Prospect News marks three new defaults for Feb. 9 to Feb. 15, S&P two

By Caroline Salls

Pittsburgh, Feb. 17 - Prospect News reported three new defaults for the week of Feb. 9 to Feb. 15 in the form of a Chapter 11 bankruptcy filing made by Connaught Group, Ltd., a Chapter 15 filing made by Hellas Telecommunications (Luxembourg) II SCA and Hotel Leelaventure Ltd.'s corporate debt restructuring.

Prospect News also reported a Chapter 11 bankruptcy filing by Energy Conversion Devices, Inc., which had previously defaulted when it missed an interest payment in December. That default was cured within the grace period.

Also, Prospect News reported Christ Hospital's Chapter 11 bankruptcy filing, which was made on Feb. 6.

Meanwhile, Standard & Poor's recorded two new defaults for the week, bringing its year-to-date total to 16.

S&P said its latest defaulters were PT Berlian Laju Tanker Tbk., which failed to make lease payments to at least one company and announced it would cease payments on all of its debt and lease obligations, and DirectBuy Holdings Inc., which failed to make an interest payment on its $335 million senior secured notes.

So far this year, S&P said missed interest payments accounted for six defaults, bankruptcy filings accounted for three defaults, distressed exchanges were responsible for two, and three defaulters were confidential.

Of the remaining defaults, the agency said one resulted from a notice of acceleration by the issuer's lender and the other stemmed from a company being placed under regulatory supervision.

In 2011, 21 issuers defaulted because of missed interest or principal payments, 13 because of bankruptcy filings and 11 because of distressed exchanges, S&P 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.

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