On July 26, 2017, S&P Global Ratings lowered its corporate credit rating on Floworks International LLC to CC from CCC+ and its senior secured notes due 2019 to CC from CCC+. According to S&P Global, the downgrade follows Floworks International’s announcement of a proposed exchange offering for its existing $250 million 8.75% senior secured notes due 2019 ($220.9 million of principal outstanding). S&P views this as a distressed exchange, if completed. S&P expects to lower the corporate credit rating on Floworks to SD (selective default) and senior secured notes due 2019 to D (default) when the proposed transaction is complete, which they believe will occur over the next 90 days. Read more on distressed companies.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.