Media Vision Technology Inc is learning that when you find yourself in the gutter, everybody wants to kick you, and the latest blow for the Fremont, California sound boards maker is that Moody’s Investors Service Inc has downgraded its convertible subordinated debentures due 2003 to Caa from B3; a C rating is a warning that holders must fear for their money; about $115m of debt securities affected. The downgrade reflects the high level of uncertainty over the financial condition and medium-term viability of the company: Media Vision is faced with a significant impending loss in the first quarter of 1994 and a restatement of fourth quarter 1993 earnings to show a loss, instead of the $8.54m profit reported in February. The firm’s liquidity will continue to be hit by supplier and creditor efforts to restructure current and upcoming trade debt and short-term bank obligations.
