Frigoglass - comment

The company has published the results of its complex restructuring negotiations and we are a little bit surprised that the family has not managed to or chosen to remain in control of the company. While the Bridge Notes, including Additional amounts, now more closely reflect our view of required fresh cash, we have to assume that the oversized reinstatement must be a tax strategy. Worryingly, we have not read a word so far on the future relationship with Coca-Cola and Hellenic Bottling, even as projections seem to imply a certain continuation. As we wrote in October, the fresh cash is required still several months before we have certainty of survival of the European ICM operation, which is currently based in Russia. This still inserts some incalculable risk, even as in the 30s the bonds are fundamentally not unattractive.