Kem One - comment

Kem One bondholders held exploratory talks with law firm Paul Hastings earlier this month, exploring options in the event of a second restructuring. Q2 results remove any doubt. Q2 EBITDA was €1m compared to €22m in the previous year. Once again, there is a litany of excuses for the lower EBITDA, including reduced underlying demand, higher energy costs, and a slower-than-anticipated ramp-up in the Fos project.

More worryingly for long investors, there is commentary from management stating that markets are not expected to improve by the end of the year. Specifically, the European market is beginning to experience Asian trade flow redirected from the United States to Europe due to tariffs.

We have some issues reconciling the EBITDA and pro forma EBITDA stated in the presentation, but frankly, it is irrelevant. We will update the figures later, but even the adjusted numbers presented by the Company point to a dire situation. We remain short the bonds.