Midstates issues liquidity warning, bonds drop; Sabine slides, advisors hired; Alliance firms

By Stephanie N. Rotondo

Phoenix, March 16 – Distressed bonds were weaker Monday, dragged down in part by declining oil prices.

Oil was “testing new lows” during the session, according to a trader, as the Federal Reserve indicated that production levels wouldn’t be stemmed in the near term, even as many oil producers have cut their drilling programs.

West Texas Intermediate crude fell $1.06, or 2.36%, to $43.78 a barrel. Brent crude declined $1.23, or 2.25%, to $53.44.

In the oil and gas space, Midstates Petroleum Co. Inc.’s debt was being pressured after the company said it would not have enough cash or credit to deal with its debt obligations in the next year.

That announcement was made in tandem with the company’s latest earnings release.

Meanwhile, Sabine Oil & Gas Corp. was the day’s biggest loser, as the company said it had hired advisors and that it was delaying the filing of its latest quarterly results.

Away from the energy arena, Alliance One International Inc. was trending higher on the day, despite getting downgraded by Standard & Poor’s.

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