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COMMENTS

Default, Transition, and Recovery: Halcón Resources' Bankruptcy Raises The Corporate Default Tally To 71


Default, Transition, and Recovery: Halcón Resources' Bankruptcy Raises The Corporate Default Tally To 71

This year's global corporate default tally increased to 71 as of Aug. 7, 2019, after Texas-based oil and gas exploration and production company Halcón Resources Corp. filed for Chapter 11 bankruptcy (see "Halcón Resources Corp. Downgraded To 'D' From 'CC' After Voluntarily Filing For Chapter 11 Bankruptcy," Aug. 7, 2019). Oil and gas defaults total 14 so far this year, up significantly from the 2018 full-year total of just 12 defaults.

Chart 1

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This Week's Observations

  • Of the 14 oil and gas defaulters so far in 2019, 12 are from the U.S., one is from Europe, and one is from Canada.
  • The majority of defaults so far in 2019 are from the U.S., with 69% of all global corporate defaults.
  • For the third year in a row, distressed exchanges lead the default tally with 22, followed by missed interest payments with 21.

Chart 2

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Table 1

We Estimate The U.S. 12-Month-Trailing Speculative-Grade Default Rate To Remain At 2.4%
Region 12-month-trailing speculative-grade default rate (%) 2019 year-to-date default tally 2018 year-to-date default tally 2018 default tally Weakest links tally
U.S. 2.4* 49 33 47 162
Emerging market 1.5 11 11 17 32
Europe 2.0* 8 7 13 29
Other developed 2.6 3 3 5 4
Global 2.1 71 54 82 227
*Trailing-12-month default rates from July 31, 2018-July 31, 2019, are preliminary and subject to change. Year-to-date data as of Aug. 7, 2019. Weakest link data are as of June 24, 2019. Other developed region includes Australia, Canada, Japan, and New Zealand. Default counts may include confidentially rated issuers. Sources: S&P Global Fixed Income Research and S&P Global Market Intelligence’s CreditPro®.

Chart 3

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Chart 4

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Table 2

Halcon Resources Corp. Becomes The Latest On A Long List Of Oil And Gas Defaulters This Year
Date Parent company Country Subsector To From Reason
1/2/2019

Ultra Petroleum Corp

U.S. Oil and gas SD CC Distressed exchange
1/8/2019 Confidential Confidential Telecommunications D CCC Confidential
1/15/2019

API Heat Transfer Co.

U.S. Capital goods SD CCC- Distressed exchange
1/16/2019

Shopko Stores Inc.

U.S. Retail/restaurants D NR Chapter 11
1/16/2019

Pacific Gas and Electric Co. (PG&E Corp.)

U.S. Utilities D CC Missed interest payments
1/18/2019

Ditech Holding Corp.

U.S. Finance companies SD CCC Missed interest payments
1/29/2019

PG&E Corp.

U.S. Utilities D CC Chapter 11
1/30/2019

Eletson Holdings Inc.

Liberia Transportation SD CCC Missed interest payments
1/31/2019

New Look Retail Group Ltd.

U.K. Retail/restaurants SD CC Distressed exchange
2/1/2019

Tsesnabank

Kazakhstan Bank SD B- Distressed exchange/out-of-court restructuring
2/4/2019 Confidential Confidential Homebuilders/real estate companies D CCC- Confidential
2/4/2019

Charlotte Russe Inc.

U.S. Retail/restaurants D CCC- Chapter 11
2/6/2019

TRM Holdings Corp.

U.S. Retail/restaurants D NR Chapter 11
2/7/2019

Fuse Media Inc.

U.S. Media and entertainment D CC Missed interest payments
2/7/2019

Hornbeck Offshore Services Inc.

U.S. Oil and gas SD CC Distressed exchange
2/10/2019

Trident Holding Co. LLC

U.S. Health care D NR Chapter 11
2/19/2019

Payless Inc.

U.S. Retail/restaurants D CCC- Chapter 11
2/21/2019

Novasep Holding S.A.S.

France Health care SD CC Distressed exchange
2/21/2019

One Call Corp. (One Call Care Management Inc.)

U.S. Insurance SD CC Distressed exchange/out-of-court restructuring
2/26/2019

Windstream Holdings Inc.

U.S. Telecommunications D CCC- Chapter 11
3/8/2019

Affinion Group Holdings Inc.

