Valeant Pharma seeks to decrease debt load; oil up with promising agreement on horizon

By Colin Hanner

Chicago, Nov. 15 – Movement in distressed debt-land on Tuesday had a “better tone,” as one trader said, crediting the upticks to rebounding oil futures for the first time since Nov. 9 and momentum in the coal sector.

“The market got back some of the losses from yesterday,” the trader said.

One of those energy names that follows fluctuations in oil news closely is California Resources Corp., and it had one of the biggest gains of the day following news that some Organization of Petroleum Exporting Countries would be meeting informally to discuss supply cuts.

Peabody Energy Corp. continued to ride the momentum that the coal sector has had since the election night win by U.S. president-elect Donald Trump.

Climbing down the energy sector totem pole was Stone Energy Corp., which failed to make an interest payment on one of its senior notes and received an expectation from S&P that the company will elect to file for Chapter 11 instead of making an interest payment on those notes.

In healthcare and pharmaceuticals, Valeant Pharmaceuticals International Inc. seemed to create the most buzz in the news out of any single distressed name when its chief executive officer spoke at a healthcare conference in New York. Its notes weren’t “overly active,” a trader said.

Community Health Systems Inc. and Quorum Health Corp. continued to rise amid its losses from last week’s election.

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