PG&E notes down after restructuring news; U.S. Steel mixed on preliminary Q3 results

By James McCandless

San Antonio, Oct. 10 – The distressed debt market was awash with news, driving trading in several sectors.

PG&E Corp.’s notes moved down after news broke that a bankruptcy judge had stripped the company of its exclusive right to put forward a restructuring plan.

The 6.05% notes due 2034, which pushed up to 116¼ bid in Wednesday after-hours trading, fell 2¼ points to close at 114 bid.

After the Wednesday close, a judge ruled that the San Francisco-based bankrupt electric utility would no longer have the exclusive right to propose a restructuring plan.

Meanwhile, United States Steel Corp.’s issues traded flat to lower following the company’s release of its preliminary third-quarter earnings report.

The 6 7/8% senior notes due 2025 dropped 1½ points to close at 86 bid. The 6¼% senior notes due 2026 held level at 80½ bid.

Early Thursday, the Pittsburgh-based steel manufacturer released preliminary third-quarter earnings results.

The company said that it expects to report a loss of 20 to 26 cents per share, better than analyst estimates of a 32 cents per share loss.

In a statement, the company cited stronger shipments and better-than-expected manufacturing performance in its key segments.

“They’ve seen a bit of a crunch in the last few weeks so they’re trying to drum up positivity,” a trader said.

© 2015 Prospect News.
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