Prospect News and S&P each report two new defaults for May 1 to May 7

By Caroline Salls

Pittsburgh, May 9 - Prospect News reported two new defaults for the period of May 1 to May 7.

Specifically, Prospect News reported Chapter 11 bankruptcy filings made by GSE Environmental, Inc. and ClearEdge Power, Inc.

Prospect News also reported River Rock Entertainment Authority's missed May 1 interest payment on its 9% series A senior notes due 2018 and 8% series B tax-exempt senior notes due 2018. However, River Rock previously defaulted in connection with a Nov. 2 missed principal and interest payment.

Prospect News has reported 57 defaults so far for 2014, including 32 Chapter 11 bankruptcy filings, nine missed interest payments, four Chapter 15 bankruptcy filings, two each of restructurings, defaults, administrations and concurso mercantil proceedings and one each of missed principal and interest payments, bankruptcy filings, judicial discovery requests and Companies' Creditors Arrangement Act filings.

Meanwhile, Standard & Poor's also reported two new defaults for the week, bringing its year-to-date total to 22 defaults. The agency said the 2014 default count was revised to include three global corporate issuers that defaulted after their ratings had been withdrawn at the issuers' request.

S&P said the new defaults occurred after Energy Future Holdings Corp. and GSE Environmental announced that they had filed Chapter 11 bankruptcy cases.

Of the 22 defaults so far this year, S&P said 14 are based in the United States, five in the emerging markets, two in the other developed region, which consists of Australia, Canada, Japan and New Zealand, and one in Europe.

The ratings agency said 11 of the 22 defaults so far this year resulted from bankruptcy filings, five from missed interest and/or principal payments, three from distressed exchanges and one each from judicial reorganization and a creditor protection filing. The other default was confidential.

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