Prospect News, S&P each report two new defaults for April 21-April 27

By Caroline Salls

Pittsburgh, April 29 – Prospect News reported two new defaults for the period of April 21 through April 27.

Specifically, Prospect News reported Chapter 11 bankruptcy filings made by SunEdison, Inc. and Trinity River Resources, LP.

In addition, Prospect News reported Pacific Exploration & Production Corp.’s Companies’ Creditors Arrangement Act filing. However, that company previously defaulted in connection with missed interest payments.

So far this year, Prospect News has reported 92 defaults, including 37 Chapter 11 bankruptcy filings, 36 missed interest payments, four missed principal payments, three CCAA filings, two each of missed principal and interest payments, insolvencies, Chapter 7 bankruptcy filings and Chapter 15 bankruptcy filings and one each of administrations, judicial management requests, missed interest payments paid late and missed interest payments paid within the grace period.

Meanwhile, Standard & Poor’s also reported two new defaults for the week, raising its global corporate default tally to 53 issuers so far in 2016. S&P said this is the highest tally of global defaults by this time in the year since during the financial crisis in 2009, when 67 defaults had been recorded by late April.

So far in April, S&P said there were 16 global corporate defaults, the most in a single month since the same number was recorded in November 2009.

S&P said it lowered its issuer credit rating on Community Choice Financial Inc. to SD from B- after the issuer continued a debt repurchase at substantially discounted prices and lowered its long-term corporate credit rating on Trident Resources Corp. to D from CCC- following the issuer’s announcement that it would skip the April interest payment on the 8¼% senior unsecured notes issued by its Trident Exploration Corp. subsidiary.

Of the 53 defaulting issuers so far in 2016, S&P said 27 defaulted because of missed principal and/or interest payments, eight because of distressed exchanges, five after bankruptcy filings, four because of debt exchanges, three because of de facto restructurings and one each because of deferred interest payments, regulatory intervention and a moratorium. The remaining three defaults were confidential.

So far in 2016, S&P said 40 of the defaulting issuers are based in the United States, nine in emerging markets and two each in Europe and the other developed nations, which includes Australia, Canada, Japan and New Zealand.

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