Ardagh Group - comment

The appointment of advisors by the company and bondholders fires the starting gun on restructuring the Ardagh Group (ARGID) debt stack. The fact that the restructuring train is coming much faster than anticipated suggests the SUN's impairment will be at the upper end of our expectations. With creditor discussions now taking place, ARGID could take this opportunity to let the April 25 bonds become current. Our thesis is that the senior secured bonds are covered, but the SUNs face significant impairment. We will update our analysis today to provide a more detailed picture as soon as possible.