Ardagh - comment

Ardagh’s latest development is negative for the bonds, with a Luxembourg court temporarily blocking Ardagh Holdings from proceeding with the potential sale of its stake in Ardagh Metal Packaging (AMP). The order follows an ex parte application by certain minority holders of the 2027 Senior Secured Toggle Notes, with Ardagh stating that it has not yet had an opportunity to make its case and will vigorously challenge the order. The immediate impact is to put the AMP sale process on hold, removing an important potential liquidity/value-realisation catalyst for the group.

The development is particularly relevant given the AMP sale had become a key part of the post-restructuring story, with Ardagh Holdings preparing to potentially acquire the remaining AMP shares before selling the business. The key issue now is the legal basis of the creditors’ claim. We do not view the injunction as a definitive block to the sale.