Momentive bonds firm ahead of potential bankruptcy; Alpha Natural gains; Claire's weak

By Stephanie N. Rotondo

Phoenix, April 3 - Momentive Performance Materials Inc. continued to be a topical name in the distressed debt arena as investors prepared for a potential bankruptcy filing.

Traders reported that the company's debt was on the rise during Thursday trading.

Meanwhile, Alpha Natural Resources Inc. was again firm. The name, as well as several others in the coal sector, had moved up Wednesday on comments made by BHP Billiton's chief executive regarding increasing demand for metallurgical coal.

After reporting disappointing earnings Wednesday - as well as the exit of its CEO - Claire's Stores Inc.'s paper continued to be depressed, according to traders.

Away from those names, recently topical distressed credits remained the focus.

A trader saw Global Geophysical Services Inc.'s 10½% notes due 2017 at 631/2, which he deemed unchanged. But another trader said the paper was up a point at that same level.

Lehman Brothers' bonds began trading "ex-the fourth distribution," a trader said. As such, the bonds appeared to be trading down over 6 points, though they were simply trading without the dispersion.

The trader pegged the benchmark bonds around 18.

RadioShack Corp.'s 6¾% notes due 2019 were on the weaker side, losing almost 2½ points to finish around 51 5/8, a trader said.

And, NII Holdings Inc.'s 8 7/8% notes due 2019 fell 1½ points to 46 as the 7 5/8% notes due 2021 dropped half a point to 301/2.

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