Recovery Report: Enterprise Network Holdings B.V. Recovery Rating Profile Sep 11
- ID: 1927626
- September 2011
- Standard & Poors
We are updating our recovery analysis on Enterprise Networks Holdings B.V. (ENH; B-/Stable/--), holding company for the communications solution provider, Siemens Enterprise Communications. We value ENH on a going-concern basis, based on its leading market position in a highly competitive industry. Our simulated default scenario leads to a default in 2013, due to excessive leverage and operating underperformance resulting from increased competition and weakening industry demand. Under our assumptions, we arrive at a stressed enterprise valuation of about -310 million and we anticipate average (30%-50%) recovery for the senior secured notes, although likely at the high end of this range. This equates to a recovery rating of '4'. The notes are senior secured and have first-ranking liens. However, the revolving...
Companies mentioned in this report are: Enterprise Networks Holdings B.V.
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