Prospect News reports four new defaults for Nov. 30 to Dec. 6, S&P one

By Caroline Salls

Pittsburgh, Dec. 8 – Prospect News reported four new defaults for the week of Nov. 30 through Dec. 6.

Specifically, Prospect News reported Chapter 11 bankruptcy filings made by Walter Investment Management Corp. and Woodbridge Group of Cos., LLC, an insolvency filing made by SKW Stahl-Metallurgie Holding AG and a missed interest payment on Cobalt International Energy, Inc.’s 2.625% convertible senior notes due 2019.

Prospect News also reported a missed interest payment on Banro Corp.’s 10% secured notes due 2021; however, Banro previously defaulted in connection with the filing of a plan of arrangement on April 7.

So far in 2017, Prospect News has reported 166 defaults, including 91 Chapter 11 bankruptcy filings, 27 missed interest payments, nine missed principal payments, five each of Chapter 15 bankruptcy filings and schemes of arrangement, four distressed exchanges, three recapitalizations, two each of Title III filings, insolvencies, 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, involuntary Chapter 11 bankruptcy filings, Companies’ Creditors Arrangement Act filings, Canada Business Corporations Act filings, Corporate Insolvency Resolution Process filings, notes-for-equity exchanges, liquidations, provisional liquidations, safeguard proceedings, missed maturity payments and civil rehabilitations.

Meanwhile, Standard & Poor’s said its 2017 global corporate default tally rose to 87 this week after Bibby Offshore Holdings Ltd. defaulted.

S&P said the year-to-date default tally for the oil and gas sector is now 21, which is about a third of the tally at the same point in 2016.

According to an S&P news release, the number of oil and gas defaults has declined in the past year largely as a result of stabilizing hydrocarbon prices, combined with efforts from oil and gas companies to reduce costs, improve productivity and reduce debt where appropriate.

“Global oil and gas issuers rated B- or lower have more than $21 billion in outstanding bonds scheduled to mature between 2019 and 2024, $7.8 billion of which is scheduled to mature as soon as 2020,” S&P’s Diane Vazza said in the release.

“Should pricing and credit conditions deteriorate, companies at the lower end of the speculative-grade spectrum will likely face challenges when seeking to refinance debt as their outstanding bonds reach maturity.”

S&P said the United States continues to hold the highest share of defaults, with 57, or 65.52% of the 2017 total, followed by Europe with 14 defaults, or 16.09% of the total, emerging markets with nine, or 10.34% of the total, and other developed markets, including Australia, Canada, Japan and New Zealand, with seven, or 8.05% of the total.

Distressed exchanges have been the predominant reason for default in 2017, accounting for 34 defaults, S&P reported.

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