Peabody loses ahead of restructuring; iHeart up on intraday swings; Neiman Marcus down

By Colin Hanner

Chicago, Dec. 13 – Movement in the distressed arena was focused on company-specific drivers on Tuesday, as movement ahead of one noteworthy restructuring stirred speculation on what’s to come.

The company in question is Peabody Energy Corp., the St. Louis-based coal company that is set to submit a restructuring plan on Wednesday. The company’s notes were down on the session after a Monday upswing.

“It was hard to say what the driving force was behind it,” a trader said, referring to the about-face Tuesday after Peabody had gained during Monday’s session.

“There could be a lot of stuff going on behind the scenes, which could have spooked some guys out, or maybe it was trading off after the gains,” the trader said.

The trader also referred to Teck Resources Ltd., a Canadian metals and mining company, which announced it settled on a benchmark price of $285 per ton for the first quarter of 2017 on several contracts.

Retailer Neiman Marcus Group Ltd. posted its fiscal first quarter figures on Tuesday, showing a year-over-year loss amid reports of a faulty merchandising system hurting sales.

With the announcement that it will not repay $57.1 million of its senior notes held by Clear Channel Holdings, iHeartMedia, Inc. did not see much movement, traders said, noting intraday fluctuation that rose later in the afternoon.

Several sector names, including Community Health Systems Inc., Concordia International Corp. and Valeant Pharmaceuticals International Inc., all saw downward movement.

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