At least five major companies have either filed for Chapter 11 bankruptcy protection or defaulted on loans during the week of November 30 – December 4, 2020. These filings and defaults caused credit issuers to lower ratings for two of the companies.
For the third week in a row, the majority of defaults were within the Energy sector.
Sources: S&P, WSJ, Fox News
Callon Petroleum Co., a Houston-based oil and gas exploration and production company, exchanged $217 million of its newly issued second-lien notes for $389 million of its existing unsecured notes at a significantly below-par value. S&P views this as a distressed transaction due to the company’s investors receiving far less than originally agreed upon. As a result, the company’s credit rating was downg...