Prospect News, S&P each report three new defaults for May 3 to May 9

By Caroline Salls

Pittsburgh, May 11 – Prospect News reported three new defaults for the week of May 3 through May 9.

Specifically, Prospect News reported a Chapter 11 bankruptcy filing made by RMH Franchise Holdings, Inc. and missed interest payments on Reliance Communications Ltd.’s 6˝% senior secured notes due 2020 and Rex Energy Corp.’s 1%/8% senior secured second-lien notes due 2020.

So far in 2018, Prospect News has reported 64 defaults, including 38 Chapter 11 bankruptcy filings, nine missed interest payments, three each of bankruptcies and missed principal and interest payments, two each of missed principal payments and distressed exchanges and one each of restructurings, recapitalizations, compulsory liquidations, Companies’ Creditors Arrangement Act filings, schemes of arrangement, missed coupon payments and debt-for-equity exchanges.

Meanwhile, Standard & Poor’s said in a news release that its 2018 global corporate default tally increased to 36 this week following three defaults.

The release did not specify which issuers defaulted but did say that the three defaults were evenly spread across the oil and gas, banks and media and entertainment sectors.

“The oil and gas sector leads the default tally with eight, or 22% of the total,” S&P’s Diane Vazza said in the release.

So far this year, S&P said distressed exchanges are the primary reason for defaults, with 12 or 33% of the total, followed by bankruptcy and missed principal and interest payments, with 10 defaults or 28% each. The remaining four defaults were confidential.

Of the 36 defaulted issuers so far in 2018, the ratings agency said 23 have come from the United States, seven from emerging markets, and three each from the other developed region, which includes Australia, Canada, Japan and New Zealand and the Europe region.

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