Caesars bonds active, mostly off amid dueling lawsuits; coal credits climb

By Paul Deckelman

New York, Aug. 5 – Caesars Entertainment Corp.’s bonds were among the most actively traded credits on Tuesday. They were seen mostly lower, in line with a slide in the gaming giant’s shares, amid what could be called “dueling lawsuits” between the company and its creditors, with the latter alleging Caesars fraudulently transferred billions of dollars of assets to a new company to keep them out of the hands of the creditors in the event of a debt restructuring. The company, in turn, alleged that some of its big creditors are trying to panic the markets and push Caesars into a default so they can profit on derivatives trades.

Elsewhere, traders saw a fair amount of activity, mostly to the upside, in the bonds of coal operators such as Arch Coal, Inc., Alpha Natural Resources, Inc. and Peabody Energy Corp.

But 21st Century Oncology Inc.’s bonds were once more on the downside.

In the convertibles market, meanwhile, earnings news was driving a lot of the action, including movements in Cobalt International Energy Inc. and sector peer Endeavour International Corp.

And municipal investors with exposure to Puerto Rico’s bonds were pondering the meaning of the latest economic data to come out of the island commonwealth.

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