PG&E eyed as creditors dispute restructuring plan; PetSmart better after unit’s earnings

By James McCandless

San Antonio, Dec. 12 – The distressed debt space on Thursday saw more focus around recent newsmakers.

PG&E Corp.’s notes were active but flat as a large creditor publicly stated its opposition to the company’s restructuring plan.

The 6.05% notes due 2034 went unchanged at 106 bid.

In all, $25 million of the notes were on the tape by the close.

On Thursday, one of the San Francisco-based bankrupt electric utility’s largest creditors publicly announced its opposition to the company’s restructuring plan after lobbying the governor to reject the plan.

Elliott Management said that the plan is not in the best interest of stakeholders, customers and California residents, arguing that its $10 billion in planned new debt would lead to its reclassification as a “sub-investment grade, junk-bond issuer.”

Meanwhile, retailer PetSmart Inc.’s issues moved better in the days after the release of subsidiary Chewy.com’s earnings results.

The 8 7/8% senior notes due 2025 gained 1 point to close at 97 bid. The 5 7/8% senior notes due 2025 inched up ¼ point to close at 101 bid.

Chewy.com reported a loss of 20 cents per share, wider than the expected 16 cents per share loss.

The focus fell on sales, which came in above estimates at $1.23 billion.

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