Memorex Telex NV’s debt is now almost worthless and is to be converted into new common of doubtful value under the company’s reorganisation plan. Accordingly Standard & Poor’s Corp has downgraded the Memorex Telex Corp 10% senior guaranteed notes due 1998 to single-D – D for dead – from single-C.Since the company has not made the interest payment on its term loan due June 1 1993, the notes are in default. The rating will be withdrawn after the rated debt is converted into equity and the company emerges from bankruptcy protection on March 31.
