Avaya up on DIP financing; Neiman Marcus recoups Monday loss; E&P steady; pharma mixed

By Colin Hanner

Chicago, Jan. 24 – One distressed company continued its rebound on Tuesday following approval of debtor-in-possession financing the previous day, a trader said, and, for the most part, normal activity resumed on the session with no truly big movers.

Avaya, Inc. followed an upswing from Monday’s session with an increase in two sets of distressed securities off court approval that the company will be able to use $425 million of a proposed $725 million DIP financing facility on an interim basis.

“There were loads and loads of trades there,” a trader said.

Neiman Marcus Group, Inc. pared the previous session’s losses with gains that all but erased the declines, a market source said, a shimmer of rebounding for the traditional retailer that has been the subject of falling sessions in recent weeks.

In the exploration and production sector, California Resources Corp. saw “lots of trades” on a modest bump in its most popular distressed bonds.

Offshore driller Pacific Drilling reversed gains from Monday, and Noble Corp. showed slight gains on Tuesday following a contract with Saudi Aramco.

Community Health Systems, Inc. was active though unchanged, a trader said, Valeant Pharmaceuticals International, Inc. was down “a pinch,” and Concordia International Corp. was up, albeit slightly.

Though activity remains low, Peabody Energy Corp. continued to receive some shouts from the sidelines with an impending restructuring deal.

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