Bangkok--11 Jul--Standard & Poor's
The 2011 global corporate default tally remains at 18 after no issuers defaulted this week, said an article published today by Standard & Poor's Global Fixed Income Research, titled "Global Corporate Default Update (June 30 - July 6, 2011) (Premium).
Of the total, 11 issuers were based in the U.S., two each were based in Canada and New Zealand, and one each was based in the Czech Republic, France, and Russia. By comparison, 46 global corporate issuers had defaulted by this time in 2010. Of these defaulters, 33 were U.S.-based issuers, two were European issuers, four were from the emerging markets, and seven were in the other developed region (Australia, Canada, Japan, and New Zealand).
Seven of this year's defaults were due to missed interest or principal payments and six were due to distressed exchanges--both among the top reasons for default in 2010. Of the remaining five, three issuers defaulted after they filed for bankruptcy, another had its banking license revoked by its country's central bank, and the fourth was forced into liquidation as a result of regulatory action.
Of the defaults in 2010, 28 defaults resulted from missed interest or principal payments, 25 resulted from Chapter 11 and foreign bankruptcy filings, 23 from distressed exchanges, three from receiverships, one from regulatory directives, and one from administration.
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