Prospect News, S&P each report five new defaults for March 16-March 22

By Caroline Salls

Pittsburgh, March 24 – Prospect News reported three new defaults for the week of March 16 through March 22.

Specifically, Prospect News reported Chapter 11 bankruptcy filings made by Ezra Holdings Ltd. and SquareTwo Financial Services Corp. and a Chapter 15 bankruptcy filing made by Mongolian Mining Corp.

So far in 2017, Prospect News has reported 43 defaults, including 28 Chapter 11 bankruptcy filings, six missed interest payments, four missed principal payments, two distressed exchanges and one each of Chapter 7 bankruptcy filings, Chapter 15 bankruptcy filings and recapitalizations.

Meanwhile, Standard & Poor’s reported three new defaults for the week, raising its year-to-date default tally to 19.

S&P lowered its corporate credit rating GulfMark Offshore Inc. to D from CCC-, reflecting its expectation that the company will not make an interest payment within the 30-day-grace period on its 6 3/8% senior unsecured notes due 2022, and that it will likely negotiate with bondholders to restructure its debt.

In addition, S&P lowered its corporate rating on Exco Resources Inc. to SD from CCC+ after the issuer announced that it had closed negotiations to exchange a portion of its second-lien secured debt for a new 1.75-lien term loan with an option to meet interest obligations with cash, common equity or additional 1.75-lien loans.

Also, the ratings agency lowered its corporate credit rating on Neovia Logistics Intermediate Holdings LP to SD from CC following the issuer’s completion of an exchange plan for its senior unsecured payment-in-kind toggle notes due in 2018.

So far in 2017, S&P said defaults resulting from distressed exchanges lead the tally with eight, followed by five Chapter 11 bankruptcy filings, four confidential defaults and two defaults stemming from missed interest and principal payments.

By region, the United States has seen the highest number of defaults with 13 issuers, followed by Europe with four and one each from emerging markets and the other developed nations, which includes Australia, Canada, Japan and New Zealand.

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