TRIS Rating downgrades the company rating on STARK Corporation PLC (STARK) to ?C? from ?BB-? and maintains CreditAlert with a ?negative? implication.
The rating action follows the resolution of STARK?s debenture holders meeting held on 31 May 2023. The debenture holders? meeting of two debenture issues, STARK239A and STARK249A, resolved not to waive the event of default in relation to the company?s failure to meet the debenture condition on annual submission of the 56-1 Form. The debenture holders also resolved to accelerate the payment of all obligations under the debentures. In our view, the payment acceleration will likely trigger cross-defaults and lead to acceleration of the company?s other debt obligations. In this scenario, it is unlikely the company will be able to continue meeting all of its debt obligations.
RELATED CRITERIA
- Corporate Rating Methodology, 15 July 2022
- Key Financial Ratios and Adjustments for Corporate Issuers, 11 January 2022
STARK Corporation PLC (STARK)
Company Rating: C
CreditAlert: Negative
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