S&P: Fedders unchanged

Standard & Poor's said the ratings and outlook on Fedders Corp. (CC/negative) and Fedders North America Inc. (CC/negative) would not immediately be affected by the company's announcement that it had reached an agreement in principle with holders representing more than a majority in principal amount of Fedders North America's senior unsecured notes to waive the existing event of default.

The agency said Fedders had previously announced that an event of default under its senior note indenture had occurred as a result of the company's failure to file its 2004 annual report on Form 10-K with the SEC within the specified 30-day grace period.

The company also announced that it has reached an agreement in principle with its senior lender to waive the default under its unrated credit agreement also related to the failure to file its Form 10-K as well as subsequent quarterly reports, S&P said.

Both of these agreements are subject to completion of final documentation and as a result, Fedders announced that it would not make its Sept. 1 interest payment due on its senior unsecured notes until final documentation concerning the waivers had been completed.

If Fedders does not make the September senior note interest payment within the 30-day grace period, the ratings will be lowered to D, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.