Alta Mesa drops on bankruptcy; Mallinckrodt notes gain after second rating downgrade

By James McCandless

San Antonio, Sept. 12 – The distressed space saw a spike in volume during the Thursday session, with mostly positive movement.

Alta Mesa Resources, Inc.’s notes dropped after the company and its subsidiaries filed for bankruptcy.

The 7 7/8% senior notes due 2024 lost 3½ points to close at 15½ bid.

The Houston-based independent oil and gas producer announced on Thursday that it and many of its subsidiaries had filed for Chapter 11 bankruptcy.

The company’s midstream platform, Kingfisher Midstream, LLC and its subsidiaries, are not part of the Chapter 11 reorganization process, Prospect News reported.

The company said in SEC filings that the Chapter 11 process was the best way to reorganize its balance sheet quickly and sell assets.

Meanwhile, in the pharma space, Mallinckrodt plc’s issues gained despite receiving a second ratings downgrade this week.

The 4 7/8% senior notes due 2020 added 1¼ points to close at 73¾ bid. The 5¾% senior notes due 2022 gained 1½ points to close at 42 bid.

On Thursday, S&P Global Ratings issued a downgrade for the Staines-upon-Thames, England-based drug producer.

Citing the company’s limited ability to access capital markets and uncertain exposure to opioid-related lawsuits, the agency lowered its long-term issuer rating and affirmed a negative outlook.

© 2015 Prospect News.
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