Prospect News, S&P each report one new default for week to Sept. 19

By Caroline Salls

Pittsburgh, Sept. 21 - Prospect News reported one new default for the week of Sept. 13 to Sept. 19 in the form of Banco Cruzeiro de Sul SA's liquidation.

Prospect News also reported the City of Harrisburg, Pa.'s Sept. 15 missed $1.77 million principal and interest payment on its general obligation refunding bonds, series D, of 1997 and missed $1.64 million payment on its general obligation refunding notes, series F, of 1997.

However, the city had previously defaulted, with a March 15 missed interest payment and an October 2011 Chapter 9 bankruptcy filing.

Prospect News has reported a total of 108 defaults so far in 2012.

Of those, 60 were Chapter 11 filings, nine stemmed from missed interest payments, eight came in the form of distressed exchanges, six resulted from missed principal payments, five were from Chapter 15 bankruptcy filings, four resulted from Companies' Creditors Arrangement Act filings, two each were from Chapter 9 bankruptcy filings, administrations, liquidations and missed interest and principal payments, and one stemmed from each of 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 57.

S&P said it lowered its global scale rating on Sao Paulo-based Banco Cruzeiro do Sul SA to D from CC on Sept. 14 after the Central Bank of Brazil ordered the bank's liquidation.

By region, S&P said 30 of the 57 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 17 defaults, missed payments accounted for 15, distressed exchanges for 10, and 10 were confidential.

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

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