Prospect News reports five new defaults for Sept. 8-Sept. 15, S&P four

By Susanna Moon

Chicago, Sept. 16 – Prospect News reported five new defaults for the period of Sept. 8 through Sept. 15.

Specifically, Prospect News reported Chapter 11 bankruptcy filings by Battalion Resources, LLC, Golfsmith International Holdings, Inc., Delivery Agent, Inc. and Noble Environmental Power, LLC.

Prospect News also reported missed interest payments by Claire’s Stores, Inc. on its 6 1/8% senior secured first-lien notes due 2019, its 9% senior secured first-lien notes due 2019 and its 8 7/8% senior secured second-lien notes due 2019.

In addition, Prospect News reported a missed interest payment by Tervita Corp. during the week, but Tervita had previously defaulted.

Meanwhile, Standard & Poor’s said the number of corporate defaults globally rose to 122 to date in 2016 after defaults this week from four U.S.-based issuers, with two from the oil and gas sector and two from transportation.

The total number includes an issuer that defaulted after S&P withdrew its rating on the company at the issuer’s request, according to a company press release.

The energy sector continues to lead the pack with the most “concentration” of defaults this year with 69 issuers, or 57%, of the total defaults, S&P said.

The sector is dominated by U.S. issuers with 77%, or 53, defaults. As of July 31, the global speculative-grade default rate for the energy and natural resources sector was 17.2%, which was more than seven times higher than the rate of all other sectors, S&P noted.

The U.S. tops the list with 83, or 68%, of the defaults, so far this year, with the remaining 21 from emerging markets and nine each in Europe and the other developed nations such as Australia, Canada, Japan and New Zealand.

In 2015, 79 issuers defaulted during this period; 47 were based in the U.S., 16 in emerging markets, 12 in Europe and four in the other developed countries.

The default count is 54% higher than compared with the same period in 2015 and has exceeded the total number recorded in the full year of 2015 with 113 defaults. S&P noted that the number of defaults had reached its peak of 218 during the financial crisis in 2009.

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