We are back to France — the current epicentre of
European credit stress — for our second episode of
Distressed Diaries.Over the last few months, French lab company
Cerba’s debt
has taken a beating as fears mount over its unsustainable €3.8bn capital. Most recently,
9fin reported that creditors have started to
organise and appointed legal advisors in the lead up to possible debt negotiations.
There’s no lack of drama in this episode. First, the company’s liquidity has been hit by the French government’s decision to cut tariffs on lab tests in September last year. Then CEO Emmanuel Ligner unexpectedly stepped down in March with his replacement Julien Samson only
joining in early June.
In this episode, our host, senior distressed reporter Bianca Boorer, sits down with 9fin’s senior distressed credit analyst Denitsa Stoyanova and senior legal consultant Rebecca Davies to talk about Cerba’s financial situation, creditors’ reactions, how the company plans to address this, what is possible under the debt docs, and more.
9fin’s analysis of Cerba’s capital structure is
here and a deep dive over LME and liquidity options is
here.
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