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Energy default alarms get louder as pain seen lasting into 2016

Default rates among high-yield firms forecast to hit 25% cumulatively in next 2-3 years if oil stays below US$60

Falling oil prices are squeezing access to credit, say four energy firms which owe a combined US$4.8 billion. And everyone from Morgan Stanley to Goldman Sachs Group is predicting that energy prices won't rebound anytime soon.

New York

ELEVEN months of depressed oil prices are threatening to topple more companies in the energy sector.

Four firms owing a combined US$4.8 billion warned this week that they may be at the brink, with Penn Virginia Corp, Paragon Offshore plc, Magnum Hunter Resources Corp and