Prospect News reports three new defaults for week while S&P marks one

By Caroline Salls

Pittsburgh, June 20 - Prospect News reported three new defaults for the week of June 10 to June 16 in the form of Chapter 11 bankruptcy filings made by Linden Ponds, Inc. and Hingham Campus, LLC and an OPTI Canada Inc. missed interest payment.

Specifically, OPTI Canada missed interest payments on its $1 billion of 8¼% senior secured notes due 2014 and $750 million of 7.785% senior secured notes due 2014.

Prospect News also reported a bankruptcy filing by Perkins & Marie Callender's Inc., which previously defaulted when it missed an April 1 interest payment.

Meanwhile, Standard & Poor's recorded one new default for the week in the form of OPTI Canada's missed interest payments, bringing S&P's global corporate default to 16 issuers for 2011.

In comparison, S&P said that 42 global corporate issuers had defaulted by this time in 2010.

The ratings agency said that 10 of this year's defaults were based in the United States, two each were based in New Zealand and Canada, and one each was based in the Czech Republic and Russia.

S&P said that six of this year's defaults resulted from distressed exchanges and another six from missed interest or principal payments - both among the top reasons for default in 2010.

Of the remaining four 2011 defaults, two issuers defaulted after they filed for bankruptcy, another had its banking license revoked by its country's central bank and the fourth was forced into liquidation as a result of regulatory action.

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