Fitch downgrades Winsway

Fitch Ratings said it downgraded Winsway Enterprises Holdings Ltd.’s issuer default rating to RD (restricted default) from C.

There was no outlook assigned, Fitch said.

The company announced that it had not paid the scheduled coupon due April 8 on its dollar-denominated notes when the cure period for the coupon ended May 8, the agency said.

The cure period refers to a provision in the bond documentation allowing the defaulting party to fix the cause of the default.

The non-payment is consistent with an RD rating, signifying the uncured expiry of any applicable grace period following a payment default on a material financial obligation, Fitch said.

Winsway’s senior unsecured rating and the rating on its dollar-denominated 2016 notes were affirmed at C with a recovery rating of RR6.

Winsway is planning a debt restructuring for the $309.3 million of outstanding 8˝% April 2016 bonds, Fitch said. The company hoped to utilize the 30-day grace period to complete the debt-restructuring plan, the agency said.

Based on the current outlook for the company’s financial performance, Fitch said it believes the likelihood that Winsway will be able to refinance the bond has worsened following the covenants waiver and debt exchange in 2013.

Winsway is in negotiation with some investors for an equity injection into the company to repay debt, Fitch added. The agency said it expects the equity injection to be contingent on its successful completion of a debt restructuring for the 8˝% April 2016 bonds.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.