Prospect News marks four new defaults for Feb. 16 to Feb. 22, S&P two

By Jim Witters

Wilmington, Del., Feb. 24 - Prospect News reported four new defaults for the week of Feb. 16 to Feb. 22 in the form of Chapter 11 bankruptcy filings by Church Street Health Management, LLC, Wave2Wave Communications, Inc. and a Chapter 15 filing by Hellas Telecommunications (Luxembourg) II SCA.

In addition, Arctic Glacier Income Fund filed to recapitalize under the Companies' Creditors Arrangement Act in Canada and for Chapter 15 in the United States.

Meanwhile, Standard & Poor's reported that two corporate issuers defaulted this week, raising its 2012 global total to 18.

The first default occurred after U.S.-based chemical company Reichhold Industries Inc. failed to make an interest payment on its $195 million senior notes due Aug. 15, 2014.

The second default occurred after ERC Ireland Finance Ltd. missed a coupon payment on its €350 million floating-rate notes due Feb. 15, 2012.

So far this year, missed payments accounted for eight defaults, bankruptcy filings accounted for three, distressed exchanges were responsible for two, and three defaulters were confidential, according to the S&P report.

Of the remaining defaults, one was due to a notice of acceleration by the issuer's lender and the other was due to the company's placement under regulatory supervision.

Prospect News recorded the Reichhold and ERC defaults in the previous week as both occurred on Feb. 15.

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