Bon-Ton gets bid for assets, plans liquidation; Community Health down on asset sale

By James McCandless

San Antonio, April 18 – Traders reported a low-volume day in the distressed debt market, with very few names moving significantly.

The Bon-Ton Stores, Inc.’s notes declined after the bankrupt company announced a winning bid for its assets and an impending liquidation plan.

Community Health Systems, Inc.’s issues traded lower as the company announced an agreement to sell one of its hospitals as part of its divestiture plan.

Jones Energy, Inc. traded higher a second day after the company announced the firing of its chief executive officer and president on Tuesday after investor pressure.

Intelsat SA’s notes declined after a few days of upward trading after being made a part of a government project. Frontier Communications Corp.’s issues were mixed as the search continues for a buyer for certain assets. California Resources Corp. and Ensco plc’s notes were up amid a positive day for oil futures.

Bon-Ton, the York, Pa.-based bankrupt department store chain, announced a winning bid for the company’s assets after an auction. The winning bidders were a joint venture comprised of the holders of its 8% second-lien secured notes due 2021 and Great American Group, LLC and Tiger Capital Group, LLC (see related story elsewhere in this issue).

The company filed for bankruptcy in February.

The 8% notes due 2021 cratered 7½ points to close at 10½ bid.

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