Greek operator Wind Hellas reached an agreement with its credit facility lenders and hedging banks on refinancing its debts. The operator said the agreement will allow it to take a number of actions to materially improve its liquidity position and stabilise its capital structure, while it conducts a strategic review of alternatives to address its capital structure in the long term. This agreement is effective immediately and will remain in place until 5 November. In light of the financial performance of Wind Hellas and the significant pressure on the business caused by economic conditions in Greece and the competitive environment, the company announced on 14 June its financial results and the initiation of discussions with its shareholder, and creditors either directly or through their advisors. Following these discussions a number of actions will be undertaken by selected companies within the group to allow it to enhance its liquidity in the near term while the group pursues a long term solution to its capital structure with the support of its creditors and shareholder.
In early June, the group initiated discussions with certain creditors including lenders under the Super Senior Revolving Credit Facility ('RCF'), counterparties under the Hedging Agreements ('Hedging Banks') and advisors to an ad-hoc committee of Senior Secured Floating Rate Note holders representing a majority in principal amount of the Senior Secured Floating Rate Notes ('Noteholder Committee') to address the critical financial situation facing the company caused by the economic and competitive environment in Greece. Following such discussions, the debt holding company WF III has negotiated the terms of a standstill agreement, the purpose of which is to enable the group to stabilise its liquidity position while it pursues a sale or other restructuring alternatives which would create a sustainable capital structure on a long term basis.
The agreement became effective on 1 July when requisite approvals were received from approximately 88 percent of RCF Lenders and 100 percent of the Hedging Banks. The agreement requires that 75 percent of Senior Secured Floating Rate Note holders holding more than 75 percent in principal amount of the Senior Secured Floating Rate Notes accede to the agreement by 20 July. As at the date hereof, investors holding 48 percent of the principal amount of the notes have executed the agreement and the remaining consents are being pursued. The group is confident that the requisite majority will support the agreement. The agreement is effective until 5 November and is subject to earlier termination in certain specified circumstances.
The board of directors of the company shall appoint Mike Corner-Jones of Alvarez and Marsal as Wind Hellas’ chief restructuring officer to work alongside the current directors, management and advisors to the company and the group to implement the restructuring. Corner-Jones shall also be appointed to the board of directors of WF III and its subsidiaries. Upon the instructions of the board of directors of WF III and Wind Hellas, Morgan Stanley has initiated a process to solicit offers to acquire the shares of Wind Hellas and / or to make an investment in the group in connection with a restructuring of its capital structure. Offers are being solicited from strategic and financial investors including the creditors to the group. The process being undertaken will involve working with the group’s creditors to assist in structuring a creditor-led solution as an alternative or supplement to any offers from strategic and financial investors or offers from other creditor groups. The process will be initiated immediately and targets completion by 14 October.
