Prospect News reports two new defaults for May 16-22, S&P marks one

By Caroline Salls

Pittsburgh, May 24 - Prospect News reported two new defaults for the week of May 16 to May 22 in the form of Chapter 11 bankruptcy filings made by Highway Technologies, Inc. and TPO Hess Holdings, Inc.

Prospect News has reported 53 defaults so far in 2013, including 30 Chapter 11 filings, seven missed interest payments, six missed principal and interest payments, three missed principal payments, two each of Chapter 7 bankruptcy filings and involuntary Chapter 11 filings and one each of bankruptcy filings, missed payments and distressed exchanges.

Meanwhile, Standard & Poor's reported one new default for the week, raising its year-to-date default tally to 36.

Specifically, S&P said it lowered its corporate credit rating on AGY Holding Corp. to D from CCC after the company announced that it hadn't made nearly $10 million in interest payments due May 15 on its 11% second-lien notes.

Of the 36 defaults so far this year, S&P said 15 resulted from missed interest, principal or cash payments, eight from bankruptcy filings, seven from distressed exchanges and one each from failure to refinance or pay off a revolving credit facility, regulatory supervision and subpar bond buybacks. The remaining three defaults were confidential.

The agency said 23 of the 36 defaults are based in the United States, seven are based in Europe, and six are based in the emerging markets.

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