ATP Oil & Gas bonds give up gains; Kodak puts off auction hearing again; Bon-Ton sales improve

By Stephanie N. Rotondo

Phoenix, Aug. 30 - Thursday's session saw more of the same in the distressed debt market, as topical names like ATP Oil & Gas Corp. and Eastman Kodak Co. were moving about once again.

There was no news out on ATP Oil & Gas, but the company's bonds lost most of the gains earned in the previous session. Kodak meantime pushed out a court hearing on its patent portfolio auction yet again, causing more weakness in the second-lien notes.

On the upside were Bon-Ton Stores Inc.'s bonds. The debt moved up after the retailer reported decent same-store sales numbers for August late Wednesday.

A trader said the distressed arena held in despite a downward turn for equities.

"The stock market traded off, but we didn't do too much," he said. He also said there was "decent volume" for the day, with just under $1 billion trading in the entire high-yield space.

ATP gives up gains

A trader said ATP Oil & Gas' 11 7/8% notes due 2015 were "down a couple points," on "no real news; they're just lower."

He quoted the issue at 26 bid, 26½ offered.

Another trader pegged the notes at 27 bid, 27½ offered, still weaker on the day.

In other oil names, Petroleos de Venezuela SA's 9¾% notes due 2035 "had a rebound," a trader said, seeing the bonds climb up a point to 771/2.

The 8½% notes due 2017 were meantime up almost half a point around 88.

However, the 5 3/8% notes due 2027 were down over a point to 613/4.

Kodak auction lingers

Eastman Kodak's 9¾% second-lien notes due 2018 were again soft as the company pushed back a court hearing regarding its patent portfolio auction.

"They were definitely a little bit lower," a trader said, seeing the paper at 64 bid, 65 offered.

Another trader placed the notes at 65½ bid, 66 offered, still down from previous levels.

Kodak asked the court overseeing its bankruptcy case to push back the hearing to Sept. 19. The hearing was originally slated for Aug. 20, but was pushed to Aug. 30, given that the company was still in talks with potential bidders.

However, the Rochester, N.Y.-based company then asked the hearing to be moved to Sept. 7 and then further out to Sept. 19.

Bon-Ton rises on sales

York, Pa.-based retailer Bon-Ton reported improved same-store sales for August late Wednesday, giving the company's bonds a boost come Thursday.

A trader saw the 10¼% notes due 2015 around 91, while another said the issue was trading around 92.

A third trader quoted the paper at 92 bid, 93 offered.

For August, revenues climbed 2.1% year over year to $180.8 million.

Same-store sales were up 2.2% for the month.

For the year thus far, however, sales are down marginally. Total revenues dipped les than 1% to $1.42 billion.

Broad market tidbits

Among other distressed issues, a trader saw Clear Channel Communications Inc.'s 10¾% notes due 2016 falling to 63 bid, 63½ offered.

Another trader saw NewPage Corp.'s 11 3/8% first-lien notes due 2014 trading at 681/2, while the 10% subordinated notes due 2012 traded around 4.

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