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Solo Cup Loans, Bonds Active

24 Aug 2006

Solo Cup's loans and bonds continued to trade actively two weeks after the company said it would have to delay filing its 10Q for the second quarter.

Solo Cup's loans and bonds continued to trade actively two weeks after the company said it would have to delay filing its 10Q for the second quarter. The company said it needs time to complete an internal review initiated by new CEO Robert Korzenski. Its term loan "B" was trading around 100 1/2. Its 8 1/2 '14 bonds were trading at 87 last Thursday, according to TRACE. The bonds have dropped slowly from Aug. 18 where they were sitting at 92.

Two weeks ago Solo Cup's loan-only credit default swaps widened 15 basis points to 190 after it announced the delayed filing. Its term loan "B," dipped half a point to 100 1/2 (CIN, 8/18).

On Aug. 16, Solo Cup announced that Korzenski would become the ceo, replacing Robert Hulsemann, who will continue to serve as the company's chairman of the board of directors. Eric Simonsen, interim cfo, did not return a call by press time.

24 Aug 2006