Energy weaker, massive losses stemmed; RadioShack said to breach covenant; Claire’s rises

By Stephanie N. Rotondo

Phoenix, Dec. 2 – The distressed debt space continued to be lower Tuesday, though there “wasn’t as much bludgeoning,” a trader said.

“Some stuff seemed to find a bottom,” he added.

Energy names remained weak, but weren’t hit as hard as they were in the previous sessions. However, oil prices – which had gained ground in Monday trading – came back in.

West Texas Intermediate (WTI) crude oil fell $1.67, or 2.42%, to $67.33 per barrel. Brent crude oil lost $1.69, or 2.33%, to close at $70.85 per barrel.

In the oil sector, California Resources Corp.’s 6% notes due 2024 rallied off the intraday low, a trader said, but still ended down a deuce at 86.

Among coal producers, Walter Energy Inc.’s were actually seen unchanged to better.

Away from energy, RadioShack Corp. traded down after a lender said the company had breached the terms of a loan.

For its part, RadioShack is calling the allegations baseless.

Also in the retail space, Claire’s Stores Inc. paper was inching higher, ahead of the company’s earnings release on Wednesday.

Toys “R” Us Inc.’s 10 3/8% notes due 2017 closed at 83¼, up a quarter-point, according to a trader.

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