Prospect News reports two new defaults for March 24-March 30, S&P five

By Caroline Salls

Pittsburgh, April 1 – Prospect News reported two new defaults for the period of March 24 through March 30.

Specifically, Prospect News reported DTEK Finance plc’s missed interest payment on its 7 7/8% senior notes due 2018 and Southcross Holdings LP’s Chapter 11 bankruptcy filing.

Prospect News also reported Havila Shipping ASA’s missed principal and interest payment on its senior bond issue 2011/2017, Abengoa, SA’s Chapter 15 bankruptcy filing and Pacific Exploration & Production Corp.’s missed interest payment on its 5 1/8% senior notes due 2023. However, Havila, Abengoa and Pacific Exploration had all previously defaulted.

So far this year, Prospect News has reported 71 defaults, including 31 missed interest payments, 26 Chapter 11 filings, three missed principal and interest payments, two each of insolvencies, Chapter 7 bankruptcy filings and Chapter 15 bankruptcy filings and one each of administrations, CCAA filings, judicial management requests, missed interest payments paid within the grace period and missed principal payments.

Meanwhile, Standard & Poor’s reported five new defaults for the week, raising its 2016 global corporate default tally to 36 issuers.

The defaults reported by the ratings agency for the week included the following:

• S&P lowered its corporate credit rating on Foresight Energy LP to D from CCC- after the issuer failed to make a $23.6 million interest payment on its 7 7/8% senior notes due 2021 within the grace period;

• S&P lowered its corporate credit rating on Nuverra Environmental Solutions Inc. to SD from CCC- following its offer to exchange new second-lien notes due 2021 for existing 9 7/8% senior notes due 2016;

• S&P lowered its corporate credit rating on Mongolian Mining Corp. to D from CCC- to reflect the firm’s decision to skip its debt payment on an amortizing bank loan;

• S&P lowered its corporate credit rating on PDG Realty SA Empreendimentos e Participacoes to SD from CCC- after it announced a debt restructuring and later missed interest payments on some of its debentures and bank debt; and

• S&P lowered its corporate credit rating on Southcross to D from CC after its bankruptcy filing.

S&P said that of the 36 defaulting issuers so far in 2016, 17 defaulted because of missed principal and/or interest payments, seven because of distressed exchanges, six after bankruptcy filings, three because of distressed debt exchanges, two because of de facto restructurings and one because of a regulatory intervention.

Of the 36 defaulting issuers, 30 are based in the United States, five in emerging markets and one in the other developed nations, which include Australia, Canada, Japan and New Zealand.

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