OPEC accord lifts oil sector, California Resources; Valeant Pharma down on asset sale bust

By Colin Hanner

Chicago, Nov. 30 – Bonds in distressed debt-land were flooded with news of the Organization of Petroleum Exporting Countries reaching a supply cut accord on Tuesday, prompting an uptick in oil and oil-related bonds and lifting with it several others whose costs rely on it.

Amid the tug-and-pull speculation that plagued talks for the better parts of two months, OPEC members reached a deal intended to cut the oil supply glut throughout the world.

Among the day’s gainers were California Resources Corp., EP Energy Corp. and MEG Energy Corp., as well as driller Transocean Ltd.

Not feeling the effects of the oil boom was Stone Energy Corp., which continued to reel from Tuesday’s news that its majority shareholder disagreed with the restructuring plan that is set to go into effect on Dec. 9.

Away from oil, Peabody Energy Corp. rebounded after going a “bit sideways” during Tuesday’s trading, and Murray Energy Corp. was down slightly after jumping more than a point a day prior.

A deal to cut its debt by nearly a third fell apart for Valeant Pharmaceuticals International Inc., according to several reports, and the company will instead refocus on reviving its stomach-drug pharmaceutical branch it had intended to sell.

Several of Valeant’s distressed bonds suffered as a result.

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