Meridian Automotive Drops On New Reorg Plan
Meridian Automotive Systems' loans fell after the company pulled its plan of reorganization and announced it would be filing an amended version and expects the re-org plan to be in effect at the end of October. Its term loan "B" dropped to 85-86 from the high 80s. Its second lien plunged to five-seven, according to a trader; the loan was trading at 16 1/4 at the beginning of the week, according to Markit. Calls to Richard Newsted, ceo, and a Meridian spokesman were not returned.
Schefenacker Bonds Plummet
Schefenacker 9 1/2% bonds dropped eight points to the 81-82 context after the German auto supplier posted bad second quarter results. Schefenacker posted a EUR10.6 million net loss in the second quarter and a EUR24.9 million net loss for the first six months of 2006, compared with a EUR9.3 million net loss for the second quarter and a EUR19.7 million net loss for the first half of last year.
Movie Gallery LCDS Spreads Blow Out
Poor second quarter results caused Movie Gallery's loan-only credit default swaps to widen 150-200 basis points to 700. The spread widening follows the sharp drop in trading of the company's loans and bonds. Movie Gallery's term loan "B" has fallen three points to 94 1/2 since the company announced results Aug. 10. Its bonds have dropped 20 points to 62 3/4.