Kem One - comment

We commented on the Q2 results yesterday, but a brief note on the Company’s recent conference call is warranted. Management’s remarks offered little optimism, with confirmation that a new factoring facility of €100 million has been secured, representing an increase of €40 million from the previous arrangement. An additional €30 million of this new facility was drawn during the quarter. Furthermore, the CEO announced his departure from the business. This development is perhaps unsurprising, given that he repeatedly mispronounced the name of the interim CFO during the call.

The only notable surprise is the relatively modest decline in bond prices, which are currently trading at 28. A further decrease should be anticipated.