Prospect News reports two new defaults for Dec. 19-Dec. 25, S&P three

By Caroline Salls

Pittsburgh, Dec. 27 - Prospect News reported two new defaults for the period from Dec. 19 through Dec. 25.

The latest defaults came in the form of a Chapter 11 bankruptcy filing made by Constar International Inc. and Zlomrex International Finance SA's Chapter 15 bankruptcy filing.

In addition, Prospect News reported a Companies' Creditors Arrangement Act filing made by Jaguar Mining Inc. and an OSX Brasil SA missed interest payment. Jaguar Mining previously defaulted in connection with a Nov. 1 missed interest payment and OSX in connection with a Nov. 20 missed interest payment and a Nov. 12 judicial recovery request.

Prospect News reported 151 defaults for 2013 as of Dec. 27, including 78 Chapter 11 bankruptcy filings, 24 missed interest payments, seven each of Chapter 7 bankruptcy filings and missed principal and interest payments, six each of distressed exchanges and Chapter 15 bankruptcy filings, three each of administrations, CCAA filings and insolvencies, two each of involuntary Chapter 11 filings and bankruptcy proceedings and one each of judicial recovery requests, Chapter 9 bankruptcy filings, involuntary Chapter 7 bankruptcy filings, missed principal payments, Schutzschirmverfahren, liquidations, provisional liquidations, corporate reorganizations, judicial reorganizations and recapitalizations.

Meanwhile, Standard & Poor's reported three new defaults for the week, raising its year-to-date tally to 75.

Specifically, S&P said it lowered its corporate credit rating on Codere SA to SD after the company missed an interest payment on its €760 million senior notes due Dec. 15, lowered its corporate credit rating on Songa Offshore SE to D after the company implemented an extensive debt restructuring, which is viewed as a distressed exchange, and lowered its corporate credit rating on Axtel to SD after the company agreed to exchange its existing 2017 and 2019 senior unsecured notes for its existing senior secured notes maturing in 2020, which is also viewed as a distressed exchange.

Of the 75 defaults so far this year, the agency said 33 resulted from missed interest, principal, or cash payments, 18 from bankruptcy filings, 14 from distressed exchanges, two from regulatory supervisions 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.

S&P said 42 of the 75 issuers that defaulted as of Dec. 25 are based in the United States, 16 are based in emerging markets, 14 are based in Europe, and three are based in the other developed region.

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