Cloud 9fin
The Ardagh LME origin story
Apr 1, 2025
Emmet McNally, a European senior distressed credit analyst at 9fin, shares insights on the tumultuous past of Ardagh's metal packaging carve-out in 2021. He and Max Frumes discuss its implications for creditor negotiations and the ensuing lawsuits over alleged value extraction. The duo delves into the complex dynamics between the company and its unsecured bondholders, exploring how to bridge the gap between competing proposals. Listeners get a peek into the intricate world of finance, navigating litigation and restructuring challenges in Ardagh's ambitious journey.
18:33
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Quick takeaways
- Ardagh's complex restructuring primarily centers on its deeply indebted glass operations, posing significant challenges in negotiations with unsecured bondholders.
- Ongoing litigation from creditors regarding past asset management highlights the tensions around value alignment and creditor protections in Ardagh's restructuring efforts.
Deep dives
Current Restructuring Status of Arda
Arda, a packaging company divided into glass and metal businesses, is undergoing significant restructuring primarily in its glass operations, which are currently burdened by excessive debt. The restructuring process is complex, as it involves negotiations with unsecured bondholders who have counterproposed terms in response to the company's initial proposal. While the metal cans segment remains unaffected and is a separately listed entity, the glass business faces critical challenges due to its over-levered status. Recent creditor proposals suggest substantial equitization of unsecured bond debt, highlighting the financial strain on the glass segment.
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