Moody's assigns Caa1 to 4L

Moody's Investors Service said it assigned 4L Holdings Corp. a Caa1 corporate family rating and Caa1-PD probability of default rating following the company's recent restructuring. At the same time, Moody's assigned a Caa1 to 4L Tech's $80 million senior secured term loan due 2024. The outlook is negative.

The company emerged from a prepackaged Chapter 11 bankruptcy filing on Feb. 3 and implemented a restructuring support agreement with a majority of the secured lenders agreeing to restructure its balance sheet and reduce the total debt.

"We believe that 4L Tech's post-emergence balance sheet remains highly levered with limited liquidity in consideration of the large amount of cost-savings and synergies that will need to be achieved during the next 12 to 18 months," said Andrew MacDonald, Moody's lead analyst for the company, in a press release. "With the acquisition of Teleplan, management has embarked on a new business strategy that is highly transformative and entails significant integration risk."

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