Aiful pops on restructuring plans; Cooper-Standard gains on reorganization news; Nortel higher

By Stephanie N. Rotondo

Portland, Ore., Dec. 24 - Though the market was rather subdued during the half-day of trading, the big news Thursday was a nearly 20-point pop in Aiful Corp.'s debt.

The gains came as the company said that all of its creditors had agreed to a restructuring plan that would allow the company to delay loan payments. The plan also calls for the reduction of the company's work force.

Meanwhile, Cooper-Standard Holdings Inc. saw its bonds firming, as well. The move was likely caused by news out Wednesday indicating the company was very close to finalizing a reorganization plan.

Nortel Networks Corp.'s bonds were also heading upward, continuing a trend that began Wednesday. The debt was pushed up by news of yet another asset sale.

The market will be closed Friday in observance of Christmas.

Aiful pops on restructuring plan

Japanese consumer lender Aiful saw its bonds jump on news the company's creditors had agreed on an out-of-court financial restructuring.

A trader said the 6% notes due 2011 traded around 70. He last saw them in the low-50s a couple days ago, he said.

Another trader did not see anything in the name, but also noted that he saw a 52 bid "a couple days ago."

The restructuring plan allows Aiful to delay loan repayments of about $3.06 billion and will reduce the number of branches to 675 from 915. The company intends to cut its work force by nearly 50%.

Also in the financial sphere, CIT Group Inc.'s shorter-dated paper, such as the 7% notes due 2013 were "a little better," a trader said, ending with a 93 bid.

Cooper gains on reorganization news

Cooper-Standard Holdings' debt finished about a point better, according to market sources, just one day after the company said it was progressing reorganization talks.

A trader pegged the 8 3/8% notes due 2014 around 26, a level echoed at another desk as well.

In a regulatory filing Wednesday, the Novi, Mich.-based automotive parts supplier said it was discussing a plan with creditors that could include a backstopped rights offering. Cooper is aiming to file a finalized plan by the end of January.

Nortel still heading higher

Nortel Networks' bonds continued to improve during the final trading session of the week, traders reported.

A trader saw the 10¾% notes due 2016 ending around the 69.5 mark. Another called the issue up 2.5 points at 68.75 bid, 69.5 offered.

The bonds had begun to creep up Wednesday as the company announced it had received a stalking-horse bid for its voice-over internet protocol unit from Genband Inc.

Genband's bid was valued at $282 million. Nortel expects to ask U.S. and Canadian bankruptcy courts to begin the bidding process after the first of the year.

The asset sale is just one of many Nortel has undertaken during its time in bankruptcy. Since filing for Chapter 11 protections in January 2009, the Toronto-based company has raised more than $3 billion through asset sales.

YRC converts trade up

YRC Worldwide LLC's convertible debt was among the notables of the otherwise quiet day, traders said.

A trader deemed the 3 3/8% convertible notes due 2023 up 4 points to around the 46 level. Another trader also called the paper up 4 points at 46 bid, 47 offered.

YRC is an Overland Park, Kan.-based trucking company.

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