Prospect News reports three new defaults for Aug. 11-Aug. 17, S&P two

By Caroline Salls

Pittsburgh, Aug. 19 – Prospect News reported three new defaults for the period of Aug. 11 through Aug. 17 in the form of a Chapter 15 bankruptcy filing made by Altos Hornos de Mexico, SAB de CV and missed interest payments on Basic Energy Services, Inc.’s 7¾% senior notes due 2019 and Tervita Corp.’s 10 7/8% senior notes due 2018.

So far this year, Prospect News has reported 158 defaults, including 78 Chapter 11 bankruptcy filings, 41 missed interest payments, six each of missed principal payments, missed principal and interest payments and Chapter 15 bankruptcy filings, four Companies’ Creditors Arrangement Act filings, three Chapter 7 bankruptcy filings, two each of insolvencies and missed interest payments paid within the grace period and one each of CBCA filings, administrations, judicial management requests, schemes of arrangement, restructurings, missed interest payments paid late, liquidations, mandataire ad hoc appointments, homologacions and suspensions of payments.

Meanwhile, Standard & Poor’s global corporate default tally grew to 113 issuers so far in 2016 with the addition of two new defaults during the week. S&P said the default tally now equals the total number of defaults recorded in the entire year of 2015 and is 57% higher than the count at this point in 2015.

Specifically, S&P lowered its corporate credit rating on Vanguard Natural Resources LLC to SD from CC after the company completed an exchange of its senior unsecured notes due in 2020 with secured second-lien notes due 2023 at less than par.

S&P said the second default was confidential.

Of the 113 issuers that have defaulted so far in 2016, S&P said 42 defaulted because of missed principal and/or interest payments, 28 because of distressed exchanges, 14 after filing for bankruptcy, six because of de facto restructurings, five because of debt exchanges, two because of deferred interest payments and one each because of debt acceleration, distressed restructuring, regulatory intervention, judicial reorganization and debt moratorium. The remaining 11 were confidential.

S&P said 75 of the entities that have defaulted so far in 2016 are based in the United States, 21 in emerging markets, nine in the other developed nations, including Australia, Canada, Japan and New Zealand, and eight in Europe.

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