U.S. Media and entertainment SD CCC- Missed interest payments
3/11/2019

CTI Foods Holding Co. LLC

U.S. Consumer products D CCC- Chapter 11
3/15/2019

Imperial Metals Corp.

Canada Metals, mining, and steel SD CCC- Missed interest payments
3/15/2019

Cloud Peak Energy Resources LLC

U.S. Metals, mining, and steel SD CCC Missed interest payments
3/15/2019

PHI Inc.

U.S. Oil and gas D CCC- Chapter 11
3/20/2019

Nyrstar N.V.

Belgium Metals, mining, and steel SD CCC+ Missed interest payments
3/21/2019

Murray Energy Corp.

U.S. Metals, mining, and steel SD CCC+ Distressed exchange
3/28/2019

Evergreen AcqCo1 LP d/b/a Savers

U.S. Retail/restaurants SD CCC Distressed exchange
3/29/2019 Confidential Confidential High technology D CCC- Confidential
4/1/2019

Hexion Inc.

U.S. Chemicals, packaging, and environmental services D CCC Chapter 11
4/1/2019

Southcross Energy Partners L.P.

U.S. Utilities D NR Chapter 11
4/2/2019

Sungard Availability Services Capital Inc.

U.S. High technology D CCC+ Chapter 11
4/2/2019

Monitronics International Inc.

U.S. Media and entertainment SD CC Missed interest payments
4/3/2019

Maxcom Telecomunicaciones S.A.B. de C.V.

Mexico Telecommunications SD CCC+ Distressed exchange
4/3/2019

Bellatrix Exploration Ltd.

Canada Oil and gas D CCC Missed interest payments
4/4/2019

Debenhams PLC

U.K. Retail/restaurants SD CC Distressed exchange
4/4/2019

Fusion Connect Inc.

U.S. Telecommunications D B Missed interest payments
4/5/2019

Curvature Inc.

U.S. High technology SD CCC+ Distressed exchange
4/12/2019

MIE Holdings Corp.

Cayman Islands Oil and gas SD CC Distressed exchange
4/14/2019

Jones Energy Inc.

U.S. Oil and gas D NR Chapter 11
4/15/2019

Crossmark Holdings Inc.

U.S. Consumer products SD CC Missed interest payments
4/16/2019

Bristow Group Inc.

U.S. Oil and gas D CCC- Missed interest payments
5/1/2019 Confidential Confidential Media and entertainment D NR Confidential
5/2/2019

Senvion Holding GmbH (Suzlon Energy Ltd.)

Germany Capital goods SD CC Missed interest payments
5/2/2019

Parq Holdings Ltd. Partnership

Canada Media and entertainment SD CCC Missed interest payments
5/6/2019

Hospital Acquisition LLC (dba LCI Holding Co. LLC)

U.S. Health care D NR Chapter 11
5/9/2019

Preferred Proppants LLC

U.S. Metals, mining, and steel D CCC+ Distressed exchange
5/22/2019

USJ Acucar e Alcool S/A

Brazil Consumer products SD CC Distressed exchange
5/27/2019 Confidential Confidential Chemicals, packaging, and environmental services SD CCC Confidential
5/28/2019

White Star Petroleum Holdings, LLC

U.S. Oil and gas D NR Chapter 11
5/31/2019

Sheridan Investment Partners II LP (Sheridan Holding Co II LLC)

U.S. Finance companies SD CCC- Missed interest payments
5/31/2019

Sheridan Investment Partners I LLC (Sheridan Holding Co I, LLC)

U.S. Finance companies SD CCC- Distressed exchange
6/3/2019 Confidential Confidential Media and entertainment D NR Confidential
6/3/2019

FTD Inc.

U.S. Retail/restaurants D NR Chapter 11
6/4/2019

Legacy Reserves LP

U.S. Oil and gas D CCC- Missed interest payments
6/11/2019

Neiman Marcus Group LLC (The)

U.S. Retail/restaurants SD CC Distressed exchange/ out-of-court restructuring
6/14/2019

New Academy Holding Co. LLC

U.S. Retail/restaurants SD CCC+ Distressed exchange
6/19/2019

Denbury Resources Inc.

U.S. Oil and gas SD CC Distressed exchange
6/21/2019 Confidential Confidential Transportation SD CC Confidential
6/21/2019

Galapagos Holding S.A.

