Europcar - no response
All,
We had expected consents to be more readily forthcoming. L&W Paris are locked in conference calls all day and despite best efforts, we - and even Lazard - have yet to hear back ...
The bonds are not in strong enough a position to hold out and barter for much at this early stage. To deliver a workable proposition to the company they will in all likelihood have to find a cram-down mechanism and Sauvegarde provides that. To take the restructuring into the UK, where shareholders do not need to consent to their dilution, we think would require a full-on COMI shift and that in turn would require the cooperation of management and informally the French state and would be possible at a later stage anyway. Also, Sauvegarde has precedents in CGG, Technicolor and Solocal that should sufficiently pave the way.
The consent threshold lies at the usual 50% and we understand that aside from a significant committee the majority of holders has identified itself. Since then, of course, the RCF has traded and that clearly changed a few things.
We still expect the consents to be given, but are awaiting further colour at this time.
Wolfgang
_________________
2 Stephen Street
London W1T 1AN
E: wfelix@sarria.co.uk
T: +44 203 744 7003