Microcell Telecommunications' bank debt levels retreated to the low 70s last week after investor demand ran the paper up into the 77-79 context two weeks ago. Market players said there are lenders looking to sell, but buyers of the paper have filled up on their capacity for the name. No trades could be confirmed. J.P. Morgan is the lead on Microcell's bank debt.
Under Microcell's current plan of reorganization, secured creditors holding almost C$600 million in claims would receive C$300 million of a new five-year "B" loan, about C$50 million of 8% senior notes, and roughly C$250 million of distributions in the form of first and second instruments. While the company has made a request to the tax authorities in an effort to have the first and second instruments implemented as preferred shares rather than subordinated convertible notes, Thane Fotoboulos, Microcell's director of investor relations, said there has been no decision at this point. He noted that the important date to watch is March 17 when the creditors vote on the reorganization plan.