At least five major companies have either filed for Chapter 11 bankruptcy protection or defaulted on loans during the week of April 19 – April 23, 2021. The majority of these companies were within the Consumer Discretionary sector.
Sources: WSJ, S&P, Energy Choice Matters
Medical Depot Holdings Inc. is a medical supplies and equipment provider to small businesses. The company completed a transaction to extend its first-line debt maturity. Furthermore, the company converted its debt to paid-in-kind interest, which will be paid in two series of preferred shares. S&P viewed this as a distressed exchange, due to the company’s limited compensation to its lenders. As a result, S&P lowered Medical Depot’s credit rating to SD.
Serta Simmons Bedding LLC is a compa...