Prospect News, S&P each report one new default for Oct. 17 to Oct. 23

By Caroline Salls

Pittsburgh, Oct. 25 - Prospect News reported one new default for the week of Oct. 17 to Oct. 23 in the form of Hospitality Staffing Solutions Group, LLC's Chapter 11 bankruptcy filing.

Prospect News also reported Gasco Energy, Inc.'s Oct. 18 distressed exchange related to its $45.17 million principal amount of convertible senior notes due 2015 and accrued interest and all 182,065 of its series C convertible preferred shares. However, Gasco previously defaulted in connection with an April 5, 2013 missed interest payment.

Also during the week, Prospect News reported Mirabela Nickel Ltd.'s missed interest payment on its 8¾% senior unsecured notes due 2018, which occurred on Oct. 15.

Prospect News has reported 116 defaults so far in 2013, including 60 Chapter 11 bankruptcy filings, 20 missed interest payments, seven Chapter 7 bankruptcy filings, six missed principal and interest payments, five 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 65 issuers.

Specifically, S&P said the long-term corporate credit rating on Mirabela Nickel was lowered to SD on Oct. 23 after the Oct. 15 missed payment.

Of the 65 defaults so far this year, S&P said 28 resulted from missed interest, principal or cash payments, 17 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 65 issuers that defaulted so far this year are based in the United States, 14 are based in the emerging markets, 12 are based in Europe, and three are based in the other developed region.

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