and ordering and payment solutions. We expect the borrower's S&P Global Ratings-adjusted EBITDA of about GBP108 million in FY2026, and S&P Global Ratings-adjusted EBITDA margin to be stable at about 24% year-over-year with pressure from labor cost inflation and more recent input cost increases." Rating Rationale The transaction features two classes of notes (class A and B), the proceeds of which have been on-lent to Marston's Pubs, via issuer-borrower loans. The operating cash flows generated by Marston's Pubs are available to repay its borrowings from the issuer that, in turn, uses those proceeds to service the notes. Each class of notes is fully amortizing. Marston's Issuer's primary sources of funds for principal and interest payments due on the outstanding notes are the loan interest and principal payments from the borrower and amounts available under the liquidity facility. S&P said, "We have applied our corporate securitization criteria as part of our rating analysis on the notes in this transaction. Our ratings address the timely payment of interest and principal due on the notes, excluding any subordinated step-up interest. They are based primarily on our ongoing assessment of the borrowing group's underlying business risk profile (BRP), and the robustness of operating cash flows supported by structural enhancements. "We begin our analysis with the construction of our base-case operating cash flow projections and a determination of a base-case anchor, which does not reflect the liquidity support at the issuer level. We then perform downside analysis, which aims to refine our base-case anchor depending on the resilience of the tranche to downside conditions. We model 15.0% and 25.0% decline in S&P Global Ratings-adjusted EBITDA for Marston's Pubs' managed and leased-and-tenanted estate, respectively, due to stress factors such as market or competitive developments in the industry, demand fluctuations, or operating cost changes, etc. In our downside analysis, we give benefit to structural forms of support, generally in the form of liquidity support. We then perform our modifier and comparable rating analysis." Business risk profile S&P continues to assess the borrower's BRP as fair, supported by the format diversity and the suburban locations of its portfolio of pubs and earnings composition stemming from a mix of managed, partnership, and tenanted pubs. DSCR analysis S&P's cash flow analysis serves to both assess if cash flows will be sufficient to service debt through the transaction's life and to project minimum DSCRs in our base case and downside scenarios. Counterparty risk S&P said, "We do not consider the liquidity facility or bank account agreements to be in line with our counterparty criteria. Therefore, in the case of Marston's Issuer's non-derivative counterparty exposures, the maximum supported rating is constrained by our long-term issuer credit rating (ICR) on the lowest rated bank account provider. "We have assessed the strength of the collateral framework as low under the criteria, based on our review of the following items in the collateral support annex: (i) a lack of volatility buffers, (ii) we do not consider some types of collateral eligible under our criteria, and (iii) currency haircuts are not specified. In the case of a collateralized hedge provider that is a U.K. bank, the applicable counterparty rating under our counterparty risk criteria is the resolution counterparty rating (RCR). As a result, the maximum supported rating for the issuer's derivative exposures is limited to a counterparty's RCR. "However, our ratings are not currently constrained by our ICRs on any of the counterparties, including the liquidity facility, and bank account providers or the RCR on the derivative counterparty." Outlook The pub sector's margins stabilized at a new, lower equilibrium as the sector grapples with demand and cost headwinds. S&P expects pub operators to continue to prioritize agility in meeting shifting consumer preferences, efficiency of their operations, and cash generation, underpinning the new margin levels and the growing maintenance covenant headroom. For many rated pub operators, their significant freehold property portfolios offer substantial operational and financial flexibility. Proceeds generated from disposals provide an additional source of funding for capital investment to underpin strategic initiatives. S&P still expects the quality of earnings to remain the defining factor in the pub operators' credit profile as opposed to the amount of real estate ownership. Downside scenario S&P said, "We may consider lowering our rating on the class A notes if their minimum projected DSCRs in our base-case scenario fall below 1.20x coverage or if our downside scenario deteriorates each class's resilience-adjusted anchor. "We could also lower our rating on the class B notes if the minimum projected DSCR in our base-case scenario falls below a 1.10x coverage or if our downside scenario worsens the class B's resilience-adjusted anchor. "This could be brought about if we thought Marston's Pubs' liquidity position had weakened, primarily due to a material decline in cash flows not remediated by cash tax credits via group relief, a tightening of covenant headroom, or reduced access to Marston's Issuer's committed liquidity facilities. This could happen if a deterioration in trading conditions, related to generally lower consumers' disposable income, reduces cash flows