Prospect News reports four new defaults for July 5 to July 11, S&P two

By Caroline Salls

Pittsburgh, July 13 - Prospect News reported four new defaults for the week of July 5 through July 11.

The latest defaults recorded by Prospect News included Chapter 11 bankruptcy filings made by Dynegy Inc., Patriot Coal Corp. and Ocala Funding, LLC and a Chapter 7 filing made by Peregrine Financial Group, Inc.

Prospect News also reported IIG Funding Ltd. - International Investment Group KSCC's missed principal payment on its trust certificates (Sukuk al-Mudarabah) due 2012, but IIG had previously defaulted with three missed interest payments in 2010.

Prospect News has reported a total of 90 defaults so far in 2012.

Of those, 52 were Chapter 11 filings, eight each stemmed from missed interest payments and distressed exchanges, five resulted from missed principal payments, four each were from Chapter 15 bankruptcy filings and Companies' Creditors Arrangement Act filings, and one each stemmed from missed principal and interest payments, corporate debt restructuring, examinership, insolvency, administration, notices of default and acceleration, reorganization, Chapter 7 bankruptcy filings and Chapter 9 bankruptcy filings.

Meanwhile, Standard & Poor's reported two new defaults for the week, bringing its year-to-date default tally to 42. S&P said this total is more than double the default tally at this time last year.

On July 6, S&P lowered its corporate credit rating on U.S.-based power producer Dynegy Inc. to D from CC after the company filed for Chapter 11 bankruptcy protection. On July 10, the ratings agency lowered its corporate credit rating on U.S. coal mining company Patriot Coal Corp. to D from CCC after the company filed for Chapter 11 bankruptcy protection.

By region, S&P said 25 of the 42 defaulters were based in the United States, nine were in the emerging markets, five in Europe and three were in the other developed region, which includes Australia, Canada, Japan and New Zealand.

So far this year, the ratings agency said that missed payments accounted for 13 defaults, bankruptcy filings accounted for nine, distressed exchanges accounted for eight and another eight defaulters were confidential.

The remaining four entities defaulted for various other reasons, S&P said in its release.

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