Prospect News reports three new defaults for Dec. 11-Dec. 17, S&P one

By Caroline Salls

Pittsburgh, Dec. 19 – Prospect News reported three new defaults for the period of Dec. 11 through Dec. 17.

Specifically, Prospect News reported Caesars Entertainment Corp.’s missed interest payment on its operating company’s 10% second-priority senior secured notes due 2015 and 10% second-priority senior secured notes due 2018, InterOil Exploration & Production ASA’s missed interest payment on its senior callable bond issue 2010/2016 and DLW’s insolvency.

Prospect News has reported 134 defaults so far for 2014, including 66 Chapter 11 bankruptcy filings, 13 missed interest payments, 11 Chapter 15 bankruptcy filings, four each of administrations and controlled management requests, three each of Companies’ Creditors Arrangement Act filings, missed payments, missed principal and interest payments, distressed exchanges and insolvencies, two each of bankruptcy filings, concurso mercantil filings, Chapter 7 bankruptcy filings, missed interest payments paid within the grace period, restructurings, judicial recovery requests and missed principal payments and one each of bankruptcy administrations, defaults, reconstructions, curatorships, receivers appointed, informal reorganizations and liquidations.

Meanwhile, Standard & Poor’s reported one default for the period, raising its year-to-date global corporate default tally to 56 issuers.

S&P said it lowered its corporate credit rating on Caesars Entertainment subsidiary Caesars Entertainment Operating Co. Inc. to D from CCC- following its decision not to make the interest payments on the 10% notes.

Accounting for 20 of the 56 defaults so far this year, S&P said missed interest or principal payments have overtaken bankruptcy filings, which account for 17 defaults, as the most common reason for default in 2014.

Of the remaining defaults, 12 resulted from distressed exchanges, three were confidential, two were because of regulatory regulation, one stemmed from a judicial reorganization, and one was the result of a creditor protection filing.

Of the 56 issuers, 30 are based in the United States, 14 in emerging markets, seven in Europe and five in the other developed nations, including Australia, Canada, Japan and New Zealand.

© 2015 Prospect News.
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