Intrum - comment

The news yesterday that Intrum have the support now of 72% of noteholders documents the intensity of the fight over the last required votes to bring the deal through the UK courts instead of using Chapter 11 or a Swedish restructuring. The cost of a UK plan scheme would be far lower and the certainty of success would be higher. Holding out for better terms is a group of 18% of the notes that is being advised by Ropes & Gray and Gernandt & Daniellson and which recently united behind Lazard, leaving only four percent in play. We imagine Intrum will try to find three of those before engaging with the holdout group over possibly executing the deal directly under the bond documentation, which we see as the most likely outcome.