Intu SGS - proposal to improve liquidity in the short term

All,

A hefty proposal document putting ultimately a stop gap measure to improve liquidity at the SGS Finance vehicle.  The Company have proposed, and it is likely to be approved, several amendments including the ability to PIK interest, release trapped cash and waive default in the short term.  This is a Company led proposal, which has received indicative support from 2/3rds of the bond/term loan holders.  

However, it should be noted that this is only a stop gap measure.  It allows some time and flexibility to the Company and finance vehicle, but further proposals are likely in the medium term as the bondholders/term loan holders and Company discuss the future of the SGS assets. 

We expect the proposals will be approved.  We have not taken a position in the bonds.  

Happy to discuss.

Tomas