Emeria - comment

Rumour has it that Emeria has chosen PJT to address its balance sheet. We imagine a strategy that will include some level of shareholder support to keep the company out of Sauvegarde and end up more akin to an A&E than a full LME. The SUNs should theoretically fare well enough in that scenario. The greatest danger to them could be themselves. We maintain that this is still European Distressed’s best company, but the bonds are naturally trading more defensively now.