Intrum - comment

Intrum have spent a significant amount of time on the Q324 call talking about their plans for a Ch11 pre-pack. Contrary to what we had been hearing and reading, the Lazard group is actually not sufficient to reach a supermajority and promise a restructuring under the bond documentation only, but would merely allow access to the cheaper UK plan scheme. So as the value of a potential agreement with Lazard is therefore lower, we consider a last minute agreement now less likely and switch base case scenario to a Ch11 plan instead. Notwithstanding our constructive outlook on the process, we still find the remaining debt on the company excessive and struggle to get excited at these levels.