S&P cuts Mobileum

S&P said it downgraded Matrix Holdings Inc. (doing business as Mobileum) to D from SD, selective default and its first-lien debt to D from CCC.

The downgrade follows Mobileum's recent announcement that it skipped an interest payment on its $55 million first-lien revolving credit facility due 2027. The grace period to make the payment is five days, but S&P said it does not expect it will do so over this timeframe.

“Furthermore, we expect Mobileum will also miss the interest payment on its first-lien term loan that comes due later this month.

“Management is seeking waivers from its creditors until it can restate its financial statements. This follows the ongoing special committee investigation into the company stemming from certain accounting issues related to revenue recognition irregularities in 2020-2022,” S&P said in a statement.

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