Steinhoff - comments

The company confirmed sufficient agreement for the implementation of its A&E exercise from all but the SEAG A1s, who a falling short by only a few percent. That means agreement from all the largest and most difficult parts of the structure except the most sr. tranche. We think that is good news however and expect that either a better offer to the A1s could achieve the required result (although unlikely as this would require all others to vote again) or a separate refinancing transaction, including the B1s, that mimics the same improved economics (already pre-agreed in the transaction proposal). The existing 75% approval from the A1s suggests that the demand gap is relatively small and can be bridged.