Prospect News reports one new default for July 18-July 24, S&P two

By Caroline Salls

Pittsburgh, July 26 - Prospect News reported one new default for the week of July 18 to July 24 in the form of a Chapter 11 bankruptcy filing made by Maxcom Telecomunicaciones, SAB de CV.

Prospect News also reported the City of Detroit's July 18 bankruptcy filing. However, Detroit had previously defaulted in connection with a June 14 missed principal and interest payment.

Prospect News has reported 87 defaults so far in 2013, including 45 Chapter 11 filings, 16 missed interest payments, six Chapter 7 bankruptcy filings, five missed principal and interest payments, four distressed exchanges, two each of Chapter 15 bankruptcy filings, involuntary bankruptcy filings, bankruptcy proceedings and missed principal payments and one each of Chapter 9 bankruptcy filings, insolvencies and missed payments.

Meanwhile, Standard & Poor's reported two global corporate defaults for the week, bringing its year-to-date default tally to 50 issuers.

S&P said it lowered the corporate credit rating on Chino Hills, Calif.-based bath and spa producer Jacuzzi Brands to selective default on July 18 after the company completed a distressed exchange.

In addition, S&P lowered the corporate credit rating on Scottsdale, Ariz.-based emergency transport provider Rural/Metro Corp., to D on July 24 after it failed to make its July 15 interest payment on its unsecured bonds due 2019.

The agency said it revised its 2013 default tally to include Stamford, Conn.-based higher education publisher Cengage Learning Holdings II LP, which defaulted on July 3.

Of the 50 defaults so far this year, S&P said 22 resulted from missed interest, principal or cash payments, 12 from bankruptcy filings, eight 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 30 of the 50 defaults so far this year are based in the United States, 10 are based in Europe, and 10 are based in the emerging markets.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.