Quicksilver rises as company files for bankruptcy; MolyCorp stays weak; Claire’s improves

By Stephanie N. Rotondo

Phoenix, March 18 – The distressed debt market got a boost late in the midweek session after the Federal Reserve released its latest policy statement.

Upon the conclusion of its two-day policy meeting, the Fed opted to take out the word “patient” in terms of when it plans to raise interest rates.

The wording change caused many to speculate that a rate hike could take place as early as June. However, as the central bank noted that economic data – unemployment in particular – had room for improvement, others felt the hike would not occur until September.

Aside from the Fed announcement, several names were reacting to credit-specific news.

Quicksilver Resources Inc., for one, ended with a firmer tone as investors reacted to word of the company’s bankruptcy filing, which was announced late Tuesday.

“Quicksilver’s strategic marketing process has not produced viable options for asset sales or other alternatives to fully address the company’s liquidity and capital structure issues,” chief executive officer Glenn Darden said in a press release published Tuesday.

Among other commodity names, MolyCorp Inc. debt remained weak. The bonds began to decline Monday after an auditor raised concerns about the company’s ability to continue.

In the retail space, Claire’s Stores Inc. was unchanged to better after the company reported earnings. On the opposite side, J. Crew Group Inc. fell after it posted its own quarterly results.

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