Luxembourg Capital goods SD CC Missed interest payments
6/24/2019 Confidential Confidential Health care D NR Confidential
6/26/2019

Cell C (Pty) Ltd.

South Africa Telecommunications SD CCC- Distressed exchange
6/28/2019

Mood Media Corp.

U.S. Media and entertainment SD CC Distressed exchange
7/2/2019

Weatherford International plc

Ireland Oil and gas D CC Chapter 11
7/3/2019

PES Holdings, LLC

U.S. Oil and gas D B- Missed interest payments
7/11/2019

Stearns Holdings LLC

U.S. Finance companies D CCC+ Chapter 11
7/12/2019 Confidential Confidential Homebuilders/real estate companies SD CC Confidential
7/18/2019

American Energy Permian Holdings LLC

U.S. Oil and gas D CC Missed interest payments
7/23/2019

99 cents only stores LLC

U.S. Retail/restaurants SD CC Distressed exchange
7/23/2019

Avianca Holdings S.A.

Panama Transportation SD CCC+ Missed principal payments
8/7/2019

Halcon Resources Corp.

U.S. Oil and gas SD CC Chapter 11
NR--Not rated. SD--Selective default. Data as of Aug. 7, 2019. Sources: S&P Global Ratings Research and S&P Global Market Intelligence’s CreditPro®.

Default Studies

More analysis and statistics are available in our annual default studies, published on RatingsDirect:

Corporate (financial and nonfinancial)
  • 2018 Annual Taiwan Ratings Corp. Corporate Default And Rating Transition Study
  • 2018 Annual Global Corporate Default And Rating Transition Study
  • 2018 Annual U.S. Corporate Default And Rating Transition Study
  • 2018 Annual Asia Corporate Default And Rating Transition Study
  • Japanese Issuer Credit Rating Transitions Study 2018
  • 2017 Annual Australia And New Zealand Corporate Default Study And Rating Transitions
  • 2017 Inaugural Infrastructure Default Study And Rating Transitions
  • 2017 Mexican National-Scale Corporate And Public Finance Default Study And Rating Transitions
  • 2017 Annual Emerging Markets Corporate Default Study And Rating Transitions
  • 2017 Annual European Corporate Default Study And Rating Transitions
  • 2017 Annual Canadian Corporate Default Study And Rating Transitions
  • 2017 Inaugural Nordic Default Study And Rating Transitions
  • 2017 Annual Brazil Corporate Default Study And Rating Transitions
  • 2017 Annual Greater China Corporate Default Study And Rating Transitions
  • 2017 Annual Global Financial Services Default Study And Rating Transitions
  • 2017 Annual Latin American Corporate Default Study And Rating Transitions
Structured finance
  • 2018 Annual Global Leveraged Loan CLO Default And Rating Transition Study
  • 2018 Annual Taiwan Structured Finance Default Study And Rating Transitions
  • 2018 Annual Global Structured Finance Default Study And Rating Transitions
  • 2018 Annual Japanese Structured Finance Default Study And Rating Transitions
  • 2017 Annual Mexican Structured Finance Default Study And Rating Transitions
  • 2017 Annual European Structured Finance Default Study And Rating Transitions
U.S. public finance
  • 2018 Annual U.S. Public Finance Default Study And Rating Transitions
  • 2017 Annual U.S. Public Finance Not-For-Profit Health Care Default Study And Rating Transitions
  • 2017 U.S. Public Finance Utility Default Study And Rating Transitions
  • 2017 U.S. Public Finance Transportation Default Study And Rating Transitions
  • 2017 Annual U.S. Public Finance Housing Default Study And Rating Transitions
  • 2017 Annual U.S. Public Finance Charter School Default Study And Rating Transitions
  • 2017 Annual U.S. Public Finance Higher Education And Nonprofit Organization Default Study And Rating Transitions
Sovereign and international public finance
  • 2018 Annual Sovereign Default And Rating Transition Study
  • 2017 Annual International Public Finance Default Study And Rating Transitions

This report does not constitute a rating action.

Credit Markets Research:Nicole Serino, Associate, New York + 1 (212) 438 1396;
nicole.serino@spglobal.com
Sudeep K Kesh, Senior Director, New York (1) 212-438-7982;
sudeep.kesh@spglobal.com
Research Contributor:Lyndon Fernandes, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

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