GenTek Debt Changes Hands
GenTek's bank debt was fairly active last week with the company's pro rata trading in the 56-57 context and its term loan moving in the 53-55 range. "It felt like there were better buyers over the last couple of days," noted one trader. The company has recently obtained a $60 million debtor-in-possession facility. It filed for bankruptcy in October after it failed to obtain an amendment to its senior credit facility.
The new DIP facility is said to relieve the pre-petition lenders from certain obligations they had regarding letters-of-credit. The company also recently received an extension to the exclusive period during which it can file a plan of reorganization. Calls to Matthew Friel, v.p. and cfo, were referred to a spokeswoman, who did not return calls by press time.