011205 S&P cuts Viskase Cos ratingsDecember 4, 2001New York - Standard & Poor's lowered its corporate credit and senior unsecured debt ratings on Viskase Companies Inc. to 'D'. At the same time, the ratings were removed from CreditWatch, where they were placed July 2, 2001. The downgrade follows the company's announcement that it failed to pay the interest and $163.1 million principal due on its 10.25% senior unsecured notes that matured on Dec. 1, 2001. Viskase is still continuing its negotiations with noteholders regarding a restructuring plan. Viskase is a leading producer of cellulosic food casings used for processed meats. The company's business has been hampered by unfavorable industry fundamentals, which include a fierce pricing environment, low volumes, and increased raw material costs. In addition, Viskase has been hindered by an onerous debt burden and its revolving credit facility expired in June 2001.
E-mail: sflanagan@sprintmail.com |
