Prospect News reports one new default for Aug. 27-Sept. 2, S&P four

By Caroline Salls

Pittsburgh, Sept. 4 – Prospect News reported one new default for the period of Aug. 27 through Sept. 2.

Specifically, Prospect News reported a Chapter 7 bankruptcy filing made by Univita Holdings LLC.

Prospect News has reported 118 defaults so far in 2015, including 56 Chapter 11 bankruptcy filings, 17 missed interest payments, 10 Companies’ Creditors Arrangement Act filings, eight distressed exchanges, five Chapter 15 bankruptcy filings, four bankruptcy filings, two each of Chapter 7 bankruptcy filings, reorganizations, defaults and missed principal payments and one each of Chapter 9 bankruptcy filings, administrations, arrangements of debt, judicial recovery requests, missed interest payments paid within the grace period, missed principal and interest payments, missed payments, insolvencies, schemes of arrangement and moratoriums.

Meanwhile, Standard & Poor’s recorded four defaults for the period, raising its year-to-date default tally to 75.

S&P said it lowered its corporate credit rating on SAExploration Holdings Inc. to SD from B- after the issuer closed a deal to exchange a portion of its senior notes for common stock and lowered its corporate credit rating on Halcon Resources Corp. to SD from B- after the issuer entered an agreement to exchange a portion of its senior unsecured notes for new senior secured third-lien notes.

In addition, S&P said it lowered its long-term and short-term counterparty ratings on Investtradebank JSC to R/R from B/B after the Central Bank of Russia assigned the country’s Deposit Insurance Agency to be a temporary manager of the bank to develop a plan for financial rehabilitation.

Finally, the ratings agency said it lowered its corporate credit rating on Goodrich Petroleum Corp. to SD from B- after the company announced it entered an agreement with some of the holders of its senior unsecured notes to exchange $55 million of its 5% convertible notes due 2032 for $27.5 million of new 5% convertible exchange notes due 2032.

Of the 75 defaults so far in 2015, S&P said 23 resulted from distressed exchanges, 22 from missed interest or principal payments, 14 from bankruptcy filings, eight from regulatory intervention and one each from a judicial reorganization and a de facto debt-for-equity swap. The other six defaults are confidential.

S&P said 44 of the 75 issuers that have defaulted so far this year are based in the United States, 15 in emerging markets, 12 in Europe and four in the other developed nations, which include Australia, Canada, Japan and New Zealand.

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