whats this mean? GC and secured blahblahblah

Screaming headlines with no real news except that because the debt exchange succeeded they now have a higher credit rating and are seen as being more solvent! Which is kind of implausible in the face of the facts iterated, but still the story actually says bankruptcy is not imminent. Remind me not to click on news from that site in the future.

I interpreted the article a bit differently, it basically said their rating went from atrocious to abysmal. It definitely didn't try to paint a rosy picture. Guitar Center's credit rating is nearly as low as a rating can be, the next step is no rating because the company folded. You can bet there's no investors lining up to get in on this. GC likely leveraged its debts with various other companies to buy the bit of time they have, as previously explained.
 
I was kind of leaning that way; the article was further downgrade.

into the abyss ... Sam Ash seems to be doing fine.
 
I interpreted the article a bit differently, it basically said their rating went from atrocious to abysmal. It definitely didn't try to paint a rosy picture. Guitar Center's credit rating is nearly as low as a rating can be, the next step is no rating because the company folded. You can bet there's no investors lining up to get in on this. GC likely leveraged its debts with various other companies to buy the bit of time they have, as previously explained.
I never said it was a "rosy picture" but if you read both articles, the point is the, in fact, did have folks lined up to buy the new debt instruments, or I should say, exchange old debt for new debt. The article says:

"But Guitar Center narrowly averted that classification with an emergency loan renegotiation involving debt surpassing $615 million. Accordingly, early this morning (April 17th), Moody’s noted that it did not consider Guitar Center to be in default. Instead, the rating agency upgraded the retailer slightly to indicate solvency." (bold emphasis mine)​
 
I just read a new one they have laid off 140 business managers...and someone is pulling their money out? whatever that means? pulling their money out ...$11 million worth
 
I never said it was a "rosy picture" but if you read both articles, the point is the, in fact, did have folks lined up to buy the new debt instruments, or I should say, exchange old debt for new debt. The article says:

"But Guitar Center narrowly averted that classification with an emergency loan renegotiation involving debt surpassing $615 million. Accordingly, early this morning (April 17th), Moody’s noted that it did not consider Guitar Center to be in default. Instead, the rating agency upgraded the retailer slightly to indicate solvency." (bold emphasis mine)​

Yes they renegotiated with existing creditors. The creditors likely see the inevitable and are kicking the can for as long as they can. I didn't see any reference to new creditors or investors. Not sure why you're correcting / referencing my post.
 
Yes they renegotiated with existing creditors. The creditors likely see the inevitable and are kicking the can for as long as they can. I didn't see any reference to new creditors or investors. Not sure why you're correcting / referencing my post.
I guess because you were quoting my post in a way to say I was incorrect! Your post seemed to imply a lowered rating, though not sure where "atrocious" and "abysmal" are on Moody's scale. At least that's how [MENTION=19723]CoolCat[/MENTION] interpreted your post.

Not trying to start an argument at all. GC has problems, but I thought the headline was misstating the actual content. Carry on with the GC bashing...
 
I guess because you were quoting my post in a way to say I was incorrect! Your post seemed to imply a lowered rating, though not sure where "atrocious" and "abysmal" are on Moody's scale. At least that's how [MENTION=19723]CoolCat[/MENTION] interpreted your post.

Not trying to start an argument at all. GC has problems, but I thought the headline was misstating the actual content. Carry on with the GC bashing...

Haha yes I see how that's confusing. I was joking about how any change at their current level(s) is insignificant since they're already near the bottom of the chart. I was quoting yours to contest the 'more solvent' part. The article was clear to explain that the only reason the rating went up a tick was because GC wasn't technically in default (and might not be for the immediate future).
 
I reckon there's a big push on for sales. This past week I've seen lots of TV ads from Guitar Center advertising Les Paul Studio Deluxes for (only!) $1649. I've also been seeing lots of ads on my phone for the Fender Play app in the Google Play Store.
 
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