Swiss Fund Says Drink Co. Reneged On Rating Promise
By Christopher Norton
Law360, Washington (March 02, 2012, 2:21 PM ET) -- A Swiss investment fund on Tuesday sued beverage carbonation company NuCO2 LLC and U.S. Bank NA in New York federal court, alleging that it was denied the guarantees of an independent credit rating agency on $60 million worth of subordinated debt securities NuCO2 issued.
NuCO2 did not consult with subordinated noteholders in deciding to issue the notes without an independent rating, but instead consulted with senior noteholders, who would not be affected, according to SNB StabFund's complaint. The notes subsequently dropped significantly in value due to...