RIDGEFIELD PARK, N.J.-MobileMedia Corp. put off plans to report third quarter financial results until Nov. 1 because the new company president said he wanted to take another week to prepare for the announcement.
MobileMedia, which originally planned to release financial information Oct. 24, said it would discuss its current performance and future direction on that date. However, Mike Lorelli, MobileMedia’s chief executive officer, said he wanted to take another week to prepare.
The delay didn’t postpone bad news for the paging operator.
Moody’s Investor Service Inc. last week said it lowered its rating on MobileMedia’s senior subordinated notes to Caa from B3 and on the company’s senior secured bank facility to B2 from B1.
About a month ago, MobileMedia announced it expected to have difficulty meeting its November interest payment on its $250 million, 9.38 percent senior subordinated notes due November 2007, said Moody’s.
The New York-based rating firm said its recent downgrade affects the latter notes due 2007, the company’s $210 million, 10.5 percent senior subordinated deferred coupon notes due 2003 and its three tranche $750 million secured bank facility.
Moody’s began its review of MobileMedia for possible downgrade on Sept. 30. At that time, the Ridgefield Park, N.J., carrier announced several negative issues.
The company reported that it expected poor earnings, it would likely violate some bank covenants, it had erred in reports to the Federal Communications Commission regarding several hundred paging stations and that churn had increased.
