Distressed debt still firm; Nokia bonds up a touch as HQ sold to raise cash; ATP notes hold in

By Stephanie N. Rotondo

Phoenix, Dec. 4 - Strength remained in the distressed debt market on Tuesday, according to traders.

Certain names - such as Nokia Corp. - were getting bolstered by news. Nokia was reported to have sold its Finland headquarters in an effort to raise cash, as the company struggles to steal market share from other smartphone makers such as Samsung and Apple Inc.

The bonds inched up slightly on the news.

But fresh news was not doing much for ATP Oil & Gas Corp.'s debt. The official committee of equity security holders has asked the bankruptcy court to appoint an examiner, due to a discrepancy in stated reserve values.

However, a trader said the news "didn't do much," and the company's bonds were holding in at levels in the single digits.

Nokia rises as HQ sold

Finnish cellular phone manufacturer Nokia sold its Finland headquarters building for $222 million to Exilion Capital Oy.

Nokia, which will continue on as a tenant in the building, sold the asset in an effort to raise cash.

The company's bonds were slightly higher on the news, traders said.

One trader said the 5 3/8% notes due 2019 had been hovering around 90 and continued to do so. However, he noted that the market was up just a touch, as the debt ended around 901/2.

He also noted that the bonds did trade "a couple times" under the 90 mark before coming back up.

Another market source quoted the issue at 90¼ bid, 90¾ offered, up from 90 bid, 90½ offered previously.

As it attempts to turn itself around and gain back market share, Nokia has been divesting non-core assets. The headquarters building was seen as such an asset.

"We had a comprehensive sales process with both Finnish and foreign investors and we are very pleased with this outcome," said Timo Ihamuotila, Chief financial officer, in a statement.

"As we have said before, owning real estate is not part of Nokia's core business and when good opportunities arise we are willing to exit these types of non-core assets. We are naturally continuing to operate in our head office building on a long-term basis."

ATP unfazed by examiner news

A trader said ATP Oil & Gas' 11 7/8% notes due 2015 were trading in an 81/2-9 context on Tuesday.

Another market source pegged the notes at 9 bid, 9 1/8 offered, up just slightly from 8 7/8 bid, 9 1/8 offered.

Another trader said the name was "quiet, traded around 9 all day.

"The equity committee news didn't do much," he added.

He was referring to news that the company's official committee of equity holders had sought the appointment of an examiner to the case.

"This case cries out for an examiner," the committee said in the motion that was filed with the U.S. Bankruptcy Court for the Southern District of Texas on Monday.

The committee is particularly focused on the company's reserve value report, which was recently valued at "drastically less" than what had previously been stated, the committee said in the filing.

Because of the lower valuation, the only way forward is a fire-sale liquidation to satisfy the demands of the DIP lenders."

Furthermore, the group is alleging that either the DIP lenders have undervalued the company's reserves or that ATP itself is to blame by overvaluing the reserves.

Either way, the committee wants an examiner to look into the situation.

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