ALSTOM's bank debt has slumped in the secondary loan market over the last couple of weeks as the company conducts negotiations with its creditors to amend its credit facility. Distressed loan sources said the loans have come under technical pressure as more supply emerges. The company's '06 senior bank debt was quoted in the in the 76-79 range this week compared to the 82 range, where it was quoted in early March. The '08 subordinated loan has slipped to the 60-65 range over the last couple of weeks from the 70-73 context.
Due to the acceleration of certain restructuring charges, ALSTOM will have to amend its EBITDA requirement of E100 million and its consolidated net worth requirement of E1.4 billion under its loan agreement. The company needs to receive consent from two-thirds of its lenders for the amendment before May 26. ALSTOM is currently in discussions with its banks and the company believes these discussions will be solved "quickly and positively," noted Emmanuelle Châtelain, an ALSTOM investor relations official. "We are going in the right direction," she said. ALSTOM's largest banks include BNP Paribas, Société Générale, Crédit Lyonnais, Crédit Agricole, Natexis Banques Populaires, and CIC Securities.