S&P: Allen Systems missed payment pushes 2014 default count up to 23

By Caroline Salls

Pittsburgh, May 27 - Standard & Poor's year-to-date global corporate default tally increased to 23 issuers after a default by Allen Systems Group Inc., according to a news release.

S&P said Allen missed the May 15 interest payment on its senior secured second-lien notes. The ratings agency subsequently lowered the company's corporate credit rating to D.

Of the 23 defaults so far this year, S&P said 14 are based in the United States, six are based in the emerging markets, two are based in the other developed region, which includes Australia, Canada, Japan and New Zealand, and one is based in Europe.

S&P said bankruptcy filings have been a driving force for global corporate defaults in 2014, accounting for 11 of the 23 defaults so far this year.

Meanwhile, six defaults resulted from missed interest and/or principal payments, three from distressed exchanges, one from a judicial reorganization, one from a creditor protection filing, and one was confidential.

© 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.