17.05.2014 00:23:00
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Allen Systems Group, Inc. -- Moody's lowers Allen System Group's Probability of Default Rating to Ca-PD/LD
New York, May 16, 2014 -- Moody's Investors Service lowered Allen Systems Group, Inc.'s ("ASG") Probability of Default Rating ("PDR") to Ca-PD/LD from Caa3-PD and Corporate Family Rating ("CFR") to Caa3 from Caa2. The limited default "LD" designation appended to ASG's PDR reflects the company's failure to make the interest payment that was originally due on April 21, 2014 within the applicable initial 5 day grace period available under its first lien term loan credit agreement. Moody's definition of default captures all missed or delayed interest or principal payments according to the original terms of a contractual obligation. On May 14th, the lenders under the term loan credit agreement agreed to defer the payment of interest that was originally due on April 21st and forbear from exercising their rights and remedies with respect to other events of default. Moody's also lowered the ratings of the company's $300 million second lien senior secured notes due 2016 to Ca from Caa3. The rating outlook remains negative.