S&P marks Hawker Beechcraft default, bringing year-to-date count to 26

By Caroline Salls

Pittsburgh, April 9 - Standard & Poor's recorded one new global default for the week of March 29 to April 4, raising its year-to-date default tally to 26, according to a news release.

Specifically, S&P said Hawker Beechcraft Inc. failed to make the scheduled interest payment on its secured credit facility due on March 30.

The agency said it subsequently lowered the company's corporate credit rating to selective default and the rating on the credit facility to D.

According to the release, Hawker Beechcraft later filed an 8-K with the Securities and Exchange Commission stating that it also did not make interest payments on its unsecured and subordinated notes.

As a result, S&P said it lowered the corporate credit rating to D and the ratings on the affected securities to D.

Of the total 2012 defaulters, 16 were based in the United States, five in the emerging markets, three in Europe and two in the other developed region, which includes Australia, Canada, Japan and New Zealand.

So far this year, S&P said missed payments accounted for 10 defaults, bankruptcy filings accounted for five, distressed exchanges were responsible for four, and four defaulters were confidential.

Of the remaining defaults, one was the result of a notice of acceleration by the issuer's lender, one stemmed from the company's placement under regulatory supervision, and the last resulted from a judicial organization filing. As previously reported, Prospect News reported five new defaults for the week of March 29 to April 4, including Chapter 11 bankruptcy filings made by Solar Millennium, Inc., AFA Foods and Pinnacle Airlines Corp., eircom Ltd.'s examinership and Hawker Beechcraft's missed interest payment on its 8½% senior fixed-rate notes, 8 7/8%/9 5/8% senior PIK election notes and 9¾% senior subordinated notes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.