Chemtura notes pop post-filing; Realogy debt still active, but unchanged; ATP bonds fluctuate

By Stephanie N. Rotondo

Portland, Ore., June 18 - The distressed debt market remained firm in Friday trading, making that "four solid days in a row of up," a trader said.

"And it feels like there is room to go," he added. "No one is really taking profits."

Given that, he said he expected the rally to continue into Monday's session, barring any major bad news over the weekend.

Chemtura Corp. had some good news, as the company announced it had filed its plan of reorganization and disclosure statement. Post-news, traders saw the bonds jumping as much as 6 points on the day.

Meanwhile, Realogy Corp. remained one of the more active names in the market. Still, there was little price movement and traders wondered if the recent action was due to position jockeying.

ATP Oil & Gas Corp. bonds took a ride during the last trading session, a trend seen over the course of the week. But the debt managed to stage a comeback later in the day, finishing about the same as they had on Thursday.

Chemtura pops post-plan filing

A trader said Chemtura bonds "had a nice pop" after the company filed its reorganization plan and related disclosure statement.

The trader quoted the 6 7/8% notes due 2016 at 114 bid, 116 offered, versus 109¼ bid, 109½ previously.

Another trader said the bonds ran up anywhere from 2 to 6 points following the news of the filing, seeing the 7% notes that were to have matured in 2009 around 112. He meantime placed the 2016 paper at 115 and the 6 7/8% notes due 2026 at 1111/2.

The second trader added that, when combining all of the issues, about $50 million to $60 million in bonds changed hands.

Yet another market source said Chemtura bonds were "up a bunch," as the 2026 notes moved up to 111 from the high-90s. The trader also saw the 2016 paper at 115 and the 7% notes around 112.

The Philadelphia-based chemical maker filed its reorganization plan on Friday. The company said the plan offers "the potential to satisfy all creditors' claims in full, as well as offering value to equity holders," according to a press release.

Chemtura hopes to emerge from bankruptcy protections in the next few months.

Realogy active, but unchanged

Realogy continued to be an active credit, though traders saw little change in price.

A trader said about $20 million to $25 million of the 10½% notes due 2014 traded at 89, about where they closed on Thursday.

"They have been busy of late, but only that issue," the trader said. With no news out on the Parsippany, N.J.-based real estate services company, he speculated that there might be "one big holder trying to lighten up or someone trying to buy more."

Another trader also placed the issue around the 89 mark, noting that the bonds had been 89 bid, 89½ on Thursday.

"So they're not materially different," he said.

The second trader agreed with the first trader, in that it "looks like somebody is unwinding a position." However, "it looks like there's more than on [because of the amount of trading volume] and it also looks like it is going the other way."

ATP bonds fluctuate

ATP Oil & Gas debt continued to fluctuate in Friday trading, according to a trader.

The trader said the 11 7/8% notes due 2015 hit an intraday low of 71 before heading back up to 72½ bid, 73 offered, "kind of where they went out [Thursday]."

Another trader saw the bonds trading around 72, but added, "They went out a touch better than that."

ATP bonds have been volatile of late, as the market deals with BP plc and the Gulf of Mexico oil leak. ATP also has drilling rigs in that area, but at least one of its drills has been halted due to the six-month moratorium on offshore drilling. The moratorium was a direct result from the mid-April explosion at a BP-owned rig.

ATP Oil & Gas is a Houston-based oil and gas company.

ILFC notes active, steady

In the finance and finance-related arena, a trader said American International Group Inc.'s International Lease Finance Corp. paper was "busy today," though he remarked that "the price hasn't changed much, but there seems to be a bump in activity."

The trader saw the 8.175% notes due 2058 trading between 79½ and 81.

The trader also saw some action in First Data Corp.'s 9 7/8% notes due 2015, though he said they "were not as active as they usually are."

The trader quoted the notes at 82 bid, 83 offered, up from 81 bid, 81½ offered the day before.

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