The negative bias of the emerging markets has reached a post-2010 high as political turmoil and sovereign downgrades have cast shade on the credit markets of developing countries.
Momentive Performance Materials won court approval to tap up to $430 million of its $570 million in in debtor-in-possession financing.
Completed distressed and bankruptcy restructuring activity totaled $22 billion in the first quarter of the year, which marks a 6.8% decline from the same period in 2013
Staffing services firm Koosharem Corp., the parent firm of the large-scale Select Family of Staffing Cos., is proposing a $470 million loan offering that will be used to refinance existing debt as part of a pre-packaged Chapter 11 bankruptcy filing.
Caesars Entertainment is on the market with an offering of $675 million in bonds to help finance a $2.2 billion asset sale from one subsidiary to another.
Guitar Center is on the market with plans to issue $940 million in a two-part junk bond deal. The music store operator is also conducting a distressed exchange.
The distressed ratio decreased to its lowest level since May 2011 this month and is lower than the pre-credit crisis long-term average, according to Standard & Poors.
Moodys Investors Service reported Friday that its forecast for the U.S. speculative-grade default rate remains on a downward trend heading into the summer.
Managers of CLOs approaching maturity, who will be unable to wait out the restructuring, will have to sell their holdings of the companys debt and take an immediate hit, according to Moodys Investors Service.
Januarys bipartisan federal budget agreement took some of the sting out of forthcoming mandatory defense spending cuts for contractors like TASC. But a second-half 2013 revenue drain still clouds the forward view of the companys performance, says Moody's.