Casino wins S 18-month breathing space News Page 8 Germany prepa Saudi Arasian court gives green light to AHAB restructurng under new law News: ape? tor auto restructurings Having enjoyed a ‘golden economy’ powered by the relatively low euro and high exports to China and the rest of the world, Germany's vaunted car industry is now facing a historic challenge which has already seen a rise in insolvencies and restructurings. A=: industy have aleady entered shee onthe it ree mots Indudng sa Avomote cea! Guape Mian and So Automate ‘corbin of este, the eed to sheds be nero Bots produced We worcou dearer chasers cetigpiinny ene ake he comang Monts becuse of he cosy, ng SDastvey of oe potesnas wang one Trike carer er the pase of deding vary umber tas been engin Shee 201s tke to ened The mon ca eau ndsoy Tsetse consons were prove y whe tah Resrcg Boome cred Chognened baum Ap yea the frog compar Of the 104 restructuring bankers, 68 per cent expect bankruptcies to increase in 2019. Neatly three-quarters, 72 per cent, consider companies from the automotive industry particulary crcl. According to the survey, 52 per cent sai that they had received mare new crisis cases for processing in the past half-year, compared to 30 per cent last autumn. The share of those who reported declining numbers dropped to 12 per cent, compared 0.20 per cent inthe previous period. As for restructuring, 70 per cent predicted rising numbers, compared to 42 per cent previously Just 2 per cent forecasted a fall Georgiy Michailov, head of Struktur Management Partner, commented: “The strikingly pessimistic assessment of the restructuring experts reflects the expectation of a significant downturn," 9 Rothschild seeks a buyer for Senvion New ge PCPS ey wm ‘Germany prepares for auto restructurings Letter from the Editor ‘News: EY invents Stressmeter’ that can predict auto supplier bankruptcies Mobisol solar power company rns out of juice; Rothschild seeks ‘a buyer for Senvion Basler shows there can be life after liquidation Retail dip hits Germany as Monsoon liquidates, Gerry Weber shuts stores Galapagos clinches lock-up agreement with creditors ‘Saudi Arabian court gives green light to AHAB restructuring under ‘new law; DIC creditors must walt ‘on Doncasters’ UK£800 milion restructuring Casino wins 18-month breathing space ~ but will French banks accept haircut? Lend insolvency casts shadow ‘over peer-to-peer lending sector 10-1 British Stee! extends deadline 1" for bids Break-up of Thomas Cook nears ‘as Fosun and Triton prepare bids Calendar of EventsGalapagos clinches lock-up agreement with creditors Galapagos SA, which is owned by European private equity house Triton Partners, has clinched a lock-up agreement with its creditors aimed at a restructuring, following problems at its two German industrial subsidiaries, Enexio and Kelvion. fora showdown with Galapages Holding SA bondholders when they appointed acvsers, since they feared the German companies might breach debt covenants Galapagos's problems stem from two units it bout from German conglomerate GEA Grous AG in 2014 for 1 3illon euro, The private equity owner isrow seeking to sell Enexo, which makes cooling equipment used in poner plants and whichis feeing the impact of a gobal switch to renewables Enexo lost more than a thd ofits sales in the first nine months of 2018 and is making consistent losses. There have aso been management changes at ‘the second acquisiton from GEA, Kelvon. Kevion ‘makes heat exchangers for a range of industries, including energy, and has proved vulnerable %0 volatile ol prices. E&: this year Teton seamed to be headed Kelvion has had four finance chiefs in four years. (On 7 June Galapagos announced that it hac received overwhelming suppor from financial stakeholders to its proposed balance sheet restructuring transaction.” ‘These incuced holders of senor secured notes (SSN), all of the lenders under its super senior revolving credit facility (RCF) agreement and ‘those under its super senior gurantee facility agreement, as wall as certain Titonsmanages funds The company says it plans to execute a balance-sheet restructuring transaction, which vil see a major recapitalization of the business, de-leveraging of the group'sbalance sheet and an extension ofthe group's debt matures, subject to the satisfaction of certain conditions.” Triton 's injecting 140 milion euro of equity and/or subordinated debt, and providing 3 new 24.8 millon interim funding in the form of a RCE The senior secured notes will be restructuring using an English Scheme of Arrangement, and Triton will remain the majority shareholder. The aim is to complete the transaction by 31 October. The banks will supply 2 new 65 millon euro RCF and new guarantee facies ‘of 260 milion eu. Galapagos aso said it was in discussions with ‘nad hoc group of holders of the 7 oer cont senior ‘notes due 2022, with which they hope to each a consensual agreement. If not, the company saic it may exerese its rights under the interreditor agreement. COMI shift to the UK ‘The UK may be engaged in a neverending Brexit drama, which has raised serious questions about future as a cross-border restructuring hub Nevertheless, Galapagos has decided to shift its ‘COMIto the UK inorder to use an Engish Scheme of Arrangement. Seniors v juniors Galapagos bandhokers are not a homogeneous group. Junior bondholders holding 250 milion euro had grown nervous in recent months that seniors representing issues totaling 525 milion ‘eurohad got organised and res Meelis and Akin Gump (se below, Galapagos's secured bonds have traded recently at 60-70 cents on the euro, stable since Jarry The 250 millon euro of junior notes have been quoted at about 18 cents, down from well ‘ver 20 cents atthe beginning o the year re eu a toctd The company Galapagos is represented by irkland & Els, with 2 team led by Sean Lacey in London, Financial adviser is Macquarie, led by Dr Max Mayer-Eming, head ofthe financial restructuring dhision for Germany, Austria and Swtzetand, He's assisted by Markus Freund. The senior secured notes ‘Anvad hocgtoup ofthe senior secured notes (SSN) are represented by Akin Gump, led by Neil Devaney. Financial advisers Moalis, od by Charles Noel-Johnson and Marcel Brouwer. The RCF banks ‘The banks providing the super senior RCF and guarantee faclites are renresented by Linklaters, led by Rebecca Jarvis and James Douglas. The subordinated bonds The subordinated bonds are represented by Mibank, led by Yushan Ng, Financial advisers Gleacher, led by Deniz Akgul and Dorian Lowell ‘continued from page 3 Senvion Firms & Faces The company Senvion has hed Rothschild, led by Henning Block in Frankfurt Am Main, to find a buyer The company isreoresentd by Kiran & Eli, witha tear le! by Leo Plank “The CRO‘n charge unde thes acinsrason proces is Thorsten Bieg from the lav fm ORG in Hamburg, together with his colague GGeritHlze. The duo previous perermed the same tumarourd role at KTS Energe sjobaltumsround com | June 2019 ‘The sachwalter, or monitor reporting to the district court of Hamburg on the self- administration, s Christoph Morgen, 2 lawyer ‘rom Brinkmann 8 Partner DLA Piger and White & Case have aso advised ‘the executive board, Centerbridge Senvion’s main shareholder, Centerbridge, is represented by Latham, with a team including restructuring partner Frank Grell The banks A total of 18 banks including Deutsche Bank, BNP Paribas, Bayernl8 and JP Morgan are represented by Citford Chance. The aw firm is deploying a team of German, British and American lawyers including restructuring partnor Stefan Sax in Frankfurt. There is a 125 million euro super senior RCF and an 825 milion euro super senior guarantee facility, rmestly dawn, The bondholders ‘The bondholders are represented by Sidley Astin, led by Kolja von Bismarek, and White & Case, led by Keine Nennungen