Prospect News, S&P each report five new defaults for June 30-July 6

By Caroline Salls

Pittsburgh, July 8 – Prospect News reported five new defaults for the period of June 30 through July 6.

Specifically, Prospect News reported Chapter 11 bankruptcy filings made by China Fishery Group Ltd./Pacific Andes International Ltd. and Total Hockey, Inc., a Chapter 7 bankruptcy filing made by Our Alchemy LLC, Puerto Rico’s missed principal and interest payment and Goodman Networks Inc.’s missed interest payment on its 12 1/8% senior secured notes due 2020.

In addition, Prospect news reported Oro Negro Drilling Pte. Ltd.’s missed principal and interest payment on its 7.5% senior secured callable bonds issue 2014/2019. However, Oro Negro previously defaulted in connection with a Jan. 24, 2016 missed interest payment.

So far this year, Prospect News has reported 134 defaults, including 67 Chapter 11 bankruptcy filings, 36 missed interest payments, seven missed principal payments, four each of missed principal and interest payments, Companies’ Creditors Arrangement Act filings and Chapter 15 bankruptcy filings, three Chapter 7 bankruptcy filings, two insolvencies and one each of administrations, judicial management requests, schemes of arrangement, missed interest payments paid late, missed interest payments paid within the grace period, mandataire ad hoc appointments and suspensions of payments.

Meanwhile, Standard & Poor’s said its global corporate default tally grew to 96 issuers so far in 2016 with the addition of five defaults since its last report. S&P said this tally is more than 50% higher than the count at this time last year, and the last time the global tally was higher at this point in the year was in 2009, when it reached 174 during the financial crisis.

S&P lowered its corporate credit rating on Triangle USA Petroleum Corp. to D from CCC after the issuer made a prearranged Chapter 11 bankruptcy filing, lowered its corporate credit rating on C&J Energy Services Ltd. to D from CCC- after the company missed its interest payments on its credit facilities and lowered the corporate credit rating on Gol Linhas Aereas Inteligentes SA to SD from CC following the completion of a distressed exchange offer that lowered its outstanding bonds amount by $101 million.

S&P also lowered the corporate credit rating on MD America Energy LLC to SD from CCC after the issuer’s announcement that it would redeem its remaining outstanding term loan at 94% from proceeds of an equity infusion and lowered the corporate credit rating on FTS International Inc. to SD from CC following completion of a repurchase of portion of its senior secured notes due 2022 and its long-term loan due 2021 at below par.

Of the 96 issuers that have defaulted so far in 2016, S&P said 36 defaulted because of missed principal and/or interest payments, 27 because of distressed exchanges, 12 after filing for bankruptcy, five each because of debt exchanges and de facto restructurings and one each because of a deferred interest payment, debt acceleration, distressed restructuring, regulatory intervention, judicial reorganization and debt moratorium. The remaining five were confidential.

S&P said 64 of the entities that have defaulted so far in 2016 are based in the United States, 17 in emerging markets, nine in the other developed nations, including Australia, Canada, Japan and New Zealand, and six in Europe.

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