HSE24 - comment

If the company has appointed advisors, this is positive for bondholders. The sooner the debt is restructured, the better. There is little point in the company waiting until maturity. There is no prospect of new money from ICG and value breaks in the SSNs. Reaching an agreement on restructuring with creditors before suppliers focus on looming maturities will help reduce pressure on supply lines. We expect a debt-equity swap, with the bondholders taking c90% of the equity. The equity will likely prefer an A&E operation, giving them more time, but we cannot see the growth needed to support current debt levels. We will look to get more details and will update you all further.