Denbury notes drop after bankruptcy filing; Bombardier gains as asset sale approved

By James McCandless

San Antonio, July 31 – Distressed debt trading focused Friday on the energy and manufacturing sectors.

Denbury Resources Inc.’s notes dropped after the company implemented a pre-packaged restructuring plan through Chapter 11 bankruptcy.

The 9% notes due 2021 were off 1 point to close at 41½ bid. The 7¾% notes due 2024 shaved off ¼ point to close at 42½ bid.

After the close on Thursday, the Plano, Tex.-based independent oil and gas producer filed its reorganization plan under Chapter 11 bankruptcy, Prospect News reported.

The company said on Wednesday that it had entered into a restructuring support agreement with holders of 100% of revolving credit facility loans, 67.2% of second-lien notes and 70.8% of convertibles that would eliminate $2.1 billion in bond debt.

In bankruptcy court on Friday, Denbury requested approval to obtain $615 million in debtor-in-possession financing.

Elsewhere, manufacturer Bombardier Inc.’s notes gained after European regulators approved the sale of its rail unit.

The 5¾% senior notes due 2022 improved by 2 points to close at 95¼ bid. The 7 7/8% senior notes due 2027 rose 2 points to close at 80 bid.

On Friday morning, news broke that E.U. anti-trust regulators have approved the Montreal-based manufacturer’s $7.4 billion sale of its rail segment to French counterpart Alstom.

© 2015 Prospect News.
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