Oriflame - comment

Oriflame published a pre-recorded call yesterday and announced the transfer of four subsidiaries out of the restricted group, stating: "we are in active discussions to raise financing on the assets of the URS [unrestricted] Subs.” Following a similar move of the Russian business in early 2022 this move has been widely anticipated. We do not have concrete evidence of what precisely the perimeter is of these subsidiaries, but we gather they should substantially include all production facilities, software IP and possibly a large part of the operating business under Oriflame Cosmetics AG. Again, we do not know the precise perimeter of operations/assets that has been moved out of creditor reach, but it is unlikely to represent anything positive for bondholders.