“We are not lawyers, but we struggle to see a legal angle for Akin Gump. Bonds are locked up under the Adler plan with over 75% on three issues and with clear majorities in the other three,” Sarria said. “In the German voting Adler’s plan received over 75% approval for all but the 2029s. That’s all more than enough for a cross-class cram down.”
Sarria added that either plan is flawed, but called the Adler plan a “sitter”.
Read More“An update on liquidity would have been helpful, but it was clearly not something worth shouting about. Also the timing is now sensitive while negotiating at so many levels,” Sarria said.
They will receive a boost from the Corestate stake sale but most of the Corestate stake was held at Aggregate 2, which is separate and direct holdings were small, so that should strengthen [Aggregate shareholder] Walcher’s negotiating position, Sarria added.
Read More“Adler are marrying the pretty daughter first to generate liquidity for the treatment of the sickly daughter,” Sarria said. “They are selling good, fungible assets, which concentrates stakeholders on the riskier development book.”
Read MoreSome of the [Viceroy] valuations seem accurate, according to Sarria. “We are looking at which property is in which entity and how much debt each guarantees as well as how much money each box makes or needs.”
Sarria will host a webinar at 3pm UKT this Thursday (14 October) to discuss the European high yield real estate sector. To attend, one can sign up here.
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