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Party City back in Creditor Talks amid Cash Crunch

Party City has reopened talks with creditors to address its liquidity needs, according to a Bloomberg report that cited anonymous sources. The news service also noted that market prices for some of Party City’s bonds fell following its initial report of creditor talks. Fitch and Moody’s have both downgraded Party City in recent months. In cutting the company’s credit rating, Fitch analysts pointed to a debt maturity next year as well as “rapid deterioration” in Party City’s operations and liquidity, and they called its capital structure “likely untenable.”

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