S&P marks one default for week ended Sept. 10; Prospect News sees one bankruptcy, no missed payments

By Caroline Salls

Pittsburgh, Sept. 11 - Standard & Poor's reported one global corporate default for the week ended Sept. 10, bringing the year-to-day tally to 214, according to a news release.

S&P said the defaulter, which was based in the United States, was confidential.

Meanwhile, Prospect News recorded one bankruptcy filing for the week, made by Trident Resources Corp.

Also, Lazy Days' R.V. Center, Inc. said it is soliciting votes on a pre-packaged Chapter 11 bankruptcy plan of reorganization.

In addition, Haights Cross Communications, Inc. said it plans to make a pre-packaged bankruptcy filing to implement a restructuring agreement with its senior secured term loan lenders and some of its noteholders.

S&P said its year-to-date distressed exchange count is 74 issuers, making it the leading reason for default in 2009. Missed interest payments follow closely with 73 issuers for the year, and the year-to-day bankruptcy filing default tally stands at 54 issuers.

By region, S&P said 154 issuers have defaulted this year in the United States, 13 issuers in Europe, 34 issuers in the emerging markets and 13 issuers in the other-developed region, which includes Australia, Canada, Japan and New Zealand.

Of the global corporate defaulters so far this year, S&P said:

• 40% of issues with available recovery ratings had recovery ratings of 6, indicating the ratings agency's expectation for negligible recovery of 0% to 10%;

• 16% of issues had recovery ratings of 5, for modest recovery prospects of 10% to 30%;

• 12% had recovery ratings of 4, or average recovery prospects of 30% to 50%;

• 11% had recovery ratings of 3, for meaningful recovery prospects of 50% to 70%;

• 11% of issues had recovery ratings of 2, indicating substantial recovery prospects of 70% to 90%; and

• 10% of issues had recovery ratings of 1, or very high recovery prospects of 90% to 100%.

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