South African Fund Faces Losses on New Look Bond Bet

A prominent South African fund manager stands to become one of the biggest losers on a batch of New Look’s bonds that were in effect rendered worthless when the UK retailer launched a debt restructuring this week, the Financial Times reported. New Look set out terms of a debt-for-equity swap on Monday that will hand one-fifth of the company to so-called senior secured bondholders — owners of debt linked to specific assets. Meanwhile, holders of £176m of unsecured bonds have been offered just 2 per cent of the equity in the struggling fashion retailer. Cape Town-based Coronation Fund Managers is one of the largest holders of those now practically worthless unsecured bonds, according to people familiar with the matter. The firm’s Global Opportunities range of funds held £41m of these bonds, according to the funds’ most recent available filing from March 2018. The funds still hold a substantial position, the people said. Read more