Prospect News, S&P each report three new defaults for June 16-June 22

By Caroline Salls

Pittsburgh, June 24 – Prospect News reported three new defaults for the period of June 16 through June 22.

Specifically, Prospect News reported a Chapter 11 bankruptcy filing made by Maxus Energy Corp., a judicial reorganization and Chapter 15 bankruptcy filing made by Oi SA and a Rolta India Ltd. missed interest payment.

So far this year, Prospect News has reported 127 defaults, including 63 Chapter 11 bankruptcy filings, 36 missed interest payments, seven missed principal payments, four each of Companies’ Creditors Arrangement Act filings and Chapter 15 bankruptcy filings, two each of missed principal and interest payments, insolvencies and Chapter 7 bankruptcy filings and one each of administrations, judicial management requests, schemes of arrangement, missed interest payments paid late, missed interest payments paid within the grace period, mandataire ad hoc appointments and suspensions of payments.

Meanwhile, Standard & Poor’s said its global corporate default tally grew to 90 issuers so far in 2016 with the addition of three defaulters since its last report.

Specifically, S&P lowered its corporate credit rating on Lightstream Resources Ltd. to D from CCC- after the issuer did not make the interest payment on its 9 7/8% senior secured notes due June 15, 2019.

S&P lowered its corporate credit and issue-level global scale ratings on Oi to D from CCC- after the company filed a request for judicial reorganization.

Also, S&P lowered its long-term corporate credit rating on Consolidated Minerals Ltd. to SD from CC to reflect a missed coupon payment on the issuer’s €400 million of senior secured notes due 2020 within the grace period that expired on June 15.

Of the 90 issuers that have defaulted so far in 2016, S&P said 35 defaulted because of missed principal and/or interest payments, 24 because of distressed exchanges, 11 after filing for bankruptcy, five each because of debt exchanges and de facto restructurings and one each because of a deferred interest payment, debt acceleration, distressed restructuring, regulatory intervention, judicial reorganization and debt moratorium. The remaining four were confidential.

S&P said 60 of the entities that have defaulted so far in 2016 are based in the United States, 16 in emerging markets, nine in the other developed nations, including Australia, Canada, Japan and New Zealand, and five in Europe.

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