Distressed market light, 'squishy'; Hawker Beechcraft steady; Harry & David debt sees turnover

By Stephanie N. Rotondo

Portland, Ore., Nov. 22 - The distressed debt market was "feeling very squishy," a trader said Monday.

He attributed the "definite softness" to losses sustained in the equity market, on top of the fact that it is a short trading week, due to the upcoming holiday.

"It was a light day, volume-wise," he added.

Still, he - along with another trader - speculated that Tuesday might bring more volume and price movement, especially given that "a ton of numbers" is expected to come Wednesday.

The second trader, however, didn't agree that the market was weaker, instead calling it better.

"There was more stuff up, but a lot of things that were down were down more," he said.

Of Monday's goings-on, Hawker Beechcraft Acquisition Co. LLC's notes traded a bit, but ended the day unchanged. Harry & David Operations Corp.'s debt was also unchanged, but surprised market players by actually trading.

"They trade so infrequently," a trader explained.

In keeping with the market trend, Clear Channel Communications Inc. was unchanged to a tad lighter, though on thin trading.

Hawker hanging on

Hawker Beechcraft Acquisition Co.'s bonds were "unchanged, roughly" according to a trader.

The trader placed the 8½% notes due 2015 around 77 3/8. Another trader agreed with that level, calling it "right where it has been."

According to news reports, the Wichita, Kan.-based aircraft manufacturer's top executive, Bill Boisture, told a group of Wichita Rotarians that the company continued to evaluate ways to increase profits.

"It's a challenging time for our company and the people of our company," he said. "The world economic reset of 2008 is having a deep and profound and lasting impact on our business."

Boisture blamed Hawker's dwindling financial profile on a combination of the economic downturn and foreign competition.

Harry & David get some action

Harry & David's rarely traded 9% notes due 2013 were seen moving about, traders reported.

A trader placed the notes around the 71 mark, adding that the bonds were "kind of right where they traded last."

Another trader said the debt traded between 70¾ and 713/4. "They trade so infrequently," the trader said, noting that the last trace occurred on Nov. 15 "at the same exact place. Before that, they traded a little bit higher, but even that was three or four weeks before."

Harry & David is a Medford, Ore.-based retailer of specialty foods.

Clear Channel steady to softer

A trader said Clear Channel Communications' debt was "kind of unchanged-ish" to "maybe down a quarter."

He saw the 11% notes due 2016 around 76 and the 9¼% notes due 2017 around 1083/4.

However, he added that there was "very little action" in the credit, mimicking the goings-on of the broader marketplace.

There was no news out on the San Antonio-based multimedia company.

Broad market mixed

In the financial space, First Data Corp.'s 10.55% notes were "not busy," a trader said, but they were up about half a point at 891/4.

There was also "no change" in Dean Foods Co.'s 7% notes due 2016, which he pegged at 921/2.

Also, Sbarro Inc. 10 3/8% notes due 2015 were quoted up 3½ points at 48½ bid.

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