available to the borrowing group to service its rated debt. However, the quality of earnings will, in our view, be largely determined by industry trading conditions and the pubs' ability to manage competitiveness and cost pressures amid consumer demand volatility. Consequently, our ratings on the notes may be negatively affected if the borrower's revenue and margin-enhancing measures are less effective in mitigating cost pressures compared with our forecast, or if there are any challenges in working capital management leading to significant cash outflows, that would weaken cash flow available for debt service, use up the existing covenant headroom, or lead to lower profitability equilibrium than expected." Upside scenario S&P said, "Amid ongoing macroeconomic uncertainties around weak consumer sentiment and geopolitical tensions, we do not anticipate raising our assessment of Marston's Pubs' BRP over the near to medium term. We could raise our ratings on the class A or B notes if our assessment of the borrower's overall creditworthiness improves, which reflects its financial and operational strength over the short to medium term. In particular, we would consider lower leverage and the ability to sustainably generate higher cash flows (excluding the effect of any tax credits), as well as higher covenant headroom, when evaluating the scale of any improvement. Also, we could raise our ratings on the class A and B notes, if the company continues to prove resilience to and navigate cost pressures and soft consumer sentiment." ROTHERMERE CONTINUATION: S&P Affirms 'BB-' LT ICR, Outlook Stable ----------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' long-term issuer credit ratings on Rothermere Continuation Holdings Ltd. (RCHL) and its subsidiary Daily Mail and General Trust PLC (DMGT), and its 'BB-' issue credit rating on DMGT's senior unsecured bonds, and removed all ratings from CreditWatch, where S&P placed them with negative implications on Nov. 26, 2025. The stable outlook reflects S&P's expectation that over the next 12 months, RCHL's operating performance will recover, the company will return to modest organic revenue growth as the conflict in the Middle East eases, and it will have sufficient liquidity for upcoming debt maturities. S&P said, "We understand that Rothermere Continuation Holdings Ltd. (RCHL), the parent of Daily Mail and General Trust PLC (DMGT), will no longer acquire Telegraph Media Group (TMG) following a successful competing bid from Axel Springer. "At the same time, on April 30, 2026, RCHL announced the disposal of Trepp, its U.S. property information business, to Fitch Group Inc. for gross proceeds of $1 billion (about GBP740 million). We expect proceeds will fund debt reduction and business investments, as well as potential mergers and acquisitions (M&A). "In our view, the disposal will slightly weaken RCHL's business, which is already exposed to the structurally challenged newsprint and volatile advertising markets, and geopolitical risks in its events business. It will also provide the group with ample liquidity and financial flexibility and could lead to lower leverage. "We removed the ratings from CreditWatch with negative implications following the unsuccessful bid for TMG. Axel Springer agreed to acquire TMG on March 6, 2026, effectively ending RCHL's pursuit of the asset. Consequently, the company will not raise debt for this acquisition. We understand the transaction is progressing toward regulatory approval." The divestiture of Trepp will weaken RCHL's competitive position. On April 30, 2026, the company announced its intention to sell Trepp to Fitch Group for approximately GBP740 million, and S&P expects the transaction will complete within the next two months. The disposal will reduce RCHL's scale and scope of operations, and its business diversity, increasing its exposure to cyclical and structurally declining industries. S&P said, "We also expect that, after the disposal, the company's profitability will be weaker and more volatile because Trepp is a structurally growing, highly profitable business. It contributed approximately 7% of group revenue and 33% of S&P Global Ratings-adjusted EBITDA in fiscal 2025. We expect the adjusted EBITDA margin impact will be most pronounced in fiscal 2026 due to the double impact of the disposal and high exceptional costs, before improving through margin recovery in the property and events segments, as well as reducing exceptional costs. We estimate RCHL's exposure to consumer media--characterized by low profitability, secular pressures, declining readership, and the disruption to online audiences from artificial intelligence, as well as a volatile advertising market--will increase to about 60% of revenue from 55% before. The remaining U.K.