Sponsors Bain and Cinven are confident creditors will approve the A&E deal for Arxada, despite opposition from its senior unsecured bondholders. But is that confidence based on sunny optimism?

9fin sources say negotiations are ongoing with the SUNs in the background as the deadline to sign up for the deal is today (28 May). The company may look to extend by a day, Cinven partner Christopher Anderson, said on a Q1 26 earnings call yesterday (27 May).

The company received over 90% support from its secured creditors last week, Anderson said. However, he did not give an update on the SUN consent threshold, which was a meagre 20% at the deal launch on 13 May.

The company needs 75% from each class of creditors to implement the deal through an English scheme of arrangement, which it filed for on 26 May.

In this episode of Distressed Diaries, host and senior reporter Bianca Boorer speaks with distressed credit analyst Yusuf Sule and senior legal consultant Luke Viner about the A&E deal, creditor sentiment, what could happen if it goes to court, and how the company might handle the unconsenting SUNs.