Debenhams, Senvion

All,

Some morning thoughts:
- Debenhams yesterday published an update indicating that the season is going worse than expected and that LdL sales continue to slip. As a consequence, management is now looking for a more comprehensive restructuring (i.e. debt for equity) instead of just a bridge facility. 
- Senvion banks have hired Moellis and Clifford Chance, while the company had hired Kirkland & Ellis and PJT.
- I’ve been thinking about ways Kokkalis can delever the balance sheet - because merely handing the 21s a security package to play for time does not really achieve that. One route would point to approaching the 24s instead, handing them a secured stub to leapfrog the 21s and 70% of the equity. If the stub were for 200m, NCF would be likely flat and the 21s - at 4.5x proportionate EBITDA may in time be refinanceable. The point is that this would be more attractive to the Kokkalis than a mere term- out and that the long 21s / short 24s trade may need some work.


Wolfgang