Prospect News reports three new defaults for March 2-9, S&P two

By Sheri Kasprzak

New York, March 11 – Prospect News reported three new defaults for the period of March 2 through March 9.

Specifically, Prospect News reported a Chapter 11 filing by Aspect Software Inc., as well as missed interest payments from the Farms of New Kent Community Development Authority of Virginia on $88,555,000 of series 2006A-C bonds and a missed interest payment from Jaiprakash Associates Ltd. on $150 million of 5.75% convertible bonds due in 2017.

So far this year, Prospect News has reported 62 defaults, including 29 missed interest payments, 22 Chapter 11 filings, two insolvencies, two missed interest and principal payments and one each of administrations, CCAA filings, Chapter 7 bankruptcy filings, Chapter 15 bankruptcy filings, judicial management requests and missed principal payments.

Meanwhile, Standard & Poor’s reported two U.S.-based issuers defaulted, raising its global corporate default tally to 24 issuers so far in 2016.

Specifically, S&P lowered its credit rating on Prospect Holding Co. LLC to SD from CC after the issuer announced the completion of a cash tender offer of $53 million to redeem $88 million par amount of senior notes. Also, S&P lowered its corporate credit rating on Town Sports International Holdings Inc. to SD from B- after the issuer repurchased $30 million in face value of a term loan under an amendment to its credit facility that allows repurchases, at an average price of 37% of par, for about $11 million.

S&P said that of the 24 defaulting issuers so far in 2016, eight defaulted because of missed interest payments, eight due to distressed exchanges, four after bankruptcy filings, two because of de facto restructuring, one due to regulatory intervention and one because of missed principal and interest payments.

Of the 24 defaulting issuers, 21 are based in the U.S., two were in emerging markets and one in the other developed nations, which include Australia, Canada, Japan and New Zealand.

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