Owens Corning has held its ground this week despite indications that asbestos legislation would not be passed in its current form. Traders said the bank debt was quoted in the 66-68 range similar to where the levels stood last week, but said the reason for the propped levels was confidential. A company spokesman could not comment on the bank debt, but noted that Owens Corning has a hearing on Oct. 27 to discuss the company's voting procedures for its plan of reorganization.
With regard to the asbestos legislation, the AFL-CIO has recently issued a statement saying it is "deeply concerned" with the funding for asbestos claimants reached under a new agreement between asbestos-laden companies and their insurers.
Meanwhile, a lease facility related to Midwest Generation, the wholly owned subsidiary of Edison Mission Midwest Holdings, has been seen trading in the 78-80 range, up from the 70-71 context about two weeks ago. Traders said the Collins Station facility has been growing stronger because there is less of a sentiment that the company could run into liquidity problems in December, when a large slice of bank debt comes due, and ultimately have to file for bankruptcy. If the company were to file for bankruptcy, it could potentially reject the lease. Calls to a company spokesman were not returned.