Prospect News reports two new defaults for May 21 to May 27, S&P four

By Caroline Salls

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

Specifically, Prospect News reported Joyou AG’s insolvency filing and Lupatech SA’s reorganization filing.

Prospect News has reported 80 defaults so far in 2015, including 33 Chapter 11 bankruptcy filings, 13 missed interest payments, nine Companies’ Creditors Arrangement Act filings, seven distressed exchanges, four Chapter 15 bankruptcy filings, three bankruptcy filings, two each of reorganizations and missed principal payments and one each of judicial recovery requests, missed interest payments paid within the grace period, missed principal and interest payments, missed payments, defaults, insolvencies and schemes of arrangement.

Meanwhile, Standard & Poor’s reported four defaults for the period, raising its year-to-date default tally to 45.

Specifically, S&P said it downgraded Ceagro Agricola Ltda. to D from B after it missed the interest payment on its 2016 senior unsecured debt due May 16 and lowered the corporate credit rating on Midstates Petroleum Co. Inc. to SD from B- following the firm’s announcement that it entered into an agreement to exchange portions of its senior unsecured notes for third-lien secured notes.

The ratings agency said its third default resulted from Lupatech’s reorganization filing, and the fourth default occurred when S&P lowered the issuer credit rating on Warren Resources Inc. to SD from CCC+ after the company completed a debt exchange of about $70 million of its senior unsecured notes for $47 million in first-lien term loans.

Of the 45 issuers that have defaulted so far this year, S&P said 28 are based in the United States, 10 in the emerging markets, five in Europe and two in the other developed nations, including Australia, Canada, Japan and New Zealand.

So far in 2015, S&P said 16 issuers defaulted as a result of missed interest or principal payments, 12 as a result of distressed exchanges, 11 as a result of bankruptcy filings, two as a result of regulatory intervention and one as the result of a judicial reorganization. The other three defaults were confidential.

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