Distressed debt investors were buying the bank debt of LaPaloma Generating Project amidst speculation that a strategic buyer was behind the trades. [Earlier this year, Pacific Gas & Electric, which counted LaPaloma Generating as one of its projects, sold $1.9 billion of energy recovery bonds to refinance a portion of its balance sheet, fulfilling a promise made to its customers when it emerged from Chapter 11 bankruptcy.] High-yield investors were fighting for allocations in a $365 million bond issuance for K&F Industries, while bemoaning the fact that it had an aggressive structure and a loose covenant package.
One Year Ago In The Credit Markets
