Prospect News and S&P each report one new default for Jan. 30-Feb. 5

By Caroline Salls

Pittsburgh, Feb. 7 - Prospect News reported one new default for the period from Jan. 30 through Feb. 5.

The latest default came in the form of Tuscany International Drilling Inc.'s Chapter 11 bankruptcy filing.

Prospect News has reported 10 defaults so far for 2014, including six Chapter 11 bankruptcy filings, three missed interest payments and one Chapter 15 bankruptcy filing.

Meanwhile, Standard & Poor's recorded its first default of 2014.

S&P said Cognor SA obtained court approval to complete a distressed exchange of its outstanding €118 million senior secured notes due Feb. 1 with new senior secured and exchangeable notes.

Before Cognor's default, the ratings agency said there had been no global corporate defaults for 36 days, the longest stretch without a corporate default since mid-2011 and one of only three times it has seen such a stretch in 17 years.

At this time last year, S&P said there were 10 defaults.

S&P's global corporate default tally stood at 78 issuers at the end of 2013, lower than both the previous year's tally of 84 defaults and the 10-year average of 101.

The ratings agency said the 78 defaulters in 2013 translate to an estimated global speculative-grade corporate default rate of 2.3%.

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