Leap Wireless International's vendor financing paper has come off of recent highs, trading into the 50-51 context, and a major buyer of the name is rumored to be in the market, traders said. No identity for the buyer could be determined. Toward the end of September the paper ran up as high as 52-54 as recent market transactions reflected positively on Leap (LMW, 9/22). Jim Seines, Leap's director of investor relations and public affairs, said he was unaware of a large buyer of Leap's vendor paper.
Seines noted that the company's informal vendor committee has told Leap that they own roughly $1.2 billion of the $1.6 billion in vendor debt claims. Members of the committee include Alliance Capital Management, Bank One, Credit Suisse First Boston, Cypress Management, Eaton Vance Management, Goldman Sachs Credit Partners, Highland Capital, Merrill Lynch, Romulus Holdings, and a host of other banks and loan funds, according to the company's reorganization plan. Leap concluded its confirmation hearing last week. On Oct. 21, the bankruptcy court judge will hear oral arguments and issue a judgment regarding the confirmation of plan of reorganization, stated Seines. The company will then need to seek approval from the Federal Communications Commission for the change of control of the company's wireless license to the new reorganized Leap, he added.