PG&E trades higher as company seeks creditor deal; EQT notes down on impairment charge

By James McCandless

San Antonio, Jan. 14 – The distressed debt market fixed its attention on shifting ground in the utilities and energy spaces.

PG&E Corp.’s notes tracked higher amid news that the company is in negotiations with creditors to reach a compromise restructuring plan.

The 6.05% notes due 2034 added 2 points to close at 111½ bid.

About $65 million of the notes traded by the end of the afternoon.

On Tuesday afternoon, news broke that the San Francisco-based bankrupt electric utility is working toward a compromise restructuring deal with a group of creditors led by PIMCO and Elliott Management.

In exchange for the group shelving an alternative restructuring plan, the company would give them a combination of equity and new debt.

In oil and gas, EQT Corp.’s issues were under pressure after announcing that it would take a noncash impairment charge of at least $1.4 billion for the fourth quarter.

The 3.9% senior notes due 2027 dipped 1 point to close at 88½ bid.

Early Tuesday, the Pittsburgh-based natural gas producer stated in a Securities and Exchange Commission filing that it would take a noncash impairment charge of $1.4 billion to $1.8 billion for the fourth quarter.

The company cited weakness in natural gas prices, potential asset sales and changes to its core strategies.

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