The bank debt for bankrupt battery-maker Exide Technologies slumped this week from the low 60s with dealers quoting the market for the paper wide at 55-60. No trades could be confirmed. Last Friday, the Official Committee of Unsecured Creditors and R2 Investments filed a motion to examine the value of Exide's foreign subsidiaries and to analyze whether consolidation of such subsidiaries, which are not included in the bankruptcy proceedings, is warranted under the law. Consolidation of the subsidiaries threatens the liens held by the banks, according to the filing. Credit Suisse First Boston is the agent, representing lenders with about $700 million bank debt outstanding when the company filed Chapter 11 last year. Biagio Vignolo, Exide cfo, could not be reached by press time.
An auction of $54 million worth of NRG Energy's $2 billion credit facility held by its finance company reportedly went off in the 27 1/2 to 28 1/2 context last Friday. The buyer and seller of the trade could not be determined. Last week the paper rallied from the low 20s after NRG's parent company, Xcel Energy, announced an agreement with NRG creditors that would give NRG a larger-than-expected payout. Calls to the company were not returned by press time.
Meanwhile, Charter Communications inched up toward 89-90 after the company announced that Paul Allen has offered to provide a $300 million credit to assist Charter in meeting certain covenants under its existing credit facilities. "What everyone wants to see is that Paul Allen is supporting the credit," said one trader of the uptick in the name. The paper traded in the 87 1/2 context two weeks ago.
About $5 million of Ashtead Group's bank debt is looking to come out in an auction this week with dealers quoting the market for the name in the 70-75 context. Last month, the U.K. plant equipment rental company defaulted on its bank debt and was unable to make an interest payment. "This is one of those situations where the last trade was in the 90s and the next one is in the 70s," noted one trader. Ian Robson, Ashtead finance director, could not be reached by press time.