HSE24 - comment

The restructuring proposal already has 78% support from bondholders, so a successful counterproposal is unlikely; the existing equity will remain in control, but with bondholders sharing in any value via a contingent value instrument (CVR), giving them 37% of any equity distribution. Whilst we understand the desire to retain management, the worth of Providence remaining in place is less clear, but both are being incentivised further to secure an extension of supplier finance (€15m - €20m of liquidity will be lost if this does not happen). We will assess the valuation of the instruments.  We will decide whether to sell or participate and update you all in the next few days. A consent solicitation will be launched in mid-April. 

The €630m SSNs will take a 15% haircut; €340m will be an SSN and €192m in a subordinated PIK. The 15% haircut will be satisfied with a contingent value right instrument equating to 37% of any equity distribution.