Large pieces of Petroleum Geo-Services (PGS), a Norwegian oilfield service company, have been trading in the mid-to-high 50s as the company pursues a restructuring. A $15 million piece is believed to have changed hands in the 58 context in the last two weeks and an $80 million piece was said to have traded in the 55-58 range early last week. Whether the pieces traded into European or U.S. firms could not be determined. One dealer noted that the market for the bank debt has been improving. A spokeswoman for the company in the U.S. did not return calls.
PGS is in violation of certain covenants in its bank debt and leasing agreements. The company has gained waivers for some of the defaults, but not all of them. PGS must restructure or reschedule approximately $1.1 billion of indebtedness maturing in 2003. UBS Warburg and ABG Sundal Collier have been enlisted as the company's financial advisors. PGS also noted in its earnings report that a steering committee of its bank debt holders has been formed and its bond holders have formed an ad hoc committee through law firm Bingham McCutchen.