Blog Post
Evoca Kickstarts Talks to Address Ballooning PIKs Amidst Italian Restructuring Surge
Italian coffee machine producer Evoca is the newest restructuring emerging in the increasingly active Italian market. While trading has deteriorated, the catalyst for workout talks is a PIK note sitting at Evoca’s HoldCo, which has ballooned to about €440 million from €210 million at launch and risks breaching covenants.
For those covering distress long enough, this brings back memories of Eco-Bat, whose PIK debt topped €2.25 billion – over three times more than when it was issued – by the time of its Chapter 11 filing, in which creditors took the keys after years of dispute with the owner.
A similar outcome could happen with Evoca, save for the litigation, as sponsor Lone Star may be amicable to an exit, given it has been at the helm since 2016 and has little economic interest left in the business.
Also new in the Italian distressed space, MinervaHub — a supplier of finishes and materials for fashion brands — started lender talks following a covenant breach. Meanwhile, bottle cap maker Tapi Group’s creditors are reviewing multiple proposals to overhaul the cap stack and provide the company with fresh funds; automotive supplier Coils Lamiere Nastri, or CLN, is close to completing its restructuring following the homologation of its plan for its Polish subsidiary; and beverage equipment group Celli SpA recently closed its restructuring via composizione negoziata della crisi d’impresa, or CNC.
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