Global defaults have risen to 39 so far this year versus 21 in the same period a year ago with plastics maker Kloeckner Holdings and media company Central European Media Enterprises the latest to default, according to Standard & Poor’s.
While those two companies were based in Luxembourg and Bermuda, US-based corporations accounted for most of the defaults so far this year, with 23 in total.
Barneys New York, DirectBuy Holdings and Reichhold Industries were some of the US-based companies that either missed payments, conducted “distressed exchanges” or filed for bankruptcy in the first half of the year. A distressed exchange consists of a company swapping its debt for other securities or cash that equals less than par, or 100 cents on the dollar.
In Europe, where five companies including Ireland’s ERC Ireland Preferred Equity and Swiss Petroplus Holdings defaulted, the top reasons for default were missed coupon payments and debt restructuring.
Read more: Global corporate defaults nearly double | VCCircle
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