Pro-Gest - Ever more binary

All,

Pro-Gest are reporting the successful completion of today’s last two bondholder meetings wrt. to waivers we have previously described here. 

Thus far therefore the company have delivered on steps 2 and 3 of the necessary turnaround plan, namely the term-out of the fine (pending guarantees now) and the renegotiation of the bonds. 

While the company’s chances have overall improved, the bonds are now more binary than they have ever been. To receive various of the waivers, the company has had to pull forward some of their maturities. Thus the Mantova plant now has only a few months to receive the crucial license. Moreover, if it does, it may still not receive it for the full capacity. 

So while we believe Pro Gest have a fair chance now of receiving “a” license for the plant, we still consider the name too much of a gamble.

Wolfgang