Prospect News, S&P each report two new defaults for May 19 to May 25

By Caroline Salls

Pittsburgh, May 27 – Prospect News reported two new defaults for the period of May 19 through May 25.

Specifically, Prospect News reported Chapter 11 bankruptcy filings made by Phoenix Brands and Intervention Energy Holdings, LLC.

So far this year, Prospect News has reported 112 defaults, including 52 Chapter 11 bankruptcy filings, 36 missed interest payments, six missed principal payments, four Companies’ Creditors Arrangement Act filings, three Chapter 15 bankruptcy filings, two each of missed principal and interest payments, insolvencies and Chapter 7 bankruptcy filings and one each of administrations, judicial management requests, schemes of arrangement, missed interest payments paid late and suspension of payments.

Meanwhile, Standard & Poor’s also reported two new defaults for the week, raising its global corporate default tally to 74 issuers so far in 2016. S&P said the last time the global tally was higher by this point in the year was in 2009, when it reached 135 during the financial crisis.

S&P said it lowered its corporate credit rating on Arendal S de RL de CV to D from CC, reflecting the issuer’s inability to make the principal payment due on its $100 million of senior unsecured notes due May 23 and its signing of a 120-day forbearance agreement to seek a refinancing plan.

In addition, S&P lowered its corporate credit rating on Camposol SA to SD from CC after the company announced it would exchange $147.5 million of its senior unsecured notes for new 10½% senior secured notes due 2021.

Of the 74 defaulting issuers so far in 2016, S&P said 32 defaulted because of missed principal and/or interest payments, 18 because of distressed exchanges, nine after bankruptcy filings, five because of debt exchanges, four because of de facto restructurings and one each because of deferred interest payments, regulatory intervention and a moratorium. The remaining three defaults were confidential.

So far in 2016, S&P said 53 of the defaulting issuers are based in the United States, 12 in emerging markets, six in the other developed nations, which include Australia, Canada, Japan and New Zealand, and three in Europe.

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