Prospect News reports two new defaults for Oct. 11-17; S&P sees none

By Caroline Salls

Pittsburgh, Oct. 19 - Prospect News reported two new defaults during the period of Oct. 11 through Oct. 17 in the form of a missed interest payment on A123 Systems, Inc.'s 3.75% convertible subordinated notes due 2016 and LBI Media Holdings, Inc.'s missed interest payment on its 11% discount notes due 2013.

A123 Systems also filed Chapter 11 bankruptcy on Oct. 17, marking its second default during the week.

In addition, Prospect News reported a Chapter 11 bankruptcy filing by Vertis Holdings, Inc., which had previously defaulted with a November 2010 bankruptcy filing, as well as a bankruptcy filing made by Satcon Technology Corp., which defaulted on its subordinated convertible note earlier this month.

Prospect News has reported a total of 120 defaults so far in 2012.

Of those, 67 were Chapter 11 filings, 11 stemmed from missed interest payments, nine each were from distressed exchanges and 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 no new defaults for the week, leaving its year-to-date total at 61.

By region, S&P said that 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.

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