SBB Norden - comment
Fir Tree has reassessed the risks of losing its litigation to claim a par repayment and reduced its position accordingly. The success of the recent exchange offer has reduced the potential damage to SBB of an acceleration event on the EMTNs, so SBB will not offer to buy out Fir Tree’s holdings. Fir Tree continues to hold €7.5m, and the case begins on 14 January 2025. Our view remains that the ICR covenant is sufficiently vague, and the fact that investors didn’t challenge it makes a successful claim for breach is unlikely.