NII dives as company sees bankruptcy as likely; Caesars inks refinancing deal, bonds mixed

By Stephanie N. Rotondo

Phoenix, Aug. 12 – The distressed debt market was again generally firm on Tuesday, but the positive tone did not include all distressed names.

NII Holdings Inc. bonds came in as much as a dozen points following the company’s earnings release late Monday. In the release, the company said a trip to bankruptcy court was likely.

In a 10-Q filed with the Securities and Exchange Commission, the company said that it has been speaking with interested parties in regard to acquiring some or all of its assets.

The company has also engaged in talks with bondholders.

As of June 30, NII Holdings was not in compliance with several of its indentures, including on Nextel Brazil’s local bank loans.

Meanwhile, Caesars Entertainment Corp. was making headlines around midday, as the casino operator said it had inked a deal to refinance nearly $550 million of debt linked to Caesars Entertainment Operating Co. Inc. On the news, more liquidly traded issues moved up, while other lesser-traded issues declined.

RadioShack Corp. was another name in the news, as analysts from UBS AG said that a turnaround was “highly in doubt.” Investors kind of shrugged off that assessment, however, as the bonds didn’t trade all that actively.

Still, a trader said the name “keeps drifting a little bit lower.”

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