The market for Venture Holding's bank debt is hovering in the 69-72 range as the company, its bank debt holders and Venture founder Larry Winget hammer out terms for the company's restructuring. No trades could be confirmed. James Butler, Venture Holdings' cfo and general counsel, said the parties have agreed to a preliminary term sheet, but it has not yet been disclosed to the public. While the parties are committed to working out a resolution, there are still some "significant hurdles" that need to be overcome, he added.
Butler declined to provide a time for when a reorganization plan would be completed. "It is a little more clear what the lenders will receive [under a potential plan of reorganization]," explained one trader, declining to elaborate. About a month ago, Venture Holding's bank debt rose from the 62 range to the 70-72 context. Bondholders, who were expecting to receive minimal recovery under the reorganization plan, were said to have been buying up the bank debt (LMW, 8/4).