Prospect News and S&P each report one new default for Dec. 26-Jan. 1

By Caroline Salls

Pittsburgh, Jan. 3 - Prospect News reported one new default for the period from Dec. 26 through Jan. 1.

The latest default came in the form of Colossus Minerals Inc.'s Dec. 31 missed interest payment on its convertible gold-linked notes.

In addition, Prospect News reported that Subex Ltd. will not make the Jan. 6 and July 6, 2014 interest payments on its 5.7% convertible bonds due 2017. The bondholders granted waivers of those payments after the company said a waiver was the "only viable option."

Subex's default marks the first one reported by Prospect News for 2014.

Prospect News reported 152 defaults in 2013, including 78 Chapter 11 bankruptcy filings, 25 missed interest payments, seven each of Chapter 7 bankruptcy filings and missed principal and interest payments, six each of distressed exchanges and Chapter 15 bankruptcy filings, three each of administrations, CCAA filings and insolvencies, two each of involuntary Chapter 11 filings and bankruptcy proceedings and one each of judicial recovery requests, Chapter 9 bankruptcy filings, involuntary Chapter 7 bankruptcy filings, missed principal payments, Schutzschirmverfahren, liquidations, provisional liquidations, corporate reorganizations, judicial reorganizations and recapitalizations.

Meanwhile, Standard & Poor's reported one default for the period. Specifically, the agency said it lowered Milagro Oil & Gas Inc. to D from CC after the company missed an interest payment.

S&P's global corporate default tally finished 2013 with 77 issuers, lower than the 2012 count of 84 defaults and the 10-year average of 101.

The agency said the 77 defaulters in 2013 translate to an estimated global speculative-grade corporate default rate of 2.3%.

S&P said the majority of defaulters in 2013 were based in the United States, with 43 issuers. In addition, 14 European issuers defaulted in 2013, 17 from the emerging markets and three from the other developed region, which includes Australia, Canada, Japan and New Zealand.

Of the 77 defaults in 2013, S&P said 33 resulted from missed interest, principal or cash payments, 19 from bankruptcy filings, 15 from distressed exchanges, two from regulatory supervision and one from a failure to refinance or pay off a revolving credit facility.

The remaining seven defaults were confidential.

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