Key3Media Group Inc. on Wednesday said that several of the organizations tradeshows, including Seybold Seminars New York, would be cancelled for 2003. The news comes on the same day that Moody’s Investor Services lowered their rating of the company.
Noting the continued economic downturn in the technology sector and trade show industry, Key3Media has cancelled five North American shows. COMDEX Chicago, COMDEX Vancouver, COMDEX Montreal, COMDEX/NetWorld+Interop Atlanta and Seybold Seminars New York have all been dropped from the company’s list of upcoming events.
The group will now focus on “national events that better serve the demands of the IT marketplace,” the company said in a statement. The shows Key3Media will focus on include COMDEX Fall Las Vegas, November 16-21, 2003; COMDEX Canada and NetWorld+Interop, Toronto, September 16-18, 2003; NetWorld + Interop Las Vegas, April 27-May 2, 2003; and Seybold San Francisco, September 22-25, 2003.
In addition, Key3Media’s Needham, Massachusetts’s office will close on December 18, 2002, with current office functions being moved to offices in Los Angeles and Foster City, California.
The downgrade by Moody’s reflects on Key3Media’s underperformance compared to expectations, a deteriorating cash flow and the company’s vulnerable liquidity position.
“It is Moody’s view that the most likely alternative that the company will pursue is financial restructuring, as the universe of likely buyers for its assets is small,” said Moody’s in a statement.
Key3Media said its 2002 events would be held as scheduled.
Shares of Key3Media are currently trading at $0.02.