Comments - KCS
More bad news today for KCS Energy, Inc...
biz.yahoo.com
S&P cuts KCS Energy ratings to D
(Press release provided by Standard & Poor's)
Monday August 16, 5:26 pm Eastern Time
NEW YORK, Aug 16 - Standard & Poor's today lowered its senior unsecured debt rating for KCS Energy Inc. to 'D' from double-'C' and its subordinated debt rating to 'D' from single-'C'.
The company's corporate credit rating remains at 'D'.
The ratings action follows KCS' failure to make $13.8 million in scheduled interest payments on its $150 million senior unsecured notes due 2003 and $125 million subordinated notes due 2008.
On July 29, 1999, KCS signed a forbearance agreement on the bank facilities that commits the company to make monthly principal payments on the facilities of $2.5 million commencing July 31, 1999 and to dedicate a portion of proceeds from asset sales to pay down bank debt.
The agreement, which is effective through Oct. 5, 1999, precludes KCS from making interest payments on its notes.
Since May, KCS has repaid $23.3 million on the bank facilities, but $126.7 million remained outstanding as of June 30, 1999 when the borrowing base was lowered to $91 million. KCS continues to work with financial advisors on a restructuring transaction that would result in a deleveraged balance sheet, Standard & Poor's said. |
