Prospect News reports no new defaults for week to Sept. 26, S&P one

By Caroline Salls

Pittsburgh, Sept. 28 - Prospect News reported no new defaults for the week of Sept. 20 to Sept. 26.

Prospect News did report a distressed exchange made by Aventine Renewable Energy Holdings, Inc. However, Aventine had previously defaulted with a 2009 missed interest payment and Chapter 11 bankruptcy filing.

Prospect News has reported a total of 111 defaults so far in 2012.

Of those, 61 were Chapter 11 filings, nine each stemmed from missed interest payments and 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 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 59.

S&P said it lowered its corporate credit rating on U.S.-based GMX Resources Inc. to SD after the company announced that it has completed an exchange offer for its 5% convertible notes due 2013 and 4.5% convertible notes due 2015.

The ratings agency said it considers the completion of that exchange, at a material discount to par, to be a distressed exchange.

By region, S&P said 32 of the 59 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 11, and nine were confidential.

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

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