Sabine issues seen higher after Chapter 11 filing; Walter also files but is little moved

By Paul Deckelman

New York, July 15 – A pair of bankruptcies in the energy and natural resources space were the big news in the distressed-debt market on Wednesday – but only one of them generated significant trading activity.

Market sources said that Sabine Oil & Gas Corp.’s battered bonds firmed a little, with at least one issue seeing sizable volume, following the news of the company’s Chapter 11 filing.

However, they did not see very much trading in the bonds of Walter Energy Inc. after the metallurgical coal producer also filed for protection from its bondholders and other creditors.

Walter’s sector peer Peabody Energy Corp.’s bonds continued to lose ground, as the company announced when it would release its quarterly earnings results.

Traders did not see much happening in the oil and gas space other than the Sabine Oil bankruptcy.

But they did see a fair amount of activity in offshore drillers Transocean Inc. and Vantage Drilling Co.

Nortel Networks Corp.’s notes continued to firm, though on no real news.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.