Adler - comment

Movements between the bonds. The short-dated ADJs have been showing some signs of profit-taking. Depending on alternative solution, they might be relegated into the p.p. bucket with the other bonds. The mid-section is seeing a bid and the long-dated 27s (interestingly) and 29s are continuing weak - or at least that is what we are seeing and it's not quite what we’d expect at this time. In response to the publicised organisation of the 29s, represented by Akin Gump and Gleiss Lutz, the German landlord communicated this morning that more than 60% of aggregate bondholders have signed the LUA. It further noted that it has passed the important 75% hurdle for half of the issues. While 75% of each issue may not be required to vote the bonds in favour on the day, we can assume the 2024s will be one of the three bonds that have reached the quorum and the 2029s not. The question we are trying to answer now is if away from a UK scheme or a German StaRUG there isn’t also a solution under WpHG that perhaps only requires 50% quorum from the long-dated bonds.