Prospect News reports two new defaults for Oct. 10 to 16, S&P one

By Caroline Salls

Pittsburgh, Oct. 18 - Prospect News reported two new defaults for the week of Oct. 10 to Oct. 16 in the form of Savient Pharmaceuticals, Inc.'s Chapter 11 bankruptcy filing and ARM Asset Backed Securities SA's liquidation.

Prospect News also reported an involuntary Chapter 7 bankruptcy case filed against Suntech Power Holdings Co., Ltd. on Oct. 14.

However, Suntech previously defaulted in connection with a March 15, 2013 missed interest and principal payment.

Prospect News has reported 114 defaults so far in 2013, including 59 Chapter 11 bankruptcy filings, 20 missed interest payments, seven Chapter 7 bankruptcy filings, six 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, involuntary Chapter 7 bankruptcy filings, liquidations and recapitalizations.

Meanwhile, Standard & Poor's recorded one new default for the week, bringing its year-to-date default count to 63 issuers.

Specifically, S&P said the long-term corporate credit rating on Winsway Coking Coal Holdings was lowered to SD on Oct. 10 after the company announced the completion of a subpar tender offer on its senior unsecured notes. The agency said it views this as a distressed exchange.

Of the 63 defaults so far this year, S&P said 27 resulted from missed interest, principal or cash payments, 16 from bankruptcy filings, 10 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 six defaults were confidential.

The ratings agency said 36 of the 63 issuers that have defaulted so far this year are based in the United States, 14 are based in the emerging markets, 11 are based in Europe and two are based in the other developed region.

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