Prospect News reports two new defaults for July 7-July 13, S&P four

By Caroline Salls

Pittsburgh, July 15 – Prospect News reported two new defaults for the period of July 7 through July 13 in the form of Atlas Resource Partners, LP’s missed principal payment on its revolving credit facility and Essar Steel Minnesota LLC’s Chapter 11 bankruptcy filing.

In addition, Prospect News reported Lightstream Resources Ltd.’s Canada Business Corporations Act filing. However, Lightstream previously defaulted in connection with a Jan. 1, 2016 missed principal and interest payment.

So far this year, Prospect News has reported 137 defaults, including 69 Chapter 11 bankruptcy filings, 35 missed interest payments, eight missed principal payments, four each of missed principal and interest payments, Companies’ Creditors Arrangement Act filings and Chapter 15 bankruptcy filings, three Chapter 7 bankruptcy filings, two insolvencies and one each of CBCA filings, 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 100 issuers so far in 2016 with the addition of four defaults since its last report. S&P said this tally is more than 50% higher than the count at this time last year, and the last time the global tally was higher at this point in the year was in 2009, when it reached 177 during the financial crisis.

S&P said it withdrew its ratings on two of the issuers that defaulted since the last report, and one was confidential.

The ratings agency lowered its corporate credit rating on Goodman Networks Inc. to SD from CCC+ after the issuer missed the interest payments on its credit facilities and entered into debt restructuring negotiations with its lenders.

Of the 100 issuers that have defaulted so far in 2016, S&P said 37 defaulted because of missed principal and/or interest payments, 27 because of distressed exchanges, 14 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 six were confidential.

S&P said 67 of the entities that have defaulted so far in 2016 are based in the United States, 18 in emerging markets, nine in the other developed nations, including Australia, Canada, Japan and New Zealand, and six in Europe.

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