Prospect News reports one new default for July 4-July 10; S&P sees two

By Caroline Salls

Pittsburgh, July 12 - Prospect News reported one new default for the week of July 4 to July 10 in the form of a distressed exchange made by Jacuzzi Brands LLC.

Prospect News also reported Codfarmers ASA's missed payment on its 15% senior unsecured convertible bond issue 2007/2011. However, Codfarmers had previously defaulted with Nov. 30, 2012 and April 15 missed principal and interest payments.

Prospect News has reported 78 defaults so far in 2013, including 41 Chapter 11 filings, 12 missed interest payments, six missed principal and interest payments, five Chapter 7 bankruptcy filings, four distressed exchanges, two each of Chapter 15 bankruptcy filings, involuntary bankruptcy filings, bankruptcy proceedings, missed principal payments and missed payments.

Meanwhile, Standard & Poor's reported two global corporate defaults for the week, raising its year-to-date default tally to 47 issuers.

S&P said Mexico-based real estate company Desarrolladora Homex SAB de CV defaulted after it missed an interest payment. The ratings agency said it had withdrawn its ratings on Homex in February 2012 at the issuers' request.

S&P said the second default it recorded was a confidentially rated Israeli financial institution.

Of the 47 defaults so far this year, S&P said 21 resulted from missed interest, principal or cash payments, 11 from bankruptcy filings, seven from distressed exchanges and one each from a failure to refinance or pay off a revolving credit facility, regulatory supervision and subpar bond buybacks.

The remaining five defaults were confidential.

S&P said 27 of the 47 defaults so far this year are based in the United States, 10 are based in Europe, and 10 are based in the emerging markets.

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