S&P: GenTek on positive watch

Standard & Poor's said its BB- corporate credit rating on Gentek Inc. remains on CreditWatch with positive implications where it was placed on March 26 following the company's announcement that it had agreed to sell its Krone communications business to unrated ADC Telecommunications Inc.

At the same time S&P said it withdrew its B senior secured rating (with a second lien), as the debt was repaid in full with asset sale proceeds.

GenTek announced May 18 that it had completed the sale for $294 million in cash and the assumption of around $56 million of pension and employee-related liabilities. Net proceeds mostly reduced debt and, after application of proceeds, the company is expected to have $25 million to $35 million of cash and less than $2 million in debt.

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