Pulling the plug on bondholders

A spat over debt has seen holders of Grohe bonds band together in unprecedented numbers to protest about being unceremoniously bumped several rungs down the subordination ladder. But has this impressive show of solidarity really achieved anything? Philip Moore reports

The refreshing thing about the development of the corporate bond market over the last few years is that boardrooms the length and breadth of Europe have become much more attuned to the requirements of bondholders, right? They are no longer obsessed with delivering enhanced value for their public or private equity investors at the expense of their bondholders, right?
Wrong.

If the recent goings-on at bathroom fittings manufacturer Grohe are anything to go by, the goalposts for