Prospect News, S&P each report two new defaults for April 26 to May 2

By Caroline Salls

Pittsburgh, May 4 – Prospect News reported two new defaults for the week of April 26 through May 2 in the form of a Chapter 11 bankruptcy filing made by Gibson Brands Inc. and a missed interest payment on K. Hovnanian Enterprises, Inc.’s 8% senior notes due 2019.

So far in 2018, Prospect News has reported 60 defaults, including 36 Chapter 11 bankruptcy filings, eight missed interest payments, three each of bankruptcies and missed principal and interest payments, two each of missed principal payments and distressed exchanges and one each of restructurings, recapitalizations, compulsory liquidations, Companies’ Creditors Arrangement Act filings, schemes of arrangement and debt-for-equity exchanges.

Meanwhile, Standard & Poor’s reported that its 2018 global corporate default tally increased to 33 this week after the defaults of Gibson and a confidential issuer.

Of the defaults this year, S&P said 23 are from the United States, five are from emerging markets, three are from the other developed region, which includes Australia, Canada, Japan and New Zealand, and two are from Europe.

So far this year, S&P said distressed exchanges are the leading reason for defaults, with 11, or 33% of the total, followed by bankruptcy with 10, or 30%. Missed principal and interest payments have accounted for eight defaults, or 24% of the 2018 count, and the remaining four defaults were confidential.

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