Prospect News reports four new defaults for week to Oct. 3, S&P one

By Caroline Salls

Pittsburgh, Oct. 5 - Prospect News reported four new defaults for the week of Sept. 27 to Oct. 3 in the form of Chapter 11 bankruptcy filings made by Bakers Footwear Group, Inc., Southern Air Holdings, Inc. and Metro Fuel Corp. and Yellow Media Inc.'s missed credit facility principal payment.

Yellow Media also announced that it would miss an Oct. 14 interest payment on its convertible debentures.

In addition, Prospect News reported that San Bernardino, Calif., missed the Oct. 1 principal payment on its taxable pension obligation bonds series 2005A-2. San Bernardino had previously defaulted through an Aug. 1 Chapter 9 bankruptcy filing.

Prospect News has reported a total of 113 defaults so far in 2012.

Of those, 63 were Chapter 11 filings, 10 stemmed from missed interest payments, nine were from distressed exchanges, seven resulted from missed principal payments, five were from Chapter 15 bankruptcy filings, four resulted from Companies' Creditors Arrangement Act filings, two each were from administrations, missed principal and interest payments and liquidations, and one stemmed from each of Chapter 9 bankruptcy filings, corporate debt restructuring, examinership, notices of default and acceleration, bankruptcy, reorganization, insolvency, restructuring and Chapter 7 bankruptcy filings.

Meanwhile, Standard & Poor's reported one new default for the week, raising its 2012 default total to 61.

S&P said it lowered its corporate credit rating on a confidentially rated, U.S.-based transportation company this week.

The ratings agency said its year-to-date default count has been revised to include the subpar debt restructuring of Marsico Holdings LLC on Sep. 11, which was lowered to D and withdrawn the same day.

By region, S&P said 34 of the 61 defaulters were based in the United States, 17 in the emerging markets, seven in Europe and three in the other developed region, which includes Australia, Canada, Japan and New Zealand.

So far this year, S&P said bankruptcy filings accounted for 18 defaults, missed payments accounted for 15, distressed exchanges accounted for 12, and 10 were confidential.

The remaining six entities defaulted for various other reasons, the agency reported.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.