Correction: Fitch Downgrades Main Street 2008A Gas Prepaid Revs to 'C'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- (This is an amended version of a press release issued yesterday, containing a revised termination payment date for the GPA GPA abbr. grade point average Noun 1. GPA - a measure of a student's academic achievement at a college or university; calculated by dividing the total number of grade points received by the total number attempted .) Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. downgrades Main Street Natural Gas, Inc. (Main Street) gas project revenue bonds, series 2008A to 'C' from 'CCC'; the Rating Watch Negative assigned on Sept. 15, 2008 is removed. This action takes into account Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. Commodity Services (LBCS LBCS Land-Based Classification Standards (American Planning Association) ) failure to deliver gas and Main Street's (Purchaser) exercising of its right to terminate the Gas Purchase Agreement (GPA) yesterday (Monday, Sept. 22, 2008). The 'C' rating reflects Fitch's assessment that a default is imminent. LBCS failed to deliver gas for five consecutive days beginning Thursday Sept. 18, which constitutes a Persistent Delivery Default under the GPA granting Main Street the right to terminate the GPA. After such notice, LBCS has two days to cure its failure to deliver. If not cured, the GPA will be terminated. The termination payment date will be Sept. 30. The termination payment date could be moved forward in the event that LBCS files for bankruptcy (LBCS is a subsidiary of Lehman Brother's Special Finance unit). An LBCS bankruptcy, together with Lehman Brother's Holdings Inc's (LBHI, LBCS's Guarantor) filing for bankruptcy on September 15th, would constitute a termination event and require immediate payment by LBCS of the termination amount. It is Fitch's assessment that regardless of the timing of the termination payment, bondholders will not be paid in full on the payment date. Consequently, if the termination amount is not paid by LBCS, pursuant to the GPA, LBHI shall be notified of the non-payment and requested to immediately pay the termination payment as required under the Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. . If this chain of events occurs, it is Fitch's assessment that the bonds will be in default and bondholders will become unsecured creditors of LBHI. For additional details regarding the transaction, please see the full report available on the Fitch Ratings web site www.fitchratings.com: Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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