Surely Nataxis aren't trying to exit right away... If they were...

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tt2000

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29/05/20

19:09

Post #: 44928088
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Originally posted by cmonaussie ↑

I'm thinking TINA is in play on the negotiation.

Depends on which is the default ... the BB or the 2L Term Loan (which triggers cross default). Assume it is the 2L for the moment

Nataxis have basically said they are out of lending to shalers. CAC (also French) are probably not far behind.

The positive is that SNDE has not actually defaulted on making their interest payments ... nor are they likely to (correct?). The concern from the banking syndicate is the "safety" of the loan ... hence the covenants that act as a early warning. Call those a "technical default". While it is a bank's option to call the loan would it suit the bank's best interests?

The bankers would consider their "portfolio" of loans in the sector. Is the SNDE loan in immediate danger for not making their interest payments? If not, then work with the company to relax/tighten covenants over the remaining period to ensure maximum chances of full recovery (there are other options left for SNDE on the balance sheet).

Who knows ... maybe the syndicate purchased CDS protection.

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Surely Nataxis aren't trying to exit right away...

If they were trying to exit then they wouldn't have agreed to the waiver of the going concern issue, which would have let them trigger default...

I guess this gives us some hope that the same banks will agree to the terms tonight....

SEA Price at posting: 16.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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