Prospect News reports four new defaults for Nov. 7-Nov. 13, S&P one

By Caroline Salls

Pittsburgh, Nov. 15 - Prospect News reported four new defaults for the period from Nov. 7 through Nov. 13.

The latest defaults came in the form of Chapter 11 bankruptcy filings made by Physiotherapy Holdings, Inc. and Global Aviation Holdings, Inc., OSX Brasil SA's judicial recovery request and Magnolia Energy Corp. Ltd.'s missed interest payment.

Prospect News has reported 132 defaults so far in 2013, including 68 Chapter 11 bankruptcy filings, 22 missed interest payments, seven each of Chapter 7 bankruptcy filings and missed principal and interest payments, five distressed exchanges, four Chapter 15 bankruptcy filings, two each of involuntary Chapter 11 filings, CCAA filings, bankruptcy proceedings, insolvencies, missed principal payments and judicial recovery requests and one each of Chapter 9 bankruptcy filings, administrations, missed interest payments paid late, Schutzschirmverfahren, liquidations, provisional 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 PT Bakrie Telecom Tbk.'s long-term corporate credit rating was lowered to D on Nov. 8 after it missed an interest payment on its senior notes on Nov. 7. The company informed its bondholders that it will not make the payment until it finalizes and implements its debt-restructuring exercise.

Additionally, S&P said its revised 2013 default count reflects the removal of Northland Resources AB from its default list as part of a data reconciliation process. The agency said Northland is a project finance entity and thus does not qualify as a corporate default.

S&P said 36 of the 65 issuers that have defaulted so far this year are based in the United States, 15 are based in emerging markets, 11 are based in Europe, and three are based in the other developed region.

Of the 65 defaults so far this year, 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 other six defaults were confidential.

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