Prospect News reports six new defaults for April 14-April 20, S&P five

By Caroline Salls

Pittsburgh, April 22 – Prospect News reported six new defaults for the period of April 14 through April 20.

Specifically, Prospect News reported Chapter 11 bankruptcy filings made by Sheehan Pipe Line Construction Co. and Vestis Retail Group, LLC and missed interest payments on CHC Group Ltd./CHC Helicopter SA’s 9¼% senior secured notes due Oct. 15, 2020, Logan’s Roadhouse, Inc.’s 10¾% senior secured notes due 2017 and series 2015-2 senior secured notes due October 2017, Breitburn Energy Partners LP’s 7 7/8% senior notes due 2022 and 8 5/8% senior notes due 2020 and Gulf Keystone Petroleum Ltd.’s $325 million of 6.25% convertible bonds due October 2017 and $250 million of 13% guaranteed notes due April 2017.

In addition, Prospect News reported Goodrich Petroleum Corp. and Energy XXI Ltd.’s Chapter 11 bankruptcy filings and LINN Energy, LLC’s missed interest payment on its 8 5/8% senior notes due April 2020. However, Goodrich, Energy XXI and LINN had all previously defaulted.

So far this year, Prospect News has reported 89 defaults, including 37 missed interest payments, 35 Chapter 11 filings, three each of missed principal payments and missed principal and interest payments, two each of insolvencies, CCAA filings, Chapter 7 bankruptcy filings and Chapter 15 bankruptcy filings and one each of administrations, judicial management requests and missed interest payments paid within the grace period.

Meanwhile, Standard & Poor’s reported five new defaults for the week, raising its global corporate default tally climbed to 51 issuers so far in 2016.

Specifically, S&P said the latest defaults included the following:

• S&P lowered its ratings on Logan’s Roadhouse to D from CCC- and removed the ratings from CreditWatch negative after the missed interest payment;

• S&P lowered its corporate credit rating on Edcon Holdings Ltd. to SD from CCC+ after its nonpayment on interest on its senior secured notes due March 2018 within the 30-day grace period;

• S&P lowered its long-term corporate credit rating on CHC Group to D from CCC to reflect the issuer’s decision to skip an interest payment on its senior secured notes due Oct. 15, 2020;

• S&P lowered its corporate credit rating on Penn Virginia Corp. to D from CCC after the issuers failed to make the interest payment on its senior unsecured notes due 2019; and

• S&P lowered its ratings on Odebrecht Oleo e Gas SA to D from CCC and from CreditWatch negative after the issuer failed to make an interest payment on its $550 million of 7% senior secured perpetual notes following a 30-day grace period.

Of the 51 defaulting issuers so far in 2016, S&P said 26 defaulted because of missed principal and/or interest payments, eight because of distressed exchanges, five after bankruptcy filings, four because of debt exchanges, two because of de facto restructurings and one each because of deferred interest payments, regulatory intervention and a moratorium. The remaining three defaults were confidential.

So far in 2016, S&P said 39 of the defaulting issuers are based in the United States, nine in emerging markets, two in Europe and one in the other developed nations, which includes Australia, Canada, Japan and New Zealand.

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