A $16 million piece of Superior TeleCom was set to auction last Tuesday but the auction was scrapped after a minimum price of 40 was not reached. The seller of the piece was said to be an original lender. Prior to the auction, the name was quoted in the 39-41 context, but traders said the level slipped from previous highs with bids around the 42 range. Overall, the bank debt has been growing stronger as the company moves toward emerging from bankruptcy. Last month, the name was quoted in the 37-39 context.
Early last month, Superior TeleCom, a wire and cable manufacturer, received court approval for its disclosure statement. Under the company's plan of reorganization, senior lenders with $1.15 million in senior secured claims are slated to receive 100% of the stock in the reorganized company, subject to dilution from management options and stock purchase warrants; $145 million in new senior notes; and $5 million in preferred stock. Calls to David Aldridge, Superior's cfo and chief restructuring officer, were not returned.