Ardagh Group - comment

Press reports have the PIK holders appointing White & Case to advise on accepting the restructuring plan put forward by the Ardagh Group. The Ardagh HoldCo PIKs are in a weak position, as reflected by the offer of 7.5% of the Equity in Ardagh Group for their $2.2 billion in notes. Given value breaks in the SUNs, the PIKs will struggle to improve their position, but may hope to be offered some additional crumbs to go away.  Already, 60% of the PIK holders have signed up to the restructuring deal, so this is an attempt to hold out for a better deal by preventing PIK acceptance from reaching 90% and potentially forcing a court hearing.