Distressed market quiet, energy names better, but Ocean Rig slides on bankruptcy warning

By Paul Deckelman

NewYork, Aug. 12 – The distressed segment of the bond market was quiet on Friday, traders said, in line with a generally relaxed wide junk bond market.

They did see oil and gas credits like Chesapeake Energy Corp., Oasis Petroleum Inc. and MEG Energy Corp. mostly better, helped by a second straight session of surging world crude oil prices. Deep-water drilling contractor Transocean Ltd. bonds were firmer in active dealings.

However, Transocean sector peer Ocean Rig UDW Inc.’s bonds fell after the company warned that current market conditions could force it into a bankruptcy filing.

Another downsider was Canadian drug manufacturer Concordia International Corp., whose notes, bank debt and shares retreated as the company issued downwardly revised revenue and earnings guidance.

Also in the healthcare sector, the traders saw continued weakness in Quorum Health Corp.’s notes, after the hospital operator had reported disappointing quarterly results.

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