Reuters: Bankruptcy News: TEXT-S&P cuts PBG S.A. to 'D' after PBG files for bankruptcy

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TEXT-S&P cuts PBG S.A. to 'D' after PBG files for bankruptcy Jun 8th 2012, 10:34 Fri Jun 8, 2012 6:34am EDT (The following statement was released by the rating agency) June 08 - Overview -- On June 4, 2012, PBG S.A. (PBG), Poland's third-largest engineering and construction company, announced it's decision to file for bankruptcy with an arrangement option. -- The filing resulted from PBG's failure to obtain additional funding to secure financing for its ongoing operations, including payments to subcontractors. -- As a result, we are lowering our long-term corporate credit rating on PBG to 'D' (default) from 'SD' (selective default). Rating Action On June 8, 2012, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on engineering and construction company PBG S.A. (PBG) to 'D' (default) from 'SD' (selective default). Rationale We downgraded PBG because it announced that, on June 4, 2012, three of its subsidiaries that generate a substantial part of the group's earnings (PBG, Hydrobudowa Polska, and APRIVIA) had filed an insolvency petition with the insolvency court within the Municipal Court in Poznan. The management board of PBG S.A. has filed a motion for insolvency with an arrangement option to settle accounts with creditors and other parties, so that the company could continue to run its operations. Link this Share this Digg this Email Reprints

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