ProGest - comment

After a successful exit in August 2021 we never again took up coverage of the name. Wedged between two commodity markets, the Italian test liner and cardboard producer, the company is not fully in control of its margins and we considered ourselves lucky to get out at 96.5 (or anywhere near it). Over the last years, the bonds have been successfully primed by about every other creditor in the structure and while restructuring talks have been ongoing for a while and while the Concordato Preventivo has changed, the company’s decision today not to pay interest has reminded us why hard assets are often no better than no assets.