Federal-Mogul Corp. has been one of the more actively traded names in the market over the last couple of months as the bank debt has climbed higher. A $25 million piece is believed to have traded in the 93-94 range last week. The name has been consistently ticking up largely due to upward pressure from secondary market buyers, explained one dealer. One buysider also suggested that if the bond market stays strong throughout the year, the company might look to reconfigure its capital structure post-emergence.
In November, the company announced that it had reached an agreement with its constituencies on an amended plan of reorganization. At that time, the bank debt was actively trading in the 86-87 range. The recovery package slated to lenders under that plan is expected to include a term loan, which is valued at approximately 81 cents on the dollar, and paid-in-kind notes with an ultimate value estimated to be about 19 cents on the dollar (LMW, 11/10).
The company was expected to file a disclosure statement during the week of Dec. 15 and had been looking to schedule a court hearing to approve its disclosure statement this month. It was unclear if those goals had been met. Court documents did not reveal a disclosure statement filed in December. A company spokeswoman did not return calls by press time.