Blog Post
LMEs, swaps and surprises: European distressed market heats up
Chiara Elisei, Chief Credit Correspondent, Europe
The European distressed market got off to an eventful start this year, with companies rushing to finalize debt workouts or circulate consent solicitations to kickstart talks.
While the hype (and fear) around LMEs shows no sign of abating — as in the recent Atalian transaction — old-style, plain-vanilla debt-for-equity swaps are also back in fashion. Spanish B2B energy transaction solution provider Amara NZero is hammering out details of a deal that will see around 70% of its bonds equitized. Similarly, after talks to address its 2026 maturities languished for most of last year, Dutch DIY retailer Maxeda reached an agreement with an ad hoc group of bondholders at the eleventh hour, featuring a cash paydown and the partial conversion of the notes into 41% of the equity.
With previously stagnant deals beginning to show signs of life, France and Germany under continued pressure, and the software sector joining the list of stressed industries alongside altnets and chemicals, 2026 promises to be as busy as ever.
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