Dynegy debt finds higher ground with no news out; NewPage action dwindles, bonds end mixed

By Stephanie N. Rotondo

Portland, Ore., April 26 - Distressed debt trading continued to lag as investors sought new issues or higher-quality paper, traders reported Tuesday.

Still, the market was mostly firm on the day. But while sources said there were better buyers in the market, sellers continued to be absent.

"There is not as much going on in the secondary market," a trader said. "Everybody is waiting for this flurry of new issues to price."

"Everyone is bracing themselves for the new issues that are coming," said another trader.

Dynegy Inc. saw its bonds gaining ground, through on no fresh news.

Earlier in the month, Dynegy said it had hired Lazard Ltd. and the law firm of White & Case LLP to advise it on debt restructuring and possible asset sales. The hiring came just over a month after the company warned that a bankruptcy filing might be imminent if it could not get its finances in order.

NewPage Corp. - which, like Dynegy, recently said it had hired restructuring advisors - was meantime mixed and trading volume was significantly less than it has been of late.

The company announced the advisors not long after it said that its chief financial officer had resigned to pursue other opportunities.

The CFO's resignation marks the fourth executive departure in less than a year.

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