Prospect News reports four new defaults for March 10-March 16, S&P two

By Caroline Salls

Pittsburgh, March 18 – Prospect News reported four new defaults for the period of March 10 through March 16.

Specifically, Prospect News reported New Source Energy Partners LP’s Chapter 7 bankruptcy filing, an Atlantic Offshore AS missed interest payment and missed interest payments on Peabody Energy Corp.’s 6½% senior notes due September 2020 and 10% senior secured second-lien notes due March 2022 and LINN Energy, LLC’s 7¾% senior notes due February 2021 and 6½% senior notes due September 2021. LINN’s default also covered Berry Petroleum Co., LLC’s senior notes due September 2022.

Prospect News also reported a missed interest payment on Abengoa Finance, SAU’s €500 million of 6% senior notes due 2021 and a missed interest payment on Energy XXI Gulf Coast, Inc.’s 11% senior secured second-lien notes and its 6 7/8% senior notes. However, Abengoa and Energy XXI had both previously defaulted.

So far this year, Prospect News has reported 67 defaults, including 31 missed interest payments, 24 Chapter 11 filings, two each of insolvencies, Chapter 7 bankruptcy filings and missed interest and principal payments and one each of administrations, CCAA filings, Chapter 15 bankruptcy filings, judicial management requests, missed interest payments paid within the grace period and missed principal payments.

Meanwhile, Standard & Poor’s reported two new defaults for the week, raising its 2016 global corporate default tally to 26 issuers.

Specifically, S&P lowered its credit rating on Aspect Software Inc. to D from CCC- after the company announced that it had filed Chapter 11 bankruptcy and entered a prearranged agreement for the financial restructuring and replacement of its credit facilities.

In addition, S&P lowered its corporate credit rating on LINN Energy and its Berry Petroleum subsidiary to D from CCC as a result of the missed interest payments.

S&P said that of the 26 defaulting issuers so far in 2016, nine defaulted because of missed interest payments, eight because of distressed exchanges, five after bankruptcy filings, two because of de facto restructurings and one each because of a regulatory intervention and missed principal and interest payments.

Of the 26 defaulting issuers, 23 are based in the United States, two in emerging markets and one in the other developed nations, which include Australia, Canada, Japan and New Zealand.

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