The upcoming creditors' meeting of the distressed 170 million Swiss francs bond issued by the insolvent GZO Spital Wetzikon, scheduled for October 25, is fast approaching.

The question remains: How should the bondholders respond to the proposals of the GZO Creditor Group? Should they agree to improve their position in the debt negotiations, as recently recommended by credit analysts at Independent Credit View, or reject the proposal, thereby giving GZO more room to implement a comprehensive solution, which could include a debt haircut (naturally unfavorable for bondholders)? Some bondholders may decide their course of action on the spot, based on the specifics of the restructing package that GZO will present at the meeting.

«Large Majority» of 80 Percent

The active creditor group, which represents only 6.56 percent of the outstanding capital and includes the dynamic Gregor Greber, has been advocating persistently ahead of the critical meeting. Their satement on Monday, however, struck a new tone: they claim to have secured «brodad support» from other creditors for their key proposal - extending the bond's maturity.

Over the past two months, they have held discussions with the majority of bondholders, including pension funds, insurance companies, healthcare organizations, banks, and many private investors. Around 80 percent of the bondholders have been identified, and the majority have signaled their support for the creditor group’s proposals.

Confident Ahead of the Meeting

Gianlucca Ferrrari, founder of the investment fund Clearway Capital and a leading figure in the creditor group, exudes confidence: «We have found that many bondholders are dissatisfied with how the hospital is attempting to overcome its current situation. Therefore, we are confident that we will secure the necessary votes at the upcoming meeting.»

However, the creditor group is cautious about claiming outright victory and continues to urge bondholders to attend the meeting, which will be initially chaired by a UBS representative acting as the official bondholder representative, and cast their votes.

At least on this point, the interests of the GZO and the creditor group seem to align. The outcome on October 25 will reveal whether the GZO Creditor Group can muster the required quorum — votes from bondholders representing at least two-thirds of the outstanding capital — or if their optimism was misplaced.