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Loews Cineplex said on Aug. 25 that it might default on debt payments.
Hollinger Inc. added that should it prove unable to file its annual report with the United States Securities and Exchange Commission by June 30, it might default on its senior secured debt due in 2011.
Reacting to an announcement from Loews Cineplex Entertainment that it might default on its debt, Standard & Poor's Ratings Services yesterday lowered its rating of the company's bonds to B from BB.
On November 10th Sands said that a long-planned expansion on Macau was being postponed indefinitely to preserve capital, having given warning on November 6th that it might default on its debt.
Most recently, Loews Cineplex, the nation's fourth largest movie theater chain and the dominant company in New York, said on Aug. 25 that it might default on its debt payments.
The company said in a recent filing with the Securities and Exchange Commission that it might default on some of its loans later this year.
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In May Greece barely managed to make its payments on the bailout loan (partly by culling funds from local governments), and negotiations with the troika took on renewed urgency as it appeared that the country might default on its June payments without an infusion of cash from the final bailout installment.
A lower credit rating reflects the increased possibility that the US might default on its debts, as it came within days of doing earlier this month, and it normally means that investors demand higher interest rates to make up for that higher risk.
In addition, investors worry that the country might default on its debts after its presidential election in December, though most analysts think this unlikely.Toxic cocktailBrazil, meanwhile, is struggling with an economic-policy cocktail that blends a strong currency, loose fiscal policy and tight money.
INDIGNANT at rumours that Argentina might default on its debts or devalue its currency, or, indeed, that he was resigning, Domingo Cavallo sent a stiff "open letter to the markets" on April 22nd: how dare dealers spread such tittle-tattle instead of praising his achievements since he returned as economy minister a month ago?
But it is essential to control the fiscal deficit, and to gainsay speculation that Colombia might default on its debt.
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