Branicks (DIC Asset) - comment
Today’s announcement of a restructuring project for the promissory note loans (under StaRUG) reflects the difficulty in extending the term of these loans. If 75% of the 2024 promissory note holders (the class impacted) agree, any holdouts can be bound. Branicks claims they had 75% support already. The restructuring project lifts the immediate liquidity threat, but a further extension of the €200m VIB Bridge and further covenant relief is needed. The existing agreement with the bridge lenders runs out at the end of March. The annual results will now be published on 30 April to give the company time to complete its various discussions. We are updating Branicks and will publish our analysis soon.