...- U.S.-based designer, producer, and distributor of licensed, branded, and private-label apparel and accessories Mad Engine Global LLC's pro forma leverage has increased to the low-double-digit area and interest coverage fell below 1x at the end of 2022, from 5.5x at year-end 2021 and over 4x on a pro forma basis. Inflationary pressures and weaker demand from a difficult macroeconomic environment weighed on profitability, combined with a weaker-than-anticipated holiday season. - We now forecast leverage will remain elevated at approximately 10x and EBITDA interest coverage of 1x in 2023, and revised our liquidity assessment to less than adequate from adequate as the company focuses on stabilizing its business and returning to profitability following the significant downturn in its core businesses during the latter half of 2022. - Furthermore, we believe Mad Engine's capital structure, absent improved profitability and good cash flow generation, is unsustainable given its relatively high...
