"Univision Latest Member Of PIK Club"

"Broadcaster of Mexican soap operas Univision just made credit bubble
investors even more sorry to have bought into its GS underwritten
March 2007 Pay In Kind (PIK) bond, after disclosing in an 8K filing
last night that it would PIK the September 15 interest payment on its
9.75% Senior Notes due 2015, and the in-kind election would extend
indefinitely into the future. As reason for the PIK election the
company stated the following:

The Company has elected to pay PIK Interest in the amount of
approximately $79 million for the interest period commencing on March
15, 2009 to enhance liquidity in light of the current uncertainty in
the financial markets.

No surprise there.

This latest PIK election brings the total of toggling PIK bonds to 22
or more than half of all outstanding, as of the 52 PIK notes have been
issued, 6 have been redeemed and 2 have filed for bankruptcy, while
Harrah’s recently reduced the size of its PIK issue by $350 million.
The remaining 22 issues amount to $17.7 billion. The 22 bonds in which
investors are likely to never again see any cash payments (if default
expectations are any indication) prior to their eventual bankruptcies
are the following:"

http://www.bearmarketinvestments.com...er-of-pik-club