Credits in the process of reorganizing, namely Owens Corning, Safety-Kleen and Dade Behring, got a boost this week as investors saw an upside to each name. Owens Corning started with a $20-25 million trade at 70 on Monday as market players speculate on subsidiary guarantees on the bank debt as the company works through bankruptcy. The name ticked up to 71 by midweek with roughly $10 million more changing hands. Safety-Kleen climbed up further this week with roughly $30 million trading up to 40 from a 33 level last week. Dealers believe the company may soon benefit from pending litigation.
Dade Behring's bank debt is flying high in the 109-110 range with $10 million trading on Wednesday. The company has been in negotiation with bank, bond, and equity holders for some time, but traders now speculate that a deal is in the works. Two weeks ago market rumors suggested the company was leaning towards a debt-equity swap, pushing the name above par.Calls to the companies' officials were not returned by press time.