Prospect News reports two new defaults for June 8 to June 14, S&P one

By Caroline Salls

Pittsburgh, June 16 – Prospect News reported two new defaults for the week of June 8 through June 14.

Specifically, Prospect News reported GenOn Energy, Inc. and CST Industries Holdings, Inc.’s Chapter 11 bankruptcy filings.

In addition, Prospect News reported CGG SA’s Chapter 11 bankruptcy filing, Chapter 15 bankruptcy filing and safeguard proceedings, as well as Alitalia - Societa Aerea Italiana SpA’s Chapter 15 bankruptcy filing and Gymboree Corp.’s Chapter 11 bankruptcy filing. However, those companies had all previously defaulted.

So far in 2017, Prospect News has reported 98 defaults, including 55 Chapter 11 bankruptcy filings, 14 missed interest payments, seven missed principal payments, three each of distressed exchanges and Chapter 15 bankruptcy filings, two each of recapitalizations and schemes of arrangement and one each of administrations, bankruptcies, Chapter 7 bankruptcy filings, extrajudicial reorganizations, involuntary Chapter 11 bankruptcy filings, notes-for-equity exchanges, missed principal and interest payments, plans of arrangement, liquidations, provisional liquidations, safeguard proceedings and Title III filings.

Meanwhile, Standard & Poor’s reported one new default for the week, recognizing a distressed exchange made by GenOn that resulted in the pre-packaged bankruptcy filing.

The latest default brought S&P’s year-to-date tally to 52.

So far in 2017, the ratings agency said distressed exchanges are the most common reason for default, accounting for 22 defaults globally or 42% of the total, followed by Chapter 11 and Chapter 15 bankruptcy filings, with 15 combined. S&P said 10 defaults resulted from missed interest or principal payments, four were confidential defaults, and one default stemmed from regulatory intervention.

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