Prospect News reports two new defaults for April 11-April 17; S&P one

By Caroline Salls

Pittsburgh, April 19 - Prospect News reported two new defaults for the week of April 11 to April 17 in the form of LDK Solar Co., Ltd.'s missed principal payment on its 4.75% convertible senior notes due April 15, 2013 and The Scooter Store Holdings, Inc.'s Chapter 11 bankruptcy filing.

Prospect News also reported MBIA Insurance Corp.'s April 15 missed interest payment on its 14% fixed-to-floating-rate surplus notes due 2033.

However, MBIA previously defaulted via a Jan. 15 missed interest payment.

Prospect News has reported 39 defaults so far in 2013, including 23 Chapter 11 filings, five missed interest payments, four missed principal and interest payments, three missed principal payments, two involuntary Chapter 11 filings and one each of missed payments and Chapter 7 bankruptcy filings.

Meanwhile, Standard & Poor's reported one new default for the week, raising its 2013 global corporate default tally to 24 issuers.

S&P said it lowered its long-term corporate credit ratings on U.S.-based travel services provider Travelport Holdings Ltd. to selective default from CC after the company completed its comprehensive capital refinancing and restructuring plan.

Specifically, S&P said the group exchanged its holding company payment-in-kind notes for senior subordinated notes and equity, which qualifies as a distressed exchange.

The agency said eight of the 2013 defaults stemmed from missed interest, principal or cash payments, six from bankruptcy filings, six from distressed exchanges, one from a failure to refinance or pay off a revolving credit facility and one from subpar bond buybacks. The other two defaults were confidential.

Of the 24 defaults, 15 are based in the United States, six in Europe and three in the emerging markets, S&P reported.

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