Prospect News reports five defaults for March 14-20; S&P marks four

By Caroline Salls

Pittsburgh, March 22 - Prospect News reported five new defaults for the week of March 14 to March 20.

The five new defaults came in the form of Chapter 11 bankruptcy filings made by Dex One Corp. and SuperMedia Inc., Central European Distribution Corp.'s missed principal payment on its 3% convertible senior notes due 2013, Rotech Healthcare Inc.'s missed interest payment on its 10% senior secured second-lien notes and Suntech Power Holdings Co., Ltd.'s missed principal and interest payments on its 3% convertible senior notes due 2013.

In addition to the notes default, Suntech Chinese principal operating subsidiary Wuxi Suntech Power Co., Ltd. filed insolvency proceedings in Jiangsu Province, China.

Prospect News also reported the City of Harrisburg, Pa.'s missed principal and interest payments on its general obligation refunding bonds, series D of 1997, and its general obligation refunding notes, series F of 1997.

Harrisburg had previously defaulted with missed principal and interest payments in September 2012 and March 2012 and a Chapter 9 bankruptcy filing made in October 2011.

Prospect News has reported 32 defaults so far in 2013, including 17 Chapter 11 filings, six missed interest payments, three missed principal payments, two each of missed principal and interest payments and involuntary Chapter 11 filings and one each of missed payments and Chapter 7 bankruptcy filings.

Meanwhile, Standard & Poor's also reported four new defaults for the week, raising its 2013 global corporate default tally to 21 issuers.

Specifically, S&P said the first two defaults resulted from Dex One and SuperMedia's bankruptcy filings. In addition, the agency said Rotech Healthcare defaulted after missing an interest payment on its second-lien notes, and Central European Distribution defaulted after failing to redeem its outstanding $258 million of convertible notes at maturity on March 15.

The agency said seven of the 2013 defaults stemmed from missed interest, principal or cash payments, six from bankruptcy filings, five from distressed exchanges, 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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