Prospect News reports four new defaults for Feb. 14-Feb. 20, S&P three

By Caroline Salls

Pittsburgh, Feb. 22 - Prospect News reported four new defaults for the week of Feb. 14 through Feb. 20 in the form of Chapter 11 bankruptcy filings made by Reader's Digest Association, Inc. (RDA Holding Co.) and Liberty Medical Supply, Inc., and involuntary Chapter 11 case filed against Trinity Coal Corp. and a missed interest payment from Elbit Imaging Ltd.

Prospect News has reported 18 defaults so far in 2013, including 10 Chapter 11 filings, three missed interest payments, two each of missed principal payments and involuntary Chapter 11 filings and one missed payment.

Meanwhile, Standard & Poor's also reported three new defaults for the week, raising its 2013 global corporate default tally to 14 issuers.

Specifically, S&P said it lowered its issuer credit rating on Reader's Digest to D after the bankruptcy filing, downgraded a confidentially rated Israeli real estate developer to D and downgraded U.S.-based casino operator Revel AC Inc. to D after it announced plans to restructure through a pre-packaged bankruptcy filing.

S&P said 10 of the 14 defaulted entities are based in the United States, two are based in Europe, and two are based in the emerging markets.

Of the 14 defaults so far this year, the agency said four each resulted from distressed exchanges and bankruptcy filings, three from missed interest, principal, or cash payments, one from a failure to refinance or pay off a revolving credit facility and one from subpar bond buybacks. The other default was confidential.

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