BSL
CURRENT EUROPEAN
DISTRESSED DEBT
New European Distressed Situations Table
updated 24 Sept 2026
The table flags new opportunities for investors and advisors in the European distressed market as well as existing situations that have suffered a new material deterioration in credit profile. Aston Martin and Biscuit Holdings included in the Large Cap table below are not currently included in this table but are also relevant for this category.
Altice / Merlin / Virgin / TalkTalk recorded material negative price events during September - scroll down to see the Large Cap European Distressed Situations Table updated 2nd October 2026
NOTES
1] Name in brackets is the legal name of the consolidating group entity where substantially different from the common group name
2] Threshold for distress is taken as > 12% YTM
3] Total group borrowings includes debt which doesn't trade (no price indication) and / or is not indicated at distressed levels. Total group borrowings exclude finance leases.
4] An initial price event means an increase in yield which for the first time takes the credit above the threshold where it can reasonably obtain refinancing in the regular debt markets and where the sharp increase in yield indicates a material new credit event that has moved the credit into the distressed space on a sustained basis,
5] A subsequent price event relates to a credit that was already distressed and where there has been a new material sharp price decline indicating a further material and sustained deterioration in the credit profile.
6] 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. Accounts from the relevant national registry may be available but will be out-of-date.
7] The country where the group consolidating entity was incorporated.
Large CAP European Distressed Situations Table
updated 2 Oct 2026
Dates show when the group first became distressed and any subsequent sharp price event signalling significant further deterioration in credit profile
Altice / Merlin / Virgin / TalkTalk recorded material negative price events during September
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. Newer situations tend to have greater potential to provide 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 a rough indicator of potentially more favourable conditions for investment or advisory opportunities. The circa 10 cent price drop will have occurred in a short time span but not necessarily in one day so in that case the date given is a sample date during the price drop event.
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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. Accounts from the relevant national registry may be available but will be out-of-date.
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Where na appears in the table this is due to restricted access to price data and mainly relates to Groups with no bonds but loans only.
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. See the attached explanation and analysis of the baskets that are available to move assets out of the restricted group and effect an LME "Drop Down".
Extracts from the Ineos Quattro dropdown analysis
"...Assets within the restricted group act as collateral for existing creditors and the general rule imposed by various restrictive covenants is that those assets cannot be removed. There are various “basket” exceptions within those covenants most of which only apply if the company is doing well financially (e.g. the group’s credit rating is upgraded to investment grade). However, some of the general baskets are available up to a material value regardless of the group’s current stressed financial position..."
"...Using the credit terms in this manner in the context of financial stress to free up collateral is referred to as a “drop down” and is a form of a liability management exercise “LME”. Because the company is not renegotiating the terms of the existing debt an LME is not a restructuring but in practice is often a precursor to a restructuring. It puts legacy creditors who do not participate in any proposed newly secured debt in a weaker position in the run up to a possible restructuring.,,"
"...Clause (a) of the Limitation of Sale of Assets covenant sets out the general prohibition on asset sales. Clause (a)(1) provides two distinct exceptions: a permitted asset swap, which is not relevant to this route, and a sale in which at least 75% of the consideration is received in cash. Further clause (a)(2) also requires consideration equal to the fair market value of the assets sold. At first glance this exception doesn’t look very promising given the requirement to receive cash at the market value of the assets sold..."
"...However, clause (g) allows certain non-cash consideration to be treated as cash for the purpose of the above 75% requirement. The relevant basket is clause (g)(5) which allows non-cash consideration received by a restricted subsidiary to be designated as Designated Non-Cash Consideration and deemed to be cash. The cumulative fair market value that can be so designated under this clause cannot exceed the greater of €425m and 5% of Total Assets. Based on the Q2 June 2026 accounts 5% of total consolidated assets was €618m..."
"...Quattro’s €7.3bn capital structure comprises seven senior secured pari passu loan and bond issues all of which are subject to a single intercreditor agreement with the benefit of guarantees on group subsidiaries representing circa 95% of group adjusted EBITDA..."
"...Only the 2030 Notes terms have been reviewed. For the drop-down to work, the necessary basket exceptions must exist under all the other debt issues which have their own terms. This is because the Security Agent holds collateral in common for all the loans and bonds and can only release liens if permitted under all the issues..."
End of Extracts
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. Update: As of 2 Oct 2026 Kantar representative yield had tightened to 11% so more stressed than distressed.