Adler Pelzer - Positioning

Keeping the price high has allowed incumbent creditors to keep out more aggressive funds that would be ready to own the company at their entry price. So the incumbents prefer to perpetuate the excess leverage situation; let the successor PM hit the wall with it… 

As a result, the plot is thickening that the borrow available on this bond will evaporate. We are reading that the company is wallcrossing accounts to prepare for A&E discussions, likely to take place in the new year. As a result, we feel compelled to close out our short position for technical reasons after all, even though we remain of the view that risk is materially skewed to the downside, if talks fail after all, and that in the long run this company (and its creditors) would be better off investing in CapEx rather than sweating these assets.