High yield bond fund Proventus Capital Partners (PCP) has ventured in underwater bonds issued by Preem, a big oil refinery. In the midst of a financial catastrophe, as maturity strategies, Preem seems unlikely in order to refinance. Meanwhile, Preem has a complex multi-currency capital structure with bonds that are junior and senior, secured bank loans.
PCP has to determine whether to push for bankruptcy in a European court, or for out of court renegotiations. The case is a tool for analyzing the difference between liquidity difficulties and solvency problems, weighing bankruptcy vs. out of court restructuring, and coping with dialogues between lenders.
PUBLICATION DATE: August 22, 2012 PRODUCT #: 213008-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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