Distressed debt softer amid limited liquidity; commodities mostly weak, oil retreats again

By Stephanie N. Rotondo

Phoenix, March 19 – The distressed debt market waned a bit Thursday, as oil prices were once again in retreat.

However, liquidity was thin across the board, though the focus continued to be on commodities, especially oil and gas.

West Texas Intermediate crude closed down a buck, or 2.24%, to $43.66 a barrel, while Brent crude dropped $1.52, or 2.72%, to $54.39.

Comstock Resources Inc.’s 7¾% notes due 2019 closed at 37¼, “down 5 points from two days ago,” a trader said.

EXCO Resources Inc.’s 7½% notes due 2018 meantime dropped 4½ points to 57½.

“A delayed reaction to oil, maybe?” the trader pondered of the large losses.

Elsewhere in the commodity arena, Arch Coal Inc.’s 7¼% notes due 2021 closed a point lower at 23½.

MolyCorp Inc.’s 10% notes due 2020 – another topical name after the company said its auditor had raised concerns about its ability to continue – saw an over 4½-point bump, ending at 52 1/8.

Away from commodities, Getty Images Inc.’s 7% notes due 2020 put on 3¼ points to finish at 50½.

Claire’s Stores Inc.’s 8 7/8% notes due 2019 closed just under half a point weaker at 62.

Claire’s released its quarterly results late Tuesday and held a conference call on Wednesday.

© 2015 Prospect News.
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