Parker Drilling mixed on bankruptcy; Mallinckrodt level after FDA rejects drug

By James McCandless

San Antonio, Dec. 12 – Volume in the distressed market saw a boost in the Wednesday session.

Parker Drilling Co.’s notes were mixed after the company filed for Chapter 11 bankruptcy on Wednesday.

Elsewhere in oil, a slight dip in oil futures was matched by mixed results for California Resources Corp.’s issues and gains for Ensco plc and Weatherford International plc’s paper.

Meanwhile, Mallinckrodt plc’s notes ended level after news broke early Wednesday that one of its drugs did not gain Federal Drug Administration approval.

In finance, Deutsche Bank AG’s issues improved amid a downward trend spurred by a series of negative headlines.

Telecom name Intelsat SA’s paper was positive while Frontier Communications Corp.’s notes fell.

Parker Drilling’s notes ended the session mixed, traders said.

The 7½% notes due 2020 gained 2½ points to close at 62 bid. The 6¾% notes due 2022 lost 3 points to close at 51½ bid.

On Wednesday, the Houston-based drilling services provider made a pre-packaged Chapter 11 bankruptcy filing after reaching a restructuring support agreement with a significant number of bondholders, Prospect News reported.

“Those bonds were all over the place today,” a trader said. “They were hard to pin down right up until the end.”

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