The pain is still being felt in the Corporate World

Corporate Defaults Continue To Move Higher Distressed exchanges have surged this year, with the midyear tally at 51, three times more than all of the distressed exchanges in 2008 and 12 times more than in all of 2007. By Richard Kellerhals, Leveraged Finance News July 20, 2009 Three corporate issuers defaulted last week, bringing the 2009 year-to-date tally to 181 issuers, nearly four times the 46... [more]

Corporate Defaults Continue To Move Higher Distressed exchanges have surged this year, with the midyear tally at 51, three times more than all of the distressed exchanges in 2008 and 12 times more than in all of 2007. By Richard Kellerhals, Leveraged Finance News July 20, 2009 Three corporate issuers defaulted last week, bringing the 2009 year-to-date tally to 181 issuers, nearly four times the 46 defaults at this time last year, according to Standard & Poor’s. Two of the defaults happened with U.S.-based companies, while the other was based in Europe. The two U.S. companies were Euramax International and RathGibson, while the European company was NXP B.V. There have been 130 default issuers in the U.S., nine in Europe, 30 from emerging markets and 12 from either Australia, Canada, Japan, or New Zealand. The increase in defaults reflects a “pronounced decline in economic fundamentals and earnings prospects, as well as the continued credit freeze, effectively halting lending to speculative-grade borrowers,” S&P analysts said. “A large number of defaults likely will be concentrated in the first tow or three quarters of 2009 as a result of these factors, coupled with distressed exchange offers.” Distressed exchanges have surged this year, with the midyear tally at 51, three times more than all of the distressed exchanges in 2008 and 12 times more than in all of 2007. [less]