Prospect News reports five new defaults for Oct. 27-Nov. 2, S&P three

By Caroline Salls

Pittsburgh, Nov. 4 – Prospect News reported five new defaults for the period of Oct. 27 through Nov. 2.

Specifically, Prospect News reported Chapter 11 bankruptcy filings made DirectBuy Holdings, Inc. and Performance Sports Group Ltd. and missed interest payments on Far East Capital Ltd. SA’s 8% senior secured notes due 2018 and 8¾% senior secured notes due 2020, Memorial Production Partners LP’s 7 5/8% senior notes due 2021 and 21st Century Oncology Holdings, Inc.’s 11% senior notes due 2023.

Performance Sports also made a Companies’ Creditors Arrangement Act filing.

In addition, Prospect News reported a bankruptcy filing made by HeSaLight A/S and a missed interest payment on Swiber Holdings Ltd.’s 6¼% series 002 trust certificates due 2017. However, those two companies had previously defaulted.

So far this year, Prospect News has reported 201 defaults, including 92 Chapter 11 bankruptcy filings, 47 missed interest payments, 11 missed principal and interest payments, nine Chapter 15 bankruptcy filings, eight missed principal payments, five each of Companies’ Creditors Arrangement Act filings and Chapter 7 bankruptcy filings, four missed interest payments paid within the grace period, three restructurings, two each of insolvencies, administrations and recapitalizations and one each of bankruptcies, CBCA filings, judicial management requests, schemes of arrangement, plans of arrangement, debt arrangements, missed interest payments paid late, liquidations, mandataire ad hoc appointments, suspensions of payments and homologaciones.

Meanwhile, Standard & Poor’s reported three new defaults for the week, raising its year-to-date global corporate default tally to 142 issuers.

S&P said the default count has already surpassed the total number of defaults recorded in full-year 2015, 113, and is 54% 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 244 during the financial crisis.

S&P lowered its long-term corporate credit rating on Expro Holdings U.K. 3 Ltd. to SD from CCC+ after the issuer exchanged 98% of its $800 million outstanding mezzanine facility for equity.

In addition, the ratings agency lowered its corporate credit rating on Performance Sports Group to D from CCC after the company filed for bankruptcy and lowered its corporate credit rating on 21st Century Oncology to SD from CCC after the missed interest payment.

Of the 142 defaulters so far in 2016, S&P said 53 issuers defaulted because of missed principal/interest/coupon payments, 38 because of distressed exchanges, 17 upon bankruptcy filings, 13 were confidential, seven because of debt exchanges, six upon de facto restructuring, two each because of deferred interest payments and debt moratoriums and one each because of debt acceleration, distressed restructuring, judicial reorganization and regulatory intervention.

S&P said the United States leads with 92, or 65%, of global defaults so far in 2016, followed by 27 from emerging markets, 12 from Europe and 11 from the other developed nations, including Australia, Canada, Japan and New Zealand.

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