Consoltex Group Ratings Put on S&P Watch Developing.NEW YORK--(BUSINESS WIRE)--Nov. 5, 1998--Standard & Poor's today placed its double-'B'-minus corporate credit ratings on the Consoltex Group Inc. and Consoltex (USA) Inc. and its single-'B' subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". rating on Consoltex Group on CreditWatch with "developing" implications, meaning ratings could be raised, lowered, or affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. . The CreditWatch placement reflects the announcement that Consoltex has hired an investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. to explore strategic alternatives to maximize shareholder value, including the possible sale of the company. Montreal Montreal (mŏn'trēôl`), Fr. Montréal (môNrāäl`), city (1991 pop. 1,017,666), S Que., Canada, on Montreal island, surrounded by St. Lawrence River and Rivière des Prairies. , Canada-based Consoltex has received expressions of interest from third party purchasers, and has obtained support for the sales process A sales process is a systematic approach for performing product or service sales. The reasons for having a sales process include seller and buyer risk management, achieving standardized customer interaction in sales and scalable revenue generation. from its controlling shareholder, Les Gantiers, and its largest equity holder, Clairvest Group Inc. Les Gantiers and Clairvest have indicated that they will only consider a sale at a substantial premium to Consoltex's 52-week high share price. Accordingly, there is a high degree of uncertainty over whether a sale will be completed. The extent of any ratings change will ultimately be determined by the strategic alternative chosen by Consoltex. Standard & Poor's will meet with management to discuss the impact of any transaction on Consoltex's strategic and financing plans. -- CreditWire |
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