Prospect News reports one new default for April 3-April 9, S&P three

By Caroline Salls

Pittsburgh, April 11 - Prospect News reported one new default for the period of April 3 to April 9 in the form of Brookstone, Inc.'s Chapter 11 bankruptcy filing.

Prospect News also reported James River Coal Co.'s Chapter 11 filing during the week. However, James River Coal previously defaulted in connection with missed interest payments on its 7 7/8% senior notes due 2019.

Prospect News has reported 48 defaults so far for 2014, including 26 Chapter 11 bankruptcy filings, eight missed interest payments, three Chapter 15 bankruptcy filings, two each of restructurings, defaults and administrations and one each of missed principal and interest payments, bankruptcy filings, judicial discovery requests, missed principal payments and concurso mercantil proceedings.

Meanwhile, Standard & Poor's reported three defaults since its latest report, raising its 2014 global corporate default tally to 13.

Specifically, S&P said Guitar Center Inc. completed a distressed exchange of its unsecured notes for holding company preferred stock and refinanced $375 million of operating company unsecured notes with $325 million new senior unsecured notes; Baghlan Group failed to pay the $19 million coupon due Dec. 27 on its loan participation notes; and James River Coal filed for bankruptcy and missed interest payments.

S&P said it withdrew its rating on Baghlan after a downgrade because the company failed to provide sufficient information.

Of the 13 defaults so far this year, S&P said four each resulted from bankruptcy filings and missed interest and/or principal payments, three from distressed exchanges and one from judicial reorganization, and one was confidential.

The ratings agency said seven of this year's defaults are based in the United States, four are based in the emerging markets, and the others are split evenly between Europe and the other developed region, consisting of Australia, Canada, Japan and New Zealand.

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