So it was CCC+ before this 2nd (and 3rd, really) Selective Default they reported on the 8-K.
Does XRX for the SD and back to CCC+ in a few days like last time, or does S&P fing them down to CCC or CCC-?
Posts mentioning hashtag #default
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Mention #default in your post to continue the discussion!
Patrick Drahi’s Altice International accused of defaulting on €2bn of debt
https://www.ft.com/content/394c33d7-43cb-448e-97da-63fcb2c02b0b
Strategic Default
https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3579174
Covenant = Default (Bankruptcy)
The recent news about the joint venture of TPG, states that IPCo (A bankruptcy mechanism organization) now owns Xerox IPO.
In the new agreement there is a revenue covenant clause, that states certain thresholds for maintaining branded revenue (Excludes Lexmark, Fittle etc.)
The thresholds are as follows:
June 30: $2.578B
September 30: $3.852B
December 31: $5.225B
If Xerox fails to meet these revenue tresholds, the SSLA requires IPCo to initiate an event of default.
In otherwords, if Xerox does not meet the $5.225B brand line revenue in 2026 they will be going into default.
In 2025 Xerox did roughly $5.5B in brand line revenue. In other words: Does the brand line revenue decline with more than 5% this year again a default event will happen.
With the mass layoffs, mainly on the Xerox side, this is highly likely to happen.
In other words, we are now within the last 12 months.
Dish Fall Out
Is this really only impacting DISH teams since they are claiming it is from DISH defaulting