Prospect News records two new defaults for week; S&P again sees none

By Jennifer Lanning Drey

Savannah, Ga., April 1 - Prospect News reported two new defaults in the week ended March 31 in the form of a Chapter 11 filing by Harry & David Holdings, Inc. and a distressed exchange by Keystone Automotive Operations, Inc.

Additionally, Prospect News reported two prior defaults by Priszm Income Fund that occurred on Dec. 31 in the form of missed interest payments and a missed principal payment.

Meanwhile, Standard & Poor's reported no defaults for the week, leaving its global default tally at three.

The ratings agency said that this marked the sixth straight week without a global corporate default. It is the longest span without a corporate default since June 1997 when seven weeks passed between defaults.

S&P said 29 global corporate issuers had defaulted at this time last year, including 20 U.S.-based issuers, one European issuer, two issuers from the emerging markets and six in the other developed region, which includes Australia, Canada, Japan and New Zealand.

Two of this year's defaults were based in the United States and the other in the Czech Republic.

S&P said all three of this year's defaulters missed interest or principal payments, which was one of the top reasons for default last year. Missed interest or principal payments accounted for 28 defaults in 2010.

Also in 2010, 25 defaults resulted from Chapter 11 and foreign bankruptcy filings, 23 from distressed exchanges, three from receiverships and one each from regulatory directives and administration.

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