Prospect News reports one new default for Jan. 17-Jan. 23, S&P zero

By Caroline Salls

Pittsburgh, Jan. 25 - Prospect News reported one new default for the week of Jan. 17 through Jan. 23 in the form of a Chapter 11 bankruptcy filing made by Education Holdings 1, Inc.

Prospect News has reported eight defaults so far in 2013, including four Chapter 11 filings, two missed principal payments and two missed interest payments.

Meanwhile, Standard & Poor's reported no defaults for the week, leaving its year-to-date default tally at four issuers. S&P said the tally is three defaults behind where it stood at this point in 2012.

Three of the defaults recorded by S&P in 2013 were media companies, and the other was a brokerage firm. All four companies are based in the United States.

The ratings agency said the four companies each defaulted for a different reason, with one default stemming from a distressed exchange, one from a missed cash payment, one from a bankruptcy filing and one from a failure to refinance or pay off a revolving credit facility.

By region, 47 of the 84 defaulters reported by S&P in 2012 were based in the United States, 24 in the emerging markets, nine in Europe and four in the other developed region, which includes Australia, Canada, Japan and New Zealand.

S&P said missed payments and bankruptcy filings tied for the top reason for default in 2012, with 23 issuers each. Of the remaining defaults, distressed exchanges accounted for 17, 13 were confidential, and six entities defaulted for various other reasons.

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