Rotation of Coverage - RSVP
All,
As the Special Opportunities space is handing us once-a-decade opportunity to invest in dislocated assets, we are proposing to shift coverage out of certain old names we no longer find attractive for various reasons and into new names.
1) Please let us know if you would like continued coverage of any of the following “old” names, which we will otherwise shelve for the time being. To the extend we hold legacy paper positions in these names we will be looking to exit them at a plausible price.
Names we propose to shelve:
1 Astaldi - Sold the Bosphorus bridge today for an unexciting $215m net of counterclaims with an unexciting payment schedule.
2 KCA Deutag - Was a restructuring waiting for a covenant breach before Oil dropped. Extensive EM exposure adds to the uncertainty.
3 Loewenplay - Has failed to redistribute its estate in line with onsetting regulation and needs to restructure unless it can be sold at a very inflated price.
4 Mangrove (Galapagos) - Following a rather exciting cat and mouse game between Sponsor, SUNs and SSNs, the company is turning around and flush with fresh cash, but we are concerned about the oil exposure - even though not directly affected by oil price and the name has become wholly illiquid, which makes it useless to most of you.
5 New Look - Looks like another restructuring.
6 Seadrill - Was a second restructuring in negotiation. In a world of $25/Bbl, cheap drill rigs are probably a great long-term investment, but not one we feel many will be concentrating on for now.
2) Please also let us know if you have any priorities among the “New Names” or if you would like to see a name that is not on the list.
Names we propose to start:
1 Algeco Scotsman - previously covered
2 Antolin
3 Atalian
4 Avis Budget
5 Carson Wagonlit
6 Cirsa
7 CMA
8 Dia
9 Dufry
10 Europcar
12 Fives
13 Hertz
14 IGT
15 Jaguar Landrover
16 Manteencoop
17 Nordex
18 Playtech
19 Samsonite
20 Selecta - previously covered
21 Stena
22 Swissport
23 Tui
24 William Hill
Wolfgang