Distressed market 'kind of heavy'; market tone pressures NewPage; Angiotech creeping up

By Stephanie N. Rotondo

Portland, Ore., Nov. 12 - There was "a lot more business than I would have thought," a distressed trader said of Friday's trading session.

Secondary market trading hit about $1 billion, he said, which was decent considering the midweek holiday on Thursday.

Still, the market was "kind of heavy," another trader said.

"It definitely felt subdued all day," said another.

The softness in the market helped NewPage Corp. bonds drop about 2 points from Wednesday levels. The debt was also among the more active credits.

However, Angiotech Pharmaceuticals Inc. managed to shake off the weak market undertone, as its bonds gained ground. The company reported earnings on Tuesday. It is in the midst of facilitating a recapitalization plan that includes a debt-for-equity exchange.

The fight for control of Dynegy Inc. continues to rage on, as yet another market player urged the rejection of Blackstone Group's bid and Carl Icahn sought to provide management with another option. The company's debt ended higher than opening levels, but still down from markets seen earlier in the week.

Elsewhere in the distressed debt arena, Harrah's Entertainment Inc.'s 10% notes due 2018 were "very active," a trader said, and down "about a point" around 891/2.

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