Moody’s appends OmniMax with LD

Moody’s Investors Service said it affirmed the probability of default rating of OmniMax International, Inc. and appended a limited default designation following the company’s missed principal payment on its senior secured notes.

Moody’s also affirmed all other ratings of the company, including the Ca corporate family rating and the Caa3 rating on the company’s senior secured notes.

“The affirmation of the Ca corporate family rating reflects Moody’s expectation that OmniMax’s depressed profitability, weak liquidity, and untenable capital structure will lead to a restructuring. The Ca-PD/LD designation follows OminMax’s failure to make the principal payment on its senior secured notes due Aug. 15, 2020. OmniMax subsequently entered into a forbearance agreement with its senior secured noteholders and simultaneously entered into a definitive agreement to be acquired by SVP Global,” the agency said in a press release.

The outlook is negative.

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