Solo Cup's loan-only credit default swaps widened 15 basis points to 190 after the company said it would delay the filing of its financial statements for the second quarter ended July 2. Its term loan "B," which dealers said does not trade often, dipped a half point to 100 1/2.
Eric Simonsen, interim cfo of Solo Cup, said the company has identified certain accounting procedures for that quarter and prior periods and is unsure if they have been carried out correctly. He declined to elaborate and did not know when the company would be able to file its 10Q.
Solo Cup also hired a new ceo, Robert Korzenski, to replace Robert Hulseman, who had held management roles at the company for more than 50 years, according to a release. Korzenski joined Solo Cup as a senior v.p. in 2004.
Despite the upheaval at the company, one hedge fund investor who was looking to buy Solo Cup bonds was not concerned. "The company is beaten down, but I think it is OK," he said. Solo Cup's 8 1/2% '14 bonds traded up to 87 from 85 5/8.