Prospect News reports two new defaults for Sept. 4-Sept. 10, S&P one

By Caroline Salls

Pittsburgh, Sept. 12 – Prospect News reported two new defaults for the period of Sept. 4 through Sept. 10.

Specifically, Prospect News reported Trump Entertainment Resorts, Inc. and Associated Wholesalers, Inc.’s Chapter 11 bankruptcy filings.

Prospect News has reported 98 defaults so far for 2014, including 50 Chapter 11 bankruptcy filings, 13 missed interest payments, eight Chapter 15 bankruptcy filings, four controlled management requests, two each of concurso mercantil filings, Companies’ Creditors Arrangement Act filings, administrations, missed principal payments, missed principal and interest payments and restructurings and one of each of bankruptcy filings, judicial recovery requests, Chapter 7 bankruptcy filings, missed interest payments paid within the grace period, missed payments, reconstructions, reorganizations, insolvencies, distressed exchanges, defaults and liquidations.

Meanwhile, Standard & Poor’s reported one new default, bringing its year-to-date default count to 40.

S&P said it lowered its corporate credit rating on Endeavour International Corp. to D from CCC and the issue-level ratings on the company’s first-priority and second-priority notes to D from CCC- and to D from CC, respectively, after the company missed interest payments on its 12% first-priority notes due March 2018, 12% second-priority notes due June 2018 and 6.5% convertible senior notes due November 2017.

Accounting for 15 of the 40 defaults so far this year, the ratings agency said missed interest or principal payments have overtaken bankruptcy filings, which account for 13 defaults, as the most common reason for default in 2014.

Of the remaining defaults, seven resulted from distressed exchanges, three were confidential, one resulted from a judicial reorganization and one from a creditor protection filing.

Of the 40 defaulted issuers, S&P said 20 are based in the United States, 12 are based in the emerging markets, five are based in the other developed region, consisting of Australia, Canada, Japan and New Zealand, and three are based in Europe.

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