Hanger Orthopedic Group's $150 million "B" loan softened during the week to the 98-99 context, from the 99 3/4 level, where it traded last month. The drop was registered after the company announced a postponement of its earnings report to complete accounting reviews, a banker said. He added that the drop also reflects market expectations of an arrangement that will bust some of the company's debt covenants.
The accounting matters have no relation to the alleged billing discrepancies that are still under investigation, Hanger said in a release. Such discrepancies, which had to do with alleged forged prescriptions, weakened the company's debt levels after it broke a month ago. Hanger's facility is led by GE Capital and Lehman Brothers. A Hanger investor relations official did not return calls by press time.