Community Health, Quorum among gainers on Obamacare shedding; Bonanza surges on Chapter 11

By Colin Hanner

Chicago, Jan. 4 – Focus in the distressed arena was on healthcare and related sectors on Wednesday as a newly convened Republican-controlled Senate took concrete steps toward dismantling the Affordable Care Act, sending hospital groups and pharmaceuticals surging.

Among those, Community Health Systems, Inc. and Quorum Heath Corp. saw several-point gains, and pharmaceutical companies Valeant Pharmaceuticals International, Inc. and Concordia International Corp. followed suit.

“All the hospitals and all those guys were trending higher,” a trader said.

The sudden spike comes as Republican leaders pledge to repeal the Affordable Care Act – colloquially known as Obamacare – the first order of business in a Republican-controlled Congress and soon-to-be White House.

Outside of the political sphere, Bonanza Creek Energy, Inc. made a pre-package Chapter 11 filing on Wednesday, which sent its distressed securities flying.

Other exploration and production companies followed the upward trend, though moves in Denbury Resources Corp., California Resources Corp. and MEG Energy Corp. were largely due to the improving price of oil futures.

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