Energy names firm as oil prices surge; Neiman-Marcus jumps on smaller loss, sales decline

By Paul Deckelman

New York, Oct. 10 – It was back to work Tuesday in the distressed-debt market, following the shut-down of fixed-income activity in the United States on Monday in observance of Columbus Day.

Traders saw good gains in many energy names such as California Resources Corp., MEG Energy Corp. and Denbury Resources Inc., helped by a sharp upturn in world crude oil prices, which had recently been on the slide.

Oil prices improved as Saudi Arabia indicated that it will cut its November crude oil allocations to customers by 560,000 barrels a day.

Away from the energy patch, Neiman Marcus Group’s notes firmed smartly, after the luxury retailer issued fourth-quarter results, including a smaller sales decline than had been seen in recent quarters.

Company executives were also upbeat about the prospects for its online retailing operation.

Separately, it said that it would conserve cash by using debt to make an upcoming interest payment on its PIK (payment in kind) notes.

While Neiman-Marcus was improved, bonds of other retailers such as Rite Aid Corp., J.C. Penney Co., Inc. and Fresh Market, Inc. were lower.

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