GT Advanced convertibles plunge on Chapter 11; J.C. Penney paper pops, but RadioShack retreats

By Paul Deckelman

New York, Oct. 6 – GT Advanced Technologies Inc.’s convertible bonds were sharply lower in active dealings on Monday, after the solar and LED equipment company announced that it filed for Chapter 11 bankruptcy protection.

The company’s underlying shares also nosedived on the news.

Elsewhere, RadioShack Corp.’s bonds, which had firmed smartly on Friday on news that the troubled electronics store chain operator had inked a deal to refinance some $590 million of bank debt, were seen giving up most of those gains on Monday, though on only light-volume trading.

Also in the retail sector, Gymboree Corp.’s bonds were better, although there was no fresh news out on the children’s apparel store chain operator that might explain the rise, traders said.

Department store operator J.C. Penney Co. Inc.’s bonds were also seen better on Monday, including its recently priced issue of five-year notes, which has clawed its way back up to par after trading at a discount around the end of last month.

The retailer meets with analysts this week at its big new store in Brooklyn and may shed some light on its plans to close other, less profitable outlets in order to improve earnings.

© 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.