fabriziof
Forumer storico
Update: Wind Hellas Creditors Set To Stop Trading After Results
First Published Monday, 23 August 2010 06:17 pm - © 2010 Dow Jones
By Irene Chapple
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- A group of Wind Hellas' senior creditors are ramping up efforts to take control of the company following its second quarter results Monday by preparing to quit trading its bonds, according to three sources close to the situation.
The shift to go "restricted" will be requested late Tuesday by a group of senior secured bondholders. The move means they agree not to trade the Wind Hellas bonds in return for access to more detailed information on the company.
It reflects a step up in the Wind Hellas sale process, which was triggered in July after the Greek government introduced austerity measures in the wake of the country's sovereign debt crisis.
The company, which is owned by Weather Investments, an investment vehicle majority-owned by Egyptian entrepreneur Naguib Sawiris, Monday reported second quarter results showing revenue dropped 27.5% year-on-year to EUR202.3 million. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA), showed a 52.4% drop year- on-year, to EUR39.1 million.
In a statement the company said: "these results were impacted by the prevailing very difficult Greek macro-economic context, the roll-out of the government's austerity measures and a challenging competitive environment."
The bonds traded flat to slightly higher on the 2Q10 results, indicated at 30.5/32.5% of face value late Monday.
Bidders for the company have been whittled down to around four investment consortia, a group of senior lenders and Weather Investments. They are now undertaking due diligence on the company as they work towards a final offer deadline of Sept. 15. A preferred offer is expected to be announced by Oct. 14.
Early indications suggest that the senior noteholders, which include hedge funds Anchorage Advisors, Mount Kellett Capital Management, Taconic Capital, Angelo Gordon, and Eton Park Capital Management, are set to take control through a debt-for-equity swap, potentially in partnership with an investor prepared to inject cash.
The deal could be sealed by a prepack procedure, a U.K. insolvency process where a business on the brink of insolvency is sold on without liabilities such as debt.
The latest twist comes after the senior noteholders accepted a standstill agreement July 21. This meant they agreed to forego payments due to them in June and July.
The agreement, which lasts until Nov. 5, deferred a EUR17.5 million payment on its revolving credit facility and a payment to one of its banks, which were due July 15.
It comes after last year's debt restructuring, in which Wind Hellas' parent company, Hellas II, went through a prepack sale in the U.K. that saw it declared insolvent and placed in administration, with EUR1.17 billion of subordinated bonds wiped from its balance sheet.
-By Irene Chapple, Dow Jones Newswires; 44 207 842 9291; [email protected]
First Published Monday, 23 August 2010 06:17 pm - © 2010 Dow Jones
By Irene Chapple
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- A group of Wind Hellas' senior creditors are ramping up efforts to take control of the company following its second quarter results Monday by preparing to quit trading its bonds, according to three sources close to the situation.
The shift to go "restricted" will be requested late Tuesday by a group of senior secured bondholders. The move means they agree not to trade the Wind Hellas bonds in return for access to more detailed information on the company.
It reflects a step up in the Wind Hellas sale process, which was triggered in July after the Greek government introduced austerity measures in the wake of the country's sovereign debt crisis.
The company, which is owned by Weather Investments, an investment vehicle majority-owned by Egyptian entrepreneur Naguib Sawiris, Monday reported second quarter results showing revenue dropped 27.5% year-on-year to EUR202.3 million. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA), showed a 52.4% drop year- on-year, to EUR39.1 million.
In a statement the company said: "these results were impacted by the prevailing very difficult Greek macro-economic context, the roll-out of the government's austerity measures and a challenging competitive environment."
The bonds traded flat to slightly higher on the 2Q10 results, indicated at 30.5/32.5% of face value late Monday.
Bidders for the company have been whittled down to around four investment consortia, a group of senior lenders and Weather Investments. They are now undertaking due diligence on the company as they work towards a final offer deadline of Sept. 15. A preferred offer is expected to be announced by Oct. 14.
Early indications suggest that the senior noteholders, which include hedge funds Anchorage Advisors, Mount Kellett Capital Management, Taconic Capital, Angelo Gordon, and Eton Park Capital Management, are set to take control through a debt-for-equity swap, potentially in partnership with an investor prepared to inject cash.
The deal could be sealed by a prepack procedure, a U.K. insolvency process where a business on the brink of insolvency is sold on without liabilities such as debt.
The latest twist comes after the senior noteholders accepted a standstill agreement July 21. This meant they agreed to forego payments due to them in June and July.
The agreement, which lasts until Nov. 5, deferred a EUR17.5 million payment on its revolving credit facility and a payment to one of its banks, which were due July 15.
It comes after last year's debt restructuring, in which Wind Hellas' parent company, Hellas II, went through a prepack sale in the U.K. that saw it declared insolvent and placed in administration, with EUR1.17 billion of subordinated bonds wiped from its balance sheet.
-By Irene Chapple, Dow Jones Newswires; 44 207 842 9291; [email protected]
Perche dici che sarebbe arduo ipotizzare un recover per i senior unsecured?...mi sembra che questo bond holders essendo appunto senior hanno diritti di votare contro o iin favore alla restructuring...