US Distributor, BAKER & TAYLOR, Put on Bankruptcy Watch List

      MUSIC NEWS - Charlotte, NC based video, cd and book distributor, Baker &Taylor recently was placed on the "Bottom Rung” list of companies that are considered to be the greatest risk of default or bankruptcy.  B&T, controlled by private-equity fund Castle Harlan Inc.  is one of the few remaining dvd/cd distributors in the USA, and like their competitors, has seen a steady drop in business, particularly on the retail distribution side as a result of consumers embracing new media entertainment download delivery (see Alliance post) and decline of many retailers. B&T's debt, combined with a weakening ratio of revenue to its interest payments, prompted Moody’s to lower its default rating last month to B3, with a negative outlook.  That’s just low enough to qualify for Moody’s brand new Bottom Rung report. Moody’s has recently started a new quarterly review to warn investors about companies that are at the greatest risk of default.