Dean Foods notes plummet on bankruptcy filing; McDermott International hits new low

By Abigail W. Adams

Portland, Me., Nov. 12 – New and suspected bankruptcy filings were the catalyst for trading activity in the distressed debt space on Tuesday with one long suspected filing taking place.

Dean Foods Co.’s 6½% senior notes due 2023 plummeted following news the company had filed for Chapter 11 bankruptcy protection.

McDermott International, Inc.’s 10 5/8% senior notes due 2024 continued their downward spiral with the notes hitting a new low during Tuesday’s session.

Dean Foods’ long anticipated bankruptcy filing came to pass on Tuesday with the restructuring announcement made in lieu of the company’s earnings report.

The food and beverage maker’s 6½% senior notes due 2023 plummeted in active trading following the news.

The notes dropped almost 20 points.

The securities traded as low as 14½ during Tuesday’s session but closed out the day at 20¾, a market source said.

The bounce at the end of the day was most likely a short-squeeze, the source said.

Meanwhile, McDermott’s 10 5/8% senior notes due 2024 hit a new low on Tuesday with the market anticipating a bankruptcy filing.

The notes dropped into the single digits on Tuesday.

They were down another 2 points and stood poised to close the day at 9¾, according to a market source.

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