The global speculative-grade corporate default rate tracked by Moodys Investors Service remained unchanged in August, and is expected to remain low over the next 12 months, according to an agency report issued Monday.
Debt-laden gaming and casino giant Caesars Entertainment said it is in restructuring talks with bondholders. The company said it was clearing the path to start formal discussions with first-lien creditors.
Fitch Ratings on Friday downgraded RadioShacks long-term issue default rating, one day after Standard & Poor's pegged RadioShack's ratings down a notch ollowing the companys admission that it may be forced to file bankruptcy, or liquidate, due to its deteriorating cash position.
Struggling RadioShack is reportedly in talks with a hedge fund on a financial rescue package that would include refinancing existing debt. The plan could help jump-start renewed negotiations with creditors and allow it avoid bankruptcy.
Debt-laden gaming and casino giant Caesars Entertainment is reportedly slated to start restructuring talks with bondholders after Labor Day. Caesars has approximately $20 billion in outstanding debt.
Covenant-lite loans now comprise an all-time high of 58% of the loan issues tracked on the JPMorgan Leveraged Loan Index.
Creditors of bankrupt Momentive Performance Materials who initially said no to getting paid cash in lieu of new debt now want to get cash, but the company says it is too late.
Global default activity has been accelerating and the total default tally for the year is up to 39 issuers, according to Standard & Poors.
Five tranches of bonds issued by Caesars Entertainment are among the biggest losers in weekly secondary trading, according to a weekly report from MarketAxess.
Quicksilver Resources is running out of time to refinance $250 million in high yield bonds or trigger the early repayment of another $800 million in debt. Some creditors aren't sticking around to see what happens.