Prospect News reports five new defaults for July 14-July 20, S&P four

By Caroline Salls

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

Specifically, Prospect News reported Chapter 11 bankruptcy filings made by C&J Energy Services Ltd. and Novation Cos., Inc., Mongolian Mining Corp.’s liquidation and missed interest payments on Trump International Puerto Rico Project’s Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority 2011 series A tourism revenue refunding bonds and Atlas Resource Partners Holdings, LLC/Atlas Resource Finance Corp. (Atlas Resource Partners, LP)’s 7¾% senior notes due 2021.

So far this year, Prospect News has reported 143 defaults, including 71 Chapter 11 bankruptcy filings, 37 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, liquidations, restructurings, 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 104 issuers so far in 2016 with the addition of four defaults since its last report. S&P said the last time the tally was this high at this point in the year was in 2009, when it reached 181 during the financial crisis.

S&P said one of this week’s defaults was confidential.

In addition, S&P lowered its ratings on Atlas Resource Partners to D from CCC- after the missed interest payment.

The ratings agency also lowered its ratings on Transtar Holding Co. to D from CCC+ after the issuer missed an interest payment on its term loan, and lowered its corporate credit rating on Forbes Energy Services Ltd. to D from CCC- following the issuer’s decision to skip its interest payment on its 9% senior notes due 2019 and enter into forbearance agreements with noteholders and credit facility lenders.

Of the 104 issuers that have defaulted so far in 2016, S&P said 39 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, two because of deferred interest payments and one each because of debt acceleration, distressed restructuring, regulatory intervention, judicial reorganization and debt moratorium. The remaining seven were confidential.

S&P said 71 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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