Alpha Natural debt gains, Patriot Coal slips; Caesars boosted by news of Macau asset sale

By Stephanie N. Rotondo

Phoenix, Aug. 12 - The distressed debt market was firming Monday, though traders lamented that it was "another slow summer Monday."

Coal names continued to be busy, but finished the day mixed. Alpha Natural Resources Inc., for instance, was higher on the day, though Patriot Coal Corp. dipped following news of a settlement with its union.

In other coal names, a trader saw Arch Coal Inc.'s notes holding around 791/4.

Caesars Entertainment Corp. was meantime heading upward after the company said it was selling some property in Macau.

Proceeds from the asset sale will be used for capital expenditures and to reduce debt.

Among other distressed credits, a trader said Energy Future Holdings Inc.'s Texas Competitive Electric Holdings Co.'s 15% notes due 2021 were active, but steady around 25 3/8, according to a trader.

Word on the street is that the parent company could be forced into bankruptcy by its senior lenders as soon as November.

Also, a trader said Overseas Shipholding Group Inc.'s 8 1/8% notes due 2018 were "pretty strong," trading around 92½ bid, 93 offered.

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