Shareholders of French conference organizing group Comexposium are involved in a bust-up with lenders over a €175 million new money and debt equitization proposal, sources tell Reorg.
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A coordinating committee comprising SVP, Attestor, Hayfin and KKR which holds about 75% of the term loan debt made the offer, sources add. The group has proposed the equitization of 50% of the debt. Under the plan, existing shareholders will have the ability to invest alongside creditors.
SVP and Attestor are understood to be the largest lenders. Hayfin and KKR were among the original term loan B lenders.
The company entered into
sauvegarde proceedings in September providing a stay on all interest payments, as
reported. The legal proceedings triggered a selloff by CLO lenders. The company’s term loans dropped to the 30s before
rebounding to the 70s in early October.
Comexposium’s shareholders, the Chamber of Commerce and Industry of Paris and Predica, part of the Credit Agricole Assurances Group, are understood to have rejected the proposal. In a statement to Reorg the company said: “Comexposium's shareholders have confirmed that they will provide the necessary resources to get through this period. The company is not for sale.”
Shareholders have pledged about €75 million to support the company during the
sauvegarde period, which should be sufficient for at least 12 months, sources added.
In
sauvegarde proceedings, the drafting of a restructuring plan is usually management’s responsibility. However since 2014, competing restructuring proposals can be put forward by financial or trade creditors.
The future of the company’s M&A plans depends on how significantly it is able to reduce its debt, sources add. Comexposium has made about 22 acquisitions since 2015,
according to Fitch. The company intended to
acquire Europa, a healthcare events company, in February for €225 million but this was interrupted by the onset of Covid-19. Fitch notes that the company has an ongoing legal dispute with Europa.
Credit Agricole was global coordinator and sole physical bookrunner when the original term loan was launched in January, as
reported. This puts the company in the unusual position of having a sponsor enter
sauvegarde to the detriment of its lenders, one of whom is also the sponsor.
In its
application for
sauvegarde, the company explained that it expected to breach the 8.6x net leverage covenant test attached to the fully drawn €90 million revolving facility on Sept. 30. The Covid-19 crisis led to the cancellation of approximately 40 events and the postponement of another hundred. Monthly revenue fell to zero in July, from €35 million in February. Available cash in September amounted to €2.2 million.
Comexposium has the following debt:
- €597 million term loan B (including €114 million add-on) at Euribor+4% due 2026; and
- €90 million RCF.
The company has appointed Messier-Maris and SCP Santoni to advise during its debt talks, as
reported. The lender group is working with Lazard and White & Case.
A private court hearing is scheduled for Dec. 15. The
sauvegarde observation period of six months is due to end on March 22.
-- Connor Lovell