Technicolor - Change of plan

The impact of the COVID-19 pandemic on equity markets has interfered with Technicolor’s plans to refinance the group in part through a €300m rights issue, as was announced in February 2020. Management is now seeking an alternate solution to enable it to move ahead with the strategic plan unveiled at that time. It is seeking a conciliation with its creditors to facilitate negotiations with a third-party investor and one of its existing lenders that will inject €400m into the business, to be followed by a debt to equity swap. Management has withdrawn guidance and our estimates remain under review.