PG&E notes trade lower as new board elected; Bombardier declines amid layoff news

By James McCandless

San Antonio, June 11 – In the tail end of the week, the distressed debt market mirrored the weakness of other markets as new economic worries took hold.

PG&E Corp.’s notes were pushed down in the wake of 11 new board members being elected as the company works its way to a bankruptcy exit.

The 6.05% notes due 2034 gave up 1¼ points to close at 117½ bid.

After the close on Wednesday, the San Francisco-based electric utility announced 11 new directors for its board of directors and the retirement of 10 of the 13 current members, including the board chair, Prospect News reported.

The company hopes to exit Chapter 11 bankruptcy by the end of June.

Meanwhile, manufacturer Bombardier Inc.’s issues dipped after the company announced a new round of layoffs.

The 7½% senior notes due 2025 declined by 8½ points to close at 67½ bid. The 8¾% senior notes due 2021 trailed by 6½ points to close at 80 bid.

News broke on Thursday that the Montreal-based air and rail manufacturer will lay off 600 people working in its Northern Ireland facilities.

Last week, the company announced 2,500 layoffs, effecting its Canadian operations, as it expects demand for aircraft to shrink.

© 2015 Prospect News.
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