Atalian Revenue and EBITDA were in line with our estimates, but the operating environment is difficult, and there is little reason to believe it will improve
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The renewal of Atalian's €250m factoring line did not surprise us. After sticking with Atalian through a restructuring, withdrawing the
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An inability to pass through higher costs to clients continues to drag on Atalian’s results; the company also admitted that full recovery of higher wages will not happen in
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Q2 results from Atalian were weaker than expected due to continued difficulties passing through higher costs in the French business. Full-year guidance has
Read MoreThe jailing of Franck Julien will not impact Atalian badly. Atalian has a CEO in place and needs to focus on operational success over the
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The results were below our forecasts, and despite reiterating FY guidance Atalian will need to work hard on pass-throughs over the rest of the
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Having got >90% consent in each of its bonds, Atalian can now bind holdouts under the bond documents and avoid the need for a
Read MoreHaving passed the 67% minimum consent level (73.8%), Atalian can proceed with its exchange plan via an accelerated safeguard process. The deadline for
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Atalian have reached an agreement with the ad-hoc bondholder group to extend maturities of the 2024 and both 2025 bonds until June 2028, with the new bonds having (3.5% cash and 5% PIK coupon). In addition, €400m of cash, split €240m of rate
Read MoreThe completion of the sale of US assets to GDI offers an exit from Atalian's issues in the US unit but makes little difference to cash. As we commented recently, the
Read MoreMaximilien Pellegrini has left after only a few months, the Strategic Plan has not emerged, and now we have the sale of the US assets. Turning around the
Read MoreInvestors expect to see clear plans for refinancing the 2024 and 2025 bonds when Atalian’s strategic plan is published in late September. We have no
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Please find our unchanged analysis here. We are reserving the update for next month.
In September, Atalian will present its strategic plan aimed to pacify bondholders, whilst leaving the equity in charge of the business. Meanwhile, we are awaiting answers from IR, which have been delayed by the plan and summer leave. Previously, management has
Read MoreThe reports of bondholders retaining a legal advisor is a surprise but not a shock. Atalian has intimated that it would redeem part of the 2024 bonds, but this
Read MorePlease find our unchanged analysis here.
Ahead of its 23Q1 results on 26th May, we heard last week that Atalian has appointed advisors regarding debt refinancing in 2024 and 2025. These days there is not much equity value in the business, and we think there is still a downside to the bond price from
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