EURx

Covering all things European restructuring.

[EURx @EURestructuring]

Welcome to EURx.

I see a lot of accounts on X doing great work covering US distressed, but Europe feels underserved; there’s a lot going on here, and we should be talking more about it. So let’s get to it.

Here we’ll cover all things European restructuring, everything from LMEs and market chatter around stressed situations to actual filings straight from the court records: UK schemes and plans, StaRUG, WHOA, sauvegarde, and the European names that end up in US courts.

Decks, deep dives and general distressed knowledge at eurestructuring dot com.

Follow, comment, bookmark, tell me this is pointless… any feedback welcome ✌🏼

[EURx @EURestructuring]

@WShak1 @anchovycapital Co-op and non co-op don’t grant those in possession of MNPI (the Aston bond steerco of Arini, Tresidor, Sculptor) the ability to trade these bonds. In loans there is the concept of big boy language, not here though.

[EURx @EURestructuring]

@WShak1 Saw an interesting theory here:
https://t.co/rzTDZeTIQX

[RiverRoadPartners @partners_road]

“David Meneret of Mill Hill Capital has been focused on Arini’s outsized influence, noting that at peak they had nearly $15B in high yield exposure, levered 16:1 via CDS; i.e. they were long nearly 1/4th of the entire high yield market.” This is from @profplum99. His excellent

[EURx @EURestructuring]

@anchovycapital @WShak1 From what I understand, Arini couldn’t defend positions in Aston Martin, Cerba, Altice Int’l, Tele Columbus etc bc they are in the co-op and restricted. So couldn’t be them bidding those bonds.

[EURx @EURestructuring]

@junkbondinvest Aren’t they just doing normal course CLO creation when the arb makes sense? I doubt it has much to do with where loans are trading today. CLOs often shy away from stressed risk (and have fixed CCC buckets).

[EURx @EURestructuring]

I fully appreciate and understand the implications of a capital flight from the AI trade. But is that actually happening? IMO, raising smaller or more expensive target amounts (still several billions) isn't the same as not raising capital.
https://t.co/ax55AVdOPb

[junkbondinvestor @junkbondinvest]

SpaceX is looking to raise a massive $40bn of debt, led by Apollo and GS (per Semafor)

$SPCX

[EURx @EURestructuring]

Related (via FT Alphaville “If you think Triple-C bonds are having a rough time . . .”)

https://t.co/G0tBUKXQK3

[EURx @EURestructuring]

Since a few of you asked, I’ll start running a weekly underperformers chart for European loans as well

Top underperformers in European loans, week ending 30 October (wtd cash px moves)

STYRO down 8-9

Altice -8

Sitel down 7.5-8

Veonet, Rovensa, Foncia, Modulaire -4

[EURx @EURestructuring]

@LongDura @HYcorps Agreed. They are traders at heart, not fundamental credit investors, to the original post’s point. And Hamza has (like it or not) developed a loyal following. So as traders, I’m wondering if they can trade their way out of this (with some suspension of disbelief from LPs)

[EURx @EURestructuring]

@HYcorps 👊🏼 PMED back to par!

[EURx @EURestructuring]

@crockejo @IlliquidInsight Right. That’s the other feature of the product that’s quite useful in these markets. A bit like Hotel California…

[EURx @EURestructuring]

https://t.co/bSOui5JLOV

[EURx @EURestructuring]

@junkbondanalyst What a strange article. “CLO managers do their jobs”

[EURx @EURestructuring]

@anchovycapital WSJ report says they've sold $800m of positions, and the early October bloomberg article from the $1.5bn fundraise says they'd allocated $400m so far. So perhaps $1.2bn (so far) has gone to margin calls.

[EURx @EURestructuring]

@anchovycapital Right, I saw that WSJ report last night as well. Perhaps the $1.5bn is earmarked for future new money commitments and any further capital calls they may receive. Not an ideal scenario though, is it

[EURx @EURestructuring]

Since a few of you asked, I’ll start running a weekly underperformers chart for European loans as well

Top underperformers in European loans, week ending 30 October (wtd cash px moves)

STYRO down 8-9

Altice -8

Sitel down 7.5-8

Veonet, Rovensa, Foncia, Modulaire -4