OHLA - comment

Bondholders will obviously waive the covenants. Resolving the entire matter for €26m is expensive, but worth it. Still, OHLA seem intent on continuing the fight in Spain. OHLA has approached bank lenders and bondholders requesting a waiver of potential Events of Default arising from a EUR 26.4m judgment obtained by Kentz and Voltas, subcontractors on the Legacy EPC Sidra Hospital project in Doha. As per our previous note, the Qatari cassation court dismissed all appeals and upheld the award against the OHLA/Contrack JV (OHLA 55%).

Kentz and Voltas must now obtain recognition of the foreign judgment before they can collect. That process is not automatic and can take years. Under Condition 12(d) of the SSNs, however, an unsatisfied judgment above EUR 4m triggers an Event of Default after 30 days, and any resulting bank line acceleration would trip the cross-default under Condition 12(c) above EUR 30m.

So bondholders need to allow time to prevent the company from having to pay the fine outright. The waiver runs to 3 January 2027, co-terminus with the refinancing window management has guided to. We hold the SSNs and are reviewing.