Caesars, ATP halt rally, give up gains; Eastman Kodak day's big loser; broad market ends mixed

By Stephanie N. Rotondo

Portland, Ore., Oct. 13 - A somewhat disappointing earnings report from JPMorgan Chase & Co. pushed the distressed bond market down first thing Thursday, but some credits managed to "claw their way back," as one trader put it.

Market mainstay Caesars Entertainment Corp., for example, fell off right out of the gate after gaining ground in the previous session. By the end of business, the bonds had come back, though they were still down from Wednesday levels.

ATP Oil & Gas Corp., another recently battered name that had been rebounding this week, saw its gains shuttered as the bonds dipped a couple of points.

Eastman Kodak Co. was also weaker, losing anywhere from 4 to 6 points on the day. A trader said the declines were based on several news articles, one indicating the company has hired FTI Consulting Inc. and another on widening credit default swaps.

Caesars, ATP give back gains

A trader said Caesars' 10% notes due 2018 were down "right off the bat" Thursday, falling from 69 bid on Wednesday to 671/2.

"So they gave back most of the gains [from the previous session]," a trader said.

By the end of the day, the bonds had managed to climb back up "on pretty heavy volume" to end around 681/2.

Meanwhile, ATP Oil & Gas' 11 7/8% notes due 2015 got "almost as high as 80 this morning, then it backed off a bit," a trader said.

Another trader said the debt was "off a couple" around 77, also on "high volume."

Kodak loses ground

A trader said Eastman Kodak's debt was "all over the map" as negative news was hitting the tape.

The trader said there was a report that Kodak had hired FTI Consulting to help them restructure, adding to the crew that already includes attorneys from Jones Day. He also said the CDS was widening "dramatically."

He called the 7¼% notes due 2013 down 4 to 6 points around the 38 level.

Another trader quoted the issue at 37½ bid, 38½ offered, down from 41 bid, 43 offered on Wednesday.

He also saw the 9¾% notes due 2018 at 74 bid, 76 offered.

Times have been tough on the Rochester, N.Y.-based company. Kodak has attempted to turn itself around for the last decade and has not been able to. Its bonds, as well as its equity, have lost most of their value in the past month or two.

Broad market mixed

Elsewhere in the marketplace, Springleaf Finance Corp.'s 6.90% notes due 2017 "gave a little back," according to a trader.

He called the notes down half a point at 721/2, while the 5 3/8% notes due 2012 slipped to 93¼ bid, 93½ offered, down from 94.

At another desk, a trader said Dex One Corp.'s 12% PIK notes due 2017 gained "a point or so," ending around 221/2.

He noted that the issue is trading flat, or without accrued interest.

NewPage Corp.'s debt was deemed down half a point, the 11 3/8% first-lien notes due 2014 at 73 and the 10% second-lien notes due 2012 at 11.

And a trader saw Hovnanian Enterprises Inc.'s 10 5/8% notes due 2016 rising to 78½ bid, 79½ offered, up from 78 bid, 78½ offered.

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