Kem One - comment

Kem One’s performance continues to deteriorate, and with no CEO, it is not a surprise that bondholders are organising. The question is: Is it too late? The previous restructuring allowed a super senior tranche ahead of the bonds, and now, with liquidity constrained, bondholders have limited options. Gibson Dunn have been appointed to advise bondholders, but with the bonds trading at 30%, there are limited signs of hope.  We exited our short position last month due to lack of borrow in the market. We will continue to monitor the name, but a further restructuring is imminent.