Prospect News reports one new default during Nov. 27-Dec. 3, S&P two

By Kali Hays

New York, Dec. 5 – Prospect News reported one new default for the period of Nov. 27 through Dec. 3.

Specifically, Prospect News reported the Chapter 15 bankruptcy filing of Bumi Investment Pte. Ltd.

Prospect News has reported 124 defaults so far for 2014, including 64 Chapter 11 bankruptcy filings, 12 missed interest payments, 10 Chapter 15 bankruptcy filings, four each of administrations and controlled management requests, three each of Companies’ Creditors Arrangement Act filings, missed payments and missed principal and interest payments, two each of bankruptcy filings, concurso mercantil filings, insolvencies, distressed exchanges and missed principal payments and one each of bankruptcy administrations, defaults, judicial recovery requests, Chapter 7 bankruptcy filings, missed interest payments paid within the grace period, reconstructions, reorganizations, restructurings, curatorships and liquidations.

Meanwhile, Standard & Poor’s reported two new defaults for the period, bringing its year-to-date total to 55 issuers.

Specifically, on Nov. 26, S&P lowered its long term credit rating of Molycorp Inc. to SD from CCC following the company’s agreement with its noteholder to exchange $38 million of its convertible notes for $16 million of common stock. S&P qualified the agreement as a distressed exchange.

The second default was OJS Commercial Bank Rost Bank after S&P lowered its counterparty credit to R from CCC+ after a regulatory intervention by the Central Bank of Russia showed the bank’s regulatory risk.

Accounting for 19 of the 55 defaults so far this year, S&P said missed interest or principal payments have overtaken bankruptcy filings, which resulted in 17 defaults, as the most common reason for default in 2014.

Of the remainder, 12 resulted from distressed exchanges, three were confidential, two stemmed from regulatory regulation, one was the result of a judicial reorganization, and one resulted from a creditor protection filing.

Of the 55 issuers, the ratings agency said 29 are based in the United States, 14 in emerging markets, seven in Europe and five in the other developed nations, which include Australia, Canada, Japan and New Zealand.

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