Prospect News, S&P each report three new defaults for Aug. 4-Aug. 10

By Caroline Salls

Pittsburgh, Aug. 12 – Prospect News reported three new defaults for the period of Aug. 4 through Aug. 10 in the form of Chapter 11 bankruptcy filings made by Rincon Island LP, Last Call Guarantor, LLC and Logan’s Roadhouse, Inc.

So far this year, Prospect News has reported 155 defaults, including 78 Chapter 11 bankruptcy filings, 39 missed interest payments, six each of missed principal payments and missed principal and interest payments, five 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 111 issuers so far in 2016 with the addition of three new defaults during the week. S&P said the default tally is now almost 40% higher than the count at this time in 2015. The last time the global tally was higher at this point in the year was in 2009, when it reached 201 during the financial crisis.

Specifically, S&P lowered its issuer credit ratings on CNG Holdings Inc. to SD from B- after the company repurchased its debt at prices substantially below par and lowered its corporate credit rating on LTR Holdco Inc. to D from CCC+ after the company decided to skip the interest payment on its 8 1/8% senior secured notes due 2019.

S&P said the third default was confidential.

Of the 111 issuers that have defaulted so far in 2016, S&P said 42 defaulted because of missed principal and/or interest payments, 27 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 10 were confidential.

S&P said 74 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 seven in Europe.

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