Prospect News reports four new defaults for April 2-April 8, S&P three

By Caroline Salls

Pittsburgh, April 10 – Prospect News reported four new defaults for the period of April 2 through April 8.

Specifically, Prospect News reported Great Western Minerals Group Ltd.’s missed interest payment on its C$90 million of 8% secured convertible bonds due 2017, EveryWare Global, Inc.’s Chapter 11 bankruptcy filing and Laricina Energy Ltd.’s and Labrador Iron Mines Holdings Ltd.’s Companies’ Creditors Arrangement Act filings.

In addition, Prospect News reported Xinergy Ltd.’s Chapter 11 bankruptcy filing and Shoreline Energy Corp.’s CCAA filing. However, Xinergy had previously defaulted in connection with a missed Nov. 17 interest payment, which was paid within the grace period. Shoreline previously defaulted in connection with a missed Dec. 31 interest payment on its convertible debentures.

Prospect News has reported 53 defaults so far in 2015, including 23 Chapter 11 bankruptcy filings, nine missed interest payments, seven Companies’ Creditors Arrangement Act filings, four Chapter 15 bankruptcy filings, three distressed exchanges, two each of bankruptcy filings and missed principal payments and one each of judicial recovery requests, reorganizations and missed principal and interest payments.

Meanwhile, Standard & Poor’s recorded three defaults for the week, bringing its year-to-day tally to 29 issuers.

Specifically, S&P said it lowered its corporate credit rating on Liberty Tire Recycling Holdco LLC to SD from CC following the company’s announcement that it completed its financial restructuring, resulting in a distressed exchange of the company’s senior unsecured notes.

S&P said it also lowered its corporate credit rating on Venoco Inc. to SD from CCC+ following the company’s completion of a debt exchange offer for its senior unsecured notes and lowered its corporate credit rating on RAAM Global Energy Co. to D from CCC-, reflecting the company’s election not to make the interest payment due April 1 on its 12½% senior secured notes due Oct. 1.

Of the 29 issuers defaulting so far this year, the ratings agency said 16 are based in the United States, seven in emerging markets, four in Europe, and the remaining two in the other developed nations, which includes Australia, Canada, Japan and New Zealand.

S&P said 10 of the 29 defaults so far in 2015 resulted from missed interest or principal payments, seven from distressed exchanges, seven from bankruptcy filings and two from regulatory intervention. The other three defaults are confidential.

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