Prospect News, S&P each report one new default for Oct. 22 to Oct. 28

By Caroline Salls

Pittsburgh, Oct. 30 – Prospect News reported one new default for the period of Oct. 22 through Oct. 28.

Specifically, Prospect News reported Thane Direct Co.’s Chapter 15 bankruptcy filing.

Prospect News also reported a Chapter 11 bankruptcy filing made by RAAM Global Energy Co. during the week. However, RAAM previously defaulted in connection with an April 1, 2015 missed interest payment.

Prospect News has reported 142 defaults so far in 2015, including 70 Chapter 11 bankruptcy filings, 21 missed interest payments, 10 Companies’ Creditors Arrangement Act filings, eight distressed exchanges, six Chapter 15 bankruptcy filings, four bankruptcy filings, three each of administrations and missed principal payments, two each of Chapter 7 bankruptcy filings, reorganizations, defaults and missed principal and interest payments and one each of Chapter 9 bankruptcy filings, arrangements of debt, judicial recovery requests, missed payments, missed interest payments paid within the grace period, insolvencies, Schutzschirmverfahren in Eigenverwaltung, schemes of arrangement and moratoriums.

Meanwhile, Standard & Poor’s also recorded one new default for the week, raising its year-to-date default tally to 90.

Specifically, S&P said it lowered its corporate credit rating on NYDJ Apparel LLC to SD from B- after the company announced that it had amended its second-lien notes to allow the lender to assign all of its obligations under its credit agreement to Crestview Partners for a cash consideration.

The agency said it considers the exchange as tantamount to default.

S&P said 30 of the 90 defaults so far in 2015 resulted from distressed exchanges, 24 from missed interest or principal payments, 18 from bankruptcy filings, nine from regulatory intervention and one each from a judicial reorganization and a de factor debt-for-equity swap. The remaining seven defaults are confidential.

Of the 90 defaulted issuers so far this year, S&P said 56 issuers are based in the United States, 18 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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