Amara - comment

Details of the Amara deal are not yet public, but it’s progressing at pace. According to a press report this morning, the WC banks and majority note holders have agreed to a standstill with a view to reaching an agreement in principle by the end of the month, which means that Amara won’t make its interest payment on the 15th of January. The deal will involve a sizeable Debt/Equity swap, but advisors are not yet divulging any more information. The investment thesis that we would de-risk via interest payments is therefore limping somewhat, but we continue to believe in the company’s medium-to-long-term value.