RadioShack up as shareholder plans rescue; Momentive judge denies lender claim, debt dips

By Stephanie N. Rotondo

Phoenix, Aug. 26 – The distressed debt market was firming up on Tuesday, as new economic data pointed to an improving economy.

RadioShack Corp. bonds were pushing higher during the session. The bonds might have been helped by the generally stronger marketplace, but news came out during the day indicating a shareholder was attempting to put together a rescue package for the company that would help it avoid a bankruptcy.

Without new money coming in, RadioShack is expected to run through all of its cash by the end of 2015.

Meanwhile, Momentive Performance Materials Inc. paper was lower as the judge overseeing the company’s bankruptcy case said lenders have no right to a make-whole claim.

A trader noted that the hearing to approve or deny the company’s plan of reorganization was still going on after the market closed.

NII Holdings Inc.’s debt remained active in Tuesday trading.

One trader said there was “a bunch of trades” in the 7 5/8% notes due 2021, which he called up over half a point at 16.

The trader also saw the 10% notes due 2016 nearly a point higher at 29¼, as the 7 7/8% notes due 2019 dipped half a point to 66.

The 11 3/8% notes due 2019 were slightly better, trading at 66¾.

Another trader also placed the 7 5/8% notes at 16.

© 2015 Prospect News.
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