Prospect News marks three new defaults for Jan. 12-Jan. 18, S&P one

By Caroline Salls

Pittsburgh, Jan. 20 - Prospect News reported three new defaults for the week of Jan. 12 to Jan. 18.

Specifically, Prospect News reported a bankruptcy filing made by Buffets, Inc., a missed interest payment on EOAL Cyprus Holdings Ltd.'s 15% senior secured callable bonds due 2014 and a distressed exchange made by Hanley Wood LLC.

Prospect News also reported a Chapter 15 bankruptcy filing made by Catalyst Paper Corp., which had previously defaulted.

Meanwhile, Standard & Poor's recorded one new default for the week, bringing its year-to-date default total to five.

S&P said its latest defaulter was Hanley Wood, which completed a subpar recapitalization of its debt on Tuesday. The agency said it views this as tantamount to default.

So far this year, S&P said two issuers missed interest payments, one completed a subpar debt exchange, one filed for bankruptcy and one was confidential.

In 2011, 21 issuers defaulted because of missed interest or principal payments, 13 because of bankruptcy filings and 11 because of distressed exchanges, the ratings agency reported.

In addition, two issuers failed to finalize refinancing on bank loans, another two were subject to regulatory action, one had its banking license revoked by its country's central bank, another was appointed a receiver and two were confidential.

Of the 53 global corporate defaults in 2011, 39 were based in the United States, seven were based in the other developed region, which includes Australia, Canada, Japan and New Zealand, four were based in Europe, and three were based in the emerging markets.

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