...- After obtaining court approval and with debtholders' support, Hema started the debt restructuring it announced on June 15, 2020, and we are confident that this transaction will be executed. - The transaction, which includes a debt-for-equity swap and private placement, will result in debtholders receiving less than originally promised, so we view it as tantamount to a selective default of Hema. - Our analysis of the proposed debt is based on Hema's prospective creditworthiness and the relative ranking of the debt instruments after completion of the debt restructuring at the beginning of October 2020. - We are affirming our '##' rating on Hema and its outstanding debt instruments, while assigning preliminary ratings to the debt: '###+' to the amended 300 million senior secured notes, 'B' to a new 42 million private placement notes, and '###-' to the new 120 million payment-in-kind (PIK) notes. - The negative outlook indicates that we will lower our ratings on Hema and its debt to '##'...
