Prospect News marks eight new defaults for Feb. 11-Feb. 17, S&P three

By Caroline Salls

Pittsburgh, Feb. 19 – Prospect News reported eight new defaults for the period of Feb. 11 through Feb. 17.

Specifically, Prospect News reported Venoco Inc.’s missed interest payment on its 8 7/8% senior notes, SandRidge Energy, Inc.’s missed interest payment on its 7½% senior notes due 2023 and its 7.5% senior convertible notes due 2023, Foresight Energy LP’s missed interest payment on its 7 7/8% senior notes due 2021, UCI Holdings Ltd.’s missed interest payment on its 8 5/8% senior secured notes, Energy XXI’s missed interest payment on EPL Oil and Gas, Inc.’s 8¼% senior notes due 2018 and Paragon Shipping Inc.’s missed interest payment on its 8 3/8% senior notes due 2021.

Among other new defaults reported during the week by Prospect News were German Pellets GmbH’s insolvency and Sundevil Power Holdings, LLC’s Chapter 11 bankruptcy filing.

In addition, Prospect News reported Argent Energy Trust’s Companies’ Creditors Arrangement Act filing and Paragon Offshore plc’s Chapter 11 bankruptcy filing. However, Argent and Paragon had previously defaulted.

Prospect News has reported 47 defaults so far for 2016, including 20 missed interest payments, 17 Chapter 11 bankruptcy filings, two insolvencies and one each of administrations, CCAA filings, Chapter 7 bankruptcy filings, involuntary Chapter 7 bankruptcy filings, Chapter 15 bankruptcy filings, judicial management requests, missed principal and interest payments and missed principal payments.

Meanwhile, Standard & Poor’s reported three new defaults for the week, increasing its year-to-date default tally to 19.

Specifically, S&P lowered its corporate credit and issue-level ratings on Paragon Offshore to D from CC after the company’s bankruptcy filing, lowered its corporate credit ratings on Energy XXI to D from CCC+ in light of its missed interest payment and lowered the corporate credit ratings on Venoco and its parent Denver Parent Co. to D from CCC+ following Venoco’s missed interest payment.

Of the 19 defaulting issuers so far in 2016, S&P said seven defaulted because of missed interest payments, five as a result of distressed exchanges, four after bankruptcy filings, two on de facto restructurings and one because of a missed principal and interest payments.

S&P said 17 of the 19 defaulted issuers are based in the United States, one is in the emerging markets, and one is in the other developed region, which includes Australia, Canada, Japan and New Zealand.

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