Emeria - comment

We understand that the hired PJT, which explains some of the movement earlier this month. We don’t think the shareholders can materially threaten the senior secured creditors with any fall-back scenario that won’t lose them the company. The SUNs are more vulnerable and depend on the shareholder injecting cash, a scenario in which they will be asked to give up some value, but in which the SUNs should be able to retort with a nuke option. We like the company. Management overdid the roll-up and reacted late, lost money in CH and Germany (minor in the context), and the French market is not doing well. But the business itself is very attractive and should shine in the next cycle.