According to the credit analysts at Fitch Ratings, overnight -- this much is certainly true: . . .Potential outcomes could include Solo Cup being consolidated into a stronger packaging entity, which likely results in the acquiring company removing excess industry capacity. . . . Longer-term standalone prospects for Solo Cup are constrained if a change in control does not occur. . . .
"Excess industry capacity" is another way of saying massive layoffs are on the way.
I'll go check to see what happens under the Solo credit agreements if one or more of the remaining rating agencies (Moody's and D&B) likewise withdraw their ratings on Solo. I'll report back here, on that, later. 'Tis a strange (and very public) pickle Solo has chosen to put itself in -- all by deciding to pay a few top executives massive bonuses to do jobs they had already agreed to do. Yikes.
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