Prospect News reports three new defaults for Jan. 21-Jan. 27, S&P one

By Caroline Salls

Pittsburgh, Jan. 29 – Prospect News reported three new defaults for the period of Jan. 21 through Jan. 27.

Specifically, Prospect News reported a Chapter 11 bankruptcy filing made by Verso Corp., Oro Negro Drilling Pte. Ltd.’s missed interest payment on its senior secured callable bonds issue 2014/2019 and Goldenport Holdings Inc.’s missed interest payment on its loan facilities.

In addition, Prospect News reported missed principal and interest payments on Argent Energy Trust’s credit facility, Empresas ICA SAB de CV’s missed interest payment on its 8 3/8% senior notes due 2017 and insolvency proceedings filed in Brazil by several of Abengoa, SA’s indirect subsidiaries. However, these three companies had previously defaulted.

Prospect News has reported 27 defaults so far for 2016, including 12 missed interest payments, six Chapter 11 bankruptcy filings, three missed principal and interest payments and one each of administrations, insolvencies, Chapter 7 bankruptcy filings, Chapter 15 bankruptcy filings, judicial management requests and missed principal payments.

Meanwhile, Standard & Poor’s reported one new default for the week, increasing its year-to-date default tally to six.

Specifically, S&P said it lowered its corporate credit ratings on Verso to D from CCC- after subsidiaries Verso Paper Holdings LLC and Verso Paper Finance Holdings LLC announced they would exercise a grace period for their January interest payments. S&P also lowered the issue-level ratings on the subsidiaries’ senior secured debt to D from CC after the company filed for Chapter 11 bankruptcy.

Of the six defaulting issuers so far in 2016, S&P said five defaulted because of missed interest payments and one because of missed principal and interest payments.

S&P said four of the five 2016 defaulted issuers are based in the United States, one is in the emerging markets, and one is in the other developed region, which includes Australia, Canada, Japan and New Zealand.

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