Prospect News reports five new defaults for Jan. 26-Feb. 1, S&P two

By Caroline Salls

Pittsburgh, Feb. 3 – Prospect News reported five new defaults for the week of Jan. 26 through Feb. 1.

Specifically, Prospect News reported Chapter 11 bankruptcy filings made by Louisiana Heart Hospital, Toisa Ltd. and Azure Midstream Partners, LP, a missed principal payment on Virginia Hills Oil Corp.’s credit facility and a distressed exchange related to Approach Resources Inc.’s 7% senior notes due 2021.

In addition, Prospect News reported a Chapter 11 bankruptcy filing made by Vanguard Natural Resources, LLC and a Catalyst Paper Corp. distressed exchange. However, Vanguard previously defaulted in connection with a missed interest payment, paid within the grace period, and Catalyst previously defaulted as a result of a Companies’ Creditors Arrangement Act filing, a Chapter 15 bankruptcy filing and a missed interest payment.

So far in 2017, Prospect News has reported 17 defaults, including 12 Chapter 11 bankruptcy filings, two each of distressed exchanges and missed interest payments and one missed principal payment.

Meanwhile, Standard & Poor’s said its global corporate default tally rose to five issuers so far in 2017 following addition of defaults this week.

Specifically, the ratings agency lowered its corporate credit rating on Approach Resources to SD from CC after the issuer announced that it had completed an exchange of $130.5 million principal amount of its senior notes due 2021 for $39.2 million new shares of common stock.

In addition, S&P lowered its corporate credit rating on Avanti Communications Group plc to SD from CC following the completion of a distressed exchange of $708 million of the issuer’s senior secured notes due 2019.

Of the five issuers that have defaulted so far this year, S&P said four defaulted because of distressed exchanges, while one defaulted after filing for Chapter 11 bankruptcy protection.

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