Takko - comment

The bonds have now moved up, on the one hand, to reflect a cancellation of the bond repo, which is producing a short squeeze and on the other to account for another scenario we have been favouring, where Silverpoint, Albacore and Napier Park choose to equitise disproportionately in return for full control of the company and offering to roll other bondholders at a more attractive rate and possibly with a minor cash payment too. Rollers would not receive par value, but 90s should be achievable. Naturally, we have not discussed this scenario with the relevant funds (they wouldn’t), but if it makes no sense to you, please give us a call.

This summer and as recently as October, we anticipated more involved creditor discussions to take place in the summer, following a successful refinancing of the Sr. Facilities incl. the TLB. As feared, however, the TLB seems to include parties who are looking for an exit, which requires finding new lenders or fresh cash from the existing. Now, the cancellation of repo suggests that increasingly concrete discussions are well underway, even as from a liquidity standpoint Takko should have time until March. Be it all as it may, we could receive something from Takko much sooner than we thought. Where are the Q3 numbers anyway?