Prospect News, S&P each report one new default for Oct. 26 to Nov. 1

By Caroline Salls

Pittsburgh, Nov. 3 – Prospect News reported one new default for the week of Oct. 26 through Nov. 1 in the form of Cumulus Media Inc.’s missed interest payment on its 7¾% senior notes due 2019.

In addition, Prospect News reported a Chapter 11 bankruptcy filing made by Armstrong Energy, Inc. However, Armstrong had previously defaulted in connection with a June 15 missed interest payment.

So far in 2017, Prospect News has reported 147 defaults, including 80 Chapter 11 bankruptcy filings, 21 missed interest payments, seven missed principal payments, five schemes of arrangement, four each of Chapter 15 bankruptcy filings and distressed exchanges, three recapitalizations, two each of Title III filings, missed principal and interest payments and missed interest payments paid within the grace period and one each of administrations, bankruptcies, Chapter 7 bankruptcy filings, business reorganizations, extrajudicial reorganizations, involuntary Chapter 11 bankruptcy filings, Companies’ Creditors Arrangement Act filings, Canada Business Corporations Act filings, Corporate Insolvency Resolution Process filings, notes-for-equity exchanges, plans of arrangement, liquidations, provisional liquidations, safeguard proceedings, missed maturity payments, insolvencies and civil rehabilitations.

Meanwhile, Standard & Poor’s said in a news release that its 2017 global corporate default tally reached 77 after Brock Holdings II Inc. defaulted.

S&P said the capital goods sector now accounts for six defaults so far in 2017, up from four during the same period in 2016.

By region, S&P said the United States continues to hold the highest share of defaults, with 52, or 67.5% of the total, followed by Europe with 12, or 15.6%, other developed markets, which include Australia, Canada, Japan and New Zealand, with seven, or 9.1% of the total, and emerging markets with six, accounting for 7.8%.

The ratings agency said distressed exchanges have been the predominant reason for default in 2017, accounting for 30 defaults, followed by 21 bankruptcy-related defaults, 16 defaults resulting from missed interest or principal payments, nine confidential defaults and one default stemming from regulatory intervention.

“The global speculative-grade default rate decreased to 2.6% as of Sept. 30, 2017, from 2.8% as of Aug. 31,” S&P’s Diane Vazza said in the release.

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