Prospect News reports five new defaults for Sept. 26-Oct. 2, S&P two

By Caroline Salls

Pittsburgh, Oct. 4 - Prospect News reported five new defaults for the week of Sept. 26 to Oct. 2.

The latest defaults came in the form of Chapter 11 bankruptcy filings made by Groeb Farms, Inc., Fresh & Easy Neighborhood Market Inc. and GateHouse Media, Inc., a Companies' Creditors Arrangement Act filing from Data & Audio-Visual Enterprises Holdings Inc. (Mobilicity) and OGX Petroleo e Gas Participacoes SA's missed interest payment on its senior notes.

Prospect News also reported Desarrolladora Homex, SAB de CV's missed interest payment on its 7½% senior guaranteed notes due Sept. 28, 2015. However, Desarrolladora Homex previously defaulted in connection with Sept. 25 and June 11 missed interest payments.

Prospect News has reported 110 defaults so far in 2013, including 58 Chapter 11 bankruptcy filings, 20 missed interest payments, six each of Chapter 7 bankruptcy filings and missed principal and interest payments, four distressed exchanges, three Chapter 15 bankruptcy filings, two each of involuntary Chapter 11 filings, CCAA filings and bankruptcy proceedings and one each of missed principal payments, Chapter 9 bankruptcy filings, insolvencies, administrations, missed interest payments paid late, Schutzschirmverfahren, and recapitalizations.

Meanwhile, Standard & Poor's recorded two new defaults for the week, raising its year-to-date default count to 61 issuers.

Specifically, S&P said it lowered the corporate credit ratings on OGX and GateHouse to D following OGX's missed interest payment and GateHouse's bankruptcy filing.

Of the 61 defaults so far this year, S&P said 27 resulted from missed interest, principal or cash payments, 16 from bankruptcy filings, nine from distressed exchanges, two from regulatory supervision and one each from a failure to refinance or pay off a revolving credit facility and subpar bond buybacks.

The remaining five defaults were confidential.

The ratings agency said 36 of the 61 issuers that have defaulted so far this year are based in the United States, 13 are based in the emerging markets, 11 are based in Europe, and one is based in the other developed region.

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