Kem One - comment

Kem One serves as a cautionary tale for chemical investors. Holders of the original Senior Secured Notes will see their claims fully extinguished, receiving only out-of-the-money warrants in return. While the company has not published a full business plan, FY28 EBITDA expectations of €126m compare poorly with the FY26–FY27 projections of €123m and €186m presented in March 2025 during the prior restructuring. More concerning, capex remains elevated, leaving FY28 EBITDA less capex of just €45m.

Even the 2025 New Money will be equitised under the transaction. Kem One still requires €100m of additional funding, to be raised through a mix of ordinary equity, preferred equity, €15m of new debt, and an expanded RCF. As the transaction eliminates all listed bonds, we will remove Kem One from our coverage universe. Happy to discuss.