Atalian - comment
Having passed the 67% minimum consent level (73.8%), Atalian can proceed with its exchange plan via an accelerated safeguard process. The deadline for acceptance is Feb-9 at 1700 GMT, and no extension has been offered. We expect a rush of consenting bonds before tomorrow’s deadline, as there is no point in holding out now. Atalian may reach 90% consent if Ad Hoc committee bondholders who were unhappy with the deal now consent. Atalians decision not to offer an extension may indicate confidence that it will achieve 90% consent per bond issue. If the marginal cost of utilising the safeguarding process is modest relative to executing outside of court, Atalian may want to get on with it. Higher consent levels dilute the €100m redemption, but this is not a concern for management.