-focused property businesses lack organic growth drivers amid a subdued U.K. property market and are less profitable than Trepp, and we don't expect meaningful recovery until fiscal 2027. While we expect the events business to deliver solid organic growth over the next few years, it will suffer from geopolitical instability in the Middle East and Africa in fiscal 2026. Overall, the post-disposal group will have a more cyclical profile, with heightened exposure to declining industries and volatility within the events and property segments." S&P said, "We expect a temporary weakening in credit metrics in fiscal 2026, then improving in fiscal 2027, supported by disposal proceeds and operational recovery. We expect the Trepp disposal and weak performance in the events business to lead to a 12% revenue decline. Although preconflict event bookings protect a portion of fiscal 2026 revenue, the rescheduling of regional events to September introduces risks of revenue slipping into fiscal 2027 and demand erosion for the next event cycle. We now expect a 20% revenue decline in the events segment and fixed-cost pressures in fiscal 2026 will temporarily depress operating margins. In combination with the disposal, we expect a decrease in S&P Global Ratings-adjusted margins to 4% in fiscal 2026 from 7% in fiscal 2025, leading adjusted leverage to spike at 6x in fiscal 2026. Thereafter, we anticipate the company to return to organic revenue growth and gradually return toward 7%-8%, supported by the easing of tensions in the Middle East, margin expansion in the events and property segments, and reduced exceptional costs. "Proceeds from the disposal will provide flexibility for M&A, and we expect RCHL will maintain its financial policy with leverage compatible with the rating. The company has modest debt, consisting of GBP150 million remaining unsecured bonds maturing in June 2027. It has sufficient liquidity to repay the bonds at maturity without refinancing. We expect RCHL will use proceeds to repay the approximately GBP100 million drawings outstanding on the GBP200 million revolving credit facility (RCF), as well as fund business investments in line with covenant requirements. Beyond these commitments, we expect the company will have considerable capacity for M&A, although we understand it has not identified specific targets. We therefore expect RCHL's leverage to decline significantly, toward 1.5x from fiscal 2027 following the debt repayment, but understand leverage could increase thereafter, depending on whether the company decides to refinance the bonds with a new capital structure or pursue larger M&A that will require debt financing. "The stable outlook reflects our expectation that over the next 12 months, RCHL's operating performance will recover, it will return to modest organic revenue growth as the conflict in the Middle East eases, and it will have sufficient liquidity for upcoming debt maturities. "We could lower our rating on RCHL if its S&P Global Ratings-adjusted debt to EBITDA exceeds 3.5x. This could occur if the company follows a more aggressive financial policy than we assume in our base-case scenario--for example, if it pursues large debt-funded acquisitions or dividend payments. "We view an upgrade as unlikely. We would consider raising the rating if RCHL materially increases its scale and scope of operations, sustainably grows organic earnings, and significantly improves margins. This would need to be supported by the company's commitment to and demonstrated track record of a financial policy that would support stronger credit metrics." TIGER GATE: FRP Advisory, BTG Begbies Named as Joint Administrators ------------------------------------------------------------------- Tiger Gate Property Limited was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency & Companies List (ChD) Court Number CR-2026-001850. David Hudson and Simon Baggs of FRP Advisory Trading Limited and Paul Steven Cooper of BTG Begbies Traynor (London) LLP, were appointed as Joint Administrators on March 11, 2026. Tiger Gate Property Limited carried on a business of buying and selling of own real estate. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA (to be changed to FRP Advisory Trading Limited, Minerva, 29 East Parade, Leeds, LS1 5PS). Its principal trading address is 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be contacted at: David Hudson Simon Baggs FRP Advisory Trading Limited 2nd Floor, 110 Cannon Street London EC4N 6EU -- and -- Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor 40 Bank Street Canary Wharf London E14 5NR Further details contact: The Joint Administrators Tel: 0113 831 3555 Alternative contact: Alanna Gee Email: cp.leeds@frpadvisory.com [] Nikita Kumar Joins Willkie Farr's London Restructuring Practice ------------------------------------------------------------------ Willkie Farr & Gallaagher LLP announced that Nikita Kumar will join the Firm as a partner in the Restructuring Department, based in the Firm's London office. Graham Lane, Co-Chair of Willkie's European Restructuring Group, commented: "We've seen the global restructuring landscape become increasingly complex, with cross-border work on the rise and private credit gaining significant traction across global markets. Nikita is a highly talented restructuring lawyer with a strong track record of managing successful restructuring matters in the UK and across Europe. Her addition is a natural complement to our growing global platform and we are delighted to welcome her to Willkie." "Nikita's arrival further strengthens our cross-border capabilities and builds on Willkie's rapid growth as a leading restructuring practice with a globally integrated team across the UK, France, Germany and the U.S. Her deep experience advising on complex restructurings, including those involving private credit, will be of significant value to our clients in the European restructuring market and globally," added London partner Marc Hecht, who joined Willkie at the beginning of the year to further bolster the European Restructuring Group. Nikita counsels clients on domestic and cross-border stressed and