PG&E better after bankruptcy court ruling; Mallinckrodt notes rise in pharma space

By James McCandless

San Antonio, Nov. 27 – The distressed debt space saw muted activity on the day before Thanksgiving with a focus on utilities and pharma names.

PG&E Corp.’s notes saw better levels after a bankruptcy court judge said he is likely to approve the company’s $11 billion insurance settlement.

The 6.05% notes due 2034 improved by ¾ point to close at 106 bid.

On Tuesday, the judge in the San Francisco-based electric utility’s bankruptcy case effectively cleared the way for the company to reach a conclusion in its restructuring plan.

Judge Dennis Montali said that the company’s proposed $11 billion insurance settlement would not be a detriment to ongoing mediation between parties negotiating on a restructuring plan.

Meanwhile, in pharma, Mallinckrodt plc’s 4¾% senior notes due 2023 rose ¾ point to close at 36 bid. The 4 7/8% senior notes due 2020 gained ¼ point to close at 69 bid.

The Staines-upon-Thames, England-based drugmaker’s structure continued to see positive trends on Wednesday despite the previous day’s news that it and five other pharmaceutical names are the subjects of a criminal probe opened by the federal government.

The investigation is to determine whether the companies knowingly contributed to the opioid epidemic by not restricting the flow of opioid medications.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.