Takko - Coupon
All,
So the coupon was paid and Takko merely announced the orderly presentation of financials on June 1st. Clearly, we got it wrong, although as suggested, the bonds did not spike either. The cash situation must be very tight unless Takko have received liquidity in another form.
German reopening and demand:
Between now and June 1st, Germany is likely to relax restrictions, so that we expect management to be very bullish on the call. Also, we receive reports of strong demand in stores after reopening. But even so, we think our downside from positive news is limited and we will retain the position through the call to reassess thereafter.
Positioning:
In no event do we see a situation that returns a great upside to bondholders in the short term. We think we can therefore afford to remain short, but in truth are not expecting tremendous downside. In case of a form of restructuring, we are concerned that smaller bondholders may not be invited to participate in any new money or any upside for that matter - see the last E53m injection.
Happy to discuss,
Wolfgang
________________
E: wfelix@sarria.co.uk
T: +44 203 744 7003