distressed situations, including debt restructurings and liability management exercises. She has represented a variety of stakeholders, including creditors, debtors, sponsors and insolvency practitioners, on various restructuring matters. Nikita also has significant experience advising funds on private credit restructurings in recent years. She joins Willkie from Simpson Thacher. Nikita commented: "Willkie's global restructuring platform and its leading reputation across the U.S., UK and Europe present a tremendous opportunity for the next phase of my practice. I am thrilled to join the talented team in London, and I look forward to contributing to the continued growth of our restructuring offering to clients across the Firm." Willkie's Restructuring Department is a global practice comprised of attorneys with market-leading capabilities in all aspects of business and financial restructurings and insolvency matters. Its integrated U.S. and European restructuring professionals offer the hands-on, results-driven experience that today's distressed situations demand. The practice is held in high regard for its responsiveness and proven experience in complex multi-lateral cross-border restructurings (both in and out of court). It represents a broad spectrum of clients in the U.S., UK, France, Germany and other key European jurisdictions. Willkie Farr & Gallagher LLP -- http://www.willkie.com/-- provides leading-edge legal solutions on complex, business critical issues spanning markets and industries. The firm's approximately 1,300 attorneys across 16 offices worldwide deliver innovative, pragmatic and sophisticated legal services across approximately 45 practice areas. =============== X X X X X X X X =============== [] BOOK REVIEW: Management Guide to Troubled Companies ------------------------------------------------------ Taking Charge: Management Guide to Troubled Companies and Turnarounds Author: John O. Whitney Publisher: Beard Books Softcover: 283 Pages List Price: $34.95 Order a copy today at: http://beardbooks.com/beardbooks/taking_charge.html Review by Susan Pannell Remember when Lee Iacocca was practically a national hero? He won celebrity status by taking charge at a company so universally known as troubled that humor columnists joked their kids grew up thinking the corporate name was "Ayling Chrysler." Whatever else Iacocca may have been, he was a leader, and leadership is crucial to a successful turnaround, maintains the author. Mediagenic names merit only passing references in Whitney's book, however. The author's own considerable experience as a turnaround pro has given him more than sufficient perspective and acumen to guide managers through successful turnarounds without resorting to name-dropping. While Whitney states that he "share[s] no personal war stories" in this book, it was, nonetheless, written from inside the "shoes, skin, and skull of a turnaround leader." That sense of immediacy, of urgency and intensity, makes Taking Charge compelling reading even for the executive who feels he or she has already mastered the literature of turnarounds. Whitney divides the work into two parts. Part I is succinctly entitled "Survival," and sets out the rules for taking charge within the crucial first 120 days. "The leader rarely succeeds who is not clearly in charge by the end of his fourth month," Whitney notes. Cash budgeting, the mainstay of a successful turnaround, is given attention in almost every chapter. Woe to the inexperienced manager who views accounts receivable management as "an arcane activity 'handled over in accounting.'" Whitney sets out 50 questions concerning AR that the leader must deal with -- not academic exercises, but requirements for survival. Other internal sources for cash, including judiciously managed accounts payable and inventory, asset restructuring, and expense cuts, are discussed. External sources of cash, among them banks, asset lenders, and venture capital funds; factoring receivables; and the use of trust receipts and field warehousing, are handled in detail. Although cash, cash, and more cash is the drumbeat of Part I, Whitney does not slight other subjects requiring attention. Two chapters, for example, help the turnaround manager assess how the company got into the mess in the first place, and develop strategies for getting out of it. The critical subject of cash continues to resonate throughout Part II, "Profit and Growth," although here the turnaround leader consolidates his gains and looks ahead as the turnaround matures. New financial, new organizational, and new marketing arrangements are laid out in detail. Whitney also provides a checklist for the leader to use in brainstorming strategic options for the future. Whitney's underlying theme -- that a successful business requires personal leadership as well as bricks and mortar, money and machinery -- is summed up in a concluding chapter that analyzes the qualities that make a leader. His advice is as relevant in this 1999 reprint edition as it was in 1987 when first published. John O. Whitney had a long and distinguished career in academia and industry. He served as the Lead Director of Church and Dwight Co., Inc. and on the Advisory Board of Newsbank Corp. He was Professor of Management and Executive Director of the Deming Center for Quality Management at Columbia Business School, which he joined in 1986. He died in 2013. ********* 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 * * *