Prospect News reports four new defaults for Jan. 24-Jan. 30, S&P two

By Caroline Salls

Pittsburgh, Feb. 1 - Prospect News reported four new defaults for the week of Jan. 24 through Jan. 30 in the form of Chapter 11 bankruptcy filings made by EuroFresh Inc., Powerwave Technologies, Inc., School Specialty, Inc. and LodgeNet Interactive Corp.

Prospect News has reported 12 defaults so far in 2013, including eight Chapter 11 filings, two missed principal payments and two missed interest payments.

Meanwhile, Standard & Poor's reported two defaults for the week, increasing its year-to-date default tally to six issuers.

S&P said the first default, U.S.-based transportation company Evergreen International Aviation Inc., resulted from a missed interest payment.

The second default, Mexico-based telecommunications company Axtel SAB de CV, stemmed from the completion of a subpar exchange of the company's outstanding bonds for senior secured bonds, senior convertible secured bonds and cash.

Of the six companies that have defaulted so far this year, S&P said two defaulted as a result of a distressed exchange, two because of missed interest, principal or cash payments, one as a result of a bankruptcy filing and one because of a failure to refinance or pay off a revolving credit facility.

S&P said missed payments and bankruptcy filings tied for the top reason for default in 2012, with 23 issuers each. Of the remaining defaults, distressed exchanges accounted for 17, 13 were confidential, and six entities defaulted for various other reasons.

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