BSL
EUROPEAN
DISTRESSED DEBT
Large CAP European Distressed Situations
Dates show when the group first became distressed and any subsequent sharp price event signalling significant further deterioration in credit profile
NOTES
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The date the group first became distressed (yield exceeding 12%) provides a simplistic proxy for how long the distressed market will have been focusing on the situation. Roughly speaking, newer situations are more likely to provide greater investment or advisory opportunities.
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Subsequent material price events flag material negative changes in a group's risk profile and, if recent, are also a rough indicator of more favourable conditions for investment or advisory opportunities.
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The approximate face amount of group debt indicated at distressed levels is not necessarily the total debt issued by the group, which may be greater.
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Public access to data means there is an investor website that posts up-to-date periodic financial reports and does not require a login or permission for access. Some of the "restricted" group sites may be accessible on request but most will be private-side only and require investor status for access.
Commentary
Ineos Quattro (UK & Europe - Chemicals) is worth keeping an eye on as it has the potential to be played both long and short subject to CDS liquidity. The 7.2bn EUR CAP structure fell into deep distress in Jan 2026 indicated in the 60s at the time - burning cash with multi-year margin collapse due to structural competitive disadvantages in the European chemicals market vs US / China. Prices recovered but have started to trade back down ( mid 80s 15% YTM as of 13 Aug 2026). The debt sits on a precarious ledge as the loan docs allow circa 2bn of collateral assets to be removed from the restricted group if circumstances deteriorate and Jim Ratcliffe ever decided to go down that path.
Virgin Media O2 ( UK - fibre broadband & mobile) is new to the distressed space ( YTM > 12%) having fallen into firm distressed territory for the first time in July 2026 with representative debt issue indicated at 62 and 19% YTM. VM is part of the distressed telecom trend.
Altice International (also fibre and mobile - Portugal & Israel) - had a significant price deterioration in Dec 2025 from pre-existing distressed levels going back to Mar 2024. Altice International is not the same as Altice France - a recently completed €24bn restructuring with significant LME at its core. Both Altice sub-groups are controlled by Patrick Drahi.
Aston Martin ( UK - Auto) has taken a recent big leg down in July 2026 with representative debt indicated 57.
Merlin (theme parks - Europe & US) is also a notable new entrant - May 2026 - with a large debt stack - $4.2bn - indicated at distressed levels.
Thames Water ( UK - Water infrastructure & supply) has been trading at distressed levels for a while so is well known to the distressed market but notably took a recent big leg down in April 2026. Heavily regulated and requiring a restructuring, its trajectory will be impacted by anticipated policy decisions by the new Burnham-led UK government (mooted nationalisation). The prices UK Water companies can charge and their investment spend are set by / in negotiation with the regulator Ofwat in interventionist and granular five year plans incorporating substantial regulatory discretion.
Lipton (Global - packaged tea) received support from its sponsor CVC in April 2026 primarily via an LME exercise inserting a senior priming loan outside the restricted group. The pre-existing term loan remains distressed at 67. Lipton continues to burn cash. Lipton was a 2022 carve-out by CVC from Unilever. CVC arguably underestimated the increased cost and reduced negotiating power as a standalone business. It had to reverse course on 2025 price rises having misjudged the price elasticity of its markets. The price rises resulted in delistings by Walmart in developed markets and a volume crash due to bulk loose tea competitors (as opposed to tea bags) in developing markets.
Kantar (Consumer product data collection & research for advertisers - global) is relatively new to the distressed space from Mar 2026. Not deeply distressed with representative debt indicated at 85 and 14% YTM. Burning cash and restructuring operationally with some liquidity buffer and no immediate obvious trigger event. The RCF is subject to a springing covenant not currently breached but appears reliant on a flexibly defined Adjusted EBITDA.