Tele Columbus - comment

A deal between the equity and creditors is near. The €300m equity contribution is more like €200m in fresh cash plus the €100m already pledged, but getting this completed and removing the uncertainty is good news for creditors. TC already has the majority of the SSNs on board, so getting a restructuring deal through is highly likely. As we pointed out in our Accentro piece, bondholders are in a weak position under German law anyway. Avoiding a court-based process and getting the necessary cash in the door are wins for everyone. Details of the transaction will be out in the next few days, and we will update further.