SBB Norden - comment
The additional €53m of EMTN holders seeking to accelerate their holdings makes little difference to the case being heard in the English High Court in January. If SBB loses, the whole EMTN program will be capable of acceleration, and the company will have to seek court protection. The funds seeking acceleration of the bonds represent €103m of liquidity, making it even less likely that SBB will try and cut a side deal and buy the holders out to avoid the risks in a court case. Our analysis supports the company’s view that the ICR covenant has not been breached.