Tupperware notes weaker after lawsuit news; American Airlines eyed in travel space

By James McCandless

San Antonio, Aug. 3 – The distressed debt space started the week with an emphasis on marketing and travel names.

Tupperware Brands Corp.’s notes weakened after news broke that a lawsuit was being filed against the name for potential fraud.

The 4¾% senior notes due 2021 lost ½ point to close at 91½ bid.

After the close on Friday, a law firm announced that it was investigating disclosure statements released by the Orlando, Fla.-based housewares marketer released in March about potential fraud in its operations.

“That might be what is driving down the structure today,” a trader said. “They are already under some pressure to alleviate its maturities wall.”

In its recent second-quarter earnings releases, the company reported earnings per share of 84 cents and revenues of $397.4 million, surpassing analyst predictions.

Meanwhile, American Airlines Group Inc.’s issues varied in direction on the back of positive travel data.

The 5% senior notes due 2022 gained 1 point to close at 58 bid. The 3¾% senior notes due 2025 declined by 1½ points to close at 45½ bid.

On Monday, the airline sector, including the Fort Worth-based airline, saw a positive trend after the government released data showing an increase in the average number of travelers.

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