MUMBAI (Thomson Financial) - Moody's Investors Service placed the ratings of
infoUSA Inc including its 'Ba3' corporate family rating, under review for
possible downgrade, after the company said it will not timely file its annual
report on form 10-K for the fiscal year ended-December 2007, which is due to be
filed on March 17.
Moody's also placed the company's 'B1' probability of default rating, 'Ba2'
on 175 mln usd million senior secured revolving credit facility due 2011, and
172.7 mln usd senior secured term loan due 2012.
The credit agreement requires the company to file the 10-K by March 17, the
Securities Exchange Commission deadline for accelerated filers.
The ratings agency said the review will focus on the company's plan to
address the late filing; the status of the previously disclosed shareholder
litigation and informal investigation by the SEC, and the timing for the
potential resolution of these issues as well as the financial implications.
In December 2007, infoUSA's board of directors formed a Special Litigation
Committee in response to shareholder litigation and a related informal
investigation by the SEC. The regulator is requesting a voluntary production of
documents relating to related party transactions, expense reimbursement, other
corporate expenditures and certain trading in the company's securities.
Moody's review will also include an assessment of infoUSA's fundamentals and
liquidity.
TFN.newsdesk@thomson.com
ami/pmi
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