Senvion - Consent Solicitation
All,
Senvion are out with a consent solicitation. The request is to raise the threshold for acceleration of the bonds from 25% to 50%.
Thoughts:
- This is reasonably standard and serves to protect the bonds from themselves.
- The ad-hoc group has over half of the notes, so moves into a blocking position.
- We would ordinarily have liked to see a mechanism limiting the time for which we give up the rights (not only bonholder risk) as well as guaranteeing fair treatment among bondholders, but
- Because the adhoc group has the majority and a simple majority is all that’s required to pass the consent, its a done deal anyway and nobody is really asking the rest of us at all.
Note that the document alludes to the ongoing need for fresh cash. A deal for fresh cash from existing lenders could not be reached. An ETA for the IDW-S6 has also not yet been given. So the situation continues in limbo.
So we are glad we are not involved. If we were, we would likely consent, but its only a matter of form, with no fee attached. So we might as well be skipping the admin.
Wolfgang