Whiting notes decline after bankruptcy filing; J.C. Penney down as ratings lowered

By James McCandless

San Antonio, April 1 – As equity markets felt the pressure of continued economic effects of the Covid-19 pandemic, the distressed debt space saw its own losses.

Whiting Petroleum Corp.’s notes declined after the company announced that it had filed for Chapter 11 bankruptcy.

The 6¼% senior notes due 2023 lost 1¾ points to close at 5¼ bid. The 6 5/8% senior notes due 2026 shed 1 point to close at 6 bid.

On Wednesday morning, the Denver-based independent oil and gas producer announced that it has reached an agreement in principle with holders of its 1.25% convertible senior notes due 2020, 5¾% senior notes due 2021, 6¼% senior notes due 2023 and 6 5/8% senior notes due 2026 on the terms of a comprehensive restructuring, Prospect News reported.

Under the proposed agreement, holders of the four series would agree to exchange their notes for 97% of new equity, hoping to reduce the company’s debt load by more than $2.2 billion.

Existing shareholders would receive 3% of the new equity.

Meanwhile, in retail, Plano, Tex.-based J.C. Penney Co., Inc.’s notes moved down after receiving a ratings downgrade a day after furloughing thousands of workers.

The 5 7/8% senior secured notes due 2023 slipped 1 point to close at 35 bid.

© 2015 Prospect News.
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