Prospect News reports no new defaults for June 5 to June 11, S&P one

By Caroline Salls

Pittsburgh, June 13 – Prospect News reported no new defaults for the period of June 5 through June11.

Prospect News reported Veris Gold Corp.’s Companies’ Creditors Arrangement Act and Chapter 15 bankruptcy filings during the week, the court admission of Desarrolladora Homex, SAB de CV’s concurso mercantil proceeding and Codere Finance Luxembourg (SA)’s missed June 15 interest payment on its euro bond maturing in 2015, but all three of those companies previously defaulted.

Prospect News has reported 60 defaults so far for 2014, including 33 Chapter 11 bankruptcy filings, nine missed interest payments, five Chapter 15 bankruptcy filings, three concurso mercantil filings, two of each of CCAA filings and administrations and one of each of defaults, restructurings, missed principal and interest payments, bankruptcy filings, judicial discovery requests and reconstructions.

Meanwhile, Standard & Poor’s reported one new default for the week, raising its year-to-date default count to 25.

S&P said Affinion Group Holdings Inc. completed an offering to exchange debt due 2017 for series A warrants and new warrants to purchase shares of class B common stock. The ratings agency said it views this as a distressed exchange and tantamount to default. Affinion’s corporate credit rating was lowered to SD from CC on June 10.

In addition, S&P said its 2014 default tally was revised to include the Feb. 2 bankruptcy filing of Tuscany International Drilling Inc., which defaulted after its rating was withdrawn at the company’s request.

Of the 25 defaults so far in 2014, S&P said bankruptcy filings accounted for 12, missed interest and/or principal payments for six, distressed exchanges for four and judicial reorganization and a creditor protection filing for one each. The other 2014 default was confidential.

The ratings agency said 15 of this year’s defaults are based in the United States, six in the emerging markets, three in the other developed region, consisting of Australia, Canada, Japan, and New Zealand, and one in Europe.

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