Solo Cup's five-year loan-only credit default swaps widened five basis points to the 155-175 context on the departure of Susan Marks, cfo, from the company. Her resignation had a positive effect on its bonds, however, causing its 8 1/2% '14 notes to climb half-a-point to 88 1/2.
Solo Cup said in a release that Marks decided to leave the company to pursue other interests. Her resignation, announced July 11, was effective immediately. A spokeswoman said Marks chose to leave the company for personal reasons and her resignation had nothing to do with the company's recent net loss.
In May, the maker of disposable foodservice products, posted a $22.1 million net loss in the first quarter, compared with a net loss of $18.6 million for the same period last year. The results caused Solo Cup's LCDS to widen 15-20 basis points to the 130-150 range and its bonds to fall three points to 92 (CIN, 5/19).