Air Baltic - comment

September 11th was always going to be a bit of a day to get people to pay attention - for an Airline anyway. The meeting has been postponed to Tuesday now. A look at the New Bond terms reveals how severely they will layer the bonds. 25% for the period equates to approx €25m, depending on exact timing and more if the process needs an extension. We expect the vote to exceed the low minimum quorum, and expect the present bondholders to accept the proposal, even if the high PIK interest somewhat defeats its coercive roll-up feature. We've admittedly gone from "don't touch above 35c/€" to "don't touch above 20c/€" to "don't touch above 10c/€" to now: Don't touch at all. But at least we've been ahead of pricing development each time.